Other Assets

The Company had the following Other assets as of dates shown:



	June 30, 2012			December 31, 2011
Property loans receivable	$	20,437,663		$	19,808,803
Less: Loan loss reserves	(18,026,166		)	(16,782,918		)
Deferred financing costs - net	3,641,562			3,894,071
Fair value of derivative contracts	542,773			1,323,270
Taxable bonds at fair market value	711,756			774,946
Other assets	1,244,997			1,193,216
Total Other assets	$	8,552,585		$	10,211,388

In addition to the tax-exempt mortgage revenue bonds held by the Company, taxable property loans have been made to the owners of the properties which secure the bonds and are reported as Property loans receivable in Other assets, net of loan loss reserves. The Company periodically, or as changes in circumstances or operations dictate, evaluates such taxable loans for impairment. The value of the underlying property assets is ultimately the most relevant measure of value to support the taxable loan values. The Company utilizes a discounted cash flow model in estimating a property fair value. Discounted cash flow models containing varying assumptions are considered. The various models may assume multiple revenue and expense scenarios, various capitalization rates and multiple discount rates. Other information, such as independent appraisals, may be considered in estimating a property fair value. If the estimated fair value of the property after deducting the amortized cost basis of any senior tax-exempt mortgage revenue bond exceeds the principal balance of the property loan then no potential loss is indicated and no allowance for property loans is needed. In estimating the property valuation, the most significant assumptions utilized in the discounted cash flow model remained the same as discussed in the Form 10-K and include revenue and expense projections and capitalization rates.

During the first half of 2012, the Partnership advanced additional funds to Ashley Square, Cross Creek, and Iona Lakes of approximately $25,000, $150,000 and $185,000, respectively. In addition, Cross Creek paid approximately $330,000 which was applied against the loan receivable. During the first half of 2012, the Partnership recorded loan loss reserves equal to the accrued interest on the Ashley Square, Cross Creek, Iona Lakes and Woodland Park property loans.

In conjunction with the purchase of the Arbors of Hickory Ridge tax-exempt mortgage revenue bond, an affiliate of the Global Ministries Foundation, an unrelated not-for-profit entity, acquired the multi-family property securing the bond. At closing, the Company also secured a $600,000 promissory note receivable as a fee for identifying this property acquisition and performing the related due diligence. This promissory loan is payable by the property at either the date the $10 million tax-exempt mortgage revenue bond is restructured, upon the full repayment of the tax-exempt mortgage revenue bond, or June 14, 2022. As it is not reasonably assured when the tax-exempt mortgage revenue bond or related interest will be restructured or repaid in full, an allowance has been recorded against the loan receivable and accrued interest. Interest on the loan accrues at 12% but is not due until maturity.

The following is a summary of the taxable loans, accrued interest and allowance on the amounts due at June 30, 2012 and December 31, 2011, respectively:



	June 30, 2012
	Outstanding Balance		Accrued Interest		Loan Loss Reserves			Net Taxable Loans
Ashley Square	$	4,811,342	$	1,492,025	$	(5,088,367	)	$	1,215,000
Cross Creek	6,588,087		1,458,388		(4,662,860		)	3,383,615
Iona Lakes	7,524,118		2,523,154		(6,524,776		)	3,522,496
Arbors at Hickory Ridge	600,000		3,200		(603,200		)	—
Woodland Park	914,116		232,847		(1,146,963		)	—
	$	20,437,663	$	5,709,614	$	(18,026,166	)	$	8,121,111

	December 31, 2011
	Outstanding Balance		Accrued Interest		Loan Loss Reserves			Net Taxable Loans
Ashley Square	$	4,786,342	$	1,331,186	$	(4,927,528	)	$	1,190,000
Cross Creek	6,769,227		1,360,270		(4,564,742		)	3,564,755
Iona Lakes	7,339,118		2,207,301		(6,208,923		)	3,337,496
Woodland Park	914,116		167,609		(1,081,725		)	—
	$	19,808,803	$	5,066,366	$	(16,782,918	)	$	8,092,251

The following is a detail of loan loss reserves for the six months and year ended June 30, 2012 and December 31, 2011:



	June 30, 2012		December 31, 2011
Balance, beginning of year	$	16,782,918	$	9,899,719
Provision for loan loss	—		4,242,571
Acquisition of Arbors of Hickory Ridge bond	600,000		—
Deconsolidation of VIEs	—		1,861,051
Accrued interest not recognized	643,248		779,577
Balance, end of year	$	18,026,166	$	16,782,918

Accrued interest not recognized represents interest accrued that the Partnership has determined they are not reasonably assured of collecting. During first half of 2012 and the year ended 2011, the Partnership recorded an allowance for accrued interest not recognized on Ashley Square, Cross Creek, Iona Lakes, and Woodland Park taxable loans.