Other Assets

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



	March 31, 2013			December 31, 2012
Taxable property loans receivable	$	22,979,599		$	20,328,927
Less: Loan loss reserves	(18,607,061		)	(18,134,902		)
Deferred financing costs - net	2,750,409			2,764,734
Fair value of derivative contracts	274,071			378,729
Taxable bonds at fair market value	2,364,982			1,524,873
Other assets	1,242,379			1,353,934
Total Other assets	$	11,004,379		$	8,216,295

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 taxable 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 property loans receivable for impairment. The value of the underlying property assets is ultimately the most relevant measure of value to support the taxable property 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.

In February 2013, the Partnership acquired six tax-exempt mortgage revenue bonds secured by three properties located in San Antonio, Texas, Avistar on the Boulevard, Avistar at Chase Hill, and Avistar at the Crest. The Partnership also acquired approximately $804,000 of taxable mortgage revenue bonds which also carry a cash interest rate of 9.0% and mature on April 1, 2050 and are reported as part of the taxable bonds at fair value in Other assets.

During the first three months of 2013, the Partnership advanced additional funds to Ashley Square, Iona Lakes and the Ohio Properties of approximately $65,000, $224,000, and $42,000, respectively. Due to the recognized sale of the Ohio Properties, the taxable property loans receivable with the Ohio Properties are no longer eliminated upon consolidation (Note 9). During the first three months of 2013, the Partnership recorded loan loss reserves equal to the accrued interest on the Ashley Square, Cross Creek, Iona Lakes, Ohio Properties, and Woodland Park taxable property loans receivable.

The following is a summary of the taxable property loans receivable, accrued interest and allowance on the amounts due at March 31, 2013 and December 31, 2012, respectively:



	March 31, 2013
	Outstanding Balance		Accrued Interest		Loan Loss Reserves			Net Taxable Loans
Arbors at Hickory Ridge	$	191,264	$	3,697	$	—		$	194,961
Ashley Square	4,894,342		1,777,022		(5,373,364		)	1,298,000
Cross Creek	6,653,087		1,638,905		(4,843,377		)	3,448,615
Iona Lakes	7,965,344		3,030,363		(7,031,985		)	3,963,722
Ohio Properties	2,361,446		105,271		(105,271		)	2,361,446
Woodland Park	914,116		338,948		(1,253,064		)	—
	$	22,979,599	$	6,894,206	$	(18,607,061	)	$	11,266,744

	December 31, 2012
	Outstanding Balance		Accrued Interest		Loan Loss Reserves			Net Taxable Loans
Arbors at Hickory Ridge	$	191,264	$	697	$	—		$	191,961
Ashley Square	4,894,342		1,681,322		(5,277,664		)	1,298,000
Cross Creek	6,588,087		1,578,288		(4,782,760		)	3,383,615
Iona Lakes	7,741,118		2,856,290		(6,857,912		)	3,739,496
Woodland Park	914,116		302,450		(1,216,566		)	—
	$	20,328,927	$	6,419,047	$	(18,134,902	)	$	8,613,072

The following is a detail of loan loss reserves for the three months and year ended March 31, 2013 and December 31, 2012:



	March 31, 2013		December 31, 2012
Balance, beginning of year	$	18,134,902	$	16,782,918
Accrued interest not recognized	472,159		1,351,984
Balance, end of year	$	18,607,061	$	18,134,902

Accrued interest not recognized represents interest accrued that the Partnership has determined they are not reasonably assured of collecting. During first three months of 2013 the Partnership recorded an allowance for accrued interest not recognized on Ashley Square, Cross Creek, Iona Lakes, Ohio Properties, and Woodland Park taxable property loans receivable.