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Transactions with Related Parties (Tables)

9 Months Ended

Sep. 30, 2019

Summary of Transactions with Related Parties Reflected in the Partnership's Consolidated Financial Statements

The following table summarizes transactions with related parties that are reflected in the Partnership’s condensed consolidated financial statements for the three and nine months ended September 30, 2019 and 2018:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2019		2018		2019		2018
Partnership administrative fees paid to AFCA 2 ⁽¹⁾	$	914,000	$	940,000	$	2,714,000	$	2,789,000
Property management fees paid to an affiliate ⁽²⁾		28,000		49,000		101,000		147,000
Reimbursable franchise margin taxes incurred on behalf of unconsolidated entities ⁽³⁾		12,000		-		44,000		-

(1)

The General Partner of the Partnership, AFCA 2, is entitled to receive an administrative fee from the Partnership equal to 0.45% per annum of the outstanding principal balance of any of its MRBs, property loans collateralized by real property, and other investments for which the owner of the financed property or other third party is not obligated to pay such administrative fee directly to AFCA 2. The disclosed amounts represent administrative fees paid or accrued during the periods specified and are reported within general and administrative expenses on the Partnership’s condensed consolidated statements of operations.

(2)

An affiliate of AFCA 2, Burlington Capital Properties, LLC (“Properties Management”), provides property management, administrative and marketing services for the MF Properties (excluding Suites on Paseo). The property management fees are reported within real estate operating expenses in the Partnership’s condensed consolidated statements of operations.

(3)

The Partnership pays franchise margin taxes on revenues in Texas related to its investments in unconsolidated entities. Such taxes are paid by the Partnership as the unconsolidated entities are required by tax regulations to be included in the Partnership’s group tax return. The Partnership is then reimbursed for franchise margin taxes paid on behalf of the unconsolidated entities.

Summary of Transactions Between Borrowers of Partnership's MRBs and Affiliates

. The following table summarizes transactions between borrowers of the Partnership’s MRBs and affiliates for the three and nine months ended September 30, 2019 and 2018:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2019		2018		2019		2018
Non-Partnership property administrative fees received by AFCA 2 ⁽¹⁾		9,000		17,000	$	27,000	$	60,000
Investment/mortgage placement fees received by AFCA 2 ⁽²⁾		-		1,189,000		822,000		2,787,000
MRB redemption administrative fee received by AFCA 2 ⁽³⁾		-		114,000		-		114,000

(1)

AFCA 2 received administrative fees directly from the owners of certain properties financed by certain MRBs held by the Partnership. These administrative fees equal 0.45% per annum of the outstanding principal balance of the MRBs. These amounts represent administrative fees received by AFCA 2 during the periods specified.

(2)	AFCA 2 received placement fees in connection with the acquisition of certain MRBs and investments in unconsolidated entities.

(3)	AFCA 2 received a one-time administrative fee related to early redemption of the Lake Forest MRB from the property in September 2018.