Note C - Transactions With Affiliated Parties

9 Months Ended

Sep. 30, 2013

Notes

Note C - Transactions With Affiliated Parties

Note C – Transactions with Affiliated Parties

The Partnership has no employees and depends on the Managing General Partner and its affiliates for the management and administration of all Partnership activities. The Partnership Agreement provides for certain payments to affiliates for services and as reimbursement of certain expenses incurred by affiliates on behalf of the Partnership.

Affiliates of the Managing General Partner received 5% of gross receipts from the Partnership’s property as compensation for providing property management services.  The Partnership paid to such affiliates approximately $125,000 and $136,000 for the period from January 1 through August 31, 2013 and the nine months ended September 30, 2012, respectively, which are included in operating expenses.

Affiliates of the Managing General Partner charged the Partnership for reimbursement of accountable administrative expenses amounting to approximately $46,000 and $63,000 for the period from January 1 through August 31, 2013 and the nine months ended September 30, 2012, respectively, which are included in general and administrative expenses and gain from sale of discontinued operations.

Pursuant to the Partnership Agreement, for managing the affairs of the Partnership, the Managing General Partner is entitled to receive a Partnership management incentive allocation equal to 10% of the Partnership's adjusted cash from operations as distributed.  No incentive was paid during the period from January 1 through August 31, 2013 and the nine months ended September 30, 2012 as no cash from operations was distributed.

AIMCO Properties, L.P., an affiliate of the Managing General Partner, had made available to the Partnership a credit line of up to $150,000 per property owned by the Partnership. Advances under the credit line were unsecured and accrued interest at the prime rate plus 2% per annum.  During the nine months ended September 30, 2012, AIMCO Properties, L.P., advanced the Partnership approximately $50,000 to fund operating expenses at Wood Creek Apartments and Partnership expenses.  There were no such advances to the Partnership during the period from January 1 through August 31, 2013.  Interest expense on the outstanding advance balance amounted to approximately  $5,000 for both the periods from January 1 through August 31, 2013 and the nine months ended September 30, 2012.  During the period from January 1 to August 31, 2013 the Partnership repaid approximately $153,000 of the outstanding advances and accrued interest. At December 31, 2012, the amount of the outstanding advances and accrued interest was approximately $148,000 and was included in due to affiliates. At August 31, 2013 and September 30, 2013, there were no advances or associated accrued interest due to AIMCO Properties, L.P.

The Partnership insured its property up to certain limits through coverage provided by Aimco which is generally self-insured for a portion of losses and liabilities related to workers’ compensation, property casualty, general liability and vehicle liability. The Partnership insured its property above the Aimco limits through insurance policies obtained by Aimco from insurers unaffiliated with the Managing General Partner.  During the period from January 1 through August 31, 2013, the Partnership was charged by Aimco and its affiliates approximately $18,000 for hazard insurance coverage and fees associated with policy claims administration.  The Partnership was charged by Aimco and its affiliates approximately $44,000 for insurance coverage and fees associated with policy claims administration during the year ended December 31, 2012.