10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2021

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-31568

New England Realty Associates Limited Partnership

(Exact name of registrant as specified in its charter)

Massachusetts	04-2619298
(State or other jurisdiction of	(I.R.S. employer
incorporation or organization)	identification no.)
39 Brighton Avenue, Allston, Massachusetts	02134
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (617) 783-0039

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated Filer ☒
Non-accelerated filer ☐	Smaller reporting company ☒
	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class:	Trading Symbol	Name of each exchange on which registered:
Class A	NEN	NYSE MKT Exchange

As of May 6, 2021, there were 97,405 of the registrant’s Class A units (2,922,151 Depositary Receipts) of limited partnership issued and outstanding and 23,134 Class B units issued and outstanding.

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP

INDEX

PART I—FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020	4
	Consolidated Statements of Income for the Three Months Ended March 31, 2021 and 2020	5
	Consolidated Statements of Changes in Partners’ Capital for the Three Months Ended March 31, 2021 and 2020	6
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2021 and 2020	7
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	38
Item 4.	Controls and Procedures	39
PART II—OTHER INFORMATION
Item 1.	Legal Proceedings	39
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	39
Item 3.	Defaults Upon Senior Securities	40
Item 4.	Mine Safety Disclosure	40
Item 5.	Other Information	40
Item 6.	Exhibits	40
SIGNATURES		42

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NEW ENGLAND REALTY ASSOCIATES, L.P.

PART 1 -- FINANCIAL INFORMATION

Item 1. Financial Statements

The accompanying unaudited consolidated balance sheets, statements of income, changes in partners’ capital, and cash flows and related notes thereto, have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the disclosures required by GAAP for complete financial statements. The financial statements reflect all adjustments consisting only of normal, recurring adjustments, which are, in the opinion of management, necessary for a fair presentation for the interim periods.

The consolidated balance sheet as of December 31, 2020 has been derived from the audited consolidated balance sheet at that date but does not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.

The aforementioned financial statements should be read in conjunction with the notes to the aforementioned financial statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations and the financial statements and notes thereto included in New England Realty Associates L.P.’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

The results of operations for the three month period ended March 31, 2021 are not necessarily indicative of the results to be expected for the entire fiscal year or any other period.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

	March 31,		December 31,
	2021		2020
ASSETS		(Unaudited)
Rental Properties	$	261,361,758	$	264,609,887
Cash and Cash Equivalents		20,822,344		18,646,972
Rents Receivable		1,224,948		1,412,074
Real Estate Tax Escrows		546,426		534,941
Prepaid Expenses and Other Assets		4,776,893		5,054,959
Investments in Unconsolidated Joint Ventures		1,400,524		1,410,769
Total Assets	$	290,132,893	$	291,669,602
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable		282,951,918		283,444,533
Notes Payable		17,000,000		17,000,000
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture		21,850,666		21,339,743
Accounts Payable and Accrued Expenses		4,075,165		3,888,237
Advance Rental Payments and Security Deposits		7,187,229		7,466,134
Total Liabilities		333,064,978		333,138,647
Commitments and Contingent Liabilities (Notes 3 and 9)		—		—
Partners’ Capital 121,756 and 121,756 units outstanding in 2021 and 2020 respectively		(42,932,085)		(41,469,045)
Total Liabilities and Partners’ Capital	$	290,132,893	$	291,669,602

See notes to consolidated financial statements.

4

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended
	March 31,
	2021		2020
Revenues
Rental income	$	14,980,116	$	16,253,430
Laundry and sundry income		108,673		122,154
		15,088,789		16,375,584
Expenses
Administrative		652,186		584,658
Depreciation and amortization		3,905,918		4,565,467
Management fee		605,391		648,993
Operating		2,045,968		1,668,402
Renting		261,966		196,871
Repairs and maintenance		1,970,087		2,086,218
Taxes and insurance		2,252,134		2,280,541
		11,693,650		12,031,150
Income Before Other Income (Expense)		3,395,139		4,344,434
Other Income (Expense)
Interest income		21		107
Interest expense		(3,364,170)		(3,450,325)
Income (Loss) from investments in unconsolidated joint ventures		(325,170)		474,567
		(3,689,319)		(2,975,651)
Net Income (Loss)	$	(294,180)	$	1,368,783
Net Income (Loss) per Unit	$	(2.42)	$	11.23
Weighted Average Number of Units Outstanding		121,756		121,877

See notes to consolidated financial statements.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNER’S CAPITAL

(Unaudited)

	Units						Partners’s Capital
	Limited		General		Treasury		Limited				General
	Class A	Class B	Partnership	Subtotal	Units	Total	Class A		Class B		Partnership		Total
Balance January 1, 2020	144,180	34,243	1,802	180,225	58,247	121,978	$	(30,287,245)	$	(7,159,715)	$	(376,827)	$	(37,823,787)
Distribution to Partners	—	—	—	—	—	—		(935,338)		(222,143)		(11,692)		(1,169,173)
Stock Buyback	—	—	—	—	219	(219)		(74,095)		(3,900)		(311,952)		(389,947)
Net Income	—	—	—	—	—	—		1,095,026		260,069		13,688		1,368,783
Balance March 31, 2020	144,180	34,243	1,802	180,225	58,466	121,759	$	(30,201,652)		(7,125,689)		(686,783)		(38,014,124)
Balance January 1 , 2021	144,180	34,243	1,802	180,225	58,469	121,756	$	(33,203,447)	$	(7,852,318)	$	(413,280)	$	(41,469,045)
Distribution to Partners	—	—	—	—	—	—		(935,088)		(222,083)		(11,689)		(1,168,860)
Stock Buyback	—	—	—	—	—	—		—		—		—		—
Net (Loss)	—	—	—	—	—	—		(235,344)		(55,894)		(2,942)		(294,180)
Balance March 31, 2021	144,180	34,243	1,802	180,225	58,469	121,756	$	(34,373,879)	$	(8,130,295)	$	(427,911)	$	(42,932,085)

See notes to consolidated financial statements.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended March 31,
	2021		2020
Cash Flows from Operating Activities
Net income (loss)	$	(294,180)	$	1,368,783
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization		3,905,918		4,565,467
Amortization of deferred financing costs		59,960		59,876
Loss (Income) from investments in joint ventures		325,170		(474,567)
Allowance for doubtful accounts		1,271,051		197,800
Change in operating assets and liabilities
Proceeds from unconsolidated joint ventures		8,500		—
(Increase) in rents receivable		(1,083,925)		(351,497)
Increase (Decrease) in accounts payable and accrued expense		186,928		(880,166)
(Increase) in real estate tax escrow		(11,485)		(81,286)
Decrease in prepaid expenses and other assets		254,378		59,110
(Decrease) in advance rental payments and security deposits		(278,905)		(231,217)
Total Adjustments		4,637,590		2,863,520
Net cash provided by operating activities		4,343,410		4,232,303
Cash Flows From Investing Activities
Distribution in excess of investment in unconsolidated joint ventures		187,500		9,062
(Investment) in unconsolidated joint ventures		—		(9,062)
Improvement of rental properties		(634,103)		(1,047,185)
Net cash provided by (used in) investing activities		(446,603)		(1,047,185)
Cash Flows from Financing Activities
Payment of financing costs		—		(132,306)
Proceeds of mortgage notes payable		—		3,781,877
Payment of note payable		—		(1,000,000)
Principal payments of mortgage notes payable		(552,575)		(575,128)
Stock buyback		—		(389,947)
Distributions to partners		(1,168,860)		(1,169,173)
Net cash provided by (used in) financing activities		(1,721,435)		515,323
Net Increase in Cash and Cash Equivalents		2,175,372		3,700,441
Cash and Cash Equivalents, at beginning of period		18,646,972		7,546,324
Cash and Cash Equivalents, at end of period	$	20,822,344	$	11,246,765

See notes to consolidated financial statements.

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NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2021

(Unaudited)

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

Line of Business: New England Realty Associates Limited Partnership (“NERA” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own 29 properties which include 21 residential buildings; 4 mixed use residential, retail and office buildings; 3 commercial buildings and individual units at one condominium complex. These properties total 2,892 apartment units, 19 condominium units and 108,043 square feet of commercial space. Additionally, the Partnership also owns a 40 - 50% interest in 7 residential and mixed use properties consisting of 688 apartment units, 12,500 square feet of commercial space and a 50 car parking lot. The properties are located in Eastern Massachusetts and Southern New Hampshire.

Basis of Presentation: The financial statements have been prepared in conformity with GAAP. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. These estimates and assumptions are based on management’s historical experience that are believed to be reasonable at the time. However, because future events and their effects cannot be determined with certainty, the determination of estimates requires the exercise of judgement. The Partnership’s critical accounting policies are those which require assumptions to be made about matters that are highly uncertain. Different estimates could have a material effect on the Partnership’s financial results. Judgements and uncertainties affecting the application of these policies and estimates may result in materially different amounts being reported under different conditions and circumstances.

Principles of Consolidation: The consolidated financial statements include the accounts of NERA and its subsidiaries. NERA has a 99.67% to 100% ownership interest in each subsidiary except for the seven limited liability companies (the “Investment Properties” or “Joint Ventures”) in which the Partnership has a 40 - 50% ownership interest. The consolidated group is referred to as the “Partnership”. Minority interests are not recorded, since they are insignificant. All significant intercompany accounts and transactions are eliminated in consolidation. The Partnership accounts for its investment in the above-mentioned Investment Properties using the equity method of consolidation. (See Note 14: Investment in Unconsolidated Joint Ventures.)

The Partnership accounts for its investments in joint ventures using the equity method of accounting. These investments are recorded initially at cost, as Investments in Unconsolidated Joint Ventures, and subsequently adjusted for equity in earnings and cash contributions and distributions. Generally, the Partnership would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Partnership has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Partnership only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. In 2013 and beyond, the carrying values of some investments fell below zero. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits. (See Note 14: Investment in Unconsolidated Joint Ventures.)

The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the

8

variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE.

Impairment: On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties or investments in unconsolidated subsidiaries may be impaired. In addition to identifying any specific circumstances which may affect a property or properties, management considers other criteria for determining which properties may require assessment for potential impairment. The criteria considered by management include reviewing low leased percentages, significant near term lease expirations, recently acquired properties, current and historical operating and/or cash flow losses, near term mortgage debt maturities or other factors that might impact the Partnership’s intent and ability to hold property. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved.

Revenue Recognition: Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Revenue from commercial leases also include reimbursements and recoveries received from tenants for certain costs as provided in the lease agreement. The costs generally include real estate taxes, utilities, insurance, common area maintenance and recoverable costs. Rental concessions are also accounted for on the straight-line basis.

Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease amounts are accounted for as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases.

The Partnership evaluates the non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues). If both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component. The Partnership elected an allowed practical expedient. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred.

Rental Properties: Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions which improve or extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the

9

Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant.

Other intangible assets acquired include amounts for in-place lease values and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships.

In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required.

Leasing Fees: Leasing fees are capitalized and amortized on a straight-line basis over the life of the related lease. Unamortized balances are expensed when the corresponding fee is no longer applicable.

Deferred Financing Costs: Costs incurred in obtaining financing are capitalized and amortized over the term of the related indebtedness. Deferred financing costs are presented in the balance sheet as a direct deduction from the carrying value of the debt liability to which they relate, except deferred financing costs related to the revolving credit facility, which are presented in prepaid expenses and other assets. In all cases, amortization of such costs is included in interest expense and was approximately $60,000 and $60,000 for the three months ended March 31, 2021 and 2020, respectively.

Income Taxes: The financial statements have been prepared on the basis that NERA and its subsidiaries are entitled to tax treatment as partnerships. Accordingly, no provision for income taxes have been recorded (See Note 13).

Cash Equivalents: The Partnership considers cash equivalents to be all highly liquid instruments purchased with a maturity of three months or less.

Segment Reporting: Operating segments are revenue producing components of the Partnership for which separate financial information is produced internally for management. Under the definition, NERA operated, for all periods presented, as one segment.

Comprehensive Income: Comprehensive income is defined as changes in partners’ equity, exclusive of transactions with owners (such as capital contributions and dividends). NERA did not have any comprehensive income items in 2020 or 2019 other than net income as reported.

Income (Loss) Per Depositary Receipt: Effective January 3, 2012, the Partnership authorized a 3-for-1 forward split of its Depositary Receipts listed on the NYSE Amex and a concurrent adjustment of the exchange ratio of Depositary Receipts for Class A Units of the Partnership from 10-to-1 to 30-to-1, such that each Depositary Receipt represents one-thirtieth (1/30) of a Class A Unit of the Partnership. All references to Depositary Receipts in the report are reflective of the 3- for-1 forward split.

Income Per Unit: Net income per unit has been calculated based upon the weighted average number of units outstanding during each period presented. The Partnership has no dilutive units and, therefore, basic net income is the same as diluted net income per unit (see Note 7: Partner’s Capital).

Concentration of Credit Risks and Financial Instruments: The Partnership’s properties are located in New England, and the Partnership is subject to the general economic risks related thereto. No single tenant accounted for more

10

than 5% of the Partnership’s revenues in 2021 or 2020. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At March 31, 2021, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, earning interest at rates from 0.01% to 0.03%. At March 31, 2021 and December 31, 2020, respectively approximately $21,116,000, and $18,830,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts.

Advertising Expense: Advertising is expensed as incurred. Advertising expense was $89,350 and $69,056 for the three months ended March 31, 2021 and 2020, respectively.

Rental Property Held for Sale: When assets are identified by management as held for sale, the Partnership discontinues depreciating the assets and estimates the sales price, net of selling costs, of such assets. The Partnership generally considers assets to be held for sale when the transaction has received appropriate corporate authority, and there are no significant contingencies relating to the sale. If, in management’s opinion, the estimated net sales price, net of selling costs, of the assets which have been identified as held for sale is less than the carrying value of the assets, a valuation allowance is established.

Interest Capitalized: The Partnership follows the policy of capitalizing interest as a component of the cost of rental property when the time of construction exceeds one year. During the three months ended March 31, 2021 and 2020 there was no capitalized interest.

Extinguishment of Debt: When existing mortgages are refinanced with the same lender and it is determined that the refinancing is substantially different, then they are recorded as an extinguishment of debt. However if it is determined that the refinancing is substantially the same, then they are recorded as an exchange of debt. All refinancing qualify as extinguishment of debt.

Reclassifications: Certain reclassifications have been made to prior period amounts in order to conform to current period presentation.

NOTE 2. RENTAL PROPERTIES

As of March 31, 2021, the Partnership and its Subsidiary Partnerships owned 2,892 residential apartment units in 25 residential and mixed-use complexes (collectively, the “Apartment Complexes”). The Partnership also owns 19 condominium units in a residential condominium complex, all of which are leased to residential tenants (collectively referred to as the “Condominium Units”). The Apartment Complexes and Condominium Units are located primarily in the metropolitan Boston area of Massachusetts.

Additionally, as of March 31, 2021, the Partnership and Subsidiary Partnerships owned a commercial shopping center in Framingham, commercial buildings in Newton and Brookline and mixed-use properties in Boston, Brockton and Newton, all in Massachusetts. These properties are referred to collectively as the “Commercial Properties.”

The Partnership also owned a 40% to 50% ownership interest in seven residential and mixed use complexes (the “Investment Properties”) at March 31, 2021 with a total of 688 apartment units, accounted for using the equity method of consolidation. See Note 14 for summary information on these investments.

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Rental properties consist of the following:

	March 31, 2021		December 31, 2020		Useful Life
Land, improvements and parking lots	$	86,867,393	$	86,867,393	15	-	40	years
Buildings and improvements		253,483,082		253,322,865	15	-	40	years
Kitchen cabinets		17,234,223		17,157,121	5	-	10	years
Carpets		11,304,573		11,146,634	5	-	10	years
Air conditioning		501,697		501,697	5	-	10	years
Laundry equipment		608,271		608,271	5	-	7	years
Elevators		1,885,265		1,885,265	20	-	40	years
Swimming pools		1,092,194		1,092,194	10	-	30	years
Equipment		17,750,185		17,596,043	5	-	30	years
Motor vehicles		211,660		211,660			5	years
Fences		46,871		46,872	5	-	15	years
Furniture and fixtures		7,781,841		7,697,137	5	-	7	years
Smoke alarms		496,641		496,641	5	-	7	years
Total fixed assets		399,263,896		398,629,793
Less: Accumulated depreciation		(137,902,138)		(134,019,906)
	$	261,361,758	$	264,609,887

NOTE 3. RELATED PARTY TRANSACTIONS

The Partnership’s properties are managed by an entity that is owned by the majority shareholder of the General Partner. The management fee is equal to 4% of gross receipts of rental revenue and laundry income on the majority of the Partnership’s properties and 3% on Linewt. Total fees paid were approximately $605,000 and $649,000 for the three months ended March 31, 2021 and 2020, respectively.

The Partnership Agreement permits the General Partner or Management Company to charge the costs of professional services (such as counsel, accountants and contractors) to NERA. During the three months ended March 31, 2021 and 2020, approximately $256,000 and $346,000, was charged to NERA for legal, accounting, construction, maintenance, brokerage fees, rental and architectural services and supervision of capital improvements. Of the 2021 expenses referred to above, approximately $46,000 consisted of repairs and maintenance, and $55,000 of administrative expense. Approximately $155,000 of expenses for construction, architectural services and supervision of capital projects were capitalized in rental properties. Additionally in 2021, the Hamilton Company received approximately $142,000 from the Investment Properties of which approximately $127,000 was the management fee, approximately $6,000 was for maintenance services, approximately $8,000 was for administrative services and approximately $1,000 for architectural services and supervision of capital projects. The management fee is equal to 4% of gross receipts of rental income on the majority of investment properties and 2% on Dexter Park.

The Partnership reimburses the management company for the payroll and related expenses of the employees who work at the properties. Total reimbursement was approximately $843,000 and $822,000 for the three months ended March 31, 2021 and 2020, respectively. The Management Company maintains a 401K plan for all eligible employees whereby the employees may contribute the maximum allowed by law. The plan also provides for discretionary contributions by the employer. For the three months ended March 31, 2021, the Partnership accrued $11,000 for the employer’s match portion to the plan. For the three months ended March 31, 2020, the Partnership contributed $11,000 for the employer’s match portion to the plan.

Bookkeeping and accounting functions are provided by the Management Company’s accounting staff, which consists of approximately 14 people. During the three months ended March 31, 2021 and 2020, the Management Company charged the Partnership $31,250 ($125,000 per year) for bookkeeping and accounting services included in administrative expenses above.

The Partnership has invested in seven limited partnerships, which have invested in mixed use residential apartment complexes. The Partnership has a 40% to 50% ownership interest in each investment property. The other

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investors are the Brown family related entities, and five current and previous employees of the Management Company. The Brown Family related entities’ ownership interest was between 47.6% and 59%. See Note 14 for a description of the properties and their operations.

NOTE 4. PREPAID EXPENSES and OTHER ASSETS

Approximately $2,790,000, and $2,830,000 of security deposits are included in prepaid expenses and other assets at March 31, 2021 and December 31, 2020, respectively. The security deposits and escrow accounts are restricted cash.

Also, included in prepaid expenses and other assets at March 31, 2021 and December 31, 2020 is approximately $1,225,000 and $1,073,000, respectively, held in escrow to fund future capital improvements.

Intangible assets on the acquisition of Mill Street Apartments are included in prepaid expenses and other assets. Intangible assets are approximately $45,000 net of accumulated amortization of approximately $1,373,000 and approximately $51,000 net of accumulated amortization of approximately $1,367,000 at March 31, 2021 and December 31, 2020, respectively.

Financing fees in association with the line of credit of approximately $9,000 and $42,000 are net of accumulated amortization of approximately $16,000 and $6,000 at March 31, 2021 and December 31, 2020 respectively.

NOTE 5. MORTGAGE NOTES PAYABLE

At March 31, 2021 and December 31, 2020, the mortgages payable consisted of various loans, all of which were secured by first mortgages on properties referred to in Note 2. At March 31, 2021, the interest rates on these loans ranged from 3.53% to 5.66%, payable in monthly installments aggregating approximately $1,257,000 including principal, to various dates through 2035. The majority of the mortgages are subject to prepayment penalties. At March 31, 2021, the weighted average interest rate on the above mortgages was 4.43%. The effective rate of 4.51% includes the amortization expense of deferred financing costs. See Note 12 for fair value information. The Partnership’s mortgage debt and the mortgage debt of its unconsolidated joint ventures generally is non-recourse except for customary exceptions pertaining to misuse of funds and material misrepresentations.

Financing fees of approximately $1,285,000 and $1,345,000 are net of accumulated amortization of approximately $1,624,000 and $1,564,000 at March 31, 2021 and December 31, 2020, respectively, which offset the total mortgage notes payable.

The Partnership has pledged tenant leases as additional collateral for certain of these loans.

Approximate annual maturities at March 31, 2021 are as follows:

2022—current maturities	$	2,620,000
2023		67,012,000
2024		38,298,000
2025		11,093,000
2026		21,647,000
Thereafter		143,567,000
		284,237,000
Less: unamortized deferred financing costs		(1,285,000)
	$	282,952,000

On March 31, 2020, Nera Brookside Associates, LLC (“Brookside Apartments”), entered into a Mortgage Note with KeyBank National Associates ( KeyBank) in the principal amount of $6,175,000. Interest only payments on the Note are payable on a monthly basis at a fixed interest rate of 3.53% per annum, and the principal amount of the Note is due and payable on April 1, 2035. The Note is secured by a mortgage on the Brookside apartment complex located at 5-12 Totman Drive, Woburn, Massachusetts pursuant to a Mortgage, Assignment of Leases and Rents and Security Agreement dated March 31, 2020. The Note is guaranteed by the Partnership pursuant to a Guaranty Agreement dated March 31, 2020. Brookside Apartments used the proceeds of the loan to pay off an outstanding loan of approximately

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$2,390,000, with the remaining portion of the proceeds added to cash reserves. In connection with this refinancing, there were closing costs of approximately $136,000.

Line of Credit

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000 revolving line of credit. The term of the line was for three years with a floating interest rate equal to a base rate of the greater of (a) the Prime Rate (b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the LIBOR Rate for a period of one month plus 1% per annum, plus the applicable margin of 2.5%. The agreement originally expired on July 31, 2017, and was extended until October 31, 2020. The costs associated with the line of credit extension in 2017 were approximately $128,000. Management is currently working with the lender on a three year renewal of the line of credit. As of April 30, 2021, the Partnership had not completed the renewal and exercised a one year extension. The Partnership paid an extension fee of approximately $37,500 in association with the extension.

The line of credit may be used for acquisition, refinancing, improvements, working capital and other needs of the Partnership. The line may not be used to pay distributions, make distributions or acquire equity interests of the Partnership.

The line of credit is collateralized by varying percentages of the Partnership’s ownership interest in 23 of its subsidiary properties and joint ventures. Pledged interests range from 49% to 100% of the Partnership’s ownership interest in the respective entities.

The Partnership paid fees to secure the line of credit. Any unused balance of the line of credit is subject to a fee ranging from 15 to 20 basis points per annum. The Partnership paid approximately $3,000 in fees for the three months ended March 31, 2021.

On December 19, 2019, the Partnership drew down on the line of credit in the amount of $20,000,000, used in conjunction with the purchase of Mill Street Apartments. On December 20, 2019, the Partnership paid down $2,000,000. On January 22, 2020, the Partnership paid down $1,000,000. As of March 31, 2021, the line of credit had an outstanding balance of $17,000,000.

The line of credit agreement has several covenants, such as providing cash flow projections and compliance certificates, as well as other financial information. The covenants include, but are not limited to the following: maintain a leverage ratio that does not exceed 65%; aggregate increase in indebtedness of the subsidiaries and joint ventures should not exceed $15,000,000; maintain a tangible net worth (as defined in the agreement) of a minimum of $150,000,000; a minimum ratio of net operating income to total indebtedness of at least 9.5%; debt service coverage ratio of at least 1.6 to 1, as well as other items. The Partnership is in compliance with these covenants as of March 31, 2021.

NOTE 6. ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS

The Partnership’s residential lease agreements may require tenants to maintain a one-month advance rental payment and/or a security deposit. At March 31, 2021, amounts received for prepaid rents of approximately $1,999,000 are included in cash and cash equivalents, and security deposits of approximately $2,790,000 are included in prepaid expenses and other assets and are restricted cash.

NOTE 7. PARTNERS’ CAPITAL

The Partnership has two classes of Limited Partners (Class A and B) and one category of General Partner. Under the terms of the Partnership Agreement, distributions to holders of Class B Units and General Partnership Units must represent 19% and 1%, respectively, of the total units outstanding. All classes have equal profit sharing and distribution rights, in proportion to their ownership interests.

In January 2021, the Partnership approved a quarterly distribution of $9.60 per Unit ($0.32 per Receipt), payable on March 31, 2021.

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In 2020, regular quarterly distributions of $9.60 per unit ($0.32 per receipt), were paid in March, June, September and December.

The Partnership has entered into a deposit agreement with an agent to facilitate public trading of limited partners’ interests in Class A Units. Under the terms of this agreement, the holders of Class A Units have the right to exchange each Class A Unit for 30 Depositary Receipts. The following is information per Depositary Receipt:

	Three Months Ended
	March 31,
	2021		2020
Net Income (Loss) per Depositary Receipt	$	(0.08)	$	0.37
Distributions per Depositary Receipt	$	0.32	$	0.32

NOTE 8. TREASURY UNITS

Treasury Units at March 31, 2021 are as follows:

Class A	46,775
Class B	11,109
General Partnership	585
	58,469

On August 20, 2007, NewReal, Inc., the General Partner authorized an equity repurchase program (“Repurchase Program”) under which the Partnership was permitted to purchase, over a period of twelve months, up to 300,000 Depositary Receipts (each of which is one-tenth of a Class A Unit). Over time, the General Partner has authorized increases in the equity repurchase program. On March 10, 2015, the General Partner authorized an increase in the Repurchase Program from 1,500,000 to 2,000,000 Depository Receipts and extended the Program for an additional five years from March 31, 2015 until March 31, 2020. On March 9, 2020, the General Partner extended the program for an additional five years from March 31, 2020 to March 31, 2025. The Repurchase Program requires the Partnership to repurchase a proportionate number of Class B Units and General Partner Units in connection with any repurchases of any Depositary Receipts by the Partnership based upon the 80%, 19% and 1% fixed distribution percentages of the holders of the Class A, Class B and General Partner Units under the Partnership’s Second Amended and Restated Contract of Limited Partnership. Repurchases of Depositary Receipts or Partnership Units pursuant to the Repurchase Program may be made by the Partnership from time to time in its sole discretion in open market transactions or in privately negotiated transactions. From August 20, 2007 through March 31, 2021, the Partnership has repurchased 1,428,437 Depositary Receipts at an average price of $28.43 per receipt (or $852.90 per underlying Class A Unit), 3,572 Class B Units and 188 General Partnership Units, both at an average price of $1,033.00 per Unit, totaling approximately $44,718,000 including brokerage fees paid by the Partnership.

During the three months ended March 31, 2021, the Partnership did not purchase any Depositary Receipts.

Given the economic uncertainty caused by the coronavirus issue, as of April 15, 2020, the Partnership has elected to temporarily suspend the repurchase program.

NOTE 9. COMMITMENTS AND CONTINGENCIES

From time to time, the Partnership is involved in various ordinary routine litigation incidental to its business. The Partnership either has insurance coverage or provides for any uninsured claims when appropriate. The Partnership is not involved in any material pending legal proceedings.

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NOTE 10. RENTAL INCOME

During the three months ended March 31, 2021, approximately 94% of rental income was related to residential apartments and condominium units with leases of one year or less. The majority of these leases expire in June, July and August. Approximately 6% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at March 31, 2021 as follows:

	Commercial
	Property Leases
2022	$	2,137,000
2023		1,527,000
2024		1,152,000
2025		503,000
2026		284,000
Thereafter		490,000
	$	6,093,000

The aggregate minimum future rental income does not include contingent rentals that may be received under various leases in connection with common area charges and real estate taxes. Aggregate contingent rentals from continuing operations were approximately $150,000 and $121,000 for the three months ended March 31, 2021 and 2020 respectively. Staples and Trader Joe’s, tenants at Staples Plaza, are approximately 25% of the total commercial rental income.

The following information is provided for commercial leases:

	Annual base				Percentage of
	rent for		Total square feet	Total number of	annual base rent for
Through March 31,	expiring leases		for expiring leases	leases expiring	expiring leases
2022	$	1,065,898	59,415	20	39	%
2023		221,861	6,392	6	8	%
2024		672,213	19,432	9	25	%
2025		395,806	14,868	8	15	%
2026		204,708	3,473	4	7	%
2027		23,340	724	1	1	%
2028		—	—	—	—	%
2029		—	—	—	—	%
2030		142,450	3,850	1	5	%
2031		—	—	—	—	%
Totals	$	2,726,276	108,154	49	100	%

Rents receivable are net of an allowance for doubtful accounts of approximately $1,271,000 and $1,454,000 at March 31, 2021 and December 31, 2020. Included in rents receivable at March 31, 2021 is approximately $84,000 resulting from recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis. The majority of this amount is for long-term leases at 62 Boylston Street, Cypress Street, and Staples Plaza in Massachusetts.

Rents receivable at March 31, 2021 also includes approximately $427,000 representing the deferral of rental concession primarily related to the residential properties.

NOTE 11. CASH FLOW INFORMATION

During the three months ended March 31, 2021 and 2020, cash paid for interest was approximately $3,306,000, and $3,229,000 respectively. Cash paid for state income taxes was approximately $56,000 and $76,000 during the three months ended March 31, 2021 and 2020 respectively. Additionally, during the three months ended March 31, 2020, the Partnership was involved in a non-cash financing activity of approximately $2,393,000 in connection with the refinancing of Brookside Apartments.

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NOTE 12. FAIR VALUE MEASUREMENTS

Fair Value Measurements on a Recurring Basis

At March 31, 2021 and December 31, 2020, we do not have any significant financial assets or financial liabilities that are measured at fair value on a recurring basis in our consolidated financial statements.

Financial Assets and Liabilities not Measured at Fair Value

At March 31, 2021 and December 31, 2020 the carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts receivable, and note payable, accounts payable and accrued expenses were representative of their fair values due to the short-term nature of these instruments or, the recent acquisition of these items.

At March 31, 2021 and December 31, 2020, we estimated the fair value of our mortgages payable and other notes based upon quoted market prices for the same (Level 1) or similar (Level 2) issues when current quoted market prices are available. We estimated the fair value of our secured mortgage debt that does not have current quoted market prices available by discounting the future cash flows using rates currently available to us for debt with similar terms and maturities (Level 3). The differences in the fair value of our debt from the carrying value are the result of differences in interest rates and/or borrowing spreads that were available to us at March 31, 2021 and December 31, 2020, as compared with those in effect when the debt was issued or acquired. The secured mortgage debt contain pre-payment penalties or yield maintenance provisions that could make the cost of refinancing the debt at lower rates exceed the benefit that would be derived from doing so.

The following methods and assumptions were used by the Partnership in estimating the fair value of its financial instruments:

● For cash and cash equivalents, accounts receivable, other assets, investment in partnerships, accounts payable, advance rents and security deposits: fair value approximates the carrying value of such assets and liabilities.

● For mortgage notes payable: fair value is generally based on estimated future cash flows, which are discounted using the quoted market rate from an independent source for similar obligations. Refer to the table below for the carrying amount and estimated fair value of such instruments.

The following table reflects the carrying amounts and estimated fair value of our debt.

		Carrying Amount		Estimated Fair Value
Mortgage Notes Payable
Partnership Properties
At March 31, 2021	*	$	282,951,918	$	296,779,258
At December 31, 2020	*	$	283,444,533	$	303,993,142
Investment Properties
At March 31, 2021	*	$	166,282,719	$	174,613,534
At December 31, 2020	*	$	166,308,029	$	179,647,759

* Net of unamortized deferred financing costs

Disclosure about fair value of financial instruments is based on pertinent information available to management as of March 31, 2021 and December 31, 2020. Although management is not aware of any factors that would significantly affect the fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since March 31, 2021 and current estimates of fair value may differ significantly from the amounts presented herein.

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NOTE 13. TAXABLE INCOME AND TAX BASIS

Taxable income reportable by the Partnership and includable in its partners’ tax returns is different than financial statement income because of tax free exchanges, different depreciation methods, different tax lives, other items with limited tax deductibility and timing differences related to prepaid rents, allowances and intangible assets at significant acquisitions. Federal taxable income of approximately $8,578,000 was approximately $7,153,000 more than statement income for the year ended December 31, 2020.The Federal cumulative tax basis of the Partnership’s real estate at December 31, 2020 is approximately $7,332,000 more than the statement basis. The primary reasons for the difference in tax basis are tax free exchanges, accelerated depreciation and bonus depreciation. The Partnership’s Federal tax basis in its joint venture investments is approximately $1,476,000 more than statement basis. State taxable income may be significantly different due to different tax treatments for certain items.

Certain entities included in the Partnership’s consolidated financial statements are subject to certain state taxes. These taxes are not significant and are recorded as operating expenses in the accompanying consolidates financial statements.

The Partnership adopted the amended provisions related to uncertain tax provisions of ASC 740, Income Taxes. As a result of the implementation of the guidance, the Partnership recognized no material adjustment regarding its tax accounting treatment. The Partnership expects to recognize interest and penalties related to uncertain tax positions, if any, as income tax expense, which would be included in general and administrative expense.

In the normal course of business the Partnership or one of its subsidiaries is subject to examination by federal, state and local jurisdictions in which it operates, where applicable. As of March 31, 2021, the tax years that generally remain subject to examination by the major tax jurisdictions under the statute of limitations is from the year 2017 forward.

NOTE 14. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

The Partnership has invested in seven limited partnerships and limited liability companies, the majority of which have invested in residential apartment complexes, with three Joint Ventures investing in commercial property. The Partnership has between a 40%-50% ownership interests in each investment. The other investors are the Brown Family related entities and five current and former employees of the Management Company. The Brown Family’s ownership interest was between 47.6% and 59%, with the balance owned by the others. A description of each investment is as follows:

On October 28, 2009 the Partnership invested approximately $15,925,000 in a joint venture to acquire a 40% interest in a residential property located in Brookline, Massachusetts. The property, Hamilton Park Towers LLC, referred to as Dexter Park, or Hamilton Park, is a 409 unit residential complex. The purchase price was $129,500,000. The original mortgage was $89,914,000 with an interest rate of 5.57% and was to mature in 2019. The mortgage called for interest only payments for the first two years of the loan and amortized over 30 years thereafter.

On May 31, 2018, Hamilton Park Towers, LLC , entered into a Mortgage Note with John Hancock Life Insurance Company (U.S.A.) in the principal amount of $125,000,000. Interest only payments on the Note are payable on a monthly basis at a fixed interest rate of 3.99% per annum, and the principal amount of the Note is due and payable on June 1, 2028. The Note is secured by a mortgage on the Dexter Park apartment complex located at 175 Freeman Street, Brookline, Massachusetts pursuant to a Mortgage, Assignment of Leases and Rents and Security Agreement dated May 31, 2018. The Note is guaranteed by the Partnership and HBC Holdings, LLC pursuant to a Guaranty Agreement dated May 31, 2018.

Hamilton Park used the proceeds of the loan to pay off an outstanding loan of approximately $82,000,000 and distributed approximately $41,200,000 to its’ owners. The Partnership’s share of the distribution was approximately $16,500,000. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for the investment using the equity method of accounting, although the Partnership has no legal obligation to fund its’ share of any future operating deficiencies as needed. In connection with this refinancing, the property incurred a defeasance charge of approximately $3,830,000. Based on its’ ownership in the property, the Partnership incurred 40% of this charge, an expense of approximately $1,532,000.

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At March 31, 2021, the balance on this mortgage before unamortized deferred financing costs is $125,000,000. This investment, Hamilton Park Towers, LLC is referred to as Dexter Park.

On March 7, 2005, the Partnership invested $2,000,000 for a 50% ownership interest in a building comprising 48 apartments, one commercial space and a 50-car surface parking lot located in Boston, Massachusetts. The purchase price was $14,300,000, with a $10,750,000 mortgage. The Joint Venture planned to operate the building and initiate development of the parking lot. In June 2007, the Joint Venture separated the parcels, formed an additional limited liability company for the residential apartments and obtained a mortgage on the property. The new limited liability company formed for the residential apartments and commercial space is referred to as Hamilton Essex 81, LLC. In August 2008, the Joint Venture restructured the mortgages on both parcels at Essex 81. On September 28, 2015, Hamilton Essex Development, LLC paid off the outstanding mortgage balance of $1,952,286. The Partnership made a capital contribution of $978,193 to Hamilton Essex Development LLC for its share of the funds required for the transaction. Additionally, the Partnership made a capital contribution of $100,000 to Hamilton Essex 81, LLC. On September 30, 2015, Hamilton Essex 81, LLC obtained a new 10 year mortgage in the amount of $10,000,000, interest only at 2.18% plus the one month Libor rate. The proceeds of the note were used to pay off the existing mortgage of $8,040,719 and the Partnership received a distribution of $978,193 for its share of the excess proceeds. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share of any future operating deficits if needed. At March 31, 2021, the balance on this mortgage before unamortized deferred financing costs is approximately $10,000,000. The investment in the parking lot is referred to as Hamilton Essex Development, LLC; the investment in the apartments is referred to as Hamilton Essex 81, LLC.

On March 2, 2005, the Partnership invested $2,352,000 for a 50% ownership interest in a 176-unit apartment complex with an additional small commercial building located in Quincy, Massachusetts. The purchase price was $23,750,000. The Joint Venture sold 127 of the units as condominiums and retained 49 units for long-term investment. The Joint Venture obtained a new 10-year mortgage in the amount of $5,000,000 on the units to be retained by the Joint Venture. The interest on the new loan was 5.67% fixed for the 10 year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan term. On July 8, 2016, Hamilton 1025 LLC paid off the outstanding balance of the mortgage balance. The Partnership made a capital contribution of $2,359,500 to Hamilton 1025, LLC for its share of the funds required for the transaction. After paying off the mortgage, the Partnership began to sell off the individual units. In 2019, all residential units were sold. The Partnership still owns the commercial building. This investment is referred to as Hamilton 1025, LLC.

In September 2004, the Partnership invested approximately $5,075,000 for a 50% ownership interest in a 42-unit apartment complex located in Lexington, Massachusetts. The purchase price was $10,100,000. In October 2004, the Joint Venture obtained a mortgage on the property in the amount of $8,025,000 and returned $3,775,000 to the Partnership. The Joint Venture obtained a new 10-year mortgage in the amount of $5,500,000 in January 2007. The interest on the new loan was 5.67% fixed for the ten year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan. This loan required a cash contribution by the Partnership of $1,250,000 in December 2006. On September 12, 2016, the property was refinanced with a 15 year mortgage in the amount of $6,000,000, at 3.71%, interest only. The Joint Venture Partnership paid off the prior mortgage of approximately $5,158,000 with the proceeds of the new mortgage and made a distribution of $385,000 to the Partnership. The cost associated with the refinancing was approximately $123,000. At March 31, 2021, the balance on this mortgage before unamortized deferred financing costs is approximately $6,000,000. In 2018, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting, although the Partnership has no legal obligation to fund its share of any future operating deficiencies, if needed. This investment is referred to as Hamilton Minuteman, LLC.

In August 2004, the Partnership invested $8,000,000 for a 50% ownership interest in a 280-unit apartment complex located in Watertown, Massachusetts. The total purchase price was $56,000,000. The Joint Venture sold 137 units as condominiums. The assets were combined with Hamilton on Main Apartments. Hamilton on Main, LLC is known as Hamilton Place. In 2005, Hamilton on Main Apartments, LLC obtained a ten year mortgage on the three buildings to be retained. The mortgage was $16,825,000, with interest only of 5.18% for three years and amortizing on a 30 year schedule for the remaining seven years when the balance is due. The net proceeds after funding escrow accounts and closing costs on the mortgage were approximately $16,700,000, which were used to reduce the existing mortgage. In August 2014, the property was refinanced with a 10 year mortgage in the amount of $16,900,000 at 4.34% interest only. The Joint Venture paid off the prior mortgage of approximately $15,205,000 with the proceeds of the new mortgage and

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distributed $850,000 to the Partnership. The costs associated with the refinancing were approximately $161,000. At March 31, 2021, the balance of the mortgage before unamortized deferred finance is $16,900,000. In 2018, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting, although the Partnership has no legal obligation to fund its share of any future operating deficiencies, if needed. The investment is referred to as Hamilton on Main LLC.

In November 2001, the Partnership invested approximately $1,533,000 for a 50% ownership interest in a 40-unit apartment building in Cambridge, Massachusetts. In June 2013, the property was refinanced with a 15 year mortgage in the amount of $10,000,000 at 3.87%, interest only for 3 years and is amortized on a 30-year schedule for the balance of the term. The Joint Venture paid off the prior mortgage of approximately $6,776,000 with the proceeds of the new mortgage. After the refinancing, the Joint Venture made a distribution of $1,610,000 to the Partnership. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share of any future operating deficits if needed. At March 31, 2021, the balance of this mortgage before unamortized deferred financing costs is approximately $9,097,000. This investment is referred to as 345 Franklin, LLC.

Summary financial information March 31, 2021

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	6,583,704		$	2,590,036		$	5,289,712		$	84,003		$	4,914,411		$	14,982,149		$	80,053,070		$	114,497,085
Cash & Cash Equivalents		66,579			40,821			139,721			6,435			132,455			574,605			2,564,784			3,525,400
Rent Receivable		31,379			—			35,916			11,669			9,749			49,425			447,666			585,804
Real Estate Tax Escrow		74,083			—			54,505			—			38,883			113,702			—			281,173
Prepaid Expenses & Other Assets		274,840			75,119			85,816			191			15,187			177,044			1,400,615			2,028,812
Total Assets	$	7,030,585		$	2,705,976		$	5,605,670		$	102,298		$	5,110,685		$	15,896,925		$	84,466,135		$	120,918,274
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,937,949		$	—		$	9,048,329		$	—		$	5,914,414		$	16,845,158		$	124,536,869		$	166,282,719
Accounts Payable & Accrued Expense		66,760			4,000			106,469			3,225			75,274			172,092			722,157			1,149,977
Advance Rental Pmts & Security Deposits		102,170			—			214,146			—			136,840			424,300			2,083,729			2,961,185
Total Liabilities		10,106,879			4,000			9,368,944			3,225			6,126,528			17,441,550			127,342,755			170,393,881
Partners’ Capital		(3,076,294)			2,701,976			(3,763,274)			99,073			(1,015,843)			(1,544,625)			(42,876,620)			(49,475,607)
Total Liabilities and Capital	$	7,030,585		$	2,705,976		$	5,605,670		$	102,298		$	5,110,685		$	15,896,925		$	84,466,135		$	120,918,274
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,350,988		$	—		$	49,536		$	—		$	—		$	—			1,400,524
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,538,147)		$	—		$	(1,881,637)		$	—		$	(507,922)		$	(772,313)		$	(17,150,648)			(21,850,666)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(20,450,142)
Total units/condominiums
Apartments		48			—			40			175			42			148			409			862
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			176			42			148			409			865
Units to be retained		49			1			40			1			42			148			409			690
Units to be sold		—			—			—			175			—			—			—			175
Units sold through May 1, 2021		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—
Unsold units with deposits for future sale as of May 1, 2021		—			—			—			—			—			—			—			—

20

Financial information for the three months ended March 31, 2021

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	230,217	$	—	$	333,093	$	24,369	$	284,524	$	816,812	$	3,069,883	$	4,758,898
Laundry and Sundry Income		3,013		—		112		—		1,276		8,777		26,152		39,330
		233,230		—		333,205		24,369		285,800		825,589		3,096,035		4,798,228
Expenses
Administrative		14,556		853		4,803		714		3,583		20,219		46,851		91,579
Depreciation and Amortization		118,942		5,074		85,345		816		84,025		269,915		924,560		1,488,677
Management Fees		5,260		—		12,412		628		11,296		32,375		65,278		127,249
Operating		29,432		—		13,521		91		34,596		124,933		298,094		500,667
Renting		32,784		—		14,328		—		360		30,760		84,955		163,187
Repairs and Maintenance		52,547		—		23,278		—		19,405		122,446		452,895		670,571
Taxes and Insurance		65,539		14,885		43,670		4,797		34,976		110,134		597,786		871,787
		319,060		20,812		197,357		7,046		188,241		710,782		2,470,419		3,913,717
Income Before Other Income		(85,830)		(20,812)		135,848		17,323		97,559		114,807		625,616		884,511
Other Income (Loss)
Interest Expense		(61,312)		—		(90,643)		—		(58,625)		(187,378)		(1,264,708)		(1,662,666)
Gain on Sale of Real Estate		—		—		—		—		—		—		—		—
		(61,312)		—		(90,643)		—		(58,625)		(187,378)		(1,264,708)		(1,662,666)
Net Income (Loss)	$	(147,142)	$	(20,812)	$	45,205	$	17,323	$	38,934	$	(72,571)	$	(639,092)	$	(778,155)
Net Income (Loss)—NERA 50%	$	(73,571)	$	(10,406)	$	22,602	$	8,662	$	19,466	$	(36,286)				(69,534)
Net Income (Loss) —NERA 40%													$	(255,636)		(255,636)
															$	(325,170)

21

Future annual mortgage maturities at March 31, 2021 are as follows:

	Hamilton		345		Hamilton		Hamilton on		Dexter
Period End	Essex 81		Franklin		Minuteman		Main Apts		Park		Total
3//31/2022	$	—	$	215,702	$	—	$	—	$	—	$	215,702
3/31/2023		—		224,199		—		—		—		224,199
3/31/2024		—		233,032		—		—		—		233,032
3/31/2025		—		242,212		—		16,900,000		—		17,142,212
3/31/2026		10,000,000		251,753		—		—		—		10,251,753
Thereafter		—		7,929,705		6,000,000		—		125,000,000		138,929,705
		10,000,000		9,096,603		6,000,000		16,900,000		125,000,000		166,996,603
Less: unamortized deferred financing costs		(62,051)		(48,274)		(85,586)		(54,842)		(463,131)		(713,884)
	$	9,937,949	$	9,048,329	$	5,914,414	$	16,845,158	$	124,536,869	$	166,282,719

At March 31, 2021 the weighted average interest rate on the above mortgages was 3.91%. The effective rate was 3.98% including the amortization expense of deferred financing costs.

22

Summary financial information at March 31, 2020

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	6,977,869		$	2,592,526		$	5,597,090		$	87,267		$	5,240,627		$	15,722,824		$	83,230,537		$	119,448,740
Cash & Cash Equivalents		336,900			105,620			387,085			11,568			234,919			514,145			3,510,840			5,101,077
Rent Receivable		215,143			38,463			—			—			205			12,553			27,015			293,379
Real Estate Tax Escrow		62,924			—			52,215			—			27,345			77,969			—			220,453
Prepaid Expenses & Other Assets		311,711			92,886			76,295			1,682			19,098			185,332			1,559,233			2,246,237
																							0
Total Assets	$	7,904,547		$	2,829,495		$	6,112,685		$	100,517		$	5,522,194		$	16,512,823		$	88,327,625		$	127,309,886
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,924,160		$	—		$	9,249,198		$	—		$	5,906,230		$	16,829,107		$	124,472,246		$	166,380,941
Accounts Payable & Accrued Expense		82,063			3,250			103,274			5,948			50,102			152,433			639,480			1,036,550
Advance Rental Pmts& Security Deposits		294,765			—			312,134			—			137,848			439,382			2,744,163			3,928,292
Total Liabilities		10,300,988			3,250			9,664,606			5,948			6,094,180			17,420,922			127,855,889			171,345,783
Partners’ Capital		(2,396,441)			2,826,245			(3,551,921)			94,569			(571,986)			(908,099)			(39,528,264)			(44,035,897)
Total Liabilities and Capital	$	7,904,547		$	2,829,495		$	6,112,685		$	100,517		$	5,522,194		$	16,512,823		$	88,327,625		$	127,309,886
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,413,123		$	—		$	47,284		$	—		$	—		$	—		$	1,460,406
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,198,220)		$	—		$	(1,775,961)		$	—		$	(285,993)		$	(454,050)		$	(15,811,306)			(19,525,528)
Total Investment in Unconsolidated Joint Ventures (Net)																							(18,065,122)
Total units/condominiums
Apartments		48			—			40			175			42			148			409			862
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			176			42			148			409			865
Units to be retained		49			1			40			1			42			148			409			690
Units to be sold		—			—			—			175			—			—			—			175
Units sold through May1, 2020		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—
Unsold units with deposits for future sale as of May 1, 2020		—			—			—			—			—			—			—			—

23

Financial information for three months ended March 31, 2020

										Hamilton		Hamilton
	Hamilton		Hamilton Essex		345		Hamilton			Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025			Apts		Apts		Park		Total
Revenues
Rental Income	$	439,380	$	60,471	$	428,150	$	20,558	$	290,693	$	905,700	$	4,206,503	$	6,351,455
Laundry and Sundry Income		3,385		—		454		—		—		8,749		25,742		38,330
		442,765		60,471		428,604		20,558		290,693		914,449		4,232,245		6,389,785
Expenses
Administrative		6,188		650		7,757		10,125		2,481		15,848		47,052		90,101
Depreciation and Amortization		121,642		5,074		84,494		816		86,826		261,047		916,987		1,476,886
Management Fees		17,736		2,203		16,466		822		11,532		34,984		87,082		170,825
Operating		25,524		—		12,988		45		22,226		93,845		310,381		465,009
Renting		2,775		—		8,753		—		3,000		7,720		16,804		39,052
Repairs and Maintenance		27,009		—		21,578		—		10,895		134,837		287,012		481,331
Taxes and Insurance		64,677		15,218		39,906		4,189		36,051		122,762		576,221		859,024
		265,551		23,145		191,942		15,997		173,011		671,043		2,241,539		3,582,228
Income Before Other Income		177,214		37,326		236,662		4,561		117,682		243,406		1,990,706		2,807,557
Other Income (Loss)
Interest Expense		(100,733)		—		(93,426)		—		(59,259)		(192,382)		(1,268,104)		(1,713,904)
Interest Income		—		—		—		—		—		—		—		—
		(100,733)		—		(93,426)		—		(59,259)		(192,382)		(1,268,104)		(1,713,904)
Net Income (Loss)	$	76,481	$	37,326	$	143,236	$	4,561	$	58,423	$	51,024	$	722,602	$	1,093,653
Net Income (Loss)—NERA 50%	$	38,241	$	18,663	$	71,618	$	2,281	$	29,211	$	25,512				185,525
Net Income (Loss)—NERA 40%													$	289,042		289,042
															$	474,567

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NOTE 15. EMPLOYEE BENEFIT 401(k) PLANS

Effective January 1, 2019, employees of the Partnership, who meet certain minimum age and service requirements, are eligible to participate in the Management Company’s 401(k) Plan (the “401(k) Plan”).  Eligible employees may elect to defer up to 90 percent of their eligible compensation on a pre-tax basis to the 401(k) Plan, subject to certain limitations imposed by federal law. 

The amounts contributed by employees are immediately vested and non-forfeitable.  Beginning January 1, 2019, the Partnership matched 50% up to 6% of compensation deferred by each employee in the 401(k) plan. The Partnership may make discretionary matching or profit-sharing contributions to the 401(k) Plan on behalf of eligible participants in any plan year.  Participants are always 100 percent vested in their pre-tax contributions and will begin vesting in any matching or profit-sharing contributions made on their behalf after two years of service with the Partnership at a rate of 20 percent per year, becoming 100 percent vested after a total of six years of service with the Partnership. Total expense recognized by the Partnership for the 401(k) Plan for the three months ended March 31, 2021 was $11,000.

NOTE 16. IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

In April 2020, the FASB issued a Staff Question & Answer (“Q&A”) which was intended to reduce the challenges of evaluating the enforceable rights and obligations of leases for concessions granted to lessees in response to the novel coronavirus disease (“COVID-19”), which was characterized on March 11, 2020 by the World Health Organization as a pandemic. Prior to this guidance, the Partnership was required to determine, on a lease by lease basis, if a lease concession should be accounted for as a lease modification, potentially resulting in any lease concessions granted being recorded as a reduction to revenue on a straight-line basis over the remaining terms of the leases. The Q&A allows both lessors and lessees to bypass this analysis and elect not to evaluate whether concessions provided in response to the COVID-19 pandemic are lease modifications. This relief is subject to certain conditions being met, including ensuring the total remaining lease payments are substantially the same or less as compared to the original lease payments prior to the concession being granted. The Partnership has elected to apply such relief and will therefore not evaluate if lease concessions that were granted in response to the COVID-19 pandemic meet the definition of a lease modification.  Accordingly, the Partnership accounted for qualifying rent concessions as negative variable lease payments, which reduced revenue from such leases in the period the concessions were granted.

NOTE 17. SUBSEQUENT EVENTS

The current outbreak of the COVID-19 virus, which was characterized on March 11, 2020 by the World Health Organization as a pandemic, has currently resulted in a worldwide health crisis, which is adversely affecting international, national and local economies and financial markets generally, and continues to have an unprecedented effect on the rental housing and commercial property markets. Given the continuous evolution of the COVID-19 pandemic and the global response to curb its spread, the Partnership is not able to estimate the resulting effects on its results of operations, cash flows, financial condition, or liquidity for the year ending December 31, 2021 or beyond.

The Government’s measures put into place to combat the spread of the virus have caused significant disruptions to life and business operations in Massachusetts, the country and the world. The length and severity of the current recession and the effects on the Partnership’s business are unknown at this time.

During the current state of emergency, The Hamilton Company, the Partnership’s property manager, has taken steps to maintain the safety of its employees and tenants. Hamilton is providing essential services to ensure all properties are kept open, fully functioning and safe. Hamilton has implemented a work from home policy with a skeleton staff present at all site offices to provide for property management, maintenance, leasing and construction services. Leasing is limited to unoccupied units and a web based video technology is being used to remotely show apartments. Hamilton and the Partnership will continue to adjust their business practices to comply with Federal and State mandates for workplace and rental property operations.

Past due rents receivable have increased and the Partnership is currently experiencing significantly higher vacancies for the upcoming rental season.

Both State and Federal governments have taken steps to protect tenants during the covid - 19 Pandemic. These steps include extending the time required for a landlord to evict tenants who are not current with their rents. Although the eviction process has been significantly complicated and lengthened from approximately 4 weeks to a new estimated minimum of 3 months, the Management company is moving forward with evictions in compliance with applicable law.

25

The pandemic has resulted in a significant reduction in the occupancy and rental rate for certain buildings located near Boston’s colleges and universities.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward Looking Statements

Certain information contained herein includes forward looking statements, which are made pursuant to the safe harbor provisions of the Private Securities Liquidation Reform Act of 1995 (the “Act”). Forward looking statements in this report, or which management may make orally or in written form from time to time, reflect management’s good faith belief when those statements are made, and are based on information currently available to management. Caution should be exercised in interpreting and relying on such forward looking statements, the realization of which may be impacted by known and unknown risks and uncertainties, events that may occur subsequent to the forward looking statements, and other factors which may be beyond the Partnership’s control and which can materially affect the Partnership’s actual results, performance or achievements for 2021 and beyond. Should one or more of the risks or uncertainties mentioned below materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. We expressly disclaim any responsibility to update our forward looking statements, whether as a result of new information, future events or otherwise. Accordingly, investors should use caution in relying on past forward looking statements, which are based on results and trends at the time they are made, to anticipate future results or trends.

Since the Partnership’s long-term goals include the acquisition of additional properties, a portion of the proceeds from the refinancing and sale of properties is reserved for this purpose. If available acquisitions do not meet the Partnership’s investment criteria, the Partnership may purchase additional depositary receipts. The Partnership will consider refinancing existing properties if the Partnership’s cash reserves are insufficient to repay existing mortgages or if the Partnership needs additional funds for future acquisitions.

Approximately one year has passed since we became aware of the current outbreak of COVID- 19, a novel strain of coronavirus. The World Health Organization declared a global pandemic on March 11, 2020. On March 10, 2020 the governor of Massachusetts, Charlie Baker, declared a state of emergency and ordered all non-essential businesses closed and prohibited the gathering of 10 or more people. Over time, the Governor’s order has been modified, but restrictions are currently in place for the foreseeable future. Additionally, March of 2020 saw the closure of local colleges and universities for the balance of the academic year. Colleges in the City of Boston and the surrounding communities are conducting classes for the 2020/2021 academic year remotely, or using a hybrid model of remote and limited in class learning. These educational models caused a large decrease in the student population in need of local housing and have resulted in significant vacancies in the Partnership’s apartment portfolio.

The government’s measures put into place to combat the spread of the virus have caused significant disruptions to life and business operations in Massachusetts, the country and the world. The length and severity of the current recession and the effects on the Partnership’s business are unknown at this time.

Rental collections for the first quarter for the Partnership’s wholly owned properties were approximately 98% of rents due. Residential tenants paid approximately 98% of their rent and commercial tenants paid approximately 99% of theirs. Historically, commercial rents represent 5% of the Partnership’s revenue. The rent collections for the Joint Ventures were approximately 74%. The first quarters’ collections are not necessarily an indicator of future cash receipts.

Vacancy rates for the Partnership’s residential properties as of May 1, 2021 were 6.2% as compared with a vacancy rate of 3.8% as of May 1, 2020. The majority of the vacancies in the wholly owned properties are at 62 Boylston Street, which has 93 vacant units, or 34.6% vacancy. The vacancy rate for the Joint Venture properties as of May 1, 2021 is 9.2%, as compared to 2.5% for the same period last year. The majority of the vacancies in the Joint Ventures are at Dexter Park, which has 33 vacant units, or 8.1 % vacancy. With the uncertainties with the economy and the re-opening of Colleges and Universities in the fall, this year’s rental season started off slowly and has just recently started to improve. However, the inventory of unrented units is significantly higher than in past years. It is likely that the Partnership will have a high number of vacancies for the balance of 2021, and the first half of 2022. In order to rent as many of these units as possible, management has reduced rent significantly and is offering up to two months free rent.

26

Residential tenants generally have lease terms of 12 months. The majority of these leases will mature during the second and third quarters of the year. Given the current economic environment, it is not possible to estimate the amount of lease turnover we will experience or the amount of increases to or decreases from the current rental rates we will realize with lease renewals or new leases. However, we are currently offering reduced rental rates and significant rent concessions at certain properties.

During the current state of emergency, The Hamilton Company, the Partnership’s property manager, has taken steps to maintain the safety of its employees and tenants. Hamilton is providing essential services to ensure all properties are kept open, fully functioning and safe. Hamilton has implemented a work from home policy with a skeleton staff present at all site offices to provide for property management, maintenance, leasing and construction services. Leasing is limited to unoccupied units unless permission is granted by the current tenant and a web based video technology is being used to remotely show apartments. Hamilton and the Partnership will continue to adjust their s business practices to comply with Federal and State mandates for workplace and rental property operations.

During the first quarter of 2021, rents increased on average of 0.3% for renewals and decreased on average of 5.0% for new leases. For the balance of 2021, due to the ongoing global coronavirus pandemic, management expects a significant softening of the local real estate market and is experiencing a decrease in rent and continuing rent concessions.

For the first quarter of 2021, consolidated revenue decreased by 7.8%, operating expenses decreased by 2.8% and Income before Other Income (Expense) decreased by 21.9%. For the same reporting period, vacancy was 6.2% in 2021 vs 3.8% in 2020.

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000 revolving line of credit. The term of the line was for three years with a floating interest rate equal to a base rate of the greater of (a) the Prime Rate (b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the LIBOR Rate for a period of one month plus 1% per annum, plus an applicable margin of 2.5%. The agreement originally expired on July 31, 2017, and was subsequently extended until October 31, 2020. The costs associated with the line of credit extension were approximately $128,000. As of March 31, 2021, the credit line had an outstanding balance of $17,000,000. Management is currently working with the lender on a three year renewal of the line of credit. As of April 30, 2021, the Partnership had not completed the renewal and has exercised a one year extension. The Partnership paid an extension fee of approximately $37,500 in association with the extension.

On March 31, 2020, Nera Brookside Associates, LLC (“Brookside Apartments”), entered into a Mortgage Note with KeyBank National Associates ( KeyBank) in the principal amount of $6,175,000. Interest only payments on the Note are payable on a monthly basis at a fixed interest rate of 3.53% per annum, and the principal amount of the Note is due and payable on March 31, 2035. The Note is secured by a mortgage on the Brookside apartment complex located at 5-12 Totman Drive, Woburn, Massachusetts pursuant to a Mortgage, Assignment of Leases and Rents and Security Agreement dated March 31, 2020. The Note is guaranteed by the Partnership pursuant to a Guaranty Agreement dated March 31, 2020. Brookside Apartments used the proceeds of the loan to pay off an outstanding loan of approximately $2,390,000, with the remaining portion of the proceeds were added to cash reserves. In connection with this refinancing, there were closing costs of approximately $132,000.

From the start of the Stock Repurchase Program in 2007 through March 31, 2021, the Partnership has purchased 1,428,437 Depositary Receipts. During the three months ended March 31, 2021, the Partnership did not purchase any Depositary Receipts. In March of 2020, the Board of Advisors and Board of Directors unanimously approved an extension of the Repurchase Program until March 31, 2025. Given the economic uncertainty caused by the coronavirus issue, as of April 15, 2020, the Partnership has elected to temporarily suspend the repurchase program.

At May 1, 2021, the Harold Brown related entities and Ronald Brown collectively own approximately 30.9% of the Depositary Receipts representing the Partnership Class A Units (including Depositary Receipts held by trusts for the benefit of such persons’ family members). The Estate of Harold Brown also controls 75% of the Partnership’s Class B Units, 75% of the capital stock of NewReal, Inc. (“NewReal”), the Partnership’s sole general partner, and all of the outstanding stock of Hamilton. Ronald Brown also owns 25% of the Partnership’s Class B Units and 25% of NewReal’s capital stock. In addition, Ronald Brown is the President and director of NewReal and Jameson Brown is NewReal’s Treasurer and a director. The 75% of the issued and outstanding Class B units of the Partnership, controlled by the Estate of Harold Brown, are owned by HBC Holdings LLC, an entity of which Jameson Brown is the manager.

27

In addition to the Management Fee, the Partnership Agreement further provides for the employment of outside professionals to provide services to the Partnership and allows NewReal to charge the Partnership for the cost of employing professionals to assist with the administration of the Partnership’s properties. Additionally, from time to time, the Partnership pays Hamilton for repairs and maintenance services, legal services, construction services and accounting services. The costs charged by Hamilton for these services are at the same hourly rate charged to all entities managed by Hamilton, and management believes such rates are competitive in the marketplace.

Residential tenants sign a one year lease. During the three months ended March 31, 2021, tenant renewals were approximately 60% with an average rental increase of approximately 0.3%, new leases accounted for approximately 40% with rental rate decreases of approximately 5.0%. During the three months ended March 31, 2021, leasing commissions were approximately $168,000 compared to approximately $114,000 for the three months ended March 31, 2020, an increase of approximately $54,000 (47.2%). Tenant concessions were approximately $5,000 for the three months ended March 31, 2021, compared to approximately $12,000 for the three months ended March 31, 2020, a decrease of approximately $7,000 (58.3%). Tenant improvements were approximately $320,000 for the three months ended March 31, 2021, compared to approximately $621,000 for the three months ended March 31, 2020, a decrease of approximately $301,000 (48.5%).

Hamilton accounted for approximately 2.3% of the repair and maintenance expenses paid for by the Partnership during the three months ended March 31, 2021 and 3.2 % during the three months ended March 31, 2020. Of the funds paid to Hamilton for this purpose, the great majority was to cover the cost of services provided by the Hamilton maintenance department, including plumbing, electrical, carpentry services, and snow removal for those properties close to Hamilton’s headquarters. Several of the larger Partnership properties have their own maintenance staff. Those properties that do not have their own maintenance staff and are located more than a reasonable distance from Hamilton’s headquarters in Allston, Massachusetts are generally serviced by local, independent companies.

Hamilton’s legal department handles most of the Partnership’s eviction and collection matters. Additionally, it prepares most long-term commercial lease agreements and represents the Partnership in selected purchase and sale transactions. Overall, Hamilton provided approximately $24,000 (52.9%) and approximately $52,000 (86.3%) of the legal services paid for by the Partnership during the three months ended March 31, 2021 and 2020 respectively.

Additionally, as described in Note 3 to the consolidated financial statements, The Hamilton Company receives similar fees from the Investment Properties.

The Partnership requires that three bids be obtained for construction contracts in excess of $15,000. Hamilton may be one of the three bidders on a particular project and may be awarded the contract if its bid and its ability to successfully complete the project are deemed appropriate. For contracts that are not awarded to Hamilton, Hamilton charges the Partnership a construction supervision fee equal to 5% of the contract amount. Hamilton’s architectural department also provides services to the Partnership on an as-needed basis. During the three months ended March 31, 2021, Hamilton provided the Partnership approximately $155,000 in construction and architectural services, compared to approximately $196,000 for the three months ended March 31, 2020.

Hamilton’s accounting staff perform bookkeeping and accounting functions for the Partnership. During the three months ended March 31, 2021 and 2020, Hamilton charged the Partnership $31,250 for bookkeeping and accounting services. For more information on related party transactions, see Note 3 to the Consolidated Financial Statements.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The preparation of the consolidated financial statements, in accordance with accounting principles generally accepted in the United States of America, requires the Partnership to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures of contingent assets and liabilities. The Partnership regularly and continually evaluates its estimates, including those related to acquiring, developing and assessing the carrying values of its real estate properties and its investments in and advances to joint ventures. The Partnership bases its estimates on historical experience, current market conditions, and on various other assumptions that are believed to be reasonable under the circumstances. However, because future events and their effects cannot be determined with certainty, the determination of estimates requires the exercise of judgment. The Partnership’s critical

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accounting policies are those which require assumptions to be made about such matters that are highly uncertain. Different estimates could have a material effect on the Partnership’s financial results. Judgments and uncertainties affecting the application of these policies and estimates may result in materially different amounts being reported under different conditions and circumstances. See Note 1 to the Consolidated Financial Statements, Principles of Consolidation.

Revenue Recognition: Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Revenue from commercial leases also include reimbursements and recoveries received from tenants for certain costs as provided in the lease agreement. The costs generally include real estate taxes, utilities, insurance, common area maintenance and recoverable costs. Rental concessions are also accounted for on the straight-line basis.

Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease amounts are accounted for as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases.

The Partnership evaluates the non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues). If both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component. The Partnership elected an allowed practical expedient. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred.

Rental Property Held for Sale: When assets are identified by management as held for sale, the Partnership discontinues depreciating the assets and estimates the sales price, net of selling costs, of such assets. The Partnership generally considers assets to be held for sale when the transaction has received appropriate corporate authority, and there are no significant contingencies relating to the sale. If, in management’s opinion, the estimated net sales price, net of selling costs, of the assets which have been identified as held for sale is less than the carrying value of the assets, a valuation allowance is established.

If circumstances arise that previously were considered unlikely and, as a result, the Partnership decides not to sell a property previously classified as held for sale, the property is reclassified as held and used. A property that is reclassified is measured and recorded individually at the lower of (a) its carrying value before the property was classified as held for sale, adjusted for any depreciation (amortization) expense that would have been recognized had the property been continuously classified as held and used, or (b) the fair value at the date of the subsequent decision not to sell.

Rental Properties: Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing activities, and utilizes various valuation

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methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant.

Intangible assets acquired include amounts for in-place lease values above and below market leases and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships.

In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required.

Impairment: On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties may be impaired. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved.

Investments in Joint Ventures: The Partnership accounts for its 40%-50% ownership in the Investment Properties under the equity method of accounting, as it exercises significant influence over, but does not control these entities. These investments are recorded initially at cost, as Investments in Joint Ventures, and subsequently adjusted for the Partnership’s share in earnings, cash contributions and distributions. Under the equity method of accounting, our net equity is reflected on the consolidated balance sheets, and our share of net income or loss from the Partnership is included on the consolidated statements of income. Generally, the Partnership would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Partnership has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Partnership only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits.

The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE.

With respect to investments in and advances to the Investment Properties, the Partnership looks to the underlying properties to assess performance and the recoverability of carrying amounts for those investments in a

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manner similar to direct investments in real estate properties. An impairment charge is recorded if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property.

Legal Proceedings: The Partnership is subject to various legal proceedings and claims that arise, from time to time, in the ordinary course of business. These matters are frequently covered by insurance. If it is determined that a loss is likely to occur, the estimated amount of the loss is recorded in the financial statements. Both the amount of the loss and the point at which its occurrence is considered likely can be difficult to determine.

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RESULTS OF OPERATIONS

Three Months Ended March 31, 2021 and March 31, 2020

The Partnership and its Subsidiary Partnerships earned income before interest expense, income from investments in unconsolidated joint ventures, other expense of approximately $3,395,000 during the three months ended March 31, 2021, compared to approximately $4,344,000 for the three months ended March 31, 2020, a decrease of approximately $949,000 (21.9%).

The rental activity is summarized as follows:

	Occupancy Date
	May 1, 2021		May 1, 2020
Residential
Units	2,911		2,911
Vacancies	180		110
Vacancy rate	6.2	%	3.8	%
Commercial
Total square feet	108,154		108,154
Vacancy	4,844		3,900
Vacancy rate	4.5	%	3.6	%

	Rental Income (in thousands)
	Three Months Ended March 31,
	2021						2020
	Total			Continuing			Total			Continuing
	Operations			Operations			Operations			Operations
Total rents	$	14,980		$	14,980		$	16,253		$	16,253
Residential percentage		94	%		94	%		95	%		95	%
Commercial percentage		6	%		6	%		5	%		5	%
Contingent rentals	$	150		$	150		$	121		$	121

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Three Months Ended March 31, 2021 Compared to Three Months Ended March 31, 2020:

	Three Months Ended March 31,				Dollar		Percent
	2021		2020		Change		Change
Revenues
Rental income	$	14,980,116	$	16,253,430	$	(1,273,314)	(7.8)	%
Laundry and sundry income		108,673		122,154		(13,481)	(11.0)	%
		15,088,789		16,375,584		(1,286,795)	(7.9)	%
Expenses
Administrative		652,186		584,658		67,528	11.6	%
Depreciation and amortization		3,905,918		4,565,467		(659,549)	(14.4)	%
Management fee		605,391		648,993		(43,602)	(6.7)	%
Operating		2,045,968		1,668,402		377,566	22.6	%
Renting		261,966		196,871		65,095	33.1	%
Repairs and maintenance		1,970,087		2,086,218		(116,131)	(5.6)	%
Taxes and insurance		2,252,134		2,280,541		(28,407)	(1.2)	%
		11,693,650		12,031,150		(337,500)	(2.8)	%
Income Before Other Income (Expense)		3,395,139		4,344,434		(949,295)	(21.9)	%
Other Income (Expense)
Interest income		21		107		(86)	(80.4)	%
Interest expense		(3,364,170)		(3,450,325)		86,155	(2.5)	%
Income from investments in unconsolidated joint ventures		(325,170)		474,567		(799,737)	(168.5)	%
		(3,689,319)		(2,975,651)		(713,668)	24.0	%
Net Income (Loss)	$	(294,180)	$	1,368,783	$	(1,662,963)	(121.5)	%

Rental income for the three months ended March 31, 2021 was approximately $14,980,000, compared to approximately $16,253,000 for the three months ended March 31, 2020, a decrease of approximately $1,273,000 (7.8%). Although rental income has increased at a number of properties, due to the effect of the Pandemic, a number of properties incurred a decrease in their rental income. The Partnership properties with the largest increases in rental income include Hamilton Oaks, Westside Colonial, and Hamilton Green with increases of $60,000, $28,000, and $27,000 respectively. These are offset by certain properties with the largest decreases in rental income, which include 62 Boylston, 1144 Commonwealth, and Lincoln Street, with decreases of approximately $759,000, 139,000, and $55,000, respectively. Included in rental income is contingent rentals collected on commercial properties. Contingent rentals include such charges as bill backs of common area maintenance charges, real estate taxes, and utility charges.

Operating expenses for the three months ended March 31, 2021 were approximately $11,694,000 compared to approximately $12,031,000 for the three months ended March 31, 2020, a decrease of approximately $337,000 (2.8%). The factors contributing to the decrease are a decrease in depreciation and amortization of approximately $660,000, (14.4%), and a decrease in repairs and maintenance expenses of approximately $116,000 (5.6%), partially offset by an increase in operating costs of approximately $378,000 (22.6%), due to an increase in snow removal expense of approximately $270,000.

Interest expense for the three months ended March 31, 2021 was approximately $3,364,000 compared to approximately $3,450,000 for the three months ended March 31, 2020, a decrease of approximately $86,000 (2.5%). The decrease in interest expense is primarily due to a decrease in interest expense on the line of credit of approximately $65,000.

At March 31, 2021, the Partnership has between a 40% and 50% ownership interests in seven different Investment Properties. See a description of these properties included in the section titled Investment Properties as well as Note 14 to the Consolidated Financial Statements for a detail of the financial information of each Investment Property.

As described in Note 14 to the Consolidated Financial Statements, the Partnership’s share of the net loss from the Investment Properties was approximately $325,000 for the three months ended March 31, 2021, compared to net income of approximately $475,000 for the three months ended March 31, 2020, a decrease in income of approximately $800,000 (168.5%). This decrease is primarily due to the reduction in rental revenue from approximately $ 2,755,000 to

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$2,073,000, a decrease of approximately $682,000 (24.8 %) for the three months ended March 31, 2021 compared to the three months ended March 31, 2020. Included in the income for the three months ended March 31, 2021 is depreciation and amortization expense of approximately $652,000.

As a result of the changes discussed above, the net loss for the three months ended March 31, 2021 was approximately $294,000 compared to net income of approximately $1,369,000 for the three months ended March 31, 2020, a decrease in income of approximately $1,663,000 (121.5 %).

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LIQUIDITY AND CAPITAL RESOURCES

The Partnership’s principal source of cash during the first three months of 2021 was the collection of rents. The Partnership’s principal source of cash in 2020 was the collection of rents. The majority of cash and cash equivalents of $20,822,344 at March 31, 2021 and $18,646,972 at December 31, 2020 were held in interest bearing accounts at creditworthy financial institutions.

The increase in cash of $2,175,372 for the three months ended March 31, 2021 is summarized as follows:

	Three Months Ended March 31,
	2021		2020
Cash provided by operating activities	$	4,343,410	$	4,232,303
Cash (used in) investing activities		(446,603)		(1,047,185)
Cash (used in) provided by financing activities		(552,575)		2,074,443
Repurchase of Depositary Receipts, Class B and General Partner Units		—		(389,947)
Distributions paid		(1,168,860)		(1,169,173)
Net increase (decrease) in cash and cash equivalents	$	2,175,372	$	3,700,441

The change in cash provided by operating activities is due to various factors, including a change in depreciation expense due to recent acquisitions, a change in income and distribution from joint ventures, and other factors. The decrease in cash used in investing activities is primarily due to improvements to rental properties. The change in cash used in financing activities is due to the pay down of mortgages,

During 2021, the Partnership and its Subsidiary Partnerships have completed improvements to certain of the Properties at a total cost of approximately $634,000. These improvements were funded from cash reserves. Cash reserves have been adequate to fully fund improvements. The most significant improvements were made at 62 Boylston Street, Redwood Hills, 1144 Commonwealth, Hamilton Oaks, Dean Street Associates, and Hamilton Green, at a cost of approximately $137,000, $69,000, $59,000, $52,000, $42,000 and $40,000 respectively.

On March 31, 2020, Nera Brookside Associates, LLC (“Brookside Apartments”), entered into a Mortgage Note with KeyBank National Associates ( KeyBank) in the principal amount of $6,175,000. Interest only payments on the Note are payable on a monthly basis at a fixed interest rate of 3.53% per annum, and the principal amount of the Note is due and payable on March 31, 2035. The Note is secured by a mortgage on the Brookside apartment complex located at 5-12 Totman Drive, Woburn, Massachusetts pursuant to a Mortgage, Assignment of Leases and Rents and Security Agreement dated March 31, 2020. The Note is guaranteed by the Partnership pursuant to a Guaranty Agreement dated March 31, 2020. Brookside Apartments used the proceeds of the loan to pay off an outstanding loan of approximately $2,390,000, with the remaining portion of the proceeds added to cash reserves. In connection with this refinancing, there were closing costs of approximately $136,000.

During the three months ended March 30, 2021, the Partnership received distributions of approximately $196,000 from the investment properties. For the three months ended March 31, 2020, the Partnership did not receive any distributions from the investment properties. In January 2021, the Partnership approved a quarterly distribution of $9.60 per Unit ($0.32 per Receipt), which was paid on March 31, 2021.

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000 revolving line of credit. The term of the line was for three years with a floating interest rate equal to a base rate of the greater of (a) the Prime Rate (b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the LIBOR Rate for a period of one month plus 1% per annum, plus the applicable margin of 2.5%. The agreement originally expired on July 31, 2017, and was extended until October 31, 2020. The costs associated with the line of credit extension were approximately $128,000. The Partnership is currently in negotiations to extend the line of credit. Management is currently working with the lender on a three year renewal of the line of credit. As of April 30, 2021, the Partnership had not completed the renewal and had exercised a one year extension. The Partnership paid an extension fee of approximately $37,500 in association with the extension.

On December 19, 2019, the Partnership drew down on the line of credit in the amount of $20,000,000, used in conjunction with the purchase of Mill Street Apartments. On December 20, 2019, the Partnership paid down $2,000,000.

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On January 22, 2020, the Partnership paid down the line by $1,000,000. As of March 31, 2021, the line of credit had an outstanding balance of $17,000,000.

The Partnership anticipates that cash from operations will be sufficient to fund its current operations, pay distributions, make required debt payments and finance current improvements to its properties. The Partnership may also sell or refinance properties. The Partnership’s net income and cash flow may fluctuate dramatically from year to year as a result of the sale or refinancing of properties, property improvements, increases or decreases in rental income or expenses, or the loss of significant tenants.

Off-Balance Sheet Arrangements—Joint Venture Indebtedness

As of March 31, 2021 the Partnership had a 40%-50% ownership interest in seven Joint Ventures, five of which have mortgage indebtedness. We do not have control of these partnerships and therefore we account for them using the equity method of consolidation. At March 31, 2021, our proportionate share of the non-recourse debt related to these investments was approximately $70,998,000. See Note 14 to the Consolidated Financial Statements.

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Contractual Obligations

As of March 31, 2021, we are subject to contractual payment obligations as described in the table below.

				Payments due by period
	2022		2023		2024		2025		2026		Thereafter		Total
Contractual Obligations
Long -term debt
Mortgage debt	$	2,619,560	$	67,011,788	$	38,297,491	$	11,093,452	$	21,647,487	$	143,567,360	$	284,237,138
Other obligations		17,000,000		—		—		—		—		—		17,000,000
Total Contractual Obligations	$	19,619,560	$	67,011,788	$	38,297,491	$	11,093,452	$	21,647,487	$	143,567,360	$	301,237,138

*Excluding unamortized deferred financing costs

We have various standing or renewable service contracts with vendors related to our property management. In addition, we have certain other contracts we enter into in the ordinary course of business that may extend beyond one year. These contracts are not included as part of our contractual obligations because they include terms that provide for cancellation with insignificant or no cancellation penalties.

See Notes 5 and 14 to the Consolidated Financial Statements for a description of mortgage notes payable. The Partnerships has no other material contractual obligations to be disclosed.

Factors That May Affect Future Results

Along with risks detailed in Item 1A and from time to time in the Partnership’s filings with the Securities and Exchange Commission, some factors that could cause the Partnership’s actual results, performance or achievements to differ materially from those expressed or implied by forward looking statements include but are not limited to the following:

● The Partnership depends on the real estate markets where its properties are located, primarily in Eastern Massachusetts, and these markets may be adversely affected by local economic market conditions, which are beyond the Partnership’s control.

● The Partnership is subject to the general economic risks affecting the real estate industry, such as dependence on tenants’ financial condition, the need to enter into new leases or renew leases on terms favorable to tenants in order to generate rental revenues and our ability to collect rents from our tenants.

● The Partnership is also impacted by changing economic conditions making alternative housing arrangements more or less attractive to the Partnership’s tenants, such as the interest rates on single family home mortgages and the availability and purchase price of single family homes in the Greater Boston metropolitan area.

● The Partnership is subject to significant expenditures associated with each investment, such as debt service payments, real estate taxes, insurance and maintenance costs, which are generally not reduced when circumstances cause a reduction in revenues from a property.

● The Partnership is subject to increases in heating and utility costs that may arise as a result of economic and market conditions and fluctuations in seasonal weather conditions.

● Civil disturbances, earthquakes and other natural disasters may result in uninsured or underinsured losses.

● Actual or threatened terrorist attacks may adversely affect our ability to generate revenues and the value of our properties.

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● Financing or refinancing of Partnership properties may not be available to the extent necessary or desirable, or may not be available on favorable terms.

● The Partnership properties face competition from similar properties in the same market. This competition may affect the Partnership’s ability to attract and retain tenants and may reduce the rents that can be charged.

● Given the nature of the real estate business, the Partnership is subject to potential environmental liabilities. These include environmental contamination in the soil at the Partnership’s or neighboring real estate, whether caused by the Partnership, previous owners of the subject property or neighbors of the subject property, and the presence of hazardous materials in the Partnership’s buildings, such as asbestos, lead, mold and radon gas. Management is not aware of any material environmental liabilities at this time.

● Insurance coverage for and relating to commercial properties is increasingly costly and difficult to obtain. In addition, insurance carriers have excluded certain specific items from standard insurance policies, which have resulted in increased risk exposure for the Partnership. These include insurance coverage for acts of terrorism and war, and coverage for mold and other environmental conditions. Coverage for these items is either unavailable or prohibitively expensive.

● Market interest rates could adversely affect market prices for Class A Partnership Units and Depositary Receipts as well as performance and cash flow.

● Changes in income tax laws and regulations may affect the income taxable to owners of the Partnership. These changes may affect the after-tax value of future distributions.

● The Partnership may fail to identify, acquire, construct or develop additional properties; may develop or acquire properties that do not produce a desired or expected yield on invested capital; may be unable to sell poorly- performing or otherwise undesirable properties quickly; or may fail to effectively integrate acquisitions of properties or portfolios of properties.

● Risk associated with the use of debt to fund acquisitions and developments.

● Competition for acquisitions may result in increased prices for properties.

● Any weakness identified in the Partnership’s internal controls as part of the evaluation being undertaken could have an adverse effect on the Partnership’s business.

● Ongoing compliance with Sarbanes-Oxley Act of 2002 may require additional personnel or systems changes.

The foregoing factors should not be construed as exhaustive or as an admission regarding the adequacy of disclosures made by the Partnership prior to the date hereof or the effectiveness of said Act. The Partnership expressly disclaims any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the exposure to loss resulting from changes in interest rates and equity prices. In pursuing its business plan, the primary market risk to which the Partnership is exposed is interest rate risk. Changes in the general level of interest rates prevailing in the financial markets may affect the spread between the Partnership’s yield on invested assets and cost of funds and, in turn, its ability to make distributions or payments to its investors.

As of March 31, 2021, the Partnership, its Subsidiary Partnerships and the Investment Properties collectively have approximately $451,234,000 in long-term debt, substantially all of which require payment of interest at fixed rates. Accordingly, the fair value of these debt instruments is affected by changes in market interest rates. This long term debt matures through 2035. The Partnership, its Subsidiary Partnerships and the Investment Properties collectively have

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variable rate debt of $27,000,000 (without taking out unamortized deferred financing costs) as of March 31, 2021. Interest rates ranged from LIBOR plus 195 basis points to LIBOR plus 350 basis points. Assuming interest-rate caps are not in effect, if market rates of interest on the Partnership’s variable rate debt increased or decreased by 100 basis points, then the increase or decrease in interest costs on the Partnership’s variable rate debt would be approximately $220,000 annually and the increase or decrease in the fair value of the Partnership’s fixed rate debt as of March 31, 2021 would be approximately $17.1 million. For information regarding the fair value and maturity dates of these debt obligations, See Note 5 to the Consolidated Financial Statements — “Mortgage Notes Payable,” Note 12 to the Consolidated Financial Statements — “Fair Value Measurements” and Note 14 to the Consolidated Financial Statements — “Investment in Unconsolidated Joint Ventures.”

For additional disclosure about market risk, see “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Factors That May Affect Future Results”.

ITEM 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures. The Partnership’s management, with the participation of the Partnership’s principal executive officer and principal financial officer, has evaluated the effectiveness of the Partnership’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the Partnership’s principal executive officer and principal financial officer have concluded that, as of the end of such period, the Partnership’s disclosure controls and procedures were effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Partnership in the reports that it files or submits under the Exchange Act.

Changes in Internal Control over Financial Reporting. There were no changes in our internal control over financial reporting during the first quarter of 2021 that materially affected or are reasonably likely to materially affect our internal control over financial reporting. We have not experienced any material impacts to our internal control over financial reporting as a result of a majority or our office employees working remotely due to the COVID-19 pandemic. We are continually monitoring and assessing our internal control environment to ensure that our controls continue to be designed effectively and continue to operate effectively throughout the duration of the pandemic.

PART II — OTHER INFORMATION

Item 1. Legal Proceedings

There are no material legal proceedings, other than ordinary routine litigation incidental to its business, to which the Partnership is a party to or to which any of the Properties is subject.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) None

(b) None

(c) Issuer Purchase of Equity Securities during the first quarter of 2021:

				Remaining number of Depositary
			Depositary Receipts	Receipts that may be purchased
Period	Average Price Paid		Purchased as Part of Publicly Announced Plan	Under the Plan (as Amended)
January 1-31, 2021	$	—	—	571,561
February 1-28, 2021	$	—	—	571,561
March 1-31, 2021	$	—	—	571,561
Total			—

39

On August 20, 2007, NewReal, Inc., the General Partner authorized an equity repurchase program (“Repurchase Program”) under which the Partnership was permitted to purchase, over a period of twelve months, up to 300,000 Depositary Receipts (each of which is one-tenth of a Class A Unit). Over time, the General Partner has authorized increases in the equity repurchase program. On March 10, 2015, the General Partner authorized an increase in the Repurchase Program from 1,500,000 to 2,000,000 Depository Receipts and extended the Program for an additional five years from March 31, 2015 until March 31, 2020. On March 9, 2020, the General Partner extended the program for an additional five years from March 31, 2020 to March 31, 2025.The Repurchase Program requires the Partnership to repurchase a proportionate number of Class B Units and General Partner Units in connection with any repurchases of any Depositary Receipts by the Partnership based upon the 80%, 19% and 1% fixed distribution percentages of the holders of the Class A, Class B and General Partner Units under the Partnership’s Second Amended and Restated Contract of Limited Partnership. Repurchases of Depositary Receipts or Partnership Units pursuant to the Repurchase Program may be made by the Partnership from time to time in its sole discretion in open market transactions or in privately negotiated transactions. From August 20, 2007 through March 31, 2021, the Partnership has repurchased 1,428,437 Depositary Receipts at an average price of $28.43 per receipt (or $852.90 per underlying Class A Unit), 3,572 Class B Units and 188 General Partnership Units, both at an average price of $1,033.00 per Unit, totaling approximately $44,718,000 including brokerage fees paid by the Partnership.

During the three months ended March 31, 2021, the Partnership did not purchase any Depositary Receipts. Given the economic uncertainty caused by the coronavirus issue, as of April 15, 2020, the Partnership elected to temporarily suspend the repurchase program.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosure

Not applicable.

Item 5. Other Information

None

Item 6. Exhibits

See the exhibit index below.

40

EXHIBIT INDEX

Exhibit No.	Description of Exhibit
(31.1)	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Ronald Brown, Principal Executive Officer of the Partnership (President and a Director of NewReal, Inc., sole General Partner of the Partnership).
(31.2)	Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Jameson Brown, Principal Financial Officer of the Partnership (Treasurer and a Director of NewReal, Inc., sole General Partner of the Partnership).
(32.1)	Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Ronald Brown, Principal Executive Officer of the Partnership (President and a Director of NewReal, Inc., sole General Partner of the Partnership) and Jameson Brown, Principal Financial Officer of the Partnership (Treasurer and a Director of NewReal, Inc., sole General Partner of the Partnership).
(101.1)	The following financial statements from New England Realty Associates Limited Partnership Quarterly Report on Form 10-Q for the quarter ended March 31, 2021, formatted in Inline XBRL (eXtensible Business Property Language: (i) Consolidated Balance Sheets, (unaudited) (ii) Consolidated Statements of Income, (unaudited) (iii) Consolidated Statements of Changes in Partners’ Capital, (unaudited) (iv) Consolidated Statements of Cash Flows, (unaudited) and (v) Notes to Consolidated Financial Statements, (unaudited) (filed herewith).
(104)	Cover Page Interactive Data File – The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

41

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

NEW ENGLAND REALTY ASSOCIATES LIMITED PARTNERSHIP
By:	/s/ NEWREAL, INC.
	Its General Partner
By:	/s/ RONALD BROWN
	Ronald Brown, President
Dated: May 7, 2021

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ RONALD BROWN	President and Director of the General Partner	May 7, 2021
Ronald Brown	(Principal Executive Officer)
/s/ JAMESON BROWN	Treasurer and Director of the General Partner	May 7, 2021
Jameson Brown	(Principal Financial Officer and Principal Accounting Officer)
/s/ GUILLIAEM AERTSEN	Director of the General Partner	May 7, 2021
Guilliaem Aertsen
/s/ DAVID ALOISE	Director of the General Partner	May 7, 2021
David Aloise
/s/ ANDREW BLOCH	Director of the General Partner	May 7, 2021
Andrew Bloch
/s/ EUNICE HARPS	Director of the General Partner	May 7, 2021
Eunice Harps
/s/ SALLY MICHAEL	Director of the General Partner	May 7, 2021
Sally Michael
/s/ ROBERT SOMMA	Director of the General Partner	May 7, 2021
Robert Somma

42

EX-31.1

Exhibit 31.1

New England Realty Associates Limited Partnership

CERTIFICATION

I, Ronald Brown, certify that:

1. I have reviewed this quarterly report on Form 10-Q of New England Realty Associates Limited Partnership;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ RONALD BROWN
	Principal Executive Officer (President and Director of the Partnership’s General Partner, NewReal, Inc.)
Date: May 7, 2021

EX-31.2

Exhibit 31.2

New England Realty Associates Limited Partnership

CERTIFICATIONS

I, Jameson Brown, certify that:

1. I have reviewed this quarterly report on Form 10-Q of New England Realty Associates Limited Partnership;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ JAMESON BROWN
	Principal Financial Officer
	(Treasurer and Director of the Partnership’s General Partner, NewReal, Inc.)
Date: May 7, 2021

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of New England Realty Associates Limited Partnership for the three months ended March 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Ronald Brown, as President and Director of the Partnership’s General Partner, NewReal, Inc., and Jameson Brown, the Treasurer and a Director of the Partnership’s General Partner, NewReal, Inc., each hereby certifies, pursuant to 18.U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Partnership.

	/s/ Ronald Brown
	Ronald Brown
	Principal Executive Officer
	(President and Director of the Partnership’s General Partner, NewReal, Inc.)
Date: May 7, 2021
	/s/ Jameson Brown
	Jameson Brown
	Principal Financial Officer
	(Treasurer and Director of the Partnership’s General Partner, NewReal, Inc.)
Date: May 7, 2021

This certification accompanies each Report pursuant to §906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Partnership for purposes of §18 of the Security Exchange Act of 1934, as amended.

A signed original of this written statement required by §906 has been provided to the Partnership and will be retained by the Partnership and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2021	May 06, 2021
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Document Period End Date	Mar. 31, 2021
Entity File Number	001-31568
Entity Registrant Name	New England Realty Associates Limited Partnership
Entity Incorporation, State or Country Code	MA
Entity Tax Identification Number	04-2619298
Entity Address, Address Line One	39 Brighton Avenue
Entity Address, City or Town	Allston
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	02134
City Area Code	617
Local Phone Number	783-0039
Title of 12(b) Security	Class A
Trading Symbol	NEN
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Entity Central Index Key	0000746514
Amendment Flag	false
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		97,405
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		23,134

XML

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2021	Dec. 31, 2020
ASSETS
Rental Properties	$ 261,361,758	$ 264,609,887
Cash and Cash Equivalents	20,822,344	18,646,972
Rents Receivable	1,224,948	1,412,074
Real Estate Tax Escrows	546,426	534,941
Prepaid Expenses and Other Assets	4,776,893	5,054,959
Investments in Unconsolidated Joint Ventures	1,400,524	1,410,769
Total Assets	290,132,893	291,669,602
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	282,951,918	283,444,533
Notes Payable	17,000,000	17,000,000
Distribution and Loss in Excess of Investment in Unconsolidated Joint Venture	21,850,666	21,339,743
Accounts Payable and Accrued Expenses	4,075,165	3,888,237
Advance Rental Payments and Security Deposits	7,187,229	7,466,134
Total Liabilities	333,064,978	333,138,647
Partners' Capital 121,756 and 121,756 units outstanding in 2021 and 2020 respectively	(42,932,085)	(41,469,045)
Total Liabilities and Partners' Capital	$ 290,132,893	$ 291,669,602

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	Dec. 31, 2019
CONSOLIDATED BALANCE SHEETS
Partners' Capital, units outstanding	121,756	121,756	121,759	121,978

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Revenues
Rental income	$ 14,980,116	$ 16,253,430
Laundry and sundry income	108,673	122,154
Total Revenues	15,088,789	16,375,584
Expenses
Administrative	652,186	584,658
Depreciation and amortization	3,905,918	4,565,467
Management fee	605,391	648,993
Operating	2,045,968	1,668,402
Renting	261,966	196,871
Repairs and maintenance	1,970,087	2,086,218
Taxes and insurance	2,252,134	2,280,541
Total Expenses	11,693,650	12,031,150
Income Before Other Income (Expense)	3,395,139	4,344,434
Other Income (Expense)
Interest income	21	107
Interest expense	(3,364,170)	(3,450,325)
Income (Loss) from investments in unconsolidated joint ventures	(325,170)	474,567
Total Other Income (Expense)	(3,689,319)	(2,975,651)
Net Inocme (Loss)	$ (294,180)	$ 1,368,783
Income per Unit
Net Inocme (Loss) per Unit (in dollars per unit)	$ (2.42)	$ 11.23
Weighted Average Number of Units Outstanding (in units)	121,756	121,877

XML

CONSOLIDATED STATEMENTS OF CHANGES IN PARTNER'S CAPITAL - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Increase (Decrease) in Partners' Capital
Balance	$ (41,469,045)	$ (37,823,787)
Balance (in units)	121,756	121,978
Distribution to Partners	$ (1,168,860)	$ (1,169,173)
Stock Buyback		$ (389,947)
Stock Buyback (in units)		(219)
Net income	(294,180)	$ 1,368,783
Balance	$ (42,932,085)	$ (38,014,124)
Balance (in units)	121,756	121,759
Subtotal
Increase (Decrease) in Partners' Capital
Balance (in units)	180,225	180,225
Balance (in units)	180,225	180,225
General Partnership
Increase (Decrease) in Partners' Capital
Balance	$ (413,280)	$ (376,827)
Balance (in units)	1,802	1,802
Distribution to Partners	$ (11,689)	$ (11,692)
Stock Buyback		(311,952)
Net income	(2,942)	13,688
Balance	$ (427,911)	$ (686,783)
Balance (in units)	1,802	1,802
Treasury Units
Increase (Decrease) in Partners' Capital
Balance (in units)	(58,469)	(58,247)
Stock Buyback (in units)		(219)
Balance (in units)	(58,469)	(58,466)
Class A
Increase (Decrease) in Partners' Capital
Balance	$ (33,203,447)	$ (30,287,245)
Balance (in units)	144,180	144,180
Distribution to Partners	$ (935,088)	$ (935,338)
Stock Buyback		(74,095)
Net income	(235,344)	1,095,026
Balance	$ (34,373,879)	$ (30,201,652)
Balance (in units)	144,180	144,180
Class B
Increase (Decrease) in Partners' Capital
Balance	$ (7,852,318)	$ (7,159,715)
Balance (in units)	34,243	34,243
Distribution to Partners	$ (222,083)	$ (222,143)
Stock Buyback		(3,900)
Net income	(55,894)	260,069
Balance	$ (8,130,295)	$ (7,125,689)
Balance (in units)	34,243	34,243

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash Flows from Operating Activities
Net income	$ (294,180)	$ 1,368,783
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization	3,905,918	4,565,467
Amortization of deferred finance costs	59,960	59,876
(Income) from investments in joint venture	325,170	(474,567)
Allowance for doubtful accounts	1,271,051	197,800
Change in operating assets and liabilities
Proceeds from unconsolidated joint ventures	8,500
(Increase) in rents receivable	(1,083,925)	(351,497)
Increase (Decrease) in accounts payable and accrued expense	186,928	(880,166)
Decrease (Increase) in real estate tax escrow	(11,485)	(81,286)
Decrease (Increase) in prepaid expenses and other assets	254,378	59,110
Increase (Decrease) in advance rental payments and security deposits	(278,905)	(231,217)
Total Adjustments	4,637,590	2,863,520
Net cash provided by operating activities	4,343,410	4,232,303
Cash Flows From Investing Activities
Distribution in excess of investment in unconsolidated joint ventures	187,500	9,062
(Investment) in unconsolidated joint ventures		(9,062)
Improvement of rental properties	(634,103)	(1,047,185)
Net cash provided by (used in) investing activities	(446,603)	(1,047,185)
Cash Flows from Financing Activities
Payment of financing costs		(132,306)
Proceeds of mortgage notes payable		3,781,877
Payment of note payable		(1,000,000)
Principal payments of mortgage notes payable	(552,575)	(575,128)
Stock buyback		(389,947)
Distributions to partners	(1,168,860)	(1,169,173)
Net cash provided by (used in) provided by financing activities	(1,721,435)	515,323
Net Increase (Decrease) in Cash and Cash Equivalents	2,175,372	3,700,441
Cash and Cash Equivalents, at beginning of period	18,646,972	7,546,324
Cash and Cash Equivalents, at end of period	$ 20,822,344	$ 11,246,765

XML

SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2021

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES

NOTE 1. SIGNIFICANT ACCOUNTING POLICIES

Line of Business: New England Realty Associates Limited Partnership (“NERA” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own 29 properties which include 21 residential buildings; 4 mixed use residential, retail and office buildings; 3 commercial buildings and individual units at one condominium complex. These properties total 2,892 apartment units, 19 condominium units and 108,043 square feet of commercial space. Additionally, the Partnership also owns a 40 - 50% interest in 7 residential and mixed use properties consisting of 688 apartment units, 12,500 square feet of commercial space and a 50 car parking lot. The properties are located in Eastern Massachusetts and Southern New Hampshire.

Basis of Presentation: The financial statements have been prepared in conformity with GAAP. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. These estimates and assumptions are based on management’s historical experience that are believed to be reasonable at the time. However, because future events and their effects cannot be determined with certainty, the determination of estimates requires the exercise of judgement. The Partnership’s critical accounting policies are those which require assumptions to be made about matters that are highly uncertain. Different estimates could have a material effect on the Partnership’s financial results. Judgements and uncertainties affecting the application of these policies and estimates may result in materially different amounts being reported under different conditions and circumstances.

Principles of Consolidation: The consolidated financial statements include the accounts of NERA and its subsidiaries. NERA has a 99.67% to 100% ownership interest in each subsidiary except for the seven limited liability companies (the “Investment Properties” or “Joint Ventures”) in which the Partnership has a 40 - 50% ownership interest. The consolidated group is referred to as the “Partnership”. Minority interests are not recorded, since they are insignificant. All significant intercompany accounts and transactions are eliminated in consolidation. The Partnership accounts for its investment in the above-mentioned Investment Properties using the equity method of consolidation. (See Note 14: Investment in Unconsolidated Joint Ventures.)

The Partnership accounts for its investments in joint ventures using the equity method of accounting. These investments are recorded initially at cost, as Investments in Unconsolidated Joint Ventures, and subsequently adjusted for equity in earnings and cash contributions and distributions. Generally, the Partnership would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Partnership has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Partnership only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. In 2013 and beyond, the carrying values of some investments fell below zero. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits. (See Note 14: Investment in Unconsolidated Joint Ventures.)

The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the

variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE.

Impairment: On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties or investments in unconsolidated subsidiaries may be impaired. In addition to identifying any specific circumstances which may affect a property or properties, management considers other criteria for determining which properties may require assessment for potential impairment. The criteria considered by management include reviewing low leased percentages, significant near term lease expirations, recently acquired properties, current and historical operating and/or cash flow losses, near term mortgage debt maturities or other factors that might impact the Partnership’s intent and ability to hold property. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved.

Revenue Recognition: Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Revenue from commercial leases also include reimbursements and recoveries received from tenants for certain costs as provided in the lease agreement. The costs generally include real estate taxes, utilities, insurance, common area maintenance and recoverable costs. Rental concessions are also accounted for on the straight-line basis.

Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease amounts are accounted for as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases.

The Partnership evaluates the non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues). If both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component. The Partnership elected an allowed practical expedient. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred.

Rental Properties: Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions which improve or extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the

Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant.

Other intangible assets acquired include amounts for in-place lease values and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships.

In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required.

Leasing Fees: Leasing fees are capitalized and amortized on a straight-line basis over the life of the related lease. Unamortized balances are expensed when the corresponding fee is no longer applicable.

Deferred Financing Costs: Costs incurred in obtaining financing are capitalized and amortized over the term of the related indebtedness. Deferred financing costs are presented in the balance sheet as a direct deduction from the carrying value of the debt liability to which they relate, except deferred financing costs related to the revolving credit facility, which are presented in prepaid expenses and other assets. In all cases, amortization of such costs is included in interest expense and was approximately $60,000 and $60,000 for the three months ended March 31, 2021 and 2020, respectively.

Income Taxes: The financial statements have been prepared on the basis that NERA and its subsidiaries are entitled to tax treatment as partnerships. Accordingly, no provision for income taxes have been recorded (See Note 13).

Cash Equivalents: The Partnership considers cash equivalents to be all highly liquid instruments purchased with a maturity of three months or less.

Segment Reporting: Operating segments are revenue producing components of the Partnership for which separate financial information is produced internally for management. Under the definition, NERA operated, for all periods presented, as one segment.

Comprehensive Income: Comprehensive income is defined as changes in partners’ equity, exclusive of transactions with owners (such as capital contributions and dividends). NERA did not have any comprehensive income items in 2020 or 2019 other than net income as reported.

Income (Loss) Per Depositary Receipt: Effective January 3, 2012, the Partnership authorized a 3-for-1 forward split of its Depositary Receipts listed on the NYSE Amex and a concurrent adjustment of the exchange ratio of Depositary Receipts for Class A Units of the Partnership from 10-to-1 to 30-to-1, such that each Depositary Receipt represents one-thirtieth (1/30) of a Class A Unit of the Partnership. All references to Depositary Receipts in the report are reflective of the 3- for-1 forward split.

Income Per Unit: Net income per unit has been calculated based upon the weighted average number of units outstanding during each period presented. The Partnership has no dilutive units and, therefore, basic net income is the same as diluted net income per unit (see Note 7: Partner’s Capital).

Concentration of Credit Risks and Financial Instruments: The Partnership’s properties are located in New England, and the Partnership is subject to the general economic risks related thereto. No single tenant accounted for more

than 5% of the Partnership’s revenues in 2021 or 2020. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At March 31, 2021, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, earning interest at rates from 0.01% to 0.03%. At March 31, 2021 and December 31, 2020, respectively approximately $21,116,000, and $18,830,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts.

Advertising Expense: Advertising is expensed as incurred. Advertising expense was $89,350 and $69,056 for the three months ended March 31, 2021 and 2020, respectively.

Rental Property Held for Sale: When assets are identified by management as held for sale, the Partnership discontinues depreciating the assets and estimates the sales price, net of selling costs, of such assets. The Partnership generally considers assets to be held for sale when the transaction has received appropriate corporate authority, and there are no significant contingencies relating to the sale. If, in management’s opinion, the estimated net sales price, net of selling costs, of the assets which have been identified as held for sale is less than the carrying value of the assets, a valuation allowance is established.

Interest Capitalized: The Partnership follows the policy of capitalizing interest as a component of the cost of rental property when the time of construction exceeds one year. During the three months ended March 31, 2021 and 2020 there was no capitalized interest.

Extinguishment of Debt: When existing mortgages are refinanced with the same lender and it is determined that the refinancing is substantially different, then they are recorded as an extinguishment of debt. However if it is determined that the refinancing is substantially the same, then they are recorded as an exchange of debt. All refinancing qualify as extinguishment of debt.

Reclassifications: Certain reclassifications have been made to prior period amounts in order to conform to current period presentation.

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RENTAL PROPERTIES

3 Months Ended

Mar. 31, 2021

RENTAL PROPERTIES

RENTAL PROPERTIES

NOTE 2. RENTAL PROPERTIES

As of March 31, 2021, the Partnership and its Subsidiary Partnerships owned 2,892 residential apartment units in 25 residential and mixed-use complexes (collectively, the “Apartment Complexes”). The Partnership also owns 19 condominium units in a residential condominium complex, all of which are leased to residential tenants (collectively referred to as the “Condominium Units”). The Apartment Complexes and Condominium Units are located primarily in the metropolitan Boston area of Massachusetts.

Additionally, as of March 31, 2021, the Partnership and Subsidiary Partnerships owned a commercial shopping center in Framingham, commercial buildings in Newton and Brookline and mixed-use properties in Boston, Brockton and Newton, all in Massachusetts. These properties are referred to collectively as the “Commercial Properties.”

The Partnership also owned a 40% to 50% ownership interest in seven residential and mixed use complexes (the “Investment Properties”) at March 31, 2021 with a total of 688 apartment units, accounted for using the equity method of consolidation. See Note 14 for summary information on these investments.

Rental properties consist of the following:

	March 31, 2021		December 31, 2020		Useful Life
Land, improvements and parking lots	$	86,867,393	$	86,867,393	15	-	40	years
Buildings and improvements		253,483,082		253,322,865	15	-	40	years
Kitchen cabinets		17,234,223		17,157,121	5	-	10	years
Carpets		11,304,573		11,146,634	5	-	10	years
Air conditioning		501,697		501,697	5	-	10	years
Laundry equipment		608,271		608,271	5	-	7	years
Elevators		1,885,265		1,885,265	20	-	40	years
Swimming pools		1,092,194		1,092,194	10	-	30	years
Equipment		17,750,185		17,596,043	5	-	30	years
Motor vehicles		211,660		211,660			5	years
Fences		46,871		46,872	5	-	15	years
Furniture and fixtures		7,781,841		7,697,137	5	-	7	years
Smoke alarms		496,641		496,641	5	-	7	years
Total fixed assets		399,263,896		398,629,793
Less: Accumulated depreciation		(137,902,138)		(134,019,906)
	$	261,361,758	$	264,609,887

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RELATED PARTY TRANSACTIONS

3 Months Ended

Mar. 31, 2021

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 3. RELATED PARTY TRANSACTIONS

The Partnership’s properties are managed by an entity that is owned by the majority shareholder of the General Partner. The management fee is equal to 4% of gross receipts of rental revenue and laundry income on the majority of the Partnership’s properties and 3% on Linewt. Total fees paid were approximately $605,000 and $649,000 for the three months ended March 31, 2021 and 2020, respectively.

The Partnership Agreement permits the General Partner or Management Company to charge the costs of professional services (such as counsel, accountants and contractors) to NERA. During the three months ended March 31, 2021 and 2020, approximately $256,000 and $346,000, was charged to NERA for legal, accounting, construction, maintenance, brokerage fees, rental and architectural services and supervision of capital improvements. Of the 2021 expenses referred to above, approximately $46,000 consisted of repairs and maintenance, and $55,000 of administrative expense. Approximately $155,000 of expenses for construction, architectural services and supervision of capital projects were capitalized in rental properties. Additionally in 2021, the Hamilton Company received approximately $142,000 from the Investment Properties of which approximately $127,000 was the management fee, approximately $6,000 was for maintenance services, approximately $8,000 was for administrative services and approximately $1,000 for architectural services and supervision of capital projects. The management fee is equal to 4% of gross receipts of rental income on the majority of investment properties and 2% on Dexter Park.

The Partnership reimburses the management company for the payroll and related expenses of the employees who work at the properties. Total reimbursement was approximately $843,000 and $822,000 for the three months ended March 31, 2021 and 2020, respectively. The Management Company maintains a 401K plan for all eligible employees whereby the employees may contribute the maximum allowed by law. The plan also provides for discretionary contributions by the employer. For the three months ended March 31, 2021, the Partnership accrued $11,000 for the employer’s match portion to the plan. For the three months ended March 31, 2020, the Partnership contributed $11,000 for the employer’s match portion to the plan.

Bookkeeping and accounting functions are provided by the Management Company’s accounting staff, which consists of approximately 14 people. During the three months ended March 31, 2021 and 2020, the Management Company charged the Partnership $31,250 ($125,000 per year) for bookkeeping and accounting services included in administrative expenses above.

The Partnership has invested in seven limited partnerships, which have invested in mixed use residential apartment complexes. The Partnership has a 40% to 50% ownership interest in each investment property. The other

investors are the Brown family related entities, and five current and previous employees of the Management Company. The Brown Family related entities’ ownership interest was between 47.6% and 59%. See Note 14 for a description of the properties and their operations.

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OTHER ASSETS

3 Months Ended

Mar. 31, 2021

OTHER ASSETS

OTHER ASSETS

NOTE 4. PREPAID EXPENSES and OTHER ASSETS

Approximately $2,790,000, and $2,830,000 of security deposits are included in prepaid expenses and other assets at March 31, 2021 and December 31, 2020, respectively. The security deposits and escrow accounts are restricted cash.

Also, included in prepaid expenses and other assets at March 31, 2021 and December 31, 2020 is approximately $1,225,000 and $1,073,000, respectively, held in escrow to fund future capital improvements.

Intangible assets on the acquisition of Mill Street Apartments are included in prepaid expenses and other assets. Intangible assets are approximately $45,000 net of accumulated amortization of approximately $1,373,000 and approximately $51,000 net of accumulated amortization of approximately $1,367,000 at March 31, 2021 and December 31, 2020, respectively.

Financing fees in association with the line of credit of approximately $9,000 and $42,000 are net of accumulated amortization of approximately $16,000 and $6,000 at March 31, 2021 and December 31, 2020 respectively.

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MORTGAGE NOTES PAYABLE

3 Months Ended

Mar. 31, 2021

MORTGAGE NOTES PAYABLE

MORTGAGE NOTES PAYABLE

NOTE 5. MORTGAGE NOTES PAYABLE

At March 31, 2021 and December 31, 2020, the mortgages payable consisted of various loans, all of which were secured by first mortgages on properties referred to in Note 2. At March 31, 2021, the interest rates on these loans ranged from 3.53% to 5.66%, payable in monthly installments aggregating approximately $1,257,000 including principal, to various dates through 2035. The majority of the mortgages are subject to prepayment penalties. At March 31, 2021, the weighted average interest rate on the above mortgages was 4.43%. The effective rate of 4.51% includes the amortization expense of deferred financing costs. See Note 12 for fair value information. The Partnership’s mortgage debt and the mortgage debt of its unconsolidated joint ventures generally is non-recourse except for customary exceptions pertaining to misuse of funds and material misrepresentations.

Financing fees of approximately $1,285,000 and $1,345,000 are net of accumulated amortization of approximately $1,624,000 and $1,564,000 at March 31, 2021 and December 31, 2020, respectively, which offset the total mortgage notes payable.

The Partnership has pledged tenant leases as additional collateral for certain of these loans.

Approximate annual maturities at March 31, 2021 are as follows:

2022—current maturities	$	2,620,000
2023		67,012,000
2024		38,298,000
2025		11,093,000
2026		21,647,000
Thereafter		143,567,000
		284,237,000
Less: unamortized deferred financing costs		(1,285,000)
	$	282,952,000

On March 31, 2020, Nera Brookside Associates, LLC (“Brookside Apartments”), entered into a Mortgage Note with KeyBank National Associates ( KeyBank) in the principal amount of $6,175,000. Interest only payments on the Note are payable on a monthly basis at a fixed interest rate of 3.53% per annum, and the principal amount of the Note is due and payable on April 1, 2035. The Note is secured by a mortgage on the Brookside apartment complex located at 5-12 Totman Drive, Woburn, Massachusetts pursuant to a Mortgage, Assignment of Leases and Rents and Security Agreement dated March 31, 2020. The Note is guaranteed by the Partnership pursuant to a Guaranty Agreement dated March 31, 2020. Brookside Apartments used the proceeds of the loan to pay off an outstanding loan of approximately

$2,390,000, with the remaining portion of the proceeds added to cash reserves. In connection with this refinancing, there were closing costs of approximately $136,000.

Line of Credit

On July 31, 2014, the Partnership entered into an agreement for a $25,000,000 revolving line of credit. The term of the line was for three years with a floating interest rate equal to a base rate of the greater of (a) the Prime Rate (b) the Federal Funds Rate plus one-half of one percent per annum, or (c) the LIBOR Rate for a period of one month plus 1% per annum, plus the applicable margin of 2.5%. The agreement originally expired on July 31, 2017, and was extended until October 31, 2020. The costs associated with the line of credit extension in 2017 were approximately $128,000. Management is currently working with the lender on a three year renewal of the line of credit. As of April 30, 2021, the Partnership had not completed the renewal and exercised a one year extension. The Partnership paid an extension fee of approximately $37,500 in association with the extension.

The line of credit may be used for acquisition, refinancing, improvements, working capital and other needs of the Partnership. The line may not be used to pay distributions, make distributions or acquire equity interests of the Partnership.

The line of credit is collateralized by varying percentages of the Partnership’s ownership interest in 23 of its subsidiary properties and joint ventures. Pledged interests range from 49% to 100% of the Partnership’s ownership interest in the respective entities.

The Partnership paid fees to secure the line of credit. Any unused balance of the line of credit is subject to a fee ranging from 15 to 20 basis points per annum. The Partnership paid approximately $3,000 in fees for the three months ended March 31, 2021.

On December 19, 2019, the Partnership drew down on the line of credit in the amount of $20,000,000, used in conjunction with the purchase of Mill Street Apartments. On December 20, 2019, the Partnership paid down $2,000,000. On January 22, 2020, the Partnership paid down $1,000,000. As of March 31, 2021, the line of credit had an outstanding balance of $17,000,000.

The line of credit agreement has several covenants, such as providing cash flow projections and compliance certificates, as well as other financial information. The covenants include, but are not limited to the following: maintain a leverage ratio that does not exceed 65%; aggregate increase in indebtedness of the subsidiaries and joint ventures should not exceed $15,000,000; maintain a tangible net worth (as defined in the agreement) of a minimum of $150,000,000; a minimum ratio of net operating income to total indebtedness of at least 9.5%; debt service coverage ratio of at least 1.6 to 1, as well as other items. The Partnership is in compliance with these covenants as of March 31, 2021.

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ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS

3 Months Ended

Mar. 31, 2021

ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS

ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS

NOTE 6. ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS

The Partnership’s residential lease agreements may require tenants to maintain a one-month advance rental payment and/or a security deposit. At March 31, 2021, amounts received for prepaid rents of approximately $1,999,000 are included in cash and cash equivalents, and security deposits of approximately $2,790,000 are included in prepaid expenses and other assets and are restricted cash.

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PARTNERS' CAPITAL

3 Months Ended

Mar. 31, 2021

PARTNERS' CAPITAL

PARTNERS' CAPITAL

NOTE 7. PARTNERS’ CAPITAL

The Partnership has two classes of Limited Partners (Class A and B) and one category of General Partner. Under the terms of the Partnership Agreement, distributions to holders of Class B Units and General Partnership Units must represent 19% and 1%, respectively, of the total units outstanding. All classes have equal profit sharing and distribution rights, in proportion to their ownership interests.

In January 2021, the Partnership approved a quarterly distribution of $9.60 per Unit ($0.32 per Receipt), payable on March 31, 2021.

In 2020, regular quarterly distributions of $9.60 per unit ($0.32 per receipt), were paid in March, June, September and December.

The Partnership has entered into a deposit agreement with an agent to facilitate public trading of limited partners’ interests in Class A Units. Under the terms of this agreement, the holders of Class A Units have the right to exchange each Class A Unit for 30 Depositary Receipts. The following is information per Depositary Receipt:

	Three Months Ended
	March 31,
	2021		2020
Net Income (Loss) per Depositary Receipt	$	(0.08)	$	0.37
Distributions per Depositary Receipt	$	0.32	$	0.32

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TREASURY UNITS

3 Months Ended

Mar. 31, 2021

TREASURY UNITS

TREASURY UNITS

NOTE 8. TREASURY UNITS

Treasury Units at March 31, 2021 are as follows:

Class A	46,775
Class B	11,109
General Partnership	585
	58,469

On August 20, 2007, NewReal, Inc., the General Partner authorized an equity repurchase program (“Repurchase Program”) under which the Partnership was permitted to purchase, over a period of twelve months, up to 300,000 Depositary Receipts (each of which is one-tenth of a Class A Unit). Over time, the General Partner has authorized increases in the equity repurchase program. On March 10, 2015, the General Partner authorized an increase in the Repurchase Program from 1,500,000 to 2,000,000 Depository Receipts and extended the Program for an additional five years from March 31, 2015 until March 31, 2020. On March 9, 2020, the General Partner extended the program for an additional five years from March 31, 2020 to March 31, 2025. The Repurchase Program requires the Partnership to repurchase a proportionate number of Class B Units and General Partner Units in connection with any repurchases of any Depositary Receipts by the Partnership based upon the 80%, 19% and 1% fixed distribution percentages of the holders of the Class A, Class B and General Partner Units under the Partnership’s Second Amended and Restated Contract of Limited Partnership. Repurchases of Depositary Receipts or Partnership Units pursuant to the Repurchase Program may be made by the Partnership from time to time in its sole discretion in open market transactions or in privately negotiated transactions. From August 20, 2007 through March 31, 2021, the Partnership has repurchased 1,428,437 Depositary Receipts at an average price of $28.43 per receipt (or $852.90 per underlying Class A Unit), 3,572 Class B Units and 188 General Partnership Units, both at an average price of $1,033.00 per Unit, totaling approximately $44,718,000 including brokerage fees paid by the Partnership.

During the three months ended March 31, 2021, the Partnership did not purchase any Depositary Receipts.

Given the economic uncertainty caused by the coronavirus issue, as of April 15, 2020, the Partnership has elected to temporarily suspend the repurchase program.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2021

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 9. COMMITMENTS AND CONTINGENCIES

From time to time, the Partnership is involved in various ordinary routine litigation incidental to its business. The Partnership either has insurance coverage or provides for any uninsured claims when appropriate. The Partnership is not involved in any material pending legal proceedings.

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RENTAL INCOME

3 Months Ended

Mar. 31, 2021

RENTAL INCOME

RENTAL INCOME

NOTE 10. RENTAL INCOME

During the three months ended March 31, 2021, approximately 94% of rental income was related to residential apartments and condominium units with leases of one year or less. The majority of these leases expire in June, July and August. Approximately 6% was related to commercial properties, which have minimum future annual rental income on non-cancellable operating leases at March 31, 2021 as follows:

	Commercial
	Property Leases
2022	$	2,137,000
2023		1,527,000
2024		1,152,000
2025		503,000
2026		284,000
Thereafter		490,000
	$	6,093,000

The aggregate minimum future rental income does not include contingent rentals that may be received under various leases in connection with common area charges and real estate taxes. Aggregate contingent rentals from continuing operations were approximately $150,000 and $121,000 for the three months ended March 31, 2021 and 2020 respectively. Staples and Trader Joe’s, tenants at Staples Plaza, are approximately 25% of the total commercial rental income.

The following information is provided for commercial leases:

	Annual base				Percentage of
	rent for		Total square feet	Total number of	annual base rent for
Through March 31,	expiring leases		for expiring leases	leases expiring	expiring leases
2022	$	1,065,898	59,415	20	39	%
2023		221,861	6,392	6	8	%
2024		672,213	19,432	9	25	%
2025		395,806	14,868	8	15	%
2026		204,708	3,473	4	7	%
2027		23,340	724	1	1	%
2028		—	—	—	—	%
2029		—	—	—	—	%
2030		142,450	3,850	1	5	%
2031		—	—	—	—	%
Totals	$	2,726,276	108,154	49	100	%

Rents receivable are net of an allowance for doubtful accounts of approximately $1,271,000 and $1,454,000 at March 31, 2021 and December 31, 2020. Included in rents receivable at March 31, 2021 is approximately $84,000 resulting from recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis. The majority of this amount is for long-term leases at 62 Boylston Street, Cypress Street, and Staples Plaza in Massachusetts.

Rents receivable at March 31, 2021 also includes approximately $427,000 representing the deferral of rental concession primarily related to the residential properties.

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CASH FLOW INFORMATION

3 Months Ended

Mar. 31, 2021

CASH FLOW INFORMATION

CASH FLOW INFORMATION

NOTE 11. CASH FLOW INFORMATION

During the three months ended March 31, 2021 and 2020, cash paid for interest was approximately $3,306,000, and $3,229,000 respectively. Cash paid for state income taxes was approximately $56,000 and $76,000 during the three months ended March 31, 2021 and 2020 respectively. Additionally, during the three months ended March 31, 2020, the Partnership was involved in a non-cash financing activity of approximately $2,393,000 in connection with the refinancing of Brookside Apartments.

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FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2021

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

NOTE 12. FAIR VALUE MEASUREMENTS

Fair Value Measurements on a Recurring Basis

At March 31, 2021 and December 31, 2020, we do not have any significant financial assets or financial liabilities that are measured at fair value on a recurring basis in our consolidated financial statements.

Financial Assets and Liabilities not Measured at Fair Value

At March 31, 2021 and December 31, 2020 the carrying amounts of certain of our financial instruments, including cash and cash equivalents, accounts receivable, and note payable, accounts payable and accrued expenses were representative of their fair values due to the short-term nature of these instruments or, the recent acquisition of these items.

At March 31, 2021 and December 31, 2020, we estimated the fair value of our mortgages payable and other notes based upon quoted market prices for the same (Level 1) or similar (Level 2) issues when current quoted market prices are available. We estimated the fair value of our secured mortgage debt that does not have current quoted market prices available by discounting the future cash flows using rates currently available to us for debt with similar terms and maturities (Level 3). The differences in the fair value of our debt from the carrying value are the result of differences in interest rates and/or borrowing spreads that were available to us at March 31, 2021 and December 31, 2020, as compared with those in effect when the debt was issued or acquired. The secured mortgage debt contain pre-payment penalties or yield maintenance provisions that could make the cost of refinancing the debt at lower rates exceed the benefit that would be derived from doing so.

The following methods and assumptions were used by the Partnership in estimating the fair value of its financial instruments:

● For cash and cash equivalents, accounts receivable, other assets, investment in partnerships, accounts payable, advance rents and security deposits: fair value approximates the carrying value of such assets and liabilities.

● For mortgage notes payable: fair value is generally based on estimated future cash flows, which are discounted using the quoted market rate from an independent source for similar obligations. Refer to the table below for the carrying amount and estimated fair value of such instruments.

The following table reflects the carrying amounts and estimated fair value of our debt.

		Carrying Amount		Estimated Fair Value
Mortgage Notes Payable
Partnership Properties
At March 31, 2021	*	$	282,951,918	$	296,779,258
At December 31, 2020	*	$	283,444,533	$	303,993,142
Investment Properties
At March 31, 2021	*	$	166,282,719	$	174,613,534
At December 31, 2020	*	$	166,308,029	$	179,647,759

* Net of unamortized deferred financing costs

Disclosure about fair value of financial instruments is based on pertinent information available to management as of March 31, 2021 and December 31, 2020. Although management is not aware of any factors that would significantly affect the fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since March 31, 2021 and current estimates of fair value may differ significantly from the amounts presented herein.

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TAXABLE INCOME AND TAX BASIS

3 Months Ended

Mar. 31, 2021

TAXABLE INCOME AND TAX BASIS

TAXABLE INCOME AND TAX BASIS

NOTE 13. TAXABLE INCOME AND TAX BASIS

Taxable income reportable by the Partnership and includable in its partners’ tax returns is different than financial statement income because of tax free exchanges, different depreciation methods, different tax lives, other items with limited tax deductibility and timing differences related to prepaid rents, allowances and intangible assets at significant acquisitions. Federal taxable income of approximately $8,578,000 was approximately $7,153,000 more than statement income for the year ended December 31, 2020.The Federal cumulative tax basis of the Partnership’s real estate at December 31, 2020 is approximately $7,332,000 more than the statement basis. The primary reasons for the difference in tax basis are tax free exchanges, accelerated depreciation and bonus depreciation. The Partnership’s Federal tax basis in its joint venture investments is approximately $1,476,000 more than statement basis. State taxable income may be significantly different due to different tax treatments for certain items.

Certain entities included in the Partnership’s consolidated financial statements are subject to certain state taxes. These taxes are not significant and are recorded as operating expenses in the accompanying consolidates financial statements.

The Partnership adopted the amended provisions related to uncertain tax provisions of ASC 740, Income Taxes. As a result of the implementation of the guidance, the Partnership recognized no material adjustment regarding its tax accounting treatment. The Partnership expects to recognize interest and penalties related to uncertain tax positions, if any, as income tax expense, which would be included in general and administrative expense.

In the normal course of business the Partnership or one of its subsidiaries is subject to examination by federal, state and local jurisdictions in which it operates, where applicable. As of March 31, 2021, the tax years that generally remain subject to examination by the major tax jurisdictions under the statute of limitations is from the year 2017 forward.

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

3 Months Ended

Mar. 31, 2021

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

NOTE 14. INVESTMENT IN UNCONSOLIDATED JOINT VENTURES

The Partnership has invested in seven limited partnerships and limited liability companies, the majority of which have invested in residential apartment complexes, with three Joint Ventures investing in commercial property. The Partnership has between a 40%-50% ownership interests in each investment. The other investors are the Brown Family related entities and five current and former employees of the Management Company. The Brown Family’s ownership interest was between 47.6% and 59%, with the balance owned by the others. A description of each investment is as follows:

On October 28, 2009 the Partnership invested approximately $15,925,000 in a joint venture to acquire a 40% interest in a residential property located in Brookline, Massachusetts. The property, Hamilton Park Towers LLC, referred to as Dexter Park, or Hamilton Park, is a 409 unit residential complex. The purchase price was $129,500,000. The original mortgage was $89,914,000 with an interest rate of 5.57% and was to mature in 2019. The mortgage called for interest only payments for the first two years of the loan and amortized over 30 years thereafter.

On May 31, 2018, Hamilton Park Towers, LLC , entered into a Mortgage Note with John Hancock Life Insurance Company (U.S.A.) in the principal amount of $125,000,000. Interest only payments on the Note are payable on a monthly basis at a fixed interest rate of 3.99% per annum, and the principal amount of the Note is due and payable on June 1, 2028. The Note is secured by a mortgage on the Dexter Park apartment complex located at 175 Freeman Street, Brookline, Massachusetts pursuant to a Mortgage, Assignment of Leases and Rents and Security Agreement dated May 31, 2018. The Note is guaranteed by the Partnership and HBC Holdings, LLC pursuant to a Guaranty Agreement dated May 31, 2018.

Hamilton Park used the proceeds of the loan to pay off an outstanding loan of approximately $82,000,000 and distributed approximately $41,200,000 to its’ owners. The Partnership’s share of the distribution was approximately $16,500,000. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for the investment using the equity method of accounting, although the Partnership has no legal obligation to fund its’ share of any future operating deficiencies as needed. In connection with this refinancing, the property incurred a defeasance charge of approximately $3,830,000. Based on its’ ownership in the property, the Partnership incurred 40% of this charge, an expense of approximately $1,532,000.

At March 31, 2021, the balance on this mortgage before unamortized deferred financing costs is $125,000,000. This investment, Hamilton Park Towers, LLC is referred to as Dexter Park.

On March 7, 2005, the Partnership invested $2,000,000 for a 50% ownership interest in a building comprising 48 apartments, one commercial space and a 50-car surface parking lot located in Boston, Massachusetts. The purchase price was $14,300,000, with a $10,750,000 mortgage. The Joint Venture planned to operate the building and initiate development of the parking lot. In June 2007, the Joint Venture separated the parcels, formed an additional limited liability company for the residential apartments and obtained a mortgage on the property. The new limited liability company formed for the residential apartments and commercial space is referred to as Hamilton Essex 81, LLC. In August 2008, the Joint Venture restructured the mortgages on both parcels at Essex 81. On September 28, 2015, Hamilton Essex Development, LLC paid off the outstanding mortgage balance of $1,952,286. The Partnership made a capital contribution of $978,193 to Hamilton Essex Development LLC for its share of the funds required for the transaction. Additionally, the Partnership made a capital contribution of $100,000 to Hamilton Essex 81, LLC. On September 30, 2015, Hamilton Essex 81, LLC obtained a new 10 year mortgage in the amount of $10,000,000, interest only at 2.18% plus the one month Libor rate. The proceeds of the note were used to pay off the existing mortgage of $8,040,719 and the Partnership received a distribution of $978,193 for its share of the excess proceeds. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share of any future operating deficits if needed. At March 31, 2021, the balance on this mortgage before unamortized deferred financing costs is approximately $10,000,000. The investment in the parking lot is referred to as Hamilton Essex Development, LLC; the investment in the apartments is referred to as Hamilton Essex 81, LLC.

On March 2, 2005, the Partnership invested $2,352,000 for a 50% ownership interest in a 176-unit apartment complex with an additional small commercial building located in Quincy, Massachusetts. The purchase price was $23,750,000. The Joint Venture sold 127 of the units as condominiums and retained 49 units for long-term investment. The Joint Venture obtained a new 10-year mortgage in the amount of $5,000,000 on the units to be retained by the Joint Venture. The interest on the new loan was 5.67% fixed for the 10 year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan term. On July 8, 2016, Hamilton 1025 LLC paid off the outstanding balance of the mortgage balance. The Partnership made a capital contribution of $2,359,500 to Hamilton 1025, LLC for its share of the funds required for the transaction. After paying off the mortgage, the Partnership began to sell off the individual units. In 2019, all residential units were sold. The Partnership still owns the commercial building. This investment is referred to as Hamilton 1025, LLC.

In September 2004, the Partnership invested approximately $5,075,000 for a 50% ownership interest in a 42-unit apartment complex located in Lexington, Massachusetts. The purchase price was $10,100,000. In October 2004, the Joint Venture obtained a mortgage on the property in the amount of $8,025,000 and returned $3,775,000 to the Partnership. The Joint Venture obtained a new 10-year mortgage in the amount of $5,500,000 in January 2007. The interest on the new loan was 5.67% fixed for the ten year term with interest only payments for five years and amortized over a 30 year period for the balance of the loan. This loan required a cash contribution by the Partnership of $1,250,000 in December 2006. On September 12, 2016, the property was refinanced with a 15 year mortgage in the amount of $6,000,000, at 3.71%, interest only. The Joint Venture Partnership paid off the prior mortgage of approximately $5,158,000 with the proceeds of the new mortgage and made a distribution of $385,000 to the Partnership. The cost associated with the refinancing was approximately $123,000. At March 31, 2021, the balance on this mortgage before unamortized deferred financing costs is approximately $6,000,000. In 2018, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting, although the Partnership has no legal obligation to fund its share of any future operating deficiencies, if needed. This investment is referred to as Hamilton Minuteman, LLC.

In August 2004, the Partnership invested $8,000,000 for a 50% ownership interest in a 280-unit apartment complex located in Watertown, Massachusetts. The total purchase price was $56,000,000. The Joint Venture sold 137 units as condominiums. The assets were combined with Hamilton on Main Apartments. Hamilton on Main, LLC is known as Hamilton Place. In 2005, Hamilton on Main Apartments, LLC obtained a ten year mortgage on the three buildings to be retained. The mortgage was $16,825,000, with interest only of 5.18% for three years and amortizing on a 30 year schedule for the remaining seven years when the balance is due. The net proceeds after funding escrow accounts and closing costs on the mortgage were approximately $16,700,000, which were used to reduce the existing mortgage. In August 2014, the property was refinanced with a 10 year mortgage in the amount of $16,900,000 at 4.34% interest only. The Joint Venture paid off the prior mortgage of approximately $15,205,000 with the proceeds of the new mortgage and

distributed $850,000 to the Partnership. The costs associated with the refinancing were approximately $161,000. At March 31, 2021, the balance of the mortgage before unamortized deferred finance is $16,900,000. In 2018, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting, although the Partnership has no legal obligation to fund its share of any future operating deficiencies, if needed. The investment is referred to as Hamilton on Main LLC.

In November 2001, the Partnership invested approximately $1,533,000 for a 50% ownership interest in a 40-unit apartment building in Cambridge, Massachusetts. In June 2013, the property was refinanced with a 15 year mortgage in the amount of $10,000,000 at 3.87%, interest only for 3 years and is amortized on a 30-year schedule for the balance of the term. The Joint Venture paid off the prior mortgage of approximately $6,776,000 with the proceeds of the new mortgage. After the refinancing, the Joint Venture made a distribution of $1,610,000 to the Partnership. As a result of the distribution, the carrying value of the investment fell below zero. The Partnership will continue to account for this investment using the equity method of accounting. Although the Partnership has no legal obligation, the Partnership intends to fund its share of any future operating deficits if needed. At March 31, 2021, the balance of this mortgage before unamortized deferred financing costs is approximately $9,097,000. This investment is referred to as 345 Franklin, LLC.

Summary financial information March 31, 2021

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	6,583,704		$	2,590,036		$	5,289,712		$	84,003		$	4,914,411		$	14,982,149		$	80,053,070		$	114,497,085
Cash & Cash Equivalents		66,579			40,821			139,721			6,435			132,455			574,605			2,564,784			3,525,400
Rent Receivable		31,379			—			35,916			11,669			9,749			49,425			447,666			585,804
Real Estate Tax Escrow		74,083			—			54,505			—			38,883			113,702			—			281,173
Prepaid Expenses & Other Assets		274,840			75,119			85,816			191			15,187			177,044			1,400,615			2,028,812
Total Assets	$	7,030,585		$	2,705,976		$	5,605,670		$	102,298		$	5,110,685		$	15,896,925		$	84,466,135		$	120,918,274
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,937,949		$	—		$	9,048,329		$	—		$	5,914,414		$	16,845,158		$	124,536,869		$	166,282,719
Accounts Payable & Accrued Expense		66,760			4,000			106,469			3,225			75,274			172,092			722,157			1,149,977
Advance Rental Pmts & Security Deposits		102,170			—			214,146			—			136,840			424,300			2,083,729			2,961,185
Total Liabilities		10,106,879			4,000			9,368,944			3,225			6,126,528			17,441,550			127,342,755			170,393,881
Partners’ Capital		(3,076,294)			2,701,976			(3,763,274)			99,073			(1,015,843)			(1,544,625)			(42,876,620)			(49,475,607)
Total Liabilities and Capital	$	7,030,585		$	2,705,976		$	5,605,670		$	102,298		$	5,110,685		$	15,896,925		$	84,466,135		$	120,918,274
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,350,988		$	—		$	49,536		$	—		$	—		$	—			1,400,524
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,538,147)		$	—		$	(1,881,637)		$	—		$	(507,922)		$	(772,313)		$	(17,150,648)			(21,850,666)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(20,450,142)
Total units/condominiums
Apartments		48			—			40			175			42			148			409			862
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			176			42			148			409			865
Units to be retained		49			1			40			1			42			148			409			690
Units to be sold		—			—			—			175			—			—			—			175
Units sold through May 1, 2021		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—
Unsold units with deposits for future sale as of May 1, 2021		—			—			—			—			—			—			—			—

Financial information for the three months ended March 31, 2021

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	230,217	$	—	$	333,093	$	24,369	$	284,524	$	816,812	$	3,069,883	$	4,758,898
Laundry and Sundry Income		3,013		—		112		—		1,276		8,777		26,152		39,330
		233,230		—		333,205		24,369		285,800		825,589		3,096,035		4,798,228
Expenses
Administrative		14,556		853		4,803		714		3,583		20,219		46,851		91,579
Depreciation and Amortization		118,942		5,074		85,345		816		84,025		269,915		924,560		1,488,677
Management Fees		5,260		—		12,412		628		11,296		32,375		65,278		127,249
Operating		29,432		—		13,521		91		34,596		124,933		298,094		500,667
Renting		32,784		—		14,328		—		360		30,760		84,955		163,187
Repairs and Maintenance		52,547		—		23,278		—		19,405		122,446		452,895		670,571
Taxes and Insurance		65,539		14,885		43,670		4,797		34,976		110,134		597,786		871,787
		319,060		20,812		197,357		7,046		188,241		710,782		2,470,419		3,913,717
Income Before Other Income		(85,830)		(20,812)		135,848		17,323		97,559		114,807		625,616		884,511
Other Income (Loss)
Interest Expense		(61,312)		—		(90,643)		—		(58,625)		(187,378)		(1,264,708)		(1,662,666)
Gain on Sale of Real Estate		—		—		—		—		—		—		—		—
		(61,312)		—		(90,643)		—		(58,625)		(187,378)		(1,264,708)		(1,662,666)
Net Income (Loss)	$	(147,142)	$	(20,812)	$	45,205	$	17,323	$	38,934	$	(72,571)	$	(639,092)	$	(778,155)
Net Income (Loss)—NERA 50%	$	(73,571)	$	(10,406)	$	22,602	$	8,662	$	19,466	$	(36,286)				(69,534)
Net Income (Loss) —NERA 40%													$	(255,636)		(255,636)
															$	(325,170)

Future annual mortgage maturities at March 31, 2021 are as follows:

	Hamilton		345		Hamilton		Hamilton on		Dexter
Period End	Essex 81		Franklin		Minuteman		Main Apts		Park		Total
3//31/2022	$	—	$	215,702	$	—	$	—	$	—	$	215,702
3/31/2023		—		224,199		—		—		—		224,199
3/31/2024		—		233,032		—		—		—		233,032
3/31/2025		—		242,212		—		16,900,000		—		17,142,212
3/31/2026		10,000,000		251,753		—		—		—		10,251,753
Thereafter		—		7,929,705		6,000,000		—		125,000,000		138,929,705
		10,000,000		9,096,603		6,000,000		16,900,000		125,000,000		166,996,603
Less: unamortized deferred financing costs		(62,051)		(48,274)		(85,586)		(54,842)		(463,131)		(713,884)
	$	9,937,949	$	9,048,329	$	5,914,414	$	16,845,158	$	124,536,869	$	166,282,719

At March 31, 2021 the weighted average interest rate on the above mortgages was 3.91%. The effective rate was 3.98% including the amortization expense of deferred financing costs.

Summary financial information at March 31, 2020

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	6,977,869		$	2,592,526		$	5,597,090		$	87,267		$	5,240,627		$	15,722,824		$	83,230,537		$	119,448,740
Cash & Cash Equivalents		336,900			105,620			387,085			11,568			234,919			514,145			3,510,840			5,101,077
Rent Receivable		215,143			38,463			—			—			205			12,553			27,015			293,379
Real Estate Tax Escrow		62,924			—			52,215			—			27,345			77,969			—			220,453
Prepaid Expenses & Other Assets		311,711			92,886			76,295			1,682			19,098			185,332			1,559,233			2,246,237
																							0
Total Assets	$	7,904,547		$	2,829,495		$	6,112,685		$	100,517		$	5,522,194		$	16,512,823		$	88,327,625		$	127,309,886
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,924,160		$	—		$	9,249,198		$	—		$	5,906,230		$	16,829,107		$	124,472,246		$	166,380,941
Accounts Payable & Accrued Expense		82,063			3,250			103,274			5,948			50,102			152,433			639,480			1,036,550
Advance Rental Pmts& Security Deposits		294,765			—			312,134			—			137,848			439,382			2,744,163			3,928,292
Total Liabilities		10,300,988			3,250			9,664,606			5,948			6,094,180			17,420,922			127,855,889			171,345,783
Partners’ Capital		(2,396,441)			2,826,245			(3,551,921)			94,569			(571,986)			(908,099)			(39,528,264)			(44,035,897)
Total Liabilities and Capital	$	7,904,547		$	2,829,495		$	6,112,685		$	100,517		$	5,522,194		$	16,512,823		$	88,327,625		$	127,309,886
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,413,123		$	—		$	47,284		$	—		$	—		$	—		$	1,460,406
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,198,220)		$	—		$	(1,775,961)		$	—		$	(285,993)		$	(454,050)		$	(15,811,306)			(19,525,528)
Total Investment in Unconsolidated Joint Ventures (Net)																							(18,065,122)
Total units/condominiums
Apartments		48			—			40			175			42			148			409			862
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			176			42			148			409			865
Units to be retained		49			1			40			1			42			148			409			690
Units to be sold		—			—			—			175			—			—			—			175
Units sold through May1, 2020		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—
Unsold units with deposits for future sale as of May 1, 2020		—			—			—			—			—			—			—			—

Financial information for three months ended March 31, 2020

										Hamilton		Hamilton
	Hamilton		Hamilton Essex		345		Hamilton			Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025			Apts		Apts		Park		Total
Revenues
Rental Income	$	439,380	$	60,471	$	428,150	$	20,558	$	290,693	$	905,700	$	4,206,503	$	6,351,455
Laundry and Sundry Income		3,385		—		454		—		—		8,749		25,742		38,330
		442,765		60,471		428,604		20,558		290,693		914,449		4,232,245		6,389,785
Expenses
Administrative		6,188		650		7,757		10,125		2,481		15,848		47,052		90,101
Depreciation and Amortization		121,642		5,074		84,494		816		86,826		261,047		916,987		1,476,886
Management Fees		17,736		2,203		16,466		822		11,532		34,984		87,082		170,825
Operating		25,524		—		12,988		45		22,226		93,845		310,381		465,009
Renting		2,775		—		8,753		—		3,000		7,720		16,804		39,052
Repairs and Maintenance		27,009		—		21,578		—		10,895		134,837		287,012		481,331
Taxes and Insurance		64,677		15,218		39,906		4,189		36,051		122,762		576,221		859,024
		265,551		23,145		191,942		15,997		173,011		671,043		2,241,539		3,582,228
Income Before Other Income		177,214		37,326		236,662		4,561		117,682		243,406		1,990,706		2,807,557
Other Income (Loss)
Interest Expense		(100,733)		—		(93,426)		—		(59,259)		(192,382)		(1,268,104)		(1,713,904)
Interest Income		—		—		—		—		—		—		—		—
		(100,733)		—		(93,426)		—		(59,259)		(192,382)		(1,268,104)		(1,713,904)
Net Income (Loss)	$	76,481	$	37,326	$	143,236	$	4,561	$	58,423	$	51,024	$	722,602	$	1,093,653
Net Income (Loss)—NERA 50%	$	38,241	$	18,663	$	71,618	$	2,281	$	29,211	$	25,512				185,525
Net Income (Loss)—NERA 40%													$	289,042		289,042
															$	474,567

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EMPLOYEE BENEFIT 401(k) PLANS

3 Months Ended

Mar. 31, 2021

EMPLOYEE BENEFIT 401(k) PLANS

EMPLOYEE BENEFIT 401(k) PLANS

NOTE 15. EMPLOYEE BENEFIT 401(k) PLANS

Effective January 1, 2019, employees of the Partnership, who meet certain minimum age and service requirements, are eligible to participate in the Management Company’s 401(k) Plan (the “401(k) Plan”).  Eligible employees may elect to defer up to 90 percent of their eligible compensation on a pre-tax basis to the 401(k) Plan, subject to certain limitations imposed by federal law. 

The amounts contributed by employees are immediately vested and non-forfeitable.  Beginning January 1, 2019, the Partnership matched 50% up to 6% of compensation deferred by each employee in the 401(k) plan. The Partnership may make discretionary matching or profit-sharing contributions to the 401(k) Plan on behalf of eligible participants in any plan year.  Participants are always 100 percent vested in their pre-tax contributions and will begin vesting in any matching or profit-sharing contributions made on their behalf after two years of service with the Partnership at a rate of 20 percent per year, becoming 100 percent vested after a total of six years of service with the Partnership. Total expense recognized by the Partnership for the 401(k) Plan for the three months ended March 31, 2021 was $11,000.

XML

IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

3 Months Ended

Mar. 31, 2021

IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

NOTE 16. IMPACT OF RECENTLY-ISSUED ACCOUNTING STANDARDS

In April 2020, the FASB issued a Staff Question & Answer (“Q&A”) which was intended to reduce the challenges of evaluating the enforceable rights and obligations of leases for concessions granted to lessees in response to the novel coronavirus disease (“COVID-19”), which was characterized on March 11, 2020 by the World Health Organization as a pandemic. Prior to this guidance, the Partnership was required to determine, on a lease by lease basis, if a lease concession should be accounted for as a lease modification, potentially resulting in any lease concessions granted being recorded as a reduction to revenue on a straight-line basis over the remaining terms of the leases. The Q&A allows both lessors and lessees to bypass this analysis and elect not to evaluate whether concessions provided in response to the COVID-19 pandemic are lease modifications. This relief is subject to certain conditions being met, including ensuring the total remaining lease payments are substantially the same or less as compared to the original lease payments prior to the concession being granted. The Partnership has elected to apply such relief and will therefore not evaluate if lease concessions that were granted in response to the COVID-19 pandemic meet the definition of a lease modification.  Accordingly, the Partnership accounted for qualifying rent concessions as negative variable lease payments, which reduced revenue from such leases in the period the concessions were granted.

XML

SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2021

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 17. SUBSEQUENT EVENTS

The current outbreak of the COVID-19 virus, which was characterized on March 11, 2020 by the World Health Organization as a pandemic, has currently resulted in a worldwide health crisis, which is adversely affecting international, national and local economies and financial markets generally, and continues to have an unprecedented effect on the rental housing and commercial property markets. Given the continuous evolution of the COVID-19 pandemic and the global response to curb its spread, the Partnership is not able to estimate the resulting effects on its results of operations, cash flows, financial condition, or liquidity for the year ending December 31, 2021 or beyond.

The Government’s measures put into place to combat the spread of the virus have caused significant disruptions to life and business operations in Massachusetts, the country and the world. The length and severity of the current recession and the effects on the Partnership’s business are unknown at this time.

During the current state of emergency, The Hamilton Company, the Partnership’s property manager, has taken steps to maintain the safety of its employees and tenants. Hamilton is providing essential services to ensure all properties are kept open, fully functioning and safe. Hamilton has implemented a work from home policy with a skeleton staff present at all site offices to provide for property management, maintenance, leasing and construction services. Leasing is limited to unoccupied units and a web based video technology is being used to remotely show apartments. Hamilton and the Partnership will continue to adjust their business practices to comply with Federal and State mandates for workplace and rental property operations.

Past due rents receivable have increased and the Partnership is currently experiencing significantly higher vacancies for the upcoming rental season.

Both State and Federal governments have taken steps to protect tenants during the covid - 19 Pandemic. These steps include extending the time required for a landlord to evict tenants who are not current with their rents. Although the eviction process has been significantly complicated and lengthened from approximately 4 weeks to a new estimated minimum of 3 months, the Management company is moving forward with evictions in compliance with applicable law.

The pandemic has resulted in a significant reduction in the occupancy and rental rate for certain buildings located near Boston’s colleges and universities.

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SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2021

SIGNIFICANT ACCOUNTING POLICIES

Line of Business

Line of Business: New England Realty Associates Limited Partnership (“NERA” or the “Partnership”) was organized in Massachusetts in 1977. NERA and its subsidiaries own 29 properties which include 21 residential buildings; 4 mixed use residential, retail and office buildings; 3 commercial buildings and individual units at one condominium complex. These properties total 2,892 apartment units, 19 condominium units and 108,043 square feet of commercial space. Additionally, the Partnership also owns a 40 - 50% interest in 7 residential and mixed use properties consisting of 688 apartment units, 12,500 square feet of commercial space and a 50 car parking lot. The properties are located in Eastern Massachusetts and Southern New Hampshire.

Basis of Presentation

Basis of Presentation: The financial statements have been prepared in conformity with GAAP. The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. These estimates and assumptions are based on management’s historical experience that are believed to be reasonable at the time. However, because future events and their effects cannot be determined with certainty, the determination of estimates requires the exercise of judgement. The Partnership’s critical accounting policies are those which require assumptions to be made about matters that are highly uncertain. Different estimates could have a material effect on the Partnership’s financial results. Judgements and uncertainties affecting the application of these policies and estimates may result in materially different amounts being reported under different conditions and circumstances.

Principles of Consolidation

Principles of Consolidation: The consolidated financial statements include the accounts of NERA and its subsidiaries. NERA has a 99.67% to 100% ownership interest in each subsidiary except for the seven limited liability companies (the “Investment Properties” or “Joint Ventures”) in which the Partnership has a 40 - 50% ownership interest. The consolidated group is referred to as the “Partnership”. Minority interests are not recorded, since they are insignificant. All significant intercompany accounts and transactions are eliminated in consolidation. The Partnership accounts for its investment in the above-mentioned Investment Properties using the equity method of consolidation. (See Note 14: Investment in Unconsolidated Joint Ventures.)

The Partnership accounts for its investments in joint ventures using the equity method of accounting. These investments are recorded initially at cost, as Investments in Unconsolidated Joint Ventures, and subsequently adjusted for equity in earnings and cash contributions and distributions. Generally, the Partnership would discontinue applying the equity method when the investment (and any advances) is reduced to zero and would not provide for additional losses unless the Partnership has guaranteed obligations of the venture or is otherwise committed to providing further financial support for the investee. If the venture subsequently generates income, the Partnership only recognizes its share of such income to the extent it exceeds its share of previously unrecognized losses. In 2013 and beyond, the carrying values of some investments fell below zero. We intend to fund our share of the investments’ future operating deficits should the need arise. However, we have no legal obligation to pay for any of the liabilities of such investments nor do we have any legal obligation to fund operating deficits. (See Note 14: Investment in Unconsolidated Joint Ventures.)

The authoritative guidance on consolidation provides guidance on the identification of entities for which control is achieved through means other than voting rights (“variable interest entities” or “VIEs”) and the determination of which business enterprise, if any, should consolidate the VIE (the “primary beneficiary”). Generally, the consideration of whether an entity is a VIE applies when either (1) the equity investors (if any) lack one or more of the essential characteristics of a controlling financial interest, (2) the equity investment at risk is insufficient to finance that equity’s activities without additional subordinated financial support or (3) the equity investors have voting rights that are not proportionate to their economic interests and the activities of the entity involve or are conducted on behalf of an investor with a disproportionately small voting interest. The primary beneficiary is defined by the entity having both of the following characteristics: (1) the power to direct the activities that, when taken together, most significantly impact the

variable interest entity’s performance; and (2) the obligation to absorb losses and rights to receive the returns from VIE that would be significant to the VIE.

Impairment

Impairment: On an annual basis management assesses whether there are any indicators that the value of the Partnership’s rental properties or investments in unconsolidated subsidiaries may be impaired. In addition to identifying any specific circumstances which may affect a property or properties, management considers other criteria for determining which properties may require assessment for potential impairment. The criteria considered by management include reviewing low leased percentages, significant near term lease expirations, recently acquired properties, current and historical operating and/or cash flow losses, near term mortgage debt maturities or other factors that might impact the Partnership’s intent and ability to hold property. A property’s value is impaired only if management’s estimate of the aggregate future cash flows (undiscounted and without interest charges) to be generated by the property is less than the carrying value of the property. To the extent impairment has occurred, the loss shall be measured as the excess of the carrying amount of the property over the fair value of the property. The Partnership’s estimates of aggregate future cash flows expected to be generated by each property are based on a number of assumptions that are subject to economic and market uncertainties including, among others, demand for space, competition for tenants, changes in market rental rates, and costs to operate each property. As these factors are difficult to predict and are subject to future events that may alter management’s assumptions, the future cash flows estimated by management in its impairment analyses may not be achieved.

Revenue Recognition

Revenue Recognition: Rental income from residential and commercial properties is recognized over the term of the related lease. For residential tenants, amounts 60 days in arrears are charged against income. The commercial tenants are evaluated on a case by case basis. Certain leases of the commercial properties provide for increasing stepped minimum rents, which are accounted for on a straight-line basis over the term of the lease. Revenue from commercial leases also include reimbursements and recoveries received from tenants for certain costs as provided in the lease agreement. The costs generally include real estate taxes, utilities, insurance, common area maintenance and recoverable costs. Rental concessions are also accounted for on the straight-line basis.

Above-market and below-market lease values for acquired properties are initially recorded based on the present value (using a discount rate which reflects the risks associated with the leases acquired) of the differences between (i) the contractual amounts to be paid pursuant to each in-place lease and (ii) management’s estimate of fair market lease rates for each corresponding in-place lease, measured over a period equal to the remaining term of the lease for above-market leases and the initial term plus the term of any below-market fixed-rate renewal options for below-market leases. The capitalized above-market lease amounts are accounted for as a reduction of base rental revenue over the remaining term of the respective leases, and the capitalized below-market lease values are amortized as an increase to base rental revenue over the remaining initial terms plus the terms of any below-market fixed-rate renewal options of the respective leases.

The Partnership evaluates the non-lease components (lease arrangements that include common area maintenance services) with related lease components (lease revenues). If both the timing and pattern of transfer are the same for the non-lease component and related lease component, the lease component is the predominant component. The Partnership elected an allowed practical expedient. For (i) operating lease arrangements involving real estate that include common area maintenance services and (ii) all real estate arrangements that include real estate taxes and insurance costs, we present these amounts within lease revenues in our consolidated statements of income. We record amounts reimbursed by the lessee in the period in which the applicable expenses are incurred.

Rental Properties

Rental Properties: Rental properties are stated at cost less accumulated depreciation. Maintenance and repairs are charged to expense as incurred; improvements and additions which improve or extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost of the asset and related accumulated depreciation is eliminated from the accounts, and any gain or loss on such disposition is included in income. Fully depreciated assets are removed from the accounts. Rental properties are depreciated by both straight-line and accelerated methods over their estimated useful lives. Upon acquisition of rental property, the Partnership estimates the fair value of acquired tangible assets, consisting of land, building and improvements, and identified intangible assets and liabilities assumed, generally consisting of the fair value of (i) above and below market leases, (ii) in-place leases and (iii) tenant relationships. The Partnership allocated the purchase price to the assets acquired and liabilities assumed based on their fair values. The Partnership records goodwill or a gain on bargain purchase (if any) if the net assets acquired/liabilities assumed exceed the purchase consideration of a transaction. In estimating the fair value of the tangible and intangible assets acquired, the

Partnership considers information obtained about each property as a result of its due diligence and marketing and leasing activities, and utilizes various valuation methods, such as estimated cash flow projections utilizing appropriate discount and capitalization rates, estimates of replacement costs net of depreciation, and available market information. The fair value of the tangible assets of an acquired property considers the value of the property as if it were vacant.

Other intangible assets acquired include amounts for in-place lease values and tenant relationship values, which are based on management’s evaluation of the specific characteristics of each tenant’s lease and the Partnership’s overall relationship with the respective tenant. Factors to be considered by management in its analysis of in-place lease values include an estimate of carrying costs during hypothetical expected lease-up periods considering current market conditions, and costs to execute similar leases at market rates during the expected lease-up periods, depending on local market conditions. In estimating costs to execute similar leases, management considers leasing commissions, legal and other related expenses. Characteristics considered by management in valuing tenant relationships include the nature and extent of the Partnership’s existing business relationships with the tenant, growth prospects for developing new business with the tenant, the tenant’s credit quality and expectations of lease renewals. The value of in-place leases are amortized to expense over the remaining initial terms of the respective leases. The value of tenant relationship intangibles are amortized to expense over the anticipated life of the relationships.

In the event that facts and circumstances indicate that the carrying value of a rental property may be impaired, an analysis of the value is prepared. The estimated future undiscounted cash flows are compared to the asset’s carrying value to determine if a write-down to fair value is required.

Leasing Fees and Deferred Financing Costs

Leasing Fees: Leasing fees are capitalized and amortized on a straight-line basis over the life of the related lease. Unamortized balances are expensed when the corresponding fee is no longer applicable.

Deferred Financing Costs: Costs incurred in obtaining financing are capitalized and amortized over the term of the related indebtedness. Deferred financing costs are presented in the balance sheet as a direct deduction from the carrying value of the debt liability to which they relate, except deferred financing costs related to the revolving credit facility, which are presented in prepaid expenses and other assets. In all cases, amortization of such costs is included in interest expense and was approximately $60,000 and $60,000 for the three months ended March 31, 2021 and 2020, respectively.

Income Taxes

Income Taxes: The financial statements have been prepared on the basis that NERA and its subsidiaries are entitled to tax treatment as partnerships. Accordingly, no provision for income taxes have been recorded (See Note 13).

Cash Equivalents

Cash Equivalents: The Partnership considers cash equivalents to be all highly liquid instruments purchased with a maturity of three months or less.

Segment Reporting

Segment Reporting: Operating segments are revenue producing components of the Partnership for which separate financial information is produced internally for management. Under the definition, NERA operated, for all periods presented, as one segment.

Comprehensive Income

Comprehensive Income: Comprehensive income is defined as changes in partners’ equity, exclusive of transactions with owners (such as capital contributions and dividends). NERA did not have any comprehensive income items in 2020 or 2019 other than net income as reported.

Income (Loss) Per Depositary Receipt

Income (Loss) Per Depositary Receipt: Effective January 3, 2012, the Partnership authorized a 3-for-1 forward split of its Depositary Receipts listed on the NYSE Amex and a concurrent adjustment of the exchange ratio of Depositary Receipts for Class A Units of the Partnership from 10-to-1 to 30-to-1, such that each Depositary Receipt represents one-thirtieth (1/30) of a Class A Unit of the Partnership. All references to Depositary Receipts in the report are reflective of the 3- for-1 forward split.

Income Per Unit

Income Per Unit: Net income per unit has been calculated based upon the weighted average number of units outstanding during each period presented. The Partnership has no dilutive units and, therefore, basic net income is the same as diluted net income per unit (see Note 7: Partner’s Capital).

Concentration of Credit Risks and Financial Instruments

Concentration of Credit Risks and Financial Instruments: The Partnership’s properties are located in New England, and the Partnership is subject to the general economic risks related thereto. No single tenant accounted for more

than 5% of the Partnership’s revenues in 2021 or 2020. The Partnership makes its temporary cash investments with high-credit quality financial institutions. At March 31, 2021, substantially all of the Partnership’s cash and cash equivalents were held in interest-bearing accounts at financial institutions, earning interest at rates from 0.01% to 0.03%. At March 31, 2021 and December 31, 2020, respectively approximately $21,116,000, and $18,830,000 of cash and cash equivalents, and security deposits included in prepaid expenses and other assets exceeded federally insured amounts.

Advertising Expense

Advertising Expense: Advertising is expensed as incurred. Advertising expense was $89,350 and $69,056 for the three months ended March 31, 2021 and 2020, respectively.

Rental Property Held for Sale: When assets are identified by management as held for sale, the Partnership discontinues depreciating the assets and estimates the sales price, net of selling costs, of such assets. The Partnership generally considers assets to be held for sale when the transaction has received appropriate corporate authority, and there are no significant contingencies relating to the sale. If, in management’s opinion, the estimated net sales price, net of selling costs, of the assets which have been identified as held for sale is less than the carrying value of the assets, a valuation allowance is established.

Rental Property Held for Sale

Rental Property Held for Sale: When assets are identified by management as held for sale, the Partnership discontinues depreciating the assets and estimates the sales price, net of selling costs, of such assets. The Partnership generally considers assets to be held for sale when the transaction has received appropriate corporate authority, and there are no significant contingencies relating to the sale. If, in management’s opinion, the estimated net sales price, net of selling costs, of the assets which have been identified as held for sale is less than the carrying value of the assets, a valuation allowance is established.

Interest Capitalized

Interest Capitalized: The Partnership follows the policy of capitalizing interest as a component of the cost of rental property when the time of construction exceeds one year. During the three months ended March 31, 2021 and 2020 there was no capitalized interest.

Extinguishment of Debt

Extinguishment of Debt: When existing mortgages are refinanced with the same lender and it is determined that the refinancing is substantially different, then they are recorded as an extinguishment of debt. However if it is determined that the refinancing is substantially the same, then they are recorded as an exchange of debt. All refinancing qualify as extinguishment of debt.

Reclassifications

Reclassifications: Certain reclassifications have been made to prior period amounts in order to conform to current period presentation.

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RENTAL PROPERTIES (Tables)

3 Months Ended

Mar. 31, 2021

RENTAL PROPERTIES

Schedule of rental properties

	March 31, 2021		December 31, 2020		Useful Life
Land, improvements and parking lots	$	86,867,393	$	86,867,393	15	-	40	years
Buildings and improvements		253,483,082		253,322,865	15	-	40	years
Kitchen cabinets		17,234,223		17,157,121	5	-	10	years
Carpets		11,304,573		11,146,634	5	-	10	years
Air conditioning		501,697		501,697	5	-	10	years
Laundry equipment		608,271		608,271	5	-	7	years
Elevators		1,885,265		1,885,265	20	-	40	years
Swimming pools		1,092,194		1,092,194	10	-	30	years
Equipment		17,750,185		17,596,043	5	-	30	years
Motor vehicles		211,660		211,660			5	years
Fences		46,871		46,872	5	-	15	years
Furniture and fixtures		7,781,841		7,697,137	5	-	7	years
Smoke alarms		496,641		496,641	5	-	7	years
Total fixed assets		399,263,896		398,629,793
Less: Accumulated depreciation		(137,902,138)		(134,019,906)
	$	261,361,758	$	264,609,887

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MORTGAGE NOTES PAYABLE (Tables)

3 Months Ended

Mar. 31, 2021

MORTGAGE NOTES PAYABLE

Schedule of approximate annual maturities

Approximate annual maturities at March 31, 2021 are as follows:

2022—current maturities	$	2,620,000
2023		67,012,000
2024		38,298,000
2025		11,093,000
2026		21,647,000
Thereafter		143,567,000
		284,237,000
Less: unamortized deferred financing costs		(1,285,000)
	$	282,952,000

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PARTNERS' CAPITAL (Tables)

3 Months Ended

Mar. 31, 2021

PARTNERS' CAPITAL

Schedule of information per depositary receipt

	Three Months Ended
	March 31,
	2021		2020
Net Income (Loss) per Depositary Receipt	$	(0.08)	$	0.37
Distributions per Depositary Receipt	$	0.32	$	0.32

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TREASURY UNITS (Tables)

3 Months Ended

Mar. 31, 2021

TREASURY UNITS

Schedule of treasury units

Treasury Units at March 31, 2021 are as follows:

Class A	46,775
Class B	11,109
General Partnership	585
	58,469

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RENTAL INCOME (Tables)

3 Months Ended

Mar. 31, 2021

RENTAL INCOME

Schedule of minimum future annual rental income on non-cancellable operating leases

	Commercial
	Property Leases
2022	$	2,137,000
2023		1,527,000
2024		1,152,000
2025		503,000
2026		284,000
Thereafter		490,000
	$	6,093,000

Schedule of information for commercial leases

	Annual base				Percentage of
	rent for		Total square feet	Total number of	annual base rent for
Through March 31,	expiring leases		for expiring leases	leases expiring	expiring leases
2022	$	1,065,898	59,415	20	39	%
2023		221,861	6,392	6	8	%
2024		672,213	19,432	9	25	%
2025		395,806	14,868	8	15	%
2026		204,708	3,473	4	7	%
2027		23,340	724	1	1	%
2028		—	—	—	—	%
2029		—	—	—	—	%
2030		142,450	3,850	1	5	%
2031		—	—	—	—	%
Totals	$	2,726,276	108,154	49	100	%

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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2021

FAIR VALUE MEASUREMENTS

Schedule of carrying amounts and estimated fair value of debt

		Carrying Amount		Estimated Fair Value
Mortgage Notes Payable
Partnership Properties
At March 31, 2021	*	$	282,951,918	$	296,779,258
At December 31, 2020	*	$	283,444,533	$	303,993,142
Investment Properties
At March 31, 2021	*	$	166,282,719	$	174,613,534
At December 31, 2020	*	$	166,308,029	$	179,647,759

* Net of unamortized deferred financing costs

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Tables)

3 Months Ended

Mar. 31, 2021

Schedule of future annual mortgage maturities

Future annual mortgage maturities at March 31, 2021 are as follows:

	Hamilton		345		Hamilton		Hamilton on		Dexter
Period End	Essex 81		Franklin		Minuteman		Main Apts		Park		Total
3//31/2022	$	—	$	215,702	$	—	$	—	$	—	$	215,702
3/31/2023		—		224,199		—		—		—		224,199
3/31/2024		—		233,032		—		—		—		233,032
3/31/2025		—		242,212		—		16,900,000		—		17,142,212
3/31/2026		10,000,000		251,753		—		—		—		10,251,753
Thereafter		—		7,929,705		6,000,000		—		125,000,000		138,929,705
		10,000,000		9,096,603		6,000,000		16,900,000		125,000,000		166,996,603
Less: unamortized deferred financing costs		(62,051)		(48,274)		(85,586)		(54,842)		(463,131)		(713,884)
	$	9,937,949	$	9,048,329	$	5,914,414	$	16,845,158	$	124,536,869	$	166,282,719

At March 31, 2021 the weighted average interest rate on the above mortgages was 3.91%. The effective rate was 3.98% including the amortization expense of deferred financing costs.

2021

Summary of financial position and income statements relating to investment in unconsolidated joint ventures

Summary financial information March 31, 2021

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	6,583,704		$	2,590,036		$	5,289,712		$	84,003		$	4,914,411		$	14,982,149		$	80,053,070		$	114,497,085
Cash & Cash Equivalents		66,579			40,821			139,721			6,435			132,455			574,605			2,564,784			3,525,400
Rent Receivable		31,379			—			35,916			11,669			9,749			49,425			447,666			585,804
Real Estate Tax Escrow		74,083			—			54,505			—			38,883			113,702			—			281,173
Prepaid Expenses & Other Assets		274,840			75,119			85,816			191			15,187			177,044			1,400,615			2,028,812
Total Assets	$	7,030,585		$	2,705,976		$	5,605,670		$	102,298		$	5,110,685		$	15,896,925		$	84,466,135		$	120,918,274
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,937,949		$	—		$	9,048,329		$	—		$	5,914,414		$	16,845,158		$	124,536,869		$	166,282,719
Accounts Payable & Accrued Expense		66,760			4,000			106,469			3,225			75,274			172,092			722,157			1,149,977
Advance Rental Pmts & Security Deposits		102,170			—			214,146			—			136,840			424,300			2,083,729			2,961,185
Total Liabilities		10,106,879			4,000			9,368,944			3,225			6,126,528			17,441,550			127,342,755			170,393,881
Partners’ Capital		(3,076,294)			2,701,976			(3,763,274)			99,073			(1,015,843)			(1,544,625)			(42,876,620)			(49,475,607)
Total Liabilities and Capital	$	7,030,585		$	2,705,976		$	5,605,670		$	102,298		$	5,110,685		$	15,896,925		$	84,466,135		$	120,918,274
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,350,988		$	—		$	49,536		$	—		$	—		$	—			1,400,524
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,538,147)		$	—		$	(1,881,637)		$	—		$	(507,922)		$	(772,313)		$	(17,150,648)			(21,850,666)
Total Investment in Unconsolidated Joint Ventures (Net)																						$	(20,450,142)
Total units/condominiums
Apartments		48			—			40			175			42			148			409			862
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			176			42			148			409			865
Units to be retained		49			1			40			1			42			148			409			690
Units to be sold		—			—			—			175			—			—			—			175
Units sold through May 1, 2021		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—
Unsold units with deposits for future sale as of May 1, 2021		—			—			—			—			—			—			—			—

Financial information for the three months ended March 31, 2021

			Hamilton						Hamilton		Hamilton
	Hamilton		Essex		345		Hamilton		Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025		Apts		Apts		Park		Total
Revenues
Rental Income	$	230,217	$	—	$	333,093	$	24,369	$	284,524	$	816,812	$	3,069,883	$	4,758,898
Laundry and Sundry Income		3,013		—		112		—		1,276		8,777		26,152		39,330
		233,230		—		333,205		24,369		285,800		825,589		3,096,035		4,798,228
Expenses
Administrative		14,556		853		4,803		714		3,583		20,219		46,851		91,579
Depreciation and Amortization		118,942		5,074		85,345		816		84,025		269,915		924,560		1,488,677
Management Fees		5,260		—		12,412		628		11,296		32,375		65,278		127,249
Operating		29,432		—		13,521		91		34,596		124,933		298,094		500,667
Renting		32,784		—		14,328		—		360		30,760		84,955		163,187
Repairs and Maintenance		52,547		—		23,278		—		19,405		122,446		452,895		670,571
Taxes and Insurance		65,539		14,885		43,670		4,797		34,976		110,134		597,786		871,787
		319,060		20,812		197,357		7,046		188,241		710,782		2,470,419		3,913,717
Income Before Other Income		(85,830)		(20,812)		135,848		17,323		97,559		114,807		625,616		884,511
Other Income (Loss)
Interest Expense		(61,312)		—		(90,643)		—		(58,625)		(187,378)		(1,264,708)		(1,662,666)
Gain on Sale of Real Estate		—		—		—		—		—		—		—		—
		(61,312)		—		(90,643)		—		(58,625)		(187,378)		(1,264,708)		(1,662,666)
Net Income (Loss)	$	(147,142)	$	(20,812)	$	45,205	$	17,323	$	38,934	$	(72,571)	$	(639,092)	$	(778,155)
Net Income (Loss)—NERA 50%	$	(73,571)	$	(10,406)	$	22,602	$	8,662	$	19,466	$	(36,286)				(69,534)
Net Income (Loss) —NERA 40%													$	(255,636)		(255,636)
															$	(325,170)

2012

Summary of financial position and income statements relating to investment in unconsolidated joint ventures

Summary financial information at March 31, 2020

				Hamilton									Hamilton			Hamilton
	Hamilton			Essex			345			Hamilton			Minuteman			on Main			Dexter
	Essex 81			Development			Franklin			1025			Apts			Apts			Park			Total
ASSETS
Rental Properties	$	6,977,869		$	2,592,526		$	5,597,090		$	87,267		$	5,240,627		$	15,722,824		$	83,230,537		$	119,448,740
Cash & Cash Equivalents		336,900			105,620			387,085			11,568			234,919			514,145			3,510,840			5,101,077
Rent Receivable		215,143			38,463			—			—			205			12,553			27,015			293,379
Real Estate Tax Escrow		62,924			—			52,215			—			27,345			77,969			—			220,453
Prepaid Expenses & Other Assets		311,711			92,886			76,295			1,682			19,098			185,332			1,559,233			2,246,237
																							0
Total Assets	$	7,904,547		$	2,829,495		$	6,112,685		$	100,517		$	5,522,194		$	16,512,823		$	88,327,625		$	127,309,886
LIABILITIES AND PARTNERS’ CAPITAL
Mortgage Notes Payable	$	9,924,160		$	—		$	9,249,198		$	—		$	5,906,230		$	16,829,107		$	124,472,246		$	166,380,941
Accounts Payable & Accrued Expense		82,063			3,250			103,274			5,948			50,102			152,433			639,480			1,036,550
Advance Rental Pmts& Security Deposits		294,765			—			312,134			—			137,848			439,382			2,744,163			3,928,292
Total Liabilities		10,300,988			3,250			9,664,606			5,948			6,094,180			17,420,922			127,855,889			171,345,783
Partners’ Capital		(2,396,441)			2,826,245			(3,551,921)			94,569			(571,986)			(908,099)			(39,528,264)			(44,035,897)
Total Liabilities and Capital	$	7,904,547		$	2,829,495		$	6,112,685		$	100,517		$	5,522,194		$	16,512,823		$	88,327,625		$	127,309,886
Partners’ Capital %—NERA		50	%		50	%		50	%		50	%		50	%		50	%		40	%
Investment in Unconsolidated Joint Ventures	$	—		$	1,413,123		$	—		$	47,284		$	—		$	—		$	—		$	1,460,406
Distribution and Loss in Excess of investments in Unconsolidated Joint Ventures	$	(1,198,220)		$	—		$	(1,775,961)		$	—		$	(285,993)		$	(454,050)		$	(15,811,306)			(19,525,528)
Total Investment in Unconsolidated Joint Ventures (Net)																							(18,065,122)
Total units/condominiums
Apartments		48			—			40			175			42			148			409			862
Commercial		1			1			—			1			—			—			—			3
Total		49			1			40			176			42			148			409			865
Units to be retained		49			1			40			1			42			148			409			690
Units to be sold		—			—			—			175			—			—			—			175
Units sold through May1, 2020		—			—			—			175			—			—			—			175
Unsold units		—			—			—			—			—			—			—			—
Unsold units with deposits for future sale as of May 1, 2020		—			—			—			—			—			—			—			—

Financial information for three months ended March 31, 2020

										Hamilton		Hamilton
	Hamilton		Hamilton Essex		345		Hamilton			Minuteman		on Main		Dexter
	Essex 81		Development		Franklin		1025			Apts		Apts		Park		Total
Revenues
Rental Income	$	439,380	$	60,471	$	428,150	$	20,558	$	290,693	$	905,700	$	4,206,503	$	6,351,455
Laundry and Sundry Income		3,385		—		454		—		—		8,749		25,742		38,330
		442,765		60,471		428,604		20,558		290,693		914,449		4,232,245		6,389,785
Expenses
Administrative		6,188		650		7,757		10,125		2,481		15,848		47,052		90,101
Depreciation and Amortization		121,642		5,074		84,494		816		86,826		261,047		916,987		1,476,886
Management Fees		17,736		2,203		16,466		822		11,532		34,984		87,082		170,825
Operating		25,524		—		12,988		45		22,226		93,845		310,381		465,009
Renting		2,775		—		8,753		—		3,000		7,720		16,804		39,052
Repairs and Maintenance		27,009		—		21,578		—		10,895		134,837		287,012		481,331
Taxes and Insurance		64,677		15,218		39,906		4,189		36,051		122,762		576,221		859,024
		265,551		23,145		191,942		15,997		173,011		671,043		2,241,539		3,582,228
Income Before Other Income		177,214		37,326		236,662		4,561		117,682		243,406		1,990,706		2,807,557
Other Income (Loss)
Interest Expense		(100,733)		—		(93,426)		—		(59,259)		(192,382)		(1,268,104)		(1,713,904)
Interest Income		—		—		—		—		—		—		—		—
		(100,733)		—		(93,426)		—		(59,259)		(192,382)		(1,268,104)		(1,713,904)
Net Income (Loss)	$	76,481	$	37,326	$	143,236	$	4,561	$	58,423	$	51,024	$	722,602	$	1,093,653
Net Income (Loss)—NERA 50%	$	38,241	$	18,663	$	71,618	$	2,281	$	29,211	$	25,512				185,525
Net Income (Loss)—NERA 40%													$	289,042		289,042
															$	474,567

XML

SIGNIFICANT ACCOUNTING POLICIES (Business) (Details)	Mar. 31, 2021 ft² item property	Mar. 31, 2020 property
Residential and mixed-use properties
Line of Business
Number of Real Estate Properties	25
Number of units	2,892
Condominium
Line of Business
Number of units	19
Wholly owned properties
Line of Business
Number of Real Estate Properties	29
Wholly owned properties | Residential buildings
Line of Business
Number of Real Estate Properties	21
Number of units	2,892
Wholly owned properties | Mixed use residential, retail and office buildings
Line of Business
Number of Real Estate Properties	4
Wholly owned properties | Commercial
Line of Business
Number of Real Estate Properties	3
Area of property (in square feet) | ft²	108,043
Wholly owned properties | Condominium
Line of Business
Number of Real Estate Properties	1
Number of units	19
Partially owned properties | Residential and mixed-use properties
Line of Business
Number of Real Estate Properties	7
Number of units	688
Area of property (in square feet) | ft²	12,500
Partially owned properties | Residential and mixed-use properties | Minimum
Line of Business
Ownership interest (as a percent)	40.00%
Partially owned properties | Residential and mixed-use properties | Maximum
Line of Business
Ownership interest (as a percent)	50.00%
Partially owned properties | Car parking lot
Line of Business
Capacity of real estate property (in cars per lot)	50
Investment Properties
Line of Business
Number of units | property	865	865
Investment Properties | Minimum
Line of Business
Ownership interest (as a percent)	40.00%
Investment Properties | Maximum
Line of Business
Ownership interest (as a percent)	50.00%
Investment Properties | Residential buildings
Line of Business
Number of units | property	862	862
Investment Properties | Commercial
Line of Business
Number of units | property	3	3
Investment Properties | Partially owned properties | Residential and mixed-use properties
Line of Business
Number of units | property	688

XML

SIGNIFICANT ACCOUNTING POLICIES (Details)		3 Months Ended		6 Months Ended
	Jan. 03, 2012	Mar. 31, 2021 USD ($) item shares	Mar. 31, 2020 USD ($)	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Dec. 31, 2020 USD ($)	Aug. 20, 2007
Principles of Consolidation
Value at which partnership investments discontinue use of equity method		$ 0
Amount of legal obligations related to investments no longer classified as equity method		$ 0
Revenue Recognition
Period for which arrears are charged against income		60 days
Deferred Financing Costs
Amortization of deferred financing costs		$ 60,000	$ 60,000
Income Taxes
Provision for income taxes		$ 0
Segment Reporting
Number of segments | item		1
Income Per Unit
Dilutive units | shares		0
Concentration of Credit Risks and Financial Instruments
Single tenants		5
Federally uninsured amounts of cash and cash equivalents, and security deposits included in prepaid expenses and other assets		$ 21,116,000				$ 18,830,000
Advertising Expense
Advertising expense		$ 89,350	$ 69,056
Interest Capitalized
Capitalized interest				$ 0	$ 0
Minimum
Interest Capitalized
Criteria of capitalization of interest on property based on specified period of construction		1 year
Minimum | Cash and cash equivalents
Concentration of Credit Risks and Financial Instruments
Interest rate on interest bearing accounts (as a percent)		0.0001%
Maximum | Cash and cash equivalents
Concentration of Credit Risks and Financial Instruments
Interest rate on interest bearing accounts (as a percent)		0.0003%
Less Than Wholly Owned Subsidiaries [Member] | Minimum
Principles of Consolidation
Ownership interest in each subsidiary (as a percent)		99.67%
Less Than Wholly Owned Subsidiaries [Member] | Maximum
Principles of Consolidation
Ownership interest in each subsidiary (as a percent)		100.00%
Investment Properties
Principles of Consolidation
Number of limited liability companies/partnerships | item		7
Investment Properties | Minimum
Principles of Consolidation
Percentage of ownership interest		40.00%
Investment Properties | Maximum
Principles of Consolidation
Percentage of ownership interest		50.00%
Class A
Income (Loss) Per Depositary Receipt
Forward split of depositary receipts	3
Exchange ratio of depositary receipts for partnership units before adjustment	10
Exchange ratio of depositary receipts for partnership units after adjustment	30
Number of units in each depository receipt	0.03333						0.1

XML

RENTAL PROPERTIES (Details)	3 Months Ended
	Mar. 31, 2021 USD ($) item property	Dec. 31, 2020 USD ($)	Mar. 31, 2020 property
Rental properties
Total fixed assets	$ 399,263,896	$ 398,629,793
Less: Accumulated depreciation	(137,902,138)	(134,019,906)
Total fixed assets, net	261,361,758	264,609,887
Land, improvements and parking lots
Rental properties
Total fixed assets	$ 86,867,393	86,867,393
Land, improvements and parking lots | Minimum
Rental properties
Useful Life	15 years
Land, improvements and parking lots | Maximum
Rental properties
Useful Life	40 years
Buildings and improvements
Rental properties
Total fixed assets	$ 253,483,082	253,322,865
Buildings and improvements | Minimum
Rental properties
Useful Life	15 years
Buildings and improvements | Maximum
Rental properties
Useful Life	40 years
Kitchen cabinets
Rental properties
Total fixed assets	$ 17,234,223	17,157,121
Kitchen cabinets | Minimum
Rental properties
Useful Life	5 years
Kitchen cabinets | Maximum
Rental properties
Useful Life	10 years
Carpets
Rental properties
Total fixed assets	$ 11,304,573	11,146,634
Carpets | Minimum
Rental properties
Useful Life	5 years
Carpets | Maximum
Rental properties
Useful Life	10 years
Air conditioning
Rental properties
Total fixed assets	$ 501,697	501,697
Air conditioning | Minimum
Rental properties
Useful Life	5 years
Air conditioning | Maximum
Rental properties
Useful Life	10 years
Laundry equipment
Rental properties
Total fixed assets	$ 608,271	608,271
Laundry equipment | Minimum
Rental properties
Useful Life	5 years
Laundry equipment | Maximum
Rental properties
Useful Life	7 years
Elevators
Rental properties
Total fixed assets	$ 1,885,265	1,885,265
Elevators | Minimum
Rental properties
Useful Life	20 years
Elevators | Maximum
Rental properties
Useful Life	40 years
Swimming pools
Rental properties
Total fixed assets	$ 1,092,194	1,092,194
Swimming pools | Minimum
Rental properties
Useful Life	10 years
Swimming pools | Maximum
Rental properties
Useful Life	30 years
Equipment
Rental properties
Total fixed assets	$ 17,750,185	17,596,043
Equipment | Minimum
Rental properties
Useful Life	5 years
Equipment | Maximum
Rental properties
Useful Life	30 years
Motor vehicles
Rental properties
Total fixed assets	$ 211,660	211,660
Motor vehicles | Maximum
Rental properties
Useful Life	5 years
Fences
Rental properties
Total fixed assets	$ 46,871	46,872
Fences | Minimum
Rental properties
Useful Life	5 years
Fences | Maximum
Rental properties
Useful Life	15 years
Furniture and fixtures
Rental properties
Total fixed assets	$ 7,781,841	7,697,137
Furniture and fixtures | Minimum
Rental properties
Useful Life	5 years
Furniture and fixtures | Maximum
Rental properties
Useful Life	7 years
Smoke alarms
Rental properties
Total fixed assets	$ 496,641	$ 496,641
Smoke alarms | Minimum
Rental properties
Useful Life	5 years
Smoke alarms | Maximum
Rental properties
Useful Life	7 years
Wholly owned properties
RENTAL PROPERTIES
Number of properties | item	29
Investment Properties
RENTAL PROPERTIES
Number of units | property	865		865
Investment Properties | Minimum
RENTAL PROPERTIES
Ownership interest (as a percent)	40.00%
Investment Properties | Maximum
RENTAL PROPERTIES
Ownership interest (as a percent)	50.00%
Residential and mixed-use properties
RENTAL PROPERTIES
Number of units | item	2,892
Number of properties | item	25
Residential and mixed-use properties | Partially owned properties
RENTAL PROPERTIES
Number of units | item	688
Number of properties | item	7
Residential and mixed-use properties | Partially owned properties | Minimum
RENTAL PROPERTIES
Ownership interest (as a percent)	40.00%
Residential and mixed-use properties | Partially owned properties | Maximum
RENTAL PROPERTIES
Ownership interest (as a percent)	50.00%
Residential and mixed-use properties | Investment Properties | Partially owned properties
RENTAL PROPERTIES
Number of units | property	688
Condominium
RENTAL PROPERTIES
Number of units | item	19
Condominium | Wholly owned properties
RENTAL PROPERTIES
Number of units | item	19
Number of properties | item	1

XML

RENTAL PROPERTIES (Captain Parker) (Details)	Mar. 31, 2021 USD ($)
RENTAL PROPERTIES
Loan balance	$ 284,237,000

XML

RELATED PARTY TRANSACTIONS (Details)	3 Months Ended		6 Months Ended		24 Months Ended
	Mar. 31, 2021 USD ($) item	Mar. 31, 2020 USD ($)	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Dec. 31, 2019 USD ($)
RELATED PARTY TRANSACTIONS
Management fee as percentage of gross receipts rental revenue	4.00%
Management fee as a percentage of gross receipts rental revenue of Linewt, LLC	3.00%
Management fees of related party	$ 605,000	$ 649,000
Management fee	605,391	648,993
Repairs and maintenance	1,970,087	2,086,218
Administrative expense	652,186	584,658
Employer contributions in 401K plan	$ 11,000
Number of limited partnerships and limited liability companies in which the entity has invested | item	7
Interest expense	$ 3,364,170	3,450,325
Investment Properties
RELATED PARTY TRANSACTIONS
Management fee	127,249	170,825
Repairs and maintenance	670,571	481,331
Administrative expense	$ 91,579	90,101
Number of limited partnerships and limited liability companies in which the entity has invested | item	7
Interest expense	$ 1,662,666	1,713,904
Investment Properties | Minimum
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	40.00%
Investment Properties | Maximum
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	50.00%
Hamilton Company/Management Company
RELATED PARTY TRANSACTIONS
Number of employees having ownership interest in the investment properties | item	5
Dexter Park
RELATED PARTY TRANSACTIONS
Management fee as percentage of gross receipts rental revenue	2.00%
Harold Brown | Minimum
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	47.60%
Harold Brown | Maximum
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	59.00%
General Partner or Management Company [Member]
RELATED PARTY TRANSACTIONS
Repairs and maintenance	$ 46,000
Administrative expense	55,000
Expenses for construction, architectural services and supervision of capital projects	155,000
Costs related to professional services	256,000	346,000
Management Company [Member]
RELATED PARTY TRANSACTIONS
Reimbursement to related party for payroll transfers	843,000	822,000
Employer contributions in 401K plan	$ 11,000	$ 11,000
Number of accounting staff of related party providing bookkeeping and accounting functions | item	14
Fees for accounting and bookkeeping services			$ 31,250	$ 31,250
Number of employees having ownership interest in the investment properties | item	5
Fees for accounting and bookkeeping services per year					$ 125,000
Partially owned properties
RELATED PARTY TRANSACTIONS
Management fee as percentage of gross receipts rental revenue	4.00%
Management fee	$ 127,000
Repairs and maintenance	6,000
Administrative expense	8,000
Construction, architectural services and supervision of capital projects	1,000
Amount paid to related party	$ 142,000
Residential and mixed-use properties | Partially owned properties | Minimum
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	40.00%
Residential and mixed-use properties | Partially owned properties | Maximum
RELATED PARTY TRANSACTIONS
Ownership interest (as a percent)	50.00%

XML

PREPAID EXPENSES and OTHER ASSETS (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
OTHER ASSETS
Security deposits	$ 2,790,000	$ 2,830,000
Escrow deposits to fund future capital improvements	1,225,000	1,073,000
Deposits and escrows held for acquisitions	546,426	534,941
Intangible assets, net of accumulated amortization	45,000	51,000
Accumulated amortization on intangible assets	1,373,000	1,367,000
Financing fees, net	$ 9,000	$ 42,000

XML

MORTGAGE NOTES PAYABLE (Mortgages Payable) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Dec. 31, 2020
MORTGAGE NOTES PAYABLE
Effective interest rate (as a percent)	3.98%
Financing fees, net	$ 9,000	$ 42,000
Accumulated amortization on financing and leasing fees	16,000	6,000
Annual maturities of mortgage debt
2021-current maturities	2,620,000
2022	67,012,000
2023	38,298,000
2024	11,093,000
2025	21,647,000
Thereafter	143,567,000
Total	284,237,000
Less: unamortized deferred financing costs	(1,285,000)
Secured Debt	282,951,918	283,444,533
Mortgages payable
MORTGAGE NOTES PAYABLE
Amount of monthly installments including principal	$ 1,257,000
Weighted average interest rate (as a percent)	4.43%
Effective interest rate (as a percent)	4.51%
Financing fees, net	$ 1,285,000	1,345,000
Accumulated amortization on financing and leasing fees	$ 1,624,000	$ 1,564,000
Mortgages payable | Minimum
MORTGAGE NOTES PAYABLE
Interest rate (as a percent)	3.53%
Mortgages payable | Maximum
MORTGAGE NOTES PAYABLE
Interest rate (as a percent)	5.66%

XML

MORTGAGE NOTES PAYABLE (Mortgage by property) (Details)		3 Months Ended
	Mar. 31, 2020 USD ($) property	Mar. 31, 2020 USD ($) property	Mar. 31, 2021 USD ($) property	Aug. 31, 2014	Dec. 31, 2005	Mar. 07, 2005 item
MORTGAGE NOTES PAYABLE
Repayment of loan		$ 1,000,000
Loan balance			$ 284,237,000
Hamilton Essex 81
MORTGAGE NOTES PAYABLE
Number of units	49	49	49			48
Loan balance			$ 10,000,000
Brookside Associates LLC Residential Apartments Woburn, Massachusetts
MORTGAGE NOTES PAYABLE
Loan amount	$ 6,175,000	$ 6,175,000
Repayment of loan	2,390,000
Closing Costs	$ 136,000
Interest rate (as a percent)	3.53%	3.53%
Mortgages payable | Hamilton on Main Apartments, LLC
MORTGAGE NOTES PAYABLE
Interest rate (as a percent)				4.34%	5.18%
Amortization period of debt					30 years
Debt Instrument, Amortization Term					30 years
Mortgages payable | Minimum
MORTGAGE NOTES PAYABLE
Interest rate (as a percent)			3.53%
Mortgages payable | Maximum
MORTGAGE NOTES PAYABLE
Interest rate (as a percent)			5.66%

XML

MORTGAGE NOTES PAYABLE (Line of Credit) (Details)					1 Months Ended	3 Months Ended		12 Months Ended
	Jan. 22, 2020 USD ($)	Dec. 20, 2019 USD ($)	Sep. 30, 2015	Jul. 31, 2014 USD ($) item	Aug. 31, 2014	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2005	Oct. 31, 2020 USD ($)	Dec. 19, 2019 USD ($)	Aug. 31, 2017 USD ($)	Mar. 07, 2005 item
Line of Credit
Interest expense						$ 3,364,170	$ 3,450,325
Line Of Credit Facility Unused Capacity Commitment Fee						3,000
Hamilton Essex 81
Line of Credit
Interest expense						61,312	$ 100,733
Number of properties in which borrowing amount collateralized | item												1
Minimum
Line of Credit
Tangible net worth						$ 150,000,000
Operating income to indebtedness ratio						9.50%
Debt service coverage ratio						1.6
Maximum
Line of Credit
Leverage ratio						65.00%
Aggregate increase in indebtedness						$ 15,000,000
Mortgages payable | Hamilton Essex 81
Line of Credit
Term of debt			10 years
Mortgages payable | Hamilton on Main Apartments, LLC
Line of Credit
Term of debt					10 years			10 years
Mortgages payable | LIBOR | Hamilton Essex 81
Line of Credit
Variable interest rate spread			2.18%
Line of Credit
Line of Credit
Maximum borrowings				$ 25,000,000
Term of debt				3 years
Loan amount										$ 20,000,000
Payment on line of credit	$ 1,000,000	$ 2,000,000
Amount of refinancing costs									$ 37,500		$ 128,000
Credit line balance						$ 17,000,000
Number of properties in which borrowing amount collateralized | item				23
Line of Credit | Federal Funds Rate
Line of Credit
Variable interest rate spread				0.50%
Line of Credit | LIBOR
Line of Credit
Additional applicable margin rate				2.50%
Variable interest rate spread				1.00%
Line of Credit | Minimum
Line of Credit
Pledged interest ownership percentage						49.00%
Commitment fee for unused amount (as a percent)				0.15%
Line of Credit | Maximum
Line of Credit
Pledged interest ownership percentage						100.00%
Commitment fee for unused amount (as a percent)				0.20%

XML

ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS (Details)	3 Months Ended
	Mar. 31, 2021 USD ($)
ADVANCE RENTAL PAYMENTS AND SECURITY DEPOSITS
Period for advance rental payment	1 month
Amount received for prepaid rent	$ 1,999,000
Security deposits	$ 2,790,000

XML

PARTNERS' CAPITAL (Details)		1 Months Ended	3 Months Ended
	Jan. 03, 2012	Jan. 31, 2021 $ / item	Mar. 31, 2021 item $ / item	Mar. 31, 2020 $ / item	Dec. 31, 2020 $ / item	Sep. 30, 2020 $ / item	Jun. 30, 2020 $ / item	Aug. 20, 2007
Depositary receipts exchange ratio for Class A units | item			30
Quarterly distribution per unit approved (in dollars per unit)		9.60
Quarterly distributions per depositary receipt (in dollars per receipt)				9.60	9.60	9.60	9.60
Quarterly distribution per unit (in dollars per unit)		0.32			0.32
Earnings per depository receipt
Net Income per Depositary Receipt (in dollars per receipt)			(0.08)	0.37
Distributions per Depositary Receipt (in dollars per share)			0.32	0.32
Limited Partner
Number of classes of partners | item			2
General Partnership
Number of classes of partners | item			1
Fixed distribution percentage of unit holders			1.00%
Class A
Fixed distribution percentage of unit holders			80.00%
Forward split of depositary receipts	3
Exchange ratio of depositary receipts for partnership units before adjustment	10
Exchange ratio of depositary receipts for partnership units after adjustment	30
Number of units in each depository receipt	0.03333							0.1
Class B
Fixed distribution percentage of unit holders			19.00%

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TREASURY UNITS (Details)				1 Months Ended	3 Months Ended				6 Months Ended	132 Months Ended	142 Months Ended
	Mar. 10, 2015 shares	Aug. 31, 2007 $ / item shares	Aug. 20, 2007 shares	Sep. 30, 2007 $ / item shares	Mar. 31, 2021 shares	Mar. 31, 2020 USD ($) shares	Mar. 31, 2019 $ / item shares	Dec. 31, 2007 $ / item shares	Jun. 30, 2019 $ / item shares	Dec. 31, 2018 $ / item shares	Jun. 30, 2019 USD ($) $ / item	Mar. 06, 2008 shares
Treasury units					58,469
Period for repurchase of depository receipts	5 years		12 months
Depository receipts authorized to be repurchased	2,000,000		300,000									1,500,000
Number of depository receipts repurchased		1,428,437		1,428,437				1,428,437	1,428,437	1,428,437
Repurchase price of depository receipts (in dollars per receipt) | $ / item											28.43
Units required to be repurchased (in shares)						219
Total cost of repurchase | $						$ 389,947					$ 44,718,000
General Partnership
Treasury units					585
Fixed distribution percentage of unit holders					1.00%
Number of depository receipts repurchased		188		188			188			188
Total cost of repurchase | $						$ 311,952
Treasury Units
Units required to be repurchased (in shares)						219
Class A
Treasury units					46,775
Fixed distribution percentage of unit holders					80.00%
Repurchase price of units (in dollars per unit) | $ / item		852.90		852.90			852.90			852.90
Total cost of repurchase | $						$ 74,095
Class B
Treasury units					11,109
Fixed distribution percentage of unit holders					19.00%
Number of depository receipts repurchased		3,572		3,572			3,572			3,572
Total cost of repurchase | $						$ 3,900
Class B | General Partnership
Repurchase price of units (in dollars per unit) | $ / item		1,033.00		1,033.00				1,033.00	1,033.00	1,033.00

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RENTAL INCOME (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
RENTAL INCOME
Percentage of rental income related to residential apartments and condominium units with leases of one year or less	94.00%
Maximum period of non-cancelable operating lease	1 year
Percentage of rental income related to commercial properties	6.00%
Minimum future rental income
2021	$ 2,137,000
2022	1,527,000
2023	1,152,000
2024	503,000
2025	284,000
Thereafter	490,000
Commercial Property Leases	6,093,000
Aggregate contingent rentals from continuing operations	$ 150,000	$ 121,000

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RENTAL INCOME (Concentration) (Details)	3 Months Ended
	Mar. 31, 2021
Commercial rental income | Major tenant | Staples and Trader Joes
Concentration Risk
Concentration risk percentage	25.00%

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RENTAL INCOME (Commercial Leases) (Details)	3 Months Ended
	Mar. 31, 2021 USD ($) ft² item
RENTAL INCOME
Annual base rent for expiring leases | $	$ 2,726,276
Total square feet for expiring leases | ft²	108,154
Total number of leases expiring | item	49
Percentage of annual base rent for expiring leases	100.00%
2021
RENTAL INCOME
Annual base rent for expiring leases | $	$ 1,065,898
Total square feet for expiring leases | ft²	59,415
Total number of leases expiring | item	20
Percentage of annual base rent for expiring leases	39.00%
2022
RENTAL INCOME
Annual base rent for expiring leases | $	$ 221,861
Total square feet for expiring leases | ft²	6,392
Total number of leases expiring | item	6
Percentage of annual base rent for expiring leases	8.00%
2023
RENTAL INCOME
Annual base rent for expiring leases | $	$ 672,213
Total square feet for expiring leases | ft²	19,432
Total number of leases expiring | item	9
Percentage of annual base rent for expiring leases	25.00%
2024
RENTAL INCOME
Annual base rent for expiring leases | $	$ 395,806
Total square feet for expiring leases | ft²	14,868
Total number of leases expiring | item	8
Percentage of annual base rent for expiring leases	15.00%
2025
RENTAL INCOME
Annual base rent for expiring leases | $	$ 204,708
Total square feet for expiring leases | ft²	3,473
Total number of leases expiring | item	4
Percentage of annual base rent for expiring leases	7.00%
2026
RENTAL INCOME
Annual base rent for expiring leases | $	$ 23,340
Total square feet for expiring leases | ft²	724
Total number of leases expiring | item	1
Percentage of annual base rent for expiring leases	1.00%
2029
RENTAL INCOME
Annual base rent for expiring leases | $	$ 142,450
Total square feet for expiring leases | ft²	3,850
Total number of leases expiring | item	1
Percentage of annual base rent for expiring leases	5.00%

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RENTAL INCOME (Rent Receivable) (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
RENTAL INCOME
Allowance for doubtful rent receivable	$ 1,271,000	$ 1,454,000
Recognizing rental income from non-cancelable commercial leases with future rental increases on a straight-line basis	84,000
Deferred rental concession	$ 427,000

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CASH FLOW INFORMATION (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
CASH FLOW INFORMATION
Cash paid for interest	$ 3,306,000	$ 3,229,000
Cash paid for state income taxes	56,000	$ 76,000
Non-cash financing activities in connection with acquisition	$ 2,393,000

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FAIR VALUE MEASUREMENTS (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
Mortgage Notes Payable
Carrying Amount	$ 282,951,918	$ 283,444,533
Estimated Fair Value	296,779,258	303,993,142
Partially owned properties
Mortgage Notes Payable
Carrying Amount	166,282,719	166,308,029
Estimated Fair Value	$ 174,613,534	$ 179,647,759

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TAXABLE INCOME AND TAX BASIS (Details)	12 Months Ended
	Dec. 31, 2020 USD ($)
TAXABLE INCOME AND TAX BASIS
Taxable net income	$ 8,578,000
Excess amount of statement income over taxable income	7,153,000
Excess amount of cumulative statement basis over cumulative taxable basis	7,332,000
Excess amount of statement income from joint venture investments over taxable income	$ 1,476,000

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Details)	3 Months Ended
	Mar. 31, 2021 item
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of limited partnerships and limited liability companies in which the entity has invested	7
Investment Properties
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of limited partnerships and limited liability companies in which the entity has invested	7
Number of partnerships investing in commercial property	3
Hamilton Company/Management Company
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of employees having ownership interest in the investment properties	5
Management Company [Member]
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of employees having ownership interest in the investment properties	5
Minimum | Investment Properties
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)	40.00%
Minimum | Limited Partnerships
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)	40.00%
Minimum | Harold Brown
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)	47.60%
Maximum | Investment Properties
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)	50.00%
Maximum | Limited Partnerships
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)	50.00%
Maximum | Harold Brown
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)	59.00%

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Dexter) (Details)			3 Months Ended
	May 31, 2018 USD ($)	Oct. 28, 2009 USD ($) item	Mar. 31, 2021 USD ($) property	Mar. 31, 2020 USD ($) property	Sep. 30, 2018 USD ($)	Dec. 31, 2020 USD ($)
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture			$ 1,400,524			$ 1,410,769
Outstanding amount of mortgage			282,951,918			$ 283,444,533
Distribution to the Partnership			$ 1,168,860	$ 1,169,173
Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture		$ 15,925,000
Ownership interest (as a percent)		40.00%		40.00%
Number of units		409	409	409
Purchase price of investments		$ 129,500,000
Outstanding amount of mortgage	$ 82,000,000		$ 124,536,869	$ 124,472,246
Distribution to the Partnership	41,200,000
Dexter Park | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Loan amount		$ 89,914,000
Interest rate (as a percent)		5.57%
Period for which the entity is required to make interest only payments		2 years
Amortization period of debt		30 years
John Hancock | Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Loan amount	$ 125,000,000
Interest rate (as a percent)	3.99%
Defeasance cost					$ 3,830,000
Defeasance cost (as a percent)					40.00%
General Partnership
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Distribution to the Partnership			$ 11,689	$ 11,692
General Partnership | Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Distribution to the Partnership	$ 16,500,000
General Partnership | John Hancock | Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Defeasance cost					$ 1,532,000
Residential buildings | Dexter Park
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property			409	409

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Bay Apts and Sales) (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture	$ 1,400,524	$ 1,410,769
Outstanding amount of mortgage	$ 282,951,918	$ 283,444,533
Mortgages payable | Minimum
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Interest rate (as a percent)	3.53%
Mortgages payable | Maximum
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Interest rate (as a percent)	5.66%

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Essex) (Details)					3 Months Ended
	Oct. 12, 2016 USD ($)	Sep. 30, 2015 USD ($)	Sep. 28, 2015 USD ($)	Mar. 07, 2005 USD ($) item	Mar. 31, 2021 USD ($) property	Mar. 31, 2020 USD ($) property	Dec. 31, 2020 USD ($)
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture					$ 1,400,524		$ 1,410,769
Repayment of loan	$ 5,158,000
Distribution to the Partnership					1,168,860	$ 1,169,173
Mortgage Notes Payable					$ 282,951,918		$ 283,444,533
Hamilton Essex Development, LLC and Hamilton Essex 81, LLC
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture				$ 2,000,000
Ownership interest (as a percent)				50.00%
Purchase price of investments				$ 14,300,000
Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Ownership interest (as a percent)						50.00%
Number of units				48	49	49
Number of properties in which borrowing amount collateralized | item				1
Capital contributions			$ 100,000
Distribution to the Partnership		$ 978,193
Mortgage Notes Payable					$ 9,937,949	$ 9,924,160
Hamilton Essex Development
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture					$ 1,350,988	$ 1,413,123
Ownership interest (as a percent)						50.00%
Number of units | property					1	1
Capacity of real estate property (in cars per lot) | item				50
Capital contributions			978,193
Residential buildings | Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property					48	48
Commercial | Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property					1	1
Commercial | Hamilton Essex Development
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property					1	1
Mortgages payable | Maximum
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Interest rate (as a percent)					5.66%
Mortgages payable | Hamilton Essex Development, LLC and Hamilton Essex 81, LLC
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Borrowings				$ 10,750,000
Mortgages payable | Hamilton Essex 81
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Amount of loan proceeds utilized for pay off the existing mortgage		$ 8,040,719
Term of debt		10 years
Mortgage Notes Payable					$ 10,000,000
Borrowings		$ 10,000,000
Mortgages payable | Hamilton Essex 81 | LIBOR
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Margin over basis of interest rate (as a percent)		2.18%
Mortgages payable | Hamilton Essex Development
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Repayment of loan			$ 1,952,286

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton 1025) (Details)	Jul. 08, 2016 USD ($)	Mar. 02, 2005 USD ($) item	Mar. 31, 2021 USD ($) property	Dec. 31, 2020 USD ($)	Mar. 31, 2020 USD ($) property
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture			$ 1,400,524	$ 1,410,769
Outstanding amount of mortgage			282,951,918	$ 283,444,533
Hamilton 1025
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture		$ 2,352,000	$ 49,536		$ 47,284
Ownership interest (as a percent)		50.00%			50.00%
Number of units		176	176		176
Number of units sold | item		127
Number of units retained for long-term investment		49	(1)		(1)
Capital contributions	$ 2,359,500
Purchase price of investments		$ 23,750,000
Hamilton 1025 | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Term of debt		10 years
Interest rate (as a percent)		5.67%
Period for which the entity is required to make interest only payments		5 years
Amortization period of debt		30 years
Borrowings		$ 5,000,000
Residential buildings | Hamilton 1025
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property			175		175

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton Minuteman) (Details)			1 Months Ended			3 Months Ended
	Oct. 13, 2016 USD ($)	Oct. 12, 2016 USD ($)	Jan. 31, 2007 USD ($)	Oct. 31, 2004 USD ($)	Sep. 30, 2004 USD ($) item	Mar. 31, 2021 USD ($) property	Mar. 31, 2020 USD ($) property	Dec. 31, 2020 USD ($)
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture						$ 1,400,524		$ 1,410,769
Distribution to the Partnership						1,168,860	$ 1,169,173
Amount of mortgage paid off		$ 5,158,000
Refinancing costs						1,285,000
Outstanding amount of mortgage						$ 282,951,918		$ 283,444,533
Hamilton Minuteman
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture					$ 5,075,000
Ownership interest (as a percent)					50.00%		50.00%
Number of units					42	42	42
Purchase price of real estate properties					$ 10,100,000
Distribution to the Partnership	$ 385,000			$ 3,775,000
Mortgage amount		$ 6,000,000	$ 5,500,000	$ 8,025,000		$ 6,000,000
Term of debt		15 years	10 years	10 years
Refinancing costs	$ 123,000					85,586
Interest rate (as a percent)		3.71%	5.67%
Period for which the entity is required to make interest only payments			5 years
Amortization period of debt			30 years
Cash contribution by the entity towards loan			$ 1,250,000
Outstanding amount of mortgage						$ 5,914,414	$ 5,906,230
Residential buildings | Hamilton Minuteman
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property						42	42

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Hamilton on Main) (Details)		1 Months Ended	3 Months Ended		12 Months Ended
	Oct. 12, 2016 USD ($)	Aug. 31, 2014 USD ($)	Mar. 31, 2021 USD ($) property	Mar. 31, 2020 USD ($) property	Dec. 31, 2005 USD ($) item	Dec. 31, 2020 USD ($)	Aug. 31, 2004 USD ($) item
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture			$ 1,400,524			$ 1,410,769
Outstanding amount of mortgage			282,951,918			$ 283,444,533
Repayment of loan	$ 5,158,000
Distribution to the Partnership			$ 1,168,860	$ 1,169,173
Hamilton on Main Apts
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture							$ 8,000,000
Ownership interest (as a percent)				50.00%			50.00%
Number of units			148	148			280
Number of units sold | item							137
Outstanding amount of mortgage			$ 16,845,158	$ 16,829,107
Purchase price of investments							$ 56,000,000
Residential buildings | Hamilton on Main Apts
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property			148	148
Mortgages payable | Hamilton on Main Apartments, LLC
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Term of debt		10 years			10 years
Number of buildings | item					3
Outstanding amount of mortgage			$ 16,900,000
Interest rate (as a percent)		4.34%			5.18%
Period for which the entity is required to make interest only payments					3 years
Amortization period of debt					30 years
Debt Instrument, Loan Proceeds distributed to the Partnership		$ 850,000
Term excluding period for which interest only payments to be made					7 years
Net proceeds after funding escrow accounts and closing costs					$ 16,700,000
Repayment of loan		15,205,000
Cost associated with loan extension		161,000
Borrowings		$ 16,900,000			$ 16,825,000

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (345 Franklin) (Details)		1 Months Ended	3 Months Ended
	Oct. 12, 2016 USD ($)	Jun. 30, 2013 USD ($)	Mar. 31, 2021 USD ($) property	Mar. 31, 2020 USD ($) property	Dec. 31, 2020 USD ($)	Nov. 30, 2001 USD ($) item
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture			$ 1,400,524		$ 1,410,769
Repayment of loan	$ 5,158,000
Distribution to the Partnership			1,168,860	$ 1,169,173
Outstanding amount of mortgage			$ 282,951,918		$ 283,444,533
Maximum | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Interest rate (as a percent)			5.66%
345 Franklin | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Outstanding amount of mortgage			$ 9,097,000
345 Franklin
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Investments in joint venture						$ 1,533,000
Ownership interest (as a percent)				50.00%		50.00%
Number of units			40	40		40
Distribution to the Partnership		$ 1,610,000
Outstanding amount of mortgage			$ 9,048,329	$ 9,249,198
Legal obligation to fund operating results			$ 0
345 Franklin | Mortgages payable
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Term of debt		15 years
Interest rate (as a percent)		3.87%
Period for which the entity is required to make interest only payments		3 years
Amortization period of debt		30 years
Repayment of loan		$ 6,776,000
Borrowings		$ 10,000,000
345 Franklin | Residential buildings
INVESTMENT IN UNCONSOLIDATED JOINT VENTURES
Number of units | property			40	40

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Balance Sheet) (Details)	Mar. 31, 2021 USD ($) property	Dec. 31, 2020 USD ($)	Mar. 31, 2020 USD ($) property	Dec. 31, 2019 USD ($)	May 31, 2018 USD ($)	Oct. 28, 2009 USD ($) item	Mar. 07, 2005 item	Mar. 02, 2005 USD ($) item	Sep. 30, 2004 USD ($) item	Aug. 31, 2004 USD ($) item	Nov. 30, 2001 USD ($) item
ASSETS
Rental Properties	$ 261,361,758	$ 264,609,887
Cash and Cash Equivalents	20,822,344	18,646,972
Rents Receivable	1,224,948	1,412,074
Real Estate Tax Escrows	546,426	534,941
Prepaid Expenses and Other Assets	4,776,893	5,054,959
Total Assets	290,132,893	291,669,602
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	282,951,918	283,444,533
Accounts Payable and Accrued Expenses	4,075,165	3,888,237
Advance Rental Payments and Security Deposits	7,187,229	7,466,134
Total Liabilities	333,064,978	333,138,647
Partners' Capital	(42,932,085)	(41,469,045)	$ (38,014,124)	$ (37,823,787)
Total Liabilities and Partners' Capital	290,132,893	291,669,602
Investment in Unconsolidated Joint Ventures	1,400,524	1,410,769
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture	$ (21,850,666)	$ (21,339,743)
NERA 50%
LIABILITIES AND PARTNERS' CAPITAL
Partners' Capital % - NERA	50.00%		50.00%
NERA 40%
LIABILITIES AND PARTNERS' CAPITAL
Partners' Capital % - NERA	40.00%		40.00%
Investment Properties
ASSETS
Rental Properties	$ 114,497,085		$ 119,448,740
Cash and Cash Equivalents	3,525,400		5,101,077
Rents Receivable	585,804		293,379
Real Estate Tax Escrows	281,173		220,453
Prepaid Expenses and Other Assets	2,028,812		2,246,237
Total Assets	120,918,274		127,309,886
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	166,282,719		166,380,941
Accounts Payable and Accrued Expenses	1,149,977		1,036,550
Advance Rental Payments and Security Deposits	2,961,185		3,928,292
Total Liabilities	170,393,881		171,345,783
Partners' Capital	(49,475,607)		(44,035,897)
Total Liabilities and Partners' Capital	120,918,274		127,309,886
Investment in Unconsolidated Joint Ventures	1,400,524		1,460,406
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture	(21,850,666)		(19,525,528)
Total Investment in Unconsolidated Joint Ventures (Net)	$ (20,450,142)		$ (18,065,122)
Total units/ condominiums
Total | property	865		865
Units to be retained | property	690		690
Units to be sold | property	175		175
Total number of units sold | property	175		175
Investment Properties | Residential buildings
Total units/ condominiums
Total | property	862		862
Investment Properties | Commercial
Total units/ condominiums
Total | property	3		3
Hamilton Essex 81
ASSETS
Rental Properties	$ 6,583,704		$ 6,977,869
Cash and Cash Equivalents	66,579		336,900
Rents Receivable	31,379		215,143
Real Estate Tax Escrows	74,083		62,924
Prepaid Expenses and Other Assets	274,840		311,711
Total Assets	7,030,585		7,904,547
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	9,937,949		9,924,160
Accounts Payable and Accrued Expenses	66,760		82,063
Advance Rental Payments and Security Deposits	102,170		294,765
Total Liabilities	10,106,879		10,300,988
Partners' Capital	(3,076,294)		(2,396,441)
Total Liabilities and Partners' Capital	7,030,585		$ 7,904,547
Partners' Capital % - NERA			50.00%
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture	$ (1,538,147)		$ (1,198,220)
Total units/ condominiums
Total	49		49				48
Units to be retained | property	49		49
Hamilton Essex 81 | NERA 50%
LIABILITIES AND PARTNERS' CAPITAL
Partners' Capital % - NERA	50.00%
Hamilton Essex 81 | Residential buildings
Total units/ condominiums
Total | property	48		48
Hamilton Essex 81 | Commercial
Total units/ condominiums
Total | property	1		1
Hamilton Essex Development
ASSETS
Rental Properties	$ 2,590,036		$ 2,592,526
Cash and Cash Equivalents	40,821		105,620
Rents Receivable			38,463
Prepaid Expenses and Other Assets	75,119		92,886
Total Assets	2,705,976		2,829,495
LIABILITIES AND PARTNERS' CAPITAL
Accounts Payable and Accrued Expenses	4,000		3,250
Total Liabilities	4,000		3,250
Partners' Capital	2,701,976		2,826,245
Total Liabilities and Partners' Capital	2,705,976		$ 2,829,495
Partners' Capital % - NERA			50.00%
Investment in Unconsolidated Joint Ventures	$ 1,350,988		$ 1,413,123
Total units/ condominiums
Total | property	1		1
Units to be retained | property	1		1
Hamilton Essex Development | NERA 50%
LIABILITIES AND PARTNERS' CAPITAL
Partners' Capital % - NERA	50.00%
Hamilton Essex Development | Commercial
Total units/ condominiums
Total | property	1		1
345 Franklin
ASSETS
Rental Properties	$ 5,289,712		$ 5,597,090
Cash and Cash Equivalents	139,721		387,085
Rents Receivable	35,916
Real Estate Tax Escrows	54,505		52,215
Prepaid Expenses and Other Assets	85,816		76,295
Total Assets	5,605,670		6,112,685
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	9,048,329		9,249,198
Accounts Payable and Accrued Expenses	106,469		103,274
Advance Rental Payments and Security Deposits	214,146		312,134
Total Liabilities	9,368,944		9,664,606
Partners' Capital	(3,763,274)		(3,551,921)
Total Liabilities and Partners' Capital	5,605,670		$ 6,112,685
Partners' Capital % - NERA			50.00%								50.00%
Investment in Unconsolidated Joint Ventures											$ 1,533,000
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture	$ (1,881,637)		$ (1,775,961)
Total units/ condominiums
Total	40		40								40
Units to be retained | property	40		40
345 Franklin | NERA 50%
LIABILITIES AND PARTNERS' CAPITAL
Partners' Capital % - NERA	50.00%
345 Franklin | Residential buildings
Total units/ condominiums
Total | property	40		40
Hamilton 1025
ASSETS
Rental Properties	$ 84,003		$ 87,267
Cash and Cash Equivalents	6,435		11,568
Rents Receivable	11,669
Prepaid Expenses and Other Assets	191		1,682
Total Assets	102,298		100,517
LIABILITIES AND PARTNERS' CAPITAL
Accounts Payable and Accrued Expenses	3,225		5,948
Total Liabilities	3,225		5,948
Partners' Capital	99,073		94,569
Total Liabilities and Partners' Capital	102,298		$ 100,517
Partners' Capital % - NERA			50.00%					50.00%
Investment in Unconsolidated Joint Ventures	$ 49,536		$ 47,284					$ 2,352,000
Total units/ condominiums
Total	176		176					176
Units to be retained	1		1					(49)
Units to be sold | property	175		175
Total number of units sold | property	175		175
Hamilton 1025 | NERA 50%
LIABILITIES AND PARTNERS' CAPITAL
Partners' Capital % - NERA	50.00%
Hamilton 1025 | Residential buildings
Total units/ condominiums
Total | property	175		175
Hamilton 1025 | Commercial
Total units/ condominiums
Total | property	1		1
Hamilton Minuteman
ASSETS
Rental Properties	$ 4,914,411		$ 5,240,627
Cash and Cash Equivalents	132,455		234,919
Rents Receivable	9,749		205
Real Estate Tax Escrows	38,883		27,345
Prepaid Expenses and Other Assets	15,187		19,098
Total Assets	5,110,685		5,522,194
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	5,914,414		5,906,230
Accounts Payable and Accrued Expenses	75,274		50,102
Advance Rental Payments and Security Deposits	136,840		137,848
Total Liabilities	6,126,528		6,094,180
Partners' Capital	(1,015,843)		(571,986)
Total Liabilities and Partners' Capital	5,110,685		$ 5,522,194
Partners' Capital % - NERA			50.00%						50.00%
Investment in Unconsolidated Joint Ventures									$ 5,075,000
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture	$ (507,922)		$ (285,993)
Total units/ condominiums
Total	42		42						42
Units to be retained | property	42		42
Hamilton Minuteman | NERA 50%
LIABILITIES AND PARTNERS' CAPITAL
Partners' Capital % - NERA	50.00%
Hamilton Minuteman | Residential buildings
Total units/ condominiums
Total | property	42		42
Hamilton on Main Apts
ASSETS
Rental Properties	$ 14,982,149		$ 15,722,824
Cash and Cash Equivalents	574,605		514,145
Rents Receivable	49,425		12,553
Real Estate Tax Escrows	113,702		77,969
Prepaid Expenses and Other Assets	177,044		185,332
Total Assets	15,896,925		16,512,823
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	16,845,158		16,829,107
Accounts Payable and Accrued Expenses	172,092		152,433
Advance Rental Payments and Security Deposits	424,300		439,382
Total Liabilities	17,441,550		17,420,922
Partners' Capital	(1,544,625)		(908,099)
Total Liabilities and Partners' Capital	15,896,925		$ 16,512,823
Partners' Capital % - NERA			50.00%							50.00%
Investment in Unconsolidated Joint Ventures										$ 8,000,000
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture	$ (772,313)		$ (454,050)
Total units/ condominiums
Total	148		148							280
Units to be retained | property	148		148
Hamilton on Main Apts | NERA 50%
LIABILITIES AND PARTNERS' CAPITAL
Partners' Capital % - NERA	50.00%
Hamilton on Main Apts | Residential buildings
Total units/ condominiums
Total | property	148		148
Dexter Park
ASSETS
Rental Properties	$ 80,053,070		$ 83,230,537
Cash and Cash Equivalents	2,564,784		3,510,840
Rents Receivable	447,666		27,015
Prepaid Expenses and Other Assets	1,400,615		1,559,233
Total Assets	84,466,135		88,327,625
LIABILITIES AND PARTNERS' CAPITAL
Mortgage Notes Payable	124,536,869		124,472,246		$ 82,000,000
Accounts Payable and Accrued Expenses	722,157		639,480
Advance Rental Payments and Security Deposits	2,083,729		2,744,163
Total Liabilities	127,342,755		127,855,889
Partners' Capital	(42,876,620)		(39,528,264)
Total Liabilities and Partners' Capital	84,466,135		$ 88,327,625
Partners' Capital % - NERA			40.00%			40.00%
Investment in Unconsolidated Joint Ventures						$ 15,925,000
Distribution and Loss in Excess of investments in Unconsolidated Joint Venture	$ (17,150,648)		$ (15,811,306)
Total units/ condominiums
Total	409		409			409
Units to be retained | property	409		409
Dexter Park | NERA 40%
LIABILITIES AND PARTNERS' CAPITAL
Partners' Capital % - NERA	40.00%
Dexter Park | Residential buildings
Total units/ condominiums
Total | property	409		409

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Income) (Details) - USD ($)	3 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Oct. 28, 2009	Mar. 02, 2005	Sep. 30, 2004	Aug. 31, 2004	Nov. 30, 2001
Revenues
Rental income	$ 14,980,116	$ 16,253,430
Laundry and sundry income	108,673	122,154
Total Revenues	15,088,789	16,375,584
Expenses
Administrative	652,186	584,658
Depreciation and amortization	3,905,918	4,565,467
Management fee	605,391	648,993
Operating	2,045,968	1,668,402
Renting	261,966	196,871
Repairs and maintenance	1,970,087	2,086,218
Taxes and insurance	2,252,134	2,280,541
Total Expenses	11,693,650	12,031,150
Income Before Other Income (Expense)	3,395,139	4,344,434
Other Income (Expense)
Interest expense	(3,364,170)	(3,450,325)
Interest income	21	107
Total Other Income (Expense)	(3,689,319)	(2,975,651)
Net Inocme (Loss)	$ (294,180)	$ 1,368,783
NERA 50%
Other Income (Expense)
Ownership interest (as a percent)	50.00%	50.00%
NERA 40%
Other Income (Expense)
Ownership interest (as a percent)	40.00%	40.00%
Investment Properties
Revenues
Rental income	$ 4,758,898	$ 6,351,455
Laundry and sundry income	39,330	38,330
Total Revenues	4,798,228	6,389,785
Expenses
Administrative	91,579	90,101
Depreciation and amortization	1,488,677	1,476,886
Management fee	127,249	170,825
Operating	500,667	465,009
Renting	163,187	39,052
Repairs and maintenance	670,571	481,331
Taxes and insurance	871,787	859,024
Total Expenses	3,913,717	3,582,228
Income Before Other Income (Expense)	884,511	2,807,557
Other Income (Expense)
Interest expense	(1,662,666)	(1,713,904)
Total Other Income (Expense)	(1,662,666)	(1,713,904)
Net Inocme (Loss)	(778,155)	1,093,653
Proportionate share of net income (loss)	(325,170)	474,567
Investment Properties | NERA 50%
Other Income (Expense)
Net Inocme (Loss)		185,525
Proportionate share of net income (loss)	(69,534)
Investment Properties | NERA 40%
Other Income (Expense)
Net Inocme (Loss)		289,042
Proportionate share of net income (loss)	(255,636)
Hamilton Essex 81
Revenues
Rental income	230,217	439,380
Laundry and sundry income	3,013	3,385
Total Revenues	233,230	442,765
Expenses
Administrative	14,556	6,188
Depreciation and amortization	118,942	121,642
Management fee	5,260	17,736
Operating	29,432	25,524
Renting	32,784	2,775
Repairs and maintenance	52,547	27,009
Taxes and insurance	65,539	64,677
Total Expenses	319,060	265,551
Income Before Other Income (Expense)	(85,830)	177,214
Other Income (Expense)
Interest expense	(61,312)	(100,733)
Total Other Income (Expense)	(61,312)	(100,733)
Net Inocme (Loss)	(147,142)	$ 76,481
Ownership interest (as a percent)		50.00%
Hamilton Essex 81 | NERA 50%
Other Income (Expense)
Net Inocme (Loss)		$ 38,241
Proportionate share of net income (loss)	$ (73,571)
Ownership interest (as a percent)	50.00%
Hamilton Essex Development
Revenues
Rental income		60,471
Total Revenues		60,471
Expenses
Administrative	$ 853	650
Depreciation and amortization	5,074	5,074
Management fee		2,203
Taxes and insurance	14,885	15,218
Total Expenses	20,812	23,145
Income Before Other Income (Expense)	(20,812)	37,326
Other Income (Expense)
Net Inocme (Loss)	(20,812)	$ 37,326
Ownership interest (as a percent)		50.00%
Hamilton Essex Development | NERA 50%
Other Income (Expense)
Net Inocme (Loss)		$ 18,663
Proportionate share of net income (loss)	$ (10,406)
Ownership interest (as a percent)	50.00%
345 Franklin
Revenues
Rental income	$ 333,093	428,150
Laundry and sundry income	112	454
Total Revenues	333,205	428,604
Expenses
Administrative	4,803	7,757
Depreciation and amortization	85,345	84,494
Management fee	12,412	16,466
Operating	13,521	12,988
Renting	14,328	8,753
Repairs and maintenance	23,278	21,578
Taxes and insurance	43,670	39,906
Total Expenses	197,357	191,942
Income Before Other Income (Expense)	135,848	236,662
Other Income (Expense)
Interest expense	(90,643)	(93,426)
Total Other Income (Expense)	(90,643)	(93,426)
Net Inocme (Loss)	45,205	$ 143,236
Ownership interest (as a percent)		50.00%					50.00%
345 Franklin | NERA 50%
Other Income (Expense)
Net Inocme (Loss)		$ 71,618
Proportionate share of net income (loss)	$ 22,602
Ownership interest (as a percent)	50.00%
Hamilton 1025
Revenues
Rental income	$ 24,369	20,558
Total Revenues	24,369	20,558
Expenses
Administrative	714	10,125
Depreciation and amortization	816	816
Management fee	628	822
Operating	91	45
Taxes and insurance	4,797	4,189
Total Expenses	7,046	15,997
Income Before Other Income (Expense)	17,323	4,561
Other Income (Expense)
Net Inocme (Loss)	17,323	$ 4,561
Ownership interest (as a percent)		50.00%		50.00%
Hamilton 1025 | NERA 50%
Other Income (Expense)
Net Inocme (Loss)		$ 2,281
Proportionate share of net income (loss)	$ 8,662
Ownership interest (as a percent)	50.00%
Hamilton Minuteman
Revenues
Rental income	$ 284,524	290,693
Laundry and sundry income	1,276
Total Revenues	285,800	290,693
Expenses
Administrative	3,583	2,481
Depreciation and amortization	84,025	86,826
Management fee	11,296	11,532
Operating	34,596	22,226
Renting	360	3,000
Repairs and maintenance	19,405	10,895
Taxes and insurance	34,976	36,051
Total Expenses	188,241	173,011
Income Before Other Income (Expense)	97,559	117,682
Other Income (Expense)
Interest expense	(58,625)	(59,259)
Total Other Income (Expense)	(58,625)	(59,259)
Net Inocme (Loss)	38,934	$ 58,423
Ownership interest (as a percent)		50.00%			50.00%
Hamilton Minuteman | NERA 50%
Other Income (Expense)
Net Inocme (Loss)		$ 29,211
Proportionate share of net income (loss)	$ 19,466
Ownership interest (as a percent)	50.00%
Hamilton on Main Apts
Revenues
Rental income	$ 816,812	905,700
Laundry and sundry income	8,777	8,749
Total Revenues	825,589	914,449
Expenses
Administrative	20,219	15,848
Depreciation and amortization	269,915	261,047
Management fee	32,375	34,984
Operating	124,933	93,845
Renting	30,760	7,720
Repairs and maintenance	122,446	134,837
Taxes and insurance	110,134	122,762
Total Expenses	710,782	671,043
Income Before Other Income (Expense)	114,807	243,406
Other Income (Expense)
Interest expense	(187,378)	(192,382)
Total Other Income (Expense)	(187,378)	(192,382)
Net Inocme (Loss)	(72,571)	$ 51,024
Ownership interest (as a percent)		50.00%				50.00%
Hamilton on Main Apts | NERA 50%
Other Income (Expense)
Net Inocme (Loss)		$ 25,512
Proportionate share of net income (loss)	$ (36,286)
Ownership interest (as a percent)	50.00%
Dexter Park
Revenues
Rental income	$ 3,069,883	4,206,503
Laundry and sundry income	26,152	25,742
Total Revenues	3,096,035	4,232,245
Expenses
Administrative	46,851	47,052
Depreciation and amortization	924,560	916,987
Management fee	65,278	87,082
Operating	298,094	310,381
Renting	84,955	16,804
Repairs and maintenance	452,895	287,012
Taxes and insurance	597,786	576,221
Total Expenses	2,470,419	2,241,539
Income Before Other Income (Expense)	625,616	1,990,706
Other Income (Expense)
Interest expense	(1,264,708)	(1,268,104)
Total Other Income (Expense)	(1,264,708)	(1,268,104)
Net Inocme (Loss)	(639,092)	$ 722,602
Ownership interest (as a percent)		40.00%	40.00%
Dexter Park | NERA 40%
Other Income (Expense)
Net Inocme (Loss)		$ 289,042
Proportionate share of net income (loss)	$ (255,636)
Ownership interest (as a percent)	40.00%

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INVESTMENT IN UNCONSOLIDATED JOINT VENTURES (Mortgage Maturities) (Details) - USD ($)	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2020	May 31, 2018	Oct. 13, 2016
Annual maturities of mortgage debt
2021-current maturities	$ 2,620,000
2022	67,012,000
2023	38,298,000
2024	11,093,000
2025	21,647,000
Thereafter	143,567,000
Total	284,237,000
Less: unamortized deferred financing costs	(1,285,000)
Secured Debt	$ 282,951,918	$ 283,444,533
Weighted average interest rate (as a percent)	3.91%
Effective interest rate (as a percent)	3.98%
Investment Properties
Annual maturities of mortgage debt
2021-current maturities	$ 215,702
2022	224,199
2023	233,032
2024	17,142,212
2025	10,251,753
Thereafter	138,929,705
Total	166,996,603
Less: unamortized deferred financing costs	(713,884)
Secured Debt	166,282,719		$ 166,380,941
Hamilton Essex 81
Annual maturities of mortgage debt
2025	10,000,000
Total	10,000,000
Less: unamortized deferred financing costs	(62,051)
Secured Debt	9,937,949		9,924,160
345 Franklin
Annual maturities of mortgage debt
2021-current maturities	215,702
2022	224,199
2023	233,032
2024	242,212
2025	251,753
Thereafter	7,929,705
Total	9,096,603
Less: unamortized deferred financing costs	(48,274)
Secured Debt	9,048,329		9,249,198
Hamilton Minuteman
Annual maturities of mortgage debt
Thereafter	6,000,000
Total	6,000,000
Less: unamortized deferred financing costs	(85,586)				$ (123,000)
Secured Debt	5,914,414		5,906,230
Hamilton on Main Apts
Annual maturities of mortgage debt
2024	16,900,000
Total	16,900,000
Less: unamortized deferred financing costs	(54,842)
Secured Debt	16,845,158		16,829,107
Dexter Park
Annual maturities of mortgage debt
Thereafter	125,000,000
Total	125,000,000
Less: unamortized deferred financing costs	(463,131)
Secured Debt	$ 124,536,869		$ 124,472,246	$ 82,000,000

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EMPLOYEE BENEFIT 401(k) PLANS (Details)	3 Months Ended
	Mar. 31, 2021 USD ($)
EMPLOYEE BENEFIT 401(k) PLANS
Maximum deferral percentage	90.00%
Matching contribution (as a percent)	50.00%
Percent of compensation	6.00%
Employee contribution vesting percentage	100.00%
Years of service required to vest in employer contributions	2 years
Years of service required to vest 100% in employer contributions	6 years
Annual vesting percentage	20.00%
Total plan expense	$ 11,000

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SUBSEQUENT EVENTS (Details) - USD ($)			1 Months Ended	3 Months Ended	6 Months Ended	132 Months Ended
	Jul. 31, 2014	Aug. 31, 2007	Sep. 30, 2007	Dec. 31, 2007	Jun. 30, 2019	Dec. 31, 2018	Oct. 31, 2020	Aug. 31, 2017
Subsequent events
Number of depository receipts repurchased		1,428,437	1,428,437	1,428,437	1,428,437	1,428,437
Line of Credit
Subsequent events
Maximum borrowings	$ 25,000,000
Term of debt	3 years
Amount of refinancing costs							$ 37,500	$ 128,000
Line of Credit | Federal Funds Rate
Subsequent events
Variable interest rate spread	0.50%
Line of Credit | LIBOR
Subsequent events
Additional applicable margin rate	2.50%
Variable interest rate spread	1.00%