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"1 by creating a safe-harbor to protect companies from securities law
liability in connection with forward-looking statements. Monterey Homes
Corporation (the "Company" or "Monterey") intends to qualify both its written
and oral forward-looking statements for protection under the PSLRA.
To qualify oral forward-looking statements for protection under the
PSLRA, a readily available written document must identify important factors that
could cause actual results to differ materially from those in the
forward-looking statements. Monterey provides the following information in
connection with its continuing effort to qualify forward-looking statements for
the safe harbor protection of the PSLRA.
Important factors currently known to management that could cause actual
results to differ materially from those in forward-looking statements include,
but are not limited to, the following: (i) changes in national and local
economic 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 government 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) the Company's
ability to continue to acquire additional land or options to acquire additional
land on acceptable terms; (vii) lack of geographic diversification of the
Company's operation, especially when (A) real estate analysts are predicting
that new home sales in the Phoenix, Arizona metropolitan area will slow
significantly during 1997 and 1998 and (B) new home sales in the Tucson, Arizona
metropolitan area are expected to remain relatively flat during 1997; (viii)
limited product diversification in that the Company derives most of its revenue
from sales of semi-custom luxury homes; (ix) the inability of the Company to
obtain sufficient capital on terms acceptable to the Company to fund its planned
capital and other expenditures; (x) changes in local, state and federal rules
and regulations governing real estate developing and homebuilding activities and
environmental matters, including "no growth" or "slow growth" initiatives,
building permit allocation ordinances and building moratoriums; (xi) expansion
by the Company into new markets in which the Company has no operating
experience; (xii) the inability of the Company to identify acquisition
candidates that will result in successful combinations; (xiii) the failure of
the Company to make acquisitions on terms acceptable to the Company; (xiv) the
loss of key employees of the Company, including William W. Cleverly, Steven J.
Hilton and John Landon; and (xv) factors that may affect the Company's mortgage
assets, including general conditions in the financial markets, changes in
prepayment rates and changes in interest rates.
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, Monterey
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1 "Forward-looking statements" can be identified by use of words
such as "expect," "believe," "estimate," "project,"
"forecast," "anticipate," "plan," and similar expressions.
undertakes no obligation to update or revise forward-looking statements to
reflect changed assumptions, the occurrence of unanticipated events or changes
to projections over time.