NOTE 4 - MORTGAGE NOTES PAYABLE, NET

The following is a summary of mortgage notes payable, net (in thousands):



	March 31, 2016							December 31, 2015
Property	Mortgage balance		Deferred Finance Costs, Net ⁽¹⁾			Carrying Value		Mortgage balance		Deferred Finance Costs, Net⁽¹⁾			Carrying Value
Bent Oaks	$	5,708	$	(46	)	$	5,662	$	5,731	(50		)	$	5,681
Cape Cod	5,927		(46		)	5,881		5,951		(51		)	5,900
Woodhollow	4,897		(40		)	4,857		4,916		(43		)	4,873
Village	9,247		(108		)	9,139		9,293		(117		)	9,176
Total	$	25,779	$	(240	)	$	25,539	$	25,891	$	(261	)	$	25,630

(1) Deferred financing costs include unamortized costs incurred to obtain financing which are being amortized over the term of the related debt.

The following table includes additional information about the Partnership's mortgage notes payable, net (in thousands):



Property	Maturity Date		Annual Interest Rate	Monthly Debt Service
Bent Oaks	01/01/2019	⁽²⁾	5.99%	$	37	⁽¹⁾
Cape Cod	01/01/2019	⁽²⁾	5.91%	$	38	⁽¹⁾
Woodhollow	01/01/2019	⁽²⁾	6.14%	$	32	⁽¹⁾
Village	04/01/2019		3.76%	$	44	⁽¹⁾


(1)	Monthly payment includes principal and interest. Interest is at a fixed rate.


(2)	The Partnership has an option to extend the maturity date for an additional one year to January 1, 2020. During the extension

period, the interest rate would convert to the Federal Home Loan Mortgage Corporation Bill Index Rate plus 2.5%.

Annual principal payments on the mortgage notes payable for the future years ending March 31, are as follows (in

thousands):



2017	$	460
2018	485
2019	16,159
2020	8,675
	$	25,779

The mortgage notes payable are with recourse only to the Properties securing them subject to certain limited standard exceptions, as defined in the mortgage notes, which the GP has guaranteed with respect to each property. These exceptions are referred to as “carveouts”. In general, carveouts relate to damages suffered by the lender for a subsidiary’s failure to pay rents, insurance or condemnation proceeds to the lender, to pay water, sewer and other public assessments or charges, to pay environmental compliance costs or to deliver books and records, in each case as required in the loan documents. The exceptions also require the GP to guarantee payment of audit costs, lender’s enforcement of its rights under the loan documents and payment of the loan if the subsidiary voluntarily files for bankruptcy or seeks reorganization, or if a related party of the subsidiary does so with respect to the subsidiary.

Deferred financing costs include unamortized costs incurred to obtain financing which are being amortized over the term of the related debt. Accumulated amortization as of March 31, 2016 and December 31, 2015 was $507,000 and $486,000 respectively. Estimated amortization of existing deferred financing costs for the next four years ending March 31, is as follows (in thousands):



2017	$	83
2018	81
2019	73
2020	3
	$	240