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From Odwiki

This is the environment variable that contains the root path of the currently used Houdini installation. On Windows, it is initialized to the appropriate value when a particular Houdini executable is started. On Windows, the "Command Line Tools" application serves as a way to start up a command prompt with Houdini-specific variables initialized. On unix-like platforms, the "houdini_setup" script initializes HFS. There are also some other shortcuts that are created which are commonly used:

• HH which expands to $HFS/houdini
• HB which expands to $HFS/bin