<SEC-DOCUMENT>0001193125-13-324436.txt : 20130923
<SEC-HEADER>0001193125-13-324436.hdr.sgml : 20130923
<ACCEPTANCE-DATETIME>20130807165758
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0001193125-13-324436
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20130807

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			HOVNANIAN ENTERPRISES INC
		CENTRAL INDEX KEY:			0000357294
		STANDARD INDUSTRIAL CLASSIFICATION:	OPERATIVE BUILDERS [1531]
		IRS NUMBER:				221851059
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1031

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		110 WEST FRONT STREET
		STREET 2:		PO BOX 500
		CITY:			RED BANK
		STATE:			NJ
		ZIP:			07701
		BUSINESS PHONE:		7327477800

	MAIL ADDRESS:	
		STREET 1:		110 WEST FRONT STREET PO BOX 500
		STREET 2:		110 WEST FRONT STREET  PO BOX 500
		CITY:			RED BANK
		STATE:			NJ
		ZIP:			07701
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<TITLE>CORRESP</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT STYLE="font-family:Times New Roman" SIZE="2">August 7, 2013 </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2"><U>VIA EDGAR </U></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Ms. Pamela Long </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Assistant Director </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Division of Corporation Finance </FONT></P>
<P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Securities and Exchange Commission </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">100 F
Street, N.E. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Washington, D.C. 20549-7010 </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Re:</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Hovnanian Enterprises, Inc.</B> </FONT></TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Registration Statement on Form S-3 </B></FONT></TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>Filed July 3, 2013 </B></FONT></TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>&nbsp;&nbsp;&nbsp;&nbsp;</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><B>File No. 333-189802 </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2">Dear Ms. Long:
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">On behalf of Hovnanian Enterprises, Inc. (the &#147;Company&#148;), we are writing to respond to the comments set forth in
the comment letter of the staff of the Securities and Exchange Commission (the &#147;Staff&#148;) dated July 26, 2013 (the &#147;Comment Letter&#148;), relating to the above-referenced Registration Statement on Form S-3 filed on July 3, 2013 (as
amended, the &#147;Registration Statement&#148;). We have also revised the Registration Statement in response to the Staff&#146;s comments and are filing concurrently with this letter Amendment No. 1 to the Registration Statement (&#147;Amendment
No. 1&#148;), which reflects these revisions and updates a limited amount of other information. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Set forth below are our
responses to the Staff&#146;s comments as set forth in the Comment Letter. For your convenience, the numbered paragraphs of this letter correspond to the numbered paragraphs of the Comment Letter. Page references in the text of this letter
correspond to the pages of Amendment No. 1. To assist your review, we have retyped the text of the Staff&#146;s comments in italics below. The responses and information described below are based upon information provided to us by the Company.
</FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>General </U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>1.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>It appears that neither K. Hovnanian Enterprises, Inc. nor the subsidiary guarantors listed in the Table of Additional Registrants has filed the Form S-3 on EDGAR.
Please ensure that each registrant has properly filed the registration statement.</I> </FONT></TD></TR></TABLE>

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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Each of K. Hovnanian Enterprises, Inc. (&#147;K. Hovnanian&#148;) and the subsidiary
guarantors listed in the Table of Additional Registrants to Amendment No. 1 is filing Amendment No. 1 simultaneously herewith. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>2</I><I>.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I></I><I>We note that you are relying on Rule 3-10 of Regulation S-X to provide the financial statements relating to the subsidiary guarantors. Please disclose in the
Table of Additional Registrants, and elsewhere as appropriate, that all of the subsidiary guarantors are 100% owned by the parent entity and that the guarantees are full and unconditional and joint and several, to the extent accurate. Where you
disclose that the guarantees are full and unconditional, please also describe the circumstances when a guarantor may be released.</I> </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">The Company has revised the Table of Additional Registrants, the cover page and page 10 of the prospectus to clarify that K. Hovnanian and all of the Additional Registrants are directly or indirectly 100%
owned by the Company and that any guarantee issued pursuant to the Registration Statement will be full and unconditional and joint and several. The release provisions relating to K. Hovnanian&#146;s 6.25% Senior Notes due 2016 (the &#147;6.25%
Senior Notes&#148;) and K. Hovnanian&#146;s 8.625% Senior Notes due 2017 (the &#147;8.625% Senior Notes&#148;) are described on pages 23 and 63 &#150; 64, respectively, of Amendment No 1. The release provisions relating to guarantees by the
subsidiary guarantors, if any, of other securities registered under the Registration Statement have not yet been established and will be described in the applicable prospectus supplement relating thereto. The nature of the guarantees of the 6.25%
Senior Notes and the 8.625% Senior Notes are described on pages 22 and 63, respectively, of Amendment No. 1. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Prospectus Cover Page
</U></FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>3.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I></I><I>Please revise the cover page to reflect that you are also registering the guarantees of the debt securities and warrants since the guarantees constitute a
separate security. Please refer to Item 501(b)(2) of Regulation S-K</I>. </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company has revised the prospectus
cover page to include the guarantees of the debt securities and warrants. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Description of Debt Securities, page 6 </U></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>4.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>We note that Exhibits 4.23 &#150; 4.27 are Indentures governing specific Senior Secured First Lien Notes, Senior Secured Second Lien Notes, and Senior Notes that
have been issued, or will be issued, by K. Hovnanian. Please revise the &#147;Description of Debt Securities&#148; to clarify whether the debt securities being registered may be issued under such indentures. To the extent that such debt securities
are being registered, please include a description of such debt securities, as appropriate.</I> </FONT></TD></TR></TABLE>

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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company has revised its disclosure on pages 21 <I>&#150; </I>102 of the Registration
Statement to include descriptions of the 6.25% Senior Notes and the 8.625% Senior Notes which clarify that debt securities may be issued under the indentures and supplemental indenture filed under Exhibits 4.23 &#150; 4.25 to Amendment No. 1. The
Company has determined that K. Hovnanian will not issue securities under the indentures previously filed under Exhibits 4.23 and 4.24 of the original filing of the Registration Statement and has removed references to such securities and Exhibits.
</FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>5.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I></I><I>We note the disclosure on pages 13-14 and 16-17 regarding the release of the obligations of Hovnanian and K. Hovnanian with respect to the Hovnanian and K.
Hovnanian debt securities. We further note that Hovnanian and certain subsidiaries of Hovnanian will fully and unconditionally guarantee the debt securities. Please revise your disclosure to clearly state the circumstances under which both the
parent guarantor and subsidiary guarantors may be released from their obligations. Please also provide us with your analysis as to how the guarantees constitute &#147;full and unconditional&#148; guarantees as required to rely on Rule 3-10 of
Regulation S-X.</I> </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company has also clarified on pages 16-17 of the prospectus the circumstances under
which K. Hovnanian may be released from its obligations with respect to the K. Hovnanian debt securities, in which case K. Hovnanian will become a guarantor. We note that there are no provisions regarding the release of the obligations of the
Company with respect to the Company or K. Hovnanian debt securities covered by the Registration Statement. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company has
included descriptions of the release provisions for subsidiary guarantors of the 6.25% Senior Notes and the 8.625% Senior Notes in the newly added descriptions of such securities on pages 21 &#150; 102. We also note that there are no release
provisions for the parent guarantor of such 6.25% Senior Notes or 8.625% Senior Notes. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The Company believes that the release
provisions do not impair the &#147;full and unconditional&#148; nature of the guarantees of the 6.25% Senior Notes and the 8.625% Senior Notes. The indentures governing the 6.25% Senior Notes and the 8.625% Senior Notes provide that the guarantees
of the subsidiary guarantors will be released only: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;[i]f all or substantially all of the assets &#133; or all of the Capital Stock of any Guarantor . . . is sold (including by consolidation,
merger, issuance or otherwise) or disposed of (including by liquidation, dissolution or otherwise),&#148; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;if any Guarantor . . . is designated an Unrestricted Subsidiary in accordance with the terms of the Indenture,&#148; or,
</FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#147;[u]pon the release of the guarantee by a Guarantor . . . under all then outstanding Applicable Debt&#148; under certain circumstances.
</FONT></P></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Section 2510.5 of the Staff&#146;s Financial Reporting Manual provides that registrants may rely on Rule
3-10 of Regulation<BR> S-X notwithstanding the inclusion of customary release provisions including, among others: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">when &#147;the subsidiary is sold or sells all of its assets,&#148; </FONT></P></TD></TR></TABLE>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD WIDTH="13%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">when &#147;the subsidiary is declared &#145;unrestricted&#146; for covenant purposes&#148; and </FONT></P></TD></TR></TABLE>

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<TD WIDTH="3%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2">when &#147;the subsidiary&#146;s guarantee of other indebtedness is terminated or released,&#148; </FONT></P></TD></TR></TABLE>
<P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">all of which are consistent with the release provisions for the guarantees governing the 6.25% Senior Notes and the 8.625% Senior Notes.
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The release provisions relating to guarantees by subsidiary guarantors of other securities registered under the Registration
Statement have not yet been established, but will be described in the prospectus supplements relating thereto. The guarantees by such subsidiary guarantors will be full and unconditional and the release provisions of such guarantees will be
consistent with the requirements of Rule 3-10 of Regulation <FONT STYLE="white-space:nowrap">S-X.</FONT> </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT STYLE="font-family:Times New Roman" SIZE="2"><U>Exhibit 5.1 </U></FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>6.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I></I><I>We note the assumptions on pages 11-14 that the applicable Indentures, Securities Warrants, Subsidiary Warrant Guarantees and the Warrant Agreements have
been, or will be, duly authorized, executed and delivered by the Subsidiary Guarantors, as applicable, and that the execution, delivery and performance by the Subsidiary Guarantors do not and will not violate any applicable laws, with the exception
that these assumptions are not made with respect to the DGCL, the law of the State of New York, or the federal law of the United States. Please note that these assumptions are not appropriate with respect to the Subsidiary Guarantors. Because many
of the Subsidiary Guarantors are incorporated in jurisdictions outside of Delaware or the State of New York, the current carve out as drafted does not exclude the subsidiary guarantors from the assumptions you are making. Please revise the opinion
accordingly.</I> </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The assumptions in pages 11-15 of the opinion of Simpson Thacher &amp; Bartlett LLP have been
revised to be more consistently applicable to the delayed offerings of securities under Rule 415(a)(1)(x) of the Securities Act of 1933 that are contemplated in the Registration Statement. As contemplated by Section II.B.2.a of Staff Legal Bulletin
No. 19 (&#147;SLB&nbsp;19&#148;), the opinion &#147;include[s] assumptions regarding the future issuance of securities that would generally not be acceptable in connection with a non-shelf offering.&#148; The appropriateness of such assumptions is
&#147;subject to the understanding that an appropriately unqualified opinion will be filed no later than the closing date of the offering of securities covered by the registration statement.&#148; The Company acknowledges that it will need to file
such appropriately unqualified opinions in accordance with the requirements of Form S-3 and the rules applicable to delayed shelf offerings. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Some of the assumptions regarding the future issuance of securities relate to matters of law of jurisdictions that are not expected to be covered by the
</FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">
unqualified opinions Simpson Thacher &amp; Bartlett LLP expects to deliver in connection with offerings of securities pursuant to the Registration Statement. The Company understands the
Staff&#146;s position that &#147;an opinion that a debt security or guarantee is a binding obligation of the registrant necessarily encompasses the opinion that the registrant is validly existing, has the power to create the obligation, and has
taken the required steps to authorize entering into the obligation&#148; (See Section II.B.1.e of SLB 19). The Company acknowledges that in order for assumptions with respect to local jurisdictions to be acceptable in Simpson Thacher &amp;
Bartlett&#146;s opinions, the Company will need to file opinions that consider such matters under all relevant jurisdictions no later than the closing date of each offering of the securities covered by the Registration Statement. </FONT></P>
<P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>7.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I></I><I>We note the opinion in paragraph five on page 16 that the &#147;Guarantees&#148; will constitute valid and legally binding obligations of Hovnanian and the
Subsidiary Guarantors, as applicable. We note however that the opinion is limited to the law of the State of New York, the Federal Law of the United States and the DGCL. Please note that in issuing the binding obligation opinion with respect to the
Subsidiary Guarantors, the opinion must cover the law of the jurisdiction under which the registrant is organized. Please revise the opinion accordingly. Please note that counsel may engage local counsel to provide the opinion that the Subsidiary
Guarantors are validly existing, have the power to create the obligation and have taken the required steps to authorize entering into the obligation under the law of the jurisdiction of organization. See Section II.B.1.e. of Staff Legal Opinion 19
(Oct 14, 2011). Please also define the term &#147;Guarantees&#148; within the opinion so it is clear as to the &#147;Guarantees&#148; being opined upon.</I> </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">The Company expects that the contracts governing the Guarantees will be governed by New York law. As noted in Section&nbsp;II.B.1.e of SLB 19, &#147;counsel must opine on the law of the jurisdiction
governing the agreement or instrument pursuant to which the debt security or guarantee is issued to determine whether or not it is an enforceable contract, and therefore, a binding obligation.&#148; Accordingly, an opinion that addresses New York
law satisfies the obligation to provide the binding obligation opinion. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">As noted in response to comment 6 above, to the extent
that the Exhibit 5.1 Opinion includes assumptions relating to the jurisdiction in which any Subsidiary Guarantor is organized, the due authorization, execution and delivery of any Guarantee pursuant to laws other than those of the State of New York
or the DGCL, the Company will cause an appropriate opinion that addresses such matters to be filed no later than the closing date of the applicable offering. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:8%"><FONT STYLE="font-family:Times New Roman" SIZE="2">The term Guarantees is defined on page 3 of Exhibit 5.1 to include Guarantees by Hovnanian,
K. Hovnanian or Subsidiary Guarantors, as applicable, of debt securities and warrants, as applicable. </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I>8.</I></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2"><I></I><I>We note the assumption in paragraph five regarding the &#147;Debt Securities, Common Stock, Preferred Stock or Depositary Shares, as applicable, underlying
such Guarantees.&#148; Please advise what it means that these securities are &#147;underlying such Guarantees.&#148;</I> </FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:8%"><FONT
STYLE="font-family:Times New Roman" SIZE="2">Paragraph 5 of the opinion of Simpson Thacher &amp; Bartlett LLP has been revised to clarify that the guarantees relate only to obligations of debt securities and warrants. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">We are grateful for your assistance in this matter. Please do not hesitate to call me at (212) 455-2812 with any questions or further
comments you may have regarding the Registration Statement or if you wish to discuss our responses to the Comment Letter. </FONT></P>
<P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT STYLE="font-family:Times New Roman" SIZE="2">Very truly yours, </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT STYLE="font-family:Times New Roman" SIZE="2">/s/ Richard Fenyes, Esq.</FONT></P></TD></TR>
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<TD VALIGN="top"><FONT STYLE="font-family:Times New Roman" SIZE="2">Richard Fenyes, Esq.</FONT></TD></TR>
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