In my view, Pardee has simply decided to reduce the prices of their homes by about $75K (in today’s dollars). They could have done it in many different ways: simply reducing the list prices by $75K, or offering incentives worth the same amount, or offering to pay for Mello-Roos taxes, etc. $75K is $75K any way I look at it.

Exactly Daniel. This is not that hard to figure out. Pardee needed to cut prices and decided paying the MR was the best way to do it.

On a certain level, Pardee did the earlier buyers a favor. With a straight price cut, these would become the new comps, undoubtedly putting some of Mr. Busch’s neighbors underwater. With the MR discount, it’s a lot less transparent to a prospective buyer.