Debt

6 Months Ended

Jun. 30, 2011

Debt

Debt Disclosure [Text Block]

Note D – Mortgage Financing

On May 2, 2011, the Partnership refinanced the mortgage encumbering Creekside Apartments.  The refinancing resulted in the replacement of the existing mortgage loan, which at the time of refinancing had a principal balance of approximately $14,087,000, with a new mortgage loan in the principal amount of $12,869,000. The new loan bears interest at a rate of 5.59% per annum and requires monthly payments of principal and interest of approximately $74,000 beginning on July 1, 2011, through the June 1, 2021 maturity date.  The new mortgage loan has a balloon payment of approximately $10,673,000 due at maturity. The Partnership may prepay the mortgage at any time with 30 days written notice to the lender, subject to a prepayment penalty. The Partnership recorded a loss on the early extinguishment of debt of approximately $960,000, as a result of the write off of unamortized loan costs and the payment of a prepayment penalty associated with the repayment of the existing mortgage. Total capitalized loan costs associated with the new mortgage were approximately $148,000 and are included in other assets.

In connection with the refinancing, the Partnership received an advance of approximately $2,325,000 from AIMCO Properties, L.P. This advance and proceeds from the new mortgage loan were then used to pay in full the existing mortgage debt encumbering Creekside Apartments, including a prepayment penalty of approximately $873,000. This advance is unsecured and bears interest at a rate of prime plus 2.00%.