EXHIBIT 99.4

                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,"  "plan" 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 1933 and Section
21E  of the  Securities  Exchange  Act  of  1934,  as  amended.  Forward-looking
statements in this Form 10-Q may include, but are not limited to, projections of
revenue,  income or loss;  capital  expenditures  and backlog;  plans for future
operations;  financing  needs or plans and  liquidity;  the impact of changes in
interest rates;  plans relating to our products or services,  acquisitions,  and
new or planned  development  projects;  the demand for and pricing of our homes;
the expected  outcome of legal  proceedings  against use; the sufficiency of our
capital resources;  the impact of new accounting  standards;  and our ability to
continue  positive  operating results in light of current economic and political
conditions, as well as assumptions relating to the foregoing.

     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 note prices, include,
but  are  not  limited  to,  the  strength  and   competitive   pricing  of  the
single-family  housing market;  demands for and acceptance of our homes; changes
in the  availability  and  pricing  of real  estate in the  markets  in which we
operate;  our  ability  to  continue  to acquire  additional  land or options to
acquire  additional  land on  acceptable  terms;  general  economic  slow downs;
consumer confidence, which can be impacted by economic and other factors such as
terrorism,  war, or threats thereof and changes in stock markets;  the impact of
construction  defect and home  warranty  claims;  the cost and  availability  of
insurance,  including  the  availability  of insurance for the presence of mold;
interest  rates and  changes in the  availability  and  pricing  of  residential
mortgages; our lack of geographic diversification; our level of indebtedness and
our ability to raise additional  capital when and if needed; our ability to take
certain  actions  because of  restrictions  contained in the  indenture  for our
senior  notes  and the  agreement  for our  senior  unsecured  credit  facility;
legislative  or other  initiatives  that seek to restrain  growth in new housing
constructions  or similar  measures;  the  success of our  program to  integrate
existing  operations  with our planned new operations of those of past or future
acquisitions;  our success in locating and  negotiating  favorably with possible
acquisition candidates; our ability to expand pre-tax margins; our dependence on
key personnel and the availability of satisfactory subcontractors; the impact of
inflation;  our  potential  exposure to natural  disasters;  and new  accounting
policies or principles or governmental or stock exchange  regulations that could
affect our corporate governance or accounting methods.

     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.