Discontinued Operations (Notes)

6 Months Ended

Jun. 30, 2015

Discontinued Operations [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Discontinued Operations

The primary purpose of the Company is to acquire, hold, sell and otherwise deal with mortgage revenue bonds and other instruments which have been issued to provide construction and/or permanent financing for Residential Properties and other commercial properties. The Mortgage Revenue Bonds, the Public Housing Capital Fund Trust, and the Mortgage-Backed Securities segments fulfill this purpose, are long-term investments, and the properties which collateralize the mortgage revenue bonds are not owned or managed by the Company. The MF Property segment is comprised of indirectly owned, actively managed, and controlled multifamily properties. The MF Properties included in this segment are typically financed with third party mortgages.

Effective during the three months ended June 30, 2015, the Company changed its reportable segments due to the classification of the Company’s Consolidated VIEs as discontinued operations. The Consolidated VIE segment was comprised of the results of operations of the underlying collateral for the related mortgage revenue bonds. The Company concluded its investment in the Consolidated VIE segment was not consistent with the Company’s portfolio of assets, as described above. As such, the Company decided to implement a strategic shift in direction by discontinuing its Consolidated VIE segment. This decision was made for the following reasons:

• The risk profile of the Consolidated VIE segment was unique as the substance of the investment was the result of the operations of the underlying properties and not the mortgage revenue bonds (which is the form of the investment).The risk profile includes:

•The underlying properties thin capitalization,

•Related party ownership groups, and

•The lack of ultimate decision-making authority.

• The stated purpose of the Company was not to manage properties without having some type of ownership or ability to control the underlying property.

• Subsequent to the disposition of the Consolidated VIE properties by their owners, the Company does not plan to include this type of investment as part of its strategic direction.

As such, in April 2015, separate brokerage contracts were executed to list the Consolidated VIEs; Bent Tree and Fairmont Oaks, for sale. As a result, management has determined these Consolidated VIEs met the criteria for discontinued operations presentation and have been classified as such in the Company’s condensed consolidated financial statements for all periods presented (see Notes 1, 3, and 7). The Consolidated VIEs results of operations are reported in the segments as part of the discontinued operations in Net income (see Note 19).

The proceeds from these sales are expected to be more than the carrying value of each of the property’s assets and the sales are expected to be completed before December 31, 2015.

The following represents the components of the assets and liabilities of discontinued operations:

	June 30, 2015			December 31, 2014
Cash and cash equivalents	$	12,364		$	35,772
Restricted cash	591,729			544,233
Land and Land Improvements	1,836,400			1,836,400
Buildings and improvements	21,304,112			21,204,047
Real estate assets before accumulated depreciation	23,140,512			23,040,447
Accumulated depreciation	(10,782,996		)	(10,583,647		)
Net real estate assets	12,357,516			12,456,800
Other assets	91,040			167,210
Total assets from discontinued operations	13,052,649			13,204,015
Accounts payable and accrued expenses	445,126			503,743
Mortgage payable	—			—
Total liabilities from discontinued operations	445,126			503,743
Net assets of discontinued operations	$	12,607,523		$	12,700,272

The following presents the revenues, expenses and income from discontinued operations:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2015		2014		2015		2014
Rental revenues	$	817,533	$	785,552	$	1,621,601	$	1,586,424
Expenses	579,246		755,040		1,358,886		1,496,266
Net Income from discontinued operations	$	238,287	$	30,512	$	262,715	$	90,158