Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Sep. 30, 2013 | |
Document and Entity Information: | ' |
Entity Registrant Name | 'REAL ESTATE ASSOCIATES LTD VI |
Document Type | '10-Q |
Document Period End Date | 30-Sep-13 |
Amendment Flag | 'false |
Entity Central Index Key | '0000715578 |
Current Fiscal Year End Date | '--12-31 |
Entity Common Stock, Shares Outstanding | 16,534 |
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 | 'Q3 |
Balance_Sheets_Unaudited
Balance Sheets (Unaudited) (USD $) | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Investments in and advances to Local Limited Partnerships | $1,426 | $899 |
Cash and cash equivalents | 823 | 1,473 |
Receivables - limited partners | 350 | 313 |
Total assets | 2,599 | 2,685 |
Liabilities: | ' | ' |
Accounts payable and accrued expenses | 51 | 127 |
Due to Affiliates | 12 | ' |
Taxes payable | ' | 102 |
Total liabilities | 63 | 229 |
Contingencies | ' | ' |
Partners' capital (deficiency) | ' | ' |
General partners | -326 | -327 |
Limited partners | 2,862 | 2,783 |
Total partners' capital (deficiency) | 2,536 | 2,456 |
Total liabilities and partners' capital (deficiency) | $2,599 | $2,685 |
Statements_of_Operations_Unaud
Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Expenses: | ' | ' | ' | ' |
Management fees - General Partner | $17 | $24 | $51 | $71 |
Legal and accounting | 12 | 20 | 53 | 58 |
Tax expense | 31 | 31 | 106 | 94 |
General and administrative | 8 | 4 | 17 | 16 |
Interest | ' | ' | ' | 8 |
Total operating expenses | 68 | 79 | 227 | 247 |
Loss from partnership operations | -68 | -79 | -227 | -247 |
Distributions (reduction of distributions) from Local Limited Partnerships recognized as income | ' | 148 | 4 | 273 |
Advances made to Local Limited Partnerships recognized as expense | ' | ' | ' | -4 |
Recovery of advances to local limited partnerships previously recognized as expense | ' | 196 | ' | 196 |
Equity in income of Local Limited Partnership and amortization of acquisition costs | 86 | 64 | 290 | 258 |
Gain on sale of interests in local limited partnerships | 13 | ' | -13 | ' |
Gain on extinguishment of debt | ' | ' | ' | 1,891 |
Net income | 31 | 329 | 80 | 2,367 |
Net income allocated to general partners (1%) | ' | 3 | 1 | 24 |
Net income allocated to limited partners (99%) | $31 | $326 | $79 | $2,343 |
Net Income per limited partnership interest | $1.85 | $19.60 | $4.78 | $141 |
Statement_of_Shareholder_Equit
Statement of Shareholder Equity (Deficit) (Unaudited) (USD $) | General Partners | Limited Partners | Total |
In Thousands | |||
Partners' capital (deficiency), beginning balance at Dec. 31, 2012 | ($327) | $2,783 | $2,456 |
Net income | 1 | 79 | 80 |
Partners' capital (deficiency), ending balance at Sep. 30, 2013 | ($326) | $2,862 | $2,536 |
Statements_of_Cash_Flows_Unaud
Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities: | ' | ' |
Net income | $80 | $2,367 |
Adjustments to reconcile net income to net cash used in operating activities: | ' | ' |
Gain on extinguishment of debt | ' | -1,891 |
Distributions from sale of Local Limited Partnership properties recognized as income | ' | -273 |
Equity in income of Local Limited Partnership and amortization of acquisition costs | -290 | -258 |
Distribution from sale of local limited partnerships recorded as income | -4 | ' |
Advances made to Local Limited Partnerships recognized as expense | ' | 4 |
Gain on sale of interests in local limited partnerships | -13 | ' |
Recovery of advances to local limited partnerships previously recotnized as expense | ' | -196 |
Change in accounts: | ' | ' |
Change in Accounts Receivable | -37 | -121 |
Change in Taxes payable | -102 | -41 |
Change in Accounts payable and accrued expenses | -76 | -8 |
Accrued interest payable | ' | 8 |
Net cash used in operating activities | -442 | -409 |
Cash flows from investing activities: | ' | ' |
Advances made to Local Limited Partnerships | -237 | -4 |
Recovery of advances to local limited partnerships | ' | 196 |
Distributions from sale of Local Limited Partnership properties | 4 | 273 |
Gain on sale of interests in local limited partnerships | 13 | ' |
Net cash provided by (used in) investing activities | -220 | 465 |
Cash flows provided by (used in) financing activities: | ' | ' |
Advances from Affiliates | 12 | ' |
Net cash flows provided by (used in) financing activities | 12 | ' |
Net increase (decrease) in cash and cash equivalents | -650 | 56 |
Cash and cash equivalents, beginning of period | 1,473 | 1,452 |
Cash and cash equivalents, end of period | $823 | $1,508 |
Note_1_Organization_and_Summar
Note 1 - Organization and Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note 1 - Organization and Summary of Significant Accounting Policies | ' |
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
General | |
The information contained in the following notes to the unaudited financial statements is condensed from that which would appear in the audited annual financial statements; accordingly, the financial statements included herein should be reviewed in conjunction with the financial statements and related notes thereto contained in the annual report for the fiscal year ended December 31, 2012 prepared by Real Estate Associates Limited VI (the "Partnership" or "Registrant"). Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end. The results of operations for the interim periods presented are not necessarily indicative of the results for the entire year. | |
In the opinion of the Partnership’s management, the accompanying unaudited financial statements contain all adjustments (consisting primarily of normal recurring items) considered necessary for a fair presentation. The balance sheet at December 31, 2012 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. | |
The general partners have a one percent interest in profits and losses of the Partnership. The limited partners have the remaining 99 percent interest which is allocated in proportion to their respective investments. The general partners of the Partnership are National Partnership Investments, LLC, a California limited liability company ("NAPICO" or the "General Partner"), and National Partnership Investments Associates, a California limited partnership. The General Partner is a subsidiary of Bethesda Holdings II, LLC, a privately held real estate asset management company (“Bethesda”). | |
At both September 30, 2013 and December 31, 2012, there were 16,534 and 16,568 limited partnership interests outstanding, respectively. | |
Basis of Presentation | |
The accompanying unaudited financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |
Method of Accounting for Investments in Local Limited Partnerships | |
The investments in local limited partnerships (the “Local Limited Partnerships”) are accounted for using the equity method. Acquisition, selection fees and other costs related to the acquisition of the Local Limited Partnerships have been capitalized as part of the investment account and are being amortized by the straight line method over the estimated lives of the underlying assets, which is generally 30 years. | |
Net Income Per Limited Partnership Interest | |
Net income per limited partnership interest was computed by dividing the limited partners’ share of net income by the number of limited partnership interests outstanding at the beginning of the year. The number of limited partnership interests used was 16,568 for the three and nine months ended September 30, 2013, respectively, and 16,636 for the three and nine months ended September 30, 2012, respectively. | |
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. | |
At September 30, 2013 and December 31, 2012, the Partnership held variable interests in four and five VIEs respectively, for which the Partnership was 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 Limited Partnerships, that the general partner of each of the Local Limited Partnerships is the primary beneficiary of the respective Local Limited Partnership. In making this determination, the Partnership considered the following factors: | |
· the general partners conduct and manage the business of the Local Limited Partnerships; | |
· the general partners have the responsibility for and sole discretion over selecting a property management agent for the Local Limited Partnerships’ underlying real estate properties; | |
· the general partners are responsible for approving operating and capital budgets for the properties owned by the Local Limited Partnerships; | |
· the general partners are obligated to fund any recourse obligations of the Local Limited Partnerships; | |
· the general partners are authorized to borrow funds on behalf of the Local Limited Partnerships; and | |
· the Partnership, as a limited partner in each of the Local Limited Partnerships, does not have the ability to direct or otherwise significantly influence the activities of the Local Limited Partnerships that most significantly impact such entities’ economic performance. | |
The four VIEs at September 30, 2013 consist of Local Limited Partnerships that are directly engaged in the ownership and management of four apartment properties with a total of 263 units. The Partnership is 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 approximately $1,426,000 and $899,000 at September 30, 2013 and December 31, 2012, respectively. The Partnership may be subject to additional losses to the extent of any financial support that the Partnership voluntarily provides in the future. |
Note_2_Investments_in_and_Adva
Note 2 - Investments in and Advances To Local Partnerships | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Notes | ' | ||||
Note 2 - Investments in and Advances To Local Partnerships | ' | ||||
NOTE 2 - INVESTMENTS IN AND ADVANCES TO LOCAL LIMITED PARTNERSHIPS | |||||
As of September 30, 2013 and December 31, 2012, the Partnership held limited partnership interests in four and five Local Limited Partnerships, respectively. As of September 30, 2013 and December 31, 2012, the Local Limited Partnerships own residential low-income rental projects consisting of 263 and 311 apartment units, respectively. Certain of the Local Limited Partnerships are encumbered by mortgage notes payable to or insured by various governmental agencies. | |||||
The Partnership, as a limited partner, does not have a contractual relationship with the Local Limited Partnerships or exercise control over the activities and operations, including refinancing or selling decisions, of the Local Limited Partnerships that would require or allow for consolidation. Accordingly, the Partnership accounts for its investments in the Local Limited Partnerships using the equity method. The Partnership is allocated profits and losses of the Local Limited Partnerships based upon its respective ownership percentages between 90% and 99%. Distributions of surplus cash from operations from most of the Local Limited Partnerships are restricted by the Local Limited 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 Limited Partnership. The Partnership is allocated profits and losses and receives distributions from refinancings and sales in accordance with the Local Limited Partnerships’ partnership agreements. These agreements usually limit the Partnership’s distributions to an amount substantially less than its ownership percentage in the Local Limited Partnership. | |||||
The individual investments are carried at cost plus the Partnership’s share of the Local Limited Partnership’s profits less the Partnership’s share of the Local Limited Partnership’s losses, distributions and impairment charges. The Partnership is not legally liable for the obligations of the Local Limited 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 Limited Partnerships reaches zero. Distributions from the Local Limited 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 statements of operations. An operating distribution of approximately $4,000 was received from one Local Limited Partnership, Oakridge Park II, during the nine months ended September 30, 2013. No operating distributions were received from the Local Limited Partnerships during the nine months ended September 30, 2012. | |||||
In January 2012, Marshall Plaza Apartments I and Marshall Plaza Apartments II sold their investment properties for approximately $1,110,000 and $1,385,000, respectively. After payment of closing costs and non-recourse notes payable due to an affiliate of the purchaser, the Partnership received proceeds of approximately $58,000 from the sale of Marshall Plaza Apartments I and approximately $72,000 from the sale of Marshall Plaza Apartments II during the nine months ended September 30, 2012. These amounts were recognized as income on the statements of operations. The proceeds received were reduced by tax payments of approximately $36,000 reserved by the Partnership and returned to Marshall Plaza Apartments I and Marshall Plaza Apartments II in the second quarter of 2012 and 2013 to pay taxes associated with the sale. The Partnership had no investment balance remaining in Marshall Plaza Apartments I and II as of the date of sale. | |||||
In March 2012, Cassady Village sold its investment property to the holder of the non-recourse note payable in exchange for (i) full satisfaction of the non-recourse note payable due to the purchaser (as discussed in “Note 3”), (ii) the assumption of the outstanding mortgage loan encumbering the property, and (iii) the sum of one dollar. The Partnership did not receive any proceeds from the sale. The Partnership had no investment balance remaining in Cassady Village as of the date of sale. | |||||
In September 2012, Oakwood Manor sold its investment property for $500,000. After payment of closing costs and repayment of the mortgage loan encumbering the property, the Partnership received proceeds of approximately $344,000 from the sale. Approximately $196,000 was recognized as recovery of advances previously recognized as expense and approximately $148,000 of the proceeds received were recognized as income during the three and nine months ended September 30, 2012. The Partnership had no investment balance remaining in Oakwood Manor as of the date of the sale. | |||||
Crockett Manor has entered into a purchase and sale contract to sell its investment property to a third party for a sale price that exceeds the balance of the mortgage encumbering the property by $75,000. After payment of closing costs and the mortgage encumbering the property, the Partnership does not expect to receive any proceeds from the sale of Crockett Manor. The transaction is expected to close during 2013. The Partnership had no investment balance remaining in Crockett Manor as of September 30, 2013 or December 31, 2012. | |||||
In September 2013, the Partnership assigned its limited partnership interest in Oakridge Park II to an affiliate of the Operating General Partner for a total of $13,200. This amount was recognized as a gain on sale of Local Limited Partnerships for the three and nine months ended September 30, 2013 as the partnership had no investment balance remaining in Oakridge Park II at the date of the assignment. | |||||
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 Limited Partnerships only to the extent of distributions received and amortization of acquisition costs from those Local Limited Partnerships. Therefore, the Partnership limits its recognition of equity earnings to the amount it expects to ultimately realize. | |||||
As of September 30, 2013 and December 31, 2012, the investment balance in all but one of the Local Limited Partnerships had been reduced to zero. The Partnership still has an investment balance in Park Place Limited Partnership. | |||||
At times, advances are made to the Local Limited Partnerships. Advances made by the Partnership to the individual Local Limited Partnerships are considered part of the Partnership’s investment in the Local Limited Partnership. Advances made to Local Limited Partnerships for which the investment has been reduced to zero are charged to expense. During the nine months ended September 30, 2012, the Partnership advanced approximately $4,000 to two Local Limited Partnerships, Crockett Manor and Oakwood Manor, to fund tax payments. During the nine months ended September 30, 2013, the Partnership advanced approximately $237,000 to Park Place Limited Partnership of which $139,000 was to restore a letter of credit, $58,000 was for non-resident withholding taxes and $40,000 was for REAC inspection related cost. While not obligated to make advances to any of the Local Limited Partnerships, the Partnership made this advance to protect its economic investment in the Local Limited Partnership. | |||||
The following is a summary of the investments in Local Limited Partnerships for the nine months ended September 30, 2013 (in thousands): | |||||
Balance, beginning of period | $ 899 | ||||
Equity in income of Local Limited Partnership | 297 | ||||
Advance | 237 | ||||
Amortization of acquisition costs | (7) | ||||
Balance, end of period | $ 1,426 | ||||
The following are unaudited condensed combined estimated statements of operations for the three and nine months ended September 30, 2013 and 2012 of Local Limited Partnerships in which the Partnership has invested (in thousands): | |||||
Three Months | Three Months Ended | Nine Months Ended | Nine Months Ended | ||
Ended | September 30, | September 30, | September 30, | ||
September 30, | 2012 | 2013 | 2012 | ||
2013 | |||||
Revenues | |||||
Rental and other | $ 600 | $ 598 | $ 1,770 | $ 1,696 | |
Expenses | |||||
Operating expenses | 276 | 322 | 877 | 930 | |
Financial expenses | 90 | 100 | 268 | 301 | |
Depreciation and | 77 | 75 | 231 | 229 | |
amortization | |||||
Total expenses | 443 | 497 | 1,376 | 1,460 | |
Income (loss) from | $ 157 | $ 101 | $ 394 | $ 236 | |
continuing operations | |||||
The combined results of operations for the three and nine months ended September 30, 2013 and 2012 exclude the operations of Kentucky Manor, for which no financial information is available. The combined results of operations for the nine months ended September 30, 2012 also exclude the operations of Marshall Plaza I and II, due to their sales in January 2012, Cassady Village due to its sale in March 2012, Oakwood Manor, due to its sale in September 2012, and Oakridge Park II due to its sale in September 2013. |
Note_3_Notes_Payable_and_Amoun
Note 3 - Notes Payable and Amounts Due For Partnership Interests | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note 3 - Notes Payable and Amounts Due For Partnership Interests | ' |
NOTE 3 - NOTES PAYABLE AND AMOUNTS DUE FOR PARTNERSHIP INTERESTS | |
The Partnership was obligated on non-recourse notes payable of $520,000, which bore interest at 9.5 percent per annum and had principal maturities of December 1999. The notes and related interest were payable from cash flow generated from operations of the related rental property as defined in the notes. These obligations were collateralized by the Partnership’s investment in the Local Limited Partnership. Unpaid interest was due at maturity of the notes. Interest expense on non-recourse notes payable was approximately $8,000 for the nine months ended September 30, 2012. During 2005, the Partnership entered into an agreement with the non-recourse note holder for Cassady Village (“Cassady Village”) pursuant to which the noteholder agreed to forebear taking any action under the note pending the purchase by the noteholder of a series of projects, including the properties owned by the Local Limited Partnerships for Cassady Village and Marshall Plaza I & II Apartments. As discussed in “Note 2”, these Local Limited Partnerships sold their respective investment properties to the note holder during the nine months ended September 30, 2012. In connection with the sale of Cassady Village, the Partnership’s non-recourse notes payable were extinguished during the nine months ended September 30, 2012, and the Partnership recognized a gain on extinguishment of debt of approximately $1,891,000. |
Note_4_Transactions_With_Affil
Note 4 - Transactions With Affiliated Parties | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note 4 - Transactions With Affiliated Parties | ' |
NOTE 4 - TRANSACTIONS WITH AFFILIATED PARTIES | |
Under the terms of the Restated Certificate and Agreement of Limited Partnership, the Partnership is obligated to NAPICO for an annual management fee equal to 0.5 percent of the original invested assets of the Local Limited Partnerships at the beginning of the 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 interests in the capital accounts of the respective Local Limited Partnerships. The fee was approximately $51,000 and $71,000 for the nine months ended September 30, 2013 and 2012, respectively. | |
In addition to being the General Partner, an affiliate of NAPICO is the general partner for one of the Local Limited Partnerships. |
Note_5_Fair_Value_of_Financial
Note 5 - Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note 5 - Fair Value of Financial Instruments | ' |
NOTE 5 – 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, when it is practicable to estimate that value. At September 30, 2013, the carrying amounts of other assets and liabilities reported on the balance sheets that require such disclosure approximated their fair value due to the short-term maturity of these instruments. |
Note_6_Contingencies
Note 6 - Contingencies | 9 Months Ended |
Sep. 30, 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_Subsequent_Event
Note 7 - Subsequent Event | 9 Months Ended |
Sep. 30, 2013 | |
Notes | ' |
Note 7 - Subsequent Event | ' |
Note 7 - Subsequent Event | |
The Partnership’s management evaluated subsequent events through the time this Quarterly Report on Form 10-Q was filed. |
Note_1_Organization_and_Summar1
Note 1 - Organization and Summary of Significant Accounting Policies: Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Policies | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The accompanying unaudited financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. |
Note_1_Organization_and_Summar2
Note 1 - Organization and Summary of Significant Accounting Policies: Use of Estimates (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Policies | ' |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Note_1_Organization_and_Summar3
Note 1 - Organization and Summary of Significant Accounting Policies: Method of Accounting For Investment in Local Partnerships (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Policies | ' |
Method of Accounting For Investment in Local Partnerships | ' |
Method of Accounting for Investments in Local Limited Partnerships | |
The investments in local limited partnerships (the “Local Limited Partnerships”) are accounted for using the equity method. Acquisition, selection fees and other costs related to the acquisition of the Local Limited Partnerships have been capitalized as part of the investment account and are being amortized by the straight line method over the estimated lives of the underlying assets, which is generally 30 years. |
Note_1_Organization_and_Summar4
Note 1 - Organization and Summary of Significant Accounting Policies: Net Income Per Limited Partnership Interest (Policies) | 9 Months Ended |
Sep. 30, 2013 | |
Policies | ' |
Net Income Per Limited Partnership Interest | ' |
Net Income Per Limited Partnership Interest | |
Net income per limited partnership interest was computed by dividing the limited partners’ share of net income by the number of limited partnership interests outstanding at the beginning of the year. The number of limited partnership interests used was 16,568 for the three and nine months ended September 30, 2013, respectively, and 16,636 for the three and nine months ended September 30, 2012, respectively. |
Note_1_Organization_and_Summar5
Note 1 - Organization and Summary of Significant Accounting Policies: Variable Interest Entities (Policies) | 9 Months Ended |
Sep. 30, 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. | |
At September 30, 2013 and December 31, 2012, the Partnership held variable interests in four and five VIEs respectively, for which the Partnership was 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 Limited Partnerships, that the general partner of each of the Local Limited Partnerships is the primary beneficiary of the respective Local Limited Partnership. In making this determination, the Partnership considered the following factors: | |
· the general partners conduct and manage the business of the Local Limited Partnerships; | |
· the general partners have the responsibility for and sole discretion over selecting a property management agent for the Local Limited Partnerships’ underlying real estate properties; | |
· the general partners are responsible for approving operating and capital budgets for the properties owned by the Local Limited Partnerships; | |
· the general partners are obligated to fund any recourse obligations of the Local Limited Partnerships; | |
· the general partners are authorized to borrow funds on behalf of the Local Limited Partnerships; and | |
· the Partnership, as a limited partner in each of the Local Limited Partnerships, does not have the ability to direct or otherwise significantly influence the activities of the Local Limited Partnerships that most significantly impact such entities’ economic performance. | |
The four VIEs at September 30, 2013 consist of Local Limited Partnerships that are directly engaged in the ownership and management of four apartment properties with a total of 263 units. The Partnership is 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 approximately $1,426,000 and $899,000 at September 30, 2013 and December 31, 2012, respectively. The Partnership may be subject to additional losses to the extent of any financial support that the Partnership voluntarily provides in the future. |
Note_2_Investments_in_and_Adva1
Note 2 - Investments in and Advances To Local Partnerships: Schedule of investments in Local Limited Partnerships (Tables) | 9 Months Ended | |
Sep. 30, 2013 | ||
Tables/Schedules | ' | |
Schedule of investments in Local Limited Partnerships | ' | |
Balance, beginning of period | $ 899 | |
Equity in income of Local Limited Partnership | 297 | |
Advance | 237 | |
Amortization of acquisition costs | (7) | |
Balance, end of period | $ 1,426 |
Note_2_Investments_in_and_Adva2
Note 2 - Investments in and Advances To Local Partnerships: Estimated condensed combined statements of operations for Local Partnerships (Tables) | 9 Months Ended | ||||
Sep. 30, 2013 | |||||
Tables/Schedules | ' | ||||
Estimated condensed combined statements of operations for Local Partnerships | ' | ||||
Three Months | Three Months Ended | Nine Months Ended | Nine Months Ended | ||
Ended | September 30, | September 30, | September 30, | ||
September 30, | 2012 | 2013 | 2012 | ||
2013 | |||||
Revenues | |||||
Rental and other | $ 600 | $ 598 | $ 1,770 | $ 1,696 | |
Expenses | |||||
Operating expenses | 276 | 322 | 877 | 930 | |
Financial expenses | 90 | 100 | 268 | 301 | |
Depreciation and | 77 | 75 | 231 | 229 | |
amortization | |||||
Total expenses | 443 | 497 | 1,376 | 1,460 | |
Income (loss) from | $ 157 | $ 101 | $ 394 | $ 236 | |
continuing operations |
Note_1_Organization_and_Summar6
Note 1 - Organization and Summary of Significant Accounting Policies (Details) | Sep. 30, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Outstanding Limited Partnership Interests | 16,534 | 16,568 |
Note_1_Organization_and_Summar7
Note 1 - Organization and Summary of Significant Accounting Policies: Net Income Per Limited Partnership Interest (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2013 | Sep. 30, 2013 | |
Details | ' | ' |
Number of limited partnership interests | 16,568 | 16,636 |
Note_2_Investments_in_and_Adva3
Note 2 - Investments in and Advances To Local Partnerships: Schedule of investments in Local Limited Partnerships (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Details | ' |
Investment in Local Limited Partnerships, Starting Balance | $899 |
Investment in Local Limited Partnerships, Equity in income of Local Limited Partnership | 297 |
Investment in Local Limited Partnerships, Advance | 237 |
Investment in Local Limited Partnerships, Amortization of Acquisition Costs | -7 |
Investment in Local Limited Partnerships, Ending Balance | $1,426 |
Note_2_Investments_in_and_Adva4
Note 2 - Investments in and Advances To Local Partnerships: Estimated condensed combined statements of operations for Local Partnerships (Details) (Partnership Interest, USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Partnership Interest | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' |
Rental Income, Nonoperating | $600 | $598 | $1,770 | $1,696 |
Expenses | ' | ' | ' | ' |
Operating Costs and Expenses | 276 | 322 | 877 | 930 |
Financial expenses | 90 | 100 | 268 | 301 |
Depreciation, Depletion and Amortization, Nonproduction | 77 | 75 | 231 | 229 |
Total Expenses | 443 | 497 | 1,376 | 1,460 |
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | $157 | $101 | $394 | $236 |