Michael is working on a plan to save his company. His idea is to make the company appear like it is in the black by starting construction in the Phase 2 development. They plan to have a big ribbon cutting ceremony for one house, and give the appearance that they're building all 30. Lindsay is more concerned with buying a $400 tub of cream flecked with diamonds. Tobias chastises her for that, and the competitiveness of their newly open marriage comes out.
Michael invites George Michael to the upcoming ribbon cutting ceremony, but not George Michael's girlfriend, Ann. Michael is excited about finally cutting a ribbon himself and wants to share that moment with his son. The problem is, Gob is acting company president, and he insists on cutting the ribbon. Gob has bigger news, though. He bought a company boat.
Lucille comes to Michael with her own problem. Buster is becoming anxious over his suspicions that Oscar and Lucille are having an affair. George Sr., meanwhile, calls from Mexico, where he's hiding out with his former secretary, Kitty. But Kitty's increasing baby talk is driving George Sr. away. He calls Gob to wire him money, but the call ends when the police take down George Sr., thinking he's Oscar.
Meanwhile, at a board meeting, Gob announces his plan to hold the ribbon cutting ceremony in two weeks, a timeline that Michael doesn't think is feasible. Now the company is committed to building a model home in only two weeks. Gob suggests building a fake house, with nothing on the inside.
Out on the beach, Lucille tries to end her relationship with Oscar, but can't resist his luxurious hair. Lindsay announces to Michael her date for the ribbon ceremony, a homeless guy that she met outside a bar. She finds her new friend to tell him the news, and we learn that it's actually Thomas Jane, the actor. He's starring in a new movie called Homeless Dad, and has been living on the street to research his role.
Michael and a small group began construction on the fake model home. When Gob announces his excitement over cutting the ribbon, Michael decides that since Gob is taking away something that he wants, Michael will take away something Gob wants: Starla, the business model that Gob hired. But when Gob tells Michael he nailed Starla, Michael snaps and says he's tired of Gob getting all the credit for the work Michael is doing, and Michael is cutting that ribbon tomorrow no matter what. But when Gob sadly points out that he just wants to impress people, Michael says he'll let him cut the ribbon.
The next day, Gob cuts the giant ceremonial ribbon, which was apparently holding the house together. All four walls collapse, and that's when Buster sees Oscar on top of his mother. Buster decides then that he will in fact join the Army so he can get away.
On the next Arrested Development...
Lindsay finds out the true identity of her homeless man, and even though Lindsay didn't know who that was, hearing that he wasn't homeless was good enough for her. He dumps her, so Lindsay, crushed and alone, for the first time misses her husband Tobias.