Adjournment of Hearing on Adequacy of Disclsoure Statement

The Debtors have adjourned the hearing on the adequacy of the Disclosure Statement from may 24, 2007 to June 13, 2007 at 10:00 am. Objections to the adequacy of the Disclosure Statement are due ten days prior to the hearing, or June 4, 2007.

Summary of 5/21 hearings

On May 21, 2007, the Court held a hearing to address the following related items:

1. Motion to Compel Rejection of Executory Contract and Grant Lien in addition to Motion for Relief from the Automatic Stay regarding 46 Zachary Way, Mt. Arlington, NJ on behalf of Frank Digirolamo: This motion was resolved by consent order whereby the Debtors shall be permitted to assume the contract for sale if the Debtors confirm a plan on or before September 30, 2007 and the plan proposes to complete construction of Mt. Arlington I. In the event a plan is not confirmed by September 30, 2007, the contract will be deeemed terminated and relief from the automatic stay will be granted to permit Frank Digirolamo to pursue any rights against any potential bonding company.

2. Motion to Assume Contract for Sale between the Debtors and Frank Digirolamo and for Authority to Sell Same: Resolved by the consent order described above.

The next omnibus hearing date is scheduled for Monday, June 5, 2007 at 1:00 pm in Trenton, New Jersey.

Summary of 5/14 hearings

On May 14, 2007, the Court held an omnibus hearing addressing the following items:

1. Motion for Relief from the Automatic Stay regarding Modular Units on behalf of GE Capital Modular Space: This motion was adjourned until June 5, 2007.

2. Motion for Adequate Protection or Relief from the Automatic Stay on behalf of Wells Fargo Financial Leasing, Inc.: This motion was adjourned until May 21, 2007.

3. Motion for Relief from the Automatic Stay regarding 82 Bryce Lane, Manahawkin, NJ on behalf of Vicki Forcier: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

4. Motion for Relief from the Automatic Stay regarding 72 Bryce Lane, Manahawkin, NJ on behalf of Irene and Kenneth Sikorski: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

5. Motion to Compel Rejection of Executory Contract and Motion for Relief from the Automatic Stay regarding 57 Bryce Lane, Manahawkin, NJ on behalf of John and Kenneth Sikorski: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

6. Motion to Compel Rejection of Executory Contract and Motion for Relief from the Automatic Stay regarding 80 Bryce Lane, Manahawkin, NJ on behalf of Christopher and Donna Escher: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

7. Motion to Sell Kara at Navesink and Kara at Freehold: Consistent with previously entered sale orders, the Court granted the Debtors’ motion to sell the assets of Kara at Navesink and Kara at Freehold. The auction is scheduled for June 26, 2007 and the final hearing to confirm the sale is scheduled for July 9, 2007 at 1:00 pm.

The next hearing date is scheduled for Monday, May 21, 2007 at 1:00 pm in Trenton, New Jersey.

Summary of 4/30 and 5/7 Omnibus Hearings

April 30, 2007

The Court adjourned all hearings scheduled for April 30, 2007 until either May 7, 2007 or May 14, 2007.

May 7, 2007

On May 7, 2007, the Court held an omnibus hearing addressing the following items:

1. Bond Safeguard Insurance Co. and Lexon Insurance Co.’s Motion to Compel Debtor to Assume or Reject Executory Contracts and for Injunctive Relief: This motion was adjourned until July 9, 2007.

2. Motion to Reject Executory Contract on behalf of Angelo Pantazes: This motion was adjourned until May 21, 2007.

3. Motion for Order Terminating Contract and Providing a Lien on behalf of Constance Mueller: This motion was withdrawn.

4. Motion to Compel Assumption/Rejection and to Retrieve Personal Property on behalf of Contain It, LLC: This motion was Granted with a provision providing that Contain It, LLC is entitled to file a damage claim within 30 days of the hearing date.

5. Motion to Reject Executory Contract for Sale of Real Estate on behalf of Floyd Cummins: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

6. Motion to Compel Rejection of Executory Contract on behalf of Frank DiGirolamo: This motion was adjourned until May 21, 2007.

7. Motion to Terminate Contract for Sale of Real Estate on behalf of Lojewski: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

8. Motion to Reject Executory Contract on behalf of Arvind and Sarita Grover: This motion was adjourned until May 21, 2007.

9. Motion Compelling Debtor to Assume or Reject Executory Agreement known as “Agreement for Joint Venture (Old Bridge Township Middlesex County)” dated December 2, 2004 on behalf of Michael and Georgette Hegarty and Toby Gardens, LLC: The Court ordered that the Debtor must move to assume or reject the Joint Venture within 45 days of the date of the hearing.

10. Motion to Compel Rejection of Executory Contract on behalf of Gregg and Meredith Lamb: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

11. Motion to Compel Rejection of Executory Contract on behalf of Phil Dounelis: This motion was adjourned until May 21, 2007.

12. Motion to Compel Rejection of Executory Contract on behalf of John and Virginia Heldon: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

13. Motion to Compel Rejection of Executory Contract on behalf of Mark and Deborah File: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

14. Motion to Compel Rejection of Executory Contract on behalf of Bruce and Karen Simon: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

15. Motion to Compel Rejection of Executory Contract on behalf of Janet Benz: The Court permitted termination of the contract and granted relief from the automatic stay for the contract purchaser to pursue any claims against the bonding company.

16. Motion for Relief from Stay re: Escrowed Proceeds from the Sale of Four Homes on behalf of Amboy National Bank: The Debtors consented to this Motion and a consent order will be entered.

17. Motion for Authority to Obtain Credit Under Section 364(b) on behalf of Kara Homes for Final Order Authorizing Woods Landing to Incur Post-Petition Secured Indebtedness to ING Direct: The Court granted this motion authorizing the Debtors to incur up to $1,947,790 for construction financing for the property owned by Horizons at Woods Landing. As security for the contruction financing, ING Direct has been granted an additional first priority lien and security interests on the Horizons at Woods Landing property as well as a superpriority administrative claim.

The next hearing date is scheduled for Monday, May 14, 2007 at 1:00 pm in Trenton, New Jersey.