National Property Investors 6 10-Q 29 Apr 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014
Document and Entity Information:	'
Entity Registrant Name	'NATIONAL PROPERTY INVESTORS 6
Document Type	'10-Q
Document Period End Date	31-Mar-14
Amendment Flag	'false
Entity Central Index Key	'0000708870
Current Fiscal Year End Date	'--12-31
Entity Common Stock, Shares Outstanding	109,496
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	'2014
Document Fiscal Period Focus	'Q1

Balance_Sheets_Unaudited

Balance Sheets (Unaudited) (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Assets	'	'
Cash and cash equivalents	$328	$261
Receivables and deposits	436	425
Other assets	562	651
Investment property:	'	'
Land	1,366	1,366
Buildings and related personal property	30,148	30,076
Total investment property	31,514	31,442
Less accumulated depreciation	-23,530	-23,203
Investment property, net	7,984	8,239
Total assets	9,310	9,576
Liabilities	'	'
Accounts payable	109	50
Tenant security deposit liabilities	199	184
Due to affiliates	10,915	10,938
Other liabilities	374	395
Mortgage notes payable	22,948	23,048
Total liabilities	34,545	34,615
Partners' Deficit	'	'
General partner	-799	-797
Limited partners	-24,436	-24,242
Total partners' deficit	-25,235	-25,039
Total liabilities and partners' deficit	$9,310	$9,576

Statements_of_Operations_Unaud

Statements of Operations (Unaudited) (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Revenues:	'	'
Rental income	$1,131	$1,091
Other income	133	144
Total revenues	1,264	1,235
Expenses:	'	'
Operating	492	515
General and administrative	17	25
Depreciation	327	405
Interest	538	533
Property taxes	86	86
Total expenses	1,460	1,564
Net loss	-196	-329
Net loss allocated to general partner (1%)	-2	-3
Net loss allocated to limited partners (99%)	($194)	($326)
Net loss per limited partnership unit	($1.77)	($2.98)

Statement_of_Shareholders_Equi

Statement of Shareholders Equity (Deficit) (Unaudited) (USD $)	General Partner	Limited Partners	Total
In Thousands
Partners' deficit, beginning balance at Dec. 31, 2013	($797)	($24,242)	($25,039)
Net loss	-2	-194	-196
Partners' deficit, ending balance at Mar. 31, 2014	($799)	($24,436)	($25,235)

Statements_of_Cash_Flows_Unaud

Statements of Cash Flows (Unaudited) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Net loss	($196)	($329)
Adjustments to reconcile net loss to net cash provided by operating activities:	'	'
Depreciation	327	405
Amortization of loan costs	10	10
Change in accounts:	'	'
Receivables and deposits	-11	-35
Other assets	79	78
Accounts payable	47	-111
Tenant security deposit liabilities	15	13
Due to affiliates	-23	138
Other liabilities	-21	-33
Net cash provided by operating activities	227	136
Cash flows used in investing activities:	'	'
Property improvements and replacements	-60	-659
Cash flows used in financing activities:	'	'
Payments on mortgage notes payable	100	94
Net increase (decrease) in cash and cash equivalents	67	-617
Cash and cash equivalents at beginning of period	261	789
Cash and cash equivalents at end of period	328	172
Supplemental disclosure of cash flow information:	'	'
Cash paid for interest	388	394
Supplemental disclosure of non-cash activity:	'	'
Property improvements and replacements included in accounts payable	$30	$20

Note_A_Basis_of_Presentation

Note A - Basis of Presentation	3 Months Ended
	Mar. 31, 2014
Notes	'
Note A - Basis of Presentation	'
	Note A – Basis of Presentation
	The accompanying unaudited financial statements of National Property Investors 6 (the "Partnership" or "Registrant") have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 8-03 of Regulation S-X.  Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of NPI Equity Investments, Inc. ("NPI Equity" or the "Managing General Partner"), all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. Operating results for the three month period ended March 31, 2014 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2014. The balance sheet at December 31, 2013 has been derived from the audited financial statements at that date but does not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. For further information, refer to the financial statements and footnotes thereto included in the Partnership's Annual Report on Form 10-K for the fiscal year ended December 31, 2013. The Managing General Partner is an affiliate of Apartment Investment and Management Company ("Aimco"), a publicly traded real estate investment trust.
	At March 31, 2014 and December 31, 2013, the Partnership had outstanding 109,496 units of limited partnership interest.  Net loss per Limited Partnership Unit is computed by dividing net loss allocated to the limited partners by the number of Units outstanding at the beginning of the fiscal year. The number of Units used was 109,496 and 109,524  Units for the three months ended March 31, 2014 and 2013, respectively.
	The Partnership’s management evaluated subsequent events through the time this Quarterly Report on Form 10-Q was filed.
	Certain reclassifications have been made to the 2013 balances to conform to the 2014 presentation.

Note_B_Transactions_With_Affil

Note B - Transactions With Affiliated Parties	3 Months Ended
	Mar. 31, 2014
Notes	'
Note B - Transactions With Affiliated Parties	'
	Note B - Transactions with Affiliated Parties
	The Partnership has no employees and depends on the Managing General Partner and its affiliates for the management and administration of all Partnership activities. The Partnership Agreement provides for certain payments to affiliates for services and as reimbursement of certain expenses incurred by affiliates on behalf of the Partnership.
	Affiliates of the Managing General Partner receive 5% of gross receipts from the Partnership's property as compensation for providing property management services. The Partnership paid to such affiliates approximately $63,000 and $61,000 for the three months ended March 31, 2014 and 2013, respectively, which are included in operating expenses.
	Affiliates of the Managing General Partner charged the Partnership for reimbursement of accountable administrative expenses amounting to approximately $12,000 and $51,000 for the three months ended March 31, 2014 and 2013, respectively, which is included in general and administrative expenses and investment property.  The portion of these reimbursements included in investment property for the three months ended March 31, 2014 and 2013 are construction management services provided by an affiliate of the Managing General Partner of approximately $3,000 and $41,000, respectively.  At December 31, 2013, approximately $163,000, of reimbursements were due to the Managing General Partner and are included in due to affiliates.  There were no such reimbursements due to the Managing General Partner at March 31, 2014.
	For services relating to the administration of the Partnership and operation of the Partnership's property, the Managing General Partner is entitled to receive payment for non-accountable expenses up to a maximum of $150,000 per year, based upon the number of Partnership units sold, subject to certain limitations. No such reimbursements were made during the three months ended March 31, 2014 or 2013.
	As compensation for services rendered in managing the Partnership, the Managing General Partner is entitled to receive Partnership management fees in conjunction with distributions of cash from operations, subject to certain limitations. No such Partnership management fees were earned or paid during the three months ended March 31, 2014 or 2013.
	The Partnership may receive advances of funds from AIMCO Properties, L.P., an affiliate of the Managing General Partner and the holder of a majority of the beneficial interest of the Partnership. There were no such advances received during the three months ended March 31, 2014 and 2013. The advances bear interest at the prime rate plus 2% (5.25% at March 31, 2014) per annum. Interest expense was approximately $140,000 and $126,000 for the three months ended March 31, 2014 and 2013, respectively.  At March 31, 2014 and December 31, 2013, the total advances and accrued interest owed to AIMCO Properties, L.P. was approximately $10,915,000 and $10,775,000, respectively, and is included in due to affiliates. Subsequent to March 31, 2014, the Partnership paid $100,000 of accrued interest due to AIMCO Properties, L.P. The Partnership may receive additional advances of funds from AIMCO Properties, L.P. although AIMCO Properties, L.P. is not obligated to provide such advances.  For more information on AIMCO Properties, L.P., including copies of its audited balance sheet, please see its reports filed with the Securities and Exchange Commission.
	Upon the sale of the Partnership’s property, NPI Equity will be entitled to an Incentive Compensation Fee equal to 3% of the difference between the sales price of the property and the appraised value for such property at February 1, 1992. Payment of the Incentive Compensation Fee is subordinated to the receipt by the limited partners, of: (a) distributions from capital transaction proceeds of an amount equal to their appraised investment in the Partnership at February 1, 1992, and (b) distributions from all sources (capital transactions as well as cash flow) of an amount equal to six percent (6%) per annum cumulative, non-compounded, on their appraised investment in the Partnership at February 1, 1992. Prior to 2013, these preferences were met.
	The Partnership insures its property up to certain limits through coverage provided by Aimco which is generally self-insured for a portion of losses and liabilities related to workers’ compensation, property casualty, general liability, and vehicle liability.  The Partnership insures its property above the Aimco limits through insurance policies obtained by Aimco from insurers unaffiliated with the Managing General Partner.  During the three months ended March 31, 2014, the Partnership was charged by Aimco and its affiliates approximately $43,000 for hazard insurance coverage and fees associated with policy claims administration. Additional charges will be incurred by the Partnership during 2014 as other insurance policies renew later in the year. The Partnership was charged by Aimco and its affiliates approximately $60,000 for insurance coverage and fees associated with policy claims administration during the year ended December 31, 2013.

Note_C_Fair_Value_of_Financial

Note C - Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2014
Notes	'
Note C - Fair Value of Financial Instruments	'
	Note C – Fair Value of Financial Instruments
	Financial Accounting Standards Board Accounting Standards Codification 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 (except for mortgage notes payable) approximates their fair value due to the short-term maturity of these instruments. The Partnership estimates the fair value of its mortgage notes payable 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. The Partnership has classified this fair value measurement within Level 2 of the fair value hierarchy. At March 31, 2014, the fair value of the Partnership's mortgage notes payable at the Partnership's incremental borrowing rate was approximately $25,753,000.

Note_D_Subsequent_Event

Note D - Subsequent Event	3 Months Ended
	Mar. 31, 2014
Notes	'
Note D - Subsequent Event	'
	Note D – Subsequent Event
	In April 2014, the Partnership’s property, Colony at Kenilworth Apartments, sustained damages from a fire which affected three apartment units.  The estimated damages are approximately $140,000 and the Partnership expects to receive insurance proceeds.  The Partnership does not expect to record a loss from this event.

Note_E_Contingencies

Note E - Contingencies	3 Months Ended
	Mar. 31, 2014
Notes	'
Note E - Contingencies	'
	Note E – Contingencies
	The Partnership is unaware of any pending or outstanding litigation matters involving it or its investment property that are not of a routine nature arising in the ordinary course of business.
	Various Federal, state and local laws subject property owners or operators to liability for management, and the costs of removal or remediation, of certain potentially hazardous materials present on a property, including lead-based paint, asbestos, polychlorinated biphenyls, petroleum-based fuels, and other miscellaneous materials. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release or presence of such materials. The presence of, or the failure to manage or remedy properly, these materials may adversely affect occupancy at affected apartment communities and the ability to sell or finance affected properties. In addition to the costs associated with investigation and remediation actions brought by government agencies, and potential fines or penalties imposed by such agencies in connection therewith, the improper management of these materials on a property could result in claims by private plaintiffs for personal injury, disease, disability or other infirmities. Various laws also impose liability for the cost of removal, remediation or disposal of these materials through a licensed disposal or treatment facility. Anyone who arranges for the disposal or treatment of these materials is potentially liable under such laws for the proper operation of the disposal facility. These laws often impose liability whether or not the person arranging for the disposal ever owned or operated the disposal facility. In connection with the ownership, operation and management of its property, the Partnership could potentially be responsible for environmental liabilities or costs associated with its property.

Note_A_Basis_of_Presentation_D

Note A - Basis of Presentation (Details)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Details	'	'	'
Outstanding Limited Partnership Units	109,496	109,496	'
Limited Partnership Units outstanding at beginning of year - per unit calculations	109,496	'	109,524

Note_B_Transactions_With_Affil1

Note B - Transactions With Affiliated Parties (Details) (USD $)	3 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Details	'	'	'
Property management fees - Related Party	$63,000	$61,000	'
Accountable administrative expense reimbursement - Related Party	12,000	51,000	'
Construction management service reimbursements capitalized - Related Party	3,000	41,000	'
Unpaid reimbursements owed - Related Party	'	'	163,000
Interest expense on advances - Related Party	140,000	126,000	'
Unpaid advances & accrued interest - Related Party	10,915,000	'	10,775,000
Accrued interest paid subsequent to reporting period	100,000	'	'
Insurance expense - Related Party	$43,000	'	$60,000

Note_C_Fair_Value_of_Financial1

Note C - Fair Value of Financial Instruments (Details) (USD $)	Mar. 31, 2014
Details	'
Fair value mortgage notes - Level 2	$25,753,000

Note_D_Subsequent_Event_Detail

Note D - Subsequent Event (Details) (USD $)	Mar. 31, 2014
Details	'
Subsequent Event April 2014 Fire Estimated Damages	$140,000