Discontined Operations

12 Months Ended

Dec. 31, 2012

Discontinued Operations [Abstract]

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

Discontinued Operations

In October 2012, the limited partnership that owns the Greens Property admitted two entities that are affiliates of Boston Capital (“BC Partners”) as new limited partners as part of a syndication of LIHTCs on the Greens Property. Prior to the execution of the admittance of the new limited partners, the Company had entered into an agreement to sell the Greens of Pine Glen Property for approximately $7.3 million to the third party not-for-profit which is the general partner of the limited partnership that now owns the Greens Property.   That sale was conditional on securing the tax-exempt bond and low-income housing tax credits from the North Carolina Housing Finance Agency. At closing, the BC Partners invested $961,000 of equity into this limited partnership and is obligated to invest another $2.2 million at contractual scheduled milestones tied to construction, the property reaching a specified debt service coverage ratio, the designation from the state of the tax credits, with the final payment being received no earlier than October 1, 2013.   The Company purchased 100% of the tax-exempt mortgage revenue bonds issued as part of the agreement to finance the acquisition and rehabilitation of the Greens Property. The Series A bonds have a $8,515,000 par value and bear interest at 6.5%. The Series B bond has a $950,000 par value and bears interest at 12% . Both series of bonds mature in October 1, 2047 . The Company also obtained an $850,000 taxable loan secured by the Greens Property at closing.  The construction is estimated to be 75% completed by June 30, 2013 and fully completed by October 31, 2013, and each of these milestones requires capital contributions by the limited partners. As there will be sufficient equity invested to recognize a real estate sale for accounting purposes at 75%completion of construction and the Company no longer has responsibility for the general operations of the property,this MF Property has met the criteria for discontinued operations presentation and has been reported as such in the consolidated financial statements for all periods presented. The net fixed assets and total assets of the Greens Property were approximately $8.4 million and $12.2 million at December 31, 2012, and $6.0 million and $6.2 million at December 31, 2011.

The Eagle Ridge property sale was completed in November 2012 and resulted in the property being reported as a discontinued operation for all periods reported. The net fixed assets and total assets of the Eagle Ridge property were approximately $2.3 million and $2.3 million at December 31, 2011. The proceeds from the sale of the property was approximately $2.5 million resulting in a gain of approximately $126,000.

In August 2012, the Commons at Churchland property was sold for proceeds of approximately $8.1 million resulting in a gain of approximately $1.3 million . The net fixed assets and total assets of the Churchland property were approximately $6.5 million and $7.3 million at December 31, 2011.

In October 2011, the three limited partnerships that own the Ohio Properties admitted two entities that are affiliates of BC Partners as new limited partners as part of a syndication of LIHTCs on the Ohio Properties. The BC Partners 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. In February 2013, the BC Partners contributed $6.3 million of capital into the Ohio Properties and the Company will recognize the approximately $1.8 million gain from the 2010 sale in the consolidated financial statements during the first quarter of 2013. The Company will also begin reporting the tax-exempt mortgage bonds on such Ohio Property as an asset and will report the related interest income on the bond commencing with first quarter of 2013. The Ohio Properties are reported as discontinued operations for all periods presented in these consolidated financial statements. The net fixed assets and total assets of the Ohio Properties were approximately $18.6 million and $20.4 million at December 31, 2012 and $20.8 million and $21.6 million at December 31, 2011.

The following represents the components of the assets and liabilities of the discontinued operations:

	December 31, 2012			December 31, 2011
Cash and cash equivalents	$	158,727		$	126,572
Restricted cash	4,035,360			1,001,006
Land	3,828,345			5,288,420
Buildings and improvements	28,316,081			35,780,697
Real estate assets before accumulated depreciation	32,144,426			41,069,117
Accumulated depreciation	(5,208,176		)	(5,534,263		)
Net real estate assets	26,936,250			35,534,854
Other assets	1,450,090			832,268
Total assets from discontinued operations	32,580,427			37,494,700
Accounts payable and accrued expenses	1,531,462			1,093,492
Mortgage payable	—			10,779,428
Total liabilities from discontinued operations	1,531,462			11,872,920
Net assets of discontinued operations	$	31,048,965		$	25,621,780

The following presents the revenues, expenses and income from discontinued operations:

	2012		2011		2010
Rental Revenues	$	5,843,173	$	5,908,454	$	5,585,870
Expenses	5,017,505		5,156,262		6,055,387
Income (loss) from continuing operations of the discontinued operations	825,668		752,192		(469,517		)
Gain on sale of discontinued operations	1,406,608		—		—
Net income (loss) from discontinued operations	$	2,232,276	$	752,192	$	(469,517	)