v2.3.0.11
Document and Entity Information
9 Months Ended
Sep. 30, 2011
Entity Registrant Name AMERICA FIRST TAX EXEMPT INVESTORS LP
Entity Central Index Key 0001059142
Current Fiscal Year End Date --12-31
Entity Filer Category Accelerated Filer
Document Type 10-Q
Document Period End Date Sep. 30, 2011
Document Fiscal Year Focus 2011
Document Fiscal Period Focus Q3
Amendment Flag false
Entity Common Stock, Units Outstanding 0
v2.3.0.11
Condensed Consolidated Balance Sheets (USD $)
Sep. 30, 2011
Dec. 31, 2010
Assets    
Cash and cash equivalents $ 10,411,071 $ 13,277,048
Restricted cash 16,853,085 25,252,756
Interest receivable 8,562,286 4,670,182
Tax-exempt mortgage revenue bonds held in trust, at fair value (Notes 4 & 8) 91,654,982 73,451,479
Tax-exempt mortgage revenue bonds, at fair value (Note 4) 47,435,630 27,115,164
Real estate assets: (Note 5)    
Land 13,446,385 12,946,831
Buildings and improvements 114,414,173 91,802,694
Real estate assets before accumulated depreciation 127,860,558 104,749,525
Accumulated depreciation (19,580,720) (23,467,105)
Net real estate assets 108,279,838 81,282,420
Other assets (Note 6) 14,212,716 16,558,200
Total Assets 297,409,608 241,607,249
Liabilities    
Accounts payable, accrued expenses and other liabilities 3,516,836 3,528,303
Distribution payable 3,803,399 3,803,399
Debt financing (Note 7) 109,187,000 95,608,000
Mortgages payable (Note 8) 43,667,892 10,645,982
Total Liabilities 160,175,127 113,585,684
Commitments and Contingencies (Note 12)    
Partners' Capital    
General Partner (Note 2) (298,694) (280,629)
Beneficial Unit Certificate holders 160,388,092 161,389,189
Unallocated deficit of Consolidated VIEs (23,163,457) (32,945,669)
Total Partners' Capital 136,925,941 128,162,891
Noncontrolling interest (Note 5) 308,540 (141,326)
Total Capital 137,234,481 128,021,565
Total Liabilities and Partners' Capital $ 297,409,608 $ 241,607,249
v2.3.0.11
Condensed Consolidated Statements of Operations (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2011
Sep. 30, 2010
Revenues:        
Property revenues $ 4,319,370 $ 3,698,181 $ 12,453,647 $ 10,948,483
Mortgage revenue bond investment income 2,465,876 2,011,059 7,094,549 5,029,943
Gain on early extinquishment of debt 0 0 0 438,816
Other income 359,167 112,400 759,478 325,226
Total Revenues 7,144,413 5,821,640 20,307,674 16,742,468
Expenses:        
Real estate operating (exclusive of items shown below) 2,452,229 2,282,147 7,192,751 7,430,764
Asset impairment charge - Weatherford 0 2,716,330 0 2,716,330
Provision for loss on receivables 14,525 0 725,215 0
Depreciation and amortization 1,536,591 1,430,847 4,171,142 3,868,105
Interest 2,138,532 1,184,293 4,646,590 3,029,572
General and administrative 725,115 637,624 2,044,132 1,736,400
Total Expenses 6,866,992 8,251,241 18,779,830 18,781,171
Net (loss) income 277,421 (2,429,601) 1,527,844 (2,038,703)
Net (income) loss attributable to noncontrolling interest 145,369 (221,878) 449,866 (745,086)
Net (loss) income - America First Tax Exempt Investors, L.P. 132,052 (2,207,723) 1,077,978 (1,293,617)
Net income (loss) allocated to:        
General Partner 3,750 (13,454) 75,212 13,813
Limited Partners - Unitholders 371,286 (1,331,945) 1,942,800 1,126,689
Unallocated loss of Consolidated Property VIEs (242,984) (862,324) (940,034) (2,434,119)
Noncontrolling interest 145,369 (221,878) 449,866 (745,086)
Net (loss) income $ 277,421 $ (2,429,601) $ 1,527,844 $ (2,038,703)
Unitholders' interest in net income per unit (basic and diluted):        
Net income (loss), basic and diluted, per unit $ 0.01 $ (0.04) $ 0.06 $ 0.04
Weighted average number of units outstanding, basic and diluted 30,122,928 30,122,928 30,122,928 26,607,324
v2.3.0.11
Condensed Consolidated Statements of Partners' Capital and Comprehensive Income (Loss) (USD $)
Total
USD ($)
General Partner
USD ($)
Number of Units
Beneficial Unit Certificate Holders
USD ($)
Unallocated Deficit of Consolidated VIEs
USD ($)
Noncontrolling Interest
USD ($)
Accumulated Other Comprehensive Income (Loss)
USD ($)
Balance at Dec. 31, 2009 $ 98,600,740 $ 271,051   $ 130,482,881 $ (32,215,697) $ 62,505 $ (11,009,231)
Partners' Capital Account, Units at Dec. 31, 2009     21,842,928        
Sale of Beneficial Unit Certificates, Units     8,280,000        
Sale of Beneficial Unit Certificates 41,591,763     41,591,763      
Deconsolidation of VIEs 3,324,354 15,881   1,572,185 1,736,288   1,588,066
Consolidation of VIEs 2,752,283 27,523   2,724,760     2,752,283
Regular Distribution (8,953,181) (89,532)   (8,863,649)      
Distribution of tier II earnings (1,863,265) (465,816)   (1,397,449)      
Comprehensive Income [Abstract]              
Net Income (loss) (2,038,703) 13,813   1,126,689 (2,434,119) (745,086)  
Unrealized Gain on Securities 2,897,809 28,978   2,868,831     2,897,809
Comprehensive income 859,106            
Comprehensive income (loss) attributable to noncontrolling interest (745,086)            
Comprehensive income attributable to Partnership 1,604,192            
Balance at Sep. 30, 2010 136,311,800 (198,102)   170,106,011 (32,913,528) (682,581) (3,771,073)
Partners' Capital Account, Units at Sep. 30, 2010     30,122,928        
Balance at Dec. 31, 2010 128,021,565 (280,629)   161,389,189 (32,945,669) (141,326) (9,692,233)
Partners' Capital Account, Units at Dec. 31, 2010     30,122,928        
Deconsolidation of VIEs 9,996,003 (7,262)   (718,981) 10,722,246   (726,243)
Distributions paid or accrued (11,473,741) (177,643)   (11,296,098)      
Comprehensive Income [Abstract]              
Net Income (loss) 1,527,844 75,212   1,942,800 (940,034) 449,866 0
Unrealized Gain on Securities 9,162,810 91,628   9,071,182     9,162,810
Comprehensive income 10,690,654            
Comprehensive income (loss) attributable to noncontrolling interest 449,866            
Comprehensive income attributable to Partnership 10,240,788            
Balance at Sep. 30, 2011 $ 137,234,481 $ (298,694)   $ 160,388,092 $ (23,163,457) $ 308,540 $ (1,255,666)
Partners' Capital Account, Units at Sep. 30, 2011     30,122,928        
v2.3.0.11
Condensed Consolidated Statements of Cash Flows (USD $)
9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Cash flows from operating activities:    
Net Income (loss) $ 1,527,844 $ (2,038,703)
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:    
Depreciation and amortization expense 4,171,142 3,868,105
Asset impairment charge - Weatherford 0 2,716,330
Provision for loss on receivables 725,215 0
Non-cash loss on derivatives 1,962,016 564,773
Bond discount accretion (366,013) (362,243)
Gain on asset sold (21,103) 0
Gain on early extinquishment of debt 0 (438,816)
Debt forgiveness (104,988) 0
Changes in operating assets and liabilities, net of effect of acquisitions    
Increase in interest receivable (2,590,871) (2,646,580)
Decrease (increase) in other assets 1,466,137 (2,077,042)
Increase (decrease) in accounts payable and accrued expenses 302,403 (9,961)
Net cash provided (used) by operating activities 7,071,782 (424,137)
Cash flows from investing activities:    
Investments in other assets 0 (1,115,000)
Acquisition of tax-exempt mortgage revenue bonds (20,117,500) (15,867,588)
Acquisition of MF Properties, net of cash acquired (24,779,613) 0
Capital expenditures (7,220,528) (880,626)
Proceeds from assets sold 36,500 0
Increase in restricted cash (154,371) (1,437,735)
Restricted cash - debt collateral (paid) released 230,046 (15,706,900)
Change in restricted cash - Ohio sale 2,684,876 (2,684,876)
Cash released upon foreclosure 2,235,335 0
Proceeds from bond retirement 6,119,573 0
Proceeds from payments on taxable loans 4,528,137 0
Transfer of cash to deconsolidated VIE upon deconsolidation (5,135) (88,949)
Transfer of cash from consolidated VIE upon consolidation 0 1,979
Principal payments received on tax-exempt mortgage revenue bonds 370,688 349,149
Net cash used by investing activities (36,071,992) (37,430,546)
Cash flows from financing activities:    
Distributions paid (11,473,741) (9,770,991)
Decrease in liabilities related to restricted cash 154,371 1,437,735
Proceeds from debt financing 48,233,354 95,810,000
Deferred financing costs (222,307) (3,725,103)
Principal payments on debt financing and mortgage payable (10,557,444) (74,350,571)
Loan extension payment 0 (246,485)
Acquisition of interest rate cap agreements 0 (2,694,600)
Sale of Beneficial Unit Certificates 0 41,591,763
Net cash provided by financing activities 26,134,233 48,051,748
Net decrease (increase) in cash and cash equivalents (2,865,977) 10,197,065
Cash and cash equivalents at beginning of period 13,277,048 17,280,535
Cash and cash equivalents at end of period 10,411,071 27,477,600
Cash paid during the period for interest 2,607,888 2,981,247
Distributions declared but not paid 3,803,399 3,803,400
Cash received for sale of MF Properties eliminated in consolidation (Note 2 and Note 5) 0 16,192,000
Cash paid for purchase of tax exempt bond eliminated in consolidation (Note 4) 0 (18,313,000)
Cash paid for taxable loan eliminated in consolidation (Note 5) 0 (1,236,236)
Capital expenditures financed through payables $ 9,000,099 $ 0
v2.3.0.11
Basis of Presentation
9 Months Ended
Sep. 30, 2011
Basis of Presentation [Abstract]  
Basis of Presentation and Significant Accounting Policies [Text Block]
Basis of Presentation

General
 
America First Tax Exempt Investors, L.P. (the “Partnership”) was formed on April 2, 1998 under the Delaware Revised Uniform Limited Partnership Act for the primary purpose of acquiring, holding, selling and otherwise dealing with a portfolio of federally tax-exempt mortgage revenue bonds which have been issued to provide construction and/or permanent financing of multifamily residential properties.  Interest on these bonds is excludable from gross income for federal income tax purposes.  As a result, most of the income earned by the Partnership is exempt from federal income taxes.  The Partnership may also invest in other types of tax-exempt securities that may or may not be secured by real estate and may make taxable mortgage loans secured by multifamily properties which are financed by tax-exempt mortgage revenue bonds held by the Partnership.  The Partnership generally does not seek to acquire direct interests in real property as long term or permanent investments.  The Partnership may, however, acquire real estate securing its tax-exempt mortgage revenue bonds or taxable mortgage loans through foreclosure in the event of a default.  In addition, the Partnership may acquire interests in multifamily apartment properties (“MF Properties”) in order to position itself for future investments in tax-exempt bonds issued to finance these properties. The Partnership expects to sell its interest in these MF Properties in connection with the future syndication of low income housing tax credits under Section 42 of the Internal Revenue Code ("LIHTCs") or to a tax-exempt organization and to acquire tax-exempt bonds on these properties to provide debt financing to the new owners.
 
Our general partner is America First Capital Associates Limited Partnership Two (“AFCA 2” or “General Partner”).  The general partner of AFCA2 is The Burlington Capital Group LLC ("Burlington"). The Partnership has issued Beneficial Unit Certificates (“BUCs”) representing assigned limited partner interests to investors (“unitholders”).  The Partnership will terminate on December 31, 2050, unless terminated earlier under provisions of its Agreement of Limited Partnership.
 
The consolidated financial statements of the “Company” reported in this Form 10-Q include the assets, liabilities and results of operations of the Partnership, its Consolidated Subsidiaries and three other consolidated entities in which the Partnership does not hold an ownership interest but which own multifamily apartment properties financed with tax-exempt bonds held by the Partnership and which are treated as variable interest entities ("VIEs") of which the Partnership has been determined to be the primary beneficiary (“Consolidated VIEs”).  The Consolidated Subsidiaries of the Partnership consist of:
ATAX TEBS I, LLC, a special purpose entity owned and controlled by the Partnership, created to facilitate the Tax Exempt Bond Securitization (“TEBS”) Financing with Freddie Mac, and
Nine multifamily apartments ("MF Properties") owned by various Partnership subsidiaries. Such subsidiaries hold a 99% limited partner interest in five limited partnerships and 100% member positions in four limited liability companies. Three apartment properties which are subject to a sales agreement and are also reported as MF Properties – Note 2 and Note 5.

Stand alone financial information of the Partnership reported in this Form 10-Q includes only the assets and results of operations of the Partnership and its Consolidated Subsidiaries (hereafter the “Partnership”) without the Consolidated VIEs.  In the Company’s consolidated financial statements, all transactions and accounts between the Partnership, the Consolidated Subsidiaries and the Consolidated VIEs have been eliminated in consolidation.  The Partnership does not believe that the consolidation of VIEs for reporting under accounting principles generally accepted in the United States of America (“GAAP”) affects the Partnership’s status as a partnership for federal income tax purposes or the status of unitholders as partners of the Partnership, the treatment of the tax-exempt bonds on the properties owned by Consolidated VIEs as debt, the tax exempt nature of the interest payments received on bonds secured by the properties owned by Consolidated VIEs or the manner in which the Partnership’s income is reported to unitholders on IRS Form K-1.

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.  The accompanying interim unaudited condensed consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted according to such rules and regulations, although management believes that the disclosures are adequate to make the information presented not misleading. The condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010. These condensed consolidated financial statements and notes have been prepared consistently with the 2010 Form 10-K. In the opinion of management, all adjustments (consisting of normal and recurring accruals) necessary to present fairly the financial position as of September 30, 2011, and the results of operations for the interim periods presented have been made. The results of operations for the interim period are not necessarily indicative of the results to be expected for the full year.
v2.3.0.11
Partnership Income, Expense and Cash Distributions
9 Months Ended
Sep. 30, 2011
Partnership Income, Expenses and Cash Distributions [Abstract]  
Partnership Income Expenses and Cash Distributions [Text Block]
Partnership Income, Expenses and Cash Distributions
 
The Agreement of Limited Partnership of the Partnership contains provisions for the distribution of Net Interest Income, Net Residual Proceeds and Liquidation Proceeds, for the allocation of income or loss from operations and for the allocation of income and loss arising from a repayment, sale or liquidation of investments.  Income and losses will be allocated to each unitholder on a periodic basis, as determined by the General Partner, based on the number of BUCs held by each unitholder as of the last day of the period for which such allocation is to be made. Distributions of Net Interest Income and Net Residual Proceeds will be made to each unitholder of record on the last day of each distribution period based on the number of BUCs held by each unitholder as of such date. For purposes of the Agreement of Limited Partnership, cash distributions, if any, received by the Partnership from its indirect interest in MF Properties (Note 5) will be included in the Partnership’s Interest Income and cash distributions received by the Partnership from the sale of such properties will be included in the Partnership Residual Proceeds.

Cash distributions are currently made on a quarterly basis but may be made on a monthly or semiannual basis at the election of AFCA 2.  On each distribution date, Net Interest Income is distributed 99% to the unitholders and 1% to AFCA 2 and Net Residual Proceeds are distributed 100% to unitholders except that Net Interest Income and Net Residual Proceeds representing contingent interest in an amount equal to 0.9% per annum of the principal amount of the mortgage bonds on a cumulative basis (defined as Net Interest Income (Tier 2) and Net Residual Proceeds (Tier 2), respectively) are distributed 75% to the unitholders and 25% to AFCA 2.

In June 2010, the Company completed a sales transaction whereby four of the MF Properties, Crescent Village, Post Woods (I and II) and Willow Bend apartments in Ohio (the “Ohio Properties”), were sold to three new ownership entities controlled by an unaffiliated not-for-profit entity. The Company acquired 100% of the $18.3 million tax-exempt mortgage revenue bonds issued by the Ohio Housing Finance Agency as part of a plan of financing for the acquisition and rehabilitation of the Ohio Properties. The tax-exempt mortgage bonds secured by the Ohio Properties were acquired by the Company at par and consisted of two series. The Series A bond has a par value of $14.7 million and bears interest at an annual rate of 7.0%. The Series B bond has a par value of $3.6 million and bears interest at an annual interest rate of 10.0%. Both series of bonds mature in June 2050. The Company had previously acquired a 99% interest in the Ohio Properties as part of its strategy of acquiring existing multifamily apartment properties that it expects will be partially financed with new tax-exempt mortgage bonds at the time the properties become eligible for the issuance of additional low-income housing tax credits. In addition to the new tax-exempt bonds acquired by the Company, the plan of financing for the acquisition included other subordinated debt issued by the Company. The new owners ultimately plan to sell limited partnership interests in the properties and syndicate LIHTCs as part of the overall plan of finance. The new owners have not contributed any capital to the transaction and the Company has effectively provided 100% of the capital structure to the new owners as part of the sale transaction. Pursuant to the guidance on property, plant, and equipment for real estate sales, the sale and restructure does not meet the criteria for derecognition of the properties or full accrual accounting for the gain. The guidance requires sufficient equity capital as part of a sales transaction to indicate a commitment from the buyer (typically a minimum of 3 to 5% investment by the new owners). As the buyer has no equity capital in this transaction and the property operations are the current support for the debt service, the Company, in substance, remains the owner for accounting purposes. As such, the Company will continue to consolidate the Ohio Properties. Under the sales agreement, the Ohio properties were sold for a total purchase price of $16.2 million. Cash received by the selling limited partnerships as part of the sale transaction represents a gain on the sale transaction of approximately $1.8 million. The properties will continue to be presented as MF Properties and no gain will be recognized until such time as the transaction meets the criteria for derecognition of the properties and gain recognition can be accounted for as a sale.

In October 2011, the current owners of the Ohio properties subject to the sales agreement entered into a transaction with an unrelated third party investor to sell the Ohio properties limited partnership interests. The initial approximate $336,000 equity contributed does not meet the minimum investment requirement to recognize the sale transaction (Note 12)

The unallocated deficit of the Consolidated VIEs is primarily comprised of the accumulated historical net losses of the Consolidated VIEs since the applicable consolidation date. The unallocated deficit of the VIEs and the VIEs' net losses subsequent to that date are not allocated to the General Partner and unitholders as such activity is not contemplated by, or addressed in, the Agreement of Limited Partnership.

v2.3.0.11
Variable Interest Entities
9 Months Ended
Sep. 30, 2011
Variable Interest Entities [Abstract]  
Variable interest entities [Text Block]
Variable Interest Entities

The Partnership invests in federally tax-exempt mortgage revenue bonds which have been issued to provide construction and/or permanent financing of multifamily residential apartments.  The Partnership owns 100% of these bonds and each bond is secured by a first mortgage on the property.  The Partnership has also made taxable loans to the property owners in certain cases which are secured by second mortgages on these properties.  Although each multifamily property financed with tax-exempt mortgage bonds held by the Partnership is owned by a separate entity in which the Partnership has no equity ownership interest, the debt financing provided by the Partnership creates a variable interest in these ownership entities that may require the Partnership to report the assets, liabilities and results of operations of these entities on a consolidated basis under GAAP.   

On January 1, 2010, the Partnership determined that eight of the entities financed by tax-exempt bonds owned by the Partnership were held by VIEs.  These VIEs are Ashley Square, Bent Tree, Cross Creek, Fairmont Oaks, Iona Lakes, Lake Forest, Residences at DeCordova ("DeCordova") and Residences at Weatherford ("Weatherford"). See below for further discussion on which VIEs are consolidated as of the reporting date.

During the fourth quarter of 2010, the Partnership began foreclosure proceedings related to the DeCordova and Weatherford properties. The foreclosure on these entities, replacing the ownership with a Partnership subsidiary, was completed in February 2011. The bonds are no longer in existence and the properties are reported as part of the MF Property portfolio (Note 5.) These two properties no longer meet the criteria of a variable interest entity.

In June 2011, the Iona Lakes Consolidated VIE merged with and into Agape Iona Lakes Inc ("AIL"), an unaffiliated Florida not-for-profit entity, with AIL being the surviving entity. The merger was a reconsideration event under applicable consolidation guidance and the Partnership determined that AIL does not meet the criteria to be reported as a Consolidated VIE since it is an unrelated not-for-profit organization. For accounting purposes, the Partnership deconsolidated Iona Lakes as of May 31, 2011.

At September 30, 2011, the Partnership determined it is the primary beneficiary of three of the remaining VIEs; Bent Tree, Fairmont Oaks, and Lake Forest and has continued to consolidate these entities.  During 2010, the Partnership reported six properties as Consolidated VIEs: Bent Tree, DeCordova, Fairmont Oaks, Iona Lakes, Lake Forest, and Weatherford.

The Partnership does not hold an equity interest in these VIEs and, therefore, the assets of the VIEs cannot be used to settle the general commitments of the Partnership and the Partnership is not responsible for the commitments and liabilities of the VIEs.  The primary risks to the Partnership associated with these VIEs relate to the entities ability to meet debt service obligations to the Partnership and the valuation of the underlying multifamily apartment property which serves as bond collateral.

The following is a discussion of the significant judgments and assumptions made by the Partnership in determining the primary beneficiary of the VIE and, therefore, whether the Partnership must consolidate the VIE.

Consolidated VIEs

In January 2011, the Partnership determined it was the primary beneficiary of the the following properties: Bent Tree, Fairmont Oaks, Iona Lakes, Lake Forest, DeCordova and Weatherford and reported these as Consolidated VIEs.  Once the foreclosure and merger noted above were completed, only three properties met the primary beneficiary criteria, Bent Tree, Fairmont Oaks, and Lake Forest. The capital structure of each of these remaining VIEs consists of senior debt, subordinated debt and equity capital.  The senior debt is in the form of a tax-exempt multifamily housing mortgage revenue bond and accounts for the majority of each VIE's total capital. As the bondholder, the Partnership is entitled to principal and interest payments and has certain protective rights as established by the bond documents.  The equity ownership of the consolidated VIEs, Bent Tree, Fairmont Oaks, and Lake Forest, is ultimately held by corporations which are owned by four individuals, three of which are related parties.  Additionally, each of these properties is managed by an affiliate of the Partnership, America First Properties Management Company, LLC (“Properties Management”) which is an affiliate of Burlington.

In determining the primary beneficiary of these VIEs, the Partnership considered the activities of the VIE which most significantly impact the VIEs economic performance, who has the power to control such activities, the risks which the entities were designed to create, the variability associated with those risks and the interests which absorb such variability.  The Partnership also considered the related party relationship of the entities involved in the VIEs.  It was determined that the Partnership, as part of the related party group, met both of the primary beneficiary criteria and was the most closely associated with the VIEs and, therefore, was determined to be the primary beneficiary.

Non-Consolidated VIEs

Upon adoption of the revised consolidation guidance effective January 1, 2010, the Company deconsolidated two entities, the Ashley Square and Cross Creek VIEs.  In determining the primary beneficiary of these VIEs, the Partnership considered the activities of each VIE which most significantly impact the VIEs' economic performance, who has the power to control such activities, the risks which the entities were designed to create, the variability associated with those risks and the interests which absorb such variability.  The significant activities of the VIE that impact the economic performance of the entity include leasing and maintaining apartments, determining if the property is to be sold, decisions relating to debt refinancing, the selection of or replacement of the property manager and the approval of the operating and capital budgets.  As discussed below, while the capital structures of these VIEs resulted in the Partnership holding a majority of the variable interests in these VIEs, the Partnership determined it does not have the power to direct the activities of these VIEs that most significantly impact the VIEs’ economic performance and, as a result, is not the primary beneficiary of these VIEs.
 
Ashley Square –  Ashley Square Housing Cooperative acquired the ownership of the Ashley Square apartments in December 2008 from Ashley Square LLC through a warranty deed of transfer and an assumption of debt.  This transfer of ownership constitutes a reconsideration event as outlined in the consolidation guidance which triggers a re-evaluation of the holders of variable interests to determine the primary beneficiary of the VIE.  The capital structure of the VIE consists of senior debt, subordinated loans and equity capital.  The senior debt is in the form of tax-exempt mortgage revenue bonds that are 100% owned by the Partnership and account for the majority of the VIE’s total capital.  As the bondholder, the Partnership is entitled to principal and interest payments and has certain protective rights as established by the bond documents.  The VIE is organized as a housing cooperative and the 99% equity owner of this VIE is The Foundation for Affordable Housing (“FAH”), an unaffiliated Nebraska non-profit organization.  Additionally, this property is managed by Properties Management.

Cross Creek –  Cross Creek Apartments Holdings LLC is the owner of the Cross Creek Apartments.  On January 1, 2010, Cross Creek Apartment Holdings LLC entered into a new operating agreement and admitted three new members.  These new members committed approximately $2.2 million of capital payable in three installments including $563,000 on January 1, 2010.  The new operating agreement and admission of new owner members constitutes a reconsideration event as outlined in the consolidation guidance which triggers a re-evaluation of the holders of variable interests to determine the primary beneficiary of the VIE.  The capital structure of the VIE consists of senior debt, subordinated loans and equity capital at risk.  The senior debt is in the form of tax-exempt mortgage revenue bonds that are 100% owned by the Partnership and account for the majority of the VIE’s total capital.  As the bondholder, the Partnership is entitled to principal and interest payments and has certain protective rights as established by the bond documents.  The three newly admitted members of this VIE are each unaffiliated with the Partnership and have contributed significant equity capital to the VIE.  These members collectively control a 99% interest in the VIE.  The other 1% member of this VIE is FAH, which is also unaffiliated with the Partnership.  Additionally, this property is managed by Properties Management.

The following tables presents information regarding the carrying value and classification of the assets held by the Partnership as of September 30, 2011, which constitute a variable interest in Ashley Square and Cross Creek.
 
Balance Sheet Classification
 
 Carrying Value
 
 Maximum Exposure to Loss
Ashley Square Apartments
 
 
 
 
 
Tax Exempt Mortgage Revenue Bond
Bond Investment
 
$
5,296,741

 
$
5,320,000

Property Loan
Other Asset
 
1,190,000

 
6,037,591

 
 
 
$
6,486,741

 
$
11,357,591

Cross Creek Apartments
 
 
 
 
 
Tax Exempt Mortgage Revenue Bond
Bond Investment
 
$
7,668,389

 
$
5,949,988

Property Loans
Other Asset
 
3,477,755

 
3,477,755

 
 
 
$
11,146,144

 
$
9,427,743


The tax exempt mortgage revenue bonds are classified on the balance sheet as available for sale investments and are carried at fair value while property loans are presented on the balance sheet as other assets and are carried at the unpaid principal and interest less any loan loss reserves.  See Footnote 4 for additional information regarding the bonds and Footnote 6 for additional information regarding the property loans.  The maximum exposure to loss for the bonds is equal to the unpaid principal balance as of September 30, 2011.  The difference between the carrying value and the maximum exposure to loss is a function of the fair value of the bond.  The maximum exposure to loss for the property loans is equal to the unpaid principal and interest.  The difference between the carrying value and the maximum exposure is the value of loan loss reserves that have been previously recorded against the outstanding loan balances.

The following tables present the effects of the consolidation of the Consolidated VIEs on the Company’s Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Operations.

Condensed Consolidating Balance Sheets as of September 30, 2011 and December 31, 2010:
 
 
 
 Partnership as of September 30, 2011
 
 Consolidated VIEs as of September 30, 2011
 
 Consolidation -Elimination as of September 30, 2011
 
 Total as of September 30, 2011
Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
10,343,765

 
$
67,306

 
$

 
$
10,411,071

Restricted cash
 
15,606,940

 
1,246,145

 

 
16,853,085

Interest receivable
 
12,676,273

 

 
(4,113,987
)
 
8,562,286

Tax-exempt mortgage revenue bonds held in trust, at fair value
 
115,122,928

 

 
(23,467,946
)
 
91,654,982

Tax-exempt mortgage revenue bonds, at fair value
 
47,435,630

 

 

 
47,435,630

Real estate assets:
 
 
 
 
 
 
 
 
Land
 
10,196,341

 
3,250,044

 

 
13,446,385

Buildings and improvements
 
82,927,536

 
31,486,637

 

 
114,414,173

Real estate assets before accumulated depreciation
 
93,123,877

 
34,736,681

 

 
127,860,558

Accumulated depreciation
 
(7,593,478
)
 
(11,987,242
)
 

 
(19,580,720
)
Net real estate assets
 
85,530,399

 
22,749,439

 

 
108,279,838

Other assets
 
24,604,982

 
664,997

 
(11,057,263
)
 
14,212,716

Total Assets
 
$
311,320,917

 
$
24,727,887

 
$
(38,639,196
)
 
$
297,409,608

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Accounts payable, accrued expenses and other liabilities
 
$
2,447,560

 
$
24,364,235

 
$
(23,294,959
)
 
$
3,516,836

Distribution payable
 
3,803,399

 

 

 
3,803,399

Debt financing
 
109,187,000

 

 

 
109,187,000

Mortgages payable
 
43,667,892

 
24,466,000

 
(24,466,000
)
 
43,667,892

Total Liabilities
 
159,105,851

 
48,830,235

 
(47,760,959
)
 
160,175,127

Partners' Capital
 
 
 
 
 
 
 
 
General Partner
 
(298,694
)
 

 

 
(298,694
)
Beneficial Unit Certificate holders
 
152,205,220

 

 
8,182,872

 
160,388,092

Unallocated deficit of Consolidated VIEs
 

 
(24,102,348
)
 
938,891

 
(23,163,457
)
Total Partners' Capital
 
151,906,526

 
(24,102,348
)
 
9,121,763

 
136,925,941

Noncontrolling interest
 
308,540

 

 

 
308,540

Total Capital
 
152,215,066

 
(24,102,348
)
 
9,121,763

 
137,234,481

Total Liabilities and Partners' Capital
 
$
311,320,917

 
$
24,727,887

 
$
(38,639,196
)
 
$
297,409,608

 

 
 
 Partnership as of December 31, 2010
 
 Consolidated VIEs as of December 31, 2010
 
 Consolidation -Elimination as of December 31, 2010
 
 Total as of December 31, 2010
Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
13,095,306

 
$
181,742

 
$

 
$
13,277,048

Restricted cash
 
21,259,931

 
3,992,825

 

 
25,252,756

Interest receivable
 
10,154,676

 

 
(5,484,494
)
 
4,670,182

Tax-exempt mortgage revenue bonds held in trust, at fair value
 
95,400,690

 

 
(21,949,211
)
 
73,451,479

Tax-exempt mortgage revenue bonds, at fair value
 
47,956,608

 

 
(20,841,444
)
 
27,115,164

Real estate assets:
 
 
 
 
 
 
 
 
Land
 
6,736,351

 
6,210,480

 

 
12,946,831

Buildings and improvements
 
37,780,446

 
54,022,248

 

 
91,802,694

Real estate assets before accumulated depreciation
 
44,516,797

 
60,232,728

 

 
104,749,525

Accumulated depreciation
 
(5,229,598
)
 
(18,237,507
)
 

 
(23,467,105
)
Net real estate assets
 
39,287,199

 
41,995,221

 

 
81,282,420

Other assets
 
33,078,415

 
1,334,439

 
(17,854,654
)
 
16,558,200

Total Assets
 
$
260,232,825

 
$
47,504,227

 
$
(66,129,803
)
 
$
241,607,249

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Accounts payable, accrued expenses and other liabilities
 
$
1,580,642

 
$
39,069,063

 
$
(37,121,402
)
 
$
3,528,303

Distribution payable
 
3,803,399

 

 

 
3,803,399

Debt financing
 
95,608,000

 

 

 
95,608,000

Mortgages payable
 
10,645,982

 
50,071,000

 
(50,071,000
)
 
10,645,982

Total Liabilities
 
111,638,023

 
89,140,063

 
(87,192,402
)
 
113,585,684

Partners' Capital
 
 
 
 
 
 
 
 
General Partner
 
(280,629
)
 

 

 
(280,629
)
Beneficial Unit Certificate holders
 
149,016,757

 

 
12,372,432

 
161,389,189

Unallocated deficit of Consolidated VIEs
 

 
(41,635,836
)
 
8,690,167

 
(32,945,669
)
Total Partners' Capital
 
148,736,128

 
(41,635,836
)
 
21,062,599

 
128,162,891

Noncontrolling interest
 
(141,326
)
 

 

 
(141,326
)
Total Capital
 
148,594,802

 
(41,635,836
)
 
21,062,599

 
128,021,565

Total Liabilities and Partners' Capital
 
$
260,232,825

 
$
47,504,227

 
$
(66,129,803
)
 
$
241,607,249




Condensed Consolidating Statements of Operations for the three and nine months ended September 30, 2011 and 2010:

 
 Partnership For the Three Months Ended September 30, 2011
 
 Consolidated VIEs For the Three Months Ended September 30, 2011
 
 Consolidation -Elimination For the Three Months Ended September 30, 2011
 
 Total For the Three Months Ended September 30, 2011
Revenues:
 
 
 
 
 
 
 
Property revenues
$
3,110,836

 
$
1,208,534

 
$

 
$
4,319,370

Mortgage revenue bond investment income
2,849,397

 

 
(383,521
)
 
2,465,876

Other income
359,167

 

 

 
359,167

     Total Revenues
6,319,400

 
1,208,534

 
(383,521
)
 
7,144,413

Expenses:
 
 
 
 
 
 
 
Real estate operating (exclusive of items shown below)
1,722,516

 
729,713

 

 
2,452,229

Provision for loss on receivables
14,525

 

 

 
14,525

Depreciation and amortization
1,198,307

 
347,518

 
(9,234
)
 
1,536,591

Interest
2,138,532

 
789,331

 
(789,331
)
 
2,138,532

General and administrative
725,115

 

 

 
725,115

    Total Expenses
5,798,995

 
1,866,562

 
(798,565
)
 
6,866,992

Net income (loss)
520,405

 
(658,028
)
 
415,044

 
277,421

Net income attributable to noncontrolling interest
145,369

 

 

 
145,369

Net income (loss) - America First Tax Exempt Investors, L. P.
$
375,036

 
$
(658,028
)
 
$
415,044

 
$
132,052


 
 Partnership For the Three Months Ended September 30, 2010
 
 Consolidated VIEs For the Three Months Ended September 30, 2010
 
 Consolidation -Elimination For the Three Months Ended September 30, 2010
 
 Total For the Three Months Ended September 30 , 2010
Revenues:
 
 
 
 
 
 
 
Property revenues
$
1,818,580

 
$
1,879,601

 
$

 
$
3,698,181

Mortgage revenue bond investment income
2,895,218

 

 
(884,159
)
 
2,011,059

Other income
112,400

 

 

 
112,400

     Total Revenues
4,826,198

 
1,879,601

 
(884,159
)
 
5,821,640

Expenses:
 
 
 
 
 
 
 
Real estate operating (exclusive of items shown below)
1,002,705

 
1,279,442

 

 
2,282,147

Asset impairment charge - Weatherford
2,716,330

 
2,767,070

 
(2,767,070
)
 
2,716,330

Depreciation and amortization
852,523

 
591,579

 
(13,255
)
 
1,430,847

Interest
1,184,293

 
1,414,558

 
(1,414,558
)
 
1,184,293

General and administrative
637,624

 

 

 
637,624

    Total Expenses
6,393,475

 
6,052,649

 
(4,194,883
)
 
8,251,241

Net income (loss)
(1,567,277
)
 
(4,173,048
)
 
3,310,724

 
(2,429,601
)
Net loss attributable to noncontrolling interest
(221,878
)
 

 

 
(221,878
)
Net income (loss) - America First Tax Exempt Investors, L. P.
$
(1,345,399
)
 
$
(4,173,048
)
 
$
3,310,724

 
$
(2,207,723
)
 
 Partnership For the Nine Months Ended September 30, 2011
 
 Consolidated VIEs For the Nine Months Ended September 30, 2011
 
 Consolidation -Elimination For the Nine Months Ended September 30, 2011
 
 Total For the Nine Months Ended September 30, 2011
Revenues:
 
 
 
 
 
 
 
Property revenues
$
7,698,310

 
$
4,755,337

 
$

 
$
12,453,647

Mortgage revenue bond investment income
8,729,857

 

 
(1,635,308
)
 
7,094,549

Other income
654,490

 
4,133,477

 
(4,028,489
)
 
759,478

     Total Revenues
17,082,657

 
8,888,814

 
(5,663,797
)
 
20,307,674

Expenses:
 
 
 
 
 
 
 
Real estate operating (exclusive of items shown below)
4,366,574

 
2,826,177

 

 
7,192,751

Provision for loss on receivables
725,215

 

 

 
725,215

Depreciation and amortization
2,832,268

 
1,366,577

 
(27,703
)
 
4,171,142

Interest
4,646,590

 
3,243,737

 
(3,243,737
)
 
4,646,590

General and administrative
2,044,132

 

 

 
2,044,132

    Total Expenses
14,614,779

 
7,436,491

 
(3,271,440
)
 
18,779,830

Net income (loss)
2,467,878

 
1,452,323

 
(2,392,357
)
 
1,527,844

Net income attributable to noncontrolling interest
449,866

 

 

 
449,866

Net income (loss) - America First Tax Exempt Investors, L. P.
$
2,018,012

 
$
1,452,323

 
$
(2,392,357
)
 
$
1,077,978


 
 Partnership For the Nine Months Ended September 30, 2010
 
 Consolidated VIEs For the Nine Months Ended September 30, 2010
 
 Consolidation -Elimination For the Nine Months Ended September 30, 2010
 
 Total For the Nine Months Ended September 30, 2010
Revenues:
 
 
 
 
 
 
 
Property revenues
$
5,401,098

 
$
5,547,385

 
$

 
$
10,948,483

Mortgage revenue bond investment income
7,638,730

 

 
(2,608,787
)
 
5,029,943

Gain on early extinguishment of debt
438,816

 

 

 
438,816

Other interest income
335,260

 

 
(10,034
)
 
325,226

     Total Revenues
13,813,904

 
5,547,385

 
(2,618,821
)
 
16,742,468

Expenses:
 
 
 
 
 
 
 
Real estate operating (exclusive of items shown below)
3,750,640

 
3,680,124

 

 
7,430,764

Asset impairment charge - Weatherford
2,716,330

 
2,767,070

 
(2,767,070
)
 
2,716,330

Depreciation and amortization
2,185,546

 
1,723,675

 
(41,116
)
 
3,868,105

Interest
3,029,572

 
4,171,503

 
(4,171,503
)
 
3,029,572

General and administrative
1,736,400

 

 

 
1,736,400

    Total Expenses
13,418,488

 
12,342,372

 
(6,979,689
)
 
18,781,171

Net income (loss)
395,416

 
(6,794,987
)
 
4,360,868

 
(2,038,703
)
Net loss attributable to noncontrolling interest
(745,086
)
 

 

 
(745,086
)
Net income (loss) - America First Tax Exempt Investors, L. P.
$
1,140,502

 
$
(6,794,987
)
 
$
4,360,868

 
$
(1,293,617
)


v2.3.0.11
Investments in Tax-Exempt Bonds
9 Months Ended
Sep. 30, 2011
Investments in Tax Exempt Bonds [Abstract]  
Investments in Debt and Equity Instruments, Cash and Cash Equivalents, Unrealized and Realized Gains (Losses) [Text Block]
Investments in Tax-Exempt Bonds

The tax-exempt mortgage revenue bonds owned by the Company have been issued to provide construction and/or permanent financing of multifamily residential properties and do not include the tax-exempt bonds issued with respect to properties owned by Consolidated VIEs or the Ohio Properties presented as MF Properties (Note 2 and Note 5). Tax-exempt bonds are either held directly by the Company or are held in trusts created in connection with debt financing transactions (Note 7). The Company had the following investments in tax-exempt mortgage revenue bonds as of dates shown:

 
 
September 30, 2011
Description of Tax-Exempt Mortgage Revenue Bonds
 
Cost adjusted for pay-downs
 
Unrealized Gain
 
Unrealized Loss
 
Estimated Fair Value
Ashley Square (1)
 
$
5,320,000

 
$

 
$
(23,259
)
 
$
5,296,741

Autumn Pines (2)
 
12,365,449

 

 
(404,606
)
 
11,960,843

Bella Vista (1)
 
6,650,000

 

 
(531,335
)
 
6,118,665

Bridle Ridge (1)
 
7,815,000

 

 
(618,088
)
 
7,196,912

Brookstone (1)
 
7,433,390

 
983,307

 

 
8,416,697

Cross Creek (1)
 
5,949,988

 
1,718,401

 

 
7,668,389

Lost Creek (1)
 
16,020,471

 
1,639,259

 

 
17,659,730

Runnymede (1)
 
10,720,000

 

 
(643,522
)
 
10,076,478

Southpark (1)
 
12,000,477

 
1,163,548

 

 
13,164,025

Woodlynn Village (1)
 
4,507,000

 

 
(410,498
)
 
4,096,502

Tax-exempt mortgage revenue bonds held in trust
 
$
88,781,775

 
$
5,504,515

 
$
(2,631,308
)
 
$
91,654,982

 
 
 
 
 
 
 
 
 
 
 
September 30, 2011
Description of Tax-Exempt Mortgage Revenue Bonds
 
Cost adjusted for pay-downs
 
Unrealized Gain
 
Unrealized Loss
 
Estimated Fair Value
Briarwood Manor
 
$
4,481,372

 
$
321,975

 
$

 
$
4,803,347

GMF-Madison Tower
 
3,810,000

 
77,305

 

 
3,887,305

GMF-Warren/Tulane
 
11,815,000

 
239,726

 

 
12,054,726

Iona Lakes
 
15,810,000

 

 
(81,738
)
 
15,728,262

Woodland Park
 
15,662,000

 

 
(4,700,010
)
 
10,961,990

Tax-exempt mortgage revenue bonds
 
$
51,578,372

 
$
639,006

 
$
(4,781,748
)
 
$
47,435,630

 
 
 
 
 
 
 
 
 
December 31, 2010
Description of Tax-Exempt Mortgage Revenue Bonds
 
Cost adjusted for pay-downs
 
Unrealized Gains
 
Unrealized Loss
 
Estimated Fair Value
Ashley Square (1)
 
$
5,356,000

 
$

 
$
(643,813
)
 
$
4,712,187

Bella Vista (1)
 
6,695,000

 

 
(1,044,554
)
 
5,650,446

Bridle Ridge (1)
 
7,865,000

 

 
(1,342,509
)
 
6,522,491

Brookstone (1)
 
7,418,019

 
287,507

 

 
7,705,526

Cross Creek (1)
 
5,913,776

 
1,337,352

 

 
7,251,128

Lost Creek (1)
 
15,928,741

 
516,094

 

 
16,444,835

Runnymede (1)
 
10,755,000

 

 
(1,545,327
)
 
9,209,673

Southpark (1)
 
11,940,458

 
264,143

 

 
12,204,601

Woodlynn Village (1)
 
4,522,000

 

 
(771,408
)
 
3,750,592

Tax-exempt mortgage revenue bonds held in trust
 
$
76,393,994

 
$
2,405,096

 
$
(5,347,611
)
 
$
73,451,479

 
 
 
 
 
 
 
 
 
 
 
December 31, 2010
Description of Tax-Exempt Mortgage Revenue Bonds
 
Cost adjusted for pay-downs
 
Unrealized Gain
 
Unrealized Loss
 
Estimated Fair Value
Autumn Pines
 
$
12,334,247

 
$

 
$
(1,244,227
)
 
$
11,090,020

Clarkson College
 
5,836,667

 

 
(821,753
)
 
5,014,914

Woodland Park
 
15,662,000

 

 
(4,651,770
)
 
11,010,230

Tax-exempt mortgage revenue bonds
 
$
33,832,914

 
$

 
$
(6,717,750
)
 
$
27,115,164


(1) Bonds owned by ATAX TEBS I, LLC, Note 7
(2) Bond held by Duetsche Bank in a secured financing transaction, Note 7

Valuation - As all of the Company’s investments in tax-exempt mortgage revenue bonds are classified as available-for-sale securities, they are carried on the balance sheet at their estimated fair values.  Due to the limited market for the tax-exempt bonds, these estimates of fair value do not necessarily represent what the Company would actually receive in a sale of the bonds.  There is no active trading market for the bonds and price quotes for the bonds are not generally available.  As of September 30, 2011, all of the Company’s tax-exempt mortgage revenue bonds were valued using discounted cash flow and yield to maturity analyses performed by management.  Management’s valuation encompasses judgment in its application.  The key assumption in management’s yield to maturity analysis is the range of effective yields on the individual bonds.  At September 30, 2011, the range of effective yields on the individual bonds was 6.3% to 8.8%.  At December 31, 2010, the range of effective yields on the individual bonds was 7.2% to 8.7%. Additionally, the Company calculated the sensitivity of the key assumption used in calculating the fair values of these bonds.  Assuming an immediate 10 percent adverse change in the key assumption, the effective yields on the individual bonds would increase to a range of 6.9% to 9.6% and would result in additional unrealized losses on the bond portfolio of approximately $11.0 million.  This sensitivity analysis is hypothetical and is as of a specific point in time.  The results of the sensitivity analysis may not be indicative of actual changes in fair value and should be used with caution.  If available, the general partner may also consider price quotes on similar bonds or other information from external sources, such as pricing services.  Pricing services, broker quotes and management’s analyses provide indicative pricing only.

Unrealized gains or losses on these tax-exempt bonds are recorded in accumulated other comprehensive income (loss) to reflect changes in their estimated fair values resulting from market conditions and fluctuations in the present value of the expected cash flows from the underlying properties. As of September 30, 2011, the following bond investments have been in an unrealized loss position for greater than twelve months; Ashley Square, Bella Vista, Bridle Ridge, Iona Lakes, Runnymede, Woodlynn Village and Woodland Park.  The Company has reviewed each of its mortgage revenue bonds for impairment. Based upon this evaluation, the current unrealized losses on the bonds are considered to be temporary.  Valuations have improved during the first nine months of 2011. If the credit and capital markets would deteriorate, the Company experiences deterioration in the values of its investment portfolio or if the Company’s intent and ability to hold certain bonds changes, the Company may incur impairments to its investment portfolio which could negatively impact the Company’s financial condition, cash flows, and reported earnings.

In fourth quarter 2011, the Briarwood Manor bond was called and retired for approximately $4.9 million par value plus accrued interest. This transaction resulted in approximately $400,000 gain which will be reported in the fourth quarter. The net redemption proceeds will be used by the Company to retire its $4.0 million term credit with Omaha State Bank.

In June 2011, the Partnership acquired at par a $3.8 million tax-exempt mortgage revenue bond and a $315,000 taxable revenue bond secured by the GMF-Madison Tower Apartments, a 147 unit multifamily apartment complex located in Memphis, Tennessee, which represented 100% of the bond issuance. These bonds were issued for the acquisition of the GMF-Madison Tower Apartments by an affiliate of the Global Ministries Foundation, an unaffiliated not-for-profit entity. The tax-exempt bond carries an annual interest rate of 6.75% and matures on December 1, 2046. The taxable bond carries an annual interest rate of 7.75% and matures on December 1, 2019. The bonds do not provide for contingent interest. The Company has determined that the entity which owns GMF-Madison Tower Apartments is an unrelated not -for-profit which under the accounting guidance is not subject to applying the VIE consolidation guidance. As a result, its financial statements are not consolidated into the consolidated financial statements of the Company.

In June 2011, the Partnership acquired at par a $11.8 million tax-exempt mortgage revenue bond and a $485,000 taxable revenue bond secured by the GMF-Warren/Tulane Apartments, a 448 unit multifamily apartment complex located in Memphis, Tennessee, which represented 100% of the bond issuance. These bonds were issued for the acquisition of the GMF-Warren/Tulane Apartments by an affiliate of the Global Ministries Foundation, an unaffiliated not-for-profit entity. The tax-exempt bond carries an annual interest rate of 6.75% and matures on December 1, 2046. The taxable bond carries an annual interest rate of 6.5% and matures on December 1, 2015. The bonds do not provide for contingent interest. The Company has determined that the entity which owns GMF-Warren/Tulane Apartments is an unrelated not-for-profit which under the accounting guidance is not subject to applying the VIE consolidation guidance. As a result, its financial statements are not consolidated into the consolidated financial statements of the Company.

In May 2011, the outstanding Clarkson College tax-exempt revenue bond held by the Company was retired early for an amount equal to the outstanding principal and base interest plus accrued but unpaid contingent interest. As of March 31, 2011, the Company carried the investment in the Clarkson College bond at an estimated fair market value of approximately $5.1 million. The retirement of the bond resulted in a payment to the Partnership of approximately $6.1 million consisting of approximately $5.8 million in principal, approximately $16,000 of base interest and approximately $308,000 of accrued contingent interest.

In February 2011, the Partnership acquired the tax-exempt mortgage revenue bond for a 100 unit multifamily apartment complex located in Montclair, California known as Briarwood Manor Apartments for approximately $4.5 million which represented 100% of the bond issuance. The bond's approximate outstanding par value is $5.5 million and earns interest at an annual rate of 5.3% with a monthly interest and principal payment and stated maturity date of June 1, 2038. Based on the purchase price discount, the bond will yield approximately 7.0% to the Partnership. The bond does not provide for contingent interest. The Company has determined that the entity which owns Briarwood Manor does not meet the definition of a VIE and, accordingly, its financial statements are not consolidated into the consolidated financial statements of the Company.
 
The Partnership previously identified three tax-exempt mortgage revenue bonds for which certain actions may be necessary to protect the Partnership’s position as a secured bondholder and lender. These bonds are Woodland Park, DeCordova and Weatherford.  The Partnership foreclosed on the bonds secured by DeCordova and Weatherford in February 2011 and one of the Partnership's subsidiaries took full ownership of these two properties. These properties are now classified and presented as MF Properties of the Company as discussed in Note 5.  The following is a discussion of the circumstances related to the Woodland Park property.

Woodland Park. Woodland Park was completed in November 2008, but has not yet reached stabilization which is defined in the bond documents as the generation of a 1.15:1 debt service coverage ratio for six straight months. Additionally, there were insufficient funds on deposit with the bond trustee to make the debt service payment of approximately $452,000 on the bonds which was due on May 3, 2010 and the property owner did not provide additional capital to fund the shortfall. As a result, a payment default on the bonds has occurred. In order to protect its investment, the Partnership has issued a formal notice of default through the bond trustee and has started the foreclosure process. The foreclosure process has been extended and the Partnership cannot estimate when it will be completed. The Partnership continues to enforce its rights as the first lien position. The Partnership believes it will be successful in removing and replacing the general and limited partners of the property owner through foreclosure. This action would allow a new property owner to re-syndicate the LIHTCs associated with this property. If these LIHTCs can be successfully re-syndicated, it will provide additional capital to the project which can be used to support debt service payments on the tax-exempt mortgage revenue bonds until property operations improve to the point that sufficient cash is generated to pay any past due amounts on the bonds as well as ongoing debt service. If the re-syndication of LIHTCs is not successful, the Partnership may pursue other options including making additional taxable loans to the property or completing the foreclosure process and taking direct ownership of the property. The Partnership believes that the most significant issue in the slow lease-up of the property and its failure to achieve stabilization has been the 100% set aside of the rental units for tenants that make less than 60% of the area median income. At the request of the Partnership, in April 2010, the property owner reduced the number of units set aside for affordable tenants to 75% and began leasing 59 units to market rate tenants. Additionally, the property owner has agreed that, if needed to stabilize the property, it would further reduce the units set aside for affordable tenants to 60% thereby making an additional 35 units available to market rate tenants. As of December 31, 2010, the property had 190 units leased out of total available units of 236, or 81% physical occupancy. As of September 30, 2011, occupancy has increased to 216 units, or 92% physical occupancy, and an additional two leases are pending. Based on the level of leasing activity resulting from the change in the mix of affordable and market rate tenants, the Partnership continues to believe that Woodland is capable of reaching stabilization.

The Company periodically, or as changes in circumstances or operations dictate, evaluates its investments for impairment. The value of the underlying property assets is ultimately the most relevant measure of value to support the investment carrying values. Investments tested for impairment include all fixed assets, bond investments and taxable loans made to various properties and other amounts due to the Company. Such evaluation is based on cash flow and discounted cash flow models. The Company concluded that there was no impairment of fixed assets or bond investments as of September 30, 2011 for any of the Company's investments. However, during the second quarter of 2011, this evaluation did determine that a portion of the interest receivable on the Woodland Park bond was impaired and that an allowance for loss should be recorded. An allowance for loss and associated provision for loss of approximately $700,000 was recorded against the the accrued bond interest in the second quarter of 2011. The Company has recorded an additional reserve of approximately $14,500 against the interest income on the Woodland Park bonds in the third quarter of 2011.

In June 2010, the Company acquired all of the $18.3 million tax-exempt mortgage revenue bonds issued by the Ohio Housing Finance Agency in order to provide debt financing for the acquisition and rehabilitation of Crescent Village, Post Woods I, Post Woods II and Willow Bend Apartments in Ohio (the “Ohio Properties”). The tax-exempt mortgage bonds secured by the Ohio Properties were acquired by the Company at par and were issued in two series. The Series A bond has a par value of $14.7 million and bears interest at a fixed annual rate of 7.0%. The Series B bond has a par value of $3.6 million and bears interest at a fixed annual rate of 10.0%. Neither series provides for contingent interest. Each series of bonds matures in June 2050. In connection with the bond financing transaction, ownership of the Ohio Properties was conveyed by the Company to three new ownership entities controlled by an unaffiliated not-for-profit entity. However, because the new ownership entities had no equity capital at the time of purchase and the property operations are the sole source of debt service on the Company's bonds, the Company is required to continue to account for the Ohio Properties as if it is the owner of real estate rather than as a secured lender. As such, the Company continued to consolidate the Ohio Properties on its financial statements as of September 30, 2011 which, among other things, results in the elimination of the bonds in consolidation (Note 2 and Note 5).
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Real Estate Assets
9 Months Ended
Sep. 30, 2011
Real Estate Assets [Abstract]  
Property, Plant and Equipment Disclosure [Text Block]
Real Estate Assets

MF Properties

To facilitate its investment strategy of acquiring additional tax-exempt mortgage bonds secured by MF Properties, the Company has acquired through its various subsidiaries 99% limited partner positions in five limited partnerships and 100% member positions in four limited liability companies that own the MF Properties.  The financial statements of these properties are consolidated with those of the Company.  The general partners of these partnerships are unaffiliated parties and their 1% ownership interest in these limited partnerships is reflected in the Company’s consolidated financial statements as non-controlling interests.  The Company expects each of these MF Properties to eventually be sold either to a not-for-profit entity or in connection with a syndication of LIHTCs. The Company expects to purchase tax-exempt mortgage revenue bonds issued by the new property owners as part of the restructuring.  

Recent Transactions

In the third quarter of 2010, the Company purchased a minority interest equal to 8.7% ownership in 810 Schutte Road LLC ("Eagle Village"), a 511 bed student housing facility located in Evansville, Indiana. The minority interest investment totaled approximately $1.1 million and was presented in other assets. In June 2011, the Partnership acquired the remaining ownership interest in Eagle Village. Approximately $3.1 million of cash on hand plus a conventional mortgage of approximately $8.9 million was used to purchase the remaining ownership. The mortgage loan carries a variable interest rate of one-month LIBOR plus 2.75% but will not be less than 3.5%. On September 30, 2011 this rate was 3.5%. This mortgage matures on June 1, 2013. Eagle Village returned $125,000 to the Company as a preferred return on their investment . The transaction is eliminated upon consolidation. Eagle Village is wholly owned by a subsidiary of the Partnership and was reported as an MF Property. The Partnership plans to operate the property as a student housing facility. Once stabilized as a student housing property, the Company will seek to restructure the ownership and capital structure through the sale of the property to a student housing not-for-profit entity. The Company anticipates it will purchase tax-exempt bonds issued as part of such a restructuring.

In March 2011, the Partnership purchased The Arboretum on Farnam Drive ("Arboretum"), a 145 unit independent senior living facility located in Omaha, Nebraska, for approximately $20.0 million plus transaction expenses of approximately $449,000. The purchase price was funded through a conventional mortgage of $17.5 million and cash on hand. The mortgage payable is with Omaha State Bank, carr