21 .	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 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

Oregon, Inc. (formerly known as Richmond American Homes of Delaware, 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

	September 30, 2017
					Non-
			Guarantor		Guarantor		Eliminating			Consolidated
	MDC		Subsidiaries		Subsidiaries		Entries			MDC
	(Dollars in thousands)
ASSETS
Homebuilding:
Cash and cash equivalents	$	347,217	$	4,182	$	-	$	-		$	351,399
Marketable securities		-		-		-		-			-
Restricted cash		-		8,723		-		-			8,723
Trade and other receivables		5,517		39,577		-		(2,190	)		42,904
Inventories:
Housing completed or under construction		-		969,419		-		-			969,419
Land and land under development		-		863,002		-		-			863,002
Total inventories		-		1,832,421		-		-			1,832,421

Intercompany receivables		1,603,012		2,803		5,254		(1,611,069	)		-
Investment in subsidiaries		278,885		-		-		(278,885	)		-
Property and equipment, net		24,408		1,896		-		-			26,304
Deferred tax asset, net		65,284		-		-		(1,120	)		64,164
Metropolitan district bond securities (related party)		-		-		-		-			-
Prepaid and other assets		8,155		64,653		-		-			72,808
Total homebuilding assets		2,332,478		1,954,255		5,254		(1,893,264	)		2,398,723

Financial Services:
Cash and cash equivalents		-		-		26,419		-			26,419
Marketable securities		-		-		40,221		-			40,221
Intercompany receivables		-		-		35,765		(35,765	)		-
Mortgage loans held-for-sale, net		-		-		89,804		-			89,804
Other assets		-		-		10,015		1,120			11,135
Total financial services assets		-		-		202,224		(34,645	)		167,579
Total Assets	$	2,332,478	$	1,954,255	$	207,478	$	(1,927,909	)	$	2,566,302

LIABILITIES AND EQUITY

Homebuilding:
Accounts payable	$	-	$	49,390	$	-	$	-		$	49,390
Accrued liabilities		40,205		112,986		98		(1,628	)		151,661
Advances and notes payable to parent and subsidiaries		43,822		1,572,098		26,802		(1,642,722	)		-
Revolving credit facility		15,000		-		-		-			15,000
Senior notes, net		842,532		-		-		-			842,532
Total homebuilding liabilities		941,559		1,734,474		26,900		(1,644,350	)		1,058,583

Financial Services:
Accounts payable and other liabilities		-		-		52,259		(562	)		51,697
Advances and notes payable to parent and subsidiaries		-		-		4,112		(4,112	)		-
Mortgage repurchase facility		-		-		65,103		-			65,103
Total financial services liabilities		-		-		121,474		(4,674	)		116,800
Total Liabilities		941, 559		1,734,474		148,374		(1,649,024	)		1,175,383

Equity:
Total Stockholders' Equity		1,390,919		219,781		59,104		(278,885	)		1,390,919
Total Liabilities and Stockholders' Equity	$	2,332,478	$	1,954,255	$	207,478	$	(1,927,909	)	$	2,566,302

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 September 30, 2017
							Non-
				Guarantor			Guarantor			Eliminating			Consolidated
	MDC			Subsidiaries			Subsidiaries			Entries			MDC
	(Dollars in thousands)
Homebuilding:
Revenues	$	-		$	586,287		$	-		$	-		$	586,287
Cost of sales		-			(486,406	)		-			-			(486,406	)
Inventory impairments		-			(4,540	)		-			-			(4,540	)
Gross margin		-			95,341			-			-			95,341
Selling, general, and administrative expenses		(11,911	)		(56,983	)		-			(208	)		(69,102	)
Equity income of subsidiaries		33,329			-			-			(33,329	)		-
Interest and other income		53,740			941			1			(134	)		54,548
Other expense		7			(625	)		-			-			(618	)
Other-than-temporary impairment of marketable securities		-			-			-			-			-
Homebuilding pretax income (loss)		75,165			38,674			1			(33,671	)		80,169
Financial Services:
Financial services pretax income		-			-			9,169			342			9,511
Income before income taxes		75,165			38,674			9,170			(33,329	)		89,680
(Provision) benefit for income taxes		(14,002	)		(11,168	)		(3,347	)		-			(28,517	)
Net income	$	61,163		$	27,506		$	5,823		$	(33,329	)	$	61,163
Other comprehensive income related to available-for-sale securities, net of tax		(23,175	)		-			927			(927	)		(23,175	)
Comprehensive income	$	37,988		$	27,506		$	6,750		$	(34,256	)	$	37,988

	Three Months Ended September 30, 2016
							Non-
				Guarantor			Guarantor			Eliminating			Consolidated
	MDC			Subsidiaries			Subsidiaries			Entries			MDC
	(Dollars in thousands)
Homebuilding:
Revenues	$	-		$	578,012		$	-		$	-		$	578,012
Cost of sales		-			(483,829	)		-			-			(483,829	)
Inventory impairments		-			(4,700	)		-			-			(4,700	)
Gross margin		-			89,483			-			-			89,483
Selling, general, and administrative expenses		(8,268	)		(53,452	)		-			(184	)		(61,904	)
Equity income of subsidiaries		30,711			-			-			(30,711	)		-
Interest and other income		1,478			500			1			(110	)		1,869
Other expense		1			(1,559	)		-			-			(1,558	)
Other-than-temporary impairment of marketable securities		(215	)		-			-			-			(215	)
Homebuilding pretax income (loss)		23,707			34,972			1			(31,005	)		27,675
Financial Services:
Financial services pretax income		-			-			10,083			294			10,377
Income before income taxes		23,707			34,972			10,084			(30,711	)		38,052
(Provision) benefit for income taxes		2,652			(10,616	)		(3,729	)		-			(11,693	)
Net income	$	26,359		$	24,356		$	6,355		$	(30,711	)	$	26,359
Other comprehensive income related to available-for-sale securities, net of tax		1,028			-			310			(310	)		1,028
Comprehensive income	$	27,387		$	24,356		$	6,665		$	(31,021	)	$	27,387

Supplemental Condensed Combining Statement of Operations

	Nine Months Ended September 30, 2017
							Non-
				Guarantor			Guarantor			Eliminating			Consolidated
	MDC			Subsidiaries			Subsidiaries			Entries			MDC
	(Dollars in thousands)
Homebuilding:
Revenues	$	-		$	1,798,984		$	-		$	-		$	1,798,984
Home and land cost of sales		-			(1,495,838	)		-			-			(1,495,838	)
Inventory impairments		-			(9,390	)		-			-			(9,390	)
Gross margin		-			293,756			-			-			293,756
Selling, general, and administrative expenses		(36,539	)		(168,988	)		-			(582	)		(206,109	)
Equity income of subsidiaries		102,469			-			-			(102,469	)		-
Interest and other income		57,748			2,281			5			(312	)		59,722
Other expense		23			(1,658	)		-			-			(1,635	)
Other-than-temporary impairment of marketable securities		(51	)		-			-			-			(51	)
Homebuilding pretax income (loss)		123,650			125,391			5			(103,363	)		145,683
Financial Services:
Financial services pretax income		-			-			31,357			894			32,251
Income before income taxes		123,650			125,391			31,362			(102,469	)		177,934
(Provision) benefit for income taxes		(6,367	)		(42,742	)		(11,542	)		-			(60,651	)
Net income	$	117,283		$	82,649		$	19,820		$	(102,469	)	$	117,283
Other comprehensive income related to available for sale securities, net of tax		(19,245	)		-			2,217			(2,217	)		(19,245	)
Comprehensive income	$	98,038		$	82,649		$	22,037		$	(104,686	)	$	98,038

	Nine Months Ended September 30, 2016
							Non-
				Guarantor			Guarantor			Eliminating			Consolidated
	MDC			Subsidiaries			Subsidiaries			Entries			MDC
Homebuilding:	(Dollars in thousands)
Revenues	$	-		$	1,546,267		$	-		$	-		$	1,546,267
Home and land cost of sales		-			(1,291,270	)		(300	)		-			(1,291,570	)
Inventory impairments		-			(6,300	)		-			-			(6,300	)
Gross margin		-			248,697			(300	)		-			248,397
Selling, general, and administrative expenses		(31,598	)		(150,492	)		-			(531	)		(182,621	)
Equity income of subsidiaries		80,990			-			-			(80,990	)		-
Interest and other income		3,970			1,652			4			(268	)		5,358
Interest expense		-			-			-			-			-
Other expense		(2	)		(2,461	)		-			-			(2,463	)
Other-than-temporary impairment of marketable securities		(934	)		-			-			-			(934	)
Homebuilding pretax income (loss)		52,426			97,396			(296	)		(81,789	)		67,737
Financial Services:
Financial services pretax income		-			-			24,247			799			25,046
Income before income taxes		52,426			97,396			23,951			(80,990	)		92,783
(Provision) benefit for income taxes		10,409			(31,438	)		(8,919	)		-			(29,948	)
Net income	$	62,835		$	65,958		$	15,032		$	(80,990	)	$	62,835
Other comprehensive income related to available for sale securities, net of tax		3,871			-			680			(680	)		3,871
Comprehensive income	$	66,706		$	65,958		$	15,712		$	(81,670	)	$	66,706

Supplementa

l Condensed Combining Statement

of Cash Flows

	Nine Months Ended September 30, 2017
							Non-
				Guarantor			Guarantor			Eliminating			Consolidated
	MDC			Subsidiaries			Subsidiaries			Entries			MDC
	(Dollars in thousands)
Net cash provided by (used in) operating activities	$	26,918		$	( 21,023	)	$	63,269		$	-		$	69,164
Net cash provided by (used in) investing activities		97,540			( 198	)		( 254	)		10,959			108,047
Financing activities:
Payments from (advances to) subsidiaries		-			21,995			( 11,036	)		( 10,959	)		-
Mortgage repurchase facility		-			-			( 49,382	)		-			( 49,382	)
Dividend payments		( 38,793	)		-			-			-			( 38,793	)
Payments of deferred financing costs		( 2,630	)		-			-			-			( 2,630	)
Proceeds from exercise of stock options		8,503			-			-			-			8,503
Net cash provided by (used in) financing activities		( 32,920	)		21,995			( 60,418	)		( 10,959	)		( 82,302	)

Net increase in cash and cash equivalents		91,538			774			2,597			-			94,909
Cash and cash equivalents:
Beginning of period		255,679			3,408			23,822			-			282,909
End of period	$	347,217		$	4,182		$	26,419		$	-		$	377,818

	Nine Months Ended September 30, 2016
							Non-
				Guarantor			Guarantor			Eliminating			Consolidated
	MDC			Subsidiaries			Subsidiaries			Entries			MDC
	(Dollars in thousands)
Net cash provided by (used in) operating activities	$	( 5,918	)	$	( 17,581	)	$	14,596		$	-		$	( 8,903	)
Net cash provided by (used in) investing activities		26,166			( 1,252	)		( 9,797	)		9,619			24,736
Financing activities:
Payments from (advances to) subsidiaries		-			20,284			( 10,665	)		( 9,619	)		-
Mortgage repurchase facility		-			-			3,400			-			3,400
Dividend payments		( 36,763	)		-			-			-			( 36,763	)
Payments of deferred financing costs		-			-			-			-			-
Proceeds from the exercise of stock options		-			-			-			-			-
Net cash provided by (used in) financing activities		( 36,763	)		20,284			( 7,265	)		( 9,619	)		( 33,363	)

Net increase in cash and cash equivalents		( 16,515	)		1,451			( 2,466	)		-			( 17,530	)
Cash and cash equivalents:
Beginning of period		141,245			3,097			36,646			-			180,988
End of period	$	124,730		$	4,548		$	34,180		$	-		$	163,458