Hovnanian Enterprises and GoldenTree InSite Partners Announce Formation of Homebuilding Joint Venture

Hovnanian Enterprises and GoldenTree InSite Partners Announce Formation of
Homebuilding Joint Venture

RED BANK, N.J. and NEW YORK, Nov. 9 /PRNewswire-FirstCall/ -- Hovnanian
Enterprises, Inc. (NYSE: HOV) and GoldenTree InSite Partners announced today
that they have entered into a joint venture agreement to acquire a portfolio
of homebuilding projects. The venture intends to design, sell, and deliver
homes on the properties, which are located across 11 communities in the
greater Chicago market and Palm Beach County, Florida. Since this venture is
purchasing lots that were previously owned by an unconsolidated Hovnanian
joint venture, there will be no change in the reported number of lots owned by
unconsolidated joint ventures in Hovnanian's SEC filings.

Hovnanian invested 20% of the equity capital in the new venture, with
GoldenTree InSite providing the balance. Hovnanian will manage the day-to-day
operations of the venture. If certain financial targets are met, Hovnanian
will receive a promoted share of the cash returns from the venture. The
venture was capitalized 100% with equity, but if in the future financing
becomes available, the venture may obtain a modest amount of non-recourse debt
on the properties. Additional details related to the joint venture are not
being disclosed.

"We are extremely pleased to announce our partnership with GoldenTree InSite
Partners," commented Ara Hovnanian, Chairman of the Board of Directors,
President and Chief Executive Officer of Hovnanian Enterprises, Inc. "This
joint venture combines the financial power and residential investment
experience of GoldenTree InSite with the homebuilding and operating strength
of Hovnanian, creating an exciting investment opportunity for both
organizations. More importantly, the venture allows us to take advantage of
attractive land opportunities with limited capital investment, thereby
preserving our cash position, and, at the same time, afford the potential for
enhanced returns. We look forward to closing additional joint ventures with
GoldenTree InSite in the future."

Tom Shapiro, President of GoldenTree InSite Partners said, "We have avoided
making any US real estate investments for over two years given our view of the
markets and the lack of interesting opportunities. We looked to re-enter US
real estate investments in the residential for-sale category and it was
imperative to team up with a first-class partner. Hovnanian's integrity and
50-year track record of creating value through solid operations made it a
natural choice. The transaction provides us with a unique platform to take
advantage of an industry with tremendous long-term potential, and we look
forward to closing on additional transactions and generating solid returns
through our relationship with Hovnanian." Added Robert Vahradian, Managing
Director of GoldenTree InSite, "This investment is highly indicative of the
tremendous opportunities we see in the residential space, as many housing
markets have sold off by as much as 50% and are showing strong signs of
cyclically being at or very near the bottom."

About Hovnanian Enterprises, Inc.
Hovnanian Enterprises, Inc., founded in 1959 by Kevork S. Hovnanian, is
headquartered in Red Bank, New Jersey. The Company is one of the nation's
largest homebuilders with operations in Arizona, California, Delaware,
Florida, Georgia, Illinois, Kentucky, Maryland, Minnesota, New Jersey, New
York, North Carolina, Ohio, Pennsylvania, South Carolina, Texas, Virginia and
West Virginia. The Company's homes are marketed and sold under the trade
names K. Hovnanian Homes, Matzel & Mumford, Brighton Homes, Parkwood Builders,
Town & Country Homes, Oster Homes and CraftBuilt Homes. As the developer of
K. Hovnanian's Four Seasons communities, the Company is also one of the
nation's largest builders of active adult homes.

Additional information on Hovnanian Enterprises, Inc., including a summary
investment profile and the Company's 2008 annual report, can be accessed
through the "Investor Relations" section of the Hovnanian Enterprises' website
at http://www.khov.com. To be added to Hovnanian's investor e-mail or fax
lists, please send an e-mail to IR@khov.com or sign up at http://www.khov.com.

About GoldenTree InSite Partners
GoldenTree InSite Partners, an affiliate of GoldenTree Asset Management, is a
global real estate investment firm headquartered in New York with offices in
London and Sao Paulo. The firm was formed in February 2005 in partnership
with GoldenTree Asset Management. GoldenTree InSite has 36 employees and
manages over $1.1 billion of committed equity. The firm pursues value-added
real estate opportunities through direct equity investment and non-traditional
lending activities. To date, the firm has committed capital to residential,
retail, industrial, office, hotel, and mixed-use projects in the U.S. and
Brazil. The firm's principals have over 80 years of investment, management,
and operations experience, which spans all major property types and
geographies. By combining hands-on real estate expertise with a disciplined
investment approach, GoldenTree InSite creates value for its investors and
partners. For further information please visit our website at
www.goldentreeinsite.com.

About GoldenTree Asset Management
GoldenTree Asset Management, an investment advisor with offices in New York,
London, and Luxembourg, invests in bank debt, high yield bonds, distressed
debt, real estate and equities. GoldenTree manages over $11 billion as of
October 1, 2009, and the firm has approximately 170 employees. For further
information regarding GoldenTree, please visit their Web site at
http://www.goldentree.com.

Note: All statements in this Press Release that are not historical facts
should be considered as "forward-looking statements" within the meaning of the
"Safe Harbor" Provisions of the Private Securities Litigation Reform Act of
1995. Such statements involve known and unknown risks, uncertainties and
other factors that may cause actual results, performance or achievements of
Hovnanian Enterprises, Inc. (the "Company") to be materially different from
any future results, performance or achievements expressed or implied by the
forward-looking statements. Such risks, uncertainties and other factors
include, but are not limited to, (1) changes in general and local economic and
industry and business conditions, (2) adverse weather conditions and natural
disasters, (3) changes in market conditions and seasonality of the Company's
business, (4) changes in home prices and sales activity in the markets where
the Company builds homes, (5) government regulation, including regulations
concerning development of land, the home building, sales and customer
financing processes, and the environment, (6) fluctuations in interest rates
and the availability of mortgage financing, (7) shortages in, and price
fluctuations of, raw materials and labor, (8) the availability and cost of
suitable land and improved lots, (9) levels of competition, (10) availability
of financing to the Company, (11) utility shortages and outages or rate
fluctuations, (12) levels of indebtedness and restrictions on the Company's
operations and activities imposed by the agreements governing the Company's
outstanding indebtedness, (13) operations through joint ventures with third
parties, (14) product liability litigation and warranty claims, (15)
successful identification and integration of acquisitions, (16) significant
influence of the Company's controlling stockholders, (17) geopolitical risks,
terrorist acts and other acts of war and (18) other factors described in
detail in the Company's Form 10-K for the year ended October 31, 2008 and in
the Company's Form 10-Q for the quarter ended July 31, 2009.

SOURCE Hovnanian Enterprises, Inc.

J. Larry Sorsby, Executive Vice President and CFO, or Jeffrey T. O'Keefe,
Director of Investor Relations, both of Hovnanian Enterprises, Inc.,
+1-732-747-7800, or Robert Vahradian, Managing Director of GoldenTree InSite
Partners, +1-212-220-5210