-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PnOQGjKdBlotzJn2+XwEgrfRkZyhqfXLMH+Qay7dEEyisWBqfmx28tyOCcJlMTDB MeCbzoxt0R4bDPQGrmX93g== 0000950123-10-077951.txt : 20100816 0000950123-10-077951.hdr.sgml : 20100816 20100816153019 ACCESSION NUMBER: 0000950123-10-077951 CONFORMED SUBMISSION TYPE: 10-Q/A PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20100630 FILED AS OF DATE: 20100816 DATE AS OF CHANGE: 20100816 FILER: COMPANY DATA: COMPANY CONFORMED NAME: AIMCO PROPERTIES LP CENTRAL INDEX KEY: 0000926660 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF APARTMENT BUILDINGS [6513] IRS NUMBER: 841275621 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-24497 FILM NUMBER: 101019371 BUSINESS ADDRESS: STREET 1: 4582 S ULSTER ST PARKWAY STREET 2: SUITE 1100 CITY: DENVER STATE: CO ZIP: 80237 BUSINESS PHONE: 3037578101 MAIL ADDRESS: STREET 1: 4582 S ULSTER ST PARKWAY STREET 2: SUITE 1100 CITY: DENVER STATE: CO ZIP: 80237 10-Q/A 1 c04415e10vqza.htm FORM 10-Q AMENDMENT 1 Form 10-Q Amendment 1
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 10-Q/A
Amendment No. 1
(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, 2010
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 0-24497
 
AIMCO Properties, L.P.
(Exact name of registrant as specified in its charter)
     
Delaware   84-1275621
(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 o 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 o   Accelerated filer þ   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 Partnership Common Units outstanding as of July 28, 2010: 123,021,611
 
 

 

 


 

Explanatory Note

This Form 10-Q/A amends the Quarterly Report on Form 10-Q of AIMCO Properties, L.P. for the quarter ended June 30, 2010 filed on July 30, 2010 (the “Form 10-Q”) for the sole purpose of furnishing the Interactive Data File as Exhibit 101 in accordance with Rule 405(a)(2) of Regulation S-T.

No other changes have been made to the Form 10-Q. This Form 10-Q/A speaks as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the Form 10-Q.

Users of this data are advised that pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those Sections.

ITEM 6. Exhibits

The following exhibits are filed with this report:

EXHIBIT NO. (1)

     
10.1 *
  Ninth Amendment to Amended and Restated Senior Secured Credit Agreement, dated as of May 14, 2010, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., and AIMCO/Bethesda Holdings, Inc., as the borrowers, the guarantors and the pledgors named therein and the lenders party thereto (Exhibit 10.1 to Aimco’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010, is incorporated herein by this reference)
 
   
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.INS **
  XBRL Instance Document
 
   
101.SCH **
  XBRL Taxonomy Extension Schema Document
 
   
101.CAL **
  XBRL Taxonomy Extension Calculation Linkbase Document
 
   
101.LAB **
  XBRL Taxonomy Extension Labels Linkbase Document
 
   
101.PRE **
  XBRL Taxonomy Extension Presentation Linkbase Document
 
   
101.DEF **
  XBRL Taxonomy Extension Definition Linkbase Document

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

  *  
Previously filed or furnished with AIMCO Properties, L.P.’s Form 10-Q filed on July 30, 2010.

  **  
In accordance with Regulation S-T, the XBRL-formatted interactive data files that comprise Exhibit 101 to this Quarterly Report on Form 10-Q shall be deemed “furnished” and not “filed.”

 

1


 

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.
             
    AIMCO PROPERTIES, L.P.

   
    By: AIMCO-GP, Inc., its general partner    
 
           
 
  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: August 16, 2010

 

2


 

ITEM 6. Exhibits
Exhibit Index
         
EXHIBIT NO. (1)
     
10.1 *
  Ninth Amendment to Amended and Restated Senior Secured Credit Agreement, dated as of May 14, 2010, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., and AIMCO/Bethesda Holdings, Inc., as the borrowers, the guarantors and the pledgors named therein and the lenders party thereto (Exhibit 10.1 to Aimco’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2010, is incorporated herein by this reference)
 
   
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.INS **
  XBRL Instance Document
 
   
101.SCH **
  XBRL Taxonomy Extension Schema Document
 
   
101.CAL **
  XBRL Taxonomy Extension Calculation Linkbase Document
 
   
101.LAB **
  XBRL Taxonomy Extension Labels Linkbase Document
 
   
101.PRE **
  XBRL Taxonomy Extension Presentation Linkbase Document
 
   
101.DEF **
  XBRL Taxonomy Extension Definition Linkbase Document

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

  *  
Previously filed or furnished with AIMCO Properties, L.P.’s Form 10-Q filed on July 30, 2010.

  **  
In accordance with Regulation S-T, the XBRL-formatted interactive data files that comprise Exhibit 101 to this Quarterly Report on Form 10-Q shall be deemed “furnished” and not “filed.”

 

 

EX-101.INS 2 aimco-20100630.xml EX-101 INSTANCE DOCUMENT 0000926660 2009-01-01 2009-12-31 0000926660 2009-06-30 0000926660 2008-12-31 0000926660 2010-07-28 0000926660 2010-04-01 2010-06-30 0000926660 2009-04-01 2009-06-30 0000926660 2009-01-01 2009-06-30 0000926660 2010-06-30 0000926660 2009-12-31 0000926660 2010-01-01 2010-06-30 iso4217:USD xbrli:shares xbrli:shares iso4217:USD <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <!-- Begin Block Tagged Note 1 - us-gaap:NatureOfOperations--> <div align="left" style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <!-- xbrl,ns --> <!-- xbrl,nx --> <div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b> </div> <div align="left"> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b></div> <div align="center" style="font-size: 10pt"><b></b></div> <div align="center" style="font-size: 10pt"><b></b></div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 1 &#8212; Organization</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">AIMCO Properties, L.P., a Delaware limited partnership, or the Partnership, and together with its consolidated subsidiaries was formed on May&#160;16, 1994 to conduct the business of acquiring, redeveloping, leasing, and managing multifamily apartment properties. Our securities include Partnership Common Units, or common OP Units, Partnership Preferred Units, or preferred OP Units, and High Performance Partnership Units, or High Performance Units, which are collectively referred to as &#8220;OP Units.&#8221; Apartment Investment and Management Company, or Aimco, is the owner of our general partner, AIMCO-GP, Inc., or the General Partner, and special limited partner, AIMCO-LP Trust, or the Special Limited Partner. The General Partner and Special Limited Partner hold common OP Units and are the primary holders of outstanding preferred OP Units. &#8220;Limited Partners&#8221; refers to individuals or entities that are our limited partners, other than Aimco, the General Partner or the Special Limited Partner, and own common OP Units or preferred OP Units. Generally, after holding the common OP Units for one year, the Limited Partners have the right to redeem their common OP Units for cash, subject to our prior right to cause Aimco to acquire some or all of the common OP Units tendered for redemption in exchange for shares of Aimco Class&#160;A Common Stock. Common OP Units redeemed for Aimco Class&#160;A Common Stock are generally exchanged on a one-for-one basis (subject to antidilution adjustments). Preferred OP Units and High Performance Units may or may not be redeemable based on their respective terms, as provided for in the Fourth Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., as amended, or the Partnership Agreement. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We, through our operating divisions and subsidiaries, hold substantially all of Aimco&#8217;s assets and manage the daily operations of Aimco&#8217;s business and assets. Aimco is required to contribute all proceeds from offerings of its securities to us. In addition, substantially all of Aimco&#8217;s assets must be owned through the Partnership; therefore, Aimco is generally required to contribute all assets acquired to us. In exchange for the contribution of offering proceeds or assets, Aimco receives additional interests in us with similar terms (e.g., if Aimco contributes proceeds of a preferred stock offering, Aimco (through the General Partner and Special Limited Partner) receives preferred OP Units with terms substantially similar to the preferred securities issued by Aimco). </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Aimco frequently consummates transactions for our benefit. For legal, tax or other business reasons, Aimco may hold title or ownership of certain assets until they can be transferred to us. However, we have a controlling financial interest in substantially all of Aimco&#8217;s assets in the process of transfer to us. Except as the context otherwise requires, &#8220;we,&#8221; &#8220;our&#8221; and &#8220;us&#8221; refer to the Partnership, and the Partnership&#8217;s consolidated entities, collectively. Except as the context otherwise requires, &#8220;Aimco&#8221; refers to Aimco and Aimco&#8217;s consolidated entities, collectively. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We are focused on the ownership and management of quality apartment communities located in the 20 largest markets in the United States (as measured by total market capitalization, which is the total market value of institutional-grade apartment properties in a particular market). We upgrade the quality of our portfolio through the sale of communities with rents below average market rents and the reinvestment of capital within these 20 target markets through redevelopment and acquisitions. Our apartment properties are generally financed with property-level, non-recourse, long-dated, fixed-rate, amortizing debt. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">As of June&#160;30, 2010, we: </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="4%" style="background: transparent">&#160;</td> <td width="3%" nowrap="nowrap" align="left"><b>&#8226;</b></td> <td width="1%">&#160;</td> <td> <div style="text-align: justify">owned an equity interest in 232 conventional real estate properties with 71,909 units; </div></td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="4%" style="background: transparent">&#160;</td> <td width="3%" nowrap="nowrap" align="left"><b>&#8226;</b></td> <td width="1%">&#160;</td> <td> <div style="text-align: justify">owned an equity interest in 254 affordable real estate properties with 29,540 units; and </div></td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="4%" style="background: transparent">&#160;</td> <td width="3%" nowrap="nowrap" align="left"><b>&#8226;</b></td> <td width="1%">&#160;</td> <td> <div style="text-align: justify">provided services for or managed 27,901 units in 331 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. </div></td> </tr> </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Of these properties, we consolidated 230 conventional properties with 70,605 units and 197 affordable properties with 23,901 units. These conventional and affordable properties generated 84% and 16%, respectively, of consolidated property net operating income (as defined in Note&#160;7) during the six months ended June&#160;30, 2010, or 87% and 13%, respectively, after adjustments for our ownership in these properties. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">At June&#160;30, 2010, after elimination of units held by consolidated subsidiaries, we had outstanding 123,030,243 common OP Units, 28,076,133 preferred OP Units and 2,339,950 High Performance Units. At June&#160;30, 2010, Aimco owned 117,039,659 of the common OP Units and 24,940,114 of the preferred OP Units. </div> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <!-- Begin Block Tagged Note 2 - us-gaap:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock--> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 2 &#8212; Basis of Presentation</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article&#160;10 of Regulation&#160;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&#160;30, 2010, are not necessarily indicative of the results that may be expected for the year ending December&#160;31, 2010. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The balance sheet at December&#160;31, 2009, 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&#160;31, 2009. Certain 2009 financial statement amounts have been reclassified to conform to the 2010 presentation, including adjustments for discontinued operations, and certain 2009 unit and per unit information has been revised as compared to the amounts reported in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009, as further discussed in Note 6. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">During the three months ended March&#160;31, 2010, we reduced the investment and noncontrolling interest balances for certain of our consolidated partnerships by $38.7&#160;million related to excess amounts allocated to the investments upon our consolidation of such partnerships. Additionally, during the six months ended June&#160;30, 2010, we reversed approximately $11.2&#160;million of excess equity in losses recognized during 2008 and 2009 related to these partnerships, with a corresponding adjustment to net income attributed to noncontrolling interests in consolidated real estate partnerships. These adjustments had no significant effect on partners&#8217; capital attributed to the Partnership or net income or loss attributable to the Partnership during the affected periods. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Principles of Consolidation</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The accompanying condensed consolidated financial statements include the accounts of the Partnership and its consolidated entities. Pursuant to a Management and Contribution Agreement between the Partnership and Aimco, we have acquired, in exchange for interests in the Partnership, the economic benefits of subsidiaries of Aimco in which we do not have an interest, and Aimco has granted us a right of first refusal to acquire such subsidiaries&#8217; assets for no additional consideration. Pursuant to the agreement, Aimco has also granted us certain rights with respect to assets of such subsidiaries. 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. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Interests in consolidated real estate partnerships 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 Aimco or us generally are not available to pay creditors of Aimco or the Partnership. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As used herein, and except where the context otherwise requires, &#8220;partnership&#8221; refers to a limited partnership or a limited liability company and &#8220;partner&#8221; refers to a partner in a limited partnership or a member in a limited liability company. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Variable Interest Entities</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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)&#160;the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b)&#160;as a group, the holders of the equity investment at risk lack (i)&#160;the ability to make decisions about an entity&#8217;s activities through voting or similar rights, (ii)&#160;the obligation to absorb the expected losses of the entity, or (iii)&#160;the right to receive the expected residual returns of the entity; or (c)&#160;the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity&#8217;s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. </div> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Effective January&#160;1, 2010, we adopted the provisions of FASB Accounting Standards Update 2009-17, <i>Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities, </i>or ASU 2009-17, on a prospective basis. ASU 2009-17, which modified the guidance in FASB ASC Topic 810, introduces a more qualitative approach to evaluating VIEs for consolidation and requires a company to perform an analysis to determine whether its variable interests give it a controlling financial interest in a VIE. This analysis identifies the primary beneficiary of a VIE as the entity that has (a)&#160;the power to direct the activities of the VIE that most significantly impact the VIE&#8217;s economic performance, and (b)&#160;the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In determining whether it has the power to direct the activities of the VIE that most significantly affect the VIE&#8217;s performance, ASU 2009-17 requires a company to assess whether it has an implicit financial responsibility to ensure that a VIE operates as designed, requires continuous reassessment of primary beneficiary status rather than periodic, event-driven assessments as previously required, and incorporates expanded disclosure requirements. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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 VIEs 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. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As a result of our adoption of ASU 2009-17, we concluded we are the primary beneficiary of, and therefore consolidated, approximately 49 previously unconsolidated partnerships. Those partnerships own, or control other entities that own, 31 apartment properties. Our direct and indirect interests in the profits and losses of those partnerships range from less than 1% to 35%, and average approximately 7%. We applied the practicability exception for initial measurement of consolidated VIEs to partnerships that own 13 properties and accordingly recognized the consolidated assets, liabilities and noncontrolling interests at fair value effective January&#160;1, 2010 (refer to the Fair Value Measurements section for further information regarding certain of the fair value amounts recognized upon consolidation). We deconsolidated partnerships that own ten apartment properties in which we hold an average interest of approximately 55%. The initial consolidation and deconsolidation of these partnerships resulted in increases (decreases), net of intercompany eliminations, in amounts included in our consolidated balance sheet as of January&#160;1, 2010, as follows (in thousands): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom"> <td width="62%">&#160;</td> <td width="3%">&#160;</td> <td width="1%">&#160;</td> <td width="11%">&#160;</td> <td width="1%">&#160;</td> <td width="3%">&#160;</td> <td width="1%">&#160;</td> <td width="11%">&#160;</td> <td width="1%">&#160;</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td>&#160;</td> <td>&#160;</td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Consolidation</b></td> <td>&#160;</td> <td>&#160;</td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Deconsolidation</b></td> <td>&#160;</td> </tr> <!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; 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Also prior to 2009, we allocated the noncontrolling partners&#8217; share of partnership losses to noncontrolling partners to the extent of the carrying amount of the noncontrolling interest. Consolidation of a partnership does not ordinarily result in a change to the net amount of partnership income or loss that is recognized using the equity method. However, prior to 2009, when a partnership had a deficit in equity, GAAP may have required the controlling partner that consolidates the partnership to recognize any losses that would otherwise be allocated to noncontrolling partners, in addition to the controlling partner&#8217;s share of losses. Certain of the partnerships that we consolidated in accordance with ASU 2009-17 had deficits in equity that resulted from losses or deficit distributions during prior periods when we accounted for our investment using the equity method. We would have been required to recognize the noncontrolling partners&#8217; share of those losses had we consolidated those partnerships in those periods prior to 2009. In accordance with our prospective transition method for the adoption of ASU 2009-17 related to our consolidation of previously unconsolidated partnerships, we recorded a $37.2&#160;million charge to our partners&#8217; capital, the majority of which was attributed to the cumulative amount of additional losses that we would have recognized had we applied ASU 2009-17 in periods prior to 2009. Substantially all of those losses were attributable to real estate depreciation expense. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Our consolidated statements of operations for the three and six months ended June&#160;30, 2010, include the following amounts for the entities and related real estate properties consolidated as of January&#160;1, 2010, in accordance with ASU 2009-17 (in thousands): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom"> <td width="66%">&#160;</td> <td width="3%">&#160;</td> <td width="1%">&#160;</td> <td width="9%">&#160;</td> <td width="1%">&#160;</td> <td width="3%">&#160;</td> <td width="1%">&#160;</td> <td width="9%">&#160;</td> <td width="1%">&#160;</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td>&#160;</td> <td>&#160;</td> <td nowrap="nowrap" align="center" colspan="2"><b>Three Months</b></td> <td>&#160;</td> <td>&#160;</td> <td nowrap="nowrap" align="center" colspan="2"><b>Six Months</b></td> <td>&#160;</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td>&#160;</td> <td>&#160;</td> <td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td> <td>&#160;</td> <td>&#160;</td> <td nowrap="nowrap" align="center" colspan="2"><b>Ended</b></td> <td>&#160;</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td>&#160;</td> <td>&#160;</td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2010</b></td> <td>&#160;</td> <td>&#160;</td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>June 30, 2010</b></td> <td>&#160;</td> </tr> <!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; 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margin-top: 10pt; text-indent: 4%">Our equity in the results of operations of the partnerships and related properties we deconsolidated in connection with our adoption of ASU 2009-17 is included in equity in earnings or losses of unconsolidated real estate partnerships in our consolidated statements of operations for the three and six months ended June&#160;30, 2010. Based on our effective ownership in these entities, these amounts are not significant. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As of June&#160;30, 2010, we were the primary beneficiary of, and therefore consolidated, approximately 143 VIEs, which owned 102 apartment properties with 14,846 units. Real estate with a carrying value of $913.1&#160;million collateralized $677.6&#160;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. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As of June&#160;30, 2010, we also held variable interests in 290 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 343 apartment properties with 21,572 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 $92.5&#160;million at June&#160;30, 2010, is held through consolidated tax credit funds 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 is attributed to the noncontrolling interests in the consolidated tax credit funds 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 tax credit funds, which is insignificant. The remainder of our investment in unconsolidated VIEs, or approximately $17.0 million at June&#160;30, 2010, 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 $17.0&#160;million recorded investment in such entities. </div> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In addition to our investments in these unconsolidated VIEs discussed above, at June&#160;30, 2010, we had in aggregate $101.3&#160;million of receivables from these VIEs and we had a contractual obligation to advance funds to certain VIEs totaling $4.1&#160;million. Our maximum risk of loss associated with our lending and management activities related to these unconsolidated VIEs is limited to these amounts. 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margin-top: 10pt"><b><i>Derivative Financial Instruments</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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 or cap agreements. The interest rate swap agreements moderate our exposure to interest rate risk by effectively converting the interest on variable rate debt to a fixed rate. The interest rate cap agreements effectively limit our exposure to interest rate risk by providing a ceiling on the underlying variable interest 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 partners&#8217; capital, as appropriate. The interest rate caps are not material to our financial position or results of operations. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">At June&#160;30, 2010 and December&#160;31, 2009, we had interest rate swaps with aggregate notional amounts of $52.3&#160;million, and recorded fair values of $3.6&#160;million and $1.6&#160;million, respectively, reflected in accrued liabilities and other in our condensed consolidated balance sheets. At June 30, 2010, these interest rate swaps had a weighted average term of 10.6&#160;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 income within partners&#8217; capital to the extent of their effectiveness. For the six months ended June&#160;30, 2010 and 2009, we recognized changes in fair value of $2.0&#160;million and $1.7&#160;million, respectively, of which $2.0&#160;million and $2.2&#160;million, respectively, resulted in an adjustment to consolidated partners&#8217; capital. We recognized less than $0.1&#160;million and $0.5&#160;million of ineffectiveness as an adjustment of interest expense during the six months ended June&#160;30, 2010 and 2009, respectively. Our consolidated comprehensive loss for the three and six months ended June&#160;30, 2010, totaled $11.8&#160;million and $28.5&#160;million, respectively, and consolidated comprehensive loss for the three and six months ended June&#160;30, 2009, totaled $5.6 million and $37.6&#160;million, respectively, before the effects of noncontrolling interests. If the forward rates at June&#160;30, 2010 remain constant, we estimate that during the next twelve months, we would reclassify into earnings approximately $1.5&#160;million of the unrealized losses in accumulated other comprehensive income. </div> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We have entered into total rate of return swaps on various fixed-rate secured tax-exempt bonds payable and fixed-rate notes payable 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&#8217;s interest rate, the total rate of return swaps require that we pay a variable rate, equivalent to the Securities Industry and Financial Markets Association Municipal Swap Index, or SIFMA, rate for tax-exempt bonds payable and the 30-day LIBOR rate for notes payable, plus a risk spread. These swaps generally have a second or third lien on the property collateralized by the related borrowings and the obligations under certain of these swaps are cross-collateralized with certain of the other swaps with a particular counterparty. The underlying borrowings are generally callable at our option, with no prepayment penalty, with 30&#160;days advance notice, and the swaps generally have a term of less than five years. The total rate of return swaps have a contractually defined termination value generally equal to the difference between the fair value and the counterparty&#8217;s purchased value of the underlying borrowings, which may require payment by us or to us for such difference. Accordingly, we believe fluctuations in the fair value of the borrowings from the inception of the hedging relationship generally will be offset by a corresponding fluctuation in the fair value of the total rate of return swaps. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As of June&#160;30, 2010 and December&#160;31, 2009, we had borrowings payable subject to total rate of return swaps with aggregate outstanding principal balances of $307.7&#160;million and $352.7&#160;million. At June&#160;30, 2010, the weighted average fixed receive rate under the total return swaps was 6.8% and the weighted average variable pay rate was 1.0%, based on the applicable SIFMA and 30-day LIBOR rates effective as of that date. Information related to the fair value of these instruments at June&#160;30, 2010 and December&#160;31, 2009, is discussed further below. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Fair Value Measurements</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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. 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For the partnerships we consolidated at fair value due to reconsideration events during the six months ended June&#160;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 consolidated statement of operations for the six months ended June&#160;30, 2010. </div></td> </tr> <tr style="font-size: 3pt"> <td>&#160;</td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(3)</td> <td>&#160;</td> <td> <div style="text-align: justify">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. </div></td> </tr> <tr style="font-size: 3pt"> <td>&#160;</td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(4)</td> <td>&#160;</td> <td> <div style="text-align: justify">Refer to the recurring fair value measurements table for an explanation of the valuation techniques we use to estimate the fair value of debt. </div></td> </tr> </table> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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&#160;30, 2010 and December&#160;31, 2009, 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 $128.7&#160;million and $126.1&#160;million at June&#160;30, 2010 and December&#160;31, 2009, respectively, as compared to their carrying amounts of $141.7 million and $139.6&#160;million. The estimated aggregate fair value of our consolidated debt (including amounts reported in liabilities related to assets held for sale) was approximately $5.9&#160;billion and $5.7&#160;billion at June&#160;30, 2010 and December&#160;31, 2009, respectively, as compared to aggregate carrying amounts of $5.6&#160;billion. The fair values of our derivative instruments at June&#160;30, 2010 and December&#160;31, 2009, are included in the table presented above. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Concentration of Credit Risk</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Financial instruments that potentially could subject us to significant concentrations of credit risk consist principally of notes receivable and total rate of return swaps. Approximately $88.4&#160;million of our notes receivable at June&#160;30, 2010, are collateralized by 84 buildings with 1,596 residential units in the West Harlem area of New York City. There are no other significant concentrations of credit risk with respect to our notes receivable due to the large number of partnerships that are borrowers under the notes and the geographic diversification of the properties that serve as the primary source of repayment of the notes. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">At June&#160;30, 2010, we had total rate of return swap positions with two financial institutions totaling $308.0&#160;million. We periodically evaluate counterparty credit risk associated with these arrangements. At the current time, we have concluded we do not have material exposure. 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. Additionally, the swap agreements with a specific counterparty provide for collateral calls to maintain specified loan-to-value ratios. As of June&#160;30, 2010, we were not required to provide cash collateral pursuant to the total rate of return swaps. In the event the values of the real estate properties serving as collateral under these agreements decline, we may be required to provide additional collateral pursuant to the swap agreements, which may adversely affect our cash flows. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Income Taxes</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In March&#160;2008, we were notified by the Internal Revenue Service, or the IRS, that it intended to examine our 2006 Federal tax return. During June&#160;2008, the IRS issued AIMCO-GP, Inc., our general partner and tax matters partner, a summary report including the IRS&#8217;s proposed adjustments to our 2006 Federal tax return. In addition, in May&#160;2009, we were notified by the IRS that it intended to examine our 2007 Federal tax return. During November&#160;2009, the IRS issued AIMCO-GP, Inc. a summary report including the IRS&#8217;s proposed adjustments to our 2007 Federal tax return. 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. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Use of Estimates</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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. </div> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <!-- Begin Block Tagged Note 3 - us-gaap:DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock--> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 3 &#8212; Real Estate Dispositions</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Real Estate Dispositions (Discontinued Operations)</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We are currently marketing for sale certain real estate properties that are inconsistent with our long-term investment strategy. 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These gains were primarily related to investments held by partnerships we consolidated in accordance with our adoption of ASU 2009-17 (see Note 2) and in which we generally hold a nominal general partner interest. Accordingly, these gains were primarily attributed to noncontrolling interests in consolidated real estate partnerships. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">During the three months ended June&#160;30, 2009, we recognized $3.5&#160;million of gains on the disposition of unconsolidated real estate and other, $3.2&#160;million of which related to our disposition of an interest in an unconsolidated real estate partnership. During the six months ended June&#160;30, 2009, we recognized $14.3&#160;million of gains on the disposition of unconsolidated real estate and other. These gains consisted of $8.6&#160;million resulting from our receipt in 2009 of additional proceeds related to our disposition during 2008 of an interest in an unconsolidated real estate partnership, $3.2&#160;million related to our disposition of an interest in an unconsolidated real estate partnership, and approximately $2.5&#160;million of other gains related to dispositions of interests in unconsolidated real estate partnerships or our equity in gains recognized by unconsolidated real estate partnerships. </div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <!-- Begin Block Tagged Note 4 - aimco:OtherSignificantTransactionsTextBlock--> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 4 &#8212; Other Significant Transactions</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Restructuring Costs</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">During 2009, in connection with the repositioning of our portfolio, we completed organizational restructuring activities that included reductions in workforce and related costs and the abandonment of additional leased corporate facilities and redevelopment projects. During the six months ended June&#160;30, 2010, we reduced our restructuring accruals by $1.2&#160;million and $4.7 million related to payments on unrecoverable lease obligations and severance and personnel related costs, respectively. 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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. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We have committed to fund an additional $4.1&#160;million in loans on certain properties in West Harlem in New York City. In certain circumstances, the obligor under these notes has the ability to put properties to us, which would result in a cash payment between $30.0&#160;million and $97.5 million and the assumption of approximately $119.0&#160;million in property debt. The ability to exercise the put and the amount of cash payment required upon exercise is dependent upon the achievement of specified thresholds by the current owner of the properties. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In June&#160;2009, Aimco entered into an agreement that allows the holder of its Series&#160;A Community Reinvestment Act Preferred Stock, or CRA Preferred Stock, to require Aimco to repurchase a portion of the CRA Preferred Stock at a 30% discount to the liquidation preference. In accordance with this repurchase agreement, in May&#160;2010, Aimco repurchased 20 shares, or $10.0&#160;million in liquidation preference, of CRA Preferred Stock for $7.0&#160;million. Concurrent with this redemption, we repurchased from Aimco an equivalent number of our Series&#160;A Community Reinvestment Act Perpetual Preferred Units, or CRA Preferred Units. 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Based on the holder&#8217;s ability to require Aimco to repurchase these amounts and our obligation to purchase from Aimco a corresponding number of our CRA Preferred Units, the $20.0&#160;million in liquidation preference of CRA Preferred Units, or the maximum redemption value of such preferred units, is classified within temporary capital in our consolidated balance sheet at June&#160;30, 2010. </div> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Tax Credit Arrangements</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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&#160;years. We do not anticipate that any material refunds or reductions of investor capital contributions will be required in connection with these arrangements. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Legal Matters</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><b>Limited Partnerships</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><b>Environmental</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Various Federal, state and local laws subject property owners or operators to liability for management, and the costs of removal or remediation, of certain hazardous substances present on a property, including lead-based paint. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release or presence of the hazardous substances. The presence of, or the failure to manage or remedy properly, hazardous substances 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 presence of hazardous substances 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 hazardous substances through a licensed disposal or treatment facility. Anyone who arranges for the disposal or treatment of hazardous substances 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 facility. 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We have implemented policies, procedures, third-party audits and training, and include a detailed moisture intrusion and mold assessment during acquisition due diligence. We believe these measures will prevent or eliminate mold exposure from our properties and will minimize the effects that mold may have on our residents. To date, we have not incurred any material costs or liabilities relating to claims of mold exposure or to abate mold conditions. Because the law regarding mold is unsettled and subject to change, we can make no assurance that liabilities resulting from the presence of or exposure to mold will not have a material adverse effect on our consolidated financial condition, results of operations or cash flows. </div> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <!-- Begin Block Tagged Note 6 - us-gaap:EarningsPerShareTextBlock--> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 6 &#8212; Earnings (Loss) per Unit</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We calculate earnings (loss)&#160;per unit based on the weighted average number of common OP Units, participating securities, common OP unit equivalents and dilutive convertible securities outstanding during the period. 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These securities, representing options to purchase shares of Aimco Class&#160;A Common Stock, have been excluded from the earnings (loss)&#160;per unit computations for the three and six months ended June&#160;30, 2010 and 2009, because their effect would have been anti-dilutive. Participating securities, consisting of unvested restricted shares of Aimco Class&#160;A Common Stock and shares of Aimco Class&#160;A Common Stock purchased pursuant to officer loans, receive dividends similar to shares of Aimco Class&#160;A Common Stock and common OP Units and totaled 0.6 million and 0.9&#160;million at June&#160;30, 2010 and 2009, respectively. The effect of participating securities is reflected in basic and diluted earnings (loss)&#160;per unit computations for the periods presented above using the two-class method of allocating distributed and undistributed earnings. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Various classes of redeemable preferred OP Units 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 our option, shares of Aimco Class&#160;A Common Stock, and are paid distributions varying from 1.84% to 9.5% per annum per unit, or equal to the dividends paid on Aimco Class&#160;A Common Stock based on the conversion terms. As of June&#160;30, 2010, a total of 3.1&#160;million preferred OP Units were outstanding with redemption values of $85.4&#160;million and were potentially redeemable for approximately 4.4&#160;million shares of Aimco Class&#160;A Common Stock (based on the period end market price), or cash at our option. We have 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; however, based on our cash redemption policy, they may also be excluded from future earnings (loss)&#160;per unit computations in periods during which their effect is dilutive. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In December&#160;2009, we adopted the provisions of FASB Accounting Standards Update 2010-01, <i>Accounting for Distributions to Shareholders with Components of Stock and Cash</i>, or ASU 2010-01, which are codified in FASB ASC Topic 505. ASU 2010-01 requires that for distributions with components of cash and stock, the portion distributed in stock should be accounted for prospectively as a stock issuance with no retroactive adjustment to basic and diluted earnings per share. In accordance with ASU 2010-01, we retrospectively revised the accounting treatment of our special distribution paid in January&#160;2009, resulting in a 2.4&#160;million reduction in the number of weighted average units outstanding and a $0.02 increase in the loss per unit attributed to the Partnership&#8217;s common unitholders for the six months ended June&#160;30, 2009, as compared to the amounts reported in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009. </div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <!-- Begin Block Tagged Note 7 - us-gaap:SegmentReportingDisclosureTextBlock--> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 7 &#8212; Business Segments</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Based on a planned reduction in our transactional activities, during the three months ended March&#160;31, 2010, we reevaluated our reportable segments and determined our investment management reporting unit no longer meets the requirements for a reportable segment. Additionally, to provide more meaningful information regarding our real estate operations, we elected to disaggregate information for the prior real estate segment. Following these changes, 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 include 232 properties with 71,909 units. 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We consider both common OP Units and High Performance Units, which have identical rights to distributions and undistributed earnings, to be common units for purposes of the earnings (loss)&#160;per unit data presented below. 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text-indent:-15px"><b>Numerator:</b> </div></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Loss from continuing operations </div></td> <td>&#160;</td> <td nowrap="nowrap" align="left">$</td> <td align="right">(36,119</td> <td nowrap="nowrap">)</td> <td>&#160;</td> <td nowrap="nowrap" align="left">$</td> <td align="right">(43,700</td> <td nowrap="nowrap">)</td> <td>&#160;</td> <td nowrap="nowrap" align="left">$</td> <td align="right">(73,870</td> <td nowrap="nowrap">)</td> <td>&#160;</td> <td nowrap="nowrap" align="left">$</td> <td align="right">(79,232</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; 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These securities, representing options to purchase shares of Aimco Class&#160;A Common Stock, have been excluded from the earnings (loss)&#160;per unit computations for the three and six months ended June&#160;30, 2010 and 2009, because their effect would have been anti-dilutive. Participating securities, consisting of unvested restricted shares of Aimco Class&#160;A Common Stock and shares of Aimco Class&#160;A Common Stock purchased pursuant to officer loans, receive dividends similar to shares of Aimco Class&#160;A Common Stock and common OP Units and totaled 0.6 million and 0.9&#160;million at June&#160;30, 2010 and 2009, respectively. The effect of participating securities is reflected in basic and diluted earnings (loss)&#160;per unit computations for the periods presented above using the two-class method of allocating distributed and undistributed earnings. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Various classes of redeemable preferred OP Units 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 our option, shares of Aimco Class&#160;A Common Stock, and are paid distributions varying from 1.84% to 9.5% per annum per unit, or equal to the dividends paid on Aimco Class&#160;A Common Stock based on the conversion terms. As of June&#160;30, 2010, a total of 3.1&#160;million preferred OP Units were outstanding with redemption values of $85.4&#160;million and were potentially redeemable for approximately 4.4&#160;million shares of Aimco Class&#160;A Common Stock (based on the period end market price), or cash at our option. We have 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; however, based on our cash redemption policy, they may also be excluded from future earnings (loss)&#160;per unit computations in periods during which their effect is dilutive. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In December&#160;2009, we adopted the provisions of FASB Accounting Standards Update 2010-01, <i>Accounting for Distributions to Shareholders with Components of Stock and Cash</i>, or ASU 2010-01, which are codified in FASB ASC Topic 505. ASU 2010-01 requires that for distributions with components of cash and stock, the portion distributed in stock should be accounted for prospectively as a stock issuance with no retroactive adjustment to basic and diluted earnings per share. In accordance with ASU 2010-01, we retrospectively revised the accounting treatment of our special distribution paid in January&#160;2009, resulting in a 2.4&#160;million reduction in the number of weighted average units outstanding and a $0.02 increase in the loss per unit attributed to the Partnership&#8217;s common unitholders for the six months ended June&#160;30, 2009, as compared to the amounts reported in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009. </div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <!-- Begin Block Tagged Note false false false us-types:textBlockItemType textblock This element may be used to capture the complete disclosure pertaining to an entity's earnings per share. 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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. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We have committed to fund an additional $4.1&#160;million in loans on certain properties in West Harlem in New York City. In certain circumstances, the obligor under these notes has the ability to put properties to us, which would result in a cash payment between $30.0&#160;million and $97.5 million and the assumption of approximately $119.0&#160;million in property debt. The ability to exercise the put and the amount of cash payment required upon exercise is dependent upon the achievement of specified thresholds by the current owner of the properties. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In June&#160;2009, Aimco entered into an agreement that allows the holder of its Series&#160;A Community Reinvestment Act Preferred Stock, or CRA Preferred Stock, to require Aimco to repurchase a portion of the CRA Preferred Stock at a 30% discount to the liquidation preference. In accordance with this repurchase agreement, in May&#160;2010, Aimco repurchased 20 shares, or $10.0&#160;million in liquidation preference, of CRA Preferred Stock for $7.0&#160;million. Concurrent with this redemption, we repurchased from Aimco an equivalent number of our Series&#160;A Community Reinvestment Act Perpetual Preferred Units, or CRA Preferred Units. We reflected the $3.0&#160;million excess of the carrying value over the repurchase price, offset by $0.2&#160;million of issuance costs previously recorded as a reduction of partners&#8217; capital, as a reduction of net income attributable to preferred unitholders for the three and six months ended June&#160;30, 2010. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As of June&#160;30, 2010, Aimco had a remaining potential obligation under this agreement to repurchase up to $20.0&#160;million in liquidation preference of its CRA Preferred Stock. If required, these additional repurchases will be for up to $10.0&#160;million in liquidation preference in May&#160;2011 and 2012. Upon any repurchases required of Aimco under this agreement, we will repurchase from Aimco an equivalent number of our CRA Preferred Units. Based on the holder&#8217;s ability to require Aimco to repurchase these amounts and our obligation to purchase from Aimco a corresponding number of our CRA Preferred Units, the $20.0&#160;million in liquidation preference of CRA Preferred Units, or the maximum redemption value of such preferred units, is classified within temporary capital in our consolidated balance sheet at June&#160;30, 2010. </div> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Tax Credit Arrangements</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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&#160;years. We do not anticipate that any material refunds or reductions of investor capital contributions will be required in connection with these arrangements. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Legal Matters</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><b>Limited Partnerships</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><b>Environmental</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Various Federal, state and local laws subject property owners or operators to liability for management, and the costs of removal or remediation, of certain hazardous substances present on a property, including lead-based paint. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release or presence of the hazardous substances. The presence of, or the failure to manage or remedy properly, hazardous substances 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 presence of hazardous substances 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 hazardous substances through a licensed disposal or treatment facility. Anyone who arranges for the disposal or treatment of hazardous substances 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 facility. In connection with the ownership, operation and management of properties, we could potentially be liable for environmental liabilities or costs associated with our properties or properties we acquire or manage in the future. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We have determined that our legal obligations to remove or remediate hazardous substances 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&#160;30, 2010, are immaterial to our consolidated financial condition, results of operations and cash flows. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><b>Mold</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Aimco has been named as a defendant in lawsuits that have alleged personal injury and property damage as a result of the presence of mold. In addition, we are aware of lawsuits against owners and managers of multifamily properties asserting claims of personal injury and property damage caused by the presence of mold, some of which have resulted in substantial monetary judgments or settlements. We have only limited insurance coverage for property damage loss claims arising from the presence of mold and for personal injury claims related to mold exposure. We have implemented policies, procedures, third-party audits and training, and include a detailed moisture intrusion and mold assessment during acquisition due diligence. We believe these measures will prevent or eliminate mold exposure from our properties and will minimize the effects that mold may have on our residents. To date, we have not incurred any material costs or liabilities relating to claims of mold exposure or to abate mold conditions. Because the law regarding mold is unsettled and subject to change, we can make no assurance that liabilities resulting from the presence of or exposure to mold will not have a material adverse effect on our consolidated financial condition, results of operations or cash flows. </div> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <!-- Begin Block Tagged Note false false false us-types:textBlockItemType textblock Includes disclosure of commitments and contingencies. This element may be used as a single block of text to encapsulate the entire disclosure including data and tables. 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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&#160;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&#160;months; thus, the number of properties that may be sold during the subsequent 12&#160;months could exceed the number classified as held for sale. At June&#160;30, 2010 and December&#160;31, 2009, we had one and 24 properties, with an aggregate of 198 and 3,745 units, respectively, classified as held for sale. 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Such prepayment penalties totaled $2.6 million and $3.2&#160;million for the three and six months ended June&#160;30, 2010, respectively, and $11.6 million and $11.7&#160;million for the three and six months ended June&#160;30, 2009, 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. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In connection with properties sold or classified as held for sale during the three and six months ended June&#160;30, 2010, we allocated $1.5&#160;million and $2.8&#160;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&#160;million and $2.6&#160;million, respectively, were treated as a reduction of gain on dispositions of real estate and $0.1&#160;million and $0.2 million, respectively, were treated as an adjustment of impairment losses during the three and six months ended June&#160;30, 2010. In connection with properties sold or classified as held for sale during the three and six months ended June&#160;30, 2009, $3.0 million of goodwill was reflected as a reduction of gain on dispositions of real estate. 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. </div> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Gain on Dispositions of Unconsolidated Real Estate and Other</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">During the three and six months ended June&#160;30, 2010, we recognized $5.0&#160;million and $7.6 million, respectively, of gains on the disposition of interests in unconsolidated real estate partnerships and other. These gains were primarily related to investments held by partnerships we consolidated in accordance with our adoption of ASU 2009-17 (see Note 2) and in which we generally hold a nominal general partner interest. Accordingly, these gains were primarily attributed to noncontrolling interests in consolidated real estate partnerships. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">During the three months ended June&#160;30, 2009, we recognized $3.5&#160;million of gains on the disposition of unconsolidated real estate and other, $3.2&#160;million of which related to our disposition of an interest in an unconsolidated real estate partnership. During the six months ended June&#160;30, 2009, we recognized $14.3&#160;million of gains on the disposition of unconsolidated real estate and other. 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Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 19 -Subparagraph c Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 11 -Article 7 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 9 -Article 5 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 18 -Paragraph 6 -Subparagraph b false 20 1 us-gaap_GainLossOnSaleOfOtherAssets us-gaap true credit duration No definition available. false false false false false false false false false false false totallabel false 1 false true false false 4970000 4970 false false false 2 false true false false 3463000 3463 false false false 3 false true false false 7612000 7612 false false false 4 false true false false 14327000 14327 false false false xbrli:monetaryItemType monetary The difference between the sale price or salvage price and the book value of an asset that was sold or retired during the reporting period. This element refers to the gain (loss) and not to the cash proceeds of the sale. This element is a noncash adjustment to net income when calculating net cash generated by operating activities using the indirect method. There is also a more specific element for realized gain (loss) on the sale of property, plant, and equipment. 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Includes the following (net of tax): income (loss) from operations during the phase-out period, gain (loss) on disposal, provision (or any reversals of earlier provisions) for loss on disposal, and adjustments of a prior period gain (loss) on disposal. 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If the entity does not present consolidated financial statements, the amount of profit or loss for the period, net of income taxes. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 19 -Article 5 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph d Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph A7 -Appendix A Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Research Bulletin (ARB) -Number 51 -Paragraph 38 -Subparagraph a Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 04 -Paragraph 20 -Article 9 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 130 -Paragraph 10, 15 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 87-21 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 28, 29, 30 false 28 1 us-gaap_PreferredStockDividendsAndOtherAdjustments us-gaap true debit duration No definition available. false false false false false false false false false false true negated false 1 false true false false -11811000 -11811 false false false 2 false true false false -13223000 -13223 false false false 3 false true false false -26426000 -26426 false false false 4 false true false false -27458000 -27458 false false false xbrli:monetaryItemType monetary The aggregate value of preferred stock dividends and other adjustments necessary to derive net income apportioned to common stockholders. 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No authoritative reference available. false 33 2 aimco_IncomeLossFromDiscontinuedOperationsAttributableToCommonUnitholdersBasicAndDiluted aimco false na duration Income (loss) from discontinued operations attributable to the Partnership's common unitholders (basic and diluted). false false false false false false false false false false false totallabel true 1 true true false false 0.15 0.15 false false false 2 true true false false 0.13 0.13 false false false 3 true true false false 0.24 0.24 false false false 4 true true false false 0.12 0.12 false false false us-types:perShareItemType decimal Income (loss) from discontinued operations attributable to the Partnership's common unitholders (basic and diluted). 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During the six months ended June&#160;30, 2010, we reduced our restructuring accruals by $1.2&#160;million and $4.7 million related to payments on unrecoverable lease obligations and severance and personnel related costs, respectively. As of June&#160;30, 2010, the remaining accruals associated with our restructuring activity are $5.7&#160;million for estimated unrecoverable lease obligations, which will be paid over the remaining terms of the affected leases. </div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <!-- Begin Block Tagged Note false false false us-types:textBlockItemType textblock Other Significant Transactions. No authoritative reference available. false 1 2 false UnKnown UnKnown UnKnown false true XML 15 R6.xml IDEA: Organization  2.2.0.7 false Organization 0201 - Disclosure - Organization true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 0 aimco_OrganizationAbstract aimco false na duration Organization. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string Organization. false 3 1 us-gaap_NatureOfOperations us-gaap true na duration No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <!-- Begin Block Tagged Note 1 - us-gaap:NatureOfOperations--> <div align="left" style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <!-- xbrl,ns --> <!-- xbrl,nx --> <div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b> </div> <div align="left"> </div> <div align="center" style="font-size: 10pt; margin-top: 0pt"><b></b></div> <div align="center" style="font-size: 10pt"><b></b></div> <div align="center" style="font-size: 10pt"><b></b></div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 1 &#8212; Organization</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">AIMCO Properties, L.P., a Delaware limited partnership, or the Partnership, and together with its consolidated subsidiaries was formed on May&#160;16, 1994 to conduct the business of acquiring, redeveloping, leasing, and managing multifamily apartment properties. Our securities include Partnership Common Units, or common OP Units, Partnership Preferred Units, or preferred OP Units, and High Performance Partnership Units, or High Performance Units, which are collectively referred to as &#8220;OP Units.&#8221; Apartment Investment and Management Company, or Aimco, is the owner of our general partner, AIMCO-GP, Inc., or the General Partner, and special limited partner, AIMCO-LP Trust, or the Special Limited Partner. The General Partner and Special Limited Partner hold common OP Units and are the primary holders of outstanding preferred OP Units. &#8220;Limited Partners&#8221; refers to individuals or entities that are our limited partners, other than Aimco, the General Partner or the Special Limited Partner, and own common OP Units or preferred OP Units. Generally, after holding the common OP Units for one year, the Limited Partners have the right to redeem their common OP Units for cash, subject to our prior right to cause Aimco to acquire some or all of the common OP Units tendered for redemption in exchange for shares of Aimco Class&#160;A Common Stock. Common OP Units redeemed for Aimco Class&#160;A Common Stock are generally exchanged on a one-for-one basis (subject to antidilution adjustments). Preferred OP Units and High Performance Units may or may not be redeemable based on their respective terms, as provided for in the Fourth Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., as amended, or the Partnership Agreement. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We, through our operating divisions and subsidiaries, hold substantially all of Aimco&#8217;s assets and manage the daily operations of Aimco&#8217;s business and assets. Aimco is required to contribute all proceeds from offerings of its securities to us. In addition, substantially all of Aimco&#8217;s assets must be owned through the Partnership; therefore, Aimco is generally required to contribute all assets acquired to us. In exchange for the contribution of offering proceeds or assets, Aimco receives additional interests in us with similar terms (e.g., if Aimco contributes proceeds of a preferred stock offering, Aimco (through the General Partner and Special Limited Partner) receives preferred OP Units with terms substantially similar to the preferred securities issued by Aimco). </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Aimco frequently consummates transactions for our benefit. For legal, tax or other business reasons, Aimco may hold title or ownership of certain assets until they can be transferred to us. However, we have a controlling financial interest in substantially all of Aimco&#8217;s assets in the process of transfer to us. Except as the context otherwise requires, &#8220;we,&#8221; &#8220;our&#8221; and &#8220;us&#8221; refer to the Partnership, and the Partnership&#8217;s consolidated entities, collectively. Except as the context otherwise requires, &#8220;Aimco&#8221; refers to Aimco and Aimco&#8217;s consolidated entities, collectively. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We are focused on the ownership and management of quality apartment communities located in the 20 largest markets in the United States (as measured by total market capitalization, which is the total market value of institutional-grade apartment properties in a particular market). We upgrade the quality of our portfolio through the sale of communities with rents below average market rents and the reinvestment of capital within these 20 target markets through redevelopment and acquisitions. Our apartment properties are generally financed with property-level, non-recourse, long-dated, fixed-rate, amortizing debt. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%">As of June&#160;30, 2010, we: </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="4%" style="background: transparent">&#160;</td> <td width="3%" nowrap="nowrap" align="left"><b>&#8226;</b></td> <td width="1%">&#160;</td> <td> <div style="text-align: justify">owned an equity interest in 232 conventional real estate properties with 71,909 units; </div></td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="4%" style="background: transparent">&#160;</td> <td width="3%" nowrap="nowrap" align="left"><b>&#8226;</b></td> <td width="1%">&#160;</td> <td> <div style="text-align: justify">owned an equity interest in 254 affordable real estate properties with 29,540 units; and </div></td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="4%" style="background: transparent">&#160;</td> <td width="3%" nowrap="nowrap" align="left"><b>&#8226;</b></td> <td width="1%">&#160;</td> <td> <div style="text-align: justify">provided services for or managed 27,901 units in 331 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. </div></td> </tr> </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Of these properties, we consolidated 230 conventional properties with 70,605 units and 197 affordable properties with 23,901 units. These conventional and affordable properties generated 84% and 16%, respectively, of consolidated property net operating income (as defined in Note&#160;7) during the six months ended June&#160;30, 2010, or 87% and 13%, respectively, after adjustments for our ownership in these properties. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">At June&#160;30, 2010, after elimination of units held by consolidated subsidiaries, we had outstanding 123,030,243 common OP Units, 28,076,133 preferred OP Units and 2,339,950 High Performance Units. 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It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased th ree years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7, 26 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 8, 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 95 -Paragraph 7 -Footnote 1 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 1 -Article 5 false 2 37 false Thousands UnKnown UnKnown false true XML 17 defnref.xml IDEA: XBRL DOCUMENT No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Distributions received from Aimco. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Notes Receivable From Aimco. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Investment in unconsolidated real estate partnerships related to variable interest entity. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Other Significant Transactions. No authoritative reference available. No authoritative reference available. No authoritative reference available. Net increase in cash from consolidation and deconsolidation of entities. No authoritative reference available. Cash and cash equivalents related to variable interest entity. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. General Partner And Special Limited Partner. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Property tax exempt bond financing related to variable interest entity. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Net income (loss) attributable to the Partnership's common unitholders (basic and diluted). No authoritative reference available. Purchases of partnership interests and other assets. No authoritative reference available. No authoritative reference available. No authoritative reference available. Including the current and noncurrent portions, this element represents the carrying value of loans payable which were initially due after one year or beyond the operating cycle, if longer, and which are not otherwise defined in the taxonomy. No authoritative reference available. No authoritative reference available. No authoritative reference available. (Loss) income from continuing operations attributable to the Partnership's common unitholders (basic and diluted). No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Payment Of Distributions To High Performance Units. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Accrued liabilities and other related to variable interest entity. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. High Performance Units. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Investment in Aimco ClassA Common Stock. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Investment management expenses. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Payment Of Distributions To General Partner And Special Limited Partner No authoritative reference available. No authoritative reference available. No authoritative reference available. Property loans payable related to variable interest entity. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. (Loss) income before income taxes and discontinued operations. No authoritative reference available. Asset Management And Tax Credit Revenues No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Net income attributable to participating securities. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Restricted cash related to variable interest entity. No authoritative reference available. No authoritative reference available. No authoritative reference available. Net real estate related to variable interest entity. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Weighted average common units outstanding, basic and diluted. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Accounts receivable related to variable interest entity. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Income (loss) from discontinued operations attributable to the Partnership's common unitholders (basic and diluted). No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. Other borrowings related to variable interest entity. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. No authoritative reference available. 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No authoritative reference available. false 14 1 dei_EntityFilerCategory dei false na duration No definition available. false false false false false false false false false false false false 1 false false false false 0 0 Accelerated Filer Accelerated Filer false false false 2 false false false false 0 0 false false false us-types:filerCategoryItemType na Indicate whether the registrant is one of the following: (1) Large Accelerated Filer, (2) Accelerated Filer, (3) Non-accelerated Filer, or (4) Smaller Reporting Company. Definitions of these categories are stated in Rule 12b-2 of the Exchange Act. This information should be based on the registrant's current or most recent filing containing the related disclosure. 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No authoritative reference available. false 6 3 us-gaap_Land us-gaap true debit instant No definition available. false false false false false false false false false false false totallabel false 1 false true false false 2179744000 2179744 false false false 2 false true false false 2161010000 2161010 false false false xbrli:monetaryItemType monetary Carrying amount as of the balance sheet date of real estate held for productive use. This excludes land held for sale. 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No authoritative reference available. false 8 3 us-gaap_RealEstateInvestmentPropertyAccumulatedDepreciation us-gaap true credit instant No definition available. false false false false false false false false false false true negatedtotal false 1 false true false false -2830247000 -2830247 false false false 2 false true false false -2625542000 -2625542 false false false xbrli:monetaryItemType monetary The cumulative amount of depreciation for real estate property held for investment purposes. 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No authoritative reference available. false 10 2 us-gaap_CashAndCashEquivalentsAtCarryingValue us-gaap true debit instant No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 78318000 78318 false false false 2 false true false false 81260000 81260 false false false xbrli:monetaryItemType monetary Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased th ree years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits should not be reported as cash and cash equivalents. 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Restrictions may include legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or entity statements of intention with regard to particular deposits; however, time deposits and short-term certificates of deposit are not generally included in legally restricted deposits. Excludes compensating balance arrangements that are not agreements which legally restrict the use of cash amounts shown on the balance sheet. This element is for unclassified presentations; for classified presentations there is a separate and distinct element. 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Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 21 -Paragraph 16 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 17 -Article 5 false 15 2 us-gaap_NotesReceivableRelatedParties us-gaap true debit instant No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 12280000 12280 false false false 2 false true false false 14295000 14295 false false false xbrli:monetaryItemType monetary For an unclassified balance sheet, amounts due from parties associated with the reporting entity as evidenced by a written promise to pay. 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Such amount may include accrued interest receivable in accordance with the terms of the note. The note also may contain provisions and related items including a discount or premium, payable on demand, secured, or unsecured, interest bearing or noninterest bearing, among myriad other features and characteristics. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3 -Article 5 false 17 2 aimco_NotesReceivableFromParentCompany aimco false debit instant Notes Receivable From Aimco. false false false false false false false false false false false verboselabel false 1 false true false false 16797000 16797 false false false 2 false true false false 16371000 16371 false false false xbrli:monetaryItemType monetary Notes Receivable From Aimco. 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Such obligations include mortgage loans, chattel loans, and any other borrowings secured by assets of the borrower. 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No authoritative reference available. false 26 2 us-gaap_LoansPayableToBank us-gaap true credit instant No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 25000000 25000 false false false 2 false true false false 90000000 90000 false false false xbrli:monetaryItemType monetary Including the current and noncurrent portions, carrying value as of the balance sheet date of loans from a bank with maturities initially due after one year or beyond the normal operating cycle if longer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 false 27 2 us-gaap_OtherBorrowings us-gaap true credit instant No definition available. false false false false false false false false false false false totallabel false 1 false true false false 58943000 58943 false false false 2 false true false false 53057000 53057 false false false xbrli:monetaryItemType monetary The carrying amount as of the balance sheet date for the aggregate of other miscellaneous borrowings owed by the reporting entity. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 13, 16 -Article 9 true 28 2 us-gaap_DebtAndCapitalLeaseObligations us-gaap true credit instant No definition available. false false false false false false false false false false false totallabel false 1 false true false false 5643911000 5643911 false false false 2 false true false false 5602216000 5602216 false false false xbrli:monetaryItemType monetary Sum of the carrying values as of the balance sheet date of all debt, including all short-term borrowings, long-term debt, and capital lease obligations. No authoritative reference available. true 29 2 us-gaap_AccountsPayableCurrentAndNoncurrent us-gaap true credit instant No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 27647000 27647 false false false 2 false true false false 29819000 29819 false false false xbrli:monetaryItemType monetary Carrying value as of the balance sheet date of liabilities incurred (and for which invoices have typically been received) and payable to vendors for goods and services received that are used in an entity's business. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 15 -Subparagraph 5 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 15 -Subparagraph a -Article 7 false 30 2 us-gaap_AccruedLiabilitiesCurrentAndNoncurrent us-gaap true credit instant No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 279063000 279063 false false false 2 false true false false 286326000 286326 false false false xbrli:monetaryItemType monetary Carrying value as of the balance sheet date of obligations incurred and payable, pertaining to costs that are statutory in nature, are incurred on contractual obligations, or accumulate over time and for which invoices have not yet been received or will not be rendered. Examples include taxes, interest, rent and utilities. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 15 -Subparagraph 5 -Article 9 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 15 -Subparagraph a -Article 7 false 31 2 us-gaap_DeferredRevenue us-gaap true credit instant No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 158402000 158402 false false false 2 false true false false 180656000 180656 false false false xbrli:monetaryItemType monetary Amount of deferred revenue as of balance sheet date. Deferred revenue represents collections of cash or other assets related to a revenue producing activity for which revenue has not yet been recognized. Generally, an entity records deferred revenue when it receives consideration from a customer before achieving certain criteria that must be met for revenue to be recognized in conformity with GAAP. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 13 -Section A false 32 2 us-gaap_SecurityDepositLiability us-gaap true credit instant No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 35794000 35794 false false false 2 false true false false 34855000 34855 false false false xbrli:monetaryItemType monetary This element represents money paid in advance to protect the provider of a product or service, such as a lessor, against damage or nonpayment by the buyer or tenant (lessee) during the term of the agreement. Such damages may include physical damage to the property, theft of property, and other contractual breaches. Security deposits held may be interest or noninterest bearing. No authoritative reference available. false 33 2 us-gaap_LiabilitiesOfAssetsHeldForSale us-gaap true credit instant No definition available. false false false false false false false false false false false totallabel false 1 false true false false 3276000 3276 false false false 2 false true false false 121237000 121237 false false false xbrli:monetaryItemType monetary Liability (such as a mortgage) related to a disposal group that is held for sale and anticipated to be sold in less than one year. The liability is expected to be discharged as part of the plan of sale for the asset. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 144 -Paragraph 46 true 34 2 us-gaap_Liabilities us-gaap true credit instant No definition available. false false false false false false false false false false false totallabel false 1 false true false false 6148093000 6148093 false false false 2 false true false false 6255109000 6255109 false false false xbrli:monetaryItemType monetary Sum of the carrying amounts as of the balance sheet date of all liabilities that are recognized. Liabilities are probable future sacrifices of economic benefits arising from present obligations of an entity to transfer assets or provide services to other entities in the future. No authoritative reference available. true 35 2 us-gaap_TemporaryEquityCarryingAmount us-gaap true credit instant No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 106389000 106389 false false false 2 false true false false 116656000 116656 false false false xbrli:monetaryItemType monetary The carrying value (book value) of an entity's issued and outstanding stock which is not included within permanent equity in Stockholders Equity. Temporary equity is a security with redemption features that are outside the control of the issuer, is not classified as an asset or liability in conformity with GAAP, and is not mandatorily redeemable. Includes any type of security that is redeemable at a fixed or determinable price or on a fixed or determinable date or dates, is redeemable at the option of the holder, or has conditions for redemption which are not solely within the control of the issuer. If convertible, the issuer does not control the actions or events necessary to issue the maximum number of shares that could be required to be delivered under the conversion option if the holder exercises the option to convert the stock to another class of equity. If the security is a warrant or a rights issue, the warrant or rights issue is considered to be temporary equity if the issuer cannot demonstrate that it would be able to deliver upon the exercise of the option by the holder in all cases. Includes stock with a put option held by an ESOP and stock redeemable by a holder only in the event of a change in control of the issuer. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph i -Article 4 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number D-98 -Paragraph 2 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 28 -Subparagraph a -Article 5 false 36 2 us-gaap_CommitmentsAndContingencies2009 us-gaap true na duration No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0 &nbsp; &nbsp; false false false 2 false false false false 0 0 &nbsp; &nbsp; false false false xbrli:stringItemType string Represents the caption on the face of the balance sheet to indicate that the entity has entered into (1) purchase or supply arrangements that will require expending a portion of its resources to meet the terms thereof, and (2) is exposed to potential losses or, less frequently, gains, arising from (a) possible claims against a company's resources due to future performance under contract terms, and (b) possible losses or likely gains from uncertainties that will ultimately be resolved when one or more future events that are deemed likely to occur do occur or fail to occur. 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Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 19 -Article 7 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 5 -Paragraph 8, 9 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 25 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 17 -Article 9 false 37 2 us-gaap_PartnersCapitalAbstract us-gaap true na duration No definition available. false false false false false true false false false false false verboselabel false 1 false false false false 0 0 false false false 2 false false false false 0 0 false false false xbrli:stringItemType string No definition available. false 38 3 us-gaap_PreferredUnitsValue us-gaap true credit instant No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 660500000 660500 false false false 2 false true false false 660500000 660500 false false false xbrli:monetaryItemType monetary Capital contributed by preferred partners. Preferred partners are partners in a publicly listed limited partnership or master limited partnership with preferential rights and privileges. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 4 -Section F Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 87-21 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Practice Bulletin (PB) -Number 14 -Paragraph 8, 10, 15 false 39 3 aimco_GeneralPartnerAndSpecialLimitedPartner aimco false credit instant General Partner And Special Limited Partner. false false false false false false false false false false false verboselabel false 1 false true false false 397335000 397335 false false false 2 false true false false 521692000 521692 false false false xbrli:monetaryItemType monetary General Partner And Special Limited Partner. No authoritative reference available. false 40 3 us-gaap_LimitedPartnersCapitalAccountValue us-gaap true credit instant No definition available. false false false false false false false false false false false verboselabel false 1 false true false false 116038000 116038 false false false 2 false true false false 95990000 95990 false false false xbrli:monetaryItemType monetary Capital contributed by limited partners. The limited partners are partners of a publicly traded limited partnership or master limited partnership. Limited partners have limited liability and do not manage the partnership. 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No authoritative reference available. false 42 3 aimco_InvestmentInParentCompanyCommonStock aimco false debit instant Investment in Aimco ClassA Common Stock. false false false false false false false false false false true negatedtotal false 1 false true false false -4509000 -4509 false false false 2 false true false false -4621000 -4621 false false false xbrli:monetaryItemType monetary Investment in Aimco ClassA Common Stock. No authoritative reference available. true 43 3 us-gaap_OtherOwnershipInterestsCapitalAccount us-gaap true credit instant No definition available. false false false false false false false false false false false totallabel false 1 false true false false 1126761000 1126761 false false false 2 false true false false 1233248000 1233248 false false false xbrli:monetaryItemType monetary Capital account balance of the other unit holders in a publicly listed limited partnership or master limited partnership. Does not include limited or general partners' ownership interests. Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Practice Bulletin (PB) -Number 14 -Paragraph 10, 15 true 44 3 us-gaap_MinorityInterestInLimitedPartnerships us-gaap true credit instant No definition available. false false false false false false false false false false false totallabel false 1 false true false false 342655000 342655 false false false 2 false true false false 317126000 317126 false false false xbrli:monetaryItemType monetary Carrying amount of the equity interests owned by noncontrolling partners of a limited partnership included in the entity's consolidated financial statements. No authoritative reference available. true 45 3 us-gaap_PartnersCapital us-gaap true credit instant No definition available. false false false false false false false false false false false totallabel false 1 false true false false 1469416000 1469416 false false false 2 false true false false 1550374000 1550374 false false false xbrli:monetaryItemType monetary Ownership interest of different classes of partners in the publicly listed limited partnership or master limited partnership. Partners include general, limited and preferred partners. Limited liability partnerships (LLPs) are formed in accordance with the laws of the state in which such entities are organized. Because those laws are not uniform, the characteristics of LPCs vary from state to state. However, LLPs generally have the following characteristics: An LLP is an unincorporated association of two or more "persons"; Its members have limited personal liability for the obligations or debts of the entity; It is classified as a partnership for federal income tax purposes. 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false 1 false false false false 0 0 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <!-- Begin Block Tagged Note 2 - us-gaap:OrganizationConsolidationAndPresentationOfFinancialStatementsDisclosureTextBlock--> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>NOTE 2 &#8212; Basis of Presentation</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Article&#160;10 of Regulation&#160;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&#160;30, 2010, are not necessarily indicative of the results that may be expected for the year ending December&#160;31, 2010. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The balance sheet at December&#160;31, 2009, 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&#160;31, 2009. Certain 2009 financial statement amounts have been reclassified to conform to the 2010 presentation, including adjustments for discontinued operations, and certain 2009 unit and per unit information has been revised as compared to the amounts reported in our Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009, as further discussed in Note 6. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">During the three months ended March&#160;31, 2010, we reduced the investment and noncontrolling interest balances for certain of our consolidated partnerships by $38.7&#160;million related to excess amounts allocated to the investments upon our consolidation of such partnerships. Additionally, during the six months ended June&#160;30, 2010, we reversed approximately $11.2&#160;million of excess equity in losses recognized during 2008 and 2009 related to these partnerships, with a corresponding adjustment to net income attributed to noncontrolling interests in consolidated real estate partnerships. These adjustments had no significant effect on partners&#8217; capital attributed to the Partnership or net income or loss attributable to the Partnership during the affected periods. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Principles of Consolidation</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">The accompanying condensed consolidated financial statements include the accounts of the Partnership and its consolidated entities. Pursuant to a Management and Contribution Agreement between the Partnership and Aimco, we have acquired, in exchange for interests in the Partnership, the economic benefits of subsidiaries of Aimco in which we do not have an interest, and Aimco has granted us a right of first refusal to acquire such subsidiaries&#8217; assets for no additional consideration. Pursuant to the agreement, Aimco has also granted us certain rights with respect to assets of such subsidiaries. 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. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Interests in consolidated real estate partnerships 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 Aimco or us generally are not available to pay creditors of Aimco or the Partnership. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As used herein, and except where the context otherwise requires, &#8220;partnership&#8221; refers to a limited partnership or a limited liability company and &#8220;partner&#8221; refers to a partner in a limited partnership or a member in a limited liability company. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Variable Interest Entities</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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)&#160;the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b)&#160;as a group, the holders of the equity investment at risk lack (i)&#160;the ability to make decisions about an entity&#8217;s activities through voting or similar rights, (ii)&#160;the obligation to absorb the expected losses of the entity, or (iii)&#160;the right to receive the expected residual returns of the entity; or (c)&#160;the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity&#8217;s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. </div> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Effective January&#160;1, 2010, we adopted the provisions of FASB Accounting Standards Update 2009-17, <i>Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities, </i>or ASU 2009-17, on a prospective basis. ASU 2009-17, which modified the guidance in FASB ASC Topic 810, introduces a more qualitative approach to evaluating VIEs for consolidation and requires a company to perform an analysis to determine whether its variable interests give it a controlling financial interest in a VIE. This analysis identifies the primary beneficiary of a VIE as the entity that has (a)&#160;the power to direct the activities of the VIE that most significantly impact the VIE&#8217;s economic performance, and (b)&#160;the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In determining whether it has the power to direct the activities of the VIE that most significantly affect the VIE&#8217;s performance, ASU 2009-17 requires a company to assess whether it has an implicit financial responsibility to ensure that a VIE operates as designed, requires continuous reassessment of primary beneficiary status rather than periodic, event-driven assessments as previously required, and incorporates expanded disclosure requirements. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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 VIEs 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. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As a result of our adoption of ASU 2009-17, we concluded we are the primary beneficiary of, and therefore consolidated, approximately 49 previously unconsolidated partnerships. Those partnerships own, or control other entities that own, 31 apartment properties. Our direct and indirect interests in the profits and losses of those partnerships range from less than 1% to 35%, and average approximately 7%. We applied the practicability exception for initial measurement of consolidated VIEs to partnerships that own 13 properties and accordingly recognized the consolidated assets, liabilities and noncontrolling interests at fair value effective January&#160;1, 2010 (refer to the Fair Value Measurements section for further information regarding certain of the fair value amounts recognized upon consolidation). We deconsolidated partnerships that own ten apartment properties in which we hold an average interest of approximately 55%. The initial consolidation and deconsolidation of these partnerships resulted in increases (decreases), net of intercompany eliminations, in amounts included in our consolidated balance sheet as of January&#160;1, 2010, as follows (in thousands): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom"> <td width="62%">&#160;</td> <td width="3%">&#160;</td> <td width="1%">&#160;</td> <td width="11%">&#160;</td> <td width="1%">&#160;</td> <td width="3%">&#160;</td> <td width="1%">&#160;</td> <td width="11%">&#160;</td> <td width="1%">&#160;</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td>&#160;</td> <td>&#160;</td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Consolidation</b></td> <td>&#160;</td> <td>&#160;</td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Deconsolidation</b></td> <td>&#160;</td> </tr> <!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; 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Also prior to 2009, we allocated the noncontrolling partners&#8217; share of partnership losses to noncontrolling partners to the extent of the carrying amount of the noncontrolling interest. Consolidation of a partnership does not ordinarily result in a change to the net amount of partnership income or loss that is recognized using the equity method. However, prior to 2009, when a partnership had a deficit in equity, GAAP may have required the controlling partner that consolidates the partnership to recognize any losses that would otherwise be allocated to noncontrolling partners, in addition to the controlling partner&#8217;s share of losses. Certain of the partnerships that we consolidated in accordance with ASU 2009-17 had deficits in equity that resulted from losses or deficit distributions during prior periods when we accounted for our investment using the equity method. We would have been required to recognize the noncontrolling partners&#8217; share of those losses had we consolidated those partnerships in those periods prior to 2009. In accordance with our prospective transition method for the adoption of ASU 2009-17 related to our consolidation of previously unconsolidated partnerships, we recorded a $37.2&#160;million charge to our partners&#8217; capital, the majority of which was attributed to the cumulative amount of additional losses that we would have recognized had we applied ASU 2009-17 in periods prior to 2009. 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margin-top: 10pt; text-indent: 4%">Our equity in the results of operations of the partnerships and related properties we deconsolidated in connection with our adoption of ASU 2009-17 is included in equity in earnings or losses of unconsolidated real estate partnerships in our consolidated statements of operations for the three and six months ended June&#160;30, 2010. Based on our effective ownership in these entities, these amounts are not significant. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As of June&#160;30, 2010, we were the primary beneficiary of, and therefore consolidated, approximately 143 VIEs, which owned 102 apartment properties with 14,846 units. Real estate with a carrying value of $913.1&#160;million collateralized $677.6&#160;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. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As of June&#160;30, 2010, we also held variable interests in 290 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 343 apartment properties with 21,572 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 $92.5&#160;million at June&#160;30, 2010, is held through consolidated tax credit funds 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 is attributed to the noncontrolling interests in the consolidated tax credit funds 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 tax credit funds, which is insignificant. The remainder of our investment in unconsolidated VIEs, or approximately $17.0 million at June&#160;30, 2010, 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 $17.0&#160;million recorded investment in such entities. </div> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In addition to our investments in these unconsolidated VIEs discussed above, at June&#160;30, 2010, we had in aggregate $101.3&#160;million of receivables from these VIEs and we had a contractual obligation to advance funds to certain VIEs totaling $4.1&#160;million. Our maximum risk of loss associated with our lending and management activities related to these unconsolidated VIEs is limited to these amounts. 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margin-top: 10pt"><b><i>Derivative Financial Instruments</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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 or cap agreements. The interest rate swap agreements moderate our exposure to interest rate risk by effectively converting the interest on variable rate debt to a fixed rate. The interest rate cap agreements effectively limit our exposure to interest rate risk by providing a ceiling on the underlying variable interest 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 partners&#8217; capital, as appropriate. The interest rate caps are not material to our financial position or results of operations. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">At June&#160;30, 2010 and December&#160;31, 2009, we had interest rate swaps with aggregate notional amounts of $52.3&#160;million, and recorded fair values of $3.6&#160;million and $1.6&#160;million, respectively, reflected in accrued liabilities and other in our condensed consolidated balance sheets. At June 30, 2010, these interest rate swaps had a weighted average term of 10.6&#160;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 income within partners&#8217; capital to the extent of their effectiveness. For the six months ended June&#160;30, 2010 and 2009, we recognized changes in fair value of $2.0&#160;million and $1.7&#160;million, respectively, of which $2.0&#160;million and $2.2&#160;million, respectively, resulted in an adjustment to consolidated partners&#8217; capital. We recognized less than $0.1&#160;million and $0.5&#160;million of ineffectiveness as an adjustment of interest expense during the six months ended June&#160;30, 2010 and 2009, respectively. Our consolidated comprehensive loss for the three and six months ended June&#160;30, 2010, totaled $11.8&#160;million and $28.5&#160;million, respectively, and consolidated comprehensive loss for the three and six months ended June&#160;30, 2009, totaled $5.6 million and $37.6&#160;million, respectively, before the effects of noncontrolling interests. If the forward rates at June&#160;30, 2010 remain constant, we estimate that during the next twelve months, we would reclassify into earnings approximately $1.5&#160;million of the unrealized losses in accumulated other comprehensive income. </div> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">We have entered into total rate of return swaps on various fixed-rate secured tax-exempt bonds payable and fixed-rate notes payable 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&#8217;s interest rate, the total rate of return swaps require that we pay a variable rate, equivalent to the Securities Industry and Financial Markets Association Municipal Swap Index, or SIFMA, rate for tax-exempt bonds payable and the 30-day LIBOR rate for notes payable, plus a risk spread. These swaps generally have a second or third lien on the property collateralized by the related borrowings and the obligations under certain of these swaps are cross-collateralized with certain of the other swaps with a particular counterparty. The underlying borrowings are generally callable at our option, with no prepayment penalty, with 30&#160;days advance notice, and the swaps generally have a term of less than five years. The total rate of return swaps have a contractually defined termination value generally equal to the difference between the fair value and the counterparty&#8217;s purchased value of the underlying borrowings, which may require payment by us or to us for such difference. Accordingly, we believe fluctuations in the fair value of the borrowings from the inception of the hedging relationship generally will be offset by a corresponding fluctuation in the fair value of the total rate of return swaps. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">As of June&#160;30, 2010 and December&#160;31, 2009, we had borrowings payable subject to total rate of return swaps with aggregate outstanding principal balances of $307.7&#160;million and $352.7&#160;million. At June&#160;30, 2010, the weighted average fixed receive rate under the total return swaps was 6.8% and the weighted average variable pay rate was 1.0%, based on the applicable SIFMA and 30-day LIBOR rates effective as of that date. Information related to the fair value of these instruments at June&#160;30, 2010 and December&#160;31, 2009, is discussed further below. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Fair Value Measurements</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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. 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For the partnerships we consolidated at fair value due to reconsideration events during the six months ended June&#160;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 consolidated statement of operations for the six months ended June&#160;30, 2010. </div></td> </tr> <tr style="font-size: 3pt"> <td>&#160;</td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(3)</td> <td>&#160;</td> <td> <div style="text-align: justify">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. </div></td> </tr> <tr style="font-size: 3pt"> <td>&#160;</td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(4)</td> <td>&#160;</td> <td> <div style="text-align: justify">Refer to the recurring fair value measurements table for an explanation of the valuation techniques we use to estimate the fair value of debt. </div></td> </tr> </table> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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&#160;30, 2010 and December&#160;31, 2009, 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 $128.7&#160;million and $126.1&#160;million at June&#160;30, 2010 and December&#160;31, 2009, respectively, as compared to their carrying amounts of $141.7 million and $139.6&#160;million. The estimated aggregate fair value of our consolidated debt (including amounts reported in liabilities related to assets held for sale) was approximately $5.9&#160;billion and $5.7&#160;billion at June&#160;30, 2010 and December&#160;31, 2009, respectively, as compared to aggregate carrying amounts of $5.6&#160;billion. The fair values of our derivative instruments at June&#160;30, 2010 and December&#160;31, 2009, are included in the table presented above. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Concentration of Credit Risk</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">Financial instruments that potentially could subject us to significant concentrations of credit risk consist principally of notes receivable and total rate of return swaps. Approximately $88.4&#160;million of our notes receivable at June&#160;30, 2010, are collateralized by 84 buildings with 1,596 residential units in the West Harlem area of New York City. There are no other significant concentrations of credit risk with respect to our notes receivable due to the large number of partnerships that are borrowers under the notes and the geographic diversification of the properties that serve as the primary source of repayment of the notes. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">At June&#160;30, 2010, we had total rate of return swap positions with two financial institutions totaling $308.0&#160;million. We periodically evaluate counterparty credit risk associated with these arrangements. At the current time, we have concluded we do not have material exposure. 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. Additionally, the swap agreements with a specific counterparty provide for collateral calls to maintain specified loan-to-value ratios. As of June&#160;30, 2010, we were not required to provide cash collateral pursuant to the total rate of return swaps. In the event the values of the real estate properties serving as collateral under these agreements decline, we may be required to provide additional collateral pursuant to the swap agreements, which may adversely affect our cash flows. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Income Taxes</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">In March&#160;2008, we were notified by the Internal Revenue Service, or the IRS, that it intended to examine our 2006 Federal tax return. During June&#160;2008, the IRS issued AIMCO-GP, Inc., our general partner and tax matters partner, a summary report including the IRS&#8217;s proposed adjustments to our 2006 Federal tax return. In addition, in May&#160;2009, we were notified by the IRS that it intended to examine our 2007 Federal tax return. During November&#160;2009, the IRS issued AIMCO-GP, Inc. a summary report including the IRS&#8217;s proposed adjustments to our 2007 Federal tax return. 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. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b><i>Use of Estimates</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">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. </div> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <!-- Begin Block Tagged Note false false false us-types:textBlockItemType textblock Description containing the entire organization, consolidation and basis of presentation of financial statements disclosure. May be provided in more than one note to the financial statements, as long as users are provided with an understanding of (1) the significant judgments and assumptions made by an enterprise in determining whether it must consolidate a VIE and/or disclose information about its involvement with a VIE, (2) the nature of restrictions on a consolidated VIE's assets reported by an enterprise in its statement of financial position, including the carrying amounts of such assets, (3) the nature of, and changes in, the risks associated with an enterprise's involvement with the VIE, and (4) how an enterprise's involvement with the VIE affects the enterprise's financial position, financial performance, and cash flows. Describes procedure if disclosures are provided in more than one note to the financial statements. 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