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Extraordinary and Unusual Items
9 Months Ended
Sep. 30, 2011
Extraordinary and Unusual Items 
Unusual or Infrequent Items Disclosure [Text Block]

Note C – Casualty Events

 

In January 2010, Lakeside Place Apartments suffered fire damage to twenty four rental units. The cost to reconstruct the damaged units was approximately $2,044,000 including approximately $309,000 of clean up and other non-capitalizable costs. The Partnership expects to receive approximately $81,000 of insurance proceeds for lost rents, which is included in receivables and deposits at September 30, 2011. During the nine months ended September 30, 2011 and 2010, the Partnership incurred approximately $70,000 and $133,000, respectively, of clean up and other non-capitalized costs, which were included in operating expenses. As of September 30, 2011, the Partnership has received total insurance proceeds of approximately $1,533,000, which included approximately $133,000 related to clean up costs. These insurance proceeds were received during the nine months ended September 30, 2010. The $133,000 received for clean up costs was reflected as a reduction to operating expenses for the nine months ended September 30, 2010. During the nine months ended September 30, 2010, the Partnership recognized a casualty gain of approximately $1,370,000 as a result of the write-off of undepreciated damaged assets of approximately $30,000. The insurance proceeds received were being held in escrow with the mortgage lender and were being released to the Partnership as repairs were completed. The balance in the lender held escrow was approximately $225,000 at December 31, 2010. These funds were released to the Partnership during the nine months ended September 30, 2011. The Partnership anticipates receiving additional insurance proceeds and recognizing additional gain related to this casualty during 2011.

 

In June 2009, Preston Creek Apartments suffered storm damage to the roofing on its buildings.  The roofs were repaired in July 2009 at a cost of approximately $110,000. During the nine months ended September 30, 2010, the Partnership received approximately $110,000 of insurance proceeds related to this event, which is included in income from discontinued operations.  Preston Creek Apartments was sold to a third party on August 5, 2009.

 

In April 2009, Lakeside Place Apartments suffered storm damage to twelve of its rental units of approximately $26,000. During the nine months ended September 30, 2010, the Partnership received approximately $19,000 in insurance proceeds and recognized a casualty gain during the nine months ended September 30, 2010 of approximately $19,000 as a result of the write off of undepreciated damaged assets of less than $1,000.