Related Party Transactions

9 Months Ended

Sep. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions

 RELATED PARTY TRANSACTIONS

In accordance with the terms of the Partnership Agreement, the Partnership is obligated to reimburse the Managing General Partner or its affiliates for certain direct expenses and payroll expenses in connection with managing the Partnership.  Payroll expenses are reimbursed at a factor of 1.75 times base salary.  For the three and nine months ended September 30, 2013, the Partnership paid $21,793 and $71,383, respectively, and $27,147 and $74,964, for the three and nine months period ended September 20, 2012, respectively, to the Managing General Partner or its affiliates as direct reimbursement of expenses incurred on behalf of the Partnership.  In addition, certain employees of the Managing General Partner provided legal and tax accounting services to the Partnership.  These services are reimbursed comparable to third party service charges.  For the three and nine months ended September 30, 2013, the Partnership paid $24,576 and $88,316, respectively. For the three and nine months ended September 30, 2012, the Partnership paid $38,653 and $114,377, respectively, to the Managing General Partner or its affiliates for these services.  Such reimbursed expenses are included in the accompanying condensed statements of operations as general and administrative expenses.

In accordance with the terms of the Partnership Agreement, the Partnership is obligated to pay the Managing General Partner an annual incentive management fee (Management Fee) after all other expenses of the Partnership are paid.  The amount of the Management Fee shall be equal to 0.25% of original invested assets, as defined in the Partnership Agreement, and shall be payable from the Partnership's cash available for distribution, as defined in the Partnership Agreement, as of the end of each calendar year, as follows:

(i) First, on a monthly basis as an operating expense before any distributions to limited partners in an annual amount equal to $95,208; and

(ii) Second, after distributions to the limited partners in the amount of one percent of the gross proceeds of the offering, the balance of such 0.25% of invested assets.

For each of the three months ended September 30, 2013 and 2012, the Partnership paid the Managing General Partner a Management Fee of $23,802. For each of the nine month periods ended September 30, 2013 and 2012, the Partnership paid the Managing General Partner a management fee of $71,406.

In accordance with the terms of the Partnership Agreement, in September 2012, the Managing General Partner received a disposition fee equal to 5% of the proceeds received from the sale of Hillview Terrace. The disposition fee of $92,000 is netted against the related gain on disposition of investment in partnership during the three and nine months ended September 30, 2012.

In accordance with the terms of the Partnership Agreement, in August 2013, the Managing General Partner received a disposition fee equal to 5% of the proceeds received from the sale of Westwood Village. The disposition fee of $154,250 is netted against the related gain on disposition of investment in partnership during the three and nine months ended September 30, 2013.