Related Party Disclosures

9 Months Ended

Sep. 30, 2011

Related Party Disclosures

Related Party Transactions Disclosure [Text Block]

Note C - Transactions with Affiliated Parties

The Partnership has no employees and depends on the Managing General Partner and its affiliates for the management and administration of all Partnership activities. The Partnership Agreement provides for payments to affiliates for property management services based on a percentage of revenue and for reimbursement of certain expenses incurred by affiliates on behalf of the Partnership.

Affiliates of the Managing General Partner received 5% of gross receipts from the Partnership's property as compensation for providing property management services. The Partnership paid to such affiliates approximately $58,000 and $56,000 for the nine months ended September 30, 2011 and 2010, respectively, which are included in operating expenses.

Affiliates of the Managing General Partner charged the Partnership for reimbursement of accountable administrative expenses amounting to approximately $50,000 and $41,000 for the nine months ended September 30, 2011 and 2010, respectively, which is included in general and administrative expenses, investment property and gain from sale of discontinued operations. The portion of these reimbursements included in investment property and gain from sale of discontinued operations for the nine months ended September 30, 2011 and 2010 are construction management services provided by an affiliate of the Managing General Partner of approximately $9,000 and $6,000, respectively. At December 31, 2010, approximately $154,000 of these accountable administrative expenses were unpaid and were included in due to affiliates. No such amounts were due to affiliates at September 30, 2011.

For services relating to the administration of the Partnership and operation of the Partnership’s property, the Managing General Partner was entitled to receive payment for non-accountable expenses up to a maximum of $100,000 per year, based upon the original number of Partnership units sold, subject to certain limitations. No such reimbursements were earned during the nine months ended September 30, 2011 or 2010.

Upon the sale of the Partnership's property, NPI Equity was entitled to an incentive compensation fee equal to 3% of the difference between the sales price of the property and the appraised value for such property at February 1, 1992. Payment of the incentive compensation fee is subordinated to the receipt by the limited partners, of: (a) distributions from capital transaction proceeds of an amount equal to their appraised investment in the Partnership at February 1, 1992, and (b) distributions from all sources (capital transactions as well as cash flow) of an amount equal to six percent (6%) per annum cumulative, non-compounded, on their appraised investment in the Partnership at February 1, 1992. As these preferences were met prior to 2010, during the three and nine months ended September 30, 2011, the Managing General Partner earned and was paid an incentive compensation fee of approximately $115,000 in connection with the sale of Willow Park on Lake Adelaide Apartments (as discussed in “Note D – Disposition of Investment Property”) which is reflected as a reduction of gain from sale of discontinued operations.

In accordance with the Partnership Agreement, AIMCO Properties, L.P., an affiliate of the Managing General Partner, advanced the Partnership approximately $66,000 and $72,000 during the nine months ended September 30, 2011 and 2010, respectively, to fund operating expenses at Willow Park on Lake Adelaide Apartments. The advances bore interest at the prime rate plus 2% per annum. Interest expense during the nine months ended September 30, 2011 and 2010 was approximately $36,000 and $28,000, respectively. During the nine months ended September 30, 2011 and 2010, the Partnership repaid advances and associated accrued interest of approximately $1,055,000 and $30,000, respectively, with proceeds from the sale of Willow Park on Lake Adelaide Apartments and cash from operations, respectively. At December 31, 2010, approximately $953,000 of advances and associated accrued interest was due to AIMCO Properties, L.P., and was included in due to affiliates. There were no advances or associated accrued interest due to AIMCO Properties, L.P. at September 30, 2011.

The Partnership insured its property up to certain limits through coverage provided by Aimco, which is generally self-insured for a portion of losses and liabilities related to workers’ compensation, property casualty, general liability and vehicle liability. The Partnership insured its property above the Aimco limits through insurance policies obtained by Aimco from insurers unaffiliated with the Managing General Partner. During the nine months ended September 30, 2011, the Partnership was charged by Aimco and its affiliates approximately $24,000 for hazard insurance coverage and fees associated with policy claims administration.  The Partnership was charged by Aimco and its affiliates approximately $41,000 for insurance coverage and fees associated with policy claims administration during the year ended December 31, 2010.