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.