v2.4.0.6
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2011
Jun. 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-K  
Document Period End Date Dec. 31, 2011  
Document Fiscal Year Focus 2011  
Document Fiscal Period Focus FY  
Amendment Flag false  
Entity Common Stock, Units Outstanding 0  
Entity Well-known Seasoned Issuer No  
Entity Voluntary Filers No  
Entity Current Reporting Status Yes  
Entity Public Float   $ 0
v2.4.0.6
Consolidated Balance Sheets (USD $)
Dec. 31, 2011
Dec. 31, 2010
Assets    
Cash and cash equivalents $ 20,213,413 $ 13,277,048
Restricted cash 13,905,367 25,252,756
Interest receivable 6,984,978 4,670,182
Tax-exempt mortgage revenue bonds held in trust, at fair value (Notes 5 & 9) 109,152,787 73,451,479
Tax-exempt mortgage revenue bonds, at fair value (Note 5) 26,542,565 27,115,164
Real estate assets: (Note 6)    
Land 13,601,579 12,946,831
Buildings and improvements 118,042,404 91,802,694
Real estate assets before accumulated depreciation 131,643,983 104,749,525
Accumulated depreciation (20,840,194) (23,467,105)
Net real estate assets 110,803,789 81,282,420
Other assets (Note 7) 10,373,646 16,558,200
Total Assets 297,976,545 241,607,249
Liabilities    
Accounts payable, accrued expenses and other liabilities 3,559,277 3,528,303
Distribution payable 3,911,340 3,803,399
Debt financing (Note 9) 112,673,000 95,608,000
Mortgages payable (Note 10) 46,243,883 10,645,982
Total Liabilities 166,387,500 113,585,684
Commitments and Contingencies (Note 15)      
Partners' Capital    
General Partner (Note 2) (354,006) (280,629)
Beneficial Unit Certificate holders 154,911,228 161,389,189
Unallocated deficit of Consolidated VIEs (23,512,962) (32,945,669)
Total Partners' Capital 131,044,260 128,162,891
Noncontrolling interest (Note 6) 544,785 (141,326)
Total Capital 131,589,045 128,021,565
Total Liabilities and Partners' Capital $ 297,976,545 $ 241,607,249
v2.4.0.6
Consolidated Statements of Operations (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Revenues:      
Property revenues $ 16,884,704 $ 14,692,537 $ 15,667,053
Mortgage revenue bond investment income 9,497,281 6,881,314 4,253,164
Other interest income 485,679 455,622 106,082
Other income 739,585 0 0
Gain on early extinquishment of debt 0 435,395 0
Gain on sale of assets held for sale 0 0 862,865
Total Revenues 27,607,249 22,464,868 20,889,164
Expenses:      
Real estate operating (exclusive of items shown below) 9,859,424 10,016,742 10,127,657
Provision for loan loss 4,242,571 562,385 1,401,731
Provision for loss on receivables 952,700 0 0
Asset impairment charge - Weatherford 0 2,528,852 0
Depreciation and amortization 5,691,639 5,062,817 6,067,330
Interest 5,769,108 2,514,479 4,202,126
General and administrative 2,764,970 2,383,784 1,997,661
Total Expenses 29,280,412 23,069,059 23,796,505
Loss from continuing operations (1,673,163) (604,191) (2,907,341)
Income from discontinued operations (including gain on bond redemption of $26,514,809 in 2009) 0 0 26,734,754
Net (loss) income (1,673,163) (604,191) 23,827,413
Net (income) loss attributable to noncontrolling interest 570,759 (203,831) (11,540)
Net (loss) income - America First Tax Exempt Investors, L.P. (2,243,922) (400,360) 23,838,953
Net income (loss) allocated to:      
General Partner 152,359 28,532 804,223
Limited Partners - Unitholders (1,106,742) 2,037,368 2,538,773
Unallocated gain (loss) of Consolidated Property VIEs (1,289,539) (2,466,260) 20,495,957
Noncontrolling interest $ 570,759 $ (203,831) $ (11,540)
Unitholders' interest in net (loss) income per unit (basic and diluted):      
(Loss) income from continuing operations $ (0.04) $ 0.07 $ 0.15
Income from discontinued operations $ 0.00 $ 0.00 $ 0.00
Net (loss) income, basic and diluted, per unit $ (0.04) $ 0.07 $ 0.15
Weighted average number of units outstanding, basic and diluted 30,122,928 27,493,449 16,661,969
v2.4.0.6
Consolidated Statements of Operations (Parenthetical) (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
gain on bond redemption $ 0 $ 0 $ 26,514,809
v2.4.0.6
Consolidated Statement of Comprehensive Income (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Net (loss) income $ (1,673,163) $ (604,191) $ 23,827,413
Unrealized Gain (Loss) on Securities 10,514,370 (3,023,351) 5,848,576
Comprehensive income (loss) 8,841,207 (3,627,542) 29,675,989
Comprehensive income (loss) attributable to noncontrolling interest 570,759 (203,831) (11,540)
Comprehensive income (loss) - America First Tax Exempt Investors, L.P. $ 8,270,448 $ (3,423,711) $ 29,687,529
v2.4.0.6
Consolidated Statements of Partners' Capital (USD $)
Total
General Partner
Number of Units
Beneficial Unit Certificate Holders
Unallocated Deficit of Consolidated Variable Interest Entities
Noncontrolling Interest
Accumulated Other Comprehensive Income (Loss)
Balance at Dec. 31, 2008 $ 40,895,327 $ 261,785   $ 93,277,480 $ (52,711,654) $ 67,716 $ (16,857,807)
Partners' Capital Account, Units at Dec. 31, 2008     13,512,928        
Sale of Beneficial Unit Certificates, Units     8,330,000        
Sale of Beneficial Unit Certificates 38,887,035     38,887,035      
Noncontrolling Interest Contribution 6,329             6,329   
Limited Partners Interest in Ohio Properties 0            
Distributions paid or accrued              
Regular Distribution, 2010 and 2011 and Distributions paid or accrued, 2009 (10,863,940) (1,460,644)   (9,403,296)      
Reclassification of Tier II Income 0 607,201    (607,201)         
Net income (loss) 23,827,413 804,223   2,538,773 20,495,957 (11,540)  
Unrealized Gain (Loss) on Securities 5,848,576 58,486   5,790,090     5,848,576
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 41,591,576     41,591,576      
Deconsolidation of VIEs - Note 4 3,324,354 15,881   1,572,185 1,736,288   1,588,066
Limited Partners Interest in Ohio Properties 0            
Consolidation of VIEs - Note 4 2,752,283 27,523   2,724,760     2,752,283
Distributions paid or accrued              
Regular Distribution, 2010 and 2011 and Distributions paid or accrued, 2009 (12,756,581) (127,566)   (12,629,015)      
Distribution of tier II earnings - Note 2 (1,863,265) (465,816)   (1,397,449)      
Net income (loss) (604,191) 28,532   2,037,368 (2,466,260) (203,831)  
Unrealized Gain (Loss) on Securities (3,023,351) (30,234)   (2,993,117)     (3,023,351)
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 - Note 4 9,996,003 (7,262)   (718,981) 10,722,246   (726,243)
Limited Partners Interest in Ohio Properties 115,352           115,352  
Distributions paid or accrued              
Regular Distribution, 2010 and 2011 and Distributions paid or accrued, 2009 (14,710,486) (154,969)   (14,555,517)      
Distribution of tier II earnings - Note 2 (674,596) (168,649)   (505,947)      
Net income (loss) (1,673,163) 152,359   (1,106,742) (1,289,539) 570,759  
Unrealized Gain (Loss) on Securities 10,514,370 105,144   10,409,226     10,514,370
Balance at Dec. 31, 2011 $ 131,589,045 $ (354,006)   $ 154,911,228 $ (23,512,962) $ 544,785 $ 95,894
Partners' Capital Account, Units at Dec. 31, 2011     30,122,928        
v2.4.0.6
Consolidated Statements of Cash Flows (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Cash flows from operating activities:      
Net Income (loss) $ (1,673,163) $ (604,191) $ 23,827,413
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:      
Depreciation and amortization expense 5,691,639 5,062,817 6,067,330
Asset impairment charge - Weatherford 0 2,528,852 0
Provision for loan loss 4,242,571 562,385 1,401,731
Provision for loss on receivables 952,700 0 0
Non-cash loss (gain) on derivatives 2,083,521 (571,684) 830,142
Bond discount accretion (481,225) (464,560) 0
Gain on bond retirement and asset sold (463,461) 0 0
Debt forgiveness (104,988) 0 0
Gain on early extinquishment of debt 0 (435,395) 0
Gain on assets held for sale 0 0 (862,865)
Gain on sale of discontinued operations 0 0 (26,514,809)
Changes in operating assets and liabilities, net of effect of acquisitions      
Increase in interest receivable (1,575,860) (2,740,834) (223,980)
Decrease (increase) in other assets 1,137,626 (1,213,333) (3,902,841)
Increase (decrease) in accounts payable and accrued expenses and other liabilities 419,940 76,836 (961,475)
Net cash provided (used) by operating activities 10,229,300 2,200,893 (339,354)
Cash flows from investing activities:      
Acquisition of tax-exempt mortgage revenue bonds (20,917,500) (28,195,363) (19,271,328)
Acquisition of partnerships, net of cash acquired (24,779,613) 0 (7,886,852)
Proceeds from bond retirement 11,067,524 0 0
Principal payments received on tax-exempt and taxable mortgage revenue bonds 1,023,709 547,094 212,667
Principle payments received on taxable loans 4,528,137 0 0
Capital expenditures (14,081,507) (1,641,480) (1,989,065)
Increase in restricted cash (281,275) 36,031 22,977
Proceeds from assets sold 36,500 0 0
Restricted cash - debt collateral released (paid) 6,677,529 (15,409,293) 7,870,980
Change in restricted cash - Ohio sale 2,684,876 (2,684,876) 0
Cash released upon foreclosure 2,235,335 0 0
Transfer of cash to unconsolidated VIE upon deconsolidation (5,135) (88,949) 0
Transfer of cash from consolidated VIE upon consolidation 0 1,979 0
Acquisition of asset held for sale 0 0 (2,649,991)
Proceeds from assets held for sale 0 0 3,512,856
Proceeds from sale of discontinued operations 0 0 32,000,000
Investments in other assets 0 (1,115,000) 0
Net cash used by investing activities (31,811,420) (48,549,857) 11,822,244
Cash flows from financing activities:      
Distributions paid (15,277,141) (13,574,391) (10,538,321)
Decrease (increase) in liabilities related to restricted cash 281,275 (36,031) (22,977)
Proceeds from debt financing 58,599,571 95,810,000 55,500,000
Debt financing costs (338,903) (3,903,782) (550,912)
Principal payments on debt financing and mortgage payable (14,861,669) (74,600,810) (83,993,840)
Sale of LP interests - Ohio Properties 115,352 0 0
Loan extension payment 0 (246,485) 0
Derivative settlements 0 0 (238,980)
Acquisition of interest rate cap agreements 0 (2,694,600) (605,500)
Sale of Beneficial Unit Certificates 0 41,591,576 38,887,035
Net cash provided by financing activities 28,518,485 42,345,477 (1,563,495)
Net increase (decrease) in cash and cash equivalents 6,936,365 (4,003,487) 9,919,395
Cash and cash equivalents at beginning of period 13,277,048 17,280,535 7,361,140
Cash and cash equivalents at end of period 20,213,413 13,277,048 17,280,535
Supplemental Cash Flow Information:      
Cash paid during the period for interest 3,580,562 2,487,421 4,431,099
Distributions declared but not paid 3,911,340 3,803,399 2,757,945
Cash received for sale of MF Properties eliminated in consolidation (Note 6) 0 16,192,000 0
Cash paid for purchase of tax exempt mortgage revenue bond eliminated in consolidation (Note 4) 0 (18,313,000) 0
Cash paid for taxable loan eliminated in consolidation (Note 5) 0 (1,236,236) 0
Capital expenditures financed through notes payables 8,949,253 95,646 51,616
Liabilities assumed in the acquisition of partnerships $ 0 $ 0 $ 6,506,329
v2.4.0.6
Organization
12 Months Ended
Dec. 31, 2011
Organization [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
Organization

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 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 apartments. 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.  Our general partner is America First Capital Associates Limited Partnership Two (“AFCA 2” or “General Partner”).  The Partnership will terminate on December 31, 2050, unless terminated earlier under provisions of its Agreement of Limited Partnership.
v2.4.0.6
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2011
Summary of Significant Accounting Policies [Abstract]  
Significant Accounting Policies [Text Block]
Summary of Significant Accounting Policies

Principles of Consolidation
The consolidated financial statements of the Company reported in this Form 10-K include the financial position and results of operations of the Partnership, the MF Properties owned by various limited partnerships in which one of the Partnership's wholly-owned subsidiaries (each a “Holding Company”) holds a 99% limited partner interest, three entities in which the Partnership does not hold an ownership interest but which own multifamily apartment properties financed with tax-exempt mortgage revenue 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 (the “Consolidated VIEs”), and two bonds secured by the three properties, Crescent Village, Post Woods, and Willow Bend apartments in Ohio (the “Ohio Properties”) subject to a sales agreement (Note 3) which are eliminated in consolidation on the Company's financial statements.

Effective January 1, 2010, the Company adopted new provisions of the consolidation guidance included in Accounting Standards Codification 810, Consolidations, that amended the consolidation guidance applicable to VIEs and the definition of a VIE, and requires enhanced disclosures to provide more information about an enterprise's involvement in a VIE. Under the consolidation guidance, the Partnership must make an evaluation of these entities to determine if they meet the definition of a VIE. Generally, a VIE is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about an entity's activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity's activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights.

The revised accounting standard utilizes a more qualitative approach to evaluating VIEs for consolidation and requires the Partnership 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, the entity that must consolidate the VIE, as the entity that has (1) the power to direct the activities of a VIE that most significantly impact the entity's economic performance and (2) the obligation to absorb losses of the entity that could potentially be significant to the VIE or the right to receive benefits from the entity that could potentially be significant to the VIE.  Upon adoption of this revised accounting standard, the Partnership re-evaluated all of its investments to determine if the property owners are VIEs and, if so, whether the Partnership is the primary beneficiary of the VIE. The guidance also requires ongoing assessments of whether an enterprise is the primary beneficiary of a VIE. As a result, changes to the Consolidated VIEs may occur in the future based on changes in circumstances. The accounting guidance on consolidations is complex and requires significant analysis and judgment. The adoption of these provisions on January 1, 2010, resulted in the deconsolidation of certain entities previously included in the Company's consolidated financial statements. Through the continual reconsideration criteria, effective March 1, 2010, two additional entities determined to be VIEs were consolidated in 2010 and one entity was deconsolidated in 2011 (Note 4).

Stand-alone financial information of the Partnership reported in this Form 10-K includes only the financial position and results of operation of the Partnership and the MF Properties without the consolidation of the VIEs.  In the Company's consolidated financial statements, all transactions and accounts between the Partnership, the MF Properties and the VIEs have been eliminated in consolidation.

The General Partner does not believe that the consolidation of the VIEs for reporting under generally accepted accounting principles in the United States of America (“GAAP”) impacts the Partnership's tax status, amounts reported to Beneficial Unit Certificate (“BUC”) holders on IRS Form K-1, the Partnership's ability to distribute tax-exempt income to unitholders, the current level of quarterly distributions or the tax-exempt status of the underlying mortgage revenue bonds.

Purchase Accounting
Pursuant to the guidance on business combinations, the Company allocates the total acquisition cost of a property acquired to the land, building and leases in existence as of the date of acquisition based on their relative fair values.  The building is valued as if vacant. The estimated valuation of in-place leases is calculated by applying a risk-adjusted discount rate to the projected cash flow deficit at each property during an assumed lease-up period for these properties. This allocated cost is amortized over the average remaining term of the leases and is included in the statement of operations under depreciation and amortization expense.

Cash and Cash Equivalents
Cash and cash equivalents include highly liquid securities and investments in federally tax-exempt securities with maturities of three months or less when purchased.
 
Concentration of Credit Risk
The Company maintains the majority of its unrestricted cash balances at two financial institutions.  The balances insured by the Federal Deposit Insurance Corporation have been temporarily increased to $250,000 at each institution.  At various times the cash balances may exceed the $250,000 limit.  The Company is also exposed to risk on its short-term investments in the event of non-performance by counterparties.  The Company does not anticipate any non-performance.  This risk is minimized significantly by the Company's portfolio being restricted to investment grade securities.

Restricted Cash
Restricted cash, which is legally restricted to use, is comprised of resident security deposits, required maintenance reserves, escrowed funds, restricted compensating balances, and property rehabilitation.  At December 31, 2011, certain of our credit facilities require restricted cash balances as additional collateral. Specifically, the tax-exempt bond securitization ("TEBS") facility, discussed below, required approximately $8.0 million, and two of the mortgages required approximately $2.9 million held as restricted cash balances.
 
Investment in Tax-Exempt Mortgage Revenue Bonds and Other Tax-Exempt Bonds
The Company accounts for its investments in tax-exempt mortgage revenue bonds and other tax-exempt bonds under the guidance for accounting for certain investments in debt and equity securities. The guidance requires investments in securities to be classified as one of the following: 1) held-to-maturity, 2) available-for-sale, or 3) trading securities. All of the Company's investments in tax-exempt mortgage revenue bonds and other tax-exempt bonds are classified as available-for-sale, and are reported at estimated fair value with the net unrealized gains or losses reflected in other comprehensive income. Unrealized gains and losses do not affect the cash flow of the bonds, distributions to unitholders, or the characterization of the tax-exempt interest income of the financial obligation of the underlying collateral.

There is no active trading market for the bonds and price quotes for the bonds are not available.  As a result, the Company bases its estimate of fair value of the tax-exempt mortgage revenue bonds using discounted cash flow and yield to maturity analyses performed by management. This calculation methodology encompasses a significant amount of management judgment in its application.  If available, management may also consider price quotes on similar bonds or other information from external sources, such as pricing services or broker quotes.  Pricing services, broker quotes and management's analyses provide indicative pricing only.

The Company periodically reviews each of its mortgage revenue bonds for impairment.  The Company evaluates whether unrealized losses are considered to be other-than-temporary based on a number of factors including:

The duration and severity of the decline in fair value,
The Company's intent to hold and the likelihood of it being required to sell the security before its value recovers,
Adverse conditions specifically related to the security, its collateral, or both,
Volatility of the fair value of the security,
The likelihood of the borrower being able to make payments,
Failure of the issuer to make scheduled interest or principal payments, and
Recoveries or additional declines in fair value after the balance sheet date.
 
While the Company evaluates all available information, it focuses specifically on whether it has the intent to sell the securities prior to the time that their value recovers or until maturity, whether it is likely that the Company will be required to sell the securities before a recovery in value and whether the Company expects to recover the securities' entire amortized cost basis.  The ability to recover the securities' entire amortized cost basis is based on the likelihood of the issuer being able to make required principal and interest payments on the security.  The primary source of repayment of the amortized cost is the cash flows produced by the property which serve as the collateral for the bonds.  The Company utilizes a discounted cash flow model for the underlying property that serves as collateral on the bond and compares the results of the model to the amortized cost basis of the bond.  These models reflect the cash flows expected to be generated by the underlying properties over a ten year period, including an assumed property sale at the end of year ten, discounted using the effective interest rate on the bonds in accordance with the accounting guidance on other-than- temporary impairment of debt securities.  The inputs to these models require management to make assumptions the most significant of which include:

Revenue and expense projections for the property operations, which result in the estimated net operating income generated over the ten year holding period assumed in the model.  Base year (model year one) assumptions are based on historical financial results and operating budget information.  Base year assumptions are then adjusted for expected changes in occupancy, rental rates and expenses, and
The capitalization rate utilized to estimate the sales proceeds from an assumed property sale in year ten of the model.  The capitalization rate used in the current year models was 7.0% which the Partnership believes represents a reasonable market rate for multifamily properties.

The revenue, expense and resulting net operating income projections which are the basis for the discounted cash flow model are based on judgment.  Operating results from a multifamily residential property depend on the rental and occupancy rates of the property and the level of operating expenses.  Occupancy rates and rents are directly affected by the supply of, and demand for, apartments in the market areas in which a property is located.  This, in turn, is affected by several factors such as local or national economic conditions, the amount of new apartment construction and interest rates on single-family mortgage loans.  In addition, factors such as government regulation, inflation, real estate and other taxes, labor problems and natural disasters can affect the economic operations of a property.

If the discounted cash flows from a property are less than the amortized cost of the bond, we believe that there is a strong indication that the cash flows from the property will not support the payment of the required principal and interest on the bond and, accordingly, the bonds are considered other-than-temporarily impaired.  If an other-than-temporary impairment exists, the amortized cost basis of the mortgage bond is written down to its estimated fair value.  The amount of the write-down representing a credit loss is accounted for as a realized loss on the statement of operations.  The amount of the write-down representing a non-credit loss is recorded to other comprehensive income. The difference between the amortized cost basis and the discounted cash flows using the effective interest rate represents the credit loss. Any residual decline in value would be considered the interest related loss or non-credit loss. The recognition of an other-than-temporary impairment and the potential impairment analysis are subject to a considerable degree of judgment, the results of which when applied under different conditions or assumptions could have a material impact on the financial statements. If the Company experiences deterioration in the values of its investment portfolio, the Company may incur impairments to its investment portfolio which could negatively impact the Company's financial condition, cash flows, and reported earnings.

The Company owns some tax-exempt mortgage revenue bonds which were purchased at a discount. The discount is amortized on an effective yield method and the result is realized in mortgage revenue bond investment income in the current period.

The Company eliminates the tax-exempt mortgage revenue bonds and the associated interest income and interest receivable when it consolidates the underlying real estate collateral in accordance with implementation of the consolidation guidance for variable interest entities.

Variable interest entities (“VIEs”)
When the Partnership invests in a tax-exempt mortgage revenue bond which is collateralized by a multifamily property, the Partnership will evaluate the entity which owns the property financed by the tax-exempt mortgage revenue bond to determine if it is a VIE as defined by the guidance on consolidations. The guidance on consolidations is a complex standard that requires significant analysis and judgment. If it is determined that the entity is a VIE, the Partnership will then evaluate if it is the primary beneficiary of such VIE, by determining whether the Partnership will absorb the majority of the VIE's expected losses, receive a majority of the VIE's residual returns, or both. If the Partnership determines itself to be the primary beneficiary of the VIE, then the assets, liabilities and financial results of the related multifamily property will be consolidated in the Partnership's financial statements. As a result of such consolidation, the tax-exempt or taxable debt financing provided by the Partnership to such consolidated VIE will be eliminated as part of the consolidation process. However, the Partnership will continue to receive interest and principal payments on such debt and these payments will retain their characterization as either tax-exempt or taxable interest for income tax reporting purposes. Since the Partnership has no legal ownership of the VIEs, creditors of the VIEs have no recourse to the Partnership.  
 
Investments in Real Estate
The Company's investments in real estate are carried at cost less accumulated depreciation. Depreciation of real estate is based on the estimated useful life of the related asset, generally 19-40 years on multifamily residential apartment buildings and five to 15 years on capital improvements and is calculated using the straight-line method. Maintenance and repairs are charged to expense as incurred, while improvements, renovations and replacements are capitalized.

Management reviews each property for impairment at least annually and whenever events or changes in circumstances indicate that the carrying value of a property may not be recoverable. The review of recoverability is based upon comparing the net book value of each real estate property to the sum of its estimated undiscounted future cash flows. If impairment exists due to the inability to recover the carrying value of a property, an impairment loss is recorded to the extent that the carrying value of the property exceeds its estimated fair value.

In October 2010, the Texas Department of Housing and Community Affairs (“TDHCA”) issued a Notice of Termination of Tax Credit Assistance Program (“TCAP”) Funding to the General Partner of Residences at Weatherford. Together with the General Partner, the Company unsuccessfully appealed the termination. Based on the termination notice, the Company determined that the property fixed assets of Residences at Weatherford and the associated tax-exempt mortgage revenue bond which is eliminated in consolidation were impaired. As of December 31, 2010, the property fixed assets, consisting of land and land improvements, and the associated tax-exempt mortgage revenue bond owned by the Partnership have been written down to estimated fair value. The resulting impairment charge of approximately $2.7 million is attributable to the unitholders. In February 2011, the Company foreclosed on the current ownership and has begun construction on the Weatherford property (Note 6). There were no real estate impairment charges recognized in the years ended December 31, 2011 and 2009.
 
Property Loans
In addition to the tax-exempt mortgage revenue bonds held by the Company, loans have been made to the owners of the some of the properties which secure the bonds.  The repayment of these loans is dependent largely on the value of the property or its cash flows which collateralizes the loan.  The Company periodically evaluates these loans for potential losses by estimating the fair value of the property which collateralizes the loans and comparing the fair value to the outstanding tax-exempt mortgage revenue bonds plus any property loans.  The Company utilizes the discounted cash flow model discussed above except that in estimating a property fair value we evaluate a number of different DCF models that contain varying assumptions.   The various models may assume multiple revenue and expense scenarios, various capitalization rates and multiple discount rates.  The Company may also consider other information such as independent appraisals in estimating a property fair value.

If the estimated fair value of the property after deducting the amortized cost basis of the senior tax-exempt mortgage revenue bond exceeds the principal balance of the property loan then no potential loss is indicated and no allowance for loan loss is recorded.  If a potential loss is indicated, an allowance for loan loss is recorded against the outstanding loan amount and a loss is realized.  The determination of the need for an allowance for loan loss is subject to considerable judgment. For the years ended December 31, 2011, 2010 and 2009, the Company recognized a provision for loan losses of approximately $4.2 million, $562,000 and $1.4 million, respectively (Note 7).
  
Accounting for TEBS and TOB Financing Arrangements
The Company has evaluated the accounting guidance in regard to the TEBS and TOB Financing arrangements (Note 9) and has determined that the securitization transactions do not meet the accounting criteria for a sale or transfer of financial assets and will, therefore, be accounted for as a secured financing transactions. More specifically, the guidance on transfers and servicing sets forth the conditions that must be met to de-recognize a transferred financial asset. This guidance provides, in part, that the transferor has surrendered control over transferred assets if and only if the transferor does not maintain effective control over the transferred assets through any of the following:

1.
An agreement that both entitles and obligates the transferor to repurchase or redeem them before their maturity,
2.
The ability to unilaterally cause the holder to return specific assets, other than through a cleanup call, or
3.
An agreement that permits the transferee to require the transferor to repurchase the transferred financial assets at a price that is so favorable to the transferee that it is probable that the transferee will require the transferor to repurchase them.

The TEBS Financing agreements contain certain provisions that allow the Company to (1) cause the return of certain individual bonds under defined circumstances, (2) cause the return of all of the bonds by electing an Optional Series Pool Release or (3) cause the return of any defaulted bonds. The Optional Series Pool Release is defined in the agreements as two specific dates, September 15, 2017, or September 15, 2020, on which the Company has the option to repurchase all of the securitized bonds. Given these terms, the Company has concluded that the condition in item 2 above is present in the agreements and, therefore, effective control over the transferred assets has not occurred. As effective control has not been transferred the transaction does not meet the conditions to de-recognize the assets resulting in the TEBS Financing being presented on the Company's consolidated financial statements as a secured financing. The TOB Financing agreements contain certain provisions that allow the Company to call the bonds held in the TOB Trusts through their ownership of the residual participating interests ("LIFERS") so effective control has not been transferred resulting in the TOB Financings being presented on the Company's consolidated financial statements as a secured financing.

In addition to evaluating the TEBS Financing as a sale or transfer of financial assets, we have evaluated the securitization trust associated with the TEBS Financing (the “TEBS Trust”) under the provisions of consolidation guidance. As part of the TEBS Financing, certain bond assets of the Partnership were securitized into the TEBS Trust with Freddie Mac. The TEBS Trust then issued Class A and B TEBS Certificates. Other bond assets of the Partnership were securitized into the TOB Trust with Deutsche Bank (“DB”). The TOB trustee then issued senior floating-rate participating interests ("SPEARS") and LIFERS. The Partnership has determined that the TEBS Trust is a VIE and the Class B Certificates owned by the Partnership create a variable interest in the TEBS Trust. It was also determined that the TOB Trusts are a VIE and the LIFERS owned by the Partnership create a variable interest entity in the TOB Trusts.

In determining the primary beneficiary of the TEBS Trust and TOB Trusts, the Partnership considered the activities of each of the VIEs which most significantly impact the VIE's economic performance, who has the power to control such activities, the risks which the entity was designed to create, the variability associated with those risks and the interests which absorb such variability. The Partnership has retained the right, pursuant to the TEBS Financing agreements, to either substitute or reacquire some or all of the securitized bonds at various future dates and under various circumstances. As a result, the Partnership determined it had retained a controlling financial interest in the TEBS Trust because such actions effectively provide the Partnership with the ability to control decisions pertaining to the VIE's management of interest rate and credit risk. While in the TEBS Trust, the bond assets may only be used to settle obligations of the trust and the liabilities of the trust do not provide the Class A certificate holders with recourse to the general credit of the Partnership. The Partnership also determined it was the primary beneficiary of the TOB Trusts as it has the right to call the bonds within the trusts. The Partnership also considered the related party relationship of the entities involved in the VIE. It was determined that the Partnership met both of the primary beneficiary criteria and was the most closely associated with the VIE and, therefore, was determined to be the primary beneficiary under these financing arrangements.

Given these accounting determinations, the TEBS Financing and the associated TEBS Trust are presented as a secured financing within the consolidated financial statements. The TOB Financings and associated TOB trusts are also presented as a secured financing within the consolidated financial statements.
 
Deferred Financing Costs
Debt financing costs are capitalized and amortized on a straight-line basis over the stated maturity of the related debt financing agreement, which approximates the effective interest method. Bond issuance costs are capitalized and amortized on a straight-line basis over the stated maturity of the related tax-exempt mortgage revenue bonds, which approximates the effective interest method.  As of December 31, 2011 and 2010, debt financing costs and bond issuance costs of $5.2 million and $4.9 million, respectively, were included in other assets. These costs are reduced on the balance sheet by the accumulated amortization of approximately $1.6 million and $932,000 as of December 31, 2011 and 2010, respectively.

Comprehensive Income (Loss)
In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220), requiring entities to present net income (loss) and other comprehensive income (loss) in either a single continuous statement or in two separate, but consecutive, statements of net income (loss) and other comprehensive income (loss). ASU No. 2011-05 is effective for statements issued by the Company after January 1, 2012. In December 2011, the FASB Issued ASU 2011, 12, Comprehensive Income, which defers certain portions of ASU 2011-5 and indefinitely deferred the requirement to present classification adjustments out of accumulated other comprehensive income by component. The Company early adopted the provisions of ASU No. 2011-05 and ASU No. 2011-12 and accordingly all previous periods have been retrospectively presented.

Income Taxes
No provision has been made for income taxes because the unitholders are required to report their share of the Partnership's taxable income for federal and state income tax purposes.  Certain of the Consolidated VIEs and wholly-owned subsidiaries of the Partnership are corporations that are subject to federal and state income taxes.  At December 31, 2011 and 2010, the Company evaluated whether it was more likely than not that any deferred tax assets would be realized.  The Company has recorded a full valuation allowance of approximately $9.6 million and $13.9 million at December 31, 2011 and 2010, respectively, against the deferred tax assets created at these entities by timing differences because the realization of these future benefits is not more likely than not.

Revenue Recognition on Investments in Tax-Exempt Mortgage Revenue Bonds
The interest income received by the Partnership from its tax-exempt mortgage revenue bonds is dependent upon the net cash flow of the underlying properties. Base interest income on fully performing tax-exempt mortgage revenue bonds is recognized as it is earned. Base interest income on tax-exempt mortgage revenue bonds not fully performing is recognized as it is received. Past due base interest on tax-exempt mortgage revenue bonds, which are or were previously not fully performing, is recognized as it is received. The Partnership reinstates the accrual of base interest once the tax-exempt mortgage revenue bond's ability to perform is adequately demonstrated. Contingent interest income, which is only received by the Partnership if the property financed by a tax-exempt mortgage revenue bond that contains a contingent interest provision generates excess available cash flow as set forth in each bond, is recognized when realized or realizable. Past due base interest on tax-exempt mortgage revenue bonds, which are or were previously not fully performing, is recognized when realized or realizable. The Company reinstates the accrual of base interest once the tax-exempt mortgage revenue bond's ability to perform is adequately demonstrated. As of December 31, 2011 and 2010, the Company's tax-exempt mortgage revenue bonds were fully performing as to their base interest with the exception of the Woodland Park bond (Note 5).

Revenue Recognition on Investments in Real Estate
The Partnership's Consolidated VIEs and the MF Properties (Note 6) are lessors of multifamily rental units under leases with terms of one year or less. Rental revenue is recognized, net of rental concessions, on a straight-line method over the related lease term.
 
Derivative Instruments and Hedging Activities
The Company accounts for its derivative and hedging activities in accordance with the guidance on Derivatives and Hedging. The guidance on Derivatives and Hedging requires the recognition of all derivative instruments as assets or liabilities in the Company's consolidated balance sheets and measurement of these instruments at fair value. The accounting treatment is dependent upon whether or not a derivative instrument is designated as a hedge and, if so, the type of hedge.  The Company's interest rate derivative agreements do not have a specific hedge designation under the guidance on derivatives and hedging, and therefore changes in fair value are recognized in the consolidated statements of operations as interest expense.  The Company is exposed to loss should a counterparty to its derivative instruments default.  The Company does not anticipate non-performance by any counterparty.  The fair value of the interest rate derivative agreements is determined based upon current price quotes by recognized dealers.

Net Income per BUC
Net income per BUC has been calculated based on the weighted average number of BUCs outstanding during each year presented. The Partnership has no dilutive equity securities and, therefore, basic net income per BUC is the same as diluted net income per BUC.  The following table provides a reconciliation of net income per BUC holder:

 
 
 
Years Ended December 31,
 
 
 
2011
 
2010
 
2009
Calculation of unitholders' interest in (loss) income from continuing operations:
 
 
 
 
 
 

 
Loss from continuing operations
 
$
(1,673,163
)
 
$
(604,191
)
 
$
(2,907,341
)
 
Less: general partners' interest in income
 
152,359

 
28,532

 
804,223

 
Unallocated loss related to variable interest entities
 
(1,289,539
)
 
(2,466,260
)
 
(6,238,797
)
 
Noncontrolling interest
 
570,759

 
(203,831
)
 
(11,540
)
 
Unitholders' interest in (loss) income from continuing operations
 
$
(1,106,742
)
 
$
2,037,368

 
$
2,538,773

Calculation of unitholders' interest in income (loss) from discontinued operations:
 
 
 
 
 
 
 
Income from discontinued operations
 
$

 
$

 
$
26,734,754

 
Less: general partners' interest in income
 

 

 

 
Unallocated income related to variable interest entities
 

 

 
26,734,754

 
Unitholders' interest in discontinued operations
 
$

 
$

 
$

Calculation of unitholders' interest in net income (loss)
 
 
 
 
 
 
 
Net (loss) income
 
$
(1,673,163
)
 
$
(604,191
)
 
$
23,827,413

 
Less general partners' interest in net income
 
152,359

 
28,532

 
804,223

 
Unallocated (loss) income related to variable interest entities
 
(1,289,539
)
 
(2,466,260
)
 
20,495,957

 
Noncontrolling interest
 
570,759

 
(203,831
)
 
(11,540
)
 
Unitholders' interest in net (loss) income
 
$
(1,106,742
)
 
$
2,037,368

 
$
2,538,773

 
 
 
 
 
 
 
Weighted average number of units outstanding, (basic and diluted)
 
30,122,928

 
27,493,449

 
16,661,969

Unitholders' interest in net income per BUC (basic and diluted):
 
 
 
 
 
 
 
(Loss) income from continuing operations
 
$
(0.04
)
 
$
0.07

 
$
0.15

 
Income from discontinued operations
 

 

 

 
Net (loss) income
 
$
(0.04
)
 
$
0.07

 
$
0.15


Use of estimates in preparation of consolidated financial statements
The preparation of the accompanying consolidated 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The most significant estimates and assumptions include those used in determining investment valuation, investment impairments, impairment of property assets, and allowance for loan losses.
v2.4.0.6
Partnership Income, Expense and Cash Distributions
12 Months Ended
Dec. 31, 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 the Investment in MF Properties (Note 6) 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.
 
The unallocated deficit of the Consolidated VIEs is primarily comprised of the accumulated historical net losses of the Consolidated VIEs as of the date of the implementation of the guidance on consolidations. The unallocated deficit of the Consolidated VIEs and the Consolidated 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.

The distributions paid or accrued per BUC during the fiscal years ended December 31, 2011, 2010, and 2009 were as follows:

 
 
For the
Year Ended
 
For the
Year Ended
 
For the
Year Ended
 
 
December 31, 2011

 
December 31, 2010

 
December 31, 2009

Cash Distributions
 
0.5000

 
0.5000

 
0.5100

Special Distribution
 

 

 
0.0350

 
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 revenue 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 LIHTCs. In addition to the new tax-exempt mortgage revenue bonds acquired by the Company, the plan of financing for the acquisition included other subordinated debt issued by the Company. At the time of acquistion, the new owners had not contributed any capital to the transaction and the Company effectively provided 100% of the capital structure to the new owners as part of the sale transaction. Pursuant to accounting guidance for property, plant, and equipment - 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 at risk 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). 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 which has been deferred by the Company.

In October 2011, the three limited partnerships that own the Ohio Properties admitted two entities that are affiliates of Boston Capital (the “BC Partners”) as new limited partners as part of a syndication of LIHTCs on the Ohio Properties. The BC Partners have agreed to contribute approximately $6.7 million to the equity of these limited partnerships, subject to the Ohio Properties meeting certain debt service coverage ratios specified in the applicable limited partnership agreements. As of December 31, 2011, the Ohio Properties had not yet achieved these debt service coverage ratios and the BC Partners had not contributed a sufficient amount of additional capital to these limited partnerships to allow the Company to deconsolidate the Ohio Properties. Accordingly, the Company will continue to report each Ohio Property as an MF Property, and no gain from the 2010 sale of such Ohio Property will be recognized by the Company, until the Ohio Property achieves specified debt service coverage ratios and the BC Partners have contributed their additional capital to the limited partnership owning the Ohio Property. The Company expects that each of the Ohio Properties will achieve the debt service coverage ratios so that the BC Partners will fully fund their capital commitments during 2012. As that occurs, each Ohio Properties will cease to be reported as an MF Property and the Company will recognize the gain for the 2010 sale of the Ohio Property. After that time, the Company will report the tax-exempt mortgage bonds on such Ohio Property as an asset and will report the related interest income on the bond.

In connection with the BC Partners transaction, the Company entered into guarantee agreements with the BC Partners under which the Company has guaranteed certain obligations of the general partner of these limited partnerships, including an obligation to repurchase the interests of the BC Partners if certain “repurchase events” occur. A repurchase event is defined as any one of a number of events mainly focused on the completion of the property rehabilitation, property rent stabilization, the delivery of LIHTCs, tax credit recapture and foreclosure. Even if a repurchase event should occur after the $7.8 million of equity has been contributed, 25% of the BC contributed capital would remain as equity in the Ohio Properties and thus BC, a third party, would have sufficient equity in the Ohio Properties for the Company to recognize the sale discussed above.

No amount has been accrued for this contingent liability because the likelihood of a repurchase event is remote (Note 15).
v2.4.0.6
Variable Interest Entities
12 Months Ended
Dec. 31, 2011
Variable Interest Entities [Abstract]  
Variable interest entities [Text Block]
Variable Interest Entities

Although each multifamily property financed with tax-exempt mortgage revenue 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.   Under consolidation guidance, the Partnership must make an evaluation of these entities to determine if they meet the definition of a VIE. 

At December 31, 2010, the Partnership determined that eight of the entities financed by tax-exempt mortgage revenue bonds owned by the Partnership were held by VIEs.  These VIEs were Ashley Square, Bent Tree, Cross Creek, Fairmont Oaks, Iona Lakes, Lake Forest, Residences at DeCordova ("DeCordova") and Residences at Weatherford ("Weatherford"). The Partnership then determined that it was the primary beneficiary of six of these VIEs; Bent Tree, Fairmont Oaks, Iona Lakes, Lake Forest, DeCordova and Weatherford and reported these six properties as Consolidated VIEs during 2010. In February 2011, the Partnership foreclosed on the bonds secured by the DeCordova and Weatherford properties and took direct ownership. As such, these entities are no longer reported as Consolidated VIEs but are reported as MF Properties. In June 2011, the ownership of Iona Lakes became a not-for-profit entity and Iona Lakes ceased to be reported as a Consolidated VIE. At December 31, 2011, the Partnership determined that five of the entities financed by tax-exempt mortgage revenue bonds owned by the Partnership were held by VIEs.  These VIEs were Ashley Square, Bent Tree, Cross Creek, Fairmont Oaks, and Lake Forest. The Partnership then determined that it is the primary beneficiary of three of these VIEs; Bent Tree, Fairmont Oaks, and Lake Forest and has continued to consolidate these entities.  

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

At December 31, 2011, the Partnership determined it is the primary beneficiary of the Bent Tree, Fairmont Oaks, and Lake Forest VIEs. The capital structure of each of these VIEs consists of senior debt, subordinated debt, and equity capital. The senior debt is in the form of a tax-exempt mortgage revenue bond and accounts for the majority of the VIEs' 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 in these entities 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 relationships 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

As a result of 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 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 table presents information regarding the carrying value and classification of the assets held by the Partnership as of December 31, 2011 and 2010, which constitute a variable interest in Ashley Square and Cross Creek.
December 31, 2011
 
Balance Sheet
 
 Carrying
 
 Maximum Exposure
 
Classification
 
 Value
 
 to Loss
Ashley Square Apartments
 
 
 
 
 
Tax Exempt Mortgage Revenue Bond
Bond Investment
 
$
5,308,000

 
$
5,308,000

Property Loan
Other Asset
 
1,190,000

 
6,117,528

 
 
 
$
6,498,000

 
$
11,425,528

 
 
 
 
 
 
Cross Creek Apartments
 
 
 
 
 
Tax Exempt Mortgage Revenue Bond
Bond Investment
 
$
7,785,645

 
$
5,961,478

Property Loans
Other Asset
 
3,564,755

 
3,564,755

 
 
 
$
11,350,400

 
$
9,526,233


December 31, 2010
 
Balance Sheet
 
 Carrying
 
 Maximum Exposure
 
Classification
 
 Value
 
 to Loss
Ashley Square Apartments
 
 
 
 
 
Tax Exempt Mortgage Revenue Bond
Bond Investment
 
4,712,187

 
5,356,000

Property Loan
Other Asset
 
1,190,000

 
5,804,975

 
 
 
$
5,902,187

 
$
11,160,975

 
 
 
 
 
 
Cross Creek Apartments
 
 
 
 
 
Tax Exempt Mortgage Revenue Bond
Bond Investment
 
7,251,128

 
5,913,776

Property Loans
Other Asset
 
3,183,754

 
3,183,754

 
 
 
$
10,434,882

 
$
9,097,530


The following tables provide information about the three VIEs and the six VIEs consolidated at December 31, 2011 and 2010 in the Partnership's financial statements under the provisions of the guidance on consolidations. These schedules also include information on the tax-exempt mortgage revenue bonds owned by the Partnership which are eliminated in consolidation, as of December 31, 2011 and 2010, respectively. In addition to the tax-exempt mortgage revenue bonds detailed below, the Partnership has made taxable loans to these consolidated VIEs of $10.3 million and $18.4 million as of December 31, 2011 and 2010, respectively.
VIEs - December 31, 2011
 
 
 
 
 
 
Base
 
Principal
 
Income
 
 
 
 
Maturity
 
Interest
 
Outstanding at
 
Earned in
Property Name
 
Location
 
Date
 
Rate
 
Dec. 31, 2011
 
2011
Bent Tree Apartments (1)
 
Columbia, SC
 
12/15/2030
 
6.25
%
 
$
7,686,000

 
$
482,203

Fairmont Oaks Apartments (1)
 
Gainsville, FL
 
4/1/2033
 
6.30
%
 
7,520,000

 
475,839

Lake Forest Apartments (1)
 
Daytona Beach, FL
 
12/1/2031
 
6.25
%
 
9,201,000

 
577,813

Total Tax-Exempt Mortgage Bonds
 
 
 
 
 
 
 
$
24,407,000

 
$
1,535,855

(1) Bonds held by ATAX TEBS I, LLC
VIEs - December 31, 2010
 
 
 
 
 
 
Base
 
Principal
 
Income
 
 
 
 
Maturity
 
Interest
 
Outstanding at
 
Earned in
Property Name
 
Location
 
Date
 
Rate
 
Dec. 31, 2010
 
2010
Bent Tree Apartments (1)
 
Columbia, SC
 
12/15/2030
 
6.25
%
 
$
7,748,000

 
$
698,163

Fairmont Oaks Apartments (1)
 
Gainsville, FL
 
4/1/2033
 
6.30
%
 
$
7,592,000

 
$
479,792

Iona Lakes Apartments
 
Ft. Myers, FL
 
4/1/2030
 
6.90
%
 
$
15,895,000

 
$
1,102,534

Lake Forest Apartments (1)
 
Daytona Beach, FL
 
12/1/2031
 
6.25
%
 
$
9,297,000

 
$
654,806

Residences at DeCordova
 
Granbury, TX
 
5/1/2047
 
6.00
%
 
$
4,853,000

 
$
242,650

Residences at Weatherford
 
Weatherford, TX
 
5/1/2047
 
6.00
%
 
$
4,686,000

 
$
164,010

Total Tax-Exempt Mortgage Bonds
 
 
 
 
 
 
 
$
50,071,000

 
$
3,341,955

(1) Bonds held by ATAX TEBS I, LLC

The following tables present the effects of the consolidation of the VIEs on the Company's Consolidated Balance Sheets and Statements of Operations. As discussed above, 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 cash flows from the VIEs do not represent cash flows available to the Partnership.

Consolidating Balance Sheets as of December 31, 2011 and 2010:
 
 
Partnership as of December 31, 2011
 
 Consolidated VIEs as of December 31, 2011
 
 Consolidation -Elimination as of December 31, 2011
 
 Total as of December 31, 2011
Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
20,200,695

 
$
12,718

 
$

 
$
20,213,413

Restricted cash
 
12,968,314

 
937,053

 

 
13,905,367

Interest receivable
 
11,395,266

 

 
(4,410,288
)
 
6,984,978

Tax-exempt mortgage revenue bonds held in trust
 
132,920,723

 

 
(23,767,936
)
 
109,152,787

Tax-exempt mortgage revenue bonds
 
26,542,565

 

 

 
26,542,565

Real estate assets:
 
 
 
 
 
 
 
 
Land
 
10,351,535

 
3,250,044

 

 
13,601,579

Buildings and improvements
 
86,434,411

 
31,607,993

 

 
118,042,404

Real estate assets before accumulated depreciation
 
96,785,946

 
34,858,037

 

 
131,643,983

Accumulated depreciation
 
(8,507,860
)
 
(12,332,334
)
 

 
(20,840,194
)
Net real estate assets
 
88,278,086

 
22,525,703

 

 
110,803,789

Other assets
 
20,385,186

 
839,879

 
(10,851,419
)
 
10,373,646

Total Assets
 
$
312,690,835

 
$
24,315,353

 
$
(39,029,643
)
 
$
297,976,545

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Accounts payable, accrued expenses and other liabilities
 
$
2,584,486

 
$
24,780,781

 
$
(23,805,990
)
 
$
3,559,277

Distribution payable
 
3,911,340

 

 

 
3,911,340

Debt financing
 
112,673,000

 

 

 
112,673,000

Mortgages payable
 
46,243,883

 
24,407,000

 
(24,407,000
)
 
46,243,883

Total Liabilities
 
165,412,709

 
49,187,781

 
(48,212,990
)
 
166,387,500

Partners' Capital
 
 
 
 
 
 
 
 
General Partner
 
(354,006
)
 

 

 
(354,006
)
Beneficial Unit Certificate holders
 
147,087,347

 

 
7,823,881

 
154,911,228

Unallocated deficit of Consolidated VIEs
 

 
(24,872,428
)
 
1,359,466

 
(23,512,962
)
Total Partners' Capital
 
146,733,341

 
(24,872,428
)
 
9,183,347

 
131,044,260

Noncontrolling interest
 
544,785

 

 

 
544,785

Total Capital
 
147,278,126

 
(24,872,428
)
 
9,183,347

 
131,589,045

Total Liabilities and Partners' Capital
 
$
312,690,835

 
$
24,315,353

 
$
(39,029,643
)
 
$
297,976,545

 
 
 
 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
 
95,400,690

 

 
(21,949,211
)
 
73,451,479

Tax-exempt mortgage revenue bonds
 
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




















Consolidating Statements of Operations for the years ended December 31, 2011, 2010 and 2009:

 
 Partnership For the Year Ended December 31, 2011
 
 Consolidated VIEs For the Year Ended December 31, 2011
 
 Consolidation -Elimination For the Year Ended December 31, 2011
 
 Total For the Year Ended December 31, 2011
Revenues:
 
 
 
 
 
 
 
Property revenues
$
10,974,897

 
$
5,909,807

 
$

 
$
16,884,704

Mortgage revenue bond investment income
11,515,237

 

 
(2,017,956
)
 
9,497,281

Other interest income
485,679

 

 

 
485,679

Other income
634,597

 
4,133,477

 
(4,028,489
)
 
739,585

     Total Revenues
23,610,410

 
10,043,284

 
(6,046,445
)
 
27,607,249

Expenses:


 


 


 


Real estate operating (exclusive of items shown below)
6,255,007

 
3,604,417