Hovnanian Enterprises, Inc.

Form 10-K

Exhibit 12

RATIO OF EARNINGS TO FIXED CHARGES

	Fiscal Year Ended
(Dollars In thousands)	October 31, 2012			October 31, 2011			October 31, 2010			October 31, 2009			October 31, 2008
Net (loss) income	$	(66,197	)	$	(286,087	)	$	2,588		$	(716,712	)	$	(1,124,590	)
Add:
Federal and state (benefit) income tax provision		(35,051	)		(5,501	)		(297,870	)		44,693			(43,458	)
Interest expensed		152,433			171,845			182,359			200,469			176,336
Interest expensed mortgage and financing subsidiaries		2,514			1,889			1,848			1,728			3,601
Distributions of earnings of unconsolidated joint ventures, net of (loss) income from unconsolidated joint ventures		(3,611	)		10,541			1,295			50,134			44,061
Amortization of bond prepaid expenses		3,713			3,978			3,310			14,300			7,847
Amortization of bond discounts		3,149			2,069			1,741			1,179			821
Total income (loss) earnings	$	56,950		$	(101,266	)	$	(104,729	)	$	(404,209	)	$	(935,382	)
Fixed Charges:
Interest incurred	$	147,048		$	156,998		$	154,307		$	194,702		$	190,801
Interest incurred mortgage and financing subsidiaries		2,434			1,959			1,848			1,728			3,601
Amortization of bond prepaid expenses		3,713			3,978			3,310			14,300			7,847
Amortization of bond discounts		3,149			2,069			1,741			1,179			821
Interest included in rent expense (a)		5,663			6,612			7,914			12,206			15,036
Total fixed charges	$	162,007		$	171,616		$	169,120		$	224,115		$	218,106
Ratio of earnings to fixed charges	(b)			(b)			(b)			(b)			(b)

RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

	Fiscal Year Ended
(Dollars In thousands)	October 31, 2012		October 31, 2011			October 31, 2010			October 31, 2009			October 31, 2008
Total income (loss) earnings – above	$	56,950	$	(101,266	)	$	(104,729	)	$	(404,209	)	$	(935,382	)
Total fixed charges – above	$	162,007	$	171,616		$	169,120		$	224,115		$	218,106
Preferred stock dividends (adjusted to pretax dollars)
Combined fixed charges and preferred stock dividends	$	162,007	$	171,616		$	169,120		$	224,115		$	218,106
Ratio of earnings to combined fixed charges and preferred stock dividends	(c)		(c)			(c)			(c)			(c)

(a) Management has determined the interest component of rent expense to be 33%.

(b) Earnings for the year ended October 31, 2012, 2011, 2010, 2009 and 2008 were insufficient to cover fixed charges for such period by $105.1 million, $272.9 million, $273.8 million, $628.3 million and $1,153.5 million, respectively.

(c) Earnings for the year ended October 31, 2012, 2011, 2010, 2009 and 2008 were insufficient to cover fixed charges and preferred stock dividends for such period by $105.1 million, $272.9 million, $273.8 million, $628.3 million and $1,153.5 million, respectively.  Due to restrictions in our indentures on our senior and senior secured notes, we are currently prohibited from paying dividends on our preferred stock and did not make any dividend payments in fiscal 2012, 2011, 2010, 2009 and 2008.