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.   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) a relative 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  may  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) the
inability of the Company to obtain sufficient capital on terms acceptable to the
Company to fund its planned  capital  and other  expenditures;  (ix)  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;  (x) expansion by the Company into new markets in which the Company
has no operating experience, such as Texas; (xi) the inability of the Company to
identify  acquisition  candidates  that will result in successful  combinations;
(xii) the failure of the Company to make acquisitions on terms acceptable to the
Company;  (xiii) the loss of key employees of the Company,  including William W.
Cleverly, Steven J. Hilton and John R. Landon; and (xiv) 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  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.



         (1)      "Forward-looking statements" can be identified by use of words
                  such   as   "expect,"   "believe,"    "estimate,"   "project,"
                  "forecast," "anticipate," "plan," and similar expressions.

                           MONTEREY HOMES CORPORATION

                                   SIGNATURES

         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
the  registrant  has duly  caused  this  report  to be  signed  on behalf by the
undersigned thereunto duly authorized.


                            MONTEREY HOMES CORPORATION
                            A Maryland Corporation



November 14, 1997           By:                  /s/ LARRY W. SEAY
                               ------------------------------------
                                                     Larry W. Seay
                             Vice President of Finance & Chief Financial Officer
                                       S.1