Riverside Park Associates 10QSB 2007 Q2 Quarterly report (small business)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

Form 10-QSB

(Mark One)

[X]

QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2007

[ ]

TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

For the transition period from _________to _________

Commission file number 0-15740

RIVERSIDE PARK ASSOCIATES LIMITED PARTNERSHIP

(Exact name of small business issuer as specified in its charter)

Delaware

04-2924048

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

55 Beattie Place, PO Box 1089

Greenville, South Carolina 29602

(Address of principal executive offices)

(864) 239-1000

(Issuer's telephone number)

Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes X No ___

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes __ No X_

PART I – FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

RIVERSIDE PARK ASSOCIATES LIMITED PARTNERSHIP

BALANCE SHEET

(Unaudited)

(in thousands, except unit data)

June 30, 2007


Assets
Cash and cash equivalents		$ 126


Receivables and deposits		175
Other assets		2,023
Investment property:
Land	$ 6,357
Buildings and related personal property	119,172
	125,529
Less accumulated depreciation	(64,431)	61,098
		$ 63,422
Liabilities and Partners' Deficit
Liabilities
Accounts payable		$ 2,229
Tenant security deposit liabilities		219
Accrued property taxes		442
Other liabilities		720
Due to affiliates (Note B)		1,108
Mortgage notes payable		80,489

Partners' Deficit:
General partner	$ (1,499)
Limited partners (566 units issued and outstanding)	(20,286)	(21,785)
		$ 63,422

See Accompanying Notes to Financial Statements

RIVERSIDE PARK ASSOCIATES LIMITED PARTNERSHIP

STATEMENTS OF OPERATIONS

(Unaudited)

(in thousands, except per unit data)


	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2007	2006	2007	2006
Revenues:
Rental income	$ 2,617	$ 2,854	$ 5,196	$ 5,643
Other income	420	328	912	645
Total revenues	3,037	3,182	6,108	6,288

Expenses:
Operating	1,072	1,288	2,319	2,535
General and administrative	160	138	312	284
Depreciation	973	1,129	1,952	2,150
Interest	419	711	990	1,363
Property taxes	114	186	233	359
Total expenses	2,738	3,452	5,806	6,691
Casualty gain (loss) (Note D)	57	(29)	61	8
Net income (loss)	$ 356	$ (299)	$ 363	$ (395)

Net income (loss) allocated to general
partner (3%)	$ 11	$ (9)	$ 11	$ (12)
Net income (loss) allocated to limited
partners (97%)	345	(290)	352	(383)

	$ 356	$ (299)	$ 363	$ (395)

Net income (loss) per limited
partnership unit	$ 609.54	$ (512.37)	$ 621.91	$ (676.68)

See Accompanying Notes to Financial Statements

RIVERSIDE PARK ASSOCIATES LIMITED PARTNERSHIP

STATEMENT OF CHANGES IN PARTNERS' DEFICIT

(Unaudited)

(in thousands, except unit data)


	Limited
	Partnership	General	Limited
	Units	Partner	Partners	Total

Original capital contributions	566	$ --	$ 47,533	$ 47,533

Partners' deficit at
December 31, 2006	566	$(1,510)	$(20,638)	$(22,148)

Net income for the six months
ended June 30, 2007	--	11	352	363

Partners' deficit
at June 30, 2007	566	$(1,499)	$(20,286)	$(21,785)

See Accompanying Notes to Financial Statements

RIVERSIDE PARK ASSOCIATES LIMITED PARTNERSHIP

STATEMENTS OF CASH FLOWS

(Unaudited)

(in thousands)


	Six Months Ended
	June 30,
	2007	2006
Cash flows from operating activities:
Net income (loss)	$ 363	$ (395)
Adjustments to reconcile net income (loss) to net cash
provided by operating activities:
Depreciation	1,952	2,150
Amortization of loan costs	50	24
Casualty gain	(61)	(8)
Change in accounts:
Receivables and deposits	13	(78)
Other assets	(483)	(147)
Accounts payable	49	104
Tenant security deposit liabilities	19	37
Accrued property taxes	442	457
Other liabilities	(16)	101
Due to affiliates	84	253
Net cash provided by operating activities	2,412	2,498

Cash flows from investing activities:
Property improvements and replacements	(18,604)	(3,025)
Insurance proceeds received	68	50
Net cash used in investing activities	(18,536)	(2,975)

Cash flows from financing activities:
Payments on mortgage notes payable	--	(1,010)
Loan costs paid	(20)	--
Advances from affiliate	1,024	1,487
Net cash provided by financing activities	1,004	477

Net decrease in cash and cash equivalents	(15,120)	--

Cash and cash equivalents at beginning of period	15,246	174

Cash and cash equivalents at end of period	$ 126	$ 174

Supplemental disclosure of cash flow information:
Cash paid for interest, net of capitalized interest	$ 954	$ 1,246

Supplemental disclosure of non-cash activity:
Property improvements and replacements included in
accounts payable	$ 2,017	$ 877

At December 31, 2006 and 2005, approximately $3,202,000 and $217,000, respectively of property improvements and replacements were included in accounts payable, and are included in property improvements and replacements for the six months ended June 30, 2007 and 2006, respectively.

See Accompanying Notes to Financial Statements

RIVERSIDE PARK ASSOCIATES LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

Note A – Basis of Presentation

The accompanying unaudited financial statements of Riverside Park Associates Limited Partnership (the "Partnership" or "Registrant") have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-QSB and Item 310(b) of Regulation S-B. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of AIMCO/Riverside Park Associates, GP, LLC (“AIMCO GP” or the “General Partner”), a wholly-owned subsidiary of AIMCO/Bethesda Holdings, Inc., (“AIMCO/Bethesda”), all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six month periods ended June 30, 2007 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2007. For further information, refer to the financial statements and footnotes thereto included in the Partnership’s Annual Report on Form 10-KSB for the fiscal year ended December 31, 2006. AIMCO GP and AIMCO/Bethesda are affiliates of Apartment Investment and Management Company (“AIMCO”), a publicly traded real estate investment trust.

Reclassifications

Certain reclassifications have been made to the 2006 balances to conform to the 2007 presentation.

Recent Accounting Pronouncements

In September 2006, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards (“SFAS”) No. 157, “Fair Value Measurements”. SFAS No. 157 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts. SFAS No. 157 applies whenever other standards require assets or liabilities to be measured at fair value and does not expand the use of fair value in any new circumstances. SFAS No. 157 establishes a hierarchy that prioritizes the information used in developing fair value estimates. The hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data, such as the reporting entity’s own data. SFAS No. 157 requires fair value measurements to be disclosed by level within the fair va lue hierarchy. SFAS No. 157 is effective for fiscal years beginning after November 15, 2007. The Partnershipdoes not anticipate that the adoption of SFAS No. 157 will have a material effect on the Partnership’s financial statements.

In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities”. SFAS No. 159 permits entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at fair value. The objective is to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. SFAS No. 159 also establishes presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar types of assets and liabilities. SFAS No. 159 is effective for fiscal years beginning after November 15, 2007. The Partnership has not yet determined whether it will elect the fair value option for any of its financ ial instruments.

In June 2007, the American Institute of Certified Public Accountants (“the AICPA”) issued Statement of Position No. 07-1, “Clarification of the Scope of the Audit and Accounting Guide Investment Companies and Accounting by Parent Companies and Equity Method Investors for Investments in Investment Companies” ("SOP 07-1"). SOP 07-1 provides guidance for determining whether the accounting principles of the AICPA Audit and Accounting Guide “Investment Companies” are required to be applied to an entity by clarifying the definition of an investment company and, whether investment company accounting should be retained by a parent company upon consolidation of an investment company subsidiary, or by an investor in the application of the equity method of accounting to an investment company investee. SOP 07-1 applies to reporting periods beginning on or after December 15, 2007, but earlier adoption is encou raged. The Partnership is currently evaluating the impact, if any, that adoption of SOP 07-1 may have on its financial statements in the period of adoption.

Note B - Transactions with Affiliated Parties

The Partnership has no employees and depends on the General Partner and its affiliates for the management and administration of all Partnership activities. The Partnership Agreement provides for certain payments to affiliates for services based on a percentage of revenue and an annual partnership and investor service fee of $110,000 subject to a 6% annual increase. For 2007 and 2006, the annual partnership and investor service fee is estimated at approximately $333,000 and $314,000, respectively.

Affiliates of the General Partner receive 4% of gross receipts from the Partnership's investment property as compensation for providing property management services. The Partnership paid to such affiliates approximately $227,000 and $246,000 for the six months ended June 30, 2007 and 2006, respectively, which are included in operating expenses.

Affiliates of the General Partner charged the Partnership for reimbursement of accountable administrative expenses amounting to approximately $1,287,000 and $406,000 for the six months ended June 30, 2007 and 2006, respectively, which are included in general and administrative expenses and investment property. These amounts include the annual partnership and investor service fee discussed above. The portion of these reimbursements included in investment property for the six months ended June 30, 2007 and 2006 are construction management services for certain capital improvement expenditures (not related to the redevelopment project) provided by an affiliate of the General Partner of approximately $42,000 and $70,000, respectively. In connection with the redevelopment project (as discussed in “Note C”), an affiliate of the General Partner is to receive a redevelopment supervision fee of 6% of the actual redevelopment costs, or approximately $6,908,000 based on current estimated redevelopment costs. The Partnership was charged approximately $960,000 and $81,000 in redevelopment supervision fees during the six months ended June 30, 2007 and 2006, respectively, which are included in investment property. At June 30, 2007, approximately $83,000 was owed to affiliates for unpaid reimbursements and is included in due to affiliates.

In accordance with the Partnership Agreement, an affiliate of the General Partner advanced the Partnership approximately $1,024,000 and $1,487,000 to fund the redevelopment project and operating expenses at Riverside Park Apartments during the six months ended June 30, 2007 and 2006, respectively. Interest accrues at the prime rate plus 2% (10.25% at June 30, 2007) and was approximately $1,000 and $96,000 for the six months ended June 30, 2007 and 2006, respectively. At June 30, 2007, the amount of the outstanding advances and accrued interest was approximately $1,025,000 and is included in due to affiliates. Subsequent to June 30, 2007, an affiliate of the General Partner advanced the Partnership approximately $3,573,000 to fund the redevelopment project and operating expenses at the property.

The Partnership insures its property up to certain limits through coverage provided by AIMCO which is generally self-insured for a portion of losses and liabilities related to workers’ compensation, property casualty, general liability and vehicle liability. The Partnership insures its property above the AIMCO limits through insurance policies obtained by AIMCO from insurers unaffiliated with the General Partner. During the six months ended June 30, 2007, the Partnership was charged by AIMCO and its affiliates approximately $424,000 for hazard insurance coverage and fees associated with policy claims administration. Additional charges will be incurred by the Partnership during 2007 as other insurance policies renew later in the year. The Partnership was charged by AIMCO and its affiliates approximately $292,000 for insurance coverage and fees associated with policy claims administration during the year ended December 31, 2006.

Note C – Redevelopment of Property

In March 2005, the Partnership began a major redevelopment project at the property in order for it to remain competitive with other properties in the Fairfax area. During the six months ended June 30, 2007, the General Partner revised the estimated project cost from approximately $119,000,000 to approximately $137,000,000. Based on current plans, the General Partner expects the redevelopment to be complete in June 2010. The redevelopment is expected to consist of renovation and appliance upgrades to each apartment unit, exterior and interior improvements and the addition of a new clubhouse and fitness center. As of June 30, 2007, the Partnership has spent approximately $38,907,000 for property redevelopment, of which approximately $21,488,000 was completed prior to 2007. The Partnership expects to fund the redevelopment from operations, Partnership reserves, and advances from an affiliate of the General Partner. During the construction period , certain expenses are being capitalized and depreciated over the remaining life of the property. During the six months ended June 30, 2007 and 2006, approximately $1,848,000 and $685,000, respectively, of interest, approximately $208,000 and $97,000, respectively, of real estate taxes, and approximately $148,000 and $39,000, respectively, of other construction period operating costs were capitalized.

Note D – Casualty Events

In February 2007, Riverside Park Apartments experienced smoke damage resulting from a fire at a transformer. The Partnership sustained damages of approximately $73,000 and cleanup and temporary housing expenses of approximately $24,000, which are included in operating expenses for the six months ended June 30, 2007. The Partnership recognized a casualty gain of approximately $57,000 during the three and six months ended June 30, 2007 as a result of the receipt of insurance proceeds of approximately $63,000, partially offset by the write off of the undepreciated cost of the damaged asset of approximately $6,000. In addition, the Partnership received insurance proceeds of approximately $19,000 as reimbursement for temporary housing expense which is reflected as a reduction of operating expenses.

In November 2005, Riverside Park Apartments experienced roof and water damage to five units and the leasing office. The Partnership recorded a casualty gain of approximately $297,000 in 2006, of which approximately $8,000 was recognized during the six months ended June 30, 2006. The gain recognized during the six months ended June 30, 2006 was the result of the receipt of insurance proceeds of approximately $50,000, partially offset by the write off of the undepreciated cost of the damaged asset of approximately $42,000. During the three months ended June 30, 2006, the Partnership reduced the casualty gain recognized in the first quarter of 2006 by approximately $29,000 as a result of a change in the estimated building damages at the property. During the six months ended June 30, 2007, the Partnership recognized an additional casualty gain of approximately $4,000 as a result of the receipt of insurance proceeds of approximately $5,000, partially of fset by the additional write off of the undepreciated cost of the damaged asset of approximately $1,000.

Note E – Contingencies

The Partnership is unaware of any pending or outstanding litigation matters involving it or its investment property that are not of a routine nature arising in the ordinary course of business.

Environmental

Various Federal, state and local laws subject property owners or operators to liability for management, and the costs of removal or remediation, of certain hazardous substances present on a property. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release or presence of the hazardous substances. The presence of, or the failure to manage or remedy properly, hazardous substances may adversely affect occupancy at affected apartment communities and the ability to sell or finance affected properties. In addition to the costs associated with investigation and remediation actions brought by government agencies, and potential fines or penalties imposed by such agencies in connection therewith, the presence of hazardous substances on a property could result in claims by private plaintiffs for personal injury, disease, disability or other infirmities. Various laws also impose liability for the cost of removal, remediation or disposal of hazardous substances through a licensed disposal or treatment facility. Anyone who arranges for the disposal or treatment of hazardous substances is potentially liable under such laws. These laws often impose liability whether or not the person arranging for the disposal ever owned or operated the disposal facility. In connection with the ownership, operation and management of its property, the Partnership could potentially be liable for environmental liabilities or costs associated with its property.

Mold

The Partnership is aware of lawsuits against owners and managers of multifamily properties asserting claims of personal injury and property damage caused by the presence of mold, some of which have resulted in substantial monetary judgments or settlements. The Partnership has only limited insurance coverage for property damage loss claims arising from the presence of mold and for personal injury claims related to mold exposure. Affiliates of the General Partner have implemented policies, procedures, third-party audits and training and the General Partner believes that these measures will prevent or eliminate mold exposure and will minimize the effects that mold may have on residents. To date, the Partnership has not incurred any material costs or liabilities relating to claims of mold exposure or to abate mold conditions. Because the law regarding mold is unsettled and subject to change the General Partner can make no assura nce that liabilities resulting from the presence of or exposure to mold will not have a material adverse effect on the Partnership’s financial condition or results of operations.

ITEM 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION

The matters discussed in this report contain certain forward-looking statements, including, without limitation, statements regarding future financial performance and the effect of government regulations. Actual results may differ materially from those described in the forward-looking statements and will be affected by a variety of risks and factors including, without limitation: national and local economic conditions; the terms of governmental regulations that affect the Registrant and interpretations of those regulations; the competitive environment in which the Registrant operates; financing risks, including the risk that cash flows from operations may be insufficient to meet required payments of principal and interest; real estate risks, including variations of real estate values and the general economic climate in local markets and competition for tenants in such markets; litigation, including costs associated with prosecuting and defending cla ims and any adverse outcomes, and possible environmental liabilities. Readers should carefully review the Registrant's financial statements and the notes thereto, as well as the risk factors described in the documents the Registrant files from time to time with the Securities and Exchange Commission.

The Partnership's sole asset is a 1,229 unit apartment complex known as Riverside Park Apartments located in Fairfax County, Virginia. Average occupancy for the six months ended June 30, 2007 and 2006 was 63% and 78%, respectively. The General Partner attributes the decrease in occupancy to the ongoing redevelopment project at the property (as discussed in “Results of Operations”).

The Partnership’s financial results depend upon a number of factors including the ability to attract and maintain tenants at the investment property, interest rates on mortgage loans, costs incurred to operate the investment property, general economic conditions and weather. As part of the ongoing business plan of the Partnership, the General Partner monitors the rental market environment of its investment property to assess the feasibility of increasing rents, maintaining or increasing occupancy levels and protecting the Partnership from increases in expenses. As part of this plan, the General Partner attempts to protect the Partnership from the burden of inflation-related increases in expenses by increasing rents and maintaining a high overall occupancy level. However, the General Partner may use rental concessions and rental rate reductions to offset softening market conditions; accordingly, there is no guarantee that the General Partner wi ll be able to sustain such a plan. Further, a number of factors that are outside the control of the Partnership such as the local economic climate and weather can adversely or positively affect the Partnership’s financial results.

Results of Operations

The Partnership’s net income for the three and six months ended June 30, 2007 was approximately $356,000 and $363,000, respectively, as compared to net loss of approximately $299,000 and $395,000 for the three and six months ended June 30, 2006, respectively. The increase in net income for both the three and six months ended June 30, 2007 is due to a decrease in total expenses and an increase in the recognition of casualty gains, partially offset by a decrease in total revenues. The decrease in total expenses for both periods is due to decreases in operating, depreciation, interest and property tax expenses, partially offset by an increase in general and administrative expenses. The decrease in operating expenses for both the three and six months ended June 30, 2007 is due to an increase in capitalized operating costs as a result of the redevelopment project at the Partnership’s investment property (as discussed below) and decreases in co ntract services and advertising expenses, partially offset by an increase in hazard insurance premiums at the property primarily as a result of the redevelopment project. The decrease in depreciation expense for both periods is due to fixed assets becoming fully depreciated at the Partnership’s investment property during the first quarter of 2007. The decrease in interest expense is due to an increase in interest capitalized at the property as a result of the redevelopment project and a decrease in interest expense on advances from an affiliate of the General Partner, partially offset by an increase in interest expense due to a higher average debt balance as a result of the refinancing of the mortgage loans encumbering Riverside Park Apartments, as discussed in “Liquidity and Capital Resources”. The decrease in property tax expense is primarily due to an increase in real estate taxes capitalized at the property as a result of the redevelopment project. The increase in general and administrativ e expenses for both the three and six months ended June 30, 2007 and 2006 is due to increases in management reimbursements to the General Partner and its affiliates as allowed under the Partnership Agreement and the annual partnership and investor service fee as allowed under the Partnership Agreement. Also included in general and administrative expenses for the three and six months ended June 30, 2007 and 2006 are costs associated with the quarterly and annual communications with investors and regulatory agencies and the annual audit required by the Partnership Agreement.

The decrease in total revenues for both periods is due to a decrease in rental income, partially offset by an increase in other income. The decrease in rental income is due to the decrease in occupancy, partially offset by an increase in the average rental rate at the Partnership’s investment property. The increase in other income is primarily due to an increase in interest income as a result of higher average cash balances.

In March 2005, the Partnership began a major redevelopment project at the property in order for it to remain competitive with other properties in the Fairfax area. During the six months ended June 30, 2007, the General Partner revised the estimated project cost from approximately $119,000,000 to approximately $137,000,000. Based on current plans, the General Partner expects the redevelopment to be complete in June 2010. The redevelopment is expected to consist of renovation and appliance upgrades to each apartment unit, exterior and interior improvements and the addition of a new clubhouse and fitness center. The Partnership expects to fund the redevelopment from operations, Partnership reserves, and advances from an affiliate of the General Partner. During the construction period, certain expenses are being capitalized and depreciated over the remaining life of the property. During the six months ended June 30, 2007 and 2006, approximately $ 1,848,000 and $685,000, respectively, of interest, approximately $208,000 and $97,000, respectively, of real estate taxes, and approximately $148,000 and $39,000, respectively, of other construction period operating costs were capitalized.

Liquidity and Capital Resources

At June 30, 2007, the Partnership had cash and cash equivalents of approximately $126,000, compared to approximately $174,000 at June 30, 2006. The decrease in cash and cash equivalents of approximately $15,120,000, from December 31, 2006, is due to approximately $18,536,000 of cash used in investing activities, partially offset by approximately $2,412,000 and $1,004,000 of cash provided by operating and financing activities, respectively. Cash used in investing activities consisted of property improvements and replacements, partially offset by insurance proceeds received. Cash provided by financing activities consisted of advances from an affiliate of the General Partner, partially offset by additional loan costs paid associated with the new financing (as discussed below). The Partnership invests its working capital reserves in interest bearing accounts.

The sufficiency of existing liquid assets to meet future liquidity and capital expenditure requirements is directly related to the level of capital expenditures required at the property to adequately maintain the physical assets and other operating needs of the Partnership, and to comply with Federal, state, and local legal and regulatory requirements. The General Partner monitors developments in the area of legal and regulatory compliance. For example, the Sarbanes-Oxley Act of 2002 mandates or suggests additional compliance measures with regard to governance, disclosure, audit, and other areas. In light of these changes, the Partnership expects that it will incur higher expenses related to compliance.

During the six months ended June 30, 2007, the Partnership completed approximately $17,419,000 of capital improvements primarily arising from the redevelopment of the property, which includes capitalization of construction period interest of approximately $1,848,000, real estate taxes of approximately $208,000 and other construction period operating costs of approximately $148,000. These improvements were funded from operations, Partnership reserves and advances from an affiliate of the General Partner. In March 2005, the Partnership began a major redevelopment project at the property in order for it to remain competitive with other properties in the Fairfax area. During the six months ended June 30, 2007, the General Partner revised the estimated project cost from approximately $119,000,000 to approximately $137,000,000. Based on current plans, the General Partner expects the redevelopment to be complete in June 2010. The redevelopment is ex pected to consist of renovation and appliance upgrades to each apartment unit, exterior and interior improvements and the addition of a new clubhouse and fitness center. As of June 30, 2007, the Partnership has spent approximately $38,907,000 for property redevelopment, of which approximately $21,488,000 was completed prior to 2007. The Partnership expects to fund the redevelopment from operations, Partnership reserves and advances from an affiliate of the General Partner. Certain other routine capital expenditures are anticipated during the remainder of 2007. Such capital expenditures will depend on the physical condition of the property as well as anticipated cash flow generated by the property.

The additional capital expenditures will be incurred only if cash is available from operations, Partnership reserves, or advances from affiliates of the General Partner. To the extent that capital improvements are completed, the Partnership’s distributable cash flow, if any, may be adversely affected at least in the short term.

The Partnership's assets are thought to be generally sufficient for any near-term needs (exclusive of capital improvements) of the Partnership. On September 29, 2006, the Partnership obtained an additional mortgage loan in the principal amount of $30,000,000 on Riverside Park Apartments. This mortgage bears interest at a fixed rate of 5.9% per annum and requires monthly payments of interest only beginning on October 1, 2006, until September 1, 2011. From October 1, 2011, through the maturity date of July 1, 2020, this mortgage loan requires monthly payments of principal and interest of approximately $178,000 with a balloon payment of approximately $25,829,000 due at maturity. As a condition of making the new mortgage, the Partnership was required to establish a debt service escrow, consisting of a line of credit of approximately $5,600,000, with the mortgage lender. Funds deposited into the debt service escrow will be released to the Partners hip upon the achievement of certain rental and occupancy criteria. Also as a condition of making the new mortgage, the lender required AIMCO Properties, L.P., an affiliate of the Partnership, to make guarantees with respect to certain non-recourse carveout obligations and liabilities of the Partnership with respect to the new mortgage.

In connection with the additional mortgage loan financing, the Partnership agreed to certain modifications of the existing first and second mortgage loans encumbering Riverside Park Apartments. The modified terms consisted of consolidation of the previously outstanding principal balances into a single loan amount of approximately $50,489,000, a fixed interest rate of 7.449% per annum, and required monthly payments of interest only beginning on October 1, 2006, until September 1, 2011. From October 1, 2011, through the maturity date of July 1, 2020, the modified mortgage requires monthly payments of principal and interest of approximately $351,000 with a balloon payment of approximately $44,909,000 due at maturity. Prior to these modifications, the interest rate on the existing first and second mortgages consisted of fixed rates of 7.64% and 6.50% per annum, respectively, and required monthly payments of principal and interest of approximately $415,000 and $75,000, respectively through their maturity date of July 1, 2020, at which time the loans were scheduled to be fully amortized.

There were no distributions paid to the partners during the six months ended June 30, 2007 or 2006. Future cash distributions will depend on the levels of cash generated from operations, the timing of the debt maturity, refinancings and/or property sale. The Partnership’s cash available for distribution is reviewed on a monthly basis. In light of the amounts accrued and payable to affiliates of the General Partner at June 30, 2007 and the significant redevelopment project at the property, there can be no assurance that the Partnership will generate sufficient funds from operations, after required capital expenditures, to permit any distributions to its partners during the remainder of 2007 or subsequent periods.

Other

In addition to its indirect ownership of the general partner interests in the Partnership, AIMCO and its affiliates owned 383.41 limited partnership units (the "Units") in the Partnership representing 67.74% of the outstanding Units at June 30, 2007. A number of these Units were acquired pursuant to tender offers made by AIMCO or its affiliates. It is possible that AIMCO or its affiliates will acquire additional Units in exchange for cash or a combination of cash and units in AIMCO Properties, L.P., the operating partnership of AIMCO, either through private purchases or tender offers. Pursuant to the Partnership Agreement, unitholders holding a majority of the Units 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. As a result of its ownership of 67.74% of the out standing Units, AIMCO and its affiliates are in a position to control all voting decisions with respect to the Partnership. Although the General Partner owes fiduciary duties to the limited partners of the Partnership, the General Partner also owes fiduciary duties to AIMCO, as its sole stockholder. As a result, the duties of the General Partner, as General Partner, to the Partnership and its limited partners may come into conflict with the duties of the General Partner to AIMCO as its sole stockholder.

Critical Accounting Policies and Estimates

The financial statements are prepared in accordance with accounting principles generally accepted in the United States, which require the Partnership to make estimates and assumptions. The Partnership believes that of its significant accounting policies, the following may involve a higher degree of judgment and complexity.

Impairment of Long-Lived Asset

Investment property is recorded at cost, less accumulated depreciation, unless the carrying amount of the asset is not recoverable. If events or circumstances indicate that the carrying amount of the property may not be recoverable, the Partnership will make an assessment of its recoverability by comparing the carrying amount to the Partnership’s estimate of the undiscounted future cash flows, excluding interest charges, of the property. If the carrying amount exceeds the aggregate undiscounted future cash flows, the Partnership would recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the property.

Real property investment is subject to varying degrees of risk. Several factors may adversely affect the economic performance and value of the Partnership’s investment property. These factors include, but are not limited to, general economic climate; competition from other apartment communities and other housing options; local conditions, such as loss of jobs or an increase in the supply of apartments that might adversely affect apartment occupancy or rental rates; changes in governmental regulations and the related cost of compliance; increases in operating costs (including real estate taxes) due to inflation and other factors, which may not be offset by increased rents; and changes in tax laws and housing laws, including the enactment of rent control laws or other laws regulating multi-family housing. Any adverse changes in these factors could cause impairment of the Partnership’s asset.

Capitalized Costs Related to Redevelopment and Construction Projects

The Partnership capitalizes costs incurred in connection with capital expenditure activities, including redevelopment and construction projects. Costs including interest, property taxes and operating costs associated with redevelopment and construction projects are capitalized during periods in which redevelopment and construction projects are in progress in accordance with Statement of Financial Accounting Standards (“SFAS”) No. 34, “Capitalization of Interest Costs”, and SFAS No. 67, “Accounting for Costs and the Initial Rental Operations of Real Estate Properties.” Included in these capitalized costs are payroll costs associated with time spent by site employees in connection with the planning, execution and control of all capital expenditure activities at the property level.

Revenue Recognition

The Partnership generally leases apartment units for twelve-month terms or less. The Partnership will offer rental concessions during particularly slow months or in response to heavy competition from other similar complexes in the area. Rental income attributable to leases, net of any concessions, is recognized on a straight-line basis over the term of the lease. The Partnership evaluates all accounts receivable from residents and establishes an allowance, after the application of security deposits, for accounts greater than 30 days past due on current tenants and all receivables due from former tenants.

ITEM 3.

CONTROLS AND PROCEDURES

(a)

Disclosure Controls and Procedures. The Partnership’s management, with the participation of the principal executive officer and principal financial officer of the General Partner, who are the equivalent of the Partnership’s principal executive officer and principal financial officer, respectively, has evaluated the effectiveness of the Partnership’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the principal executive officer and principal financial officer of the General Partner, who are the equivalent of the Partnership’s principal executive officer and principal financial officer, respectively, have concluded that, as of the end of such period, the Partnership’s disclosure controls and procedures are effective.

(b)

Internal Control Over Financial Reporting. There have not been any changes in the Partnership’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 5.

OTHER INFORMATION

None.

ITEM 6.

EXHIBITS

See Exhibit Index.

SIGNATURES

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	RIVERSIDE PARK ASSOCIATES LIMITED
	PARTNERSHIP, a Delaware limited partnership

	By: AIMCO/RIVERSIDE PARK ASSOCIATES, GP,
	LLC, a Delaware limited liability
	company, Its General Partner

	By: AIMCO/BETHESDA HOLDINGS, INC.
	A Delaware corporation, Its Sole Member

Date: August 13, 2007	By: /s/Martha L. Long
	Martha L. Long
	Senior Vice President

Date: August 13, 2007	By: /s/Stephen B. Waters
	Stephen B. Waters
	Vice President

RIVERSIDE PARK ASSOCIATES LIMITED PARTNERSHIP

Index to Exhibits

Exhibit

Description of Exhibit

3.1

Riverside Park Associates Limited Partnership Amended and Restated Limited Partnership Agreement, dated July 15, 1986; incorporated by reference to the Exhibits to the Registrant's Registration Statement on Form 10, filed on April 29, 1987. (Commission Partnership file number 0-15740).

3.2

Certificate of Limited Partnership of Riverside Park Associates Limited Partnership, filed with the Secretary of State of Delaware May 14, 1986; incorporated by reference to the exhibits to the Registrant's Annual Report filed on Form 10-K on March 30, 1988.

3.3

Amendment to Amended and Restated Partnership Agreement of Riverside Park Associates Limited Partnership dated August 23, 1995; incorporated by reference to the Exhibits to the Registrant's Annual Report filed on Form 10-KSB, filed on March 31, 1998.

10(g)

Multifamily Note dated September 29, 2006, between AIMCO Riverside Park, L.L.C., a Delaware limited liability company, and Wells Fargo Bank, N.A. Incorporated by reference to the Exhibits to the Registrant’s Current Report on Form 8-K dated September 29, 2006.

10(h)

Consolidated, Amended and Restated Multifamily Note dated September 29, 2006, between AIMCO Riverside Park, L.L.C., a Delaware limited liability company, and the Federal Home Loan Mortgage Corporation. Incorporated by reference to the Exhibits to the Registrant’s Current Report on Form 8-K dated September 29, 2006.

10(i)

Guaranty dated September 29, 2006 between AIMCO Properties, L.P., a Delaware limited partnership, and the Federal Home Loan Mortgage Corporation. Incorporated by reference to the Exhibits to the Registrant’s Current Report on Form 8-K dated September 29, 2006.

10(j)

Consolidated, Amended and Restated Guaranty dated September 29, 2006 between AIMCO Properties, L.P., a Delaware limited partnership, and the Federal Home Loan Mortgage Corporation. Incorporated by reference to the Exhibits to the Registrant’s Current Report on Form 8-K dated September 29, 2006.

10(k)

Debt Service Escrow Agreement dated September 29, 2006, between AIMCO Riverside Park, L.L.C., a Delaware limited liability company, and Wells Fargo Bank, N.A. Incorporated by reference to the Exhibits to the Registrant’s Current Report on Form 8-K dated September 29, 2006.

31.1

Certification of equivalent of Chief Executive Officer pursuant to Securities Exchange Act Rules 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

Certification of equivalent of Chief Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1

Certification of equivalent of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Exhibit 31.1

CERTIFICATION

I, Martha L. Long, certify that:

I have reviewed this quarterly report on Form 10-QSB of Riverside Park Associates Limited Partnership;

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

The small business issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the small business issuer and have:

(a)

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)

Evaluated the effectiveness of the small business issuer's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(c)

Disclosed in this report any change in the small business issuer's internal control over financial reporting that occurred during the small business issuer's most recent fiscal quarter (the small business issuer's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer's internal control over financial reporting; and

The small business issuer's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer's auditors and the audit committee of the small business issuer's board of directors (or persons performing the equivalent functions):

(a)

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer's ability to record, process, summarize and report financial information; and

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Date: August 13, 2007

/s/Martha L. Long

Martha L. Long

Senior Vice President of AIMCO/Bethesda Holdings, Inc., equivalent of the chief executive officer of the Partnership

Exhibit 31.2

CERTIFICATION

I, Stephen B. Waters, certify that:

I have reviewed this quarterly report on Form 10-QSB of Riverside Park Associates Limited Partnership;

(a)

(b)

(c)

(a)

(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer's internal control over financial reporting.

Date: August 13, 2007

/s/Stephen B. Waters

Stephen B. Waters

Vice President of AIMCO/Bethesda Holdings, Inc., equivalent of the chief financial officer of the Partnership

Exhibit 32.1

Certification of CEO and CFO

Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report on Form 10-QSB of Riverside Park Associates Limited Partnership (the "Partnership"), for the quarterly period ended June 30, 2007 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Martha L. Long, as the equivalent of the chief executive officer of the Partnership, and Stephen B. Waters, as the equivalent of the chief financial officer of the Partnership, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.


	/s/Martha L. Long
	Name: Martha L. Long
	Date: August 13, 2007

	/s/Stephen B. Waters
	Name: Stephen B. Waters
	Date: August 13, 2007

This certification is furnished with this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Partnership for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

Riverside Park Associates Inactive 10QSB2007 Q2 Quarterly report (small business)