Loan Receivables

6 Months Ended

Jun. 30, 2011

Loan Receivables

4. Loan Receivables

          The following summarizes the Company’s loan receivables at:

	June 30,
	2011			December 31, 2010
Beginning balance, January 1, 2011 and 2010, respectively	$	36,610,638		$	28,970,129
New capital improvement loans issued		523,943			1,415,579
Working capital and other loans issued		3,350,244			14,705,259
Reserve for uncollectible loans		(323,639	)		(750,000	)
Loan write offs		(86,156	)		—
Loan amortization and repayments		(7,970,495	)		(7,730,329	)
	$	32,104,535		$	36,610,638

          The Company’s reserve for uncollectible loan receivables balances at June 30, 2011 and December 31, 2010 was $1,073,639 and $750,000, respectively. The activity for the three and six months ended June 30, 2011 consisted of additional reserves of $166,322 and $323,639, respectively.

          During 2011 and 2010, the Company funded loans for both working capital and capital improvement purposes to various operators and tenants. All loans held by the Company accrue interest. The payments received from the operator or tenant cover both interest accrued as well as amortization of the principal balance due. Any payments received from the tenant or operator made outside of the normal loan amortization schedule are considered principal prepayments and reduce the outstanding loan receivables balance.

          Interest income earned on loan receivables for the three and six months ended June 30, 2011 and 2010 was $994,243, $1,972,757, $1,037,667, and $1,819,973, respectively.

AVIV HEALTHCARE PROPERTIES LIMITED PARTNERSHIP AND SUBSIDIARIES

Loan Receivables

4. Loan Receivables

          The following summarizes the Partnership’s loan receivables at:

	June 30,			December 31,
	2011			2010
Beginning balance, January 1, 2011 and 2010, respectively	$	36,610,638		$	28,970,129
New capital improvement loans issued		523,943			1,415,579
Working capital and other loans issued		3,350,244			14,705,259
Reserve for uncollectible loans		(323,639	)		(750,000	)
Loan write offs		(86,156	)		—
Loan amortization and repayments		(7,970,495	)		(7,730,329	)
	$	32,104,535		$	36,610,638

          The Partnership’s reserve for uncollectible loan receivables balances at June 30, 2011 and December 31, 2010 was $1,073,639 and $750,000, respectively. The activity for the three and six months ended June 30, 2011 consisted of additional reserves of $166,322 and $323,639, respectively.

          During 2011 and 2010, the Partnership funded loans for both working capital and capital improvement purposes to various operators and tenants. All loans held by the Partnership accrue interest. The payments received from the operator or tenant cover both interest accrued as well as amortization of the principal balance due. Any payments received from the tenant or operator made outside of the normal loan amortization schedule are considered principal prepayments and reduce the outstanding loan receivables balance.

          Interest income earned on loan receivables for the three and six months ended June 30, 2011 and 2010 was $994,243, $1,972,757, $1,037,667, and $1,819,973, respectively.