Debt

12 Months Ended

Dec. 31, 2011

Debt [Abstract]

Debt

7. Debt

	December 31,
	2011		2010
Homebuilding:
Other term debt:
Capital lease obligations due in monthly installments through 2014 (a)	$	1,613	$	1,751
Mortgage Banking:
Master repurchase agreement (b)	$	—	$	90,338

(a) The capital lease obligation has a fixed interest rate of 13.0% and is collateralized by buildings and equipment with a net book value of approximately $495 and $681 at December 31, 2011 and 2010, respectively.

The following schedule provides future minimum lease payments under the capital lease together with the present value as of December 31, 2011:

Year ending December 31,
2012	$	609
2013		644
2014		725
2015		—
2016		—
Thereafter		—
		1,978
Amount representing interest		(365	)
	$	1,613

(b) On August 2, 2011, NVRM entered into a revolving mortgage repurchase agreement with U.S. Bank National Association (the “Repurchase Agreement”). The purpose of the Repurchase Agreement is to finance the origination of mortgage loans by NVRM. The Repurchase Agreement provides for loan purchases up to $25,000, subject to certain sub limits. The Repurchase Agreement expires on August 1, 2012.

Advances under the Repurchase Agreement carry a Pricing Rate based on the Libor Rate plus the Libor Margin, or the Default Pricing Rate, as determined under the Repurchase Agreement, provided that the Pricing Rate shall not be less than 3.75%. There are several restrictions on purchased loans, including that they cannot be sold to others, they cannot be pledged to anyone other than the agent, and they cannot support any other borrowing or repurchase agreement. At December 31, 2011 there was no debt outstanding under the Repurchase Agreement. There were no borrowing base limitations at December 31, 2011. The average Pricing Rate for amounts outstanding under the previous repurchase agreement at December 31, 2010 was 4.1%.

The Repurchase Agreement contains various affirmative and negative covenants. The negative covenants include among others, certain limitations on transactions involving acquisitions, mergers, the incurrence of debt, sale of assets and creation of liens upon any of its Mortgage Notes. Additional covenants include (i) a tangible net worth requirement, (ii) a minimum liquidity requirement, (iii) a minimum net income requirement, and (iv) a maximum leverage ratio requirement. The Company was in compliance with all covenants under the Repurchase Agreement at December 31, 2011.

* * * * *

Maturities with respect to the Company’s debt as of December 31, 2011 are as follows:

Year ending December 31,
2012	$	421
2013		520
2014		672
2015		—
2016		—
Thereafter		—
Total	$	1,613