Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Discontinued Operations

In February 2009, the tax-exempt mortgage revenue bonds secured by Ashley Pointe at Eagle Crest in Evansville, Indiana, Woodbridge Apartment of Bloomington III in Bloomington, Indiana, and Woodbridge Apartments of Louisville II in Louisville, Kentucky were redeemed.  The properties financed by these redeemed mortgage revenue bonds were required to be consolidated into the Company's financial statements as VIEs under the guidance on consolidations as described below under “Effects of Implementation of Consolidation Guidance on Financial Reporting”.  During the fourth quarter of 2008, these VIEs met the criteria for discontinued operations under the guidance on property, plant, and equipment and were classified as such in the consolidated financial statements for all periods presented. In order to properly reflect the transaction under the guidance on consolidations, the Company recorded the redemption of the bonds as a sale of the properties as though they were owned by the Company.  The transaction was completed for a total purchase price of $32.0 million resulting in a gain on sale for GAAP reporting to the Company of approximately $26.5 million.  The redemption of the bonds did not result in a taxable gain to the Partnership. 

As of December 31, 2008, $19.6 million of the total outstanding debt related to the Partnership's bond portfolio has been allocated to discontinued operations.   Interest expense was allocated to discontinued operations based on the historical effective rate of the Company's debt financing applied to the debt financing allocated to discontinued operations.  The Company allocated to discontinued operations interest expense of $82,000 for the year ended December 31, 2009. There were no discontinued operations for the years ended December 31, 2011 or 2010.

On a stand-alone basis, the Partnership received approximately $30.9 million of net proceeds from the bond redemption.  These proceeds represent the repayment of the bond par values plus accrued base interest and approximately $2.3 million of contingent interest.  The contingent interest, recognized in the first quarter of 2009, represents additional earnings to the Partnership beyond the recurring base interest earned on the bond portfolio.  The contingent interest also represents additional Cash Available for Distribution to the unitholders of approximately $1.7 million, or $0.13 per unit.

There are no components of the assets and liabilities of discontinued operations as of December 31, 2011 and December 31, 2010.

There were no revenues, expenses and income from discontinued operations for the years ended December 31, 2011 and 2010. For the year ended December 31, 2009, the Company reported approximately $849,000 revenues, $502,000 in expenses , $347,000 in income which were related to discontinued operations excluding the gain on sale of $26.5 million.