Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Jun. 30, 2013 | |
Document and Entity Information: | ' | ' |
Entity Registrant Name | 'REAL ESTATE ASSOCIATES LTD/CA | ' |
Document Type | '10-K | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000225789 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | 16,216.45 | ' |
Entity Public Float | ' | $0 |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
Entity Incorporation, Date of Incorporation | 15-Sep-77 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $1,292 | $185 |
Receivables and deposits | 35 | 91 |
Restricted escrows | 452 | 412 |
Other assets | ' | 163 |
Investment property: | ' | ' |
Land | ' | 366 |
Buildings and related personal property | ' | 3,703 |
Total investment property | ' | 4,069 |
Less accumulated depreciation | ' | -7 |
Investment property, net | ' | 4,062 |
Total assets | 1,779 | 4,913 |
Liabilities: | ' | ' |
Accounts payable and accrued expenses | 49 | 104 |
Accrued fees due to General Partner | 590 | 535 |
Advances and accrued interest due to General Partner or affiliates | 543 | 877 |
Tenant security deposit liability | ' | 63 |
Accrued property taxes | ' | 85 |
Deferred revenue | ' | 23 |
Mortgage notes payable | ' | 3,221 |
Total liabilities | 1,182 | 4,908 |
Partners' Capital Equity (Deficiency): | ' | ' |
General partner | -121 | -127 |
Limited partners | 718 | 132 |
Total partners' capital equity (deficiency) | 597 | 5 |
Total liabilities and partners' capital equity (deficiency) | $1,779 | $4,913 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues: | ' | ' |
Rental income | $1,024 | $50 |
Other income | 300 | 17 |
Total revenues | 1,324 | 67 |
Operating Expenses: | ' | ' |
Operating Costs | 923 | 39 |
Depreciation and amortization | -155 | -12 |
Property taxes | 146 | 5 |
Management fees - General Partner | 54 | 54 |
General and administrative | 11 | 7 |
Legal and accounting | 149 | 162 |
Interest expense | 129 | 51 |
Total operating expenses | 1,567 | 330 |
Income (Loss) from partnership operations | -243 | -263 |
Gain on sale of Limited Partner Interest in Local Partnerships | 483 | ' |
Gain on sale of rental property | 204 | ' |
Distributions in excess of investment in Local Partnerships | 148 | 136 |
Gain on consolidation of Local Partnership | ' | 1,385 |
Net Income (Loss) | 592 | 1,258 |
Net Income (Loss) allocated to general partner (1%) | 6 | 13 |
Net Income (Loss) allocated to limited partners (99%) | $586 | $1,245 |
Net Income (Loss) per limited partnership interest | $36.06 | $76.53 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Partners' Capital (Deficiency) (USD $) | General Partner | Limited Partners | Total |
In Thousands | |||
Partners' capital equity (deficiency), beginning balance at Dec. 31, 2011 | ($140) | ($1,113) | ($1,253) |
Net Income (Loss) | 13 | 1,245 | 1,258 |
Partners' capital equity (deficiency), ending balance at Dec. 31, 2012 | -127 | 132 | 5 |
Net Income (Loss) | 6 | 586 | 592 |
Partners' capital equity (deficiency), ending balance at Dec. 31, 2013 | ($121) | $718 | $597 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | ' | ' |
Net Income (Loss) | $592 | $1,258 |
Adjustments to reconcile Net Income (Loss) to net cash provided by (used in) operating activities: | ' | ' |
Gain on consolidation of Local Partnership | ' | -1,385 |
Gain on sale of Limited Partner interest | -483 | ' |
Gain on sale of rental property | -204 | ' |
Distributions in excess of investments | -148 | ' |
Depreciation and amortization | 155 | 12 |
Change in accounts: | ' | ' |
Change in Receivables and deposits | 56 | -5 |
Change in Restricted escrows | -40 | 51 |
Change in Other assets | 163 | -37 |
Change in Accounts payable and accrued expenses | -55 | 7 |
Change in Accrued fees due to General Partner | 55 | 54 |
Change in Tenant security deposit liability | -63 | ' |
Accrued interest on advances | -184 | 45 |
Change in Deferred Revenues | -23 | -71 |
Change in Accrued property tax | -85 | 5 |
Net cash provided by (used in) operating activities | -264 | -66 |
Cash flows provided by (used in) investing activities: | ' | ' |
Proceeds from sale of rental property | 4,111 | ' |
Distributions in excess of investments | 148 | ' |
Gain on sale of Limited Partner interest | 483 | ' |
Increase in cash from consolidation of Local Partnership | ' | 173 |
Net cash provided by (used in) investing activities | 4,742 | 173 |
Cash flows provided by (used in) financing activities: | ' | ' |
Repayment of advances from General Partner | -150 | ' |
Principal payments on mortgage notes payable | -3,221 | ' |
Net cash flows provided by (used in) financing activities | -3,371 | ' |
Net increase (decrease) in cash and cash equivalents | 1,107 | 107 |
Cash and cash equivalents, beginning of period | 185 | 78 |
Cash and cash equivalents, end of period | 1,292 | 185 |
Supplemental disclosure of cash flow information: | ' | ' |
Cash paid for interest | ' | 6 |
Investment property | ' | ' |
Supplemental disclosure of cash flow information: | ' | ' |
Non-cash transaction associated with consolidation of Local Partnership | ' | 4,069 |
Receivables and deposits | ' | ' |
Supplemental disclosure of cash flow information: | ' | ' |
Non-cash transaction associated with consolidation of Local Partnership | ' | 80 |
Other assets | ' | ' |
Supplemental disclosure of cash flow information: | ' | ' |
Non-cash transaction associated with consolidation of Local Partnership | ' | 131 |
Restricted escrows | ' | ' |
Supplemental disclosure of cash flow information: | ' | ' |
Non-cash transaction associated with consolidation of Local Partnership | ' | 463 |
Accounts payable and accrued expenses | ' | ' |
Supplemental disclosure of cash flow information: | ' | ' |
Non-cash transaction associated with consolidation of Local Partnership | ' | 73 |
Tenant security deposit liability | ' | ' |
Supplemental disclosure of cash flow information: | ' | ' |
Non-cash transaction associated with consolidation of Local Partnership | ' | 63 |
Deferred revenue | ' | ' |
Supplemental disclosure of cash flow information: | ' | ' |
Non-cash transaction associated with consolidation of Local Partnership | ' | 94 |
Accrued property taxes | ' | ' |
Supplemental disclosure of cash flow information: | ' | ' |
Non-cash transaction associated with consolidation of Local Partnership | ' | 80 |
Mortgage notes payable | ' | ' |
Supplemental disclosure of cash flow information: | ' | ' |
Non-cash transaction associated with consolidation of Local Partnership | ' | $3,221 |
Note_1_Organization_and_Summar
Note 1 - Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 1 - Organization and Summary of Significant Accounting Policies | ' |
Note 1 - Organization and Summary of Significant Accounting Policies | |
Organization | |
Real Estate Associates Limited (“REAL” or the “Partnership”) was formed under the California Limited Partnership Act on September 15, 1977. The Partnership was formed to invest either directly or indirectly in other partnerships which own or lease and operate primarily federal, state and local government-assisted housing projects. The general partner is National Partnership Investments, LLC, a California limited liability company (“NAPICO” or the "General Partner"). The General Partner is a subsidiary of Bethesda Holdings II, LLC, a privately held real estate asset management company (“Bethesda”). Bethesda acquired the General Partner on December 19, 2012, pursuant to an option agreement with Aimco/Bethesda Holdings, Inc., a subsidiary of Apartment Investment and Management Company (“Aimco”), a publicly traded real estate investment trust. The Partnership shall be dissolved only upon the expiration of 53 complete calendar years (December 31, 2031) from the date of the formation of the Partnership or the occurrence of other events as specified in the terms of the Partnership agreement. The business of the Partnership is conducted primarily by NAPICO. | |
The general partner has a one percent interest in profits and losses of the Partnership. The limited partners have the remaining 99 percent interest in proportion to their respective investments. A withdrawal amendment was entered into as of September 12, 2002 and became effective 90 days thereafter by and among NAPICO and Charles Boxenbaum, whereby Boxenbaum’s 45% general partner interest was converted to that of a limited partner in the Partnership entitled to participate in the profits and losses of the Partnership in an amount equal to 45% of the amounts otherwise allocable to the general partners of the Partnership. The General Partner is the sole remaining general partner of the Partnership. | |
Upon total or partial liquidation of the Partnership or the disposition or partial disposition of a project or project interest and distribution of the proceeds, the general partner will be entitled to a liquidation fee as stipulated in the Partnership agreement. The limited partners will have a priority return equal to their invested capital attributable to the project(s) or project interest(s) sold and shall receive from the sale of the project(s) or project interest(s) an amount sufficient to pay state and federal income taxes, if any, calculated at the maximum rate then in effect. The general partners' liquidation fee may accrue but shall not be paid until the limited partners have received distributions equal to 100 percent of their capital contributions. | |
Basis of Presentation | |
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States. | |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | |
Principles of Consolidation | |
As a result of the assignment of the local operating general partner interest in Bethel Towers Limited Dividend Housing Association (“Bethel Towers”) to the Partnership on December 10, 2012 (as discussed in Note 2), the Partnership began consolidating the assets, liabilities, and operations of Bethel Towers as of December 10, 2012. The consolidated financial statements of the Partnership include its 99.99% general and limited partner interests in Bethel Towers. All significant inter-partnership balances have been eliminated. The apartment property owned by Bethel Towers is located in Detroit, Michigan. | |
Method of Accounting for Investments in Limited Partnerships | |
With the exception of Bethel Towers, the investments in local partnerships (the “Local Partnerships”) were accounted for on the equity method. | |
Abandonment of Limited Partnership Interests | |
During the years ended December 31, 2013 and 2012, the number of limited partnership interests decreased by 34.55 and 17 interests, respectively, due to limited partners abandoning their interests. In abandoning his or her limited partnership interest(s), a limited partner relinquishes all rights, title, and interest in the Partnership as of the date of abandonment. However, the limited partner is allocated his or her share of net income or loss for that year. At December 31, 2013 and 2012, the Partnership had outstanding 16,216.45 and 16,251 limited partnership interests, respectively. | |
Net Income (Loss) Per Limited Partnership Interest | |
Net income (loss) per limited partnership interest was computed by dividing the limited partners' share of net income (loss) by the number of limited partnership interests outstanding at the beginning of the year. The number of limited partnership interests used was 16,251 and 16,268 for the years ended December 31, 2013 and 2012, respectively. | |
Cash and Cash Equivalents | |
Cash and cash equivalents include cash on hand and in banks. At certain times, the amount of cash deposited at a bank may exceed the limit on insured deposits. Cash balances included approximately $47,000 at December 31, 2012, that were maintained by an affiliated management company on behalf of affiliated entities in a cash concentration account. In 2013 the affiliated management company maintained separate cash accounts with an FDIC insured bank for each of its affiliated entities including REAL. | |
Impairment of Long-Lived Assets | |
The Partnership reviews its investments in long-lived assets to determine if there has been any impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the sum of the expected future cash flows is less than the carrying amount of the assets, the Partnership recognizes an impairment loss. There were no impairment losses recognized during the years ended December 31, 2013 and 2012. | |
Fair Value of Financial Instruments | |
Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 825, “Financial Instruments”, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate fair value. Fair value is defined as the amount at which the instruments could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The Partnership is required to classify these fair value measurements into one of three categories, based on the nature of the inputs used in the fair value measurement. Level 1 of the hierarchy includes fair value measurements based on unadjusted quoted prices in active markets for identical assets or liabilities the Partnership can access at the measurement date. Level 2 includes fair value measurements based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 includes fair value measurements based on unobservable inputs. The classification of fair value measurements is subjective and generally accepted accounting principles requires the Partnership to disclose more detailed information regarding those fair value measurements classified within the lower levels of the hierarchy. The Partnership believes that the carrying amount of its financial instruments approximates their fair value due to the short-term maturity of these instruments. See Note 2 regarding fair value determinations for the assets and liabilities of Bethel Towers. | |
Segment Reporting | |
ASC 280-10, "Segment Reporting", established standards for the way that public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports. ASC 280-10 also established standards for related disclosures about products and services, geographic areas, and major customers. As defined in ASC 280-10, the Partnership has only one reportable segment. | |
Variable Interest Entities | |
The Partnership consolidates any variable interest entities in which the Partnership holds a variable interest and is the primary beneficiary. Generally, a variable interest entity, or VIE, is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group the holders of the equity investment at risk lack (i) the ability to make decisions about an entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. The primary beneficiary of a VIE is generally the entity that has (a) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (b) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. | |
In determining whether it is the primary beneficiary of a VIE, the Partnership considers qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of the Partnership’s investment; the obligation or likelihood for the Partnership or other investors to provide financial support; and the similarity with and significance to the business activities of the Partnership and the other investors. Significant judgments related to these determinations include estimates about the current and future fair values and performance of real estate held by these VIEs and general market conditions. | |
On December 10, 2012, the Partnership became the operating general partner of Bethel Towers, as a result of the assignment of the local operating general partner interest in Bethel Towers to the Partnership. Therefore, effective December 10, 2012, the Partnership began consolidating this Local Partnership and it is no longer considered a VIE (see Note 2). | |
At December 31, 2013 and 2012, the Partnership held variable interests in zero and four VIEs, respectively, for which the Partnership is not the primary beneficiary. The Partnership has concluded, based on its qualitative consideration of the partnership agreement, the partnership structure and the role of the general partner in each of the Local Partnerships, that the general partner of each of the Local Partnerships is the primary beneficiary of the respective Local Partnership. In making this determination, the Partnership considered the following factors: | |
· the general partners conduct and manage the business of the Local Partnerships; | |
· the general partners have the responsibility for and sole discretion over selecting a property management agent for the Local Partnerships’ underlying real estate properties; | |
· the general partners are responsible for approving operating and capital budgets for the properties owned by the Local Partnerships; | |
· the general partners are obligated to fund any recourse obligations of the Local Partnerships; | |
· the general partners are authorized to borrow funds on behalf of the Local Partnerships; and | |
· the Partnership, as a limited partner in each of the Local Partnerships, does not have the ability to direct or otherwise significantly influence the activities of the Local Partnerships that most significantly impact such entities’ economic performance. | |
The Partnership was involved with those VIEs as a non-controlling limited partner equity holder. The Partnership’s maximum exposure to loss as a result of its involvement with the unconsolidated VIEs is limited to the Partnership’s recorded investments in and receivables from these VIEs, which were zero at December 31, 2013 and 2012. The Partnership may be subject to additional losses to the extent of any financial support that the Partnership voluntarily provides in the future. | |
Tenant Security Deposits | |
At December 31, 2012, Bethel Towers required security deposits from lessees for the duration of the lease. Deposits are refunded when the tenant vacates, provided the tenant has not damaged the space and is current on rental payments. | |
Investment Property | |
At December 31, 2012, investment property consisted of one apartment complex and is stated at fair value as of the date the Partnership began consolidating Bethel Towers. Bethel Towers capitalizes costs incurred in connection with capital additions activities, including construction projects, other tangible property improvements and replacements of existing property components. Bethel Towers capitalizes interest during periods in which construction projects are in progress. Capitalized costs are depreciated over the estimated useful life of the asset. Bethel charges to expense as incurred costs that do not relate to capital additions activities, including ordinary repairs, maintenance and resident turnover costs. | |
Depreciation | |
Depreciation was provided by the straight-line method over the estimated life of the apartment property and related personal property. | |
Leases | |
Bethel Towers generally leased apartment units for twelve-month terms or less. Rental income attributable to leases is recognized as rents become due. Bethel Towers evaluated all accounts receivable from residents and established an allowance, after the application of security deposits, for all receivables due from former tenants. | |
Restricted Escrows | |
Bethel Towers had established escrows for real estate taxes, insurance, capital improvements and certain operating expenses for its investment property. The balance in the escrow accounts at December 31, 2012 was approximately $412,000. | |
Intangible Assets | |
Intangible assets, associated with the consolidation of Bethel Towers, consisted of in-place leases and was included in other assets at December 31, 2012. The intangible assets related to in-place leases were comprised of: | |
1) The value of the above-market and below-market leases in-place. An asset or liability is recognized based on the difference between (a) the contractual amounts to be paid pursuant to the in-place leases and (b) the Partnership’s estimate of fair market lease rates for the corresponding in-place leases, measured over the period, including estimated lease renewals for below-market leases, that the leases are expected to remain in effect. | |
2) The estimated unamortized portion of avoided leasing commissions and other costs that would be incurred to originate the in-place leases. | |
3) The value associated with vacant units during the absorption period (estimates of lost rental revenue during the expected lease-up periods based on current market demand and stabilized occupancy levels). The values of the above-market and below-market leases are amortized to rental revenue over the expected remaining terms of the associated leases, which include reasonably assured renewal periods. Other intangible assets related to in-place leases are amortized to depreciation and amortization expense over the expected remaining terms of the associated leases. |
Note_2_Investments_in_and_Adva
Note 2 - Investments in and Advances To Local Partnerships | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 2 - Investments in and Advances To Local Partnerships | ' |
Note 2 – Investment in and Advances to Local Partnerships | |
As of December 31, 2013 and 2012, the Partnership held limited partnership interests in zero and five Local Partnerships, respectively. The Local Partnerships as of December 31, 2013 and 2012, owned residential low income rental projects consisting of zero and 350 apartment units, respectively. The mortgage loans for these projects were payable to or insured by various government agencies. | |
Effective December 10, 2012, the Partnership designated itself as the operating general partner of Bethel Towers pursuant to the terms of the partnership agreement for Bethel Towers whereby the Partnership was to be named the operating general partner of Bethel Towers upon the death of the existing operating general partner. Accordingly, the 0.99% local operating general partner interest in Bethel Towers was assigned to the Partnership as of December 10, 2012. As a result of this assignment, the Partnership now consolidates this Local Partnership (as discussed in Note 1). All assets and liabilities of Bethel Towers were consolidated, effective December 10, 2012, at fair value. The Partnership recorded an intangible asset for the value of the in-place lease assets of approximately $131,000 determined by using internal valuation techniques that consider the terms of the in-place leases and current market data for comparable leases. This intangible asset will be amortized over a period of six months. The investment property was recorded at fair value determined by using internal valuation techniques that considered comparable market transactions, discounted cash flow techniques, replacement costs and other available information. The investment property will be depreciated over 30 years. The mortgage notes payable were recorded at fair value determined by discounting future cash flows using a discount rate commensurate with that currently believed to be available to the Partnership for similar term mortgage notes payable. Due to the short term nature of the balances, the Partnership assumed the fair value of all other current assets and liabilities approximated their carrying value and no adjustments were recorded. The consolidation resulted in a gain of $1,385,000 as a result of the fair value of the assets of Bethel Towers exceeding the fair value of Bethel Towers’ liabilities. The fair value measurements of the investment property, mortgage notes payable and intangible assets have been classified by the Partnership within Level 2 of the fair value hierarchy as described in Note 1. | |
In July 2013, the Partnership sold its limited partnership interest in New-Bel-Mo Enterprises L.P. (Belleville Manor) to an affiliate of the Local Operating General Partner. The Partnership received $20,500 in proceeds from the sale. The Partnership's investment balance in this Local Partnership was zero at both December 31, 2013 and 2012. | |
In July 2013, the Partnership sold its limited partnership interest in Clinton Apartments, Ltd. to an affiliate of the Local Operating General Partner. The Partnership received $37,000 in proceeds from the sale. The Partnership's investment balance in this Local Partnership was zero at both December 31, 2013 and 2012. | |
In July 2013, the Partnership sold its limited partnership interest in Emporia Limited (Northwood Village) to an affiliate of the Local Operating General Partner. The Partnership received $400,000 in proceeds from the sale. The Partnership's investment balance in this Local Partnership was zero at both December 31, 2013 and 2012. | |
In August 2013, the Partnership sold its limited partnership interest in Williamson Towers to an affiliate of the Local Operating General Partner. The Partnership received $25,000 in proceeds from the sale. The Partnership's investment balance in this Local Partnership was zero at both December 31, 2013 and 2012. | |
In December 2013, the Partnership sold Bethel Towers. The Partnership received approximately $1,079,000 in proceeds from the sale. | |
With the exception of its investment in Bethel Towers, the Partnership, as a limited partner, does not have a contractual relationship with the Local Partnerships or exercise control over the activities and operations, including refinancing or selling decisions, of the Local Partnerships that would require or allow for consolidation. Accordingly, the Partnership accounts for its investments in the Local Partnerships using the equity method. The Partnership is allocated profits and losses of the Local Partnerships based upon its respective ownership percentage (between 95% and 99%). Distributions of surplus cash from operations from most of the Local Partnerships are restricted by the Local Partnerships’ Regulatory Agreements with the United States Department of Housing and Urban Development (“HUD”). These restrictions limit the distribution to a portion, generally less than 10%, of the initial invested capital. The excess surplus cash is deposited into a residual receipts reserve, of which the ultimate realization by the Partnership is uncertain as HUD frequently retains it upon sale or dissolution of the Local Partnership. The Partnership is allocated profits and losses and receives distributions from refinancings and sales in accordance with the Local Partnerships’ partnership agreements. These agreements usually limit the Partnership’s distributions to an amount substantially less than its ownership percentage in the Local Partnership. | |
The individual investments are carried at cost plus the Partnership’s share of the Local Partnership’s profits less the Partnership’s share of the Local Partnership’s losses, distributions and impairment charges. The Partnership is not legally liable for the obligations of the Local Partnerships and is not otherwise committed to provide additional support to them. Therefore, it does not recognize losses once its investment in each of the Local Partnerships reaches zero. Distributions from the Local Partnerships are accounted for as a reduction of the investment balance until the investment balance is reduced to zero. When the investment balance has been reduced to zero, subsequent distributions received are recognized as income in the accompanying consolidated statements of operations. The Partnership received operating distributions of approximately $148,000 and $136,000 from four Local Partnerships for the years ended December 31, 2013 and 2012, respectively. | |
For those investments where the Partnership has determined that the carrying value of its investments approximates the estimated fair value of those investments, the Partnership’s policy is to recognize equity in income of the Local Partnerships only to the extent of distributions received and amortization of acquisition costs from those Local Partnerships. Therefore, the Partnership limits its recognition of equity earnings to the amount it expects to ultimately realize. | |
Prior to January 1, 2011, the investment balance in four of the Local Partnerships had been reduced to zero. The Partnership’s investment balance in Bethel Towers was zero prior to its consolidation effective December 10, 2012. | |
At times, advances are made to the Local Partnerships. Advances made by the Partnership to the individual Local Partnerships are considered part of the Partnership's investment in the Local Partnerships. Advances made to Local Partnerships for which the investment has been reduced to zero are charged to expense. During the years ended December 31, 2013 and 2012 the Partnership made no such advances. |
Note_3_Transactions_With_Affil
Note 3 - Transactions With Affiliated Parties | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 3 - Transactions With Affiliated Parties | ' |
Note 3 – Transactions with Affiliated Parties | |
Under the terms of the Restated Certificate and Agreement of Limited Partners, the Partnership is obligated to NAPICO for an annual management fee equal to 0.5 percent of the Partnership’s original invested assets of the limited partnerships and is calculated at the beginning of each year. Invested assets are defined as the costs of acquiring project interests, including the proportionate amount of the mortgage loans related to the Partnership's interest in the capital accounts of the respective Local Partnerships. The management fee incurred was approximately $54,000 for both years ended December 31, 2013 and 2012. | |
At December 31, 2013 and 2012, the Partnership owed NAPICO approximately $538,000 and $484,000, respectively, for management fees and this amount is included in accrued fees due to General Partner. | |
The General Partner was entitled to receive a liquidation fee of approximately $51,000 related to the sale of the limited partnership interest in Cherry Hill Apartments, which was sold in September 2003. This fee was accrued and is included in accrued fees due to General Partner. The fee will not be paid until the limited partners have received a return of their original invested capital. | |
The General Partner and its affiliates made no advances to the Partnership during the years ended December 31, 2013 and 2012. Interest on advances is charged at prime plus 2%, or 5.25% at December 31, 2013. Interest expense was approximately $42,000 and $45,000 for the years ended December 31, 2013 and 2012, respectively. There were accrued interest payments of $226,000 made during the year ended December 31, 2013. No payments were made in 2012. At December 31, 2013 and 2012, the Partnership owed approximately $543,000 and $877,000, respectively, in advances and related accrued interest to the General Partner and its affiliates. |
Note_4_Income_Taxes
Note 4 - Income Taxes | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
Note 4 - Income Taxes | ' | ||
Note 4 - Income Taxes | |||
The Partnership is not taxed on its income. The partners are taxed in their individual capacities based upon their distributive share of the Partnership's taxable income or loss and are allowed the benefits to be derived from off-setting their distributive share of the tax losses against taxable income from other sources subject to passive loss limitations. The taxable income or loss differs from amounts included in the consolidated statements of operations because different methods are used in determining the losses of the Local Partnerships as discussed below. The taxable income or loss is allocated to the partner groups in accordance with Section 704(b) of the Internal Revenue Code and therefore is not necessarily proportionate to the interest percentage owned. | |||
A reconciliation between the Partnership’s reported net income (loss) and the taxable income per the tax return is as follows (in thousands): | |||
Years Ended December 31, | |||
2013 | 2012 | ||
Net income (loss) per financial statements | $ 592 | $ 1,258 | |
Add (deduct): | |||
Other | 54 | 56 | |
Investment in and advances to Local Partnerships | 3,950 | (1,110) | |
Federal taxable income per tax return | $ 4,596 | $ 204 | |
Federal taxable income per limited partnership interest | 282.82 | $ 12.43 | |
The following is a reconciliation between the Partnership’s reported amounts and the federal tax basis of net assets and liabilities (in thousands): | |||
December 31, | |||
2013 | 2012 | ||
Net assets (liabilities) as reported | $ 597 | $ 5 | |
Add (deduct): | |||
Investment in Local Partnerships | -- | (3,948) | |
Deferred offering costs | 2,568 | 2,568 | |
Other | 624 | 531 | |
Net liabilities – Federal tax basis | $3,789 | $ (844) |
Note_5_Mortgage_Notes_Payable
Note 5 - Mortgage Notes Payable | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Notes | ' | |||||
Note 5 - Mortgage Notes Payable | ' | |||||
Note 5 – Mortgage Notes Payable | ||||||
Property | Principal Balance At December 31, 2012 | Monthly Payment Including Interest (1) | Stated Interest Rate | Maturity Date | Principal Balance Due At Maturity | |
(in thousands) | (in thousands) | (in thousands) | ||||
Bethel Towers 1st mortgage | $ 984 | $ 30 | 8.625% | 3/1/2016 | $ -- | |
Bethel Towers Home Rehabilitation mortgage | 2,160 | -- | 0.00% | 3/1/2016 | 2,160 | |
Mortgage premium, net | 77 | -- | -- | |||
$3,221 | $ 30 | $2,160 | ||||
(1) Monthly payment of principal and interest has not been reduced by the monthly government interest subsidy of approximately $20,000. | ||||||
The mortgage notes payable were secured by pledge of the Partnership’s consolidated property. | ||||||
On December 10, 2013, the mortgage was repaid as part of the sale (Note 2). |
Note_6_Contingencies
Note 6 - Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 6 - Contingencies | ' |
Note 6 – Contingencies | |
The General Partner is involved in various lawsuits arising from transactions in the ordinary course of business. In the opinion of management and the General Partner, the claims will not result in any material liability to the Partnership. |
Note_7_Pro_Forma_Financial_Sta
Note 7 - Pro Forma Financial Statements (unaudited) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
Note 7 - Pro Forma Financial Statements (unaudited) | ' | ||
Note 7 – Pro Forma Financial Statements (unaudited) | |||
The following pro forma condensed consolidated statements of operations for the years ended December 31, 2012, have been prepared as if the Bethel Towers transaction (see Note 2) had occurred on January 1, 2012. The pro forma information is not necessarily indicative of what the Partnership’s results of operations would have been assuming the consolidation nor does it purport to project the Partnership’s results of operations for any future period. | |||
Pro Forma Condensed Consolidated Statement of Operations | |||
(In thousands, except per Interest data) (Unaudited) | |||
2012 | |||
Rental and other income | $ 1,466 | ||
Expenses | (1,310) | ||
Net income | $ 156 | ||
Net income per limited partnership interest | $ 9.47 |
Note_8_Subsequent_Event
Note 8 - Subsequent Event | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 8 - Subsequent Event | ' |
Note 8 - Subsequent Event | |
The Partnership’s management evaluated subsequent events through the time this Annual Report on Form 10-K was filed. | |
During January 2014, the Partnership received approximately $451,000 of remaining escrow funds from the sale of Bethel Towers. |
Note_1_Organization_and_Summar1
Note 1 - Organization and Summary of Significant Accounting Policies: Organization (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Organization | ' |
Organization | |
Real Estate Associates Limited (“REAL” or the “Partnership”) was formed under the California Limited Partnership Act on September 15, 1977. The Partnership was formed to invest either directly or indirectly in other partnerships which own or lease and operate primarily federal, state and local government-assisted housing projects. The general partner is National Partnership Investments, LLC, a California limited liability company (“NAPICO” or the "General Partner"). The General Partner is a subsidiary of Bethesda Holdings II, LLC, a privately held real estate asset management company (“Bethesda”). Bethesda acquired the General Partner on December 19, 2012, pursuant to an option agreement with Aimco/Bethesda Holdings, Inc., a subsidiary of Apartment Investment and Management Company (“Aimco”), a publicly traded real estate investment trust. The Partnership shall be dissolved only upon the expiration of 53 complete calendar years (December 31, 2031) from the date of the formation of the Partnership or the occurrence of other events as specified in the terms of the Partnership agreement. The business of the Partnership is conducted primarily by NAPICO. | |
The general partner has a one percent interest in profits and losses of the Partnership. The limited partners have the remaining 99 percent interest in proportion to their respective investments. A withdrawal amendment was entered into as of September 12, 2002 and became effective 90 days thereafter by and among NAPICO and Charles Boxenbaum, whereby Boxenbaum’s 45% general partner interest was converted to that of a limited partner in the Partnership entitled to participate in the profits and losses of the Partnership in an amount equal to 45% of the amounts otherwise allocable to the general partners of the Partnership. The General Partner is the sole remaining general partner of the Partnership. | |
Upon total or partial liquidation of the Partnership or the disposition or partial disposition of a project or project interest and distribution of the proceeds, the general partner will be entitled to a liquidation fee as stipulated in the Partnership agreement. The limited partners will have a priority return equal to their invested capital attributable to the project(s) or project interest(s) sold and shall receive from the sale of the project(s) or project interest(s) an amount sufficient to pay state and federal income taxes, if any, calculated at the maximum rate then in effect. The general partners' liquidation fee may accrue but shall not be paid until the limited partners have received distributions equal to 100 percent of their capital contributions. |
Note_1_Organization_and_Summar2
Note 1 - Organization and Summary of Significant Accounting Policies: Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States. |
Note_1_Organization_and_Summar3
Note 1 - Organization and Summary of Significant Accounting Policies: Use of Estimates (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Use of Estimates | ' |
Use of Estimates | |
The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Note_1_Organization_and_Summar4
Note 1 - Organization and Summary of Significant Accounting Policies: Principles of Consolidation (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
As a result of the assignment of the local operating general partner interest in Bethel Towers Limited Dividend Housing Association (“Bethel Towers”) to the Partnership on December 10, 2012 (as discussed in Note 2), the Partnership began consolidating the assets, liabilities, and operations of Bethel Towers as of December 10, 2012. The consolidated financial statements of the Partnership include its 99.99% general and limited partner interests in Bethel Towers. All significant inter-partnership balances have been eliminated. The apartment property owned by Bethel Towers is located in Detroit, Michigan. |
Note_1_Organization_and_Summar5
Note 1 - Organization and Summary of Significant Accounting Policies: Method of Accounting For Investment in Local Partnerships (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Method of Accounting For Investment in Local Partnerships | ' |
Method of Accounting for Investments in Limited Partnerships | |
With the exception of Bethel Towers, the investments in local partnerships (the “Local Partnerships”) were accounted for on the equity method. |
Note_1_Organization_and_Summar6
Note 1 - Organization and Summary of Significant Accounting Policies: Abandonment of Limited Partnership Interests (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Abandonment of Limited Partnership Interests | ' |
Abandonment of Limited Partnership Interests | |
During the years ended December 31, 2013 and 2012, the number of limited partnership interests decreased by 34.55 and 17 interests, respectively, due to limited partners abandoning their interests. In abandoning his or her limited partnership interest(s), a limited partner relinquishes all rights, title, and interest in the Partnership as of the date of abandonment. However, the limited partner is allocated his or her share of net income or loss for that year. At December 31, 2013 and 2012, the Partnership had outstanding 16,216.45 and 16,251 limited partnership interests, respectively. |
Note_1_Organization_and_Summar7
Note 1 - Organization and Summary of Significant Accounting Policies: Net Income (Loss) Per Limited Partnership Interest (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Net Income (Loss) Per Limited Partnership Interest | ' |
Net Income (Loss) Per Limited Partnership Interest | |
Net income (loss) per limited partnership interest was computed by dividing the limited partners' share of net income (loss) by the number of limited partnership interests outstanding at the beginning of the year. The number of limited partnership interests used was 16,251 and 16,268 for the years ended December 31, 2013 and 2012, respectively. |
Note_1_Organization_and_Summar8
Note 1 - Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents include cash on hand and in banks. At certain times, the amount of cash deposited at a bank may exceed the limit on insured deposits. Cash balances included approximately $47,000 at December 31, 2012, that were maintained by an affiliated management company on behalf of affiliated entities in a cash concentration account. In 2013 the affiliated management company maintained separate cash accounts with an FDIC insured bank for each of its affiliated entities including REAL. |
Note_1_Organization_and_Summar9
Note 1 - Organization and Summary of Significant Accounting Policies: Impairment of Long-lived Assets (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Impairment of Long-lived Assets | ' |
Impairment of Long-Lived Assets | |
The Partnership reviews its investments in long-lived assets to determine if there has been any impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the sum of the expected future cash flows is less than the carrying amount of the assets, the Partnership recognizes an impairment loss. There were no impairment losses recognized during the years ended December 31, 2013 and 2012. |
Recovered_Sheet1
Note 1 - Organization and Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 825, “Financial Instruments”, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate fair value. Fair value is defined as the amount at which the instruments could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The Partnership is required to classify these fair value measurements into one of three categories, based on the nature of the inputs used in the fair value measurement. Level 1 of the hierarchy includes fair value measurements based on unadjusted quoted prices in active markets for identical assets or liabilities the Partnership can access at the measurement date. Level 2 includes fair value measurements based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 includes fair value measurements based on unobservable inputs. The classification of fair value measurements is subjective and generally accepted accounting principles requires the Partnership to disclose more detailed information regarding those fair value measurements classified within the lower levels of the hierarchy. The Partnership believes that the carrying amount of its financial instruments approximates their fair value due to the short-term maturity of these instruments. See Note 2 regarding fair value determinations for the assets and liabilities of Bethel Towers. |
Recovered_Sheet2
Note 1 - Organization and Summary of Significant Accounting Policies: Segment Reporting (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Segment Reporting | ' |
Segment Reporting | |
ASC 280-10, "Segment Reporting", established standards for the way that public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports. ASC 280-10 also established standards for related disclosures about products and services, geographic areas, and major customers. As defined in ASC 280-10, the Partnership has only one reportable segment. |
Recovered_Sheet3
Note 1 - Organization and Summary of Significant Accounting Policies: Variable Interest Entities (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Variable Interest Entities | ' |
Variable Interest Entities | |
The Partnership consolidates any variable interest entities in which the Partnership holds a variable interest and is the primary beneficiary. Generally, a variable interest entity, or VIE, is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group the holders of the equity investment at risk lack (i) the ability to make decisions about an entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. The primary beneficiary of a VIE is generally the entity that has (a) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (b) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. | |
In determining whether it is the primary beneficiary of a VIE, the Partnership considers qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of the Partnership’s investment; the obligation or likelihood for the Partnership or other investors to provide financial support; and the similarity with and significance to the business activities of the Partnership and the other investors. Significant judgments related to these determinations include estimates about the current and future fair values and performance of real estate held by these VIEs and general market conditions. | |
On December 10, 2012, the Partnership became the operating general partner of Bethel Towers, as a result of the assignment of the local operating general partner interest in Bethel Towers to the Partnership. Therefore, effective December 10, 2012, the Partnership began consolidating this Local Partnership and it is no longer considered a VIE (see Note 2). | |
At December 31, 2013 and 2012, the Partnership held variable interests in zero and four VIEs, respectively, for which the Partnership is not the primary beneficiary. The Partnership has concluded, based on its qualitative consideration of the partnership agreement, the partnership structure and the role of the general partner in each of the Local Partnerships, that the general partner of each of the Local Partnerships is the primary beneficiary of the respective Local Partnership. In making this determination, the Partnership considered the following factors: | |
· the general partners conduct and manage the business of the Local Partnerships; | |
· the general partners have the responsibility for and sole discretion over selecting a property management agent for the Local Partnerships’ underlying real estate properties; | |
· the general partners are responsible for approving operating and capital budgets for the properties owned by the Local Partnerships; | |
· the general partners are obligated to fund any recourse obligations of the Local Partnerships; | |
· the general partners are authorized to borrow funds on behalf of the Local Partnerships; and | |
· the Partnership, as a limited partner in each of the Local Partnerships, does not have the ability to direct or otherwise significantly influence the activities of the Local Partnerships that most significantly impact such entities’ economic performance. | |
The Partnership was involved with those VIEs as a non-controlling limited partner equity holder. The Partnership’s maximum exposure to loss as a result of its involvement with the unconsolidated VIEs is limited to the Partnership’s recorded investments in and receivables from these VIEs, which were zero at December 31, 2013 and 2012. The Partnership may be subject to additional losses to the extent of any financial support that the Partnership voluntarily provides in the future. |
Recovered_Sheet4
Note 1 - Organization and Summary of Significant Accounting Policies: Tenant Security Deposits (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Tenant Security Deposits | ' |
Tenant Security Deposits | |
At December 31, 2012, Bethel Towers required security deposits from lessees for the duration of the lease. Deposits are refunded when the tenant vacates, provided the tenant has not damaged the space and is current on rental payments. |
Recovered_Sheet5
Note 1 - Organization and Summary of Significant Accounting Policies: Investment Property (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Investment Property | ' |
Investment Property | |
At December 31, 2012, investment property consisted of one apartment complex and is stated at fair value as of the date the Partnership began consolidating Bethel Towers. Bethel Towers capitalizes costs incurred in connection with capital additions activities, including construction projects, other tangible property improvements and replacements of existing property components. Bethel Towers capitalizes interest during periods in which construction projects are in progress. Capitalized costs are depreciated over the estimated useful life of the asset. Bethel charges to expense as incurred costs that do not relate to capital additions activities, including ordinary repairs, maintenance and resident turnover costs. |
Recovered_Sheet6
Note 1 - Organization and Summary of Significant Accounting Policies: Depreciation (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Depreciation | ' |
Depreciation | |
Depreciation was provided by the straight-line method over the estimated life of the apartment property and related personal property. |
Recovered_Sheet7
Note 1 - Organization and Summary of Significant Accounting Policies: Leases (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Leases | ' |
Leases | |
Bethel Towers generally leased apartment units for twelve-month terms or less. Rental income attributable to leases is recognized as rents become due. Bethel Towers evaluated all accounts receivable from residents and established an allowance, after the application of security deposits, for all receivables due from former tenants. |
Recovered_Sheet8
Note 1 - Organization and Summary of Significant Accounting Policies: Restricted Escrows (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Restricted Escrows | ' |
Restricted Escrows | |
Bethel Towers had established escrows for real estate taxes, insurance, capital improvements and certain operating expenses for its investment property. The balance in the escrow accounts at December 31, 2012 was approximately $412,000. |
Recovered_Sheet9
Note 1 - Organization and Summary of Significant Accounting Policies: Intangible Assets (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Intangible Assets | ' |
Intangible Assets | |
Intangible assets, associated with the consolidation of Bethel Towers, consisted of in-place leases and was included in other assets at December 31, 2012. The intangible assets related to in-place leases were comprised of: | |
1) The value of the above-market and below-market leases in-place. An asset or liability is recognized based on the difference between (a) the contractual amounts to be paid pursuant to the in-place leases and (b) the Partnership’s estimate of fair market lease rates for the corresponding in-place leases, measured over the period, including estimated lease renewals for below-market leases, that the leases are expected to remain in effect. | |
2) The estimated unamortized portion of avoided leasing commissions and other costs that would be incurred to originate the in-place leases. | |
3) The value associated with vacant units during the absorption period (estimates of lost rental revenue during the expected lease-up periods based on current market demand and stabilized occupancy levels). The values of the above-market and below-market leases are amortized to rental revenue over the expected remaining terms of the associated leases, which include reasonably assured renewal periods. Other intangible assets related to in-place leases are amortized to depreciation and amortization expense over the expected remaining terms of the associated leases. |
Note_4_Income_Taxes_Reconcilia
Note 4 - Income Taxes: Reconciliation between the Partnership's reported net income and the net income (loss) per tax return (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Reconciliation between the Partnership's reported net income and the net income (loss) per tax return | ' | ||
A reconciliation between the Partnership’s reported net income (loss) and the taxable income per the tax return is as follows (in thousands): | |||
Years Ended December 31, | |||
2013 | 2012 | ||
Net income (loss) per financial statements | $ 592 | $ 1,258 | |
Add (deduct): | |||
Other | 54 | 56 | |
Investment in and advances to Local Partnerships | 3,950 | (1,110) | |
Federal taxable income per tax return | $ 4,596 | $ 204 | |
Federal taxable income per limited partnership interest | 282.82 | $ 12.43 |
Note_4_Income_Taxes_Reconcilia1
Note 4 - Income Taxes: Reconciliation between the Partnership's reported amounts and the Federal tax basis of net assets (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Reconciliation between the Partnership's reported amounts and the Federal tax basis of net assets | ' | ||
The following is a reconciliation between the Partnership’s reported amounts and the federal tax basis of net assets and liabilities (in thousands): | |||
December 31, | |||
2013 | 2012 | ||
Net assets (liabilities) as reported | $ 597 | $ 5 | |
Add (deduct): | |||
Investment in Local Partnerships | -- | (3,948) | |
Deferred offering costs | 2,568 | 2,568 | |
Other | 624 | 531 | |
Net liabilities – Federal tax basis | $3,789 | $ (844) |
Note_7_Pro_Forma_Financial_Sta1
Note 7 - Pro Forma Financial Statements (unaudited): Pro Forma Condensed Consolidated Statement of Operations (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Pro Forma Condensed Consolidated Statement of Operations | ' | ||
Pro Forma Condensed Consolidated Statement of Operations | |||
(In thousands, except per Interest data) (Unaudited) | |||
2012 | |||
Rental and other income | $ 1,466 | ||
Expenses | (1,310) | ||
Net income | $ 156 | ||
Net income per limited partnership interest | $ 9.47 |
Recovered_Sheet10
Note 1 - Organization and Summary of Significant Accounting Policies: Organization (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Details | ' |
Entity Incorporation, Date of Incorporation | 15-Sep-77 |
Recovered_Sheet11
Note 1 - Organization and Summary of Significant Accounting Policies: Net Income (Loss) Per Limited Partnership Interest (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Number of limited partnership interests | 16,251 | 16,268 |
Note_2_Investments_in_and_Adva1
Note 2 - Investments in and Advances To Local Partnerships (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
New-Bel-Mo Enterprises L.P. | ' | ' |
Proceeds from sale of limited partnership interest | $20,500 | ' |
Investment Balance | 0 | 0 |
Clinton Apartments, Ltd. | ' | ' |
Proceeds from sale of limited partnership interest | 37,000 | ' |
Investment Balance | 0 | 0 |
Emporia Limited | ' | ' |
Proceeds from sale of limited partnership interest | 400,000 | ' |
Investment Balance | 0 | 0 |
Williamson Towers | ' | ' |
Proceeds from sale of limited partnership interest | 25,000 | ' |
Investment Balance | $0 | ' |
Note_4_Income_Taxes_Reconcilia2
Note 4 - Income Taxes: Reconciliation between the Partnership's reported net income and the net income (loss) per tax return (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Net Income (Loss) | $592 | $1,258 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | 54 | 56 |
Investment in and Advances To Local Partnerships | 3,950 | -1,110 |
Federal taxable income per tax return | $4,596 | $204 |
Federal taxable income per limited partnership interest | $282,820 | $12,430 |
Note_4_Income_Taxes_Reconcilia3
Note 4 - Income Taxes: Reconciliation between the Partnership's reported amounts and the Federal tax basis of net assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Details | ' | ' |
Net assets (liabilities) as reported | $597 | $5 |
Investment in Local Partnerships | ' | -3,948 |
Deferred offering costs | 2,568 | 2,568 |
Assets Reconciliation, Other | 624 | 531 |
Net liabilities - Federal tax basis | $3,789 | ($844) |
Note_5_Mortgage_Notes_Payable_
Note 5 - Mortgage Notes Payable (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Notes Payable | $3,221 | ' |
Monthly Payment Including Interest | 30 | ' |
Principal Balance Due At Maturity | ' | 2,160 |
Bethel Towers 1st mortgage | ' | ' |
Notes Payable | 984 | ' |
Monthly Payment Including Interest | 30 | ' |
Note payable, Stated Interest Rate | 8.63% | ' |
Debt Instrument, Maturity Date | 1-Mar-16 | ' |
Bethel Towers Home Rehabilitation mortgage | ' | ' |
Notes Payable | 2,160 | ' |
Note payable, Stated Interest Rate | 0.00% | ' |
Debt Instrument, Maturity Date | 1-Mar-16 | ' |
Principal Balance Due At Maturity | ' | 2,160 |
Mortgage premium, net | ' | ' |
Notes Payable | ' | $77 |
Note_7_Pro_Forma_Financial_Sta2
Note 7 - Pro Forma Financial Statements (unaudited): Pro Forma Condensed Consolidated Statement of Operations (Details) (Pro Forma, USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2012 |
Pro Forma | ' |
Rental and other income | $1,466 |
Expenses | -1,310 |
Net income | $156 |
Net income per limited partnership interest | $9,470 |