11. Property Loan, Net of Loan Loss Allowances

The following table summarizes the Partnership’s property loans, net of loan loss allowances, at December 31, 2017 and 2016:

	December 31, 2017
	Outstanding Balance		Loan Loss Allowances			Property Loan Principal, net of allowance
Arbors at Hickory Ridge	$	191,264	$	-		$	191,264
Avistar (February 2013 portfolio)		201,972		-			201,972
Avistar (June 2013 portfolio)		251,622		-			251,622
Cross Creek		11,101,887		(7,393,814	)		3,708,073
Greens Property		850,000		-			850,000
Lake Forest		4,995,884		-			4,995,884
Ohio Properties		2,390,446		-			2,390,446
Vantage at Brooks, LLC		8,417,635		-			8,417,635
Vantage at New Braunfels, LLC		7,406,978		-			7,406,978
Winston Group, Inc		1,100,000		-			1,100,000
Total	$	36,907,688	$	(7,393,814	)	$	29,513,874

	December 31, 2016
	Outstanding Balance		Loan Loss Allowances			Net Taxable Property Loans
Arbors at Hickory Ridge	$	191,264	$	-		$	191,264
Ashley Square		5,078,342		(3,596,342	)		1,482,000
Avistar (February 2013 portfolio)		274,496		-			274,496
Avistar (June 2013 portfolio)		251,622		-			251,622
Cross Creek		7,155,545		(3,447,472	)		3,708,073
Greens Property		850,000		-			850,000
Lake Forest		4,623,704		(55,000	)		4,568,704
Ohio Properties		2,390,446		-			2,390,446
Vantage at Brooks, LLC		7,199,424		-			7,199,424
Vantage at New Braunfels, LLC		6,347,305		-			6,347,305
Winston Group, Inc		2,500,000		-			2,500,000
Total	$	36,862,148	$	(7,098,814	)	$	29,763,334

Funds were received related to Ashley Square property loans when the associated property was sold in November 2017. The Partnership received approximately $1.1 million of principal and approximately $1.7 million of interest on the property loans. The interest received was not previously recognized as the property loans were on nonaccrual status. The interest realized is reported within other interest income on the consolidated statements of operations for the year ended December 31, 2017. Upon sale, the remaining unpaid principal and interest on the Ashley Square property loans transferred to Cross Creek due to cross-collateralization provisions within the property loan documents. All such balances transferred are fully reserved as of December 31, 2017.

During the year ended December 31, 2016, the Foundation for Affordable Housing (“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 years ended December 31, 2017 and 2016, the interest to be earned on the Ashley Square, Cross Creek, and the Lake Forest operating property loans receivable was in 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. 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, 2017.

The following table summarizes the changes in the Partnership’s loan loss reserves for the years ended December 31, 2017, 2016 and 2015:

	For the Years Ended December 31,
	2017		2016		2015
Balance, beginning of year	$	7,098,814	$	7,098,814	$	7,098,814
Provision for loan loss ⁽¹⁾		295,000	-		-
Balance, end of year	$	7,393,814	$	7,098,814	$	7,098,814

(1) See table below for a summary of terms for the individual Term A/B Trust securitizations. Activity for the year ended December 31, 2017 consists of the reversal of $55,000 allowance for loan loss related to Lake Forest and the increase of $350,000 allowance for loan loss related to Ashley Square. The net provision for loan loss for the year ended December 31, 2017 is recorded as a reduction to other interest income on the consolidated statements of operations.