C:\MYFILES\98K\EX10K.DOC
  EXHIBIT 10(k)

                    SECOND AMENDMENT TO WASHINGTON HOMES
                     EMPLOYEE STOCK OPTION PLAN

     WASHINGTON HOMES, INC. (the "Company") hereby adopts this SECOND  AMENDMENT
(the  "Amendment")  to  the WASHINGTON HOMES EMPLOYEE  STOCK  OPTION  PLAN  (the
"Plan"), as of November 20, 1997, as set forth herein.

     WHEREAS, the Company adopted the Plan effective as of September 17, 1992;
     
     WHEREAS, the Company amended the Plan effective as of November 15, 1992, to
increase the maximum number of shares of the Company's Common Stock which may be
issued pursuant to option granted under the Plan, to 500,000 shares, subject  to
adjustment upon changes in capitalization of the Company; and

     WHEREAS, the Company wishes to again amend the Plan to increase the  number
of shares of the Company's Common Stock, which may be issued pursuant to options
granted  under the Plan from 500,000 to 1,000,000 shares, subject to  adjustment
upon changes in capitalization of the Company; and

     WHEREAS,  the  Board of Directors of the Company approved the Amendment  to
the Plan at a meeting of the Board on July 18, 1997, subject to the approval  of
the Shareholders; and

     WHEREAS,  the  Company presented the Amendment to the Shareholders  of  the
Company  at  the  1997 Annual Meeting of the Shareholders at which  Shareholders
have voted on and duly approved such Amendment.

     NOW THEREFORE, the Company hereby amends the Plan as follows:

     1. Section 3. of the Plan shall be replaced with the following Section 3.:

          "Section 3.    Number  of Shares Available for Options.  An  aggregate
                    maximum  of  1,000,000  Shares may be issued  under  Options
                    pursuant to the Plan, subject to adjustment upon changes  in
                    capitalization  pursuant to Section  9.  Shares  subject  to
                    Options  that have lapsed unexercised may again  be  offered
                    under  Options,  but  Shares that  have  been  issued  under
                    Options  and  reacquired by the Company shall not  again  be
                    offered under Options."

     2.  All  other  terms, conditions, and provisions of the Plan shall  remain
unchanged.




                  The signature block appears on the next page.


     IN WITNESS WHEREOF, the President of the Company has executed this
Amendment as of the day and year first above written.

                                   WASHINGTON HOMES, INC.
                                   
                                   

                                   By:
                                        Geaton A. DeCesaris, Jr., President