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<SEC-DOCUMENT>0000950144-08-007624.txt : 20081229
<SEC-HEADER>0000950144-08-007624.hdr.sgml : 20081225
<ACCEPTANCE-DATETIME>20081015155053
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950144-08-007624
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20081015

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BEAZER HOMES USA INC
		CENTRAL INDEX KEY:			0000915840
		STANDARD INDUSTRIAL CLASSIFICATION:	OPERATIVE BUILDERS [1531]
		IRS NUMBER:				582086934
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		5775 PEACHTREE DUNW00DY RD
		STREET 2:		STE B 200
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30342
		BUSINESS PHONE:		4042503420

	MAIL ADDRESS:	
		STREET 1:		5775 PEACHTREE DUNWOODY RD
		STREET 2:		STE C-200
		CITY:			ATLANTA
		STATE:			GA
		ZIP:			30342
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>SEC CORRESPONDENCE / BEAZER HOMES USA, INC.</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;Beazer Letterhead&#093;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">October 15, 2008

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Mr.&nbsp;Rufus Decker<BR>
Accounting Branch Chief<BR>
United States Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
Mail Stop 7010<BR>
100 F Street, N.E.<BR>
Washington, D.C. 20549

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">FILED VIA EDGAR

</DIV>

<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>RE:</B></TD>
    <TD>&nbsp;</TD>
    <TD><B>Beazer Homes USA, Inc.<br>
Form&nbsp;10-K for Fiscal Year Ended September&nbsp;30, 2007<br>
Forms 10-Q for Fiscal Quarters Ended December&nbsp;31, 2007,<br>
March&nbsp;31, 2008 and June&nbsp;30, 2008<br>
File No.&nbsp;1-12822</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Dear Mr.&nbsp;Decker:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Beazer Homes USA, Inc. (the &#147;<U>Company</U>&#148;) has received your letter dated September&nbsp;22,
2008 (the &#147;<U>Comment Letter</U>&#148;) setting forth the comments of the staff (the &#147;<U>Staff</U>&#148;)
of the Securities and Exchange Commission (the &#147;<U>Commission</U>&#148;) relating to the Company&#146;s Form
10-K for the fiscal year ended September&nbsp;30, 2007 (the &#147;<U>Form&nbsp;10-K</U>&#148;) and the Company&#146;s Forms
10-Q for the fiscal quarters ended December&nbsp;31, 2007, March&nbsp;31, 2008 and June&nbsp;30, 2008 (the
&#147;<U>Forms 10-Q</U>&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company acknowledges that it is responsible for the adequacy and accuracy of the
disclosure in the Form 10-K, the <br>Forms&nbsp;10-Q and in its other filings under the Securities Exchange
Act of 1934, as amended. The Company acknowledges that comments of the Staff regarding the Form&nbsp;10-K or the Forms 10-Q or changes to disclosure in response to the Staff&#146;s comments do not
foreclose the Commission from taking any action with respect to such filings. The Company also
acknowledges that the Staff&#146;s comments may not be asserted by the Company as a defense in any
proceeding initiated by the Commission or any person under the federal securities laws of the
United States.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For your convenience, we have reproduced each comment from the Comment Letter (in bold)
immediately before the Company&#146;s response.
</DIV>


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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U><B>FORM 10-K FOR THE YEAR ENDED SEPTEMBER 30, 2007</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>General</B></U>
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>1.</B></TD>
    <TD>&nbsp;</TD>
    <TD><U><B>Comment</B></U></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Where a comment below requests additional disclosures or other revisions, please show us in
your response what the revisions will look like. These revisions should be included in your future
filings, including your interim filings where appropriate.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Response</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company will update and expand the disclosure in its Annual Report on Form 10-K for the
fiscal year ended September&nbsp;30, 2008 (the &#147;2008 <U>10-K</U>&#148;) in response to certain of the
Staff&#146;s comments. We advise you that these revisions will be included in our future filings,
including our interim filings where appropriate. To the extent possible we have included what our
revised disclosures will look like. As we are in the process of our year-end close, and as certain
of the revised disclosures will be based on information we gather during the closing and reporting
processes, we have provided the nature of the items and the factors that our revised disclosures
will consider.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations, page
32</B></U>
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>2.</B></TD>
    <TD>&nbsp;</TD>
    <TD><U><B>Comment</B></U></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We have read your response to comments two and three from our letter dated July&nbsp;29, 2008. We
continue to urge you to find ways to provide additional quantitative disclosures that convey to
investors the current and ongoing risks related to the recoverability of your homebuilding assets
as well as the risk that additional charges may need to be recorded. It does not appear that any
additional disclosures were provided to further convey the risk that additional charges may need to
be recorded. For example, if you have significant amounts of inventory for which you determine the
fair value is close to your book value, you should consider how you can constructively convey the
potential risk associated with these inventory amounts. We believe that it is important to provide
investors with information to help them evaluate the current assumptions underlying your impairment
assessment relative to your current market conditions and your peers to enable them to attempt to
assess the likelihood of potential future impairments. In this regard, we continue to believe that
you should provide additional insight on how you perform your impairment analysis under SFAS&nbsp;144
for each inventory category reflected on your consolidated balance sheets. We urge you to again
consider the following:</B>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Please disclose the number of communities tested for impairment during each period
presented and the total number of communities which exist at the end of each period
presented;</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Please disclose when your projections assume an improvement in market conditions; and</B></TD>
</TR>

</TABLE>
</DIV>
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<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Please discuss how sensitive the fair value estimates are to each of the significant
estimates and assumptions you list in your disclosure as well whether certain estimates and
assumptions are more subjective than others.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Response</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">We advise the staff that the Company understands the importance of providing quantitative
disclosures that convey to investors the current and ongoing risks related to the recoverability of
our homebuilding assets as well as the risk that additional charges may need to be recorded. In
addition, the Company understands the importance of providing investors with information to help
them evaluate the current assumptions underlying our impairment assessment relative to current
market conditions to enable them to attempt to assess the likelihood of potential future
impairments. In response to the Staff&#146;s comment, the Company will modify the applicable Notes to
the Consolidated Financial Statements and the Critical Accounting Policies section of Management&#146;s
Discussion and Analysis of Financial Condition and Results of Operations in its future filings
accordingly to provide enhanced disclosure regarding the risks related to the recoverability of our
homebuilding assets and the assumptions underlying our impairment assessment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company&#146;s Critical Accounting Policies describe the events and circumstances which trigger the
testing of assets for recoverability under SFAS 144 and the potential for recording of impairment
losses. In the Management Discussion and Analysis of Financial Condition and Results of Operations
section of our 2007 Form 10-K, we disclosed the estimated fair value of the impaired inventory at
period end, the number of lots impaired and the number of communities in which the impaired lots
exist. In addition, in the Business section of our 2007 Form 10-K, we disclosed the number of lots
owned and controlled by reportable segment to provide investors with additional information with
respect to our land holdings. Because our communities vary in location, size, expected time to
build-out, cost basis, land development requirements and competitive positioning, ratios of
&#147;impaired&#148; to &#147;not impaired&#148; community counts could be materially misleading. While overall market
factors affect our communities in a general sense, the specific characteristics which give rise to
impairments have tended to be highly specific to each individual community.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Our disclosures currently provide information relative to the risk of additional impairments,
specifically in the 1<SUP style="font-size: 85%; vertical-align: text-top">st</SUP>, 2<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> and 4<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> full paragraphs on page 10 of
our June&nbsp;30, 2008 Form 10-Q. The Company believes that specific quantification of the risks,
changes in assumptions or an estimation of potential future impairments cannot be made. The primary
reason for this is that the nature of the specific assets being analyzed for impairment requires
specific assumptions and estimates based on its location, product type, target buyer, competition
and macroeconomic characteristics that impact the fair value of our assets, such as levels of
unemployment and the availability of mortgage financing, among other things.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Company will provide additional disclosure relative to whether its projections assume changes
in market conditions. Our future disclosure will include language approximating the following: <I>The
assumptions used in our discounted cash flow models are specific to each community tested for
impairment and typically do not include market improvements except in limited circumstances in the
latter years of long-lived communities.</I>
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">With respect to disclosing the amounts of inventory that we have determined has a fair value that
is close to book value, we believe that such disclosure could not be provided without potential
misinterpretation by the users of the financial statements. The impairments recorded reflect
management&#146;s best estimates of the recoverability of the communities tested based on the future
cash flows of the communities. The assumptions and estimates made to produce the cash flow
estimates are by their nature subjective and community specific, however the key factors that
impact our assumptions are disclosed and will continue to be disclosed.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Finally, the Staff has requested that we consider providing sensitivity analyses of the
significant estimates and assumptions that impact the fair value estimates made by the Company. The
estimates and assumptions made in our discounted cash flow analyses are specific to each
community&#146;s location, product type, target customer and competition. As such, preparing a
consolidated sensitivity analysis would be impractical and any results of such consolidated
sensitivity analysis may be misleading to investors. As our business and market conditions change,
we will continue to assess our disclosures to ensure they provide information related to the
current and ongoing risks related to the recoverability of our homebuilding assets, the assumptions
underlying our impairment assessment and the risk that further impairment charges may need to be
recorded.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Financial Statements</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Note 14. Contingencies</B></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Litigation and Other Matters, page 88 </B></U>
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>3.</B></TD>
    <TD>&nbsp;</TD>
    <TD><U><B>Comment</B></U></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We have read your response to comment 8 from our letter dated July&nbsp;29, 2008. For each matter
described individually as well as the matters aggregated under other contingencies, please disclose
the amount of any additional estimated loss or range of loss that is reasonably possible. Refer to
paragraph 10 of SFAS 5.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Response</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For each matter described individually in the Litigation caption on page 88 of the Form 10-K
and the Litigation caption on page 26 of our June&nbsp;30, 2008 10-Q, the Company will, based on its
assessment of the current facts and circumstances of each such matter, make the disclosures
required by paragraph 10 of SFAS No.&nbsp;5. If no accrual is made for a loss contingency related to
these matters because one or both of the conditions in paragraph 8 of SFAS No.5 are not met, a
disclosure will be made when there is at least a reasonable possibility that a loss or an
additional loss may have been incurred. In addition to the nature of the contingency, which we
have already disclosed, we will give an estimate of the possible loss or range of loss or state
that such an estimate cannot be made. We supplementally advise the staff that, as of June&nbsp;30, 2008
and through the date of the filing of the June&nbsp;30, 2008 Form 10-Q, for each matter described
individually, as referred to in the first sentence above, no estimate of possible loss or range of
loss could be made at that time. For the matters aggregated under other contingencies we have ac
crued and disclosed our estimates of the probable and estimable losses for such matters in
accordance with paragraph&nbsp;8 of SFAS No.&nbsp;5.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Form&nbsp;10-Q for the Quarter Ended June&nbsp;30, 2008</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><B>Financial Condition and Liquidity, page 49</B></U>
</DIV>


<DIV align="left" style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="3%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>4.</B></TD>
    <TD>&nbsp;</TD>
    <TD><U><B>Comment</B></U></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>At June&nbsp;30, 2008, you had available borrowings of $90.7&nbsp;million under the Revolving Credit
Facility. At August&nbsp;7, 2008, it appears that you had no additional availability under your
Revolving Credit Facility. Please disclose how you plan to continue to fund your operations with
no current additional availability under your credit facility. You state that you expect to add
more real estates assets to the borrowing base in the next six months, which becomes available
after the required appraisals and other bank review procedures are completed. In this regard,
please disclose when you expect the additional borrowing base to be available for your needs,
including whether you expect it to be available within the next twelve months. Please also address
in your disclosure the current conditions in the homebuilding industry and the impact this could
have on the value of the real estate assets you expect to add to your borrowing base. Please also
consider disclosing the additional borrowing base amount you expect to be available.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>We continue to urge you to provide detailed disclosures about the significant changes in each
source of cash from period to period and the impact of these changes on your liquidity and capital
resources as well as how you determined that these sources will still be sufficient to meet your
current and long-term liquidity needs. You should also continue to discuss the impact of any of
these changes, if any, on your business, results of operations and financial condition. Please
also disclose if you expect any alternative sources of funding to be available in the future.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Response</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As disclosed in Financial Condition and Liquidity of our June&nbsp;30, 2008 Form 10-Q, the
available borrowings under our Revolving Credit Facility declined to zero from $90.7&nbsp;million prior
to our August&nbsp;7, 2008 amendment. In addition, we disclosed our intent to increase our availability
under the Revolving Credit Facility within the next six months through the collateralization of
many of our real estate assets to the Facility. We intend, until such time as the availability
under our Revolving Credit Facility increases, to fund our operations with the $314.2&nbsp;million in
cash on our balance sheet as of June&nbsp;30, 2008 plus the additional cash generated through (1)&nbsp;the
closing of several transactions related to property held for sale, such as the July&nbsp;2008 closing
of two condominium projects for approximately $85&nbsp;million and (2)&nbsp;cash flow from operations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company will expand its disclosure in future filings, beginning with the 2008 10-K,
related to our sources of liquidity, changes in such sources of liquidity from period to period,
and how we determined that such sources of liquidity will be sufficient to meet our current and
long-term liquidity needs. We will also continue to disclose, as applicable, the impact of
any changes in market conditions and available sources of funding on our business, results of
operations and financial condition.
</DIV>


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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our expanded disclosure will include: (1)&nbsp;how we plan to continue to fund our operations based
on our cash position and other sources of liquidity, including any availability under our credit
facility; (2)&nbsp;when we expect any additional borrowing base to be available for our needs, including
whether we expect any to be available within the next twelve months; (3)&nbsp;the current conditions in
the homebuilding industry and the impact this could have on the value of the real estate assets we
expect to add to our borrowing base; and (4)&nbsp;the targeted range of additional borrowing capacity
under our facility that we currently expect to become available.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</DIV>


<DIV align="center">
<DIV style="font-size: 3pt; margin-top: 16pt; width: 16%; border-top: 1px solid #000000">&nbsp;</DIV>
</DIV>




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe that we have fully responded to your comments. However, if you have any questions
about any of our responses to your comments or require further explanation, please do not hesitate
to call me at (770)&nbsp;829-3778.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Sincerely,<br><BR>
BEAZER HOMES USA, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Allan P. Merrill
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Allan P. Merrill&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Executive Vice President and<br>
Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt"><!-- Folio -->-6-<!-- /Folio -->
</DIV>



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