UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Commission file number33-55254-18
AFFORDABLE HOMES OF AMERICA, INC.
(Exact name of registrant as specified in charter)
NEVADA 87-0434297
(STATE OF OTHER JURSDISTION (I.R.S. Employer
INCORPORATION OR ORGANIZATION) Identification number)
4505 W. Hacienda Ave.
Unit I-1
Las Vegas, Nevada 89118
(Address of Principal Executive Office) (Zip Code)
702-579-4800
(Registrant's Telephone Number, Including Area Code)
Page Two
Item No 1 Changes in Control of Registrant
No events to report
Item No 2 Acquisition or Disposition of Assets
Affordable Homes of America, Inc. ("Affordable") acquired
M.P. Hall Enterprises, Inc. ("M.P.Hall"), on April 27, 1999. The
acquisition of M. P. Hall was accomplished by the issuance of
convertible preferred shares at strike price of $5.50 per share.
The total purchase price of M. P. Hall was $550,000.00. By
agreement, once the strike price is reached, 20,000 shares per
quarter can be sold in the public market. Affordable will assume
debt in the amount of $375,000. M. P. Hall assets consist of a
motel site located near the front gates of McCord AFB and Ft.
Lewis Army Base. The site is appraised for $930,000.00 "as is".
Affordable plans to build a 55 unit Ramada Inn on the site. All
plans and permits have been approved and sewer and water hook-up
have been paid. Application has been made for the construction
and development loan. Construction is expected to take 6 months
to complete. The estimated gross revenues are $879,285.00 per
year.
Affordable Homes of America, Inc. ("Affordable") acquired
Composite Industries, Inc. ("Composite") on April 28, 1999. The
acquisition was accomplished by exchanging one share of
Affordable's common stock for two shares of Composite's common
stock. All stock issued by Affordable pursuant to this
acquisition is restricted. Under the terms of the Agreement,
Composite will merge with Affordable and Affordable will be the
surviving entity. Affordable, pursuant to the merger, now owns
the patents formerly owned by Composite. The patents cover a
construction material called "Z Mix". Z Mix is a building
material lighter and stronger than cement that can be used in
home construction instead of cement or drywall.
Affordable also acquired the plans for a "World Home" and a
"U. S. Home" made from this material. These plans have been
certified by Larson Engineering, Inc. as earthquake resistant in
all four seismic regions in the world. Larson Engineering, Inc.
also certified that houses built from these materials are able
withstand hurricane winds up to 150mph. Affordable believes
that use of Z Mix will permit it to construct lower cost housing
at substantially less than its present cost for such housing. Z
Mix can also be used in the manufacture of utility poles,
railroad ties, pallets with substantial savings in the
manufacturing cost of these items. Affordable believes that the
use of Z Mix will broaden its market and increase its
profitability.
Page Three
Item No. 3 Bankruptcy or Receivership
No events to report
Item No. 4 Changes in Registrant's Certifying Accountants
No events to report
Item No. 5 Other Events
No events to report
Item No. 6 Resignation of Registrant's Directors
No events to report
Item No. 7 Financial Statements, Proforma Financial Information and
Exhihits
Updated financial statements will filed by amended 8-K
as soon as finished by the auditors.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
AFFORDABLE HOMES OF AMERICA, INC.
By: /s/ Merle Ferguson Dated: May 4, 1999
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Merle Ferguson, President
By: /s/ Susan Donohue Dated: May 4, 1999
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Susan Donohue, Secretary