10. Property Loans, Net of Loan Loss Allowances

The Partnership had the following Property Loans, Net of Loan Loss Allowances on June 30, 2016 and December 31, 2015:

	June 30, 2016			December 31, 2015
Property loans receivable	$	35,702,765		$	29,874,523
Less: Loan loss allowance		(7,098,814	)		(7,098,814	)
Total property loans receivable	$	28,603,951		$	22,775,709

In addition to the mortgage revenue bonds held by the Partnership, property loans have been made to the owners of certain properties which secure the mortgage revenue bonds and are reported as property loans, net of loan loss allowances. The Partnership periodically, or as changes in circumstances or operations dictate, evaluates its 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 Partnership 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 allowance for property loans is recorded by the Partnership. 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.

During the first six months of 2016, the Partnership advanced net funds to Cross Creek and Foundation for Affordable Housing (“FAH”), of approximately $6,000 and $2,500, respectively. In addition, the Partnership advanced Vantage at Brooks, LLC and Vantage at Braunfels, LLC $3.7 million and $2.1 million, respectively. During the first six months of 2015, the Partnership advanced additional funds to Cross Creek of approximately $64,500 and received approximately $69,000 of principal from FAH. During the six months ended June 30, 2016, the Partnership placed interest to be earned on the Ashley Square, Cross Creek, and the Lake Forest operating property loans receivable on nonaccrual status. The discounted cash flow method used by management to establish the net realizable value of these property loans determined the collection of the interest earned since inception was not probable. On December 31, 2015, the Partnership reported an interest allowance equal to the accrued interest on Ashley Square, Cross Creek, and the Lake Forest operating property loans. In addition, the Partnership deferred less than 100% of the interest earned on the property loans on the Ohio Properties as, in management’s opinion, the remainder was considered to be collectible at December 31, 2015.

The following represents the net taxable property loans outstanding at June 30, 2016 and December 31, 2015:

	June 30, 2016
	Outstanding Balance		Accrued Interest		Loan Loss Allowances			Interest Allowance		Net Taxable Property Loans
Arbors at Hickory Ridge	$	191,264	$	47,232	$	-		$	-	$	238,496
Ashley Square		5,078,342		-		(3,596,342	)		-		1,482,000
Avistar (February 2013 portfolio)		274,496		70,939		-			-		345,435
Avistar (June 2013 portfolio)		251,622		65,027		-			-		316,649
Cross Creek		7,078,087		-		(3,447,472	)		-		3,630,615
Foundation for Affordable Housing		1,418,075		25,907		-			-		1,443,982
Greens Property		850,000		404,026		-			-		1,254,026
Lake Forest		4,623,704		-		(55,000	)		-		4,568,704
Ohio Properties		2,390,446		904,650		-			-		3,295,096
Vantage at Brooks, LLC		7,199,424		394,201		-			-		7,593,625
Vantage at Braunfels, LLC		6,347,305		397,329		-			-		6,744,634
Total	$	35,702,765	$	2,309,311	$	(7,098,814	)	$	-	$	30,913,262

	December 31, 2015
	Outstanding Balance		Accrued Interest		Loan Loss Allowances			Interest Allowance			Net Taxable Property Loans
Arbors at Hickory Ridge	$	191,264	$	39,950	$	-		$	-		$	231,214
Ashley Square		5,078,342		2,864,130		(3,596,342	)		(2,864,130	)		1,482,000
Avistar (February 2013 portfolio)		274,496		51,386		-			-			325,882
Avistar (June 2013 portfolio)		251,622		47,104		-			-			298,726
Cross Creek		7,072,087		2,352,851		(3,447,472	)		(2,352,852	)		3,624,614
Foundation for Affordable Housing		1,415,590		-		-			-			1,415,590
Greens Property		850,000		343,600		-			-			1,193,600
Lake Forest		4,623,704		3,080,446		(55,000	)		(3,059,610	)		4,589,540
Ohio Properties		2,390,448		1,235,017		-			(441,795	)		3,183,670
Vantage at Brooks LLC		3,454,664		78,440		-			-			3,533,104
Vantage at Braunfels LLC		4,272,306		92,481		-			-			4,364,787
Total	$	29,874,523	$	10,185,405	$	(7,098,814	)	$	(8,718,387	)	$	24,242,727

Based on the annual impairment analysis and the discounted cash flow analysis performed at December 31, 2015 and the related analysis of each property loan during the six months ended June 30, 2016, a provision for loan loss related to the accrued interest was recorded during the six months ended June 30, 2016, in the amount of approximately $21,000 for interest accrued on the notes receivable on the Lake Forest property. In management’s opinion, this amount was considered to be uncollectible. There was no provision for loan loss recorded during the three and six months ended June 30, 2015.