Fair Value Measurements

12 Months Ended

Dec. 31, 2011

Fair Value Measurements [Abstract]

Fair Value Disclosures [Text Block]

 Fair Value of Financial Instruments

Existing fair value guidance defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. The guidance on fair value measurements:

• Defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date; and

• Establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date.

Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk.  To increase consistency and comparability in fair value measurements and related disclosures, the fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three broad levels.  The three levels of the hierarchy are defined as follows:

• Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

• Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

• Level 3 inputs are unobservable inputs for asset or liabilities.

The categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Following is a description of the valuation methodologies used for assets and liabilities measured at fair value.

Investments in Tax-exempt Mortgage Revenue Bonds.  The fair values of the Company's investments in tax-exempt mortgage revenue bonds have each been based on a discounted cash flow and yield to maturity analysis performed by the General Partner.  There is no active trading market for the bonds and price quotes for the bonds are not available.  If available, the General Partner may also consider price quotes on similar bonds or other information from external sources, such as pricing services.  The estimates of the fair values of these bonds, whether estimated by the Company or based on external sources, are based largely on unobservable inputs the General Partner believes would be used by market participants.  Additionally, the calculation methodology used by the external sources and the Company encompasses the use of judgment in its application. Given these facts, the fair value measurement of the Company's investment in tax-exempt mortgage revenue bonds is categorized as a Level 3 input.

Interest rate derivatives.The effect of the Company's interest rate caps is to set a cap, or upper limit, on the base rate of interest paid on the Company's variable rate debt equal to the notional amount of the derivative agreement.  The effect of the Company's interest rate swap is to change a variable rate debt obligation to a fixed rate for that portion of the debt equal to the notional amount of the derivative agreement.  The interest rate derivatives are recorded at fair value with changes in fair value included in current period earnings within interest expense.  The fair value of the interest rate derivatives is based on a model whose inputs are not observable and therefore are categorized as a Level 3 input.

Assets measured at fair value on a recurring basis are summarized below:

	Fair Value Measurements at December 31, 2011
Description	Assets at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Tax-exempt Mortgage Revenue Bonds	$	135,695,352	—			—			$	135,695,352
Interest Rate Derivatives	1,323,270		—			—			1,323,270
Total Assets at Fair Value	$	137,018,622	—			—			$	137,018,622
			For Twelve Months Ended December 31, 2011
			Fair Value Measurements Using Significant
			Unobservable Inputs (Level 3)
			Tax-exempt Mortgage Revenue Bonds			Interest Rate Derivatives			Total
Beginning Balance January 1, 2011			$	100,566,643		$	3,406,791		$	103,973,434
VIE deconsolidation			15,083,757			—			15,083,757
Total gains (losses) (realized/unrealized)
Included in earnings			—			(2,083,521		)	(2,083,521		)
Included in other comprehensive income			9,734,259			—			9,734,259
Purchases			20,117,500			—			20,117,500
Bond Retirement			(9,526,619		)	—			(9,526,619		)
Settlements			(280,188		)	—			(280,188		)
Ending Balance December 31, 2011			$	135,695,352		$	1,323,270		$	137,018,622
Total amount of losses for the period included in earning attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of December 31, 2011			$	—		$	(2,083,521	)	$	(2,083,521	)

	Fair Value Measurements at December 31, 2010
	Assets at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets
Tax-exempt Mortgage Revenue Bonds	$	100,566,643	—			—		$	100,566,643
Interest Rate Derivatives	3,406,791		—			—		3,406,791
Total Assets at Fair Value	$	103,973,434	—			—		$	103,973,434
			For Twelve Months Ended December 31, 2010
			Fair Value Measurements Using Significant
			Unobservable Inputs (Level 3)
			Tax-exempt Mortgage Revenue Bonds			Interest Rate Derivatives		Total
Beginning Balance January 1, 2010			$	69,399,763		$	140,507	$	69,540,270
VIE deconsolidation			12,371,004			—		12,371,004
VIE consolidation			(9,539,000		)	—		(9,539,000		)
Total gains (losses) (realized/unrealized)
Included in earnings			—			571,684		571,684
Included in other comprehensive income			1,348,966			—		1,348,966
Purchases			28,104,843			2,694,600		30,799,443
Settlements			(1,118,933		)	—		(1,118,933		)
Ending Balance December 31, 2010			$	100,566,643		$	3,406,791	$	103,973,434
Total amount of gains for the period included in earning attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of December 31, 2010			—			$	571,684	$	571,684

			Fair Value Measurements at December 31, 2009
	Assets at Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)			Significant Unobservable Inputs (Level 3)
Assets
Tax-exempt Mortgage Revenue Bonds	$	69,399,763	—			—			$	69,399,763
Interest Rate Derivatives	140,507		—			—			140,507
Total Assets at Fair Value	$	69,540,270	—			—			$	69,540,270
			For Twelve Months Ended December 31, 2009
			Fair Value Measurements Using Significant
			Unobservable Inputs (Level 3)
			Tax-exempt Mortgage Revenue Bonds			Interest Rate Derivatives			Total
Beginning Balance January 1, 2009			$	44,492,526		$	302,849		$	44,795,375
Total gains (losses) (realized/unrealized)			—
Included in earnings			—			(830,142		)	(830,142		)
Included in other comprehensive income			5,848,576			—			5,848,576
Purchases			19,271,328			605,500			19,876,828
Settlements			(212,667		)	62,300			(150,367		)
Ending Balance December 31, 2009			69,399,763			140,507			69,540,270
Total amount of losses for the period included in earning attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of December 31, 2009			$	—		$	(830,142	)	$	(830,142	)

 Income and losses included in earnings for the periods shown above are included in interest expense.

The Company calculates a fair market value of each financial instrument using a discounted cash flow model based on the debt amortization schedules at the effective rate of interest for 2011. Below represents the fair market value of the debt held on the balance sheet for December 31, 2011 and 2010, respectively.

	2011		2010
	Carrying Amount	Fair Value	Carrying Amount	Fair Value
Financial Liabilities:
Debt financing	112,673,000	115,106,332	95,608,000	95,974,474
Mortgages payable	46,243,883	46,932,670	10,645,982	10,642,725