Comstock Homebuilding Executes Loan Modification With Keybank to Provide Improved Operating Cashflow and Completes Its

RESTON, VA, Nov 02 (MARKET WIRE) --
Comstock Homebuilding Companies, Inc. (NASDAQ: CHCI) today announced that
it and certain of its subsidiaries (collectively "Comstock" or the
"Company") entered into a loan modification with Keybank National
Association ("Keybank"), completing its efforts to modify all of the
secured loans that the Company has guaranteed. The loan modification
amends an existing loan with a $22.8 million outstanding principal balance
secured by the Company's Eclipse condominium project and the Company's
planned Station View townhouse project (the "Loan") in a manner that will
immediately provide Comstock with improved operating cashflow from sales
at the two properties.

The key terms of the modification increase the cash flow available to
Comstock through reduced principal payments required by Keybank as
condominium units are settled at the Eclipse project and through the sale
of the Station View project land. The modification reduces the curtailment
requirement from 100% of net proceeds to 85% of the net sales price of
Eclipse condominium units, providing Comstock with cash equal to 15% of
the net sales price as each condominium unit is delivered. The loan
modification will be applied retroactively to all settlements occurring on
or after July 1, 2009, resulting in an immediate cash infusion to
Comstock.

The modification allows for continued receipt by Comstock of 15% of the
net sales price of Eclipse condominium units provided Comstock satisfies
certain conditions subsequent; including meeting a minimum sales
requirement of nine (9) units per quarter on a cumulative basis, and
satisfying certain other conditions with respect to certain outstanding
unsecured indebtedness of the Company (the "Modification Covenants"). It
shall not be deemed a default under the loan should Comstock fail to meet
the Modification Covenants but may result in a reversion to the unit
release provisions as previously set forth in the existing loan documents.

Recent sales at the Eclipse project have been sufficient to position the
Company to meet the Modification Covenants with respect to unit sales
through Q4 2009. The Company also has entered into a contingent contract
covering the sale of the Station View land and expects that, provided the
conditions of sale are met, the sale will be consummated in the first
quarter of 2010. The Company continues to work diligently on satisfying
the Modification Covenants related to the Company's unsecured
indebtedness.

The Modification also reduces the curtailment requirement applicable to
the Station View project; providing for the payment of certain outstanding
unsecured debts of the Company from the sale proceeds generated through
the sale of the Station View land and thereafter reducing the curtailment
requirement from 100% to 85% of the net sales price generated through the
pending sale of the Station View project land, subject to a minimum
release price to be paid to the Lender.

In exchange for the modified terms, Comstock agreed to adjust the interest
rate to the higher of LIBOR plus 5.0% or the prime rate plus 2.0% subject
to a LIBOR floor of 2.0%. The interest reserve provision of the loan was
maintained providing Comstock a means for payment of debt service on the
loan as modified without requiring operating cashflow to cover interest
expenses.

"The agreement reached with Keybank provides us with an immediate cash
infusion and gets us very close to completing our plan for stabilizing
Comstock," said Christopher Clemente, Comstock's Chairman and Chief
Executive Officer. "Sales at the Eclipse project have improved this year,
giving us reason to believe that the terms of this loan amendment will
facilitate ongoing enhanced cashflow from operations. This will help
tremendously in our effort to position Comstock to rebuild shareholder
value. We expect to report results for the third quarter on or before
November 16, 2009, at which time we believe we will meet the shareholder
equity listing requirement applicable to the Nasdaq Capital Markets. These
recent accomplishments and continuing signs that the market downturn is
easing in the Washington, D.C. metropolitan area gives us reason to once
again be optimistic about our future."

About Comstock Homebuilding Companies, Inc.

Established in 1985, Comstock Homebuilding Companies, Inc. is a publicly
traded, diversified real estate development firm with a focus on a variety
of for-sale residential products. The company currently actively markets
its products under the Comstock Homes brand in the Washington, D.C. and
Raleigh, N.C. metropolitan areas. Comstock Homebuilding Companies, Inc.
trades on NASDAQ under the symbol CHCI. For more information on the
Company or it projects please visit www.comstockhomebuilding.com.

Cautionary Statement Regarding Forward-Looking Statements

This release contains "forward-looking" statements that are made pursuant
to the Safe Harbor provisions of the Private Securities Litigation Reform
Act of 1995. Forward-looking statements involve known and unknown risks
and uncertainties that may cause actual future results to differ
materially from those projected or contemplated in the forward-looking
statements. Additional information concerning these and other important
risks and uncertainties can be found under the heading "Risk Factors" in
the Company's most recent Form 10-K, as filed with the Securities and
Exchange Commission on March 31, 2009. Comstock specifically disclaims any
obligation to update or revise any forward-looking statements, whether as
a result of new information, future developments or otherwise.

Contact:
Jeff Dauer
703.883.1700

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