*Deal of the Century 2 Promotion:

*Offer, prices, programs, plans and availability are subject to change without notice. Purchaser must contract between September 5, 2008 and September 8, 2008 to qualify. Incentives and discounts vary by community. See Sales Consultant for details. Realtor incentives offered in select communities only.

**Houston Chronicle “Post It Note” $10,000 Drawing- Rules & Regulations:

**THE PROMOTION:  The Promotion begins at 10am Central Time on September 5, 2008 and ends on 7pm Central Time on September 8, 2008. There is one (1) way to enter: Entrant must visit a K. Hovnanian of Houston II, L.L.C. community and present the Houston Chronicle post-it note advertisement on initial visit.  Entrant must also complete the K. Hovnanian of Houston II, L.L.C. “Guest Registration” card completely with valid name, address, city, state, zip code and phone number and provide a copy of valid driver’s license or other form of valid photo identification.  One entry per household, regardless of number of communities visited.  In the event more than one (1) entry is received from any one person or address, the first entry processed will be considered the only valid entry received for inclusion in the Promotion period.

ELIGIBILITY: The Promotion is open only to legal residents of the US who are at least 18 years of age or older and have a valid driver’s license at the time of entry. Employees, directors and officers and their immediate families (spouses and siblings, parents and children and their spouses) and household members of K. Hovnanian of Houston II, L.L.C. and their respective parent companies, subsidiaries and affiliates are not eligible. Promotion void in where prohibited by law.  Persons not legally residing within the United States are not eligible for any prize.

PRIZE: There is one (1) Grand Prize of $10,000 cash, payable in the form of bank check.

WINNER SELECTION AND NOTIFICATION: The Grand Prize winner will be selected in a random drawing to be held on or about September 15, 2008 from among all eligible entries received during the Promotion period. Drawings will be conducted by K. Hovnanian of Houston II, L.L.C. and observed by Melton & Melton, L.L.P.   Potential winner will be contacted by telephone initially and confirmed in writing, and will be required to complete and return an Affidavit of Eligibility and Liability Release and, except where prohibited by law, a Publicity Release Form (“Affidavit/Release”) within seven (7) days of receipt. Failure to return these documents within the required time period may result in disqualification and selection of an alternate winner. Except where prohibited by law, acceptance of a prize constitutes permission for Sponsor to use Finalist’s name, likeness, and statements for promotional, advertising and marketing purposes via any media world-wide without additional payment or consideration. Odds of winning will depend on the total number of eligible entries received.

PRIZE CONDITIONS: No other substitute for the prize offered may be made, except at the sole discretion of K. Hovnanian of Houston II, L.L.C., who reserves the right to substitute a prize in whole or in part with another prize of comparable or greater value if the intended prize is not available or able to be awarded for any reason as determined by K. Hovnanian of Houston II, L.L.C.. Winner will be responsible for all taxes (not limited to federal, state, local and/or income) on prize and will be required to provide his/her Social Security number for tax reporting purposes. A Misc. income Form 1099 will be filed with the Internal Revenue Service for the fair market value of all prizes awarded.

GENERAL CONDITIONS: By participating, Entrants (a) release K. Hovnanian of Houston II, L.L.C., their respective directors, officers, agents and employees from any and all liability for any claims, costs, injuries, losses or damages of any kind caused by their participation, including the unauthorized or illegal access to personally identifiable or sensitive information or the acceptance, possession, use, or misuse of the prize(s) offered in the Promotion; and (b) acknowledge that said parties have neither made nor are in any manner responsible or liable for any warranty, representation or guarantee, expressed or implied, in fact or in law, relative to a prize offered. K. Hovnanian of Houston II, L.L.C. is not responsible for incorrect or inaccurate transcription of Entry information, or for any human or other error, technical malfunctions, lost/delayed data or voice transmission, omission, interruption, deletion, defect, line failures of any telephone network, computer equipment, software, inability to access any online service or website or to complete a telephone call or facsimile transaction, or any other error or malfunction, or late, lost, or misdirected mail, or any injury or damage to participant’s or any other person’s computer related to or resulting from participation in this Sweepstakes.

If for any reason the Promotion is not capable of being executed as planned, or infection by computer virus, bugs, tampering, unauthorized intervention, fraud, action of entrants, technical failures or any other causes which in the opinion of K. Hovnanian of Houston II, L.L.C., corrupt or affect the administration, security, fairness, integrity, or proper conduct of the Promotion, K. Hovnanian of Houston II, L.L.C. reserves the right at its sole discretion to disqualify any suspect Entry or entrant and to cancel, terminate, modify or suspend the Promotion. In the event of any cancellation, termination or suspension, the determination of the Grand Prize winner will be made, from among all eligible, non-suspect Entries received as of the date of the termination, cancellation or suspension. Entrants agree that (a) any and all disputes, claims and causes of action arising out of, or connected with, the Promotion or any prize awarded shall be resolved individually, without resort to any form of class action, and exclusively by the appropriate court located in the state of Texas (b) any and all claims, judgments and awards shall be limited to actual out-of-pocket costs incurred, including costs associated with participation in the Promotion but in no event attorneys’ fees; and (c) under no circumstances will registrant be permitted to obtain awards for, and registrant hereby waives all rights to, claim punitive, incidental and consequential damages and any other damages, other than out-of-pocket expenses.

WINNERS LIST: For the name of the winner, mail a stamped, self-addressed envelope to: K. Hovnanian of Houston II, L.L.C., 13111 NW Freeway, Suite 200, Houston, TX 77040, Attn: Deal of the Century Winner.  Requests must be received by October 31, 2008.