View Filing Data

Inventory impairment loss and land option write-offs

$ 482,041

$ 456,712

$ 1,303,326

$ 1,376,422

3,601

3,183

Total expenses

492,847

463,100

1,362,964

1,417,586

Corporate general and administrative

14,959

16,393

48,792

51,672

Other interest

^[1],[2]

22,377

24,859

67,313

80,078

Other operations

622

495

1,193

1,287

Loss on extinguishment of debt

(4,266)

(5,706)

Income from unconsolidated joint ventures

3,742

10,732

20,556

6,899

(Loss) income before income taxes

(7,064)

(39,082)

(39,971)

Tax provision (benefit)

537

1,104

1,228

1,687

Net (loss)

$ (7,601)

$ (1,026)

$ (40,310)

$ (41,658)

Net (loss) per common share (in dollars per share)

$ (1.27)

$ (0.18)

$ (6.76)

$ (7.03)

Weighted-average number of common shares outstanding, basic (in shares)

5,971

5,947

5,964

5,935

State and Local Jurisdiction [Member]

Tax provision (benefit)

$ 537

$ 1,104

$ 1,228

$ 1,687

Domestic Tax Authority [Member]

Tax provision (benefit)

Homebuilding [Member]

Cost of sales, excluding interest

469,277

443,703

1,268,647

1,339,471

381,939

361,303

1,042,343

1,083,842

Cost of sales interest

19,029

13,424

43,169

45,080

Inventory impairment loss and land option write-offs

1,435

3,601

3,183

Total cost of sales

402,403

374,823

1,089,113

1,132,105

Selling, general and administrative

43,559

37,544

130,474

126,319

Total expenses

445,962

412,367

1,219,587

1,258,424

Homebuilding [Member] | Home Building [Member]

Homebuilding [Member] | Land Sales and Other Revenues [Member]

467,849

442,859

1,257,536

1,312,553

Financial Services [Member]

1,428

844

11,111

26,918

12,764

13,009

34,679

36,951

Total expenses

$ 8,927

$ 8,986

$ 26,079

$ 26,125

[1]

Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: Three Months Ended July 31, Nine Months Ended July 31, (In thousands) 2019 2018 2019 2018 Other interest expensed $22,377 $24,859 $67,313 $80,078 Interest paid by our mortgage and finance subsidiaries 673 616 1,876 1,802 Decrease in accrued interest 15,404 20,672 13,105 23,974 Cash paid for interest, net of capitalized interest $38,454 $46,147 $82,294 $105,854

[2]

Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt, which amounted to $13.7 million and $20.2 million for the three months ended July 31, 2019 and 2018, respectively, and $46.4 million and $59.7 million for the nine months ended July 31, 2019 and 2018, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $8.7 million and $4.6 million for the three months ended July 31, 2019 and 2018, respectively, and $21.0 million and $20.4 million for the nine months ended July 31, 2019 and 2018, respectively.

Condensed Consolidated Statement of Changes in Equity (Unaudited) - USD ($) $ in Thousands	Common Stock Outstanding [Member] Common Class A [Member]	Common Stock Outstanding [Member] Common Class B [Member]	Preferred Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Noncontrolling Interest [Member]	Total
Balance (in shares) at Oct. 31, 2017	5,291,412	612,304	5,600
Balance at Oct. 31, 2017	$ 58	$ 6	$ 135,299	$ 708,002	$ (1,188,376)	$ (115,360)		$ (460,371)
Stock options, amortization and issuances (in shares)	960
Stock options, amortization and issuances				210				210
Restricted stock amortization, issuances and forfeitures (in shares)	13,291	6,573
Restricted stock amortization, issuances and forfeitures				(219)				(219)
Conversion of Class B to Class A common stock (in shares)	58	(58)
Conversion of Class B to Class A common stock
Net (loss)					(30,809)			(30,809)
Balance (in shares) at Jan. 31, 2018	5,305,721	618,819	5,600
Balance at Jan. 31, 2018	$ 58	$ 6	$ 135,299	707,993	(1,219,185)	(115,360)		(491,189)
Balance (in shares) at Oct. 31, 2017	5,291,412	612,304	5,600
Balance at Oct. 31, 2017	$ 58	$ 6	$ 135,299	708,002	(1,188,376)	(115,360)		(460,371)
Net (loss)								(41,658)
Balance (in shares) at Jul. 31, 2018	5,310,519	622,069	5,600
Balance at Jul. 31, 2018	$ 58	$ 6	$ 135,299	709,400	(1,230,034)	(115,360)		(500,631)
Balance (in shares) at Jan. 31, 2018	5,305,721	618,819	5,600
Balance at Jan. 31, 2018	$ 58	$ 6	$ 135,299	707,993	(1,219,185)	(115,360)		(491,189)
Stock options, amortization and issuances (in shares)
Stock options, amortization and issuances				92				92
Restricted stock amortization, issuances and forfeitures (in shares)
Restricted stock amortization, issuances and forfeitures				944				944
Conversion of Class B to Class A common stock (in shares)
Conversion of Class B to Class A common stock
Net (loss)					(9,823)			(9,823)
Balance (in shares) at Apr. 30, 2018	5,305,721	618,819	5,600
Balance at Apr. 30, 2018	$ 58	$ 6	$ 135,299	709,029	(1,229,008)	(115,360)		(499,976)
Stock options, amortization and issuances (in shares)	250
Stock options, amortization and issuances				867				867
Restricted stock amortization, issuances and forfeitures (in shares)	4,537	3,261
Restricted stock amortization, issuances and forfeitures				(496)				(496)
Conversion of Class B to Class A common stock (in shares)	11	(11)
Conversion of Class B to Class A common stock
Net (loss)					(1,026)			(1,026)
Balance (in shares) at Jul. 31, 2018	5,310,519	622,069	5,600
Balance at Jul. 31, 2018	$ 58	$ 6	$ 135,299	709,400	(1,230,034)	(115,360)		(500,631)
Balance (in shares) at Oct. 31, 2018	5,313,428	622,004	5,600
Balance at Oct. 31, 2018	$ 58	$ 6	$ 135,299	710,349	(1,183,856)	(115,360)		(453,504)
Stock options, amortization and issuances (in shares)
Stock options, amortization and issuances				107				107
Restricted stock amortization, issuances and forfeitures (in shares)	2,830	922
Restricted stock amortization, issuances and forfeitures				485				485
Conversion of Class B to Class A common stock (in shares)	20	(20)
Conversion of Class B to Class A common stock
Net (loss)					(17,452)			(17,452)
Balance (in shares) at Jan. 31, 2019	5,316,278	622,906	5,600
Balance at Jan. 31, 2019	$ 58	$ 6	$ 135,299	710,941	(1,201,308)	(115,360)		(470,364)
Balance (in shares) at Oct. 31, 2018	5,313,428	622,004	5,600
Balance at Oct. 31, 2018	$ 58	$ 6	$ 135,299	710,349	(1,183,856)	(115,360)		(453,504)
Net (loss)								(40,310)
Balance (in shares) at Jul. 31, 2019	5,322,428	622,780	5,600
Balance at Jul. 31, 2019	$ 58	$ 6	$ 135,299	710,517	(1,224,166)	(115,360)	575	(493,071)
Balance (in shares) at Jan. 31, 2019	5,316,278	622,906	5,600
Balance at Jan. 31, 2019	$ 58	$ 6	$ 135,299	710,941	(1,201,308)	(115,360)		(470,364)
Stock options, amortization and issuances (in shares)
Stock options, amortization and issuances				108				108
Restricted stock amortization, issuances and forfeitures (in shares)
Restricted stock amortization, issuances and forfeitures				468				468
Conversion of Class B to Class A common stock (in shares)	118	(118)
Conversion of Class B to Class A common stock
Net (loss)					(15,257)			(15,257)
Changes in noncontrolling interest in consolidated joint ventures							566	566
Balance (in shares) at Apr. 30, 2019	5,316,396	622,788	5,600
Balance at Apr. 30, 2019	$ 58	$ 6	$ 135,299	711,517	(1,216,565)	(115,360)	566	(484,479)
Stock options, amortization and issuances (in shares)
Stock options, amortization and issuances				438				438
Restricted stock amortization, issuances and forfeitures (in shares)	6,024
Restricted stock amortization, issuances and forfeitures				(1,438)				(1,438)
Conversion of Class B to Class A common stock (in shares)	8	(8)
Conversion of Class B to Class A common stock
Net (loss)					(7,601)			(7,601)
Changes in noncontrolling interest in consolidated joint ventures							9	9
Balance (in shares) at Jul. 31, 2019	5,322,428	622,780	5,600
Balance at Jul. 31, 2019	$ 58	$ 6	$ 135,299	$ 710,517	$ (1,224,166)	$ (115,360)	$ 575	$ (493,071)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018
Cash flows from operating activities:
Net (loss)	$ (40,310)	$ (41,658)
Adjustments to reconcile net (loss) to net cash used in operating activities:
Depreciation	2,942	2,320
Compensation from stock options and awards	197	2,706
Amortization of bond discounts, premiums and deferred financing costs	6,003	5,900
Gain on sale and retirement of property and assets	(19)	(3,620)
Income from unconsolidated joint ventures	(20,556)	(6,899)
Distributions of earnings from unconsolidated joint ventures	16,532
Loss on extinguishment of debt		5,706
Noncontrolling interest income in consolidated joint venture	(29)
Inventory impairment and land option write-offs	3,601	3,183
(Increase) decrease in assets:
Origination of mortgage loans	(698,444)	(716,954)
Sale of mortgage loans	745,285	766,925
Receivables, prepaids, deposits and other assets	(892)	15,546
Inventories	(280,354)	(89,361)
(Decrease) increase in liabilities:
State income tax payable	(1,813)	13
Customers’ deposits	10,272	4,280
Accounts payable, accrued interest and other accrued liabilities	(473)	(44,670)
Net cash used in operating activities	(258,058)	(96,583)
Cash flows from investing activities:
Proceeds from sale of property and assets	23	38,302
Purchase of property, equipment and other fixed assets and acquisitions	(3,138)	(4,211)
Investments in and advances to unconsolidated joint ventures	(13,159)	(24,337)
Distributions of capital from unconsolidated joint ventures	6,766	28,536
Net cash (used in) provided by investing activities	(9,508)	38,290
Cash flows from financing activities:
Proceeds from mortgages and notes	235,645	129,411
Payments related to mortgages and notes	(123,148)	(110,570)
Proceeds from model sale leaseback financing programs	21,276	22,244
Payments for model sale leaseback financing programs	(14,477)	(26,835)
Proceeds from land bank financing programs	87,734	16,957
Payments related to land bank financing programs	(18,740)	(30,577)
Proceeds from partner contribution to consolidated joint venture	604
Proceeds from senior unsecured term loan facility		202,547
Proceeds from senior secured notes, net of discount	21,348
Payments related to senior, senior secured and senior amortizing notes		(285,095)
Deferred financing costs from land bank financing programs and note issuances	(4,586)	(7,010)
Net cash provided by (used in) financing activities	159,372	(164,686)
Net decrease in cash and cash equivalents, and restricted cash and cash equivalents	(108,194)	(222,979)
Cash and cash equivalents, and restricted cash and cash equivalents balance, beginning of period	232,992	493,742
Cash and cash equivalents, and restricted cash and cash equivalents balance, end of period	124,798	270,763
Supplemental disclosure of cash flow:
Interest, net of capitalized interest (see Note 3 to the Condensed Consolidated Financial Statements)	82,294	105,854
Income taxes	3,042	1,674
Cash and cash equivalents, and restricted cash and cash equivalents balance, end of period	124,798	270,763
Mortgage Warehouse Lines of Credit [Member]
Cash flows from financing activities:
Net payments related to lines of credit	(46,284)	(49,758)
Unsecured Revolving Credit Facility [Member]
Cash flows from financing activities:
Net payments related to lines of credit		(26,000)
Homebuilding [Member]
Adjustments to reconcile net (loss) to net cash used in operating activities:
Inventory impairment and land option write-offs	3,601	3,183
Supplemental disclosure of cash flow:
Cash and cash equivalents	83,634	216,707
Restricted cash and cash equivalents	16,919	25,345
Financial Services [Member]
Supplemental disclosure of cash flow:
Cash and cash equivalents	3,847	5,232
Restricted cash and cash equivalents	$ 20,398	$ 23,479

Supplemental Disclosure of Cash Flow Information	9 Months Ended
Supplemental Disclosure of Cash Flow Information	Jul. 31, 2019
Notes to Financial Statements
Cash Flow, Supplemental Disclosures [Text Block]	See notes to condensed consolidated financial statements (unaudited). Supplemental disclosure of noncash investing activities: In the first quarter of fiscal 2018, we acquired the remaining assets of one of our joint ventures, resulting in a $13.0 million reduction in our investment in the joint venture and a corresponding increase to inventory. Supplemental disclosure of noncash financing activities: In the second quarter of fiscal 2018, we completed a debt for debt exchange of existing 8.0% Senior Notes due November 1, 2019 for newly issued 13.5% Senior Notes due 2026 and 5.0% Senior Notes due 2040. See Note 11 for further information.

Note 1 - Basis of Presentation

9 Months Ended

Jul. 31, 2019

Basis of Presentation and Significant Accounting Policies [Text Block]

1.	Basis of Presentation

Hovnanian Enterprises, Inc. (“HEI”) conducts all of its homebuilding and financial services operations through its subsidiaries (references herein to the “Company,” “we,” “us” or “our” refer to HEI and its consolidated subsidiaries and should be understood to reflect the consolidated business of HEI’s subsidiaries). HEI has reportable segments consisting of

six

Homebuilding segments (Northeast, Mid-Atlantic, Midwest, Southeast, Southwest and West) and the Financial Services segment (see Note

The accompanying unaudited Condensed Consolidated Financial Statements include HEI's accounts and those of all of its consolidated subsidiaries after elimination of all of its significant intercompany balances and transactions. Noncontrolling interest represents the proportionate equity interest in a consolidated joint venture that is

not

100%

owned by the Company. One of HEI's subsidiaries owns a

99%

controlling interest in the consolidated joint venture and therefore HEI is required to consolidate the joint venture within its Condensed Consolidated Financial Statements. The

that we do

not

own is accounted for as noncontrolling interest.

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form

-Q and Article

of Regulation S-

and accordingly, they do

not

include all of the information and footnotes required by GAAP for complete financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form

-K for the fiscal year ended

October 31, 2018.

In the opinion of management, all adjustments for interim periods presented have been made, which include normal recurring accruals and deferrals necessary for a fair presentation of our condensed consolidated financial position, results of operations and cash flows. The preparation of Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and these differences could have a significant impact on the Condensed Consolidated Financial Statements. Results for interim periods are

not

necessarily indicative of the results which might be expected for a full year.

Reclassifications -

Effective

October 31, 2018

we early adopted Accounting Standards Update (“ASU”)

2016

“Statement of Cash Flows (Topic

230

): Restricted Cash” (“ASU

2016

18”

). As a result, restricted cash amounts are

longer shown within the operating and investing activities as these balances are now included in the beginning and ending cash balances in our Condensed Consolidated Statements of Cash Flows. The adoption of ASU

2016

also resulted in the reclassification of restricted cash in operating and investing activities of

$1.0

million and

$23.4

million, respectively, for the

nine

months ended

July 31, 2018.

These amounts are now included in the beginning and ending cash balances for the respective periods. See also the reconciliation of cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows.

Reverse Stock Split – As discussed in Note

14,

March 2019,

the Company's stockholders approved and the Board of Directors determined to effectuate a reverse stock split (the “Reverse Stock Split”) of the Company’s common stock at a ratio of

-for-

25,

and a corresponding decrease in the number of authorized shares of the common stock. The Reverse Stock Split became effective on

March 29, 2019,

and every

issued shares (including treasury shares) of Class A Common Stock, par value

$0.01

per share (the “Class A Common Stock”), were combined into

one

share of Class A Common Stock, and every

issued shares (including treasury shares) of Class B Common Stock, par value

$0.01

per share (the “Class B Common Stock”), were combined into

one

share of Class B Common Stock. All share and per share amounts throughout this report have been retroactively adjusted to reflect the reverse stock split.

Note 2 - Stock Compensation

9 Months Ended

Jul. 31, 2019

Share-based Payment Arrangement [Text Block]

2.	Stock Compensation

For the

nine

months ended

July 31, 2019,

the Company’s total stock-based compensation expense was

$0.2

million and for the

three

and

nine

months ended

July 31, 2018,

$0.6

million and

$2.7

million, respectively. For the

three

months ended

July 31, 2019,

there was stock-based compensation income of

$1.0

million (pre and post-tax), as a result of the cancellation of certain market stock units awards based on performance conditions which were

not

met. Included in the total stock-based compensation expense was the vesting of stock options of

$0.4

million and

$0.7

million for the

three

and

nine

months ended

July 31, 2019,

respectively, and

$0.9

million and

$1.1

million for the

three

and

nine

months ended

July 31, 2018,

respectively.

Note 3 - Interest

9 Months Ended

Jul. 31, 2019

Home Building Interest [Text Block]

Interest

Interest costs incurred, expensed and capitalized were:

	Three Months Ended July 31,		Nine Months Ended July 31,
(In thousands)	2019	2018	2019	2018

Interest capitalized at beginning of period	$79,277	$65,355	$68,117	$71,051
Plus interest incurred (1)	42,104	40,438	122,340	121,617
Less cost of sales interest expensed	19,029	13,424	43,169	45,080
Less other interest expensed (2)(3)	22,377	24,859	67,313	80,078
Less interest contributed to unconsolidated joint venture(4)	1,978	-	1,978	-
Interest capitalized at end of period (5)	$77,997	$67,510	$77,997	$67,510

(

)

Data does

not

include interest incurred by our mortgage and finance subsidiaries.

(

)

Other interest expensed includes interest that does

not

qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do

not

exceed our debt, which amounted to

$13.7

million and

$20.2

million for the

three

months ended

July 31, 2019

and

2018,

respectively, and

$46.4

million and

$59.7

million for the

nine

months ended

July 31, 2019

and

2018,

respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does

not

qualify for capitalization, and therefore, is expensed. This component of other interest was

$8.7

million and

$4.6

million for the

three

months ended

July 31, 2019

and

2018,

respectively, and

$21.0

million and

$20.4

million for the

nine

months ended

July 31, 2019

and

2018,

respectively.

(

)

Cash paid for interest, net of capitalized interest, is the sum of the other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows:

	Three Months Ended July 31,		Nine Months Ended July 31,
(In thousands)	2019	2018	2019	2018
Other interest expensed	$22,377	$24,859	$67,313	$80,078
Interest paid by our mortgage and finance subsidiaries	673	616	1,876	1,802
Decrease in accrued interest	15,404	20,672	13,105	23,974
Cash paid for interest, net of capitalized interest	$38,454	$46,147	$82,294	$105,854

( 4 )	Represents capitalized interest which was included as part of the assets contributed to a joint venture the company entered into in June 2019. There was no impact to the Condensed Consolidated Statement of Operations as a result of this transaction.
( 5 )	Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest.

Note 4 - Reduction of Inventory to Fair Value

9 Months Ended

Jul. 31, 2019

Inventory Impairments and Land Option Cost Write-offs [Text Block]

4.	Reduction of Inventory to Fair Value

We record impairment losses on inventories related to communities under development and held for future development when events and circumstances indicate that they

may

be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their related carrying amounts. If the expected undiscounted cash flows are less than the carrying amount, then the community is written down to its fair value. We estimate the fair value of each impaired community by determining the present value of the estimated future cash flows at a discount rate commensurate with the risk of the respective community. For the

nine

months ended

July 31, 2019,

our discount rate used for the impairments recorded ranged from

18.0%

18.3%.

For the

nine

months ended

July 31, 2018,

our discount rate used for the impairments recorded ranged from

16.8%

19.8%.

Should the estimates or expectations used in determining cash flows or fair value decrease or differ from current estimates in the future, we

may

need to recognize additional impairments.

During the

nine

months ended

July 31, 2019

and

2018,

we evaluated inventories of all

398

and

405

communities under development and held for future development or sale, respectively, for impairment indicators through preparation and review of detailed budgets or other market indicators of impairment. We performed detailed impairment calculations during the

nine

months ended

July 31, 2019

and

2018

for

seven

and

five

of those communities (i.e., those with a projected operating loss or other impairment indicators), respectively, with an aggregate carrying value of

$52.8

million and

$11.2

million, respectively. As a result of our impairment analysis, we recorded an impairment loss of

$0.1

million in

one

community (which had a pre-impairment value of

$1.2

million) for the

three

months ended

July 31, 2019,

and aggregate impairment losses of

$1.1

million in

four

communities (which had aggregate pre-impairment values of

$11.4

million) for the

nine

months ended

July 31, 2019.

For the

nine

months ended

July 31, 2018,

we recorded aggregate impairment losses of

$2.1

million in all

five

communities (which had an aggregate pre-impairment value of

$11.2

million). We did

not

record impairment losses for the

three

months ended

July 31, 2018.

These impairment losses are included in the Condensed Consolidated Statements of Operations on the line entitled “Homebuilding: Inventory impairment loss and land option write-offs” and deducted from inventory. The pre-impairment value represents the carrying value, net of prior period impairments, if any, at the time of recording the impairment. Of those communities tested for impairment during the

nine

months ended

July 31, 2019,

three

communities with an aggregate carrying value of

$41.3

million had undiscounted future cash flows that exceeded the carrying amount by less than

20%.

During the

nine

months ended

July 31, 2018,

none

of the

five

communities tested for impairment had undiscounted future cash flows that exceeded the carrying amount by less than

20%.

The Condensed Consolidated Statements of Operations line entitled “Homebuilding: Inventory impairment loss and land option write-offs” also includes write-offs of options and approval, engineering and capitalized interest costs that we record when we redesign communities and/or abandon certain engineering costs and we do

not

exercise options in various locations because the communities' pro forma profitability is

not

projected to produce adequate returns on investment commensurate with the risk. Total aggregate write-offs related to these items were

$1.3

million and

$0.1

million for the

three

months ended

July 31, 2019

and

2018,

respectively, and

$2.5

million and

$1.1

million for the

nine

months ended

July 31, 2019

and

2018,

respectively. Occasionally, these write-offs are offset by recovered deposits (sometimes through legal action) that had been written off in a prior period as walk-away costs. Historically, these recoveries have

not

been significant in comparison to the total costs written off. The number of lots walked away from during the

three

months ended

July 31, 2019

and

2018

were

1,852

and

76,

respectively, and

4,022

and

1,417

during the

nine

months ended

July 31, 2019

and

2018,

respectively.

We decide to mothball (or stop development on) certain communities when we determine that the current performance does

not

justify further investment at the time. When we decide to mothball a community, the inventory is reclassified on our Condensed Consolidated Balance Sheets from “Sold and unsold homes and lots under development” to “Land and land options held for future development or sale.” During the

first

three

quarters of fiscal

2019,

we did

not

mothball any additional communities, but sold

two

previously mothballed communities and re-activated

two

previously mothballed communities. As of

July 31, 2019

and

October 31, 2018,

the net book value associated with our

and

total mothballed communities was

$14.2

million and

$24.5

million, respectively, which was net of impairment charges recorded in prior periods of

$146.9

million and

$186.1

million, respectively.

From time to time we enter into option agreements that include specific performance requirements whereby we are required to purchase a minimum number of lots. Because of our obligation to purchase these lots, for accounting purposes in accordance with Accounting Standards Codification (“ASC”)

360

38,

we are required to record this inventory on our Condensed Consolidated Balance Sheets. As of

July 31, 2019

and

October 31, 2018,

we had

specific performance options.

We sell and lease back certain of our model homes with the right to participate in the potential profit when each home is sold to a

third

party at the end of the respective lease. As a result of our continued involvement, for accounting purposes in accordance with ASC

606

68,

these sale and leaseback transactions are considered a financing rather than a sale. Therefore, for purposes of our Condensed Consolidated Balance Sheets, at

July 31, 2019

and

October 31, 2018,

inventory of

$55.8

million and

$50.5

million, respectively, was recorded to “Consolidated inventory

not

owned,” with a corresponding amount of

$50.7

million and

$43.9

million (net of debt issuance costs), respectively, recorded to “Liabilities from inventory

not

owned” for the amount of net cash received from the transactions.

We have land banking arrangements, whereby we sell our land parcels to the land bankers and they provide us an option to purchase back finished lots on a predetermined schedule. Because of our options to repurchase these parcels, for accounting purposes, in accordance with ASC

606

70,

these transactions are considered a financing rather than a sale. For purposes of our Condensed Consolidated Balance Sheets, at

July 31, 2019

and

October 31, 2018,

inventory of

$123.8

million and

$37.4

million, respectively, was recorded to “Consolidated inventory

not

owned,” with a corresponding amount of

$87.7

million and

$19.5

million (net of debt issuance costs), respectively, recorded to “Liabilities from inventory

not

owned” for the amount of net cash received from the transactions.

Note 5 - Variable Interest Entities

9 Months Ended

Jul. 31, 2019

Variable Interest Entity Disclosure [Text Block]

5.	Variable Interest Entities

The Company enters into land and lot option purchase contracts to procure land or lots for the construction of homes. Under these contracts, the Company will fund a stated deposit in consideration for the right, but

not

the obligation, to purchase land or lots at a future point in time with predetermined terms. Under the terms of the option purchase contracts, many of the option deposits are

not

refundable at the Company's discretion. Under the requirements of ASC

810,

certain option purchase contracts

may

result in the creation of a variable interest in the entity (“VIE”) that owns the land parcel under option.

In compliance with ASC

810,

the Company analyzes its option purchase contracts to determine whether the corresponding land sellers are VIEs and, if so, whether the Company is the primary beneficiary. Although the Company does

not

have legal title to the underlying land, ASC

810

requires the Company to consolidate a VIE if the Company is determined to be the primary beneficiary. In determining whether it is the primary beneficiary, the Company considers, among other things, whether it has the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. Such activities would include, among other things, determining or limiting the scope or purpose of the VIE, selling or transferring property owned or controlled by the VIE, or arranging financing for the VIE. The Company also considers whether it has the obligation to absorb losses of the VIE or the right to receive benefits from the VIE. As a result of its analyses, the Company determined that as of

July 31, 2019

and

October 31, 2018,

it was

not

the primary beneficiary of any VIEs from which it is purchasing land under option purchase contracts.

We will continue to secure land and lots using options, some of which are with VIEs. Including deposits on our unconsolidated VIEs, at

July 31, 2019,

we had total cash and letters of credit deposits amounting to

$71.6

million to purchase land and lots with a total purchase price of

$1.3

billion. The maximum exposure to loss with respect to our land and lot options is limited to the deposits plus any pre-development costs invested in the property, although some deposits are refundable at our request or refundable if certain conditions are

not

met.

Note 6 - Warranty Costs

9 Months Ended

Jul. 31, 2019

Product Warranty Disclosure [Text Block]

6.	Warranty Costs

General liability insurance for homebuilding companies and their suppliers and subcontractors is very difficult to obtain. The availability of general liability insurance is limited due to a decreased number of insurance companies willing to underwrite for the industry. In addition, those few insurers willing to underwrite liability insurance have significantly increased the premium costs. To date, we have been able to obtain general liability insurance but at higher premium costs with higher deductibles. Our subcontractors and suppliers have advised us that they have also had difficulty obtaining insurance that also provides us coverage. As a result, we have an owner controlled insurance program for certain of our subcontractors whereby the subcontractors pay us an insurance premium (through a reduction of amounts we would otherwise owe such subcontractors for their work on our homes) based on the risk type of the trade. We absorb the liability associated with their work on our homes as part of our overall general liability insurance at

additional cost to us because our existing general liability and construction defect insurance policy and related reserves for amounts under our deductible covers construction defects regardless of whether we or our subcontractors are responsible for the defect. For the

three

months ended

July 31, 2019

and

2018,

we received

$1.2

million and

$1.3

million, respectively, and for the

nine

months ended

July 31, 2019

and

2018,

we received

$3.4

million and

$3.3

million, respectively, from subcontractors related to the owner controlled insurance program, which we accounted for as a reduction to inventory.

We accrue for warranty costs that are covered under our existing general liability and construction defect policy as part of our general liability insurance deductible. This accrual is expensed as selling, general and administrative costs. For homes delivered in fiscal

2019

and

2018,

our deductible under our general liability insurance is a

$20

million aggregate for construction defect and warranty claims. For bodily injury claims, our deductible per occurrence in fiscal

2019

and

2018

$0.25

million, up to a

million limit. Our aggregate retention for construction defect, warranty and bodily injury claims is

$20

million for fiscal

2019

and

2018.

In addition, we establish a warranty accrual for lower cost-related issues to cover home repairs, community amenities and land development infrastructure that are

not

covered under our general liability and construction defect policy. We accrue an estimate for these warranty costs as part of cost of sales at the time each home is closed and title and possession have been transferred to the homebuyer. Additions and charges in the warranty reserve and general liability reserve for the

three

and

nine

months ended

July 31, 2019

and

2018

were as follows:

	Three Months Ended July 31,				Nine Months Ended July 31,
(In thousands)	2019		2018		2019		2018

Balance, beginning of period	$92,849		$115,775		$95,064		$127,702

Additions - Selling, general and administrative	2,332		2,346		6,449		6,684
Additions - Cost of sales	1,481		3,386		4,817		13,285
Charges incurred during the period	(3,657	)	(3,765	)	(13,768	)	(29,929	)
Changes to pre-existing reserves	900		(2,314	)	1,343		(2,314	)
Balance, end of period	$93,905		$115,428		$93,905		$115,428

Warranty accruals are based upon historical experience. We engage a

third

-party actuary that uses our historical warranty and construction defect data to assist our management in estimating our unpaid claims, claim adjustment expenses and incurred but

not

reported claims reserves for the risks that we are assuming under the general liability and construction defect programs. The estimates include provisions for inflation, claims handling and legal fees. The majority of the charges incurred during the

first

nine

months of fiscal

2018

represented a payment for construction defect reserves related to the settlement of a litigation matter.

Insurance claims paid by our insurance carriers, excluding insurance deductibles paid, for prior year deliveries were less than

$0.1

million for the

three

months ended

July 31, 2019

and

2018,

and

$0.1

million for the

nine

months ended

July 31, 2019

and

2018.

Note 7 - Commitments and Contingent Liabilities

9 Months Ended

Jul. 31, 2019

Commitments and Contingencies Disclosure [Text Block]

7.	Commitments and Contingent Liabilities

We are involved in litigation arising in the ordinary course of business,

none

of which is expected to have a material adverse effect on our financial position, results of operations or cash flows, and we are subject to extensive and complex laws and regulations that affect the development of land and home building, sales and customer financing processes, including zoning, density, building standards and mortgage financing. These laws and regulations often provide broad discretion to the administering governmental authorities. This can delay or increase the cost of development or homebuilding. The significant majority of our litigation matters are related to construction defect claims. Our estimated losses from construction defect litigation matters, if any, are included in our construction defect reserves.

We also are subject to a variety of local, state, federal and foreign laws and regulations concerning protection of health and the environment, including those regulating the emission or discharge of materials into the environment, the management of storm water runoff at construction sites, the handling, use, storage and disposal of hazardous substances, impacts to wetlands and other sensitive environments, and the remediation of contamination at properties that we have owned or developed or currently own or are developing (“environmental laws”). The particular environmental laws that apply to a site

may

vary greatly according to the community site, for example, due to the community, the environmental conditions at or near the site, and the present and former uses of the site. These environmental laws

may

result in delays,

may

cause us to incur substantial compliance, remediation and/or other costs, and can prohibit or severely restrict development and homebuilding activity. In addition, noncompliance with these laws and regulations could result in fines and penalties, obligations to remediate, permit revocations or other sanctions; and contamination or other environmental conditions at or in the vicinity of our developments

may

result in claims against us for personal injury, property damage or other losses.

We anticipate that increasingly stringent requirements will be imposed on developers and homebuilders in the future. For example, for a number of years, the EPA and U.S. Army Corps of Engineers have been engaged in rulemakings to clarify the scope of federally regulated wetlands, which included a

June 2015

rule many affected businesses contend impermissibly expanded the scope of such wetlands that was challenged in court, stayed, and remains in litigation. A proposal was made in

June 2017

to formally rescind the

June 2015

rule and reinstate the rule scheme previously in place while the agencies initiate a new substantive rulemaking on the issue. A

February 2018

rule purported to delay the effective date of the

June 2015

rule until

February 2020,

but was enjoined nationwide in

August 2018

by a federal district court in South Carolina and later by a federal district court in the State of Washington in response to lawsuits (the net result of which, according to the EPA, is that the

June 2015

rule applies in

states, the District of Columbia, and the United States territories, and that the pre-

June 2015

regime applies in the rest). The federal government has withdrawn its appeals of those decisions and the EPA and U.S. Army Corps of Engineers are focusing efforts on promulgating a new rule addressing the issue; the comment period on the proposed rule, which was published in

February 2019,

closed in

April 2019.

It is unclear how these and related developments, including at the state or local level, ultimately

may

affect the scope of regulated wetlands where we operate. Although we cannot reliably predict the extent of any effect these developments regarding wetlands, or any other requirements that

may

take effect

may

have on us, they could result in time-consuming and expensive compliance programs and in substantial expenditures, which could cause delays and increase our cost of operations. In addition, our ability to obtain or renew permits or approvals and the continued effectiveness of permits already granted or approvals already obtained is dependent upon many factors, some of which are beyond our control, such as changes in policies, rules and regulations and their interpretations and application.

March 2013,

we received a letter from the Environmental Protection Agency (“EPA”) requesting information about our involvement in a housing redevelopment project in Newark, New Jersey that a Company entity undertook during the

1990s.

We understand that the development is in the vicinity of a former lead smelter and that tests on soil samples from properties within the development conducted by the EPA showed elevated levels of lead. We also understand that the smelter ceased operations many years before the Company entity involved acquired the properties in the area and carried out the re-development project. We responded to the EPA’s request. In

August

2013,

we were notified that the EPA considers us a potentially responsible party (or “PRP”) with respect to the site, that the EPA will clean up the site, and that the EPA is proposing that we fund and/or contribute towards the cleanup of the contamination at the site. We began preliminary discussions with the EPA concerning a possible resolution but do

not

know the scope or extent of the Company’s obligations, if any, that

may

arise from the site and therefore cannot provide any assurance that this matter will

not

have a material impact on the Company. The EPA requested additional information in

April 2014

and again in

March 2017

and the Company responded to the information requests. On

May 2, 2018

the EPA sent a letter to the Company entity demanding reimbursement for

100%

of the EPA’s costs to clean-up the site in the amount of

$2.7

million. The Company responded to the EPA’s demand letter on

June 15, 2018

setting forth the Company’s defenses and expressing its willingness to enter into settlement negotiations. The parties have subsequently executed a Tolling Agreement to toll the statute of limitations on collection until

December 20, 2019

to allow the parties time to discuss settlement. We believe that we have adequate reserves for this matter.

2015,

the condominium association of the Four Seasons at Great Notch condominium community (the “Great Notch Plaintiff”) filed a lawsuit in the Superior Court of New Jersey, Law Division, Passaic County (the “Court”) alleging various construction defects, design defects, and geotechnical issues relating to the community. The operative complaint (“Complaint”) asserts claims against Hovnanian Enterprises, Inc. and several of its affiliates, including K. Hovnanian at Great Notch, LLC, K. Hovnanian Construction Management, Inc., and K. Hovnanian Companies, LLC. The Complaint also asserts claims against various other design professionals and contractors. The Great Notch Plaintiff has also filed a motion, which remains pending, to permit it to pursue a claim to pierce the corporate veil of K. Hovnanian at Great Notch, LLC to hold its alleged parent entities liable for any damages awarded against it. To date, the Hovnanian-affiliated defendants have reached a partial settlement with the Great Notch Plaintiff as to a portion of the Great Notch Plaintiff’s claims against them for an amount immaterial to the Company. On its remaining claims against the Hovnanian-affiliated defendants, the Great Notch Plaintiff has asserted damages of approximately

$119.5

million, which amount is potentially subject to treble damages pursuant to the Great Notch Plaintiff’s claim under the New Jersey Consumer Fraud Act. On

August 17, 2018,

the Hovnanian-affiliated defendants filed a motion for summary judgment seeking dismissal of all of the Great Notch Plaintiff’s remaining claims against them, which was withdrawn without prejudice to re-file with supplemental evidence. The trial is currently scheduled for

January 13, 2020.

The previously ordered Court mediation sessions have been adjourned and have

not

been re-scheduled at this time. The Hovnanian-affiliated defendants intend to defend these claims vigorously.

Note 8 - Cash and Cash Equivalents, Restricted Cash and Cash Equivalents and Customer's Deposits

9 Months Ended

Jul. 31, 2019

Cash and Cash Equivalents Disclosure [Text Block]

8.	Cash and Cash Equivalents, Restricted Cash and Cash Equivalents and Customer’s Deposits

Cash represents cash deposited in checking accounts. Cash equivalents include certificates of deposit, Treasury bills and government money–market funds with maturities of

days or less when purchased. Our cash balances are held at a few financial institutions and

may,

at times, exceed insurable amounts. We believe we help to mitigate this risk by depositing our cash in major financial institutions. At

July 31, 2019

and

October 31, 2018,

$91.8

million and

$199.6

million, respectively, of the Cash and cash equivalents and Restricted cash and cash equivalents was in cash equivalents, the book value of which approximates fair value.

Homebuilding - Restricted cash and cash equivalents on the Condensed Consolidated Balance Sheets totaled

$16.9

million and

$12.8

million as of

July 31, 2019

and

October 31, 2018,

respectively, which primarily consists of cash collateralizing our letter of credit agreements and facilities as discussed in Note

11.

Financial services restricted cash and cash equivalents, which are included in “Financial services” assets on the Condensed Consolidated Balance Sheets, totaled

$20.4

million and

$25.4

million as of

July 31, 2019

and

October 31, 2018,

respectively. Included in these balances were (

) financial services customers’ deposits of

$18.1

million at

July 31, 2019

and

$23.4

million as of

October 31, 2018

which are subject to restrictions on our use, and (

)

$2.3

million at

July 31, 2019

and

$2.0

million at

October 31, 2018,

respectively, of restricted cash under the terms of our mortgage warehouse lines of credit.

Total Homebuilding Customers’ deposits are shown as a liability on the Condensed Consolidated Balance Sheets. These liabilities are significantly more than the applicable periods’ restricted cash balances because in some states the deposits are

not

restricted from use and, in other states, we are able to release the majority of these customer deposits to cash by pledging letters of credit and surety bonds.

Note 9 - Mortgage Loans Held for Sale

9 Months Ended

Jul. 31, 2019

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

9.	Mortgage Loans Held for Sale

Our wholly owned mortgage banking subsidiary, K. Hovnanian American Mortgage, LLC (“K. Hovnanian Mortgage”), originates mortgage loans, primarily from the sale of our homes. Such mortgage loans are sold in the secondary mortgage market within a short period of time of origination. Mortgage loans held for sale consist primarily of single-family residential loans collateralized by the underlying property. We have elected the fair value option to record loans held for sale and therefore these loans are recorded at fair value with the changes in the value recognized in the Condensed Consolidated Statements of Operations in “Revenues: Financial services.” We currently use forward sales of mortgage-backed securities (“MBS”), interest rate commitments from borrowers and mandatory and/or best efforts forward commitments to sell loans to

third

-party purchasers to protect us from interest rate fluctuations. These short-term instruments, which do

not

require any payments to be made to the counterparty or purchaser in connection with the execution of the commitments, are recorded at fair value. Gains and losses on changes in the fair value are recognized in the Condensed Consolidated Statements of Operations in “Revenues: Financial services.”

July 31, 2019

and

October 31, 2018,

$68.7

million and

$115.2

million, respectively, of mortgages held for sale were pledged against our mortgage warehouse lines of credit (see Note

). We

may

incur losses with respect to mortgages that were previously sold that are delinquent and which had underwriting defects, but only to the extent the losses are

not

covered by mortgage insurance or resale value of the home. The reserves for these estimated losses are included in the “Financial services” liability balances on the Condensed Consolidated Balance Sheets. As of

July 31, 2019

and

2018,

we had reserves specifically for

and

identified mortgage loans, respectively, as well as reserves for an estimate for future losses on mortgages sold but

not

yet identified to us.

The activity in our loan origination reserves during the

three

and

nine

months ended

July 31, 2019

and

2018

was as follows:

	Three Months Ended July 31,		Nine Months Ended July 31,
(In thousands)	2019	2018	2019		2018

Loan origination reserves, beginning of period	$1,269	$3,271	$2,563		$3,158
Provisions for losses during the period	61	39	139		107
Adjustments to pre-existing provisions for losses from changes in estimates	-	-	(22	)	45
Payments/settlements	-	-	(1,350	)	-
Loan origination reserves, end of period	$1,330	$3,310	$1,330		$3,310

Note 10 - Mortgages

9 Months Ended

Jul. 31, 2019

Line of Credit [Text Block]

10.

Mortgages

We have nonrecourse mortgage loans for certain communities totaling

$207.2

million and

$95.6

million (net of debt issuance costs) at

July 31, 2019

and

October 31, 2018,

respectively, which are secured by the related real property, including any improvements, with an aggregate book value of

$409.3

million and

$241.9

million, respectively. The weighted-average interest rate on these obligations was

8.1%

and

6.1%

July 31, 2019

and

October 31, 2018,

respectively, and the mortgage loan payments on each community primarily correspond to home deliveries.

K. Hovnanian Mortgage originates mortgage loans primarily from the sale of our homes. Such mortgage loans and related servicing rights are sold in the secondary mortgage market within a short period of time. In certain instances, we retain the servicing rights for a small amount of loans. K. Hovnanian Mortgage finances the origination of mortgage loans through various master repurchase agreements, which are recorded in financial services liabilities on the Condensed Consolidated Balance Sheets.

Our secured Master Repurchase Agreement with JPMorgan Chase Bank, N.A. (“Chase Master Repurchase Agreement”) is a short-term borrowing facility that provides up to

$50.0

million through its maturity on

January 31, 2020.

The loan is secured by the mortgages held for sale and is repaid when we sell the underlying mortgage loans to permanent investors. Interest is payable monthly on outstanding advances at an adjusted LIBOR rate, which was

2.22%

July 31, 2019,

plus the applicable margin of

2.5%

2.625%

based upon type of loan. As of

July 31, 2019

and

October 31, 2018,

the aggregate principal amount of all borrowings outstanding under the Chase Master Repurchase Agreement was

$25.0

million and

$40.3

million, respectively.

K. Hovnanian Mortgage has another secured Master Repurchase Agreement with Customers Bank (“Customers Master Repurchase Agreement”) which is a short-term borrowing facility that provides up to

$50.0

million through its maturity on

February 14, 2020.

The loan is secured by the mortgages held for sale and is repaid when we sell the underlying mortgage loans to permanent investors. Interest is payable daily or as loans are sold to permanent investors on outstanding advances at the current LIBOR rate, plus the applicable margin ranging from

2.25%

based on the type of loan and the number of days outstanding on the warehouse line. As of

July 31, 2019

and

October 31, 2018,

the aggregate principal amount of all borrowings outstanding under the Customers Master Repurchase Agreement was

$25.9

million and

$40.2

million, respectively.

K. Hovnanian Mortgage also has a secured Master Repurchase Agreement with Comerica Bank (“Comerica Master Repurchase Agreement”), which was amended on

June 20, 2019

and is a short-term borrowing facility that provides up to

$50.0

million through its maturity on

June 17, 2020.

The loan is secured by the mortgages held for sale and is repaid when we sell the underlying mortgage loans to permanent investors. Interest is payable monthly at the current LIBOR rate, subject to a floor of

.25%,

plus the applicable margin of

2.0%

3.25%

based upon the type of loan. As of

July 31, 2019

and

October 31, 2018,

the aggregate principal amount of all borrowings outstanding under the Comerica Master Repurchase Agreement was

$16.0

million and

$32.7

million, respectively.

The Chase Master Repurchase Agreement, Customers Master Repurchase Agreement and Comerica Master Repurchase Agreement (together, the “Master Repurchase Agreements”) require K. Hovnanian Mortgage to satisfy and maintain specified financial ratios and other financial condition tests. Because of the extremely short period of time mortgages are held by K. Hovnanian Mortgage before the mortgages are sold to investors (generally a period of a few weeks), the immateriality to us on a consolidated basis of the size of the Master Repurchase Agreements, the levels required by these financial covenants, our ability based on our immediately available resources to contribute sufficient capital to cure any default, were such conditions to occur, and our right to cure any conditions of default based on the terms of the applicable agreement, we do

not

consider any of these covenants to be substantive or material. As of

July 31, 2019,

we believe we were in compliance with the covenants under the Master Repurchase Agreements.

Note 11 - Senior Notes and Credit Facilities

9 Months Ended

Jul. 31, 2019

Long-term Debt [Text Block]

11.	Senior Notes and Credit Facilities

Senior notes and credit facilities balances as of

July 31, 2019

and

October

31,

2018,

were as follows:

(In thousands)	July 31, 2019(1)(2)	October 31, 2018(1)(2)
Senior Secured Notes:
9.5% Senior Secured Notes due November 15, 2020	$74,719	$74,561
2.0% Senior Secured Notes due November 1, 2021 (net of discount)	53,121	53,094
5.0% Senior Secured Notes due November 1, 2021 (net of discount)	137,028	135,571
10.0% Senior Secured Notes due July 15, 2022	436,369	435,461
10.5% Senior Secured Notes due July 15, 2024 (net of discount)	416,736	394,736
Total Senior Secured Notes, net of debt issuance costs	$1,117,973	$1,093,423
Senior Notes:
8.0% Senior Notes due November 1, 2019 (3)	$-	$-
13.5% Senior Notes due February 1, 2026 (including premium)	100,442	101,162
5.0% Senior Notes due February 1, 2040 (net of discount)	43,718	43,264
Total Senior Notes, net of debt issuance costs	$144,160	$144,426
Senior Unsecured Term Loan Credit Facility due February 1, 2027, net of debt issuance costs	$201,493	$201,389
Senior Secured Revolving Credit Facility (4)	$-	$-

(

) “Notes payable” on our Condensed Consolidated Balance Sheets as of

July 31, 2019

and

October 31, 2018

consists of the total senior secured and senior notes shown above, as well as accrued interest of

$22.5

million and

$35.6

million, respectively.

(

) Unamortized debt issuance costs at

July 31, 2019

and

October 31, 2018

were

$12.3

million and

$14.1

million, respectively.

(

)

$26.0

million of

8.0%

Senior Notes due

2019

are owned by a wholly-owned consolidated subsidiary of HEI. Therefore, in accordance with GAAP, such notes are

not

reflected on the Condensed Consolidated Balance Sheets of HEI.

(

) Availability under the Secured Credit Facility will terminate on

December 28, 2019

and any loans thereunder on such date will convert to secured term loans maturing on

December 28, 2022.

General

Except for K. Hovnanian, the issuer of the notes and borrower under the Credit Facilities (as defined below), our home mortgage subsidiaries, joint ventures and subsidiaries holding interests in our joint ventures and certain of our title insurance subsidiaries, we and each of our subsidiaries are guarantors of the Credit Facilities, the senior secured notes and senior notes outstanding at

July 31, 2019 (

collectively, the “Notes Guarantors”). In addition to the Notes Guarantors, the

5.0%

Senior Secured Notes due

2021

(the

“5.0%

2021

Notes”), the

2.0%

Senior Secured Notes due

2021

(the

“2.0%

2021

Notes” and together with the

5.0%

2021

Notes, the

“2021

Notes”) and the

9.50%

Senior Secured Notes due

2020

(the

“9.50%

2020

Notes” and collectively with the

2021

Notes, the “JV Holdings Secured Group Notes”) are guaranteed by K. Hovnanian JV Holdings, L.L.C. and its subsidiaries, except for certain joint ventures and joint venture holding companies (collectively, the “JV Holdings Secured Group”). Members of the JV Holdings Secured Group do

not

guarantee K. Hovnanian's other indebtedness.

The credit agreements governing the Credit Facilities and the indentures governing the senior secured and senior notes (together, the “Debt Instruments”) outstanding at

July 31, 2019

not

contain any financial maintenance covenants, but do contain restrictive covenants that limit, among other things, the Company’s ability and that of certain of its subsidiaries, including K. Hovnanian, to incur additional indebtedness (other than nonrecourse indebtedness, certain permitted indebtedness and refinancing indebtedness (under the

9.50%

2020

Notes, any new or refinancing indebtedness

may

not

be scheduled to mature earlier than

January 15, 2021 (

so long as

member of the JV Holdings Secured Group is an obligor thereon), or

February 15, 2021 (

if otherwise), and under the

10.0%

Senior Secured Notes due

2022

(the

“10.0%

2022

Notes”), any refinancing indebtedness of K. Hovnanian's previously outstanding

7.0%

Senior Notes due

2019

(the

“7.0%

Notes”) (which includes the Term Loans (as defined below)) and

8.0%

Senior Notes due

2019

(the

“8.0%

Notes” and together with the

7.0%

Notes, the

“2019

Notes”) (which includes the New Notes (as defined below) and the Term Loans)

may

not

be scheduled to mature earlier than

July 16, 2024 (

such restrictive covenant in respect of the

10.5%

Senior Secured Notes due

2024

(the

“10.5%

2024

Notes”) was eliminated as described below under “—Fiscal

2018”

)), pay dividends and make distributions on common and preferred stock, repurchase subordinated indebtedness and common and preferred stock, make other restricted payments, including investments, sell certain assets (including in certain land banking transactions), incur liens, consolidate, merge, sell or otherwise dispose of all or substantially all assets, enter into certain transactions with affiliates and make cash repayments of the

2019

Notes and refinancing indebtedness in respect thereof (with respect to the

10.0%

2022

Notes). The Debt Instruments also contain events of default which would permit the lenders or holders thereof to exercise remedies with respect to the collateral (as applicable), declare the loans made under the Term Loan Facility (defined below) (the “Term Loans”) and loans made under the Secured Credit Facility (as defined below) (the “Secured Revolving Loans”) or notes to be immediately due and payable if

not

cured within applicable grace periods, including the failure to make timely payments on the Term Loans, Secured Revolving Loans or notes or other material indebtedness, cross default to other material indebtedness, the failure to comply with agreements and covenants and specified events of bankruptcy and insolvency, with respect to the Term Loans and Secured Revolving Loans, material inaccuracy of representations and warranties and with respect to the Term Loans and Secured Revolving Loans, a change of control, and, with respect to the Secured Revolving Loans and senior secured notes, the failure of the documents granting security for the Secured Revolving Loans and senior secured notes to be in full force and effect, and the failure of the liens on any material portion of the collateral securing the Secured Revolving Loans and senior secured notes to be valid and perfected. As of

July 31, 2019,

we believe we were in compliance with the covenants of the Debt Instruments.

If our consolidated fixed charge coverage ratio, as defined in the agreements governing our debt instruments, is less than

2.0

1.0,

we are restricted from making certain payments, including dividends, and from incurring indebtedness other than certain permitted indebtedness, refinancing indebtedness and nonrecourse indebtedness. As a result of this ratio restriction, we are currently restricted from paying dividends, which are

not

cumulative, on our

7.625%

Series A Preferred Stock. We anticipate that we will continue to be restricted from paying dividends for the foreseeable future. Our inability to pay dividends is in accordance with covenant restrictions and will

not

result in a default under our debt instruments or otherwise affect compliance with any of the covenants contained in our debt instruments.

Under the terms of our Debt Instruments, we have the right to make certain redemptions and prepayments and, depending on market conditions and covenant restrictions,

may

do so from time to time. We also continue to actively analyze and evaluate our capital structure and explore transactions to simplify our capital structure, and will seek to do so with the right opportunity. We

may

also continue to make debt purchases and/or exchanges for debt or equity from time to time through tender offers, open market purchases, private transactions, or otherwise, or seek to raise additional debt or equity capital, depending on market conditions and covenant restrictions.

Fiscal

2019

January 15, 2019,

pursuant to the Commitment Letter (defined below) the Company issued

$25.0

million in aggregate principal amount of the Additional

10.5%

2024

Notes (defined below) to the GSO Entities (defined below) at a discount for a purchase price of

$21.3

million in cash. The Additional

10.5%

2024

Notes were issued as additional notes of the same series as the

10.5%

2024

Notes. The Additional

10.5%

2024

Notes and the guarantees are secured by pari passu liens with the

10.5%

2024

Notes on substantially all of the assets of K. Hovnanian and the Notes Guarantors, subject to permitted liens and certain exceptions. See “—Secured Obligations” below.

Fiscal

2018

December 1, 2017,

our

6.0%

Senior Exchangeable Note Units were paid in full, which units consisted of

$53.9

million principal amount of our Senior Exchangeable Notes that matured and the final installment payment of

$2.1

million on our

11.0%

Senior Amortizing Notes.

December 28, 2017,

the Company and K. Hovnanian announced that they had entered into a commitment letter (the “Commitment Letter”) in respect of certain financing transactions with GSO Capital Partners LP (“GSO”) on its own behalf and on behalf of

one

or more funds managed, advised or sub-advised by GSO (collectively, the “GSO Entities”), and had commenced a private exchange offer with respect to the

8.0%

Notes (the “Exchange Offer”).

Pursuant to the Commitment Letter, the GSO Entities agreed to, among other things, provide the principal amount of the following: (i) a senior unsecured term loan credit facility (the “Term Loan Facility”) to be borrowed by K. Hovnanian and guaranteed by the Company and the Notes Guarantors, pursuant to which the GSO Entities committed to lend K. Hovnanian Term Loans consisting of

$132.5

million of initial term loans (the “Initial Term Loans”) on the settlement date of the Exchange Offer for purposes of refinancing K. Hovnanian’s

7.0%

Notes, and up to

$80.0

million of delayed draw term loans (the “Delayed Draw Term Loans”) for purposes of refinancing certain of the

8.0%

Notes, in each case, upon the terms and subject to the conditions set forth therein, and (ii) a senior secured

first

lien credit facility (the “Secured Credit Facility” and together with the Term Loan Facility, the “Credit Facilities”) to be borrowed by K. Hovnanian and guaranteed by the Notes Guarantors, pursuant to which the GSO Entities committed to lend to K. Hovnanian up to

$125.0

million of senior secured

first

priority loans to fund the repayment of K. Hovnanian’s then outstanding secured term loans and for general corporate purposes, upon the terms and subject to the conditions set forth therein. In addition, pursuant to the Commitment Letter, the GSO Entities committed to purchase, and K. Hovnanian agreed to issue and sell, on

January 15, 2019,

$25.0

million in aggregate principal amount of additional

10.5%

2024

Notes (the “Additional

10.5%

2024

Notes”), upon the terms and subject to conditions set forth therein.

January 29, 2018,

K. Hovnanian, the Notes Guarantors, Wilmington Trust, National Association, as administrative agent, and the GSO Entities entered into the Term Loan Facility. K. Hovnanian borrowed the Initial Term Loans on

February 1, 2018

to fund, together with cash on hand, the redemption on

February 1, 2018

of all

$132.5

million aggregate principal amount of

7.0%

Notes, which resulted in a loss on extinguishment of debt of

$0.5

million for the

nine

months ended

July 31, 2018.

May 29, 2018,

K. Hovnanian completed the redemption of

$65.7

million aggregate principal amount of the

8.0%

Notes (representing all of the outstanding

8.0%

Notes, excluding the

$26

million of

Notes held by the Subsidiary Purchaser (as defined below)) with approximately

$70.0

million in borrowings on the Delayed Draw Term Loans under the Unsecured Term Loan Facility (with the completion of this redemption, the remaining committed amounts under the Delayed Draw Term Loans

may

not

be borrowed). This transaction resulted in a loss on extinguishment of debt of

$4.3

million for the

three

months ended

July 31, 2018.

The Term Loans bear interest at a rate equal to

5.0%

per annum and interest is payable in arrears, on the last business day of each fiscal quarter. The Term Loans will mature on

February 1, 2027.

January 29, 2018,

K. Hovnanian, the Notes Guarantors, Wilmington Trust, National Association, as administrative agent, and the GSO Entities entered into the Secured Credit Facility. Availability under the Secured Credit Facility will terminate on

December 28, 2019

and any outstanding Secured Revolving Loans on such date shall convert to secured term loans maturing on

December 28, 2022.

The Secured Revolving Loans and the guarantees thereof are secured (subject to perfection timing requirements under the terms of the Secured Credit Facility) by substantially all of the assets owned by K. Hovnanian and the Notes Guarantors, subject to permitted liens and certain exceptions, on a

first

lien basis relative to the liens securing K. Hovnanian’s

10.0%

2022

Notes and

10.5%

2024

Notes and Additional

10.5%

2024

Notes pursuant to an intercreditor agreement. The collateral securing the Secured Revolving Loans are the same as that securing the

10.0%

2022

Notes and the

10.5%

2024

Notes and Additional

10.5%

2024

Notes. The Secured Revolving Loans bear interest at a rate equal to

10.0%

per annum, and interest will be payable in arrears, on the last business day of each fiscal quarter.

February 1, 2018,

K. Hovnanian accepted all of the

$170.2

million aggregate principal amount of

8.0%

Notes validly tendered and

not

validly withdrawn in the Exchange Offer (representing

72.14%

of the aggregate principal amount of

8.0%

Notes outstanding prior to the Exchange Offer), and in connection therewith, K. Hovnanian issued

$90.6

million aggregate principal amount of its

13.5%

Senior Notes due

2026

(the “New

2026

Notes”) and

$90.1

million aggregate principal amount of its

5.0%

Senior Notes due

2040

(the “New

2040

Notes” and together with the New

2026

Notes, the “New Notes”) under a new indenture. Also, as part of the Exchange Offer, K. Hovnanian at Sunrise Trail III, LLC, a wholly-owned subsidiary of the Company (the “Subsidiary Purchaser”), purchased for

$26.5

million in cash an aggregate of

$26.0

million in principal amount of the

8.0%

Notes (the “Purchased

8.0%

Notes”). The New Notes were issued by K. Hovnanian and guaranteed by the Notes Guarantors, except the Subsidiary Purchaser, which does

not

guarantee the New Notes. The New

2026

Notes bear interest at

13.5%

per annum and mature on

February 1, 2026.

The New

2040

Notes bear interest at

5.0%

per annum and mature on

February 1, 2040.

Interest on the New Notes is payable semi-annually on

February 1

and

August 1

of each year to holders of record at the close of business on

January 15

July 15,

as the case

may

be, immediately preceding each such interest payment date. The Exchange Offer was treated as a substantial modification of debt, and resulted in a loss on extinguishment of debt of

$0.9

million for the

nine

months ended

July 31, 2018.

The New Notes were recorded at fair value (based on management's estimate using available trades for similar debt instruments) on the date of the issuance of the New Notes.

K. Hovnanian’s New

2026

Notes are redeemable in whole or in part at K. Hovnanian’s option at any time prior to

February 1, 2026

at a redemption price equal to

100%

of their principal amount plus an applicable “Make Whole Amount”. At any time and from time to time on or after

February 1, 2019,

K. Hovnanian

may

also redeem some or all of the New

2026

Notes at a redemption price equal to

100.0%

of their principal amount.

K. Hovnanian’s New

2040

Notes are redeemable in whole or in part at K. Hovnanian’s option at any time prior to

February 1, 2040

at a redemption price equal to

100.0%

of their principal amount plus an applicable “Make-Whole Amount”. At any time and from time to time on or after

February 1, 2040,

K. Hovnanian

may

also redeem some or all of the New

2040

Notes at a redemption price equal to

100.0%

of their principal amount.

January 16, 2018,

K. Hovnanian, the Notes Guarantors and Wilmington Trust, National Association, as trustee and collateral agent, executed the Second Supplemental Indenture, dated as of

January 16, 2018,

to the indenture governing the

10.0%

2022

Notes and

10.5%

2024

Notes, dated as of

July 27, 2017 (

as supplemented, amended or otherwise modified), among K. Hovnanian, the Notes Guarantors and Wilmington Trust, National Association, as trustee and collateral agent, giving effect to the proposed amendments to such indenture solely with respect to the

10.5%

2024

Notes, which were obtained in a consent solicitation of the holders of the

10.5%

2024

Notes, and which eliminated the restrictions on K. Hovnanian’s ability to purchase, repurchase, redeem, acquire or retire for value the

2019

Notes and refinancing or replacement indebtedness in respect thereof.

Secured Obligations

The

10.0%

2022

Notes have a maturity of

July 15, 2022

and bear interest at a rate of

10.0%

per annum payable semi-annually on

January 15

and

July 15

of each year, to holders of record at the close of business on

January 1

and

July 1,

as the case

may

be, immediately preceding such interest payment dates. K. Hovnanian

may

also redeem some or all of the

10.0%

2022

Notes at

105.0%

of principal commencing

July 15, 2019,

102.50%

of principal commencing

July 15, 2020

and at

100.0%

of principal commencing

July 15, 2021.

The

10.5%

2024

Notes have a maturity of

July 15, 2024

and bear interest at a rate of

10.5%

per annum payable semi-annually on

January 15

and

July 15

of each year, to holders of record at the close of business on

January 1

and

July 1,

as the case

may

be, immediately preceding such interest payment dates. The

10.5%

2024

Notes are redeemable in whole or in part at our option at any time prior to

July 15, 2020

100.0%

of their principal amount plus an applicable “Make-Whole Amount.” K. Hovnanian

may

also redeem some or all of the

10.5%

2024

Notes at

105.25%

of principal commencing

July 15, 2020,

102.625%

of principal commencing

July 15, 2021

and at

100.0%

of principal commencing

July 15, 2022.

In addition, K. Hovnanian

may

also redeem up to

35.0%

of the aggregate principal amount of the

10.5%

2024

Notes prior to

July 15, 2020

with the net cash proceeds from certain equity offerings at

110.50%

of principal.

All of K. Hovnanian’s obligations under the

10.0%

2022

Notes, the

10.5%

2024

Notes and the Additional

10.5%

2024

Notes are guaranteed by the Notes Guarantors. In addition to pledges of the equity interests in K. Hovnanian and the subsidiary Notes Guarantors which secure the

10.0%

2022

Notes, the

10.5%

2024

Notes and the Additional

10.5%

2024

Notes, the

10.0%

2022

Notes, the

10.5%

2024

Notes and the Additional

10.5%

2024

Notes and the guarantees thereof are also secured in accordance with the terms of the indenture governing such Notes and security documents related thereto by pari passu liens on substantially all of the assets owned by K. Hovnanian and the Notes Guarantors, in each case, subject to permitted liens and certain exceptions (the collateral securing the

10.0%

2022

Notes, the

10.5%

2024

Notes and the Additional

10.5%

2024

Notes is the same as that which secures the Secured Revolving Loans. The liens securing the

10.0%

2022

Notes, the

10.5%

2024

Notes and the Additional

10.5%

2024

Notes rank junior to the liens securing the Secured Revolving Loans and any future secured obligations that are senior in priority with respect to the assets securing the

10.0%

2022

Notes, the

10.5%

2024

Notes and the Additional

10.5%

2024

Notes.

July 31, 2019,

the aggregate book value of the real property that constituted collateral securing the

10.0%

2022

Notes,

10.5%

2024

Notes and the Additional

10.5%

2024

Notes was

$386.7

million, which does

not

include the impact of inventory investments, home deliveries or impairments thereafter and which

may

differ from the value if it were appraised. Cash and cash equivalents collateral that secured the

10.0%

2022

Notes,

10.5%

2024

Notes and the Additional

10.5%

2024

Notes was

$63.1

million as of

July 31, 2019,

which included

$16.5

million of restricted cash collateralizing certain letters of credit. Subsequent to such date, fluctuations as a result of cash uses include general business operations and real estate and other investments along with cash inflow primarily from deliveries.

The

9.50%

2020

Notes have a maturity of

November 15, 2020,

and bear interest at a rate of

9.5%

per annum, payable semi-annually on

February 15

and

August 15

of each year, to holders of record at the close of business on

February 1

and

August 1,

as the case

may

be, immediately preceding such interest payment dates. The

9.50%

2020

Notes are redeemable in whole or in part at our option at any time prior to

November 15, 2018

100%

of their principal amount plus an applicable “Make-Whole Amount.” At any time and from time to time on or after

November 15, 2018,

K. Hovnanian

may

also redeem some or all of the

9.50%

2020

Notes at a redemption price equal to

100%

of their principal amount.

The

5.0%

2021

Notes and the

2.0%

2021

Notes were issued as separate series under an indenture, but have substantially the same terms other than with respect to interest rate and related redemption provisions, and vote together as a single class. The

5.0%

2021

Notes bear interest at a rate of

5.0%

per annum and mature on

November 1, 2021

and the

2.0%

2021

Notes bear interest at a rate of

2.0%

per annum and mature on

November 1, 2021.

Interest on the

2021

Notes is payable semi-annually on

May 1

and

November 1

of each year, to holders of record at the close of business on

April 15

and

October 15,

as the case

may

be, immediately preceding such interest payment dates. The

2021

Notes are redeemable in whole or in part at our option at any time, at

100.0%

of the principal amount plus the greater of

of the principal amount and an applicable “Make-Whole Amount.”

The

9.5%

2020

Notes and the

2021

Notes are guaranteed by the Notes Guarantors and the members of the JV Holdings Secured Group. The guarantees of the JV Holdings Secured Group with respect to the

2021

Notes and the

9.50%

2020

Notes are secured, subject to permitted liens and certain exceptions, by a

first

-priority lien on substantially all of the assets of the members of the JV Holdings Secured Group. As of

July 31, 2019,

the collateral securing the guarantees included (

)

$30.7

million of cash and cash equivalents (subsequent to such date, fluctuations as a result of cash uses include general business operations and real estate and other investments along with cash inflow primarily from deliveries); (

)

$161.0

million aggregate book value of real property of the JV Holdings Secured Group, which does

not

include the impact of inventory investments, home deliveries or impairments thereafter and which

may

differ from the value if it were appraised; and (

) equity interests owned by guarantors that are members of the JV Holdings Secured Group. Members of the JV Holdings Secured Group also own equity in joint ventures, either directly or indirectly through ownership of joint venture holding companies, with a book value of

$182.3

million as of

July 31, 2019;

this equity is

not

pledged to secure, and is

not

collateral for, the

9.50%

2020

Notes or the

2021

Notes. Members of the JV Holdings Secured Group are “unrestricted subsidiaries” under K. Hovnanian's other senior secured notes and senior notes and Credit Facilities, and thus have

not

guaranteed such indebtedness.

Other

We have certain stand–alone cash collateralized letter of credit agreements and facilities under which there was a total of

$15.9

million and

$12.5

million letters of credit outstanding at

July 31, 2019

and

October 31, 2018,

respectively. These agreements and facilities require us to maintain specified amounts of cash as collateral in segregated accounts to support the letters of credit issued thereunder, which will affect the amount of cash we have available for other uses. At

July 31, 2019

and

October 31, 2018,

the amount of cash collateral in these segregated accounts was

$16.5

million and

$12.7

million, respectively, which is reflected in “Restricted cash and cash equivalents” on the Condensed Consolidated Balance Sheets.

Note 12 - Per Share Calculation

9 Months Ended

Jul. 31, 2019

Earnings Per Share [Text Block]

12.	Per Share Calculation

Basic earnings per share is computed by dividing net income (loss) (the “numerator”) by the weighted-average number of common shares outstanding, adjusted for nonvested shares of restricted stock (the “denominator”) for the period. Computing diluted earnings per share is similar to computing basic earnings per share, except that the denominator is increased to include the dilutive effects of options and nonvested shares of restricted stock. Any options that have an exercise price greater than the average market price are considered to be anti-dilutive and are excluded from the diluted earnings per share calculation.

All outstanding nonvested shares that contain nonforfeitable rights to dividends or dividend equivalents that participate in undistributed earnings with common stock are considered participating securities and are included in computing earnings per share pursuant to the

two

-class method. The

two

-class method is an earnings allocation formula that determines earnings per share for each class of common stock and participating securities according to dividends or dividend equivalents and participation rights in undistributed earnings in periods when we have net income. The Company’s restricted common stock (“nonvested shares”) are considered participating securities.

Incremental shares attributed to nonvested stock and outstanding options to purchase common stock of

0.2

million and

0.3

million for the

three

and

nine

months ended

July 31, 2019,

respectively, and

0.1

million for both the

three

and

nine

months ended

July 31, 2018,

respectively, which were excluded from the computation of diluted earnings per share because we had a net loss for the period. Also, for the

nine

months ended

July 31, 2018,

thousand shares of common stock issuable upon the exchange of our senior exchangeable notes (which were issued in fiscal

2012

and matured and were fully paid in

December 2017)

were excluded from the computation of diluted earnings per share because the Company had a net loss for the period.

In addition, shares related to out-of-the money stock options that could potentially dilute basic earnings per share in the future that were

not

included in the computation of diluted earnings per share were

0.2

million for both the

three

and

nine

months ended

July 31, 2019,

respectively, and

0.3

million and

0.2

million for the

three

and

nine

months ended

July 31, 2018,

respectively, because to do so would have been anti-dilutive for the periods presented.

Note 13 - Preferred Stock

9 Months Ended

Jul. 31, 2019

Preferred Stock [Text Block]

13.	Preferred Stock

July

12,

2005,

we issued

5,600

shares of

7.625%

Series A Preferred Stock, with a liquidation preference of

$25,000

per share. Dividends on the Series A Preferred Stock are

not

cumulative and are payable at an annual rate of

7.625%.

The Series A Preferred Stock is

not

convertible into the Company’s common stock and is redeemable in whole or in part at our option at the liquidation preference of the shares. The Series A Preferred Stock is traded as depositary shares, with each depositary share representing

1/1000th

of a share of Series A Preferred Stock. The depositary shares are listed on the NASDAQ Global Market under the symbol “HOVNP.” During the

three

and

nine

months ended

July 31, 2019

and

2018,

we did

not

pay any dividends on the Series A Preferred Stock due to covenant restrictions in our debt instruments. We anticipate that we will continue to be restricted from paying dividends, which are

not

cumulative, for the foreseeable future.

Note 14 - Common Stock

9 Months Ended

Jul. 31, 2019

Stockholders' Equity Note Disclosure [Text Block]

14.	Common Stock

Each share of Class A Common Stock entitles its holder to

one

vote per share, and each share of Class B Common Stock generally entitles its holder to

ten

votes per share. The amount of any regular cash dividend payable on a share of Class A Common Stock will be an amount equal to

110%

of the corresponding regular cash dividend payable on a share of Class B Common Stock. If a shareholder desires to sell shares of Class B Common Stock, such stock must be converted into shares of Class A Common Stock at a

one

conversion rate.

March 19, 2019,

the Company's stockholders approved at an annual meeting an amendment to our Certificate of Incorporation to effect a reverse stock split (the “Reverse Stock Split”) of the Company’s common stock at a ratio of

-for-

25,

and a corresponding decrease in the number of authorized shares of the common stock. Following the stockholders' approval, the Board of Directors, on

March 19, 2019,

determined to effectuate the Reverse Stock Split, which became effective on

March 29, 2019,

and every

issued shares (including treasury shares) of Class A Common Stock, par value

$0.01

per share (the “Class A Common Stock”), were combined into

one

share of Class A Common Stock, and every

issued shares (including treasury shares) of Class B Common Stock, par value

$0.01

per share (the “Class B Common Stock”), were combined into

one

share of Class B Common Stock.

fractional shares were issued in connection with the Reverse Stock Split. All share and per share amounts have been retroactively adjusted to reflect the reverse stock split.

August

2008,

our Board of Directors adopted a shareholder rights plan (the “Rights Plan”), which was amended on

January 11, 2018,

designed to preserve shareholder value and the value of certain tax assets primarily associated with net operating loss (NOL) carryforwards and built-in losses under Section

382

of the Internal Revenue Code. Our ability to use NOLs and built-in losses would be limited if there was an “ownership change” under Section

382.

This would occur if shareholders owning (or deemed under Section

382

to own)

or more of our stock increase their collective ownership of the aggregate amount of our outstanding shares by more than

percentage points over a defined period of time. The Rights Plan was adopted to reduce the likelihood of an “ownership change” occurring as defined by Section

382.

Under the Rights Plan,

one

right was distributed for each share of Class A Common Stock and Class B Common Stock outstanding as of the close of business on

August

15,

2008.

Effective

August

15,

2008,

if any person or group acquires

4.9%

or more of the outstanding shares of Class A Common Stock without the approval of the Board of Directors, there would be a triggering event causing significant dilution in the voting power of such person or group. However, existing stockholders who owned, at the time of the Rights Plan’s initial adoption on

August 4, 2008,

4.9%

or more of the outstanding shares of Class A Common Stock will trigger a dilutive event only if they acquire additional shares. The approval of the Board of Directors’ decision to adopt the Rights Plan

may

be terminated by the Board of Directors at any time, prior to the Rights being triggered. The Rights Plan will continue in effect until

August

14,

2021,

unless it expires earlier in accordance with its terms. The approval of the Board of Directors’ decision to initially adopt the Rights Plan and the amendment thereto were approved by shareholders. Our stockholders also approved an amendment to our Certificate of Incorporation to restrict certain transfers of Class A Common Stock in order to preserve the tax treatment of our NOLs and built-in losses under Section

382

of the Internal Revenue Code. Subject to certain exceptions pertaining to pre-existing

stockholders and Class B stockholders, the transfer restrictions in our Restated Certificate of Incorporation generally restrict any direct or indirect transfer (such as transfers of our stock that result from the transfer of interests in other entities that own our stock) if the effect would be to (i) increase the direct or indirect ownership of our stock by any person (or public group) from less than

or more of our common stock; (ii) increase the percentage of our common stock owned directly or indirectly by a person (or public group) owning or deemed to own

or more of our common stock; or (iii) create a new “public group” (as defined in the applicable United States Treasury regulations). Transfers included under the transfer restrictions include sales to persons (or public groups) whose resulting percentage ownership (direct or indirect) of common stock would exceed the

thresholds discussed above, or to persons whose direct or indirect ownership of common stock would by attribution cause another person (or public group) to exceed such threshold.

July 3, 2001,

our Board of Directors authorized a stock repurchase program to purchase up to

0.2

million shares of Class A Common Stock. There were

shares purchased during the

three

and

nine

months ended

July 31, 2019.

As of

July 31, 2019,

the maximum number of shares of Class A Common Stock that

may

yet be purchased under this program is

thousand.

Note 15 - Income Taxes

9 Months Ended

Jul. 31, 2019

Income Tax Disclosure [Text Block]

15.	Income Taxes

The total income tax expense for the

three

and

nine

months ended

July 31, 2019

was

$0.5

million and

$1.2

million, respectively, and

$1.1

million and

$1.7

million, respectively, for the same periods of the prior year. For both the

three

and

nine

months ended

July 31, 2019

and the

three

and

nine

months ended

July 31, 2018,

the total income tax expense was primarily related to state tax expense from income generated that was

not

offset by tax benefits in states where we fully reserve the tax benefit from net operating losses.

Our federal net operating losses of

$1.6

billion expire between

2028

and

2037,

and

$23.5

million have an indefinite carryforward period. Of our

$2.5

billion of state NOLs,

$145.3

million expire between

2019

through

2023;

$691.2

million expire between

2024

through

2028;

$1.3

billion expire between

2029

through

2033;

$316.1

million expire between

2034

through

2038;

and

$43.2

million have an indefinite carryforward period

Deferred federal and state income tax assets (“DTAs”) primarily represent the deferred tax benefits arising from NOL carryforwards and temporary differences between book and tax income which will be recognized in future years as an offset against future taxable income. If the combination of future years’ income (or loss) and the reversal of the timing differences results in a loss, such losses can be carried forward to future years. In accordance with ASC

740,

we evaluate our DTAs quarterly to determine if valuation allowances are required. ASC

740

requires that companies assess whether valuation allowances should be established based on the consideration of all available evidence using a “more likely than

not”

standard.

As of

July 31, 2019

we considered all available positive and negative evidence to determine whether, based on the weight of that evidence, our valuation allowance for our DTAs was appropriate in accordance with ASC

740

Listed below, in order of the weighting of each factor, is the available positive and negative evidence that we considered in determining that it is more likely than

not

that all of our DTAs will

not

be realized. In analyzing these factors, overall the negative evidence, both objective and subjective, outweighed the positive evidence. Based on this analysis, we determined that the current valuation allowance for deferred taxes of

$644.6

million as of

July 31, 2019,

which fully reserves for our DTAs, is appropriate.

Fiscal

2017

financial results, especially the

$50.2

million pre-tax loss in the

third

quarter of fiscal

2017

primarily from the

$42.3

million loss on extinguishment of debt during the quarter, that put us in a cumulative

three

-year pre-tax loss position as of

July 31, 2017.

We are still in a cumulative

three

-year loss position as of

July 31, 2019.

Per ASC

740,

cumulative losses are

one

of the most objectively verifiable forms of negative evidence. (Negative Objective Evidence)

In the

third

quarter of fiscal

2017

and

second

and

third

quarters of fiscal

2018,

we completed debt refinancing/restructuring transactions which, by extending our debt maturities, will enable us to allocate cash to invest in new communities and grow our community count to get back to sustained profitability. (Positive Objective Evidence)

Recent financial results of

$48.1

million pre-tax income in the

fourth

quarter of fiscal

2018

and

$8.1

million pre-tax income for the year ended

October 31, 2018. (

Positive Objective Evidence)

Our net contracts per community and our absolute net contracts increased in the

third

quarter of fiscal

2019

compared to the

third

quarter of

2018.

This is a reversal of the negative trend we had seen in the

second

quarter of

2019.

(Positive Objective Evidence)

We incurred pre-tax losses during the housing market decline and the slower than expected housing market recovery. (Negative Objective Evidence)

We exited

two

geographic markets in fiscal

2016

and completed the wind down of operations in

two

other markets in fiscal

2018,

that have historically had losses. By exiting these underperforming markets, the Company will be able to redeploy capital to better performing markets, which over time should improve our profitability. (Positive Subjective Evidence)

The historical cyclicality of the U.S. housing market, a more restrictive mortgage lending environment compared to before the housing downturn, the uncertainty of the overall US economy and government policies and consumer confidence, all or any of which could continue to hamper a sustained, stronger recovery of the housing market. (Negative Subjective Evidence)

Note 16 - Operating and Reporting Segments

9 Months Ended

Jul. 31, 2019

Segment Reporting Disclosure [Text Block]

16.	Operating and Reporting Segments

HEI’s operating segments are components of the Company’s business for which discrete financial information is available and reviewed regularly by the chief operating decision maker, our Chief Executive Officer, to evaluate performance and make operating decisions. Based on this criteria, each of the Company's communities qualifies as an operating segment, and therefore, it is impractical to provide segment disclosures for this many segments. As such, HEI has aggregated the homebuilding operating segments into

six

reportable segments.

HEI’s homebuilding operating segments are aggregated into reportable segments based primarily upon geographic proximity, similar regulatory environments, land acquisition characteristics and similar methods used to construct and sell homes. HEI’s reportable segments consist of the following

six

homebuilding segments and a financial services segment noted below.

Homebuilding:

	( 1 )	Northeast (New Jersey and Pennsylvania)
	( 2 )	Mid-Atlantic (Delaware, Maryland, Virginia, Washington D.C. and West Virginia)
	( 3 )	Midwest (Illinois and Ohio)
	( 4 )	Southeast (Florida, Georgia and South Carolina)
	( 5 )	Southwest (Arizona and Texas)
	( 6 )	West (California)

Financial Services

Homebuilding segment operations primarily include the sale and construction of single-family attached and detached homes, attached townhomes and condominiums, urban infill and active lifestyle homes in planned residential developments. In addition, from time to time, operations of the homebuilding segments include sales of land. Financial Services segment operations include mortgage banking and title services provided to the homebuilding operations’ customers. Our financial services subsidiaries do

not

typically retain or service mortgages that we originate but rather sell the mortgages and related servicing rights to investors.

Corporate and unallocated primarily represents operations at our headquarters in New Jersey. This includes our executive offices, information services, human resources, corporate accounting, training, treasury, process redesign, internal audit, construction services, and administration of insurance, quality and safety. It also includes interest income and interest expense resulting from interest incurred that cannot be capitalized in inventory in the Homebuilding segments, as well as the gains or losses on extinguishment of debt from any debt repurchases or exchanges.

Evaluation of segment performance is based primarily on operating earnings from continuing operations before provision for income taxes (“Income (loss) before income taxes”). Income (loss) before income taxes for the Homebuilding segments consist of revenues generated from the sales of homes and land, income (loss) from unconsolidated entities, management fees and other income, less the cost of homes and land sold, selling, general and administrative expenses and interest expense. Income (loss) before income taxes for the Financial Services segment consist of revenues generated from mortgage financing, title insurance and closing services, less the cost of such services and selling, general and administrative expenses incurred by the Financial Services segment.

Operational results of each segment are

not

necessarily indicative of the results that would have occurred had the segment been an independent stand-alone entity during the periods presented.

Financial information relating to HEI’s segment operations was as follows:

	Three Months Ended July 31,				Nine Months Ended July 31,
(In thousands)	2019		2018		2019		2018

Revenues:
Northeast	$20,696		$26,705		$53,696		$90,675
Mid-Atlantic	86,948		79,712		221,225		255,169
Midwest	47,858		45,659		135,716		129,176
Southeast	50,233		47,498		143,606		165,067
Southwest	152,831		157,514		414,880		444,966
West	110,274		86,105		298,058		249,253
Total homebuilding	468,840		443,193		1,267,181		1,334,306
Financial services	12,764		13,009		34,679		36,951
Corporate and unallocated (1)	437		510		1,466		5,165
Total revenues	$482,041		$456,712		$1,303,326		$1,376,422

(Loss) income before income taxes:
Northeast	$283		$8,995		$6,287		$5,254
Mid-Atlantic	5,111		3,401		5,497		12,053
Midwest	191		66		(1,252	)	(3,388	)
Southeast	(2,198	)	(4,752	)	(9,259	)	(11,699	)
Southwest	8,598		12,461		15,270		28,019
West	6,584		14,442		28,599		29,681
Homebuilding income before income taxes	18,569		34,613		45,142		59,920
Financial services	3,837		4,023		8,600		10,826
Corporate and unallocated (1)	(29,470	)	(38,558	)	(92,824	)	(110,717	)
(Loss) income before income taxes	$(7,064	)	$78		$(39,082	)	$(39,971	)

(

) Corporate and unallocated for the

three

months ended

July 31, 2019

included corporate general and administrative costs of

$15.0

million, interest expense of

$14.7

million (a component of Other interest on our Condensed Consolidated Statements of Operations), $(

0.3

) million of other income and expenses primarily related to interest income and stock compensation. Corporate and unallocated for the

nine

months ended

July 31, 2019

included corporate general and administrative costs of

$48.8

million, interest expense of

$45.4

million (a component of Other interest on our Condensed Consolidated Statements of Operations), and $(

1.4

) million of other income and expenses. Corporate and unallocated for the

three

months ended

July 31, 2018

included corporate general and administrative costs of

$16.4

million, interest expense of

$20.2

million (a component of Other interest on our Condensed Consolidated Statements of Operations), loss on extinguishment of debt of

$4.3

million and $(

2.3

) million of other income and expenses primarily related to an adjustment to our insurance reserves, resulting from a legal settlement. Corporate and unallocated for the

nine

months ended

July 31, 2018

included corporate general and administrative costs of

$51.7

million, interest expense of

$59.7

million (a component of Other interest on our Condensed Consolidated Statements of Operations), loss on extinguishment of debt of

$5.7

million and $(

6.4

) million of other income and expenses primarily related to interest income and gain on sale of our corporate headquarters building.

(In thousands)	July 31, 2019	October 31, 2018

Assets:
Northeast	$189,299	$152,607
Mid-Atlantic	261,728	217,807
Midwest	121,664	85,398
Southeast	296,046	246,497
Southwest	391,536	320,452
West	299,037	244,886
Total homebuilding	1,559,310	1,267,647
Financial services	109,164	164,880
Corporate and unallocated	126,788	229,515
Total assets	$1,795,262	$1,662,042

Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures

9 Months Ended

Jul. 31, 2019

Equity Method Investments and Joint Ventures Disclosure [Text Block]

17.	Investments in Unconsolidated Homebuilding and Land Development Joint Ventures

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 home buyers. 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

first

quarter of fiscal

2018,

we acquired the remaining assets of

one

of our joint ventures, resulting in a

$13.0

million reduction in our investment in the joint venture and a corresponding increase to inventory.

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)	July 31, 2019
	Homebuilding		Land Development		Total
Assets:
Cash and cash equivalents	$93,959		$2,139		$96,098
Inventories	450,628		8,791		459,419
Other assets	25,711		-		25,711
Total assets	$570,298		$10,930		$581,228

Liabilities and equity:
Accounts payable and accrued liabilities	$79,941		$862		$80,803
Notes payable	209,653		-		209,653
Total liabilities	289,594		862		290,456
Equity of:
Hovnanian Enterprises, Inc.	125,346		4,876		130,222
Others	155,358		5,192		160,550
Total equity	280,704		10,068		290,772
Total liabilities and equity	$570,298		$10,930		$581,228
Debt to capitalization ratio	43	%	0	%	42	%

(Dollars in thousands)	October 31, 2018
	Homebuilding		Land Development		Total
Assets:
Cash and cash equivalents	$50,010		$2,275		$52,285
Inventories	506,650		8,004		514,654
Other assets	35,105		-		35,105
Total assets	$591,765		$10,279		$602,044

Liabilities and equity:
Accounts payable and accrued liabilities	$79,108		$746		$79,854
Notes payable	236,665		-		236,665
Total liabilities	315,773		746		316,519
Equity of:
Hovnanian Enterprises, Inc.	114,950		4,369		119,319
Others	161,042		5,164		166,206
Total equity	275,992		9,533		285,525
Total liabilities and equity	$591,765		$10,279		$602,044
Debt to capitalization ratio	46	%	0	%	45	%

As of

July 31, 2019

and

October 31, 2018,

we had advances and a note receivable outstanding of

$3.9

million and

$4.6

million, respectively, to these unconsolidated joint ventures. These amounts were included in the “Accounts payable and accrued liabilities” balances in the tables above. On our Condensed Consolidated Balance Sheets, our “Investments in and advances to unconsolidated joint ventures” amounted to

$134.1

million and

$123.7

million at

July 31, 2019

and

October 31, 2018,

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 joint venture investments are recorded at fair value while impairments recorded in the joint venture are recorded when undiscounted cash flows trigger the impairment. During the

nine

months ended

July 31, 2019,

we recorded a

$0.9

million write down in our investment in

one

of our joint ventures in the West. During the

nine

months ended

July 31, 2018,

we did

not

write-down any of our joint venture investments; however,

one

of our joint ventures in the Northeast recorded an asset impairment. We recorded our proportionate share of this impairment charge of

$0.7

million as part of our share of the net loss of the venture.

	For the Three Months Ended July 31, 2019
(In thousands)	Homebuilding		Land Development		Total

Revenues	$121,156		$1,383		$122,539
Cost of sales and expenses	(112,749	)	(846	)	(113,595	)
Joint venture net income	$8,407		$537		$8,944
Our share of net income	$3,578		$268		$3,846

	For the Three Months Ended July 31, 2018
(In thousands)	Homebuilding		Land Development		Total

Revenues	$194,539		$1,367		$195,906
Cost of sales and expenses	(173,073	)	(1,057	)	(174,130	)
Joint venture net income	$21,466		$310		$21,776
Our share of net income	$10,705		$155		$10,860

	For the Nine Months Ended July 31, 2019
(In thousands)	Homebuilding		Land Development		Total

Revenues	$342,669		$4,979		$347,648
Cost of sales and expenses	(320,080	)	(3,963	)	(324,043	)
Joint venture net income	$22,589		$1,016		$23,605
Our share of net income	$20,202		$508		$20,710

	For the Nine Months Ended July 31, 2018
(In thousands)	Homebuilding		Land Development		Total

Revenues	$350,035		$4,985		$355,020
Cost of sales and expenses	(347,439	)	(4,338	)	(351,777	)
Joint venture net income	$2,596		647		$3,243
Our share of net income	$6,802		$323		$7,125

“Income (loss) 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 income or loss of these unconsolidated homebuilding and land development joint ventures. The difference between our share of the income or loss from these unconsolidated joint ventures in the tables above compared to the Condensed Consolidated Statements of Operations is due primarily to 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. For the

nine

months ended

July 31, 2019,

the difference can also be attributed to a return of capital from a joint venture in which we had previously written off our investment. To compensate us for the administrative services we provide as the manager of certain joint ventures, we receive a management fee based on a percentage of the applicable joint venture’s revenues. These management fees, which totaled

$4.1

million and

$7.2

million for the

three

months ended

July 31, 2019

and

2018,

respectively, and

$11.9

million and

$12.1

million for the

nine

months ended

July 31, 2019

and

2018,

respectively, are recorded in “Homebuilding: Selling, general and administrative” on the Condensed Consolidated Statements of Operations.

In determining whether or

not

we must consolidate joint ventures that we manage, 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. For some of our joint ventures, obtaining financing was challenging, therefore, some of our joint ventures are capitalized only with equity. The total debt to capitalization ratio of all our joint ventures is currently

42%.

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

“Consolidation – Overall” due to the returns being capped to the equity holders; however, in these instances, we have determined that we are

not

the primary beneficiary, and therefore we do

not

consolidate these entities.

Note 18 - Recent Accounting Pronouncements

9 Months Ended

Jul. 31, 2019

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

18.	Recent Accounting Pronouncements

May 2014,

the Financial Accounting Standards Board (“FASB”) issued ASU

No.

2014

09,

“Revenue from Contracts with Customers” (Topic

606

), (“ASU

2014

09”

). ASU

2014

requires entities to recognize revenue that represents the transfer of promised goods or services to customers in an amount equivalent to the consideration to which the entity expects to be entitled to in exchange for those goods or services. The following steps should be applied to determine this amount: (

) identify the contract(s) with a customer; (

) identify the performance obligations in the contract; (

) determine the transaction price; (

) allocate the transaction price to the performance obligations in the contract; and (

) recognize revenue when (or as) the entity satisfies a performance obligation. ASU

2014

supersedes the revenue recognition requirements in ASC

605,

“Revenue Recognition,” and most industry-specific guidance in the Accounting Standards Codification. The FASB has also issued a number of updates to this standard. The standard was effective for us for annual and interim periods beginning

November 1, 2018

and we applied the modified retrospective method of adoption. The implementation did

not

result in any significant changes to our business processes, systems, or internal controls, or have a material impact on our Condensed Consolidated Financial Statements.

February 2016,

the FASB issued ASU

No.

2016

02,

“Leases (Topic

842

)” (“ASU

2016

02”

), which provides guidance for accounting for leases. ASU

2016

requires lessees to classify leases as either finance or operating leases and to record a right-of-use asset and a lease liability for all leases with a term greater than

months regardless of the lease classification. The lease classification will determine whether the lease expense is recognized based on an effective interest rate method or on a straight line basis over the term of the lease. Accounting for lessors remains largely unchanged from current GAAP. ASU

2016

is effective for the Company beginning

November 1, 2019.

Early adoption is permitted. In

July 2018,

the FASB issued ASU

No.

2018

“Codification Improvements to Topic

842,

Leases” (“ASU

2018

10”

) and ASU

No.

2018

“Leases (Topic

842

) Targeted Improvements” (“ASU

2018

11”

). ASU

2018

provides certain amendments that affect narrow aspects of the guidance issued in ASU

2016

02.

ASU

2018

allows all entities adopting ASU

2016

to choose an additional (and optional) transition method of adoption, under which an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. ASU

2018

also allows lessors to

not

separate nonlease components from the associated lease component if certain conditions are met. We are currently evaluating both the method and the impact of adopting this guidance on our Condensed Consolidated Financial Statements.

July 2018,

the FASB issued ASU

No.

2018

09,

“Codification Improvements” (“ASU

2018

09”

). ASU

2018

provides amendments to a wide variety of topics in the FASB’s Accounting Standards Codification, which applies to all reporting entities within the scope of the affected accounting guidance. The transition and effective date guidance are based on the facts and circumstances of each amendment. Some of the amendments in ASU

2018

not

require transition guidance and were effective upon issuance of ASU

2018

09.

However, many of the amendments do have transition guidance with effective dates for annual periods beginning after

December 15, 2018.

We are currently evaluating the potential impact of adopting the applicable guidance on our Condensed Consolidated Financial Statements.

August 2018,

the FASB issued ASU

No.

2018

13,

“Fair Value Measurement (Topic

820

) - Disclosure Framework” (“ASU

2018

13”

), which improves the disclosure requirements for fair value measurements. ASU

2018

is effective for us beginning

November

2020.

Early adoption is permitted for any removed or modified disclosures. We are currently evaluating the potential impact of adopting this guidance on our Condensed Consolidated Financial Statements.

August 2018,

the FASB issued ASU

No.

2018

“Intangibles-Goodwill and Other-Internal-Use Software (Subtopic

350

): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract” (“ASU

2018

15”

). ASU

2018

aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. ASU

2018

is effective for us beginning

November 1, 2020.

Early adoption is permitted. We are currently evaluating the potential impact of adopting this guidance on our Condensed Consolidated Financial Statements.

Note 19 - Fair Value of Financial Instruments

9 Months Ended

Jul. 31, 2019

Fair Value Disclosures [Text Block]

19.	Fair Value of Financial Instruments

ASC

820,

“Fair Value Measurements and Disclosures,” provides a framework for measuring fair value, expands disclosures about fair-value measurements and establishes a fair-value hierarchy which prioritizes the inputs used in measuring fair value summarized as follows:

Level

Fair value determined based on quoted prices in active markets for identical assets.

Level

Fair value determined using significant other observable inputs.

Level

Fair value determined using significant unobservable inputs.

Our financial instruments measured at fair value on a recurring basis are summarized below:

(In thousands)	Fair Value Hierarchy	Fair Value at July 31, 2019		Fair Value at October 31, 2018

Mortgage loans held for sale (1)	Level 2	$83,846		$130,709
Interest rate lock commitments	Level 2	42		(28	)
Forward contracts	Level 2	(36	)	13
Total		$83,852		$130,694

(

) The aggregate unpaid principal balance was

$81.4

million and

$127.6

million at

July 31, 2019

and

October 31, 2018,

respectively.

We elected the fair value option for our loans held for sale, in accordance with ASC

825,

“Financial Instruments,” which permits us to measure financial instruments at fair value on a contract-by-contract basis. Management believes that the election of the fair value option for loans held for sale improves financial reporting by mitigating volatility in reported earnings caused by measuring the fair value of the loans and the derivative instruments used to economically hedge them without having to apply complex hedge accounting provisions. Fair value of loans held for sale is based on independent quoted market prices, where available, or the prices for other mortgage loans with similar characteristics.

The Financial Services segment had a pipeline of loan applications in process of

$602.5

million at

July 31, 2019.

Loans in process for which interest rates were committed to the borrowers totaled

$51.6

million as of

July 31, 2019.

Substantially all of these commitments were for periods of

days or less. Since a portion of these commitments is expected to expire without being exercised by the borrowers, the total commitments do

not

necessarily represent future cash requirements.

The Financial Services segment uses investor commitments and forward sales of mandatory MBS to hedge its mortgage-related interest rate exposure. These instruments involve, to varying degrees, elements of credit and interest rate risk. Credit risk is managed by entering into MBS forward commitments, option contracts with investment banks, federally regulated bank affiliates and loan sales transactions with permanent investors meeting the segment’s credit standards. The segment’s risk, in the event of default by the purchaser, is the difference between the contract price and fair value of the MBS forward commitments and option contracts. At

July 31, 2019,

the segment had open commitments amounting to

$18.0

million to sell MBS with varying settlement dates through

August 21, 2019.

The assets accounted for using the fair value option are initially measured at fair value. Gains and losses from initial measurement and subsequent changes in fair value are recognized in the Condensed Consolidated Financial Statements in “Revenues: Financial services.” The fair values that are included in income are shown, by financial instrument and financial statement line item, below:

	Three Months Ended July 31, 2019
(In thousands)	Mortgage Loans Held For Sale		Interest Rate Lock Commitments	Forward Contracts

Fair value included in net loss all reflected in financial services revenues	$(477	)	$25	$(57	)

	Three Months Ended July 31, 2018
(In thousands)	Mortgage Loans Held For Sale		Interest Rate Lock Commitments	Forward Contracts

Fair value included in net loss all reflected in financial services revenues	$(315	)	$53	$(41	)

	Nine Months Ended July 31, 2019
(In thousands)	Mortgage Loans Held For Sale	Interest Rate Lock Commitments	Forward Contracts

Fair value included in net loss all reflected in financial services revenues	$2,465	$42	$(36	)

	Nine Months Ended July 31, 2018
(In thousands)	Mortgage Loans Held For Sale	Interest Rate Lock Commitments		Forward Contracts

Fair value included in net loss all reflected in financial services revenues	$2,226	$(17	)	$83

The Company’s assets measured at fair value on a nonrecurring basis are those assets for which the Company has recorded valuation adjustments and write-offs during the

three

and

nine

months ended

July 31, 2019

and

2018.

The assets measured at fair value on a nonrecurring basis are all within the Company’s Homebuilding operations and are summarized below:

Nonfinancial Assets

		Three Months Ended
		July 31, 2019
(In thousands)	Fair Value Hierarchy	Pre-Impairment Amount	Total Losses		Fair Value

Sold and unsold homes and lots under development	Level 3	$1,218	$(118	)	$1,100
Land and land options held for future development or sale	Level 3	$-	$-		$-

		Three Months Ended
		July 31, 2018
(In thousands)	Fair Value Hierarchy	Pre-Impairment Amount	Total Losses	Fair Value

Sold and unsold homes and lots under development	Level 3	$-	$-	$-
Land and land options held for future development or sale	Level 3	$-	$-	$-

		Nine Months Ended
		July 31, 2019
(In thousands)	Fair Value Hierarchy	Pre-Impairment Amount	Total Losses		Fair Value

Sold and unsold homes and lots under development	Level 3	$5,124	$(1,085	)	$4,039
Land and land options held for future development or sale	Level 3	$6,302	$(43	)	$6,259

		Nine Months Ended
		July 31, 2018
(In thousands)	Fair Value Hierarchy	Pre-Impairment Amount	Total Losses		Fair Value

Sold and unsold homes and lots under development	Level 3	$11,170	$(2,117	)	$9,053
Land and land options held for future development or sale	Level 3	$-	$-		$-

We record impairment losses on inventories related to communities under development and held for future development when events and circumstances indicate that they

may

be impaired and the undiscounted cash flows estimated to be generated by those assets are less than their related carrying amounts. If the expected undiscounted cash flows are less than the carrying amount, then the community is written down to its fair value. We estimate the fair value of each impaired community by determining the present value of its estimated future cash flows at a discount rate commensurate with the risk of the respective community. Should the estimates or expectations used in determining cash flows or fair value decrease or differ from current estimates in the future, we

may

be required to recognize additional impairments. We recorded inventory impairments, which are included in the Condensed Consolidated Statements of Operations as “Inventory impairment loss and land option write-offs” and deducted from inventory, of

$0.1

million and

$1.1

million for the

three

and

nine

months ended

July 31, 2019,

and

$2.1

million for the

nine

months ended

July 31, 2018.

We did

not

record any inventory impairments for the

three

months ended

July 31, 2018.

See Note

for further detail of the communities evaluated for impairment.

The fair value of our cash equivalents, restricted cash and cash equivalents and customer’s deposits approximates their carrying amount, based on Level

inputs.

The fair value of each series of our Notes are listed below. Level

measurements are estimated based on recent trades or quoted market prices for the same issues or based on recent trades or quoted market prices for our debt of similar security and maturity to achieve comparable yields. Level

measurements are estimated based on

third

-party broker quotes or management’s estimate of the fair value based on available trades for similar debt instruments.

Fair Value as of

July 31, 2019

(In thousands)	Level 1	Level 2	Level 3	Total
Senior Secured Notes:
9.5% Senior Secured Notes due November 15, 2020	$-	$-	$73,500	$73,500
2.0% Senior Secured Notes due November 1, 2021	-	-	47,351	47,351
5.0% Senior Secured Notes due November 1, 2021	-	135,558	-	135,558
10.0% Senior Secured Notes due July 15, 2022	-	376,200	-	376,200
10.5% Senior Secured Notes due July 15, 2024	-	340,523	-	340,523
Senior Notes:
13.5% Senior Notes due February 1, 2026	-	-	81,114	81,114
5.0% Senior Notes due February 1, 2040	-	-	32,669	32,669
Senior Unsecured Term Loan Credit Facility due February 1, 2027	-	-	103,442	103,442
Total fair value	$-	$852,281	$338,076	$1,190,357

Fair Value as of

October 31, 2018

(In thousands)	Level 1	Level 2	Level 3	Total
Senior Secured Notes:
9.5% Senior Secured Notes due November 15, 2020	$-	$-	$74,250	$74,250
2.0% Senior Secured Notes due November 1, 2021	-	-	40,434	40,434
5.0% Senior Secured Notes due November 1, 2021	-	124,781	-	124,781
10.0% Senior Secured Notes due July 15, 2022	-	424,670	-	424,670
10.5% Senior Secured Notes due July 15, 2024	-	366,720	-	366,720
Senior Notes:
13.5% Senior Notes due February 1, 2026	-	88,148	-	88,148
5.0% Senior Notes due February 1, 2040	-	35,628	-	35,628
Senior Unsecured Term Loan Credit Facility due February 1, 2027	-	-	114,328	114,328
Total fair value	$-	$1,039,947	$229,012	$1,268,959

The Senior Secured Revolving Credit Facility is

not

included in the above tables because there were

borrowings outstanding thereunder as of

July 31, 2019

and

October 31, 2018.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Note 20 - Transactions With Related Parties

9 Months Ended

Jul. 31, 2019

20.	Transactions with Related Parties

During the

three

months ended

July 31, 2019

and

2018,

an engineering firm owned by Tavit Najarian, a relative of Ara K. Hovnanian, our Chairman of the Board of Directors and our Chief Executive Officer, provided services to the Company totaling

$0.1

million and

$0.2

million, respectively. During the

nine

months ended

July 31, 2019

and

2018,

the services provided by such engineering firm to the Company totaled

$0.6

million and

$0.5

million, respectively. Neither the Company nor Mr. Hovnanian has a financial interest in the relative’s company from whom the services were provided.

Significant Accounting Policies (Policies)	9 Months Ended
Significant Accounting Policies (Policies)	Jul. 31, 2019
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and with the instructions to Form 10 -Q and Article 10 of Regulation S- X and accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. These Condensed Consolidated Financial Statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10 -K for the fiscal year ended October 31, 2018. In the opinion of management, all adjustments for interim periods presented have been made, which include normal recurring accruals and deferrals necessary for a fair presentation of our condensed consolidated financial position, results of operations and cash flows. The preparation of Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and these differences could have a significant impact on the Condensed Consolidated Financial Statements. Results for interim periods are not necessarily indicative of the results which might be expected for a full year.
Reclassification, Policy [Policy Text Block]	Reclassifications - Effective October 31, 2018 we early adopted Accounting Standards Update (“ASU”) 2016 - 18 “Statement of Cash Flows (Topic 230 ): Restricted Cash” (“ASU 2016 - 18” ). As a result, restricted cash amounts are no longer shown within the operating and investing activities as these balances are now included in the beginning and ending cash balances in our Condensed Consolidated Statements of Cash Flows. The adoption of ASU 2016 - 18 also resulted in the reclassification of restricted cash in operating and investing activities of $1.0 million and $23.4 million, respectively, for the nine months ended July 31, 2018. These amounts are now included in the beginning and ending cash balances for the respective periods. See also the reconciliation of cash, cash equivalents and restricted cash on the Condensed Consolidated Statements of Cash Flows.

Note 3 - Interest (Tables)

9 Months Ended

Jul. 31, 2019

Schedule of Real Estate Inventory, Capitalized Interest Costs [Table Text Block]

	Three Months Ended July 31,		Nine Months Ended July 31,
(In thousands)	2019	2018	2019	2018

Interest capitalized at beginning of period	$79,277	$65,355	$68,117	$71,051
Plus interest incurred (1)	42,104	40,438	122,340	121,617
Less cost of sales interest expensed	19,029	13,424	43,169	45,080
Less other interest expensed (2)(3)	22,377	24,859	67,313	80,078
Less interest contributed to unconsolidated joint venture(4)	1,978	-	1,978	-
Interest capitalized at end of period (5)	$77,997	$67,510	$77,997	$67,510

Cash Paid for Interest Net of Capitalized Interest [Table Text Block]

	Three Months Ended July 31,		Nine Months Ended July 31,
(In thousands)	2019	2018	2019	2018
Other interest expensed	$22,377	$24,859	$67,313	$80,078
Interest paid by our mortgage and finance subsidiaries	673	616	1,876	1,802
Decrease in accrued interest	15,404	20,672	13,105	23,974
Cash paid for interest, net of capitalized interest	$38,454	$46,147	$82,294	$105,854

Note 6 - Warranty Costs (Tables)

9 Months Ended

Jul. 31, 2019

Schedule of Product Warranty Liability [Table Text Block]

	Three Months Ended July 31,				Nine Months Ended July 31,
(In thousands)	2019		2018		2019		2018

Balance, beginning of period	$92,849		$115,775		$95,064		$127,702

Additions - Selling, general and administrative	2,332		2,346		6,449		6,684
Additions - Cost of sales	1,481		3,386		4,817		13,285
Charges incurred during the period	(3,657	)	(3,765	)	(13,768	)	(29,929	)
Changes to pre-existing reserves	900		(2,314	)	1,343		(2,314	)
Balance, end of period	$93,905		$115,428		$93,905		$115,428

Note 9 - Mortgage Loans Held for Sale (Tables)

9 Months Ended

Jul. 31, 2019

Financing Receivable, Allowance for Credit Loss [Table Text Block]

	Three Months Ended July 31,		Nine Months Ended July 31,
(In thousands)	2019	2018	2019		2018

Loan origination reserves, beginning of period	$1,269	$3,271	$2,563		$3,158
Provisions for losses during the period	61	39	139		107
Adjustments to pre-existing provisions for losses from changes in estimates	-	-	(22	)	45
Payments/settlements	-	-	(1,350	)	-
Loan origination reserves, end of period	$1,330	$3,310	$1,330		$3,310

Note 11 - Senior Notes and Credit Facilities (Tables)

9 Months Ended

Jul. 31, 2019

Schedule of Long-term Debt Instruments [Table Text Block]

(In thousands)	July 31, 2019(1)(2)	October 31, 2018(1)(2)
Senior Secured Notes:
9.5% Senior Secured Notes due November 15, 2020	$74,719	$74,561
2.0% Senior Secured Notes due November 1, 2021 (net of discount)	53,121	53,094
5.0% Senior Secured Notes due November 1, 2021 (net of discount)	137,028	135,571
10.0% Senior Secured Notes due July 15, 2022	436,369	435,461
10.5% Senior Secured Notes due July 15, 2024 (net of discount)	416,736	394,736
Total Senior Secured Notes, net of debt issuance costs	$1,117,973	$1,093,423
Senior Notes:
8.0% Senior Notes due November 1, 2019 (3)	$-	$-
13.5% Senior Notes due February 1, 2026 (including premium)	100,442	101,162
5.0% Senior Notes due February 1, 2040 (net of discount)	43,718	43,264
Total Senior Notes, net of debt issuance costs	$144,160	$144,426
Senior Unsecured Term Loan Credit Facility due February 1, 2027, net of debt issuance costs	$201,493	$201,389
Senior Secured Revolving Credit Facility (4)	$-	$-

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Note 16 - Operating and Reporting Segments (Tables)

9 Months Ended

Jul. 31, 2019

Schedule of Segment Reporting Information, by Segment [Table Text Block]

(In thousands)	July 31, 2019	October 31, 2018

Assets:
Northeast	$189,299	$152,607
Mid-Atlantic	261,728	217,807
Midwest	121,664	85,398
Southeast	296,046	246,497
Southwest	391,536	320,452
West	299,037	244,886
Total homebuilding	1,559,310	1,267,647
Financial services	109,164	164,880
Corporate and unallocated	126,788	229,515
Total assets	$1,795,262	$1,662,042

Operating Segments [Member]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

	Three Months Ended July 31,				Nine Months Ended July 31,
(In thousands)	2019		2018		2019		2018

Revenues:
Northeast	$20,696		$26,705		$53,696		$90,675
Mid-Atlantic	86,948		79,712		221,225		255,169
Midwest	47,858		45,659		135,716		129,176
Southeast	50,233		47,498		143,606		165,067
Southwest	152,831		157,514		414,880		444,966
West	110,274		86,105		298,058		249,253
Total homebuilding	468,840		443,193		1,267,181		1,334,306
Financial services	12,764		13,009		34,679		36,951
Corporate and unallocated (1)	437		510		1,466		5,165
Total revenues	$482,041		$456,712		$1,303,326		$1,376,422

(Loss) income before income taxes:
Northeast	$283		$8,995		$6,287		$5,254
Mid-Atlantic	5,111		3,401		5,497		12,053
Midwest	191		66		(1,252	)	(3,388	)
Southeast	(2,198	)	(4,752	)	(9,259	)	(11,699	)
Southwest	8,598		12,461		15,270		28,019
West	6,584		14,442		28,599		29,681
Homebuilding income before income taxes	18,569		34,613		45,142		59,920
Financial services	3,837		4,023		8,600		10,826
Corporate and unallocated (1)	(29,470	)	(38,558	)	(92,824	)	(110,717	)
(Loss) income before income taxes	$(7,064	)	$78		$(39,082	)	$(39,971	)

Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Tables)

9 Months Ended

Jul. 31, 2019

Equity Method Investments [Table Text Block]

(Dollars in thousands)	July 31, 2019
	Homebuilding		Land Development		Total
Assets:
Cash and cash equivalents	$93,959		$2,139		$96,098
Inventories	450,628		8,791		459,419
Other assets	25,711		-		25,711
Total assets	$570,298		$10,930		$581,228

Liabilities and equity:
Accounts payable and accrued liabilities	$79,941		$862		$80,803
Notes payable	209,653		-		209,653
Total liabilities	289,594		862		290,456
Equity of:
Hovnanian Enterprises, Inc.	125,346		4,876		130,222
Others	155,358		5,192		160,550
Total equity	280,704		10,068		290,772
Total liabilities and equity	$570,298		$10,930		$581,228
Debt to capitalization ratio	43	%	0	%	42	%

(Dollars in thousands)	October 31, 2018
	Homebuilding		Land Development		Total
Assets:
Cash and cash equivalents	$50,010		$2,275		$52,285
Inventories	506,650		8,004		514,654
Other assets	35,105		-		35,105
Total assets	$591,765		$10,279		$602,044

Liabilities and equity:
Accounts payable and accrued liabilities	$79,108		$746		$79,854
Notes payable	236,665		-		236,665
Total liabilities	315,773		746		316,519
Equity of:
Hovnanian Enterprises, Inc.	114,950		4,369		119,319
Others	161,042		5,164		166,206
Total equity	275,992		9,533		285,525
Total liabilities and equity	$591,765		$10,279		$602,044
Debt to capitalization ratio	46	%	0	%	45	%

	For the Three Months Ended July 31, 2019
(In thousands)	Homebuilding		Land Development		Total

Revenues	$121,156		$1,383		$122,539
Cost of sales and expenses	(112,749	)	(846	)	(113,595	)
Joint venture net income	$8,407		$537		$8,944
Our share of net income	$3,578		$268		$3,846

	For the Three Months Ended July 31, 2018
(In thousands)	Homebuilding		Land Development		Total

Revenues	$194,539		$1,367		$195,906
Cost of sales and expenses	(173,073	)	(1,057	)	(174,130	)
Joint venture net income	$21,466		$310		$21,776
Our share of net income	$10,705		$155		$10,860

	For the Nine Months Ended July 31, 2019
(In thousands)	Homebuilding		Land Development		Total

Revenues	$342,669		$4,979		$347,648
Cost of sales and expenses	(320,080	)	(3,963	)	(324,043	)
Joint venture net income	$22,589		$1,016		$23,605
Our share of net income	$20,202		$508		$20,710

	For the Nine Months Ended July 31, 2018
(In thousands)	Homebuilding		Land Development		Total

Revenues	$350,035		$4,985		$355,020
Cost of sales and expenses	(347,439	)	(4,338	)	(351,777	)
Joint venture net income	$2,596		647		$3,243
Our share of net income	$6,802		$323		$7,125

Note 19 - Fair Value of Financial Instruments (Tables)

9 Months Ended

Jul. 31, 2019

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

(In thousands)	Fair Value Hierarchy	Fair Value at July 31, 2019		Fair Value at October 31, 2018

Mortgage loans held for sale (1)	Level 2	$83,846		$130,709
Interest rate lock commitments	Level 2	42		(28	)
Forward contracts	Level 2	(36	)	13
Total		$83,852		$130,694

Fair Value Option, Disclosures [Table Text Block]

	Three Months Ended July 31, 2019
(In thousands)	Mortgage Loans Held For Sale		Interest Rate Lock Commitments	Forward Contracts

Fair value included in net loss all reflected in financial services revenues	$(477	)	$25	$(57	)

	Three Months Ended July 31, 2018
(In thousands)	Mortgage Loans Held For Sale		Interest Rate Lock Commitments	Forward Contracts

Fair value included in net loss all reflected in financial services revenues	$(315	)	$53	$(41	)

	Nine Months Ended July 31, 2019
(In thousands)	Mortgage Loans Held For Sale	Interest Rate Lock Commitments	Forward Contracts

Fair value included in net loss all reflected in financial services revenues	$2,465	$42	$(36	)

	Nine Months Ended July 31, 2018
(In thousands)	Mortgage Loans Held For Sale	Interest Rate Lock Commitments		Forward Contracts

Fair value included in net loss all reflected in financial services revenues	$2,226	$(17	)	$83

Fair Value Measurements, Nonrecurring [Table Text Block]

		Three Months Ended
		July 31, 2019
(In thousands)	Fair Value Hierarchy	Pre-Impairment Amount	Total Losses		Fair Value

Sold and unsold homes and lots under development	Level 3	$1,218	$(118	)	$1,100
Land and land options held for future development or sale	Level 3	$-	$-		$-

		Three Months Ended
		July 31, 2018
(In thousands)	Fair Value Hierarchy	Pre-Impairment Amount	Total Losses	Fair Value

Sold and unsold homes and lots under development	Level 3	$-	$-	$-
Land and land options held for future development or sale	Level 3	$-	$-	$-

		Nine Months Ended
		July 31, 2019
(In thousands)	Fair Value Hierarchy	Pre-Impairment Amount	Total Losses		Fair Value

Sold and unsold homes and lots under development	Level 3	$5,124	$(1,085	)	$4,039
Land and land options held for future development or sale	Level 3	$6,302	$(43	)	$6,259

		Nine Months Ended
		July 31, 2018
(In thousands)	Fair Value Hierarchy	Pre-Impairment Amount	Total Losses		Fair Value

Sold and unsold homes and lots under development	Level 3	$11,170	$(2,117	)	$9,053
Land and land options held for future development or sale	Level 3	$-	$-		$-

Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis 2 [Table Text Block]

(In thousands)	Level 1	Level 2	Level 3	Total
Senior Secured Notes:
9.5% Senior Secured Notes due November 15, 2020	$-	$-	$73,500	$73,500
2.0% Senior Secured Notes due November 1, 2021	-	-	47,351	47,351
5.0% Senior Secured Notes due November 1, 2021	-	135,558	-	135,558
10.0% Senior Secured Notes due July 15, 2022	-	376,200	-	376,200
10.5% Senior Secured Notes due July 15, 2024	-	340,523	-	340,523
Senior Notes:
13.5% Senior Notes due February 1, 2026	-	-	81,114	81,114
5.0% Senior Notes due February 1, 2040	-	-	32,669	32,669
Senior Unsecured Term Loan Credit Facility due February 1, 2027	-	-	103,442	103,442
Total fair value	$-	$852,281	$338,076	$1,190,357

(In thousands)	Level 1	Level 2	Level 3	Total
Senior Secured Notes:
9.5% Senior Secured Notes due November 15, 2020	$-	$-	$74,250	$74,250
2.0% Senior Secured Notes due November 1, 2021	-	-	40,434	40,434
5.0% Senior Secured Notes due November 1, 2021	-	124,781	-	124,781
10.0% Senior Secured Notes due July 15, 2022	-	424,670	-	424,670
10.5% Senior Secured Notes due July 15, 2024	-	366,720	-	366,720
Senior Notes:
13.5% Senior Notes due February 1, 2026	-	88,148	-	88,148
5.0% Senior Notes due February 1, 2040	-	35,628	-	35,628
Senior Unsecured Term Loan Credit Facility due February 1, 2027	-	-	114,328	114,328
Total fair value	$-	$1,039,947	$229,012	$1,268,959

Supplemental Disclosure of Cash Flow Information (Details Textual) - USD ($) $ in Millions	3 Months Ended
	Jan. 31, 2018	Jul. 31, 2019	Feb. 01, 2018
Fair Value of Assets Acquired	$ 13
8.0% Senior Notes Due 2019 [Member]
Debt Instrument, Interest Rate, Stated Percentage		8.00%	8.00%
The 13.5% Senior Notes Due 2026 [Member]
Debt Instrument, Interest Rate, Stated Percentage			13.50%
The 5.0% Senior Notes due 2040 [Member]
Debt Instrument, Interest Rate, Stated Percentage			5.00%

Note 1 - Basis of Presentation (Details Textual) $ / shares in Units, $ in Thousands		9 Months Ended
	Mar. 29, 2019 $ / shares	Jul. 31, 2019 USD ($) $ / shares	Jul. 31, 2018 USD ($)	Oct. 31, 2018 $ / shares
Net Cash Provided by (Used in) Operating Activities, Total		$ (258,058)	$ (96,583)
Net Cash Provided by (Used in) Investing Activities, Total		$ (9,508)	38,290
Common Class A [Member]
Common Stock, Par or Stated Value Per Share \| $ / shares	$ 0.01	$ 0.01		$ 0.01
Common Class B [Member]
Common Stock, Par or Stated Value Per Share \| $ / shares	$ 0.01	$ 0.01		$ 0.01
Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	25
Reverse Stock Split [Member] \| Common Class A [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	25
Reverse Stock Split [Member] \| Common Class B [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	25
Accounting Standards Update 2016-18 [Member] \| New Accounting Pronouncement, Early Adoption, Effect [Member]
Net Cash Provided by (Used in) Operating Activities, Total			1,000
Net Cash Provided by (Used in) Investing Activities, Total			$ 23,400
Consolidated Joint Venture [Member]
Noncontrolling Interest, Ownership Percentage by Parent		99.00%
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners		1.00%

Note 2 - Stock Compensation (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Share-based Payment Arrangement, Expense		$ 0.6	$ 0.2	$ 2.7
Allocated Share Based Compensation, Income	$ 1.0
Share-based Payment Arrangement, Option [Member]
Share-based Payment Arrangement, Expense	$ 0.4	$ 0.9	$ 0.7	$ 1.1

Note 3 - Interest (Details Textual) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Jul. 31, 2019

Jul. 31, 2018

Jul. 31, 2019

Jul. 31, 2018

Real Estate Inventory Expense Not Eligible for Capitalization

^[1],[2]

$ 22,377

$ 24,859

$ 67,313

$ 80,078

Qualifying Assets Not Exceeding Debt [Member]

Real Estate Inventory Expense Not Eligible for Capitalization

13,700

20,200

46,400

59,700

Completed Homes, Land in Planning and Fully Developed Lots without Homes under Construction [Member]

Real Estate Inventory Expense Not Eligible for Capitalization

$ 8,700

$ 4,600

$ 21,000

$ 20,400

[1]

[2]

Note 3 - Interest - Interest Costs Incurred, Expensed and Capitalized (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Jul. 31, 2019

Jul. 31, 2018

Jul. 31, 2019

Jul. 31, 2018

Interest capitalized at beginning of period

$ 79,277

$ 65,355

$ 68,117

$ 71,051

Plus interest incurred

^[1]

42,104

40,438

122,340

121,617

Less cost of sales interest expensed

19,029

13,424

43,169

45,080

Less other interest expensed

^[2],[3]

22,377

24,859

67,313

80,078

Less interest contributed to unconsolidated joint venture(4)

^[4]

1,978

Interest capitalized at end of period

^[5]

$ 77,997

$ 67,510

$ 77,997

$ 67,510

[1]	Data does not include interest incurred by our mortgage and finance subsidiaries.
[2]	Cash paid for interest, net of capitalized interest, is the sum of other interest expensed, as defined above, and interest paid by our mortgage and finance subsidiaries adjusted for the change in accrued interest on notes payable, which is calculated as follows: Three Months Ended July 31, Nine Months Ended July 31, (In thousands) 2019 2018 2019 2018 Other interest expensed $22,377 $24,859 $67,313 $80,078 Interest paid by our mortgage and finance subsidiaries 673 616 1,876 1,802 Decrease in accrued interest 15,404 20,672 13,105 23,974 Cash paid for interest, net of capitalized interest $38,454 $46,147 $82,294 $105,854
[3]	Other interest expensed includes interest that does not qualify for interest capitalization because our assets that qualify for interest capitalization (inventory under development) do not exceed our debt, which amounted to $13.7 million and $20.2 million for the three months ended July 31, 2019 and 2018, respectively, and $46.4 million and $59.7 million for the nine months ended July 31, 2019 and 2018, respectively. Other interest also includes interest on completed homes, land in planning and fully developed lots without homes under construction, which does not qualify for capitalization, and therefore, is expensed. This component of other interest was $8.7 million and $4.6 million for the three months ended July 31, 2019 and 2018, respectively, and $21.0 million and $20.4 million for the nine months ended July 31, 2019 and 2018, respectively.
[4]	Represents capitalized interest which was included as part of the assets contributed to a joint venture the company entered into in June 2019. There was no impact to the Condensed Consolidated Statement of Operations as a result of this transaction.
[5]	Capitalized interest amounts are shown gross before allocating any portion of impairments, if any, to capitalized interest.

Note 3 - Interest - Cash Paid for Interest, Net of Capitalized Interest (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

Jul. 31, 2019

Jul. 31, 2018

Jul. 31, 2019

Jul. 31, 2018

Other interest expensed

^[1],[2]

$ 22,377

$ 24,859

$ 67,313

$ 80,078

Interest paid by our mortgage and finance subsidiaries

673

616

1,876

1,802

Decrease in accrued interest

15,404

20,672

13,105

23,974

Cash paid for interest, net of capitalized interest

$ 38,454

$ 46,147

$ 82,294

$ 105,854

[1]

[2]

Note 4 - Reduction of Inventory to Fair Value (Details Textual) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019 USD ($)	Jul. 31, 2018 USD ($)	Jul. 31, 2019 USD ($)	Jul. 31, 2018 USD ($)	Oct. 31, 2018 USD ($)
Number of Communities Evaluated for Impairment			398	405
Number of Communities Performed Detailed Impairment Calculations			7	5
Carrying Value of Communities Tested for Impairment			$ 52,800	$ 11,200
Impairment of Real Estate	$ 100	$ 0	1,100	2,100
Homebuilding [Member]
Impairment of Real Estate	$ 100	0	$ 1,100	$ 2,100
Number of Communities Impaired	1		4	5
PreImpairment Value	$ 1,200		$ 11,400	$ 11,200
Number of Communities Tested for Impairment for Which Undiscounted Future Cash Flow Only Exceeded Carrying Amount By Less Than 20 Percent			3	0
Carrying Value of Communities Tested for Impairment for Which Undiscounted Future Cash Flow Only Exceeded Carrying Amount by Less than 20 Percent			$ 41,300
Percentage Undiscounted Cash Flow Exceeds Carrying Amount			20.00%	20.00%
Land Option Write Offs	$ 1,300	$ 100	$ 2,500	$ 1,100
Number of Walk Away Lots	1,852	76	4,022	1,417
Number of Communities Mothballed During the Period			0
Number of Previously Mothballed Communities Sold During the Period			2
Number of Mothballed Communities Reactivated			2
Number of Communities Mothballed	14		14		18
Inventory Real Estate Mothballed Communities	$ 14,200		$ 14,200		$ 24,500
Inventory Real Estate Mothballed Communities Accumulated Impairment Charges	146,900		146,900		186,100
Liabilities from Inventory Real Estate Not Owned	138,441		138,441		63,387
Homebuilding [Member] \| Model Sale Leaseback Financing Arrangements [Member]
Inventory Real Estate, Other Options	55,800		55,800		50,500
Liabilities from Inventory Real Estate Not Owned	50,700		50,700		43,900
Homebuilding [Member] \| Land Banking Arrangement [Member]
Inventory Real Estate, Other Options	123,800		123,800		37,400
Liabilities from Inventory Real Estate Not Owned	$ 87,700		$ 87,700		$ 19,500
Minimum [Member] \| Homebuilding [Member] \| Measurement Input, Discount Rate [Member]
Inventory, Measurement Input			18	16.8
Maximum [Member] \| Homebuilding [Member] \| Measurement Input, Discount Rate [Member]
Inventory, Measurement Input			18.3	19.8

Note 5 - Variable Interest Entities (Details Textual) $ in Millions	Jul. 31, 2019 USD ($)
Deposits Associated with Land and Lot Options of Unconsolidated Variable Interest Entities	$ 71.6
Purchase Price Associated with Land and Lot Options of Unconsolidated Variable Interest Entities	$ 1,300.0

Note 6 - Warranty Costs (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Cash Received from Subcontractors for Owner Controlled Insurance Program	$ 1,200	$ 1,300	$ 3,400	$ 3,300
General Liability Insurance Deductible	20,000	20,000	20,000	20,000
Bodily Injury Insurance Deductible	250	250	250	250
Bodily Injury Insurance Limit	5,000	5,000	5,000	5,000
Aggregate Retention for Construction Defects Warranty and Bodily Injury Claims	20,000	20,000	20,000	20,000
Payments by Insurance Companies for Claims	$ 100	$ 100	$ 100	$ 100

Note 6 - Warranty Costs - Warranty and General Liability Reserve (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Balance, beginning of period	$ 92,849	$ 115,775	$ 95,064	$ 127,702
Charges incurred during the period	(3,657)	(3,765)	(13,768)	(29,929)
Changes to pre-existing reserves	900	(2,314)	1,343	(2,314)
Balance, end of period	93,905	115,428	93,905	115,428
Selling, General and Administrative Expenses [Member]
Additions	2,332	2,346	6,449	6,684
Cost of Sales [Member]
Additions	$ 1,481	$ 3,386	$ 4,817	$ 13,285

Note 7 - Commitments and Contingent Liabilities (Details Textual) - USD ($) $ in Millions		9 Months Ended
	May 02, 2018	Jul. 31, 2019
EPA Case Involving a Housing Redevelopment Project in Newark, New Jersey [Member]
Loss Contingency, Percentage of Plaintiff's Costs for Which Reimbursement is Demanded	100.00%
Loss Contingency, Damages Sought, Value	$ 2.7
Great Notch Condominium Claims[Member]
Loss Contingency, Damages Sought, Value		$ 119.5

Note 8 - Cash and Cash Equivalents, Restricted Cash and Cash Equivalents and Customer's Deposits (Details Textual) - USD ($) $ in Thousands	Jul. 31, 2019	Oct. 31, 2018	Jul. 31, 2018
Cash Equivalents, at Carrying Value, Total	$ 91,800	$ 199,600
Mortgage Warehouse Lines of Credit [Member]
Restricted Cash and Cash Equivalents, Total	2,300	2,000
Homebuilding [Member]
Restricted Cash and Cash Equivalents, Total	16,919	12,808	$ 25,345
Financial Services [Member]
Restricted Cash and Cash Equivalents, Total	20,398	25,400	$ 23,479
Financial Services [Member] \| Customer Deposits [Member]
Restricted Cash and Cash Equivalents, Total	$ 18,100	$ 23,400

Note 9 - Mortgage Loans Held for Sale (Details Textual) $ in Millions	Jul. 31, 2019 USD ($)	Oct. 31, 2018 USD ($)	Jul. 31, 2018
Loans Pledged as Collateral	$ 68.7	$ 115.2
Number of Loans Reserved For	21		45

Note 9 - Mortgage Loans Held for Sale - Loan Origination Reserves (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Loan origination reserves, beginning of period	$ 1,269	$ 3,271	$ 2,563	$ 3,158
Provisions for losses during the period	61	39	139	107
Adjustments to pre-existing provisions for losses from changes in estimates			(22)	45
Payments/settlements			(1,350)
Loan origination reserves, end of period	$ 1,330	$ 3,310	$ 1,330	$ 3,310

Note 10 - Mortgages (Details Textual) - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2019	Oct. 31, 2018
JP Morgan Chase Bank [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 50,000
Warehouse Agreement Borrowings, Total	$ 25,000	$ 40,300
JP Morgan Chase Bank [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument Variable Rate Basis Adjusted London Interbank Offered Rate LIBOR	2.22%
JP Morgan Chase Bank [Member] \| London Interbank Offered Rate (LIBOR) [Member] \| Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate	2.50%
JP Morgan Chase Bank [Member] \| London Interbank Offered Rate (LIBOR) [Member] \| Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate	2.625%
Customers Bank [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 50,000
Warehouse Agreement Borrowings, Total	$ 25,900	40,200
Customers Bank [Member] \| London Interbank Offered Rate (LIBOR) [Member] \| Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate	2.25%
Customers Bank [Member] \| London Interbank Offered Rate (LIBOR) [Member] \| Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate	5.00%
Nonrecourse Mortgages Secured By Inventory [Member] \| Mortgages [Member] \| Homebuilding [Member]
Secured Debt, Total	$ 207,172	95,557
Debt Instrument, Collateral Amount	$ 409,300	$ 241,900
Debt, Weighted Average Interest Rate	8.10%	6.10%
Comerica Master Repurchase Agreement [Member]
Line of Credit Facility, Maximum Borrowing Capacity	$ 50,000
Warehouse Agreement Borrowings, Total	$ 16,000	$ 32,700
Comerica Master Repurchase Agreement [Member] \| London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument Variable Rate Basis Floor Rate	0.25%
Comerica Master Repurchase Agreement [Member] \| London Interbank Offered Rate (LIBOR) [Member] \| Minimum [Member]
Debt Instrument, Basis Spread on Variable Rate	2.00%
Comerica Master Repurchase Agreement [Member] \| London Interbank Offered Rate (LIBOR) [Member] \| Maximum [Member]
Debt Instrument, Basis Spread on Variable Rate	3.25%

Note 11 - Senior Notes and Credit Facilities (Details Textual)
$ in Thousands

3 Months Ended

9 Months Ended

12 Months Ended

Jan. 15, 2019

USD ($)

May 29, 2018

USD ($)

Feb. 01, 2018

USD ($)

Dec. 01, 2017

USD ($)

Jul. 31, 2019

USD ($)

Jul. 31, 2018

USD ($)

Jul. 31, 2017

USD ($)

Jul. 31, 2019

USD ($)

Jul. 31, 2018

USD ($)

Oct. 31, 2018

USD ($)

Oct. 31, 2017

Dec. 28, 2017

USD ($)

Jul. 27, 2017

Nov. 01, 2011

Interest Payable

$ 22,500

$ 35,600

Debt Issuance Costs, Net, Total

$ 12,300

14,100

Debt Covenant Fixed Charge Coverage Ratio Minimum

Proceeds from Secured Notes Payable

$ 21,348

285,095

The 8.0% Senior Notes Due 2019 [Member]

$ (4,266)

$ (42,300)

(5,706)

Repayments of Long-term Debt, Total

8.00%

$ 65,700

Stand-alone Cash Collateralized Letter of Credit Agreements and Facilities [Member]

Letters of Credit Outstanding, Amount

15,900

12,500

Stand-alone Cash Collateralized Letter of Credit Agreements and Facilities [Member] | Restricted Cash [Member]

GSO [Member] | Revolving Credit Facility [Member]

16,500

$ 16,500

$ 12,700

Line of Credit Facility, Maximum Borrowing Capacity

$ 125,000

Series A Preferred Stock [Member]

Preferred Stock, Dividend Rate, Percentage

7.625%

Senior Exchangeable Notes [Member]

6.00%

Unsecured Senior Notes [Member] | GSO [Member]

$ 53,900

Delayed Draw Term Loans [Member] | GSO [Member]

$ 132,500

132,500

Debt Agreement Maximum Borrowing Capacity

$ 80,000

8.0% Senior Notes Due 2019 [Member]

$ 170,200

$ 26,000

8.0% Senior Notes Due 2019 [Member] | K. Hovnanian at Sunrise Trail III, LLC [Member]

8.00%

8.0% Senior Notes Due 2019 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member]

$ 26,500

The 5.0% 2021 Notes [Member] | Senior Secured Notes [Member]

8.00%

The 2.0% 2021 Notes [Member] | Senior Secured Notes [Member]

5.00%

^[1],[2]

5.00%

^[1],[2]

5.00%

^[1],[2]

5.00%

The 9.50% 2020 Notes [Member] | Senior Secured Notes [Member]

2.00%

^[1],[2]

2.00%

^[1],[2]

2.00%

^[1],[2]

2.00%

The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member]

^[1],[2]

9.50%

The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member]

10.00%

^[1],[2]

10.00%

^[1],[2]

10.00%

^[1],[2]

10.00%

The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Three [Member]

105.00%

The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Four [Member]

102.50%

The 7.0% 2019 Notes [Member] | Senior Notes [Member]

100.00%

The 10.5% 2024 Notes [Member]

7.00%

$ 25,000

Proceeds from Secured Notes Payable

10.50%

$ 21,300

The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member]

The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member]

^[1],[2]

10.50%

The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member] | Redemption with Net Cash Proceeds from Certain Equity Offerings [Member]

100.00%

Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed

110.50%

35.00%

The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member]

The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Three [Member]

105.25%

The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Four [Member]

102.625%

The 10.5% 2024 Notes [Member] | Senior Notes [Member]

100.00%

The 11.0% 2017 Amortizing Note [Member] | Senior Amortizing Notes [Member]

10.50%

11.00%

The 7% 2019 Notes [Member]

$ 2,100

7.00%

Senior Unsecured Term Loan Credit Facility [Member]

(500)

Debt Instrument, Additional Borrowings

$ 4,300

$ 70,000

The 5.0% Notes Due 2027 [Member]

The 8.0% Senior Notes Due 2019 [Member]

5.00%

Debt Instrument, Aggregate Principal Outstanding, Percentage

$ (900)

72.14%

The 8.0% Senior Notes Due 2019 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member]

The 13.5% Senior Notes Due 2026 [Member]

^[1],[2]

8.00%

$ 90,600

The 13.5% Senior Notes Due 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member]

13.50%

The 13.5% Senior Notes Due 2026 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member]

100.00%

The 13.5% Senior Notes Due 2026 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member]

100.00%

The 5.0% Senior Notes due 2040 [Member]

13.50%

^[1],[2]

13.50%

^[1],[2]

13.50%

$ 90,100

The 5.0% Senior Notes due 2040 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member]

5.00%

The 5.0% Senior Notes due 2040 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period Two [Member]

100.00%

The 5.0% Senior Notes due 2040 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member]

100.00%

The Purchased 8% Notes [Member] | K. Hovnanian at Sunrise Trail III, LLC [Member]

^[1],[2]

5.00%

Debt Instrument, Repurchased Face Amount

8.00%

$ 26,000

The 10.0% 2018 Notes [Member] | Senior Secured Notes [Member]

The 10% 2022 Notes and 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Real Estate [Member]

10.00%

The 10% 2022 Notes and 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Real Property [Member]

$ 10,500

The 10% 2022 Notes and 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Cash and Cash Equivalents Collateral [Member]

386,700

The 10% 2022 Notes and 10.5% 2024 Notes [Member] | Senior Secured Notes [Member] | Restricted Cash [Member]

63,100

9.5% Senior Secured Notes Due 2020 [Member] | Debt Instrument, Redemption, Period Two [Member]

$ 16,500

9.5% Senior Secured Notes Due 2020 [Member] | Senior Secured Notes [Member]

100.00%

9.5% Senior Secured Notes Due 2020 [Member] | Senior Secured Notes [Member] | Debt Instrument, Redemption, Period One [Member]

9.50%

The 2.0% 2021 Notes Member and 5.0% 2021 Notes [Member] | Senior Secured Notes [Member]

100.00%

Debt Instrument, Voluntary Prepayment Premium, Aggregate Principal Amount, Percentage

100.00%

1.00%

The 2.0% 2021 Notes Member and 5.0% 2021 Notes [Member] | Senior Secured Notes [Member] | Real Estate [Member]

The 2.0% 2021 Notes Member and 5.0% 2021 Notes [Member] | Senior Secured Notes [Member] | Secured Group [Member] | Investment in Joint Ventures [Member]

$ 161,000

The 2021 Notes and 9.5% 2020 Notes [Member] | Senior Secured Notes [Member] | Cash and Cash Equivalents Collateral [Member]

182,300

Senior Secured Notes [Member]

$ 30,700

[1]	"Notes payable" on our Condensed Consolidated Balance Sheets as of July 31, 2019 and October 31, 2018 consists of the total senior secured and senior notes shown above, as well as accrued interest of $22.5 million and $35.6 million, respectively.
[2]	Unamortized debt issuance costs at July 31, 2019 and October 31, 2018 were $12.3 million and $14.1 million, respectively.

Note 11 - Senior Notes and Credit Facilities - Senior Notes and Credit Facilities Balances (Details) - USD ($)
$ in Thousands

Jul. 31, 2019

Oct. 31, 2018

Senior Secured Notes [Member] | The 9.50% 2020 Notes [Member]

^[1],[2]

$ 1,117,973

$ 1,093,423

Senior Secured Notes [Member] | The 2.0% 2021 Notes [Member]

^[1],[2]

74,719

74,561

Senior Secured Notes [Member] | The 5.0% 2021 Notes [Member]

^[1],[2]

53,121

53,094

Senior Secured Notes [Member] | The 10.0% 2022 Notes [Member]

^[1],[2]

137,028

135,571

Senior Secured Notes [Member] | The 10.5% 2024 Notes [Member]

^[1],[2]

436,369

435,461

Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member]

^[1],[2]

416,736

394,736

Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 8.0% Senior Notes Due 2019 [Member]

^[1],[2]

144,160

144,426

Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 13.5% Senior Notes Due 2026 [Member]

^[1],[2],[3]

Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member] | The 5.0% Senior Notes due 2040 [Member]

^[1],[2]

100,442

101,162

Senior Unsecured Term Loan Credit Facility Due 2027 [Member]

^[1],[2]

43,718

43,264

Long-term Line of Credit, Total

^[1],[2]

201,493

201,389

Senior Secured Revolving Credit Facility [Member]

Long-term Line of Credit, Total

^[1],[2],[4]

[1]	"Notes payable" on our Condensed Consolidated Balance Sheets as of July 31, 2019 and October 31, 2018 consists of the total senior secured and senior notes shown above, as well as accrued interest of $22.5 million and $35.6 million, respectively.
[2]	Unamortized debt issuance costs at July 31, 2019 and October 31, 2018 were $12.3 million and $14.1 million, respectively.
[3]	$26.0 million of 8.0% Senior Notes due 2019 are owned by a wholly-owned consolidated subsidiary of HEI. Therefore, in accordance with GAAP, such notes are not reflected on the Condensed Consolidated Balance Sheets of HEI.
[4]	Availability under the Secured Credit Facility will terminate on December 28, 2019 and any loans thereunder on such date will convert to secured term loans maturing on December 28, 2022.

Note 11 - Senior Notes and Credit Facilities - Senior Notes and Credit Facilities Balances (Details) (Parentheticals)

9 Months Ended

12 Months Ended

Jul. 31, 2019

Oct. 31, 2018

Jan. 15, 2019

Feb. 01, 2018

Jul. 27, 2017

Nov. 01, 2011

The 9.50% 2020 Notes [Member] | Senior Secured Notes [Member]

^[1],[2]

9.50%

The 2.0% 2021 Notes [Member] | Senior Secured Notes [Member]

^[1],[2]

Nov. 15, 2020

2.00%

^[1],[2]

2.00%

^[1],[2]

2.00%

The 5.0% 2021 Notes [Member] | Senior Secured Notes [Member]

^[1],[2]

Nov. 01, 2021

5.00%

^[1],[2]

5.00%

^[1],[2]

5.00%

The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member]

^[1],[2]

Nov. 01, 2021

10.00%

^[1],[2]

10.00%

^[1],[2]

10.00%

The 10.5% 2024 Notes [Member]

^[1],[2]

Jul. 15, 2022

The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member]

10.50%

^[1],[2]

10.50%

The 8.0% Senior Notes Due 2019 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member]

^[1],[2]

Jul. 15, 2024

^[1],[2]

8.00%

The 13.5% Senior Notes Due 2026 [Member]

^[1],[2]

Nov. 01, 2019

The 13.5% Senior Notes Due 2026 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member]

13.50%

13.50%

^[1],[2]

13.50%

The 5.0% Senior Notes due 2040 [Member]

Feb. 01, 2026

^[1],[2]

Feb. 01, 2026

The 5.0% Senior Notes due 2040 [Member] | Unsecured Senior Notes Excluding Senior Amortizing Notes and Senior Exchangeable Notes [Member]

5.00%

^[1],[2]

5.00%

Real Estate Inventory Expense Not Eligible for Capitalization

^[1],[2]

Feb. 01, 2040

[1]	"Notes payable" on our Condensed Consolidated Balance Sheets as of July 31, 2019 and October 31, 2018 consists of the total senior secured and senior notes shown above, as well as accrued interest of $22.5 million and $35.6 million, respectively.
[2]	Unamortized debt issuance costs at July 31, 2019 and October 31, 2018 were $12.3 million and $14.1 million, respectively.

Note 12 - Per Share Calculation (Details Textual) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Non Vested Stock and Outstanding Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	200	100	300	100
Convertible Debt Securities [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount				44
Out of the Money Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	200	300	200	200

Note 13 - Preferred Stock (Details Textual) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Jul. 12, 2005	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018	Oct. 31, 2018
Preferred Stock, Shares Issued, Total		5,600		5,600		5,600
Preferred Class A [Member]
Preferred Stock, Shares Issued, Total	5,600
Preferred Stock, Dividend Rate, Percentage	7.625%
Preferred Stock, Liquidation Preference Per Share	$ 25,000
Preferred Stock, Depositary Shares, Number of Shares of Preferred Stock in Each Depositary Share	0.001
Payments of Dividends, Total		$ 0	$ 0	$ 0	$ 0

Note 14 - Common Stock (Details Textual) shares in Thousands		3 Months Ended	9 Months Ended
	Mar. 29, 2019 $ / shares shares	Jul. 31, 2019 $ / shares shares	Jul. 31, 2019 $ / shares shares	Oct. 31, 2018 $ / shares	Dec. 05, 2008	Aug. 15, 2008	Aug. 04, 2008	Jul. 03, 2001 shares
Common Stock Dividends Percent of Increase from Class A to Class B		110.00%	110.00%
Conversion of Stock From Class B to Class A Conversion Ratio			1
Shareholder Ownership Percentage of Increase							50.00%
Minimum [Member]
Shareholder Ownership Percentage							5.00%
Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	25
Number of Fractional Shares Issued	0
Common Class A [Member]
Common Stock Voting Rights Votes per Share Number			1
Common Stock, Par or Stated Value Per Share \| $ / shares	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Shareholder Ownership Percentage						4.90%	4.90%
Number of Rights						1
Shareholders Pre Existing Ownership Percentage					5.00%
Shareholders Current Ownership Percentage					5.00%
Shareholders Ownership Percentage on Transfers					5.00%
Shareholders Ownership Percentage Threshold					5.00%
Stock Repurchase Program, Number of Shares Authorized to be Repurchased								200
Stock Repurchased During Period, Shares		0	0
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased		22	22
Common Class A [Member] \| Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	25
Common Class B [Member]
Common Stock Voting Rights Votes per Share Number			10
Common Stock, Par or Stated Value Per Share \| $ / shares	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Common Class B [Member] \| Reverse Stock Split [Member]
Stockholders' Equity Note, Stock Split, Conversion Ratio	25

Note 15 - Income Taxes (Details Textual) - USD ($) $ in Thousands	3 Months Ended				9 Months Ended		12 Months Ended
	Jul. 31, 2019	Oct. 31, 2018	Jul. 31, 2018	Jul. 31, 2017	Jul. 31, 2019	Jul. 31, 2018	Oct. 31, 2018
Income Tax Expense (Benefit), Total	$ 537		$ 1,104		$ 1,228	$ 1,687
Deferred Tax Assets, Valuation Allowance, Total	644,600				644,600
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total	(7,064)	$ 48,100	78	$ (50,200)	(39,082)	(39,971)	$ 8,100
Gain (Loss) on Extinguishment of Debt, Total			(4,266)	$ (42,300)		(5,706)
Domestic Tax Authority [Member]
Income Tax Expense (Benefit), Total
Domestic Tax Authority [Member] \| Between 2028 and 2037 [Member]
Operating Loss Carryforwards, Total	1,600,000				1,600,000
Domestic Tax Authority [Member] \| Indefinite Tax Period [Member]
Operating Loss Carryforwards, Total	23,500				23,500
State and Local Jurisdiction [Member]
Income Tax Expense (Benefit), Total	537		$ 1,104		1,228	$ 1,687
State and Local Jurisdiction [Member] \| Indefinite Tax Period [Member]
Operating Loss Carryforwards, Total	43,200				43,200
State and Local Jurisdiction [Member] \| Between 2019 and 2038 [Member]
Operating Loss Carryforwards, Total	2,500,000				2,500,000
State and Local Jurisdiction [Member] \| Between 2019 and 2023 [Member]
Operating Loss Carryforwards, Total	145,300				145,300
State and Local Jurisdiction [Member] \| Between 2024 and 2028 [Member]
Operating Loss Carryforwards, Total	691,200				691,200
State and Local Jurisdiction [Member] \| Between 2029 and 2033 [Member]
Operating Loss Carryforwards, Total	1,300,000				1,300,000
State and Local Jurisdiction [Member] \| Between 2034 and 2038 [Member]
Operating Loss Carryforwards, Total	$ 316,100				$ 316,100

Note 16 - Operating and Reporting Segments (Details Textual)
$ in Thousands

3 Months Ended

9 Months Ended

Jul. 31, 2019

USD ($)

Jul. 31, 2018

USD ($)

Jul. 31, 2017

USD ($)

Jul. 31, 2019

USD ($)

Jul. 31, 2018

USD ($)

^[1],[2]

$ 22,377

$ 24,859

$ 67,313

$ 80,078

Qualifying Assets Not Exceeding Debt [Member]

(4,266)

$ (42,300)

(5,706)

Real Estate Inventory Expense Not Eligible for Capitalization

13,700

20,200

46,400

59,700

Corporate, Non-Segment [Member]

General and Administrative Expense, Total

15,000

16,400

48,800

51,700

Other Nonoperating Income (Expense), Total

(300)

(2,300)

(1,400)

(6,400)

Corporate, Non-Segment [Member] | Qualifying Assets Not Exceeding Debt [Member]

(4,300)

(5,700)

Real Estate Inventory Expense Not Eligible for Capitalization

$ 14,700

$ 20,200

$ 45,400

$ 59,700

Homebuilding [Member]

Number of Reportable Segments

[1]

[2]

Note 16 - Operating and Reporting Segments - Financial Information Relating to Segment Operations (Details) - USD ($)
$ in Thousands

3 Months Ended

9 Months Ended

12 Months Ended

Jul. 31, 2019

Oct. 31, 2018

Jul. 31, 2018

Jul. 31, 2017

Jul. 31, 2019

Jul. 31, 2018

Oct. 31, 2018

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total

$ 482,041

$ 456,712

$ 1,303,326

$ 1,376,422

(7,064)

$ 48,100

$ (50,200)

(39,082)

(39,971)

$ 8,100

Corporate, Non-Segment [Member]

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total

^[1]

437

510

1,466

5,165

^[1]

(29,470)

(38,558)

(92,824)

(110,717)

Homebuilding [Member]

Homebuilding [Member] | Operating Segments [Member]

469,277

443,703

1,268,647

1,339,471

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total

468,840

443,193

1,267,181

1,334,306

18,569

34,613

45,142

59,920

Homebuilding [Member] | Northeast [Member] | Operating Segments [Member]

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total

20,696

26,705

53,696

90,675

283

8,995

6,287

5,254

Homebuilding [Member] | Mid-Atlantic [Member] | Operating Segments [Member]

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total

86,948

79,712

221,225

255,169

5,111

3,401

5,497

12,053

Homebuilding [Member] | Midwest [Member] | Operating Segments [Member]

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total

47,858

45,659

135,716

129,176

191

(1,252)

(3,388)

Homebuilding [Member] | Southeast [Member] | Operating Segments [Member]

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total

50,233

47,498

143,606

165,067

(2,198)

(4,752)

(9,259)

(11,699)

Homebuilding [Member] | Southwest [Member] | Operating Segments [Member]

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total

152,831

157,514

414,880

444,966

8,598

12,461

15,270

28,019

Homebuilding [Member] | West [Member] | Operating Segments [Member]

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total

110,274

86,105

298,058

249,253

6,584

14,442

28,599

29,681

Financial Services [Member]

Financial Services [Member] | Operating Segments [Member]

12,764

13,009

34,679

36,951

Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest, Total

12,764

13,009

34,679

36,951

$ 3,837

$ 4,023

$ 8,600

$ 10,826

[1]

Corporate and unallocated for the three months ended July 31, 2019 included corporate general and administrative costs of $15.0 million, interest expense of $14.7 million (a component of Other interest on our Condensed Consolidated Statements of Operations), $(0.3) million of other income and expenses primarily related to interest income and stock compensation. Corporate and unallocated for the nine months ended July 30, 2019 included corporate general and administrative costs of $48.8 million, interest expense of $45.4 million (a component of Other interest on our Condensed Consolidated Statements of Operations), and $(1.4) million of other income and expenses. Corporate and unallocated for the three months ended July 30, 2018 included corporate general and administrative costs of $16.4 million, interest expense of $20.2 million (a component of Other interest on our Condensed Consolidated Statements of Operations), loss on extinguishment of debt of $4.3 million and $(2.3) million of other income and expenses primarily related to an adjustment to our insurance reserves, resulting from the Grandview legal settlement. Corporate and unallocated for the nine months ended July 31, 2019 included corporate general and administrative costs of $51.7 million, interest expense of $59.7 million (a component of Other interest on our Condensed Consolidated Statements of Operations), loss on extinguishment of debt of $ 5.7 million and $(6.4) million of other income and expenses primarily related to interest income and gain on sale of our corporate headquarters building.

Note 16 - Operating and Reporting Segments - Financial Information Relating to Segment Financial Position (Details) - USD ($) $ in Thousands	Jul. 31, 2019	Oct. 31, 2018
Assets	$ 1,795,262	$ 1,662,042
Corporate, Non-Segment [Member]
Assets	126,788	229,515
Homebuilding [Member]
Assets	1,686,098	1,497,162
Homebuilding [Member] \| Operating Segments [Member]
Assets	1,559,310	1,267,647
Homebuilding [Member] \| Northeast [Member] \| Operating Segments [Member]
Assets	189,299	152,607
Homebuilding [Member] \| Mid-Atlantic [Member] \| Operating Segments [Member]
Assets	261,728	217,807
Homebuilding [Member] \| Midwest [Member] \| Operating Segments [Member]
Assets	121,664	85,398
Homebuilding [Member] \| Southeast [Member] \| Operating Segments [Member]
Assets	296,046	246,497
Homebuilding [Member] \| Southwest [Member] \| Operating Segments [Member]
Assets	391,536	320,452
Homebuilding [Member] \| West [Member] \| Operating Segments [Member]
Assets	299,037	244,886
Financial Services [Member]
Assets	109,164	164,880
Financial Services [Member] \| Operating Segments [Member]
Assets	$ 109,164	$ 164,880

Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures (Details Textual) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jan. 31, 2018	Jul. 31, 2019	Jul. 31, 2018	Oct. 31, 2018
Fair Value of Assets Acquired			$ 13,000
Equity Method Investment, Other than Temporary Impairment				$ 900	$ 0
Revenues, Total	$ 482,041	$ 456,712		$ 1,303,326	1,376,422
Joint Venture Total Debt to Capitalization Ratio	42.00%			42.00%
Joint Ventures in Northeast [Member]
Joint Venture Impairment Charge					700
Homebuilding [Member]
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures, Total	$ 134,111			$ 134,111		$ 123,694
Revenues, Total	469,277	443,703		1,268,647	1,339,471
Homebuilding [Member] \| Management Fees [Member]
Revenues, Total	4,100	$ 7,200		11,900	$ 12,100
Corporate Joint Venture [Member]
Advances to Affiliate	$ 3,900			$ 3,900		$ 4,600
Joint Venture Total Debt to Capitalization Ratio	42.00%			42.00%		45.00%

Note 17 - Investments in Unconsolidated Homebuilding and Land Development Joint Ventures - Unconsolidated Homebuilding and Land Development Joint Ventures (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018	Oct. 31, 2018
Debt to capitalization ratio	42.00%		42.00%
Our share of net income (loss)	$ 3,742	$ 10,732	$ 20,556	$ 6,899
Corporate Joint Venture [Member]
Cash and cash equivalents	96,098		96,098		$ 52,285
Inventories	459,419		459,419		514,654
Other assets	25,711		25,711		35,105
Total assets	581,228		581,228		602,044
Accounts payable and accrued liabilities	80,803		80,803		79,854
Notes payable	209,653		209,653		236,665
Total liabilities	290,456		290,456		316,519
Hovnanian Enterprises, Inc.	130,222		130,222		119,319
Others	160,550		160,550		166,206
Total equity	290,772		290,772		285,525
Total liabilities and equity	$ 581,228		$ 581,228		$ 602,044
Debt to capitalization ratio	42.00%		42.00%		45.00%
Revenues	$ 122,539	195,906	$ 347,648	355,020
Cost of sales and expenses	(113,595)	(174,130)	(324,043)	(351,777)
Joint venture net income (loss)	8,944	21,776	23,605	3,243
Our share of net income (loss)	3,846	10,860	20,710	7,125
Homebuilding Joint Venture [Member] \| Corporate Joint Venture [Member]
Cash and cash equivalents	93,959		93,959		$ 50,010
Inventories	450,628		450,628		506,650
Other assets	25,711		25,711		35,105
Total assets	570,298		570,298		591,765
Accounts payable and accrued liabilities	79,941		79,941		79,108
Notes payable	209,653		209,653		236,665
Total liabilities	289,594		289,594		315,773
Hovnanian Enterprises, Inc.	125,346		125,346		114,950
Others	155,358		155,358		161,042
Total equity	280,704		280,704		275,992
Total liabilities and equity	$ 570,298		$ 570,298		$ 591,765
Debt to capitalization ratio	43.00%		43.00%		46.00%
Revenues	$ 121,156	194,539	$ 342,669	350,035
Cost of sales and expenses	(112,749)	(173,073)	(320,080)	(347,439)
Joint venture net income (loss)	8,407	21,466	22,589	2,596
Our share of net income (loss)	3,578	10,705	20,202	6,802
Land Development Joint Venture [Member] \| Corporate Joint Venture [Member]
Cash and cash equivalents	2,139		2,139		$ 2,275
Inventories	8,791		8,791		8,004
Other assets
Total assets	10,930		10,930		10,279
Accounts payable and accrued liabilities	862		862		746
Notes payable
Total liabilities	862		862		746
Hovnanian Enterprises, Inc.	4,876		4,876		4,369
Others	5,192		5,192		5,164
Total equity	10,068		10,068		9,533
Total liabilities and equity	$ 10,930		$ 10,930		$ 10,279
Debt to capitalization ratio	0.00%		0.00%		0.00%
Revenues	$ 1,383	1,367	$ 4,979	4,985
Cost of sales and expenses	(846)	(1,057)	(3,963)	(4,338)
Joint venture net income (loss)	537	310	1,016	647
Our share of net income (loss)	$ 268	$ 155	$ 508	$ 323

Note 19 - Fair Value of Financial Instruments (Details Textual) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018	Oct. 31, 2018
Loans Held for Sale Mortgages Unpaid Principal	$ 81,400		$ 81,400		$ 127,600
Other Commitment, Total	18,000		18,000
Impairment of Real Estate	100	$ 0	1,100	$ 2,100
Senior Secured Revolving Credit Facility [Member]
Long-term Line of Credit, Total	0		0		$ 0
Loan Origination Commitments [Member]
Loan Applications in Process	602,500		$ 602,500
Loan Origination Commitments [Member] \| Maximum [Member]
Number of Days in Committment			60 days
Interest Rate Committed Loan Applications [Member]
Interest Rate Committed Loan Applications	$ 51,600		$ 51,600

Note 19 - Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Thousands

Jul. 31, 2019

Oct. 31, 2018

Total

$ 83,852

$ 130,694

Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member]

Mortgage loans held for sale

^[1]

83,846

130,709

Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Interest Rate Lock Commitments [Member]

Derivative Fair Value

(28)

Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Forward Contracts [Member]

Derivative Fair Value

$ (36)

$ 13

[1]	The aggregate unpaid principal balance was $81.4 million and $127.6 million at July 31, 2019 and October 31, 2018, respectively.

Note 19 - Fair Value of Financial Instruments - Changes in Fair Values Included in Income (Loss) (Details) - Financial Services Revenue Line Item [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Loans Held for Sale [Member]
Fair value included in net loss all reflected in financial services revenues	$ (477)	$ (315)	$ 2,465	$ 2,226
Interest Rate Lock Commitments [Member]
Fair value included in net loss all reflected in financial services revenues	25	53	42	(17)
Forward Contracts [Member]
Fair value included in net loss all reflected in financial services revenues	$ (57)	$ (41)	$ (36)	$ 83

Note 19 - Fair Value of Financial Instruments - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2019	Jul. 31, 2018	Jul. 31, 2019	Jul. 31, 2018
Total Losses	$ (100)	$ 0	$ (1,100)	$ (2,100)
Sold and Unsold Homes and Lots Under Development [Member] \| Fair Value, Inputs, Level 3 [Member] \| Fair Value, Nonrecurring [Member]
Pre-Impairment Amount	1,218		5,124	11,170
Total Losses	(118)		(1,085)	(2,117)
Fair Value of Inventory	1,100		4,039	9,053
Land and Land Options Held for Future Development or Sale [Member] \| Fair Value, Inputs, Level 3 [Member] \| Fair Value, Nonrecurring [Member]
Pre-Impairment Amount			6,302
Total Losses			(43)
Fair Value of Inventory			$ 6,259

Note 19 - Fair Value of Financial Instruments - Fair Value of Notes (Details) (Parentheticals)

9 Months Ended

12 Months Ended

Jul. 31, 2019

Oct. 31, 2018

Jan. 15, 2019

Jul. 27, 2017

Nov. 01, 2011

9.5% Senior Secured Notes Due 2020 [Member] | Senior Secured Notes [Member]

9.50%

The 2.0% 2021 Notes [Member] | Senior Secured Notes [Member]

Nov. 15, 2020

2.00%

^[1],[2]

2.00%

^[1],[2]

2.00%

The 5.0% 2021 Notes [Member] | Senior Secured Notes [Member]

^[1],[2]

Nov. 01, 2021

5.00%

^[1],[2]

5.00%

^[1],[2]

5.00%

The 10.0% 2022 Notes [Member] | Senior Secured Notes [Member]

^[1],[2]

Nov. 01, 2021

10.00%

^[1],[2]

10.00%

^[1],[2]

10.00%

The 10.5% 2024 Notes [Member]

^[1],[2]

Jul. 15, 2022

The 10.5% 2024 Notes [Member] | Senior Secured Notes [Member]

10.50%

^[1],[2]

10.50%

The 10.5% 2024 Notes [Member] | Senior Notes [Member]

^[1],[2]

Jul. 15, 2024

The 13.5% 2026 Notes [Member] | Senior Notes [Member]

10.50%

13.50%

The 5.0% 2040 Notes [Member] | Senior Notes [Member]

Feb. 01, 2026

5.00%

Senior Unsecured Term Loan Credit Facility Due 2027 [Member] | Unsecured Senior Term Loan [Member]

Feb. 01, 2040