content: <html>
  
  <head>
  
  
  
  
  
  </head>
  
  <body lang="EN-US">
  
  <div style="font-family:Times New Roman;">
  
  <div style="border:none;border-top:double windowtext 6.0pt;margin-left:.7pt;margin-right:0in;padding:0in 0in 0in 0in;">
  
  <p align="left" style="border:none;color:windowtext;margin:0in 0in .0001pt;padding:0in;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  
  </div>
  
  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt .7pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">UNITED STATES<br>
  SECURITIES AND EXCHANGE COMMISSION<br>
  </font>WASHINGTON, D.C. 20549</b></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt .7pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt .7pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">FORM&nbsp;8-K</font></b></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt .7pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt .7pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">CURRENT REPORT</font></b></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt .7pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="center">
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="3" face="Times New Roman" style="font-size:12.0pt;font-weight:bold;">Pursuant
    to Section&nbsp;13 or 15(d)&nbsp;of the Securities Exchange Act of 1934</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="100%" valign="top" style="padding:0in .7pt 0in .7pt;width:100.0%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date of report (Date of
    earliest event reported): <b>April&nbsp;22,
    2008</b></font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt .7pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt .7pt;text-align:center;"><b><font size="5" face="Times New Roman" style="font-size:18.0pt;font-weight:bold;">KIMBALL HILL, INC.</font></b></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt .7pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Exact name of
  registrant as specified in its charter)</font></p>
  
  <p align="left" style="color:windowtext;margin:0in 0in .0001pt .6pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div align="center">
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.92%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Illinois</font></b></p>
    </td>
    <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.92%;">
    <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.12%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">333-133278</font></b></p>
    </td>
    <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.92%;">
    <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
    </td>
    <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.12%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">36-2177380</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="33%" valign="top" style="padding:0in 0in 0in 0in;width:33.92%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(State
    or other jurisdiction of incorporation)</font></p>
    </td>
    <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.92%;">
    <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.12%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Commission
    File Number)</font></p>
    </td>
    <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.92%;">
    <p align="left" style="color:windowtext;margin:0in 0in .0001pt;text-align:left;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="31%" valign="top" style="padding:0in 0in 0in 0in;width:31.12%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(IRS
    Employer Identification No.)</font></p>
    </td>
   </tr>
  </table>
  
  </div>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><a name="cells"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5999 New Wilke Road, Suite&nbsp;504</font></b></a></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Rolling
  Meadows, Illinois 60008</font></b></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Address of principal executive offices, including zip code)</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(847) 364-7300</font></b></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Registrant&#146;s telephone number, including area code)</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Not Applicable</font></b></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(Former name or former address, if changed since last report)</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Check
  the appropriate box below if the Form&nbsp;8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any of the
  following provisions (see General Instruction A.2 below):</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>&#160;
  Written communications pursuant to Rule&nbsp;425 under the Securities
  Act (17 CFR 230.425)</p>
  
  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>&#160;
  Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act
  (17 CFR 240.14a-12)</p>
  
  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>&#160; Pre-commencement
  communications pursuant to Rule&nbsp;14d-2(b)&nbsp;under the Exchange Act (17
  CFR 240.14d-2(b))</p>
  
  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt;"><font size="2" face="Wingdings" style="font-size:10.0pt;">o</font>&#160; Pre-commencement
  communications pursuant to Rule&nbsp;13e-4(c)&nbsp;under the Exchange Act (17
  CFR 240.13e-4(c))</p>
  
  <div style="border:none;border-bottom:double windowtext 6.0pt;margin-left:.6pt;margin-right:0in;padding:0in 0in 0in 0in;">
  
  <p style="border:none;color:windowtext;margin:0in 0in .0001pt;padding:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  </div>
  
  <p style="color:windowtext;margin:0in 0in .0001pt .6pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <div style="color:windowtext;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='',FILE='C:\JMS\tbamidi\08-12424-1\task2900305\12424-1-ba.htm',USER='tbamidi',CD='Apr 28 20:17 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 1.01 Entry into a Material Definitive Agreement.</font></b></p>
  
  <p style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  information provided pursuant to Item 1.03 in this Current Report on Form&nbsp;8-K
  is incorporated into this Item 1.01 by reference.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 1.03 Bankruptcy or Receivership.</font></b></p>
  
  <p style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">On April&nbsp;23,
  2008, Kimball Hill,&nbsp;Inc. (the &#147;Company&#148;) and certain of its subsidiaries
  (collectively, the &#147;Debtors&#148;) filed voluntary petitions in the United States
  Bankruptcy Court for the Northern District of Illinois, Chicago Division (the &#147;Bankruptcy
  Court&#148;) seeking relief under the provisions of Chapter 11 of Title 11 of the
  United States Code (the &#147;Bankruptcy Code&#148;). The Chapter 11 cases are being
  jointly administered under the caption In re Kimball Hill,&nbsp;Inc., et al.,
  Case No.&nbsp;08-10095 (the &#147;Chapter 11 Cases&#148;). The Debtors will continue to
  build and sell homes and to operate their businesses and manage their
  properties as debtors in possession under the jurisdiction of the Bankruptcy
  Court and in accordance with the applicable provisions of the Bankruptcy Code
  and orders of the Bankruptcy Court.&#160; A
  copy of the company&#146;s press release announcing the Chapter 11 Cases is attached
  hereto as Exhibit&nbsp;99.1.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Prior
  to commencement of the Chapter 11 Cases, the Company received an unencumbered
  federal income tax refund of $51,851,594.&#160;
  The Company determined that, in addition to using available cash
  collateral, it will utilize the proceeds from such tax refund to finance the
  Debtors&#146; working capital needs during the pendency of the Chapter 11 Cases,
  subject to certain limitations set forth in a budget in form and substance
  acceptable to the Administrative Agent of the Debtors&#146; prepetition Senior
  Secured Credit Facility (as defined below).&#160;
  Accordingly, on April 25, 2008, the Debtors entered into an intercompany
  promissory note (the &#147;DIP Promissory Note&#148;) which, together with&#160; the Order entered by the Bankruptcy Court
  authorizing the Debtors&#146; postpetition financing (the &#147;Interim DIP Order&#148;), will
  enable the Debtors to (1) use their cash and the cash collateral of the
  Debtors&#146; Lenders under the Senior Secured Credit Facility and (2) access the
  tax refund proceeds up to the aggregate amount of $35,000,000 pending a second
  interim and then final hearing on the DIP Loan Promissory Note and related
  relief requested.&#160; At the final hearing
  for approval of the DIP Promissory Note, the Debtors will seek, among other
  things, Bankruptcy Court authority to use the remaining balance of the federal
  income tax refund. Loans evidenced by the DIP Promissory Note will be secured
  by liens and claims to the &#147;DIP Lender&#148; under the DIP Promissory Note,
  including a first priority lien on, and security interest in, substantially all
  of the Debtors&#146; real and personal property not otherwise subject to valid
  liens, plus a senior priming lien on and interest in the assets securing the
  obligations owed by the Debtors to the Lenders under the Senior Secured Credit
  Facility, subject to the terms of the Interim DIP Order.&#160; The Lenders under the Senior Secured Credit
  Facility were granted, as adequate protection for diminution in value in their
  collateral, certain super-priority administrative expense claims and liens
  subject to the terms of the Interim DIP Order.&#160;
  The foregoing description of the DIP Promissory Note is qualified by
  reference to such agreement, a copy of which is attached hereto as Exhibit
  10.1, and incorporated by reference herein.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 2.03&#160;
  Creation of a Direct Financial Obligation or an Obligation Under an
  Off-Balance Sheet Arrangement of a Registrant.</font></b></p>
  
  <p style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The information provided pursuant to Item 1.03 in this
  Current Report on Form&nbsp;8-K is incorporated into this Item 2.03 by
  reference.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 2.04 Triggering Events That Accelerate or
  Increase a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet
  Arrangement.</font></b></p>
  
  <p style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The
  filing of the Chapter 11 Cases described in Item 1.03 above constituted an
  event of default or otherwise triggered repayment obligations under a number of
  instruments and agreements relating to direct and indirect financial obligations
  of the Company (the &#147;Debt Documents&#148;). As a result of the events of default,
  some obligations under the Debt Documents became automatically and immediately
  due and payable. In addition, substantially all of the Company&#146;s other debt and
  guarantee obligations could be accelerated upon notice from the applicable
  lenders. The Debtors believe that any efforts to enforce the payment
  obligations under the Debt Documents are stayed as a result of the filing of
  the Chapter 11 Cases in the Bankruptcy Court. The Debt Documents under which
  obligations are immediately due and payable and the approximate amount of debt
  currently outstanding thereunder, are as follows:</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Indenture
  (the &#147;Indenture&#148;), dated December&nbsp;19, 2005, by and among the Company, the
  guarantors named therein, and U.S. Bank National Association, with respect to
  10<sup>1</sup>/2% Senior
  Subordinated Notes due 2012. Approximately $ 210,756,291 is currently
  outstanding under the Indenture, all of which is unsecured.</p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2</font></p>
  
  <div style="color:windowtext;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='2',FILE='C:\JMS\tbamidi\08-12424-1\task2900305\12424-1-ba.htm',USER='tbamidi',CD='Apr 28 20:17 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div style="font-family:Times New Roman;">
  
  <p style="color:windowtext;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Amended
  and Restated Credit Agreement (as amended, restated, supplemented or otherwise
  modified from time to time, &#147;Senior Secured Credit Facility&#148;), dated as of August&nbsp;10,
  2007, by and among the Company, the guarantors named therein, the lenders party
  thereto from time to time, Harris N.A., as Administrative Agent, Bank of
  America, N.A., as the Syndication Agent, KeyBank National Association and
  Wachovia Bank, National Association, as the Co-Documentation Agents, and BMO
  Capital Markets and Banc of America Securities, LLC, as the Co-Lead Arrangers
  and the Joint Book Runners.&#160;
  Approximately $ 305,669,854 is currently outstanding under the Senior
  Secured Credit Facility, which is secured by all properties in the Borrowing
  Base (as defined in the Senior Secured Credit Facility) for the Facility.</p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;font-size:10.0pt;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.</font><font size="1" style="font-size:3.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>The
  Company provided both a Payment and Performance Guaranty (&#147;TIF Loan&#148;) and a
  Payment and Performance Guaranty (&#147;Tax Exempt Loan&#148;) under the Loan Agreement
  between Park Boulevard, LLC and Bank of America, N.A. dated as of November 1,
  2005.&#160; Approximately $6,400,000 is
  outstanding under the TIF Loan and approximately $2,600,000 is outstanding
  under the Tax Exempt Loan, all of which is secured.</p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt .25in;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 5.02 Departure of Directors or Certain Officers;
  Election of Directors; Appointment of Certain Officers; Compensatory
  Arrangements of Certain Offices.</font></b></p>
  
  <p style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:24.5pt;"><font size="2" color="black" face="Times New Roman" style="color:windowtext;font-size:10.0pt;">On
  April&nbsp;22, 2008, the Company entered into an Amendment to the Employment
  Agreement with David K. Hill, the Company&#146;s Executive Chairman.&#160; Pursuant to the terms of the Amendment, Mr.&nbsp;Hill&#146;s
  annual base salary was reduced from $1,500,000 to $500,000.</font><font color="black" face="Times New Roman" style="color:windowtext;">&#160; </font><font color="black" face="Times New Roman" style="color:windowtext;">The foregoing description is
  qualified by reference to the Amendment, a copy of which is attached hereto as Exhibit&nbsp;10.2,
  and incorporated by reference herein.</font></p>
  
  <p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:24.5pt;"><font color="black" face="Times New Roman" style="color:windowtext;">&nbsp;</font></p>
  
  <p style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 7.01 Regulation FD Disclosure.</font></b></p>
  
  <p style="color:black;font-size:10.0pt;margin:0in 0in .0001pt;text-indent:24.5pt;"><font color="black" face="Times New Roman" style="color:windowtext;">&nbsp;</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-autospace:none;text-indent:24.5pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Court filings and claims information are available at
  www.kccllc.net/kimballhill. The Company expects to begin submitting monthly
  operating reports to the Court in May&nbsp;2008, and also plans to post these
  monthly reports on the Company&#146;s website at www.kimballhillhomes.com.&#160; The Company expects to continue to file
  reports with the United States Securities and Exchange Commission (the &#147;SEC&#148;),
  which will also be available on the SEC&#146;s website at www.sec.gov.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Item 9.01 Financial Statements and Exhibits.</font></b></p>
  
  <p style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:normal;">&nbsp;</font></b></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&nbsp;Exhibits.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="16%" valign="top" style="padding:0in 0in 0in 0in;width:16.66%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;10.1</font></p>
    </td>
    <td width="83%" valign="top" style="padding:0in 0in 0in 0in;width:83.34%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Promissory Note, dated as of April&nbsp;24, 2008,
    between the Company and the other Debtors named therein.</font></p>
    </td>
   </tr>
   <tr>
    <td width="16%" valign="top" style="padding:0in 0in 0in 0in;width:16.66%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="83%" valign="top" style="padding:0in 0in 0in 0in;width:83.34%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="16%" valign="top" style="padding:0in 0in 0in 0in;width:16.66%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;10.2</font></p>
    </td>
    <td width="83%" valign="top" style="padding:0in 0in 0in 0in;width:83.34%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amendment to Employment Agreement between Kimball
    Hill,&nbsp;Inc. and David K. Hill.</font></p>
    </td>
   </tr>
   <tr>
    <td width="16%" valign="top" style="padding:0in 0in 0in 0in;width:16.66%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="83%" valign="top" style="padding:0in 0in 0in 0in;width:83.34%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="16%" valign="top" style="padding:0in 0in 0in 0in;width:16.66%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;99.1</font></p>
    </td>
    <td width="83%" valign="top" style="padding:0in 0in 0in 0in;width:83.34%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press Release dated April&nbsp;23, 2008.</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3</font></p>
  
  <div style="color:windowtext;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='3',FILE='C:\JMS\tbamidi\08-12424-1\task2900305\12424-1-ba.htm',USER='tbamidi',CD='Apr 28 20:17 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">SIGNATURES</font></b></p>
  
  <p style="color:windowtext;font-weight:bold;margin:0in 0in .0001pt;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Pursuant to the requirements of the Securities Exchange Act of 1934,
  the registrant has duly caused this report to be signed on its behalf by the
  undersigned hereunto duly authorized.</font></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.76%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="12%" valign="top" style="padding:0in 0in 0in 0in;width:12.4%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="49%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:49.84%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">KIMBALL
    HILL, INC.</font></b></p>
    </td>
   </tr>
   <tr>
    <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.76%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="12%" valign="top" style="padding:0in 0in 0in 0in;width:12.4%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="49%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:49.84%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.76%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Date: April&nbsp;28,
    2008</font></p>
    </td>
    <td width="12%" valign="top" style="padding:0in 0in 0in 0in;width:12.4%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="49%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:49.84%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">/s/ Edward J. Madell</font></p>
    </td>
   </tr>
   <tr>
    <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.76%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="12%" valign="top" style="padding:0in 0in 0in 0in;width:12.4%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" valign="top" style="border:none;padding:0in 0in 0in 0in;width:4.26%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
    </td>
    <td width="45%" valign="top" style="border:none;border-top:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:45.58%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Edward J. Madell</font></p>
    </td>
   </tr>
   <tr>
    <td width="37%" valign="top" style="padding:0in 0in 0in 0in;width:37.76%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="12%" valign="top" style="padding:0in 0in 0in 0in;width:12.4%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
    </td>
    <td width="4%" valign="top" style="padding:0in 0in 0in 0in;width:4.26%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Its:</font></p>
    </td>
    <td width="45%" valign="top" style="padding:0in 0in 0in 0in;width:45.58%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Senior Vice President,
    Chief Financial Officer and<br>
    Treasurer</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4</font></p>
  
  <div style="color:windowtext;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='4',FILE='C:\JMS\tbamidi\08-12424-1\task2900305\12424-1-ba.htm',USER='tbamidi',CD='Apr 28 20:17 2008' -->
  
  
  <br clear="all" style="page-break-before:always;">
  
  
  <div>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibits</font></b></p>
  
  <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
   <tr>
    <td width="14%" valign="top" style="padding:0in 0in 0in 0in;width:14.42%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;10.1</font></p>
    </td>
    <td width="85%" valign="top" style="padding:0in 0in 0in 0in;width:85.58%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Promissory Note, dated as of April&nbsp;24, 2008,
    between the Company and the other Debtors named therein.</font></p>
    </td>
   </tr>
   <tr>
    <td width="14%" valign="top" style="padding:0in 0in 0in 0in;width:14.42%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="85%" valign="top" style="padding:0in 0in 0in 0in;width:85.58%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="14%" valign="top" style="padding:0in 0in 0in 0in;width:14.42%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;10.2</font></p>
    </td>
    <td width="85%" valign="top" style="padding:0in 0in 0in 0in;width:85.58%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Amendment to Employment Agreement between Kimball
    Hill,&nbsp;Inc. and David K. Hill.</font></p>
    </td>
   </tr>
   <tr>
    <td width="14%" valign="top" style="padding:0in 0in 0in 0in;width:14.42%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
    <td width="85%" valign="top" style="padding:0in 0in 0in 0in;width:85.58%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
    </td>
   </tr>
   <tr>
    <td width="14%" valign="top" style="padding:0in 0in 0in 0in;width:14.42%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Exhibit&nbsp;99.1</font></p>
    </td>
    <td width="85%" valign="top" style="padding:0in 0in 0in 0in;width:85.58%;">
    <p style="color:windowtext;margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Press Release dated April&nbsp;23, 2008.</font></p>
    </td>
   </tr>
  </table>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  
  <p align="center" style="color:windowtext;margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5</font></p>
  
  <div style="color:windowtext;margin:0in 0in .0001pt;"><hr size="3" width="100%" noshade color="#010101" align="left"></div>
  
  </div>
  <!-- SEQ.=1,FOLIO='5',FILE='C:\JMS\tbamidi\08-12424-1\task2900305\12424-1-ba.htm',USER='tbamidi',CD='Apr 28 20:17 2008' -->
  
  
  </body>
  
  </html>
metadata_documents: [{"type": "8-K", "sequence": "1", "filename": "a08-12424_18k.htm", "description": "8-K", "secsgml_size_bytes": 38551}]
metadata_filer: {"company-data": {"conformed-name": "Kimball Hill, Inc.", "cik": "0001357062", "assigned-sic": "1531", "irs-number": "362177380", "state-of-incorporation": "IL", "fiscal-year-end": "0930"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "333-133278", "film-number": "08782902"}, "business-address": {"street1": "5999 NEW WILKE ROAD", "street2": "SUITE 504", "city": "ROLLING MEADOWS", "state": "IL", "zip": "60008", "phone": "(847) 364-7300"}, "mail-address": {"street1": "5999 NEW WILKE ROAD", "street2": "SUITE 504", "city": "ROLLING MEADOWS", "state": "IL", "zip": "60008"}}
text: UNITED STATES
  SECURITIES AND EXCHANGE COMMISSION
  WASHINGTON, D.C. 20549
  FORM 8-K
  CURRENT REPORT
  Pursuant
    to Section 13 or 15(d) of the Securities Exchange Act of 1934
  Date of report (Date of
    earliest event reported):
  April 22,
    2008
  KIMBALL HILL, INC.
  (Exact name of
  registrant as specified in its charter)
  Illinois
  333-133278
  36-2177380
  (State
    or other jurisdiction of incorporation)
  (Commission
    File Number)
  (IRS
    Employer Identification No.)
  5999 New Wilke Road, Suite 504
  Rolling
  Meadows, Illinois 60008
  (Address of principal executive offices, including zip code)
  (847) 364-7300
  (Registrant's telephone number, including area code)
  Not Applicable
  (Former name or former address, if changed since last report)
  Check
  the appropriate box below if the Form 8-K filing is intended to
  simultaneously satisfy the filing obligation of the registrant under any of the
  following provisions (see General Instruction A.2 below):
  o
  Written communications pursuant to Rule 425 under the Securities
  Act (17 CFR 230.425)
  o
  Soliciting material pursuant to Rule 14a-12 under the Exchange Act
  (17 CFR 240.14a-12)
  o
  Pre-commencement
  communications pursuant to Rule 14d-2(b) under the Exchange Act (17
  CFR 240.14d-2(b))
  o
  Pre-commencement
  communications pursuant to Rule 13e-4(c) under the Exchange Act (17
  CFR 240.13e-4(c))
  Item 1.01 Entry into a Material Definitive Agreement.
  The
  information provided pursuant to Item 1.03 in this Current Report on Form 8-K
  is incorporated into this Item 1.01 by reference.
  Item 1.03 Bankruptcy or Receivership.
  On April 23,
  2008, Kimball Hill, Inc. (the "Company") and certain of its subsidiaries
  (collectively, the "Debtors") filed voluntary petitions in the United States
  Bankruptcy Court for the Northern District of Illinois, Chicago Division (the "Bankruptcy
  Court") seeking relief under the provisions of Chapter 11 of Title 11 of the
  United States Code (the "Bankruptcy Code"). The Chapter 11 cases are being
  jointly administered under the caption In re Kimball Hill, Inc., et al.,
  Case No. 08-10095 (the "Chapter 11 Cases"). The Debtors will continue to
  build and sell homes and to operate their businesses and manage their
  properties as debtors in possession under the jurisdiction of the Bankruptcy
  Court and in accordance with the applicable provisions of the Bankruptcy Code
  and orders of the Bankruptcy Court.  A
  copy of the company's press release announcing the Chapter 11 Cases is attached
  hereto as Exhibit 99.1.
  Prior
  to commencement of the Chapter 11 Cases, the Company received an unencumbered
  federal income tax refund of $51,851,594. 
  The Company determined that, in addition to using available cash
  collateral, it will utilize the proceeds from such tax refund to finance the
  Debtors' working capital needs during the pendency of the Chapter 11 Cases,
  subject to certain limitations set forth in a budget in form and substance
  acceptable to the Administrative Agent of the Debtors' prepetition Senior
  Secured Credit Facility (as defined below). 
  Accordingly, on April 25, 2008, the Debtors entered into an intercompany
  promissory note (the "DIP Promissory Note") which, together with  the Order entered by the Bankruptcy Court
  authorizing the Debtors' postpetition financing (the "Interim DIP Order"), will
  enable the Debtors to (1) use their cash and the cash collateral of the
  Debtors' Lenders under the Senior Secured Credit Facility and (2) access the
  tax refund proceeds up to the aggregate amount of $35,000,000 pending a second
  interim and then final hearing on the DIP Loan Promissory Note and related
  relief requested.  At the final hearing
  for approval of the DIP Promissory Note, the Debtors will seek, among other
  things, Bankruptcy Court authority to use the remaining balance of the federal
  income tax refund. Loans evidenced by the DIP Promissory Note will be secured
  by liens and claims to the "DIP Lender" under the DIP Promissory Note,
  including a first priority lien on, and security interest in, substantially all
  of the Debtors' real and personal property not otherwise subject to valid
  liens, plus a senior priming lien on and interest in the assets securing the
  obligations owed by the Debtors to the Lenders under the Senior Secured Credit
  Facility, subject to the terms of the Interim DIP Order.  The Lenders under the Senior Secured Credit
  Facility were granted, as adequate protection for diminution in value in their
  collateral, certain super-priority administrative expense claims and liens
  subject to the terms of the Interim DIP Order. 
  The foregoing description of the DIP Promissory Note is qualified by
  reference to such agreement, a copy of which is attached hereto as Exhibit
  10.1, and incorporated by reference herein.
  Item 2.03 
  Creation of a Direct Financial Obligation or an Obligation Under an
  Off-Balance Sheet Arrangement of a Registrant.
  The information provided pursuant to Item 1.03 in this
  Current Report on Form 8-K is incorporated into this Item 2.03 by
  reference.
  Item 2.04 Triggering Events That Accelerate or
  Increase a Direct Financial Obligation or an Obligation Under an Off-Balance Sheet
  Arrangement.
  The
  filing of the Chapter 11 Cases described in Item 1.03 above constituted an
  event of default or otherwise triggered repayment obligations under a number of
  instruments and agreements relating to direct and indirect financial obligations
  of the Company (the "Debt Documents"). As a result of the events of default,
  some obligations under the Debt Documents became automatically and immediately
  due and payable. In addition, substantially all of the Company's other debt and
  guarantee obligations could be accelerated upon notice from the applicable
  lenders. The Debtors believe that any efforts to enforce the payment
  obligations under the Debt Documents are stayed as a result of the filing of
  the Chapter 11 Cases in the Bankruptcy Court. The Debt Documents under which
  obligations are immediately due and payable and the approximate amount of debt
  currently outstanding thereunder, are as follows:
  1.
  Indenture
  (the "Indenture"), dated December 19, 2005, by and among the Company, the
  guarantors named therein, and U.S. Bank National Association, with respect to
  10
  1
  /2% Senior
  Subordinated Notes due 2012. Approximately $ 210,756,291 is currently
  outstanding under the Indenture, all of which is unsecured.
  2
  2.
  Amended
  and Restated Credit Agreement (as amended, restated, supplemented or otherwise
  modified from time to time, "Senior Secured Credit Facility"), dated as of August 10,
  2007, by and among the Company, the guarantors named therein, the lenders party
  thereto from time to time, Harris N.A., as Administrative Agent, Bank of
  America, N.A., as the Syndication Agent, KeyBank National Association and
  Wachovia Bank, National Association, as the Co-Documentation Agents, and BMO
  Capital Markets and Banc of America Securities, LLC, as the Co-Lead Arrangers
  and the Joint Book Runners. 
  Approximately $ 305,669,854 is currently outstanding under the Senior
  Secured Credit Facility, which is secured by all properties in the Borrowing
  Base (as defined in the Senior Secured Credit Facility) for the Facility.
  3.
  The
  Company provided both a Payment and Performance Guaranty ("TIF Loan") and a
  Payment and Performance Guaranty ("Tax Exempt Loan") under the Loan Agreement
  between Park Boulevard, LLC and Bank of America, N.A. dated as of November 1,
  2005.  Approximately $6,400,000 is
  outstanding under the TIF Loan and approximately $2,600,000 is outstanding
  under the Tax Exempt Loan, all of which is secured.
  Item 5.02 Departure of Directors or Certain Officers;
  Election of Directors; Appointment of Certain Officers; Compensatory
  Arrangements of Certain Offices.
  On
  April 22, 2008, the Company entered into an Amendment to the Employment
  Agreement with David K. Hill, the Company's Executive Chairman.  Pursuant to the terms of the Amendment, Mr. Hill's
  annual base salary was reduced from $1,500,000 to $500,000.
  The foregoing description is
  qualified by reference to the Amendment, a copy of which is attached hereto as Exhibit 10.2,
  and incorporated by reference herein.
  Item 7.01 Regulation FD Disclosure.
  Court filings and claims information are available at
  www.kccllc.net/kimballhill. The Company expects to begin submitting monthly
  operating reports to the Court in May 2008, and also plans to post these
  monthly reports on the Company's website at www.kimballhillhomes.com.  The Company expects to continue to file
  reports with the United States Securities and Exchange Commission (the "SEC"),
  which will also be available on the SEC's website at www.sec.gov.
  Item 9.01 Financial Statements and Exhibits.
  (d) Exhibits.
  Exhibit 10.1
  Promissory Note, dated as of April 24, 2008,
    between the Company and the other Debtors named therein.
  Exhibit 10.2
  Amendment to Employment Agreement between Kimball
    Hill, Inc. and David K. Hill.
  Exhibit 99.1
  Press Release dated April 23, 2008.
  3
  SIGNATURES
  Pursuant to the requirements of the Securities Exchange Act of 1934,
  the registrant has duly caused this report to be signed on its behalf by the
  undersigned hereunto duly authorized.
  KIMBALL
    HILL, INC.
  Date: April 28,
    2008
  /s/ Edward J. Madell
  By:
  Edward J. Madell
  Its:
  Senior Vice President,
    Chief Financial Officer and
  Treasurer
  4
  Exhibits
  Exhibit 10.1
  Promissory Note, dated as of April 24, 2008,
    between the Company and the other Debtors named therein.
  Exhibit 10.2
  Amendment to Employment Agreement between Kimball
    Hill, Inc. and David K. Hill.
  Exhibit 99.1
  Press Release dated April 23, 2008.
  5