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 VI | ' |
Document Type | '10-K | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000715578 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | 16,514 | ' |
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 Public Float | ' | $0 |
Balance_Sheets
Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Investments in and advances to Local Limited Partnerships | $1,416 | $899 |
Cash and cash equivalents | 1,062 | 1,473 |
Receivables - limited partners | 348 | 313 |
Total assets | 2,826 | 2,685 |
Liabilities: | ' | ' |
Accounts payable and accrued expenses | 26 | 127 |
Taxes payable | 63 | 102 |
Total liabilities | 89 | 229 |
Partners' capital (deficiency) | ' | ' |
General partners | -324 | -327 |
Limited partners | 3,061 | 2,783 |
Total partners' capital (deficiency) | 2,737 | 2,456 |
Total liabilities and partners' capital (deficiency) | $2,826 | $2,685 |
Statements_of_Operations
Statements of Operations (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Expenses: | ' | ' |
Management fees - General Partner | $69 | $94 |
General and administrative | 31 | 26 |
Legal and accounting | 79 | 84 |
Tax expense | 138 | 165 |
Interest | ' | 8 |
Total operating expenses | 317 | 377 |
Loss from partnership operations | -317 | -377 |
Advances made to Local Limited Partnerships recognized as expense | ' | -18 |
Recovery of advances to local limited partnerships previously recognized as expense | ' | 196 |
Distributions (reduction of distributions) from Local Limited Partnerships recognized as income | 47 | 212 |
Equity in income of Local Limited Partnership and amortization of acquisition costs | 322 | 391 |
Gain on sale of interests in local limited partnerships | 229 | ' |
Gain on extinguishment of debt | ' | 1,891 |
Net income | 281 | 2,295 |
Net income allocated to general partners (1%) | 3 | 23 |
Net income allocated to limited partners (99%) | $278 | $2,272 |
Net Income per limited partnership interest | $16.78 | $137 |
Statement_of_Changes_in_Partne
Statement of Changes in Partners' Capital (Deficiency) (USD $) | General Partners | Limited Partners | Total |
In Thousands | |||
Partners' capital (deficiency), beginning balance at Dec. 31, 2011 | ($350) | $511 | $161 |
Net income | 23 | 2,272 | 2,295 |
Partners' capital (deficiency), ending balance at Dec. 31, 2012 | -327 | 2,783 | 2,456 |
Net income | 3 | 278 | 281 |
Partners' capital (deficiency), ending balance at Dec. 31, 2013 | ($324) | $3,061 | $2,737 |
Statements_of_Cash_Flows
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 | $281 | $2,295 |
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 | -47 | -212 |
Advances to Local Limited Partnerships recognized as expense | ' | 4 |
Gain on sale of interests in local limited partnerships | -229 | ' |
Recovery of advances to local limited partnerships previously recotnized as expense | ' | -196 |
Equity in income of Local Limited Partnership and amortization of acquisition costs | -322 | -391 |
Change in accounts: | ' | ' |
Change in Accounts Receivable | -35 | -117 |
Change in Accounts payable and accrued expenses | -101 | 87 |
Accrued interest payable | ' | 8 |
Change in Taxes payable | -39 | 30 |
Net cash used in operating activities | -492 | -383 |
Cash flows from investing activities: | ' | ' |
Distributions from sale of Local Limited Partnership properties | 94 | 212 |
Proceeds from sale of interests in Local Limited properties | 229 | ' |
Advances made to Local Limited Partnerships | -242 | -4 |
Recovery of advances to local limited partnerships | ' | 196 |
Net cash provided by (used in) investing activities | 81 | 404 |
Net increase (decrease) in cash and cash equivalents | -411 | 21 |
Cash and cash equivalents, beginning of period | 1,473 | 1,452 |
Cash and cash equivalents, end of period | $1,062 | $1,473 |
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 VI ("REAL VI" or the "Partnership"), formed under the California Limited Partnership Act, was organized on October 12, 1982. The Partnership was formed to invest primarily in other local limited partnerships (the "Local Limited Partnerships") which own and operate primarily Federal, state or local government-assisted housing projects. 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”). 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 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 Partnership shall be dissolved only upon the expiration of 50 complete calendar years (December 31, 2032) from the date of the formation of the Partnership or the occurrence of other events as specified in the Partnership Agreement. | |
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 partners 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. No such fees were accrued or paid during the years ended December 31, 2013 and 2012. | |
Basis of Presentation | |
The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States. | |
Principles of Consolidation | |
The financial statements for 2012 were consolidated as they included the accounts of REAL VI and its majority-owned general partnership Real Estate Associates III (“REA III”). As REA III's last investment sold its property in 2012, REA III dissolved in 2013. All significant intercompany accounts and transactions were eliminated in consolidation. Losses in excess of the minority interest in equity that would otherwise be attributed to the minority interest were allocated to the Partnership. | |
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 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. | |
Abandonment of Units | |
During the years ended December 31, 2013 and 2012, the number of Limited Partnership Interests decreased by 54 and 68 interests, respectively, due to limited partners abandoning their interests. At December 31, 2013 and 2012, there were 16,514 and 16,568 limited partnership interests outstanding. In abandoning his or her Limited Partnership Interest(s), a limited partner relinquishes all right, title, and interest in the Partnership as of the date of abandonment. | |
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 and 16,636 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. The entire cash balance at December 31, 2012 was 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 Estate Associates Limited VI. | |
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 assets 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. No impairment loss was recognized during the years ended December 31, 2013 or 2012. | |
Segment Reporting | |
Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 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 Topic 280-10 also established standards for related disclosures about products and services, geographic areas, and major customers. As defined in ASC Topic 280-10, the Partnership has only one reportable segment. | |
Fair Value of Financial Instruments | |
ASC Topic 825, “Financial Instruments”, requires disclosure of fair value information about financial instruments, when it is practicable to estimate that value. At December 31, 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. | |
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 December 31, 2013 and 2012, the Partnership held variable interests in one 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 one VIE at December 31, 2013 consisted of a Local Limited Partnership that was directly engaged in the ownership and management of one apartment properties with a total of 126 units. The Partnership is involved with that VIE as a non-controlling limited partner equity holder. The Partnership’s maximum exposure to loss as a result of its involvement with the unconsolidated VIE is limited to the Partnership’s recorded investments in and receivables from that VIE, which were approximately $1,416,000 and $899,000 at December 31, 2013 and 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 Limited Partnerships | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Notes | ' | |||||||
Note 2 - Investments in and Advances To Local Limited Partnerships | ' | |||||||
NOTE 2 – INVESTMENTS IN AND ADVANCES TO LOCAL LIMITED PARTNERSHIPS | ||||||||
As of December 31, 2013 and 2012, the Partnership held limited partnership interests in one and five Local Limited Partnerships, 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 any Local Limited Partnership or exercise control over the activities and operations, including refinancing or selling decisions, of any Local Limited Partnership that would require or allow for consolidation. Accordingly, the Partnership accounts for its investments in Local Limited Partnerships using the equity method. The Partnership is allocated profits and losses of the Local Limited Partnership in which it is currently invested based upon its ownership percentage of 90%. 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 a Local Limited Partnership. | ||||||||
The individual investments are carried at cost plus the Partnership’s share of each Local Limited Partnership’s profits less the Partnership’s share of such 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. | ||||||||
Operating distributions of approximately $53,000 were received from three Local Limited Partnerships during the year ended December 31, 2013. No operating distributions were received from the Local Limited Partnerships during the year ended December 31, 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 $55,000 from the sale of Marshall Plaza Apartments I and approximately $70,000 from the sale of Marshall Plaza Apartments II, net of tax payments of approximately $36,000 reserved by the Partnership and returned to Marshall Plaza Apartments I and Marshall Plaza Apartments II in 2013 to pay taxes associated with the sale. These amounts were recognized as income on the statements of operations. 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. As of December 31, 2012, the Partnership had reserved approximately $30,000 of the proceeds, which were returned to Oakwood Manor in 2013 to pay taxes and other expenses associated with the sale. Approximately $196,000 of the proceeds were recognized as recovery of advances previously recognized as expense and approximately $118,000 of the proceeds received were recognized as income during the year ended December 31, 2012. The Partnership had no investment balance remaining in Oakwood Manor as of the date of the sale. | ||||||||
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. The Partnership had no investment balance remaining in Oakridge Park II at the date of the assignment. | ||||||||
In November 2013, Crockett Manor sold its investment property for net proceeds of approximately $40,000. | ||||||||
In December 2013, the Partnership assigned its limited partnership interest in Hummelstown for approximately $190,000 and Kentucky Manor for approximately $25,000. | ||||||||
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 December 31, 2013 and 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 year ended December 31, 2013, the Partnership advanced approximately $242,000 to Park Place Limited Partnership, of which $139,000 was to restore a letter of credit, $58,000 was for non-resident withholding and $48,000 for repairs and capital items. During the year ended December 31, 2012, the Partnership advanced approximately $18,000 to three Local Limited Partnerships, Crockett Manor, Oakwood Manor and Cassady Village, to fund tax payments associated with operations and/or the sale of the underlying properties. While not obligated to make advances to any of the Local Limited Partnerships, the Partnership made these advances in order to protect its economic investment in the Local Limited Partnerships. These amounts are included in advances to Local Limited Partnerships recognized as expense for the year ended December 31, 2012, as the investment balance in the Local Limited Partnerships had been reduced to zero. During the years ended December 31, 2013 and 2012, the Partnership received repayment of advances of approximately $0 and approximately $196,000 from Oakwood. The repayments of advances were recognized as income on the statements of operations. | ||||||||
The following is a summary of the investments in Local Limited Partnerships for the years ended December 31, 2013 and 2012 (in thousands): | ||||||||
2013 | 2012 | |||||||
Balance, beginning of year | $ 899 | $ 508 | ||||||
Equity in income of Local Limited Partnership | 331 | 400 | ||||||
Advance | 242 | -- | ||||||
Distributions | (47) | -- | ||||||
Amortization of acquisition costs | (9) | (9) | ||||||
Balance, end of year | $ 1,416 | $ 899 | ||||||
The Partnership’s value of its investments and its equity in the income/loss and/or distributions from the Local Limited Partnerships are, for certain Local Limited Partnerships, individually not material to the overall financial position of the Partnership. The financial information from the unaudited condensed combined financial statements of such Local Limited Partnerships at December 31, 2013 and 2012 and for each of the two years in the period then ended is presented below. The Partnership’s value of its investment in Park Place Associates (the “Material Investee”) is material to the Partnership’s financial position and amounts included below for the Material Investee are included on an audited basis. | ||||||||
The condensed combined results of operations for the year ended December 31, 2013 exclude Hummelstown, Oakridge II and Kentucky Manor due to assignment of the Partnerships interest in those Local Limited Partnerships in 2013 and Crocket Manor due to the sale in 2013. The condensed combined results of operations for the year ended December 31, 2012 exclude Marshall Plaza I and II, due to their sales in January 2012, Cassady Village, due to its sale in March 2012 and Oakwood Manor, due to its sale in September 2012. | ||||||||
Condensed Combined Balance Sheets of the Local Limited Partnerships | ||||||||
(in thousands) | ||||||||
31-Dec-13 | 31-Dec-12 | |||||||
Material Investee | Total | Material Investee | Total | |||||
Assets | ||||||||
Land | $ 337 | $ 337 | $ 337 | $ 337 | ||||
Building and improvements | 8,254 | 8,254 | 8,128 | 8,128 | ||||
Accumulated depreciation | (6,089) | (6,089) | (5,859) | (5,859) | ||||
Other assets | 1,534 | 1,534 | 1,570 | 1,570 | ||||
Total assets | $4,036 | $4,036 | $4,176 | $ 4,176 | ||||
Liabilities and Partners’ Equity (Deficit): | ||||||||
Liabilities: | ||||||||
Mortgage notes payable | $ 277 | $ 277 | $ 916 | $ 916 | ||||
Other liabilities | 287 | 287 | 109 | 109 | ||||
Partners’ equity (deficit) | 3,472 | 3,472 | 3,151 | 3,151 | ||||
Total liabilities and partner’s equity (deficit) | $4,036 | $ 4,036 | $4,176 | $ 4,176 | ||||
Condensed Combined Results of Operations of the Local Limited Partnerships | ||||||||
(in thousands) | ||||||||
Years Ended December 31, | ||||||||
2013 | 2013 | 2012 | 2012 | |||||
Material Investee | Total | Material Investee | Total | |||||
Revenues: | ||||||||
Rental and other | $ 1,659 | $ 1,659 | $ 1,625 | $ 1,625 | ||||
Expenses: | ||||||||
Operating expenses | 829 | 829 | 794 | 794 | ||||
Financial expenses | 218 | 218 | 148 | 148 | ||||
Depreciation and amortization | 244 | 244 | 238 | 238 | ||||
Total expenses | $ 1,291 | 1,291 | 1,180 | 1,180 | ||||
Income (loss) from continuing operations | $ 368 | $ 368 | $ 445 | $ 445 | ||||
Real Estate and Accumulated Depreciation of Local Limited Partnerships | ||||||||
Schedule of Encumbrances and Investment Properties (all amounts unaudited except for those amounts related to the Material Investee)(in thousands): | ||||||||
Gross Amount at Which Carried | ||||||||
At December 31, 2013 | ||||||||
Description | Encumbrances | Land | Buildings And Related Personal Property | Total | Accumulated Depreciation | Date of Construction | ||
Park Place | $ 277 | $ 337 | $8,254 | $8,591 | $ 6,089 | 1983-1984 | ||
Reconciliation of real estate (all amounts unaudited except for those amounts related to the Material Investee) (in thousands): | ||||||||
Years Ended December 31, | ||||||||
2013 | 2013 | 2012 | 2012 | |||||
Material Investee | Total | Material Investee | Total | |||||
Real estate: | ||||||||
Balance at beginning of year | $ 8,465 | $ 8,465 | $ 8,443 | $ 8,443 | ||||
Property improvements | 126 | 126 | 22 | 22 | ||||
Disposal of property | 0 | 0 | -- | -- | ||||
Balance at end of year | $ 8,591 | $ 8,591 | $ 8,465 | $ 8,465 | ||||
Reconciliation of accumulated depreciation (all amounts unaudited except for those amounts related to the Material Investee) (in thousands): | ||||||||
Years Ended December 31, | ||||||||
2013 | 2013 | 2012 | 2012 | |||||
Material Investee | Total | Material Investee | Total | |||||
Accumulated depreciation: | ||||||||
Balance at beginning of year | $ 5,859 | $ 5,859 | $ 5,635 | $ 5,635 | ||||
Depreciation expense | 230 | 230 | 224 | 224 | ||||
Disposal of property | 0 | 0 | -- | -- | ||||
Balance at end of year | $ 6,089 | $ 6,089 | $ 5,859 | $ 5,859 | ||||
The difference between the investment in the accompanying balance sheets at December 31, 2013 and 2012 and the equity (deficit) per the Local Limited Partnerships' combined financial statements is due primarily to cumulative unrecognized equity in losses of certain Local Limited Partnerships, costs capitalized to the investment account, cumulative distributions recognized as income and recognition of impairment losses. | ||||||||
The current policy of the United States Department of Housing and Urban Development (“HUD”) is to not renew the Housing Assistance Payment (“HAP”) Contracts on a long term basis on the existing terms. In connection with renewals of the HAP Contracts under current law and policy, the amount of rental assistance payments under renewed HAP Contracts will be based on market rentals instead of above market rentals, which may not be the case under existing HAP Contracts. The payments under the renewed HAP Contracts may not be in an amount that would provide sufficient cash flow to permit owners of properties subject to HAP Contracts to meet the debt service requirements of existing loans insured by the Federal Housing Administration of HUD (“FHA”) unless such mortgage loans are restructured. In order to address the reduction in payments under HAP Contracts as a result of current policy, the Multifamily Assisted Housing Reform and Affordability Act of 1997 (“MAHRAA”) provides for the restructuring of mortgage loans insured by the FHA with respect to properties subject to the Section 8 program. Under MAHRAA, an FHA-insured mortgage loan can be restructured into a first mortgage loan which will be amortized on a current basis and a low interest rate second mortgage loan payable to FHA which will only be payable on maturity of the first mortgage loan. This restructuring results in a reduction in annual debt service payable by the owner of the FHA-insured mortgage loan and is expected to result in an insurance payment from FHA to the holder of the FHA-insured loan due to the reduction in the principal amount. | ||||||||
MAHRAA also phases out project-based subsidies on selected properties serving families not located in rental markets with limited supply, converting such subsidies to a tenant-based subsidy. | ||||||||
When the HAP Contracts are subject to renewal, there can be no assurance that the Local Limited Partnerships in which the Partnership has an investment will be permitted to restructure its mortgage indebtedness under MAHRAA. In addition, the economic impact on the Partnership of the combination of the reduced payments under the HAP Contracts and the restructuring of the existing FHA-insured mortgage loans under MAHRAA is uncertain. |
Note_3_Notes_Payable_and_Amoun
Note 3 - Notes Payable and Amounts Due For Partnership Interests | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 3 - Notes Payable and Amounts Due For Partnership Interests | ' |
NOTE 3 - NOTES PAYABLE AND AMOUNTS DUE FOR PARTNERSHIP INTERESTS | |
In connection with the sale of Cassady Village, the Partnership’s non-recourse notes payable and accrued interest were extinguished during the year ended December 31, 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 | 12 Months Ended |
Dec. 31, 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 Partnership’s 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 $69,000 and $94,000 for the years ended December 31, 2013 and 2012, respectively. | |
In addition to being the General Partner, NAPICO, or one of its affiliates, is the general partner for one of the Local Limited Partnerships. | |
Neither the General Partner nor its affiliates currently own any of the outstanding limited partnership interests in the Partnership at December 31, 2013. It is possible that Bethesda or its affiliates will acquire additional limited partnership interests in the Partnership, either through private purchases or tender offers. Pursuant to the Partnership Agreement, unitholders holding a majority of the limited partnership interests are entitled to take action with respect to a variety of matters that include, but are not limited to, voting on certain amendments to the Partnership Agreement and voting to remove the General Partner. A “Unit” consists of two limited partnership interests. Although the General Partner and its affiliates do not currently own any of the outstanding limited partnership interests in the Partnership, Bethesda has entered into a management agreement with a holder of 879.5 Units or 1,759 limited partnership interests in the Partnership representing 10.65% of the outstanding limited partnership interests in the Partnership as of December 31, 2013. Pursuant to such management agreement, Bethesda manages the business of such holder in exchange for a management fee, part of which includes all payments received by such holder with respect to such holder’s ownership of limited partnership interests in the Partnership. Although the General Partner owes fiduciary duties to the limited partners of the Partnership, the General Partner also owes fiduciary duties to Bethesda as its sole stockholder. As a result, the duties of the General Partner, as corporate general partner, to the Partnership and its limited partners may come into conflict with the duties of the General Partner to Bethesda as its sole stockholder. |
Note_5_Income_Taxes
Note 5 - Income Taxes | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Notes | ' | |||
Note 5 - Income Taxes | ' | |||
NOTE 5 - 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 statements of operations because different methods are used in determining the losses of the Local Limited Partnerships. The tax 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 follows: | ||||
Years Ended December 31, | ||||
2013 | 2012 | |||
(in thousands) | ||||
Net income per financial statements | $ 281 | $ 2,295 | ||
Gain on sale and extinguishment of debt | -- | (2,476) | ||
Other | -- | (40) | ||
Partnership’s share of Local Limited Partnership | 2,985 | (379) | ||
Net income (loss) per tax return | $ 3,266 | $ (600) | ||
Taxable income (loss) per limited partnership interest | $197.83 | $ (70.69) | ||
The following is a reconciliation between the Partnership’s reported amounts and the Federal tax basis of net assets (in thousands): | ||||
December 31, | ||||
2013 | 2012 | |||
Net assets as reported | $ 2,737 | $ 2,456 | ||
Add (deduct): | ||||
Deferred offering costs | 4,976 | 4,976 | ||
Investment in Local Limited Partnerships | (2,985) | (6,262) | ||
Accrued interest | -- | -- | ||
Other | -- | 291 | ||
Net equity – Federal tax basis | $ 4,728 | $ 1,461 | ||
The Partnership incurs expense for a New Jersey tax based upon the number of resident and non-resident limited partners and apportionment of income related to the Partnership’s investment in certain Local Limited Partnerships. For the years ended December 31, 2013 and 2012 the expense of approximately $138,000 and $165,000, respectively, related to this tax is reflected in tax expense in the accompanying statements of operations. |
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_Subsequent_Event
Note 7 - Subsequent Event | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
Note 7 - Subsequent Event | ' |
NOTE 7 - SUBSEQUENT EVENTS | |
The Partnership’s management evaluated subsequent events through the time this Annual Report on Form 10-K was filed. |
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 VI ("REAL VI" or the "Partnership"), formed under the California Limited Partnership Act, was organized on October 12, 1982. The Partnership was formed to invest primarily in other local limited partnerships (the "Local Limited Partnerships") which own and operate primarily Federal, state or local government-assisted housing projects. 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”). 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 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 Partnership shall be dissolved only upon the expiration of 50 complete calendar years (December 31, 2032) from the date of the formation of the Partnership or the occurrence of other events as specified in the Partnership Agreement. | |
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 partners 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. No such fees were accrued or paid during the years ended December 31, 2013 and 2012. |
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 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: Principles of Consolidation (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Principles of Consolidation | ' |
Principles of Consolidation | |
The financial statements for 2012 were consolidated as they included the accounts of REAL VI and its majority-owned general partnership Real Estate Associates III (“REA III”). As REA III's last investment sold its property in 2012, REA III dissolved in 2013. All significant intercompany accounts and transactions were eliminated in consolidation. Losses in excess of the minority interest in equity that would otherwise be attributed to the minority interest were allocated to the Partnership. |
Note_1_Organization_and_Summar4
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 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_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 Local Limited Partnerships | |
The investments in 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_Summar6
Note 1 - Organization and Summary of Significant Accounting Policies: Abandonment of Units (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Abandonment of Units | ' |
Abandonment of Units | |
During the years ended December 31, 2013 and 2012, the number of Limited Partnership Interests decreased by 54 and 68 interests, respectively, due to limited partners abandoning their interests. At December 31, 2013 and 2012, there were 16,514 and 16,568 limited partnership interests outstanding. In abandoning his or her Limited Partnership Interest(s), a limited partner relinquishes all right, title, and interest in the Partnership as of the date of abandonment. |
Note_1_Organization_and_Summar7
Note 1 - Organization and Summary of Significant Accounting Policies: Net Income Per Limited Partnership Interest (Policies) | 12 Months Ended |
Dec. 31, 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 and 16,636 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. The entire cash balance at December 31, 2012 was 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 Estate Associates Limited VI. |
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 assets 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. No impairment loss was recognized during the years ended December 31, 2013 or 2012. |
Recovered_Sheet1
Note 1 - Organization and Summary of Significant Accounting Policies: Segment Reporting (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Segment Reporting | ' |
Segment Reporting | |
Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 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 Topic 280-10 also established standards for related disclosures about products and services, geographic areas, and major customers. As defined in ASC Topic 280-10, the Partnership has only one reportable segment. |
Recovered_Sheet2
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 | |
ASC Topic 825, “Financial Instruments”, requires disclosure of fair value information about financial instruments, when it is practicable to estimate that value. At December 31, 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. |
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. | |
At December 31, 2013 and 2012, the Partnership held variable interests in one 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 one VIE at December 31, 2013 consisted of a Local Limited Partnership that was directly engaged in the ownership and management of one apartment properties with a total of 126 units. The Partnership is involved with that VIE as a non-controlling limited partner equity holder. The Partnership’s maximum exposure to loss as a result of its involvement with the unconsolidated VIE is limited to the Partnership’s recorded investments in and receivables from that VIE, which were approximately $1,416,000 and $899,000 at December 31, 2013 and 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 Limited Partnerships: Schedule of investments in Local Limited Partnerships (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of investments in Local Limited Partnerships | ' | ||
2013 | 2012 | ||
Balance, beginning of year | $ 899 | $ 508 | |
Equity in income of Local Limited Partnership | 331 | 400 | |
Advance | 242 | -- | |
Distributions | (47) | -- | |
Amortization of acquisition costs | (9) | (9) | |
Balance, end of year | $ 1,416 | $ 899 |
Note_2_Investments_in_and_Adva2
Note 2 - Investments in and Advances To Local Limited Partnerships: Condensed Combined Balance Sheets of the Local Partnerships (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Condensed Combined Balance Sheets of the Local Partnerships | ' | ||||
Condensed Combined Balance Sheets of the Local Limited Partnerships | |||||
(in thousands) | |||||
31-Dec-13 | 31-Dec-12 | ||||
Material Investee | Total | Material Investee | Total | ||
Assets | |||||
Land | $ 337 | $ 337 | $ 337 | $ 337 | |
Building and improvements | 8,254 | 8,254 | 8,128 | 8,128 | |
Accumulated depreciation | (6,089) | (6,089) | (5,859) | (5,859) | |
Other assets | 1,534 | 1,534 | 1,570 | 1,570 | |
Total assets | $4,036 | $4,036 | $4,176 | $ 4,176 | |
Liabilities and Partners’ Equity (Deficit): | |||||
Liabilities: | |||||
Mortgage notes payable | $ 277 | $ 277 | $ 916 | $ 916 | |
Other liabilities | 287 | 287 | 109 | 109 | |
Partners’ equity (deficit) | 3,472 | 3,472 | 3,151 | 3,151 | |
Total liabilities and partner’s equity (deficit) | $4,036 | $ 4,036 | $4,176 | $ 4,176 |
Note_2_Investments_in_and_Adva3
Note 2 - Investments in and Advances To Local Limited Partnerships: Estimated condensed combined statements of operations for Local Partnerships (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Estimated condensed combined statements of operations for Local Partnerships | ' | ||||
Condensed Combined Results of Operations of the Local Limited Partnerships | |||||
(in thousands) | |||||
Years Ended December 31, | |||||
2013 | 2013 | 2012 | 2012 | ||
Material Investee | Total | Material Investee | Total | ||
Revenues: | |||||
Rental and other | $ 1,659 | $ 1,659 | $ 1,625 | $ 1,625 | |
Expenses: | |||||
Operating expenses | 829 | 829 | 794 | 794 | |
Financial expenses | 218 | 218 | 148 | 148 | |
Depreciation and amortization | 244 | 244 | 238 | 238 | |
Total expenses | $ 1,291 | 1,291 | 1,180 | 1,180 | |
Income (loss) from continuing operations | $ 368 | $ 368 | $ 445 | $ 445 |
Note_2_Investments_in_and_Adva4
Note 2 - Investments in and Advances To Local Limited Partnerships: Schedule of Real estate and accumulated depreciation of the Local Partnerships (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Tables/Schedules | ' | |||||||
Schedule of Real estate and accumulated depreciation of the Local Partnerships | ' | |||||||
Real Estate and Accumulated Depreciation of Local Limited Partnerships | ||||||||
Schedule of Encumbrances and Investment Properties (all amounts unaudited except for those amounts related to the Material Investee)(in thousands): | ||||||||
Gross Amount at Which Carried | ||||||||
At December 31, 2013 | ||||||||
Description | Encumbrances | Land | Buildings And Related Personal Property | Total | Accumulated Depreciation | Date of Construction | ||
Park Place | $ 277 | $ 337 | $8,254 | $8,591 | $ 6,089 | 1983-1984 | ||
Note_2_Investments_in_and_Adva5
Note 2 - Investments in and Advances To Local Limited Partnerships: Schecule of Reconciliation of real estate (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Tables/Schedules | ' | |||||
Schecule of Reconciliation of real estate | ' | |||||
Reconciliation of real estate (all amounts unaudited except for those amounts related to the Material Investee) (in thousands): | ||||||
Years Ended December 31, | ||||||
2013 | 2013 | 2012 | 2012 | |||
Material Investee | Total | Material Investee | Total | |||
Real estate: | ||||||
Balance at beginning of year | $ 8,465 | $ 8,465 | $ 8,443 | $ 8,443 | ||
Property improvements | 126 | 126 | 22 | 22 | ||
Disposal of property | 0 | 0 | -- | -- | ||
Balance at end of year | $ 8,591 | $ 8,591 | $ 8,465 | $ 8,465 |
Note_2_Investments_in_and_Adva6
Note 2 - Investments in and Advances To Local Limited Partnerships: Schedule of Reconciliation of accumulated depreciation (Tables) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Tables/Schedules | ' | |||||
Schedule of Reconciliation of accumulated depreciation | ' | |||||
Reconciliation of accumulated depreciation (all amounts unaudited except for those amounts related to the Material Investee) (in thousands): | ||||||
Years Ended December 31, | ||||||
2013 | 2013 | 2012 | 2012 | |||
Material Investee | Total | Material Investee | Total | |||
Accumulated depreciation: | ||||||
Balance at beginning of year | $ 5,859 | $ 5,859 | $ 5,635 | $ 5,635 | ||
Depreciation expense | 230 | 230 | 224 | 224 | ||
Disposal of property | 0 | 0 | -- | -- | ||
Balance at end of year | $ 6,089 | $ 6,089 | $ 5,859 | $ 5,859 |
Note_5_Income_Taxes_Reconcilia
Note 5 - 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 follows: | ||||
Years Ended December 31, | ||||
2013 | 2012 | |||
(in thousands) | ||||
Net income per financial statements | $ 281 | $ 2,295 | ||
Gain on sale and extinguishment of debt | -- | (2,476) | ||
Other | -- | (40) | ||
Partnership’s share of Local Limited Partnership | 2,985 | (379) | ||
Net income (loss) per tax return | $ 3,266 | $ (600) | ||
Taxable income (loss) per limited partnership interest | $197.83 | $ (70.69) | ||
Note_5_Income_Taxes_Reconcilia1
Note 5 - 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 | ' | ||
December 31, | |||
2013 | 2012 | ||
Net assets as reported | $ 2,737 | $ 2,456 | |
Add (deduct): | |||
Deferred offering costs | 4,976 | 4,976 | |
Investment in Local Limited Partnerships | (2,985) | (6,262) | |
Accrued interest | -- | -- | |
Other | -- | 291 | |
Net equity – Federal tax basis | $ 4,728 | $ 1,461 |
Recovered_Sheet4
Note 1 - Organization and Summary of Significant Accounting Policies: Net Income Per Limited Partnership Interest (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Number of limited partnership interests | 16,568 | 16,636 |
Note_2_Investments_in_and_Adva7
Note 2 - Investments in and Advances To Local Limited Partnerships: Schedule of investments in Local Limited Partnerships (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Investment in Local Limited Partnerships, Starting Balance | $899 | $508 |
Investment in Local Limited Partnerships, Equity in income of Local Limited Partnership | 331 | 400 |
Investment in Local Limited Partnerships, Advance | 242 | ' |
Investment in Local Limited Partnerships, Distributions | -47 | ' |
Investment in Local Limited Partnerships, Amortization of Acquisition Costs | -9 | -9 |
Investment in Local Limited Partnerships, Ending Balance | $1,416 | $899 |
Note_2_Investments_in_and_Adva8
Note 2 - Investments in and Advances To Local Limited Partnerships: Condensed Combined Balance Sheets of the Local Partnerships (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Land | $337 | $337 | ' |
Buildings and Improvements, Gross | 8,254 | 8,128 | ' |
SEC Schedule III, Real Estate Accumulated Depreciation | -6,089 | -5,859 | -5,635 |
Other Partnership Assets | 1,534 | 1,570 | ' |
Partnership Assets | 4,036 | 4,176 | ' |
Mortgage Notes Payable | 277 | 916 | ' |
Other Liabilities | 287 | 109 | ' |
Partners' Equity (deficit) | 3,472 | 3,151 | ' |
Total Liabilities and Partner's Equity (deficit) | 4,036 | 4,176 | ' |
Material Investee | ' | ' | ' |
Land | 337 | 337 | ' |
Buildings and Improvements, Gross | 8,254 | 8,128 | ' |
SEC Schedule III, Real Estate Accumulated Depreciation | -6,089 | -5,859 | -5,635 |
Other Partnership Assets | 1,534 | 1,570 | ' |
Partnership Assets | 4,036 | 4,176 | ' |
Mortgage Notes Payable | 277 | 916 | ' |
Other Liabilities | 287 | 109 | ' |
Partners' Equity (deficit) | 3,472 | 3,151 | ' |
Total Liabilities and Partner's Equity (deficit) | $4,036 | $4,176 | ' |
Note_2_Investments_in_and_Adva9
Note 2 - Investments in and Advances To Local Limited Partnerships: Estimated condensed combined statements of operations for Local Partnerships (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues | ' | ' |
Rental Income, Nonoperating | $1,659 | $1,625 |
Expenses | ' | ' |
Operating Costs and Expenses | 829 | 794 |
Financial expenses | 218 | 148 |
Depreciation, Depletion and Amortization, Nonproduction | 244 | 238 |
Total Expenses | 1,291 | 1,180 |
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | 368 | 445 |
Material Investee | ' | ' |
Revenues | ' | ' |
Rental Income, Nonoperating | 1,659 | 1,625 |
Expenses | ' | ' |
Operating Costs and Expenses | 829 | 794 |
Financial expenses | 218 | 148 |
Depreciation, Depletion and Amortization, Nonproduction | 244 | 238 |
Total Expenses | 1,291 | 1,180 |
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest | $368 | $445 |
Recovered_Sheet5
Note 2 - Investments in and Advances To Local Limited Partnerships: Schedule of Real estate and accumulated depreciation of the Local Partnerships (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Land | $337 | $337 | ' |
Buildings and Improvements, Gross | 8,254 | 8,128 | ' |
Real Estate Assets | 8,591 | 8,465 | 8,443 |
SEC Schedule III, Real Estate Accumulated Depreciation | 6,089 | 5,859 | 5,635 |
Park Place | ' | ' | ' |
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances | 277 | ' | ' |
Land | 337 | ' | ' |
Buildings and Improvements, Gross | 8,254 | ' | ' |
Real Estate Assets | 8,591 | ' | ' |
SEC Schedule III, Real Estate Accumulated Depreciation | $6,089 | ' | ' |
Recovered_Sheet6
Note 2 - Investments in and Advances To Local Limited Partnerships: Schecule of Reconciliation of real estate (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Real Estate Assets | $8,465 | $8,443 |
SEC Schedule III, Real Estate, Improvements | 126 | 22 |
Other Real Estate, Disposals | 0 | ' |
Real Estate Assets | 8,591 | 8,465 |
Material Investee | ' | ' |
Real Estate Assets | 8,465 | 8,443 |
SEC Schedule III, Real Estate, Improvements | 126 | 22 |
Other Real Estate, Disposals | 0 | ' |
Real Estate Assets | $8,591 | $8,465 |
Recovered_Sheet7
Note 2 - Investments in and Advances To Local Limited Partnerships: Schedule of Reconciliation of accumulated depreciation (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
SEC Schedule III, Real Estate Accumulated Depreciation, Beginning Balance | $5,859 | $5,635 |
Depreciation | 230 | 224 |
Other Real Estate, Disposals | 0 | ' |
SEC Schedule III, Real Estate Accumulated Depreciation, Ending Balance | 6,089 | 5,859 |
Material Investee | ' | ' |
SEC Schedule III, Real Estate Accumulated Depreciation, Beginning Balance | 5,859 | 5,635 |
Depreciation | 230 | 224 |
Other Real Estate, Disposals | 0 | ' |
SEC Schedule III, Real Estate Accumulated Depreciation, Ending Balance | $6,089 | $5,859 |
Note_5_Income_Taxes_Reconcilia2
Note 5 - 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 | $281 | $2,295 |
Gain On Sale and Extinguishment of Debt | ' | -2,476 |
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | ' | -40 |
Partnership's share of Local Limited Partnership | 2,985 | -379 |
Net income (loss) per tax return | $3,266 | ($600) |
Taxable Income (loss) Per Limited Partnership Interest | $197.83 | ($70.69) |
Note_5_Income_Taxes_Reconcilia3
Note 5 - 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 | ' | ' |
Assets, Net | $2,737 | $2,456 |
Deferred offering costs | 4,976 | 4,976 |
Investment in Local Limited Partnerships | -2,985 | -6,262 |
Assets Reconciliation, Other | ' | 291 |
Net Equity - Federal Tax Basis | $4,728 | $1,461 |