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, the expected benefits of the Hancock  acquisition,
including future home closings and Hancock's future contribution to our revenues
and earnings, and our ability to continue positive operating results in light of
current economic  conditions and the events of September 11. 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 negatively affect the Company's business,  stock and bond prices, 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.