Sec Form 4 Filing - Habersetzer Jeffrey @ Harbor Custom Development, Inc. - 2023-06-13

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person Habersetzer Jeffrey 2. Issuer Name and Ticker or Trading Symbol Harbor Custom Development, Inc. [ HCDI] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director _____ 10% Owner X __ Officer (give title below) _____ Other (specify below) COO/Secretary (Last) (First) (Middle) 1201 PACIFIC AVENUE, SUITE 1200 3. Date of Earliest Transaction (MM/DD/YY) 06/13/2023 (Street) TACOMA,, WA98402 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) __ X __ Form filed by One Reporting Person _____ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock, no par value 1,747 D

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares Stock Options ( 1 ) ( 2 ) 06/13/2023 A 75,000 ( 1 )( 2 ) ( 1 )( 2 ) Common Stock, no par value 75,000 ( 1 ) ( 2 ) 81,451 D Restricted Stock Units ( 3 ) ( 4 ) ( 4 ) Common Stock, no par value 1,167 ( 5 ) 1,167 ( 5 ) D

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other Habersetzer Jeffrey 1201 PACIFIC AVENUE, SUITE 1200 TACOMA,, WA98402 COO/Secretary Signatures /s/ Jeffrey Habersetzer 06/15/2023 Signature of Reporting Person Date

Explanation of Responses:

( 1 )Mr. Habersetzer was granted 451 stock options with an exercise price of $7.99 on December 19, 2019. These stock options are fully vested and have an expiration date of December 19, 2029, subject to Mr. Habersetzer continuing to be an employee of the Company. Mr. Habersetzer was granted 1,000 stock options with an exercise price of $130.00 on September 1, 2020. These stock options are fully vested and have an expiration date of September 1, 2030, subject to Mr. Habersetzer continuing to be an employee of the Company. Mr. Habersetzer was granted 5,000 stock options with an exercise price of $65.00 on June 28, 2021. One twenty-fourth of the shares subject to this option vest each month and they have an expiration date of June 28, 2031, subject to Mr. Habersetzer continuing to be an employee of the Company. ( 2 )On June 13, 2023, Mr. Habersetzer was granted 75,000 stock options with an exercise price of $3.73. One half of the shares subject to this option shall vest upon the filing of the Company's next Form 10-K with the U.S. Securities and Exchange Commission, with the remainder to vest in equal proportions upon the first and second anniversary of said filing, subject to Mr. Habersetzer continuing to be an employee through such date. These stock options will have an expiration date of June 13, 2033. ( 3 )Each restricted stock unit represents the right to receive, at settlement, one share of common stock. This transaction represents the settlement of restricted stock units in shares of common stock on their scheduled vesting date. ( 4 )On May 26, 2022, Mr. Habersetzer was granted 1,750 shares of common stock pursuant to the 2020 Restricted Stock Plan, whereby 1/3 of the shares of common stock vest on each anniversary until May 26, 2025, contingent on Mr. Habersetzer's continued employment through each applicable vesting date. ( 5 )Represents the total number of unvested common stock granted to Mr. Habersetzer pursuant to the 2020 Restricted Stock Plan.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

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