As filed with the Securities and Exchange Commission on March 8, 2002

Registration No. 333-___________
================================================================================

SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form S-3
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
D.R. HORTON, INC.
Co-registrants are listed on the following pages.
(Exact name of registrant as specified in its charter)

<Table>

DELAWARE
(STATE OR OTHER JURISDICTION OF 75-2386963
INCORPORATION OR ORGANIZATION) (I.R.S. EMPLOYER IDENTIFICATION NO.)

Paul W. Buchschacher
Vice President & Corporate Counsel
1901 Ascension Blvd., Suite 100
1901 Ascension Blvd., Suite 100 Arlington, Texas 76006
Arlington, Texas 76006 (817) 856-8200
(817) 856-8200 (Name, address, including zip code, and
(Address, including zip code, and telephone telephone number, including area code,
principal executive offices) of agent for service)
</Table>

THE COMMISSION IS REQUESTED TO MAIL COPIES OF ALL ORDERS, NOTICES AND
COMMUNICATIONS TO:
Irwin F. Sentilles, III
Gibson, Dunn & Crutcher LLP
2100 McKinney Ave., Suite 1100
Dallas, Texas 75201
(214) 698-3100
Approximate date of commencement of proposed sale to the public:
From time to time after this registration statement becomes effective.

If the only securities being registered on this Form are being offered
pursuant to dividend or interest reinvestment plans, please check the following
box. [ ]

If any of the securities being registered on this Form are to be offered on
a delayed or continuous basis pursuant to Rule 415 under the Securities Act of
1933, other than securities offered only in connection with dividend or interest
reinvestment plans, check the following box. [X]

If this Form is filed to register additional securities for an offering
pursuant to Rule 462(b) under the Securities Act, please check the following box
and list the Securities Act registration statement number of the earlier
effective registration statement for the same offering. [ ]

If this Form is a post-effective amendment filed pursuant to Rule 462(c)
under the Securities Act, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering. [ ]

If delivery of the prospectus is expected to be made pursuant to Rule 434,
please check the following box. [ ]

CALCULATION OF REGISTRATION FEE
<Table>
<Caption>
===================================================================================================================================
PROPOSED MAXIMUM AMOUNT OF
TITLE OF EACH CLASS OF SECURITIES TO BE REGISTERED AGGREGATE OFFERING PRICE (1) REGISTRATION FEE
- -----------------------------------------------------------------------------------------------------------------------------------

Debt Securities, Preferred Stock (par value $.10 per share), Depositary
Shares, Common Stock (par value $.01 per share), Warrants, Stock
Purchase Contracts and Stock Purchase Units (2) ............................ -- --
Trust Preferred Securities of DRH Capital Trust I .......................... -- --
Trust Preferred Securities of DRH Capital Trust II ......................... -- --
Trust Preferred Securities of DRH Capital Trust III ........................ -- --
Subordinated Trust Debt Securities of D.R. Horton, Inc. to be issued to
DRH Capital Trust I, DRH Capital Trust II and DRH Capital Trust III ........ -- --
Guarantees of Trust Preferred Securities of DRH Capital Trust I, DRH
Capital Trust II and DRH Capital Trust III by D.R. Horton, Inc. (5)(6) ..... -- --
Guarantees of the Debt Securities by direct and indirect subsidiaries of
D.R. Horton, Inc. (6)(7) ................................................... -- --
Units comprising one or more classes of securities above ................... -- --
Total ...................................................................... $1,000,000,000 (3) $ 92,000(4)
===================================================================================================================================
</Table>

(1) Exclusive of accrued interest and dividends, if any, and estimated solely
for the purpose of calculating the registration fee pursuant to Rule
457(o).

(2) Includes shares of common stock which may be issued upon conversion of
preferred stock or debt securities or exercise of warrants, which are being
registered.

(3) Of the $1,000,000,000 of securities being registered hereunder, pursuant to
Rule 429(b) under the Securities Act of 1933, as amended, an aggregate of
$350,000,000 of securities are being carried forward from the registrant's
prior registration statement on Form S-3 (SEC File No. 333-57388) initially
filed on March 21, 2001.

(4) In connection with the prior registration statement, registration fees of
approximately $87,500 were previously paid with respect to the $350,000,000
of securities being carried forward herewith.

(5) Includes the back-up undertakings of D.R. Horton, Inc. to provide certain
indemnities relating to, and pay and be responsible for certain expenses,
costs, liabilities and debts of, DRH Capital Trusts I, II and III and all
other obligations of D.R. Horton, Inc. relating to such trusts.

(6) Pursuant to Rule 457(n) under the Securities Act of 1933, no separate fee
for the guarantees is payable.

(7) See the following page for a list of the subsidiary guarantors.

Pursuant to Rule 429 under the Securities Act of 1933, the prospectus also
relates to securities registered pursuant to the prior registration statement.

The registrants hereby amend this registration statement on such date or dates
as may be necessary to delay its effective date until the registrants shall file
a further amendment which specifically states that this registration statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until this registration statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.

================================================================================

The following direct and indirect subsidiaries of registrant may guarantee
the debt securities or issue trust preferred securities and are co-registrants
under this registration statement.

<Table>
<Caption>
JURISDICTION OF
INCORPORATION I.R.S. EMPLOYER
NAME OF CO-REGISTRANT OR ORGANIZATION IDENTIFICATION NO.
- --------------------- --------------- ------------------

Allegra, LLC California 95-4583667
AP LHI, Inc. California 95-4583663
AP Western GP Corporation Delaware 06-4519840
AP WP Operating Corporation Delaware 51-0351837
AP WP Partners, L.P. Delaware 51-0351840
APLAM, LLC California 95-4565731
C. Richard Dobson Builders, Inc. Virginia 54-1082672
CH Investments of Texas, Inc. Delaware 86-0831611
CHI Construction Company Arizona 86-0533370
CHTEX of Texas, Inc. Delaware 74-2791268
Continental Homes of Florida, Inc. Florida 59-1237314
Continental Homes of Texas, L.P. Texas 74-2791904
Continental Homes, Inc. Delaware 86-0515339
Continental Residential, Inc. California 86-0596757
D.R. Horton - Emerald, Ltd. Texas 75-2926873
D.R. Horton - Texas, Ltd. Texas 75-2491320
D.R. Horton Los Angeles Holding Company, Inc. California 75-2589298
D.R. Horton Management Company, Ltd. Texas 75-2436079
D.R. Horton San Diego Holding Company, Inc. California 75-2589293
D.R. Horton, Inc. - Birmingham Alabama 62-1666398
D.R. Horton, Inc. - Chicago Delaware 75-2795240
D.R. Horton, Inc. - Denver Delaware 75-2666727
D.R. Horton, Inc. - Dietz-Crane Delaware 75-2926868
D.R. Horton, Inc. - Greensboro Delaware 75-2599897
D.R. Horton, Inc. - Jacksonville Delaware 75-2460269
D.R. Horton, Inc. - Louisville Delaware 75-2636512
D.R. Horton, Inc. - Minnesota Delaware 75-2527442
D.R. Horton, Inc. - New Jersey Delaware 75-2665362
D.R. Horton, Inc. - Portland Delaware 75-2763765
D.R. Horton, Inc. - Sacramento California 75-2569592
D.R. Horton, Inc. - Torrey Delaware 75-2689997
D.R. Horton-Schuler Homes, LLC Delaware 02-0548194
DRH Cambridge Homes, Inc. California 75-2589359
DRH Cambridge Homes, LLC Delaware 75-2797879
DRH Capital Trust I Delaware 75-6598130
DRH Capital Trust II Delaware 75-6598131
DRH Capital Trust III Delaware 75-6598132
DRH Construction, Inc. Delaware 75-2633738
DRH Regrem II, Inc. Delaware 75-2926869
DRH Regrem III, Inc. Delaware 75-2926870
DRH Regrem IV, Inc. Delaware 75-2926871
DRH Regrem V, Inc. Delaware 75-2926872
DRH Regrem VII, LP Texas 75-2926874
DRH Regrem VIII, LLC Delaware 75-2926876
DRH Southwest Construction, Inc. California 75-2589289
DRH Title Company of Colorado, Inc. Colorado 75-2695520
DRH Tucson Construction, Inc. Delaware 75-2709796
DRHI, Inc. Delaware 75-2433464
HPH Homebuilders 2000 L.P. California 68-0368156
KDB Homes, Inc. Delaware 86-0565376
LAMCO Housing, Inc. California 33-0492375
Meadows I, Ltd. Delaware 75-2436082
Meadows II, Ltd. Delaware 51-0342206
</Table>

<Table>
<Caption>
JURISDICTION OF
INCORPORATION I.R.S. EMPLOYER
NAME OF CO-REGISTRANT OR ORGANIZATION IDENTIFICATION NO.
- --------------------- --------------- ------------------

Meadows VIII, Ltd. Delaware 75-2824511
Meadows IX, Inc. New Jersey 75-2684821
Meadows X, Inc. New Jersey 75-2684823
Melody Homes, Inc. Delaware 88-0309544
Melmort Co. Colorado 84-1261600
Porter GP LLC Delaware 95-4691314
Schuler Homes of Arizona LLC Delaware 99-0350555
Schuler Homes of California, Inc. California 99-0328127
Schuler Homes of Oregon, Inc. Oregon 99-0330791
Schuler Homes of Washington, Inc. Washington 99-0329483
Schuler Mortgage, Inc. Delaware 99-0349664
Schuler Realty Hawaii, Inc. Hawaii 99-0290556
Schuler Realty/Maui, Inc. Hawaii 99-0290557
SGS Communities at Grande Quay, LLC New Jersey 22-3481784
SHA Construction LLC Delaware 86-1002579
SHLR of California, Inc. California 99-0350554
SHLR of Colorado, Inc. Colorado 99-0336801
SHLR of Nevada, Inc. Nevada 99-0343628
SHLR of Utah, Inc. Utah 99-0336937
SHLR of Washington, Inc. Washington 99-0334375
SRHI LLC Delaware 99-0343629
SSHI LLC Delaware 91-1842222
Vertical Construction Corporation Delaware 22-3216488
Western Pacific Funding, Inc. California 68-0346564
Western Pacific Housing Co. California 33-0634552
Western Pacific Housing Management, Inc. California 95-4692688
Western Pacific Housing, Inc. Delaware 95-4887164
Western Pacific Housing-Antigua, LLC Delaware 95-4750872
Western Pacific Housing-Aviara, L.P. California 95-4550008
Western Pacific Housing-Boardwalk, LLC Delaware 95-4871227
Western Pacific Housing-Broadway, LLC Delaware 95-4850687
Western Pacific Housing-Canyon Park, LLC Delaware 95-4716219
Western Pacific Housing-Carmel, LLC Delaware 95-4717091
Western Pacific Housing-Carrillo, LLC Delaware 95-4815705
Western Pacific Housing-Communications Hill, LLC Delaware 95-4637162
Western Pacific Housing-Copper Canyon, LLC Delaware 95-4817406
Western Pacific Housing-Creekside, LLC Delaware 95-4769848
Western Pacific Housing-Culver City, L.P. California 95-4539563
Western Pacific Housing-Del Valle, LLC Delaware 95-4887242
Western Pacific Housing-Lomas Verdes, LLC Delaware 95-4783214
Western Pacific Housing-Lost Hills Park, LLC Delaware 95-4652041
Western Pacific Housing-McGonigle Canyon, LLC Delaware 95-4735759
Western Pacific Housing-Mountaingate, L.P. California 95-4539564
Western Pacific Housing-Norco Estates, LLC Delaware 95-4686652
Western Pacific Housing-Oso, L.P. California 95-4496774
Western Pacific Housing-Pacific Park II, LLC Delaware 95-4636584
Western Pacific Housing-Park Avenue East, LLC Delaware 52-2350169
Western Pacific Housing-Park Avenue West, LLC Delaware 95-4888647
Western Pacific Housing-Playa Vista, LLC Delaware 95-4879655
Western Pacific Housing-Poinsettia, L.P. California 95-4619838
Western Pacific Housing-River Ridge, LLC Delaware 95-4870837
Western Pacific Housing-Robinhood Ridge, LLC Delaware 95-4838666
Western Pacific Housing-Santa Fe, LLC Delaware 95-4741001
Western Pacific Housing-Scripps II, LLC Delaware 95-4688133
Western Pacific Housing-Scripps, L.P. California 95-4608187
Western Pacific Housing-Seacove, L.P. California 95-4473471
Western Pacific Housing-Studio 528, LLC Delaware 95-4877069
</Table>

<Table>
<Caption>
JURISDICTION OF
INCORPORATION I.R.S. EMPLOYER
NAME OF CO-REGISTRANT OR ORGANIZATION IDENTIFICATION NO.
- --------------------- --------------- ------------------

Western Pacific Housing-Terra Bay Duets, LLC Delaware 95-4878114
Western Pacific Housing-Torrance, LLC Delaware 95-4879653
Western Pacific Housing-Torrey Commercial, LLC Delaware 95-4769208
Western Pacific Housing-Torrey Meadows, LLC Delaware 95-4878113
Western Pacific Housing-Torrey Multi-Family, LLC Delaware 95-4781243
Western Pacific Housing-Torrey Village Center, LLC Delaware 95-4837541
Western Pacific Housing-Vineyard Terrace, LLC Delaware 95-4761820
Western Pacific Housing-Windemere, LLC Delaware 95-4879656
Western Pacific Housing-Windflower, L.P. California 95-4504317
WPH-Camino Ruiz, LLC Delaware 95-4802985
WPH-HPH, LLC Delaware 95-4691311
</Table>

The information in this prospectus is not complete and may be changed. We may
not sell these securities until the registration statement filed with the
Securities and Exchange Commission is effective. This prospectus is not an offer
to sell these securities and we are not soliciting offers to buy these
securities in any state where the offer is not permitted.

Subject to Completion, dated March 8, 2002

PROSPECTUS

D.R. Horton, Inc.

Debt Securities,
Preferred Stock, Depositary Shares,
Common Stock, Warrants,
Stock Purchase Contracts and Stock Purchase Units

Trust Preferred Securities of DRH Capital Trust I,
DRH Capital Trust II and DRH Capital Trust III
and Related Subordinated Trust Debt Securities
and Guarantees of D.R. Horton, Inc.

Units of These Securities

$1,000,000,000

----------

We will provide specific terms of these securities in supplements to this
prospectus. You should read this prospectus and any supplement carefully before
you invest.

Our common stock is listed on the New York Stock Exchange under the symbol
"DHI."

----------

THE SECURITIES AND EXCHANGE COMMISSION AND STATE SECURITIES REGULATORS HAVE NOT
APPROVED OR DISAPPROVED THESE SECURITIES OR DETERMINED IF THIS PROSPECTUS IS
TRUTHFUL OR COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

This prospectus is dated , 2002
--------------- -----

TABLE OF CONTENTS

<Table>

Forward-looking Statements...................................................................................... 2
The Company..................................................................................................... 3
The Trusts...................................................................................................... 3
Securities We May Offer......................................................................................... 4
Use of Proceeds................................................................................................. 5
Summary Consolidated Financial Information and Operating Data................................................... 6
Ratio of Earnings to Fixed Charges.............................................................................. 7
Description of Debt Securities.................................................................................. 7
Description of Common Stock, Preferred Stock and Depositary Shares.............................................. 10
Description of Warrants......................................................................................... 13
Description of Stock Purchase Contracts and Stock Purchase Units................................................ 14
Description of Units............................................................................................ 15
Description of Trust Preferred Securities and Subordinated Trust Debt Securities................................ 15
Plan of Distribution............................................................................................ 24
Legal Matters................................................................................................... 24
Experts......................................................................................................... 25
Where You Can Find More Information............................................................................. 25
Incorporation of Certain Documents by Reference................................................................. 25
</Table>

FORWARD-LOOKING STATEMENTS

The statements contained in this prospectus and the information
incorporated by reference include forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These forward-looking
statements involve risks, uncertainties and other factors that may cause our
actual results to differ materially from the results we discuss in the forward-
looking statements. These risks, uncertainties and other factors include, but
are not limited to:

o changes in general economic, real estate and business conditions;

o changes in interest rates and the availability of mortgage financing;

o governmental regulations and environmental matters;

o our substantial leverage;

o competitive conditions within our industry;

o the availability of capital; and

o our ability to effect our growth strategies successfully.

We undertake no obligation to publicly update any forward-looking
statements, whether as a result of new information, future events or otherwise.
However, any further disclosures made on related subjects in additional
documents incorporated into this prospectus by reference should be consulted.

THE COMPANY

We are a national homebuilder. We construct and sell single-family homes in
metropolitan areas of the Mid-Atlantic, Midwest, Southeast, Southwest and West
regions of the United States. We offer high quality homes, designed principally
for first-time and move-up home buyers. Our homes generally range in size from
1,000 to 5,000 square feet and range in price from $80,000 to $900,000. For the
year ended September 30, 2001, we closed 21,371 homes with an average sales
price approximating $200,700. For the three months ended December 31, 2001, we
closed 5,691 homes with an average sales price approximating $197,800.

We are one of the largest and most geographically diversified homebuilders
in the United States, with operating divisions in 21 states and 42 markets. The
markets we operate in include: Albuquerque, Atlanta, Austin, Birmingham,
Charleston, Charlotte, Chicago, Colorado Springs, Columbia, Dallas, Denver, Fort
Myers/Naples, Fort Worth, Greensboro, Greenville, Hawaii, Hilton Head, Houston,
Jacksonville, Killeen, Las Vegas, Los Angeles, Louisville, Maryland-D.C.,
Miami/West Palm Beach, Minneapolis/St. Paul, Myrtle Beach, New Jersey, Orlando,
Phoenix, Portland, Raleigh/Durham, Richmond, Sacramento, Salt Lake City, San
Antonio, San Diego, San Francisco Bay Area, Seattle, Tucson, Virginia-D.C. and
Williamsburg.

We build homes under the following names: D.R. Horton, Arappco, Cambridge,
Continental, Dietz-Crane, Dobson, Emerald, Mareli, Melody, Milburn, Regency,
Schuler, SGS, Stafford, Torrey, Trimark and Western Pacific.

Our financial reporting segments consist of homebuilding and financial
services. Our homebuilding operations comprise the most substantial part of our
business, with more than 98% of consolidated revenues in fiscal 1999, 2000 and
2001. The homebuilding operations segment generates the majority of its revenues
from the sale of completed homes with a lesser amount from the sale of land and
lots. The financial services segment generates its revenues from originating and
selling mortgages and collecting fees for title insurance and closing services.
Financial information, including revenue, pre-tax income and identifiable assets
of both of our reporting segments are included in our consolidated financial
statements.

Donald R. Horton began our homebuilding business in 1978. In 1991 we were
incorporated in Delaware to acquire the assets and businesses of our predecessor
companies which were residential home construction and development companies
owned or controlled by Mr. Horton. Since July 1993, we have acquired 18 other
homebuilding companies, including Schuler Homes which we acquired on February
21, 2002. Schuler strengthened our market position in several markets, including
California, while expanding our geographic presence and product offerings in
other markets in the West region. For the twelve months ended September 30,
2001, Schuler, together with Western Pacific Housing with which it combined in
April 2001, closed 5,254 homes with an average sales price approximating
$293,000. For the three months ended December 31, 2001, Schuler closed 1,495
homes with an average sales price approximating $277,500. The consideration we
paid for Schuler consisted of approximately 20.1 million shares of common stock
and $168.7 million in cash, plus the assumption of $731.0 million in Schuler
debt.

Our principal executive offices are at 1901 Ascension Blvd., Suite 100,
Arlington, Texas 76006, our telephone number is (817) 856-8200, and our Internet
website address is www.drhorton.com. Information on our Internet website is not
part of this prospectus.

THE TRUSTS

We created three Delaware business trusts pursuant to three trust
agreements executed by us as sponsor for each trust, appointed trustees for each
trust and filed a certificate of trust for each trust with the Delaware
Secretary of State. The trusts are named DRH Capital Trust I, DRH Capital Trust
II and DRH Capital Trust III. The trust agreement of each trust will be amended
and restated prior to the issuance and sale by such trust of its trust
securities, which consist of trust preferred securities and trust common
securities. The original trust agreement is, and the form of the amended and
restated trust agreement will be, filed as an exhibit to the registration
statement of which this prospectus forms a part. The trust agreement for each
trust states the terms and conditions for each trust to issue and sell its trust
securities.

Each trust will exist solely to:

o issue and sell its trust securities;

o use the proceeds from the sale of its trust securities to purchase and
hold a series of our subordinated trust debt securities;

o maintain its status as a grantor trust for federal income tax
purposes; and

o engage in other activities that are necessary or incidental to these
purposes.

We will purchase all of the trust common securities of each trust. The
trust common securities will represent an aggregate liquidation amount equal to
at least 3% of each trust's total capitalization. The trust common securities
will have terms substantially identical to, and will rank equal in priority of
payment with, the trust preferred securities. However, if an event of default
under a trust agreement occurs, cash distributions and liquidation, redemption
and other amounts payable on the trust common securities will be subordinate to
the trust preferred securities in priority of payment.

We will guarantee the trust preferred securities as described later in this
prospectus.

Trustees appointed by us, as holder of the trust common securities, will
conduct each trust's business and affairs. Trust agreements will govern the
duties and obligations of the trustees. Pursuant to each trust agreement, the
number of trustees will initially be four, with three different functions. Two
of the trustees, who are administrative trustees, will be persons who are our
employees or officers or are otherwise affiliated with us. The third trustee,
which is the Delaware trustee, will be an individual resident of the State of
Delaware or a corporation which maintains a principal place of business in the
State of Delaware. The Delaware trustee will serve the sole purpose of complying
with certain Delaware laws. The fourth trustee will be a bank or trust company
unaffiliated with us and will serve as property trustee under each trust
agreement and as indenture trustee for purposes of the Trust Indenture Act of
1939. Initially, an employee of CT Corporation System will act as the Delaware
trustee and American Stock Transfer & Trust Company as the property trustee. The
property trustee will also act as indenture trustee under the indenture and
guarantee trustee under the trust guarantee as described later in this section.
We, as the holder of all the trust common securities, will have the right to
appoint, remove or replace any trustee and to increase or decrease the number of
trustees, provided that the number of trustees will be at least three, two of
which will be the administrative trustees and one of which will be the Delaware
trustee.

The property trustee will hold title to our subordinated trust debt
securities held by the trust for the benefit of the holders of the trust
securities, and will have the power to exercise all rights, powers and
privileges as the holder of the subordinated trust debt securities under the
indenture pursuant to which the subordinated trust debt securities will be
issued. In addition, the property trustee will maintain exclusive control of a
segregated non-interest bearing bank account to hold all payments made in
respect of the subordinated trust debt securities for the benefit of the holders
of the trust securities. The property trustee will make payments of
distributions and payments on liquidation, redemption and otherwise to the
holders of the trust securities out of funds from the account. The guarantee
trustee will hold the guarantee by us of the trust securities for the benefit of
the holders of the trust preferred securities.

We will pay all fees and expenses related to each trust and each offering
of the related trust preferred securities and will pay all ongoing costs and
expenses of each trust, except such trust's obligations under the related trust
securities.

The rights of the holders of the trust preferred securities, including
economic rights, rights to information and voting rights, are set forth in each
trust's trust agreement and the Delaware Business Trust Act and the Trust
Indenture Act. The principal place of business of each trust is c/o D.R. Horton,
Inc., 1901 Ascension Blvd., Suite 100, Arlington, Texas 76006. The telephone
number is 817-856-8200.

SECURITIES WE MAY OFFER

TYPES OF SECURITIES

The types of securities that we may offer and sell from time to time by
this prospectus are:

o debt securities, which we may issue in one or more series and which
may include guarantees of the debt securities by most of our
subsidiaries,

o preferred stock, which we may issue in one or more series,

o depositary shares,

o common stock,

o warrants entitling the holders to purchase common stock, preferred
stock or debt securities,

o stock purchase contracts or

o stock purchase units.

In addition, from time to time by this prospectus, one or more of the
trusts may offer and sell trust preferred securities, which will include our
trust guarantees. The trusts will hold our subordinated trust debt securities,
which may be distributed to holders of trust securities under specified
circumstances.

We may also offer and sell units of the above securities, which may or may
not include trust preferred securities issued by one or more of the trusts.

The aggregate initial offering price of all securities sold will not exceed
$1,000,000,000. We will determine when we sell securities, the amounts of
securities we will sell and the prices and other terms on which we will sell
them. We may sell securities to or through underwriters, through agents or
dealers or directly to purchasers.

ADDITIONAL INFORMATION

We will describe in a prospectus supplement, which we will deliver with
this prospectus, the terms of particular securities which we may offer in the
future. In each prospectus supplement we will include the following information:

o The type and amount of securities which we propose to sell;

o The initial public offering price of the securities;

o The names of the underwriters, agents or dealers, if any, through or
to which we will sell the securities;

o The compensation, if any, of those underwriters, agents or dealers;

o Information about securities exchanges or automated quotation systems
on which the securities will be listed or traded;

o United States federal income tax considerations applicable to the
securities; and

o Any other material information about the offering and sale of the
securities.

USE OF PROCEEDS

Except as may be stated in the applicable prospectus supplement, we intend
to use the net proceeds from the sale of the securities for general corporate
purposes, including acquisition, development and construction of new residential
properties, acquisition of companies in homebuilding and related businesses, and
repayment of existing indebtedness.

SUMMARY CONSOLIDATED FINANCIAL INFORMATION AND OPERATING DATA

The following summary consolidated financial information for the five years
ended September 30, 2001, is derived from the audited consolidated financial
statements of D.R. Horton, Inc. On April 20, 1998, we consummated a merger with
Continental Homes Holding Corp. which was treated as a pooling of interests for
accounting purposes. Therefore, all financial amounts have been restated as if
we had been combined throughout the periods presented. The following summary
consolidated financial information for the three months ended December 31, 2001
and 2000 is derived from our unaudited consolidated financial statements.

<Table>
<Caption>
THREE MONTHS ENDED
FOR THE FISCAL YEARS ENDED SEPTEMBER 30, DECEMBER 31,
--------------------------------------------------------- ----------------------
1997 1998 1999 2000 2001 2000 2001
--------- --------- ---------- --------- --------- --------- ---------
(IN MILLIONS, EXCEPT FOR NUMBER OF HOMES AND PER SHARE AMOUNTS)

INCOME STATEMENT DATA:
Revenues ................................ $ 1,578.4 $ 2,176.9 $ 3,156.2 $ 3,653.7 $ 4,455.5 $ 887.7 $ 1,159.9
Income before cumulative effect of
change in accounting principle ........ 65.0 93.4 159.8 191.7 254.9 47.7 73.4
Income per share before cumulative
effect of change in accounting
principle: (1)
Basic (2) ............................ $ 0.71 $ 0.96 $ 1.40 $ 1.70 $ 2.25 $ 0.42 $ 0.64
Diluted (3) .......................... $ 0.64 $ 0.86 $ 1.38 $ 1.69 $ 2.21 $ 0.42 $ 0.62
Cash dividends declared per common
share ................................. $ 0.06 $ 0.09 $ 0.11 $ 0.15 $ 0.19 $ 0.04 $ 0.05
Weighted average number of shares
outstanding: (1)
Basic (2) ............................ 91.8 96.8 113.9 112.6 113.5 112.4 115.4
Diluted (3) .......................... 107.7 112.7 116.1 113.6 115.4 114.2 117.5

SELECTED OPERATING DATA:
Number of homes closed .................. 10,038 13,944 18,395 19,144 21,371 4,290 5,691
New sales orders, net (homes) (4) ....... 10,551 15,952 18,911 19,223 22,179 4,229 5,144
New sales orders, net ($ value) (4) ..... $ 1,595.7 $ 2,533.2 $ 3,266.2 $ 3,676.4 $ 4,502.6 $ 900.3 $ 1,021.4
Sales backlog at end of period
(homes) (5) ........................... 3,961 6,341 7,309 7,388 9,263 7,327 8,716
Sales backlog at end of period
($ value) (5) ......................... $ 609.2 $ 1,052.9 $ 1,356.5 $ 1,536.9 $ 1,933.8 $ 1,581.1 $ 1,829.5
</Table>

<Table>
<Caption>
AS OF SEPTEMBER 30, AS OF DECEMBER 31,
--------------------------------------------------------- ----------------------
1997 1998 1999 2000 2001 2000 2001
--------- --------- ---------- --------- --------- --------- ---------

BALANCE SHEET DATA:
Inventories ............................. $ 1,024.3 $ 1,358.0 $ 1,866.1 $ 2,191.0 $ 2,804.4 $ 2,391.4 $ 2,980.1
Total assets ............................ 1,248.3 1,667.8 2,361.8 2,694.6 3,652.2 2,884.7 3,660.8
Notes payable ........................... 650.7 854.5 1,190.6 1,344.4 1,884.3 1,485.0 1,854.7
Stockholders' equity .................... 427.9 549.4 797.6 969.6 1,250.2 1,020.2 1,323.3
</Table>

(1) Income per share amounts and weighted average number of shares outstanding
have been adjusted as appropriate to reflect the effects of the 9% and 11%
stock dividends of September 2000 and March 2001 and the effect of the
three-for-two stock split, to be effected as a stock dividend, declared on
March 4, 2002 and payable April 9, 2002 to stockholders of record on March
26, 2002.

On February 21, 2002, we completed the acquisition of Schuler Homes. In
conjunction with the Schuler acquisition, we published unaudited pro forma
combined income statements for the year ended September 30, 2001 and the
three months ended December 31, 2001, assuming the acquisition had occurred
on October 1, 2000 and October 1, 2001, respectively. Such income
statements included unaudited pro forma combined basic and diluted income
per share amounts for those periods. Adjusted for the three-for-two stock
split, the unaudited pro forma combined basic income

per share for the year ended September 30, 2001 (before the cumulative
effect of a change in accounting principle), and the three months ended
December 31, 2001, would have been $2.42 and $0.69, respectively. Unaudited
pro forma combined diluted income per share for those periods (before the
cumulative effect of a change in accounting principle) would have been
$2.38 and $0.68, respectively.

(2) Basic income per share before cumulative effect of change in accounting
principle is based upon the weighted average number of shares of common
stock outstanding during each year.

(3) Diluted income per share before cumulative effect of change in accounting
principle is based upon the weighted average number of shares of common
stock outstanding during each year, adjusted for the effects of dilutive
securities outstanding.

(4) Represents homes placed under contract during the period, net of
cancellations.

(5) Represents homes under contract but not yet closed at the end of the
period.

RATIO OF EARNINGS TO FIXED CHARGES

The following table sets forth our ratio of earnings to fixed charges for the
five years ended September 30, 2001 and the three months ended December 31, 2001
and 2000:

<Table>
<Caption>
THREE MONTHS ENDED
YEAR ENDED SEPTEMBER 30, DECEMBER 31,
------------------------------------------------------- ------------------
1997 1998 1999 2000 2001 2000 2001
------- ------- ------- ------- ------- ------- ------

Ratio .......... 2.88 3.13 4.10 3.52 3.69 3.16 3.68
</Table>

For purposes of computing the ratio of earnings to fixed charges, earnings
consist of the sum of income before income tax and the cumulative effect of a
change in accounting principle, interest amortized to cost of sales, interest
expense and the portion of rent expense deemed to represent interest. Fixed
charges consist of interest incurred, whether expensed or capitalized, including
amortization of debt issuance costs, if applicable, and the portion of rent
expense deemed to represent interest. To date, we have not issued any preferred
stock; therefore, the ratios of earnings to combined fixed charges and preferred
stock dividend requirements are the same as the ratios of earnings to fixed
charges presented above.

DESCRIPTION OF DEBT SECURITIES

We may issue debt securities under one or more indentures entered into or
to be entered into between us, most of our subsidiaries if they guarantee the
debt securities, and American Stock Transfer & Trust Company, New York, New
York, as trustee, or another trustee chosen by us, qualified to act as such
under the Trust Indenture Act and appointed in a supplemental indenture with
respect to a particular series. The indentures are governed by the Trust
Indenture Act.

The following is a summary of the indentures. It does not restate the
indentures entirely. We urge you to read the indentures. We are filing the
indentures as exhibits to the registration statement of which this prospectus is
a part, and you may inspect them at the office of the trustee, or as described
under "Incorporation of Certain Documents By Reference." References below to an
"indenture" are references to the applicable indenture under which a particular
series of debt securities is issued.

TERMS OF THE DEBT SECURITIES

Our debt securities will be unsecured obligations of D.R. Horton, Inc. We
may issue them in one or more series. Authorizing resolutions or a supplemental
indenture will set forth the specific terms of each series of debt securities.
We will provide a prospectus supplement for each series of debt securities that
will describe:

o the title of the debt securities and whether the debt securities are
senior, senior subordinated, or subordinated debt securities;

o the aggregate principal amount of the debt securities and any limit
upon the aggregate principal amount of the series of debt securities;

o the date or dates on which principal of the debt securities will be
payable and the amount of principal which will be payable;

o the rate or rates (which may be fixed or variable) at which the debt
securities will bear interest, if any, as well as the dates from which
interest will accrue, the dates on which interest will be payable and
the record date for the interest payable on any payment date;

o the currency or currencies in which principal, premium, if any, and
interest, if any, will be payable;

o the place or places where principal, premium, if any, and interest, if
any, on the debt securities will be payable and where debt securities
which are in registered form can be presented for registration of
transfer or exchange; and the identification of any depositary or
depositaries for any global debt securities;

o any provisions regarding our right to redeem or purchase debt
securities or the right of holders to require us to redeem or purchase
debt securities;

o the right, if any, of holders of the debt securities to convert them
into our common stock or other securities, including any provisions
intended to prevent dilution of the conversion rights;

o any provisions requiring or permitting us to make payments to a
sinking fund to be used to redeem debt securities or a purchase fund
to be used to purchase debt securities;

o the percentage of the principal amount at which debt securities will
be issued and, if other than the full principal amount thereof, the
percentage of the principal amount of the debt securities which is
payable if maturity of the debt securities is accelerated because of a
default;

o the terms, if any, upon which debt securities may be subordinated to
our other indebtedness;

o any additions to, modifications of or deletions from the terms of the
debt securities with respect to events of default or covenants or
other provisions set forth in the indenture; and

o any other material terms of the debt securities, which may be
different than the terms set forth in this prospectus.

Each prospectus supplement will describe, as to the debt securities to
which it relates, any guarantees by our direct and indirect subsidiaries which
may guarantee the debt securities, including the terms of subordination, if any,
of any such guarantee.

The applicable prospectus supplement will also describe any material
covenants to which a series of debt securities will be subject.

EVENTS OF DEFAULT AND REMEDIES

Unless otherwise described in the prospectus supplement, an event of
default with respect to any series of debt securities will be defined in the
indenture or applicable supplemental indenture as being:

o our default in payment of the principal of or premium, if any, on any
of the debt securities of such series;

o default for 30 days in payment of any installment of interest on any
debt security of such series beyond any applicable grace period;

o default by us or any guarantor subsidiary for 60 days after notice in
the observance or performance of any other covenants in the indenture
or applicable supplemental indenture relating to such series; and

o bankruptcy, insolvency or reorganization of our company or our
significant guarantor subsidiaries.

The indenture will provide that the trustee may withhold notice to the
holders of any series of debt securities of any default, except a default in
payment of principal, premium, if any, or interest, if any, with respect to such
series of debt securities, if the trustee considers it in the interest of the
holders of such series of debt securities to do so.

The indenture will provide that if any event of default has occurred and is
continuing with respect to any series of debt securities, the trustee or the
holders of not less than 25% in principal amount of such series of debt
securities then outstanding may declare the principal of all the debt securities
of such series to be due and payable immediately. However, the holders of a
majority in principal amount of the debt securities of such series then
outstanding by written notice to the trustee and to us may

waive any event of default with respect to such series of debt securities, other
than any event of default in payment of principal or interest. Holders of a
majority in principal amount of the then outstanding debt securities of any
series may rescind an acceleration with respect to such series and its
consequences, except an acceleration due to nonpayment of principal or interest
on such series, if the rescission would not conflict with any judgment or decree
and if all existing events of default with respect to such series have been
cured or waived.

The holders of a majority of the outstanding principal amount of the debt
securities of any series will have the right to direct the time, method and
place of conducting any proceedings for any remedy available to the trustee with
respect to such series, subject to limitations specified in the indenture.

DEFEASANCE

The indenture will permit us and our guarantor subsidiaries to terminate
all our respective obligations under the indenture as they relate to any
particular series of debt securities, other than the obligation to pay interest,
if any, on and the principal of the debt securities of such series and certain
other obligations, at any time by:

o depositing in trust with the trustee, under an irrevocable trust
agreement, money or U.S. government obligations in an amount
sufficient to pay principal of and interest, if any, on the debt
securities of such series to their maturity, and

o complying with other conditions, including delivery to the trustee of
an opinion of counsel or a ruling received from the Internal Revenue
Service to the effect that holders will not recognize income, gain or
loss for federal income tax purposes as a result of our exercise of
such right and will be subject to federal income tax on the same
amount and in the same manner and at the same times as would have been
the case otherwise.

In addition, the indenture will permit us and our guarantor subsidiaries to
terminate all of our respective obligations under the indenture as they relate
to any particular series of debt securities, including the obligations to pay
interest, if any, on and the principal of the debt securities of such series and
certain other obligations, at any time by:

TRANSFER AND EXCHANGE

A holder will be able to transfer or exchange debt securities only in
accordance with the indenture. The registrar may require a holder, among other
things, to furnish appropriate endorsements and transfer documents, and to pay
any taxes and fees required by law or permitted by the indenture.

AMENDMENT, SUPPLEMENT AND WAIVER

Without the consent of any holder, we and the trustee may amend or
supplement the indenture, the debt securities or the guarantees of debt
securities to:

o cure any ambiguity, defect or inconsistency;

o create a series and establish its terms;

o provide for uncertificated debt securities in addition to or in place
of certificated debt securities;

o make any change that does not adversely affect the legal rights of any
holder; or

o delete a guarantor subsidiary which, in accordance with the terms of
the indenture, ceases to be liable on its guarantee of debt
securities.

With the exceptions discussed below, we and the trustee may amend or
supplement the indenture, the debt securities or the guarantees of a particular
series with the consent of the holders of at least a majority in principal
amount of the debt securities of such series then outstanding. In addition, the
holders of a majority in principal amount of the debt securities of such series
then outstanding may waive any existing default under, or compliance with, any
provision of the indenture relating to a particular series of debt securities,
other than any event of default in payment of interest or principal. These
consents and waivers may be obtained in connection with a tender offer or
exchange offer for debt securities.

WITHOUT THE CONSENT OF EACH HOLDER AFFECTED, WE AND THE TRUSTEE MAY NOT:

o reduce the amount of debt securities of such series whose holders must
consent to an amendment, supplement or waiver,

o reduce the rate of or change the time for payment of interest,

o reduce the principal of or change the fixed maturity of any debt
security or alter the provisions with respect to redemptions or
mandatory offers to repurchase debt securities,

o make any debt security payable at a place or in money other than that
stated in the debt security,

o modify the ranking or priority of the debt securities or any
guarantee,

o release any guarantor from any of its obligations under its guarantee
or the indenture except in accordance with the indenture, or

o waive a continuing default in the payment of principal of or interest
on the debt securities.

The right of any holder to participate in any consent required or sought
pursuant to any provision of the indenture, and our obligation to obtain any
such consent otherwise required from such holder, may be subject to the
requirement that such holder shall have been the holder of record of debt
securities with respect to which such consent is required or sought as of a date
identified by the trustee in a notice furnished to holders in accordance with
the indenture.

CONCERNING THE TRUSTEE

In the ordinary course of its business, American Stock Transfer and Trust
Company, the trustee, provides, and may continue to provide, service to us as
transfer agent for our common stock and trustee under indentures relating to our
8-3/8% Senior Notes due 2004, 10-1/2% Senior Notes due 2005, 8% Senior Notes due
2009, 9.75% Senior Subordinated Notes due 2010, 9.375% Senior Subordinated Notes
due 2011, 7.875% Senior Notes due 2011 and Zero Coupon Convertible Senior Notes
due 2021. The indenture contains, or will contain, limitations on the rights of
the trustee, should it become our creditor, to obtain payment of claims in
specified cases or to realize on property received in respect of any such claim
as security or otherwise. The indenture permits, or will permit, the trustee to
engage in other transactions; however, if it acquires any conflicting interest,
it must eliminate such conflict or resign.

The indenture provides, or will provide, that in case an event of default
occurs and is not cured, the trustee will be required, in the exercise of its
power, to use the degree of care of a prudent person in similar circumstances in
the conduct of such person's own affairs. The trustee may refuse to perform any
duty or exercise any right or power under the indenture, unless it receives
indemnity satisfactory to it against any loss, liability or expense.

GOVERNING LAW

The laws of the State of New York govern, or will govern, the indenture,
the debt securities and the guarantees of the debt securities.

DESCRIPTION OF COMMON STOCK, PREFERRED STOCK AND DEPOSITARY SHARES

Our authorized capital stock is 200,000,000 shares of common stock, $.01
par value, and 30,000,000 shares of preferred stock, $.10 par value. At March 6,
2002, 97,373,084 shares of common stock and no shares of preferred stock were
outstanding. We have declared a three-for-two stock split, to be effected as a
stock dividend, payable on April 9, 2002 to holders of record on March 26, 2002.

COMMON STOCK

Holders of our common stock are entitled to one vote for each share held of
record on all matters submitted to a vote of stockholders. The vote of the
holders of a majority of the stock represented at a meeting at which a quorum is
present is generally required to take stockholder action, unless a greater vote
is required by law. The holders are not entitled to cumulative voting in the
election of directors. Accordingly, the holder or holders of a majority of the
outstanding shares of common stock will be able to elect our entire board of
directors.

Holders of common stock have no preemptive rights. They are entitled to
such dividends as may be declared by our board of directors out of funds legally
available for such purpose. The common stock is not entitled to any sinking
fund, redemption or conversion provisions. On our liquidation, dissolution or
winding up, the holders of common stock are entitled to share ratably in our net
assets remaining after the payment of all creditors and liquidation preferences
of preferred stock, if any. The outstanding shares of common stock are duly
authorized, validly issued, fully paid and nonassessable. There will be a
prospectus supplement relating to any offering of common stock offered by this
prospectus.

The transfer agent and registrar for the common stock is American Stock
Transfer & Trust Company, New York, New York, which currently serves as trustee
for 8-3/8% Senior Notes due 2004, 10-1/2% Senior Notes due 2005, 8% Senior Notes
due 2009, 9.75% Senior Subordinated Notes due 2010, 9.375% Senior Subordinated
Notes due 2011, 7.875% Senior Notes due 2011 and Zero Coupon Convertible Senior
Notes due 2021 and may also serve as trustee under other indentures for debt
securities offered by this prospectus.

The following provisions in our charter or bylaws may make a takeover of
our company more difficult:

o an article in our charter prohibiting stockholder action by written
consent;

o an article in our charter requiring the affirmative vote of the
holders of two-thirds of the outstanding shares of common stock to
remove a director;

o a bylaw limiting the persons who may call special meetings of
stockholders to our board of directors or a committee authorized to
call a meeting by the board or the bylaws; and

o bylaws providing time limitations for nominations for election to the
board of directors or for proposing matters which can be acted upon at
stockholders' meetings.

These provisions may delay stockholder actions with respect to business
combinations and the election of new members to our board of directors. As such,
the provisions could discourage open market purchases of our common stock
because a stockholder who desires to participate in a business combination or
elect a new director may consider them disadvantageous. Additionally, the
issuance of preferred stock could delay or prevent a change of control or other
corporate action.

As a Delaware corporation, we are subject to Section 203 of the Delaware
General Corporation Law. In general, Section 203 prevents an "interested
stockholder" from engaging in a "business combination" with us for three years
following the date that person became an interested stockholder, unless:

o before that person became an interested stockholder, our board of
directors approved the transaction in which the interested stockholder
became an interested stockholder or approved the business combination;

o upon completion of the transaction that resulted in the interested
stockholder becoming an interested stockholder, the interested
stockholder owned at least 85% of our voting stock outstanding at the
time the transaction commenced, excluding stock held by persons who
are both directors and officers of our corporation or by certain
employee stock plans; or

o on or following the date on which that person became an interested
stockholder, the business combination is approved by our board of
directors and authorized at a meeting of stockholders by the
affirmative vote of the holders of at least 66-2/3% of our outstanding
voting stock excluding shares held by the interested stockholder.

A "interested stockholder" is generally a person owning 15% or more of our
outstanding voting stock. A "business combination" includes mergers, asset sales
and other transactions resulting in a financial benefit to the interested
stockholder.

PREFERRED STOCK

We may issue preferred stock in series with any rights and preferences
which may be authorized by our board of directors. We will distribute a
prospectus supplement with regard to each particular series of preferred stock.
Each prospectus supplement will describe, as to the series of preferred stock to
which it relates:

o the title of the series of preferred stock;

o any limit upon the number of shares of the series of preferred stock
which may be issued;

o the preference, if any, to which holders of the series of preferred
stock will be entitled upon our liquidation;

o the date or dates on which we will be required or permitted to redeem
the preferred stock;

o the terms, if any, on which we or holders of the preferred stock will
have the option to cause the preferred stock to be redeemed or
purchased;

o the voting rights, if any, of the holders of the preferred stock;

o the dividends, if any, which will be payable with regard to the series
of preferred stock, which may be fixed dividends or participating
dividends and may be cumulative or non-cumulative;

o the right, if any, of holders of the preferred stock to convert it
into another class of our stock or securities, including provisions
intended to prevent dilution of those conversion rights;

o any provisions by which we will be required or permitted to make
payments to a sinking fund to be used to redeem preferred stock or a
purchase fund to be used to purchase preferred stock; and

o any other material terms of the preferred stock.

Holders of shares of preferred stock will not have preemptive rights.

DEPOSITARY SHARES

General. We may, at our option, elect to offer fractional shares of
preferred stock, rather than full shares of preferred stock. If we exercise this
option, we will issue to the public receipts for depositary shares, and each of
these depositary shares will represent a fraction (to be set forth in the
applicable prospectus supplement) of a share of a particular series of preferred
stock.

The shares of any series of preferred stock underlying the depositary
shares will be deposited under a deposit agreement between us and a bank or
trust company selected by us. The depositary will have its principal office in
the United States and a combined capital and surplus of at least $50,000,000.
Subject to the terms of the deposit agreement, each owner of a depositary share
will be entitled, in proportion, to the applicable fraction of a share of
preferred stock underlying that depositary share, to all the rights and
preferences of the preferred stock underlying that depositary share. Those
rights include dividend, voting, redemption and liquidation rights.

The depositary shares will be evidenced by depositary receipts issued
pursuant to the deposit agreement. Depositary receipts will be distributed to
those persons purchasing the fractional shares of preferred stock underlying the
depositary shares, in accordance with the terms of the offering. Copies of the
forms of deposit agreement and depositary receipt will be filed as exhibits to
the registration statement. The following summary of the deposit agreement, the
depositary shares and the depositary receipts is not complete. You should refer
to the forms of the deposit agreement and depositary receipts that will be filed
with the SEC in connection with the offering of the specific depositary shares.

Pending the preparation of definitive engraved depositary receipts, the
depositary may, upon our written order, issue temporary depositary receipts
substantially identical to the definitive depositary receipts but not in
definitive form. These temporary depositary receipts entitle their holders to
all the rights of definitive depositary receipts which are to be prepared
without unreasonable delay. Temporary depositary receipts will then be
exchangeable for definitive depositary receipts at our expense.

Dividends and Other Distributions. The depositary will distribute all cash
dividends or other cash distributions received with respect to the preferred
stock to the record holders of depositary shares relating to the preferred stock
in proportion to the number of depositary shares owned by those holders.

If there is a distribution other than in cash, the depositary will
distribute property received by it to the record holders of depositary shares
that are entitled to receive the distribution, unless the depositary determines
that it is not feasible to make the distribution. If this occurs, the depositary
may, with our approval, sell the property and distribute the net proceeds from
the sale to the applicable holders.

Redemption of Depositary Shares. If a series of preferred stock represented
by depositary shares is subject to redemption, the depositary shares will be
redeemed from the proceeds received by the depositary resulting from the
redemption, in whole or in part, of that series of preferred stock held by the
depositary. The redemption price per depositary share will be equal to the
applicable redemption fraction of the redemption price per share payable with
respect to that series of the preferred stock. Whenever we redeem shares of
preferred stock that are held by the depositary, the depositary will redeem, as
of the same redemption date, the number of depositary shares representing the
shares of preferred stock so redeemed. If fewer than all the depositary shares
are to be redeemed, the depositary shares to be redeemed will be selected by lot
or pro rata as may be determined by the depositary.

Voting the Preferred Stock. Upon receipt of notice of any meeting at which
the holders of the preferred stock are entitled to vote, the depositary will
mail the information contained in such notice to the record holders of the
depositary shares underlying the preferred stock. Each record holder of the
depositary shares on the record date, which will be the same date as the record
date for the preferred stock, will be entitled to instruct the depositary as to
the exercise of the voting rights pertaining to the amount of the preferred
stock represented by the holder's depositary shares. The depositary will then
try, as far as practicable, to vote the number of shares of preferred stock
underlying those depositary shares in accordance with such instructions. We will
agree to take all actions which may be deemed necessary by the depositary to
enable the depositary to do so. The depositary will not vote the shares of
preferred stock to the extent it does not receive specific instructions from the
holders of depositary shares underlying the preferred stock.

Amendment and Termination of the Depositary Agreement. The form of
depositary receipt evidencing the depositary shares and any provision of the
deposit agreement may at any time be amended by agreement between us and the
depositary. However, any amendment which materially and adversely alters the
rights of the holders of depositary shares will not be effective unless the
amendment has been approved by the holders of at least a majority of the
depositary shares then outstanding. The deposit agreement may be terminated by
us or by the depositary only if (a) all outstanding depositary shares have been
redeemed or (b) there has been a final distribution of the underlying preferred
stock in connection with our liquidation, dissolution or winding up and the
preferred stock has been distributed to the holders of depositary receipts.

Charges of Depositary. We will pay all transfer and other taxes and
governmental charges arising solely from the existence of the depositary
arrangements. We will also pay charges of the depositary in connection with the
initial deposit of the preferred stock and any redemption of the preferred
stock. Holders of depositary receipts will pay other transfer and other taxes
and governmental charges and those other charges, including a fee for the
withdrawal of shares of preferred stock upon surrender of depositary receipts,
as are expressly provided in the deposit agreement to be for their accounts.

Miscellaneous. The depositary will forward to holders of depositary
receipts all reports and communications from us that we deliver to the
depositary and that we are required to furnish to the holders of the preferred
stock.

Neither we nor the depositary will be liable if either of us is prevented
or delayed by law or any circumstance beyond our control in performing our
respective obligations under the deposit agreement. Our obligations and those of
the depositary will be limited to performance in good faith of our respective
duties under the deposit agreement. Neither we nor the depositary will be
obligated to prosecute or defend any legal proceeding in respect of any
depositary shares or preferred stock unless satisfactory indemnity is furnished.
We and the depositary may rely upon written advice of counsel or accountants, or
upon information provided by persons presenting preferred stock for deposit,
holders of depositary receipts or other persons believed to be competent and on
documents believed to be genuine.

Resignation and Removal of Depositary. The depositary may resign at any
time by delivering notice to us of its election to resign. We may remove the
depositary at any time. Any resignation or removal will take effect upon the
appointment of a successor depositary and its acceptance of the appointment. The
successor depositary must be appointed within 60 days after delivery of the
notice of resignation or removal and must be a bank or trust company having its
principal office in the United States and having a combined capital and surplus
of at least $50,000,000.

DESCRIPTION OF WARRANTS

We may issue warrants for the purchase of debt securities, preferred stock,
common stock, or units of two or more of these types of securities. Each series
of warrants will be issued under a separate warrant agreement to be entered into
between us and a bank or trust company, as warrant agent. The warrant agent will
act solely as our agent in connection with the warrants and will

not assume any obligation or relationship of agency or trust for or with any
registered holders of warrants or beneficial owners of warrants.

We will distribute a prospectus supplement with regard to each issue of
warrants. Each prospectus supplement will describe:

o in the case of warrants to purchase debt securities, the designation,
aggregate principal amount, currencies, denominations and terms of the
series of debt securities purchasable upon exercise of the warrants
and the price at which you may purchase the debt securities upon
exercise;

o in the case of warrants to purchase preferred stock, the designation,
number of shares, stated value and terms, such as liquidation,
dividend, conversion and voting rights, of the series of preferred
stock purchasable upon exercise of the warrants and the price at which
you may purchase such number of shares of preferred stock of such
series upon such exercise;

o in the case of warrants to purchase common stock, the number of shares
of common stock purchasable upon the exercise of the warrants and the
price at which you may purchase such number of shares of common stock
upon such exercise;

o in the case of warrants to purchase units of two or more securities,
the type, number, and terms of the units purchasable upon exercise of
the warrants and the price at which you may purchase the units upon
such exercise;

o the period during which you may exercise the warrants;

o any provision adjusting the securities that may be purchased on
exercise of the warrants, and the exercise price of the warrants, to
prevent dilution or otherwise;

o the place or places where warrants can be presented for exercise or
for registration of transfer or exchange; and

o any other material terms of the warrants.

Warrants for the purchase of preferred stock and common stock will be
offered and exercisable for U.S. dollars only. Warrants will be issued in
registered form only. The exercise price for warrants will be subject to
adjustment as described in the applicable prospectus supplement.

Prior to the exercise of any warrants to purchase debt securities,
preferred stock or common stock, holders of the warrants will not have any of
the rights of holders of the debt securities, preferred stock or common stock
purchasable upon exercise, including:

o in the case of warrants for the purchase of debt securities, the right
to receive payments of principal of, any premium or interest on the
debt securities purchasable upon exercise or to enforce covenants in
the applicable indenture; or

o in the case of warrants for the purchase of preferred stock or common
stock, the right to vote or to receive any payments of dividends on
the preferred stock or common stock purchasable upon exercise.

DESCRIPTION OF STOCK PURCHASE CONTRACTS
AND STOCK PURCHASE UNITS

We may issue stock purchase contracts, including contracts obligating
holders to purchase from us, and obligating us to sell to the holders, a
specified number of shares of common stock at a future date or dates. The
consideration per share of common stock may be fixed at the time stock purchase
contracts are issued or may be determined by reference to a specific formula set
forth in the stock purchase contracts. The stock purchase contracts may be
issued separately, or as part of stock purchase units consisting of a stock
purchase contract and debt securities, trust preferred securities or debt
obligations of third parties, including U.S. treasury securities, securing the
holders' obligations to purchase the common stock under the stock purchase
contracts. The stock purchase contracts may require us to make periodic payments
to the holders of the stock purchase units or vice versa, and such payments may
be unsecured or prefunded on some basis. The stock purchase contracts may
require holders to secure their obligations thereunder in a specified manner.

The applicable prospectus supplement will describe the terms of any stock
purchase contracts or stock purchase units. The description in the prospectus
supplement will not necessarily be complete, and reference will be made to the
stock purchase contract, and, if applicable, collateral or depositary
arrangements, relating to such stock purchase contracts or stock purchase

units. Material United States federal income tax considerations applicable to
the stock purchase units and the stock purchase contracts will be discussed in
the related prospectus supplement.

DESCRIPTION OF UNITS

As specified in the applicable prospectus supplement, units will consist of
one or more stock purchase contracts, warrants, debt securities, debt securities
guarantees, trust preferred securities, guarantees of trust preferred
securities, preferred stock, common stock, or any combination thereof. You
should refer to the applicable prospectus supplement for:

o all terms of the units and of the stock purchase contracts, warrants,
debt securities, debt securities guarantees, trust preferred
securities, guarantees of trust preferred securities, shares of
preferred stock or shares of common stock or any combination thereof
comprising the units, including whether and under what circumstances
the securities comprising the units may or may not be traded
separately;

o a description of the terms of any unit agreement governing the units;
and

o a description of the provisions for the payment, settlement, transfer
or exchange of the units.

DESCRIPTION OF TRUST PREFERRED SECURITIES

DESCRIPTION OF TRUST SECURITIES

Each trust may issue only one series of trust preferred securities having
terms described in its related prospectus supplement. Each trust agreement will
be qualified as an indenture under the Trust Indenture Act and will contain the
terms of the trust preferred securities. The property trustee will act as
indenture trustee for purposes of the Trust Indenture Act.

We will set forth the terms of the trust preferred securities, including
distributions, redemption, voting, liquidation rights and such other preferred,
deferred or other special rights or restrictions, in the trust agreement. In
addition, the Trust Indenture Act automatically makes some terms a part of the
trust agreement. The terms of the trust preferred securities will correspond to
the terms of the subordinated trust debt securities held by the trust and
described in the related prospectus supplement.

The prospectus supplement relating to the trust preferred securities of a
trust will include the specific terms of the series of trust preferred
securities being issued, including:

o the distinctive designation of the trust preferred securities;

o the number of trust preferred securities issuable by the trust;

o the annual distribution rate, or method of determining such rate, for
trust preferred securities and the date or dates upon which such
distributions will be payable and the record date or dates for the
payment of such distributions;

o whether distributions on trust preferred securities will be
cumulative, and, in the case of trust preferred securities having such
cumulative distribution rights, the date or dates or method of
determining the date or dates from which distributions on trust
preferred securities will be cumulative;

o the amount or amounts which will be paid out of the assets of the
trust to the holders of trust preferred securities upon voluntary or
involuntary dissolution, winding-up or termination of the trust;

o the obligation or right, if any, of the trust to purchase or redeem
trust preferred securities and the price or prices at which, the
period or periods within which, and the terms and conditions upon
which trust preferred securities will be purchased or redeemed, in
whole or in part, pursuant to such obligation or right;

o the voting rights, if any, of holders of trust preferred securities in
addition to those required by law, including the number of votes per
trust preferred security and any requirement for approval by the
holders of such trust preferred securities, or of trust preferred
securities issued by other trusts, or both, as a condition to
specified action or amendments to the trust agreement;

o the terms for any conversion or exchange into other securities;

o the terms and conditions, if any, upon which the subordinated trust
debt securities owned by the trust may be distributed to holders of
trust preferred securities;

o if applicable, any securities exchange upon which the trust preferred
securities will be listed; and

o any other relevant rights, preferences, privileges, limitations or
restrictions of trust preferred securities not inconsistent with the
trust agreement or with applicable law.

We will guarantee distributions on trust preferred securities to the extent
set forth below under "Description of the Trust Guarantee." We will describe
material United States federal income tax considerations applicable to trust
preferred securities in a prospectus supplement relating to the trust preferred
securities.

Each trust will issue a series of trust common securities in connection
with the issuance of trust preferred securities. Except for voting rights, the
terms of trust common securities will be substantially identical to the terms of
trust preferred securities. Trust common securities will rank equally with trust
preferred securities except that, upon an event of default under the trust
agreement, the rights of holders of trust common securities to payments will be
subordinated to the rights of holders of trust preferred securities. The trust
common securities will also carry the right to vote to appoint, remove or
replace any trustee of the trust. We will own all of the trust common
securities.

ENFORCEMENT OF CERTAIN RIGHTS BY HOLDERS OF TRUST PREFERRED SECURITIES

If an event of default as defined in the applicable trust agreement occurs
and is continuing, then the holders of trust preferred securities of such trust
would rely on the enforcement by the property trustee of its rights as a holder
of the applicable series of subordinated trust debt securities against us. In
addition, so long as their directions do not conflict with any rule of law or
with such trust agreement, and could not involve such property trustee in
personal liability in circumstances where reasonable indemnity would not be
adequate, the holders of a majority in aggregate liquidation amount of trust
preferred securities of such trust may direct the property trustee as to:

o the time, method and place of conducting any proceeding for any remedy
available to such property trustee;

o the exercise of any trust or power conferred upon such property
trustee under such trust agreement; and

o the exercise of the remedies available to the property trustee as a
holder of subordinated trust debt securities.

If such property trustee fails to enforce its rights under the subordinated
trust debt securities held by such trust, a holder of trust preferred securities
of such trust may, to the extent permitted by law, institute a legal proceeding
directly against us to enforce such property trustee's rights under such trust
agreement. In such case, the holder would not be required to institute a legal
proceeding against the property trustee, the trust or any other person. In no
event will such holder be permitted or authorized to affect, disturb or
prejudice the rights of any other holder or to obtain or to seek to obtain
priority or preference over any other holder or to enforce any right under such
trust agreement, except in the manner described in the trust agreement and for
the equal and ratable benefit of all such holders. Notwithstanding the
foregoing, a holder of trust preferred securities of such trust may institute a
proceeding directly against us for enforcement of payment to such holder of the
principal of or interest on the subordinated trust debt securities held by such
trust having a principal amount equal to the aggregate stated liquidation amount
of such trust preferred securities held by such holder, on or after the due
dates specified or provided for in such subordinated trust debt securities. In
such case, the holder would not be required to institute a legal proceeding
against the property trustee, the trust or any other person. In connection with
such proceeding, we will be subrogated to the rights of such holder under the
trust agreement to the extent of any payment made by us to such holder.

DESCRIPTION OF TRUST GUARANTEES

The following is a summary of information concerning the guarantees of the
trust preferred securities of each trust, which we refer to as the trust
guarantees. We will execute each trust guarantee for the benefit of holders of
trust preferred securities. We will qualify each trust guarantee as an indenture
under the Trust Indenture Act. We will identify the indenture trustee for
purposes of the Trust Indenture Act in a prospectus supplement with respect to
the trust preferred securities.

The following summary does not purport to be complete and is subject in all
respects to the provisions of, and is qualified in its entirety by reference to,
the form of trust guarantee, which will be filed as an exhibit to the
registration statement of which this prospectus forms a part. The trust
guarantee will be held by the property trustee for the benefit of holders of
trust preferred securities.

GENERAL

To the extent set forth in the trust guarantee, we will agree to pay in
full the guarantee payments, described below, without duplication of amounts
theretofore paid by or on behalf of the trust, as and when due regardless of any
defense, right of set off or counter-claim which we may have. With respect to
trust preferred securities issued by a trust, we will pay in full the following
payments or distributions as guarantee payments to the extent the trust fails to
pay or make such guarantee payments:

o any accrued and unpaid distributions on trust preferred securities, to
the extent such trust has funds legally and immediately available
therefor;

o the redemption price, to the extent such trust has funds legally and
immediately available therefor with respect to trust preferred
securities called for redemption; and

o upon voluntary or involuntary dissolution, winding up or termination
of such trust, other than in connection with the distribution of
subordinated trust debt securities to holders of trust preferred
securities or the redemption of all trust preferred securities, the
lesser of:

o the aggregate of the liquidation amount and all accrued and
unpaid distributions on such trust preferred securities to the
date of payment, to the extent such trust has funds legally and
immediately available therefor, and

o the amount of assets of the trust remaining available for
distribution to holders of trust preferred securities in
liquidation of the trust.

We will determine the redemption price and liquidation amount at the time
the trust preferred securities are issued. We may satisfy our obligation to make
a guarantee payment by direct payment of the required amounts to the holders of
such trust preferred securities or by causing the trust to pay such amounts to
such holders.

Each trust guarantee will not apply to any payment or distribution except
to the extent the applicable trust has funds legally available for such payment
or distribution. If we do not make interest payments on the subordinated trust
debt securities purchased by a trust, such trust will not pay distributions on
such trust preferred securities issued by such trust and will not have funds
legally available. The trust guarantee, when taken together with our obligations
under the subordinated trust debt securities, the applicable indenture and the
trust agreement, including our obligation to pay costs, expenses, debt, and
liabilities of such trust, other than with respect to the trust securities, will
be a full and unconditional guarantee, on a subordinated basis, by us of
payments due on the trust preferred securities from the time of issuance.

AMENDMENT OF TRUST GUARANTEE; ASSIGNMENT

Except for changes which do not materially adversely affect the rights of
holders of trust preferred securities, each trust guarantee may be amended only
with the approval of a majority in liquidation amount of trust preferred
securities issued by the applicable trust. The manner of obtaining any such
approval will be as set forth in the applicable trust agreement. The trust
guarantee will bind the successors, assigns, receivers, trustees and
representatives of us and continue to benefit the trust guarantee trustee and
holders of trust preferred securities. Except in connection with a
consolidation, merger, conveyance, transfer or lease involving us, permitted
under the applicable indenture, we may not assign our rights or delegate our
obligations under the trust guarantee.

TERMINATION OF THE TRUST GUARANTEE

Each trust guarantee will terminate as to the trust preferred securities
issued by the applicable trust:

o upon full payment of the redemption price of all trust preferred
securities of such trust,

o upon distribution of subordinated trust debt securities held by such
trust to the holders of and in exchange for trust preferred
securities, or

o upon full payment of amounts payable in accordance with the trust
agreement upon liquidation of such trust.

The trust guarantee will continue to be effective or will be reinstated, as the
case may be, if at any time any holder of trust preferred securities must repay
any sums paid to them under the trust preferred securities or trust guarantee.

EVENTS OF DEFAULT

An event of default under a trust guarantee will occur if we fail to make
the payments required by the trust guarantee.

The holders of a majority in liquidation amount of trust preferred
securities relating to such trust guarantee have the right to direct the time,
method and place of conducting any proceeding for any remedy available to such
trust guarantee trustee or to direct the exercise of any trust or power
conferred upon such trust guarantee trustee under the trust guarantee. If the
trust guarantee trustee fails to enforce such trust guarantee, any holder of
record of trust preferred securities relating to such trust preferred guarantee
may institute a legal proceeding directly against us to enforce the trust
guarantee trustee's rights, without first instituting any other legal
proceeding.

STATUS OF TRUST GUARANTEE

THE TRUST GUARANTEE WILL CONSTITUTE OUR UNSECURED OBLIGATION AND WILL RANK:

o subordinate and junior in right of payment to all of our other
liabilities, including the subordinated trust debt securities, except
those made equal or subordinate by their terms,

o equal with the most senior preferred stock which may now or hereafter
be issued or guaranteed by us; and

o senior to our common stock.

The terms of the trust preferred securities will provide that each holder
of trust preferred securities issued by such trust, by acceptance thereof,
agrees to the subordination provisions and other terms of the related trust
guarantee. Each trust guarantee will constitute a guarantee of payment and not
of collection. This means that the guaranteed party may institute a legal
proceeding directly against the guarantor to enforce its rights under such trust
guarantee without instituting a legal proceeding against any other person or
entity. Each trust guarantee will be deposited with the applicable trust
guarantee trustee to be held for the benefit of the holders of such trust
preferred securities. Except as otherwise noted herein, the trust guarantee
trustee has the right to enforce the trust guarantee on behalf of the holders of
the related trust preferred securities. Except as described under "Termination
of the Trust Guarantee" above, the trust guarantee will not be discharged except
by payment of the guarantee payments in full without duplication of amounts
theretofore paid by the trust.

INFORMATION CONCERNING TRUST GUARANTEE TRUSTEE

The trust guarantee trustee, prior to the occurrence of a default with
respect to the trust guarantee and after the curing of all such defaults that
may have occurred, will undertake to perform only such duties as are
specifically set forth in the trust guarantee and, during the continuance of any
default, will exercise the same degree of care as a prudent individual would
exercise in the conduct of such individual's own affairs. Subject to such
provisions, the trust guarantee trustee will be under no obligation to exercise
any of the powers vested in it by the trust guarantee at the request of any
holder of trust preferred securities, unless offered reasonable indemnity
against the costs, expenses and liabilities which might be incurred thereby.
However, in any event, the trust guarantee trustee must exercise the rights and
powers vested in it by such trust guarantee upon the occurrence of an event of
default under such trust guarantee. The trust guarantee trustee also serves as
property trustee. In the ordinary course of its business, American Stock
Transfer and Trust Company, the trustee, provides, and may continue to provide,
service to us as transfer agent for our common stock and trustee under
indentures relating to our 8-3/8% Senior Notes due 2004, 10-1/2% Senior Notes
due 2005, 8% Senior Notes due 2009, 9.75% Senior Subordinated Notes due 2010,
9.375% Senior Subordinated Notes due 2011, 7.875% Senior Notes due 2011 and Zero
Coupon Convertible Senior Notes due 2021.

GOVERNING LAW

The trust guarantee will be governed by the laws of the State of New York.

AGREEMENT AS TO EXPENSES AND LIABILITIES

As will be required by the trust agreement, we will enter into an agreement
in which we irrevocably and unconditionally guarantee to each person or entity
to whom the trust becomes indebted or liable the full payment of any
indebtedness, expenses or liabilities of the trust. This separate agreement as
to expenses and liabilities does not include obligations of the trust to pay to
the holders of the related trust securities or other similar interests in the
trust the amounts due such holders pursuant to the terms of such trust
securities or such other similar interests, as the case may be.

ADDITIONAL DESCRIPTION OF SUBORDINATED TRUST DEBT SECURITIES ISSUED TO THE
TRUSTS

Set forth below is a description of the terms of the subordinated trust
debt securities which each trust will hold as trust assets. The subordinated
trust debt securities may be issued from time to time in one or more series
under an indenture between us and American Stock Transfer and Trust Company, as
indenture trustee, or another trustee chosen by us, qualified to act as such
under the Trust Indenture Act and appointed in a supplemental indenture with
respect to a particular series. The following description does not purport to be
complete and is subject to, and is qualified in its entirety by reference to,
the applicable indenture and supplements creating and governing the subordinated
trust debt securities, which will be filed as exhibits to the registration
statement of which this prospectus forms a part. The terms of the subordinated
trust debt securities will include those stated in the indenture and the related
supplemental indenture and those made a part of the indenture by reference to
the Trust Indenture Act.

Upon a dissolution of a trust, the property trustee, following satisfaction
of liabilities to creditors of the trust in accordance with the provisions of
applicable law, may distribute the subordinated trust debt securities held by
such trust to the holders of trust securities in liquidation of such trust.

If the property trustee distributes any subordinated trust debt securities
to holders of trust preferred securities, we will use our best efforts to have
such subordinated trust debt securities traded on the same stock exchange, if
any, as the related trust preferred securities are traded.

GENERAL

Subordinated trust debt securities will be issued in a principal amount
equal to the aggregate stated liquidation amount of trust preferred securities,
plus our investment in trust common securities.

The entire principal amount of the subordinated trust debt securities held
by each trust will mature and become due and payable, together with any accrued
and unpaid interest thereon, including additional interest, if any, on the date
set forth in the applicable prospectus supplement.

If subordinated trust debt securities held by a trust are distributed to
holders of trust preferred securities of such trust in liquidation of such
holders' interests in such trust, such subordinated trust debt securities will
initially be issued as a global security. Under certain limited circumstances,
subordinated trust debt securities may be issued in certificated form in
exchange for a global security. In the event subordinated trust debt securities
are issued in certificated form, such subordinated trust debt securities will be
in denominations as specified in the applicable prospectus supplement and
integral multiples thereof and may be transferred or exchanged at the offices
described therein. We will make payments on subordinated trust debt securities
issued as a global security to the depositary for the subordinated trust debt
securities. In the event subordinated trust debt securities are issued in
certificated form, principal and interest will be payable, the transfer of the
subordinated trust debt securities will be registrable and subordinated trust
debt securities will be exchangeable for subordinated trust debt securities of
other denominations of a like aggregate principal amount at the corporate trust
office of the indenture trustee in New York, New York. In such an event,
however, at our option, we may pay interest by check mailed to the address of
the persons entitled thereto.

CERTAIN COVENANTS

If there has occurred any event that would constitute an indenture event of
default or we are in default with respect to our payment of any obligations
under the trust guarantee, then:

o we may not declare or pay any dividend on, make any distributions with
respect to, or redeem, purchase or make a liquidation payment with
respect to, any of our capital stock other than:

o purchases or acquisitions of shares of our common stock in
connection with the satisfaction by us of our obligations under
any employee benefit plans or any other contractual obligation of
ours, other than a contractual obligation ranking junior to the
subordinated trust debt securities,

o as a result of a reclassification of our capital stock or the
exchange or conversion of one class or series of our capital
stock for another class or series of our capital stock, or

o the purchase of fractional interests in shares of our capital
stock pursuant to the conversion or exchange provisions of such
capital stock or the security being converted or exchanged,

o we may not make any payment of interest, principal or premium, if any,
on or repay, repurchase or redeem any debt securities (including
guarantees) issued by us which rank junior to the subordinated trust
debt securities, and

o we may not make any guarantee payments with respect to the foregoing
(other than pursuant to the trust guarantee).

We will covenant, as long as trust preferred securities of a trust remain
outstanding:

o to maintain 100% ownership of trust common securities of such trust,

o not to cause such trust to terminate, except in connection with a
distribution of subordinated trust debt securities, and

o to use our reasonable efforts to cause such trust:

o to remain a statutory business trust, except in connection with
the distribution of subordinated trust debt securities held by
such trust to the holders of trust securities in liquidation of
such trust, the redemption of all trust securities, or certain
mergers, consolidations or amalgamations, each as permitted by
the trust agreement, and

o to otherwise continue to be classified as a grantor trust for
United States federal income tax purposes.

OPTIONAL REDEMPTION

We will have the right to redeem the subordinated trust debt securities, in
whole or in part, from time to time, without premium or penalty, on or after the
date set forth in the applicable prospectus supplement, upon not less than 30 or
more than 60 days' notice, at a redemption price equal to a premium on the
principal amount to be redeemed plus any accrued and unpaid interest, including
additional interest, if any, to the redemption date, as specified in the
applicable prospectus supplement. If a partial redemption of the trust preferred
securities resulting from a partial redemption of the subordinated trust debt
securities held by a trust would result in the delisting of the trust preferred
securities of such trust, we may only redeem such subordinated trust debt
securities held by such trust in whole. In addition, if a change in tax or
securities laws occurs that adversely affects specified tax or securities
characteristics of the trust, upon not less than 30 or more than 60 days notice,
within 90 days after the occurrence of such event and subject to the terms and
conditions of the subordinated indenture, we may redeem such subordinated trust
debt securities, in whole, at a price equal to 100% of the principal amount to
be redeemed plus any accrued but unpaid interest, including additional interest,
if any, to the redemption date. In the event of redemption of such subordinated
trust debt securities in part only, we will issue new subordinated trust debt
securities for the unredeemed portion in the name or names of the holders who
surrender their unredeemed subordinated trust debt securities.

INTEREST

Each subordinated trust debt security will bear interest at the rate set
forth in the applicable prospectus supplement from the original date of
issuance, payable quarterly in arrears on the interest payment dates which will
be specified in the prospectus supplement, to the person in whose name such
subordinated trust debt security is registered, subject to specified exceptions,
on the record date specified in the applicable prospectus supplement.

The amount of interest payable for any period will be computed on the basis
of a 360-day year of twelve 30-day months. In the event that any date on which
interest is payable on the subordinated debt securities is not a business day,
then we will pay the interest payable on such date on the next succeeding day
which is a business day, and without any interest or other payment in respect of
any such delay, except that, if such business day is in the next succeeding
calendar year, such payment shall be made on the immediately preceding business
day, in each case with the same force and effect as if made on such date.

OPTION TO EXTEND INTEREST PAYMENT PERIOD

Except to the extent set forth in the applicable prospectus supplement, we
will have the right at any time to defer payments of interest on subordinated
trust debt securities by extending the interest payment period for up to 20
consecutive quarters. At the end of such an extension period, we will pay all
interest then accrued and unpaid, including any additional interest, together
with interest thereon at the rate specified and to the extent permitted by
applicable law. We will covenant in the applicable indenture for the benefit of
the holders of a series of subordinated trust debt securities, that, subject to
the next succeeding sentence:

o we will not declare or pay any dividend on, or make any distributions
with respect to, or redeem, purchase, acquire or make a liquidation
payment with respect to, any of our capital stock, and

o we will not make any payment of interest, principal or premium, if
any, on or repay, repurchase or redeem any debt securities (including
guarantees other than the trust guarantee) issued by us which rank
junior to the applicable series of subordinated trust debt securities:

o if at such time we will have given notice of our election to
extend an interest payment period for a series of subordinated
trust debt securities and such extension shall be continuing, or

o if at such time an event of default with respect to a series of
subordinated trust debt securities will have occurred and be
continuing.

The preceding sentence, however, shall not restrict:

o any of the actions described in the preceding sentence resulting from
any reclassification of our capital stock or the exchange or
conversion of one class or series of our capital stock for another
class or series of our capital stock,

o repurchases, redemptions or other acquisitions of shares of our
capital stock in connection with any employment contract, benefit plan
or other similar arrangement with or for the benefit of employees,
officers or directors or a stock purchase and dividend reinvestment
plan,

o dividends or distributions in our capital stock, or

o the purchase of fractional interests in shares of our capital stock
pursuant to the conversion or exchange provisions of such capital
stock or the security being converted or exchanged.

Prior to the termination of any such extension period for a series of
subordinated trust debt securities, we may further defer payments of interest on
such subordinated trust debt securities, by extending the interest payment
period, provided that such extension period together with all such previous and
further extensions thereof for such series of subordinated trust debt securities
may not exceed 20 consecutive quarters or extend beyond the maturity of such
series of subordinated trust debt securities.

Upon the termination of any extension period for a series of subordinated
trust debt securities, and the payment of all accrued and unpaid interest on the
subordinated trust debt securities then due, we may select a new extension
period for such series of subordinated trust debt securities, as if no extension
period had previously been declared, subject to the above requirements. We will
not be required to pay interest on a series of subordinated trust debt
securities during an extension period until the end thereof.

If the property trustee is the sole holder of the subordinated trust debt
securities, we will give the administrative trustees and the property trustee
notice of our selection of such extension period for such series of subordinated
trust debt securities one business day prior to the earlier of (1) the next
succeeding date on which distributions on the related trust preferred securities
are payable or (2) the date a trust is required to give notice to the New York
Stock Exchange or other applicable self-regulatory organization or to holders of
such trust preferred securities on the record date or the date such distribution
is payable, but in any event not less than one business day prior to such record
date. The administrative trustees shall give notice of our selection of such
extension period to the holders of such trust preferred securities. If the
property trustee is not the sole holder of a series of subordinated trust debt
securities, we will give the holders of such subordinated trust debt securities
notice of our selection of such extension period ten business days prior to the
earlier of (1) the interest payment date or (2) the date we are required to give
notice to the New York Stock Exchange or other applicable self-regulatory
organization or to holders of such subordinated trust debt securities, but in
any event at least two business days before such record date.

We have no present intention to defer interest payments.

ADDITIONAL INTEREST

If a trust is required to pay any taxes, duties, assessments or other
governmental charges, other than withholding taxes, imposed by the United
States, or any other taxing authority, we will pay as additional interest such
additional amounts as shall be required so that the net amounts received and
retained by a trust after paying any such charges will be equal to the amount
such trust would have received had no such charge been imposed.

EVENTS OF DEFAULT UNDER APPLICABLE INDENTURE

We will define an event of default with respect to any series of
subordinated trust debt securities in the indenture or applicable supplemental
indenture. An event of default may include:

o our default in payment of the principal of or premium, if any, on any
of the subordinated trust debt securities of such series;

o default for 30 days in payment of any installment of interest,
including additional interest, on any subordinated trust debt security
of such series beyond a valid extension;

o default by us for 60 days after notice in the observance or
performance of any other covenants in the indenture or applicable
supplemental indenture relating to such series; and

o voluntary or involuntary dissolution, winding up, termination,
bankruptcy, insolvency or reorganization of a trust, except in
connection with:

o the distribution of subordinated trust debt securities to holders
of trust securities in liquidation of a trust,

o the redemption of all outstanding trust securities of such trust,
or

o mergers or consolidations permitted by the trust agreement.

The holders of not less than a majority in aggregate principal amount of
subordinated trust debt securities may waive any past default, except (1) a
default in payment of principal, premium, interest or additional interest,
unless such default has been cured and a sum sufficient to pay all installments
due otherwise than by acceleration has been deposited with the subordinated debt
security trustee, or (2) a default in a covenant or provision which under the
applicable indenture may not be modified or amended without the consent of each
holder of a subordinated trust debt security. The holders of trust preferred
securities in certain circumstances have the right to direct the property
trustee to exercise its rights as holder of subordinated debt securities.

PAYMENT AND PAYING AGENTS

Payment of principal and premium, if any, on subordinated trust debt
securities will be made only if the holder of subordinated trust debt securities
surrenders them to the paying agent of the subordinated trust debt securities.

Principal of and any premium and interest, if any, on subordinated trust
debt securities will be payable, subject to any applicable laws and regulations,
at the office of such paying agent or paying agents as we may designate from
time to time pursuant to the subordinated trust debt security indenture. Payment
of interest on the subordinated trust debt securities on any interest payment
date will be made to the person in whose name the subordinated trust debt
security is registered at the close of business on the regular record date for
such interest payment.

The indenture trustee will act as paying agent with respect to the
subordinated trust debt securities. We may at any time designate additional
paying agents or rescind the designation of any paying agent or approve a change
in the office through which any paying agent acts, except that we will be
required to maintain a paying agent at the place of payment.

CONSOLIDATION, MERGER AND SALE

The applicable indenture will provide that we will be permitted to
consolidate with, or sell, lease or convey all or substantially all of our
assets to, or merge with or into, any other entity provided that:

o either we shall be the continuing entity, or the successor entity
formed by or resulting from any such consolidation or merger or which
shall have received the transfer of such assets shall expressly assume
our obligations under the trust guarantee and the payment of the
principal of, and premium, if any, and interest on all of the
subordinated trust debt securities and the due and punctual
performance and observance of all of the covenants and conditions
contained in the applicable indenture;

o immediately after giving effect to such transaction and treating any
indebtedness that becomes an obligation of ours or any subsidiary as a
result thereof as having been incurred by us or such subsidiary at the
time of such transaction, no event of default under the applicable
indenture or the trust guarantee, and no event which, after notice or
the lapse of time, or both, would become such an event of default,
shall have occurred and be continuing; and

o an officer's certificate and legal opinion covering such conditions
shall be delivered to the indenture trustee.

The indenture will not otherwise contain any covenant which restricts our
ability to merge or consolidate with or into any other person, sell or convey
all or substantially all of our assets to any person or otherwise engage in
restructuring transactions.

INFORMATION CONCERNING INDENTURE TRUSTEE FOR THE SUBORDINATED TRUST DEBT
SECURITIES

The indenture trustee for the subordinated debt securities, prior to
default and after the curing of all defaults, if any, will undertake to perform
only such duties as will be specifically set forth in the applicable indenture
and, after a default that has not been cured or waived, will exercise the same
degree of care as a prudent individual would exercise in the conduct of his or
her own affairs. Subject to such provision, the indenture trustee will be under
no obligation to exercise any of the powers vested in it by the indenture at the
request of any holder of subordinated trust debt securities, unless offered
reasonable indemnity by such holder against the costs, expenses and liabilities
which might be incurred thereby. However, the foregoing will not relieve the
indenture trustee, upon the occurrence of an indenture event of default, from
exercising the rights and powers vested in it by the indenture. The indenture
trustee will not be required to expend or risk its own funds or otherwise incur
personal financial liability in the performance of its duties if the indenture
trustee reasonably believes that repayment or adequate indemnity is not
reasonably assured to it.

MISCELLANEOUS

We will have the right at all times to assign any of our rights or
obligations under the indenture to a direct or indirect wholly-owned subsidiary
of ours. However, in the event of any such assignment, we will remain liable for
all of such obligations under the indenture. Subject to the foregoing, the
indenture will be binding upon and inure to the benefit of the parties thereto
and their respective successors and assigns. The indenture will provide that it
may not otherwise be assigned by the parties thereto.

EFFECT OF OBLIGATIONS UNDER SUBORDINATED TRUST DEBT SECURITIES AND TRUST
PREFERRED SECURITIES GUARANTEE

As long as payments are made when due on subordinated trust debt
securities, the trust will have sufficient funds to be able to make all
appropriate payments on trust securities. This is primarily because:

o the aggregate principal amount of the subordinated debt securities
will be equal to the sum of the aggregate stated liquidation amount of
such trust securities;

o the interest rate and interest and other payment dates on the
subordinated trust debt securities will match the distribution rate
and distribution and other payment dates for the trust securities;

o we will pay for all costs and expenses of each trust; and

o the trust agreement will provide that the trustees may not cause or
permit the trust to, among other things, engage in any activity that
is not consistent with the purposes of the trust.

We will guarantee payments of distributions and other payments due on the
trust preferred securities, to the extent funds are available therefor and to
the extent set forth under "Description of the Trust Guarantees." If we do not
make interest payments on subordinated trust debt securities, it is expected
that the trust will not have sufficient funds to pay distributions on its trust
preferred securities. The trust guarantee is a full and unconditional guarantee,
but does not apply to any payment unless the trust has sufficient funds for such
payment.

If we fail to make payments on subordinated trust debt securities when
due, taking into account any extension period, the trust agreement will provide
a mechanism whereby holders of trust preferred securities may direct the
property trustee to enforce its rights, including proceeding directly against
us. If the property trustee fails to enforce its rights, a holder of trust
preferred securities may sue us directly to enforce those rights, without first
instituting legal proceedings against the trust, the property trustee or any
other person or entity.

If we fail to make payments under the trust guarantee, the trust guarantee
provides a mechanism whereby the holders of trust preferred securities may
direct the trust guarantee trustee to enforce its rights. If the trust guarantee
trustee fails to enforce its rights, any holder of trust preferred securities
may institute a legal proceeding against us directly to enforce those rights
without first instituting legal proceedings against the trust, the trust
guarantee trustee or any other person or entity.

Pursuant to an agreement as to expenses and liabilities to be entered into
by us under the trust agreement, we will irrevocably and unconditionally
guarantee to each person or entity to whom the trust becomes indebted or liable
the full payment of any indebtedness, expenses or liabilities of the trust other
than obligations of the trust to pay to the holders of the related trust
securities or other similar interests in the trust the amounts due such holders
pursuant to the terms of such trust securities or such other similar interests,
as the case may be.

The above mechanisms and obligations, taken together, are equivalent to a
full and unconditional guarantee by us of payments due on trust preferred
securities to the extent of funds available to the trust.

PLAN OF DISTRIBUTION

Any of the securities being offered by this prospectus may be sold:

o through agents,

o to or through underwriters,

o through dealers,

o directly by us to purchasers, through a specific bidding, auction
or other process; or

o through a combination of any such methods of sale.

The distribution of securities may be effected from time to time in one or
more transactions at a fixed price, or prices which may be changed, or at market
prices prevailing at the time of sale, at prices related to such prevailing
market prices or at negotiated prices.

Agents designated by us from time to time may solicit offers to purchase
the securities. We will name any such agent involved in the offer or sale of the
securities and set forth any commissions payable by us to such agent in the
prospectus supplement. Unless otherwise indicated in the prospectus supplement,
any such agent will be acting on a best efforts basis for the period of its
appointment. Any such agent may be deemed to be an underwriter, as that term is
defined in the Securities Act, of the securities.

If an underwriter or underwriters are utilized in the sale of securities,
we will execute an underwriting agreement with such underwriter or underwriters
at the time an agreement for such sale is reached. We will set forth in the
prospectus supplement the names of the specific managing underwriter or
underwriters, as well as any other underwriters, and the terms of the
transactions, including compensation of the underwriters and dealers. Such
compensation may be in the form of discounts, concessions or commissions.
Underwriters and others participating in any offering of securities may engage
in transactions that stabilize, maintain or otherwise affect the price of such
securities. We will describe any such activities in the prospectus supplement.

If a dealer is utilized in the sale of the securities, we or an
underwriter will sell such securities to the dealer, as principal. The dealer
may then resell such securities to the public at varying prices to be determined
by such dealer at the time of resale. The prospectus supplement will set forth
the name of the dealer and the terms of the transactions.

We may directly solicit offers to purchase the securities, and we may sell
directly to institutional investors or others. These persons may be deemed to be
underwriters within the meaning of the Securities Act with respect to any resale
of the securities. The prospectus supplement will describe the terms of any such
sales, including the terms of any bidding or auction process, if utilized.

Agents, underwriters and dealers may be entitled under agreements which may
be entered into with us to indemnification by us against specified liabilities,
including liabilities under the Securities Act, or to contribution by us to
payments they may be required to make in respect of such liabilities. The
prospectus supplement will describe the terms and conditions of such
indemnification or contribution. Some of the agents, underwriters or dealers, or
their affiliates may be customers of ours, or engage in transactions with or
perform services for us and our subsidiaries in the ordinary course of business.

LEGAL MATTERS

Gibson, Dunn & Crutcher LLP, Dallas, Texas, has rendered an opinion with
respect to the validity of the securities being offered by this prospectus,
other than with respect to trust preferred securities. We filed the opinion as
an exhibit to the registration statement of which this prospectus is a part.
Morris, Nichols, Arsht & Tunnell, Wilmington, Delaware, has rendered an opinion
with respect to the validity of the trust preferred securities being offered by
this prospectus. We filed the opinion as an exhibit to the registration
statement of which this prospectus is a part. If counsel for any underwriters
passes on legal matters in connection with an offering made by this prospectus,
we will name that counsel in the prospectus supplement relating to that
offering.

EXPERTS

The consolidated financial statements of D.R. Horton, Inc. appearing in
D.R. Horton, Inc.'s Annual Report on Form 10-K for the year ended September 30,
2001, and the balance sheet of Schuler Homes, Inc., the consolidated financial
statements of Schuler Residential, Inc. and the combined financial statements of
Western Pacific Housing appearing in Schuler Homes, Inc.'s Annual Report on Form
10-K for the year ended March 31, 2001, have been audited by Ernst & Young LLP,
independent auditors, as set forth in their reports thereon, included therein
and incorporated herein by reference. Such financial statements are incorporated
herein by reference in reliance upon such reports given on the authority of such
firm as experts in accounting and auditing.

With respect to the unaudited condensed consolidated interim financial
information of Schuler Homes, Inc. for the three and nine-month periods ended
December 31, 2001 and 2000, incorporated herein by reference, Ernst & Young LLP
have reported that they have applied limited procedures in accordance with
professional standards for a review of such information. However, their separate
report, included in Schuler Homes, Inc.'s Quarterly Report on Form 10-Q for the
quarter ended December 31, 2001, and incorporated herein by reference, states
that they did not audit and they do not express an opinion on that interim
financial information. Accordingly, the degree of reliance on their report on
such information should be restricted considering the limited nature of the
review procedures applied. The independent auditors are not subject to the
liability provisions of Section 11 of the Securities Act of 1933 for their
report on the unaudited interim financial information because that report is not
a "report" or a "part" of the Registration Statement prepared or certified by
the auditors within the meaning of Sections 7 and 11 of the Securities Act of
1933.

WHERE YOU CAN FIND MORE INFORMATION

D.R. Horton, Inc. files annual, quarterly and special reports, proxy
statements and other information with the Securities and Exchange Commission
under the Securities Exchange Act of 1934. You may read and copy this
information at the Public Reference Room of the Commission, 450 Fifth Street,
N.W., Room 10024, Washington, D.C. 20549, at prescribed rates. You may obtain
information on the operation of the Public Reference Room by calling the
Commission at (800) SEC- 0330.

The Commission also maintains an internet world wide web site that
contains reports, proxy statements and other information about issuers, like us,
who file electronically with the Commission. The address of that site is
www.sec.gov.

You can also inspect reports, proxy statements and other information about
us at the offices of the New York Stock Exchange, Inc., 20 Broad Street, New
York, New York 10005.

We, the trusts, and our guarantor subsidiaries have filed jointly with the
Commission a registration statement on Form S-3 that registers the securities we
are offering. The registration statement, including the attached exhibits and
schedules, contains additional relevant information about us, the trusts, our
guarantor subsidiaries and the securities offered. The rules and regulations of
the Commission allow us to omit certain information included in the registration
statement from this prospectus.

INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE

The Commission allows us to "incorporate by reference" information into
this prospectus. This means that we can disclose important information to you by
referring you to another document filed separately with the Commission. The
information incorporated by reference is considered to be part of this
prospectus, except for any information that is superseded by information that is
included directly in this or another document.

This prospectus includes by reference the documents listed below that we
have previously filed with the Commission and that are not included in or
delivered with this document. They contain important information about our
company and its financial condition.

<Table>
<Caption>
FILING PERIOD OR DATE
------ --------------

Annual Report on Form 10-K Year ended September 30, 2001
Quarterly Report on Form 10-Q Quarter ended December 31, 2001
Current Reports on Form 8-K October 22, 2001
November 8, 2001
January 22, 2002
January 24, 2002
January 31, 2002
February 15, 2002
February 21, 2002
</Table>

Pages 101 through 109 under the captions "Directors and Executive
Officers" through "Compensation Committee Interlocks and Insider
Participation," and page 115 under the caption "Section 16(a)
Beneficial Ownership Reporting Compliance," contained in our Proxy
Statement/Prospectus, relating to our 2002 annual meeting of
stockholders and incorporated into our Annual Report on Form 10-K.

This prospectus also includes by reference financial statements and pro
forma financial information relating to Schuler included in the documents listed
below that we or Schuler previously filed with the Commission and that are not
included in or delivered with this document. Such financial statements and pro
forma financial information contained important information about Schuler, its
financial condition and our acquisition of Schuler.

The unaudited financial statements of Western Pacific Housing for the nine
months ended December 31, 2000 contained in pages F-3 through F-15 of Amendment
No. 1 to Registration Statement on Form S-3 of Schuler Holdings, Inc., as filed
with the Commission on March 30, 2001 (File No. 333-56354).

The financial statements of Schuler Homes, Inc., Schuler Residential, Inc.
and Western Pacific Housing contained in pages F-1 through F-37 of the Annual
Report on Form 10-K of Schuler Homes, Inc. for the year ended March 31, 2001
(File No. 0-32461).

The unaudited pro forma combined condensed financial statements contained
in pages 80 through 88 of the Joint Proxy Statement/Prospectus, dated January
17, 2002, included in Amendment No. 3 to Registration Statement on Form S-4 of
D.R. Horton, Inc. (File No. 333-73888).

The financial statements of Schuler Homes, Inc. contained in pages 5
through 16 of the Quarterly Report on Form 10-Q of Schuler Homes, Inc. for the
quarter ended December 31, 2001 (File No. 0-32461).

We incorporate by reference additional documents that we may file with the
Commission between the date of this prospectus and the date of the closing of
each offering. These documents include periodic reports, such as Annual Reports
on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K
(other than filings under Item 9), as well as proxy statements.

You can obtain any of the documents incorporated by reference in this
document from us without charge, excluding any exhibits to those documents
unless the exhibit is specifically incorporated by reference in this prospectus.
You can obtain documents incorporated by reference in this prospectus by
requesting them in writing or by telephone from us at the following address:

Assistant to Corporate Counsel
D.R. Horton, Inc.
1901 Ascension Boulevard
Suite 100
Arlington, Texas 76006
(817) 856-8200, ext. 1046

We have not authorized anyone to give any information or make any
representation about us that is different from, or in addition to, that
contained in this prospectus or in any of the materials that we have
incorporated by reference into this document. Therefore, if anyone does give you
information of this sort, you should not rely on it. If you are in a
jurisdiction where offers to sell, or solicitations of offers to purchase, the
securities offered by this document are unlawful, or if you are a person to whom
it is unlawful to direct these types of activities, then the offer presented in
this document does not extend to you. The information contained in this document
speaks only as of the date of this document, unless the information specifically
indicates that another date applies.

- --------------------------------------------------------------------------------

----------

D.R. HORTON, INC.

Debt Securities,
Preferred Stock, Depositary Shares,
Common Stock, Warrants,
Stock Purchase Contracts and Stock Purchase Units

Trust Preferred Securities of
DRH Capital Trust I,
DRH Capital Trust II and
DRH Capital Trust III and
Related Subordinated Trust Debt Securities and
Guarantees of D.R. Horton, Inc.

UNITS OF THESE SECURITIES

$1,000,000,000

PROSPECTUS

, 2002

----------

- --------------------------------------------------------------------------------

PART II

INFORMATION NOT REQUIRED IN PROSPECTUS

<Table>

Securities and Exchange Commission registration fee.............. $ 92,000
Blue Sky fees and expenses....................................... 1,500
Printing and engraving fees and expenses......................... 320,000
Trustees' fees and expenses...................................... 1,500
Rating agency fees............................................... 950,000
Accountants' fees and expenses................................... 265,000
Legal fees and expenses.......................................... 240,000
Miscellaneous.................................................... 300,000
------------
Total...................................................... $ 2,170,000*
</Table>

* All fees and expenses will be paid by the Company. All fees and expenses
other than the Securities and Exchange Commission filing fees are
estimated.

ITEM 15. INDEMNIFICATION OF DIRECTORS AND OFFICERS.

The registrant's certificate of incorporation provides that the registrant
shall, to the full extent permitted by the Delaware General Corporation Law or
other applicable laws presently or hereafter in effect, indemnify each person
who is or was or had agreed to become a director or officer of the registrant,
or each such person who is or was serving or who had agreed to serve at the
written request of the board of directors or an officer of the registrant as an
employee or agent of the registrant or as a director, officer, employee or agent
of another corporation, partnership, joint venture, trust or other enterprise,
in any such case owned or controlled by the registrant, including the heirs,
executors, administrators or estate of such person, and eliminates the personal
liability of its directors to the full extent permitted by the Delaware General
Corporation Law or other applicable laws presently or hereafter in effect. The
registrant has entered into an indemnification agreement with each of its
directors and executive officers.

Section 145 of the Delaware General Corporation Law permits a corporation
to indemnify its directors and officers against expenses (including attorney's
fees), judgments, fines and amounts paid in settlement actually and reasonably
incurred by them in connection with any action, suit or proceeding brought by
third parties, if such directors or officers acted in good faith and in a manner
they reasonably believed to be in or not opposed to the best interests of the
corporation and, with respect to any criminal action or proceeding, had no
reasonable cause to believe their conduct was unlawful. In a derivative action,
i.e., one by or in the right of the corporation, indemnification may be made
only for expenses actually and reasonably incurred by directors and officers in
connection with the defense or settlement of an action or suit, and only with
respect to a matter as to which they shall have acted in good faith and in a
manner they reasonably believed to be in or not opposed to the best interests of
the corporation, except that no indemnification shall be made if such person
shall have been adjudged liable for negligence or misconduct in the performance
of his respective duties to the corporation, although the court in which the
action or suit was brought may determine upon application that the defendant
officers or directors are fairly and reasonably entitled to indemnity for such
expenses despite such adjudication of liability.

Section 102(b)(7) of the Delaware General Corporation Law provides that a
corporation may eliminate or limit the personal liability of a director to the
corporation or its stockholders for monetary damages for breach of fiduciary
duty as a director, provided that such provisions shall not eliminate or limit
the liability of a director (1) for any breach of the director's duty of loyalty
to the corporation or its stockholders, (2) for acts or omissions not in good
faith or which involve intentional misconduct or a knowing violation of law, (3)
under section 174 of the Delaware General Corporation Law, or (4) for any
transaction from which the director derived an improper personal benefit. No
such provision shall eliminate or limit the liability of a director for any act
or omission occurring before the date when such provision becomes effective.

Any underwriting agreement, which will be filed as Exhibit 1.1 hereto,
will provide that the underwriters named therein will indemnify and hold
harmless the registrant and each director, officer or controlling person of the
registrant from and against specific liabilities, including liabilities under
the Securities Act.

The registrant also has obtained directors and officers liability
insurance that provides insurance coverage for certain liabilities which may be
incurred by the registrant's directors and officers in their capacity as such.

II-1

ITEM 16. EXHIBITS AND FINANCIAL SCHEDULES. (a) EXHIBITS:

<Table>
<Caption>
EXHIBIT
NUMBER EXHIBITS
- ------- --------

1.1* -- Form of Underwriting Agreement

4.1(a) -- Senior Debt Securities Indenture (including form of notes) (incorporated by reference from Exhibit 4.1(a) to
the registrant's registration statement (No. 333-27521) on Form S-3, filed May 21, 1997)

4.1(b) -- Senior Subordinated Debt Securities Indenture (including form of notes) (incorporated by reference from
Exhibit 4.1(b) to Amendment No. 1 to the registrant's registration statement (No. 333-27521) on Form S-3,
filed June 2, 1997)

4.1(c) -- Form of Subordinated Debt Securities Indenture (including form of notes) (incorporated by reference from
Exhibit 4.1(c) to Amendment No. 1 to the registrant's registration statement (No. 333-27521) on Form S-3,
filed June 2, 1997)

4.1(d)* -- Form of Subordinated Trust Debt Securities Indenture (including form of notes)

4.2 -- Amended and Restated Certificate of Incorporation, as amended, of the registrant (incorporated by reference
from Exhibit 4.2 to the registrant's registration statement (No. 333-76175) on Form S-3, filed April 13,
1999)

4.3 -- Amended and Restated Bylaws of the registrant (incorporated by reference from Exhibit 3.1 to the
registrant's Quarterly Report on Form 10-Q for the quarter ended December 31, 1998)

4.4* -- Form of Warrant Agreement (including form of warrant)

4.5 -- Certificate of Trust for DRH Capital Trust I (incorporated by reference from Exhibit 4.5 to the registrant's
registration statement (No. 333-57388) on Form S-3, filed March 22, 2001)

4.6 -- Certificate of Trust for DRH Capital Trust II (incorporated by reference from Exhibit 4.6 to the
registrant's registration statement (No. 333-57388) on Form S-3, filed March 22, 2001)

4.7 -- Certificate of Trust for DRH Capital Trust III (incorporated by reference from Exhibit 4.7 to the
registrant's registration statement (No. 333-57388) on Form S-3, filed March 22, 2001)

4.8 -- Trust Agreement for DRH Capital Trust I (incorporated by reference from Exhibit 4.8 to the registrant's
registration statement (No. 333-57388) on Form S-3, filed March 22, 2001)

4.9 -- Trust Agreement for DRH Capital Trust II (incorporated by reference from Exhibit 4.9 to the registrant's
registration statement (No. 333-57388) on Form S-3, filed March 22, 2001)

4.10 -- Trust Agreement for DRH Capital Trust III (incorporated by reference from Exhibit 4.10 to the registrant's
registration statement (No. 333-57388) on Form S-3, filed March 22, 2001)

4.11* -- Form of Amended & Restated Trust Agreement for DRH Capital Trust I

4.12* -- Form of Amended & Restated Trust Agreement for DRH Capital Trust II

4.13* -- Form of Amended & Restated Trust Agreement for DRH Capital Trust III

4.14* -- Form of Trust Preferred Security

4.15* -- Form of Trust Guarantee Agreement

4.16* -- Form of Stock Purchase Contract

4.17* -- Form of Stock Purchase Unit Agreement

4.18* -- Form of Unit Agreement

4.19 -- Specimen of Common Stock Certificate (incorporated by reference from Exhibit 4.1 to the registrant's
registration statement (No. 33-46554) on Form S-1, filed March 20, 1992(P))

5.1 -- Opinion of Gibson, Dunn & Crutcher LLP, Dallas, Texas, as to the validity of the securities being registered

5.2 -- Opinion of Morris, Nichols, Arsht & Tunnell, Wilmington, Delaware, as to the validity of the trust preferred
securities being registered

12.1 -- Statement of computation of ratio of earnings to fixed charges

15.1 -- Letter re: Unaudited Interim Financial Information

23.1 -- Consent of Gibson, Dunn & Crutcher LLP, Dallas, Texas (See Exhibit 5.1)

23.2 -- Consent of Ernst & Young LLP, Fort Worth, Texas

23.3 -- Consent of Ernst & Young LLP, Los Angeles, California

23.4 -- Consent of Morris, Nichols, Arsht & Tunnell, Wilmington, Delaware (see Exhibit 5.2)

24.1 -- Powers of Attorney (See signature page of this registration statement, as filed on March __, 2002)

25.1(a) -- Statement of eligibility of trustee on Form T-1 for Senior Debt Securities (incorporated by reference from
Exhibit 25.1 to Amendment No. 1 to the registrant's registration statement (No. 333-27521) on Form S-3,
filed June 2, 1997)

25.1(b) -- Statement of eligibility of trustee on Form T-1 for Senior Subordinated Debt Securities (incorporated by
reference from Exhibit 25.1 to the registrant's Current Report on Form 8-K, filed September 11, 2000)

25.1(c)* -- Statement of eligibility of trustee on Form T-1 for Subordinated Debt Securities
</Table>

II-2

<Table>
<Caption>
EXHIBIT
NUMBER EXHIBITS
- ------- --------

25.1(d)* -- Statement of eligibility of trustee on Form T-1 for Subordinated Trust Debt Securities

25.1(e)* -- Statement of eligibility of trustee on Form T-1 for Trust Agreements
</Table>

* To be filed by amendment hereto or pursuant to a Current Report on Form 8-K
to be incorporated herein by reference.

II-3

ITEM 17. UNDERTAKINGS.

(a) The undersigned registrant hereby undertakes that, for purposes of
determining any liability under the Securities Act of 1933, each filing of the
registrant's annual report pursuant to section 13(a) or section 15(d) of the
Securities Exchange Act of 1934 (and, where applicable, each filing of an
employee benefit plan's annual report pursuant to section 15(d) of the
Securities Act of 1934) that is incorporated by reference in the registration
statement shall be deemed to be a new registration statement relating to the
securities offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.

(b) Insofar as indemnification for liabilities arising under the
Securities Act of 1933 may be permitted to directors, officers and controlling
persons of the registrant pursuant to the foregoing provisions described in Item
15, or otherwise, the registrant has been advised that in the opinion of the
Securities and Exchange Commission such indemnification is against public policy
as expressed in the Act and is, therefore, unenforceable. If a claim for
indemnification against such liabilities (other than the payment by the
registrant of expenses incurred or paid by a director, officer or controlling
person of the registrant in the successful defense of any action, suit or
proceeding) is asserted by such director, officer or controlling person in
connection with the securities being registered, the registrant will, unless in
the opinion of its counsel the matter has been settled by controlling precedent,
submit to a court of appropriate jurisdiction the question whether such
indemnification by it is against public policy as expressed in the Act and will
be governed by the final adjudication of such issue.

(1) To file, during any period in which offers or sales are being made,
a post-effective amendment to this registration statement:

(i) To include any prospectus required by section 10(a)(3) of the
Securities Act of 1933;

(ii) To reflect in the prospectus any facts or events arising after
the effective date of the registration statement (or the most
recent post-effective amendment thereof) which, individually or
in the aggregate, represent a fundamental change in the
information set forth in the registration statement; and

(iii) To include any material information with respect to the plan of
distribution not previously disclosed in the registration
statement or any material change to such information in the
registration statement;

Provided, however, that paragraphs (c)(1)(i) and (c)(1)(ii) do not apply if the
information required to be included in a post-effective amendment by those
paragraphs is contained in periodic reports filed with or furnished to the
Commission by the registrant pursuant to section 13 or section 15(d) of the
Securities Exchange Act of 1934 that are incorporated by reference in the
registration statement.

(2) That, for the purposes of determining any liability under the
Securities Act of 1933, each such post-effective amendment shall be
deemed to be a new registration statement relating to the securities
offered therein, and the offering of such securities at that time
shall be deemed to be the initial bona fide offering thereof.

(3) To remove from registration by means of a post-effective amendment
any of the securities being registered which remain unsold at the
termination of the offering.

(d) The undersigned registrant hereby undertakes to file an application for the
purpose of determining the eligibility of the trustee to act under subsection
(a) of section 310 of the Trust Indenture Act in accordance with the rules and
regulations prescribed by the Commission under section 305(b)(2) of the Trust
Indenture Act.

II-4

SIGNATURES

Pursuant to the requirements of the Securities Act of 1933, the registrant,
D.R. Horton, Inc., and the co-registrants named below, certify that they have
reasonable grounds to believe that they meet all the requirements for filing on
Form S-3 and have duly caused this registration statement to be signed on their
behalf by the undersigned, thereunto duly authorized, in the City of Arlington,
State of Texas, on March 8, 2002.

D.R. HORTON, INC.

By: /s/ DONALD R. HORTON
---------------------------
Donald R. Horton
Chairman of the Board

CO-REGISTRANTS:

C. RICHARD DOBSON BUILDERS, INC.
CHI CONSTRUCTION COMPANY
CHTEX OF TEXAS, INC.
CONTINENTAL HOMES, INC.
CONTINENTAL HOMES OF FLORIDA, INC.
CONTINENTAL RESIDENTIAL, INC.
D.R. HORTON, INC. - BIRMINGHAM
D.R. HORTON, INC. - CHICAGO
D.R. HORTON, INC. - DENVER
D.R. HORTON, INC. - DIETZ-CRANE
D.R. HORTON, INC. - GREENSBORO
D.R. HORTON, INC. - JACKSONVILLE
D.R. HORTON, INC. - LOUISVILLE
D.R. HORTON, INC. - MINNESOTA
D.R. HORTON, INC. - NEW JERSEY
D.R. HORTON, INC. - PORTLAND
D.R. HORTON, INC. - SACRAMENTO
D.R. HORTON, INC. - TORREY
D.R. HORTON LOS ANGELES HOLDING COMPANY, INC.
D.R. HORTON SAN DIEGO HOLDING COMPANY, INC.
DRH CAMBRIDGE HOMES, INC.
DRH CONSTRUCTION, INC.
DRH REGREM II, INC.
DRH REGREM III, INC.
DRH REGREM IV, INC.
DRH REGREM V, INC.
DRH SOUTHWEST CONSTRUCTION, INC.
DRH TITLE COMPANY OF COLORADO, INC.
DRH TUCSON CONSTRUCTION, INC.
DRHI, INC.
KDB HOMES, INC.
MEADOWS I, LTD.
MEADOWS VIII, LTD.
MEADOWS IX, INC.
MEADOWS X, INC.

By: /s/ SAMUEL R. FULLER
-------------------------------------------------
Samuel R. Fuller
Treasurer

II-5

CH INVESTMENTS OF TEXAS, INC.
MEADOWS II, LTD.

By: /s/ WILLIAM PECK
------------------------------------------------
William Peck
President

CONTINENTAL HOMES OF TEXAS, L.P.

By: CHTEX of Texas, Inc., its general partner

By: /s/ SAMUEL R. FULLER
--------------------------------------------
Samuel R. Fuller, Treasurer

D.R. HORTON MANAGEMENT COMPANY, LTD.
D.R. HORTON - EMERALD, LTD.
D.R. HORTON - TEXAS, LTD.
DRH REGREM VII, LP

By: Meadows I, Ltd., its general partner

By: /s/ DONALD R. HORTON
--------------------------------------------
Donald R. Horton
Chairman of the Board

SGS COMMUNITIES AT GRANDE QUAY, LLC

By: Meadows IX, Inc., a member

By: /s/ DONALD R. HORTON
--------------------------------------------
Donald R. Horton
Chairman of the Board

and

By: Meadows X, Inc., a member

By: /s/ DONALD R. HORTON
--------------------------------------------
Donald R. Horton
Chairman of the Board

DRH CAMBRIDGE HOMES, LLC
DRH REGREM VIII, LLC

By: D.R. Horton, Inc. - Chicago, a member

By: /s/ SAMUEL R. FULLER
--------------------------------------------
Samuel R. Fuller
Treasurer

II-6

DRH CAPITAL TRUST I
DRH CAPITAL TRUST II
DRH CAPITAL TRUST III

By: D.R. Horton, Inc., as Depositor

By: /s/ DONALD R. HORTON
--------------------------------------------
Donald R. Horton
Chairman of the Board

II-7

ALLEGRA, LLC
APLAM, LLC
WESTERN PACIFIC HOUSING CO.
WESTERN PACIFIC HOUSING-ANTIGUA, LLC
WESTERN PACIFIC HOUSING-AVIARA, L.P.
WESTERN PACIFIC HOUSING-BOARDWALK, LLC
WESTERN PACIFIC HOUSING-BROADWAY, LLC
WESTERN PACIFIC HOUSING-CANYON PARK, LLC
WESTERN PACIFIC HOUSING-CARMEL, LLC
WESTERN PACIFIC HOUSING-CARRILLO, LLC
WESTERN PACIFIC HOUSING-COMMUNICATIONS HILL, LLC
WESTERN PACIFIC HOUSING-CREEKSIDE, LLC
WESTERN PACIFIC HOUSING-CULVER CITY, L.P.
WESTERN PACIFIC HOUSING-LOMAS VERDES, LLC
WESTERN PACIFIC HOUSING-LOST HILLS PARK, LLC
WESTERN PACIFIC HOUSING-MCGONIGLE CANYON, LLC
WESTERN PACIFIC HOUSING-MOUNTAINGATE, L.P.
WESTERN PACIFIC HOUSING-NORCO ESTATES, LLC
WESTERN PACIFIC HOUSING-OSO, L.P.
WESTERN PACIFIC HOUSING-PARK AVENUE EAST, LLC
WESTERN PACIFIC HOUSING-PARK AVENUE WEST, LLC
WESTERN PACIFIC HOUSING-PLAYA VISTA, LLC
WESTERN PACIFIC HOUSING-ROBINHOOD RIDGE, LLC
WESTERN PACIFIC HOUSING-SANTA FE, LLC
WESTERN PACIFIC HOUSING-SCRIPPS II, LLC
WESTERN PACIFIC HOUSING-SCRIPPS, L.P.
WESTERN PACIFIC HOUSING-SEACOVE, L.P.
WESTERN PACIFIC HOUSING-STUDIO 528, LLC
WESTERN PACIFIC HOUSING-TERRA BAY DUETS, LLC
WESTERN PACIFIC HOUSING-TORRANCE, LLC
WESTERN PACIFIC HOUSING-TORREY COMMERCIAL, LLC
WESTERN PACIFIC HOUSING-TORREY MEADOWS, LLC
WESTERN PACIFIC HOUSING-TORREY MULTI-FAMILY, LLC
WESTERN PACIFIC HOUSING-TORREY VILLAGE CENTER, LLC
WESTERN PACIFIC HOUSING-VINEYARD TERRACE, LLC
WESTERN PACIFIC HOUSING-WINDEMERE, LLC
WESTERN PACIFIC HOUSING-WINDFLOWER, L.P.
WPH-CAMINO RUIZ, LLC
WPH-HPH, LLC

By: LAMCO Housing, Inc.,
its Member or General Partner

By: /s/ SAMUEL R. FULLER
---------------------------------------------
Samuel R. Fuller
Vice President

II-8

SCHULER HOMES OF ARIZONA LLC
SHA CONSTRUCTION LLC

By: SRHI LLC,
its Member

By: SLHR of Nevada, Inc.,
its Member

By: /s/ SAMUEL R. FULLER
-----------------------------------------
Samuel R. Fuller
Vice President

HPH HOMEBUILDERS 2000 L.P.
PORTER GP LLC

By: WPH-HPH, LLC,
its General Partner or Member

By: LAMCO Housing, Inc.,
its Member

By: /s/ SAMUEL R. FULLER
-----------------------------------------
Samuel R. Fuller
Vice President

AP LHI, INC.
AP WESTERN GP CORPORATION
AP WP OPERATING CORPORATION
LAMCO HOUSING, INC.
MELODY HOMES, INC.
MELMORT CO.
SCHULER HOMES OF CALIFORNIA, INC.
SCHULER HOMES OF OREGON, INC.
SCHULER HOMES OF WASHINGTON, INC.
SCHULER MORTGAGE, INC.
SCHULER REALTY HAWAII, INC.
SCHULER REALTY/MAUI, INC.
SHLR OF CALIFORNIA, INC.
SHLR OF COLORADO, INC.
SHLR OF NEVADA, INC.
SHLR OF UTAH, INC.
SHLR OF WASHINGTON, INC.
VERTICAL CONSTRUCTION CORPORATION
WESTERN PACIFIC FUNDING, INC.
WESTERN PACIFIC HOUSING MANAGEMENT, INC.
WESTERN PACIFIC HOUSING, INC.

By: /s/ SAMUEL R. FULLER
-------------------------------------------------
Samuel R. Fuller
Vice President

II-9

D.R. HORTON-SCHULER HOMES, LLC

By: Vertical Construction Corporation,
its Manager

By: /s/ SAMUEL R. FULLER
---------------------------------------------
Samuel R. Fuller
Vice President

SRHI LLC

By: SHLR of Nevada, Inc.,
its Member

By: /s/ SAMUEL R. FULLER
---------------------------------------------
Samuel R. Fuller
Vice President

SSHI LLC

By: SHLR of Washington, Inc.,
its Member

By: /s/ SAMUEL R. FULLER
---------------------------------------------
Samuel R. Fuller
Vice President

WESTERN PACIFIC HOUSING-COPPER CANYON, LLC
WESTERN PACIFIC HOUSING-PACIFIC PARK II, LLC
WESTERN PACIFIC HOUSING-POINSETTIA, L.P.
WESTERN PACIFIC HOUSING-DEL VALLE, LLC
AP WP PARTNERS, L.P.

By: AP Western GP Corporation,
its Member or General Partner

By: /s/ SAMUEL R. FULLER
---------------------------------------------
Samuel R. Fuller
Vice President

WESTERN PACIFIC HOUSING-RIVER RIDGE, LLC

By: AP LHI, Inc.,
its Member

By: /s/ SAMUEL R. FULLER
---------------------------------------------
Samuel R. Fuller
Vice President

II-10

KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears
below hereby constitutes and appoints each of Donald R. Horton, individually,
and Donald J. Tomnitz and Samuel R. Fuller together as a group, as his or her
true and lawful attorney-in-fact and agent, for him or her and in his or her
name, place and stead, in any and all capacities, to sign any and all amendments
to this registration statement, including post-effective amendments and to file
the same, with all exhibits thereto, and other documents in connection
therewith, with the Securities and Exchange Commission, granting unto each such
attorney-in-fact and agent full power and authority to do so and perform each
and every act and thing requisite and necessary to be done in and about the
premises, as fully to all intents and purposes as he or she might or could do in
person, hereby ratifying and confirming all that each such attorney-in-fact and
agent, each acting alone, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Act of 1933, this
registration statement has been signed by the following persons in the
capacities and on the dates indicated.

REGISTRANT OFFICERS AND DIRECTORS

<Table>
<Caption>
SIGNATURE TITLE DATE
--------- ----- ----

/s/ DONALD R. HORTON Chairman of the Board March 8, 2002
- --------------------------------- (Principal Executive Officer)
Donald R. Horton

/s/ DONALD J. TOMNITZ Vice Chairman of the Board, President March 8, 2002
- --------------------------------- and Chief Executive Officer
Donald J. Tomnitz

/s/ SAMUEL R. FULLER Executive Vice President, Treasurer, March 8, 2002
- --------------------------------- Chief Financial Officer and Director
Samuel R. Fuller (Principal Accounting
and Financial Officer)

/s/ BRADLEY S. ANDERSON Director March 8, 2002
- ---------------------------------
Bradley S. Anderson

/s/ RICHARD BECKWITT Director March 8, 2002
- ---------------------------------
Richard Beckwitt

/s/ RICHARD I. GALLAND Director March 8, 2002
- ---------------------------------
Richard I. Galland

/s/ RICHARD L. HORTON Director March 8, 2002
- ---------------------------------
Richard L. Horton

/s/ TERRILL J. HORTON Director March 8, 2002
- ---------------------------------
Terrill J. Horton

/s/ FRANCINE I. NEFF Director March 8, 2002
- ---------------------------------
Francine I. Neff

/s/ JAMES K. SCHULER Director March 8, 2002
- ---------------------------------
James K. Schuler

/s/ SCOTT J. STONE Director March 8, 2002
- ---------------------------------
Scott J. Stone
</Table>

II-11

CO-REGISTRANT OFFICERS AND DIRECTORS:

<Table>
<Caption>
SIGNATURE TITLE DATE
--------- ----- ----

/s/ DONALD R. HORTON Chairman of the Board March 8, 2002
- ----------------------------------- (Principal Executive Officer)
Donald R. Horton

/s/ SAMUEL R. FULLER Treasurer (Principal March 8, 2002
- ----------------------------------- Accounting and Financial Officer)
Samuel R. Fuller
</Table>

II-12

CH INVESTMENTS OF TEXAS, INC.
MEADOWS II, LTD.

<Table>
<Caption>
SIGNATURE TITLE DATE
--------- ----- ----

/s/ WILLIAM PECK Director, President March 8, 2002
- ----------------------------------- (Principal Executive Officer)
William Peck

/s/ DON C. MERRELL Director March 8, 2002
- -----------------------------------
Don C. Merrell

/s/ MARK G. ALLEN Director March 8, 2002
- -----------------------------------
Mark G. Allen
</Table>

CHTEX OF TEXAS, INC., THE GENERAL PARTNER OF
CONTINENTAL HOMES OF TEXAS, L.P.

D.R. HORTON, INC. - CHICAGO, A MEMBER OF
DRH CAMBRIDGE HOMES, LLC
AND DRH REGREM VIII, LLC

MEADOWS I, LTD., THE GENERAL PARTNER OF
D.R. HORTON MANAGEMENT COMPANY, LTD.
D.R. HORTON - EMERALD, LTD.
D.R. HORTON - TEXAS, LTD.
DRH REGREM VII, LP

MEADOWS IX, INC.,
AND MEADOWS X, INC., MEMBERS OF
SGS COMMUNITIES AT GRANDE QUAY, LLC

<Table>
<Caption>
SIGNATURE TITLE DATE
--------- ----- ----

/s/ DONALD R. HORTON Chairman of the Board March 8, 2002
- ----------------------------------- (Principal Executive Officer)
Donald R. Horton

/s/ SAMUEL R. FULLER Treasurer March 8, 2002
- ----------------------------------- (Principal Accounting and Financial Officer)
Samuel R. Fuller
</Table>

D.R. HORTON, INC., AS DEPOSITOR OF
DRH CAPITAL TRUST I
DRH CAPITAL TRUST II
DRH CAPITAL TRUST III

<Table>
<Caption>
SIGNATURE TITLE DATE
--------- ----- ----

/s/ DONALD R. HORTON Chairman of the Board March 8, 2002
- ------------------------------------ (Principal Executive Officer)
Donald R. Horton

/s/ SAMUEL R. FULLER Treasurer March 8, 2002
- ------------------------------------ (Principal Accounting and Financial Officer)
Samuel R. Fuller
</Table>

II-13

<Table>
<Caption>
SIGNATURE TITLE DATE
--------- ----- ----

/s/ DONALD J. TOMNITZ Vice Chairman of the Board, President and March 8, 2002
- ----------------------------------- Chief Executive Officer
Donald J. Tomnitz

/s/ BRADLEY S. ANDERSON Director March 8, 2002
- -----------------------------------
Bradley S. Anderson

/s/ RICHARD BECKWITT Director March 8, 2002
- -----------------------------------
Richard Beckwitt

/s/ RICHARD I. GALLAND Director March 8, 2002
- -----------------------------------
Richard I. Galland

/s/ RICHARD L. HORTON Director March 8, 2002
- -----------------------------------
Richard L. Horton

/s/ TERRILL J. HORTON Director March 8, 2002
- -----------------------------------
Terrill J. Horton

/s/ FRANCINE I. NEFF Director March 8, 2002
- -----------------------------------
Francine I. Neff

/s/ JAMES K. SCHULER Director March 8, 2002
- -----------------------------------
James K. Schuler

/s/ SCOTT J. STONE Director March 8, 2002
- -----------------------------------
Scott J. Stone
</Table>

II-14

LAMCO HOUSING, INC., A MEMBER OR GENERAL PARTNER OF
ALLEGRA, LLC
APLAM, LLC
WESTERN PACIFIC HOUSING CO.
WESTERN PACIFIC HOUSING-ANTIGUA, LLC
WESTERN PACIFIC HOUSING-AVIARA, L.P.
WESTERN PACIFIC HOUSING-BOARDWALK, LLC
WESTERN PACIFIC HOUSING-BROADWAY, LLC
WESTERN PACIFIC HOUSING-CANYON PARK, LLC
WESTERN PACIFIC HOUSING-CARMEL, LLC
WESTERN PACIFIC HOUSING-CARRILLO, LLC
WESTERN PACIFIC HOUSING-COMMUNICATIONS HILL, LLC
WESTERN PACIFIC HOUSING-CREEKSIDE, LLC
WESTERN PACIFIC HOUSING-CULVER CITY, L.P.
WESTERN PACIFIC HOUSING-LOMAS VERDES, LLC
WESTERN PACIFIC HOUSING-LOST HILLS PARK, LLC
WESTERN PACIFIC HOUSING-MCGONIGLE CANYON, LLC
WESTERN PACIFIC HOUSING-MOUNTAINGATE, L.P.
WESTERN PACIFIC HOUSING-NORCO ESTATES, LLC
WESTERN PACIFIC HOUSING-OSO, L.P.
WESTERN PACIFIC HOUSING-PARK AVENUE EAST, LLC
WESTERN PACIFIC HOUSING-PARK AVENUE WEST, LLC
WESTERN PACIFIC HOUSING-PLAYA VISTA, LLC
WESTERN PACIFIC HOUSING-ROBINHOOD RIDGE, LLC
WESTERN PACIFIC HOUSING-SANTA FE, LLC
WESTERN PACIFIC HOUSING-SCRIPPS II, LLC
WESTERN PACIFIC HOUSING-SCRIPPS, L.P.
WESTERN PACIFIC HOUSING-SEACOVE, L.P.
WESTERN PACIFIC HOUSING-STUDIO 528, LLC
WESTERN PACIFIC HOUSING-TERRA BAY DUETS, LLC
WESTERN PACIFIC HOUSING-TORRANCE, LLC
WESTERN PACIFIC HOUSING-TORREY COMMERCIAL, LLC
WESTERN PACIFIC HOUSING-TORREY MEADOWS, LLC
WESTERN PACIFIC HOUSING-TORREY MULTI-FAMILY, LLC
WESTERN PACIFIC HOUSING-TORREY VILLAGE CENTER, LLC
WESTERN PACIFIC HOUSING-VINEYARD TERRACE, LLC
WESTERN PACIFIC HOUSING-WINDEMERE, LLC
WESTERN PACIFIC HOUSING-WINDFLOWER, L.P.
WPH-CAMINO RUIZ, LLC
WPH-HPH, LLC

<Table>
<Caption>
SIGNATURE TITLE DATE
--------- ----- ----

/s/ JAMES K. SCHULER President March 8, 2002
- ----------------------------------- (Principal Executive Officer)
James K. Schuler

/s/ THOMAS C. CONNELLY Senior Vice President, Chief Financial Officer March 8, 2002
- ----------------------------------- and Secretary
Thomas C. Connelly (Principal Accounting and Financial Officer)

/s/ DONALD R. HORTON Director March 8, 2002
- -----------------------------------
Donald R. Horton
</Table>

II-15

SRHI LLC, A MEMBER OF
SCHULER HOMES OF ARIZONA LLC
AND SHA CONSTRUCTION LLC

By: SLHR of Nevada, Inc.,
its Member

<Table>
<Caption>
SIGNATURE TITLE DATE
--------- ----- ----

/s/ JAMES K. SCHULER President March 8, 2002
- ----------------------------------- (Principal Executive Officer)
James K. Schuler

/s/ THOMAS C. CONNELLY Senior Vice President, Chief Financial Officer March 8, 2002
- ----------------------------------- and Secretary
Thomas C. Connelly (Principal Accounting and Financial Officer)

/s/ DONALD R. HORTON Director March 8, 2002
- -----------------------------------
Donald R. Horton
</Table>

WPH-HPH, LLC, A GENERAL PARTNER
OR MEMBER OF HPH HOMEBUILDERS 2000 L.P.
AND PORTER GP LLC

By: LAMCO Housing, Inc.,
its Member

<Table>
<Caption>
SIGNATURE TITLE DATE
--------- ----- ----

/s/ JAMES K. SCHULER President March 8, 2002
- ----------------------------------- (Principal Executive Officer)
James K. Schuler

/s/ THOMAS C. CONNELLY Senior Vice President, Chief Financial Officer March 8, 2002
- ----------------------------------- and Secretary
Thomas C. Connelly (Principal Accounting and Financial Officer)

/s/ DONALD R. HORTON Director March 8, 2002
- -----------------------------------
Donald R. Horton
</Table>

II-16

AP LHI, INC.
AP WESTERN GP CORPORATION
AP WP OPERATING CORPORATION
LAMCO HOUSING, INC.
MELODY HOMES, INC.
SCHULER HOMES OF CALIFORNIA, INC.
SCHULER HOMES OF OREGON, INC.
SCHULER HOMES OF WASHINGTON, INC.
SCHULER REALTY HAWAII, INC.
SCHULER REALTY/MAUI, INC.
SHLR OF CALIFORNIA, INC.
SHLR OF COLORADO, INC.
SHLR OF NEVADA, INC.
SHLR OF UTAH, INC.
SHLR OF WASHINGTON, INC.
VERTICAL CONSTRUCTION CORPORATION
WESTERN PACIFIC HOUSING MANAGEMENT, INC.
WESTERN PACIFIC HOUSING, INC.

<Table>
<Caption>
SIGNATURE TITLE DATE
--------- ----- ----

/s/ JAMES K. SCHULER President March 8, 2002
- ----------------------------------- (Principal Executive Officer)
James K. Schuler

/s/ THOMAS C. CONNELLY Senior Vice President, Chief Financial Officer March 8, 2002
- ----------------------------------- and Secretary
Thomas C. Connelly (Principal Accounting and Financial Officer)

/s/ DONALD R. HORTON Director March 8, 2002
- -----------------------------------
Donald R. Horton
</Table>

MELMORT CO.
SCHULER MORTGAGE, INC.
WESTERN PACIFIC FUNDING, INC.

<Table>
<Caption>
SIGNATURE TITLE DATE
--------- ----- ----

/s/ JAMES K. SCHULER Chairman of the Board, President March 8, 2002
- ----------------------------------- and Chief Executive Officer
James K. Schuler (Principal Executive Officer)

/s/ THOMAS C. CONNELLY Senior Vice President, Chief Financial Officer, March 8, 2002
- ----------------------------------- Secretary, Treasurer and Director
Thomas C. Connelly (Principal Accounting and Financial Officer)

/s/ PAMELA S. JONES Director March 8, 2002
- -----------------------------------
Pamela S. Jones
</Table>

II-17

VERTICAL CONSTRUCTION CORPORATION, MANAGER OF
D.R. HORTON-SCHULER HOMES, LLC

<Table>
<Caption>
SIGNATURE TITLE DATE
--------- ----- ----

/s/ JAMES K. SCHULER President March 8, 2002
- ----------------------------------- (Principal Executive Officer)
James K. Schuler

/s/ THOMAS C. CONNELLY Senior Vice President, Chief Financial Officer March 8, 2002
- ----------------------------------- and Secretary
Thomas C. Connelly (Principal Accounting and Financial Officer)

/s/ DONALD R. HORTON Director March 8, 2002
- -----------------------------------
Donald R. Horton
</Table>

SHLR OF NEVADA, INC., A MEMBER OF
SRHI LLC

<Table>
<Caption>
SIGNATURE TITLE DATE
--------- ----- ----

/s/ JAMES K. SCHULER President March 8, 2002
- ----------------------------------- (Principal Executive Officer)
James K. Schuler

/s/ THOMAS C. CONNELLY Senior Vice President, Chief Financial Officer March 8, 2002
- ----------------------------------- and Secretary
Thomas C. Connelly (Principal Accounting and Financial Officer)

/s/ DONALD R. HORTON Director March 8, 2002
- -----------------------------------
Donald R. Horton
</Table>

SHLR OF WASHINGTON, INC.,
A MEMBER OF SSHI LLC

<Table>
<Caption>
SIGNATURE TITLE DATE
--------- ----- ----

/s/ JAMES K. SCHULER President March 8, 2002
- ----------------------------------- (Principal Executive Officer)
James K. Schuler

/s/ THOMAS C. CONNELLY Senior Vice President, Chief Financial Officer March 8, 2002
- ----------------------------------- and Secretary
Thomas C. Connelly (Principal Accounting and Financial Officer)

/s/ DONALD R. HORTON Director March 8, 2002
- -----------------------------------
Donald R. Horton
</Table>

II-18

AP WESTERN GP CORPORATION, A MEMBER OR GENERAL PARTNER OF
WESTERN PACIFIC HOUSING-COPPER CANYON, LLC
WESTERN PACIFIC HOUSING-PACIFIC PARK II, LLC
WESTERN PACIFIC HOUSING-POINSETTIA, L.P. AND
WESTERN PACIFIC HOUSING-DEL VALLE, LLC
AP WP PARTNERS, L.P.

<Table>
<Caption>
SIGNATURE TITLE DATE
--------- ----- ----

/s/ JAMES K. SCHULER President March 8, 2002
- ----------------------------------- (Principal Executive Officer)
James K. Schuler

/s/ THOMAS C. CONNELLY Senior Vice President, Chief Financial Officer March 8, 2002
- ----------------------------------- and Secretary
Thomas C. Connelly (Principal Accounting and Financial Officer)

/s/ DONALD R. HORTON Director March 8, 2002
- -----------------------------------
Donald R. Horton
</Table>

AP LHI, INC., A MEMBER OF
WESTERN PACIFIC HOUSING-RIVER RIDGE, LLC

<Table>
<Caption>
SIGNATURE TITLE DATE
--------- ----- ----

/s/ JAMES K. SCHULER President March 8, 2002
- ----------------------------------- (Principal Executive Officer)
James K. Schuler

/s/ THOMAS C. CONNELLY Senior Vice President, Chief Financial Officer March 8, 2002
- ----------------------------------- and Secretary
Thomas C. Connelly (Principal Accounting and Financial Officer)

/s/ DONALD R. HORTON Director March 8, 2002
- -----------------------------------
Donald R. Horton
</Table>

II-19

EXHIBIT INDEX

(a) EXHIBITS:

<Table>
<Caption>
EXHIBIT
NUMBER EXHIBITS
- ------- --------

1.1* -- Form of Underwriting Agreement

4.1(d)* -- Form of Subordinated Trust Debt Securities Indenture (including form of notes)

4.3 -- Amended and Restated Bylaws of the registrant (incorporated by reference from Exhibit 3.1 to the registrant's
Quarterly Report on Form 10-Q for the quarter ended December 31, 1998)

4.4* -- Form of Warrant Agreement (including form of warrant)

4.5 -- Certificate of Trust for DRH Capital Trust I (incorporated by reference from Exhibit 4.5 to the registrant's
registration statement (No. 333-57388) on Form S-3, filed March 22, 2001)

4.6 -- Certificate of Trust for DRH Capital Trust II (incorporated by reference from Exhibit 4.6 to the registrant's
registration statement (No. 333-57388) on Form S-3, filed March 22, 2001)