v2.4.0.8
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2013
Entity Registrant Name AMERICA FIRST Multifamily INVESTORS, L.P.
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, 2013
Document Fiscal Year Focus 2013
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
v2.4.0.8
Consolidated Balance Sheets (USD $)
Dec. 31, 2013
Dec. 31, 2012
Assets [Abstract]    
Cash and cash equivalents $ 11,318,015 $ 30,172,773
Restricted cash 6,845,543 5,471,522
Interest receivable 9,536,515 8,473,360
Available-for-sale Securities, Fair Value Disclosure Held in Trust 216,371,801 99,534,082
Available-for-sale Securities 68,946,370 45,703,294
Public housing capital fund trusts, at fair value 62,056,379 65,389,298
Mortgage backed securities, at fair value 37,845,661 32,121,412
Real estate assets: (Note 6)    
Land and land improvements 11,081,992 11,202,876
Buildings and improvements 111,195,695 93,615,479
Real estate assets before accumulated depreciation 122,277,687 104,818,355
Accumulated depreciation (19,128,753) (19,330,063)
Net real estate assets 103,148,934 85,488,292
Other assets (Note 7) 18,163,814 8,216,295
Assets of discontinued operations 0 32,580,427
Total assets 534,233,032 413,150,755
Liabilities    
Accounts payable, accrued expenses and other liabilities 5,450,694 5,013,947
Distribution payable 6,446,076 5,566,908
Debt financing 257,274,000 177,948,000
Mortgages payable 57,087,320 39,119,507
Bond purchase commitment - fair market value adjustment (Notes 5 & 17) 4,852,177 0
Liabilities of discontinued operations 0 1,531,462
Total Liabilities 331,110,267 229,179,824
Commitments and Contingencies (Note 15)      
Partners' Capital    
General Partner 16,671 (430,087)
Beneficial Unit Certificate holders 223,573,312 207,383,087
Unallocated deficit of Consolidated VIEs (20,455,896) (25,035,808)
Total Partners' Capital 203,134,087 181,917,192
Noncontrolling interest (11,322) 2,053,739
Total Capital 203,122,765 183,970,931
Total Liabilities and Partners' Capital $ 534,233,032 $ 413,150,755
v2.4.0.8
Consolidated Statements of Operations (USD $)
3 Months Ended 12 Months Ended
Dec. 31, 2013
Sep. 30, 2013
Jun. 30, 2013
Mar. 31, 2013
Dec. 31, 2012
Sep. 30, 2012
Jun. 30, 2012
Mar. 31, 2012
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Revenues [Abstract]                      
Property revenues                 $ 16,110,740 $ 12,654,530 $ 10,976,250
Investment income                 22,651,622 11,078,467 9,187,291
Contingent Interest Income                 6,497,160 0 309,990
Interest Income, Operating                 1,772,338 150,882 485,679
Gain on sale and retirement of bonds                 0 680,444 445,257
Other income                 250,000 555,328 294,328
Total Revenues 9,432,691 9,764,177 15,140,583 12,944,409 7,579,754 6,312,905 5,855,843 5,371,149 47,281,860 25,119,651 21,698,795
Expenses [Abstract]                      
Real estate operating (exclusive of items shown below)                 9,574,822 7,877,931 6,758,707
Mortgage Loans on Real Estate, Write-down or Reserve, Amt                 4,557,741 0 0
Provision for loan loss                 168,000 0 4,242,571
Provision for Loan and Lease Losses                 241,698 452,700 952,700
Depreciation and amortization                 6,732,580 4,982,030 3,963,502
Interest expense                 7,235,336 5,530,995 5,441,700
General and administrative                 4,237,245 3,512,233 2,764,970
Total Expenses                 32,747,422 22,355,889 24,124,150
Loss from continuing operations 2,025,413 2,008,848 3,939,119 6,561,058 1,230,959 821,702 176,664 534,437 14,534,438 2,763,762 (2,425,355)
Income (loss) from discontinued operations 0 1,342,498 166,887 1,933,019 218,563 1,526,964 251,601 235,148 3,442,404 2,232,276 752,192
Net (loss) income                 17,976,842 4,996,038 (1,673,163)
Net (income) loss attributable to noncontrolling interest                 261,923 549,194 570,759
Net (loss) income - America First Tax Exempt Investors, L.P. 2,027,074 3,411,259 3,955,160 8,321,426 1,298,797 2,211,567 306,048 630,432 17,714,919 4,446,844 (2,243,922)
Net income (loss) allocated to:                      
General Partner                 1,416,296 691,312 152,359
Limited Partners - Unitholders                 17,414,885 5,278,378 (1,106,742)
Unallocated gain (loss) of Consolidated Property VIEs                 (1,116,262) (1,522,846) (1,289,539)
Noncontrolling interest                 $ 261,923 $ 549,194 $ 570,759
Unitholders' interest in net (loss) income per unit (basic and diluted):                      
(Loss) income from continuing operations $ 0.04 $ 0.05 $ 0.08 $ 0.15 $ 0.04 $ 0.03 $ 0.00 $ 0.02 $ 0.32 $ 0.09 $ (0.06)
Income from discontinued operations $ 0.00 $ 0.03 $ 0.01 $ 0.04 $ 0 $ 0 $ 0.01 $ 0.01 $ 0.08 $ 0.05 $ 0.02
Net (loss) income, basic and diluted, per unit $ 0.04 $ 0.08 $ 0.09 $ 0.19 $ 0.04 $ 0.06 $ 0 $ 0.03 $ 0.40 $ 0.14 $ (0.04)
Weighted average number of units outstanding, basic and diluted                 43,453,476 37,367,600 30,122,928
v2.4.0.8
Consolidated Statements of Operations Parenthetical (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax $ 3,177,183 $ 1,406,608 $ 0
v2.4.0.8
Consolidated Statement of Comprehensive Income (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Net (loss) income $ 17,976,842 $ 4,996,038 $ (1,673,163)
Unrealized Gain (Loss) on Securities (27,062,400) 7,065,487 10,514,370
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax (4,852,177)    
Comprehensive income (loss) allocated to [Abstract]      
Net Income (Loss) Allocated to General Partners 1,416,296 691,312 152,359
Net Income (Loss) Allocated to Limited Partners 17,414,885 5,278,378 (1,106,742)
Unallocated loss of Consolidated VIEs (1,116,262) (1,522,846) (1,289,539)
Net Income (Loss) Attributable to Noncontrolling Interest (261,923) (549,194) (570,759)
Accumulated Other Comprehensive Income (Loss) [Member]
     
Net (loss) income 0    
Unrealized Gain (Loss) on Securities (27,062,400) 7,065,487 10,514,370
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax (4,852,177)    
Comprehensive income (loss) allocated to [Abstract]      
Net Income (Loss) Allocated to General Partners 1,097,150 761,967 257,503
Net Income (Loss) Allocated to Limited Partners (14,180,546) 12,273,210 9,302,484
Unallocated loss of Consolidated VIEs (1,116,262) (1,522,846) (1,289,539)
Net Income (Loss) Attributable to Noncontrolling Interest 261,923 549,194 570,759
Comprehensive income (loss) - America First Tax Exempt Investors, L.P. (13,937,735) 12,061,525 8,841,207
Commitments [Member] | Accumulated Other Comprehensive Income (Loss) [Member]
     
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax $ (4,852,177) $ 0 $ 0
v2.4.0.8
Consolidated Statements of Partners' Capital (USD $)
Total
USD ($)
General Partner
USD ($)
Number of Units
Limited Partner [Member]
USD ($)
Unallocated Deficit of Consolidated Variable Interest Entities
USD ($)
Noncontrolling Interest
USD ($)
Accumulated Other Comprehensive Income (Loss)
USD ($)
Ohio Properties [Member]
USD ($)
Ohio Properties [Member]
General Partner
USD ($)
Ohio Properties [Member]
Limited Partner [Member]
USD ($)
Ohio Properties [Member]
Unallocated Deficit of Consolidated Variable Interest Entities
USD ($)
Ohio Properties [Member]
Noncontrolling Interest
USD ($)
Ohio Properties [Member]
Accumulated Other Comprehensive Income (Loss)
USD ($)
Greens of Pine Glen [Member]
USD ($)
Greens of Pine Glen [Member]
General Partner
USD ($)
Greens of Pine Glen [Member]
Limited Partner [Member]
USD ($)
Greens of Pine Glen [Member]
Noncontrolling Interest
USD ($)
Greens of Pine Glen [Member]
Accumulated Other Comprehensive Income (Loss)
USD ($)
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 0   0 0 115,352 0                      
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 0 0 10,514,370                      
Proceeds from Issuance of Common Stock 0                                  
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                              
Stock Issued During Period, Shares, New Issues     12,650,000                              
Limited Partners Interest in Ohio Properties 959,760 0   0 0 959,760                        
Distributions paid or accrued                                    
Regular Distribution, 2010 and 2011 and Distributions paid or accrued, 2009 (18,011,532) (180,115)   (17,831,417)                            
Distribution of tier II earnings - Note 2 2,631,730 657,933   1,973,797                            
Net income (loss) 4,996,038 (691,312)   (5,278,378) (1,522,846) 549,194                        
Unrealized Gain (Loss) on Securities 7,065,487 70,655   6,994,832     7,065,487                      
Proceeds from Issuance of Common Stock 60,003,863 0   60,003,863                            
Balance at Dec. 31, 2012 183,970,931 (430,087)   207,383,087 (25,035,808) 2,053,739 7,161,381                      
Partners' Capital Account, Units at Dec. 31, 2012     42,772,928                              
Stock Issued During Period, Shares, New Issues     8,280,000                              
Deconsolidation of Discontinued Operations               393,401 14,064 1,392,303 0 (1,012,966) 1,406,367 (1,314,018) 0 0 (1,314,018) 0
Deconsolidation of VIEs - Note 4 5,485,803 (2,104)   (208,267) 5,696,174   (210,370)                      
Available-for-sale Securities, Gross Realized Gain (Loss) (651,849) (6,518)   (645,331) 0   (651,849)                      
Distributions paid or accrued                                    
Regular Distribution, 2010 and 2011 and Distributions paid or accrued, 2009 (23,118,105) (696,641)   (22,421,464) 0 0 0                      
Foreclosure of Available-for-Sale Securities (4,080,734) (40,807)   (4,039,927) 0 0 4,080,734                      
Net income (loss) 17,976,842 1,416,296   17,414,885 (1,116,262) 261,923 0                      
Unrealized Gain (Loss) on Securities (27,062,400) (270,624)   (26,791,776) 0 0 (27,062,400)                      
Proceeds from Issuance of Common Stock 48,213,603     48,213,603                            
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax (4,852,177) (48,522)   (4,803,655)     (4,852,177)                      
Balance at Dec. 31, 2013 $ 203,122,765 $ 16,671   $ 223,573,312 $ (20,455,896) $ (11,322) $ (20,128,314)                      
v2.4.0.8
Consolidated Statements of Cash Flows (USD $)
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Cash flows from operating activities:      
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest $ 17,976,842 $ 4,996,038 $ (1,673,163)
Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:      
Depreciation and amortization expense 6,742,439 6,386,788 5,691,639
Provision for loss on receivables 241,698 452,700 952,700
Provision for loan loss 168,000 0 4,242,571
Non-cash loss (gain) on derivatives 283,610 944,541 2,083,521
Bond discount accretion (332,003) (399,824) (481,225)
Gain on the sale of bonds 0 (680,444) 0
Gain on the sale of discontinued operations (3,177,183) (1,406,608) 0
Contingent interest realized (6,497,160) 0 (309,990)
Mortgage Loans on Real Estate, Write-down or Reserve, Amt 4,557,741 0 0
Gain on bond retirement and asset sold 0 0 (463,461)
Gain on foreclosure 0 0 104,988
Changes in operating assets and liabilities, net of effect of acquisitions      
Increase in interest receivable (2,796,308) (2,442,220) (1,265,870)
(Increase) decrease in other assets (1,925,354) (154,461) 1,137,626
Increase (decrease) in accounts payable and accrued expenses (1,009,598) (214,420) 419,940
Net cash provided (used) by operating activities 14,232,724 7,482,090 10,229,300
Cash flows from investing activities:      
Capital expenditures (13,007,148) (8,029,349) (14,081,507)
Acquisition of mortgage revenue bonds (148,624,000) (28,561,857) (20,917,500)
Proceeds from sale of discontinued operations 22,610,000 10,825,000 0
Investment in bonds due to the sale recognition of discontinued operations (27,778,000) 0 0
Acquisition of partnerships, net of cash acquired 4,064,089 0 0
Principal payments received on taxable loans 0 160,000 4,528,137
Change in restricted cash - Ohio sale 0 0 2,684,876
Change in restricted cash - Greens sale 2,546,363 (2,459,187) 0
Proceeds from sale/redemption of mortgage revenue bonds and mortgage-backed securities (21,935,343) (31,872,522) (11,067,524)
Acquisition of mortgage-backed securities (12,629,888) (37,573,386) 0
Acquisition of taxable bonds (2,918,000) 0 0
Decrease (increase) in restricted cash 94,423 (70,320) (281,275)
Restricted cash - debt collateral released (paid) (3,992,848) 7,247,341 6,677,529
Cash released upon foreclosure 0 0 2,235,335
Acquisition of partnerships, net of cash acquired 0 (5,500,000) (24,779,613)
Acquisition of public housing capital fund trust certificates 0 (65,985,913) 0
Increase in notes receivable (1,603,083) (191,264) 0
Purchase of rate derivative (793,000) 0 0
Land purchasd - held for sale (1,090,000) 0 0
Principal payments received on mortgage revenue bonds 2,764,286 970,298 1,023,709
Proceeds from assets sold 0 0 36,500
Transfer of cash to deconsolidated VIE upon deconsolidation 0 0 (5,135)
Net cash used by investing activities (158,421,463) (97,296,115) (31,811,420)
Cash flows from financing activities:      
Distributions paid (22,238,937) (18,987,693) (15,277,141)
Proceeds from Issuance of Common Stock 48,213,603 60,003,863 0
Proceeds from debt financing 81,490,000 74,110,000 58,599,571
Principal borrowings on mortgages payable 20,697,452 3,769,014 0
Principal borrowing on line of credit 16,065,900 0 0
Principal payments on line of credit (16,065,900) 0 0
Principal payments on debt financing (2,164,000) (8,835,000) (14,675,584)
Principal payments on mortgages payable (372,856) (10,893,390) (186,085)
Decrease in liabilities related to restricted cash (94,423) 70,320 281,275
Debt financing costs (355,585) (264,763) (338,903)
Sale of LP Interests 0 959,761 115,352
Net cash provided by financing activities 125,175,254 99,932,112 28,518,485
Net increase (decrease) in cash and cash equivalents (19,013,485) 10,118,087 6,936,365
Cash and cash equivalents at beginning of period, including cash and cash equivalents of discontinued operations of $126,572, $65,527, and $198,528, respectively 30,331,500 20,213,413  
Cash and cash equivalents at end of period 11,318,015 30,331,500 20,213,413
Supplemental Cash Flow Information:      
Cash paid during the period for interest 6,621,251 4,437,961 3,580,562
Distributions declared but not paid 6,446,077 5,566,908 3,911,340
Supplemental disclosure of non cash activities:      
Capital expenditures financed through accounts and notes payables 1,758,297 2,584,417 8,949,253
Restricted cash released to pay down mortgages payable 2,356,640 0 0
Foreclosure of Woodland Park bond (15,662,000) 0 0
Deconsolidation of the discontinued operations - noncontrolling interest 2,326,984 0 0
Recognition of taxable property loans receivable - discontinued operations 2,086,236 0 0
Cash received for sale of MF Properties eliminated in consolidation 0 7,265,000 0
Cash paid for purchase of tax exempt mortgage revenue bond eliminated in consolidation 0 (9,465,000) 0
Cash paid for taxable loan eliminated in consolidation $ 0 $ (850,000) $ 0
v2.4.0.8
Consolidated Statements of Cash Flows Parenthetical (USD $)
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2010
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents $ 0 $ 158,727 $ 126,572 $ 65,527
v2.4.0.8
Organization
12 Months Ended
Dec. 31, 2013
Organization [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
Organization

America First Multifamily 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 mortgage revenue bonds which have been issued to provide construction and/or permanent financing of multifamily residential apartments. The Partnership expects and believes the interest earned 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.
v2.4.0.8
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2013
Summary of Significant Accounting Policies [Abstract]  
Significant Accounting Policies [Text Block]
Summary of Significant Accounting Policies

Principles of Consolidation
The “Company” refers to the Partnership and the consolidated VIEs (defined below). 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, two entities in which the Partnership does not hold an ownership interest but which own multifamily apartment properties financed with 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”). The Consolidated Subsidiaries of the Partnership consist of:

ATAX TEBS I, LLC, a special purpose entity owned and controlled by the Partnership, created to hold mortgage revenue bonds in order to facilitate the Tax Exempt Bond Securitization (“TEBS”) Financing with Freddie Mac (Note 10).
Nine multifamily apartments ("MF Properties") which are either wholly or majority owned by subsidiaries of the Partnership.

Under the consolidation guidance, the Partnership must make an evaluation of the entities which own the multifamily properties financed with mortgage revenue bonds it holds to determine if these entities 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 guidance 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.

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 income to unitholders which it believes to be tax-exempt, the current level of quarterly distributions or the tax-exempt status of the underlying mortgage revenue bonds.

Acquisition Accounting
Pursuant to the guidance on acquisition accounting, 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 is equal to $250,000 at each institution.  At various times the cash balances exceeded 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, 2013, certain of our credit facilities require restricted cash balances as additional collateral. Specifically, the mortgage revenue bond securitization ("TEBS") financing facility, discussed below, required approximately $727,000, the three tender option bonds ("TOB") trusts ("TOB Trusts") secured by the Public Housing Capital Fund Trust Certificates ("PHC Certificates") financing facilities (“PHC TOB Trusts”) required approximately $400,000, and the TOB Trusts secured by mortgage backed securities ("MBS") financing facilities ("MBS TOB Trusts") required approximately $4.1 million held in restricted cash. There were two of the mortgage payables which required approximately $2.9 million held as restricted cash in 2012 which was released in 2013.
 
Investment in Mortgage Revenue Bonds and Other Mortgage Revenue Bonds
The Company accounts for its investments in mortgage revenue bonds and other mortgage revenue 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 mortgage revenue bonds and other mortgage revenue 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 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 mortgage revenue bonds using discounted cash flow or 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 ranged between 6.25% and 7.25% which the Company believes represents a reasonable range given the current market 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, the Company believes 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 revenue 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 mortgage revenue bonds which were purchased at a discount or premium. The discount or premium on an investment is amortized on an effective yield method and the result is realized in investment income in the current period.

The Company eliminates the 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 mortgage revenue bond which is collateralized by a multifamily property, the Partnership will evaluate the entity which owns the property financed by the 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 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 mortgage revenue bond 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.  

Effective December 1, 2013, the ownership of Lake Forest became a not-for-profit entity, a reconsideration event. As a result of the change in ownership, Lake Forest ceased to be reported as a Consolidated VIE.
 
Investment in Public Housing Capital Fund Trusts Certificates and Mortgage-Backed Securities
The Company accounts for its investments in PHC Certificates and MBS 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 PHC Certificates and MBS investments 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 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 and the estimates of the fair values of the PHC Certificates are based on a yield to maturity analysis which begins with the current market yield rate for a “AAA” rated tax-free municipal bond for a term consistent with the weighted-average life of each of the Public Housing Capital Fund trusts adjusted largely for unobservable inputs the General Partner believes would be used by market participants. Management’s valuation encompasses judgment in its application and pricing as determined by pricing services, when available, is compared to Management's estimates.
The Company periodically reviews each class of PHC Certificates for impairment. The Company evaluates whether a decline in the fair value of a PHC Certificate below its amortized cost is 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,
Downgrade in the security's rating by S&P,
Volatility of the fair value of the security.

The Company values each MBS security based upon prices obtained from a third party pricing service, which are indicative of market activity. The valuation methodology of the Company's third party pricing service incorporates commonly used market pricing methods, incorporates trading activity observed in the market place, and other data inputs. The methodology also considers the underlying characteristics of each security, which are also observable inputs, including: coupon; maturity date; loan age; reset date; collateral type; geography; and prepayment speeds. Management analyzes pricing data received from the third party pricing service by comparing it to valuation information obtained from at least one other third party pricing service and ensuring they are within a tolerable range of difference which the Company estimates as 7.5%. Management also looks at observations of trading activity in the market place when available.
The Company periodically reviews each MBS security for impairment. The Company evaluates whether a decline in the fair value of a security below its amortized cost is other-than-temporary based on a number of factors including the duration and severity of the decline in fair value and the Company's intend and ability to hold the security until its value recovers. Each MBS security has been rated either "AAA" or "AA" by either S&P or Moody's. A downgrade in rating for each MBS or new issuances of similar MBS with ratings by S&P or Moody's below the "A" rating would be a factor in concluding that an impairment is other-than-temporary.

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.

Taxable Property Loans
In addition to the mortgage revenue bonds held by the Company, taxable property loans have been made to the owners of some of the properties which secure the bonds.  The repayment of these taxable property loans is dependent largely on the value of the property or its cash flows which collateralize the loans.  The Company periodically evaluates these loans for potential losses by estimating the fair value of the property which collateralize the loans and comparing the fair value to the outstanding mortgage revenue bonds plus any taxable 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 discounted cash flow ("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 mortgage revenue bond exceeds the principal balance of the taxable 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, 2013 and 2011, the Company recognized a provision for loan losses of approximately $168,000 and $4.2 million, respectively. For the year ended December 31, 2012, the Company did not recognize any provision for loan losses.
  
Accounting for Tax Exempt Bond Securitization ("TEBS") and Tender Option Bond ("TOB") Financing Arrangements
The Company has evaluated the accounting guidance in regard to the TEBS and TOB Financing arrangements (Note 11) 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 tender option bond trusts ("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 secured financings.

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 facility (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 Company investments are securitized into TOB Trusts with Deutsche Bank AG (“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 VIEs and the LIFERS owned by the Company 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 cause each TOB trust to sell the securitized asset in each specific TOB Trust. If the securitized assets were sold, the extent to which the VIE will be exposed to gains or losses from changes in the fair market value of the securitized assets would result from decisions made by the Partnership.

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 facility 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.
 
Bond Purchase Commitments
The bond purchase commitments held by the Company have no cost. However, they are required to be measured and recorded at fair value, which is estimated under the same methodology as the Company's mortgage revenue bonds in the Company's financial statements (Notes 5 and 17).

Deferred Financing Costs
Debt financing costs are capitalized and amortized on the effective interest method over the stated maturity of the related debt financing agreement. Bond issuance costs are capitalized and amortized on the effective interest method over the stated maturity of the related mortgage revenue bonds.  As of December 31, 2013 and 2012, debt financing costs and bond issuance costs of $5.3 million and $4.6 million, respectively, were included in other assets. These costs are reduced on the balance sheet by the accumulated amortization of approximately $2.8 million and $1.8 million as of December 31, 2013 and 2012, respectively.

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, 2013 and 2012, 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 $7.4 million and $10.0 million at December 31, 2013 and 2012, 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 Mortgage Revenue Bonds
The interest income received by the Partnership from its mortgage revenue bonds is dependent upon the net cash flow of the underlying properties. Base interest income on fully performing mortgage revenue bonds is recognized as it is earned. Base interest income on mortgage revenue bonds not fully performing is recognized as it is received. Past due base interest on 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 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 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 contingent interest on mortgage revenue bonds, which are or were previously not fully performing, is recognized when realized or realizable. As of December 31, 2013 and 2012, the Company's mortgage revenue bonds were fully performing as to their base interest with the exception of the Woodland Park bond in 2012.

An evaluation was performed during fiscal 2011 which determined that the interest receivable accrued on the Woodland Park bond was impaired and an approximate $953,000 allowance for loss on receivables was recorded. The Partnership received two interest payments during 2012 and recorded an additional allowance of approximately $453,000 against the remaining interest receivable in 2012. The Partnership recorded an approximate additional $242,000 against the interest receivable before the mortgage revenue bond foreclosure was completed in May 2013 and title to the Woodland Park property was conveyed to a wholly-owned subsidiary of the Partnership (Note 8).

Revenue Recognition on Investments in Real Estate, MBS, and PHC Certificates
The Partnership's Consolidated VIEs and the MF Properties (Note 8) 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.

Interest income on the MBS and PHC Certificates is recognized as it is earned (Notes 6 and 7).

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,
 
 
 
2013
 
2012
 
2011
Calculation of unitholders' interest in income (loss) from continuing operations:
 
 
 
 
 
 
 
Income (loss) from continuing operations
 
$
14,534,438

 
$
2,763,762

 
$
(2,425,355
)
 
Less: general partners' interest in income
 
1,381,872

 
331,403

 
144,837

 
Unallocated loss related to variable interest entities
 
(1,116,262
)
 
(1,522,846
)
 
(1,289,539
)
 
Noncontrolling interest
 
261,923

 
549,194

 
570,759

 
Unitholders' interest in income (loss) from continuing operations
 
$
14,006,905

 
$
3,406,011

 
$
(1,851,412
)
Calculation of Unitholders' interest in income from discontinued operations:
 
 
 
 
 
 
 
Income from discontinued operations
 
$
3,442,404

 
$
2,232,276

 
$
752,192

 
Less: general partner's interest in income
 
34,424

 
359,909

 
7,522

 
Unallocated income related to variable interest entities
 

 

 

 
Unitholders' interest in discontinued operations
 
$
3,407,980

 
$
1,872,367

 
$
744,670

Calculation of unitholders' interest in net income (loss)
 
 
 
 
 
 
 
Net income (loss)
 
$
17,976,842

 
$
4,996,038

 
$
(1,673,163
)
 
Less: general partners' interest in net income
 
1,416,296

 
691,312

 
152,359

 
Unallocated (loss) related to variable interest entities
 
(1,116,262
)
 
(1,522,846
)
 
(1,289,539
)
 
Noncontrolling interest
 
261,923

 
549,194

 
570,759

 
Unitholders' interest in net income (loss)
 
$
17,414,885

 
$
5,278,378

 
$
(1,106,742
)
 
 
 
 
 
 
 
Weighted average number of units outstanding (basic and diluted)
 
43,453,476

 
37,367,600

 
30,122,928

Unitholders' interest in net income per BUC (basic and diluted):
 
 
 
 
 
 
 
Income (loss) from continuing operations
 
$
0.32

 
$
0.09

 
$
(0.06
)
 
Income from discontinued operations
 
0.08

 
0.05

 
0.02

 
Net income (loss)
 
$
0.40

 
$
0.14

 
$
(0.04
)


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.
v2.4.0.8
Partnership Income, Expense and Cash Distributions
12 Months Ended
Dec. 31, 2013
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 8) 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 revenue 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, 2013, 2012, and 2011 were as follows:

 
 
For the
Year Ended
 
For the
Year Ended
 
For the
Year Ended
 
 
December 31, 2013

 
December 31, 2012

 
December 31, 2011

Cash Distributions
 
0.5000

 
0.5000

 
0.5000

v2.4.0.8
Variable Interest Entities
12 Months Ended
Dec. 31, 2013
Variable Interest Entities [Abstract]  
Variable interest entities [Text Block]
Variable Interest Entities

Although each multifamily property financed with 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, 2013, the Partnership determined that four of the entities financed by mortgage revenue bonds owned by the Partnership were held by VIEs.  These VIEs were Ashley Square, Bent Tree, Cross Creek, and Fairmont Oaks. The Partnership then determined that it is the primary beneficiary of two of these VIEs; Bent Tree and Fairmont Oaks and has continued to consolidate these entities. Effective December 1, 2013, the ownership of Lake Forest became a not-for-profit entity and Lake Forest ceased to be reported as a Consolidated VIE.

At December 31, 2012, the Partnership determined that five of the entities financed by 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 during 2012.  At December 31, 2012, the Partnership also determined that the Exchange Accommodation Titleholder ("EAT (Maples on 97th)") was also a VIE based on the Qualified Exchange Accommodation Agreement and Master Lease Agreement between the Partnership and EAT (Maples on 97th). In February 2013, title to the Maples on 97th property transferred to the Partnership from the EAT (Maples on 97th) and the property is reported as an MF Property as of December 31, 2013.

The Partnership does not hold an equity interest in the four 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 the four VIEs financed by mortgage revenue bonds owned by the Partnership 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, 2013, the Partnership determined it is the primary beneficiary of the Bent Tree and Fairmont Oaks VIEs. The capital structure of Bent Tree and Fairmont Oaks VIEs consists of senior debt, subordinated debt, and equity capital. The senior debt is in the form of a 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 the Burlington Capital Group, LLC ("Burlington").

The Partnership lent the EAT (Maples on 97th) the necessary funds to purchase the Maples on 97th property and executed a Master Lease Agreement and Construction Management Agreement. These two agreements gave the Partnership the rights and obligations to manage the replacement property as well as the rehabilitation during the six month hold period. The Partnership determined that it was the primary beneficiary of the EAT (Maples on 97th). Based on the terms of the Master Lease Agreement, the Partnership reported the rental income and related real estate operating expenses for the Maples on 97th property during the six month holding period (August 2012 to January 2013) as an MF Property since it has all the rights and obligations of landlord for the property. In February 2013, title to the Maples on 97th property transferred to the Partnership from the EAT (Maples on 97th).

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

The Company does not consolidate two VIE entities, Ashley Square and Cross Creek. 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 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 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, 2013 and 2012, which constitute a variable interest in Ashley Square and Cross Creek.
December 31, 2013
 
Balance Sheet
 
 Carrying
 
 Maximum Exposure
 
Classification
 
 Value
 
 to Loss
Ashley Square Apartments
 
 
 
 
 
Mortgage Revenue Bond
Bond Investment
 
$
5,212,000

 
$
5,212,000

Property Loan
Other Asset
 
1,482,000

 
7,131,757

 
 
 
$
6,694,000

 
$
12,244,123

 
 
 
 
 
 
Cross Creek Apartments
 
 
 
 
 
Mortgage Revenue Bond
Bond Investment
 
$
7,522,563

 
$
6,042,297

Property Loans
Other Asset
 
3,448,615

 
3,448,615

 
 
 
$
10,971,178

 
$
9,490,912


December 31, 2012
 
Balance Sheet
 
 Carrying
 
 Maximum Exposure
 
Classification
 
 Value
 
 to Loss
Ashley Square Apartments
 
 
 
 
 
Mortgage Revenue Bond
Bond Investment
 
5,506,981

 
5,260,000

Property Loan
Other Asset
 
1,298,000

 
6,575,664

 
 
 
$
6,804,981

 
$
11,835,664

 
 
 
 
 
 
Cross Creek Apartments
 
 
 
 
 
Mortgage Revenue Bond
Bond Investment
 
7,999,335

 
6,004,424

Property Loans
Other Asset
 
3,383,615

 
3,383,615

 
 
 
$
11,382,950

 
$
9,388,039


The following tables provide information about the two VIEs at December 31, 2013 and the three VIEs at December 31, 2012 in the Partnership's financial statements under the provisions of the guidance on consolidations. These schedules also include information on the mortgage revenue bonds owned by the Partnership which are eliminated in consolidation, as of December 31, 2013 and 2012, respectively. In addition to the mortgage revenue bonds detailed below, the Partnership has made taxable property loans to these consolidated VIEs of $7.1 million and $10.6 million as of December 31, 2013 and 2012, respectively.
VIEs - December 31, 2013
 
 
 
 
 
 
Base
 
Principal
 
Income
 
 
 
 
Maturity
 
Interest
 
Outstanding at
 
Earned in
Property Name
 
Location
 
Date
 
Rate
 
December 31, 2013
 
2013
Bent Tree Apartments (1)
 
Columbia, SC
 
12/15/2030
 
6.25
%
 
$
7,542,000

 
$
473,438

Fairmont Oaks Apartments (1)
 
Gainsville, FL
 
4/1/2033
 
6.30
%
 
7,355,000

 
465,791

Total Mortgage Revenue Bonds
 
 
 
 
 
 
 
$
14,897,000

 
$
939,229

(1) Bonds held by ATAX TEBS I, LLC
VIEs - December 31, 2012
 
 
 
 
 
 
Base
 
Principal
 
Income
 
 
 
 
Maturity
 
Interest
 
Outstanding at
 
Earned in
Property Name
 
Location
 
Date
 
Rate
 
December 31, 2012
 
2012
Bent Tree Apartments (1)
 
Columbia, SC
 
12/15/2030
 
6.25
%
 
$
7,614,000

 
$
477,938

Fairmont Oaks Apartments (1)
 
Gainesville, FL
 
4/1/2033
 
6.30
%
 
$
7,439,000

 
$
471,067

Lake Forest Apartments (1)
 
Daytona Beach, FL
 
12/1/2031
 
6.25
%
 
$
9,105,000

 
$
571,813

Total Mortgage Revenue Bonds
 
 
 
 
 
 
 
$
24,158,000

 
$
1,520,818

(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, 2013 and 2012:
 
 
Partnership as of December 31, 2013
 
 Consolidated VIEs as of December 31, 2013
 
 Consolidation -Elimination as of December 31, 2013
 
 Total as of December 31, 2013
Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
11,292,039

 
$
25,976

 
$

 
$
11,318,015

Restricted cash
 
6,344,666

 
500,877

 

 
6,845,543

Interest receivable
 
14,357,065

 

 
(4,820,550
)
 
9,536,515

Mortgage revenue bonds held in trust
 
230,885,864

 

 
(14,514,063
)
 
216,371,801

Mortgage revenue bonds
 
68,946,370

 

 

 
68,946,370

Public housing capital fund trusts
 
62,056,379

 

 

 
62,056,379

Mortgage-backed securities
 
37,845,661

 

 

 
37,845,661

Real estate assets:
 
 
 
 
 
 
 
 
Land and land improvements
 
9,245,592

 
1,836,400

 

 
11,081,992

Buildings and improvements
 
90,253,256

 
20,942,439

 

 
111,195,695

Real estate assets before accumulated depreciation
 
99,498,848

 
22,778,839

 

 
122,277,687

Accumulated depreciation
 
(9,386,811
)
 
(9,741,942
)
 

 
(19,128,753
)
Net real estate assets
 
90,112,037

 
13,036,897

 

 
103,148,934

Other assets
 
24,413,077

 
456,087

 
(6,705,350
)
 
18,163,814

Total Assets
 
$
546,253,158

 
$
14,019,837

 
$
(26,039,963
)
 
$
534,233,032

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Accounts payable, accrued expenses and other liabilities
 
$
4,963,653

 
$
20,634,613

 
$
(20,147,572
)
 
$
5,450,694

Distribution payable
 
6,446,076

 

 

 
6,446,076

Debt financing
 
257,274,000

 

 

 
257,274,000

Mortgage payable
 
57,087,320

 
14,897,000

 
(14,897,000
)
 
57,087,320

Bond purchase commitment at fair value
 
4,852,177

 

 

 
4,852,177

Total Liabilities
 
330,623,226

 
35,531,613

 
(35,044,572
)
 
331,110,267

Partners' Capital
 
 
 
 
 
 
 
 
General Partner
 
16,671

 

 

 
16,671

Beneficial Unit Certificate holders
 
215,624,583

 

 
7,948,729

 
223,573,312

Unallocated loss of Consolidated VIEs
 

 
(21,511,776
)
 
1,055,880

 
(20,455,896
)
Total Partners' Capital
 
215,641,254

 
(21,511,776
)
 
9,004,609

 
203,134,087

Noncontrolling interest
 
(11,322
)
 

 

 
(11,322
)
Total Capital
 
215,629,932

 
(21,511,776
)
 
9,004,609

 
203,122,765

Total Liabilities and Partners' Capital
 
$
546,253,158

 
$
14,019,837

 
$
(26,039,963
)
 
$
534,233,032

 
 
 
Partnership as of December 31, 2012
 
 Consolidated VIEs as of December 31, 2012
 
 Consolidation -Elimination as of December 31, 2012
 
 Total as of December 31, 2012
Assets
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
30,123,447

 
$
49,326

 
$

 
$
30,172,773

Restricted cash
 
4,538,071

 
933,451

 

 
5,471,522

Interest receivable
 
14,131,063

 

 
(5,657,703
)
 
8,473,360

Mortgage revenue bonds held in trust
 
124,149,600

 

 
(24,615,518
)
 
99,534,082

Mortgage revenue bonds
 
45,703,294

 

 

 
45,703,294

Public housing capital fund trusts
 
65,389,298

 

 

 
65,389,298

Mortgage-backed securities
 
32,121,412

 

 

 
32,121,412

Real estate assets:
 
 
 
 
 
 
 
 
Land and land improvements
 
6,798,407

 
4,404,469

 

 
11,202,876

Buildings and improvements
 
55,776,753

 
37,838,726

 

 
93,615,479

Real estate assets before accumulated depreciation
 
62,575,160

 
42,243,195

 

 
104,818,355

Accumulated depreciation
 
(5,458,961
)
 
(13,871,102
)
 

 
(19,330,063
)
Net real estate assets
 
57,116,199

 
28,372,093

 

 
85,488,292

Other assets
 
22,923,356

 
852,321

 
(15,559,382
)
 
8,216,295

Assets of discontinued operations
 
32,580,427

 

 

 
32,580,427

Total Assets
 
$
428,776,167

 
$
30,207,191

 
$
(45,832,603
)
 
$
413,150,755

 
 
 
 
 
 
 
 
 
Liabilities
 
 
 
 
 
 
 
 
Accounts payable, accrued expenses and other liabilities
 
2,330,852

 
28,529,405

 
(25,846,310
)
 
5,013,947

Distribution payable
 
5,566,908

 

 

 
5,566,908

Debt financing
 
177,948,000

 

 

 
177,948,000

Mortgage payable
 
39,119,507

 
24,158,000