RESTRICTED DEPOSITS AND FUNDED RESERVES

12 Months Ended

Dec. 31, 2019

RESTRICTED DEPOSITS AND FUNDED RESERVES

RESTRICTED DEPOSITS AND FUNDED RESERVES

NOTE 4 - RESTRICTED DEPOSITS AND FUNDED RESERVES

	At December 31,
	2019		2018
	(in thousands)
Tenant security deposits	$	4,325	$	4,156
Real estate tax and insurance escrows		2,058		2,225
Replacement reserves		1,997		2,472
	$	8,380	$	8,853

Tenant Security Deposits

We have set aside funds to repay tenant security deposits upon tenant move-out.

Real Estate Tax and Insurance Escrows

Pursuant to the terms of certain mortgages, we have established and maintain real estate tax escrows and insurance escrows to pay real estate taxes and insurance. We are required to contribute to the account monthly an amount equal to 1/12 of the estimated real estate taxes and insurance premiums.

Replacement Reserves

Pursuant to the terms of certain mortgages, we have established and maintain several replacement reserve accounts. We make monthly deposits into the replacement reserve accounts to be used for repairs and replacements on the property. Certain replacement reserve accounts require authorization from the mortgage company for withdrawals.