20 .	Supplemental Guarantor Information

Our senior notes are fully and unconditionally guaranteed on an unsecured basis, jointly and severally, by the following subsidiaries (collectively, the "Guarantor Subsidiaries"), which are

100%

-owned subsidiaries of the Company.

●

M.D.C. Land Corporation

●

RAH of Florida, Inc.

●

Richmond American Construction, Inc.

●

Richmond American Homes of Arizona, Inc.

●

Richmond American Homes of Colorado, Inc.

●

Richmond American Homes of Delaware, Inc.

●

Richmond American Homes of Florida, LP

●

Richmond American Homes of Illinois, Inc.

●

Richmond American Homes of Maryland, Inc.

●

Richmond American Homes of Nevada, Inc.

●

Richmond American Homes of New Jersey, Inc.

●

Richmond American Homes of Pennsylvania, Inc.

●

Richmond American Homes of Utah, Inc.

●

Richmond American Homes of Virginia, Inc.

●

Richmond American Homes of Washington, Inc.

The senior note indentures do

not

provide for a suspension of the guarantees, but do provide that any Guarantor

may

be released from its guarantee so long as (

)

default or event of default exists or would result from release of such guarantee, (

) the Guarantor being released has consolidated net worth of less than

of the Company’s consolidated net worth as of the end of the most recent fiscal quarter, (

) the Guarantors released from their guarantees in any year-end period comprise in the aggregate less than

10%

(or

15%

if and to the extent necessary to permit the cure of a default) of the Company’s consolidated net worth as of the end of the most recent fiscal quarter, (

) such release would

not

have a material adverse effect on the homebuilding business of the Company and its subsidiaries and (

) the Guarantor is released from its guarantee(s) under all Specified Indebtedness (other than by reason of payment under its guarantee of Specified Indebtedness). Upon delivery of an officers’ certificate and an opinion of counsel stating that all conditions precedent provided for in the indenture relating to such transactions have been complied with and the release is authorized, the guarantee will be automatically and unconditionally released. “Specified Indebtedness” means indebtedness under the senior notes, the Company’s Indenture dated as of

December 3, 2002,

the Revolving Credit Facility, and any refinancing, extension, renewal or replacement of any of the foregoing.

We have determined that separate, full financial statements of the Guarantor Subsidiaries would

not

be material to investors and, accordingly, supplemental financial information for the Guarantor and Non-Guarantor Subsidiaries is presented below.

Supplemental Condensed Combining Balance Sheet

	June 30, 2017
					Non-
			Guarantor		Guarantor		Eliminating			Consolidated
	MDC		Subsidiaries		Subsidiaries		Entries			MDC
	(Dollars in thousands)
ASSETS
Homebuilding:
Cash and cash equivalents	$	310,329	$	4,485	$	-	$	-		$	314,814
Marketable securities		65,268		-		-		-			65,268
Restricted cash		-		5,027		-		-			5,027
Trade and other receivables		5,490		34,378		-		(2,121	)		37,747
Inventories:
Housing completed or under construction		-		909,911		-		-			909,911
Land and land under development		-		846,825		-		-			846,825
Total inventories		-		1,756,736		-		-			1,756,736

Intercompany receivables		1,442,812		2,802		5,645		(1,451,259	)		-
Investment in subsidiaries		354,952		-		-		(354,952	)		-
Property and equipment, net		25,057		2,137		-		-			27,194
Deferred tax asset, net		63,094		-		-		(648	)		62,446
Metropolitan district bond securities (related party)		31,864		-		-		-			31,864
Prepaid and other assets		3,464		63,545		-		-			67,009
Total homebuilding assets		2,302,330		1,869,110		5,645		(1,808,980	)		2,368,105

Financial Services:
Cash and cash equivalents		-		-		23,162		-			23,162
Marketable securities		-		-		38,666		-			38,666
Intercompany receivables		-		-		39,342		(39,342	)		-
Mortgage loans held-for-sale, net		-		-		95,283		-			95,283
Other assets		-		-		10,547		648			11,195
Total financial services assets		-		-		207,000		(38,694	)		168,306
Total Assets	$	2,302,330	$	1,869,110	$	212,645	$	(1,847,674	)	$	2,536,411

LIABILITIES AND EQUITY

Homebuilding:
Accounts payable	$	-	$	48,327	$	-	$	-		$	48,327
Accrued liabilities		33,656		111,794		99		2,650			148,199
Advances and notes payable to parent and subsidiaries		47,789		1,412,036		27,016		(1,486,841	)		-
Revolving credit facility		15,000		-		-		-			15,000
Senior notes, net		842,232		-		-		-			842,232
Total homebuilding liabilities		938,677		1,572,157		27,115		(1,484,191	)		1,053,758

Financial Services:
Accounts payable and other liabilities		-		-		54,644		(4,771	)		49,873
Advances and notes payable to parent and subsidiaries		-		-		3,760		(3,760	)		-
Mortgage repurchase facility		-		-		69,127		-			69,127
Total financial services liabilities		-		-		127,531		(8,531	)		119,000
Total Liabilities		938,677		1,572,157		154,646		(1,492,722	)		1,172,758

Equity:
Total Stockholders' Equity		1,363,653		296,953		57,999		(354,952	)		1,363,653
Total Liabilities and Stockholders' Equity	$	2,302,330	$	1,869,110	$	212,645	$	(1,847,674	)	$	2,536,411

Supplemental Co

ndensed Combining Balance Sheet

	December 31, 2016
					Non-
			Guarantor		Guarantor		Eliminating			Consolidated
	MDC		Subsidiaries		Subsidiaries		Entries			MDC
	(Dollars in thousands)
ASSETS
Homebuilding:
Cash and cash equivalents	$	255,679	$	3,408	$	-	$	-		$	259,087
Marketable securities		59,770		-		-		-			59,770
Restricted cash		-		3,778		-		-			3,778
Trade and other receivables		5,380		39,247		-		(2,135	)		42,492
Inventories:
Housing completed or under construction		-		874,199		-		-			874,199
Land and land under development		-		884,615		-		-			884,615
Total inventories		-		1,758,814		-		-			1,758,814

Intercompany receivables		1,475,291		2,803		5,289		(1,483,383	)		-
Investment in subsidiaries		295,214		-		-		(295,214	)		-
Property and equipment, net		25,495		2,546		-		-			28,041
Deferred tax assets, net		74,119		-		-		769			74,888
Metropolitan district bond securities (related party)		30,162		-		-		-			30,162
Other assets		5,267		55,196		-		-			60,463
Total Homebuilding Assets		2,226,377		1,865,792		5,289		(1,779,963	)		2,317,495

Financial Services:
Cash and cash equivalents		-		-		23,822		-			23,822
Marketable securities		-		-		36,436		-			36,436
Intercompany receivables		-		-		40,042		(40,042	)		-
Mortgage loans held-for-sale, net		-		-		138,774		-			138,774
Other assets		-		-		12,831		(769	)		12,062
Total Financial Services Assets		-		-		251,905		(40,811	)		211,094
Total Assets	$	2,226,377	$	1,865,792	$	257,194	$	(1,820,774	)	$	2,528,589

LIABILITIES AND EQUITY

Homebuilding:
Accounts payable	$	-	$	42,088	$	-	$	-		$	42,088
Accrued liabilities		1,527		136,615		143		6,281			144,566
Advances and notes payable to parent and subsidiaries		48,134		1,445,276		26,266		(1,519,676	)		-
Revolving credit facility		15,000		-		-		-			15,000
Senior notes, net		841,646		-		-		-			841,646
Total Homebuilding Liabilities		906,307		1,623,979		26,409		(1,513,395	)		1,043,300

Financial Services:
Accounts payable and accrued liabilities		-		-		59,150		(8,416	)		50,734
Advances and notes payable to parent and subsidiaries		-		-		3,749		(3,749	)		-
Mortgage repurchase facility		-		-		114,485		-			114,485
Total Financial Services Liabilities		-		-		177,384		(12,165	)		165,219
Total Liabilities		906,307		1,623,979		203,793		(1,525,560	)		1,208,519

Equity:
Total Stockholders' Equity		1,320,070		241,813		53,401		(295,214	)		1,320,070
Total Liabilities and Stockholders' Equity	$	2,226,377	$	1,865,792	$	257,194	$	(1,820,774	)	$	2,528,589

Supplementa

l Condensed Combining Statement

of Operations

	Three Months Ended June 30, 2017
							Non-
				Guarantor			Guarantor			Eliminating			Consolidated
	MDC			Subsidiaries			Subsidiaries			Entries			MDC
	(Dollars in thousands)
Homebuilding:
Revenues	$	-		$	648,971		$	-		$	-		$	648,971
Cost of sales		-			(540,279	)		-			-			(540,279	)
Inventory impairments		-			-			-			-			-
Gross margin		-			108,692			-			-			108,692
Selling, general, and administrative expenses		(12,233	)		(58,284	)		-			(192	)		(70,709	)
Equity income of subsidiaries		40,109			-			-			(40,109	)		-
Interest and other income		2,332			666			3			(154	)		2,847
Other expense		8			(674	)		-			-			(666	)
Other-than-temporary impairment of marketable securities		(1	)		-			-			-			(1	)
Homebuilding pretax income (loss)		30,215			50,400			3			(40,455	)		40,163
Financial Services:
Financial services pretax income		-			-			11,385			346			11,731
Income before income taxes		30,215			50,400			11,388			(40,109	)		51,894
(Provision) benefit for income taxes		3,656			(17,479	)		(4,200	)		-			(18,023	)
Net income	$	33,871		$	32,921		$	7,188		$	(40,109	)	$	33,871
Other comprehensive income related to available-for-sale securities, net of tax		1,944			-			456			(456	)		1,944
Comprehensive income	$	35,815		$	32,921		$	7,644		$	(40,565	)	$	35,815

	Three Months Ended June 30, 2016
							Non-
				Guarantor			Guarantor			Eliminating			Consolidated
	MDC			Subsidiaries			Subsidiaries			Entries			MDC
	(Dollars in thousands)
Homebuilding:
Revenues	$	-		$	571,511		$	-		$	-		$	571,511
Cost of sales		-			(476,052	)		-			-			(476,052	)
Inventory impairments		-			(1,600	)		-			-			(1,600	)
Gross margin		-			93,859			-			-			93,859
Selling, general, and administrative expenses		(11,228	)		(53,024	)		-			(188	)		(64,440	)
Equity income of subsidiaries		32,909			-			-			(32,909	)		-
Interest and other income		2,020			423			2			108			2,553
Interest expense		-			-			-			-			-
Other expense		(1	)		(277	)		-			-			(278	)
Other-than-temporary impairment of marketable securities		(288	)		-			-			-			(288	)
Homebuilding pretax income (loss)		23,412			40,981			2			(32,989	)		31,406
Financial Services:
Financial services pretax income		-			-			8,972			80			9,052
Income before income taxes		23,412			40,981			8,974			(32,909	)		40,458
(Provision) benefit for income taxes		3,501			(13,746	)		(3,300	)		-			(13,545	)
Net income	$	26,913		$	27,235		$	5,674		$	(32,909	)	$	26,913
Other comprehensive income related to available-for-sale securities, net of tax		895			-			371			(371	)		895
Comprehensive income	$	27,808		$	27,235		$	6,045		$	(33,280	)	$	27,808

Supplementa

l Condensed Combining Statement

of Operations

	Six Months Ended June 30, 2017
							Non-
				Guarantor			Guarantor			Eliminating			Consolidated
	MDC			Subsidiaries			Subsidiaries			Entries			MDC
	(Dollars in thousands)
Homebuilding:
Revenues	$	-		$	1,212,697		$	-		$	-		$	1,212,697
Home and land cost of sales		-			(1,009,432	)		-			-			(1,009,432	)
Inventory impairments		-			(4,850	)		-			-			(4,850	)
Gross margin		-			198,415			-			-			198,415
Selling, general, and administrative expenses		(24,628	)		(112,005	)		-			(374	)		(137,007	)
Equity income of subsidiaries		69,140			-			-			(69,140	)		-
Interest and other income		4,008			1,340			4			(178	)		5,174
Other expense		16			(1,033	)		-			-			(1,017	)
Other-than-temporary impairment of marketable securities		(51	)		-			-			-			(51	)
Homebuilding pretax income (loss)		48,485			86,717			4			(69,692	)		65,514
Financial Services:
Financial services pretax income		-			-			22,188			552			22,740
Income before income taxes		48,485			86,717			22,192			(69,140	)		88,254
(Provision) benefit for income taxes		7,635			(31,574	)		(8,195	)		-			(32,134	)
Net income	$	56,120		$	55,143		$	13,997		$	(69,140	)	$	56,120
Other comprehensive income related to available for sale securities, net of tax		3,930			-			1,290			(1,290	)		3,930
Comprehensive income	$	60,050		$	55,143		$	15,287		$	(70,430	)	$	60,050

	Six Months Ended June 30, 2016
							Non-
				Guarantor			Guarantor			Eliminating			Consolidated
	MDC			Subsidiaries			Subsidiaries			Entries			MDC
	(Dollars in thousands)
Homebuilding:
Revenues	$	-		$	968,255		$	-		$	-		$	968,255
Home and land cost of sales		-			(807,441	)		(300	)		-			(807,741	)
Inventory impairments		-			(1,600	)		-			-			(1,600	)
Gross margin		-			159,214			(300	)		-			158,914
Selling, general, and administrative expenses		(23,330	)		(97,040	)		-			(347	)		(120,717	)
Equity income of subsidiaries		50,279			-			-			(50,279	)		-
Interest and other income		2,492			1,152			3			(158	)		3,489
Other expense		(3	)		(902	)		-			-			(905	)
Other-than-temporary impairment of marketable securities		(719	)		-			-			-			(719	)
Homebuilding pretax income (loss)		28,719			62,424			(297	)		(50,784	)		40,062
Financial Services:
Financial services pretax income		-			-			14,164			505			14,669
Income before income taxes		28,719			62,424			13,867			(50,279	)		54,731
(Provision) benefit for income taxes		7,757			(20,822	)		(5,190	)		-			(18,255	)
Net income	$	36,476		$	41,602		$	8,677		$	(50,279	)	$	36,476
Other comprehensive income related to available for sale securities, net of tax		2,843			-			370			(370	)		2,843
Comprehensive income	$	39,319		$	41,602		$	9,047		$	(50,649	)	$	39,319

Supplementa

l Condensed Combining Statement

of Cash Flows

	Six Months Ended June 30, 2017
							Non-
				Guarantor			Guarantor			Eliminating			Consolidated
	MDC			Subsidiaries			Subsidiaries			Entries			MDC
	(Dollars in thousands)
Net cash provided by (used in) operating activities	$	32,086		$	34,505		$	54,296		$	-		$	120,887
Net cash provided by (used in) investing activities		41,069			(88	)		(59	)		(42,879	)		(1,957	)
Financing activities:
Payments from (advances to) subsidiaries		-			(33,340	)		(9,539	)		42,879			-
Mortgage repurchase facility		-			-			(45,358	)		-			(45,358	)
Dividend payments		(25,809	)		-			-			-			(25,809	)
Proceeds from exercise of stock options		7,304			-			-			-			7,304
Net cash provided by (used in) financing activities		(18,505	)		(33,340	)		(54,897	)		42,879			(63,863	)

Net increase in cash and cash equivalents		54,650			1,077			(660	)		-			55,067
Cash and cash equivalents:
Beginning of period		255,679			3,408			23,822			-			282,909
End of period	$	310,329		$	4,485		$	23,162		$	-		$	337,976

	Six Months Ended June 30, 2016
							Non-
				Guarantor			Guarantor			Eliminating			Consolidated
	MDC			Subsidiaries			Subsidiaries			Entries			MDC
	(Dollars in thousands)
Net cash provided by (used in) operating activities	$	17,988		$	(45,748	)	$	5,674		$	-		$	(22,086	)
Net cash provided by (used in) investing activities		(6,756	)		(1,132	)		(2,967	)		43,077			32,222
Financing activities:
Payments from (advances to) subsidiaries		-			47,816			(4,739	)		(43,077	)		-
Mortgage repurchase facility		-			-			4,686			-			4,686
Dividend payments		(24,504	)		-			-			-			(24,504	)
Proceeds from the exercise of stock options		-			-			-			-			-
Net cash provided by (used in) financing activities		(24,504	)		47,816			(53	)		(43,077	)		(19,818	)

Net increase in cash and cash equivalents		(13,272	)		936			2,654			-			(9,682	)
Cash and cash equivalents:
Beginning of period		141,245			3,097			36,646			-			180,988
End of period	$	127,973		$	4,033		$	39,300		$	-		$	171,306