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Note 19 | 3 Months Ended
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Jan. 31, 2012
Equity Method Investments Disclosure [Text Block] | 19. We enter into homebuilding and land development joint ventures from time to time as a means of accessing lot positions, expanding our market opportunities, establishing strategic alliances, managing our risk profile, leveraging our capital base and enhancing returns on capital. Our homebuilding joint ventures are generally entered into with third-party investors to develop land and construct homes that are sold directly to third-party homebuyers. Our land development joint ventures include those entered into with developers and other homebuilders as well as financial investors to develop finished lots for sale to the joint venture’s members or other third parties. During the three months ended January 31, 2011, we entered into a joint venture agreement to acquire a portfolio of homebuilding projects, including land we previously owned in the consolidated group. We sold the land we owned to the joint venture for net proceeds of $36.1 million, which was equal to our basis in the land at that time, and recorded an investment in unconsolidated joint ventures of $19.7 million for our interest in the venture. Separately, during the three months ended January 31, 2011, our partner in a land development joint venture transferred its interest in the venture to us. The consolidation resulted in increases in inventory and non-recourse land mortgages of $9.5 million and $18.5 million, respectively, and a decrease in other liabilities of $9.0 million. The tables set forth below summarize the combined financial information related to our unconsolidated homebuilding and land development joint ventures that are accounted for under the equity method.
(Dollars in thousands) |  | January 31, 2012 |
|  | Homebuilding |  |  | Land Development |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 18,106 |  |  | $ | 774 |  |  | $ | 18,880 |
Inventories |  |  | 303,255 |  |  |  | 14,816 |  |  |  | 318,071 |
Other assets |  |  | 23,544 |  |  |  | 705 |  |  |  | 24,249 |
Total assets |  | $ | 344,905 |  |  | $ | 16,295 |  |  | $ | 361,200 |
Liabilities and equity: |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable and accrued liabilities |  | $ | 24,646 |  |  | $ | 12,383 |  |  | $ | 37,029 |
Notes payable |  |  | 188,267 |  |  |  | 21 |  |  |  | 188,288 |
Total liabilities |  | $ | 212,913 |  |  | $ | 12,404 |  |  | $ | 225,317 |
Equity of: |  |  |  |  |  |  |  |  |  |  |  |
Hovnanian Enterprises, Inc. |  |  | 51,421 |  |  |  | 977 |  |  |  | 52,398 |
Others |  |  | 80,571 |  |  |  | 2,914 |  |  |  | 83,485 |
Total equity |  |  | 131,992 |  |  |  | 3,891 |  |  |  | 135,883 |
Total liabilities and equity |  | $ | 344,905 |  |  | $ | 16,295 |  |  | $ | 361,200 |
Debt to capitalization ratio |  |  | 59 | % |  |  | 1 | % |  |  | 58 | %
(Dollars in thousands) |  | October 31, 2011 |
|  | Homebuilding |  |  | Land Development |  |  | Total |
Assets: |  |  |  |  |  |  |  |  |
Cash and cash equivalents |  | $ | 21,380 |  |  | $ | 287 |  |  | $ | 21,667 |
Inventories |  |  | 310,743 |  |  |  | 14,786 |  |  |  | 325,529 |
Other assets |  |  | 25,388 |  |  |  | - |  |  |  | 25,388 |
Total assets |  | $ | 357,511 |  |  | $ | 15,073 |  |  | $ | 372,584 |
Liabilities and equity: |  |  |  |  |  |  |  |  |  |  |  |
Accounts payable and accrued liabilities |  | $ | 21,035 |  |  | $ | 11,710 |  |  | $ | 32,745 |
Notes payable |  |  | 199,821 |  |  |  | 21 |  |  |  | 199,842 |
Total liabilities |  |  | 220,856 |  |  |  | 11,731 |  |  |  | 232,587 |
Equity of: |  |  |  |  |  |  |  |  |  |  |  |
Hovnanian Enterprises, Inc. |  |  | 52,013 |  |  |  | 1,312 |  |  |  | 53,325 |
Others |  |  | 84,642 |  |  |  | 2,030 |  |  |  | 86,672 |
Total equity |  |  | 136,655 |  |  |  | 3,342 |  |  |  | 139,997 |
Total liabilities and equity |  | $ | 357,511 |  |  | $ | 15,073 |  |  | $ | 372,584 |
Debt to capitalization ratio |  |  | 59 | % |  |  | 1 | % |  |  | 59 | %
As of January 31, 2012 and October 31, 2011, we had advances outstanding of approximately $13.6 million and $11.7 million, respectively, to these unconsolidated joint ventures, which were included in the “Accounts payable and accrued liabilities” balances in the table above. On our Condensed Consolidated Balance Sheets our “Investments in and advances to unconsolidated joint ventures” amounted to $58.8 million and $57.8 million at January 31, 2012 and October 31, 2011, respectively. In some cases, our net investment in these joint ventures is less than our proportionate share of the equity reflected in the table above because of the differences between asset impairments recorded against our joint venture investments and any impairments recorded in the applicable joint venture. Impairments of our joint venture equity investments are recorded when we deem a decline in fair value to be other than temporary while impairments recorded in the joint ventures are recorded when undiscounted cash flows of the community indicate that the carrying amount is not recoverable. During fiscal 2011 and the first three months of fiscal 2012, we did not write down any joint venture investments based on our determination that none of the investments in our joint ventures sustained an other than temporary impairment during those periods.
|  | For the Three Months Ended January 31, 2012 |
(In thousands) |  | Homebuilding |  |  | Land Development |  |  | Total |
Revenues |  | $ | 52,596 |  |  | $ | 3,355 |  |  | $ | 55,951 |
Cost of sales and expenses |  |  | (52,770 | ) |  |  | (3,203 | ) |  |  | (55,973 | )
Joint venture net (loss) income |  | $ | (174 | ) |  | $ | 152 |  |  | $ | (22 | )
Our share of net (loss) income |  | $ | (51 | ) |  | $ | 116 |  |  | $ | 65 |
|  | For the Three Months Ended January 31, 2011 |
(In thousands) |  | Homebuilding |  |  | Land Development |  |  | Total |
Revenues |  | $ | 23,031 |  |  | $ | 4,894 |  |  | $ | 27,925 |
Cost of sales and expenses |  |  | (24,905 | ) |  |  | (4,739 | ) |  |  | (29,644 | )
Joint venture net (loss) income |  | $ | (1,874 | ) |  | $ | 155 |  |  | $ | (1,719 | )
Our share of net (loss) income |  | $ | (1,002 | ) |  | $ | 143 |  |  | $ | (859 | )
“(Loss) income from unconsolidated joint ventures” is reflected as a separate line in the accompanying Condensed Consolidated Statements of Operations and reflects our proportionate share of the loss or income of these unconsolidated homebuilding and land development joint ventures. The difference between our share of the loss or income from these unconsolidated joint ventures disclosed in the tables above compared to the Condensed Consolidated Statements of Operations for the three months ended January 31, 2012 and 2011, is due primarily to one joint venture that had net income for which we do not get any share of the profit because of the cumulative equity position of the joint venture, the reclassification of the intercompany portion of management fee income from certain joint ventures, and the deferral of income for lots purchased by us from certain joint ventures. In determining whether or not we must consolidate joint ventures where we are the manager of the joint venture, we assess whether the other partners have specific rights to overcome the presumption of control by us as the manager of the joint venture. In most cases, the presumption is overcome because the joint venture agreements require that both partners agree on establishing the operations and capital decisions of the partnership, including budgets in the ordinary course of business. Typically, our unconsolidated joint ventures obtain separate project specific mortgage financing. The amount of financing is generally targeted to be no more than 50% of the joint venture’s total assets. For our more recent joint ventures, obtaining financing has become challenging, therefore, some of our joint ventures are capitalized only with equity. However, for our most recent joint venture, a portion of our partner's contribution was in the form of mortgage financing. Including the impact of impairments recorded by the joint ventures, the average debt to capitalization ratio of all our joint ventures is currently 58%. Any joint venture financing is on a nonrecourse basis, with guarantees from us limited only to performance and completion of development, environmental warranties and indemnification, standard indemnification for fraud, misrepresentation and other similar actions, including a voluntary bankruptcy filing. In some instances, the joint venture entity is considered a VIE under ASC 810-10 "Consolidation – Overall" due to the returns being capped to the equity holders; however, in these instances, we are not the primary beneficiary, and therefore we do not consolidate these entities.

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- Definition The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6382943&loc=d3e33918-111571 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6903645&loc=d3e32787-111569 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 20 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.12) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -SubTopic 10 -Section 35 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6903645&loc=d3e32847-111569 + Details
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