EXHIBIT 99.1

UNITED STATES BANKRUPTCY COURT

DISTRICT OF NEW JERSEY

In re: Tarragon Corporation	Case No. 09-10555 (DHS)
	Reporting Period: 4/1/10 through 4/30/10

MONTHLY OPERATING REPORT

File with Court and submit copy to United States Trustee within 20 days after end of month

Submit copy of report to any official committee appointed in the case.

In preparing this monthly operating report, the Company has relied upon unaudited financial information and other analyses prepared by its accounting department. The information and other data contained herein is deemed to be materially accurate, and is subject to certain timing and reclassification adjustments as more information becomes available.

I declare under penalty of perjury (28 U.S.C. Section 1746) that this report and the attached documents are true and correct to the best of my knowledge and belief.

/s/ Stephanie Buffington		Date: May 28, 2010
Signature of Authorized Individual

Stephanie Buffington		Director of Financial Reporting, Tarragon Corporation
Printed Name of Authorized Individual		Title of Authorized Individual

_______________

1Authorized individual must be an officer, director or shareholder if debtor is a corporation; a partner if debtor is a partnership; a manager or member if debtor is a limited liability company.

- 1 -

TARRAGON CORPORATION

CONSOLIDATING BALANCE SHEET

April 30, 2010

Unaudited – For Internal Use Only

	Tarragon Corporation			Tarragon Management Inc			Tarragon South Development Corporation			Tarragon Development Corporation			Tarragon Development Company LLC
ASSETS
REAL ESTATE INVENTORY	$	-		$	-		$	-		$	-		$	-

LAND		-
BUILDING IMPROVEMENTS		-
LESS: ACCUMULATED DEPRECIATION		-

NET RENTAL REAL ESTATE		-			-			-			-			-

CASH AND CASH EQUIVALENTS		1,415,442
RESTRICTED CASH		260,751
GOODWILL		-			-
ACCOUNTS RECEIVABLE BASE RENT		-
MISCELLANEOUS ACCOUNTS RECEIVABLE		2,368,720			19,508
DUE FROM AFFILIATE		473,277,294
PREPAID EXPENSES		1,198,902
DEPOSITS AND OTHER ASSETS		2,353,625			-
INVESTMENTS IN SUBSIDIARIES		(297,256,778	)					(80,428,399	)		(86,477,388	)		(41,634,514	)
DEFERRED TAX ASSET		1,275,812
DEFERRED FINANCING EXPENSES		3,520,884

TOTAL ASSETS	$	188,344,652		$	19,508		$	(80,428,399	)	$	(86,477,388	)	$	(41,634,514	)

LIABILITIES AND SHAREHOLDERS' DEFICIT
LIABILITIES:
MORTGAGE NOTES PAYABLE	$	177,367,050		$	-		$	-		$	-		$	-
ACCRUED INTEREST		11,150,259
ACCRUED PROPERTY TAXES		-
ACCOUNTS PAYABLE TRADE		2,287,724
DUE TO AFFILIATE		346,788,186
ACCOUNTS PAYABLE AND OTHER LIABILITIES		22,795,749			48,121
TENANT SECURITY DEPOSITS		-

TOTAL LIABILITIES		560,388,968			48,121			-			-			-

MINORITY INTEREST		-

SHAREHOLDERS' DEFICIT		(372,044,316	)		(28,614	)		(80,428,399	)		(86,477,388	)		(41,634,514	)

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$	188,344,652		$	19,508		$	(80,428,399	)	$	(86,477,388	)	$	(41,634,514	)

	$	(298,820,758	)	RE of consolidated subs
		1,563,980		Investment in Keane Stud
	$	(297,256,778	)

- 2 -

TARRAGON CORPORATION

CONSOLIDATING BALANCE SHEET

April 30, 2010

(Continued)

Unaudited – For Internal Use Only

	Block 88 Development, LLC			Charleston Tarragon Manager, LLC		MSCP, Inc.			Tarragon Stratford, Inc.			TDC Hanover Holdings, LLC
ASSETS
REAL ESTATE INVENTORY	$	-		$	-	$	-		$	-		$	-

LAND
BUILDING IMPROVEMENTS
LESS: ACCUMULATED DEPRECIATION

NET RENTAL REAL ESTATE		-			-		-			-			-

CASH AND CASH EQUIVALENTS
RESTRICTED CASH
GOODWILL
ACCOUNTS RECEIVABLE BASE RENT
MISCELLANEOUS ACCOUNTS RECEIVABLE
DUE FROM AFFILIATE
PREPAID EXPENSES
DEPOSITS AND OTHER ASSETS
INVESTMENTS IN SUBSIDIARIES		(553,664	)		14,746		(3,243	)		(321,087	)		(18,304,530	)
DEFERRED TAX ASSET
DEFERRED FINANCING EXPENSES

TOTAL ASSETS	$	(553,664	)	$	14,746	$	(3,243	)	$	(321,087	)	$	(18,304,530	)

LIABILITIES AND SHAREHOLDERS' DEFICIT
LIABILITIES:
MORTGAGE NOTES PAYABLE	$	-		$	-	$	-		$	-		$	-
ACCRUED INTEREST
ACCRUED PROPERTY TAXES
ACCOUNTS PAYABLE TRADE
DUE TO AFFILIATE
ACCOUNTS PAYABLE AND OTHER LIABILITIES
TENANT SECURITY DEPOSITS

TOTAL LIABILITIES		-			-		-			-			-

MINORITY INTEREST

SHAREHOLDERS' DEFICIT		(553,664	)		14,746		(3,243	)		(321,087	)		(18,304,530	)

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$	(553,664	)	$	14,746	$	(3,243	)	$	(321,087	)	$	(18,304,530	)

- 3 -

TARRAGON CORPORATION

CONSOLIDATING BALANCE SHEET

April 30, 2010

(Continued)

Unaudited – For Internal Use Only

	Omni Equities Corporation		Fenwick Plantation Tarragon, LLC		Orion Towers Tarragon LLP			Bermuda Island Tarragon LLC			The Park Development East, LLC
ASSETS
REAL ESTATE INVENTORY	$	-	$	-	$	5,521,309		$	-		$	3,209,352

LAND				-		-			-			-
BUILDING IMPROVEMENTS				-		-			-			-
LESS: ACCUMULATED DEPRECIATION				-		-			-			-

NET RENTAL REAL ESTATE		-		-		-			-			-

CASH AND CASH EQUIVALENTS				-		-			30,877			-
RESTRICTED CASH				-		-			37,380			-
GOODWILL				-		-			-			-
ACCOUNTS RECEIVABLE BASE RENT				-		-			-			-
MISCELLANEOUS ACCOUNTS RECEIVABLE				-		-			-			-
DUE FROM AFFILIATE				1,549,211		-			-			-
PREPAID EXPENSES				-		-			-			-
DEPOSITS AND OTHER ASSETS				-		-			-			-
INVESTMENTS IN SUBSIDIARIES		52,733		-		-			-			-
DEFERRED TAX ASSET				-		-			-			-
DEFERRED FINANCING EXPENSES				-		-			-			-

TOTAL ASSETS	$	52,733	$	1,549,211	$	5,521,309		$	68,257		$	3,209,352

LIABILITIES AND SHAREHOLDERS' DEFICIT
LIABILITIES:
MORTGAGE NOTES PAYABLE	$	-	$	-	$	7,690,400		$	12,907,535		$	3,600,000
ACCRUED INTEREST				-		1,061,551			596,072			499,675
ACCRUED PROPERTY TAXES				-		155,797			-			290,986
ACCOUNTS PAYABLE TRADE				4,610		45,674			158,531			-
DUE TO AFFILIATE				-		37,956,760			3,460,350			9,438,574
ACCOUNTS PAYABLE AND OTHER LIABILITIES				70,000		2,944,852			892,907			146,626
TENANT SECURITY DEPOSITS				-		-			-			-

TOTAL LIABILITIES		-		74,610		49,855,033			18,015,396			13,975,859

MINORITY INTEREST				-		-			-			-

SHAREHOLDERS' DEFICIT		52,733		1,474,600		(44,333,724	)		(17,947,138	)		(10,766,508	)

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$	52,733	$	1,549,211	$	5,521,309		$	68,257		$	3,209,352

- 4 -

TARRAGON CORPORATION

CONSOLIDATING BALANCE SHEET

April 30, 2010

(Continued)

Unaudited – For Internal Use Only

	The Park Development West, LLC			One Las Olas, Ltd.		900 Monroe Development, LLC			Central Square Tarragon LLC			Tarragon Edgewater Associates, LLC
ASSETS
REAL ESTATE INVENTORY	$	-		$	-	$	4,624,733		$	-		$	258,610

LAND		-			-		-			-			-
BUILDING IMPROVEMENTS		-			-		-			-			-
LESS: ACCUMULATED DEPRECIATION		-			-		-			-			-

NET RENTAL REAL ESTATE		-			-		-			-			-

CASH AND CASH EQUIVALENTS		-			-		-			-			-
RESTRICTED CASH		-			43,400		-			-			-
GOODWILL		-			-		-			-			-
ACCOUNTS RECEIVABLE BASE RENT		-			-		-			-			-
MISCELLANEOUS ACCOUNTS RECEIVABLE		-			-		-			-			-
DUE FROM AFFILIATE		-			5,177,760		-			-			8,844,445
PREPAID EXPENSES		-			100,000		-			-			-
DEPOSITS AND OTHER ASSETS		-			-		36			-			35
INVESTMENTS IN SUBSIDIARIES		-			-		-			-			-
DEFERRED TAX ASSET		-			-		-			-			-
DEFERRED FINANCING EXPENSES		-			-		-			-			-

TOTAL ASSETS	$	-		$	5,321,160	$	4,624,769		$	-		$	9,103,090

LIABILITIES AND SHAREHOLDERS' DEFICIT
LIABILITIES:
MORTGAGE NOTES PAYABLE	$	-		$	-	$	3,900,000		$	-		$	-
ACCRUED INTEREST		-			-		540,023			-			-
ACCRUED PROPERTY TAXES		-			-		67,893			-			188,690
ACCOUNTS PAYABLE TRADE		95,473			17,683		8,502			4,875			10,679
DUE TO AFFILIATE		41,160,448			-		6,350,676			17,335,220			-
ACCOUNTS PAYABLE AND OTHER LIABILITIES		362,566			30,139		353,844			-			571,332
TENANT SECURITY DEPOSITS		-			-		-			-			-

TOTAL LIABILITIES		41,618,487			47,822		11,220,938			17,340,095			770,702

MINORITY INTEREST		-			-		-			-			-

SHAREHOLDERS' DEFICIT		(41,618,487	)		5,273,338		(6,596,169	)		(17,340,095	)		8,332,388

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$	-		$	5,321,160	$	4,624,769		$	-		$	9,103,090

- 5 -

TARRAGON CORPORATION

CONSOLIDATING BALANCE SHEET

April 30, 2010

(Continued)

Unaudited – For Internal Use Only

	Orlando Central Park Tarragon, L.L.C.			800 Madison Street Urban Renewal, LLC			Murfreesboro Gateway Properties, LLC			Tarragon Stonecrest LLC			Vista Lakes Tarragon, LLC
ASSETS
REAL ESTATE INVENTORY	$	-		$	78,962,404		$	-		$	-		$	-

LAND		-			-			-			-			-
BUILDING IMPROVEMENTS		-			-			-			-			-
LESS: ACCUMULATED DEPRECIATION		-			-			-			-			-

NET RENTAL REAL ESTATE		-			-			-			-			-

CASH AND CASH EQUIVALENTS		-			133,548			-			-			-
RESTRICTED CASH		-			757,092			-			-			-
GOODWILL		-			-			-			-			-
ACCOUNTS RECEIVABLE BASE RENT		-			21,548			-			-			-
MISCELLANEOUS ACCOUNTS RECEIVABLE		-			-			-			-			-
DUE FROM AFFILIATE		-			-			-			-			27,177,671
PREPAID EXPENSES		-			24,790			-			-			-
DEPOSITS AND OTHER ASSETS		-			9,248			-			-			-
INVESTMENTS IN SUBSIDIARIES		-			-			-			-			-
DEFERRED TAX ASSET		-			-			-			-			-
DEFERRED FINANCING EXPENSES		-			50,000			-			-			-

TOTAL ASSETS	$	-		$	79,958,629		$	-		$	-		$	27,177,671

LIABILITIES AND SHAREHOLDERS' DEFICIT
LIABILITIES:
MORTGAGE NOTES PAYABLE	$	1,105,918		$	71,051,873		$	-		$	-		$	-
ACCRUED INTEREST		405,349			101,242			-			-			-
ACCRUED PROPERTY TAXES		-			566,900			-			-			-
ACCOUNTS PAYABLE TRADE		38,481			479,420			86,986			124,297			-
DUE TO AFFILIATE		2,604,138			7,042,074			7,793,324			5,045,152			-
ACCOUNTS PAYABLE AND OTHER LIABILITIES		403,220			1,065,188			95,203			161,297			-
TENANT SECURITY DEPOSITS		-			205,595			-			-			-

TOTAL LIABILITIES		4,557,106			80,512,293			7,975,512			5,330,745			-

MINORITY INTEREST		-			-			-			-			-

SHAREHOLDERS' DEFICIT		(4,557,106	)		(553,664	)		(7,975,512	)		(5,330,745	)		27,177,671

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$	-		$	79,958,629		$	-		$	-		$	27,177,671

- 6 -

TARRAGON CORPORATION

CONSOLIDATING BALANCE SHEET

April 30, 2010

(Continued)

Unaudited – For Internal Use Only

	Non Filing Entities Combined			Eliminations			Total
ASSETS
REAL ESTATE INVENTORY	$	26,186,065		$	6,077,031		$	124,839,503

LAND		69,288,589			-			69,288,589
BUILDING IMPROVEMENTS		426,556,803			-			426,556,803
LESS: ACCUMULATED DEPRECIATION		(130,201,751	)		-			(130,201,751	)

NET RENTAL REAL ESTATE		365,643,641			-			365,643,641

CASH AND CASH EQUIVALENTS		509,515			-			2,089,382
RESTRICTED CASH		11,316,569			-			12,415,193
GOODWILL		-			-			-
ACCOUNTS RECEIVABLE BASE RENT		225,644			-			247,192
MISCELLANEOUS ACCOUNTS RECEIVABLE		133,292			(19,508	)		2,502,012
DUE FROM AFFILIATE		101,989,414			(618,015,794	)		-
PREPAID EXPENSES		1,427,079			-			2,680,771
DEPOSITS AND OTHER ASSETS		601,631			-			2,964,575
INVESTMENTS IN SUBSIDIARIES		-			526,471,039			1,558,915
DEFERRED TAX ASSET		-			-			1,275,812
DEFERRED FINANCING EXPENSES		3,660,773			-			7,231,657

TOTAL ASSETS	$	511,693,623		$	(85,487,232	)	$	523,448,653

LIABILITIES AND SHAREHOLDERS' DEFICIT
LIABILITIES:
MORTGAGE NOTES PAYABLE	$	544,305,772		$	-		$	821,928,548
ACCRUED INTEREST		7,377,529			-			21,731,700
ACCRUED PROPERTY TAXES		2,118,079			-			3,388,344
ACCOUNTS PAYABLE TRADE		666,221			-			4,029,158
DUE TO AFFILIATE		75,211,456			(560,186,359	)		-
ACCOUNTS PAYABLE AND OTHER LIABILITIES		12,321,179			(54,245	)		42,207,979
TENANT SECURITY DEPOSITS		1,995,521			6,123			2,207,240

TOTAL LIABILITIES		643,995,757			(560,234,480	)		895,492,967

MINORITY INTEREST		-			12,948,459			12,948,459

SHAREHOLDERS' DEFICIT		(132,302,134	)		474,747,248			(372,044,315	)

TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT	$	511,693,623		$	(85,487,232	)	$	523,448,653

- 7 -

TARRAGON CORPORATION

CONSOLIDATING INCOME STATEMENT

For the Sixteen Months Ended April 30, 2010

Unaudited - For Internal Use Only

	Tarragon Corporation			Tarragon Management Inc			Tarragon South Development Corporation		Tarragon Development Corporation		Tarragon Development Company LLC
Revenue:
Sales	$	-		$	-		$	-	$	-	$	-
Rental and other		151,616			1,235,794

Total revenue		151,616			1,235,794			-		-		-

Expenses:
Cost of sales		-			-
Property operations		(535,586	)		-
Depreciation		-			34,544
Provision for losses		1,700,000			-
Impairment charges		-			-
General and administrative		30,885,513			2,791,735

Total expenses		32,049,927			2,826,279			-		-		-

Other income and (expenses):
Equity in loss of subsidiaries		(85,922,438	)		-
Minority interest income of partnerships and joint ventures		-			-
Interest income		295,662			-
Interest expense		(12,239,282	)		-
Gain (loss) on extinguishment of debt		-			-
Gain (loss) on debt restructuring		-			-
Gain (loss) on transfer of assets		43,500			-
Gain (loss) on disposition of assets		(4,497,534	)
Gain (loss) on sale of real estate		(1,874,917	)		-
Litigation, settlements, and other claims		3,754,122			-

Total other income and (expenses)		(100,440,886	)		-			-		-		-

Income tax expense		(56,402	)		-			-		-		-

Discontinued operations		-			-			-		-		-

Net income (loss)	$	(132,395,600	)	$	(1,590,485	)	$	-	$	-	$	-

- 8 -

TARRAGON CORPORATION

CONSOLIDATING INCOME STATEMENT

For the Sixteen Months Ended April 30, 2010

(Continued)

Unaudited - For Internal Use Only

Block 88

Development,

LLC

Charleston

Tarragon

Manager, LLC

MSCP, Inc.

Tarragon

Stratford, Inc.

TDC Hanover

Holdings, LLC

Revenue:

Sales

Rental and other

Total revenue

Expenses:

Cost of sales

Property operations

Depreciation

Provision for losses

Impairment charges

General and administrative

Total expenses

Other income and (expenses):

Equity in loss of subsidiaries

Minority interest income of partnerships and joint ventures

Interest income

Interest expense

Gain (loss) on extinguishment of debt

Gain (loss) on debt restructuring

Gain (loss) on transfer of assets

Gain (loss) on disposition of assets

Gain (loss) on sale of real estate

Litigation, settlements, and other claims

Total other income and (expenses)

Income tax expense

Discontinued operations

Net income (loss)

- 9 -

TARRAGON CORPORATION

CONSOLIDATING INCOME STATEMENT

For the Sixteen Months Ended April 30, 2010

(Continued)

Unaudited - For Internal Use Only

	Omni Equities Corporation		Fenwick Plantation Tarragon, LLC			Orion Towers Tarragon, LLP			Bermuda Island Tarragon LLC			The Park Development East, LLC
Revenue:
Sales	$	-	$	89,900		$	-		$	-		$	-
Rental and other				-			-			4,353,239			-

Total revenue		-		89,900			-			4,353,239			-

Expenses:
Cost of sales				84,166			-			-			-
Property operations				26,793			174,694			2,236,349			292,349
Depreciation				-			-			732,415			-
Provision for losses				-			-			-			-
Impairment charges				-			12,922,862			-			-
General and administrative				3,174			66,375			22,428			692,586

Total expenses		-		114,133			13,163,931			2,991,193			984,934

Other income and (expenses):
Equity in loss of subsidiaries				-			-			-			-
Minority interest income of partnerships and joint ventures				-			-			-			-
Interest income				-			-			-			-
Interest expense				-			(862,846	)		(1,724,741	)		(495,930	)
Gain (loss) on extinguishment of debt				-			-			-			-
Gain (loss) on debt restructuring				-			-			-			-
Gain (loss) on transfer of assets				-			-			-			-
Gain (loss) on disposition of assets				-			-			202,876			-
Gain (loss) on sale of real estate				-			-			-			-
Litigation, settlements, and other claims				-			-			-			-

Total other income and (expenses)		-		-			(862,846	)		(1,521,865	)		(495,930	)

Income tax expense		-		-			-			-			-

Discontinued operations		-		-			-			-			-

Net income (loss)	$	-	$	(24,233	)	$	(14,026,777	)	$	(159,819	)	$	(1,480,865	)

- 10 -

TARRAGON CORPORATION

CONSOLIDATING INCOME STATEMENT

For the Sixteen Months Ended April 30, 2010

(Continued)

Unaudited - For Internal Use Only

	The Park Development West, LLC		One Las Olas Ltd.			900 Monroe Development, LLC			Central Square Tarragon LLC			Tarragon Edgewater Associates, LLC
Revenue:
Sales	$	18,924,400	$	6,634,621		$	-		$	-		$	891,477
Rental and other		-		-			-			5,709			-

Total revenue		18,924,400		6,634,621			-			5,709			891,477

Expenses:
Cost of sales		17,951,028		8,048,718			-			-			1,014,461
Property operations		109,128		245,038			31,682			289,799			(111,767	)
Depreciation		-		-			-			-			-
Provision for losses		-		-			-			-			-
Impairment charges		-		-			6,366,255			-			-
General and administrative		93,742		284,985			8,753			87,275			31,205

Total expenses		18,153,897		8,578,741			6,406,690			377,074			933,898

Other income and (expenses):
Equity in loss of subsidiaries		-		-			-			-			-
Minority interest income of partnerships and joint ventures		-		-			-			-			-
Interest income		-		-			-			-			-
Interest expense		43,634		(304,225	)		(189,479	)		(2,521,828	)		-
Gain (loss) on extinguishment of debt		613,681		-			-			-			-
Gain (loss) on debt restructuring		-		2,279,871			-			(302,569	)		-
Gain (loss) on transfer of assets		-		-			-			-			-
Gain (loss) on disposition of assets		-		-			-			-			-
Gain (loss) on sale of real estate		-		-			-			-			-
Litigation, settlements, and other claims		-		-			-			-			-

Total other income and (expenses)		657,315		1,975,647			(189,479	)		(2,824,397	)		-

Income tax expense		-		-			-			-			-

Discontinued operations		-		-			-			-			-

Net income (loss)	$	1,427,818	$	31,526		$	(6,596,169	)	$	(3,195,763	)	$	(42,422	)

- 11 -

TARRAGON CORPORATION

CONSOLIDATING INCOME STATEMENT

For the Sixteen Months Ended April 30, 2010

(Continued)

Unaudited - For Internal Use Only

	Orlando Central Park Tarragon, L.L.C.			800 Madison Street Urban Renewal, LLC			Murfreesboro Gateway Properties, LLC			Tarragon Stonecrest LLC
Revenue:
Sales	$	-		$	-		$	-		$	-
Rental and other		106,227			5,208,794			1,457,334			88,437

Total revenue		106,227			5,208,794			1,457,334			88,437

Expenses:
Cost of sales		-			-			-			-
Property operations		323,005			2,659,660			533,524			48,600
Depreciation		72,479			-			311,286			1,007
Provision for losses		-			-			-			-
Impairment charges		-			-			-			-
General and administrative		11,050			220,383			12,354			76,134

Total expenses		406,535			2,880,043			857,164			125,741

Other income and (expenses):
Equity in loss of subsidiaries		-			-			-			-
Minority interest income of partnerships and joint ventures		-			-			-			-
Interest income		-			-			-			-
Interest expense		(283,886	)		(2,876,174	)		(764,347	)		(184,453	)
Gain (loss) on extinguishment of debt		-			-			(8,992	)		-
Gain (loss) on debt restructuring		-			-			-			-
Gain (loss) on transfer of assets		-			-			(3,734,857	)		1,035,083
Gain (loss) on disposition of assets		-			-			-			-
Gain (loss) on sale of real estate		(741,820	)		-			-			-
Litigation, settlements, and other claims		-			-			-			-

Total other income and (expenses)		(1,025,706	)		(2,876,174	)		(4,508,196	)		850,630

Income tax expense		-			-			-			-

Discontinued operations		-			-			-			-

Net income (loss)	$	(1,326,014	)	$	(547,424	)	$	(3,908,026	)	$	813,326

- 12 -

TARRAGON CORPORATION

CONSOLIDATING INCOME STATEMENT

For the Sixteen Months Ended April 30, 2010

(Continued)

Unaudited - For Internal Use Only

	Non-Filing Entities Combined			Eliminations			Disc Ops Reclass			Total
Revenue:
Sales	$	5,842,740		$	-		$	-		$	32,383,138
Rental and other		97,943,701			(1,168,201	)		(42,862	)		109,339,788

Total revenue		103,786,441			(1,168,201	)		(42,862	)		141,722,925

Expenses:
Cost of sales		4,200,786			-			-			31,299,159
Property operations		52,266,696			2			(45,458	)		58,544,508
Depreciation		17,530,035			(34,544	)		-			18,647,222
Provision for losses		-			-			-			1,700,000
Impairment charges		58,426,755			-			-			77,715,872
General and administrative		2,402,446			1,582,816			-			39,272,955

Total expenses		134,826,718			1,548,274			(45,458	)		222,179,716

Other income and (expenses):
Equity in loss of subsidiaries		-			78,805,865			-			(7,116,573	)
Minority interest income of partnerships and joint ventures		788,615			-			-			788,615
Interest income		117			-			-			295,780
Interest expense		(45,611,341	)		-			11,872			(68,003,026	)
Gain (loss) on extinguishment of debt		(136,454	)		-			123,888			592,123
Gain (loss) on debt restructuring		18,298,913			-			-			20,276,216
Gain (loss) on transfer of assets		930,430			-			-			(1,725,845	)
Gain (loss) on disposition of assets		-			-			-			(4,294,658	)
Gain (loss) on sale of real estate		1,462,886			-			(1,462,885	)		(2,616,737	)
Litigation, settlements, and other claims		10,000			-			-			3,764,122

Total other income and (expenses)		(24,256,835	)		78,805,865			(1,327,125	)		(58,039,983	)

Income tax expense		-			-			-			(56,402	)

Discontinued operations		-			-			1,324,529			1,324,529

Net income (loss)	$	(55,297,112	)	$	76,089,391		$	-		$	(142,228,647	)

- 13 -

TARRAGON CORPORATION

CASH FLOW FOR APRIL 2010

	Cash Balance							Payroll			Intercompany		Cash Balance
	3/31/10		Receipts		Disbursements			Disbursements			Transfers		4/30/10

Tarragon Corporation	$	2,211,721	$	495,247	$	(1,222,908	)	$	(854,298	)	$	785,680	$	1,415,442
Tarragon Management Inc.		-		-		(7,033	)		-			7,033		-

Filing entities:
Rentals:
Aldridge Apartments		-		-		-			-			-		-
Stonecrest Apartments		-		-		-			-			-		-
Orlando Central Park		-		-		-			-			-		-

TARRAGON CORP 8-K