0000711642-13-000091.txt : 20130412 0000711642-13-000091.hdr.sgml : 20130412 20130412145846 ACCESSION NUMBER: 0000711642-13-000091 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20121231 FILED AS OF DATE: 20130412 DATE AS OF CHANGE: 20130412 FILER: COMPANY DATA: COMPANY CONFORMED NAME: REAL ESTATE ASSOCIATES LTD VI CENTRAL INDEX KEY: 0000715578 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 953778627 STATE OF INCORPORATION: CA FISCAL YEAR END: 1229 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-13112 FILM NUMBER: 13758551 BUSINESS ADDRESS: STREET 1: 9090 WILSHIRE BLVD STE 201 CITY: BEVERLY HILLS STATE: CA ZIP: 90211 BUSINESS PHONE: 3102782191 MAIL ADDRESS: STREET 1: 9090 WILSHIRE BLVD SUITE 201 CITY: BEVERLY HILLS STATE: CA ZIP: 90211 10-K 1 real61212_10k.htm 10-K SECURITIES AND EXCHANGE COMMISSION

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC  20549

 

Form 10-K

(Mark One)

[X]   ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

     

For the fiscal year ended December 31, 2012

 

or

 

[ ]   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

     

                For the transition period from _________to _________

 

Commission file number 0-13112

 

REAL ESTATE ASSOCIATES LIMITED VI

(Exact name of registrant as specified in its charter)

 

California

95-3778627

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification No.)

 

80 International Drive

Greenville, South Carolina 29615

(Address of principal executive offices)

 

Registrant's telephone number, including area code (864) 239-1000

 

Securities registered pursuant to Section 12(b) of the Act:

 

None

 

Securities registered pursuant to Section 12(g) of the Act:

 

Limited Partnership Interests

(Title of class)

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [X]

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [ ] No [X]

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 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 has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [X] Yes  [ ] No

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [X]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer £

Accelerated filer £

Non-accelerated filer £(Do not check if a

smaller reporting company)

Smaller reporting company S

 

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

 

State the aggregate market value of the voting and non-voting partnership interests held by non-affiliates computed by reference to the price at which the partnership interests were last sold, or the average bid and asked price of such partnership interests as of the last business day of the registrant’s most recently completed second fiscal quarter.  No market exists for the limited partnership interests of the Registrant, and, therefore, no aggregate market value can be determined.

 

DOCUMENTS INCORPORATED BY REFERENCE

None

 

FORWARD-LOOKING STATEMENTS

 

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements in certain circumstances. Certain information included in this Annual Report contains or may contain information that is forward-looking within the meaning of the federal securities laws. Actual results may differ materially from those described in these forward-looking statements and, in addition, will be affected by a variety of risks and factors, some of which are beyond the Partnership’s control, including, without limitation: financing risks, including the availability and cost of financing and the risk that the Partnership’s cash flows from operations may be insufficient to meet required payments of principal and interest; national and local economic conditions, including the pace of job growth and the level of unemployment; the terms of governmental regulations that affect the Partnership and its investment in limited partnerships and interpretations of those regulations; the competitive environment in which the Partnership operates; real estate risks, including fluctuations in real estate values and the general economic climate in local markets and competition for residents in such markets; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; and possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by the limited partnerships in which the Partnership has invested.   Readers should carefully review the Partnership’s consolidated financial statements and the notes thereto, as well as the other documents the Partnership files from time to time with the Securities and Exchange Commission.

 

PART I

 

ITEM 1.     BUSINESS

 

Real Estate Associates Limited VI ("REAL VI" or the "Partnership") is a limited partnership which was formed under the laws of the State of California on October 12, 1982. On April 22, 1983, REAL VI offered 4,200 units consisting of 8,400 limited partnership interests and warrants to purchase a maximum of 8,400 additional limited partnership interests through a public offering managed by E.F. Hutton Inc. 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. The principal business of the Partnership is to invest, directly or indirectly, in other limited partnerships which own or lease and operate Federal, state and local government-assisted housing projects.

 

The general partners of REAL VI are National Partnership Investments, LLC ("NAPICO" or the “General Partner”), a California limited liability company, 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 business of REAL VI is conducted primarily by NAPICO.  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 individual investments.

 

REAL VI holds limited partnership interests in five local limited partnerships (the “Local Limited Partnerships”).  Each of the Local Limited Partnerships owns a low income housing project which is subsidized and/or has a mortgage note payable to or insured by agencies of the Federal or local government. The Partnership sold its interests in 10 Local Limited Partnerships in December 1998. In 2003, the Partnership sold its interest in one Local Limited Partnership and the interest in another Local Limited Partnership was foreclosed on by a noteholder. In 2005, two of the Local Limited Partnerships sold their investment properties and the Partnership assigned its interest in another Local Limited Partnership. In 2006, the Partnership sold its interest in one Local Limited Partnership.  In 2007, two Local Limited Partnerships sold their investment properties. In 2010, one Local Limited Partnership sold its investment property. In 2011, the Partnership sold its interest in five Local Limited Partnerships. In 2012, four Local Limited Partnerships sold their investment properties.

 

The partnerships in which REAL VI has invested were, at least initially, organized by private developers who acquired the sites, or options thereon, and applied for applicable mortgage insurance and subsidies.  REAL VI became the principal limited partner in these Local Limited Partnerships pursuant to arm's-length negotiations with these developers, or others, who act as general partners.  As a limited partner, REAL VI's liability for obligations of the Local Limited Partnerships is limited to its investment.  The local general partner of the Local Limited Partnerships retains responsibility for developing, constructing, maintaining, operating and managing the project.  Under certain circumstances of default, REAL VI has the right to replace the general partner of the Local Limited Partnership, but otherwise does not have control of sale or refinancing, etc.

 

Although each of the Local Limited Partnerships in which the Partnership has invested owns a project which must compete in the market place for tenants, interest subsidies and rent supplements from governmental agencies make it possible to offer these dwelling units to eligible “low income” tenants at a cost significantly below the market rate for comparable conventionally financed dwelling units in the area.

 

The Partnership has no employees. Management and administrative services are performed for the Partnership by the General Partner and agents retained by the General Partner.

 

A further description of the Partnership's business is included in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" included in this Form 10-K.

 

ITEM 1A.    RISK FACTORS

 

Not applicable.

 


ITEM 2.     PROPERTIES

 

During the year ended December 31, 2012, the projects in which REAL VI had invested were substantially rented.  The following is a schedule of the status as of December 31, 2012 of the projects owned by Local Limited Partnerships in which REAL VI is a limited partner.

 

SCHEDULE OF PROJECTS OWNED BY

LOCAL LIMITED PARTNERSHIPS

IN WHICH REAL VI HAS AN INVESTMENT

December 31, 2012

 

 

 

Financed,

Units

 

 

 

 

Insured

Authorized

Percentage of

Percentage of

 

 

And

For Rental

Total Units

Total Units

 

No. of

Subsidized

Assistance Under

Occupied

Occupied

Name and Location

Units

Under

Section 8 (C)

2012

2011

 

 

 

 

 

 

Crockett Manor

 

 

 

 

 

  Trenton, TN

  38

(A)

  38

99%

99%

 

 

 

 

 

 

Hummelstown Manor

 

 

 

 

 

  Hummelstown, PA

  51

(B)

  50

100%

100%

 

 

 

 

 

 

KentuckyManor

 

 

 

 

 

  Oak Grove, KY

  48

(B)

  --

89%

88%

 

 

 

 

 

 

Oakridge Park II

 

 

 

 

 

  Biloxi, MS

  48

(B)

  --

92%

96%

 

 

 

 

 

 

Park Place

 

 

 

 

 

  Ewing, NJ

 126

State Program

 125

93%

87%

 

 

 

 

 

 

  Totals

 311

 

 213

 

 

 

(A)   The mortgage is insured by the Federal Housing Administration under the provisions of Section 221(d)(4) of the National Housing Act.

 

(B)   The mortgage is insured by the Federal Housing Administration under the provisions of Section 515(b) and 521 of the National Housing Act.

 

(C)   Section 8 of Title II of the Housing and Community Development Act of 1974.


 

The following table details the Partnership’s ownership percentages of the Local Limited Partnerships and the cost of acquisition of such ownership.  All interests are limited partnership interests.  Also included is the total mortgage encumbrance on each property for each of the Local Limited Partnerships as of December 31, 2012.

 

 

REAL VI

Original Cost

 

 

Percentage

of Ownership

Mortgage

Partnership

Interest

Interest

Notes

 

 

(in thousands)

(in thousands)

 

 

 

 

Crockett Manor

99.00%

$   215

$   978

 

 

 

 

Hummelstown Manor

95.00%

    330

  1,614

 

 

 

 

KentuckyManor

95.00%

    250

      (A)

 

 

 

 

Oakridge Park II

95.00%

    221

  1,095

 

 

 

 

Park Place

90.00%

  1,182

    916

 

 

 

 

TOTALS

 

$ 2,198

$ 4,603

 

(A)   Financial information is unavailable for this Local Limited Partnership.

 

Although each Local Limited Partnership in which the Partnership has invested owns an apartment complex which must compete with other apartment complexes for tenants, government mortgage interest and rent subsidies make it possible to rent units to eligible tenants at below market rates.  In general, this insulates the properties from market competition.

 

ITEM 3.     LEGAL PROCEEDINGS

 

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.

 

ITEM 4.     MINE SAFETY DISCLOSURES

 

Not applicable.

 

 


PART II

 

ITEM 5.     MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 

The Limited Partnership Interests are not traded on a public exchange but were sold through a public offering managed by E.F. Hutton Inc. It is not anticipated that any active public market will develop for the purchase and sale of any partnership interest, therefore an investor may be unable to sell or otherwise dispose of his or her interest in the Partnership.  Limited Partnership Interests may be transferred only if certain requirements in the Partnership Agreement are satisfied.  At December 31, 2012, there were 2,912 registered holders of units in the Partnership holding 16,568 partnership interests in the Partnership.  The Partnership has invested in certain government assisted projects under programs, which in many instances restrict the cash return available to project owners.  The Partnership was not designed to provide cash distributions to investors in circumstances other than refinancing or disposition of its investments in Local Limited Partnerships. No distributions were made during the years ended December 31, 2012 and 2011.

 

Neither the General Partner nor its affiliates currently own any of the outstanding limited partnership interests in the Partnership at December 31, 2012.  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 10.62% of the outstanding limited partnership interests in the Partnership as of December 31, 2012.  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.

 

 

ITEM 6.     SELECTED FINANCIAL DATA

 

Not applicable.

 

Item 7.     Management's Discussion and Analysis of Financial Condition and Results of Operations

 

This item should be read in conjunction with the consolidated financial statements and other items contained elsewhere in this report.

 

The General Partner monitors developments in the area of legal and regulatory compliance. 

 

Liquidity and Capital Resources

 

The properties in which the Partnership has invested, through its investments in the Local Limited Partnerships, receive one or more forms of assistance from the Federal Government.  As a result, the Local Limited Partnerships’ ability to transfer funds either to the Partnership or among themselves in the form of cash distributions, loans or advances is generally restricted by these government assistance programs. These restrictions, however, are not expected to impact the Partnership’s ability to meet its cash obligations.

 

The Partnership's primary source of funds consists of distributions from Local Limited Partnerships in which the Partnership has invested. It is not expected that any of the Local Limited Partnerships in which the Partnership has invested will generate cash flow from operations sufficient to provide for distributions to the Partnership's limited partners in any material amount. An infrequent source of funds is from the sale of a Local Limited Partnership property or the sale of the Partnership’s interest in a Local Limited Partnership. As discussed below, during the years ended December 31, 2012 and 2011, the Partnership received net proceeds of approximately $408,000 from the sales of Marshall Plaza Apartments I and II and Oakwood Manor and proceeds of approximately $401,000 from the assignment of limited partnership interests in five Local Limited Partnerships, respectively. No distributions to the Partnership’s limited partners were made during the years ended December 31, 2012 or 2011.

 

Distributions received from Local Limited Partnerships are recognized as a reduction of the investment balance until the investment balance has been reduced to zero. Subsequent distributions received are recognized as income. For the year ended December 31, 2011, the Partnership received approximately $60,000 in operating distributions from Local Limited Partnerships which were recognized as income.  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 consolidated statements of operations. The Partnership had no investment balance remaining in Marshall Plaza Apartments I and II as of the date of sale and December 31, 2011.

 

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 below), (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 as of the date of sale and December 31, 2011.

 

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 and December 31, 2011.

 

In May 2011, the Partnership assigned its limited partnership interests in Grant-Ko Enterprises, New Bel-Mo and Sauk-Ko Enterprises to affiliates of the Local Operating General Partners of the Local Limited Partnerships for approximately $362,000. The proceeds received of approximately $339,000, net of Wisconsin withholding tax of approximately $23,000, were recorded as a gain on sale of interests in Local Limited Partnerships as the Partnership’s investment balance in all three Local Limited Partnerships was zero at the date of assignment.

 

In August 2011, the Partnership assigned its limited partnership interest in Orocovix Limited Dividend Partnership to an affiliate of the Local Operating General Partner of the Local Limited Partnership for approximately $12,000. The proceeds received were recorded as a gain on sale of interest in Local Limited Partnership as the Partnership’s investment balance in the Local Limited Partnership was zero at the date of assignment.

 

In August 2011, the Partnership assigned its limited partnership interest in Valley Oaks Senior Housing Associates to an affiliate of the Local Operating General Partner of the Local Limited Partnership for $50,000. The proceeds received were recorded as a gain on sale of interest in Local Limited Partnership as the Partnership’s investment balance in the Local Limited Partnership was zero at the date of assignment.

 

As of December 31, 2012 and 2011, the Partnership had cash and cash equivalents of approximately $1,473,000 and $1,452,000, respectively. All of this cash is on deposit with a financial institution.

 

The Partnership was obligated on non-recourse notes payable of $520,000, which bore interest at 9.5 percent per annum and had principal maturities of December 1999. The notes and related interest were payable from cash flow generated from operations of the related rental property as defined in the notes. Unpaid interest was due at maturity of the notes. Interest expense on non-recourse notes payable was approximately $8,000 and $49,000 for the years ended December 31, 2012 and 2011, respectively. The notes payable and related accrued interest aggregating approximately $1,883,000 at December 31, 2011 relating to Cassady Village Apartments, Ltd. became payable prior to December 31, 2011. During 2005, the Partnership entered into an agreement with the non-recourse note holder for Cassady Village pursuant to which the noteholder agreed to forebear taking any action under the note pending the purchase by the noteholder of a series of projects, including the properties owned by the Local Limited Partnerships Cassady Village and Marshall Plaza I & II Apartments. As discussed above, these Local Limited Partnerships sold their respective investment properties to the note-holder during the year ended December 31, 2012. 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.

 

Crockett Manor has entered into a purchase and sale contract to sell its investment property to a third party for a sale price that exceeds the balance of the mortgage encumbering the property by $75,000. After payment of closing costs and the mortgage encumbering the property, the Partnership does not expect to receive any proceeds from the sale of Crockett Manor. The transaction is expected to close during 2013. The Partnership had no investment balance remaining in Crockett Manor as of December 31, 2012 and 2011.

 

Results of Operations

 

At December 31, 2012, the Partnership had investments in five Local Limited Partnerships, all of which own housing projects, most of which were substantially rented. The Partnership, as a limited partner, does not have a contractual relationship with the Local Limited Partnerships or exercise control over the activities and operations, including refinancing or selling decisions, of the Local Limited Partnerships that would require or allow for consolidation.  Accordingly, the Partnership accounts for its investment in the Local Limited Partnerships using the equity method. Thus the individual investments are carried at cost plus the Partnership’s share of the Local Limited Partnership’s profits less the Partnership’s share of the Local Limited Partnership’s losses, distributions and any impairment charges. However, since the Partnership is not legally liable for the obligations of the Local Limited Partnerships, or is not otherwise committed to provide additional support to them, 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.  Subsequent distributions received are recognized as income in the consolidated statements of operations.  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. During the years ended December 31, 2012 and 2011, the Partnership recognized equity in income and amortization of acquisition costs of approximately $391,000 and $224,000, respectively, from one Local Limited Partnership.

 

The investments in all but one of the Local Limited Partnerships have been reduced to zero as of December 31, 2012 and 2011. 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, 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. There were no advances from the Partnership to the Local Limited Partnerships during the year ended December 31, 2011. During the years ended December 31, 2012 and 2011, the Partnership received repayment of advances of approximately $196,000 from Oakwood Manor and approximately $37,000 from Crockett Manor, respectively. The repayments of advances were recognized as income on the consolidated statements of operations.

 

Total revenues from continuing operations for the Local Limited Partnerships were approximately $2,589,000 and $2,490,000 for the years ended December 31, 2012 and 2011, respectively.

 

Total expenses from continuing operations for the Local Limited Partnerships were approximately $2,222,000 and $2,154,000 for the years ended December 31, 2012 and 2011, respectively.

 

Total income from continuing operations for the Local Limited Partnerships was approximately $367,000 and $336,000 for the years ended December 31, 2012 and 2011, respectively. The income from continuing operations allocated to the Partnership was approximately $325,000 and $306,000 for the years ended December 31, 2012 and 2011, respectively, but was not fully recognized on the consolidated statements of operations included in “Item 8. Financial Statements and Supplementary Data” because the Partnership’s remaining investment balance in certain Local Limited Partnerships has been reduced to zero.

 

A recurring partnership expense is the annual management fee. The fee is payable to the General Partner and is calculated at 0.5 percent of the Partnership's original remaining invested assets at the beginning of the year. The management fee is paid to the General Partner for its continuing management of the Partnership’s affairs. Management fees were approximately $94,000 and $132,000 for the years ended December 31, 2012 and 2011, respectively. The decrease in the management fee is due to the Partnership’s assignment of its limited partnership interest in five Local Limited Partnerships during 2011.

 

Operating expenses, other than management fees, consist of legal and accounting fees for services rendered to the Partnership and general and administrative expenses. Legal and accounting fees were approximately $84,000 and $107,000 for the years ended December 31, 2012 and 2011, respectively. The decrease in legal and accounting fees is primarily due to a decrease in legal fees related to the 2011 assignment of limited partnership interests in five Local Limited Partnerships. General and administrative expenses were approximately $26,000 and $19,000 for the years ended December 31, 2012 and 2011, respectively.

 

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, 2012 and 2011, the expense was approximately $165,000 and $120,000, respectively. The increase in tax expense is due to an increase in the portion of the New Jersey tax that is based on the apportionment of income.

 

Interest expense on non-recourse notes payable was approximately $8,000 and $49,000 for the years ended December 31, 2012 and 2011, respectively.  The non-recourse notes payable related to Cassady Village were extinguished during March 2012, as discussed in “Liquidity and Capital Resources”.

 

The Partnership, as a limited partner in the Local Limited Partnerships in which it has invested, is subject to the risks incident to the construction, management and ownership of improved real estate.  The Partnership‘s investments are also subject to adverse general economic conditions, and, accordingly, the status of the national economy, including substantial unemployment, concurrent inflation and changing legislation which could increase vacancy levels, rental payment defaults, and operating expenses, which in turn could substantially increase the risk of operating losses for the projects.

 

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 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. 

 

Off-Balance Sheet Arrangements

 

The Partnership owns limited partnership interests in unconsolidated Local Limited Partnerships, in which the Partnership’s ownership percentage ranges from 90% to 99%.  However, based on the provisions of the relevant partnership agreements, the Partnership, as a limited partner, does not have control or a contractual relationship with the Local Limited Partnerships that would require or allow for consolidation under accounting principles generally accepted in the United States (see “Note 1 – Organization and Summary of Significant Accounting Policies” of the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data”).  There are no lines of credit, side agreements or any other derivative financial instruments between the Local Limited Partnerships and the Partnership.  Accordingly the Partnership’s maximum risk of loss related to these unconsolidated Local Limited Partnerships is limited to the recorded investments in and receivables from the Local Limited Partnerships.  See “Note 2 – Investments in and Advances to Local Limited Partnerships” of the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data” for additional information about the Partnership’s investments in unconsolidated Local Limited Partnerships.


 

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, 2012 and 2011, the Partnership holds variable interests in five and nine VIEs, respectively, for which the Partnership is 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 five VIEs at December 31, 2012 consist of Local Limited Partnerships that are directly engaged in the ownership and management of five apartment properties with a total of 311 units.  The Partnership is involved with those VIEs as a non-controlling limited partner equity holder.  The Partnership’s maximum exposure to loss as a result of its involvement with the unconsolidated VIEs is limited to the Partnership’s recorded investments in and receivables from these VIEs, which were approximately $899,000 and $508,000 at December 31, 2012 and 2011, respectively.  The Partnership may be subject to additional losses to the extent of any financial support that the Partnership voluntarily provides in the future.

 

Critical Accounting Policies and Estimates

 

A summary of the Partnership’s significant accounting policies is included in “Note 1 – Organization and Summary of Significant Accounting Policies” which is included in the consolidated financial statements in “Item 8. Financial Statements and Supplementary Data”.  The General Partner believes that the consistent application of these policies enables the Partnership to provide readers of the consolidated financial statements with useful and reliable information about the Partnership’s operating results and financial condition. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires the Partnership to make estimates and assumptions.  These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements as well as reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.  Judgments and assessments of uncertainties are required in applying the Partnership’s accounting policies in many areas. The Partnership believes that of its significant accounting policies, the following may involve a higher degree of judgment and complexity.

 

Method of Accounting for Investments in Local Limited Partnerships

 

The Partnership, as a limited partner, does not have a contractual relationship with the Local Limited Partnerships or exercise control over the activities and operations, including refinancing or selling decisions, of the Local Limited Partnerships that would require or allow for consolidation. Accordingly, the Partnership accounts for its investments in the Local Limited Partnerships using the equity method. The Partnership is allocated profits and losses of the Local Limited Partnerships based upon its respective ownership percentages of between 90% and 99%.  Distributions of surplus cash from operations from most of the Local Limited Partnerships are restricted by the Local Limited Partnerships’ Regulatory Agreements with the United States Department of Housing and Urban Development (“HUD”). These restrictions limit the distribution to a portion, generally less than 10%, of the initial invested capital. The excess surplus cash is deposited into a residual receipts reserve, of which the ultimate realization by the Partnership is uncertain as HUD frequently retains it upon sale or dissolution of the Local Limited Partnership. The Partnership is allocated profits and losses and receives distributions from refinancings and sales in accordance with the Local Limited Partnerships’ partnership agreements. These agreements usually limit the Partnership’s distributions to an amount substantially less than its ownership percentage in the Local Limited Partnership. 

 

The individual investments are carried at cost plus the Partnership’s share of the Local Limited Partnership’s profits less the Partnership’s share of the Local Limited Partnership’s losses, distributions and impairment charges.  See “Item 8. Financial Statements and Supplementary Data - Note 1 – Organization and Summary of Significant Accounting Policies” for a description of the impairment policy.  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 consolidated statements of operations included in “Item 8. Financial Statements and Supplementary Data”.

 

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.

 

ITEM 7A.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not applicable.



 

Report of Independent Registered Public Accounting Firm

 

 

 

 

 

 

 

 

The Partners

Real Estate Associates Limited VI

 

 

We have audited the accompanying consolidated balance sheets of Real Estate Associates Limited VI as of December 31, 2012 and 2011, and the related consolidated statements of operations, changes in partners' capital (deficiency), and cash flows for each of the two years in the period ended December 31, 2012. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  We were not engaged to perform an audit of the Partnership’s internal control over financial reporting.  Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Real Estate Associates Limited VI at December 31, 2012 and 2011, and the consolidated results of its operations and its cash flows for each of the two years in the period ended December 31, 2012, in conformity with U.S. generally accepted accounting principles.

 

/s/Ernst & Young LLP

 

Greenville, South Carolina

April 12, 2013


 

 

REAL ESTATE ASSOCIATES LIMITED VI

 

CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

 

December 31,

 

2012

2011

Assets

 

 

 

 

 

Investments in and advances to Local Limited Partnerships

$   899

$   508

Cash and cash equivalents

  1,473

  1,452

Receivables – limited partners

    313

    196

Total assets

$ 2,685

$ 2,156

 

 

 

Liabilities and Partners’ Capital (Deficiency)

 

 

 

 

 

Liabilities:

 

 

  Accounts payable and accrued expenses

$   127

$    40

  Taxes payable

    102

     72

  Notes payable, in default

     --

    520

  Accrued interest payable, in default

     --

  1,363

Total liabilities

    229

  1,995

 

 

 

Contingencies

     --

     --

 

 

 

Partners’ capital (deficiency)

 

 

  General partners

    (327)

    (350)

  Limited partners

  2,783

    511

Total partners’ capital (deficiency)

  2,456

    161

Total liabilities and partners’ capital (deficiency)

$ 2,685

$ 2,156

 

 

 

 

See Accompanying Notes to Consolidated Financial Statements

 

 


REAL ESTATE ASSOCIATES LIMITED VI

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per interest data)

 

 

 

 

 

 

Years Ended December 31,

 

2012

2011

 

 

 

Revenues:

$    --

$    --

 

 

 

Operating Expenses:

 

 

  Management fees - General Partner

     94

    132

  General and administrative

     26

     19

  Legal and accounting

     84

    107

Tax expense

    165

    120

  Interest

      8

     49

Total operating expenses

    377

    427

 

 

 

Loss from partnership operations

    (377)

    (427)

Advances to Local Limited Partnerships recognized as

 

 

expense

     (18)

     --

Recovery of advances to Local Limited Partnerships

 

 

  previously recognized as expense

    196

     37

Distributions from Local Limited Partnerships

 

 

  recognized as income

    212

     60

Equity in income of Local Limited Partnership and

 

 

  amortization of acquisition costs

    391

    224

Gain on sale of interests in Local Limited Partnerships

     --

    401

Gain on extinguishment of debt

  1,891

     --

Net income

$ 2,295

$   295

 

 

 

Net income allocated to general partners (1%)

$    23

$     3

Net income allocated to limited partners (99%)

$ 2,272

$   292

 

 

 

Net income per limited partnership interest

$136.57

$ 17.53

 

 

 

 

 

 

See Accompanying Notes to Consolidated Financial Statements

 

 



REAL ESTATE ASSOCIATES LIMITED VI

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

 

 

 

 

Years Ended December 31,

 

2012

2011

Cash flows from operating activities:

 

 

  Net income

 $ 2,295

 $   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

    (212)

      --

Advances to Local Limited Partnerships recognized

 

 

  as expense

   4

   --

Gain on sale of interests in Local Limited

 

 

  Partnerships

  --

  (401)

Recovery of advances to Local Limited Partnerships

 

 

  previously recognized as expense

    (196)

     (37)

Equity in income of Local Limited Partnership and

 

 

  amortization of acquisition costs

    (391)

    (224)

      Change in accounts:

 

 

Receivables – limited partners

    (117)

     (13)

        Accounts payable and accrued expenses

      87

      (1)

        Accrued interest payable

       8

      49

Taxes payable

      30

      14

Net cash used in operating activities

    (383)

    (318)

 

 

 

Cash flows from investing activities:

 

 

  Distributions from sale of Local Limited Partnership

 

 

    properties

     212

      --

  Proceeds from sale of interests in Local Limited

 

 

    Partnerships

      --

     401

  Advances to Local Limited Partnerships

      (4)

      --

  Recovery of advances to Local Limited Partnerships

     196

      37

Net cash provided by investing activities

     404

     438

 

 

 

Net increase in cash and cash equivalents

      21

     120

Cash and cash equivalents, beginning of the year

   1,452

   1,332

Cash and cash equivalents, end of the year

 $ 1,473

 $ 1,452

 

 

 

See Accompanying Notes to Consolidated Financial Statements

 

 

 


                          REAL ESTATE ASSOCIATES LIMITED VI

 

                     NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

                                  DECEMBER 31, 2012

 

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, 2012 and 2011.

 

 Basis of Presentation

 

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States.

 

The Partnership’s management evaluated subsequent events through the time this Annual Report on Form 10-K was filed.

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of REAL VI and its majority-owned general partnership Real Estate Associates III (“REA III”). All significant intercompany accounts and transactions have been eliminated in consolidation. Losses in excess of the minority interest in equity that would otherwise be attributed to the minority interest are being allocated to the Partnership.

 

Use of Estimates

 

The preparation of consolidated 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 consolidated 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, 2012 and 2011, the number of Limited Partnership Interests decreased by 68 and 24 interests, respectively, due to limited partners abandoning their interests. At December 31, 2012 and 2011, there were 16,568 and 16,636 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 16,636 and 16,660 for the years ended December 31, 2012 and 2011, 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 balances at December 31, 2012 and 2011 are maintained by an affiliated management company on behalf of affiliated entities in a cash concentration account.

 

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, 2012 or 2011.

 

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, 2012, 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, 2012 and 2011, the Partnership holds variable interests in 5 and 9 VIEs, respectively, for which the Partnership is 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 5 VIEs at December 31, 2012 consist of Local Limited Partnerships that are directly engaged in the ownership and management of 5 apartment properties with a total of 311 units.  The Partnership is involved with those VIEs as a non-controlling limited partner equity holder. The Partnership’s maximum exposure to loss as a result of its involvement with the unconsolidated VIEs is limited to the Partnership’s recorded investments in and receivables from these VIEs, which were approximately $899,000 and $508,000 at December 31, 2012 and 2011, 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 ADVANCES TO LOCAL LIMITED PARTNERSHIPS

 

As of December 31, 2012 and 2011, the Partnership holds limited partnership interests in 5 and 8 Local Limited Partnerships, respectively. In addition, the Partnership holds a majority-owned general partner interest in REA III, which, in turn, held a limited partnership interest in 1 additional Local Limited Partnership, Cassady Village, at December 31, 2011. In total, therefore, the Partnership holds interests, either directly or indirectly through REA III, in 5 and 9 Local Limited Partnerships, which owned, as of December 31, 2012 and 2011, respectively, residential low-income rental projects consisting of 311 and 533 apartment units, respectively. Certain of the Local Limited Partnerships are encumbered by mortgage notes payable to or insured by various governmental agencies.

 

The Partnership, as a limited partner, does not have a contractual relationship with the Local Limited Partnerships or exercise control over the activities and operations, including refinancing or selling decisions, of the Local Limited Partnerships that would require or allow for consolidation. Accordingly, the Partnership accounts for its investments in the Local Limited Partnerships using the equity method. The Partnership is allocated profits and losses of the Local Limited Partnerships based upon its respective ownership percentages between 90% and 99%. Distributions of surplus cash from operations from most of the Local Limited Partnerships are restricted by the Local Limited Partnerships’ Regulatory Agreements with the United States Department of Housing and Urban Development (“HUD”). These restrictions limit the distribution to a portion, generally less than 10% of the initial invested capital. The excess surplus cash is deposited into a residual receipts reserve, of which the ultimate realization by the Partnership is uncertain as HUD frequently retains it upon sale or dissolution of the Local Limited Partnership. The Partnership is allocated profits and losses and receives distributions from refinancings and sales in accordance with the Local Limited Partnerships’ partnership agreements. These agreements usually limit the Partnership’s distributions to an amount substantially less than its ownership percentage in the Local Limited Partnership. 

 

The individual investments are carried at cost plus the Partnership’s share of the Local Limited Partnership’s profits less the Partnership’s share of the Local Limited Partnership’s losses, distributions and impairment charges. The Partnership is not legally liable for the obligations of the Local Limited Partnerships and is not otherwise committed to provide additional support to them. Therefore, it does not recognize losses once its investment in each of the Local Limited Partnerships reaches zero. Distributions from the Local Limited Partnerships are accounted for as a reduction of the investment balance until the investment balance is reduced to zero. When the investment balance has been reduced to zero, subsequent distributions received are recognized as income in the accompanying consolidated statements of operations. Operating distributions of approximately $60,000 were received from three Local Limited Partnerships during the year ended December 31, 2011. 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 consolidated statements of operations. The Partnership had no investment balance remaining in Marshall Plaza Apartments I and II as of the date of sale and December 31, 2011.

 

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 and December 31, 2011.

 

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 and December 31, 2011.

 

In May 2011, the Partnership assigned its limited partnership interests in Grant-Ko Enterprises, New Bel-Mo and Sauk-Ko Enterprises to affiliates of the Local Operating General Partners of the Local Limited Partnerships for approximately $362,000. The proceeds received of approximately $339,000, net of Wisconsin withholding tax of approximately $23,000, were recorded as a gain on sale of interests in Local Limited Partnerships, as the Partnership’s investment balance in all three Local Limited Partnerships was zero at the date of assignment.

 

In August 2011, the Partnership assigned its limited partnership interest in Orocovix Limited Dividend Partnership to an affiliate of the Local Operating General Partner of the Local Limited Partnership for approximately $12,000. The proceeds received were recorded as a gain on sale of interest in Local Limited Partnership for the year ended December 31, 2011, as the Partnership’s investment balance in the Local Limited Partnership was zero at the date of assignment.

 

In August 2011, the Partnership assigned its limited partnership interest in Valley Oaks Senior Housing Associates to an affiliate of the Local Operating General Partner of the Local Limited Partnership for $50,000. The proceeds received were recorded as a gain on sale of interest in Local Limited Partnership for the year ended December 31, 2011, as the Partnership’s investment balance in the Local Limited Partnership was zero at the date of assignment.

 

Crockett Manor has entered into a purchase and sale contract to sell its investment property to a third party for a sale price that exceeds the balance of the mortgage encumbering the property by $75,000. After payment of closing costs and the mortgage encumbering the property, the Partnership does not expect to receive any proceeds from the sale of Crockett Manor. The transaction is expected to close during 2013. The Partnership had no investment balance remaining in Crockett Manor as of December 31, 2012 and 2011.

 

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, 2012 and 2011, 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, 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. There were no advances from the Partnership to the Local Limited Partnerships during the year ended December 31, 2011. During the years ended December 31, 2012 and 2011, the Partnership received repayment of advances of approximately $196,000 from Oakwood Manor and approximately $37,000 from Crockett Manor, respectively. The repayments of advances were recognized as income on the consolidated statements of operations.

 

 

 

The following is a summary of the investments in Local Limited Partnerships for the years ended December 31, 2012 and 2011 (in thousands):

 

2012

2011

 

 

 

Balance, beginning of year

 $   508

$   284

Equity in income of Local Limited Partnership

     400

    233

Amortization of acquisition costs

      (9)

     (9)

Balance, end of year

 $   899

$   508

 

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, 2012 and 2011 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 consolidated financial position and amounts included below for the Material Investee are included on an audited basis.

 

The condensed combined results of operations for the years ended December 31, 2012 and 2011 exclude the assets, liabilities, and operations of Grant-Ko Enterprises, New Bel-Mo and Sauk-Ko Enterprises, due to the assignment of the Partnership’s interest in these Local Limited Partnerships in May 2011, Villas de Orocovix and Valley Oaks, due to the assignment of the Partnership’s interest in these Local Limited Partnerships in August 2011, Kentucky Manor, for which no financial information is available, 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)

 

 

 

 

December 31, 2012

December 31, 2011

 

Material Investee

Unaudited

Total

Material Investee

Unaudited

Total

Assets

 

 

 

 

 

 

  Land

$  337

$   239

$   576

$  337

$   239

$    576

  Building and improvements

 8,128

  4,983

 13,111

 8,106

  4,944

  13,050

  Accumulated depreciation

 (5,859)

 (4,753)

 (10,612)

 (5,635)

  (4,677)

 (10,312)

  Other assets

 1,570

    926

  2,496

 1,661

    981

   2,642

 

 

 

 

 

 

 

Total assets

$4,176

$ 1,395

$ 5,571

$4,469

$ 1,487

 $ 5,956

 

 

 

 

 

 

 

Liabilities and Partners’  Equity (Deficit):

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

  Mortgage notes payable

$  916

$ 3,687

$ 4,603

$1,497

$ 3,722

 $ 5,219

Other liabilities

   109

    613

    722

    99

    591

     690

Partners’ equity (deficit)

 3,151

 (2,905)

    246

 2,873

  (2,826)

      47

 

 

 

 

 

 

 

Total liabilities and partner’s equity (deficit)

$4,176

$ 1,395

$ 5,571

$4,469

$ 1,487

 $ 5,956

 

 

 

Condensed Combined Results of Operations of the Local Limited Partnerships

(in thousands)

 

 

 

Years Ended December 31,

 

2012

2012

2012

2011

2011

2011

 

Material Investee

Unaudited

Total

Material Investee

Unaudited

Total

Revenues:

 

 

 

 

 

 

  Rental and other

 $ 1,625

 $   964

 $ 2,589

 $ 1,482

 $ 1,008

$ 2,490

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

  Operating expenses

     794

     733

   1,527

     786

     630

  1,416

  Financial expenses

     148

     227

     375

     200

     220

    420

  Depreciation and amortization

     238

      82

     320

     237

      81

    318

    Total expenses

   1,180

   1,042

   2,222

   1,223

     931

  2,154

 

 

 

 

 

 

 

Income (loss) from continuing operations

$   445

$   (78)

 $   367

$   259

 $    77

 $   336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 2012

 

Description

Encumbrances

Land

Buildings and Related Personal Property

Total

Accumulated Depreciation

Date of Construction

Crockett Manor

 $   978

 $   87

$ 1,412

 $ 1,499

    $ 1,378

(A)

Hummelstown Manor

   1,614

     97

  1,832

   1,929

      1,800

1983

Kentucky Manor (B)

      --

     --

     --

      --

         --

(A)

Oakridge Park II

   1,095

     55

  1,739

   1,794

      1,575

(A)

Park Place

     916

    337

  8,128

   8,465

      5,859

1983-1984

Total

 $ 4,603

 $  576

$13,111

 $13,687

    $10,612

 

 

 

 

 

 

 

 

(A)   This project was completed when REAL VI invested in the Local Limited Partnership.

(B)   Financial information is unavailable for 2012.

 

 

 

Reconciliation of real estate (all amounts unaudited except for those amounts related to the Material Investee) (in thousands):

 

 

Years Ended December 31,

 

2012

2012

2012

2011

2011

2011

 

Material Investee

Unaudited

Total

Material Investee

Unaudited

Total

Real estate:

 

 

 

 

 

 

Balance at beginning of year

$ 8,443

$ 6,166

$14,609

$ 8,409

$  6,129

$ 14,538

 Property improvements

     22

     39

     61

     34

      37

      71

 Disposal of property

     --

    (983)

    (983)

     --

     --

     --

Balance at end of year

$ 8,465

$ 5,222

$13,687

$ 8,443

$  6,166

$ 14,609

 

 

 

Reconciliation of accumulated depreciation (all amounts unaudited except for those amounts related to the Material Investee) (in thousands):

 

Years Ended December 31,

 

2012

2012

2012

2011

2011

2011

 

Material Investee

Unaudited

Total

Material Investee

Unaudited

Total

Accumulated depreciation:

 

 

 

 

 

 

Balance at beginning of year

$ 5,635

$ 5,316

$ 10,951

$ 5,412

$ 5,216

$ 10,628

 Depreciation expense

    224

     76

     300

    223

    100

     323

 Disposal of property

   --

    (639)

    (639)

    --

    --

     --

Balance at end of year

$ 5,859

$ 4,753

$ 10,612

$ 5,635

$ 5,316

$ 10,951

 

The difference between the investment in the accompanying consolidated balance sheets at December 31, 2012 and 2011 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 AMOUNTS DUE FOR PARTNERSHIP INTERESTS

 

The Partnership was obligated on non-recourse notes payable of $520,000, which bore interest at 9.5 percent per annum and had principal maturities of December 1999. The notes and related interest were payable from cash flow generated from operations of the related rental property as defined in the notes. Unpaid interest was due at maturity of the notes. Interest expense on non-recourse notes payable was approximately $8,000 and $49,000 for the years ended December 31, 2012 and 2011, respectively. The notes payable and related accrued interest aggregating approximately $1,883,000 at December 31, 2011 relating to Cassady Village Apartments, Ltd. (“Cassady Village”) became payable prior to December 31, 2011. During 2005, the Partnership entered into an agreement with the non-recourse note holder for Cassady Village pursuant to which the noteholder agreed to forebear taking any action under the note pending the purchase by the noteholder of a series of projects, including the properties owned by the Local Limited Partnerships Cassady Village and Marshall Plaza I & II Apartments. As discussed in “Note 2”, these Local Limited Partnerships sold their respective investment properties to the note holder during the year ended December 31, 2012. 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 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 $94,000 and $132,000 for the years ended December 31, 2012 and 2011, 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, 2012.  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 10.62% of the outstanding limited partnership interests in the Partnership as of December 31, 2012.  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

 

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,

 

2012

2011

 

(in thousands)

 

 

 

Net income per financial statements

$ 2,295

 $   295

Accrued interest

    --

      49

Gain on sale and extinguishment of debt

  (2,476)

   3,670

Other

     (40)

      17

  Partnership’s share of Local Limited Partnership

    (379)

   1,257

Net income (loss) per tax return

 $  (600)

$  5,288

 

 

 

Taxable income (loss) per limited partnership interest

 $   (70.69)

$ 588.86

 

 

 

 

The following is a reconciliation between the Partnership’s reported amounts and the Federal tax basis of net assets (in thousands):

 

December 31,

 

2012

2011

 

 

 

Net assets as reported

$  2,456

 $    161

Add (deduct):

 

 

Deferred offering costs

   4,976

    4,976

Investment in Local Limited Partnerships

   (6,262)

   (3,820)

Accrued interest

      --

    1,198

Other

      291

     (454)

Net equity – Federal tax basis

 $  1,461

 $  2,061

 

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, 2012 and 2011 the expense of approximately $165,000 and $120,000, respectively, related to this tax is reflected in tax expense in the accompanying consolidated statements of operations.

 

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.

 

 

 


ITEM 9.     CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

 

ITEM 9A.    CONTROLS AND PROCEDURES

 

(a)   Disclosure Controls and Procedures

 

The Partnership’s management, with the participation of the Senior Managing Director and Director of Reporting of Bethesda, 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 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 Senior Managing Director and Director of Reporting of Bethesda, 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. 

 

Management’s Report on Internal Control Over Financial Reporting

 

The Partnership’s management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act as a process designed by, or under the supervision of, the Senior Managing Director and Director of Reporting, who are the equivalent of the Partnership’s principal executive officer and principal financial officer, respectively, and effected by the Partnership’s management and other personnel, including third-party public accountants engaged by Bethesda to provide such services, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

 

·        pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of assets;

 

·        provide reasonable assurance that transactions are recorded as necessary to permit preparation of consolidated financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of the Partnership’s management; and

 

·        provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the consolidated financial statements.

 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

The Partnership’s management assessed the effectiveness of the Partnership’s internal control over financial reporting as of December 31, 2012.  In making this assessment, the Partnership’s management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework.

 

Based on their assessment, the Partnership’s management concluded that, as of December 31, 2012, the Partnership’s internal control over financial reporting is effective.


 

This annual report does not include an attestation report of the Partnership’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Partnership’s registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Partnership to provide only management’s report in this annual report.

 

(b)   Changes in Internal Control Over Financial Reporting.

 

There has been no change in the Partnership’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fourth quarter of 2012 that has materially affected, or is reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

 

ITEM 9B.    OTHER INFORMATION

 

None.

 

 

 


PART III

 

ITEM 10.    DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 

Real Estate Associates Limited VI (the “Partnership” or the “Registrant”) has no directors or officers. The general partner responsible for conducting the business of the Partnership is National Partnership Investments, LLC, a California limited liability company (“NAPICO” or the “General Partner”). 

 

The names and ages of, as well as the positions and offices held by, the present officers of NAPICO are set forth below.  The General Partner manages and controls substantially all of the Partnership’s affairs and has general responsibility and ultimate authority in all matters affecting its business.   There are no family relationships between or among any officers.

 

Name

Age

Position

Brian Flaherty

44

Senior Managing Director

Edward Schmidt

28

Director of Reporting

 

Brian Flaherty is the Senior Managing Director of the General Partner and Bethesda Holdings II, LLC and has served as the equivalent of the chief executive officer of the Partnership since December 19, 2012.  In February 2012, Mr. Flaherty was appointed to Senior Managing Director with McGrath Investment Management, LLC with responsibilities for asset management and transactions.  Previously, Mr. Flaherty served in various positions at Aimco, which he joined in 2002, most recently serving as Senior Vice President with responsibilities for asset management and transactions, from January 2009 to February 2012, and in various acquisition, asset management, and disposition functions within Aimco covering both conventional and affordable portfolios from 2002 through 2012.  Prior to joining Aimco, Mr. Flaherty was Vice President of Acquisitions for NAPICO, responsible for originating, structuring, and underwriting equity investments in multi-family Low Income Housing Tax Credit Projects.

 

Edward Schmidt is the Director of Reporting of the General Partner and Bethesda Holdings II, LLC, and has served as the equivalent of the chief financial officer of the Partnership since February 28, 2013.  Since February 2012, Mr. Schmidt has worked with McGrath Investment Management, LLC, most recently as a Director with responsibilities for fund management and investor reporting.  From 2010 through 2012, Mr. Schmidt served as a senior analyst for Aimco, a public reporting real estate investment trust, working in various management capacities, including within the finance function, the transaction finance and analytics department and the fund management department, which handled the internal investor reporting for Aimco.  Prior to that, Mr. Schmidt worked in public accounting with Clifton Gunderson, LLP, now known as Clifton Larson Allen, LLP, where he served as a financial accountant for Special District Services, local government consultant, and, from 2008 to 2010, as auditor for the California State Revolving Fund.  Mr. Schmidt received a Bachelor of Science Degree with a double concentration in Finance and Accounting from Colorado State University.

 

The Registrant is not aware of the involvement in any legal proceedings with respect to the executive officers listed in this Item 10.

 

The General Partner does not have a separate audit committee. As such, the officers of the General Partner fulfill the functions of an audit committee. The General Partner has determined that Edward Schmidt meets the requirement of an "audit committee financial expert".

 

The Partnership has adopted a code of ethics that is attached hereto as Exhibit 14.

 

ITEM 11.    EXECUTIVE COMPENSATION

 

None of the officers of the General Partner received any remuneration from the Partnership during the year ended December 31, 2012.

 

Item 12.    Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 

(a)   The general partners own all of the outstanding general partnership interests of the Partnership.  Except as noted below, no person or entity was known by the Partnership to own of record or beneficially more than 5% of the Limited Partnership Interests of the Partnership as of December 31, 2012.

 

Name of Beneficial Owner

Number of Interests

% of Class

 

 

 

Bethesda Holdings III

1,759

10.62%

 

The business address of Bethesda Holdings III is 4582 S. Ulster St. Parkway, Suite 1100, Denver, Colorado 80237.

 

(b)   None of the officers of the General Partner own directly or beneficially any limited partnership interests in the Partnership.

 

ITEM 13.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

 

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 $94,000 and $132,000 for the years ended December 31, 2012 and 2011, 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, 2012. 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 10.62% of the outstanding limited partnership interests in the Partnership as of December 31, 2012.  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.

 

The General Partner has no directors.

 

ITEM 14.    PRINCIPAL ACCOUNTING FEES AND SERVICES

 

The General Partner has reappointed Ernst & Young LLP as independent auditors to audit the consolidated financial statements of the Partnership for 2013. The aggregate fees billed for services rendered by Ernst & Young LLP for 2012 and 2011 are described below.

 

Audit Fees.  Fees for audit services totaled approximately $38,000 and $34,000 for 2012 and 2011, respectively.  Fees for audit services also include fees for the reviews of the Partnership's Quarterly Reports on Form 10-Q.

 

Tax Fees.  Fees for tax services totaled approximately $28,000 for both 2012 and 2011.

 

 

 


PART IV

 

 

ITEM 15.    EXHIBITS, FINANCIAL STATEMENT SCHEDULES

 

(a)     The following financial statements are included in Item 8:

 

Consolidated Balance Sheets – December 31, 2012 and 2011.

 

Consolidated Statements of Operations - Years ended December 31, 2012 and 2011.

 

Consolidated Statements of Changes in Partners' Capital (Deficiency) - Years ended December 31, 2012 and 2011.

 

Consolidated Statements of Cash Flows - Years ended December 31, 2012 and 2011.

 

   Notes to Consolidated Financial Statements.

 

Schedules are omitted for the reason that they are inapplicable or equivalent information has been included elsewhere herein.

 

(b)     Exhibits:

 

See Exhibit index.

 

The agreements included as exhibits to this Form 10-K contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties have been made solely for the benefit of the other parties to the applicable agreement and:

 

  • should not in all instances be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate;

 

  • have been qualified by disclosures that were made to the other party in connection with the negotiation of the applicable agreement, which disclosures are not necessarily reflected in the agreement;

 

  • may apply standards of materiality in a way that is different from what may be viewed as material to an investor; and

 

  • were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement and are subject to more recent developments.

 

Accordingly, these representations and warranties may not describe the actual state of affairs as of the date they were made or at any other time. The Partnership acknowledges that, notwithstanding the inclusion of the foregoing cautionary statements, it is responsible for considering whether additional specific disclosures of material information regarding material contractual provisions are required to make the statements in this Form 10-K not misleading. Additional information about the Partnership may be found elsewhere in this Form 10-K and the Partnership’s other public filings, which are available without charge through the SEC’s website at http://www.sec.gov. 

 


SIGNATURES

 

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934 the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

REAL ESTATE ASSOCIATES LIMITED VI

 

 

 

By:   National Partnership Investments, LLC

 

      General Partner

 

 

Date:  April 12, 2013

By:   /s/Brian Flaherty

 

      Brian Flaherty

 

      Senior Managing Director

 

 

Date:  April 12, 2013

By:   /s/Edward Schmidt

 

      Edward Schmidt

 

      Director of Reporting

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

/s/Brian Flaherty

Chief Executive Officer

Date: April 12, 2013

Brian Flaherty

 

 

 

 

 

/s/Edward Schmidt

Chief Accounting Officer

Date: April 12, 2013

Edward Schmidt

 

 

 

 

 


                          REAL ESTATE ASSOCIATES LIMITED VI

                                    EXHIBIT INDEX

 

 

Exhibit     Description of Exhibit

 

3          Articles of incorporation and bylaws: The registrant is not incorporated. The Partnership Agreement was filed with Form S-11 #2-82090 which is hereby incorporated by reference.

 

3.1        Amendment to the Restated Certificate and Agreement of Limited Partnership of Real Estate Associates Limited VI, filed with the Partnership’s Current Report on Form 8-K dated December 29, 2004, which is hereby incorporated by reference.

 

10.5       Assignment Agreement by and between Real Estate Associates Limited VI, a California limited partnership, Linda Kittleson, and Duane Kittleson and Richard C. Adams, dated May 19, 2011, incorporated by reference to the Partnership’s Current Report on Form 8-K dated May 19, 2011.

 

10.6       Assignment Agreement by and between Real Estate Associates Limited VI, a California limited partnership, Linda Kittleson and Duane Kittleson, dated May 19, 2011, incorporated by reference to the Partnership’s Current Report on Form 8-K dated May 19, 2011.

 

10.7       Assignment Agreement by and between Real Estate Associates Limited VI, a California limited partnership, Linda Kittleson and Duane Kittleson, dated May 19, 2011, incorporated by reference to the Partnership’s Current Report on Form 8-K dated May 19, 2011.

 

10.8       Assignment and Assumption of Limited Partner Interest and First Amendment to the First Amended and Restated Agreement and Certificate of Limited Partnership by and between Real Estate Associates Limited VI, a California limited partnership, Alvarez Bracero LP, LLC, a Delaware limited liability company, Bucare Development Corporation, a Puerto Rico corporation, and Bahia Guayanilla Corporation, a Puerto Rico Corporation, dated August 16, 2011, incorporated by reference to the Partnership’s Current Report on Form 8-K dated August 16, 2011.

 

10.9       First Amendment to Agreement and Certificate of Limited Partnership of Valley Oaks Senior Housing Associates by and between Real Estate Associates Limited VI, a California limited partnership, and Patrick R. Sabelhaus and Kristen Otto, dated August 22, 2011, incorporated by reference to the Partnership’s Current Report on Form 8-K dated August 22, 2011.

 

14         Code of Ethics of Real Estate Associates Limited VI.

 

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 the 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.

 

101        XBRL (Extensible Business Reporting Language). The following materials from Real Estate Associates Limited VI’s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, formatted in XBRL: (i) consolidated balance sheets, (ii) consolidated statements of operations, (iii) consolidated statement of changes in partners’ capital (deficiency), (iv) consolidated statements of cash flows, and (v) notes to consolidated financial statements (1).

 

(1)        As provided in Rule 406T of Regulation S-T, this information is furnished and not filed for purposes of Sections 11 and 12 of the Securities Act of 1933 and Section 18 of the Securities Exchange Act of 1934.

 

EX-14 2 real6_ex14.htm EXHIBIT 14

Exhibit 14

 

 

REAL ESTATE ASSOCIATES LIMITED VI

CODE OF BUSINESS CONDUCT AND ETHICS

Introduction

This code of business conduct and ethics (this “Code”) has been adopted by Real Estate Associates Limited VI, on behalf of itself (collectively, the “Company”) pursuant to Item 406 of Regulation S-K (“Regulation S-K”) of the Securities and Exchange Commission (“SEC”), referred to herein as the “Applicable Rules,” in order to provide written standards and guidance to the Company’s directors, officers and employees (collectively, the “Covered Persons”) and covers a wide range of business practices and procedures. While it does not cover every issue that may arise, it sets out basic principles to guide the way Covered Persons conduct the Company’s business. All Covered Persons must conduct themselves accordingly and seek to avoid even the appearance of improper behavior.

 

The Company is committed to maintaining the highest standards of business conduct and ethics. This Code reflects the business practices and principles of behavior that support this commitment. We expect every Covered Person to read and understand this Code and its application to the performance of your business responsibilities.

 

Officers, managers and other supervisors are expected to develop in employees a sense of commitment to the spirit, as well as the letter, of this Code. Supervisors are also expected to use best efforts to ensure that all agents and contractors conform to Code standards when working for or on behalf of the Company. The compliance environment within each supervisor’s assigned area of responsibility will be a significant factor in evaluating the quality of that individual’s performance. In addition, any Covered Person who makes an exemplary effort to implement and uphold the Company’s legal and ethical standards will be recognized for that effort in their performance review. Nothing in this Code alters the employment at-will policy of the Company applicable to employees.

This Code cannot possibly describe every practice or principle related to honest and ethical conduct. This Code addresses conduct that is particularly important to proper dealings with the people and entities with which we interact on behalf of the Company, but reflects only a part of our commitment. The Company’s employee handbook contains additional policies of the Company that supplement or amplify this Code in certain areas and should be read in conjunction with this Code.

Action by members of your immediate family, significant others or other persons who live in your household also may potentially result in ethical issues to the extent that they involve Companybusiness. For example, acceptance of inappropriate gifts by a family member from one of the Company’s suppliers could create a conflict of interest and result in a Code violation attributable to you. Consequently, in complying with this Code, you should consider not only your own conduct, but also that of your immediate family members, significant others and other persons who live in your household.

The integrity and reputation of the Company depends on the honesty, fairness and integrity brought to the job by each person associated with us. It is the responsibility of each Covered Person to apply common sense, together with their own highest personal ethical standards, in making business decisions where there is no stated guideline in this Code. Unyielding personal integrity is the foundation of corporate integrity.

You should not hesitate to ask questions about whether any conduct may violate this Code, voice concerns or clarify ambiguous areas. Section 14 below details the compliance resources available to you. In addition, you should be alert to potential violations of this Code by others and report suspected violations, without fear of any form of retaliation, as further described in Section 14. Violations of this Code will not be tolerated. Any Covered Person who violates the standards in this Code may be subject to disciplinary action, up to and including termination of employment and, in appropriate cases, civil legal action or referral for criminal prosecution.

1.                Legal Compliance

Obeying the law, both in letter and in spirit, is the foundation of this Code. Our success depends upon each employee operating within legal guidelines and cooperating with local, national and international authorities. It is therefore essential that you understand the legal and regulatory requirements applicable to your business unit and area of responsibility. We will hold periodic training sessions to ensure that all Covered Persons understand the relevant laws, rules and regulations associated with their employment, including laws prohibiting insider trading (which are discussed in further detail in Section 2 below). While we do not expect you to memorize every detail of these laws, rules and regulations, we want you to be able to determine when to seek advice from others. If you do have a question in the area of legal compliance, it is important that you not hesitate to seek answers from your supervisor or the Company’s legal counsel.

Disregard of the law will not be tolerated. Violation of domestic or foreign laws, rules and regulations may subject an individual, as well as the Company, to civil and/or criminal penalties. You should be aware that conduct and records, including emails, are subject to internal and external audits, and to discovery by third parties in the event of a government investigation or civil litigation. It is in everyone’s best interests to know and comply with our legal and ethical obligations.

2.                Insider Trading

Covered Persons who have access to confidential (or “inside”) information of the Company are not permitted to use or share that information for trading purposes or for any other purpose except to conduct our business. All non-public information about the Company or about companies with which we do business is considered confidential information of the Company. To use material non-public information in connection with buying or selling securities, including “tipping” others who might make an investment decision on the basis of this information, is not only unethical, it is illegal. Covered Persons must exercise the utmost care when handling material inside information.

3.                Environment Compliance

Federal law imposes criminal liability on any person or company that contaminates the environment with any hazardous substance that could cause injury to the community or environment. Violation of environmental laws can be a criminal offense and can involve monetary fines and imprisonment. We expect Covered Persons to comply with all applicable environmental laws.

It is our policy to conduct our business in an environmentally responsible way that minimizes environmental impacts. We are committed to minimizing and, if possible, eliminating the use of any substance or material that may cause environmental damage, reducing waste generation and disposing of all waste through safe and responsible methods, minimizing environmental risks by employing safe technologies and operating procedures, and being prepared to respond appropriately to accidents and emergencies.

4.                Conflicts of Interest

A “conflict of interest” occurs when an individual’s personal interest (or the interest of a member of his or her family) may interfere in any way with the performance of his or her duties or the interests of the Company as a whole. A conflict of interest can arise when a Covered Person (or a member of his or her family) takes actions or has interests that may make it difficult to perform his or her work for the Company objectively and effectively. Conflicts of interest also arise when a Covered Person (or a member of his or her family) receives improper personal benefits as a result of his or her position in the Company. We expect our employees, officers and directors to be free from influences that conflict with the interests of the Company. Even the appearance of a conflict of interest where none actually exists can be damaging and should be avoided. Whether or not a conflict of interest exists or will exist can be unclear.

If you have any questions about a potential conflict or if you become aware of an actual or potential conflict and you are not an officer or director of the Company, you should discuss the matter with your supervisor or the Company’s legal counsel. Conflicts of interest are prohibited unless specifically approved by authorized persons. Supervisors are not authorized to approve a conflict of interest without first seeking the approval of the Company’s legal counsel and filing with the Company’s legal counsel a written description of the approved activity. If your supervisor is involved in the potential or actual conflict, initially, you should discuss the matter directly with the Company’s legal counsel. Officers and directors may seek authorization from individuals serving in roles functioning as the principal executive officer (the “PEO”) or the principal financial officer (the “PFO”) of the Company. Factors that may be considered in evaluating a potential conflict of interest are, among others:

·        whether it may interfere with the Covered Person’s job performance, responsibilities or morale;

·        whether the Covered Person has access to confidential information;

·        whether it may interfere with the job performance, responsibilities or morale of others within the organization;

·        any potential adverse or beneficial impact on our business;

·        any potential adverse or beneficial impact on our relationships with our customers or suppliers or other service providers;

·        whether it would enhance or support a competitor’s position;

·        the extent to which it would result in financial or other benefit (direct or indirect) to the Covered Person;

·        the extent to which it would result in financial or other benefit (direct or indirect) to one of our customers, suppliers or other service providers; and

·        the extent to which it would appear improper to an outside observer.

The following are examples of situations that may, depending on the facts and circumstances, involve conflicts of interests:

·        Employment by (including consulting for) or service on the board of a competitor, customer or supplier or other service provider.  Activity that enhances or supports the position of a competitor to the detriment of the Company is prohibited, including employment by or service on the board of a competitor. Employment by or service on the board of a customer or supplier or other service provider is generally discouraged and you must seek authorization in advance if you plan to take such action.

·        Lending to, borrowing from or having a material interest (equity or otherwise) in any entity that does business, seeks to do business or competes with us. In addition to the factors described above, persons evaluating ownership for conflicts of interest will consider the size and nature of the investment; the nature of the relationship between the other entity and the Company; the Covered Person’s access to confidential information and the Covered Person’s ability to influence the Company’s decisions. If you would like to acquire a financial interest of that kind, you must seek approval in advance.

·        Soliciting or accepting gifts, favors, loans or preferential treatment from any person or entity that does business or seeks to do business with us. See Section 8 for further discussion of the issues involved in this type of conflict.

·        Soliciting contributions to any charity or for any political candidate from any person or entity that does business or seeks to do business with us.

·        Taking personal advantage of corporate opportunities. See Section 5 for further discussion of the issues involved in this type of conflict.

·        Moonlighting without permission.

·        Conducting our business transactions with your family member, significant other or person who shares your household or a business in which you have a significant financial interest. Material related-party transactions approved by the Audit Committee and involving any executive officer or director will be publicly disclosed as required by applicable laws and regulations.

·        Accepting compensation (in any form) for services performed for the Company from any source other than the Company.

Loans to, or guarantees of obligations of, Covered Persons or their Family Members by the Company could constitute an improper personal benefit to the recipients of these loans or guarantees, depending on the facts and circumstances. Some loans are expressly prohibited by law and applicable law requires that our Board of Directors approve all loans and guarantees to Covered Persons. As a result, all loans and guarantees by the Company must be approved in advance by the Audit Committee.

5.                Corporate Opportunities

You may not take personal advantage of opportunities that are presented to you or discovered by you as a result of your position with us or through your use of corporate property or information, unless authorized by the PEO, the PFO or the Company’s legal counsel. Even opportunities that are acquired privately by you may be questionable if they are related to the Company’s existing or proposed lines of business. You cannot use your position with us or corporate property or information for improper personal gain. Unless otherwise set forth in any agreement between you and the Company or otherwise approved by the PEO, the PFO or the Company’s legal counsel, you may not compete with us in any way during the term of your engagement with the Company.

6.                Maintenance of Corporate Books, Records, Documents and Accounts; Financial Integrity; Public Reporting

The integrity of our records and public disclosure depends on the validity, accuracy and completeness of the information supporting the entries to our books of account. Therefore, our corporate and business records should be completed accurately and honestly. The making of false or misleading entries, whether they relate to financial results or test results, is strictly prohibited. Our records serve as a basis for managing our business and are important in meeting our obligations to customers, suppliers, creditors, employees and others with whom we do business. As a result, it is important that our books, records and accounts accurately and fairly reflect, in reasonable detail, our assets, liabilities, revenues, costs and expenses, as well as all transactions and changes in assets and liabilities.

Our accounting records are also relied upon to produce reports for our management, unitholders and creditors, as well as for governmental agencies. In particular, we rely upon our accounting and other business and corporate records in preparing the periodic and current reports that we file with the SEC. These reports must provide full, fair, accurate, timely and understandable disclosure and fairly present our financial condition and results of operations. Covered Persons who collect, provide or analyze information for or otherwise contribute in any way in preparing or verifying these reports should strive to ensure that our financial disclosure is accurate and transparent and that our reports contain all of the information about the Company that would be important to enable unitholders and potential investors to assess the soundness and risks of our business and finances and the quality and integrity of our accounting and disclosures. In addition:

·        no Covered Person may take or authorize any action that would cause our financial records or financial disclosure to fail to comply with generally accepted accounting principles, the rules and regulations of the SEC or other applicable laws, rules and regulations;

·        all Covered Persons must cooperate fully with our independent public accountants and counsel, respond to their questions with candor and provide them with complete and accurate information to help ensure that our books and records, as well as our reports filed with the SEC, are accurate and complete; and

·        no Covered Person should knowingly make (or cause or encourage any other person to make) any false or misleading statement in any of our reports filed with the SEC or knowingly omit (or cause or encourage any other person to omit) any information necessary to make the disclosure in any of our reports accurate in all material respects.

Any Covered Person who becomes aware of any departure from these standards has a responsibility to report his or her knowledge promptly to a supervisor or one of the other compliance resources described in Section 14. In addition, each Covered Person must promptly bring to the attention of the PEO, the PFO or the Company’s legal counsel any information that the Covered Person may have concerning (a) significant deficiencies in the design or operation of internal control over financial reporting that could adversely affect the Company’s ability to record, process, summarize and report financial data or (b) any fraud, whether or not material, that involves management, directors, or other Covered Persons who have a significant role in the Company’s financial reporting, disclosures or internal controls.

7.                Fair Dealing

Each Covered Person must endeavor to deal fairly with the Company’s customers, suppliers, competitors and employees. No Covered Person should take unfair advantage of anyone through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or any other unfair-dealing practice.

The purpose of business entertainment and gifts in a commercial setting is to create good will and sound working relationships, not to gain unfair advantage. No business gift or entertainment should ever be offered, given, provided or accepted by any Covered Person unless it:

Please discuss with your supervisor or the Company’s legal counsel any business entertainment or gifts which you are not certain are appropriate.

8.                Health and Safety

The Company strives to provide each employee with a safe and healthy work environment. Each Covered Person has responsibility for maintaining a safe and healthy workplace for all employees by following security, health and safety rules. Suspicious or criminal activity, accidents, injuries and unsafe equipment, practices or conditions should be immediately reported to your supervisor. Performing work while under the influence of alcohol, illegal drugs or improperly used prescription medication is unsafe and puts us all at risk. This is prohibited, and working under the influence of such substances will not be tolerated. The only exception to this rule is when alcohol is used responsibly and in moderation at business dinners and at certain authorized events. Violence and threatening behavior are not permitted. Any acts or threatened acts of violence must be immediately reported to your supervisor and Human Resources.

9.                Political Involvement or Contributions

The Company respects your right to be involved in, and to participate in, the political process as you see fit. However, when engaging in personal civic and political affairs, your views and actions are your own, and not those of the Company. You may not use the Company’s resources (including work time) to support political parties, causes or candidates, or to promote your personal political views.

10.             Protection and Proper Use of Company Assets

All Covered Persons are expected to protect our assets and ensure their efficient use. Theft, carelessness and waste have a direct impact on our profitability. Company property is expected to be used only for legitimate business purposes, although incidental personal use may be permitted. Covered Persons should be mindful of the fact that we retain the right to access, review, monitor and disclose any information transmitted, received or stored using our electronic equipment, with or without an employee’s or third party’s knowledge, consent or approval. Any misuse or suspected misuse of ourassets must be immediately reported to your supervisor or the Company’s legal counsel.

11.             Confidentiality

One of our most important assets is our confidential information. Covered Persons who have received or have access to confidential information about the Company should take care to keep this information confidential. Except when disclosure is authorized or legally mandated, you must not share our or our affiliates’ or customers’ confidential information with third parties or others within the Company who have no legitimate business purpose for receiving that information. Unauthorized use or distribution of this information could also be illegal and result in civil liability and/or criminal penalties.

You should also take care not to inadvertently disclose confidential information about the Company. Materials that contain confidential information, such as memos, notebooks and computers should be stored securely. Unauthorized posting or discussion of any information concerning our business, information or prospects on the Internet is prohibited. Be cautious when discussing sensitive information in public places like elevators or airports. All business relatedemails, voicemails and other communications are presumed confidential and should not be forwarded or otherwise disseminated outside of the Company, except where required for legitimate business purposes. 

12.             Encouraging the Reporting of any Illegal or Unethical Behavior

When there is any ambiguity about the proper ethical or legal action to take in a particular situation, Company employees and other Covered Persons should talk to supervisors or other appropriate personnel. Covered Persons must promptly report potential violations of applicable laws, rules, regulations or this Code (“Potential Violations”). Reports of Potential Violations may be submitted to the Company’s legal counsel anonymously if the Covered Person so desires. The Company will not allow retaliation for reports of Potential Violations that are made in good faith.

13.             Waivers

Any waiver of this Code for any Covered Person, including the executive officers (including our principal executive officer, principal financial officer, principal accounting officer or controller (or persons performing similar functions)) or directors may be authorized only by our general partner. All waivers of this Code will be disclosed to unitholders as required by applicable laws, rules and regulations.

14.             Compliance Standards and Procedures

Compliance Resources

The PEO, the PFO and the Company’s legal counsel are responsible for:

·          investigating Potential Violations;

·                  training new employees in Code policies;

·                  conducting annual training sessions to refresh employees’ familiarity with this Code;

·                  distributing copies of this Code annually via email to each employee with a reminder that each employee is responsible for reading, understanding and complying with this Code;

·                  updating this Code as needed and alerting employees to any updates, with appropriate approval of the Audit Committee of the Board of Directors, to reflect changes in the law, the Company operations and in recognized best practices, and to reflect the Company’s experience; and

·                  otherwise promoting an atmosphere of responsible and ethical conduct.

Your most immediate resource for any matter related to this Code is your supervisor. Your supervisor may have the information you need, or may be able to refer the question to another appropriate source. There may, however, be times when you prefer not to go to your supervisor. In these instances, you should feel free to discuss your concern with the PEO, the PFO or the Company’s legal counsel.

Clarifying Questions and Concerns; Reporting Potential Violations

If you encounter a situation or are considering a course of action and its appropriateness is unclear, discuss the matter promptly with your supervisor; even the appearance of impropriety can be very damaging and should be avoided.

If you are aware of Potential Violation of Code standards by others, you have a responsibilityto report it. You are expected to promptly provide a compliance resource with a specific description of the Potential Violation that you believe has occurred, including any information you have about the persons involved and the time of the Potential Violation.  Whether you choose to speak with your supervisor or the Compliance Hotline, you should do so without fear of any form of retaliation. We will take prompt disciplinary action against any employee who retaliates against you, up to and including termination of employment. 

Supervisors must promptly report any complaints or observations of Potential Violations to the PEO, the PFO or the Company’s legal counsel, who will report to the designated Company contacts your concern for investigation promptly and with the highest degree of confidentiality that is possible under the specific circumstances. Your cooperation in the investigation will be expected. As needed, the PEO or the PFO will consult with legal counsel and/or the general partner.

If the investigation indicates that a violation of this Code has probably occurred, we will take such action as we believe to be appropriate under the circumstances. If we determine that an employee is responsible for a Code violation, he or she will be subject to disciplinary action up to, and including, termination of employment and, in appropriate cases, civil action or referral for criminal prosecution. Appropriate action may also be taken to deter any future Code violations.

EX-31.1 3 real6_ex311.htm EXHIBIT 31.1

Exhibit 31.1

CERTIFICATION

I, Brian Flaherty, certify that:

1.    I have reviewed this annual report on Form 10-K of Real Estate Associates Limited VI;

2.    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;

 

3.    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 registrant as of, and for, the periods presented in this report;

 

4.    The registrant'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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant 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 registrant, 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)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)   Evaluated the effectiveness of the registrant'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

 

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

 

5.    The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant'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 registrant'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 registrant's internal control over financial reporting.

 

Date: April 12, 2013

 

/s/Brian Flaherty

Brian Flaherty

Senior Managing Director of National Partnership Investments, LLC, equivalent of the chief executive officer of the Partnership

 

EX-31.2 4 real6_ex312.htm EXHIBIT 31.2

Exhibit 31.2

CERTIFICATION

 

I, Edward Schmidt, certify that:

1.    I have reviewed this annual report on Form 10-K of Real Estate Associates Limited VI;

2.    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;

 

3.    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 registrant as of, and for, the periods presented in this report;

 

4.    The registrant'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)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)), for the registrant 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 registrant, 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)   Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.

 

(c)   Evaluated the effectiveness of the registrant'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

 

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

 

5.    The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant'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 registrant's ability to record, process, summarize and report financial information; and


EX-32.1 5 real6_ex321.htm EXHIBIT 32.1

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 Annual Report on Form 10-K of Real Estate Associates Limited VI (the "Partnership"), for the fiscal year ended December 31, 2012 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), Brian Flaherty, as the equivalent of the chief executive officer of the Partnership, and Edward Schmidt, 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/Brian Flaherty

 

Name: Brian Flaherty

 

Date: April 12, 2013

 

 

 

      /s/Edward Schmidt

 

Name: Edward Schmidt

 

Date: April 12, 2013

 

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.

 

 

EX-101.INS 6 real6-20121231.xml XBRL INSTANCE DOCUMENT 10-K 2012-12-31 false REAL ESTATE ASSOCIATES LTD VI 0000715578 --12-31 Smaller Reporting Company Yes No No 2012 FY <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:-18.6pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:-18.6pt;text-align:justify'><b>NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:-18.6pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:-18.6pt;text-align:justify'><u>Organization</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:9.0pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:9.0pt;text-align:justify'>Real Estate Associates Limited VI (&quot;REAL VI&quot; or the &quot;Partnership&quot;), 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 &quot;Local Limited Partnerships&quot;) 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 (&quot;NAPICO&quot; or the &quot;General Partner&quot;) and National Partnership Investments Associates, a California limited partnership.&#160; The General Partner is a subsidiary of Bethesda Holdings II, LLC, a privately held real estate asset management company (&#147;Bethesda&#148;). 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The limited partners have the remaining 99 percent interest which is allocated in proportion to their respective investments.&#160; </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:9.0pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:9.0pt;text-align:justify'>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.</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:-18.6pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>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, 2012 and 2011. </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'><u>Basis of Presentation </u></p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States.</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>The Partnership&#146;s management evaluated subsequent events through the time this Annual Report on Form 10-K was filed. </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:30.6pt;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:30.6pt;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'><u>Principles of Consolidation</u> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:30.6pt;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:30.6pt;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>The consolidated financial statements include the accounts of REAL VI and its majority-owned general partnership Real Estate Associates III (&#147;REA III&#148;). All significant intercompany accounts and transactions have been eliminated in consolidation. Losses in excess of the minority interest in equity that would otherwise be attributed to the minority interest are being allocated to the Partnership. </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:30.6pt;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:30.6pt;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:30.6pt;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'><u>Use of Estimates</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:30.6pt;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>The preparation of consolidated 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 consolidated financial statements and accompanying notes. Actual results could differ from those estimates. </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'><u>Method of Accounting for Investments in Local Limited Partnerships</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>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. </p> <p style='margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><u>Abandonment of Units</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt;layout-grid-mode:both'>During the years ended December 31, 2012 and 2011, the number of Limited Partnership Interests decreased by </font><font style='letter-spacing:-.1pt;layout-grid-mode:both'>68</font><font style='letter-spacing:-.1pt;layout-grid-mode:both'> and </font><font style='letter-spacing:-.1pt;layout-grid-mode:both'>24</font><font style='letter-spacing:-.1pt;layout-grid-mode:both'> interests, respectively, due to limited partners abandoning their interests. At December 31, 2012 and 2011, there were </font><font style='letter-spacing:-.1pt;layout-grid-mode:both'>16,568</font><font style='letter-spacing:-.1pt;layout-grid-mode:both'> and </font><font style='letter-spacing:-.1pt;layout-grid-mode:both'>16,636</font><font style='letter-spacing:-.1pt;layout-grid-mode:both'> 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. </font></p> <p style='margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><u>Net Income Per Limited Partnership Interest</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Net income per limited partnership interest was computed by dividing the limited partners&#146; 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 16,636 and 16,660 for the years ended December 31, 2012 and 2011, respectively. </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'><u>Cash and Cash Equivalents</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>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 balances at December 31, 2012 and 2011 are maintained by an affiliated management company on behalf of affiliated entities in a cash concentration account. </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'><u>Impairment of Long-Lived Assets</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>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.&#160; 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, 2012 or 2011. </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><u>Segment Reporting</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>Financial Accounting Standards Board Accounting Standards Codification (&#147;ASC&#148;) Topic 280-10, &#147;Segment Reporting&#148;, 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.&#160; As defined in ASC Topic 280-10, the Partnership has only one reportable segment. </p> <p style='margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><u>Fair Value of Financial Instruments</u> </p> <p style='margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>ASC Topic 825, &#147;Financial Instruments&#148;, requires disclosure of fair value information about financial instruments, when it is practicable to estimate that value. At December 31, 2012, 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. </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify'><u>Variable Interest Entities</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>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&#146;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&#146;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&#146;s economic performance, and (b) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.3in;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-left:0in'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>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&#146;s economic performance and which party controls such activities; the amount and characteristics of the Partnership&#146;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.&#160; 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. </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>At December 31, 2012 and 2011, the Partnership holds variable interests in 5 and 9 VIEs, respectively, for which the Partnership is not the primary beneficiary.&#160; 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.&nbsp;In making this determination, the Partnership considered the following factors:</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in'><font style='font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>the general partners conduct and manage the business of the Local Limited Partnerships;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in'><font style='font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>the general partners have the responsibility for and sole discretion over selecting a property management agent for the Local Limited Partnerships&#146; underlying real estate properties;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in'><font style='font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>the general partners are responsible for approving operating and capital budgets for the properties owned by the Local Limited Partnerships;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in'><font style='font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>the general partners are obligated to fund any recourse obligations of the Local Limited Partnerships; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in'><font style='font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>the general partners are authorized to borrow funds on behalf of the Local Limited Partnerships; and</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in'><font style='font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>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&#146; economic performance.</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>The 5 VIEs at December 31, 2012 consist of Local Limited Partnerships that are directly engaged in the ownership and management of 5 apartment properties with a total of 311 units. &#160;The Partnership is involved with those VIEs as a non-controlling limited partner equity holder. The Partnership&#146;s maximum exposure to loss as a result of its involvement with the unconsolidated VIEs is limited to the Partnership&#146;s recorded investments in and receivables from these VIEs, which were approximately $899,000 and $508,000 at December 31, 2012 and 2011, respectively. The Partnership may be subject to additional losses to the extent of any financial support that the Partnership voluntarily provides in the future<b>.</b></p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><b>NOTE 2 &#150; INVESTMENTS IN AND ADVANCES TO LOCAL LIMITED PARTNERSHIPS </b></p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line'>As of December 31, 2012 and 2011, the Partnership holds limited partnership interests in 5 and 8 Local Limited Partnerships, respectively. In addition, the Partnership holds a majority-owned general partner interest in REA III, which, in turn, held a limited partnership interest in 1 additional Local Limited Partnership, Cassady Village, at December 31, 2011. In total, therefore, the Partnership holds interests, either directly or indirectly through REA III, in 5 and 9 Local Limited Partnerships, which owned, as of December 31, 2012 and 2011, respectively, residential low-income rental projects consisting of 311 and 533 apartment units, respectively. Certain of the Local Limited Partnerships are encumbered by mortgage notes payable to or insured by various governmental agencies.</p> <p style='margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;margin-right:0in'>&nbsp;</p> <p style='margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;margin-right:0in'>The Partnership, as a limited partner, does not have a contractual relationship with the Local Limited Partnerships or exercise control over the activities and operations, including refinancing or selling decisions, of the Local Limited Partnerships that would require or allow for consolidation. Accordingly, the Partnership accounts for its investments in the Local Limited Partnerships using the equity method. The Partnership is allocated profits and losses of the Local Limited Partnerships based upon its respective ownership percentages between 90% and 99%. Distributions of surplus cash from operations from most of the Local Limited Partnerships are restricted by the Local Limited Partnerships&#146; Regulatory Agreements with the United States Department of Housing and Urban Development (&#147;HUD&#148;). 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&#146; partnership agreements. These agreements usually limit the Partnership&#146;s distributions to an amount substantially less than its ownership percentage in the Local Limited Partnership.&#160; </p> <p style='margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;margin-right:0in'>&nbsp;</p> <p style='margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;margin-right:0in'>The individual investments are carried at cost plus the Partnership&#146;s share of the Local Limited Partnership&#146;s profits less the Partnership&#146;s share of the Local Limited Partnership&#146;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 consolidated statements of operations. Operating distributions of approximately $60,000 were received from three Local Limited Partnerships during the year ended December 31, 2011. No operating distributions were received from the Local Limited Partnerships during the year ended December 31, 2012.</p> <p style='margin-top:0in;margin-right:-18.6pt;margin-bottom:0in;margin-left:.3in;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-left:0in'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>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. &#160;These amounts were recognized as income on the consolidated statements of operations. The Partnership had no investment balance remaining in Marshall Plaza Apartments I and II as of the date of sale and December 31, 2011.</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>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 &#147;Note 3&#148;), (ii) the assumption of the outstanding mortgage loan encumbering the property, and (iii) the sum of one dollar.&#160; 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 and December 31, 2011.</p> <p style='margin-top:0in;margin-right:-18.6pt;margin-bottom:0in;margin-left:.3in;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-left:0in'>&nbsp;</p> <p style='margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;margin-right:0in'>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.&nbsp; The Partnership had no investment balance remaining in Oakwood Manor as of the date of the sale and December 31, 2011.</p> <p style='margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;margin-right:0in'>&nbsp;</p> <p style='margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;margin-right:0in'>In May 2011, the Partnership assigned its limited partnership interests in Grant-Ko Enterprises, New Bel-Mo and Sauk-Ko Enterprises to affiliates of the Local Operating General Partners of the Local Limited Partnerships for approximately $362,000. The proceeds received of approximately $339,000, net of Wisconsin withholding tax of approximately $23,000, were recorded as a gain on sale of interests in Local Limited Partnerships, as the Partnership&#146;s investment balance in all three Local Limited Partnerships was zero at the date of assignment.</p> <p style='margin-top:0in;margin-right:-18.6pt;margin-bottom:0in;margin-left:.3in;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-left:0in'>&nbsp;</p> <p style='margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;margin-right:0in'>In August 2011, the Partnership assigned its limited partnership interest in Orocovix Limited Dividend Partnership to an affiliate of the Local Operating General Partner of the Local Limited Partnership for approximately $12,000. The proceeds received were recorded as a gain on sale of interest in Local Limited Partnership for the year ended December 31, 2011, as the Partnership&#146;s investment balance in the Local Limited Partnership was zero at the date of assignment.</p> <p style='margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify;margin-right:0in'>&nbsp;</p> <p style='margin-top:0in;margin-right:-18.6pt;margin-bottom:0in;margin-left:.3in;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin:0in;margin-bottom:.0001pt'>In August 2011, the Partnership assigned its limited partnership interest in Valley Oaks Senior Housing Associates to an affiliate of the Local Operating General Partner of the Local Limited Partnership for $50,000. The proceeds received were recorded as a gain on sale of interest in Local Limited Partnership for the year ended December 31, 2011, as the Partnership&#146;s investment balance in the Local Limited Partnership was zero at the date of assignment.</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Crockett Manor has entered into a purchase and sale contract to sell its investment property to a third party for a sale price that exceeds the balance of the mortgage encumbering the property by $75,000. After payment of closing costs and the mortgage encumbering the property, the Partnership does not expect to receive any proceeds from the sale of Crockett Manor. The transaction is expected to close during 2013. The Partnership had no investment balance remaining in Crockett Manor as of December 31, 2012 and 2011.</p> <p style='margin-top:0in;margin-right:-18.6pt;margin-bottom:0in;margin-left:.3in;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-left:0in'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>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&#146;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.&#160; Therefore, the Partnership limits its recognition of equity earnings to the amount it expects to ultimately realize.</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>As of December 31, 2012 and 2011, 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.</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>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&#146;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, 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. There were no advances from the Partnership to the Local Limited Partnerships during the year ended December 31, 2011. During the years ended December 31, 2012 and 2011, the Partnership received repayment of advances of approximately $196,000 from Oakwood Manor and approximately $37,000 from Crockett Manor, respectively. The repayments of advances were recognized as income on the consolidated statements of operations.</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr style='height:12.95pt'> <td width="680" colspan="2" valign="top" style='width:407.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:.35in'> <td width="822" colspan="3" valign="top" style='width:493.45pt;padding:0in 5.4pt 0in 5.4pt;height:.35in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>The following is a summary of the investments in Local Limited Partnerships for the years ended December 31, 2012 and 2011 (in thousands):</p> </td> </tr> <tr style='height:12.95pt'> <td width="537" valign="top" style='width:322.45pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt;text-align:center'><u>2012</u></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt;text-align:center'><u>2011</u></p> </td> </tr> <tr style='height:7.9pt'> <td width="537" valign="top" style='width:322.45pt;padding:0in 5.4pt 0in 5.4pt;height:7.9pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:7.9pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>&nbsp;</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:7.9pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>&nbsp;</p> </td> </tr> <tr style='height:12.95pt'> <td width="537" valign="top" style='width:322.45pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Balance, beginning of year</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>&#160;$&#160; &#160;508</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>$&#160;&#160; 284</p> </td> </tr> <tr style='height:12.95pt'> <td width="537" valign="top" style='width:322.45pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Equity in income of Local Limited Partnership</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>&#160; &#160;&#160;&#160;400</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>&#160;&#160;&#160; 233</p> </td> </tr> <tr style='height:12.95pt'> <td width="537" valign="top" style='width:322.45pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Amortization of acquisition costs</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>&#160; &#160;&#160;<u>&#160;&#160;(9</u>)</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>&#160;<u>&#160;&#160;&#160; (9</u>)</p> </td> </tr> <tr style='height:12.95pt'> <td width="537" valign="top" style='width:322.45pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Balance, end of year</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>&#160;$&#160; <u>&#160;899</u></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>$<u>&#160;&#160; 508</u></p> </td> </tr> </table> </div> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>The Partnership&#146;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.&#160; The financial information from the unaudited condensed combined financial statements of such Local Limited Partnerships at December 31, 2012 and 2011 and for each of the two years in the period then ended is presented below. The Partnership&#146;s value of its investment in Park Place Associates (the &#147;Material Investee&#148;) is material to the Partnership&#146;s consolidated financial position and amounts included below for the Material Investee are included on an audited basis.</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>The condensed combined results of operations for the years ended December 31, 2012 and 2011 exclude the assets, liabilities, and operations of Grant-Ko Enterprises, New Bel-Mo and Sauk-Ko Enterprises, due to the assignment of the Partnership&#146;s interest in these Local Limited Partnerships in May 2011, Villas de Orocovix and Valley Oaks, due to the assignment of the Partnership&#146;s interest in these Local Limited Partnerships in August 2011, Kentucky Manor, for which no financial information is available, 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.</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="908" style='margin-left:.9pt;border-collapse:collapse'> <tr style='height:12.25pt'> <td width="908" colspan="7" valign="top" style='width:544.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="908" colspan="7" valign="top" style='width:544.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Condensed Combined Balance Sheets of the Local Limited Partnerships</p> </td> </tr> <tr style='height:12.25pt'> <td width="908" colspan="7" valign="top" style='width:544.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>(in thousands)</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="308" colspan="3" valign="top" style='width:184.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="308" colspan="3" valign="top" style='width:184.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="308" colspan="3" valign="top" style='width:184.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>December 31, 2012</u></p> </td> <td width="308" colspan="3" valign="top" style='width:184.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>December 31, 2011</u></p> </td> </tr> <tr style='height:26.55pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:26.55pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="98" valign="bottom" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:26.55pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Material Investee</u></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:26.55pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Unaudited</u></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:26.55pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Total</u></p> </td> <td width="98" valign="bottom" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:26.55pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Material Investee</u></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:26.55pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Unaudited</u></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:26.55pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Total</u></p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Assets</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&#160; Land</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$&#160; 337</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>$&#160;&#160; 239</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$&#160;&#160; 576</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$&#160; 337</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$&#160;&#160; 239</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>$ &#160;&#160;&#160;576</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&#160; Building and improvements</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;8,128</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&#160; 4,983</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;13,111</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;8,106</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160; 4,944</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;13,050</p> </td> </tr> <tr style='height:11.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&#160; Accumulated depreciation</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;(5,859)</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&#160;(4,753)</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;(10,612)</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;(5,635)</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160; (4,677)</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;(10,312)</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&#160; Other assets</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;<u>1,570</u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&#160;<u>&#160;&#160; </u><u>926</u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;<u>&#160;</u><u>2,496</u></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;<u>1,661</u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;<u>&#160;&#160; </u><u>981</u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;</u><u>2,642</u></p> </td> </tr> <tr style='height:2.9pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.9pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.9pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.9pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.9pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.9pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.9pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.9pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Total assets</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u>4,176</u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>$<u> </u><u>1,395</u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u> </u><u>5,571</u></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u>4,469</u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u> </u><u>1,487</u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u> </u><u>5,956</u></p> </td> </tr> <tr style='height:.1in'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:21.15pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:21.15pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt;text-indent:-8.1pt'>Liabilities and Partners&#146; &#160;Equity (Deficit):</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:21.15pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:21.15pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:21.15pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:21.15pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:21.15pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:21.15pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Liabilities:</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&#160; Mortgage notes payable</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$&#160; 916</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>$ 3,687</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$ 4,603</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$1,497</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$ 3,722</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$ 5,219</p> </td> </tr> <tr style='height:13.05pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.05pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Other liabilities</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;&#160; 109</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.05pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&#160; &#160;&#160;613</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160; &#160;&#160;722</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;&#160; &#160;99</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160; &#160;&#160;591</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.05pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 690</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Partners&#146; equity (deficit)</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;<u>3,151</u><u> </u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&#160;<u>(2,905</u>)</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;<u>&#160;&#160; </u><u>246</u></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;<u>2,873</u><u> </u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160; <u>(2,826</u>)</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160; &#160;&#160;</u><u>47</u></p> </td> </tr> <tr style='height:.1in'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:23.85pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:23.85pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt;text-align:justify;text-indent:-8.1pt'>Total liabilities and partner&#146;s equity (deficit)</p> </td> <td width="98" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:23.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u>4,176</u></p> </td> <td width="105" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:23.85pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>$<u> </u><u>1,395</u></p> </td> <td width="105" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:23.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u> </u><u>5,571</u></p> </td> <td width="98" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:23.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u>4,469</u></p> </td> <td width="105" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:23.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u> </u><u>1,487</u></p> </td> <td width="105" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:23.85pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u> </u><u>5,956</u></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="878" style='width:526.5pt;margin-left:.9pt;border-collapse:collapse'> <tr style='height:12.25pt'> <td width="878" colspan="7" valign="top" style='width:526.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="878" colspan="7" valign="top" style='width:526.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Condensed Combined Results of Operations of the Local Limited Partnerships</p> </td> </tr> <tr style='height:12.25pt'> <td width="878" colspan="7" valign="top" style='width:526.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>(in thousands)</p> </td> </tr> <tr style='height:12.25pt'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="645" colspan="6" valign="top" style='width:387.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="645" colspan="6" valign="top" style='width:387.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>Years Ended December 31,</p> </td> </tr> <tr style='height:12.25pt'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>2012</u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>2012</u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>2012</u></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>2011</u></p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>2011</u></p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>2011</u></p> </td> </tr> <tr style='height:22.05pt'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:22.05pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:22.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Material Investee</u></p> </td> <td width="113" valign="bottom" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:22.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Unaudited</u></p> </td> <td width="113" valign="bottom" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:22.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Total</u></p> </td> <td width="98" valign="bottom" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:22.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Material Investee</u></p> </td> <td width="114" valign="bottom" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:22.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Unaudited</u></p> </td> <td width="103" valign="bottom" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:22.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Total</u></p> </td> </tr> <tr style='height:19.8pt'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.8pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Revenues: </p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:19.8pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.8pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.8pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.8pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.8pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:19.8pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:.2in'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;Rental and other</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u> </u><u>1,625</u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u> &#160;&#160;</u><u>964</u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u> </u><u>2,589</u></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u> </u><u>1,482</u></p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u> </u><u>1,008</u></p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>$<u> </u><u>2,490</u></p> </td> </tr> <tr style='height:.2in'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:.2in'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Expenses:</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:.2in'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160; Operating expenses</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 794</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 733</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;1,527</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 786</p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 630</p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160; 1,416</p> </td> </tr> <tr style='height:.2in'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160; Financial expenses</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 148</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 227</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 375</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 200</p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 220</p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160; 420</p> </td> </tr> <tr style='height:.25in'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:.25in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160; Depreciation and amortization</p> </td> <td width="105" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.25in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;&#160; </u><u>238</u></p> </td> <td width="113" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.25in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160; &#160;&#160;</u><u>82</u></p> </td> <td width="113" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.25in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;&#160; </u><u>320</u></p> </td> <td width="98" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.25in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;&#160; </u><u>237</u></p> </td> <td width="114" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:.25in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:.1pt'>&#160;&#160;<u>&#160;&#160; &#160;</u><u>81</u></p> </td> <td width="103" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:.25in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;<u>&#160;&#160; </u><u>318</u></p> </td> </tr> <tr style='height:.2in'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160; Total expenses</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;</u><u>1,180</u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;</u><u>1,042</u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;</u><u>2,222</u></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;</u><u>1,223</u></p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;&#160; </u><u>931</u></p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;<u>&#160;</u><u>2,154</u></p> </td> </tr> <tr style='height:.2in'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:19.45pt'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.45pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Income (loss) from continuing operations</p> </td> <td width="105" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:19.45pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u>&#160;&#160; </u><u>445</u></p> </td> <td width="113" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.45pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u> &#160;&#160;</u><u>(78</u>)</p> </td> <td width="113" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.45pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u>&#160; &#160;</u><u>367</u></p> </td> <td width="98" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.45pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u>&#160;&#160; </u><u>259</u></p> </td> <td width="114" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.45pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u>&#160; &#160;&#160;</u><u>77</u></p> </td> <td width="103" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:19.45pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u>&#160;&#160; </u><u>336</u></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;line-height:2.9pt;layout-grid-mode:line;line-height:normal'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="870" style='margin-left:.9pt;border-collapse:collapse'> <tr style='height:19.75pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:19.75pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:19.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" colspan="2" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:19.75pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:19.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:19.75pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.75pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" colspan="2" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="870" colspan="8" valign="top" style='width:7.25in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>Real Estate and Accumulated Depreciation of Local Limited Partnerships</font></p> </td> </tr> <tr style='height:.15in'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="690" colspan="7" valign="top" style='width:5.75in;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> </tr> <tr style='height:23.05pt'> <td width="870" colspan="8" valign="top" style='width:7.25in;padding:0in 5.4pt 0in 5.4pt;height:23.05pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Schedule of Encumbrances and Investment Properties (all amounts unaudited except for those amounts related to the Material Investee)(in thousands):</p> </td> </tr> <tr style='height:.15in'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" colspan="2" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> </tr> <tr style='height:.15in'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="578" colspan="6" valign="top" style='width:346.5pt;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>Gross Amount at Which Carried</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> </tr> <tr style='height:14.85pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="578" colspan="6" valign="top" style='width:346.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>At December 31, 2012</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> </tr> <tr style='height:.6in'> <td width="180" valign="bottom" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.6in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Description</font></u></p> </td> <td width="128" colspan="2" valign="bottom" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:.6in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-.1pt'>Encumbrances</font></u></p> </td> <td width="98" valign="bottom" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.6in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Land</font></u></p> </td> <td width="135" valign="bottom" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:.6in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Buildings and Related Personal Property</font></u></p> </td> <td width="98" valign="bottom" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.6in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Total</font></u></p> </td> <td width="120" valign="bottom" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:.6in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Accumulated Depreciation</font></u></p> </td> <td width="113" valign="bottom" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.6in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Date of Construction</font></u></p> </td> </tr> <tr style='height:12.95pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Crockett Manor</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-.1pt'>&#160;$&#160;&#160; 978</font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;$&#160; &#160;87</font></p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-1.0pt'>$ 1,412</font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;$ 1,499</font></p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160; $ 1,378</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.0pt'>(A)</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Hummelstown Manor</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-.1pt'>&#160;&#160; 1,614</font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160; 97</font></p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-1.0pt'>&#160; 1,832</font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160; 1,929</font></p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160;&#160; 1,800</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.0pt'>1983</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Kentucky Manor (B)</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-.1pt'>&#160;&#160;&#160;&#160;&#160; --</font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160; --</font></p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160; --</font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160;&#160; --</font></p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; --</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.0pt'>(A)</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Oakridge Park II</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-.1pt'>&#160;&#160; 1,095</font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160; 55</font></p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-1.0pt'>&#160; 1,739</font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160; 1,794</font></p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160;&#160; 1,575</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.0pt'>(A)</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Park Place</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-.1pt'>&#160; &#160;&#160;<u>&#160;916</u></font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160; <u>&#160;&#160;337</u></font></p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-1.0pt'>&#160;<u>&#160;8,128</u></font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160; <u>&#160;8,465</u></font></p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160; <u>&#160;5,859</u></font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.0pt'>1983-1984</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:right'>Total</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;line-height:2.9pt;layout-grid-mode:line;line-height:normal'><font style='letter-spacing:-.1pt'>&#160;$<u> 4,603</u></font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;$<u>&#160; 576</u></font></p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-1.0pt'>$<u>13,111</u></font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;$<u>13,687</u></font></p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160; $<u>10,612</u></font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:12.95pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:right'>&nbsp;</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;line-height:2.9pt;layout-grid-mode:line;line-height:normal'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:12.95pt'> <td width="870" colspan="8" valign="top" style='width:7.25in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:.4in;text-indent:-.25in'>(A) This project was completed when REAL VI invested in the Local Limited Partnership.</p> </td> </tr> <tr style='height:12.95pt'> <td width="870" colspan="8" valign="top" style='width:7.25in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:.4in;text-indent:-.25in'>(B) Financial information is unavailable for 2012.</p> </td> </tr> <tr align="left"> <td width="180" style='border:none'></td> <td width="120" style='border:none'></td> <td width="8" style='border:none'></td> <td width="98" style='border:none'></td> <td width="135" style='border:none'></td> <td width="98" style='border:none'></td> <td width="120" style='border:none'></td> <td width="113" style='border:none'></td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="885" style='margin-left:-8.1pt;border-collapse:collapse'> <tr style='height:13.7pt'> <td width="885" colspan="7" valign="top" style='width:531.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:23.85pt'> <td width="885" colspan="7" valign="top" style='width:531.0pt;padding:0in 5.4pt 0in 5.4pt;height:23.85pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.1pt'>Reconciliation of real estate (all amounts unaudited except for those amounts related to the Material Investee) (in thousands):</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="885" colspan="7" valign="top" style='width:531.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="645" colspan="6" valign="top" style='width:387.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>Years Ended December 31,</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2012</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2012</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2012</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2011</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2011</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2011</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p><font style='letter-spacing:-1.1pt;text-decoration:none;text-underline:none'>Material</font><font style='letter-spacing:-1.1pt'> Investee</font></p> </td> <td width="113" valign="bottom" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Unaudited</font></u></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Total</font></u></p> </td> <td width="113" valign="bottom" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p><font style='letter-spacing:-1.1pt;text-decoration:none;text-underline:none'>Material</font><font style='letter-spacing:-1.1pt'> Investee</font></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Unaudited</font></u></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Total</font></u></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>Real estate:</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>Balance at beginning of year</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>8,443</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>6,166</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$</font><font style='letter-spacing:-1.1pt'>14,609</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>8,409</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ &#160;</font><font style='letter-spacing:-1.1pt'>6,129</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>14,538</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>&#160;</font><font style='letter-spacing:-1.1pt'>Property improvements </font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160;&#160; </font><font style='letter-spacing:-1.1pt'>22</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160;&#160; </font><font style='letter-spacing:-1.1pt'>39</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160;&#160; </font><font style='letter-spacing:-1.1pt'>61</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160;&#160; </font><font style='letter-spacing:-1.1pt'>34</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160; &#160;&#160;&#160;&#160;</font><font style='letter-spacing:-1.1pt'>37</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160;&#160; &#160;</font><font style='letter-spacing:-1.1pt'>71</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>&#160;</font><font style='letter-spacing:-1.1pt'>Disposal of property</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;<u>&#160;&#160;&#160; </u></font><u><font style='letter-spacing:-1.1pt'>--</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;<u>&#160; </u></font><u><font style='letter-spacing:-1.1pt'>(983</font></u><font style='letter-spacing:-1.1pt'>)</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160; <u>&#160;&#160;</u></font><u><font style='letter-spacing:-1.1pt'>(983</font></u><font style='letter-spacing:-1.1pt'>)</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;<u>&#160;&#160;&#160; </u></font><u><font style='letter-spacing:-1.1pt'>--</font></u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;<u>&#160;&#160;&#160; </u></font><u><font style='letter-spacing:-1.1pt'>--</font></u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;<u>&#160;&#160;&#160; </u></font><u><font style='letter-spacing:-1.1pt'>--</font></u></p> </td> </tr> <tr style='height:.2in'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>Balance at end of year</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> </u></font><u><font style='letter-spacing:-1.1pt'>8,465</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> </u></font><u><font style='letter-spacing:-1.1pt'>5,222</font></u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$</font><u><font style='letter-spacing:-1.1pt'>13,687</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> </u></font><u><font style='letter-spacing:-1.1pt'>8,443</font></u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> &#160;</u></font><u><font style='letter-spacing:-1.1pt'>6,166</font></u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> </u></font><u><font style='letter-spacing:-1.1pt'>14,609</font></u></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="893" style='margin-left:-8.1pt;border-collapse:collapse'> <tr style='height:13.7pt'> <td width="893" colspan="7" valign="top" style='width:535.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:23.75pt'> <td width="893" colspan="7" valign="top" style='width:535.5pt;padding:0in 5.4pt 0in 5.4pt;height:23.75pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.1pt'>Reconciliation of accumulated depreciation (all amounts unaudited except for those amounts related to the Material Investee) (in thousands):</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="653" colspan="6" valign="top" style='width:391.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>Years Ended December 31,</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2012</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2012</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2012</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2011</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2011</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2011</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p><font style='letter-spacing:-1.1pt;text-decoration:none;text-underline:none'>Material </font><font style='letter-spacing:-1.1pt'>Investee</font></p> </td> <td width="113" valign="bottom" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Unaudited</font></u></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Total</font></u></p> </td> <td width="113" valign="bottom" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p><font style='letter-spacing:-1.1pt;text-decoration:none;text-underline:none'>Material </font><font style='letter-spacing:-1.1pt'>Investee</font></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Unaudited</font></u></p> </td> <td width="113" valign="bottom" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Total</font></u></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>Accumulated depreciation:</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>Balance at beginning of year</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>5,635</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>5,316</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>10,951</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>5,412</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>5,216</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>10,628</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>&#160;</font><font style='letter-spacing:-1.1pt'>Depreciation expense</font><font style='letter-spacing:-1.1pt'> </font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160; </font><font style='letter-spacing:-1.1pt'>224</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160; &#160;</font><font style='letter-spacing:-1.1pt'>76</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160; &#160;&#160;&#160;</font><font style='letter-spacing:-1.1pt'>300</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160; </font><font style='letter-spacing:-1.1pt'>223</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160; </font><font style='letter-spacing:-1.1pt'>100</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160; &#160;</font><font style='letter-spacing:-1.1pt'>323</font></p> </td> </tr> <tr style='height:14.85pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>&#160;</font><font style='letter-spacing:-1.1pt'>Disposal of property</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>&#160;&#160; --</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160; <u>&#160;&#160;</u></font><u><font style='letter-spacing:-1.1pt'>(639</font></u><font style='letter-spacing:-1.1pt'>)</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160; <u>&#160;&#160;</u></font><u><font style='letter-spacing:-1.1pt'>(639)</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160; --</font></u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160; --</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160; <u>&#160;&#160;&#160;--</u></font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>Balance at end of year</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> </u></font><u><font style='letter-spacing:-1.1pt'>5,859</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> </u></font><u><font style='letter-spacing:-1.1pt'>4,753</font></u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><u><font style='letter-spacing:-1.1pt'>10,612</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> </u></font><u><font style='letter-spacing:-1.1pt'>5,635</font></u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> </u></font><u><font style='letter-spacing:-1.1pt'>5,316</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><u><font style='letter-spacing:-1.1pt'>10,951</font></u></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>The difference between the investment in the accompanying consolidated balance sheets at December 31, 2012 and 2011 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.</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>The current policy of the United States Department of Housing and Urban Development (&#147;HUD&#148;) is to not renew the Housing Assistance Payment (&#147;HAP&#148;) Contracts on a long term basis on the existing terms.&#160; 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.&#160; 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 (&#147;FHA&#148;) 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 (&#147;MAHRAA&#148;) 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.</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>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. </p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><b>NOTE 3 - NOTES PAYABLE AND AMOUNTS DUE FOR PARTNERSHIP INTERESTS</b> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>The Partnership was obligated on non-recourse notes payable of $520,000, which bore interest at 9.5 percent per annum and had principal maturities of December 1999. The notes and related interest were payable from cash flow generated from operations of the related rental property as defined in the notes. Unpaid interest was due at maturity of the notes. Interest expense on non-recourse notes payable was approximately $8,000 and $49,000 for the years ended December 31, 2012 and 2011, respectively. The notes payable and related accrued interest aggregating approximately $1,883,000 at December 31, 2011 relating to Cassady Village Apartments, Ltd. (&#147;Cassady Village&#148;) became payable prior to December 31, 2011. During 2005, the Partnership entered into an agreement with the non-recourse note holder for Cassady Village pursuant to which the noteholder agreed to forebear taking any action under the note pending the purchase by the noteholder of a series of projects, including the properties owned by the Local Limited Partnerships Cassady Village and Marshall Plaza I &amp; II Apartments. As discussed in &#147;Note 2&#148;, these Local Limited Partnerships sold their respective investment properties to the note holder during the year ended December 31, 2012. In connection with the sale of Cassady Village, the Partnership&#146;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. </p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><b>NOTE 4 - TRANSACTIONS WITH AFFILIATED PARTIES</b> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>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<b> </b>the Partnership&#146;s original invested assets of the Local Limited Partnerships at the beginning of the year.&#160; 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 $94,000 and $132,000 for the years ended December 31, 2012 and 2011, respectively.</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>In addition to being the General Partner, NAPICO, or one of its affiliates, is the general partner for one of the Local Limited Partnerships.</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Neither the General Partner nor its affiliates currently own any of the outstanding limited partnership interests in the Partnership at December 31, 2012. &#160;It is possible that Bethesda or its affiliates will acquire additional limited partnership interests in the Partnership, either through private purchases or tender offers. &#160;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.&#160; A &#147;Unit&#148; consists of two limited partnership interests.&#160; 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 10.62% of the outstanding limited partnership interests in the Partnership as of December 31, 2012. &#160;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&#146;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. &#160;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. </p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'><b>NOTE 5 - INCOME TAXES</b> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line'><font style='letter-spacing:-.1pt'>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.</font></p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr style='height:12.25pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="270" colspan="3" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>A reconciliation follows:</font></p> </td> <td width="270" colspan="3" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="270" colspan="3" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>Years Ended December 31,</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-.1pt'>2012</font></u></p> </td> <td width="150" colspan="2" valign="top" style='width:1.25in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-.1pt'>2011</font></u></p> </td> </tr> <tr style='height:12.25pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="270" colspan="3" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>(in thousands)</font></p> </td> </tr> <tr style='height:5.75pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:5.75pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:5.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:5.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>Net income per financial statements</font></p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>$ 2,295</font></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:12.6pt'><font style='letter-spacing:-.1pt'>&#160;$&#160; &#160;295</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:13.5pt;text-align:justify'><font style='letter-spacing:-.1pt'>Accrued interest</font></p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;&#160; &#160;--</font></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:12.6pt'><font style='letter-spacing:-.1pt'>&#160; &#160;&#160;&#160;&#160;49</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:13.5pt;text-align:justify'><font style='letter-spacing:-.1pt'>Gain on sale and extinguishment of debt</font></p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;&#160;(2,476)</font></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:12.6pt'><font style='letter-spacing:-.1pt'>&#160;&#160;&#160;3,670</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:13.5pt;text-align:justify'><font style='letter-spacing:-.1pt'>Other</font><font style='letter-spacing:-.1pt'> </font></p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160; &#160;&#160;&#160;(40)</font></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:12.6pt'><font style='letter-spacing:-.1pt'>&#160; &#160;&#160;&#160;&#160;17</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>&#160; </font><font style='letter-spacing:-.1pt'>Partnership&#146;s share of Local Limited Partnership</font></p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160; <u>&#160;&#160;(379</u>)</font></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:12.6pt'><font style='letter-spacing:-.1pt'>&#160;<u>&#160;&#160;1,257</u></font></p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>Net income (loss) per tax return</font></p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;$<u> &#160;(600</u>)</font></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:12.6pt'><font style='letter-spacing:-.1pt'>$<u> &#160;5,288</u></font></p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:12.6pt'>&nbsp;</p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>Taxable income (loss) per limited partnership interest</font></p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;$</font>&#160;&#160; <u><font style='letter-spacing:-.1pt'>(70.69</font></u><font style='letter-spacing:-.1pt'>)</font></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:12.6pt'><font style='letter-spacing:-.1pt'>$<u> </u></font><u><font style='letter-spacing:-.1pt'>588.86</font></u></p> </td> </tr> <tr align="left"> <td width="488" style='border:none'></td> <td width="117" style='border:none'></td> <td width="7" style='border:none'></td> <td width="137" style='border:none'></td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr style='height:12.25pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="335" colspan="2" valign="top" style='width:201.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:.35in'> <td width="814" colspan="3" valign="top" style='width:488.4pt;padding:0in 5.4pt 0in 5.4pt;height:.35in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>The following is a reconciliation between the Partnership&#146;s reported amounts and the Federal tax basis of net assets (in thousands):</font></p> </td> </tr> <tr style='height:12.25pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="335" colspan="2" valign="top" style='width:201.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt;text-align:center'><font style='letter-spacing:-.1pt'>December 31,</font></p> </td> </tr> <tr style='height:12.25pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-.1pt'>2012</font></u></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt;text-align:center'><u><font style='letter-spacing:-.1pt'>2011</font></u></p> </td> </tr> <tr style='height:8.55pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:8.55pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:8.55pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:8.55pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&nbsp;</p> </td> </tr> <tr style='height:12.95pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>Net assets as reported</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>$&#160; 2,456</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-.1pt'>&#160;$&#160; &#160;&#160;161</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>Add (deduct): </font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&nbsp;</p> </td> </tr> <tr style='height:12.95pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:13.5pt;text-align:justify'><font style='letter-spacing:-.1pt'>Deferred offering costs</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;&#160;&#160;4,976</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-.1pt'>&#160;&#160; &#160;4,976</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:13.5pt;text-align:justify'><font style='letter-spacing:-.1pt'>Investment in Local Limited Partnerships</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;&#160; (6,262)</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-.1pt'>&#160; &#160;(3,820)</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:13.5pt;text-align:justify'><font style='letter-spacing:-.1pt'>Accrued interest</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;&#160; &#160;&#160;&#160;--</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-.1pt'>&#160;&#160;&#160; 1,198</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:13.5pt;text-align:justify'><font style='letter-spacing:-.1pt'>Other</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;&#160;<u>&#160;&#160; &#160;291</u></font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-.1pt'>&#160;&#160;<u>&#160; &#160;(454</u>)</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>Net equity &#150; Federal tax basis</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;$<u> &#160;1,461</u></font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-.1pt'>&#160;$<u> &#160;2,061</u></font></p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>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&#146;s investment in certain Local Limited Partnerships.&#160; For the years ended December 31, 2012 and 2011 the expense of approximately $165,000 and $120,000, respectively, related to this tax is reflected in tax expense in the accompanying consolidated statements of operations. </p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><b>NOTE 6 &#150; CONTINGENCIES</b> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line'>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.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:-18.6pt;text-align:justify'><u>Organization</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:9.0pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:9.0pt;text-align:justify'>Real Estate Associates Limited VI (&quot;REAL VI&quot; or the &quot;Partnership&quot;), 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 &quot;Local Limited Partnerships&quot;) 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 (&quot;NAPICO&quot; or the &quot;General Partner&quot;) and National Partnership Investments Associates, a California limited partnership.&#160; The General Partner is a subsidiary of Bethesda Holdings II, LLC, a privately held real estate asset management company (&#147;Bethesda&#148;). 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 (&#147;Aimco&#148;), a publicly traded real estate investment trust.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.3in;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-top:0in;margin-right:9.0pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:-18.6pt;margin-bottom:0in;margin-left:.3in;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-top:0in;margin-right:9.0pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>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.&#160; </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:9.0pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:9.0pt;text-align:justify'>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.</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:-18.6pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>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, 2012 and 2011. </p> <!--egx--> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'><u>Basis of Presentation </u></p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States.</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>The Partnership&#146;s management evaluated subsequent events through the time this Annual Report on Form 10-K was filed. </p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:30.6pt;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'><u>Principles of Consolidation</u> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:30.6pt;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:30.6pt;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>The consolidated financial statements include the accounts of REAL VI and its majority-owned general partnership Real Estate Associates III (&#147;REA III&#148;). All significant intercompany accounts and transactions have been eliminated in consolidation. Losses in excess of the minority interest in equity that would otherwise be attributed to the minority interest are being allocated to the Partnership. </p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:30.6pt;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:30.6pt;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'><u>Use of Estimates</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:30.6pt;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>The preparation of consolidated 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 consolidated financial statements and accompanying notes. Actual results could differ from those estimates. </p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'><u>Method of Accounting for Investments in Local Limited Partnerships</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>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. </p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><u>Abandonment of Units</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt;layout-grid-mode:both'>During the years ended December 31, 2012 and 2011, the number of Limited Partnership Interests decreased by </font><font style='letter-spacing:-.1pt;layout-grid-mode:both'>68</font><font style='letter-spacing:-.1pt;layout-grid-mode:both'> and </font><font style='letter-spacing:-.1pt;layout-grid-mode:both'>24</font><font style='letter-spacing:-.1pt;layout-grid-mode:both'> interests, respectively, due to limited partners abandoning their interests. At December 31, 2012 and 2011, there were </font><font style='letter-spacing:-.1pt;layout-grid-mode:both'>16,568</font><font style='letter-spacing:-.1pt;layout-grid-mode:both'> and </font><font style='letter-spacing:-.1pt;layout-grid-mode:both'>16,636</font><font style='letter-spacing:-.1pt;layout-grid-mode:both'> 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. </font></p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><u>Net Income Per Limited Partnership Interest</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Net income per limited partnership interest was computed by dividing the limited partners&#146; 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 16,636 and 16,660 for the years ended December 31, 2012 and 2011, respectively. </p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'><u>Cash and Cash Equivalents</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>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 balances at December 31, 2012 and 2011 are maintained by an affiliated management company on behalf of affiliated entities in a cash concentration account. </p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'><u>Impairment of Long-Lived Assets</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>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.&#160; 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, 2012 or 2011. </p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><u>Segment Reporting</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:8.4pt;text-align:justify'>Financial Accounting Standards Board Accounting Standards Codification (&#147;ASC&#148;) Topic 280-10, &#147;Segment Reporting&#148;, 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.&#160; As defined in ASC Topic 280-10, the Partnership has only one reportable segment. </p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><u>Fair Value of Financial Instruments</u> </p> <p style='margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>ASC Topic 825, &#147;Financial Instruments&#148;, requires disclosure of fair value information about financial instruments, when it is practicable to estimate that value. At December 31, 2012, 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. </p> <!--egx--><p style='margin-top:0in;margin-right:8.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:justify'><u>Variable Interest Entities</u> </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>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&#146;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&#146;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&#146;s economic performance, and (b) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.3in;margin-bottom:.0001pt;text-align:justify;layout-grid-mode:line;margin-left:0in'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>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&#146;s economic performance and which party controls such activities; the amount and characteristics of the Partnership&#146;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.&#160; 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. </p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>At December 31, 2012 and 2011, the Partnership holds variable interests in 5 and 9 VIEs, respectively, for which the Partnership is not the primary beneficiary.&#160; 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.&nbsp;In making this determination, the Partnership considered the following factors:</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in'><font style='font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>the general partners conduct and manage the business of the Local Limited Partnerships;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in'><font style='font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>the general partners have the responsibility for and sole discretion over selecting a property management agent for the Local Limited Partnerships&#146; underlying real estate properties;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in'><font style='font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>the general partners are responsible for approving operating and capital budgets for the properties owned by the Local Limited Partnerships;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in'><font style='font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>the general partners are obligated to fund any recourse obligations of the Local Limited Partnerships; </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in'><font style='font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>the general partners are authorized to borrow funds on behalf of the Local Limited Partnerships; and</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.75in;margin-bottom:.0001pt;text-align:justify;text-indent:-.25in'><font style='font-family:Symbol'>&#183;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font>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&#146; economic performance.</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>The 5 VIEs at December 31, 2012 consist of Local Limited Partnerships that are directly engaged in the ownership and management of 5 apartment properties with a total of 311 units. &#160;The Partnership is involved with those VIEs as a non-controlling limited partner equity holder. The Partnership&#146;s maximum exposure to loss as a result of its involvement with the unconsolidated VIEs is limited to the Partnership&#146;s recorded investments in and receivables from these VIEs, which were approximately $899,000 and $508,000 at December 31, 2012 and 2011, respectively. The Partnership may be subject to additional losses to the extent of any financial support that the Partnership voluntarily provides in the future<b>.</b></p> <!--egx--><div align="center"> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr style='height:12.95pt'> <td width="680" colspan="2" valign="top" style='width:407.95pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:.35in'> <td width="822" colspan="3" valign="top" style='width:493.45pt;padding:0in 5.4pt 0in 5.4pt;height:.35in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>The following is a summary of the investments in Local Limited Partnerships for the years ended December 31, 2012 and 2011 (in thousands):</p> </td> </tr> <tr style='height:12.95pt'> <td width="537" valign="top" style='width:322.45pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt;text-align:center'><u>2012</u></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt;text-align:center'><u>2011</u></p> </td> </tr> <tr style='height:7.9pt'> <td width="537" valign="top" style='width:322.45pt;padding:0in 5.4pt 0in 5.4pt;height:7.9pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:7.9pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>&nbsp;</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:7.9pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>&nbsp;</p> </td> </tr> <tr style='height:12.95pt'> <td width="537" valign="top" style='width:322.45pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Balance, beginning of year</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>&#160;$&#160; &#160;508</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>$&#160;&#160; 284</p> </td> </tr> <tr style='height:12.95pt'> <td width="537" valign="top" style='width:322.45pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Equity in income of Local Limited Partnership</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>&#160; &#160;&#160;&#160;400</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>&#160;&#160;&#160; 233</p> </td> </tr> <tr style='height:12.95pt'> <td width="537" valign="top" style='width:322.45pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Amortization of acquisition costs</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>&#160; &#160;&#160;<u>&#160;&#160;(9</u>)</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>&#160;<u>&#160;&#160;&#160; (9</u>)</p> </td> </tr> <tr style='height:12.95pt'> <td width="537" valign="top" style='width:322.45pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Balance, end of year</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>&#160;$&#160; <u>&#160;899</u></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.9pt'>$<u>&#160;&#160; 508</u></p> </td> </tr> </table> </div> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="908" style='margin-left:.9pt;border-collapse:collapse'> <tr style='height:12.25pt'> <td width="908" colspan="7" valign="top" style='width:544.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="908" colspan="7" valign="top" style='width:544.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Condensed Combined Balance Sheets of the Local Limited Partnerships</p> </td> </tr> <tr style='height:12.25pt'> <td width="908" colspan="7" valign="top" style='width:544.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>(in thousands)</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="308" colspan="3" valign="top" style='width:184.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="308" colspan="3" valign="top" style='width:184.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="308" colspan="3" valign="top" style='width:184.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>December 31, 2012</u></p> </td> <td width="308" colspan="3" valign="top" style='width:184.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>December 31, 2011</u></p> </td> </tr> <tr style='height:26.55pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:26.55pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="98" valign="bottom" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:26.55pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Material Investee</u></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:26.55pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Unaudited</u></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:26.55pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Total</u></p> </td> <td width="98" valign="bottom" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:26.55pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Material Investee</u></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:26.55pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Unaudited</u></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:26.55pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Total</u></p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Assets</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&#160; Land</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$&#160; 337</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>$&#160;&#160; 239</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$&#160;&#160; 576</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$&#160; 337</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$&#160;&#160; 239</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>$ &#160;&#160;&#160;576</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&#160; Building and improvements</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;8,128</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&#160; 4,983</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;13,111</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;8,106</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160; 4,944</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;13,050</p> </td> </tr> <tr style='height:11.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&#160; Accumulated depreciation</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;(5,859)</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&#160;(4,753)</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;(10,612)</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;(5,635)</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160; (4,677)</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:11.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;(10,312)</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&#160; Other assets</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;<u>1,570</u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&#160;<u>&#160;&#160; </u><u>926</u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;<u>&#160;</u><u>2,496</u></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;<u>1,661</u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;<u>&#160;&#160; </u><u>981</u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;</u><u>2,642</u></p> </td> </tr> <tr style='height:2.9pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.9pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.9pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.9pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.9pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:2.9pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.9pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:2.9pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Total assets</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u>4,176</u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>$<u> </u><u>1,395</u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u> </u><u>5,571</u></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u>4,469</u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u> </u><u>1,487</u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u> </u><u>5,956</u></p> </td> </tr> <tr style='height:.1in'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:21.15pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:21.15pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt;text-indent:-8.1pt'>Liabilities and Partners&#146; &#160;Equity (Deficit):</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:21.15pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:21.15pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:21.15pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:21.15pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:21.15pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:21.15pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Liabilities:</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&#160; Mortgage notes payable</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$&#160; 916</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>$ 3,687</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$ 4,603</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$1,497</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$ 3,722</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$ 5,219</p> </td> </tr> <tr style='height:13.05pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.05pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Other liabilities</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;&#160; 109</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.05pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&#160; &#160;&#160;613</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160; &#160;&#160;722</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;&#160; &#160;99</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160; &#160;&#160;591</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.05pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 690</p> </td> </tr> <tr style='height:12.25pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>Partners&#146; equity (deficit)</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;<u>3,151</u><u> </u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&#160;<u>(2,905</u>)</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;<u>&#160;&#160; </u><u>246</u></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160;<u>2,873</u><u> </u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&#160; <u>(2,826</u>)</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160; &#160;&#160;</u><u>47</u></p> </td> </tr> <tr style='height:.1in'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.1in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:23.85pt'> <td width="293" valign="top" style='width:175.5pt;padding:0in 5.4pt 0in 5.4pt;height:23.85pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt;text-align:justify;text-indent:-8.1pt'>Total liabilities and partner&#146;s equity (deficit)</p> </td> <td width="98" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:23.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u>4,176</u></p> </td> <td width="105" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:23.85pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>$<u> </u><u>1,395</u></p> </td> <td width="105" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:23.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u> </u><u>5,571</u></p> </td> <td width="98" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:23.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u>4,469</u></p> </td> <td width="105" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:23.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u> </u><u>1,487</u></p> </td> <td width="105" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:23.85pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u> </u><u>5,956</u></p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="878" style='width:526.5pt;margin-left:.9pt;border-collapse:collapse'> <tr style='height:12.25pt'> <td width="878" colspan="7" valign="top" style='width:526.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="878" colspan="7" valign="top" style='width:526.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Condensed Combined Results of Operations of the Local Limited Partnerships</p> </td> </tr> <tr style='height:12.25pt'> <td width="878" colspan="7" valign="top" style='width:526.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>(in thousands)</p> </td> </tr> <tr style='height:12.25pt'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="645" colspan="6" valign="top" style='width:387.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="645" colspan="6" valign="top" style='width:387.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>Years Ended December 31,</p> </td> </tr> <tr style='height:12.25pt'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>2012</u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>2012</u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>2012</u></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>2011</u></p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>2011</u></p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>2011</u></p> </td> </tr> <tr style='height:22.05pt'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:22.05pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:22.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Material Investee</u></p> </td> <td width="113" valign="bottom" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:22.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Unaudited</u></p> </td> <td width="113" valign="bottom" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:22.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Total</u></p> </td> <td width="98" valign="bottom" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:22.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Material Investee</u></p> </td> <td width="114" valign="bottom" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:22.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Unaudited</u></p> </td> <td width="103" valign="bottom" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:22.05pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u>Total</u></p> </td> </tr> <tr style='height:19.8pt'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.8pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Revenues: </p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:19.8pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.8pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.8pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.8pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.8pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:19.8pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:.2in'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;Rental and other</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u> </u><u>1,625</u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u> &#160;&#160;</u><u>964</u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u> </u><u>2,589</u></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u> </u><u>1,482</u></p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u> </u><u>1,008</u></p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>$<u> </u><u>2,490</u></p> </td> </tr> <tr style='height:.2in'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:.2in'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Expenses:</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:.2in'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160; Operating expenses</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 794</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 733</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;1,527</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 786</p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 630</p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160; 1,416</p> </td> </tr> <tr style='height:.2in'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160; Financial expenses</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 148</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 227</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 375</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 200</p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160;&#160; 220</p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160; 420</p> </td> </tr> <tr style='height:.25in'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:.25in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160; Depreciation and amortization</p> </td> <td width="105" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.25in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;&#160; </u><u>238</u></p> </td> <td width="113" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.25in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160; &#160;&#160;</u><u>82</u></p> </td> <td width="113" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.25in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;&#160; </u><u>320</u></p> </td> <td width="98" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.25in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;&#160; </u><u>237</u></p> </td> <td width="114" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:.25in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-right:.1pt'>&#160;&#160;<u>&#160;&#160; &#160;</u><u>81</u></p> </td> <td width="103" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:.25in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;<u>&#160;&#160; </u><u>318</u></p> </td> </tr> <tr style='height:.2in'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;&#160; Total expenses</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;</u><u>1,180</u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;</u><u>1,042</u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;</u><u>2,222</u></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;</u><u>1,223</u></p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;&#160;<u>&#160;&#160; </u><u>931</u></p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;<u>&#160;</u><u>2,154</u></p> </td> </tr> <tr style='height:.2in'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="114" valign="top" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="103" valign="top" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:19.45pt'> <td width="233" valign="top" style='width:139.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.45pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Income (loss) from continuing operations</p> </td> <td width="105" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:19.45pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u>&#160;&#160; </u><u>445</u></p> </td> <td width="113" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.45pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u> &#160;&#160;</u><u>(78</u>)</p> </td> <td width="113" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.45pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u>&#160; &#160;</u><u>367</u></p> </td> <td width="98" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.45pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>$<u>&#160;&#160; </u><u>259</u></p> </td> <td width="114" style='width:68.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.45pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u>&#160; &#160;&#160;</u><u>77</u></p> </td> <td width="103" style='width:62.0pt;padding:0in 5.4pt 0in 5.4pt;height:19.45pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&#160;$<u>&#160;&#160; </u><u>336</u></p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;line-height:2.9pt;layout-grid-mode:line;line-height:normal'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="870" style='margin-left:.9pt;border-collapse:collapse'> <tr style='height:19.75pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:19.75pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:19.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" colspan="2" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:19.75pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:19.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:19.75pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:19.75pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" colspan="2" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="870" colspan="8" valign="top" style='width:7.25in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>Real Estate and Accumulated Depreciation of Local Limited Partnerships</font></p> </td> </tr> <tr style='height:.15in'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="690" colspan="7" valign="top" style='width:5.75in;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> </tr> <tr style='height:23.05pt'> <td width="870" colspan="8" valign="top" style='width:7.25in;padding:0in 5.4pt 0in 5.4pt;height:23.05pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Schedule of Encumbrances and Investment Properties (all amounts unaudited except for those amounts related to the Material Investee)(in thousands):</p> </td> </tr> <tr style='height:.15in'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" colspan="2" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> </tr> <tr style='height:.15in'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="578" colspan="6" valign="top" style='width:346.5pt;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>Gross Amount at Which Carried</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.15in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> </tr> <tr style='height:14.85pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="578" colspan="6" valign="top" style='width:346.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>At December 31, 2012</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> </tr> <tr style='height:.6in'> <td width="180" valign="bottom" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:.6in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Description</font></u></p> </td> <td width="128" colspan="2" valign="bottom" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:.6in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-.1pt'>Encumbrances</font></u></p> </td> <td width="98" valign="bottom" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.6in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Land</font></u></p> </td> <td width="135" valign="bottom" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:.6in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Buildings and Related Personal Property</font></u></p> </td> <td width="98" valign="bottom" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:.6in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Total</font></u></p> </td> <td width="120" valign="bottom" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:.6in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Accumulated Depreciation</font></u></p> </td> <td width="113" valign="bottom" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.6in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Date of Construction</font></u></p> </td> </tr> <tr style='height:12.95pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Crockett Manor</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-.1pt'>&#160;$&#160;&#160; 978</font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;$&#160; &#160;87</font></p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-1.0pt'>$ 1,412</font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;$ 1,499</font></p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160; $ 1,378</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.0pt'>(A)</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Hummelstown Manor</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-.1pt'>&#160;&#160; 1,614</font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160; 97</font></p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-1.0pt'>&#160; 1,832</font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160; 1,929</font></p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160;&#160; 1,800</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.0pt'>1983</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Kentucky Manor (B)</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-.1pt'>&#160;&#160;&#160;&#160;&#160; --</font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160; --</font></p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160; --</font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160;&#160; --</font></p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; --</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.0pt'>(A)</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Oakridge Park II</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-.1pt'>&#160;&#160; 1,095</font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160; 55</font></p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-1.0pt'>&#160; 1,739</font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160; 1,794</font></p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160;&#160; 1,575</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.0pt'>(A)</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>Park Place</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-.1pt'>&#160; &#160;&#160;<u>&#160;916</u></font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160; <u>&#160;&#160;337</u></font></p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-1.0pt'>&#160;<u>&#160;8,128</u></font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160; <u>&#160;8,465</u></font></p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160;&#160; <u>&#160;5,859</u></font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.0pt'>1983-1984</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:right'>Total</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;line-height:2.9pt;layout-grid-mode:line;line-height:normal'><font style='letter-spacing:-.1pt'>&#160;$<u> 4,603</u></font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;$<u>&#160; 576</u></font></p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-1.0pt'>$<u>13,111</u></font></p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;$<u>13,687</u></font></p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.0pt'>&#160;&#160;&#160; $<u>10,612</u></font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:12.95pt'> <td width="180" valign="top" style='width:1.5in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:right'>&nbsp;</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;line-height:2.9pt;layout-grid-mode:line;line-height:normal'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="135" valign="top" style='width:81.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&nbsp;</p> </td> <td width="98" valign="top" style='width:58.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:12.95pt'> <td width="870" colspan="8" valign="top" style='width:7.25in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:.4in;text-indent:-.25in'>(A) This project was completed when REAL VI invested in the Local Limited Partnership.</p> </td> </tr> <tr style='height:12.95pt'> <td width="870" colspan="8" valign="top" style='width:7.25in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:.4in;text-indent:-.25in'>(B) Financial information is unavailable for 2012.</p> </td> </tr> <tr align="left"> <td width="180" style='border:none'></td> <td width="120" style='border:none'></td> <td width="8" style='border:none'></td> <td width="98" style='border:none'></td> <td width="135" style='border:none'></td> <td width="98" style='border:none'></td> <td width="120" style='border:none'></td> <td width="113" style='border:none'></td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="885" style='margin-left:-8.1pt;border-collapse:collapse'> <tr style='height:13.7pt'> <td width="885" colspan="7" valign="top" style='width:531.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:23.85pt'> <td width="885" colspan="7" valign="top" style='width:531.0pt;padding:0in 5.4pt 0in 5.4pt;height:23.85pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.1pt'>Reconciliation of real estate (all amounts unaudited except for those amounts related to the Material Investee) (in thousands):</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="885" colspan="7" valign="top" style='width:531.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="645" colspan="6" valign="top" style='width:387.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>Years Ended December 31,</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2012</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2012</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2012</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2011</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2011</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2011</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p><font style='letter-spacing:-1.1pt;text-decoration:none;text-underline:none'>Material</font><font style='letter-spacing:-1.1pt'> Investee</font></p> </td> <td width="113" valign="bottom" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Unaudited</font></u></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Total</font></u></p> </td> <td width="113" valign="bottom" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p><font style='letter-spacing:-1.1pt;text-decoration:none;text-underline:none'>Material</font><font style='letter-spacing:-1.1pt'> Investee</font></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Unaudited</font></u></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Total</font></u></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>Real estate:</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>Balance at beginning of year</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>8,443</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>6,166</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$</font><font style='letter-spacing:-1.1pt'>14,609</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>8,409</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ &#160;</font><font style='letter-spacing:-1.1pt'>6,129</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>14,538</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>&#160;</font><font style='letter-spacing:-1.1pt'>Property improvements </font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160;&#160; </font><font style='letter-spacing:-1.1pt'>22</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160;&#160; </font><font style='letter-spacing:-1.1pt'>39</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160;&#160; </font><font style='letter-spacing:-1.1pt'>61</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160;&#160; </font><font style='letter-spacing:-1.1pt'>34</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160; &#160;&#160;&#160;&#160;</font><font style='letter-spacing:-1.1pt'>37</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160;&#160; &#160;</font><font style='letter-spacing:-1.1pt'>71</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>&#160;</font><font style='letter-spacing:-1.1pt'>Disposal of property</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;<u>&#160;&#160;&#160; </u></font><u><font style='letter-spacing:-1.1pt'>--</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;<u>&#160; </u></font><u><font style='letter-spacing:-1.1pt'>(983</font></u><font style='letter-spacing:-1.1pt'>)</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160; <u>&#160;&#160;</u></font><u><font style='letter-spacing:-1.1pt'>(983</font></u><font style='letter-spacing:-1.1pt'>)</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;<u>&#160;&#160;&#160; </u></font><u><font style='letter-spacing:-1.1pt'>--</font></u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;<u>&#160;&#160;&#160; </u></font><u><font style='letter-spacing:-1.1pt'>--</font></u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;<u>&#160;&#160;&#160; </u></font><u><font style='letter-spacing:-1.1pt'>--</font></u></p> </td> </tr> <tr style='height:.2in'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>Balance at end of year</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> </u></font><u><font style='letter-spacing:-1.1pt'>8,465</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> </u></font><u><font style='letter-spacing:-1.1pt'>5,222</font></u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$</font><u><font style='letter-spacing:-1.1pt'>13,687</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> </u></font><u><font style='letter-spacing:-1.1pt'>8,443</font></u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> &#160;</u></font><u><font style='letter-spacing:-1.1pt'>6,166</font></u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:.2in'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> </u></font><u><font style='letter-spacing:-1.1pt'>14,609</font></u></p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="893" style='margin-left:-8.1pt;border-collapse:collapse'> <tr style='height:13.7pt'> <td width="893" colspan="7" valign="top" style='width:535.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'>&nbsp;</p> </td> </tr> <tr style='height:23.75pt'> <td width="893" colspan="7" valign="top" style='width:535.5pt;padding:0in 5.4pt 0in 5.4pt;height:23.75pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line'><font style='letter-spacing:-1.1pt'>Reconciliation of accumulated depreciation (all amounts unaudited except for those amounts related to the Material Investee) (in thousands):</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="653" colspan="6" valign="top" style='width:391.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>Years Ended December 31,</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2012</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2012</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2012</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2011</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2011</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>2011</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p><font style='letter-spacing:-1.1pt;text-decoration:none;text-underline:none'>Material </font><font style='letter-spacing:-1.1pt'>Investee</font></p> </td> <td width="113" valign="bottom" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Unaudited</font></u></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Total</font></u></p> </td> <td width="113" valign="bottom" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p><font style='letter-spacing:-1.1pt;text-decoration:none;text-underline:none'>Material </font><font style='letter-spacing:-1.1pt'>Investee</font></p> </td> <td width="105" valign="bottom" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Unaudited</font></u></p> </td> <td width="113" valign="bottom" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>Total</font></u></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>Accumulated depreciation:</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>Balance at beginning of year</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>5,635</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>5,316</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>10,951</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>5,412</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>5,216</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><font style='letter-spacing:-1.1pt'>10,628</font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>&#160;</font><font style='letter-spacing:-1.1pt'>Depreciation expense</font><font style='letter-spacing:-1.1pt'> </font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160; </font><font style='letter-spacing:-1.1pt'>224</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160; &#160;</font><font style='letter-spacing:-1.1pt'>76</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160; &#160;&#160;&#160;</font><font style='letter-spacing:-1.1pt'>300</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160; </font><font style='letter-spacing:-1.1pt'>223</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160; </font><font style='letter-spacing:-1.1pt'>100</font></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160; &#160;</font><font style='letter-spacing:-1.1pt'>323</font></p> </td> </tr> <tr style='height:14.85pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>&#160;</font><font style='letter-spacing:-1.1pt'>Disposal of property</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>&#160;&#160; --</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160; <u>&#160;&#160;</u></font><u><font style='letter-spacing:-1.1pt'>(639</font></u><font style='letter-spacing:-1.1pt'>)</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160; <u>&#160;&#160;</u></font><u><font style='letter-spacing:-1.1pt'>(639)</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160; --</font></u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-1.1pt'>&#160;&#160;&#160; --</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:14.85pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>&#160; <u>&#160;&#160;&#160;--</u></font></p> </td> </tr> <tr style='height:13.7pt'> <td width="240" valign="top" style='width:2.0in;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-1.1pt'>Balance at end of year</font></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> </u></font><u><font style='letter-spacing:-1.1pt'>5,859</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> </u></font><u><font style='letter-spacing:-1.1pt'>4,753</font></u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><u><font style='letter-spacing:-1.1pt'>10,612</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> </u></font><u><font style='letter-spacing:-1.1pt'>5,635</font></u></p> </td> <td width="105" valign="top" style='width:63.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$<u> </u></font><u><font style='letter-spacing:-1.1pt'>5,316</font></u></p> </td> <td width="113" valign="top" style='width:67.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.7pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-1.1pt'>$ </font><u><font style='letter-spacing:-1.1pt'>10,951</font></u></p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr style='height:12.25pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="270" colspan="3" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>A reconciliation follows:</font></p> </td> <td width="270" colspan="3" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:12.25pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="270" colspan="3" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>Years Ended December 31,</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="120" valign="top" style='width:1.0in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-.1pt'>2012</font></u></p> </td> <td width="150" colspan="2" valign="top" style='width:1.25in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-.1pt'>2011</font></u></p> </td> </tr> <tr style='height:12.25pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="270" colspan="3" valign="top" style='width:2.25in;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>(in thousands)</font></p> </td> </tr> <tr style='height:5.75pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:5.75pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:5.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:5.75pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>Net income per financial statements</font></p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>$ 2,295</font></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:12.6pt'><font style='letter-spacing:-.1pt'>&#160;$&#160; &#160;295</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:13.5pt;text-align:justify'><font style='letter-spacing:-.1pt'>Accrued interest</font></p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;&#160; &#160;--</font></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:12.6pt'><font style='letter-spacing:-.1pt'>&#160; &#160;&#160;&#160;&#160;49</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:13.5pt;text-align:justify'><font style='letter-spacing:-.1pt'>Gain on sale and extinguishment of debt</font></p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;&#160;(2,476)</font></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:12.6pt'><font style='letter-spacing:-.1pt'>&#160;&#160;&#160;3,670</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:13.5pt;text-align:justify'><font style='letter-spacing:-.1pt'>Other</font><font style='letter-spacing:-.1pt'> </font></p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160; &#160;&#160;&#160;(40)</font></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:12.6pt'><font style='letter-spacing:-.1pt'>&#160; &#160;&#160;&#160;&#160;17</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>&#160; </font><font style='letter-spacing:-.1pt'>Partnership&#146;s share of Local Limited Partnership</font></p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160; <u>&#160;&#160;(379</u>)</font></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:12.6pt'><font style='letter-spacing:-.1pt'>&#160;<u>&#160;&#160;1,257</u></font></p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>Net income (loss) per tax return</font></p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;$<u> &#160;(600</u>)</font></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:12.6pt'><font style='letter-spacing:-.1pt'>$<u> &#160;5,288</u></font></p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:12.6pt'>&nbsp;</p> </td> </tr> <tr style='height:12.95pt'> <td width="534" valign="top" style='width:4.45in;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>Taxable income (loss) per limited partnership interest</font></p> </td> <td width="128" colspan="2" valign="top" style='width:76.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;$</font>&#160;&#160; <u><font style='letter-spacing:-.1pt'>(70.69</font></u><font style='letter-spacing:-.1pt'>)</font></p> </td> <td width="143" valign="top" style='width:85.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:12.6pt'><font style='letter-spacing:-.1pt'>$<u> </u></font><u><font style='letter-spacing:-.1pt'>588.86</font></u></p> </td> </tr> <tr align="left"> <td width="488" style='border:none'></td> <td width="117" style='border:none'></td> <td width="7" style='border:none'></td> <td width="137" style='border:none'></td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr style='height:12.25pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="335" colspan="2" valign="top" style='width:201.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='text-align:center'>&nbsp;</p> </td> </tr> <tr style='height:.35in'> <td width="814" colspan="3" valign="top" style='width:488.4pt;padding:0in 5.4pt 0in 5.4pt;height:.35in'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>The following is a reconciliation between the Partnership&#146;s reported amounts and the Federal tax basis of net assets (in thousands):</font></p> </td> </tr> <tr style='height:12.25pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="335" colspan="2" valign="top" style='width:201.0pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt;text-align:center'><font style='letter-spacing:-.1pt'>December 31,</font></p> </td> </tr> <tr style='height:12.25pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><u><font style='letter-spacing:-.1pt'>2012</font></u></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.25pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt;text-align:center'><u><font style='letter-spacing:-.1pt'>2011</font></u></p> </td> </tr> <tr style='height:8.55pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:8.55pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'>&nbsp;</p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:8.55pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:8.55pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&nbsp;</p> </td> </tr> <tr style='height:12.95pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>Net assets as reported</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>$&#160; 2,456</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-.1pt'>&#160;$&#160; &#160;&#160;161</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>Add (deduct): </font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'>&nbsp;</p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'>&nbsp;</p> </td> </tr> <tr style='height:12.95pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:13.5pt;text-align:justify'><font style='letter-spacing:-.1pt'>Deferred offering costs</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;&#160;&#160;4,976</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-.1pt'>&#160;&#160; &#160;4,976</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:13.5pt;text-align:justify'><font style='letter-spacing:-.1pt'>Investment in Local Limited Partnerships</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;&#160; (6,262)</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-.1pt'>&#160; &#160;(3,820)</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:13.5pt;text-align:justify'><font style='letter-spacing:-.1pt'>Accrued interest</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;&#160; &#160;&#160;&#160;--</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-.1pt'>&#160;&#160;&#160; 1,198</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:13.5pt;text-align:justify'><font style='letter-spacing:-.1pt'>Other</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;&#160;<u>&#160;&#160; &#160;291</u></font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-.1pt'>&#160;&#160;<u>&#160; &#160;(454</u>)</font></p> </td> </tr> <tr style='height:12.95pt'> <td width="479" valign="top" style='width:287.4pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:justify'><font style='letter-spacing:-.1pt'>Net equity &#150; Federal tax basis</font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;text-align:center'><font style='letter-spacing:-.1pt'>&#160;$<u> &#160;1,461</u></font></p> </td> <td width="168" valign="top" style='width:100.5pt;padding:0in 5.4pt 0in 5.4pt;height:12.95pt'> <p style='margin:0in;margin-bottom:.0001pt;layout-grid-mode:line;margin-left:8.1pt'><font style='letter-spacing:-.1pt'>&#160;$<u> &#160;2,061</u></font></p> </td> </tr> </table> 9999000 899000 508000 313000 196000 2685000 2156000 127000 40000 102000 72000 0000 520000 0000 1363000 229000 1995000 0000 0000 -327000 -350000 2783000 511000 2456000 161000 2685000 2156000 16568 0000 0000 94000 132000 26000 19000 84000 107000 165000 120000 8000 49000 377000 427000 -377000 -427000 -18000 0000 196000 37000 212000 60000 391000 224000 0000 401000 1891000 0000 23000 3000 2272000 292000 136.57 17.53 68 24 16568 16636 16636 16660 5 9 5 311 899000 508000 5 8 1 5 9 311 533 60000 1110000 1385000 55000 70000 36000 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Note 2 - Investments in and Advances To Local Limited Partnerships: Real Estate and Accumulated Depreciation of Local Limited Partnerships (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Real Estate and Accumulated Depreciation, Amount of Encumbrances $ 4,603
Real Estate and Accumulated Depreciation, Carrying Amount of Land 576
Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements 13,111
Real Estate and Accumulated Depreciation, Carrying Amount of Land and Buildings and Improvements 13,687
Real Estate and Accumulated Depreciation, Accumulated Depreciation 10,612
Crockett Manor
 
Real Estate and Accumulated Depreciation, Amount of Encumbrances 978
Real Estate and Accumulated Depreciation, Carrying Amount of Land 87
Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements 1,412
Real Estate and Accumulated Depreciation, Carrying Amount of Land and Buildings and Improvements 1,499
Real Estate and Accumulated Depreciation, Accumulated Depreciation 1,378
Hummelstown Manor
 
Real Estate and Accumulated Depreciation, Amount of Encumbrances 1,614
Real Estate and Accumulated Depreciation, Carrying Amount of Land 97
Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements 1,832
Real Estate and Accumulated Depreciation, Carrying Amount of Land and Buildings and Improvements 1,929
Real Estate and Accumulated Depreciation, Accumulated Depreciation 1,800
Oakridge Park II
 
Real Estate and Accumulated Depreciation, Amount of Encumbrances 1,095
Real Estate and Accumulated Depreciation, Carrying Amount of Land 55
Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements 1,739
Real Estate and Accumulated Depreciation, Carrying Amount of Land and Buildings and Improvements 1,794
Real Estate and Accumulated Depreciation, Accumulated Depreciation 1,575
Park Place
 
Real Estate and Accumulated Depreciation, Amount of Encumbrances 916
Real Estate and Accumulated Depreciation, Carrying Amount of Land 337
Real Estate and Accumulated Depreciation, Carrying Amount of Buildings and Improvements 8,128
Real Estate and Accumulated Depreciation, Carrying Amount of Land and Buildings and Improvements 8,465
Real Estate and Accumulated Depreciation, Accumulated Depreciation $ 5,859
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Note 5 - Income Taxes (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
New Jersey tax included in tax expense $ 165,000 $ 120,000
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Note 1 - Organization and Summary of Significant Accounting Policies: Net Income Per Limited Partnership Interest (Details)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Limited Partnership Interests Outstanding for net income per unit calculation 16,636 16,660
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Note 2 - Investments in and Advances To Local Limited Partnerships: Condensed Combined Balance Sheets of the Local Limited Partnerships (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
Condensed Combined Balance Sheets of the Local Limited Partnerships

 

 

Condensed Combined Balance Sheets of the Local Limited Partnerships

(in thousands)

 

 

 

 

December 31, 2012

December 31, 2011

 

Material Investee

Unaudited

Total

Material Investee

Unaudited

Total

Assets

 

 

 

 

 

 

  Land

$  337

$   239

$   576

$  337

$   239

$    576

  Building and improvements

 8,128

  4,983

 13,111

 8,106

  4,944

  13,050

  Accumulated depreciation

 (5,859)

 (4,753)

 (10,612)

 (5,635)

  (4,677)

 (10,312)

  Other assets

 1,570

    926

  2,496

 1,661

    981

   2,642

 

 

 

 

 

 

 

Total assets

$4,176

$ 1,395

$ 5,571

$4,469

$ 1,487

 $ 5,956

 

 

 

 

 

 

 

Liabilities and Partners’  Equity (Deficit):

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

  Mortgage notes payable

$  916

$ 3,687

$ 4,603

$1,497

$ 3,722

 $ 5,219

Other liabilities

   109

    613

    722

    99

    591

     690

Partners’ equity (deficit)

 3,151

 (2,905)

    246

 2,873

  (2,826)

      47

 

 

 

 

 

 

 

Total liabilities and partner’s equity (deficit)

$4,176

$ 1,395

$ 5,571

$4,469

$ 1,487

 $ 5,956

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Note 3 - Notes Payable and Amounts Due For Partnership Interests (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Notes payable with maturity of December 1999 collaterlized by investment in Cassady Village   $ 520,000
Interest expense on notes payable in default 8,000 49,000
Note payable principal & interest in default - Cassady Village   1,883,000
Note payable principal & interest extinguished 2012 - Cassady Village $ 1,891,000  
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Note 2 - Investments in and Advances To Local Limited Partnerships: Condensed Combined Balance Sheets of the Local Limited Partnerships (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Material Investee
   
Land $ 337 $ 337
Buildings and Improvements, Gross 8,128 8,106
Real Estate Accumulated Depreciation (5,859) (5,635)
Other Assets 1,570 1,661
Total assets 4,176 4,469
Mortgage notes payable 916 1,497
Other Liabilities 109 99
Total Partners' equity (deficit) 3,151 2,873
Total liabilities and partner's equity (deficit) 4,176 4,469
Unaudited Investee
   
Land 239 239
Buildings and Improvements, Gross 4,983 4,944
Real Estate Accumulated Depreciation (4,753) (4,677)
Other Assets 926 981
Total assets 1,395 1,487
Mortgage notes payable 3,687 3,722
Other Liabilities 613 591
Total Partners' equity (deficit) (2,905) (2,826)
Total liabilities and partner's equity (deficit) 1,395 1,487
Total of Investees
   
Land 576 576
Buildings and Improvements, Gross 13,111 13,050
Real Estate Accumulated Depreciation (10,612) (10,312)
Other Assets 2,496 2,642
Total assets 5,571 5,956
Mortgage notes payable 4,603 5,219
Other Liabilities 722 690
Total Partners' equity (deficit) 246 47
Total liabilities and partner's equity (deficit) $ 5,571 $ 5,956
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Note 4 - Transactions With Affiliated Parties
12 Months Ended
Dec. 31, 2012
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 $94,000 and $132,000 for the years ended December 31, 2012 and 2011, 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, 2012.  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 10.62% of the outstanding limited partnership interests in the Partnership as of December 31, 2012.  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.

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M("`@/'1D(&-L87-S/3-$=&5X=#X\'1I M;F=U:7-H;65N="!O9B!D96)T(&)O;VL@=&%X(&1I9F9E"!R971U&%B;&4@:6YC M;VUE("AL;W-S*2!P97(@;&EM:71E9"!P87)T;F5R7!E.B!T97AT+VAT;6P[(&-H87)S970](G5S+6%S8VEI(@T*#0H\:'1M;#X- M"B`@/&AE860^#0H@("`@/$U%5$$@:'1T<"UE<75I=CTS1$-O;G1E;G0M5'EP M92!C;VYT96YT/3-$)W1E>'0O:'1M;#L@8VAA2`M($9E9&5R86P@ M=&%X(&)A7!E.B!T97AT+VAT;6P[(&-H87)S970](G5S+6%S8VEI(@T* M#0H\:'1M;#X-"B`@/&AE860^#0H@("`@/$U%5$$@:'1T<"UE<75I=CTS1$-O M;G1E;G0M5'EP92!C;VYT96YT/3-$)W1E>'0O:'1M;#L@8VAA2!T87@@:6YC M;'5D960@:6X@=&%X(&5X<&5N7!E.B!T97AT+VAT;6P[(&-H87)S M970](G5S+6%S8VEI(@T*#0H\>&UL('AM;&YS.F\],T0B=7)N.G-C:&5M87,M M;6EC XML 21 R43.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 4 - Transactions With Affiliated Parties (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Management fee expense - related party $ 94,000 $ 132,000
Limited partnership units owned by Realted Party unit is two interersts 879.5  
Limited partnership interests owned by Related Party 1,759  
Limited partnership percentage owned by Related Party 10.62%  

XML 22 R29.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Investments in and Advances To Local Limited Partnerships: Reconciliation of accumulated depreciation (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
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,

 

2012

2012

2012

2011

2011

2011

 

Material Investee

Unaudited

Total

Material Investee

Unaudited

Total

Accumulated depreciation:

 

 

 

 

 

 

Balance at beginning of year

$ 5,635

$ 5,316

$ 10,951

$ 5,412

$ 5,216

$ 10,628

 Depreciation expense

    224

     76

     300

    223

    100

     323

 Disposal of property

   --

    (639)

    (639)

    --

    --

     --

Balance at end of year

$ 5,859

$ 4,753

$ 10,612

$ 5,635

$ 5,316

$ 10,951

XML 23 R28.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Investments in and Advances To Local Limited Partnerships: Reconciliation of real estate (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
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,

 

2012

2012

2012

2011

2011

2011

 

Material Investee

Unaudited

Total

Material Investee

Unaudited

Total

Real estate:

 

 

 

 

 

 

Balance at beginning of year

$ 8,443

$ 6,166

$14,609

$ 8,409

$  6,129

$ 14,538

 Property improvements

     22

     39

     61

     34

      37

      71

 Disposal of property

     --

    (983)

    (983)

     --

     --

     --

Balance at end of year

$ 8,465

$ 5,222

$13,687

$ 8,443

$  6,166

$ 14,609

XML 24 R44.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 5 - Income Taxes: Reconiliation of book Net Income (Loss) to Federal Tax basis Net Income (Loss) (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Net income $ 2,295 $ 295
Accrued interest expense book tax difference   49
Gain on sale and extinguishment of debt book tax differences (2,476) 3,670
Other expenses book tax differences (40) 17
Partnership's share of Local Limited Partnership book tax differences (379) 1,257
Net income (loss) per tax return $ (600) $ 5,288
Taxable income (loss) per limited partnership interest $ (70.69) $ 588.86
XML 25 R30.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 5 - Income Taxes: Reconiliation of book Net Income (Loss) to Federal Tax basis Net Income (Loss) (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
Reconiliation of book Net Income (Loss) to Federal Tax basis Net Income (Loss)

 

 

 

A reconciliation follows:

 

 

Years Ended December 31,

 

2012

2011

 

(in thousands)

 

 

 

Net income per financial statements

$ 2,295

 $   295

Accrued interest

    --

      49

Gain on sale and extinguishment of debt

  (2,476)

   3,670

Other

     (40)

      17

  Partnership’s share of Local Limited Partnership

    (379)

   1,257

Net income (loss) per tax return

 $  (600)

$  5,288

 

 

 

Taxable income (loss) per limited partnership interest

 $   (70.69)

$ 588.86

XML 26 R31.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 5 - Income Taxes: Reconciliation of Book Net Assets (Liabilities) to Federal Tax Basis Net Assets (Liabilities) (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
Reconciliation of Book Net Assets (Liabilities) to Federal Tax Basis Net Assets (Liabilities)

 

 

 

The following is a reconciliation between the Partnership’s reported amounts and the Federal tax basis of net assets (in thousands):

 

December 31,

 

2012

2011

 

 

 

Net assets as reported

$  2,456

 $    161

Add (deduct):

 

 

Deferred offering costs

   4,976

    4,976

Investment in Local Limited Partnerships

   (6,262)

   (3,820)

Accrued interest

      --

    1,198

Other

      291

     (454)

Net equity – Federal tax basis

 $  1,461

 $  2,061

XML 27 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 3 - Notes Payable and Amounts Due For Partnership Interests
12 Months Ended
Dec. 31, 2012
Notes  
Note 3 - Notes Payable and Amounts Due For Partnership Interests

 

NOTE 3 - NOTES PAYABLE AND AMOUNTS DUE FOR PARTNERSHIP INTERESTS

 

The Partnership was obligated on non-recourse notes payable of $520,000, which bore interest at 9.5 percent per annum and had principal maturities of December 1999. The notes and related interest were payable from cash flow generated from operations of the related rental property as defined in the notes. Unpaid interest was due at maturity of the notes. Interest expense on non-recourse notes payable was approximately $8,000 and $49,000 for the years ended December 31, 2012 and 2011, respectively. The notes payable and related accrued interest aggregating approximately $1,883,000 at December 31, 2011 relating to Cassady Village Apartments, Ltd. (“Cassady Village”) became payable prior to December 31, 2011. During 2005, the Partnership entered into an agreement with the non-recourse note holder for Cassady Village pursuant to which the noteholder agreed to forebear taking any action under the note pending the purchase by the noteholder of a series of projects, including the properties owned by the Local Limited Partnerships Cassady Village and Marshall Plaza I & II Apartments. As discussed in “Note 2”, these Local Limited Partnerships sold their respective investment properties to the note holder during the year ended December 31, 2012. 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.

XML 28 R32.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 1 - Organization and Summary of Significant Accounting Policies: Abandonment of Units (Details)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Limited Partnership Interests Abandoned during the year 68 24
Outstanding Limited Partnership Interests 16,568 16,636
XML 29 R40.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Investments in and Advances To Local Limited Partnerships: Reconciliation of real estate (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Material Investee
   
Real Estate balance at beginning of year $ 8,443 $ 8,409
Property, Plant and Equipment, Additions 22 34
Real Estate balance at end of year 8,465 8,443
Unaudited Investee
   
Real Estate balance at beginning of year 6,166 6,129
Property, Plant and Equipment, Additions 39 37
Property, Plant and Equipment, Disposals (983)  
Real Estate balance at end of year 5,222 6,166
Total of Investees
   
Real Estate balance at beginning of year 14,609 14,538
Property, Plant and Equipment, Additions 61 71
Property, Plant and Equipment, Disposals (983)  
Real Estate balance at end of year $ 13,687 $ 14,609
XML 30 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Assets    
Investments in and advances to Local Limited Partnerships $ 899 $ 508
Cash and cash equivalents 1,473 1,452
Receivables - limited partners 313 196
Total assets 2,685 2,156
Liabilities    
Accounts payable and accrued expenses 127 40
Taxes payable 102 72
Notes payable, in default 0 520
Accrued interest payable, in default 0 1,363
Total liabilities 229 1,995
Contingencies 0 0
Partners' capital (deficiency):    
General partners (327) (350)
Limited partners 2,783 511
Total partners' capital (deficiency) 2,456 161
Total liabilities and partners' capital (deficiency) $ 2,685 $ 2,156
XML 31 R45.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 5 - Income Taxes: Reconciliation of Book Net Assets (Liabilities) to Federal Tax Basis Net Assets (Liabilities) (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2012
Dec. 31, 2011
Assets, Net $ 2,456 $ 161
Deferred Offering Costs 4,976 4,976
Investment in Local Limited Partnerships book tax differences (6,262) (3,820)
Accrued interest book tax difference 9,999 1,198
Other book tax differences assets and liabilities 291 (454)
Net equity - Federal tax basis $ 1,461 $ 2,061
XML 32 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 1 - Organization and Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2012
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, 2012 and 2011.

 

 

Basis of Presentation

 

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States.

 

The Partnership’s management evaluated subsequent events through the time this Annual Report on Form 10-K was filed.

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of REAL VI and its majority-owned general partnership Real Estate Associates III (“REA III”). All significant intercompany accounts and transactions have been eliminated in consolidation. Losses in excess of the minority interest in equity that would otherwise be attributed to the minority interest are being allocated to the Partnership.

 

 

Use of Estimates

 

The preparation of consolidated 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 consolidated 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, 2012 and 2011, the number of Limited Partnership Interests decreased by 68 and 24 interests, respectively, due to limited partners abandoning their interests. At December 31, 2012 and 2011, there were 16,568 and 16,636 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 16,636 and 16,660 for the years ended December 31, 2012 and 2011, 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 balances at December 31, 2012 and 2011 are maintained by an affiliated management company on behalf of affiliated entities in a cash concentration account.

 

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, 2012 or 2011.

 

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, 2012, 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, 2012 and 2011, the Partnership holds variable interests in 5 and 9 VIEs, respectively, for which the Partnership is 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 5 VIEs at December 31, 2012 consist of Local Limited Partnerships that are directly engaged in the ownership and management of 5 apartment properties with a total of 311 units.  The Partnership is involved with those VIEs as a non-controlling limited partner equity holder. The Partnership’s maximum exposure to loss as a result of its involvement with the unconsolidated VIEs is limited to the Partnership’s recorded investments in and receivables from these VIEs, which were approximately $899,000 and $508,000 at December 31, 2012 and 2011, respectively. The Partnership may be subject to additional losses to the extent of any financial support that the Partnership voluntarily provides in the future.

XML 33 R35.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Investments in and Advances To Local Limited Partnerships (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Limited Partnership Interests held by Partnership 5 8
General Parntership Interests held by Partnership via an affiliate   1
Consolidated Limited Partnership Interests held by Partnership 5 9
Apartment units within Investment Partnerships 311 533
Operating distributions received from Investment Partnerships   $ 60,000
Sale proceeds investment partnership property - Marshall Plaza I - January 2012 1,110,000  
Sale proceeds investment partnership property - Marshall Plaza II - January 2012 1,385,000  
Proceeds to Partnership from Marshall Plaza I property sale - January 2012 55,000  
Proceeds to Partnership from Marshall Plaza II property sale - January 2012 70,000  
Payment by Partnership of taxes in connection with Marshall Plaza I & II sales 36,000  
Sale proceeds investment partnership property - Oakwood Manor - September 2012 500,000  
Gross proceeds to Partnership from Oakwood Manor property sale - September 2012 344,000  
Proceeds received by Partnership used to pay taxes in connection with Oakwood Manor sale 30,000  
Proceeds from Oakwood Manor recognized as recovery of advances - September 2012 196,000  
Proceeds from Oakwood Manor recognized as distribution income - September 2012 118,000  
Proceeds from interest sales in 3 investment partnerships May 2011   362,000
Proceeds, net of taxes, from interest sales in 3 investment partnerships May 2011   339,000
Taxes paid in connection with interest sales in 3 investment partnerships May 2011   23,000
Proceeds from interest sale in investment partnership August 2011 - Orocovix   12,000
Proceeds from interest sale in investment partnership August 2011 - Valley Oaks   50,000
Advances made to Investment Partnerships charged to expense 18,000  
Recovery of advances previoulsy made to Investment Partnerships charged to expense $ 196,000 $ 37,000
XML 34 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 1 - Organization and Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies)
12 Months Ended
Dec. 31, 2012
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, 2012, 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.

XML 35 R36.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Investments in and Advances To Local Limited Partnerships: Investment balance in Investment Partnerships Summary (in thousands) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Investment balance, beginning balance $ 508 $ 284
Equity in income of Local Limited Partnership 400 233
Amortization of Acquisition Costs (9) (9)
Investment balance, ending balance $ 899 $ 508
XML 36 R24.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Investments in and Advances To Local Limited Partnerships: Investment balance in Investment Partnerships Summary (in thousands) (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
Investment balance in Investment Partnerships Summary (in thousands)

 

 

The following is a summary of the investments in Local Limited Partnerships for the years ended December 31, 2012 and 2011 (in thousands):

 

2012

2011

 

 

 

Balance, beginning of year

 $   508

$   284

Equity in income of Local Limited Partnership

     400

    233

Amortization of acquisition costs

      (9)

     (9)

Balance, end of year

 $   899

$   508

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XML 38 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Investments in and Advances To Local Limited Partnerships
12 Months Ended
Dec. 31, 2012
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, 2012 and 2011, the Partnership holds limited partnership interests in 5 and 8 Local Limited Partnerships, respectively. In addition, the Partnership holds a majority-owned general partner interest in REA III, which, in turn, held a limited partnership interest in 1 additional Local Limited Partnership, Cassady Village, at December 31, 2011. In total, therefore, the Partnership holds interests, either directly or indirectly through REA III, in 5 and 9 Local Limited Partnerships, which owned, as of December 31, 2012 and 2011, respectively, residential low-income rental projects consisting of 311 and 533 apartment units, respectively. Certain of the Local Limited Partnerships are encumbered by mortgage notes payable to or insured by various governmental agencies.

 

The Partnership, as a limited partner, does not have a contractual relationship with the Local Limited Partnerships or exercise control over the activities and operations, including refinancing or selling decisions, of the Local Limited Partnerships that would require or allow for consolidation. Accordingly, the Partnership accounts for its investments in the Local Limited Partnerships using the equity method. The Partnership is allocated profits and losses of the Local Limited Partnerships based upon its respective ownership percentages between 90% and 99%. Distributions of surplus cash from operations from most of the Local Limited Partnerships are restricted by the Local Limited Partnerships’ Regulatory Agreements with the United States Department of Housing and Urban Development (“HUD”). These restrictions limit the distribution to a portion, generally less than 10% of the initial invested capital. The excess surplus cash is deposited into a residual receipts reserve, of which the ultimate realization by the Partnership is uncertain as HUD frequently retains it upon sale or dissolution of the Local Limited Partnership. The Partnership is allocated profits and losses and receives distributions from refinancings and sales in accordance with the Local Limited Partnerships’ partnership agreements. These agreements usually limit the Partnership’s distributions to an amount substantially less than its ownership percentage in the Local Limited Partnership. 

 

The individual investments are carried at cost plus the Partnership’s share of the Local Limited Partnership’s profits less the Partnership’s share of the Local Limited Partnership’s losses, distributions and impairment charges. The Partnership is not legally liable for the obligations of the Local Limited Partnerships and is not otherwise committed to provide additional support to them. Therefore, it does not recognize losses once its investment in each of the Local Limited Partnerships reaches zero. Distributions from the Local Limited Partnerships are accounted for as a reduction of the investment balance until the investment balance is reduced to zero. When the investment balance has been reduced to zero, subsequent distributions received are recognized as income in the accompanying consolidated statements of operations. Operating distributions of approximately $60,000 were received from three Local Limited Partnerships during the year ended December 31, 2011. 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 consolidated statements of operations. The Partnership had no investment balance remaining in Marshall Plaza Apartments I and II as of the date of sale and December 31, 2011.

 

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 and December 31, 2011.

 

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 and December 31, 2011.

 

In May 2011, the Partnership assigned its limited partnership interests in Grant-Ko Enterprises, New Bel-Mo and Sauk-Ko Enterprises to affiliates of the Local Operating General Partners of the Local Limited Partnerships for approximately $362,000. The proceeds received of approximately $339,000, net of Wisconsin withholding tax of approximately $23,000, were recorded as a gain on sale of interests in Local Limited Partnerships, as the Partnership’s investment balance in all three Local Limited Partnerships was zero at the date of assignment.

 

In August 2011, the Partnership assigned its limited partnership interest in Orocovix Limited Dividend Partnership to an affiliate of the Local Operating General Partner of the Local Limited Partnership for approximately $12,000. The proceeds received were recorded as a gain on sale of interest in Local Limited Partnership for the year ended December 31, 2011, as the Partnership’s investment balance in the Local Limited Partnership was zero at the date of assignment.

 

In August 2011, the Partnership assigned its limited partnership interest in Valley Oaks Senior Housing Associates to an affiliate of the Local Operating General Partner of the Local Limited Partnership for $50,000. The proceeds received were recorded as a gain on sale of interest in Local Limited Partnership for the year ended December 31, 2011, as the Partnership’s investment balance in the Local Limited Partnership was zero at the date of assignment.

 

Crockett Manor has entered into a purchase and sale contract to sell its investment property to a third party for a sale price that exceeds the balance of the mortgage encumbering the property by $75,000. After payment of closing costs and the mortgage encumbering the property, the Partnership does not expect to receive any proceeds from the sale of Crockett Manor. The transaction is expected to close during 2013. The Partnership had no investment balance remaining in Crockett Manor as of December 31, 2012 and 2011.

 

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, 2012 and 2011, 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, 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. There were no advances from the Partnership to the Local Limited Partnerships during the year ended December 31, 2011. During the years ended December 31, 2012 and 2011, the Partnership received repayment of advances of approximately $196,000 from Oakwood Manor and approximately $37,000 from Crockett Manor, respectively. The repayments of advances were recognized as income on the consolidated statements of operations.

 

 

 

The following is a summary of the investments in Local Limited Partnerships for the years ended December 31, 2012 and 2011 (in thousands):

 

2012

2011

 

 

 

Balance, beginning of year

 $   508

$   284

Equity in income of Local Limited Partnership

     400

    233

Amortization of acquisition costs

      (9)

     (9)

Balance, end of year

 $   899

$   508

 

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, 2012 and 2011 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 consolidated financial position and amounts included below for the Material Investee are included on an audited basis.

 

The condensed combined results of operations for the years ended December 31, 2012 and 2011 exclude the assets, liabilities, and operations of Grant-Ko Enterprises, New Bel-Mo and Sauk-Ko Enterprises, due to the assignment of the Partnership’s interest in these Local Limited Partnerships in May 2011, Villas de Orocovix and Valley Oaks, due to the assignment of the Partnership’s interest in these Local Limited Partnerships in August 2011, Kentucky Manor, for which no financial information is available, 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)

 

 

 

 

December 31, 2012

December 31, 2011

 

Material Investee

Unaudited

Total

Material Investee

Unaudited

Total

Assets

 

 

 

 

 

 

  Land

$  337

$   239

$   576

$  337

$   239

$    576

  Building and improvements

 8,128

  4,983

 13,111

 8,106

  4,944

  13,050

  Accumulated depreciation

 (5,859)

 (4,753)

 (10,612)

 (5,635)

  (4,677)

 (10,312)

  Other assets

 1,570

    926

  2,496

 1,661

    981

   2,642

 

 

 

 

 

 

 

Total assets

$4,176

$ 1,395

$ 5,571

$4,469

$ 1,487

 $ 5,956

 

 

 

 

 

 

 

Liabilities and Partners’  Equity (Deficit):

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

  Mortgage notes payable

$  916

$ 3,687

$ 4,603

$1,497

$ 3,722

 $ 5,219

Other liabilities

   109

    613

    722

    99

    591

     690

Partners’ equity (deficit)

 3,151

 (2,905)

    246

 2,873

  (2,826)

      47

 

 

 

 

 

 

 

Total liabilities and partner’s equity (deficit)

$4,176

$ 1,395

$ 5,571

$4,469

$ 1,487

 $ 5,956

 

 

 

Condensed Combined Results of Operations of the Local Limited Partnerships

(in thousands)

 

 

 

Years Ended December 31,

 

2012

2012

2012

2011

2011

2011

 

Material Investee

Unaudited

Total

Material Investee

Unaudited

Total

Revenues:

 

 

 

 

 

 

  Rental and other

 $ 1,625

 $   964

 $ 2,589

 $ 1,482

 $ 1,008

$ 2,490

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

  Operating expenses

     794

     733

   1,527

     786

     630

  1,416

  Financial expenses

     148

     227

     375

     200

     220

    420

  Depreciation and amortization

     238

      82

     320

     237

      81

    318

    Total expenses

   1,180

   1,042

   2,222

   1,223

     931

  2,154

 

 

 

 

 

 

 

Income (loss) from continuing operations

$   445

$   (78)

 $   367

$   259

 $    77

 $   336

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, 2012

 

Description

Encumbrances

Land

Buildings and Related Personal Property

Total

Accumulated Depreciation

Date of Construction

Crockett Manor

 $   978

 $   87

$ 1,412

 $ 1,499

    $ 1,378

(A)

Hummelstown Manor

   1,614

     97

  1,832

   1,929

      1,800

1983

Kentucky Manor (B)

      --

     --

     --

      --

         --

(A)

Oakridge Park II

   1,095

     55

  1,739

   1,794

      1,575

(A)

Park Place

     916

    337

  8,128

   8,465

      5,859

1983-1984

Total

 $ 4,603

 $  576

$13,111

 $13,687

    $10,612

 

 

 

 

 

 

 

 

(A) This project was completed when REAL VI invested in the Local Limited Partnership.

(B) Financial information is unavailable for 2012.

 

 

 

Reconciliation of real estate (all amounts unaudited except for those amounts related to the Material Investee) (in thousands):

 

 

Years Ended December 31,

 

2012

2012

2012

2011

2011

2011

 

Material Investee

Unaudited

Total

Material Investee

Unaudited

Total

Real estate:

 

 

 

 

 

 

Balance at beginning of year

$ 8,443

$ 6,166

$14,609

$ 8,409

$  6,129

$ 14,538

 Property improvements

     22

     39

     61

     34

      37

      71

 Disposal of property

     --

    (983)

    (983)

     --

     --

     --

Balance at end of year

$ 8,465

$ 5,222

$13,687

$ 8,443

$  6,166

$ 14,609

 

 

 

Reconciliation of accumulated depreciation (all amounts unaudited except for those amounts related to the Material Investee) (in thousands):

 

Years Ended December 31,

 

2012

2012

2012

2011

2011

2011

 

Material Investee

Unaudited

Total

Material Investee

Unaudited

Total

Accumulated depreciation:

 

 

 

 

 

 

Balance at beginning of year

$ 5,635

$ 5,316

$ 10,951

$ 5,412

$ 5,216

$ 10,628

 Depreciation expense

    224

     76

     300

    223

    100

     323

 Disposal of property

   --

    (639)

    (639)

    --

    --

     --

Balance at end of year

$ 5,859

$ 4,753

$ 10,612

$ 5,635

$ 5,316

$ 10,951

 

The difference between the investment in the accompanying consolidated balance sheets at December 31, 2012 and 2011 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.

XML 39 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Revenues: $ 0 $ 0
Operating Expenses:    
Management fees - General Partner 94 132
General and administrative 26 19
Legal and accounting 84 107
Tax expense 165 120
Interest 8 49
Total operating expenses 377 427
Loss from partnership operations (377) (427)
Advances to Local Limited Partnerships recognized as expense (18) 0
Recovery of advances to Local Limited Partnerships previously recognized as expense 196 37
Distributions from Local Limited Partnerships recognized as income 212 60
Equity in income of Local Limited Partnership and amortization of acquisition costs 391 224
Gain on sale of interests in Local Limited Partnerships 0 401
Gain on extinguishment of debt 1,891 0
Net income 2,295 295
Net income allocated to general partners (1%) 23 3
Net income allocated to limited partners (99%) $ 2,272 $ 292
Net income per limited partnership interest $ 136.57 $ 17.53
XML 40 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 1 - Organization and Summary of Significant Accounting Policies: Abandonment of Units (Policies)
12 Months Ended
Dec. 31, 2012
Policies  
Abandonment of Units

Abandonment of Units

 

During the years ended December 31, 2012 and 2011, the number of Limited Partnership Interests decreased by 68 and 24 interests, respectively, due to limited partners abandoning their interests. At December 31, 2012 and 2011, there were 16,568 and 16,636 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.

XML 41 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
Document and Entity Information
12 Months Ended
Dec. 31, 2012
Document and Entity Information:  
Entity Registrant Name REAL ESTATE ASSOCIATES LTD VI
Document Type 10-K
Document Period End Date Dec. 31, 2012
Amendment Flag false
Entity Central Index Key 0000715578
Current Fiscal Year End Date --12-31
Entity Common Stock, Shares Outstanding 16,568
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 2012
Document Fiscal Period Focus FY
XML 42 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 1 - Organization and Summary of Significant Accounting Policies: Net Income Per Limited Partnership Interest (Policies)
12 Months Ended
Dec. 31, 2012
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 16,636 and 16,660 for the years ended December 31, 2012 and 2011, respectively.

XML 43 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Statement of Shareholder Equity (Deficit) (USD $)
In Thousands
General Partners
Limited Partners
Total
Partners' capital (deficiency), beginning balance at Dec. 31, 2010 $ (353) $ 219 $ (134)
Net income 3 292 295
Partners' capital (deficiency), ending 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
XML 44 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 1 - Organization and Summary of Significant Accounting Policies: Organization (Policies)
12 Months Ended
Dec. 31, 2012
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, 2012 and 2011.

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8@Y__@]02P$"'@,4````"`!A=XQ"3XR,?'N%``!( M?P<`$@`8```````!````I($`````&UL550%``-U M66A1=7@+``$$)0X```0Y`0``4$L!`AX#%`````@`87>,0H5Q*XP3!@``/6`` M`!8`&````````0```*2!QX4``')E86PV+3(P,3(Q,C,Q7V-A;"YX;6Q55`4` M`W59:%%U>`L``00E#@``!#D!``!02P$"'@,4````"`!A=XQ"TJL!/'H:``"L MZ`$`%@`8```````!````I($JC````Q0````(`&%WC$*/PU)I3RT` M`!HR`@`6`!@```````$```"D@?2F``!R96%L-BTR,#$R,3(S,5]L86(N>&UL M550%``-U66A1=7@+``$$)0X```0Y`0``4$L!`AX#%`````@`87>,0F%'&Z8D M'0``%C4"`!8`&````````0```*2!D]0``')E86PV+3(P,3(Q,C,Q7W!R92YX M;6Q55`4``W59:%%U>`L``00E#@``!#D!``!02P$"'@,4````"`!A=XQ"-_:- MZ6(1``#VT@``$@`8```````!````I($'\@``'-D M550%``-U66A1=7@+``$$)0X```0Y`0``4$L%!@`````&``8`(`(``+4#`0`` !```` ` end XML 46 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 6 - Contingencies
12 Months Ended
Dec. 31, 2012
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.

XML 47 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 1 - Organization and Summary of Significant Accounting Policies: Variable Interest Entities (Policies)
12 Months Ended
Dec. 31, 2012
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, 2012 and 2011, the Partnership holds variable interests in 5 and 9 VIEs, respectively, for which the Partnership is 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 5 VIEs at December 31, 2012 consist of Local Limited Partnerships that are directly engaged in the ownership and management of 5 apartment properties with a total of 311 units.  The Partnership is involved with those VIEs as a non-controlling limited partner equity holder. The Partnership’s maximum exposure to loss as a result of its involvement with the unconsolidated VIEs is limited to the Partnership’s recorded investments in and receivables from these VIEs, which were approximately $899,000 and $508,000 at December 31, 2012 and 2011, respectively. The Partnership may be subject to additional losses to the extent of any financial support that the Partnership voluntarily provides in the future.

XML 48 R19.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 1 - Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)
12 Months Ended
Dec. 31, 2012
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 balances at December 31, 2012 and 2011 are maintained by an affiliated management company on behalf of affiliated entities in a cash concentration account.

XML 49 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 1 - Organization and Summary of Significant Accounting Policies: Use of Estimates (Policies)
12 Months Ended
Dec. 31, 2012
Policies  
Use of Estimates

 

Use of Estimates

 

The preparation of consolidated 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 consolidated financial statements and accompanying notes. Actual results could differ from those estimates.

XML 50 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 1 - Organization and Summary of Significant Accounting Policies: Basis of Presentation (Policies)
12 Months Ended
Dec. 31, 2012
Policies  
Basis of Presentation

Basis of Presentation

 

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States.

 

The Partnership’s management evaluated subsequent events through the time this Annual Report on Form 10-K was filed.

XML 51 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 1 - Organization and Summary of Significant Accounting Policies: Principles of Consolidation (Policies)
12 Months Ended
Dec. 31, 2012
Policies  
Principles of Consolidation

Principles of Consolidation

 

The consolidated financial statements include the accounts of REAL VI and its majority-owned general partnership Real Estate Associates III (“REA III”). All significant intercompany accounts and transactions have been eliminated in consolidation. Losses in excess of the minority interest in equity that would otherwise be attributed to the minority interest are being allocated to the Partnership.

XML 52 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 1 - Organization and Summary of Significant Accounting Policies: Method of Accounting For Investments in Local Limited Partnerships (Policies)
12 Months Ended
Dec. 31, 2012
Policies  
Method of Accounting For Investments in Local Limited 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.

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Note 1 - Organization and Summary of Significant Accounting Policies: Variable Interest Entities (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Number of Variable Interest Entities held by Partnership 5 9
Number of apartment properties held by VIEs 5  
Number of apartment units within VIEs 311  
Partnership's exposure to loss with respect to VIEs $ 899,000 $ 508,000
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Note 1 - Organization and Summary of Significant Accounting Policies: Segment Reporting (Policies)
12 Months Ended
Dec. 31, 2012
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.

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Note 2 - Investments in and Advances To Local Limited Partnerships: Condensed Combined Results of Operations of the Local Limited Partnerships (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
Condensed Combined Results of Operations of the Local Limited Partnerships

 

 

Condensed Combined Results of Operations of the Local Limited Partnerships

(in thousands)

 

 

 

Years Ended December 31,

 

2012

2012

2012

2011

2011

2011

 

Material Investee

Unaudited

Total

Material Investee

Unaudited

Total

Revenues:

 

 

 

 

 

 

  Rental and other

 $ 1,625

 $   964

 $ 2,589

 $ 1,482

 $ 1,008

$ 2,490

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

  Operating expenses

     794

     733

   1,527

     786

     630

  1,416

  Financial expenses

     148

     227

     375

     200

     220

    420

  Depreciation and amortization

     238

      82

     320

     237

      81

    318

    Total expenses

   1,180

   1,042

   2,222

   1,223

     931

  2,154

 

 

 

 

 

 

 

Income (loss) from continuing operations

$   445

$   (78)

 $   367

$   259

 $    77

 $   336

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Note 2 - Investments in and Advances To Local Limited Partnerships: Reconciliation of accumulated depreciation (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Material Investee
   
Accumulated Depreciation balance at beginning of year $ 5,635 $ 5,412
Depreciation 224 223
Accumulated Depreciation balance at end of year 5,859 5,635
Unaudited Investee
   
Accumulated Depreciation balance at beginning of year 5,316 5,216
Depreciation 76 100
Accumulated Depreciation, Depletion and Amortization, Sale or Disposal of Property, Plant and Equipment (639)  
Accumulated Depreciation balance at end of year 4,753 5,316
Total of Investees
   
Accumulated Depreciation balance at beginning of year 10,951 10,628
Depreciation 300 323
Accumulated Depreciation, Depletion and Amortization, Sale or Disposal of Property, Plant and Equipment (639)  
Accumulated Depreciation balance at end of year $ 10,612 $ 10,951
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Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Cash flows from operating activities:    
Net income $ 2,295 $ 295
Adjustments to reconcile net income to net cash used in operating activities:    
Gain on extinguishment of debt (1,891) 0
Distributions from sale of Local Limited Partnership properties recognized as income (212) 0
Advances to Local Limited Partnerships recognized as expense 4 0
Gain on sale of interests in Local Limited Partnerships 0 (401)
Recovery of advances to Local Limited Partnerships previously recognized as expense (196) (37)
Equity in income of Local Limited Partnership and amortization of acquisition costs (391) (224)
Change in accounts:    
Receivables - limited partners (117) (13)
Accounts payable and accrued expenses 87 (1)
Accrued interest payable 8 49
Taxes payable 30 14
Net cash used in operating activities (383) (318)
Cash flows from investing activities:    
Distributions from sale of Local Limited Partnership properties 212 0
Proceeds from sale of interests in Local Limited Partnerships 0 401
Advances to Local Limited Partnerships (4) 0
Recovery of advances to Local Limited Partnerships 196 37
Net cash provided by investing activities 404 438
Net increase in cash and cash equivalents 21 120
Cash and cash equivalents, beginning of period 1,452 1,332
Cash and cash equivalents, end of period $ 1,473 $ 1,452
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Note 5 - Income Taxes
12 Months Ended
Dec. 31, 2012
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,

 

2012

2011

 

(in thousands)

 

 

 

Net income per financial statements

$ 2,295

 $   295

Accrued interest

    --

      49

Gain on sale and extinguishment of debt

  (2,476)

   3,670

Other

     (40)

      17

  Partnership’s share of Local Limited Partnership

    (379)

   1,257

Net income (loss) per tax return

 $  (600)

$  5,288

 

 

 

Taxable income (loss) per limited partnership interest

 $   (70.69)

$ 588.86

 

 

 

 

The following is a reconciliation between the Partnership’s reported amounts and the Federal tax basis of net assets (in thousands):

 

December 31,

 

2012

2011

 

 

 

Net assets as reported

$  2,456

 $    161

Add (deduct):

 

 

Deferred offering costs

   4,976

    4,976

Investment in Local Limited Partnerships

   (6,262)

   (3,820)

Accrued interest

      --

    1,198

Other

      291

     (454)

Net equity – Federal tax basis

 $  1,461

 $  2,061

 

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, 2012 and 2011 the expense of approximately $165,000 and $120,000, respectively, related to this tax is reflected in tax expense in the accompanying consolidated statements of operations.

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Note 2 - Investments in and Advances To Local Limited Partnerships: Real Estate and Accumulated Depreciation of Local Limited Partnerships (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
Real Estate and Accumulated Depreciation of Local Limited 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, 2012

 

Description

Encumbrances

Land

Buildings and Related Personal Property

Total

Accumulated Depreciation

Date of Construction

Crockett Manor

 $   978

 $   87

$ 1,412

 $ 1,499

    $ 1,378

(A)

Hummelstown Manor

   1,614

     97

  1,832

   1,929

      1,800

1983

Kentucky Manor (B)

      --

     --

     --

      --

         --

(A)

Oakridge Park II

   1,095

     55

  1,739

   1,794

      1,575

(A)

Park Place

     916

    337

  8,128

   8,465

      5,859

1983-1984

Total

 $ 4,603

 $  576

$13,111

 $13,687

    $10,612

 

 

 

 

 

 

 

 

(A) This project was completed when REAL VI invested in the Local Limited Partnership.

(B) Financial information is unavailable for 2012.

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Note 2 - Investments in and Advances To Local Limited Partnerships: Condensed Combined Results of Operations of the Local Limited Partnerships (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Material Investee
   
Rental and other income $ 1,625 $ 1,482
Operating expenses 794 786
Financial expenses 148 200
Depreciation and amortization 238 237
Total expenses 1,180 1,223
Income (loss) from continuing operations 445 259
Unaudited Investee
   
Rental and other income 964 1,008
Operating expenses 733 630
Financial expenses 227 220
Depreciation and amortization 82 81
Total expenses 1,042 931
Income (loss) from continuing operations (78) 77
Total of Investees
   
Rental and other income 2,589 2,490
Operating expenses 1,527 1,416
Financial expenses 375 420
Depreciation and amortization 320 318
Total expenses 2,222 2,154
Income (loss) from continuing operations $ 367 $ 336
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Note 1 - Organization and Summary of Significant Accounting Policies: Impairment of Long-lived Assets (Policies)
12 Months Ended
Dec. 31, 2012
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, 2012 or 2011.