10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2011

OR

o 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 1-13232

Apartment Investment and Management Company

(Exact name of registrant as specified in its charter)

Maryland	84-1259577
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
4582 South Ulster Street Parkway, Suite 1100
Denver, Colorado	80237
(Address of principal executive offices)	(Zip Code)

(303) 757-8101
(Registrant’s telephone number, including area code)

Not Applicable
(Former name, former address, and former fiscal year, if changed since last report)

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 þ No o

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). Yes þ No o

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. (Check one):

Large accelerated filer þ	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o
		(Do not check if a smaller reporting company)

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

The number of shares of Class A Common Stock outstanding as of July 27, 2011: 120,802,584

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

TABLE OF CONTENTS

FORM 10-Q

	Page
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
Condensed Consolidated Balance Sheets as of June 30, 2011 and December 31, 2010 (Unaudited)		2
Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2011 and 2010 (Unaudited)		3
Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2011 and 2010 (Unaudited)		4
Notes to Condensed Consolidated Financial Statements (Unaudited)		5
ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		20
ITEM 3. Quantitative and Qualitative Disclosures About Market Risk		37
ITEM 4. Controls and Procedures		37
PART II. OTHER INFORMATION
ITEM 1A. Risk Factors		37
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds		37
ITEM 6. Exhibits		38
Signatures		39
Exhibit 10.1
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2
Exhibit 99.1
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT

1

PART I. FINANCIAL INFORMATION

ITEM 1. Financial Statements

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
(Unaudited)

	June 30,			December 31,
	2011			2010
ASSETS
Buildings and improvements	$	6,993,515		$	7,100,012
Land		2,107,082			2,108,349
Total real estate		9,100,597			9,208,361
Less accumulated depreciation		(2,837,896	)		(2,821,935	)
Net real estate ($817,297 and $846,081 related to VIEs)		6,262,701			6,386,426
Cash and cash equivalents ($35,430 and $34,808 related to VIEs)		85,324			111,325
Restricted cash ($50,373 and $55,076 related to VIEs)		196,426			200,503
Accounts receivable, net ($10,238 and $8,393 related to VIEs)		41,293			49,855
Accounts receivable from affiliates, net		5,179			8,392
Deferred financing costs, net		46,984			46,953
Notes receivable from unconsolidated real estate partnerships, net		10,209			10,896
Notes receivable from non-affiliates, net		117,078			116,726
Investment in unconsolidated real estate partnerships ($48,748 and $54,374 related to VIEs)		74,349			59,282
Other assets		239,797			180,596
Deferred income tax assets, net		61,919			58,736
Assets held for sale		23,713			148,876
Total assets	$	7,164,972		$	7,378,566
LIABILITIES AND EQUITY
Non-recourse property tax-exempt bond financing ($225,837 and $209,550 related to VIEs)	$	434,536		$	511,811
Non-recourse property loans payable ($417,669 and $428,417 related to VIEs)		4,872,614			4,833,938
Revolving credit facility borrowings		21,500			—
Other borrowings ($13,294 and $15,486 related to VIEs)		40,974			47,018
Total indebtedness		5,369,624			5,392,767
Accounts payable		25,988			27,322
Accrued liabilities and other ($66,162 and $79,170 related to VIEs)		228,396			250,103
Deferred income		147,082			150,577
Security deposits		34,982			34,308
Liabilities related to assets held for sale		24,177			113,289
Total liabilities		5,830,249			5,968,366
Preferred noncontrolling interests in Aimco Operating Partnership		83,387			83,428
Preferred stock subject to repurchase agreement		10,000			20,000
Commitments and contingencies (Note 5)		—			—
Equity:
Perpetual Preferred Stock		657,601			657,601
Class A Common Stock, $0.01 par value, 485,687,260 and 422,157,736 shares authorized, 120,477,521 and 117,642,872 shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively		1,205			1,176
Additional paid-in capital		3,095,994			3,070,296
Accumulated other comprehensive loss		(1,147	)		(2,076	)
Distributions in excess of earnings		(2,774,353	)		(2,680,955	)
Total Aimco equity		979,300			1,046,042
Noncontrolling interests in consolidated real estate partnerships		289,865			291,458
Common noncontrolling interests in Aimco Operating Partnership		(27,829	)		(30,728	)
Total equity		1,241,336			1,306,772
Total liabilities and equity	$	7,164,972		$	7,378,566

See notes to condensed consolidated financial statements.

2

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
REVENUES:
Rental and other property revenues	$	273,384		$	266,728		$	545,176		$	533,332
Asset management and tax credit revenues		7,651			9,796			16,887			14,497
Total revenues		281,035			276,524			562,063			547,829
OPERATING EXPENSES:
Property operating expenses		117,379			123,126			240,908			250,266
Investment management expenses		2,187			5,141			5,219			8,370
Depreciation and amortization		94,084			102,809			193,117			206,092
General and administrative expenses		12,372			15,184			23,498			26,919
Other expenses (income), net		5,222			(4,485	)		9,156			(2,148	)
Total operating expenses		231,244			241,775			471,898			489,499
Operating income		49,791			34,749			90,165			58,330
Interest income		2,254			1,909			4,502			5,080
(Provision for) recovery of losses on notes receivable, net		(36	)		148			(53	)		(278	)
Interest expense		(96,716	)		(76,203	)		(171,805	)		(152,579	)
Equity in (losses) earnings of unconsolidated real estate partnerships		(1,798	)		(5,295	)		(3,446	)		3,853
Gain on dispositions of unconsolidated real estate and other		808			3,041			2,021			4,485
Loss before income taxes and discontinued operations		(45,697	)		(41,651	)		(78,616	)		(81,109	)
Income tax benefit		2,257			3,385			4,765			7,151
Loss from continuing operations		(43,440	)		(38,266	)		(73,851	)		(73,958	)
Income from discontinued operations, net		16,469			28,096			19,603			47,028
Net loss		(26,971	)		(10,170	)		(54,248	)		(26,930	)
Noncontrolling interests:
Net loss (income) attributable to noncontrolling interests in consolidated real estate partnerships		2,771			2,716			10,076			(9,418	)
Net income attributable to preferred noncontrolling interests in Aimco Operating Partnership		(1,671	)		(1,683	)		(3,342	)		(3,376	)
Net loss attributable to common noncontrolling interests in Aimco Operating Partnership		2,420			1,312			4,803			4,381
Total noncontrolling interests		3,520			2,345			11,537			(8,413	)
Net loss attributable to Aimco		(23,451	)		(7,825	)		(42,711	)		(35,343	)
Net income attributable to Aimco preferred stockholders		(9,672	)		(10,128	)		(22,128	)		(23,050	)
Net income attributable to participating securities		(54	)		(42	)		(111	)		—
Net loss attributable to Aimco common stockholders	$	(33,177	)	$	(17,995	)	$	(64,950	)	$	(58,393	)
Earnings (loss) attributable to Aimco per common share — basic and diluted (Note 6):
Loss from continuing operations attributable to Aimco common stockholders	$	(0.35	)	$	(0.33	)	$	(0.66	)	$	(0.75	)
Income from discontinued operations attributable to Aimco common stockholders		0.07			0.18			0.11			0.25
Net loss attributable to Aimco common stockholders	$	(0.28	)	$	(0.15	)	$	(0.55	)	$	(0.50	)
Weighted average common shares outstanding, basic and diluted		119,156			116,323			118,238			116,179
Dividends declared per common share	$	0.12		$	0.10		$	0.24		$	0.10

See notes to condensed consolidated financial statements.

3

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

	Six Months Ended
	June 30,
	2011			2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(54,248	)	$	(26,930	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization		193,117			206,092
Equity in losses (earnings) of unconsolidated real estate partnerships		3,446			(3,853	)
Gain on dispositions of unconsolidated real estate and other		(2,021	)		(4,485	)
Discontinued operations		(16,641	)		(33,424	)
Other adjustments		9,063			2,090
Net changes in operating assets and operating liabilities		(37,508	)		(28,527	)
Net cash provided by operating activities		95,208			110,963
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(61,849	)		(79,023	)
Proceeds from dispositions of real estate		87,313			107,163
Purchases of interests in unconsolidated real estate and corporate assets		(28,714	)		(3,291	)
Purchase of investment in debt securities (Note 4)		(51,534	)		—
Originations of notes receivable from unconsolidated real estate partnerships		(411	)		(733	)
Proceeds from repayment of notes receivable		6,264			1,650
Proceeds from sale of interests in and distributions from real estate partnerships		3,303			9,132
Net increase in cash from consolidation and deconsolidation of entities		—			13,118
Other investing activities		12,090			8,341
Net cash (used in) provided by investing activities		(33,538	)		56,357
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from property loans		662,601			125,491
Principal repayments on property loans		(647,719	)		(124,794	)
Principal repayments on tax-exempt bond financing		(98,447	)		(31,061	)
Payments on term loans		—			(65,000	)
Net borrowings on revolving credit facility		21,500			—
Repurchases of preferred stock		(7,000	)		(7,000	)
Proceeds from issuance of Common Stock		60,973			—
Proceeds from Class A Common Stock option exercises		1,806			1,806
Payment of dividends to holders of preferred stock		(24,877	)		(25,829	)
Payment of dividends to holders of Class A Common Stock		(28,577	)		(23,334	)
Payment of distributions to noncontrolling interests		(21,973	)		(28,623	)
Other financing activities		(5,958	)		8,082
Net cash used in financing activities		(87,671	)		(170,262	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(26,001	)		(2,942	)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		111,325			81,260
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	85,324		$	78,318

See notes to condensed consolidated financial statements.

4

APARTMENT INVESTMENT AND MANAGEMENT COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2011
(Unaudited)

NOTE 1 — Organization

Apartment Investment and Management Company, or Aimco, is a Maryland corporation incorporated on January 10, 1994. We are a self-administered and self-managed real estate investment trust, or REIT. Our principal financial objective is to provide predictable and attractive returns to our stockholders. Our business plan to achieve this objective is to:

• own and operate a broadly diversified portfolio of primarily class “B/B+” assets (defined below) with properties concentrated in the 20 largest markets in the United States (as measured by total apartment value, which is the estimated total market value of apartment properties in a particular market);

• improve our portfolio by selling assets with lower projected returns and reinvesting those proceeds through the purchase of new assets or additional investment in existing assets in our portfolio, including increased ownership or redevelopment; and

• provide financial leverage primarily by the use of non-recourse, long-dated, fixed-rate property debt and perpetual preferred equity.

As of June 30, 2011, we:

• owned an equity interest in 215 conventional real estate properties with 67,049 units;

• owned an equity interest in 205 affordable real estate properties with 24,406 units; and

• provided services for, or managed, 13,921 units in 187 properties, primarily pursuant to long-term asset management agreements. In certain cases, we may indirectly own generally less than one percent of the operations of such properties through a syndication or other fund.

Of these properties, we consolidated 209 conventional properties with 65,603 units and 163 affordable properties with 20,235 units. These conventional and affordable properties generated 87% and 13%, respectively, of our proportionate property net operating income (as defined in Note 7) during the six months ended June 30, 2011. During the six months ended June 30, 2011, as part of our ongoing effort to simplify our business, we resigned from our role providing asset or property management services for approximately 100 properties with approximately 11,400 units.

For conventional assets, we focus on the ownership of primarily B/B+ assets. We measure conventional property asset quality based on average rents of our units compared to local market average rents as reported by a third-party provider of commercial real estate performance and analysis, with A-quality assets earning rents greater than 125% of local market average, B-quality assets earning rents 90% to 125% of local market average and C-quality assets earning rents less than 90% of local market average. We classify as B/B+ those assets earning rents ranging from 100% to 125% of local market average. Although some companies and analysts within the multifamily real estate industry use asset class ratings of A, B and C, some of which are tied to local market rent averages, the metrics used to classify asset quality as well as the timing for which local markets rents are calculated may vary from company to company. Accordingly, our rating system for measuring asset quality is neither broadly nor consistently used in the multifamily real estate industry.

Through our wholly-owned subsidiaries, AIMCO-GP, Inc. and AIMCO-LP Trust, we own a majority of the ownership interests in AIMCO Properties, L.P., which we refer to as the Aimco Operating Partnership. As of June 30, 2011, we held an interest of approximately 94% in the common partnership units and equivalents of the Aimco Operating Partnership. We conduct substantially all of our business and own substantially all of our assets through the Aimco Operating Partnership. Interests in the Aimco Operating Partnership that are held by limited partners other than Aimco are referred to as “OP Units.” OP Units include common partnership units, high performance partnership units and partnership preferred units, which we refer to as common OP Units, High Performance Units and preferred OP Units, respectively. At June 30, 2011, after elimination of shares held by consolidated subsidiaries, 120,477,521 shares of our Common Stock were outstanding and the Aimco Operating Partnership had 8,346,803 common OP Units and equivalents outstanding for a combined total of 128,824,324 shares of Common Stock, common OP Units and equivalents outstanding.

Except as the context otherwise requires, “we,” “our,” “us” and the “Company” refer to Aimco, the Aimco Operating Partnership and their consolidated entities, collectively.

5

NOTE 2 — Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2011, are not necessarily indicative of the results that may be expected for the year ending December 31, 2011.

The balance sheet at December 31, 2010, has been derived from the audited financial statements at that date, but does not include all of the information and disclosures required by GAAP for complete financial statements. For further information, refer to the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2010. Certain 2010 financial statement amounts have been reclassified to conform to the 2011 presentation, including adjustments for discontinued operations.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of Aimco, the Aimco Operating Partnership, and their consolidated entities. We consolidate all variable interest entities for which we are the primary beneficiary. Generally, we consolidate real estate partnerships and other entities that are not variable interest entities when we own, directly or indirectly, a majority voting interest in the entity or are otherwise able to control the entity. All significant intercompany balances and transactions have been eliminated in consolidation.

Interests in the Aimco Operating Partnership that are held by limited partners other than Aimco are reflected in the accompanying balance sheets as noncontrolling interests in Aimco Operating Partnership. Interests in partnerships consolidated into the Aimco Operating Partnership that are held by third parties are reflected in the accompanying balance sheets as noncontrolling interests in consolidated real estate partnerships. The assets of consolidated real estate partnerships owned or controlled by us generally are not available to pay creditors of Aimco or the Aimco Operating Partnership.

As used herein, and except where the context otherwise requires, “partnership” refers to a limited partnership or a limited liability company and “partner” refers to a partner in a limited partnership or a member in a limited liability company.

Variable Interest Entities

We consolidate all variable interest entities for which we are 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.

In determining whether we are the primary beneficiary of a VIE, we consider 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 our investment; the obligation or likelihood for us or other investors to provide financial support; and the similarity with and significance to the business activities of us 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.

As of June 30, 2011, we were the primary beneficiary of, and therefore consolidated, approximately 125 VIEs, which owned 84 apartment properties with 12,982 units. Real estate with a carrying value of $817.3 million collateralized $643.5 million of debt of those VIEs. Any significant amounts of assets and liabilities related to our consolidated VIEs are identified parenthetically on our accompanying condensed consolidated balance sheets. The creditors of the consolidated VIEs do not have recourse to our general credit.

6

As of June 30, 2011, we also held variable interests in 244 VIEs for which we were not the primary beneficiary. Those VIEs consist primarily of partnerships that are engaged, directly or indirectly, in the ownership and management of 297 apartment properties with 18,606 units. We are involved with those VIEs as an equity holder, lender, management agent, or through other contractual relationships. The majority of our investments in unconsolidated VIEs, or approximately $42.8 million at June 30, 2011, are held through consolidated investment partnerships that are VIEs and in which we generally hold a 1% or less general partner or equivalent interest. Accordingly, substantially all of the investment balances related to these unconsolidated VIEs are attributed to the noncontrolling interests in the consolidated investment partnerships that hold the investments in these unconsolidated VIEs. Our maximum risk of loss related to our investment in these VIEs is generally limited to our equity interest in the consolidated investment partnerships, which is insignificant. The remainder of our investment in unconsolidated VIEs, or approximately $5.9 million at June 30, 2011, is held through consolidated tax credit funds that are VIEs and in which we hold substantially all of the economic interests. Our maximum risk of loss related to our investment in these VIEs is limited to our $5.9 million recorded investment in such entities.

In addition to our investments in unconsolidated VIEs discussed above, at June 30, 2011, we had in aggregate $99.8 million of receivables from these unconsolidated VIEs and we had a contractual obligation to advance funds to certain unconsolidated VIEs totaling $3.4 million. Our maximum risk of loss associated with our lending and management activities related to these unconsolidated VIEs is limited to these amounts. We may be subject to additional losses to the extent of any receivables relating to future provision of services to these entities or financial support that we voluntarily provide.

As discussed in Note 5, noncompliance with applicable requirements related to our consolidated and unconsolidated tax credit partnerships, substantially all of which are VIEs, could result in projected tax credits not being realized and require a refund of investor contributions already received or a reduction of future investor contributions. We have not historically had, nor do we anticipate, any material refunds or reductions of investor capital contributions in connection with these arrangements.

Notes Receivable

Notes receivable from unconsolidated real estate partnerships and from non-affiliates represent our two portfolio segments (as defined in FASB ASC Topic 310) that we use to evaluate for potential loan loss. Notes receivable from unconsolidated real estate partnerships consist primarily of notes receivable from partnerships in which we are the general partner but do not consolidate the partnership. These loans are typically due on demand, have no stated maturity date and may not require current payments of principal or interest. Notes receivable from non-affiliates have stated maturity dates and may require current payments of principal and interest. Repayment of our notes is subject to a number of variables, including the performance and value of the underlying real estate properties and the claims of unaffiliated mortgage lenders, which are generally senior to our claims. Our notes receivable consist of two classes: loans extended by us that we carry at the face amount plus accrued interest, which we refer to as “par value notes”; and loans extended by predecessors whose positions we generally acquired at a discount, which we refer to as “discounted notes.”

We record interest income on par value notes as earned in accordance with the terms of the related loan agreements. We discontinue the accrual of interest on such notes when the notes are impaired, as discussed below, or when there is otherwise significant uncertainty as to the collection of interest. We record income on such nonaccrual loans using the cost recovery method, under which we apply cash receipts first to the recorded amount of the loan; thereafter, any additional receipts are recognized as income.

We recognize interest income on discounted notes receivable based upon whether the amount and timing of collections are both probable and reasonably estimable. We consider collections to be probable and reasonably estimable when the borrower has closed or entered into certain pending transactions (which include real estate sales, refinancings, foreclosures and rights offerings) that provide a reliable source of repayment. In such instances, we recognize accretion income, on a prospective basis using the effective interest method over the estimated remaining term of the notes, equal to the difference between the carrying amount of the discounted notes and the estimated collectible value. We record income on all other discounted notes using the cost recovery method.

7

We assess the collectibility of notes receivable on a periodic basis, which assessment consists primarily of an evaluation of cash flow projections of the borrower to determine whether estimated cash flows are sufficient to repay principal and interest in accordance with the contractual terms of the note. We update our cash flow projections of the borrowers annually, and more frequently for certain loans depending on facts and circumstances. We recognize provisions for losses on notes receivable when it is probable that principal and interest will not be received in accordance with the contractual terms of the loan. Factors that affect this assessment include the fair value of the partnership’s real estate, pending transactions to refinance the partnership’s senior obligations or sell the partnership’s real estate, and market conditions (current and forecasted) related to a particular asset. The amount of the provision to be recognized generally is based on the fair value of the partnership’s real estate that represents the primary source of loan repayment. In certain instances where other sources of cash flow are available to repay the loan, the provision is measured by discounting the estimated cash flows at the loan’s original effective interest rate.

The following table summarizes our notes receivable as of June 30, 2011 and December 31, 2010 (in thousands):

	June 30, 2011								December 31, 2010
	Unconsolidated								Unconsolidated
	Real Estate			Non-					Real Estate			Non-
	Partnerships			Affiliates		Total			Partnerships			Affiliates		Total
Par value notes	$	10,081		$	19,572	$	29,653		$	10,821		$	17,899	$	28,720
Discounted notes		1,011			97,506		98,517			980			98,827		99,807
Allowance for loan losses		(883	)		—		(883	)		(905	)		—		(905	)
Total notes receivable	$	10,209		$	117,078	$	127,287		$	10,896		$	116,726	$	127,622
Face value of discounted notes	$	31,448		$	106,466	$	137,914		$	31,755		$	108,621	$	140,376

Notes receivable from unconsolidated real estate partnerships are generally unsecured and have various annual interest rates ranging between 4.3% and 12.0% and averaging 9.8%. Notes receivable from non-affiliates have various annual interest rates ranging between 2.1% and 8.8% and averaging 4.1%. Included in the notes receivable from non-affiliates at June 30, 2011 and December 31, 2010 are $99.9 million and $103.9 million, respectively, in notes that were secured by interests in real estate or interests in real estate partnerships.

During the six months ended June 30, 2011, there have been no significant changes in the allowance for loan losses related to our notes receivable from unconsolidated real estate partnerships and non-affiliates. Additionally, there have been no significant changes related to the carrying amounts, our average recorded investment in or unpaid principal balances for impaired loans. During the three and six months ended June 30, 2011 and 2010, we did not recognize any significant amounts of interest income related to impaired or non-impaired notes receivable.

8

We recognize interest income as earned on the $28.5 million of our par value notes receivable at June 30, 2011 that are estimated to be collectible and have not been impaired. Of our total par value notes outstanding at June 30, 2011, notes with balances of $18.9 million have stated maturity dates and the remainder have no stated maturity date and are governed by the terms of the partnership agreements pursuant to which the loans were extended. At June 30, 2011, none of the par value notes with stated maturity dates were past due.

Equity (including Noncontrolling Interests)

The following table presents a reconciliation of our consolidated temporary equity accounts from December 31, 2010 to June 30, 2011 (in thousands):

	Preferred
	noncontrolling			Preferred stock
	interests in Aimco			subject to
	Operating			repurchase
	Partnership			agreement
Balance, December 31, 2010	$	83,428		$	20,000
Preferred distributions		(3,342	)		—
Redemption of preferred units		(41	)		—
Repurchase of preferred shares		—			(10,000	)
Net income		3,342			—
Balance, June 30, 2011	$	83,387		$	10,000

The following table presents a reconciliation of our consolidated permanent equity accounts from December 31, 2010 to June 30, 2011(in thousands):

				Noncontrolling			Common
				interests in			noncontrolling
				consolidated real			interests in
	Aimco			estate			Aimco Operating			Total
	Equity			partnerships			Partnership			Equity
Balance, December 31, 2010	$	1,046,042		$	291,458		$	(30,728	)	$	1,306,772
Contributions		—			11,121			—			11,121
Issuance of common stock		60,973			—			—			60,973
Discount on repurchase of preferred shares		3,000			—			—			3,000
Preferred stock dividends		(24,877	)		—			—			(24,877	)
Common dividends and distributions		(28,577	)		(16,606	)		(2,022	)		(47,205	)
Repurchases of common units		—			—			350			350
Amortization of stock based compensation cost		3,557			—			—			3,557
Stock option exercises		1,806			—			—			1,806
Effect of changes in ownership for consolidated entities (Note 4)		(41,112	)		14,124			9,454			(17,534	)
Change in accumulated other comprehensive loss		929			(103	)		(80	)		746
Other		270			(53	)		—			217
Net loss		(42,711	)		(10,076	)		(4,803	)		(57,590	)
Balance, June 30, 2011	$	979,300		$	289,865		$	(27,829	)	$	1,241,336

Derivative Financial Instruments

We have limited exposure to derivative financial instruments. We are contractually obligated on certain of our variable rate debt to limit our exposure to interest rate fluctuations, and we do so by entering into interest rate swap agreements. We primarily use long-term, fixed-rate and self-amortizing non-recourse debt to avoid, among other things, risk related to fluctuating interest rates. For our variable rate debt, we are sometimes required by our lenders to limit our exposure to interest rate fluctuations by entering into interest rate swap agreements, which moderate our exposure to interest rate risk by effectively converting the interest on variable rate debt to a fixed rate. The fair values of the interest rate swaps are reflected as assets or liabilities in the balance sheet, and periodic changes in fair value are included in interest expense or equity, as appropriate.

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At June 30, 2011 and December 31, 2010, we had interest rate swaps with aggregate notional amounts of $52.3 million, and recorded fair values of $3.6 million and $2.7 million, respectively, reflected in accrued liabilities and other in our condensed consolidated balance sheets. At June 30, 2011, these interest rate swaps had a weighted average term of 9.6 years. We have designated these interest rate swaps as cash flow hedges and recognize any changes in their fair value as an adjustment of accumulated other comprehensive loss within equity to the extent of their effectiveness. Changes in the fair value of these instruments and the related amounts of such changes that were reflected as an adjustment of accumulated other comprehensive loss within equity and as an adjustment of earnings (ineffectiveness) are discussed in the Fair Value Measurements section below.

If the forward rates at June 30, 2011 remain constant, we estimate that during the next twelve months, we would reclassify into earnings approximately $1.6 million of the unrealized losses in accumulated other comprehensive loss. If market interest rates increase above the 3.43% weighted average fixed rate under these interest rate swaps we will benefit from a lower effective rate than the underlying variable rates on this debt.

We have entered into total rate of return swaps on various fixed-rate property debt to convert these borrowings from a fixed rate to a variable rate and provide an efficient financing product to lower our cost of borrowing. In exchange for our receipt of a fixed rate generally equal to the underlying borrowing’s interest rate, the total rate of return swaps require that we pay a variable rate, equivalent to one of several indices, plus a risk spread. The underlying borrowings are generally callable at our option, with no prepayment penalty, with 30 days advance notice, and the swaps mature in 2012.

We designate total rate of return swaps as hedges of the risk of overall changes in the fair value of the underlying borrowings. At each reporting period, we estimate the fair value of these borrowings and the total rate of return swaps and recognize any changes therein as an adjustment of interest expense.

As of June 30, 2011 and December 31, 2010, we had borrowings payable subject to total rate of return swaps with aggregate outstanding principal balances of $164.3 million and $276.9 million, respectively. We reduced by $112.0 million the amount of debt subject to certain total rate of return swaps and terminated the associated swaps during the six months ended June 30, 2011, in connection with our refinancing of the underlying debt. We repaid the debt subject to the swaps at par and, accordingly, no payments were required upon termination of the swaps. The remaining reduction in the outstanding principal balance during the six months ended June 30, 2011 was due to other principal amortization. At June 30, 2011, the weighted average fixed receive rate under the total return swaps was 6.4% and the weighted average variable pay rate was 1.6%, based on the applicable index rates effective as of that date. Information related to the fair value of these instruments at June 30, 2011 and December 31, 2010, is discussed in the Fair Value Measurements section below.

Fair Value Measurements

We measure certain assets and liabilities in our consolidated financial statements at fair value, both on a recurring and nonrecurring basis. Certain of these fair value measurements are based on significant unobservable inputs classified within Level 3 of the valuation hierarchy defined in FASB ASC Topic 820. When a determination is made to classify a fair value measurement within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, Level 3 fair value measurements typically also include observable components that can be validated to observable external sources; accordingly, the changes in fair value in the table below are due in part to observable factors that are part of the valuation methodology.

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The table below presents information regarding significant items measured in our condensed consolidated financial statements at fair value on a recurring basis, consisting of investments in securities classified as available for sale (AFS), interest rate swaps (IR swaps), total rate of return swaps (TRR swaps) and debt subject to TRR swaps (TRR debt) (in thousands):

	Level 2					Level 3
			IR			TRR			TRR
	AFS (1)		swaps (2)			swaps (3)			debt (4)			Total
Fair value at December 31, 2009	$	—	$	(1,596	)	$	(24,307	)	$	24,307		$	(1,596	)
Unrealized gains (losses) included in earnings (5)		—		(23	)		907			(907	)		(23	)
Realized gains (losses) included in earnings		—		—			—			—			—
Unrealized gains (losses) included in equity		—		(2,006	)		—			—			(2,006	)
Fair value at June 30, 2010	$	—	$	(3,625	)	$	(23,400	)	$	23,400		$	(3,625	)
Fair value at December 31, 2010	$	—	$	(2,746	)	$	(19,542	)	$	19,542		$	(2,746	)
Purchases		51,534		—			—			—			51,534
Investment accretion (see Note 4)		269		—			—			—			269
Unrealized gains (losses) included in earnings (5)		—		(24	)		8,547			(8,547	)		(24	)
Realized gains (losses) included in earnings		—		—			—			—			—
Unrealized gains (losses) included in equity		1,573		(827	)		—			—			746
Fair value at June 30, 2011	$	53,376	$	(3,597	)	$	(10,995	)	$	10,995		$	49,779

(1)	The fair value of investments classified as available for sale is estimated using an income and market approach with primarily observable inputs, including information yields and other information regarding similar types of investments, and adjusted for certain unobservable inputs specific to these investments. The discount to the face value of the investments is accreted into interest income over the expected term of the investments. The amortized cost of these investments was $51.8 million at June 30, 2011. Refer to Note 4 for further discussion of these investments.
(2)	The fair value of interest rate swaps is estimated using an income approach with primarily observable inputs including information regarding the hedged variable cash flows and forward yield curves relating to the variable interest rates on which the hedged cash flows are based.
(3)	Total rate of return swaps have contractually-defined termination values generally equal to the difference between the fair value and the counterparty’s purchased value of the underlying borrowings. We calculate the termination value, which we believe is representative of the fair value, of total rate of return swaps using a market approach by reference to estimates of the fair value of the underlying borrowings, which are discussed below, and an evaluation of potential changes in the credit quality of the counterparties to these arrangements.
(4)	This represents changes in fair value of debt subject to our total rate of return swaps. We estimate the fair value of debt instruments using an income and market approach, including comparison of the contractual terms to observable and unobservable inputs such as market interest rate risk spreads, collateral quality and loan-to-value ratios on similarly encumbered assets within our portfolio. These borrowings are collateralized and non-recourse to us; therefore, we believe changes in our credit rating will not materially affect a market participant’s estimate of the borrowings’ fair value.
(5)	Unrealized gains (losses) relate to periodic revaluations of fair value, including revaluations resulting from repayment of the debt at par, and have not resulted from the settlement of a swap position as we have not historically incurred any termination payments upon settlement. These unrealized gains (losses) are included in interest expense in the accompanying condensed consolidated statements of operations.

The table below presents information regarding amounts measured at fair value in our condensed consolidated financial statements on a nonrecurring basis during the six months ended June 30, 2011 and 2010, all of which were based, in part, on significant unobservable inputs classified within Level 3 of the valuation hierarchy (in thousands):

	Six Months Ended					Six Months Ended
	June 30, 2011					June 30, 2010
	Fair value		Total			Fair value		Total
	measurement		gain (loss)			measurement		gain (loss)
Real estate (impairment losses) (1)(3)	$	49,114	$	(7,390	)	$	29,050	$	(6,883	)
Real estate (newly consolidated) (2)(3)		—		—			117,083		236
Property debt (newly consolidated) (2)(4)		—		—			83,890		—

(1) During the six months ended June 30, 2011 and 2010, we reduced the aggregate carrying amounts of $56.5 million and $35.9 million, respectively, for real estate assets classified as held for sale to their estimated fair value, less estimated costs to sell. These impairment losses recognized generally resulted from a reduction in the estimated holding period for these assets. In periods prior to their classification as held for sale, we evaluated the recoverability of their carrying amounts based on an analysis of the undiscounted cash flows over the anticipated expected holding period.

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(2)	In connection with our adoption of revised accounting guidance regarding consolidation of VIEs and reconsideration events during the six months ended June 30, 2010, we consolidated 17 partnerships at fair value. With the exception of such partnerships’ investments in real estate properties and related non-recourse property debt obligations, we determined the carrying amounts of the related assets and liabilities approximated their fair values. The difference between our recorded investments in such partnerships and the fair value of the assets and liabilities recognized in consolidation resulted in an adjustment of consolidated equity (allocated between Aimco and noncontrolling interests) for those partnerships consolidated in connection with our adoption of the revised accounting guidance for VIEs. For the partnerships we consolidated at fair value due to reconsideration events during the six months ended June 30, 2010, the difference between our recorded investments in such partnerships and the fair value of the assets, liabilities and noncontrolling interests recognized upon consolidation resulted in our recognition of a gain, which is included in gain on disposition of unconsolidated real estate and other in our condensed consolidated statement of operations for the six months ended June 30, 2010.
(3)	We estimate the fair value of real estate using income and market valuation techniques using information such as broker estimates, purchase prices for recent transactions on comparable assets and net operating income capitalization analyses using observable and unobservable inputs such as capitalization rates, asset quality grading, geographic location analysis, and local supply and demand observations.
(4)	Refer to the recurring fair value measurements table for an explanation of the valuation techniques we use to estimate the fair value of debt.

We believe that the aggregate fair value of our cash and cash equivalents, receivables, payables and short-term secured debt approximates their aggregate carrying amounts at June 30, 2011 and December 31, 2010, due to their relatively short-term nature and high probability of realization. We estimate fair value for our notes receivable and debt instruments using present value techniques that include income and market valuation approaches using observable inputs such as market rates for debt with the same or similar terms and unobservable inputs such as collateral quality and loan-to-value ratios on similarly encumbered assets. Because of the significance of unobservable inputs to these fair value measurements, we classify them within Level 3 of the fair value hierarchy. Present value calculations vary depending on the assumptions used, including the discount rate and estimates of future cash flows. In many cases, the fair value estimates may not be realizable in immediate settlement of the instruments. The estimated aggregate fair value of our notes receivable was approximately $114.7 million and $116.0 million at June 30, 2011 and December 31, 2010, respectively, as compared to their carrying amounts of $127.3 million and $127.6 million. The estimated aggregate fair value of our consolidated debt (including amounts reported in liabilities related to assets held for sale) was approximately $5.5 billion and $5.6 billion at June 30, 2011 and December 31, 2010, respectively, as compared to aggregate carrying amounts of $5.4 billion and $5.5 billion, respectively. The fair values of our derivative instruments at June 30, 2011 and December 31, 2010, are included in the recurring fair value measurements table above.

In May 2011, the FASB issued Accounting Standards Update 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, or ASU 2011-04. ASU 2011-04 amended ASC 820, Fair Value Measurements and Disclosures, to converge the fair value measurement guidance in GAAP and International Financial Reporting Standards. The amendments, which primarily require additional fair value disclosures, are to be applied prospectively for annual periods beginning after December 15, 2011. We are currently evaluating the effect ASU 2011-04 will have on our consolidated financial statements.

Comprehensive Income or Loss

As discussed in the Derivative Financial Instruments section, we recognize changes in the fair value of our cash flow hedges as changes in accumulated other comprehensive loss within equity. Additionally, as discussed in Note 4, we have investments classified as available for sale which are measured at fair value with unrealized gains or losses recognized as an adjustment of accumulated other comprehensive loss within equity. Our consolidated comprehensive loss for the three months ended June 30, 2011 and 2010, totaled $26.3 million and $12.0 million, respectively, and for the six months ended June 30, 2011 and 2010, totaled $53.5 million and $28.9 million, respectively, before the effects of noncontrolling interests.

In June 2011, the FASB issued Accounting Standards Update 2011-05, Presentation of Comprehensive Income, or ASU 2011-15, which revises the manner in which companies present comprehensive income. Under ASU 2011-15, companies may present comprehensive income, which is net income adjusted for the components of other comprehensive income, either in a single, continuous statement of comprehensive income or by using two separate but consecutive statements. Regardless of the alternative chosen, companies must display adjustments for items reclassified from other comprehensive income into net income within the presentation of both net income and other comprehensive income. ASU 2011-05 is effective for interim and annual periods beginning after December 15, 2011. We are currently evaluating the effect ASU 2011-15 will have on our consolidated financial statements and have not yet determined which method of presentation we will elect.

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Concentration of Credit Risk

At June 30, 2011, we had total rate of return swap positions with two financial institutions totaling $164.6 million. We periodically evaluate counterparty credit risk associated with these arrangements. In the event either counterparty were to default under these arrangements, loss of the net interest benefit we generally receive under these arrangements, which is equal to the difference between the fixed rate we receive and the variable rate we pay, may adversely impact our results of operations and operating cash flows. However, at the current time, we have concluded we do not have material exposure.

Income Taxes

In March 2008, we were notified by the Internal Revenue Service, or the IRS, that it intended to examine the 2006 Federal tax return for the Aimco Operating Partnership. During June 2008, the IRS issued AIMCO-GP, Inc., the general partner and tax matters partner of the Aimco Operating Partnership, a summary report including the IRS’s proposed adjustments to the Aimco Operating Partnership’s 2006 Federal tax return. In addition, in May 2009, we were notified by the IRS that it intended to examine the 2007 Federal tax return for the Aimco Operating Partnership. During November 2009, the IRS issued AIMCO-GP, Inc. a summary report including the IRS’s proposed adjustments to the Aimco Operating Partnership’s 2007 Federal tax return. The matter is currently pending administratively before IRS Appeals and the IRS has made no determination. We do not expect the 2006 or 2007 proposed adjustments to have any material effect on our unrecognized tax benefits, financial condition or results of operations.

Use of Estimates

The preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes thereto. Actual results could differ from those estimates.

NOTE 3 — Real Estate Dispositions

Real Estate Dispositions (Discontinued Operations)

We are currently marketing for sale certain real estate properties that are inconsistent with our long-term investment strategy. At the end of each reporting period, we evaluate whether such properties meet the criteria to be classified as held for sale, including whether such properties are expected to be sold within 12 months. Additionally, certain properties that do not meet all of the criteria to be classified as held for sale at the balance sheet date may nevertheless be sold and included in discontinued operations in the subsequent 12 months; thus, the number of properties that may be sold during the subsequent 12 months could exceed the number classified as held for sale. At June 30, 2011 and December 31, 2010, we had two and 29 properties, with an aggregate of 710 and 4,750 units, respectively, classified as held for sale. Amounts classified as held for sale in the accompanying condensed consolidated balance sheets are as follows (in thousands):

	June 30,		December 31,
	2011		2010
Real estate, net	$	23,137	$	146,805
Other assets		576		2,071
Assets held for sale	$	23,713	$	148,876
Property debt	$	23,951	$	112,034
Other liabilities		226		1,255
Liabilities related to assets held for sale	$	24,177	$	113,289

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During the six months ended June, 2011 and 2010, we sold or disposed of 27 properties and 23 properties with an aggregate of 4,040 units and 3,547 units, respectively. During the year ended December 31, 2010, we disposed of 51 consolidated properties with an aggregate of 8,189 units. For the three and six months ended June 30, 2011 and 2010, discontinued operations includes the results of operations for the periods prior to the date of disposition for all properties disposed of and for properties classified as held for sale as of June 30, 2011.

The following is a summary of the components of income from discontinued operations and the related amounts of income from discontinued operations attributable to Aimco and to noncontrolling interests for the three and six months ended June 30, 2011 and 2010 (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Rental and other property revenues	$	4,019		$	21,695		$	11,538		$	47,639
Property operating expenses		(2,169	)		(9,590	)		(6,288	)		(25,910	)
Depreciation and amortization		(1,647	)		(6,311	)		(4,065	)		(12,839	)
Provision for operating real estate impairment losses		(2,452	)		(895	)		(6,307	)		(8,121	)
Operating (loss) income		(2,249	)		4,899			(5,122	)		769
Interest income		262			101			314			183
Interest expense		(1,009	)		(3,881	)		(2,602	)		(8,308	)
(Loss) income before gain on dispositions of real estate and income tax		(2,996	)		1,119			(7,410	)		(7,356	)
Gain on dispositions of real estate		19,716			26,982			27,434			53,321
Income tax (expense) benefit		(251	)		(5	)		(421	)		1,063
Income from discontinued operations, net	$	16,469		$	28,096		$	19,603		$	47,028
(Income) loss from discontinued operations attributable to:
Noncontrolling interests in consolidated real estate partnerships	$	(7,196	)	$	(6,383	)	$	(5,943	)	$	(16,241	)
Noncontrolling interests in Aimco Operating Partnership		(653	)		(1,455	)		(945	)		(2,064	)
Total noncontrolling interests		(7,849	)		(7,838	)		(6,888	)		(18,305	)
Income from discontinued operations attributable to Aimco	$	8,620		$	20,258		$	12,715		$	28,723

Gain on dispositions of real estate is reported net of incremental direct costs incurred in connection with the transactions, including any prepayment penalties incurred upon repayment of property loans collateralized by the properties being sold. Such prepayment penalties totaled $4.8 million and $5.0 million for the three and six months ended June 30, 2011, respectively, and $2.6 million and $3.2 million for the three and six months ended June 30, 2010, respectively. We classify interest expense related to property debt within discontinued operations when the related real estate asset is sold or classified as held for sale.

In connection with properties sold or classified as held for sale during the three and six months ended June 30, 2011, we allocated $0.9 million and $1.7 million, respectively, of goodwill related to our conventional and affordable segments to the carrying amounts of the properties sold or classified as held for sale. Of these amounts, $0.7 million and $1.2 million, respectively, were recognized as a reduction of gain on dispositions of real estate and $0.2 million and $0.5 million, respectively, were recognized as an adjustment of impairment losses during the three and six months ended June 30, 2011. In connection with properties sold or classified as held for sale during the three and six months ended June 30, 2010, we allocated $1.5 million and $2.8 million, respectively, of goodwill related to our conventional and affordable segments to the carrying amounts of the properties sold or classified as held for sale. Of these amounts, $1.4 million and $2.6 million, respectively, were treated as a reduction of gain on dispositions of real estate and $0.1 million and $0.2 million, respectively, were treated as an adjustment of impairment losses during the three and six months ended June 30, 2010. The amounts of goodwill allocated to these properties were based on the relative fair values of the properties sold or classified as held for sale and the retained portions of the reporting units to which the goodwill was allocated.

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NOTE 4 — Other Significant Transactions

Property Loan Securitization Transactions

During the three months ended June 30, 2011, we completed a series of financing transactions that repaid $625.7 million of non-recourse property loans that were scheduled to mature between the years 2012 and 2016 with proceeds from new long-term, fixed-rate, non-recourse property loans, or the New Loans. The New Loans, which total $673.8 million, were closed in three parts; $218.6 million closed during the three months ended December 31, 2010, $120.6 million closed during the three months ended March 31, 2011, and $334.6 million closed during the three months ended June 30, 2011. All of the New Loans have a ten year term, with principal scheduled to amortize over 30 years. Subsequent to origination, the New Loans were sold to Federal Home Loan Mortgage Corp, or Freddie Mac, which then securitized the New Loans. The securitization trust will hold only the New Loans referenced above and the trust securities trade under the label FREMF 2011K-AIV. In connection with the refinancings during the three months ended June 30, 2011, we recognized a loss on debt extinguishment of $23.0 million in interest expense, consisting of $20.7 million in prepayment penalties and a $2.3 million write off of previous deferred loan costs.

During the three months ended June 30, 2011, as part of the securitization transaction, we purchased for $51.5 million the first loss and mezzanine positions in the securitization trust, which have a face value of $100.9 million and stated maturity dates corresponding to the terms of the loans held by the trust. We designated these investments as available for sale securities and they are included in other assets in our condensed consolidated balance sheet at June 30, 2011. These investments were initially recognized at their purchased value and the discount to the face value will be accreted into interest income over the expected term of the securities. Based on their classification as available for sale securities, we measure these investment at fair value with changes in their fair value, other than the changes attributed to the accretion described above, recognized as an adjustment of accumulated other comprehensive income or loss within equity.

Common Stock Issuances

During the six months ended June 30, 2011, we sold 2.8 million shares of Common Stock under our “at the market,” or ATM, offering program, generating $70.6 million of gross proceeds, or $69.2 million net of commissions. Sales of approximately 325,000 of these shares were initiated during the six months ended June 30, 2011, but settled in the subsequent period. Accordingly, for accounting purposes these shares were not reflected as issued and outstanding during the six months ended June 30, 2011, and the net proceeds of $8.2 million will be recognized in the subsequent period. We used the net proceeds to fund the prepayment penalties and investments discussed above.

Acquisitions of Noncontrolling Partnership Interests

During the six months ended June 30, 2011, we acquired the remaining noncontrolling limited partnership interests in six consolidated real estate partnerships that own nine properties and in which our affiliates serve as general partner, for a total cost of $13.6 million. We recognized the excess of the cost over the carrying amount of the noncontrolling interests acquired as an adjustment of additional paid-in capital within Aimco equity, net of the amount of such adjustment allocated to common noncontrolling interests in Aimco Operating Partnership. During the six months ended June 30, 2010, there were no comparable acquisitions of noncontrolling limited partnership interests.

NOTE 5 — Commitments and Contingencies

Commitments

In connection with our redevelopment and capital improvement activities, we have commitments of approximately $14.0 million related to construction projects, most of which we expect to incur during the remainder of 2011 and during 2012. Additionally, we enter into certain commitments for future purchases of goods and services in connection with the operations of our properties. Those commitments generally have terms of one year or less and reflect expenditure levels comparable to our historical expenditures.

We have committed to fund an additional $3.4 million in loans on certain unconsolidated properties in West Harlem in New York City. Additionally, in certain circumstances, the obligor under these notes has the ability to put the properties to us, which would result in a cash payment of approximately $30.7 million and the assumption of $118.5 million in property debt. The obligor’s right to exercise the put depends upon the achievement of specified operating performance thresholds.

We have an agreement that allows the holder of some of our Series A Community Reinvestment Act Preferred Stock, or the CRA Preferred Stock, to require us to repurchase $10.0 million in liquidation preference of the CRA Preferred Stock at a 30% discount, during the three months ending June 30, 2012. Based on the holder’s ability to require us to repurchase this amount, the $10.0 million in liquidation preference of CRA Preferred Stock, or the maximum redemption value of such preferred stock, is classified within temporary equity in our condensed consolidated balance sheet at June 30, 2011.

15

Tax Credit Arrangements

We are required to manage certain consolidated real estate partnerships in compliance with various laws, regulations and contractual provisions that apply to our historic and low-income housing tax credit syndication arrangements. In some instances, noncompliance with applicable requirements could result in projected tax benefits not being realized and require a refund or reduction of investor capital contributions, which are reported as deferred income in our consolidated balance sheet, until such time as our obligation to deliver tax benefits is relieved. The remaining compliance periods for our tax credit syndication arrangements range from less than one year to 15 years. We do not anticipate that any material refunds or reductions of investor capital contributions will be required in connection with these arrangements.

Legal Matters

In addition to the matters described below, we are a party to various legal actions and administrative proceedings arising in the ordinary course of business, some of which are covered by our general liability insurance program, and none of which we expect to have a material adverse effect on our consolidated financial condition, results of operations or cash flows.

Limited Partnerships

In connection with our acquisitions of interests in real estate partnerships, we are sometimes subject to legal actions, including allegations that such activities may involve breaches of fiduciary duties to the partners of such real estate partnerships or violations of the relevant partnership agreements. We may incur costs in connection with the defense or settlement of such litigation. We believe that we comply with our fiduciary obligations and relevant partnership agreements. Although the outcome of any litigation is uncertain, we do not expect any such legal actions to have a material adverse effect on our consolidated financial condition, results of operations or cash flows.

During the three months ended June 30, 2011, we mediated the previously disclosed dispute with respect to mergers completed earlier in 2011 in which we acquired the remaining noncontrolling interests in six consolidated real estate partnerships. As a result of the mediation we agreed to pay the limited partners additional consideration of $7.5 million for their partnership units.

Environmental

Various Federal, state and local laws subject property owners or operators to liability for management, and the costs of removal or remediation, of certain potentially hazardous materials present on a property, including lead-based paint, asbestos, polychlorinated biphenyls, petroleum-based fuels, and other miscellaneous materials. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release or presence of such materials. The presence of, or the failure to manage or remedy properly, these materials may adversely affect occupancy at affected apartment communities and the ability to sell or finance affected properties. In addition to the costs associated with investigation and remediation actions brought by government agencies, and potential fines or penalties imposed by such agencies in connection therewith, the improper management of these materials on a property could result in claims by private plaintiffs for personal injury, disease, disability or other infirmities. Various laws also impose liability for the cost of removal, remediation or disposal of these materials through a licensed disposal or treatment facility. Anyone who arranges for the disposal or treatment of these materials is potentially liable under such laws. These laws often impose liability whether or not the person arranging for the disposal ever owned or operated the disposal facility. In connection with the ownership, operation and management of properties, we could potentially be responsible for environmental liabilities or costs associated with our properties or properties we acquire or manage in the future.

We have determined that our legal obligations to remove or remediate certain potentially hazardous materials may be conditional asset retirement obligations, as defined in GAAP. Except in limited circumstances where the asset retirement activities are expected to be performed in connection with a planned construction project or property casualty, we believe that the fair value of our asset retirement obligations cannot be reasonably estimated due to significant uncertainties in the timing and manner of settlement of those obligations. Asset retirement obligations that are reasonably estimable as of June 30, 2011, are immaterial to our consolidated financial condition, results of operations and cash flows.

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NOTE 6 — Earnings (Loss) per Share

We calculate earnings (loss) per share based on the weighted average number of shares of Common Stock, participating securities, common stock equivalents and dilutive convertible securities outstanding during the period. The following table illustrates the calculation of basic and diluted earnings (loss) per share for the three and six months ended June 30, 2011 and 2010 (in thousands, except per share data):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Numerator:
Loss from continuing operations	$	(43,440	)	$	(38,266	)	$	(73,851	)	$	(73,958	)
Loss from continuing operations attributable to noncontrolling interests		11,369			10,183			18,425			9,892
Income attributable to preferred stockholders		(9,672	)		(10,128	)		(22,128	)		(23,050	)
Income attributable to participating securities		(54	)		(42	)		(111	)		—
Loss from continuing operations attributable to Aimco common stockholders	$	(41,797	)	$	(38,253	)	$	(77,665	)	$	(87,116	)
Income from discontinued operations	$	16,469		$	28,096		$	19,603		$	47,028
Income from discontinued operations attributable to noncontrolling interests		(7,849	)		(7,838	)		(6,888	)		(18,305	)
Income from discontinued operations attributable to Aimco common stockholders	$	8,620		$	20,258		$	12,715		$	28,723
Net loss	$	(26,971	)	$	(10,170	)	$	(54,248	)	$	(26,930	)
Loss (income) attributable to noncontrolling interests		3,520			2,345			11,537			(8,413	)
Income attributable to preferred stockholders		(9,672	)		(10,128	)		(22,128	)		(23,050	)
Income attributable to participating securities		(54	)		(42	)		(111	)		—
Net loss attributable to Aimco common stockholders	$	(33,177	)	$	(17,995	)	$	(64,950	)	$	(58,393	)
Denominator:
Denominator for basic earnings per share — weighted average number of shares of Common Stock outstanding		119,156			116,323			118,238			116,179
Effect of dilutive securities:
Dilutive potential common shares		—			—			—			—
Denominator for diluted earnings per share		119,156			116,323			118,238			116,179
Earnings (loss) per common share:
Basic and diluted earnings (loss) per common share:
Loss from continuing operations attributable to Aimco common stockholders	$	(0.35	)	$	(0.33	)	$	(0.66	)	$	(0.75	)
Income from discontinued operations attributable to Aimco common stockholders		0.07			0.18			0.11			0.25
Net loss attributable to Aimco common stockholders	$	(0.28	)	$	(0.15	)	$	(0.55	)	$	(0.50	)

As of June 30, 2011 and 2010, the common share equivalents that could potentially dilute basic earnings per share in future periods totaled 6.9 million and 7.2 million, respectively. These securities, representing stock options, have been excluded from the earnings (loss) per share computations for the three and six months ended June 30, 2011 and 2010, because their effect would have been anti-dilutive. Participating securities, consisting of unvested restricted stock and shares purchased pursuant to officer loans, receive dividends similar to shares of Common Stock and totaled 0.5 million and 0.6 million at June 30, 2011 and 2010, respectively. The effect of participating securities is included in basic and diluted earnings (loss) per share computations for the periods presented above using the two-class method of allocating distributed and undistributed earnings.

Various classes of preferred OP Units of the Aimco Operating Partnership are outstanding. Depending on the terms of each class, these preferred OP Units are convertible into common OP Units or redeemable for cash or, at the Aimco Operating Partnership’s option, Common Stock, and are paid distributions varying from 1.8% to 8.8% per annum per unit, or equal to the dividends paid on Common Stock based on the conversion terms. As of June 30, 2011, a total of 3.1 million preferred OP Units were outstanding with redemption values of $82.5 million and were potentially redeemable for approximately 3.2 million shares of Common Stock (based on the period end market price), or cash at the Aimco Operating Partnership’s option. The Aimco Operating Partnership has a redemption policy that requires cash settlement of redemption requests for the preferred OP Units, subject to limited exceptions. The potential dilutive effect of these securities would have been antidilutive in the periods presented. Additionally, based on the Aimco Operating Partnership’s cash redemption policy, they may also be excluded from future earnings (loss) per share computations in periods during which their effect is dilutive.

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NOTE 7 — Business Segments

We have two reportable segments: conventional real estate operations and affordable real estate operations. Our conventional real estate operations consist of market-rate apartments with rents paid by the resident and included 215 properties with 67,049 units at June 30, 2011. Our affordable real estate operations consisted of 205 properties with 24,406 units at June 30, 2011, with rents that are generally paid, in whole or part, by a government agency.

Our chief executive officer, who is our chief operating decision maker, uses various generally accepted industry financial measures to assess the performance and financial condition of the business, including: Net Asset Value, which is the estimated fair value of our assets, net of liabilities and preferred equity; Pro forma Funds From Operations, which is Funds From Operations excluding operating real estate impairment losses and preferred equity redemption related amounts; Adjusted Funds From Operations, which is Pro forma Funds From Operations less spending for Capital Replacements; property net operating income, which is rental and other property revenues less direct property operating expenses, including real estate taxes; proportionate property net operating income, which reflects our share of property net operating income of our consolidated and unconsolidated properties; same store property operating results; Free Cash Flow, which is net operating income less spending for Capital Replacements; Free Cash Flow internal rate of return; financial coverage ratios; and leverage as shown on our balance sheet. Our chief operating decision maker emphasizes proportionate property net operating income as a key measurement of segment profit or loss.

The following tables present the revenues, net operating income (loss) and income (loss) from continuing operations of our conventional and affordable real estate operations segments on a proportionate basis for the three and six months ended June 30, 2011 and 2010 (in thousands):

							Corporate and
	Conventional		Affordable		Proportionate		Amounts Not
	Real Estate		Real Estate		Adjustments		Allocated to
	Operations		Operations		(1)		Segments			Consolidated
Three Months Ended June 30, 2011:
Rental and other property revenues (2)	$	208,253	$	32,826	$	32,029	$	276		$	273,384
Asset management and tax credit revenues		—		—		—		7,651			7,651
Total revenues		208,253		32,826		32,029		7,927			281,035
Property operating expenses (2)		77,323		13,599		13,912		12,545			117,379
Investment management expenses		—		—		—		2,187			2,187
Depreciation and amortization (2)		—		—		—		94,084			94,084
General and administrative expenses		—		—		—		12,372			12,372
Other expenses, net		—		—		—		5,222			5,222
Total operating expenses		77,323		13,599		13,912		126,410			231,244
Net operating income (loss)		130,930		19,227		18,117		(118,483	)		49,791
Other items included in continuing operations		—		—		—		(93,231	)		(93,231	)
Income (loss) from continuing operations	$	130,930	$	19,227	$	18,117	$	(211,714	)	$	(43,440	)
Three Months Ended June 30, 2010:
Rental and other property revenues (2)	$	203,251	$	31,661	$	31,159	$	657		$	266,728
Asset management and tax credit revenues		—		—		—		9,796			9,796
Total revenues		203,251		31,661		31,159		10,453			276,524
Property operating expenses (2)		78,396		13,924		13,978		16,828			123,126
Investment management expenses		—		—		—		5,141			5,141
Depreciation and amortization (2)		—		—		—		102,809			102,809
General and administrative expenses		—		—		—		15,184			15,184
Other income, net		—		—		—		(4,485	)		(4,485	)
Total operating expenses		78,396		13,924		13,978		135,477			241,775
Net operating income (loss)		124,855		17,737		17,181		(125,024	)		34,749
Other items included in continuing operations		—		—		—		(73,015	)		(73,015	)
Income (loss) from continuing operations	$	124,855	$	17,737	$	17,181	$	(198,039	)	$	(38,266	)

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							Corporate and
	Conventional		Affordable		Proportionate		Amounts Not
	Real Estate		Real Estate		Adjustments		Allocated to
	Operations		Operations		(1)		Segments			Consolidated
Six Months Ended June 30, 2011:
Rental and other property revenues (2)	$	414,800	$	65,704	$	63,816	$	856		$	545,176
Asset management and tax credit revenues		—		—		—		16,887			16,887
Total revenues		414,800		65,704		63,816		17,743			562,063
Property operating expenses (2)		156,752		27,346		28,332		28,478			240,908
Investment management expenses		—		—		—		5,219			5,219
Depreciation and amortization (2)		—		—		—		193,117			193,117
General and administrative expenses		—		—		—		23,498			23,498
Other expenses, net		—		—		—		9,156			9,156
Total operating expenses		156,752		27,346		28,332		259,468			471,898
Net operating income (loss)		258,048		38,358		35,484		(241,725	)		90,165
Other items included in continuing operations		—		—		—		(164,016	)		(164,016	)
Income (loss) from continuing operations	$	258,048	$	38,358	$	35,484	$	(405,741	)	$	(73,851	)
Six Months Ended June 30, 2010:
Rental and other property revenues (2)	$	407,082	$	62,723	$	62,137	$	1,390		$	533,332
Asset management and tax credit revenues		—		—		—		14,497			14,497
Total revenues		407,082		62,723		62,137		15,887			547,829
Property operating expenses (2)		162,300		28,805		29,025		30,136			250,266
Investment management expenses		—		—		—		8,370			8,370
Depreciation and amortization (2)		—		—		—		206,092			206,092
General and administrative expenses		—		—		—		26,919			26,919
Other income, net		—		—		—		(2,148	)		(2,148	)
Total operating expenses		162,300		28,805		29,025		269,369			489,499
Net operating income (loss)		244,782		33,918		33,112		(253,482	)		58,330
Other items included in continuing operations		—		—		—		(132,288	)		(132,288	)
Income (loss) from continuing operations	$	244,782	$	33,918	$	33,112	$	(385,770	)	$	(73,958	)

(1)

Represents adjustments for the noncontrolling interests in consolidated real estate partnerships’ share of the results of our consolidated properties, which are excluded from our measurement of segment performance but included in the related consolidated amounts, and our share of the results of operations of our unconsolidated real estate partnerships, which are included in our measurement of segment performance but excluded from the related consolidated amounts.

(2)

Proportionate property net operating income, our key measurement of segment profit or loss, excludes provision for operating real estate impairment losses, property management revenues (which are included in rental and other property revenues), property management expenses and casualty gains and losses (which are included in property operating expenses) and depreciation and amortization. Accordingly, we do not allocate these amounts to our segments.

For the six months ended June 30, 2011 and 2010, capital additions related to our conventional segment totaled $58.9 million and $64.0 million, respectively, and capital additions related to our affordable segment totaled $8.3 million and $15.9 million, respectively.

NOTE 8 — Subsequent Events

During July 2011, we issued 800,000 shares of 7.00% Class Z Cumulative Preferred Stock, par value $0.01 per share, in an underwritten public offering for net proceeds per share of $23.09 (reflecting a price to the public of $24.25 per share, less an underwriting discount, commissions and estimated transaction costs of $1.16 per share). The offering generated net proceeds of $18.5 million (after deducting underwriting discounts, commissions and estimated transaction costs). We intend to use the net proceeds to partially redeem outstanding preferred securities with a higher dividend rate.

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ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

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 Report contains or may contain information that is forward-looking, within the meaning of the federal securities laws, including, without limitation, statements regarding our ability to maintain current or meet projected occupancy, rental rates and property operating results and the effect of acquisitions and redevelopments. 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 our control, including, without limitation: financing risks, including the availability and cost of financing and the risk that our cash flows from operations may be insufficient to meet required payments of principal and interest; earnings may not be sufficient to maintain compliance with debt covenants; real estate risks, including fluctuations in real estate values and the general economic climate in the markets in which we operate and competition for residents in such markets; national and local economic conditions, including the pace of job growth and the level of unemployment; the terms of governmental regulations that affect us and interpretations of those regulations; the competitive environment in which we operate; the timing of acquisitions and dispositions; insurance risk, including the cost of insurance; natural disasters and severe weather such as hurricanes; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; energy costs; 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 us. In addition, our current and continuing qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code and depends on our ability to meet the various requirements imposed by the Internal Revenue Code, through actual operating results, distribution levels and diversity of stock ownership. Readers should carefully review our financial statements and the notes thereto, as well as the section entitled “Risk Factors” described in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2010, and the other documents we file from time to time with the Securities and Exchange Commission. As used herein and except as the context otherwise requires, “we,” “our,” “us” and the “Company” refer to Apartment Investment and Management Company (which we refer to as Aimco), AIMCO Properties, L.P. (which we refer to as the Aimco Operating Partnership) and Aimco’s consolidated corporate subsidiaries and consolidated real estate partnerships, collectively.

Executive Overview

We are a self-administered and self-managed real estate investment trust, or REIT. Our principal financial objective is to provide predictable and attractive returns to our stockholders. Our business plan to achieve this objective is to:

• own and operate a broadly diversified portfolio of primarily class “B/B+” assets (as defined in Note 1 to the condensed consolidated financial statements in Item 1) with properties concentrated in the 20 largest markets in the United States (as measured by total apartment value, which is the estimated total market value of apartment properties in a particular market);

• improve our portfolio by selling assets with lower projected returns and reinvesting those proceeds through the purchase of new assets or additional investment in existing assets in our portfolio, including increased ownership or redevelopment; and

• provide financial leverage primarily by the use of non-recourse, long-dated, fixed-rate property debt and perpetual preferred equity.

Our owned real estate portfolio includes 215 conventional properties with 67,049 units and 205 affordable properties with 24,406 units. These conventional and affordable properties generated 87% and 13%, respectively, of our proportionate property net operating income (as defined below) during the six months ended June 30, 2011. For the three months ended June 30, 2011, our conventional portfolio monthly rents averaged $1,079 and provided 63% operating margins. These average rents increased from $1,060 for the three months ended March 31, 2011. During the three months ended June 30, 2011, on average, conventional new lease rates were 5.1% higher than expiring lease rates, compared to rates that were 1.9% higher than expiring lease rates in the three months ended March 31, 2011. During the three months ended June 30, 2011, conventional renewal rates were 3.6% higher than expiring lease rates, compared to rates that were 3.0% higher than expiring lease rates in the three months ended March 31, 2011.

Our geographic allocation strategy focuses on the 20 largest markets in the United States to reduce volatility in and our dependence on particular areas of the country. We believe these markets are deep, relatively liquid and possess desirable long-term growth characteristics. They are primarily coastal markets, and also include a number of Sun Belt cities and Chicago, Illinois. We may also invest in other markets on an opportunistic basis.

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Our portfolio strategy also focuses on asset type and quality. Our target allocation of capital to conventional and affordable properties is 90% and 10%, respectively, of our total property net asset value, which is the estimated fair value of our properties and related assets, net of liabilities. Our conventional and affordable properties comprised approximately 89% and 11%, respectively, of our total property net asset value, at June 30, 2011.

For conventional assets, we focus on the ownership of primarily B/B+ assets. Refer to Note 1 to the condensed consolidated financial statements in Item 1 for an explanation of our rating system for measuring asset quality. We upgrade the quality of our portfolio through the sale of assets with lower projected returns, which are often in markets less desirable than our target markets, and reinvest these proceeds through the purchase of new assets or additional investment in existing assets in our portfolio, through increased ownership or redevelopment. We prefer the redevelopment of select properties in our existing portfolio to ground-up development, as we believe it provides superior risk adjusted returns with lower volatility. During the six months ended June 30, 2011, we increased our allocation of capital to our target markets by disposing of nine conventional properties located outside of our target markets, by increasing our ownership in nine conventional properties owned through consolidated real estate partnerships, and by investing $12.1 million in redevelopment of conventional properties included in continuing operations. During the six months ended June 30, 2011, we also disposed of 12 affordable properties.

Our leverage strategy focuses on increasing financial returns while minimizing risk. At June 30, 2011, approximately 86% of our leverage consisted of property-level, non-recourse, long-dated, fixed-rate, amortizing debt and 13% consisted of perpetual preferred equity, a combination which helps to limit our refunding and re-pricing risk. At June 30, 2011, we had $21.5 million of corporate level debt, consisting of borrowings on our revolving credit facility. Our leverage strategy limits refunding risk on our property-level debt. During the six months ended June 30, 2011, exclusive of property debt reductions related to discontinued operations, we reduced our net leverage by approximately $95.0 million, inclusive of refinancing activity, regularly scheduled property debt amortization, loan pay-downs and our $51.5 million investment in the first loss and mezzanine positions in the securitization trust discussed in Note 4 to the condensed consolidated financial statements in Item 1. At June 30, 2011, the weighted average maturity of our property-level debt was 8.1 years, with 0.3% of our debt maturing during the remainder of 2011 and on average approximately 5.6% maturing in each of 2012, 2013, 2014 and 2015. Long duration, fixed-rate liabilities provide a hedge against increases in interest rates and inflation. Approximately 93% of our property-level debt is fixed-rate. We continue to focus on refinancing our property debt maturing during the period from 2012 through 2015, to extend maturities and lock in current low interest rates.

As of June 30, 2011, we had the capacity to borrow $251.5 million pursuant to our $300.0 million credit facility (after giving effect to $21.5 million of outstanding borrowings and $27.0 million outstanding for undrawn letters of credit issued under the revolving credit facility). The revolving credit facility matures May 1, 2013, and may be extended for an additional year, subject to certain conditions.

The key financial indicators that we use in managing our business and in evaluating our financial condition and operating performance are: Net Asset Value; Pro forma Funds From Operations, which is Funds From Operations excluding operating real estate impairment losses and preferred equity redemption related amounts; Adjusted Funds From Operations, which is Pro forma Funds From Operations less spending for Capital Replacements; property net operating income, which is rental and other property revenues less direct property operating expenses, including real estate taxes; proportionate property net operating income, which reflects our share of property net operating income of our consolidated and unconsolidated properties; same store property operating results; Free Cash Flow, which is net operating income less spending for Capital Replacements; Free Cash Flow internal rate of return; financial coverage ratios; and leverage as shown on our balance sheet. Funds From Operations is defined and further described in the section captioned “Funds From Operations.” The key macro-economic factors and non-financial indicators that affect our financial condition and operating performance are: household formations; rates of job growth; single-family and multifamily housing starts; interest rates; and availability and cost of financing.

Because our operating results depend primarily on income from our properties, the supply and demand for apartments influences our operating results. Additionally, the level of expenses required to operate and maintain our properties and the pace and price at which we redevelop, acquire and dispose of our apartment properties affect our operating results. Our cost of capital is affected by the conditions in the capital and credit markets and the terms that we negotiate for our equity and debt financings.

Highlights of our results of operations for the three months ended June 30, 2011, are summarized below:

• Total Same Store revenues and expenses for the three months ended June 30, 2011, increased by 2.6% and decreased by 1.4%, respectively, as compared to the three months ended June 30, 2010, resulting in a 5.1% increase in net operating income.

• Average daily occupancy for our Conventional Same Store properties remained high at 95.9% for the three months ended June 30, 2011.

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• Conventional Same Store revenues and expenses for the three months ended June 30, 2011, increased by 2.4% and decreased by 1.3%, respectively, as compared to the three months ended June 30, 2010, resulting in a 4.6% increase in net operating income.

• General and administrative expenses decreased by 18.5% during the three months ended June 30, 2011, as compared to the three months ended June 30, 2010.

The following discussion and analysis of the results of our operations and financial condition should be read in conjunction with the accompanying condensed consolidated financial statements in Item 1.

Results of Operations

Overview

Three months ended June 30, 2011 compared to June 30, 2010

We reported net loss attributable to Aimco of $23.5 million and net loss attributable to Aimco common stockholders of $33.2 million for the three months ended June 30, 2011, compared to net loss attributable to Aimco of $7.8 million and net loss attributable to Aimco common stockholders of $18.0 million for the three months ended June 30, 2010, increases in losses of $15.7 million and $15.2 million, respectively.

These increases in net loss were principally due to the following items, all of which are discussed in further detail below:

• a decrease in income from discontinued operations, primarily related to a decrease in gains on dispositions of real estate due to fewer property sales in 2011 as compared to 2010; and

• an increase in interest expense, primarily due to prepayment penalties incurred in connection with a series of financing transactions that extended maturities and reduced the effective interest rate on a group of non-recourse property loans.

The effects of these items on our operating results were partially offset by an increase in net operating income of our properties included in continuing operations, reflecting improved operations.

Six months ended June 30, 2011 compared to June 30, 2010

For the six months ended June 30, 2011, we reported net loss attributable to Aimco of $42.7 million and net loss attributable to Aimco common stockholders of $65.0 million, compared to net loss attributable to Aimco of $35.3 million and net loss attributable to Aimco common stockholders of $58.4 million for the six months ended June 30, 2010, increases in losses of $7.4 million and $6.6 million, respectively.

These increases in net loss were principally due to the following items, all of which are discussed in further detail below:

• a decrease in income from discontinued operations, primarily related to a decrease in gains on dispositions of real estate due to fewer property sales in 2011 as compared to 2010; and

• an increase in interest expense, primarily due to prepayment penalties incurred in connection with a series of financing transactions that extended maturities and reduced the effective interest rate on a group of non-recourse property loans.

The effects of these items on our operating results were partially offset by:

• an increase in net operating income of our properties included in continuing operations, reflecting improved operations; and

• a decrease in income from discontinued operations allocated to noncontrolling interests, primarily due to their share of the decrease in gains on dispositions of consolidated real estate properties as discussed above.

The following paragraphs discuss these and other items affecting the results of our operations in more detail.

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Real Estate Operations

Our real estate portfolio is comprised of two business components: conventional real estate operations and affordable real estate operations, which also represent our two reportable segments. Our conventional real estate operations consist of market-rate apartments with rents paid by the resident and include 215 properties with 67,049 units. Our affordable real estate operations consist of 205 properties with 24,406 units, with rents that are generally paid, in whole or part, by a government agency. Our conventional and affordable properties contributed 87% and 13%, respectively, of proportionate property net operating income during the three and six months ended June 30, 2011.

In accordance with accounting principles generally accepted in the United States of America, or GAAP, we consolidate certain properties in which we hold an insignificant economic interest and in some cases we do not consolidate other properties in which we have a significant economic interest. Due to the diversity of our economic ownership interests in our properties, our chief operating decision maker emphasizes proportionate property net operating income as a key measurement of segment profit or loss. Accordingly, the results of operations of our conventional and affordable segments discussed below are presented on a proportionate basis.

We exclude property management revenues and expenses and casualty related amounts from our definition of proportionate property operating income and therefore from our assessment of segment performance. Accordingly, these items are not included in the following discussion of our segment results. The effects of these items on our real estate operations results are discussed below on a consolidated basis, that is, before adjustments for noncontrolling interests or our interests in unconsolidated real estate partnerships.

The tables and discussions below reflect the proportionate results of our conventional and affordable segments and the consolidated results related to our real estate operations not allocated to segments for the three and six months ended June 30, 2011 and 2010 (in thousands). The tables and discussions below exclude the results of operations for properties sold or classified as held for sale through June 30, 2011. Refer to Note 7 in the condensed consolidated financial statements in Item 1 for further discussion regarding our reportable segments, including a reconciliation of these proportionate amounts to consolidated rental and other property revenues and property operating expenses.

Total Same Store Portfolio

Our conventional and affordable segments each include properties we classify as same store. Same store properties are properties we manage and that have reached and maintained a stabilized level of occupancy (greater than 90%) during the current and prior year comparable period. We consider total same store results as a meaningful measure of the performance of the results of operations of the properties we own and operate. For the three and six months ended June 30, 2011, our total same store portfolio comprised 92% and 91%, respectively, of our total proportionate property net operating income.

For the three months ended June 30, 2011, as compared to the three months ended June 30, 2010, our total same store portfolio’s proportionate property revenues and expenses increased by 2.6% and decreased by 1.4%, respectively, resulting in a 5.1% increase in net operating income, and our total same store operating margin increased by approximately 200 basis points, from 61% during the three months ended June 30, 2010, to 63% during the three months ended June 30, 2011. For the six months ended June 30, 2011, as compared to the six months ended June 30, 2010, our total same store portfolio’s proportionate property revenues and expenses increased by 2.3% and decreased by 4.3%, respectively, as resulting in a 6.8% increase in net operating income, and our total same store operating margin increased by approximately 300 basis points, from 60% during the six months ended June 30, 2010 to 63% during the six months ended June 30, 2011.

The results of operations of our conventional and affordable same store properties are discussed further in the discussion of segment results below.

Conventional Real Estate Operations

Our conventional segment consists of conventional properties that we classify as either same store, redevelopment or other conventional properties. Redevelopment properties are those in which a substantial number of available units have been vacated for major renovations or have not been stabilized in occupancy for at least one year as of the earliest period presented, or for which other significant non-unit renovations are underway or have been complete for less than one year. Other conventional properties may include conventional properties that have significant rent control restrictions, acquisition properties, university housing properties and properties that are not multifamily, such as commercial properties or fitness centers. Our definitions of same store and redevelopment properties may result in these portfolios for the three month periods differing from such portfolios for the six month periods for the purpose of comparing 2011 to 2010 results.

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During the three months ended June 30, 2011, our conventional same store portfolio and our other conventional portfolio consisted of 171 and 42 properties with 58,459 and 7,880 units, respectively. During the six months ended June 30, 2011, our conventional same store portfolio decreased on a net basis by nine properties and 2,938 units. These changes consisted of:

• the removal of ten properties, with 2,779 units that were sold or classified as held for sale through June 30, 2011 and for which the results have been reclassified into discontinued operations;

• the inclusion of two properties with 551 units that were previously classified as redevelopment properties; and

• the removal of two properties with 1,060 units that experienced significant casualty losses and were moved from the same store classification into the other conventional classification, offset by the reintroduction of one property with 350 units into the same store classification.

	Three Months Ended June 30,
	2011		2010		$ Change			% Change
Rental and other property revenues:
Conventional same store	$	187,017	$	182,637	$	4,380			2.4	%
Other Conventional		21,236		20,614		622			3.0	%
Total		208,253		203,251		5,002			2.5	%
Property operating expenses:
Conventional same store		68,010		68,884		(874	)		(1.3	%)
Other Conventional		9,313		9,512		(199	)		(2.1	%)
Total		77,323		78,396		(1,073	)		(1.4	%)
Property net operating income:
Conventional same store		119,007		113,753		5,254			4.6	%
Other Conventional		11,923		11,102		821			7.4	%
Total	$	130,930	$	124,855	$	6,075			4.9	%

For the three months ended June 30, 2011 and 2010, our conventional segment’s proportionate property net operating income increased $6.1 million, or 4.9%.

For the three months ended June 30, 2011, as compared to the three months ended June 30, 2010, conventional same store net operating income increased by $5.3 million. This increase was partially attributable to a $4.4 million increase in revenue, primarily due to a 21 basis point increase in average physical occupancy and higher average rent (approximately $18 per unit), in addition to an increase in miscellaneous income. Rental rates on new leases transacted during the three months ended June 30, 2011, were 5.1% higher than expiring lease rates and renewal rates were 3.6% higher than expiring lease rates. The increase in same store net operating income was also attributable to a $0.9 million decrease in expense, primarily due to reductions in insurance, contract services, marketing and personnel expenses, partially offset by increases in real estate tax expense, due to refunds received in 2010, and administrative costs. Our other conventional net operating income (which includes conventional redevelopment properties) increased by $0.8 million, due to an increase in revenue of approximately $0.6 million and a decrease in expense of $0.2 million.

	Six Months Ended June 30,
	2011		2010		$ Change			% Change
Rental and other property revenues:
Conventional same store	$	371,773	$	364,461	$	7,312			2.0	%
Other Conventional		43,027		42,621		406			1.0	%
Total		414,800		407,082		7,718			1.9	%
Property operating expenses:
Conventional same store		136,617		142,134		(5,517	)		(3.9	%)
Other Conventional		20,135		20,166		(31	)		(0.2	%)
Total		156,752		162,300		(5,548	)		(3.4	%)
Property net operating income:
Conventional same store		235,156		222,327		12,829			5.8	%
Other Conventional		22,892		22,455		437			1.9	%
Total	$	258,048	$	244,782	$	13,266			5.4	%

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Our conventional same store and other conventional property populations for the six months periods were substantially consistent with the populations for the three months periods. For the six months ended June 30, 2011 and 2010, our conventional segment’s proportionate property net operating income increased $13.3 million, or 5.4%.

For the six months ended June 30, 2011, as compared to the six months ended June 30, 2010, conventional same store net operating income increased by $12.8 million. This increase was attributable to a $7.3 million increase in revenue, primarily due to a 33 basis point increase in average physical occupancy and higher average rent (approximately $12 per unit), in addition to an increase in miscellaneous income. Rental rates on new leases transacted during the six months ended June 30, 2011, were 3.8% higher than expiring lease rates and renewal rates were 3.4% higher than expiring lease rates. The increase in same store net operating income was also attributable to a $5.5 million decrease in expense, primarily due to reductions in personnel and related costs, contract services, marketing, insurance and real estate tax expense. Our other conventional net operating income (which includes conventional redevelopment properties) increased by $0.4 million due to an increase in revenue.

Affordable Real Estate Operations

Our affordable segment consists of properties we classify as same store or other. Our criteria for classifying affordable properties as same store or other are consistent with those for our conventional properties described above. Our definitions of same store and other properties may result in these portfolios for the three month periods differing from such portfolios for the six month periods for the purpose of comparing 2011 to 2010 results.

At June 30, 2010, our affordable same store portfolio and other affordable portfolio consisted of 147 and 58 properties with 18,478 and 5,928 units, respectively. During the six months ended June 30, 2011, our affordable same store portfolio decreased on a net basis by six properties, consisting of:

• the removal of 13 properties, with 1,276 units that were sold or classified as held for sale through June 30, 2011 and for which the results have been reclassified into discontinued operations; and

• the inclusion during the three months ended June 30, 2011 of seven properties with 1,395 units that were previously classified as redevelopment properties.

We did not have a significant economic ownership in any of the properties classified as other affordable properties for the three months ended June 30, 2011 and 2010; accordingly this portfolio is excluded from the discussion of proportionate results for the three month periods shown below.

	Three Months Ended June 30,
	2011		2010		$ Change			% Change
Affordable same store:
Rental and other property revenues	$	32,826	$	31,661	$	1,165			3.7	%
Property operating expenses		13,599		13,924		(325	)		(2.3	%)
Property net operating income	$	19,227	$	17,737	$	1,490			8.4	%

For the three months ended June 30, 2011, as compared to the three months ended June 30, 2010, the proportionate property net operating income of our affordable same store properties increased $1.5 million, or 8.4%. This increase in net operating income consisted of a $1.2 million increase in revenue and a $0.3 million decrease in expense. Affordable same store revenue increased partially due to higher average rent ($33 per unit) and higher average physical occupancy (15 basis points) at these properties as well as an increase in miscellaneous income. Affordable same store expenses decreased primarily due to a reduction in insurance expense.

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The seven properties reclassified from other affordable (redevelopment) to affordable same store during the three months ended June 30, 2011 did not meet the same store requirements for the comparable six month periods ended June 30 and accordingly these properties are included in other affordable in the following comparison of the results of operations of our affordable segment for the six months ended June 30, 2011 and 2010.

	Six Months Ended June 30,
	2011		2010		$ Change			% Change
Rental and other property revenues:
Affordable same store	$	58,511	$	55,980	$	2,531			4.5	%
Other Affordable		7,193		6,743		450			6.7	%
Total		65,704		62,723		2,981			4.8	%
Property operating expenses:
Affordable same store		24,300		26,033		(1,733	)		(6.7	%)
Other Affordable		3,046		2,772		274			9.9	%
Total		27,346		28,805		(1,459	)		(5.1	%)
Property net operating income:
Affordable same store		34,211		29,947		4,264			14.2	%
Other Affordable		4,147		3,971		176			4.4	%
Total	$	38,358	$	33,918	$	4,440			13.1	%

For the six months ended June 30, 2011, as compared to the six months ended June 30, 2010, the proportionate property net operating income of our affordable segment increased $4.4 million, or 13.1%. Affordable same store net operating income increased by $4.3 million, consisting of a $2.5 million increase in revenue and a $1.7 million decrease in expense. Affordable same store revenue increased partially due to retroactive rent increases awarded in 2011 under government subsidy programs at certain of our affordable properties, $0.2 million of which relates to previous years and is reflected in higher average rent ($34 per unit), and higher average physical occupancy (24 basis points) at our affordable same store properties. Affordable same store expenses decreased primarily due to reductions in personnel and related costs and real estate tax expense, the majority of which relates to revaluations associated with 2010 and prior years. The increase in our affordable segment’s proportionate property net operating income was also due to higher net operating income of our other affordable properties of $0.2 million.

Non-Segment Real Estate Operations

Real estate operations net operating income amounts not attributed to our conventional or affordable segments include property management revenues and expenses and casualty losses, reported in consolidated amounts, which we do not allocate to our conventional or affordable segments for purposes of evaluating segment performance (see Note 7 to the condensed consolidated financial statements in Item 1).

For the three months ended June 30, 2011, as compared to 2010, property management revenues decreased by $0.4 million, from $0.7 million to $0.3 million, primarily due to a reduction in the number of properties managed for third parties. For the three months ended June 30, 2011, as compared to 2010, property operating expenses not allocated to our conventional or affordable segments, including property management expenses and casualty losses, decreased by $4.3 million. Casualty losses decreased by $2.5 million, from $4.5 million to $2.0 million, primarily due to a lower volume of small claim losses during 2011 than in 2010 as well as several larger dollar losses in 2010. Property management expenses decreased by $1.8 million, from $12.3 million to $10.5 million, due to a reduction in personnel and related expenses, which in part resulted from fewer properties managed for third parties.

For the six months ended June 30, 2011, as compared to 2010, property management revenues decreased by $0.5 million, from $1.4 million to $0.9 million, due to a reduction in the number of properties managed for third parties. For the six months ended June 30, 2011, as compared to 2010, property operating expenses not allocated to our conventional or affordable segments, including property management expenses and casualty losses, decreased by $1.7 million. Property management expenses decreased by $3.1 million, from $24.2 million to $21.1 million, due to a reduction in personnel and related expenses resulting from a reduction in the number of properties managed for third parties. Casualty losses increased by $1.4 million from $6.0 million to $7.4 million, primarily due to $3.5 million of losses in 2011 from severe snow storms in the Northeast that damaged several properties.

Asset Management and Tax Credit Revenues

We perform activities and services for consolidated and unconsolidated real estate partnerships, including portfolio strategy, capital allocation, joint ventures, tax credit syndication, acquisitions and dispositions. These activities are conducted in part by our taxable subsidiaries, and the related net operating income may be subject to income taxes.

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For the three months ended June 30, 2011, compared to the three months ended June 30, 2010, asset management and tax credit revenues decreased $2.1 million. This decrease is primarily attributable to $1.2 million of promote income, which is income earned in connection with the disposition of properties owned by our consolidated joint ventures, recognized on properties that were sold in 2010 for which no similar income was recognized in 2011, and a $0.7 million decrease in general partner transactional fees.

For the six months ended June 30, 2011, compared to the six months ended June 30, 2010, asset management and tax credit revenues increased $2.4 million. This increase is partially attributable to a reduction of asset management and tax credit revenues recognized during 2010 for which no corresponding reductions were recognized in 2011, including a $2.4 million write off of syndication fees receivable we determined were uncollectible. Asset management and tax credit revenues also increased during the six months ended June 30, 2011, as compared to the six months ended June 30, 2010, primarily due to our recognition of $1.3 million of asset management fees in connection with a transaction with the principals of a portfolio of properties for which we provided asset management and other services. As part of our ongoing effort to simplify our business, we resigned from our role providing asset or property management services for approximately 100 properties and we agreed to receive a reduced payment on asset management and other fees owed to us, a portion of which was not previously recognized based on concerns regarding collectibility. We received cash and notes receivable that are guaranteed by a principal in the portfolio and that have a security interest in distributable proceeds from the sale of certain properties in the portfolio. These increases in asset management and tax credit revenues during the six months ended June 30, 2011 were partially offset by a decrease in general partner transactional fees.

Investment Management Expenses

Investment management expenses consist primarily of the costs of personnel who perform asset management and tax credit activities. For the three and six months ended June 30, 2011, compared to the three and six months ended June 30, 2010, investment management expenses decreased $3.0 million and $3.2 million, respectively. This decrease is primarily due to our write off during 2010 of previously deferred costs on tax credit projects we abandoned and a reduction in personnel and related costs.

Depreciation and Amortization

For the three and six months ended June 30, 2011, compared to the three and six months ended June 30, 2010, depreciation and amortization decreased $8.7 million, or 8.5%, and $13.0 million, or 6.3%, respectively. These decreases were primarily due to short-lived real estate assets that became fully depreciated in 2010 and adjustments of depreciation recognized during 2011 related to revisions of the estimated useful lives of certain real estate assets.

General and Administrative Expenses

For the three and six months ended June 30, 2011, compared to the three and six months ended June 30, 2010, general and administrative expenses decreased $2.8 million, or 18.5% and $3.4 million, or 12.7%, respectively. These decreases are primarily attributable to net reductions in personnel and related expenses.

Other Expenses (Income), Net

Other expenses (income), net includes franchise taxes, risk management activities, partnership administration expenses and certain non-recurring items. For the three and six months ended June 30, 2011, compared to the three and six months ended June 30, 2010, other expenses, net increased by $9.7 million and $11.3 million, respectively. These net increases are primarily attributable to the favorable settlement of certain litigation matters during 2010, for which there was no comparable activity in 2011.

Interest Income

Interest income consists primarily of interest on notes receivable from non-affiliates and unconsolidated real estate partnerships, interest on cash and restricted cash accounts, and accretion of discounts on certain notes receivable from unconsolidated real estate partnerships. Transactions that result in accretion may occur infrequently and thus accretion income may vary from period to period.

For the three months ended June 30, 2011, compared to the three months ended June 30, 2010, interest income increased by $0.3 million, or 18.1%. This increase is primarily due to accretion of income on our investment during the three months ended June 30, 2011 in the first loss and mezzanine positions in a securitization trust that holds certain of our property loans payable (see Note 4 to the condensed consolidated financial statements in Item 1 for additional information regarding these investments).

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For the six months ended June 30, 2011, compared to the six months ended June 30, 2010, interest income decreased by $0.6 million, or 11.4%. This decrease is primarily due to accretion income recognized in 2010 for which no similar accretion income was recognized in 2011.

Interest Expense

For the three and six months ended June 30, 2011, compared to the three and six months ended June 30, 2010, interest expense, which includes the amortization of deferred financing costs, increased by $20.5 million, or 26.9%, and $19.2 million, or 12.6%, respectively. These increases were primarily attributable to our recognition of $20.7 million of prepayment penalties and the write off of $2.3 million of deferred loan costs in connection with the completion of a series of financing transactions that are discussed further in Note 4 to the condensed consolidated financial statements in Item 1. These increases were partially offset by decreases in property and corporate level interest due to lower average balances outstanding during 2011.

Equity in (Losses) Earnings of Unconsolidated Real Estate Partnerships

Equity in (losses) earnings of unconsolidated real estate partnerships includes our share of net earnings or losses of our unconsolidated real estate partnerships, and may include impairment losses, gains or losses on the disposition of real estate assets or depreciation expense, which generally exceeds the net operating income recognized by such unconsolidated partnerships. We generally own a nominal economic interest in the consolidated investment partnerships that hold the majority of our investments in unconsolidated subsidiaries, accordingly the equity in earnings and losses recognized by these entities are attributed to noncontrolling interests and had no significant effect on the amounts of net loss attributable to Aimco.

Gain on Dispositions of Unconsolidated Real Estate and Other

Gain on dispositions of unconsolidated real estate and other includes gains on disposition of interests in unconsolidated real estate partnerships, gains on dispositions of land and other non-depreciable assets and certain costs related to asset disposal activities. Changes in the level of gains recognized from period to period reflect the changing level of disposition activity from period to period. Additionally, gains on properties sold are determined on an individual property basis or in the aggregate for a group of properties that are sold in a single transaction, and are not comparable period to period.

For the three and six months ended June 30, 2011, compared to the three and six months ended June 30, 2010, gain on dispositions of unconsolidated real estate and other decreased $2.2 million and $2.5 million, respectively. These decreases are primarily attributable to gains on the disposition of interests in unconsolidated real estate partnerships during the three months ended June 30, 2010. The majority of these gains was attributed to the noncontrolling interests in the consolidated partnerships that held these investments and accordingly these gains had no significant effect on net loss attributed to Aimco.

Income Tax Benefit

Certain of our operations or a portion thereof, including property management, asset management and risk management are conducted through taxable REIT subsidiaries, each of which we refer to as a TRS. A TRS is a C-corporation that has not elected REIT status and, as such, is subject to United States Federal corporate income tax. We use TRS entities to facilitate our ability to offer certain services and activities to our residents and investment partners that cannot be offered directly by a REIT. We also use TRS entities to hold investments in certain properties. Income taxes related to the results of continuing operations of our TRS entities are included in income tax benefit in our consolidated statements of operations.

For the three and six months ended June 30, 2011, compared to the three and six months ended June 30, 2010, income tax benefit decreased by $1.1 million and $2.4 million, respectively, primarily due to decreases in losses of our TRS entities.

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Income from Discontinued Operations, Net

The results of operations for properties sold during the period or designated as held for sale at the end of the period are generally required to be classified as discontinued operations for all periods presented. The components of net earnings that are classified as discontinued operations include all property-related revenues and operating expenses, depreciation expense recognized prior to the classification as held for sale, property-specific interest expense and debt extinguishment gains and losses to the extent there is secured debt on the property. In addition, any impairment losses on assets held for sale and the net gain or loss on the eventual disposal of properties held for sale are reported in discontinued operations.

For the three months ended June 30, 2011 and 2010, income from discontinued operations totaled $16.5 million and $28.1 million, respectively. The $11.6 million decrease in income from discontinued operations was principally due to a $7.2 million decrease in gain on dispositions of real estate, net of income taxes, and a $7.1 million decrease in operating income (inclusive of a $1.6 million increase in real estate impairment losses), partially offset by a $2.9 million decrease in interest expense.

For the six months ended June 30, 2011 and 2010, income from discontinued operations totaled $19.6 million and $47.0 million, respectively. The $27.4 million decrease in income from discontinued operations was principally due to a $27.0 million decrease in gain on dispositions of real estate, net of income taxes, and a $5.9 million decrease in operating income (inclusive of a $1.8 million decrease in real estate impairment losses), partially offset by a $5.7 million decrease in interest expense.

During the three months ended June 30, 2011, we sold or disposed of 15 consolidated properties for gross proceeds of $109.8 million and net proceeds of $30.4 million, resulting in a net gain of approximately $19.6 million (which is net of $0.1 million of related income taxes). During the three months ended June 30, 2010, we sold 11 consolidated properties for gross proceeds of $102.2 million and net proceeds of $26.3 million, resulting in a net gain of approximately $26.8 million (which is net of $0.2 million of related income taxes).

During the six months ended June 30, 2011, we sold or disposed of 27 consolidated properties for gross proceeds of $138.6 million and net proceeds of $41.8 million, resulting in a net gain of approximately $27.2 million (which is net of $0.3 million of related income taxes). During the six months ended June 30, 2010, we sold 23 consolidated properties for gross proceeds of $184.8 million and net proceeds of $47.4 million, resulting in a net gain of approximately $54.2 million (which includes $0.9 million of related income taxes).

The weighted average net operating income capitalization rates for our conventional and affordable property sales, which are calculated using the trailing twelve month net operating income prior to sale, less a 3.5% management fee, divided by gross proceeds, were 7.0% and 8.7%, respectively, for sales during the six months ended June 30, 2011, and 8.4% and 8.2%, respectively, for sales during the six months ended June 30, 2010.

For the three and six months ended June 30, 2011 and 2010, income from discontinued operations includes the operating results of the properties sold or classified as held for sale as of June 30, 2011.

Changes in the level of gains recognized from period to period reflect the changing level of our disposition activity from period to period. Additionally, gains on properties sold are determined on an individual property basis or in the aggregate for a group of properties that are sold in a single transaction, and are not comparable period to period (see Note 3 to the condensed consolidated financial statements in Item 1 for additional information on discontinued operations).

Noncontrolling Interests in Consolidated Real Estate Partnerships

Noncontrolling interests in consolidated real estate partnerships reflects the non-Aimco partners’, or noncontrolling partners’, share of operating results of consolidated real estate partnerships, as well as the noncontrolling partners’ share of property management fees, interest on notes and other amounts that we charge to such partnerships.

For the three months ended June 30, 2011 and 2010, we allocated net losses of $2.8 million, and $2.7 million, respectively, to noncontrolling interests in consolidated real estate partnerships, or a variance of $0.1 million. This change was primarily due to a $0.8 million increase in the noncontrolling interest partners’ share of income from discontinued operations, which was substantially offset by the noncontrolling interest partners’ share of an increase in the loss from continuing operations of our consolidated real estate partnerships.

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For the six months ended June 30, 2011, we allocated net losses of $10.1 million to noncontrolling interests in consolidated real estate partnerships, as compared to $9.4 million of net income allocated to these noncontrolling interests during the six months ended June 30, 2010, or a variance of $19.5 million. This change was primarily due to a $10.3 million decrease in the noncontrolling interest partners’ share of income from discontinued operations, which decreased primarily due to a reduction in gains on the dispositions of real estate allocated to noncontrolling interests during the six months ended June 30, 2011 as compared to 2010, and the noncontrolling interests’ share of a reversal during 2010 of approximately $11.2 million of excess equity in losses recognized in prior years, for which there was no comparable activity in 2011.

Critical Accounting Policies and Estimates

We prepare our consolidated financial statements in accordance with GAAP, which requires us to make estimates and assumptions. We believe that the following critical accounting policies involve our more significant judgments and estimates used in the preparation of our consolidated financial statements.

Impairment of Long-Lived Assets

Real estate and other long-lived assets to be held and used are stated at cost, less accumulated depreciation and amortization, unless the carrying amount of the asset is not recoverable. If events or circumstances indicate that the carrying amount of a property may not be recoverable, we make an assessment of its recoverability by comparing the carrying amount to our estimate of the undiscounted future cash flows, excluding interest charges, of the property. If the carrying amount exceeds the estimated aggregate undiscounted future cash flows, we recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the property.

From time to time, we have non-revenue producing properties that we hold for future redevelopment. We assess the recoverability of the carrying amount of these redevelopment properties by comparing our estimate of undiscounted future cash flows based on the expected service potential of the redevelopment property upon completion to the carrying amount. In certain instances, we use a probability-weighted approach to determine our estimate of undiscounted future cash flows when alternative courses of action are under consideration.

Real estate investments are subject to varying degrees of risk. Several factors may adversely affect the economic performance and value of our real estate investments. These factors include:

• the general economic climate;

• competition from other apartment communities and other housing options;

• local conditions, such as loss of jobs or an increase in the supply of apartments, that might adversely affect apartment occupancy or rental rates;

• changes in governmental regulations and the related cost of compliance;

• increases in operating costs (including real estate taxes) due to inflation and other factors, which may not be offset by increased rents;

• changes in tax laws and housing laws, including the enactment of rent control laws or other laws regulating multifamily housing; and

• changes in interest rates and the availability of financing.

Any adverse changes in these and other factors could cause an impairment of our long-lived assets, including real estate and investments in unconsolidated real estate partnerships. During the next twelve months, we expect to market for sale certain real estate properties that are inconsistent with our long-term investment strategy. For any properties that are sold or meet the criteria to be classified as held for sale during the next twelve months, the reduction in the estimated holding period for these assets or the requirement to reduce the carrying amounts of properties that become held for sale by the estimated costs to sell the assets may result in additional impairment losses.

Based on periodic tests of recoverability of long-lived assets, for the three and six months ended June 30, 2011 and 2010, we recorded no impairment losses related to properties to be held and used. During the three months ended June 30, 2011 and 2010, we recognized impairment losses of $2.5 million and $0.9 million, respectively, and during the six months ended June 30, 2011 and 2010, we recognized impairment losses of $6.3 million and $8.1 million, respectively, for properties included in discontinued operations, primarily due to reductions in the estimated holding periods for assets sold during these periods or our reduction of the carrying amounts of assets that were classified as held for sale by the estimated costs to sell the assets.

Other assets in our condensed consolidated balance sheet in Item 1 include $65.4 million of goodwill related to our conventional and affordable reportable segments as of June 30, 2011. We annually evaluate impairment of intangible assets using an impairment test that compares the fair value of the reporting units with the carrying amounts, including goodwill. We performed our last annual impairment analysis in 2010 and concluded no impairment was necessary. We will perform our next impairment analysis during the three months ending September 30, 2011, and do not anticipate recognizing an impairment of goodwill in connection with this analysis. As further discussed in Note 3 to the condensed consolidated financial statements in Item 1, we allocate goodwill to real estate properties when they are sold or classified as held for sale, based on the relative fair values of these properties and the retained properties in each reportable segment.

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Notes Receivable and Interest Income Recognition

Notes receivable from unconsolidated real estate partnerships and from non-affiliates represent our two portfolio segments (as defined in FASB ASC Topic 310) that we use to evaluate for potential loan loss. Notes receivable from unconsolidated real estate partnerships consist primarily of notes receivable from partnerships in which we are the general partner but do not consolidate the partnership. These loans are typically due on demand, have no stated maturity date and may not require current payments of principal or interest. Notes receivable from non-affiliates have stated maturity dates and may require current payments of principal and interest. Repayment of our notes is subject to a number of variables, including the performance and value of the underlying real estate properties and the claims of unaffiliated mortgage lenders, which are generally senior to our claims. Our notes receivable consist of two classes: loans extended by us that we carry at the face amount plus accrued interest, which we refer to as “par value notes”; and loans extended by predecessors whose positions we generally acquired at a discount, which we refer to as “discounted notes.”

We record interest income on par value notes as earned in accordance with the terms of the related loan agreements. We discontinue the accrual of interest on such notes when the notes are impaired, as discussed below, or when there is otherwise significant uncertainty as to the collection of interest. We record income on such nonaccrual loans using the cost recovery method, under which we apply cash receipts first to the recorded amount of the loan; thereafter, any additional receipts are recognized as income.

We recognize interest income on discounted notes receivable based upon whether the amount and timing of collections are both probable and reasonably estimable. We consider collections to be probable and reasonably estimable when the borrower has closed or entered into certain pending transactions (which include real estate sales, refinancings, foreclosures and rights offerings) that provide a reliable source of repayment. In such instances, we recognize accretion income, on a prospective basis using the effective interest method over the estimated remaining term of the notes, equal to the difference between the carrying amount of the discounted notes and the estimated collectible value. We record income on all other discounted notes using the cost recovery method.

Provision for Losses on Notes Receivable

We assess the collectibility of notes receivable on a periodic basis, which assessment consists primarily of an evaluation of cash flow projections of the borrower to determine whether estimated cash flows are sufficient to repay principal and interest in accordance with the contractual terms of the note. We update our cash flow projections of the borrowers annually, and more frequently for certain loans depending on facts and circumstances. We recognize provisions for losses on notes receivable when it is probable that principal and interest will not be received in accordance with the contractual terms of the loan. Factors that affect this assessment include the fair value of the partnership’s real estate, pending transactions to refinance the partnership’s senior obligations or sell the partnership’s real estate, and market conditions (current and forecasted) related to a particular asset. The amount of the provision to be recognized generally is based on the fair value of the partnership’s real estate that represents the primary source of loan repayment. In certain instances where other sources of cash flow are available to repay the loan, the provision is measured by discounting the estimated cash flows at the loan’s original effective interest rate.

During the three months ended June 30, 2011, we recognized a net provision for losses on notes receivable of less than $0.1 million, as compared to a $0.1 million net recovery of previously recognized provision for losses on notes receivable during the three months ended June 30, 2010. During the six months ended June 30, 2011 and 2010, we recorded provisions for losses on notes receivable of $0.1 million and $0.3 million, respectively. We will continue to evaluate the collectibility of these notes, and we will adjust related allowances in the future due to changes in market conditions and other factors.

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Capitalized Costs

We capitalize costs, including certain indirect costs, incurred in connection with our capital additions activities, including redevelopment and construction projects, other tangible property improvements and replacements of existing property components. Included in these capitalized costs are payroll costs associated with time spent by site employees in connection with the planning, execution and control of all capital additions activities at the property level. We characterize as “indirect costs” an allocation of certain department costs, including payroll, at the area operations and corporate levels that clearly relate to capital additions activities. We capitalize interest, property taxes and insurance during periods in which redevelopment and construction projects are in progress. We charge to expense as incurred costs that do not relate to capital additions activities, including ordinary repairs, maintenance, resident turnover costs and general and administrative expenses.

For the three months ended June 30, 2011 and 2010, for continuing and discontinued operations, we capitalized $3.4 million and $2.6 million of interest costs, respectively, and $6.2 million and $6.1 million of site payroll and indirect costs, respectively. For the six months ended June 30, 2011 and 2010, for continuing and discontinued operations, we capitalized $6.4 million and $5.4 million of interest costs, respectively, and $12.7 million and $12.8 million of site payroll and indirect costs, respectively.

Funds From Operations

Funds From Operations, or FFO, is a non-GAAP financial measure that we believe, when considered with the financial statements determined in accordance with GAAP, is helpful to investors in understanding our performance because it captures features particular to real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than do other depreciable assets such as machinery, computers or other personal property. The Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT, defines FFO as net income (loss), computed in accordance with GAAP, excluding gains from sales of depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. We compute FFO for all periods presented in accordance with the guidance set forth by NAREIT’s April 1, 2002, White Paper, which we refer to as the White Paper. We calculate FFO attributable to Aimco common stockholders (diluted) by subtracting redemption or repurchase related preferred stock issuance costs and dividends on preferred stock and adding back dividends/distributions on dilutive preferred stock and discounts on preferred stock redemptions or repurchases. FFO should not be considered an alternative to net income or net cash flows from operating activities, as determined in accordance with GAAP, as an indication of our performance or as a measure of liquidity. FFO is not necessarily indicative of cash available for future needs. In addition, although FFO is a measure used for comparability in assessing the performance of REITs, there can be no assurance that our basis for computing FFO is comparable with that of other REITs.

In addition to FFO, we compute an alternate measure of FFO, which we refer to as Pro forma FFO, and which is FFO attributable to Aimco common stockholders (diluted), excluding operating real estate impairments and preferred equity redemption related amounts (adjusted for noncontrolling interests). Both operating real estate impairment losses and preferred equity redemption related amounts are items that periodically affect our operating results. We exclude operating real estate impairment losses, net of related income tax benefits and noncontrolling interests, from our calculation of Pro forma FFO because we believe the inclusion of such losses in FFO is inconsistent with the treatment of gains on the disposition of operating real estate, which are not included in FFO. We exclude preferred equity redemption related amounts (gains or losses) from our calculation of Pro forma FFO because such amounts are not representative of our operating results. Similar to FFO, we believe Pro forma FFO is helpful to investors in understanding our performance because it captures features particular to real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than do other depreciating assets such as machinery, computers or other personal property. Not all REITs present an alternate measure of FFO similar to our Pro forma FFO measure and there can be no assurance our basis for calculating Pro forma FFO is comparable to those of other REITs.

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For the three and six months ended June 30, 2011 and 2010, our FFO and Pro forma FFO are calculated as follows (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Net loss attributable to Aimco common stockholders (1)	$	(33,177	)	$	(17,995	)	$	(64,950	)	$	(58,393	)
Adjustments:
Depreciation and amortization		94,084			102,809			193,117			206,092
Depreciation and amortization related to non-real estate assets		(3,265	)		(3,814	)		(6,474	)		(7,752	)
Depreciation of rental property related to noncontrolling partners and unconsolidated entities (2)		(8,412	)		(10,781	)		(17,635	)		(21,289	)
Gain on dispositions of unconsolidated real estate and other, net of noncontrolling partners’ interest		(669	)		(594	)		(794	)		(1,100	)
Discontinued operations:
Gain on dispositions of real estate, net of noncontrolling partners’ interest (2)		(12,845	)		(22,245	)		(19,397	)		(39,478	)
Depreciation of rental property, net of noncontrolling partners’ interest (2)		1,417			4,443			3,351			9,552
Income tax expense (benefit) arising from disposals		82			152			260			(900	)
Noncontrolling interests in Aimco Operating Partnership’s share of above adjustments		(4,845	)		(4,865	)		(10,546	)		(10,102	)
Preferred stock dividends		12,421			12,907			24,877			25,829
Preferred stock redemption related gains		(2,749	)		(2,779	)		(2,749	)		(2,779	)
Amounts allocable to participating securities		54			42			111			—
FFO	$	42,096		$	57,280		$	99,171		$	99,680
Preferred stock dividends		(12,421	)		(12,907	)		(24,877	)		(25,829	)
Preferred stock redemption related gains		2,749			2,779			2,749			2,779
Amounts allocable to participating securities		(128	)		(234	)		(349	)		(345	)
FFO attributable to Aimco common stockholders — diluted	$	32,296		$	46,918		$	76,694		$	76,285
Operating real estate impairment losses, net of noncontrolling partners’ interest and related income tax benefit		2,706			3,701			4,181			11,910
Preferred stock redemption related gains		(2,749	)		(2,779	)		(2,749	)		(2,779	)
Noncontrolling interests in Aimco Operating Partnership’s share of above adjustments		3			(64	)		(99	)		(636	)
Amounts allocable to participating securities		—			(5	)		(7	)		(45	)
Pro forma FFO attributable to Aimco common stockholders — diluted	$	32,256		$	47,771		$	78,020		$	84,735
FFO and Pro forma FFO attributable to Aimco common stockholders — diluted (3)
Weighed average common shares outstanding — diluted (earnings per share)		119,156			116,323			118,238			116,179
Dilutive common share equivalents securities		328			336			329			317
Total		119,484			116,659			118,567			116,496

Notes:

(1) Represents the numerator for calculating earnings per common share in accordance with GAAP (see Note 6 to the condensed consolidated financial statements in Item 1).

(2) “Noncontrolling partners” refers to noncontrolling partners in our consolidated real estate partnerships.

(3) Represents the denominator for earnings per common share — diluted, calculated in accordance with GAAP, plus common share equivalents and preferred securities that are dilutive for FFO and Pro forma FFO.

Liquidity and Capital Resources

Liquidity is the ability to meet present and future financial obligations. Our primary source of liquidity is cash flow from our operations. Additional sources are proceeds from property sales, proceeds from refinancings of existing property loans, borrowings under new property loans and borrowings under our revolving credit facility.

Our principal uses for liquidity include normal operating activities, payments of principal and interest on outstanding property debt, capital expenditures, dividends paid to stockholders and distributions paid to noncontrolling interest partners and acquisitions of, and investments in, properties. We use our cash and cash equivalents and our cash provided by operating activities to meet short-term liquidity needs. In the event that our cash and cash equivalents and cash provided by operating activities are not sufficient to cover our short-term liquidity needs, we have additional means, such as short-term borrowing availability and proceeds from property sales and refinancings, to help us meet our short-term liquidity needs. We may use our revolving credit facility for general corporate purposes and to fund investments on an interim basis. We expect to meet our long-term liquidity requirements, such as debt maturities and property acquisitions, through long-term borrowings, primarily secured, the issuance of equity securities (including OP Units), the sale of properties and cash generated from operations.

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The availability of credit and its related effect on the overall economy may affect our liquidity and future financing activities, both through changes in interest rates and access to financing. Currently, interest rates are low compared to historical levels, many lenders have reentered the market, and the CMBS market is showing signs of recovery. However, any adverse changes in the lending environment could negatively affect our liquidity. We believe we mitigate this exposure through our continued focus on reducing our short and intermediate term maturity risk, by refinancing such loans with long-dated, fixed-rate property loans. If property financing options become unavailable for our debt needs, we may consider alternative sources of liquidity, such as reductions in certain capital spending or proceeds from asset dispositions.

As further discussed in Item 3, Quantitative and Qualitative Disclosures About Market Risk, we are subject to interest rate risk associated with certain variable rate liabilities and preferred stock. At June 30, 2011, we estimate that a 1.0% increase in 30-day LIBOR with constant credit risk spreads would reduce our net income (or increase our net loss) attributable to Aimco common stockholders by approximately $3.1 million, or $0.03 per common share, on an annual basis. The effect of an increase in 30-day LIBOR may be mitigated by the effect of our variable rate assets.

As further discussed in Note 2 to our condensed consolidated financial statements in Item 1, we use total rate of return swaps as a financing product to lower our cost of borrowing through conversion of fixed-rate debt to variable-rates. The cost of financing through these arrangements is generally lower than the fixed rate on the debt. As of June 30, 2011, we had total rate of return swap positions with two financial institutions with notional amounts totaling $164.6 million. Swaps with notional amounts of $150.4 million and $14.2 million have maturity dates in May 2012 and October 2012, respectively. During the three and six months ended June 30, 2011, we received net cash receipts of $3.2 million and $7.7 million, respectively, under the total return swaps, which positively affected our liquidity. To the extent interest rates increase above the fixed rates on the underlying borrowings, our obligations under the total return swaps will negatively affect our liquidity.

During 2011 and 2010, we refinanced certain of the underlying borrowings subject to total rate of return swaps with long-dated, fixed-rate property debt, and we expect to do the same with certain of the underlying borrowings in the remainder of 2011. The average effective interest rate associated with our borrowings subject to the total rate of return swaps was 1.6% at June 30, 2011. To the extent we are successful in refinancing additional of the borrowings subject to the total rate of return swaps during the remainder of 2011, we anticipate the interest cost associated with these borrowings will increase, which would negatively affect our liquidity.

We periodically evaluate counterparty credit risk associated with these arrangements. In the event a counterparty were to default under these arrangements, loss of the net interest benefit we generally receive under these arrangements, which is equal to the difference between the fixed rate we receive and the variable rate we pay, may adversely affect our liquidity. However, at the current time, we have concluded we do not have material exposure.

The total rate of return swaps require specified loan-to-value ratios. In the event the values of the real estate properties serving as collateral under these agreements decline or if we sell properties in the collateral pool with low loan-to-value ratios, certain of our consolidated subsidiaries have an obligation to pay down the debt or provide additional collateral pursuant to the swap agreements, which may adversely affect our cash flows. The obligation to provide collateral is limited to these subsidiaries and is non-recourse to us. At June 30, 2011, these subsidiaries had provided $6.2 million of cash collateral pursuant to the swap agreements to satisfy the loan-to-value requirements, which was returned to these subsidiaries during July 2011.

As of June 30, 2011, the amount available under our revolving credit facility was $251.5 million (after giving effect to $21.5 million of outstanding borrowings and $27.0 million outstanding for undrawn letters of credit issued under the revolving credit facility).

At June 30, 2011, we had $85.3 million in cash and cash equivalents, a decrease of $26.0 million from December 31, 2010. At June 30, 2011, we had $196.4 million of restricted cash, a decrease of $4.1 million from December 31, 2010. Restricted cash primarily consists of reserves and escrows held by lenders for bond sinking funds, capital additions, property taxes and insurance. In addition, cash, cash equivalents and restricted cash are held by partnerships that are not presented on a consolidated basis. The following discussion relates to changes in cash due to operating, investing and financing activities, which are presented in our condensed consolidated statements of cash flows in Item 1.

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Operating Activities

For the six months ended June 30, 2011, our net cash provided by operating activities of $95.2 million was primarily related to operating income from our consolidated properties, which is affected primarily by rental rates, occupancy levels and operating expenses related to our portfolio of properties, in excess of payments of operating accounts payable and accrued liabilities. Cash provided by operating activities for the six months ended June 30, 2011 decreased by $15.8 million as compared to the six months ended June 30, 2010, primarily due to the $20.7 million prepayment penalties incurred during 2011 on the property loan refinancings discussed in Note 4 to the condensed consolidated financial statements in Item 1, partially offset by a net increase in the net operating income of our properties in continuing and discontinued operations.

Investing Activities

For the six months ended June 30, 2011, our net cash used in investing activities of $33.5 million consisted primarily of capital expenditures and our purchase of the first loss and mezzanine positions in a securitization trust that holds some of our property loans payable (see Note 4 to the condensed consolidated financial statements in Item 1 for further discussion), substantially offset by proceeds from disposition of real estate and capital improvement escrows released in connection with refinancing of the related property debt.

Although we hold all of our properties for investment, we sell properties when they do not meet our investment criteria or are located in areas that we believe do not justify our continued investment when compared to alternative uses for our capital. During the six months ended June 30, 2011, we sold or disposed of 27 consolidated properties for an aggregate sales price of $138.6 million, generating proceeds totaling $128.2 million, after the payment of transaction costs and debt prepayment penalties. The $128.2 million is inclusive of debt assumed by buyers. Net cash proceeds from property sales were used primarily to repay property debt and for other corporate purposes.

Capital expenditures totaled $61.8 million during the six months ended June 30, 2011, and consisted primarily of Capital Replacements and Capital Improvements, and, to a lesser extent, spending for redevelopment projects and casualties. Capital Replacements represent the share of capital additions that are deemed to replace the consumed portion of acquired capital assets and Capital Improvements represent non-redevelopment capital additions that are made to enhance the value of capital assets.

Financing Activities

For the six months ended June 30, 2011, net cash used in financing activities of $87.7 million was primarily attributed to debt principal payments, dividends paid to common and preferred stockholders and distributions to noncontrolling interests. Proceeds from property loans and our issuance of common stock partially offset the cash outflows.

Property Debt

At June 30, 2011 and December 31, 2010, we had $5.3 billion and $5.5 billion, respectively, in consolidated property debt outstanding, which included $24.0 million and $112.0 million, respectively, of property debt classified within liabilities related to assets held for sale. During the six months ended June 30, 2011, we refinanced $657.0 million of property loans on 26 properties and closed two new loans on one property, generating $662.6 million of proceeds from borrowings with a weighted average interest rate of 4.96% (before the adjustment for the interest income to be received on our investments in the first loss and mezzanine positions in the securitization trust that holds certain of our property loans, which is further discussed in Note 4 to the consolidated financial statements in Item 1). After payment of transaction costs and distributions to limited partners, these refinancing resulted in an $11.9 million net use of cash, which we funded using proceeds from property sales and available cash. We intend to continue to refinance property debt primarily as a means of extending current and near term maturities and to finance certain capital projects.

As further discussed in Note 4 to the condensed consolidated financial statements in Item 1, during the three months ended June 30, 2011, we completed a series of financing transactions that repaid $625.7 million of non-recourse property loans that were scheduled to mature between the years 2012 and 2016 with $673.8 million of new non-recourse property loans. All of the new loans have a ten year term, with principal scheduled to amortize over 30 years, and the loans have a weighted average interest rate of 5.49%. Subsequent to origination, the new loans were sold to Federal Home Loan Mortgage Corp, or Freddie Mac, which then securitized the new loans. As part of the securitization transaction, we purchased for $51.5 million the first loss and mezzanine positions in the securitization trust, which have a face value of $100.9 million and stated maturity dates corresponding to the terms of the loans held by the trust. By acquiring the first loss and mezzanine positions, we will be receiving interest income generated from our own property debt obligations and we have, in effect, reduced our property loan balances by $100.9 million, furthering our goal to lower leverage and improve coverages. The net interest rate of the loans, which represents the weighted average interest rate of the new loans, less the interest income that will be earned from the first loss position and mezzanine positions from the securitization trust, is 5.19%.

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Credit Facility

We have an Amended and Restated Senior Secured Credit Agreement, as amended, with a syndicate of financial institutions, which we refer to as the Credit Agreement. The Credit Agreement consists of $300.0 million of revolving loan commitments. Borrowings under the revolving credit facility bear interest based on a pricing grid determined by leverage (currently either LIBOR plus 4.25% with a LIBOR floor of 1.50% or, at our option, a base rate equal to the Prime rate plus a spread of 3.00%). The revolving credit facility matures May 1, 2013, and may be extended for one year, subject to certain conditions, including payment of a 35.0 basis point fee on the total revolving commitments.

The amount available under the revolving credit facility at June 30, 2011, was $251.5 million (after giving effect to $21.5 million of outstanding borrowings and $27.0 million outstanding for undrawn letters of credit issued under the revolving credit facility). The proceeds of revolving loans are generally used to fund working capital and for other corporate purposes.

Our Credit Agreement requires us to satisfy covenant ratios of earnings before interest, taxes and depreciation and amortization to debt service and earnings to fixed charges of 1.40:1 and 1.20:1, respectively. For the twelve months ended June 30, 2011, as calculated based on the provisions in our Credit Agreement, we had a ratio of earnings before interest, taxes and depreciation and amortization to debt service of 1.59:1 and a ratio of earnings to fixed charges of 1.35:1. We expect to remain in compliance with these covenants during the next twelve months. In the three months ending March 31, 2012, the covenant ratios of earnings before interest, taxes and depreciation and amortization to debt service and earnings to fixed charges required by our Credit Agreement will increase to 1.50:1 and 1.30:1, respectively.

Equity Transactions

During the six months ended June 30, 2011, we paid cash dividends or distributions totaling $24.9 million, $28.6 million and $5.4 million to preferred stockholders, common stockholders and noncontrolling interests in the Aimco Operating Partnership, respectively.

During the six months ended June 30, 2011, we paid cash distributions of $16.6 million to noncontrolling interests in consolidated real estate partnerships, primarily related to property sales during 2011 and late 2010.

During the six months ended June 30, 2011, we sold 2.8 million shares of Common Stock under our “at the market,” or ATM, offering program, generating $70.6 million of gross proceeds, or $69.2 million net of commissions. Sales of 325,000 of these shares were initiated during the six months ended June 30, 2011, but settled in the subsequent period. Accordingly, for accounting purposes these shares were not reflected as issued and outstanding during the six months ended June 30, 2011, and the net proceeds of $8.2 million will be recognized in the subsequent period. We used the net proceeds to fund the prepayment penalties and purchase of the investments discussed in Note 4 to the condensed consolidated financial statements in Item 1.

Pursuant to our ATM offering program, we may issue up to 3.6 million additional shares of our Common Stock. Additionally, we and the Aimco Operating Partnership have a shelf registration statement that provides for the issuance of debt and equity securities by Aimco and debt securities by the Aimco Operating Partnership.

During the six months ended June 30, 2011, we acquired the remaining noncontrolling limited partnership interests in six consolidated real estate partnerships that own nine properties and in which our affiliates serve as general partner, for a total cost of $13.6 million.

Future Capital Needs

We expect to fund any future acquisitions, redevelopment projects, Capital Improvements and Capital Replacements principally with proceeds from property sales (including tax-free exchange proceeds), short-term borrowings, debt and equity financing (including tax credit equity) and operating cash flows.

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ITEM 3. Quantitative and Qualitative Disclosures About Market Risk

Our primary market risk exposure relates to changes in base interest rates, credit risk spreads and availability of credit. We are not subject to any other material market rate or price risks. We use predominantly long-term, fixed-rate non-recourse property debt in order to avoid the refunding and repricing risks of short-term borrowings. We use short-term debt financing and working capital primarily to fund short-term uses and acquisitions and generally expect to refinance such borrowings with cash from operating activities, property sales proceeds, long-term debt or equity financings. We use total rate-of-return swaps to obtain the benefit of variable rates on certain of our fixed-rate debt instruments. We make limited use of other derivative financial instruments and we do not use them for trading or other speculative purposes.

We had $367.7 million of floating rate debt and $47.0 million of floating rate preferred stock outstanding at June 30, 2011. Of the total floating rate debt, the major components were floating rate tax-exempt bond financing ($284.9 million) and floating rate secured notes ($52.8 million). Floating rate tax-exempt bond financing is benchmarked against the SIFMA rate, which since 1991 has averaged 76% of the 30-day LIBOR rate. If this historical relationship continues, we estimate that an increase in 30-day LIBOR of 100 basis points (76 basis points for tax-exempt interest rates) with constant credit risk spreads would result in net income and net income attributable to Aimco common stockholders being reduced (or the amounts of net loss and net loss attributable to Aimco common stockholders being increased) by $3.1 million on an annual basis.

At June 30, 2011, we had approximately $409.0 million in cash and cash equivalents, restricted cash and notes receivable, a portion of which bear interest at variable rates, and which may mitigate the effect of an increase in variable rates on our variable-rate indebtedness and preferred stock discussed above.

The estimated aggregate fair value and carrying amount of our consolidated debt (including amounts reported in liabilities related to assets held for sale) was approximately $5.5 billion and $5.4 billion, respectively at June 30, 2011. If market rates for our fixed-rate debt were higher by 1.0% with constant credit risk spreads, the estimated fair value of our debt discussed above would decrease from $5.5 billion to $5.2 billion. If market rates for our debt discussed above were lower by 1.0% with constant credit risk spreads, the estimated fair value of our fixed-rate debt would increase from $5.5 billion to $5.9 billion.

ITEM 4. Controls and Procedures

Disclosure Controls and Procedures

Our management, with the participation of our chief executive officer and chief financial officer, has evaluated the effectiveness of our 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, our chief executive officer and chief financial officer have concluded that, as of the end of such period, our disclosure controls and procedures are effective.

Changes in Internal Control Over Financial Reporting

During the three months ended June 30, 2011, we completed the implementation of an updated version of our general ledger software. In connection with this implementation, we revised certain internal control procedures related to our accounting and reporting processes.

PART II. OTHER INFORMATION

ITEM 1A. Risk Factors

As of the date of this report, there have been no material changes from the risk factors in our Annual Report on Form 10-K for the year ended December 31, 2010.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) Unregistered Sales of Equity Securities. We did not issue any unregistered shares of Common Stock for cash or in exchange for common OP Units during the three months ended June 30, 2011.

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(c) Repurchases of Equity Securities. There were no repurchases of our equity securities during the three months ended June 30, 2011. Our Board of Directors has, from time to time, authorized us to repurchase shares of our outstanding capital stock. As of June 30, 2011, we were authorized to repurchase approximately 19.3 million additional shares. This authorization has no expiration date. These repurchases may be made from time to time in the open market or in privately negotiated transactions.

Dividend Payments. Our Credit Agreement includes customary covenants, including a restriction on dividends and other restricted payments, but permits dividends during any 12-month period in an aggregate amount of up to 95% of our Funds From Operations, subject to certain non-cash adjustments, for such period or such amount as may be necessary to maintain our REIT status.

ITEM 6. Exhibits

The following exhibits are filed with this report:

EXHIBIT NO. (1)

	3.1	Charter (Exhibit 3.1 to Aimco’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2011, is incorporated herein by this reference)
	3.2	Articles Supplementary, dated July 26, 2011 (Exhibit 3.3 to Aimco’s Registration Statement on Form 8-A, filed on July 27, 2011, is incorporated herein by this reference)
	3.3	Amended and Restated Bylaws (Exhibit 3.2 to Aimco’s Current Report on Form 8-K, dated February 2, 2010, is incorporated herein by this reference)
	10.1	Eleventh Amendment to Senior Secured Credit Agreement, dated as of May 20, 2011, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., and AIMCO/Bethesda Holdings, Inc., as the Borrowers, the pledgors and guarantors named therein, Bank of America, N.A., as administrative agent, swing line lender and L/C issuer, and the lenders party thereto
	31.1	Certification 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 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 Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
	32.2	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
	99.1	Agreement Regarding Disclosure of Long-Term Debt Instruments
101		XBRL (Extensible Business Reporting Language). The following materials from Apartment Investment and Management Company's Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2011, formatted in XBRL: (i) condensed consolidated balance sheets, (ii) condensed consolidated statements of operations, (iii) condensed consolidated statements of cash flows, and (iv) notes to condensed consolidated financial statements (2)

(1)	Schedules and supplemental materials to the exhibits have been omitted but will be provided to the Securities and Exchange Commission upon request.
(2)	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.

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SIGNATURES

Pursuant to the requirements 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.

APARTMENT INVESTMENT AND MANAGEMENT COMPANY
By:	/s/ ERNEST M. FREEDMAN
	Ernest M. Freedman
	Executive Vice President and Chief Financial Officer (duly authorized officer and principal financial officer)
By:	/s/ PAUL BELDIN
	Paul Beldin
	Senior Vice President and Chief Accounting Officer

Date: July 29, 2011

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EX-10.1

Exhibit 10.1

ELEVENTH AMENDMENT TO
AMENDED AND RESTATED
SENIOR SECURED CREDIT AGREEMENT

among

Apartment Investment and Management Company,
AIMCO Properties, L.P., and
AIMCO/Bethesda Holdings, Inc.,

as the Borrowers,
the Guarantors and
Pledgors named herein,

Bank of America, N.A.,
as Administrative Agent, Swing Line Lender
and L/C Issuer

and

The Other Financial
Institutions Party Hereto

Dated as of May 20, 2011

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

and

KEYBANC CAPITAL MARKETS

as Joint-Lead Arrangers

and

Joint Bookrunners

ELEVENTH AMENDMENT TO
AMENDED AND RESTATED
SENIOR SECURED CREDIT AGREEMENT

This ELEVENTH AMENDMENT TO AMENDED AND RESTATED SENIOR SECURED CREDIT AGREEMENT (this “Amendment”) is dated as of May 20, 2011 and entered into by and among APARTMENT INVESTMENT AND MANAGEMENT COMPANY, a Maryland corporation (the “REIT”), AIMCO PROPERTIES, L.P., a Delaware limited partnership (“AIMCO”), and AIMCO/BETHESDA HOLDINGS, INC., a Delaware corporation (“AIMCO/Bethesda”) (the REIT, AIMCO and AIMCO/Bethesda are collectively referred to herein as “Borrowers”), BANK OF AMERICA, N.A. (“Bank of America”), as Administrative Agent (in such capacity, “Administrative Agent”) and as Swing Line Lender and L/C Issuer, and the Lenders party hereto, and is made with reference to that certain Amended and Restated Senior Secured Credit Agreement, dated as of November 2, 2004, by and among Borrowers, each lender from time to time party thereto, BANK OF AMERICA, N.A., as Administrative Agent and as Swing Line Lender and L/C Issuer, and KeyBank National Association, as Syndication Agent (the “Original Credit Agreement”), as amended by that certain First Amendment to Amended and Restated Senior Secured Credit Agreement, dated June 16, 2005 (the “First Amendment”), as amended by that certain Second Amendment to Amended and Restated Senior Secured Credit Agreement, dated March 22, 2006 (the “Second Amendment”), as amended by that certain Third Amendment to Amended and Restated Senior Secured Credit Agreement, dated August 31, 2007 (“Third Amendment”), as amended by that certain Fourth Amendment to Amended and Restated Senior Secured Credit Agreement, dated September 14, 2007 (“Fourth Amendment”), as amended by that certain Fifth Amendment to Amended and Restated Senior Secured Credit Agreement, dated September 9, 2008 (“Fifth Amendment”), as amended by that certain Sixth Amendment to Amended and Restated Senior Secured Credit Agreement, dated May 1, 2009 (“Sixth Amendment”), as amended by that certain Seventh Amendment to Amended and Restated Senior Credit Agreement, dated August 4, 2009 (“Seventh Amendment”), as amended by that certain Eighth Amendment to Amended and Restated Senior Credit Agreement, dated February 3, 2010 (“Eighth Amendment”), as amended by that certain Ninth Amendment to Amended and Restated Senior Credit Agreement, dated May 14, 2010 (“Ninth Amendment”), and as amended by that certain Tenth Amendment to Amended and Restated Senior Credit Agreement, dated September 29, 2010 (“Tenth Amendment”) (the Original Credit Agreement as amended by the First Amendment, Second Amendment, Third Amendment, Fourth Amendment, Fifth Amendment, Sixth Amendment, Seventh Amendment, Eighth Amendment, Ninth Amendment and Tenth Amendment is referred to as the “Credit Agreement”; and the Credit Agreement as amended by this Amendment is referred to as the “Amended Agreement”). Capitalized terms used in this Amendment shall have the meanings set forth in the Credit Agreement unless otherwise defined herein.

RECITALS

WHEREAS, Borrowers desire to amend the Credit Agreement as more particularly set forth below;

WHEREAS, pursuant to the Credit Agreement, the amendments set forth herein require the consent of the L/C Issuer and the Required Lenders, and the L/C Issuer and the Required Lenders have consented hereto;

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NOW, THEREFORE, in consideration of the agreements, provisions and covenants contained herein, the parties agree as follows:

Section 1. AMENDMENTS TO THE CREDIT AGREEMENT

A. The defined term “Gross Asset Value” is amended to insert the following as clause (viii):

“(viii) 100% of the book value (determined in accordance with GAAP) of the Permitted Junior Loans and Permitted Mortgage Certificates.”

B. The defined term “Joint Lead Arrangers” is deleted and replaced with:

““Joint Lead Arrangers” mean Merrill Lynch, Pierce, Fenner & Smith Incorporated (as successor by merger to Banc of America Securities LLC) and KeyBanc Capital Markets, in their capacities as joint lead arrangers and joint book managers.”

C. The defined term “Non-Core Assets” is deleted and replaced with:

““Non-Core Assets” means: (i) unimproved land (other than Development Assets) of the Borrowing Group and Notes Receivable of the Borrowing Group valued at their net book value, (ii) Permitted Junior Loans, and (iii) Permitted Mortgage Certificates.”

D. The following defined terms shall be inserted in Section 1.01 in the correct alphabetical location:

“Eleventh Amendment” means the Eleventh Amendment to this Agreement, dated as of May 20, 2011, among the Borrowers, the L/C Issuer, the Administrative Agent and the Lenders party thereto.”

“Eleventh Amendment Effective Date” means the date all of the conditions to effectiveness set forth in Section 2 of the Eleventh Amendment are satisfied.

“Permitted Junior Loans” means Investments by any Person in the Borrowing Group in Indebtedness consisting of junior mortgage loans and/or mezzanine loans secured by equity interests, initially owed by Subsidiaries of the Borrowing Group; provided that the owner of any such Investments must be a Borrower or Guarantor.

“Permitted Mortgage Certificates” means Investments by any Person in the Borrowing Group in one or more tranches or series of collateralized mortgage backed securities or certificates initially owed by any Person with respect to Indebtedness of one or more Subsidiaries of the Borrowing Group; provided that the owner of any such Investments must be a Borrower or Guarantor.

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Section 2. CONDITIONS TO EFFECTIVENESS

This Amendment shall become effective (as of the “Eleventh Amendment Effective Date”) at such time that all of the following conditions are satisfied:

2.1 The Administrative Agent shall have received counterparts of this Amendment, duly executed and delivered on behalf of each of (i) the Borrowers, (ii) the Administrative Agent, (iii) the L/C Issuer, and (iv) the Required Lenders (or the Required Lenders shall have consented to the execution of the Amendment by providing their counterpart signatures hereto or their consent hereto to the Administrative Agent);

2.2 Guarantors and the Borrowers and Subsidiaries of the Borrowers party to the Pledge Agreements as “Pledgors” (the “Pledgors”) shall have executed this Amendment with respect to Section 5 and such other documents reasonably required by Administrative Agent; and

2.3 Borrowers and the Pledgors shall have delivered such other assurances, certificates, documents or consents as the Administrative Agent, the L/C Issuer, the Swing Line Lender or the Required Lenders reasonably may require.

Section 3. BORROWERS’ REPRESENTATIONS AND WARRANTIES

In order to induce the L/C Issuer and the Required Lenders to consent to this Amendment and to amend the Credit Agreement in the manner provided herein, Borrowers represent and warrant to Administrative Agent and to the L/C Issuer and each Required Lender that the following statements are true, correct and complete:

3.1 Corporate Power and Authority. Borrowers have all requisite power and authority to enter into this Amendment and any other agreements, guaranties or other operative documents to be delivered pursuant to this Amendment, to carry out the transactions contemplated by, and perform their obligations under, the Amended Agreement. Each of the Borrowers, Pledgors and Guarantors is in good standing in the respective states of their organization on the Eleventh Amendment Effective Date;

3.2 Authorization of Agreements. The execution and delivery of this Amendment and the performance of the Amended Agreement have been duly authorized by all necessary action on the part of Borrowers and the other parties delivering any of such documents, as the case may be;

3.3 No Default. After giving effect to this Amendment, no Default or Event of Default exists under the Amended Agreement as of the Eleventh Amendment Effective Date. Further, after giving effect to this Amendment, no Default or Event of Default would result under the Amended Agreement from the consummation of this Amendment;

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3.4 No Conflict. The execution, delivery and performance by Borrowers, Pledgors and Guarantors of this Amendment and the performance of the Amended Agreement by Borrowers, does not and will not (i) violate any provision of any applicable material law or any governmental rule or regulation applicable to Borrowers, Pledgors, Guarantors or any of their Subsidiaries except as could not reasonably be expected to have a Material Adverse Effect, the Organization Documents of Borrowers, Pledgors, Guarantors or any of their Subsidiaries or any order, judgment or decree of any court or other Governmental Authority binding on Borrowers, Pledgors, Guarantors or any of their Subsidiaries except as could not reasonably be expected to have a Material Adverse Effect, (ii) conflict with, result in a breach of or constitute (with due notice or lapse of time or both) a default under any Contractual Obligation of Borrowers, Pledgors, Guarantors or any of their Subsidiaries except as could not reasonably be expected to have a Material Adverse Effect, (iii) result in or require the creation or imposition of any Lien upon any of the properties or assets of Borrowers, Pledgors, Guarantors or any of their Subsidiaries not otherwise permitted by the Amended Agreement except as could not reasonably be expected to have a Material Adverse Effect, or (iv) require any approval of members or stockholders or any approval or consent of any Person under any Contractual Obligation of Borrowers, Pledgors, Guarantors or any of their Subsidiaries, except for such approvals or consents which have been or will be obtained on or before the Eleventh Amendment Effective Date or except for such approvals or consents which, if not obtained, are not reasonably expected to result in a Material Adverse Effect;

3.5 Governmental Consents. The execution and delivery by Borrowers, Guarantors and Pledgors of this Amendment and the performance by Borrowers, Guarantors and Pledgors under the Amended Agreement does not and will not require any registration with, consent or approval of, or notice to, or other action to, with or by, any federal, state or other governmental authority or regulatory body, except for filings or recordings in respect of the Liens created pursuant to the Loan Documents and except as may be required, in connection with the disposition of any Collateral, by laws generally affecting the offering and sale of securities;

3.6 Binding Obligation. The Amended Agreement has been duly executed and delivered by Borrowers and is enforceable against Borrowers, in accordance with its terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability; and

3.7 Incorporation of Representations and Warranties From Amended Agreement. After giving effect to this Amendment, the representations and warranties contained in Article V of the Amended Agreement are and will be true, correct and complete in all material respects on and as of the Eleventh Amendment Effective Date to the same extent as though made on and as of such date, except representations and warranties solely to the extent such representations and warranties specifically relate to an earlier date, in which case they were true, correct and complete in all material respects on and as of such earlier date.

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Section 4. MISCELLANEOUS

4.1 Reference to and Effect on the Amended Agreement and the Other Loan Documents.

A. On and after the Eleventh Amendment Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Amended Agreement.

B. Except as specifically amended by this Amendment, the Amended Agreement and the other Loan Documents shall remain in full force and effect and are hereby ratified and confirmed.

C. The execution, delivery and performance of this Amendment shall not, except as expressly provided herein, constitute a waiver of any provision of, or operate as a waiver of any right, power or remedy of Administrative Agent or any Lender under, the Amended Agreement or any of the other Loan Documents.

4.2 Fees and Expenses. Borrowers acknowledge that all reasonable costs, fees and expenses incurred by Administrative Agent and its counsel with respect to this Amendment and the documents and transactions contemplated hereby shall be for the account of Borrowers. The Borrowers hereby agree to pay the reasonable fees, cost and expenses of Administrative Agent’s counsel in connection with this Amendment concurrently with or promptly but in no event later than 30 days after submission of an invoice with respect to such reasonable fees, costs and expenses.

4.3 Headings. Section and subsection headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose or be given any substantive effect.

4.4 Counterparts; Effectiveness. This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument; signature pages may be detached from multiple separate counterparts and attached to a single counterpart so that all signature pages are physically attached to the same document. This Amendment shall become effective upon the execution of a counterpart hereof by each Borrower and Administrative Agent, and receipt by Borrowers and Administrative Agent of written, facsimile, electronic image scan (e.g., “PDF” or “tif”) transmission or telephonic notification of such execution and authorization of delivery thereof.

4.5 Entire Agreement. This Amendment embodies the entire agreement and understanding among the parties with respect to this amendment to the Amended Agreement, and supersedes all prior agreements and understandings, oral or written, relating thereto.

4.6 Governing Law. This Amendment shall be governed by, and construed in accordance with, the law of the State of California.

Section 5. ACKNOWLEDGEMENT AND CONSENT

5.1 Guarantors are party to that certain Continuing Guaranty (as amended from time to time), dated as of November 2, 2004, pursuant to which Guarantors have guarantied the Obligations. Pledgors are party to that certain Security Agreement (Securities) made by Borrowers (as amended from time to time) and Security Agreement (Securities) made by certain other Pledgors (as amended from time to time), dated as of November 2, 2004, pursuant to which Pledgors have pledged the Collateral as security for the Indebtedness (as defined in the applicable Pledge Agreement).

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5.2 Each Guarantor and each Pledgor hereby acknowledges that it has reviewed the terms and provisions of the Amended Agreement and this Amendment and consents to the amendment of the Credit Agreement effected pursuant to this Amendment. Each Guarantor hereby confirms that each Guaranty to which it is a party or otherwise bound, and each Pledgor hereby confirms that the Pledge Agreement to which it is a party or otherwise bound, will continue to guaranty or secure, as the case may be, to the fullest extent possible the payment and performance of all of the “Guaranteed Obligations” (as defined in the applicable Guaranty) or the “Indebtedness” (as defined in the applicable Pledge Agreement), as the case may be, including without limitation the payment and performance of all such “Guaranteed Obligations” or “Indebtedness”, as the case may be, with respect to the Obligations of Borrowers now or hereafter existing under or in respect of the Amended Agreement and the Notes defined therein.

5.3 Each Guarantor acknowledges and agrees that any Guaranty to which it is a party or otherwise bound, and each Pledgor acknowledges and agrees that the Pledge Agreement to which it is a party or otherwise bound, shall continue in full force and effect and that all of its obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or effectiveness of this Amendment. Each Guarantor and each Pledgor represents and warrants that all representations and warranties contained in the Guaranty and/or the Pledge Agreement, as the case may be, to which it is a party or otherwise bound are true, correct and complete in all material respects on and as of the Eleventh Amendment Effective Date to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case they were true, correct and complete in all material respects on and as of such earlier date.

5.4 Each Guarantor and each Pledgor (other than the Borrowers) acknowledges and agrees that (i) notwithstanding the conditions to effectiveness set forth in this Amendment, such Guarantor or such Pledgor, as the case may be, is not required by the terms of the Credit Agreement or any other Loan Document to consent to the amendments to the Credit Agreement effected pursuant to this Amendment and (ii) nothing in the Amended Agreement, this Amendment or any other Loan Document shall be deemed to require the consent of such Guarantor or such Pledgor to any future amendments to the Amended Agreement.

[Signatures on Following Pages]

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the day and year first written above.

BORROWERS:	APARTMENT INVESTMENT AND MANAGEMENT COMPANY, a Maryland corporation
	By:	/s/ Patti K. Fielding
		Patti K. Fielding
		Executive Vice President and Treasurer
	AIMCO PROPERTIES, L.P.,
	a Delaware limited partnership
	By:	AIMCO-GP, INC.,
		a Delaware corporation
	Its:	General Partner
		By:	/s/ Patti K. Fielding
			Patti K. Fielding
			Executive Vice President and Treasurer
	AIMCO/BETHESDA HOLDINGS, INC., a Delaware corporation
	By:	/s/ Patti K. Fielding
		Patti K. Fielding
		Executive Vice President and Treasurer

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

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PLEDGORS (for purposes of Section 5 only):

APARTMENT INVESTMENT AND MANAGEMENT COMPANY, a Maryland corporation, as Pledgor
By:	/s/ Patti K. Fielding
	Patti K. Fielding
	Executive Vice President and Treasurer
AIMCO PROPERTIES, L.P., a Delaware limited partnership, as Pledgor
By:	AIMCO-GP, INC.,
	a Delaware corporation
Its:	General Partner
	By:	/s/ Patti K. Fielding Patti K. Fielding Executive Vice President and Treasurer
AIMCO/BETHESDA HOLDINGS, INC., a Delaware corporation, as Pledgor
By:	/s/ Patti K. Fielding
	Patti K. Fielding
	Executive Vice President and Treasurer

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

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AIMCO/IPT, INC., a Delaware corporation, NHP A&R SERVICES, INC., a Virginia corporation NHP REAL ESTATE CORPORATION, a Delaware corporation AIMCO HOLDINGS QRS, INC., a Delaware corporation NHPMN-GP, INC., a Delaware corporation LAC PROPERTIES QRS II INC., a Delaware corporation
By:	/s/ Patti K. Fielding
	Patti K. Fielding
	Executive Vice President and Treasurer

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

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AIMCO LP LA, LP,
a Delaware limited partnership

By:	AIMCO LA QRS, Inc.,
	a Delaware corporation
Its:	General Partner
	By:	/s/ Patti K. Fielding
		Patti K. Fielding
		Executive Vice President and Treasurer
GP-OP PROPERTY MANAGEMENT, LLC, a Delaware limited liability company
By:	AIMCO Properties, L.P.,
	a Delaware limited partnership,
	Its: Member
	By:	AIMCO-GP, Inc.,
		a Delaware corporation,
	Its:	General Partner
		By:	/s/ Patti K. Fielding Patti K. Fielding Executive Vice President and Treasurer

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

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AIMCO GP LA, L.P., a Delaware limited partnership
By:	AIMCO-GP, INC.,
	a Delaware corporation,
Its:	General Partner
	By:	/s/ Patti K. Fielding
		Patti K. Fielding
		Executive Vice President and Treasurer
LAC PROPERTIES OPERATING PARTNERSHIP, L.P., a Delaware limited partnership
By:	AIMCO GP LA, L.P.,
	a Delaware limited partnership,
Its:	General Partner
	By:	AIMCO-GP, INC.,
		a Delaware corporation,
	Its:	General Partner
		By:	/s/ Patti K. Fielding Patti K. Fielding Executive Vice President and Treasurer
AIC REIT PROPERTIES LLC,
a Delaware limited liability company
By:	AIMCO Properties, L.P.,
	a Delaware limited partnership,
Its:	Managing Member
	By:	AIMCO-GP, INC.,
		a Delaware corporation,
	Its:	General Partner
		By:	/s/ Patti K. Fielding Patti K. Fielding Executive Vice President and Treasurer

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

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AMBASSADOR APARTMENTS, L.P.
a Delaware limited partnership
By:	AIMCO QRS GP, LLC,
	a Delaware limited liability company
Its:	General Partner
	By:	AIMCO Properties, L.P.,
		a Delaware limited partnership,
	Its:	Member
		By:	AIMCO-GP, Inc.,
			a Delaware corporation,
		Its:	General Partner
			By:	/s/ Patti K. Fielding Patti K. Fielding
				Executive Vice President and Treasurer
AIMCO HOLDINGS, L.P.
a Delaware limited partnership
By:	AIMCO Holdings QRS, Inc.,
	a Delaware corporation,
Its:	General Partner
	By:	/s/ Patti K. Fielding
		Patti K. Fielding
		Executive Vice President and Treasurer
AMBASSADOR FLORIDA PARTNERS LIMITED PARTNERSHIP,
a Delaware limited partnership
By:	Ambassador Florida Partners, Inc.,
	a Delaware corporation,
Its:	General Partner
	By:	/s/ Patti K. Fielding
		Patti K. Fielding
		Executive Vice President and Treasurer

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

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LAC PROPERTIES SUB LLC, a Delaware limited liability company
By:	LAC Properties Operating Partnership, L.P.,
	a Delaware limited partnership,
Its:	Managing Member
	By:	AIMCO GP LA, L.P.,
		a Delaware limited partnership,
	Its:	General Partner
		By:	AIMCO-GP, Inc.,
			a Delaware corporation,
		Its:	General Partner
			By:	/s/ Patti K. Fielding Patti K. Fielding
				Executive Vice President and Treasurer
LAC PROPERTIES GP I LLC a Delaware limited liability company
By:	LAC Properties Operating Partnership, L.P.,
	a Delaware limited partnership,
Its:	Managing Member
	By:	AIMCO GP LA, L.P.,
		a Delaware limited partnership,
	Its:	General Partner
		By:	AIMCO-GP, Inc.,
			a Delaware corporation,
		Its:	General Partner
			By:	/s/ Patti K. Fielding Patti K. Fielding
				Executive Vice President and Treasurer

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

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GUARANTORS (for purposes of Section 5 only):

AIMCO EQUITY SERVICES, INC., a Virginia corporation AIMCO HOLDINGS QRS, INC., a Delaware corporation AIMCO-LP TRUST a Delaware trust AIMCO PROPERTIES FINANCE CORP., a Delaware corporation AMBASSADOR I, INC., a Delaware corporation ANGELES REALTY CORPORATION II, a California corporation CONCAP EQUITIES, INC., a Delaware corporation NHP A&R SERVICES, INC., a Virginia corporation NHPMN STATE MANAGEMENT, INC., a Delaware corporation AIMCO-GP, INC., a Delaware corporation NHPMN-GP, INC., a Delaware corporation
By:	/s/ Patti K. Fielding
	Patti K. Fielding
	Executive Vice President and Treasurer

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

S-8

AIMCO IPLP, L.P., a Delaware limited partnership
By:	AIMCO/IPT, Inc.,
	a Delaware corporation
Its:	General Partner
	By:	/s/ Patti K. Fielding
		Patti K. Fielding
		Executive Vice President and Treasurer
AIMCO HOLDINGS, L.P., a Delaware limited partnership
By:	AIMCO Holdings QRS, Inc.,
	a Delaware corporation,
Its:	General Partner
	By:	/s/ Patti K. Fielding
		Patti K. Fielding
		Executive Vice President and Treasurer
AMBASSADOR CRM FLORIDA PARTNERS LIMITED PARTNERSHIP, a Delaware limited partnership
By:	Ambassador Florida Partners Limited Partnership,
	a Delaware limited partnership
Its:	General Partner
	By:	Ambassador Florida Partners, Inc.,
		a Delaware corporation
	Its:	General Partner
		By:	/s/ Patti K. Fielding Patti K. Fielding
			Executive Vice President and Treasurer

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

S-9

AMBASSADOR APARTMENTS, L.P. a Delaware limited partnership
By:	AIMCO QRS GP, LLC,
	a Delaware limited liability company,
Its:	General Partner
	By:	AIMCO Properties, L.P.,
		a Delaware limited partnership,
	Its:	Member
		By:	AIMCO-GP, Inc.,
			a Delaware corporation,
		Its:	General Partner
		By:	/s/ Patti K. Fielding Patti K. Fielding
			Executive Vice President and Treasurer
LAC PROPERTIES OPERATING PARTNERSHIP, L.P., a Delaware limited partnership
By:	AIMCO GP LA, L.P.,
	a Delaware limited partnership
Its:	General Partner
	By:	AIMCO-GP, Inc.,
		a Delaware corporation
	Its:	General Partner
		By:	/s/ Patti K. Fielding Patti K. Fielding
			Executive Vice President and Treasurer

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

S-10

GP-OP PROPERTY MANAGEMENT, LLC a Delaware limited liability company
By:	AIMCO Properties, L.P.,
	a Delaware limited partnership,
Its:	Member
	By:	AIMCO-GP, Inc.,
		a Delaware corporation,
	Its:	General Partner
		By:	/s/ Patti K. Fielding Patti K. Fielding
			Executive Vice President and Treasurer
NHPMN MANAGEMENT, L.P., a Delaware limited partnership
By:	NHPMN-GP, Inc.
	a Delaware corporation,
Its:	General Partner
	By:	/s/ Patti K. Fielding
		Patti K. Fielding
		Executive Vice President and Treasurer
NHPMN MANAGEMENT, LLC, a Delaware limited liability company
By:	AIMCO/Bethesda Holdings, Inc.,
	a Delaware corporation,
Its:	Member
	By:	/s/ Patti K. Fielding
		Patti K. Fielding
		Executive Vice President and Treasurer

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

S-11

OP PROPERTY MANAGEMENT, L.P., a Delaware limited partnership
By:	NHPMN-GP, Inc.,
	a Delaware corporation
Its:	Managing General Partner
	By:	/s/ Patti K. Fielding
		Patti K. Fielding
		Executive Vice President and Treasurer
OP PROPERTY MANAGEMENT, LLC, a Delaware limited liability company
By:	AIMCO Properties, L.P.,
	a Delaware limited partnership
Its:	Member
	By:	AIMCO-GP, Inc.,
		a Delaware corporation
	Its:	General Partner
		By:	/s/ Patti K. Fielding Patti K. Fielding
			Executive Vice President and Treasurer

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

S-12

LAC PROPERTIES GP I LIMITED PARTNERSHIP, a Delaware limited partnership
By:	LAC Properties GP I LLC,
	a Delaware limited liability company
Its:	General Partner
	By:	LAC Properties Operating Partnership, L.P.,
		a Delaware limited partnership
	Its:	Managing Member
		By:	AIMCO GP LA, L.P.,
			a Delaware limited partnership
		Its:	General Partner
			By:	AIMCO-GP, Inc.,
				a Delaware corporation
			Its:	General Partner
				By:	/s/ Patti K. Fielding Patti K. Fielding
					Executive Vice President and Treasurer
LAC PROPERTIES GP II LIMITED PARTNERSHIP, a Delaware limited partnership
By:	LAC Properties QRS II Inc.,
	a Delaware corporation,
Its:	General Partner
	By:	/s/ Patti K. Fielding
		Patti K. Fielding
		Executive Vice President and Treasurer

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

S-13

AIMCO SELECT PROPERTIES, L.P., a Delaware limited partnership
By:	AIMCO/Bethesda Holdings, Inc.,
	a Delaware corporation,
Its:	General Partner
	By:	/s/ Patti K. Fielding
		Patti K. Fielding
		Executive Vice President and Treasurer

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

S-14

BANK OF AMERICA:	BANK OF AMERICA, N.A., as Administrative Agent
	By:	/s/ Kathleen M. Carry
		Kathleen M. Carry
		Vice President

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

S-15

L/C ISSUER:	BANK OF AMERICA, N.A., as L/C Issuer
	By:	/s/ James P. Johnson
		James P. Johnson
		Senior Vice President

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

S-16

BANK OF AMERICA, N.A., as Lender
By:	/s/ James P. Johnson
	James P. Johnson
	Senior Vice President

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

S-17

KEYBANK NATIONAL ASSOCIATION, as Syndication Agent And Lender
By:	Christopher T. Neil
	Christopher T. Neil
	Senior Relationship Manager

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

S-18

WELLS FARGO BANK, N.A., Successor-by-merger to Wachovia Bank, N.A., as a Lender
By:	/s/ J. Derek Evans
	Name:	J. Derek Evans
	Title:	Senior Vice President

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

S-19

MORGAN STANLEY BANK, N.A., as a Lender
By:	/s/ Nick Zangari
	Name:	Nick Zangari
	Title:	Authorized Signatory

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

S-20

MANUFACTURERS AND TRADERS TRUST COMPANY, a New York Banking Company, as a Lender
By:	/s/ John Mangan
	Name:	John Mangan
	Title:	Vice President

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

S-21

CITIBANK, N.A., as a Lender
By:
	Name:
	Title:

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

S-22

PNC BANK, NATIONAL ASSOCIATION, as a Lender
By:	/s/ James A. Harmann
	Name:	James A. Harmann
	Title:	Senior Vice President

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

S-23

HSBC BANK USA NATIONAL ASSOCIATION, as a Lender
By:	/s/ Timothy J. Mertens
	Name:	Timothy J. Mertens
	Title:	Vice President

(Eleventh Amendment to Amended and Restated Senior Secured Credit Agreement)

S-24

EX-31.1

Exhibit 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION

I, Terry Considine, certify that:

1.  I have reviewed this quarterly report on Form 10-Q of Apartment Investment and Management Company;

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: July 29, 2011

/s/ Terry Considine  
Terry Considine 
Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

CHIEF FINANCIAL OFFICER CERTIFICATION

I, Ernest M. Freedman, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Apartment Investment and Management Company;

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: July 29, 2011

/s/ Ernest M. Freedman 
Ernest M. Freedman 
Executive Vice President and Chief Financial Officer 

EX-32.1

Exhibit 32.1

Certification of CEO 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 Quarterly Report of Apartment Investment and Management Company (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Terry Considine, as Chief Executive Officer of the Company hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:

(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 Company.

/s/ Terry Considine
Terry Considine
Chairman and Chief Executive Officer
July 29, 2011

EX-32.2

Exhibit 32.2

Certification of 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 Quarterly Report of Apartment Investment and Management Company (the “Company”) on Form 10-Q for the quarterly period ended June 30, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ernest M. Freedman, as Chief Financial Officer of the Company hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, that:

(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 Company.

/s/ Ernest M. Freedman
Ernest M. Freedman
Executive Vice President and Chief Financial Officer
July 29, 2011

EX-99.1

Exhibit 99.1

Agreement Regarding Disclosure of Long-Term Debt Instruments

In reliance upon Item 601(b)(4)(iii)(A) of Regulation S-K, Apartment Investment and Management Company, a Maryland corporation (the “Company”), has not filed as an exhibit to its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2011, any instrument with respect to long-term debt not being registered where the total amount of securities authorized thereunder does not exceed ten percent of the total assets of the Company and its subsidiaries on a consolidated basis. Pursuant to Item 601(b) (4) (iii) (A) of Regulation S-K, the Company hereby agrees to furnish a copy of any such agreement to the Securities and Exchange Commission upon request.

APARTMENT INVESTMENT AND
MANAGEMENT COMPANY

By: /s/ Ernest M. Freedman
Ernest M. Freedman
Executive Vice President and Chief
Financial Officer
July 29, 2011

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Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) In Thousands, except Share data	Jun. 30, 2011	Dec. 31, 2010
ASSETS
Net real estate related to VIEs	$ 817,297	$ 846,081
Cash and cash equivalents related to VIEs	35,430	34,808
Restricted cash related to VIEs	50,373	55,076
Accounts receivable, net related to VIEs	10,238	8,393
Investment in unconsolidated real estate partnerships related to VIEs	48,748	54,374
LIABILITIES AND EQUITY
Non-recourse property tax-exempt bond financing related to VIEs	225,837	209,550
Non-recourse property loans payable related to VIEs	417,669	428,417
Other borrowings related to VIEs	13,294	15,486
Accrued liabilities and other related to VIEs	$ 66,162	$ 79,170
Equity:
Class A Common Stock, par value	$ 0.01	$ 0.01
Class A Common Stock, shares authorized	485,687,260	422,157,736
Class A Common Stock, shares issued	120,477,521	117,642,872
Class A Common Stock, shares outstanding	120,477,521	117,642,872

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Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
REVENUES:
Rental and other property revenues	$ 273,384	$ 266,728	$ 545,176	$ 533,332
Asset management and tax credit revenues	7,651	9,796	16,887	14,497
Total revenues	281,035	276,524	562,063	547,829
OPERATING EXPENSES:
Property operating expenses	117,379	123,126	240,908	250,266
Investment management expenses	2,187	5,141	5,219	8,370
Depreciation and amortization	94,084	102,809	193,117	206,092
General and administrative expenses	12,372	15,184	23,498	26,919
Other expenses (income), net	5,222	(4,485)	9,156	(2,148)
Total operating expenses	231,244	241,775	471,898	489,499
Operating income	49,791	34,749	90,165	58,330
Interest income	2,254	1,909	4,502	5,080
(Provision for) recovery of losses on notes receivable, net	(36)	148	(53)	(278)
Interest expense	(96,716)	(76,203)	(171,805)	(152,579)
Equity in (losses) earnings of unconsolidated real estate partnerships	(1,798)	(5,295)	(3,446)	3,853
Gain on dispositions of unconsolidated real estate and other	808	3,041	2,021	4,485
Loss before income taxes and discontinued operations	(45,697)	(41,651)	(78,616)	(81,109)
Income tax benefit	2,257	3,385	4,765	7,151
Loss from continuing operations	(43,440)	(38,266)	(73,851)	(73,958)
Income from discontinued operations, net	16,469	28,096	19,603	47,028
Net loss	(26,971)	(10,170)	(54,248)	(26,930)
Noncontrolling interests:
Net loss (income) attributable to noncontrolling interests in consolidated real estate partnerships	2,771	2,716	10,076	(9,418)
Net income attributable to preferred noncontrolling interests in Aimco Operating Partnership	(1,671)	(1,683)	(3,342)	(3,376)
Net loss attributable to common noncontrolling interests in Aimco Operating Partnership	2,420	1,312	4,803	4,381
Total noncontrolling interests	3,520	2,345	11,537	(8,413)
Net loss attributable to Aimco	(23,451)	(7,825)	(42,711)	(35,343)
Net income attributable to Aimco preferred stockholders	(9,672)	(10,128)	(22,128)	(23,050)
Net income attributable to participating securities	(54)	(42)	(111)
Net loss attributable to Aimco common stockholders	$ (33,177)	$ (17,995)	$ (64,950)	$ (58,393)
Earnings (loss) attributable to Aimco per common share - basic and diluted (Note 6):
Loss from continuing operations attributable to Aimco common stockholders	$ (0.35)	$ (0.33)	$ (0.66)	$ (0.75)
Income from discontinued operations attributable to Aimco common stockholders	$ 0.07	$ 0.18	$ 0.11	$ 0.25
Net loss attributable to Aimco common stockholders	$ (0.28)	$ (0.15)	$ (0.55)	$ (0.50)
Weighted average common shares outstanding, basic and diluted	119,156	116,323	118,238	116,179
Dividends declared per common share	$ 0.12	$ 0.10	$ 0.24	$ 0.10

XML



Basis of Presentation and Summary of Significant Accounting Policies (Details 3) (USD $) In Thousands	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Fair value of assets and liabilities measured on a recurring basis
Fair Value, Beginning Balance	$ (2,746)	$ (1,596)
Purchases	51,534
Investment accretion (see Note 4)	269
Unrealized gains (losses) included in earnings	(24)	(23)
Realized gains (losses) included in earnings	0	0
Unrealized gains (losses) included in equity	746	(2,006)
Fair Value, Ending Balance	49,779	(3,625)
Available-for-sale Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Fair value of assets and liabilities measured on a recurring basis
Purchases	51,534
Investment accretion (see Note 4)	269
Realized gains (losses) included in earnings	0	0
Unrealized gains (losses) included in equity	1,573
Fair Value, Ending Balance	53,376
Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member]
Fair value of assets and liabilities measured on a recurring basis
Fair Value, Beginning Balance	(2,746)	(1,596)
Unrealized gains (losses) included in earnings	(24)	(23)
Realized gains (losses) included in earnings	0	0
Unrealized gains (losses) included in equity	(827)	(2,006)
Fair Value, Ending Balance	(3,597)	(3,625)
Total rate of return swaps [Member] | Fair Value, Inputs, Level 3 [Member]
Fair value of assets and liabilities measured on a recurring basis
Fair Value, Beginning Balance	(19,542)	(24,307)
Unrealized gains (losses) included in earnings	8,547	907
Realized gains (losses) included in earnings	0	0
Fair Value, Ending Balance	(10,995)	(23,400)
Total rate of return debt [Member] | Fair Value, Inputs, Level 3 [Member]
Fair value of assets and liabilities measured on a recurring basis
Fair Value, Beginning Balance	19,452	24,307
Unrealized gains (losses) included in earnings	8,547	(907)
Realized gains (losses) included in earnings	0	0
Fair Value, Ending Balance	$ 10,995	$ 23,400

XML



Document and Entity Information (USD $) In Billions, except Share data	6 Months Ended
	Jun. 30, 2011	Jul. 27, 2011	Jun. 30, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	APARTMENT INVESTMENT & MANAGEMENT CO
Entity Central Index Key	0000922864
Document Type	10-Q
Document Period End Date	Jun. 30, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 2.2
Entity Common Stock, Shares Outstanding		120,802,584

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Real Estate Dispositions (Details) (USD $) In Thousands	Jun. 30, 2011	Dec. 31, 2010
Amounts classified as held for sale in consolidated balance sheets
Real estate, net	$ 23,137	$ 146,805
Other assets	576	2,071
Assets held for sale	23,713	148,876
Property debt	23,951	112,034
Other liabilities	226	1,255
Liabilities related to assets held for sale	$ 24,177	$ 113,289

XML



Business Segments

6 Months Ended

Jun. 30, 2011

Business Segments [Abstract]

Business Segments

NOTE 7 — Business Segments

We have two reportable segments: conventional real estate operations and affordable real estate operations. Our conventional real estate operations consist of market-rate apartments with rents paid by the resident and included 215 properties with 67,049 units at June 30, 2011. Our affordable real estate operations consisted of 205 properties with 24,406 units at June 30, 2011, with rents that are generally paid, in whole or part, by a government agency.

Our chief executive officer, who is our chief operating decision maker, uses various generally accepted industry financial measures to assess the performance and financial condition of the business, including: Net Asset Value, which is the estimated fair value of our assets, net of liabilities and preferred equity; Pro forma Funds From Operations, which is Funds From Operations excluding operating real estate impairment losses and preferred equity redemption related amounts; Adjusted Funds From Operations, which is Pro forma Funds From Operations less spending for Capital Replacements; property net operating income, which is rental and other property revenues less direct property operating expenses, including real estate taxes; proportionate property net operating income, which reflects our share of property net operating income of our consolidated and unconsolidated properties; same store property operating results; Free Cash Flow, which is net operating income less spending for Capital Replacements; Free Cash Flow internal rate of return; financial coverage ratios; and leverage as shown on our balance sheet. Our chief operating decision maker emphasizes proportionate property net operating income as a key measurement of segment profit or loss.

The following tables present the revenues, net operating income (loss) and income (loss) from continuing operations of our conventional and affordable real estate operations segments on a proportionate basis for the three and six months ended June 30, 2011 and 2010 (in thousands):

							Corporate and
	Conventional		Affordable		Proportionate		Amounts Not
	Real Estate		Real Estate		Adjustments		Allocated to
	Operations		Operations		(1)		Segments			Consolidated
Three Months Ended June 30, 2011:
Rental and other property revenues (2)	$	208,253	$	32,826	$	32,029	$	276		$	273,384
Asset management and tax credit revenues		—		—		—		7,651			7,651
Total revenues		208,253		32,826		32,029		7,927			281,035
Property operating expenses (2)		77,323		13,599		13,912		12,545			117,379
Investment management expenses		—		—		—		2,187			2,187
Depreciation and amortization (2)		—		—		—		94,084			94,084
General and administrative expenses		—		—		—		12,372			12,372
Other expenses, net		—		—		—		5,222			5,222
Total operating expenses		77,323		13,599		13,912		126,410			231,244
Net operating income (loss)		130,930		19,227		18,117		(118,483	)		49,791
Other items included in continuing operations		—		—		—		(93,231	)		(93,231	)
Income (loss) from continuing operations	$	130,930	$	19,227	$	18,117	$	(211,714	)	$	(43,440	)
Three Months Ended June 30, 2010:
Rental and other property revenues (2)	$	203,251	$	31,661	$	31,159	$	657		$	266,728
Asset management and tax credit revenues		—		—		—		9,796			9,796
Total revenues		203,251		31,661		31,159		10,453			276,524
Property operating expenses (2)		78,396		13,924		13,978		16,828			123,126
Investment management expenses		—		—		—		5,141			5,141
Depreciation and amortization (2)		—		—		—		102,809			102,809
General and administrative expenses		—		—		—		15,184			15,184
Other income, net		—		—		—		(4,485	)		(4,485	)
Total operating expenses		78,396		13,924		13,978		135,477			241,775
Net operating income (loss)		124,855		17,737		17,181		(125,024	)		34,749
Other items included in continuing operations		—		—		—		(73,015	)		(73,015	)
Income (loss) from continuing operations	$	124,855	$	17,737	$	17,181	$	(198,039	)	$	(38,266	)

							Corporate and
	Conventional		Affordable		Proportionate		Amounts Not
	Real Estate		Real Estate		Adjustments		Allocated to
	Operations		Operations		(1)		Segments			Consolidated
Six Months Ended June 30, 2011:
Rental and other property revenues (2)	$	414,800	$	65,704	$	63,816	$	856		$	545,176
Asset management and tax credit revenues		—		—		—		16,887			16,887
Total revenues		414,800		65,704		63,816		17,743			562,063
Property operating expenses (2)		156,752		27,346		28,332		28,478			240,908
Investment management expenses		—		—		—		5,219			5,219
Depreciation and amortization (2)		—		—		—		193,117			193,117
General and administrative expenses		—		—		—		23,498			23,498
Other expenses, net		—		—		—		9,156			9,156
Total operating expenses		156,752		27,346		28,332		259,468			471,898
Net operating income (loss)		258,048		38,358		35,484		(241,725	)		90,165
Other items included in continuing operations		—		—		—		(164,016	)		(164,016	)
Income (loss) from continuing operations	$	258,048	$	38,358	$	35,484	$	(405,741	)	$	(73,851	)
Six Months Ended June 30, 2010:
Rental and other property revenues (2)	$	407,082	$	62,723	$	62,137	$	1,390		$	533,332
Asset management and tax credit revenues		—		—		—		14,497			14,497
Total revenues		407,082		62,723		62,137		15,887			547,829
Property operating expenses (2)		162,300		28,805		29,025		30,136			250,266
Investment management expenses		—		—		—		8,370			8,370
Depreciation and amortization (2)		—		—		—		206,092			206,092
General and administrative expenses		—		—		—		26,919			26,919
Other income, net		—		—		—		(2,148	)		(2,148	)
Total operating expenses		162,300		28,805		29,025		269,369			489,499
Net operating income (loss)		244,782		33,918		33,112		(253,482	)		58,330
Other items included in continuing operations		—		—		—		(132,288	)		(132,288	)
Income (loss) from continuing operations	$	244,782	$	33,918	$	33,112	$	(385,770	)	$	(73,958	)

(1)

Represents adjustments for the noncontrolling interests in consolidated real estate partnerships’ share of the results of our consolidated properties, which are excluded from our measurement of segment performance but included in the related consolidated amounts, and our share of the results of operations of our unconsolidated real estate partnerships, which are included in our measurement of segment performance but excluded from the related consolidated amounts.

(2)

Proportionate property net operating income, our key measurement of segment profit or loss, excludes provision for operating real estate impairment losses, property management revenues (which are included in rental and other property revenues), property management expenses and casualty gains and losses (which are included in property operating expenses) and depreciation and amortization. Accordingly, we do not allocate these amounts to our segments.

For the six months ended June 30, 2011 and 2010, capital additions related to our conventional segment totaled $58.9 million and $64.0 million, respectively, and capital additions related to our affordable segment totaled $8.3 million and $15.9 million, respectively.

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Real Estate Dispositions (Details 1) (USD $) In Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Components of income from discontinued operations including portions attributable to Aimco and noncontrolling interests
Rental and other property revenues	$ 4,019	$ 21,695	$ 11,538	$ 47,639
Property operating expenses	(2,169)	(9,590)	(6,288)	(25,910)
Depreciation and amortization	(1,647)	(6,311)	(4,065)	(12,839)
Provision for operating real estate impairment losses	(2,452)	(895)	(6,307)	(8,121)
Operating (loss) income	(2,249)	4,899	(5,122)	769
Interest income	262	101	314	183
Interest expense	(1,009)	(3,881)	(2,602)	(8,308)
(Loss) income before gain on dispositions of real estate and income tax	(2,996)	1,119	(7,410)	(7,356)
Gain on dispositions of real estate	19,716	26,982	27,434	53,321
Income tax (expense) benefit	(251)	(5)	(421)	1,063
Income from discontinued operations, net	16,469	28,096	19,603	47,028
(Income) loss from discontinued operations attributable to:
Noncontrolling interests in consolidated real estate partnerships	(7,196)	(6,383)	(5,943)	(16,241)
Noncontrolling interests in Aimco Operating Partnership	(653)	(1,455)	(945)	(2,064)
Total noncontrolling interests	(7,849)	(7,838)	(6,888)	(18,305)
Income (loss) from discontinued operations attributable to Aimco	$ 8,620	$ 20,258	$ 12,715	$ 28,723

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Basis of Presentation and Summary of Significant Accounting Policies (Details Textuals) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Dec. 31, 2010
Variable Interest Entity [Line Items]
Number of variable interest entities consolidated	125		125
Number of apartment properties owned by consolidated variable interest entities	84		84
Number of units in apartment properties owned by consolidated variable interest entities	12,982		12,982
Basis of Presentation and Summary of Significant Accounting Policies (Textuals) [Abstract]
General partner or equivalent interest in consolidated tax credit funds that are VIEs and that own an interest in unconsolidated VIEs	1% or less		1% or less
Maximum risk of loss on investments in unconsolidated VIEs through consolidated VIEs in which we hold substantially all the economic interests	$ 5,900,000		$ 5,900,000
Risk of loss related to carrying amount of receivables due from unconsolidated VIEs	99,800,000		99,800,000
Risk of loss related to contractual obligation to advance funds to unconsolidated VIEs	3,400,000		3,400,000
Notional amount of interest rate swaps	52,300,000		52,300,000		52,300,000
Interest rate swaps fair value	3,600,000		3,600,000		2,700,000
Weighted average term of interest rate swaps, in years	9.6		9.6
Consolidated Comprehensive loss	26,300,000	12,000,000	53,500,000	28,900,000
Estimated unrealized losses on interest rate swaps that will be reclassified into earnings during the next twelve months	1,600,000		1,600,000
Weighted average fixed rate related to the interest rate swaps	3.43%		3.43%
Borrowings subject to total rate of return swaps	164,300,000		164,300,000		276,900,000
Weighted average fixed receive rate under total rate of return swaps	6.40%		6.40%
Weighted average variable pay rate under total rate of return swaps	1.60%		1.60%
Carrying amount of real estate (held for use or held for sale) prior to recognition of impairment losses	56,500,000	35,900,000	56,500,000	35,900,000
Estimated aggregate fair value of notes receivable	114,700,000		114,700,000		116,000,000
Carrying amounts of notes receivable	127,300,000		127,300,000		127,600,000
Estimated aggregate fair value of consolidated debt (including amounts reported in liabilities related to assets held for sale)	5,500,000,000		5,500,000,000		5,600,000,000
Carrying amount of consolidated debt (including amounts reported in liabilities related to assets for sale)	5,400,000,000		5,400,000,000		5,500,000,000
Notional amount of total rate of return swaps	164,600,000		164,600,000
Carrying value of property debt of consolidated VIEs			643,500,000
Portion of par value notes estimated to be collectible	28,500,000		28,500,000
Portion of par value notes outstanding with stated maturity dates	18,900,000		18,900,000
Reduced amount of debt subject to total rate of return swaps			112,000,000
Amortized cost of the investment in securities	51,800,000		51,800,000
Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Number of variable interest entities unconsolidated	244		244
Number of apartment properties owned by unconsolidated variable interest entities	297		297
Number of units in apartment properties owned by unconsolidated variable interest entities	18,606		18,606
Investments in unconsolidated VIEs through consolidated VIEs in which we hold an insignificant economic interest	42,800,000		42,800,000
Variable Interest Entity, Not Primary Beneficiary, Held Through Consolidated Tax Credit Funds in Which Company Holds Substantially All Economic Interests [Member]
Variable Interest Entity [Line Items]
Investments in unconsolidated VIEs held through consolidated tax credit funds that are VIEs and in which we hold substantially all the economic interests			5,900,000
Carrying Value [Member]
Basis Of Presentation [Line Items]
Carrying value of real estate collateralizing debt of consolidated VIEs			817,300,000
Unconsolidated Real Estate Partnerships [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Minimum annual interest rates			4.30%
Maximum annual interest rates			12.00%
Average annual interest rates			9.80%
Non-Affiliates [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Minimum annual interest rates			2.10%
Maximum annual interest rates			8.80%
Average annual interest rates			4.10%
Notes receivable from non-affiliates	$ 99,900,000		$ 99,900,000		$ 103,900,000

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Earnings (Loss) per Share (Tables)

6 Months Ended

Jun. 30, 2011

Earnings (Loss) per Share (Tables) [Abstract]

Calculation of basic and diluted earnings (loss) per share

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Numerator:
Loss from continuing operations	$	(43,440	)	$	(38,266	)	$	(73,851	)	$	(73,958	)
Loss from continuing operations attributable to noncontrolling interests		11,369			10,183			18,425			9,892
Income attributable to preferred stockholders		(9,672	)		(10,128	)		(22,128	)		(23,050	)
Income attributable to participating securities		(54	)		(42	)		(111	)		—
Loss from continuing operations attributable to Aimco common stockholders	$	(41,797	)	$	(38,253	)	$	(77,665	)	$	(87,116	)
Income from discontinued operations	$	16,469		$	28,096		$	19,603		$	47,028
Income from discontinued operations attributable to noncontrolling interests		(7,849	)		(7,838	)		(6,888	)		(18,305	)
Income from discontinued operations attributable to Aimco common stockholders	$	8,620		$	20,258		$	12,715		$	28,723
Net loss	$	(26,971	)	$	(10,170	)	$	(54,248	)	$	(26,930	)
Loss (income) attributable to noncontrolling interests		3,520			2,345			11,537			(8,413	)
Income attributable to preferred stockholders		(9,672	)		(10,128	)		(22,128	)		(23,050	)
Income attributable to participating securities		(54	)		(42	)		(111	)		—
Net loss attributable to Aimco common stockholders	$	(33,177	)	$	(17,995	)	$	(64,950	)	$	(58,393	)
Denominator:
Denominator for basic earnings per share — weighted average number of shares of Common Stock outstanding		119,156			116,323			118,238			116,179
Effect of dilutive securities:
Dilutive potential common shares		—			—			—			—
Denominator for diluted earnings per share		119,156			116,323			118,238			116,179
Earnings (loss) per common share:
Basic and diluted earnings (loss) per common share:
Loss from continuing operations attributable to Aimco common stockholders	$	(0.35	)	$	(0.33	)	$	(0.66	)	$	(0.75	)
Income from discontinued operations attributable to Aimco common stockholders		0.07			0.18			0.11			0.25
Net loss attributable to Aimco common stockholders	$	(0.28	)	$	(0.15	)	$	(0.55	)	$	(0.50	)

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Real Estate Dispositions

6 Months Ended

Jun. 30, 2011

Real Estate Dispositions [Abstract]

Real Estate Dispositions

NOTE 3 — Real Estate Dispositions

Real Estate Dispositions (Discontinued Operations)

We are currently marketing for sale certain real estate properties that are inconsistent with our long-term investment strategy. At the end of each reporting period, we evaluate whether such properties meet the criteria to be classified as held for sale, including whether such properties are expected to be sold within 12 months. Additionally, certain properties that do not meet all of the criteria to be classified as held for sale at the balance sheet date may nevertheless be sold and included in discontinued operations in the subsequent 12 months; thus, the number of properties that may be sold during the subsequent 12 months could exceed the number classified as held for sale. At June 30, 2011 and December 31, 2010, we had two and 29 properties, with an aggregate of 710 and 4,750 units, respectively, classified as held for sale. Amounts classified as held for sale in the accompanying condensed consolidated balance sheets are as follows (in thousands):

	June 30,		December 31,
	2011		2010
Real estate, net	$	23,137	$	146,805
Other assets		576		2,071
Assets held for sale	$	23,713	$	148,876
Property debt	$	23,951	$	112,034
Other liabilities		226		1,255
Liabilities related to assets held for sale	$	24,177	$	113,289

During the six months ended June, 2011 and 2010, we sold or disposed of 27 properties and 23 properties with an aggregate of 4,040 units and 3,547 units, respectively. During the year ended December 31, 2010, we disposed of 51 consolidated properties with an aggregate of 8,189 units. For the three and six months ended June 30, 2011 and 2010, discontinued operations includes the results of operations for the periods prior to the date of disposition for all properties disposed of and for properties classified as held for sale as of June 30, 2011.

The following is a summary of the components of income from discontinued operations and the related amounts of income from discontinued operations attributable to Aimco and to noncontrolling interests for the three and six months ended June 30, 2011 and 2010 (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Rental and other property revenues	$	4,019		$	21,695		$	11,538		$	47,639
Property operating expenses		(2,169	)		(9,590	)		(6,288	)		(25,910	)
Depreciation and amortization		(1,647	)		(6,311	)		(4,065	)		(12,839	)
Provision for operating real estate impairment losses		(2,452	)		(895	)		(6,307	)		(8,121	)
Operating (loss) income		(2,249	)		4,899			(5,122	)		769
Interest income		262			101			314			183
Interest expense		(1,009	)		(3,881	)		(2,602	)		(8,308	)
(Loss) income before gain on dispositions of real estate and income tax		(2,996	)		1,119			(7,410	)		(7,356	)
Gain on dispositions of real estate		19,716			26,982			27,434			53,321
Income tax (expense) benefit		(251	)		(5	)		(421	)		1,063
Income from discontinued operations, net	$	16,469		$	28,096		$	19,603		$	47,028
(Income) loss from discontinued operations attributable to:
Noncontrolling interests in consolidated real estate partnerships	$	(7,196	)	$	(6,383	)	$	(5,943	)	$	(16,241	)
Noncontrolling interests in Aimco Operating Partnership		(653	)		(1,455	)		(945	)		(2,064	)
Total noncontrolling interests		(7,849	)		(7,838	)		(6,888	)		(18,305	)
Income from discontinued operations attributable to Aimco	$	8,620		$	20,258		$	12,715		$	28,723

Gain on dispositions of real estate is reported net of incremental direct costs incurred in connection with the transactions, including any prepayment penalties incurred upon repayment of property loans collateralized by the properties being sold. Such prepayment penalties totaled $4.8 million and $5.0 million for the three and six months ended June 30, 2011, respectively, and $2.6 million and $3.2 million for the three and six months ended June 30, 2010, respectively. We classify interest expense related to property debt within discontinued operations when the related real estate asset is sold or classified as held for sale.

In connection with properties sold or classified as held for sale during the three and six months ended June 30, 2011, we allocated $0.9 million and $1.7 million, respectively, of goodwill related to our conventional and affordable segments to the carrying amounts of the properties sold or classified as held for sale. Of these amounts, $0.7 million and $1.2 million, respectively, were recognized as a reduction of gain on dispositions of real estate and $0.2 million and $0.5 million, respectively, were recognized as an adjustment of impairment losses during the three and six months ended June 30, 2011. In connection with properties sold or classified as held for sale during the three and six months ended June 30, 2010, we allocated $1.5 million and $2.8 million, respectively, of goodwill related to our conventional and affordable segments to the carrying amounts of the properties sold or classified as held for sale. Of these amounts, $1.4 million and $2.6 million, respectively, were treated as a reduction of gain on dispositions of real estate and $0.1 million and $0.2 million, respectively, were treated as an adjustment of impairment losses during the three and six months ended June 30, 2010. The amounts of goodwill allocated to these properties were based on the relative fair values of the properties sold or classified as held for sale and the retained portions of the reporting units to which the goodwill was allocated.

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Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2011

Basis of Presentation (Policies) [Abstract]

Credit quality and the allowance for credit losses

Notes receivable from unconsolidated real estate partnerships and from non-affiliates represent our two portfolio segments (as defined in FASB ASC Topic 310) that we use to evaluate for potential loan loss. Notes receivable from unconsolidated real estate partnerships consist primarily of notes receivable from partnerships in which we are the general partner but do not consolidate the partnership. These loans are typically due on demand, have no stated maturity date and may not require current payments of principal or interest. Notes receivable from non-affiliates have stated maturity dates and may require current payments of principal and interest. Repayment of our notes is subject to a number of variables, including the performance and value of the underlying real estate properties and the claims of unaffiliated mortgage lenders, which are generally senior to our claims. Our notes receivable consist of two classes: loans extended by us that we carry at the face amount plus accrued interest, which we refer to as “par value notes”; and loans extended by predecessors whose positions we generally acquired at a discount, which we refer to as “discounted notes.”

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of Aimco, the Aimco Operating Partnership, and their consolidated entities. We consolidate all variable interest entities for which we are the primary beneficiary. Generally, we consolidate real estate partnerships and other entities that are not variable interest entities when we own, directly or indirectly, a majority voting interest in the entity or are otherwise able to control the entity. All significant intercompany balances and transactions have been eliminated in consolidation.

Variable Interest Entities

We consolidate all variable interest entities for which we are 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.

In determining whether we are the primary beneficiary of a VIE, we consider 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 our investment; the obligation or likelihood for us or other investors to provide financial support; and the similarity with and significance to the business activities of us 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.

Derivative Financial Instruments

We have limited exposure to derivative financial instruments. We are contractually obligated on certain of our variable rate debt to limit our exposure to interest rate fluctuations, and we do so by entering into interest rate swap agreements. We primarily use long-term, fixed-rate and self-amortizing non-recourse debt to avoid, among other things, risk related to fluctuating interest rates. For our variable rate debt, we are sometimes required by our lenders to limit our exposure to interest rate fluctuations by entering into interest rate swap agreements, which moderate our exposure to interest rate risk by effectively converting the interest on variable rate debt to a fixed rate. The fair values of the interest rate swaps are reflected as assets or liabilities in the balance sheet, and periodic changes in fair value are included in interest expense or equity, as appropriate.

Fair value Measurements

We measure certain assets and liabilities in our consolidated financial statements at fair value, both on a recurring and nonrecurring basis. Certain of these fair value measurements are based on significant unobservable inputs classified within Level 3 of the valuation hierarchy defined in FASB ASC Topic 820. When a determination is made to classify a fair value measurement within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, Level 3 fair value measurements typically also include observable components that can be validated to observable external sources; accordingly, the changes in fair value in the table below are due in part to observable factors that are part of the valuation methodology.

Income Taxes

In March 2008, we were notified by the Internal Revenue Service, or the IRS, that it intended to examine the 2006 Federal tax return for the Aimco Operating Partnership. During June 2008, the IRS issued AIMCO-GP, Inc., the general partner and tax matters partner of the Aimco Operating Partnership, a summary report including the IRS’s proposed adjustments to the Aimco Operating Partnership’s 2006 Federal tax return. In addition, in May 2009, we were notified by the IRS that it intended to examine the 2007 Federal tax return for the Aimco Operating Partnership. During November 2009, the IRS issued AIMCO-GP, Inc. a summary report including the IRS’s proposed adjustments to the Aimco Operating Partnership’s 2007 Federal tax return. The matter is currently pending administratively before IRS Appeals and the IRS has made no determination. We do not expect the 2006 or 2007 proposed adjustments to have any material effect on our unrecognized tax benefits, financial condition or results of operations.

Use of Estimates

The preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes thereto. Actual results could differ from those estimates.

Earnings (Loss) Per Share

We calculate earnings (loss) per share based on the weighted average number of shares of Common Stock, participating securities, common stock equivalents and dilutive convertible securities outstanding during the period. The following table illustrates the calculation of basic and diluted earnings (loss) per share for the three and six months ended June 30, 2011 and 2010 (in thousands, except per share data):

Real Estate Dispositions (Discontinued Operations)

We are currently marketing for sale certain real estate properties that are inconsistent with our long-term investment strategy. At the end of each reporting period, we evaluate whether such properties meet the criteria to be classified as held for sale, including whether such properties are expected to be sold within 12 months. Additionally, certain properties that do not meet all of the criteria to be classified as held for sale at the balance sheet date may nevertheless be sold and included in discontinued operations in the subsequent 12 months; thus, the number of properties that may be sold during the subsequent 12 months could exceed the number classified as held for sale. At June 30, 2011 and December 31, 2010, we had two and 29 properties, with an aggregate of 710 and 4,750 units, respectively, classified as held for sale. Amounts classified as held for sale in the accompanying condensed consolidated balance sheets are as follows (in thousands):

Notes Receivable

We assess the collectibility of notes receivable on a periodic basis, which assessment consists primarily of an evaluation of cash flow projections of the borrower to determine whether estimated cash flows are sufficient to repay principal and interest in accordance with the contractual terms of the note. We update our cash flow projections of the borrowers annually, and more frequently for certain loans depending on facts and circumstances. We recognize provisions for losses on notes receivable when it is probable that principal and interest will not be received in accordance with the contractual terms of the loan. Factors that affect this assessment include the fair value of the partnership’s real estate, pending transactions to refinance the partnership’s senior obligations or sell the partnership’s real estate, and market conditions (current and forecasted) related to a particular asset. The amount of the provision to be recognized generally is based on the fair value of the partnership’s real estate that represents the primary source of loan repayment. In certain instances where other sources of cash flow are available to repay the loan, the provision is measured by discounting the estimated cash flows at the loan’s original effective interest rate.

Business Segments

Our chief executive officer, who is our chief operating decision maker, uses various generally accepted industry financial measures to assess the performance and financial condition of the business, including: Net Asset Value, which is the estimated fair value of our assets, net of liabilities and preferred equity; Pro forma Funds From Operations, which is Funds From Operations excluding operating real estate impairment losses and preferred equity redemption related amounts; Adjusted Funds From Operations, which is Pro forma Funds From Operations less spending for Capital Replacements; property net operating income, which is rental and other property revenues less direct property operating expenses, including real estate taxes; proportionate property net operating income, which reflects our share of property net operating income of our consolidated and unconsolidated properties; same store property operating results; Free Cash Flow, which is net operating income less spending for Capital Replacements; Free Cash Flow internal rate of return; financial coverage ratios; and leverage as shown on our balance sheet. Our chief operating decision maker emphasizes proportionate property net operating income as a key measurement of segment profit or loss.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2011, are not necessarily indicative of the results that may be expected for the year ending December 31, 2011.

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Organization (Details)	6 Months Ended
	Jun. 30, 2011	Dec. 31, 2010
Organization (Textuals) [Abstract]
Number of largest markets in United States	20
Number of units for which asset or property management services were provided	13,921
Number of properties for which asset or property management services were provided	187
Ownership percentage in AIMCO Properties, L.P.	94.00%
Shares of common stock outstanding	120,477,521	117,642,872
Common OP units and equivalents of the Aimco Operating Partnership	8,346,803
Total shares of common stock and common OP units outstanding	128,824,324
Number of properties from which the company has resigned from providing property management services	100
Number of units from which the company has resigned from providing property management services	11,400
Conventional property asset quality based on average rents of units compared to local market average rents	A-quality assets earning rents greater than 125% of local market average, B-quality assets earning rents 90% to 125% of local market average and C-quality assets earning rents less than 90% of local market average. We classify as B/B+ those assets earning rents ranging from 100% to 125% of local market average
Conventional [Member]
Real Estate Property [Line Items]
Number of owned real estate properties in segments	215
Number of units in owned real estate properties in segments	67,049
Number of consolidated properties	209
Number of units in consolidated real estate properties	65,603
Percentage of proportionate property net operating income generated by segment	87.00%
Affordable [Member]
Real Estate Property [Line Items]
Number of owned real estate properties in segments	205
Number of units in owned real estate properties in segments	24,406
Number of consolidated properties	163
Number of units in consolidated real estate properties	20,235
Percentage of proportionate property net operating income generated by segment	13.00%

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Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2011

Basis of Presentation (Tables) [Abstract]

Notes Receivable

The following table summarizes our notes receivable as of June 30, 2011 and December 31, 2010 (in thousands):

	June 30, 2011								December 31, 2010
	Unconsolidated								Unconsolidated
	Real Estate			Non-					Real Estate			Non-
	Partnerships			Affiliates		Total			Partnerships			Affiliates		Total
Par value notes	$	10,081		$	19,572	$	29,653		$	10,821		$	17,899	$	28,720
Discounted notes		1,011			97,506		98,517			980			98,827		99,807
Allowance for loan losses		(883	)		—		(883	)		(905	)		—		(905	)
Total notes receivable	$	10,209		$	117,078	$	127,287		$	10,896		$	116,726	$	127,622
Face value of discounted notes	$	31,448		$	106,466	$	137,914		$	31,755		$	108,621	$	140,376

Temporary equity

The following table presents a reconciliation of our consolidated temporary equity accounts from December 31, 2010 to June 30, 2011 (in thousands):

	Preferred
	noncontrolling			Preferred stock
	interests in Aimco			subject to
	Operating			repurchase
	Partnership			agreement
Balance, December 31, 2010	$	83,428		$	20,000
Preferred distributions		(3,342	)		—
Redemption of preferred units		(41	)		—
Repurchase of preferred shares		—			(10,000	)
Net income		3,342			—
Balance, June 30, 2011	$	83,387		$	10,000

Permanent equity

The following table presents a reconciliation of our consolidated permanent equity accounts from December 31, 2010 to June 30, 2011(in thousands):

				Noncontrolling			Common
				interests in			noncontrolling
				consolidated real			interests in
	Aimco			estate			Aimco Operating			Total
	Equity			partnerships			Partnership			Equity
Balance, December 31, 2010	$	1,046,042		$	291,458		$	(30,728	)	$	1,306,772
Contributions		—			11,121			—			11,121
Issuance of common stock		60,973			—			—			60,973
Discount on repurchase of preferred shares		3,000			—			—			3,000
Preferred stock dividends		(24,877	)		—			—			(24,877	)
Common dividends and distributions		(28,577	)		(16,606	)		(2,022	)		(47,205	)
Repurchases of common units		—			—			350			350
Amortization of stock based compensation cost		3,557			—			—			3,557
Stock option exercises		1,806			—			—			1,806
Effect of changes in ownership for consolidated entities (Note 4)		(41,112	)		14,124			9,454			(17,534	)
Change in accumulated other comprehensive loss		929			(103	)		(80	)		746
Other		270			(53	)		—			217
Net loss		(42,711	)		(10,076	)		(4,803	)		(57,590	)
Balance, June 30, 2011	$	979,300		$	289,865		$	(27,829	)	$	1,241,336

Fair value of assets and liabilities measured on a recurring basis

The table below presents information regarding significant items measured in our condensed consolidated financial statements at fair value on a recurring basis, consisting of investments in securities classified as available for sale (AFS), interest rate swaps (IR swaps), total rate of return swaps (TRR swaps) and debt subject to TRR swaps (TRR debt) (in thousands):

	Level 2					Level 3
			IR			TRR			TRR
	AFS (1)		swaps (2)			swaps (3)			debt (4)			Total
Fair value at December 31, 2009	$	—	$	(1,596	)	$	(24,307	)	$	24,307		$	(1,596	)
Unrealized gains (losses) included in earnings (5)		—		(23	)		907			(907	)		(23	)
Realized gains (losses) included in earnings		—		—			—			—			—
Unrealized gains (losses) included in equity		—		(2,006	)		—			—			(2,006	)
Fair value at June 30, 2010	$	—	$	(3,625	)	$	(23,400	)	$	23,400		$	(3,625	)
Fair value at December 31, 2010	$	—	$	(2,746	)	$	(19,542	)	$	19,542		$	(2,746	)
Purchases		51,534		—			—			—			51,534
Investment accretion (see Note 4)		269		—			—			—			269
Unrealized gains (losses) included in earnings (5)		—		(24	)		8,547			(8,547	)		(24	)
Realized gains (losses) included in earnings		—		—			—			—			—
Unrealized gains (losses) included in equity		1,573		(827	)		—			—			746
Fair value at June 30, 2011	$	53,376	$	(3,597	)	$	(10,995	)	$	10,995		$	49,779

(1)	The fair value of investments classified as available for sale is estimated using an income and market approach with primarily observable inputs, including information yields and other information regarding similar types of investments, and adjusted for certain unobservable inputs specific to these investments. The discount to the face value of the investments is accreted into interest income over the expected term of the investments. The amortized cost of these investments was $51.8 million at June 30, 2011. Refer to Note 4 for further discussion of these investments.
(2)	The fair value of interest rate swaps is estimated using an income approach with primarily observable inputs including information regarding the hedged variable cash flows and forward yield curves relating to the variable interest rates on which the hedged cash flows are based.
(3)	Total rate of return swaps have contractually-defined termination values generally equal to the difference between the fair value and the counterparty’s purchased value of the underlying borrowings. We calculate the termination value, which we believe is representative of the fair value, of total rate of return swaps using a market approach by reference to estimates of the fair value of the underlying borrowings, which are discussed below, and an evaluation of potential changes in the credit quality of the counterparties to these arrangements.
(4)	This represents changes in fair value of debt subject to our total rate of return swaps. We estimate the fair value of debt instruments using an income and market approach, including comparison of the contractual terms to observable and unobservable inputs such as market interest rate risk spreads, collateral quality and loan-to-value ratios on similarly encumbered assets within our portfolio. These borrowings are collateralized and non-recourse to us; therefore, we believe changes in our credit rating will not materially affect a market participant’s estimate of the borrowings’ fair value.
(5)	Unrealized gains (losses) relate to periodic revaluations of fair value, including revaluations resulting from repayment of the debt at par, and have not resulted from the settlement of a swap position as we have not historically incurred any termination payments upon settlement. These unrealized gains (losses) are included in interest expense in the accompanying condensed consolidated statements of operations.

Fair value of assets and liabilities measured on a nonrecurring basis

The table below presents information regarding amounts measured at fair value in our condensed consolidated financial statements on a nonrecurring basis during the six months ended June 30, 2011 and 2010, all of which were based, in part, on significant unobservable inputs classified within Level 3 of the valuation hierarchy (in thousands):

	Six Months Ended					Six Months Ended
	June 30, 2011					June 30, 2010
	Fair value		Total			Fair value		Total
	measurement		gain (loss)			measurement		gain (loss)
Real estate (impairment losses) (1)(3)	$	49,114	$	(7,390	)	$	29,050	$	(6,883	)
Real estate (newly consolidated) (2)(3)		—		—			117,083		236
Property debt (newly consolidated) (2)(4)		—		—			83,890		—

(1) During the six months ended June 30, 2011 and 2010, we reduced the aggregate carrying amounts of $56.5 million and $35.9 million, respectively, for real estate assets classified as held for sale to their estimated fair value, less estimated costs to sell. These impairment losses recognized generally resulted from a reduction in the estimated holding period for these assets. In periods prior to their classification as held for sale, we evaluated the recoverability of their carrying amounts based on an analysis of the undiscounted cash flows over the anticipated expected holding period.

(2)	In connection with our adoption of revised accounting guidance regarding consolidation of VIEs and reconsideration events during the six months ended June 30, 2010, we consolidated 17 partnerships at fair value. With the exception of such partnerships’ investments in real estate properties and related non-recourse property debt obligations, we determined the carrying amounts of the related assets and liabilities approximated their fair values. The difference between our recorded investments in such partnerships and the fair value of the assets and liabilities recognized in consolidation resulted in an adjustment of consolidated equity (allocated between Aimco and noncontrolling interests) for those partnerships consolidated in connection with our adoption of the revised accounting guidance for VIEs. For the partnerships we consolidated at fair value due to reconsideration events during the six months ended June 30, 2010, the difference between our recorded investments in such partnerships and the fair value of the assets, liabilities and noncontrolling interests recognized upon consolidation resulted in our recognition of a gain, which is included in gain on disposition of unconsolidated real estate and other in our condensed consolidated statement of operations for the six months ended June 30, 2010.
(3)	We estimate the fair value of real estate using income and market valuation techniques using information such as broker estimates, purchase prices for recent transactions on comparable assets and net operating income capitalization analyses using observable and unobservable inputs such as capitalization rates, asset quality grading, geographic location analysis, and local supply and demand observations.
(4)	Refer to the recurring fair value measurements table for an explanation of the valuation techniques we use to estimate the fair value of debt.

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Business Segments (Details) (USD $) In Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Summary information for the reportable segments
Rental and other property revenues	$ 273,384	$ 266,728	$ 545,176	$ 533,332
Asset management and tax credit revenues	7,651	9,796	16,887	14,497
Total revenues	281,035	276,524	562,063	547,829
Property operating expenses	117,379	123,126	240,908	250,266
Investment management expenses	2,187	5,141	5,219	8,370
Depreciation and amortization	94,084	102,809	193,117	206,092
General and administrative expenses	12,372	15,184	23,498	26,919
Other expenses (income), net	5,222	(4,485)	9,156	(2,148)
Total operating expenses	231,244	241,775	471,898	489,499
Net operating income (loss)	49,791	34,749	90,165	58,330
Other items included in continuing operations	(93,231)	(73,015)	(164,016)	(132,288)
Income (loss) from continuing operations	(43,440)	(38,266)	(73,851)	(73,958)
Conventional Real Estate Operations [Member]
Summary information for the reportable segments
Rental and other property revenues	208,253	203,251	414,800	407,082
Total revenues	208,253	203,251	414,800	407,082
Property operating expenses	77,323	78,396	156,752	162,300
Total operating expenses	77,323	78,396	156,752	162,300
Net operating income (loss)	130,930	124,855	258,048	244,782
Income (loss) from continuing operations	130,930	124,855	258,048	244,782
Affordable Real Estate Operations [Member]
Summary information for the reportable segments
Rental and other property revenues	32,826	31,661	65,704	62,723
Total revenues	32,826	31,661	65,704	62,723
Property operating expenses	13,599	13,924	27,346	28,805
Total operating expenses	13,599	13,924	27,346	28,805
Net operating income (loss)	19,227	17,737	38,358	33,918
Income (loss) from continuing operations	19,227	17,737	38,358	33,918
Proportionate Adjustments [Member]
Summary information for the reportable segments
Rental and other property revenues	32,029	31,159	63,816	62,137
Total revenues	32,029	31,159	63,816	62,137
Property operating expenses	13,912	13,978	28,332	29,025
Total operating expenses	13,912	13,978	28,332	29,025
Net operating income (loss)	18,117	17,181	35,484	33,112
Income (loss) from continuing operations	18,117	17,181	35,484	33,112
Corporate and Amounts Not Allocated to Segments [Member]
Summary information for the reportable segments
Rental and other property revenues	276	657	856	1,390
Asset management and tax credit revenues	7,651	9,796	16,887	14,497
Total revenues	7,927	10,453	17,743	15,887
Property operating expenses	12,545	16,828	28,478	30,136
Investment management expenses	2,187	5,141	5,219	8,370
Depreciation and amortization	94,084	102,809	193,117	206,092
General and administrative expenses	12,372	15,184	23,498	26,919
Other expenses (income), net	5,222	(4,485)	9,156	(2,148)
Total operating expenses	126,410	135,477	259,468	269,369
Net operating income (loss)	(118,483)	(125,024)	(241,725)	(253,482)
Other items included in continuing operations	(93,231)	(73,015)	(164,016)	(132,288)
Income (loss) from continuing operations	$ (211,714)	$ (198,039)	$ (405,741)	$ (385,770)

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Subsequent Events

6 Months Ended

Jun. 30, 2011

Subsequent Events [Abstract]

Subsequent Events

NOTE 8 — Subsequent Events

During July 2011, we issued 800,000 shares of 7.00% Class Z Cumulative Preferred Stock, par value $0.01 per share, in an underwritten public offering for net proceeds per share of $23.09 (reflecting a price to the public of $24.25 per share, less an underwriting discount, commissions and estimated transaction costs of $1.16 per share). The offering generated net proceeds of $18.5 million (after deducting underwriting discounts, commissions and estimated transaction costs). We intend to use the net proceeds to partially redeem outstanding preferred securities with a higher dividend rate.

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Organization

6 Months Ended

Jun. 30, 2011

Organization [Abstract]

Organization

NOTE 1 — Organization

Apartment Investment and Management Company, or Aimco, is a Maryland corporation incorporated on January 10, 1994. We are a self-administered and self-managed real estate investment trust, or REIT. Our principal financial objective is to provide predictable and attractive returns to our stockholders. Our business plan to achieve this objective is to:

• own and operate a broadly diversified portfolio of primarily class “B/B+” assets (defined below) with properties concentrated in the 20 largest markets in the United States (as measured by total apartment value, which is the estimated total market value of apartment properties in a particular market);

• improve our portfolio by selling assets with lower projected returns and reinvesting those proceeds through the purchase of new assets or additional investment in existing assets in our portfolio, including increased ownership or redevelopment; and

• provide financial leverage primarily by the use of non-recourse, long-dated, fixed-rate property debt and perpetual preferred equity.

As of June 30, 2011, we:

• owned an equity interest in 215 conventional real estate properties with 67,049 units;

• owned an equity interest in 205 affordable real estate properties with 24,406 units; and

• provided services for, or managed, 13,921 units in 187 properties, primarily pursuant to long-term asset management agreements. In certain cases, we may indirectly own generally less than one percent of the operations of such properties through a syndication or other fund.

Of these properties, we consolidated 209 conventional properties with 65,603 units and 163 affordable properties with 20,235 units. These conventional and affordable properties generated 87% and 13%, respectively, of our proportionate property net operating income (as defined in Note 7) during the six months ended June 30, 2011. During the six months ended June 30, 2011, as part of our ongoing effort to simplify our business, we resigned from our role providing asset or property management services for approximately 100 properties with approximately 11,400 units.

For conventional assets, we focus on the ownership of primarily B/B+ assets. We measure conventional property asset quality based on average rents of our units compared to local market average rents as reported by a third-party provider of commercial real estate performance and analysis, with A-quality assets earning rents greater than 125% of local market average, B-quality assets earning rents 90% to 125% of local market average and C-quality assets earning rents less than 90% of local market average. We classify as B/B+ those assets earning rents ranging from 100% to 125% of local market average. Although some companies and analysts within the multifamily real estate industry use asset class ratings of A, B and C, some of which are tied to local market rent averages, the metrics used to classify asset quality as well as the timing for which local markets rents are calculated may vary from company to company. Accordingly, our rating system for measuring asset quality is neither broadly nor consistently used in the multifamily real estate industry.

Through our wholly-owned subsidiaries, AIMCO-GP, Inc. and AIMCO-LP Trust, we own a majority of the ownership interests in AIMCO Properties, L.P., which we refer to as the Aimco Operating Partnership. As of June 30, 2011, we held an interest of approximately 94% in the common partnership units and equivalents of the Aimco Operating Partnership. We conduct substantially all of our business and own substantially all of our assets through the Aimco Operating Partnership. Interests in the Aimco Operating Partnership that are held by limited partners other than Aimco are referred to as “OP Units.” OP Units include common partnership units, high performance partnership units and partnership preferred units, which we refer to as common OP Units, High Performance Units and preferred OP Units, respectively. At June 30, 2011, after elimination of shares held by consolidated subsidiaries, 120,477,521 shares of our Common Stock were outstanding and the Aimco Operating Partnership had 8,346,803 common OP Units and equivalents outstanding for a combined total of 128,824,324 shares of Common Stock, common OP Units and equivalents outstanding.

Except as the context otherwise requires, “we,” “our,” “us” and the “Company” refer to Aimco, the Aimco Operating Partnership and their consolidated entities, collectively.

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Other Significant Transactions

6 Months Ended

Jun. 30, 2011

Other Significant Transactions [Abstract]

Other Significant Transactions

NOTE 4 — Other Significant Transactions

Property Loan Securitization Transactions

During the three months ended June 30, 2011, we completed a series of financing transactions that repaid $625.7 million of non-recourse property loans that were scheduled to mature between the years 2012 and 2016 with proceeds from new long-term, fixed-rate, non-recourse property loans, or the New Loans. The New Loans, which total $673.8 million, were closed in three parts; $218.6 million closed during the three months ended December 31, 2010, $120.6 million closed during the three months ended March 31, 2011, and $334.6 million closed during the three months ended June 30, 2011. All of the New Loans have a ten year term, with principal scheduled to amortize over 30 years. Subsequent to origination, the New Loans were sold to Federal Home Loan Mortgage Corp, or Freddie Mac, which then securitized the New Loans. The securitization trust will hold only the New Loans referenced above and the trust securities trade under the label FREMF 2011K-AIV. In connection with the refinancings during the three months ended June 30, 2011, we recognized a loss on debt extinguishment of $23.0 million in interest expense, consisting of $20.7 million in prepayment penalties and a $2.3 million write off of previous deferred loan costs.

During the three months ended June 30, 2011, as part of the securitization transaction, we purchased for $51.5 million the first loss and mezzanine positions in the securitization trust, which have a face value of $100.9 million and stated maturity dates corresponding to the terms of the loans held by the trust. We designated these investments as available for sale securities and they are included in other assets in our condensed consolidated balance sheet at June 30, 2011. These investments were initially recognized at their purchased value and the discount to the face value will be accreted into interest income over the expected term of the securities. Based on their classification as available for sale securities, we measure these investment at fair value with changes in their fair value, other than the changes attributed to the accretion described above, recognized as an adjustment of accumulated other comprehensive income or loss within equity.

Common Stock Issuances

During the six months ended June 30, 2011, we sold 2.8 million shares of Common Stock under our “at the market,” or ATM, offering program, generating $70.6 million of gross proceeds, or $69.2 million net of commissions. Sales of approximately 325,000 of these shares were initiated during the six months ended June 30, 2011, but settled in the subsequent period. Accordingly, for accounting purposes these shares were not reflected as issued and outstanding during the six months ended June 30, 2011, and the net proceeds of $8.2 million will be recognized in the subsequent period. We used the net proceeds to fund the prepayment penalties and investments discussed above.

Acquisitions of Noncontrolling Partnership Interests

During the six months ended June 30, 2011, we acquired the remaining noncontrolling limited partnership interests in six consolidated real estate partnerships that own nine properties and in which our affiliates serve as general partner, for a total cost of $13.6 million. We recognized the excess of the cost over the carrying amount of the noncontrolling interests acquired as an adjustment of additional paid-in capital within Aimco equity, net of the amount of such adjustment allocated to common noncontrolling interests in Aimco Operating Partnership. During the six months ended June 30, 2010, there were no comparable acquisitions of noncontrolling limited partnership interests.

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Earnings (Loss) per Share (Details) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Numerator:
Loss from continuing operations	$ (43,440,000)	$ (38,266,000)	$ (73,851,000)	$ (73,958,000)
Loss from continuing operations attributable to noncontrolling interests	11,369,000	10,183,000	18,425,000	9,892,000
Income attributable to preferred stockholders	(9,672,000)	(10,128,000)	(22,128,000)	(23,050,000)
Income attributable to participating securities	(54,000)	(42,000)	(111,000)
Income (loss) from continuing operations attributable to Aimco common stockholders	(41,797,000)	(38,253,000)	(77,665,000)	(87,116,000)
Income from discontinued operations, net	16,469,000	28,096,000	19,603,000	47,028,000
(Income) loss from discontinued operations attributable to noncontrolling interests	(7,849,000)	(7,838,000)	(6,888,000)	(18,305,000)
Income from discontinued operations attributable Aimco common stockholders	8,620,000	20,258,000	12,715,000	28,723,000
Net loss	(26,971,000)	(10,170,000)	(54,248,000)	(26,930,000)
Loss (income) attributable to noncontrolling interests	3,520,000	2,345,000	11,537,000	(8,413,000)
Net income attributable to Aimco preferred stockholders	(9,672,000)	(10,128,000)	(22,128,000)	(23,050,000)
Net income attributable to participating securities	(54,000)	(42,000)	(111,000)
Net loss attributable to Aimco common stockholders	(33,177,000)	(17,995,000)	(64,950,000)	(58,393,000)
Denominator:
Denominator for basic earnings per share - weighted average number of shares of Common Stock outstanding	119,156,000	116,323,000	118,238,000	116,179,000
Effect of dilutive securities:
Dilutive potential common shares	0	0	0	0
Denominator for diluted earnings per share	119,156,000	116,323,000	118,238,000	116,179,000
Basic and diluted earnings (loss) per common share:
Loss from continuing operations attributable to Aimco common stockholders	$ (0.35)	$ (0.33)	$ (0.66)	$ (0.75)
Income from discontinued operations attributable to Aimco common stockholders	$ 0.07	$ 0.18	$ 0.11	$ 0.25
Net loss attributable to Aimco common stockholders	$ (0.28)	$ (0.15)	$ (0.55)	$ (0.50)
Earnings (Loss) per Share (Textuals) [Abstract]
Common share equivalents that could potentially dilute basic earnings per share in future periods			6,900,000	7,200,000
Participating securities			500,000	600,000
Preferred OP Units, Distributions, Low Range	1.80%		1.80%
Preferred OP Units, Distributions, High Range	8.80%		8.80%
Preferred OP Units outstanding	3,100,000		3,100,000
Redemption value of Preferred OP Units outstanding	$ 82,500,000		$ 82,500,000
Number of shares of common stock required to redeem Preferred OP Units tendered for redemption, if parent chooses to redeem in shares rather than cash	3,200,000		3,200,000

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2011

Commitments and Contingencies [Abstract]

Commitments and Contingencies

NOTE 5 — Commitments and Contingencies

Commitments

In connection with our redevelopment and capital improvement activities, we have commitments of approximately $14.0 million related to construction projects, most of which we expect to incur during the remainder of 2011 and during 2012. Additionally, we enter into certain commitments for future purchases of goods and services in connection with the operations of our properties. Those commitments generally have terms of one year or less and reflect expenditure levels comparable to our historical expenditures.

We have committed to fund an additional $3.4 million in loans on certain unconsolidated properties in West Harlem in New York City. Additionally, in certain circumstances, the obligor under these notes has the ability to put the properties to us, which would result in a cash payment of approximately $30.7 million and the assumption of $118.5 million in property debt. The obligor’s right to exercise the put depends upon the achievement of specified operating performance thresholds.

We have an agreement that allows the holder of some of our Series A Community Reinvestment Act Preferred Stock, or the CRA Preferred Stock, to require us to repurchase $10.0 million in liquidation preference of the CRA Preferred Stock at a 30% discount, during the three months ending June 30, 2012. Based on the holder’s ability to require us to repurchase this amount, the $10.0 million in liquidation preference of CRA Preferred Stock, or the maximum redemption value of such preferred stock, is classified within temporary equity in our condensed consolidated balance sheet at June 30, 2011.

Tax Credit Arrangements

We are required to manage certain consolidated real estate partnerships in compliance with various laws, regulations and contractual provisions that apply to our historic and low-income housing tax credit syndication arrangements. In some instances, noncompliance with applicable requirements could result in projected tax benefits not being realized and require a refund or reduction of investor capital contributions, which are reported as deferred income in our consolidated balance sheet, until such time as our obligation to deliver tax benefits is relieved. The remaining compliance periods for our tax credit syndication arrangements range from less than one year to 15 years. We do not anticipate that any material refunds or reductions of investor capital contributions will be required in connection with these arrangements.

Legal Matters

In addition to the matters described below, we are a party to various legal actions and administrative proceedings arising in the ordinary course of business, some of which are covered by our general liability insurance program, and none of which we expect to have a material adverse effect on our consolidated financial condition, results of operations or cash flows.

Limited Partnerships

In connection with our acquisitions of interests in real estate partnerships, we are sometimes subject to legal actions, including allegations that such activities may involve breaches of fiduciary duties to the partners of such real estate partnerships or violations of the relevant partnership agreements. We may incur costs in connection with the defense or settlement of such litigation. We believe that we comply with our fiduciary obligations and relevant partnership agreements. Although the outcome of any litigation is uncertain, we do not expect any such legal actions to have a material adverse effect on our consolidated financial condition, results of operations or cash flows.

During the three months ended June 30, 2011, we mediated the previously disclosed dispute with respect to mergers completed earlier in 2011 in which we acquired the remaining noncontrolling interests in six consolidated real estate partnerships. As a result of the mediation we agreed to pay the limited partners additional consideration of $7.5 million for their partnership units.

Environmental

Various Federal, state and local laws subject property owners or operators to liability for management, and the costs of removal or remediation, of certain potentially hazardous materials present on a property, including lead-based paint, asbestos, polychlorinated biphenyls, petroleum-based fuels, and other miscellaneous materials. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release or presence of such materials. The presence of, or the failure to manage or remedy properly, these materials may adversely affect occupancy at affected apartment communities and the ability to sell or finance affected properties. In addition to the costs associated with investigation and remediation actions brought by government agencies, and potential fines or penalties imposed by such agencies in connection therewith, the improper management of these materials on a property could result in claims by private plaintiffs for personal injury, disease, disability or other infirmities. Various laws also impose liability for the cost of removal, remediation or disposal of these materials through a licensed disposal or treatment facility. Anyone who arranges for the disposal or treatment of these materials is potentially liable under such laws. These laws often impose liability whether or not the person arranging for the disposal ever owned or operated the disposal facility. In connection with the ownership, operation and management of properties, we could potentially be responsible for environmental liabilities or costs associated with our properties or properties we acquire or manage in the future.

We have determined that our legal obligations to remove or remediate certain potentially hazardous materials may be conditional asset retirement obligations, as defined in GAAP. Except in limited circumstances where the asset retirement activities are expected to be performed in connection with a planned construction project or property casualty, we believe that the fair value of our asset retirement obligations cannot be reasonably estimated due to significant uncertainties in the timing and manner of settlement of those obligations. Asset retirement obligations that are reasonably estimable as of June 30, 2011, are immaterial to our consolidated financial condition, results of operations and cash flows.

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Real Estate Dispositions (Details Textuals) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Dec. 31, 2010
Gain on Dispositions of Unconsolidated Real Estate and Other (Textuals) [Abstract]
Number of properties classified as held for sale	2		2		29
Number of units in properties classified as held for sale	710		710		4,750
Number of consolidated properties disposed			27	23	51
Number of units in consolidated properties disposed			4,040	3,547	8,189
Prepayment penalties treated as reduction of gain upon repayment of property loans collateralized by properties sold	$ 4.8	$ 2.6	$ 5.0	$ 3.2
Goodwill related to conventional and affordable segments allocated to carrying amounts of properties sold or classified as held for sale	0.9	1.5	1.7	2.8
Amount of allocated goodwill reducing gain on dispositions of real estate for properties sold or classified as held for sale	0.7		1.2
Amount of allocated goodwill treated as an adjustment of impairment losses for properties sold or classified as held for sale	0.2		0.5
Reduction of gain on dispositions of real estate		1.4		2.6
Reduction of gain on dispositions of real estate adjustment of impairment losses		$ 0.1		$ 0.2

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Business Segments (Details Textuals) (USD $) In Millions, unless otherwise specified	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Conventional Real Estate Operations [Member]
Business Segments (Textuals) [Abstract]
Number of owned real estate properties in segments	215
Number of units in owned real estate properties in segments	67,049
Capital additions related to segments	$ 58.9	$ 64.0
Affordable Real Estate Operations [Member]
Business Segments (Textuals) [Abstract]
Number of owned real estate properties in segments	205
Number of units in owned real estate properties in segments	24,406
Capital additions related to segments	$ 8.3	$ 15.9

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Commitments and Contingencies (Details Textuals) (USD $)	3 Months Ended	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2011	Dec. 31, 2010
Class of Stock [Line Items]
Discount To Liquidation Preference for Repurchase of Portion of CRA Preferred Stock Value	$ 10,000,000	$ 10,000,000
Temporary Equity, Carrying Amount	10,000,000	10,000,000	20,000,000
Commitments and Contingencies (Textuals) [Abstract]
Commitments related to capital spending activities		14,000,000
Term of commitments to purchase goods or services related to the operations of properties		one year or less
Commitment to advance funds	3,400,000	3,400,000
Maximum cash payment required for acquisition of certain properties that collateralize our notes receivable upon the obligor's exercise of put option	30,700,000	30,700,000
Assumption of property debt required for acquisition of certain properties that collateralize our notes receivable upon the obligor's exercise of put option	118,500,000	118,500,000
Amount of additional consideration accrued for purchase of noncontrolling interests in consolidated real estate partnerships	7,500,000	7,500,000
Range of remaining compliance periods for tax credit syndication arrangements		less than one year to 15 years
Series A CRA Preferred Stock [Member]
Class of Stock [Line Items]
Discount to liquidation preference for repurchase of a portion of CRA Preferred Stock	30.00%	30.00%
Temporary Equity, Carrying Amount	$ 10,000,000	$ 10,000,000

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Business Segments (Tables)

6 Months Ended

Jun. 30, 2011

Business Segments (Tables) [Abstract]

Summary information for the reportable segments

The following tables present the revenues, net operating income (loss) and income (loss) from continuing operations of our conventional and affordable real estate operations segments on a proportionate basis for the three and six months ended June 30, 2011 and 2010 (in thousands):

							Corporate and
	Conventional		Affordable		Proportionate		Amounts Not
	Real Estate		Real Estate		Adjustments		Allocated to
	Operations		Operations		(1)		Segments			Consolidated
Three Months Ended June 30, 2011:
Rental and other property revenues (2)	$	208,253	$	32,826	$	32,029	$	276		$	273,384
Asset management and tax credit revenues		—		—		—		7,651			7,651
Total revenues		208,253		32,826		32,029		7,927			281,035
Property operating expenses (2)		77,323		13,599		13,912		12,545			117,379
Investment management expenses		—		—		—		2,187			2,187
Depreciation and amortization (2)		—		—		—		94,084			94,084
General and administrative expenses		—		—		—		12,372			12,372
Other expenses, net		—		—		—		5,222			5,222
Total operating expenses		77,323		13,599		13,912		126,410			231,244
Net operating income (loss)		130,930		19,227		18,117		(118,483	)		49,791
Other items included in continuing operations		—		—		—		(93,231	)		(93,231	)
Income (loss) from continuing operations	$	130,930	$	19,227	$	18,117	$	(211,714	)	$	(43,440	)
Three Months Ended June 30, 2010:
Rental and other property revenues (2)	$	203,251	$	31,661	$	31,159	$	657		$	266,728
Asset management and tax credit revenues		—		—		—		9,796			9,796
Total revenues		203,251		31,661		31,159		10,453			276,524
Property operating expenses (2)		78,396		13,924		13,978		16,828			123,126
Investment management expenses		—		—		—		5,141			5,141
Depreciation and amortization (2)		—		—		—		102,809			102,809
General and administrative expenses		—		—		—		15,184			15,184
Other income, net		—		—		—		(4,485	)		(4,485	)
Total operating expenses		78,396		13,924		13,978		135,477			241,775
Net operating income (loss)		124,855		17,737		17,181		(125,024	)		34,749
Other items included in continuing operations		—		—		—		(73,015	)		(73,015	)
Income (loss) from continuing operations	$	124,855	$	17,737	$	17,181	$	(198,039	)	$	(38,266	)

							Corporate and
	Conventional		Affordable		Proportionate		Amounts Not
	Real Estate		Real Estate		Adjustments		Allocated to
	Operations		Operations		(1)		Segments			Consolidated
Six Months Ended June 30, 2011:
Rental and other property revenues (2)	$	414,800	$	65,704	$	63,816	$	856		$	545,176
Asset management and tax credit revenues		—		—		—		16,887			16,887
Total revenues		414,800		65,704		63,816		17,743			562,063
Property operating expenses (2)		156,752		27,346		28,332		28,478			240,908
Investment management expenses		—		—		—		5,219			5,219
Depreciation and amortization (2)		—		—		—		193,117			193,117
General and administrative expenses		—		—		—		23,498			23,498
Other expenses, net		—		—		—		9,156			9,156
Total operating expenses		156,752		27,346		28,332		259,468			471,898
Net operating income (loss)		258,048		38,358		35,484		(241,725	)		90,165
Other items included in continuing operations		—		—		—		(164,016	)		(164,016	)
Income (loss) from continuing operations	$	258,048	$	38,358	$	35,484	$	(405,741	)	$	(73,851	)
Six Months Ended June 30, 2010:
Rental and other property revenues (2)	$	407,082	$	62,723	$	62,137	$	1,390		$	533,332
Asset management and tax credit revenues		—		—		—		14,497			14,497
Total revenues		407,082		62,723		62,137		15,887			547,829
Property operating expenses (2)		162,300		28,805		29,025		30,136			250,266
Investment management expenses		—		—		—		8,370			8,370
Depreciation and amortization (2)		—		—		—		206,092			206,092
General and administrative expenses		—		—		—		26,919			26,919
Other income, net		—		—		—		(2,148	)		(2,148	)
Total operating expenses		162,300		28,805		29,025		269,369			489,499
Net operating income (loss)		244,782		33,918		33,112		(253,482	)		58,330
Other items included in continuing operations		—		—		—		(132,288	)		(132,288	)
Income (loss) from continuing operations	$	244,782	$	33,918	$	33,112	$	(385,770	)	$	(73,958	)

(1)

Represents adjustments for the noncontrolling interests in consolidated real estate partnerships’ share of the results of our consolidated properties, which are excluded from our measurement of segment performance but included in the related consolidated amounts, and our share of the results of operations of our unconsolidated real estate partnerships, which are included in our measurement of segment performance but excluded from the related consolidated amounts.

(2)

Proportionate property net operating income, our key measurement of segment profit or loss, excludes provision for operating real estate impairment losses, property management revenues (which are included in rental and other property revenues), property management expenses and casualty gains and losses (which are included in property operating expenses) and depreciation and amortization. Accordingly, we do not allocate these amounts to our segments.

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Earnings (Loss) per Share

6 Months Ended

Jun. 30, 2011

Earnings (Loss) per Share [Abstract]

Earnings (Loss) per Share

NOTE 6 — Earnings (Loss) per Share

We calculate earnings (loss) per share based on the weighted average number of shares of Common Stock, participating securities, common stock equivalents and dilutive convertible securities outstanding during the period. The following table illustrates the calculation of basic and diluted earnings (loss) per share for the three and six months ended June 30, 2011 and 2010 (in thousands, except per share data):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Numerator:
Loss from continuing operations	$	(43,440	)	$	(38,266	)	$	(73,851	)	$	(73,958	)
Loss from continuing operations attributable to noncontrolling interests		11,369			10,183			18,425			9,892
Income attributable to preferred stockholders		(9,672	)		(10,128	)		(22,128	)		(23,050	)
Income attributable to participating securities		(54	)		(42	)		(111	)		—
Loss from continuing operations attributable to Aimco common stockholders	$	(41,797	)	$	(38,253	)	$	(77,665	)	$	(87,116	)
Income from discontinued operations	$	16,469		$	28,096		$	19,603		$	47,028
Income from discontinued operations attributable to noncontrolling interests		(7,849	)		(7,838	)		(6,888	)		(18,305	)
Income from discontinued operations attributable to Aimco common stockholders	$	8,620		$	20,258		$	12,715		$	28,723
Net loss	$	(26,971	)	$	(10,170	)	$	(54,248	)	$	(26,930	)
Loss (income) attributable to noncontrolling interests		3,520			2,345			11,537			(8,413	)
Income attributable to preferred stockholders		(9,672	)		(10,128	)		(22,128	)		(23,050	)
Income attributable to participating securities		(54	)		(42	)		(111	)		—
Net loss attributable to Aimco common stockholders	$	(33,177	)	$	(17,995	)	$	(64,950	)	$	(58,393	)
Denominator:
Denominator for basic earnings per share — weighted average number of shares of Common Stock outstanding		119,156			116,323			118,238			116,179
Effect of dilutive securities:
Dilutive potential common shares		—			—			—			—
Denominator for diluted earnings per share		119,156			116,323			118,238			116,179
Earnings (loss) per common share:
Basic and diluted earnings (loss) per common share:
Loss from continuing operations attributable to Aimco common stockholders	$	(0.35	)	$	(0.33	)	$	(0.66	)	$	(0.75	)
Income from discontinued operations attributable to Aimco common stockholders		0.07			0.18			0.11			0.25
Net loss attributable to Aimco common stockholders	$	(0.28	)	$	(0.15	)	$	(0.55	)	$	(0.50	)

As of June 30, 2011 and 2010, the common share equivalents that could potentially dilute basic earnings per share in future periods totaled 6.9 million and 7.2 million, respectively. These securities, representing stock options, have been excluded from the earnings (loss) per share computations for the three and six months ended June 30, 2011 and 2010, because their effect would have been anti-dilutive. Participating securities, consisting of unvested restricted stock and shares purchased pursuant to officer loans, receive dividends similar to shares of Common Stock and totaled 0.5 million and 0.6 million at June 30, 2011 and 2010, respectively. The effect of participating securities is included in basic and diluted earnings (loss) per share computations for the periods presented above using the two-class method of allocating distributed and undistributed earnings.

Various classes of preferred OP Units of the Aimco Operating Partnership are outstanding. Depending on the terms of each class, these preferred OP Units are convertible into common OP Units or redeemable for cash or, at the Aimco Operating Partnership’s option, Common Stock, and are paid distributions varying from 1.8% to 8.8% per annum per unit, or equal to the dividends paid on Common Stock based on the conversion terms. As of June 30, 2011, a total of 3.1 million preferred OP Units were outstanding with redemption values of $82.5 million and were potentially redeemable for approximately 3.2 million shares of Common Stock (based on the period end market price), or cash at the Aimco Operating Partnership’s option. The Aimco Operating Partnership has a redemption policy that requires cash settlement of redemption requests for the preferred OP Units, subject to limited exceptions. The potential dilutive effect of these securities would have been antidilutive in the periods presented. Additionally, based on the Aimco Operating Partnership’s cash redemption policy, they may also be excluded from future earnings (loss) per share computations in periods during which their effect is dilutive.

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Basis of Presentation and Summary of Significant Accounting Policies (Details 1) (USD $) In Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Temporary equity
Temporary Equity, Beginning balance			$ 20,000
Net income	1,671	1,683	3,342	3,376
Temporary Equity, Ending balance	10,000		10,000
Preferred Noncontrolling Interests in Aimco Operating Partnership [Member]
Temporary equity
Temporary Equity, Beginning balance			83,428
Preferred distributions			(3,342)
Redemption of preferred units			(41)
Net income			3,342
Temporary Equity, Ending balance	83,387		83,387
Preferred stock subject to repurchase agreement [Member]
Temporary equity
Temporary Equity, Beginning balance			20,000
Repurchase of preferred shares			(10,000)
Temporary Equity, Ending balance	$ 10,000		$ 10,000

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Other Significant Transactions (Details) (USD $)	3 Months Ended			6 Months Ended
	Jun. 30, 2011	Mar. 31, 2011	Dec. 31, 2010	Jun. 30, 2011
Class of Stock [Line Items]
Total number of Common Stock sold	120,477,521		117,642,872	120,477,521
Proceeds from issuance of Common Stock				$ 60,973,000
Other Significant Transactions (Textuals) [Abstract]
Principal amount of debt scheduled to maturity between 2012 and 2016 repaid through a series of financing transactions completed during the period	625,700,000
Total amount of new loans	673,800,000			673,800,000
Proceeds from series of financing transactions that repaid non-recourse property loans scheduled to mature between 2012 and 2016		120,600,000	218,600,000	334,600,000
Total purchase under securitization transaction	51,500,000			51,534,000
Face value of investments in debt securities classified as available for sale	100,900,000			100,900,000
Term of new loan				10 years
Term of new loan scheduled to amortize				30 years
Losses on extinguishment of debt	23,000,000
Prepayment penalties associated with loans	20,700,000
Write off of deferred loan cost	2,300,000
Total cost of noncontrolling limited partnership interests				13,600,000
Accrued settlement included in total cost of noncontrolling limited partnership interests				7,500,000
Sales of common stock initiated but settled in the subsequent period				325,000
Net proceeds from sales of common stock that will be recognized in the subsequent period				8,200,000
Common Class A [Member]
Class of Stock [Line Items]
Total number of Common Stock sold	2,800,000			2,800,000
Gross proceeds from sale of Common Stock				70,600,000
Proceeds from issuance of Common Stock				$ 69,200,000

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (54,248)	$ (26,930)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation and amortization	193,117	206,092
Equity in losses (earnings) of unconsolidated real estate partnerships	3,446	(3,853)
Gain on dispositions of unconsolidated real estate and other	(2,021)	(4,485)
Discontinued operations	(16,641)	(33,424)
Other adjustments	9,063	2,090
Net changes in operating assets and operating liabilities	(37,508)	(28,527)
Net cash provided by operating activities	95,208	110,963
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(61,849)	(79,023)
Proceeds from dispositions of real estate	87,313	107,163
Purchases of interests in unconsolidated real estate and corporate assets	(28,714)	(3,291)
Purchase of investment in debt securities (Note 4)	(51,534)
Originations of notes receivable from unconsolidated real estate partnerships	(411)	(733)
Proceeds from repayment of notes receivable	6,264	1,650
Proceeds from sale of interests in and distributions from real estate partnerships	3,303	9,132
Net increase in cash from consolidation and deconsolidation of entities		13,118
Other investing activities	12,090	8,341
Net cash (used in) provided by investing activities	(33,538)	56,357
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from property loans	662,601	125,491
Principal repayments on property loans	(647,719)	(124,794)
Principal repayments on tax-exempt bond financing	(98,447)	(31,061)
Payments on term loans		(65,000)
Net borrowings on revolving credit facility	21,500
Repurchases of preferred stock	(7,000)	(7,000)
Proceeds from issuance of Common Stock	60,973
Proceeds from Class A Common Stock option exercises	1,806	1,806
Payment of dividends to holders of preferred stock	(24,877)	(25,829)
Payment of dividends to holders of Class A Common Stock	(28,577)	(23,334)
Payment of distributions to noncontrolling interests	(21,973)	(28,623)
Other financing activities	(5,958)	8,082
Net cash used in financing activities	(87,671)	(170,262)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(26,001)	(2,942)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	111,325	81,260
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 85,324	$ 78,318

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Basis of Presentation and Summary of Significant Accounting Policies (Details 2) (USD $) In Thousands	6 Months Ended
	Jun. 30, 2011
Permanent equity
Permanent Equity, Beginning Balance	$ 1,306,772
Contributions	11,121
Issuance of common stock	60,973
Discount on repurchase of preferred shares	3,000
Preferred stock dividends	(24,877)
Common dividends and distributions	(47,205)
Repurchases of common units	350
Amortization of stock based compensation cost	3,557
Stock option exercises	1,806
Effect of changes in ownership for consolidated entities (Note 4)	(17,534)
Change in accumulated other comprehensive loss	746
Other	217
Net loss	(57,590)
Permanent Equity, Ending Balance	1,241,336
Aimco Equity [Member]
Permanent equity
Permanent Equity, Beginning Balance	1,046,042
Issuance of common stock	60,973
Discount on repurchase of preferred shares	3,000
Preferred stock dividends	(24,877)
Common dividends and distributions	(28,577)
Amortization of stock based compensation cost	3,557
Stock option exercises	1,806
Effect of changes in ownership for consolidated entities (Note 4)	(41,112)
Change in accumulated other comprehensive loss	929
Other	270
Net loss	(42,711)
Permanent Equity, Ending Balance	979,300
Noncontrolling interests in consolidated real estate partnerships [Member]
Permanent equity
Permanent Equity, Beginning Balance	291,458
Contributions	11,121
Common dividends and distributions	(16,606)
Effect of changes in ownership for consolidated entities (Note 4)	14,124
Change in accumulated other comprehensive loss	(103)
Other	(53)
Net loss	(10,076)
Permanent Equity, Ending Balance	289,865
Common noncontrolling interests in Aimco operating partnership [Member]
Permanent equity
Permanent Equity, Beginning Balance	(30,728)
Common dividends and distributions	(2,022)
Repurchases of common units	350
Effect of changes in ownership for consolidated entities (Note 4)	9,454
Change in accumulated other comprehensive loss	(80)
Net loss	(4,803)
Permanent Equity, Ending Balance	$ (27,829)

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Basis of Presentation and Summary of Significant Accounting Policies (Details 4) (Fair Value, Inputs, Level 3 [Member], USD $) In Thousands	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Fair Value, Inputs, Level 3 [Member]
Fair value of assets and liabilities measured on a nonrecurring basis
Fair value measurement, impairment losses on real estate	$ 49,114	$ 29,050
Total gain (loss), impairments losses on real estate	(7,390)	(6,883)
Fair value measurement, Real estate newly consolidated	0	117,083
Total gain (loss), Real estate newly consolidated		236
Fair value measurement, Property debt newly consolidated	$ 0	$ 83,890

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Basis of Presentation and Summary of Significant Accounting Policies

6 Months Ended

Jun. 30, 2011

Basis of Presentation and Summary of Significant Accounting Policies [Abstract]

Basis of Presentation and Summary of Significant Accounting Policies

NOTE 2 — Basis of Presentation and Summary of Significant Accounting Policies

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America, or GAAP, have been condensed or omitted in accordance with such rules and regulations, although management believes the disclosures are adequate to prevent the information presented from being misleading. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. Operating results for the three and six months ended June 30, 2011, are not necessarily indicative of the results that may be expected for the year ending December 31, 2011.

The balance sheet at December 31, 2010, has been derived from the audited financial statements at that date, but does not include all of the information and disclosures required by GAAP for complete financial statements. For further information, refer to the financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2010. Certain 2010 financial statement amounts have been reclassified to conform to the 2011 presentation, including adjustments for discontinued operations.

Principles of Consolidation

The accompanying condensed consolidated financial statements include the accounts of Aimco, the Aimco Operating Partnership, and their consolidated entities. We consolidate all variable interest entities for which we are the primary beneficiary. Generally, we consolidate real estate partnerships and other entities that are not variable interest entities when we own, directly or indirectly, a majority voting interest in the entity or are otherwise able to control the entity. All significant intercompany balances and transactions have been eliminated in consolidation.

Interests in the Aimco Operating Partnership that are held by limited partners other than Aimco are reflected in the accompanying balance sheets as noncontrolling interests in Aimco Operating Partnership. Interests in partnerships consolidated into the Aimco Operating Partnership that are held by third parties are reflected in the accompanying balance sheets as noncontrolling interests in consolidated real estate partnerships. The assets of consolidated real estate partnerships owned or controlled by us generally are not available to pay creditors of Aimco or the Aimco Operating Partnership.

As used herein, and except where the context otherwise requires, “partnership” refers to a limited partnership or a limited liability company and “partner” refers to a partner in a limited partnership or a member in a limited liability company.

Variable Interest Entities

We consolidate all variable interest entities for which we are 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.

In determining whether we are the primary beneficiary of a VIE, we consider 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 our investment; the obligation or likelihood for us or other investors to provide financial support; and the similarity with and significance to the business activities of us 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.

As of June 30, 2011, we were the primary beneficiary of, and therefore consolidated, approximately 125 VIEs, which owned 84 apartment properties with 12,982 units. Real estate with a carrying value of $817.3 million collateralized $643.5 million of debt of those VIEs. Any significant amounts of assets and liabilities related to our consolidated VIEs are identified parenthetically on our accompanying condensed consolidated balance sheets. The creditors of the consolidated VIEs do not have recourse to our general credit.

As of June 30, 2011, we also held variable interests in 244 VIEs for which we were not the primary beneficiary. Those VIEs consist primarily of partnerships that are engaged, directly or indirectly, in the ownership and management of 297 apartment properties with 18,606 units. We are involved with those VIEs as an equity holder, lender, management agent, or through other contractual relationships. The majority of our investments in unconsolidated VIEs, or approximately $42.8 million at June 30, 2011, are held through consolidated investment partnerships that are VIEs and in which we generally hold a 1% or less general partner or equivalent interest. Accordingly, substantially all of the investment balances related to these unconsolidated VIEs are attributed to the noncontrolling interests in the consolidated investment partnerships that hold the investments in these unconsolidated VIEs. Our maximum risk of loss related to our investment in these VIEs is generally limited to our equity interest in the consolidated investment partnerships, which is insignificant. The remainder of our investment in unconsolidated VIEs, or approximately $5.9 million at June 30, 2011, is held through consolidated tax credit funds that are VIEs and in which we hold substantially all of the economic interests. Our maximum risk of loss related to our investment in these VIEs is limited to our $5.9 million recorded investment in such entities.

In addition to our investments in unconsolidated VIEs discussed above, at June 30, 2011, we had in aggregate $99.8 million of receivables from these unconsolidated VIEs and we had a contractual obligation to advance funds to certain unconsolidated VIEs totaling $3.4 million. Our maximum risk of loss associated with our lending and management activities related to these unconsolidated VIEs is limited to these amounts. We may be subject to additional losses to the extent of any receivables relating to future provision of services to these entities or financial support that we voluntarily provide.

As discussed in Note 5, noncompliance with applicable requirements related to our consolidated and unconsolidated tax credit partnerships, substantially all of which are VIEs, could result in projected tax credits not being realized and require a refund of investor contributions already received or a reduction of future investor contributions. We have not historically had, nor do we anticipate, any material refunds or reductions of investor capital contributions in connection with these arrangements.

Notes Receivable

Notes receivable from unconsolidated real estate partnerships and from non-affiliates represent our two portfolio segments (as defined in FASB ASC Topic 310) that we use to evaluate for potential loan loss. Notes receivable from unconsolidated real estate partnerships consist primarily of notes receivable from partnerships in which we are the general partner but do not consolidate the partnership. These loans are typically due on demand, have no stated maturity date and may not require current payments of principal or interest. Notes receivable from non-affiliates have stated maturity dates and may require current payments of principal and interest. Repayment of our notes is subject to a number of variables, including the performance and value of the underlying real estate properties and the claims of unaffiliated mortgage lenders, which are generally senior to our claims. Our notes receivable consist of two classes: loans extended by us that we carry at the face amount plus accrued interest, which we refer to as “par value notes”; and loans extended by predecessors whose positions we generally acquired at a discount, which we refer to as “discounted notes.”

We record interest income on par value notes as earned in accordance with the terms of the related loan agreements. We discontinue the accrual of interest on such notes when the notes are impaired, as discussed below, or when there is otherwise significant uncertainty as to the collection of interest. We record income on such nonaccrual loans using the cost recovery method, under which we apply cash receipts first to the recorded amount of the loan; thereafter, any additional receipts are recognized as income.

We recognize interest income on discounted notes receivable based upon whether the amount and timing of collections are both probable and reasonably estimable. We consider collections to be probable and reasonably estimable when the borrower has closed or entered into certain pending transactions (which include real estate sales, refinancings, foreclosures and rights offerings) that provide a reliable source of repayment. In such instances, we recognize accretion income, on a prospective basis using the effective interest method over the estimated remaining term of the notes, equal to the difference between the carrying amount of the discounted notes and the estimated collectible value. We record income on all other discounted notes using the cost recovery method.

We assess the collectibility of notes receivable on a periodic basis, which assessment consists primarily of an evaluation of cash flow projections of the borrower to determine whether estimated cash flows are sufficient to repay principal and interest in accordance with the contractual terms of the note. We update our cash flow projections of the borrowers annually, and more frequently for certain loans depending on facts and circumstances. We recognize provisions for losses on notes receivable when it is probable that principal and interest will not be received in accordance with the contractual terms of the loan. Factors that affect this assessment include the fair value of the partnership’s real estate, pending transactions to refinance the partnership’s senior obligations or sell the partnership’s real estate, and market conditions (current and forecasted) related to a particular asset. The amount of the provision to be recognized generally is based on the fair value of the partnership’s real estate that represents the primary source of loan repayment. In certain instances where other sources of cash flow are available to repay the loan, the provision is measured by discounting the estimated cash flows at the loan’s original effective interest rate.

The following table summarizes our notes receivable as of June 30, 2011 and December 31, 2010 (in thousands):

	June 30, 2011								December 31, 2010
	Unconsolidated								Unconsolidated
	Real Estate			Non-					Real Estate			Non-
	Partnerships			Affiliates		Total			Partnerships			Affiliates		Total
Par value notes	$	10,081		$	19,572	$	29,653		$	10,821		$	17,899	$	28,720
Discounted notes		1,011			97,506		98,517			980			98,827		99,807
Allowance for loan losses		(883	)		—		(883	)		(905	)		—		(905	)
Total notes receivable	$	10,209		$	117,078	$	127,287		$	10,896		$	116,726	$	127,622
Face value of discounted notes	$	31,448		$	106,466	$	137,914		$	31,755		$	108,621	$	140,376

Notes receivable from unconsolidated real estate partnerships are generally unsecured and have various annual interest rates ranging between 4.3% and 12.0% and averaging 9.8%. Notes receivable from non-affiliates have various annual interest rates ranging between 2.1% and 8.8% and averaging 4.1%. Included in the notes receivable from non-affiliates at June 30, 2011 and December 31, 2010 are $99.9 million and $103.9 million, respectively, in notes that were secured by interests in real estate or interests in real estate partnerships.

During the six months ended June 30, 2011, there have been no significant changes in the allowance for loan losses related to our notes receivable from unconsolidated real estate partnerships and non-affiliates. Additionally, there have been no significant changes related to the carrying amounts, our average recorded investment in or unpaid principal balances for impaired loans. During the three and six months ended June 30, 2011 and 2010, we did not recognize any significant amounts of interest income related to impaired or non-impaired notes receivable.

We recognize interest income as earned on the $28.5 million of our par value notes receivable at June 30, 2011 that are estimated to be collectible and have not been impaired. Of our total par value notes outstanding at June 30, 2011, notes with balances of $18.9 million have stated maturity dates and the remainder have no stated maturity date and are governed by the terms of the partnership agreements pursuant to which the loans were extended. At June 30, 2011, none of the par value notes with stated maturity dates were past due.

Equity (including Noncontrolling Interests)

The following table presents a reconciliation of our consolidated temporary equity accounts from December 31, 2010 to June 30, 2011 (in thousands):

	Preferred
	noncontrolling			Preferred stock
	interests in Aimco			subject to
	Operating			repurchase
	Partnership			agreement
Balance, December 31, 2010	$	83,428		$	20,000
Preferred distributions		(3,342	)		—
Redemption of preferred units		(41	)		—
Repurchase of preferred shares		—			(10,000	)
Net income		3,342			—
Balance, June 30, 2011	$	83,387		$	10,000

The following table presents a reconciliation of our consolidated permanent equity accounts from December 31, 2010 to June 30, 2011(in thousands):

				Noncontrolling			Common
				interests in			noncontrolling
				consolidated real			interests in
	Aimco			estate			Aimco Operating			Total
	Equity			partnerships			Partnership			Equity
Balance, December 31, 2010	$	1,046,042		$	291,458		$	(30,728	)	$	1,306,772
Contributions		—			11,121			—			11,121
Issuance of common stock		60,973			—			—			60,973
Discount on repurchase of preferred shares		3,000			—			—			3,000
Preferred stock dividends		(24,877	)		—			—			(24,877	)
Common dividends and distributions		(28,577	)		(16,606	)		(2,022	)		(47,205	)
Repurchases of common units		—			—			350			350
Amortization of stock based compensation cost		3,557			—			—			3,557
Stock option exercises		1,806			—			—			1,806
Effect of changes in ownership for consolidated entities (Note 4)		(41,112	)		14,124			9,454			(17,534	)
Change in accumulated other comprehensive loss		929			(103	)		(80	)		746
Other		270			(53	)		—			217
Net loss		(42,711	)		(10,076	)		(4,803	)		(57,590	)
Balance, June 30, 2011	$	979,300		$	289,865		$	(27,829	)	$	1,241,336

Derivative Financial Instruments

We have limited exposure to derivative financial instruments. We are contractually obligated on certain of our variable rate debt to limit our exposure to interest rate fluctuations, and we do so by entering into interest rate swap agreements. We primarily use long-term, fixed-rate and self-amortizing non-recourse debt to avoid, among other things, risk related to fluctuating interest rates. For our variable rate debt, we are sometimes required by our lenders to limit our exposure to interest rate fluctuations by entering into interest rate swap agreements, which moderate our exposure to interest rate risk by effectively converting the interest on variable rate debt to a fixed rate. The fair values of the interest rate swaps are reflected as assets or liabilities in the balance sheet, and periodic changes in fair value are included in interest expense or equity, as appropriate.

At June 30, 2011 and December 31, 2010, we had interest rate swaps with aggregate notional amounts of $52.3 million, and recorded fair values of $3.6 million and $2.7 million, respectively, reflected in accrued liabilities and other in our condensed consolidated balance sheets. At June 30, 2011, these interest rate swaps had a weighted average term of 9.6 years. We have designated these interest rate swaps as cash flow hedges and recognize any changes in their fair value as an adjustment of accumulated other comprehensive loss within equity to the extent of their effectiveness. Changes in the fair value of these instruments and the related amounts of such changes that were reflected as an adjustment of accumulated other comprehensive loss within equity and as an adjustment of earnings (ineffectiveness) are discussed in the Fair Value Measurements section below.

If the forward rates at June 30, 2011 remain constant, we estimate that during the next twelve months, we would reclassify into earnings approximately $1.6 million of the unrealized losses in accumulated other comprehensive loss. If market interest rates increase above the 3.43% weighted average fixed rate under these interest rate swaps we will benefit from a lower effective rate than the underlying variable rates on this debt.

We have entered into total rate of return swaps on various fixed-rate property debt to convert these borrowings from a fixed rate to a variable rate and provide an efficient financing product to lower our cost of borrowing. In exchange for our receipt of a fixed rate generally equal to the underlying borrowing’s interest rate, the total rate of return swaps require that we pay a variable rate, equivalent to one of several indices, plus a risk spread. The underlying borrowings are generally callable at our option, with no prepayment penalty, with 30 days advance notice, and the swaps mature in 2012.

We designate total rate of return swaps as hedges of the risk of overall changes in the fair value of the underlying borrowings. At each reporting period, we estimate the fair value of these borrowings and the total rate of return swaps and recognize any changes therein as an adjustment of interest expense.

As of June 30, 2011 and December 31, 2010, we had borrowings payable subject to total rate of return swaps with aggregate outstanding principal balances of $164.3 million and $276.9 million, respectively. We reduced by $112.0 million the amount of debt subject to certain total rate of return swaps and terminated the associated swaps during the six months ended June 30, 2011, in connection with our refinancing of the underlying debt. We repaid the debt subject to the swaps at par and, accordingly, no payments were required upon termination of the swaps. The remaining reduction in the outstanding principal balance during the six months ended June 30, 2011 was due to other principal amortization. At June 30, 2011, the weighted average fixed receive rate under the total return swaps was 6.4% and the weighted average variable pay rate was 1.6%, based on the applicable index rates effective as of that date. Information related to the fair value of these instruments at June 30, 2011 and December 31, 2010, is discussed in the Fair Value Measurements section below.

Fair Value Measurements

We measure certain assets and liabilities in our consolidated financial statements at fair value, both on a recurring and nonrecurring basis. Certain of these fair value measurements are based on significant unobservable inputs classified within Level 3 of the valuation hierarchy defined in FASB ASC Topic 820. When a determination is made to classify a fair value measurement within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, Level 3 fair value measurements typically also include observable components that can be validated to observable external sources; accordingly, the changes in fair value in the table below are due in part to observable factors that are part of the valuation methodology.

The table below presents information regarding significant items measured in our condensed consolidated financial statements at fair value on a recurring basis, consisting of investments in securities classified as available for sale (AFS), interest rate swaps (IR swaps), total rate of return swaps (TRR swaps) and debt subject to TRR swaps (TRR debt) (in thousands):

	Level 2					Level 3
			IR			TRR			TRR
	AFS (1)		swaps (2)			swaps (3)			debt (4)			Total
Fair value at December 31, 2009	$	—	$	(1,596	)	$	(24,307	)	$	24,307		$	(1,596	)
Unrealized gains (losses) included in earnings (5)		—		(23	)		907			(907	)		(23	)
Realized gains (losses) included in earnings		—		—			—			—			—
Unrealized gains (losses) included in equity		—		(2,006	)		—			—			(2,006	)
Fair value at June 30, 2010	$	—	$	(3,625	)	$	(23,400	)	$	23,400		$	(3,625	)
Fair value at December 31, 2010	$	—	$	(2,746	)	$	(19,542	)	$	19,542		$	(2,746	)
Purchases		51,534		—			—			—			51,534
Investment accretion (see Note 4)		269		—			—			—			269
Unrealized gains (losses) included in earnings (5)		—		(24	)		8,547			(8,547	)		(24	)
Realized gains (losses) included in earnings		—		—			—			—			—
Unrealized gains (losses) included in equity		1,573		(827	)		—			—			746
Fair value at June 30, 2011	$	53,376	$	(3,597	)	$	(10,995	)	$	10,995		$	49,779

(1)	The fair value of investments classified as available for sale is estimated using an income and market approach with primarily observable inputs, including information yields and other information regarding similar types of investments, and adjusted for certain unobservable inputs specific to these investments. The discount to the face value of the investments is accreted into interest income over the expected term of the investments. The amortized cost of these investments was $51.8 million at June 30, 2011. Refer to Note 4 for further discussion of these investments.
(2)	The fair value of interest rate swaps is estimated using an income approach with primarily observable inputs including information regarding the hedged variable cash flows and forward yield curves relating to the variable interest rates on which the hedged cash flows are based.
(3)	Total rate of return swaps have contractually-defined termination values generally equal to the difference between the fair value and the counterparty’s purchased value of the underlying borrowings. We calculate the termination value, which we believe is representative of the fair value, of total rate of return swaps using a market approach by reference to estimates of the fair value of the underlying borrowings, which are discussed below, and an evaluation of potential changes in the credit quality of the counterparties to these arrangements.
(4)	This represents changes in fair value of debt subject to our total rate of return swaps. We estimate the fair value of debt instruments using an income and market approach, including comparison of the contractual terms to observable and unobservable inputs such as market interest rate risk spreads, collateral quality and loan-to-value ratios on similarly encumbered assets within our portfolio. These borrowings are collateralized and non-recourse to us; therefore, we believe changes in our credit rating will not materially affect a market participant’s estimate of the borrowings’ fair value.
(5)	Unrealized gains (losses) relate to periodic revaluations of fair value, including revaluations resulting from repayment of the debt at par, and have not resulted from the settlement of a swap position as we have not historically incurred any termination payments upon settlement. These unrealized gains (losses) are included in interest expense in the accompanying condensed consolidated statements of operations.

The table below presents information regarding amounts measured at fair value in our condensed consolidated financial statements on a nonrecurring basis during the six months ended June 30, 2011 and 2010, all of which were based, in part, on significant unobservable inputs classified within Level 3 of the valuation hierarchy (in thousands):

	Six Months Ended					Six Months Ended
	June 30, 2011					June 30, 2010
	Fair value		Total			Fair value		Total
	measurement		gain (loss)			measurement		gain (loss)
Real estate (impairment losses) (1)(3)	$	49,114	$	(7,390	)	$	29,050	$	(6,883	)
Real estate (newly consolidated) (2)(3)		—		—			117,083		236
Property debt (newly consolidated) (2)(4)		—		—			83,890		—

(1) During the six months ended June 30, 2011 and 2010, we reduced the aggregate carrying amounts of $56.5 million and $35.9 million, respectively, for real estate assets classified as held for sale to their estimated fair value, less estimated costs to sell. These impairment losses recognized generally resulted from a reduction in the estimated holding period for these assets. In periods prior to their classification as held for sale, we evaluated the recoverability of their carrying amounts based on an analysis of the undiscounted cash flows over the anticipated expected holding period.

(2)	In connection with our adoption of revised accounting guidance regarding consolidation of VIEs and reconsideration events during the six months ended June 30, 2010, we consolidated 17 partnerships at fair value. With the exception of such partnerships’ investments in real estate properties and related non-recourse property debt obligations, we determined the carrying amounts of the related assets and liabilities approximated their fair values. The difference between our recorded investments in such partnerships and the fair value of the assets and liabilities recognized in consolidation resulted in an adjustment of consolidated equity (allocated between Aimco and noncontrolling interests) for those partnerships consolidated in connection with our adoption of the revised accounting guidance for VIEs. For the partnerships we consolidated at fair value due to reconsideration events during the six months ended June 30, 2010, the difference between our recorded investments in such partnerships and the fair value of the assets, liabilities and noncontrolling interests recognized upon consolidation resulted in our recognition of a gain, which is included in gain on disposition of unconsolidated real estate and other in our condensed consolidated statement of operations for the six months ended June 30, 2010.
(3)	We estimate the fair value of real estate using income and market valuation techniques using information such as broker estimates, purchase prices for recent transactions on comparable assets and net operating income capitalization analyses using observable and unobservable inputs such as capitalization rates, asset quality grading, geographic location analysis, and local supply and demand observations.
(4)	Refer to the recurring fair value measurements table for an explanation of the valuation techniques we use to estimate the fair value of debt.

We believe that the aggregate fair value of our cash and cash equivalents, receivables, payables and short-term secured debt approximates their aggregate carrying amounts at June 30, 2011 and December 31, 2010, due to their relatively short-term nature and high probability of realization. We estimate fair value for our notes receivable and debt instruments using present value techniques that include income and market valuation approaches using observable inputs such as market rates for debt with the same or similar terms and unobservable inputs such as collateral quality and loan-to-value ratios on similarly encumbered assets. Because of the significance of unobservable inputs to these fair value measurements, we classify them within Level 3 of the fair value hierarchy. Present value calculations vary depending on the assumptions used, including the discount rate and estimates of future cash flows. In many cases, the fair value estimates may not be realizable in immediate settlement of the instruments. The estimated aggregate fair value of our notes receivable was approximately $114.7 million and $116.0 million at June 30, 2011 and December 31, 2010, respectively, as compared to their carrying amounts of $127.3 million and $127.6 million. The estimated aggregate fair value of our consolidated debt (including amounts reported in liabilities related to assets held for sale) was approximately $5.5 billion and $5.6 billion at June 30, 2011 and December 31, 2010, respectively, as compared to aggregate carrying amounts of $5.4 billion and $5.5 billion, respectively. The fair values of our derivative instruments at June 30, 2011 and December 31, 2010, are included in the recurring fair value measurements table above.

In May 2011, the FASB issued Accounting Standards Update 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, or ASU 2011-04. ASU 2011-04 amended ASC 820, Fair Value Measurements and Disclosures, to converge the fair value measurement guidance in GAAP and International Financial Reporting Standards. The amendments, which primarily require additional fair value disclosures, are to be applied prospectively for annual periods beginning after December 15, 2011. We are currently evaluating the effect ASU 2011-04 will have on our consolidated financial statements.

Comprehensive Income or Loss

As discussed in the Derivative Financial Instruments section, we recognize changes in the fair value of our cash flow hedges as changes in accumulated other comprehensive loss within equity. Additionally, as discussed in Note 4, we have investments classified as available for sale which are measured at fair value with unrealized gains or losses recognized as an adjustment of accumulated other comprehensive loss within equity. Our consolidated comprehensive loss for the three months ended June 30, 2011 and 2010, totaled $26.3 million and $12.0 million, respectively, and for the six months ended June 30, 2011 and 2010, totaled $53.5 million and $28.9 million, respectively, before the effects of noncontrolling interests.

In June 2011, the FASB issued Accounting Standards Update 2011-05, Presentation of Comprehensive Income, or ASU 2011-15, which revises the manner in which companies present comprehensive income. Under ASU 2011-15, companies may present comprehensive income, which is net income adjusted for the components of other comprehensive income, either in a single, continuous statement of comprehensive income or by using two separate but consecutive statements. Regardless of the alternative chosen, companies must display adjustments for items reclassified from other comprehensive income into net income within the presentation of both net income and other comprehensive income. ASU 2011-05 is effective for interim and annual periods beginning after December 15, 2011. We are currently evaluating the effect ASU 2011-15 will have on our consolidated financial statements and have not yet determined which method of presentation we will elect.

Concentration of Credit Risk

At June 30, 2011, we had total rate of return swap positions with two financial institutions totaling $164.6 million. We periodically evaluate counterparty credit risk associated with these arrangements. In the event either counterparty were to default under these arrangements, loss of the net interest benefit we generally receive under these arrangements, which is equal to the difference between the fixed rate we receive and the variable rate we pay, may adversely impact our results of operations and operating cash flows. However, at the current time, we have concluded we do not have material exposure.

Income Taxes

In March 2008, we were notified by the Internal Revenue Service, or the IRS, that it intended to examine the 2006 Federal tax return for the Aimco Operating Partnership. During June 2008, the IRS issued AIMCO-GP, Inc., the general partner and tax matters partner of the Aimco Operating Partnership, a summary report including the IRS’s proposed adjustments to the Aimco Operating Partnership’s 2006 Federal tax return. In addition, in May 2009, we were notified by the IRS that it intended to examine the 2007 Federal tax return for the Aimco Operating Partnership. During November 2009, the IRS issued AIMCO-GP, Inc. a summary report including the IRS’s proposed adjustments to the Aimco Operating Partnership’s 2007 Federal tax return. The matter is currently pending administratively before IRS Appeals and the IRS has made no determination. We do not expect the 2006 or 2007 proposed adjustments to have any material effect on our unrecognized tax benefits, financial condition or results of operations.

Use of Estimates

The preparation of our condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes thereto. Actual results could differ from those estimates.

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Real Estate Dispositions (Tables)

6 Months Ended

Jun. 30, 2011

Real Estate Dispositions (Tables) [Abstract]

Amounts classified as held for sale in consolidated balance sheets

	June 30,		December 31,
	2011		2010
Real estate, net	$	23,137	$	146,805
Other assets		576		2,071
Assets held for sale	$	23,713	$	148,876
Property debt	$	23,951	$	112,034
Other liabilities		226		1,255
Liabilities related to assets held for sale	$	24,177	$	113,289

Components of income from discontinued operations including portions attributable to Aimco and noncontrolling interests

The following is a summary of the components of income from discontinued operations and the related amounts of income from discontinued operations attributable to Aimco and to noncontrolling interests for the three and six months ended June 30, 2011 and 2010 (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Rental and other property revenues	$	4,019		$	21,695		$	11,538		$	47,639
Property operating expenses		(2,169	)		(9,590	)		(6,288	)		(25,910	)
Depreciation and amortization		(1,647	)		(6,311	)		(4,065	)		(12,839	)
Provision for operating real estate impairment losses		(2,452	)		(895	)		(6,307	)		(8,121	)
Operating (loss) income		(2,249	)		4,899			(5,122	)		769
Interest income		262			101			314			183
Interest expense		(1,009	)		(3,881	)		(2,602	)		(8,308	)
(Loss) income before gain on dispositions of real estate and income tax		(2,996	)		1,119			(7,410	)		(7,356	)
Gain on dispositions of real estate		19,716			26,982			27,434			53,321
Income tax (expense) benefit		(251	)		(5	)		(421	)		1,063
Income from discontinued operations, net	$	16,469		$	28,096		$	19,603		$	47,028
(Income) loss from discontinued operations attributable to:
Noncontrolling interests in consolidated real estate partnerships	$	(7,196	)	$	(6,383	)	$	(5,943	)	$	(16,241	)
Noncontrolling interests in Aimco Operating Partnership		(653	)		(1,455	)		(945	)		(2,064	)
Total noncontrolling interests		(7,849	)		(7,838	)		(6,888	)		(18,305	)
Income from discontinued operations attributable to Aimco	$	8,620		$	20,258		$	12,715		$	28,723

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Subsequent Events (Details) (USD $) In Millions, except Share data, unless otherwise specified	1 Months Ended
	Jul. 31, 2011
Subsequent Events (Textuals) [Abstract]
Underwritten public offering net proceeds per share	$ 23.09
Public offering price reflected to the public	$ 24.25
Underwritten discount, commissions and estimated transaction costs	$ 1.16
Net proceeds from public offerings	$ 18.5
Class Z Cumulative Preferred Stock [Member]
Subsequent Event [Line Items]
Class Z Cumulative Preferred Stock issued	800,000
Interest rate of Class Z cumulative preferred stock	7.00%
Par value of Class Z Cumulative Preferred Stock issued	$ 0.01

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Basis of Presentation and Summary of Significant Accounting Policies (Details) (USD $) In Thousands	Jun. 30, 2011	Dec. 31, 2010
Notes Receivable
Allowance for loan losses	$ (883)	$ (905)
Total notes receivable	127,287	127,662
Face value of discounted notes	137,914	140,376
Unconsolidated Real Estate Partnerships [Member]
Notes Receivable
Allowance for loan losses	(883)	(905)
Total notes receivable	10,209	10,896
Face value of discounted notes	31,448	31,755
Unconsolidated Real Estate Partnerships [Member] | Par Value Notes [Member]
Notes Receivable
Notes Receivable	10,081	10,821
Unconsolidated Real Estate Partnerships [Member] | Discounted Notes [Member]
Notes Receivable
Notes Receivable	1,011	980
Non-Affiliates [Member]
Notes Receivable
Allowance for loan losses	0	0
Total notes receivable	117,078	116,726
Face value of discounted notes	106,466	108,621
Non-Affiliates [Member] | Par Value Notes [Member]
Notes Receivable
Notes Receivable	19,572	17,899
Non-Affiliates [Member] | Discounted Notes [Member]
Notes Receivable
Notes Receivable	97,506	98,827
Par Value Notes [Member]
Notes Receivable
Notes Receivable	29,653	28,720
Discounted Notes [Member]
Notes Receivable
Notes Receivable	$ 98,517	$ 99,807

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Condensed Consolidated Balance Sheets (Unaudited) (USD $) In Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2011	Dec. 31, 2010
ASSETS
Buildings and improvements	$ 6,993,515	$ 7,100,012
Land	2,107,082	2,108,349
Total real estate	9,100,597	9,208,361
Less accumulated depreciation	(2,837,896)	(2,821,935)
Net real estate ($817,297 and $846,081 related to VIEs)	6,262,701	6,386,426
Cash and cash equivalents ($35,430 and $34,808 related to VIEs)	85,324	111,325
Restricted cash ($50,373 and $55,076 related to VIEs)	196,426	200,503
Accounts receivable, net ($10,238 and $8,393 related to VIEs)	41,293	49,855
Accounts receivable from affiliates, net	5,179	8,392
Deferred financing costs, net	46,984	46,953
Notes receivable from unconsolidated real estate partnerships, net	10,209	10,896
Notes receivable from non-affiliates, net	117,078	116,726
Investment in unconsolidated real estate partnerships ($48,748 and $54,374 related to VIEs)	74,349	59,282
Other assets	239,797	180,596
Deferred income tax assets, net	61,919	58,736
Assets held for sale	23,713	148,876
Total assets	7,164,972	7,378,566
LIABILITIES AND EQUITY
Non-recourse property tax-exempt bond financing ($225,837 and $209,550 related to VIEs)	434,536	511,811
Non-recourse property loans payable ($417,669 and $428,417 related to VIEs)	4,872,614	4,833,938
Revolving credit facility borrowings	21,500	0
Other borrowings ($13,294 and $15,486 related to VIEs)	40,974	47,018
Total indebtedness	5,369,624	5,392,767
Accounts payable	25,988	27,322
Accrued liabilities and other ($66,162 and $79,170 related to VIEs)	228,396	250,103
Deferred income	147,082	150,577
Security deposits	34,982	34,308
Liabilities related to assets held for sale	24,177	113,289
Total liabilities	5,830,249	5,968,366
Preferred noncontrolling interests in Aimco Operating Partnership	83,387	83,428
Preferred stock subject to repurchase agreement	10,000	20,000
Commitments and contingencies (Note 5)
Equity:
Perpetual Preferred Stock	657,601	657,601
Class A Common Stock, $0.01 par value, 485,687,260 and 422,157,736 shares authorized, 120,477,521 and 117,642,872 shares issued and outstanding at June 30, 2011 and December 31, 2010, respectively	1,205	1,176
Additional paid-in capital	3,095,994	3,070,296
Accumulated other comprehensive loss	(1,147)	(2,076)
Distributions in excess of earnings	(2,774,353)	(2,680,955)
Total Aimco equity	979,300	1,046,042
Noncontrolling interests in consolidated real estate partnerships	289,865	291,458
Common noncontrolling interests in Aimco Operating Partnership	(27,829)	(30,728)
Total equity	1,241,336	1,306,772
Total liabilities and equity	$ 7,164,972	$ 7,378,566