11. Property Loan, Net of Loan Loss Allowances

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

	December 31, 2016			December 31, 2015
Property loans receivable	$	36,862,148		$	29,874,523
Less: Loan loss allowance		(7,098,814	)		(7,098,814	)
Total property loans receivable	$	29,763,334		$	22,775,709

During the year ended December 31, 2016, the Partnership advanced net funds to Cross Creek, Foundation for Affordable Housing (“FAH”) and the Winston Group, Inc., of approximately $83,500, $2,500, and $2.5 million, respectively. In addition, the Partnership advanced funds to Vantage at Brooks, LLC and Vantage at Braunfels, LLC (collectively, the “Vantage Properties”) $3.7 million and $2.1 million, respectively. In December 2016, the FAH property loan and all accrued interest were paid off in full. In addition, the Partnership received and recognized approximately $1.4 million of contingent interest from the net cash proceeds on the sale of the property underlying the FAH property loan. The contingent interest income is considered Tier 2 income (Note 3).

During the year ended December 31, 2015, the Partnership advanced additional funds to Cross Creek of approximately $96,000 and received approximately $145,000 of principal for the FAH property loan. In June 2015, the Partnership executed a loan agreement with Silver Moon Lodge LLLP, owner of the Silver Moon Lodge Apartments, for approximately $2.8 million which was repaid from the limited partner capital contributed to Silver Moon Lodge LLLP in December 2015. In April 2015, the Partnership advanced approximately $567,000 to the Suites on Paseo for operations. This amount was included as an investment in the Suites on Paseo in September 2015, which was eliminated upon consolidation. In addition, the Partnership entered in commitments to loan funds to the Vantage Properties in the fourth quarter of 2015.

During the year ended December 31, 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 collectible at December 31, 2015.

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

	December 31, 2016
	Outstanding Balance		Accrued Interest		Loan Loss Allowances			Interest Allowance		Net Taxable Property Loans
Arbors at Hickory Ridge	$	191,264	$	54,742	$	-		$	-	$	246,006
Ashley Square		5,078,342		-		(3,596,342	)		-		1,482,000
Avistar (February 2013 portfolio)		274,496		90,491		-			-		364,987
Avistar (June 2013 portfolio)		251,622		82,951		-			-		334,573
Cross Creek		7,155,545		-		(3,447,472	)		-		3,708,073
Greens Property		850,000		467,511		-			-		1,317,511
Lake Forest		4,623,704		-		(55,000	)		-		4,568,704
Ohio Properties		2,390,446		1,021,723		-			-		3,412,169
Vantage at Brooks, LLC		7,199,424		743,928		-			-		7,943,352
Vantage at Braunfels, LLC		6,347,305		703,416		-			-		7,050,721
Winston Group, Inc		2,500,000		-		-			-		2,500,000
Total	$	36,862,148	$	3,164,762	$	(7,098,814	)	$	-	$	32,928,096

	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

There was no provision for loan loss recorded during the years ended December 31, 2016 and 2015. The Partnership recorded a provision for loan loss of $75,000 for the year ended December 31, 2014 related to the Cross Creek property loan.

The following table summarizes the changes in the Partnership’s loan loss reserves for the years ended December 31, 2016, 2015 and 2014:

	For the Year Ended December 31,
	2016		2015		2014
Balance, beginning of year	$	7,098,814	$	7,098,814	$	7,023,814
Provision for loan loss		-		-		75,000
Balance, end of year	$	7,098,814	$	7,098,814	$	7,098,814