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NOTES AND INTEREST RECEIVABLE
 6 Months Ended
Jun. 30, 2015
Receivables [Abstract]  
NOTES AND INTEREST RECEIVABLE

NOTE 3. NOTES AND INTEREST RECEIVABLE

 

A portion of our assets are invested in mortgage notes receivable, principally secured by real estate. We may originate mortgage loans in conjunction with providing purchase money financing of property sales. Notes receivable are generally collateralized by real estate or interests in real estate and personal guarantees of the borrower and, unless noted otherwise, are so secured. Management intends to service and hold for investment the mortgage notes in our portfolio. A majority of the notes receivable provide for principal to be paid at maturity. Below is a summary of our notes receivable (dollars in thousands):

 

  Maturity  Interest      
Borrower  Date  Rate  Amount  Security
Performing loans:            
Foundation for Better Housing, Inc. (Overlook at Allensville) (1)   11/19   12.00%   2,472    Secured 
Foundation for Better Housing, Inc. (Overlook at Allensville) (1)   12/17   12.00%   1,408    Secured 
Foundation for Better Housing, Inc. (Vista Ridge) (1)   04/19   12.00%   3,923    Secured 
Foundation for Better Housing, Inc. (Vista Ridge) (1)   06/17   12.00%   1,492    Secured 
H198, LLC (Las Vegas Land)   01/20   12.00%   5,907    Secured 
Unified Housing Foundation, Inc. (Echo Station) (1)   09/17   12.00%   1,481    100% Interest in Unified Housing of Temple, LLC 
Unified Housing Foundation, Inc. (Lakeshore Villas) (1)   12/32   12.00%   2,000    Unsecured 
Unified Housing Foundation, Inc. (Lakeshore Villas) (1)   12/32   12.00%   6,363    Membership interest in Housing for Seniors of Humble, LLC 
Unified Housing Foundation, Inc. (Limestone Canyon) (1)   12/32   12.00%   4,663    100% Interest in Unified Housing of Austin, LLC 
Unified Housing Foundation, Inc. (Limestone Canyon) (1)   12/32   12.00%   3,057    100% Interest in Unified Housing of Austin, LLC 
Unified Housing Foundation, Inc. (Limestone Ranch) (1)   12/32   12.00%   6,000    100% Interest in Unified Housing of Vista Ridge, LLC 
Unified Housing Foundation, Inc. (Limestone Ranch) (1)   12/32   12.00%   2,250    100% Interest in Unified Housing of Vista Ridge, LLC 
Unified Housing Foundation, Inc. (Parkside Crossing) (1)   12/32   12.00%   1,936    100% Interest in Unified Housing of Parkside Crossing, LLC 
Unified Housing Foundation, Inc. (Sendero Ridge) (1)   12/32   12.00%   4,812    100% Interest in Unified Housing of Sendero Ridge, LLC 
Unified Housing Foundation, Inc. (Sendero Ridge) (1)   12/32   12.00%   5,174    100% Interest in Unified Housing of Sendero Ridge, LLC 
Unified Housing Foundation, Inc. (Timbers of Terrell) (1)   12/32   12.00%   1,323    100% Interest in Unified Housing of Terrell, LLC 
Unified Housing Foundation, Inc. (Tivoli) (1)   12/32   12.00%   7,966    100% Interest in Unified Housing of Tivoli, LLC 
Unified Housing Foundation, Inc. (1)   06/17   12.00%   1,261    Unsecured 
Unified Housing Foundation, Inc. (1)   12/17   12.00%   1,207    Unsecured 
Other related party notes (1)   Various   Various   768    Various secured interests 
Other related party notes (1)   Various   Various   4,929    Various unsecured interests 
Other non-related party notes   Various   Various   496    Various secured interests 
Other non-related party notes   Various   Various   503    Various unsecured interests 
Accrued interest            4,862      
Total Performing          $76,253      
                     
Non-Performing loans:                    
Other non-related party notes   Various    Various    507    Secured 
Accrued interest            97      
Total Non-Performing          $604      
                     
Allowance for doubtful accounts           (1,990)     
Total          $74,867      
                     
 (1)  Related party notes                    

 

Junior Mortgage Loans. We invest in junior mortgage loans, secured by mortgages that are subordinate to one or more prior liens either on the fee or a leasehold interest in real estate. Recourse on such loans ordinarily includes the real estate on which the loan is made, other collateral and guarantees.

 

At June 30, 2015, we had junior mortgage loans and accrued interest receivable from related parties, net of allowances, totaling $67.2 million. We recognized interest income of $4.9 million related to these notes receivables.

 

The Company has various notes receivable from Unified Housing Foundation, Inc. (“UHF”) and Foundation for Better Housing, Inc. (“FBH”). UHF and FBH are determined to be related parties due to our reliance upon the performance of the collateral secured under the notes receivable. Payments are due from surplus cash flow of operations of the properties. A sale or refinance of any of the properties underlying these notes will be used to repay outstanding interest and principal for the remaining notes for the specific borrower. These notes are cross-collateralized for the specific borrower, but to the extent cash is received from a specific UHF or FBH property, it is applied first against any outstanding interest for the related-property note. The allowance on the UHF notes was a purchase allowance that was netted against the notes when acquired.