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<SEC-DOCUMENT>0000950123-10-085979.txt : 20110114
<SEC-HEADER>0000950123-10-085979.hdr.sgml : 20110114
<ACCEPTANCE-DATETIME>20100914140037
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950123-10-085979
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20100914

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			AVATAR HOLDINGS INC
		CENTRAL INDEX KEY:			0000039677
		STANDARD INDUSTRIAL CLASSIFICATION:	OPERATIVE BUILDERS [1531]
		IRS NUMBER:				231739078
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		201 ALHAMBRA CIRCLE
		CITY:			CORAL GABLES
		STATE:			FL
		ZIP:			33134
		BUSINESS PHONE:		3054427000

	MAIL ADDRESS:	
		STREET 1:		201 ALHAMBRA CIRCLE
		CITY:			CORAL GABLES
		STATE:			FL
		ZIP:			33134

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GAC CORP /DE/
		DATE OF NAME CHANGE:	19801023

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GENERAL ACCEPTANCE CORP
		DATE OF NAME CHANGE:	19710208
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Avatar Holdings Inc.<BR>
201 Alhambra Circle<BR>
Coral Gables, Florida 33134</B><BR><BR><BR>
September&nbsp;14, 2010
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>BY EDGAR correspondence</U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Pam Long<BR>
Assistant Director<BR>
Division of Corporation Finance<BR>
U.S. Securities and Exchange Commission<BR>
Mail Stop 7010<BR>
100 F Street, N.E.<BR>
Washington, D.C. 20549

</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">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re:</TD>
    <TD>&nbsp;</TD>
    <TD>Avatar Holdings Inc.<BR>
Response to Staff Comments on:<BR>
Form&nbsp;10-K for the fiscal year ended December&nbsp;31, 2009<BR>
Filed March&nbsp;16, 2010<BR>
Definitive Proxy Statement on Schedule&nbsp;14A<BR>
Filed April&nbsp;29, 2010<BR>
File No.&nbsp;1-7395</TD>
</TR>
</TABLE>
</DIV>

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


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On behalf of Avatar Holdings Inc. (&#147;Avatar&#148; or &#147;Company&#148;), this letter responds to your letter
dated August&nbsp;31, 2010, relating to comments of the staff of the U.S. Securities and Exchange
Commission (the &#147;Commission&#148;) on the above-referenced filing of Avatar. The responses to the
Staff&#146;s comments are numbered to relate to the corresponding comments in your letter.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Form&nbsp;10-K for the fiscal year ended December&nbsp;31, 2009</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><I>Management&#146;s Report on Internal Control over Financial Reporting, page 55</I></U>
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>1.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>We note your description of the definition of internal control over financial
reporting. The description appears to be based on the definition of internal control
over financial reporting set forth in Rules&nbsp;13a-</B><B>15(f)</B><B> and 15d-</B><B>15(f)</B><B> under the Exchange
Act. As described, however, the description does not fully conform to the definition
set forth in those rules. Please confirm, if true, that your management&#146;s conclusion
regarding effectiveness is based on the full definition of internal control over
financial reporting set forth in the applicable rules and revise your disclosure
accordingly in future filings. Alternatively, you may simply state, if true, that your
management concluded on the applicable dates that your internal control over financial
reporting was effective.</B></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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


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



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Pam Long<BR>
September&nbsp;14, 2010<BR>
Page 2

</DIV>

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

</DIV>

<DIV align="left" style="margin-left: 2%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt"><B><I>Response:</I></B></DIV>


<DIV align="left" style="margin-left: 2%; text-indent: 0%; margin-right: 0%; font-size: 10pt; margin-top: 6pt">In response to the Staff&#146;s comment, we confirm that our management&#146;s conclusion
regarding effectiveness is based on the full definition of internal control over financial
reporting set forth in Rules&nbsp;13a15(f) and 15d-15(f) under the Exchange Act. Future filings
will be revised to reflect this disclosure.</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>Item&nbsp;9A. Controls and Procedures, page 93</I></U>
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>2.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>We note your disclosure that &#147;except for the described systems implementation,
there were no changes in &#091;y&#093;our international control over financial reporting...that
have affected, or are reasonably likely to affect, materially, &#091;y&#093;our internal control
over financial reporting.&#148; In future filings, please affirmatively state, if true, that
there were changes in your internal control over financial reporting that occurred
during the periods that have materially affected, or are reasonably likely to materially
affect, your internal control over financial reporting.</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B><I>Response:</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">In response to the Staff&#146;s comment, future filings will affirmatively state, if true, that
there were changes in our internal control over financial reporting that occurred during the
periods that have materially affected, or are reasonably likely to materially affect, our
internal control over financial reporting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>Definitive Proxy Statement on Schedule&nbsp;14A</I></U>
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>3.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>We note that you have not included any disclosure in response to </B><B>Item 402(s)</B><B> of
Regulation&nbsp;S-K. Please advise us of the basis for your conclusion that disclosure is
not necessary and describe the process you undertook to reach that conclusion.</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B><I>Response:</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">In response to the Staff&#146;s comment, we concluded the risks associated with our compensation
practices and policies are not likely to have a material adverse effect on the Company due to
several factors, including:
</DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Pam Long<BR>
September&nbsp;14, 2010<BR>
Page 3

</DIV>

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

</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">For Named Executive Officers (NEOs) and other senior executives, our compensation practices
have generally consisted of: (1)&nbsp;cash compensation, (2)&nbsp;stock-based compensation, and (3)
earnings participation awards. Our cash compensation consists substantially of base salary
and contractual annual bonuses. Bonuses are discretionary based on the evaluation of the
independent directors and are not tied to the operating results or the performance of the
Company&#146;s stock price. Stock-based compensation, consisting of performance-conditioned stock
awards and/or options, is generally subject to vesting periods or the realization of
long-term stock price appreciation and continuing service periods; and, consequently, do not
provide incentive for realization of short-term profits and/or stock price appreciation. The
limited grants of earnings participation awards are long-term, are based on cumulative
earnings and contain clawback provisions. Compensation for NEOs is determined solely at the
discretion of the Compensation Committee, all members of which are independent directors.
Compensation for other senior executives is recommended by executive management but is
determined solely at the discretion of the Compensation Committee.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">For most employees other than NEOs and senior executives, compensation consists primarily of
cash compensation which includes base salary and a possible discretionary cash bonus.
Additionally, compensation for various management employees other than NEOs and senior
executives has included an annual stock-based award based solely on continuing service,
generally for a term of three years following grant. Such discretionary bonuses and/or
stock-based awards are recommended by management but are determined solely at the discretion
of the Compensation Committee.
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>4.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please provide the information required by item </B><B>407(h)</B><B> of
Regulation&nbsp;S-K. Please supplementally show us what this disclosure will look like.</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B><I>Response:</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">In response to the Staff&#146;s comment, Avatar maintains the long-standing practice of separation
of the position of Chairman of the Board from that of Chief Executive Officer. For more than
two decades, the position of Chairman of the Board has been, and continues to be, held by an
independent director who is or represents a holder of more than 10% of the Company&#146;s
outstanding Common Stock. The individual who serves as Chief Executive Officer, by
long-standing practice, also serves as a member of the Board. The Chairman of the Board
presides over meetings of the Board and stockholders; and, from time to time, exercises an
active role in general corporate matters. The Chief Executive Officer, subject to the
overall direction of the Board, supervises the direction and control of the Company&#146;s
business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">The preceding paragraph is a draft of our future disclosure; please note, however, that our
actual disclosures in future filings may differ substantially from the preceding paragraph as
they will depend on the facts and circumstances present at that time.
</DIV>

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

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Pam Long<BR>
September&nbsp;14, 2010<BR>
Page 4

</DIV>

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

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>Executive Compensation, page 13</I></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><I>Compensation Discussion and Analysis, page 13</I></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U><I>Performance-based Cash and Equity Awards, page 15</I></U>
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>5.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>We note your cross-reference to the section entitled &#147;Employment and Other
Agreements&#148; for a description of your named executive officers&#146; annual incentive
compensation, among other things. In future filings, please ensure that the information
in your compensation discussion and analysis section contains a discussion of all of the
material factors underlying compensation policies and decisions reflected in the data
presented in the tables.</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B><I>Response:</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">In response to the Staff&#146;s comment, the employment and other agreements described under
Compensation Discussion and Analysis on pages 13 and 15 which were approved and entered into
several years ago, i.e. 2005, did not require discussion and consideration during fiscal year
2009 and were, therefore, not discussed as to factors underlying compensation policies and
decisions reflected in the data presented in the tables. We did, however, wish to describe
ongoing compensation arrangements without duplicating the substantial descriptions appearing
on subsequent pages of the Proxy Statement and for that reason utilized cross-reference to
such sections. Compensation arrangements discussed during 2009 were discussed in the CD&#038;A;
and any compensation arrangements discussed during 2010 will be discussed in the CD&#038;A of the
Proxy Statement for the 2011 Annual Meeting.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>Equity Compensation Plan, page 20</I></U>
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>6.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>In future filings, please provide the information required by Instruction 6 to
Item&nbsp;</B><B>201(d)</B><B> of Regulation&nbsp;S-K with respect to all of the securities remaining available
for future issuance under your compensation plans. In this regard, it appears that
there are securities remaining available for future issuance beyond those accounted for
in your footnotes to the table.</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B><I>Response:</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">In response to the Staff&#146;s comment, the heading for column (a)&nbsp;references &#147;options, warrants
and rights&#148; and our footnote thereto was intended to reflect that the number shown therein
also includes stock units and restricted stock units. The total number shown, 166,175,
consists of all outstanding awards as of December&nbsp;31, 2009, including 110,000 options, 44,280
restricted stock units and 11,895 stock units. In future filings we will include the number
of outstanding options so that the footnote will reflect the total number shown in column
(a).
</DIV>

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

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

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

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Ms.&nbsp;Pam Long<BR>
September&nbsp;14, 2010<BR>
Page 5

</DIV>

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

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><I>Potential Payments Upon Termination or Change-in-Control, page 25</I></U>
</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="3%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>7.</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Please include a &#147;total&#148; column in each of your severance compensation tables.</B></TD>
</TR>

</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%"><B><I>Response:</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">In response to the Staff&#146;s comment, we trust you are referring to the tables shown on pages
34 and 35, and in future filings we will add a total column to such tables.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">Avatar hereby acknowledges that:
</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="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Avatar is responsible for the adequacy and accuracy of the disclosures in our
filings;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>staff comments or changes to disclosure in response to staff comments do not
foreclose the Commission from taking any action with respect to the filing; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="5%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Avatar may not assert staff comments as a defense in any proceeding initiated
by the Commission or any person under the federal securities laws of the United
States.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If you have any questions or would like additional information, please contact the undersigned
at (305)&nbsp;442-7000.
</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">Very truly yours,<BR>
<BR>
<BR>
AVATAR HOLDINGS 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/ Randy L. Kotler
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Randy L. Kotler&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Executive Vice President, Chief Financial Officer
and Treasurer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


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




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