Exhibit 99

                PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
         SAFE HARBOR COMPLIANCE STATEMENT FOR FORWARD-LOOKING STATEMENTS

     In  passing  the  Private  Securities  Litigation  Reform  Act of 1995 (the
"PSLRA"),   Congress  encouraged  public  companies  to  make   "forward-looking
statements" by creating a safe-harbor to protect  companies from  securities law
liability in connection with  forward-looking  statements.  Meritage  intends to
qualify  both its written and oral  forward-looking  statements  for  protection
under the PSLRA.

     The words  "believe,"  "expect,"  "anticipate,"  and  "project" and similar
expressions identify forward-looking statements, which speak only as of the date
the statement was made. Such  forward-looking  statements are within the meaning
of that term in Section  27A of the  Securities  Act of 1993,  as  amended,  and
Section 21E of the Securities Exchange Act of 1934.  Forward-looking  statements
in this Form 10-Q include  statements  concerning the demand for and the pricing
of our homes,  the expectation of continued  positive  operating  results in the
remainder  of  2001  and  beyond,  and  the  expected  benefits  of the  Hancock
acquisition,  including  projected  future home  closings and  Hancock's  future
contribution  to our  revenues  and  earnings.  Such  statements  are subject to
significant risks and uncertainties.

     Important  factors  currently  known to management  that could cause actual
results to differ materially from those in forward-looking  statements, and that
could  affect  the  Company's  business  include,  but are not  limited  to, the
following:  (i) changes in national  and local  economic  financial  results and
other conditions, such as employment levels, availability of mortgage financing,
interest rates, consumer confidence,  and housing demand; (ii) risks inherent in
homebuilding  activities,  including  delays  in  construction  schedules,  cost
overruns,  changes in government regulation,  increases in real estate taxes and
other local fees; (iii) changes in costs or availability of land, materials, and
labor; (iv) fluctuations in real estate values;  (v) the timing of home closings
and land sales; (vi) Meritage's  ability to continue to acquire  additional land
or options to acquire additional land on acceptable terms; (vii) a relative lack
of geographic  diversification  of Meritage's  operations,  especially when real
estate  analysts are predicting  that new home sales in certain markets may slow
during or after 2001; (viii) Meritage's  inability to obtain sufficient  capital
on  terms  acceptable  to  Meritage  to  fund  its  planned  capital  and  other
expenditures;  (ix) changes in local,  state and federal  rules and  regulations
governing real estate development and homebuilding  activities and environmental
matters,  including "no growth" or "slow growth"  initiatives,  building  permit
allocation ordinances and building  moratoriums;  (x) expansion by Meritage into
new  geographic or product  markets in which Meritage has little or no operating
experience;  (xi) the inability of Meritage to identify  acquisition  candidates
that will result in  successful  combinations;  (xii) the failure of Meritage to
make acquisitions on terms acceptable to Meritage, or to successfully  integrate
acquired operations,  into Meritage; and (xiii) the loss of key employees of the
Company,  including  Steven  J.  Hilton  and John R.  Landon;  (xiv)  Meritage's
significant  level of  indebtedness  and the diversion of cash flow to make debt
payments; (xv) restrictions on our business activities imposed by the agreements
governing our indebtedness; and (xvi) our inability to repay our indebtedness.

     With respect to our acquisition of Hancock,  these  uncertainties  include:
(1) the risk that the Hancock  business will not be integrated with our existing
business  successfully;  (2) that the market and financial synergies will not be
achieved in the time frame anticipated, or at all; (3) that the acquisition will
not be  accretive  to earnings  due to  unexpected  expenses,  contingencies  or
liabilities  or due to the financial  performance of the Hancock  business;  (4)
that the combined  companies will lose key employees,  management,  suppliers or
subcontractors;  (5) increased competition;  (6) and our ability to successfully
manage new housing  lines that were  previously  managed by Hancock or new lines
planned for the future.

     Forward-looking  statements  express  expectations  of future  events.  All
forward-looking statements are inherently uncertain as they are based on various
expectations  and assumptions  concerning  future events and they are subject to
numerous  known and unknown  risks and  uncertainties  which could cause  actual
events or  results  to differ  materially  from  those  projected.  Due to these
inherent  uncertainties,  the  investment  community is urged not to place undue
reliance on  forward-looking  statements.  In addition,  Meritage  undertakes no
obligations to update or revise  forward-looking  statements to reflect  changed
assumptions, the occurrence of anticipated events or changes to projections over
time.  As a result of these  and other  factors,  the  Company's  stock and bond
prices may fluctuate dramatically.