SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2011

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 16. SUBSEQUENT EVENTS

On July 27, 2011, the Partnership financed the Battle Green Apartments with a new $5,000,000 mortgage at 4.95% which matures in August 2026. Principal payments will be made using a 30 year amortization schedule.  Deferred financing costs associated with this mortgage totaled approximately $90,000 and accordingly the effective interest rate is 5.07%.  After payment of the existing loan of $3,998,573 described in Note 2, approximately $1,000,000 was received by the Partnership.

On August 1, 2011 the Partnership elected to pay an additional $1,000,000 on the $7,168,000 note described in Note 3  to reduce the outstanding loan balance to $3,668,600.