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Other Assets
3 Months Ended
Mar. 31, 2015
Other Assets [Abstract]  
Other Assets Disclosure [Text Block]
Other Assets

The Company had the following Other Assets as of dates shown:
 
 
March 31, 2015
 
December 31, 2014
Property loans receivable
 
$
22,230,852

 
$
22,191,515

Less: Loan loss reserves
 
(7,098,814
)
 
(7,098,814
)
Deferred financing costs - net
 
4,535,783

 
4,659,104

Fair value of derivative contracts
 
523,151

 
267,669

Taxable bonds at fair value
 
4,411,214

 
4,616,565

Bond purchase commitments - fair value adjustment (Notes 4 & 14)
 
5,204,188

 
5,780,413

Other assets
 
757,847

 
885,075

 Total Other assets
 
$
30,564,221

 
$
31,301,527



In addition to the mortgage revenue bonds held by the Company, property loans have been made to the owners of the properties which secure the mortgage revenue 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 property loans receivable for impairment.  The value of the underlying property assets is ultimately the most relevant measure of value to support the property loan values.  The Company utilizes a discounted cash flow model in estimating a property’s 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’s fair value.  If the estimated fair value of the property after deducting the amortized cost basis of any senior mortgage revenue bond exceeds the principal balance of the property loan then no potential loss is indicated and no loan loss reserve for property loans is needed. In estimating the property valuation, the most significant assumptions utilized in the discounted cash flow model remain the same as discussed in the Form 10-K and include revenue and expense projections and capitalization rates.

Please see the Fair Value Measurement footnote (Note 13) for the detailed description of the fair value estimation process for all taxable mortgage bonds.

During the first quarter of 2015, the Partnership advanced additional funds to Cross Creek of approximately $57,500. In addition, the Partnership received approximately $18,000 of principal from FAH during the first quarter of 2015. During the first quarter of 2014, the Partnership advanced additional funds to Cross Creek and the Ohio Properties of approximately $42,000 and $29,000, respectively. During the first quarters of 2015 and 2014, the Partnership recorded an allowance on interest equal to the accrued interest on the Ashley Square, Cross Creek, Lake Forest and the Ohio Properties property loans receivable because the Partnership determined they were not reasonably assured.

The following is a summary of the property loans receivable, accrued interest and loan loss reserves on the amounts due at March 31, 2015 and December 31, 2014, respectively:
 
 
March 31, 2015
 
 
Outstanding Balance
 
Accrued Interest
 
Loan Loss Reserves
 
Interest Allowance
 
Net Property Loans
Arbors at Hickory Ridge
 
$
191,264

 
$
29,442

 
$

 
$

 
$
220,706

Ashley Square
 
5,078,342

 
2,557,178

 
(3,596,342
)
 
(2,557,178
)
 
1,482,000

Avistar (February 2013 portfolio)
 
274,496

 
25,199

 

 

 
299,695

Avistar (June 2013 portfolio)
 
251,622

 
23,099

 

 

 
274,721

Cross Creek
 
7,033,587

 
2,151,317

 
(3,447,472
)
 
(2,151,317
)
 
3,586,115

Foundation for Affordable Housing
 
1,542,391

 

 

 

 
1,542,391

Greens Property
 
850,000

 
258,376

 

 

 
1,108,376

Lake Forest
 
4,618,704

 
2,716,910

 
(55,000
)
 
(2,696,076
)
 
4,584,538

Ohio Properties
 
2,390,446

 
976,156

 

 
(340,093
)
 
3,026,509

 
 
$
22,230,852

 
$
8,737,677

 
$
(7,098,814
)
 
$
(7,744,664
)
 
$
16,125,051


 
 
December 31, 2014
 
 
Outstanding Balance
 
Accrued Interest
 
Loan Loss Reserves
 
Interest Allowance
 
Net Property Loans
Arbors at Hickory Ridge
 
$
191,264

 
$
26,047

 
$

 
$

 
$
217,311

Ashley Square
 
5,078,342

 
2,455,660

 
(3,596,342
)
 
(2,455,660
)
 
1,482,000

Avistar (February 2013 portfolio)
 
274,496

 
16,470

 

 

 
290,966

Avistar (June 2013 portfolio)
 
251,622

 
15,097

 

 

 
266,719

Cross Creek
 
6,976,087

 
2,084,804

 
(3,447,472
)
 
(2,084,804
)
 
3,528,615

Foundation for Affordable Housing
 
1,560,553

 
1,735

 

 

 
1,562,288

Greens Property
 
850,000

 
231,342

 

 

 
1,081,342

Lake Forest
 
4,618,704

 
2,599,613

 
(55,000
)
 
(2,578,778
)
 
4,584,539

Ohio Properties
 
2,390,447

 
894,044

 

 
(307,832
)
 
2,976,659

 
 
$
22,191,515

 
$
8,324,812

 
$
(7,098,814
)
 
$
(7,427,074
)
 
$
15,990,439



The following is a detail of loan loss reserves for the first quarter ended March 31, 2015 and year ended December 31, 2014:
 
 
March 31, 2015
 
December 31, 2014
Balance, beginning of year
 
$
7,098,814

 
$
7,023,814

Provision for loan loss
 

 
75,000

Balance, end of year
 
$
7,098,814

 
$
7,098,814



Based on the annual impairment analysis, a provision for loan loss and an associated loan loss reserve of $75,000 was recorded against the Cross Creek property loan in 2014. There was no provision for loan loss or associated loan loss reserve during the first quarter of 2015.