ortgages Payable

The Company reports the mortgage loans secured by certain MF Properties on its consolidated financial statements as Mortgages payable. As of December 31, 2012, outstanding mortgage loans totaled approximately $39.1 million. As of December 31, 2011, outstanding mortgage loans totaled approximately $35.5 million.

In February, 2012, the Partnership obtained a $2.0 million construction loan secured by the DeCordova property to be used to expand the DeCordova campus by constructing a new apartment building adjacent to the existing DeCordova property. This construction loan is with an unrelated third party and carries a fixed annual interest rate of 5.0%, maturing on February 1, 2017.

In May 2012, the Company obtained an extension from Bank of America for the mortgage secured by Glynn Place to May 2013.

In July 2011, the Company obtained a $6.5 million construction loan secured by the DeCordova and Weatherford properties. This construction loan will be used to fund the completion of Weatherford and the expansion of DeCordova. The construction loan is with Pinnacle Bank, an independent third party, and carries a fixed annual interest rate of 5.9%, maturing on July 28, 2015. This facility had an outstanding balance of approximately $6.4 million at December 31, 2012. This agreement required $500,000 to be held as by the Company as restricted cash.

In June 2011, the Company obtained a conventional mortgage of approximately $8.9 million, which was used to acquire Eagle Village. The mortgage carries a variable interest rate of one-month LIBOR plus 2.75%, but will not be less than 3.5%. On December 31, 2012 this rate was 3.5%. This mortgage matures on June 1, 2013.

In May 2011, the Greens Property obtained an approximate $4.6 million mortgage loan. The mortgage carries a variable interest rate of prime plus 1.00% or 4.25%, whichever is greater. This mortgage was paid in full on October 18, 2012.

In March 2011, the Company purchased Arboretum, an independent senior living facility in Omaha, Nebraska. A portion of the purchase price was financed with approximately $17.5 million mortgage payable. This mortgage carries a 5.25% fixed rate and matures on March 31, 2014.

The following is a summary of the Mortgage Loans payable on MF Properties:



MF Property Mortgage Payables	Outstanding Mortgage Payable at December 31, 2012		Original Mortgage Payable		Year Acquired	Stated Maturity	Effective Rate ⁽¹⁾

Arboretum	$	17,500,000	$	17,500,000	2011	March 2014	5.25	%
Eagle Village	8,925,000		8,925,000		2010	June 2013	3.50	%
Glynn Place	4,252,836		4,480,000		2008	May 2013	2.78	%
Residences of DeCordova	1,995,628		2,000,000		2012	February 2017	5.01	%
Residences of Weatherford	6,446,043		6,500,000		2011	July 2015	5.84	%
Total Mortgage Payable	$	39,119,507	$	39,405,000

MF Property Mortgage Payables	Outstanding Mortgage Payable at December 31, 2011		Original Mortgage Payable		Year Acquired	Stated Maturity	Effective Rate ⁽¹⁾

Arboretum	$	17,500,000	$	17,500,000	2011	March 2014	5.25	%
Eagle Village	8,925,000		8,925,000		2011	June 2013	3.50	%
Glynn Place	4,308,468		4,480,000		2008	May 2012	2.99	%
Residences of Weatherford	4,730,987		4,730,987		2011	July 2015	5.63	%
Total Mortgage Payable	$	35,464,455	$	35,635,987

(1) Represents the average effective interest rate, including fees, for the years ended December 31, 2012 and 2011 and excludes the effect of interest rate caps (see Note 15).

The Company's mortgages payable as of December 31, 2012, contractually mature over the next five years and thereafter as follows:



2013	$	13,339,707
2014	17,661,871
2015	6,122,301
2016	—
2017	1,995,628
Thereafter	—
Total	$	39,119,507

The Partnership expects each of the MF Properties to eventually be sold either to a not-for-profit entity or in connection with a syndication of LIHTCs. The proceeds from such sale will be utilized to retire any associated outstanding mortgage loan. Should a mortgage loan reach maturity prior to a sale of the associated MF Property, the Partnership would either seek to refinance such mortgage loan or utilize cash reserves to retire the loan. The Partnership expects to provide tax-exempt mortgage revenue bonds as part of an overall plan of financing the acquisition of a MF Property by a new property owner.