At Hovnanian Enterprises, Inc. ("Hovnanian"), we are committed to sustaining our shareholder's investment through conduct that is in accordance with the highest levels of integrity. we have operated with that standard for more than 40 years.

Our vision is to "Become the Best homebuilder and provider of related financial services in the nation in the eyes of our customers, our associates, our business partners and our shareholders." This can only be achieved through responsible and ethical dealings with the financial community and in the residential communities in which we build.

We believe in corporate governance and are committed to promoting corporate policies and practices that ensure the quality and integrity of the corporation's financial statements. We are committed to reporting financial results that fairly reflect the results of our operations and urge every associate to make decisions based on facts and thorough analysis.

Our commitment to corporate governance is reflected by some of the internal practices and conduct discussed below. For additional information on corporate governance, see Directors & Officers, Committee Composition, Guidelines, Code of Ethics, Director & Officer Ownership, SEC Filings.

• We require that our senior operations and financial managers certify on a consistent basis as to the accuracy of the financial information which is reported;
• We take seriously the responsibility of our managers to oversee the effectiveness of internal controls;
• We have established internal policies and procedures, which includes an ethics hotline, for the anonymous reporting of complaints related to accounting controls, auditing, or other financial matters;
• We have modified our board committee charters and checklists to be consistent with new sec and nyse regulations concerning corporate governance;
• Our company has an audit committee and compensation committee to assist the board of directors in fulfilling their responsibilities;
• All members of the board committees are independent;
• We have established a code of ethics for all of our associates including our senior financial management team;
• Our independent accountants, Deloitte and Touche, report directly to the Audit Committee;
• Our Audit Committee has established pre-approval policies for audit and non-audit related services;
• The independent board members meet regularly without the presence of management directors.