<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2007-07-10</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000833795</issuerCik>
        <issuerName>HOMEFED CORP</issuerName>
        <issuerTradingSymbol>HOFD</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001251285</rptOwnerCik>
            <rptOwnerName>BORDEN PAUL J</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>1903 WRIGHT PLACE STE 220</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>CARLSBAD</rptOwnerCity>
            <rptOwnerState>CA</rptOwnerState>
            <rptOwnerZipCode>92008</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>President</officerTitle>
        </reportingOwnerRelationship>
    </reportingOwner>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Options (Right to Buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>62.75</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2007-07-10</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
                <footnoteId id="F1"/>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>1000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <value>2008-07-10</value>
                <footnoteId id="F2"/>
            </exerciseDate>
            <expirationDate>
                <value>2012-07-10</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>1000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>1000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">The options awards being reported on this Form 4 were granted pursuant to HomeFed Corporation's 1999 Stock Incentive Plan.</footnote>
        <footnote id="F2">The options vest at the rate of 25% per year, commencing on July 10, 2008.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Paul J. Borden</signatureName>
        <signatureDate>2007-07-10</signatureDate>
    </ownerSignature>
</ownershipDocument>
[{"type": "4", "sequence": "1", "filename": "bordenjuly10form4_ex.xml", "secsgml_size_bytes": 3899}]
X0202
4
2007-07-10
0
0000833795
HOMEFED CORP
HOFD
0001251285
BORDEN PAUL J
1903 WRIGHT PLACE STE 220
CARLSBAD
CA
92008
1
1
0
0
President
Stock Options (Right to Buy)
62.75
2007-07-10
4
A
0
1000
0
A
2008-07-10
2012-07-10
Common Stock
1000
1000
D
The options awards being reported on this Form 4 were granted pursuant to HomeFed Corporation's 1999 Stock Incentive Plan.
The options vest at the rate of 25% per year, commencing on July 10, 2008.
/s/ Paul J. Borden
2007-07-10