Notes And Other Receivables

9 Months Ended

Sep. 30, 2014

Long-term Notes and Loans, by Type, Current and Noncurrent [Abstract]

Notes And Other Receivables

Notes and Other Receivables

The following table sets forth certain information regarding notes and other receivables (in thousands):

	September 30, 2014		December 31, 2013
Installment notes receivable on manufactured homes, net	$	21,684	$	25,471
Collateralized receivables, net (see Note 4)	117,480		109,821
Other receivables, net	29,177		29,393
Total notes and other receivables, net	$	168,341	$	164,685

Installment Notes Receivable on Manufactured Homes

The installment notes of $21.7 million (net of allowance of $0.1 million) and $25.5 million (net of allowance of $0.1 million) as of September 30, 2014 and December 31, 2013, respectively, are collateralized by manufactured homes. The notes represent financing provided by us to purchasers of manufactured homes primarily located in our communities and require monthly principal and interest payments. The notes have a net weighted average interest rate and maturity of 8.7% and 11.6 years as of September 30, 2014, and 8.9% and 11.9 years as of December 31, 2013.

The change in the aggregate gross principal balance of the installment notes is as follows (in thousands):

	Nine Months Ended
	September 30, 2014
Beginning balance	$	25,575
Financed sales of manufactured homes	568
Principal payments and payoffs from our customers	(3,145		)
Principal reduction from repossessed homes	(1,177		)
Total activity	(3,754		)
Ending balance	$	21,821

Collateralized Receivables

Collateralized receivables represent notes receivable that were transferred to a third party, but did not meet the requirements for sale accounting (see Note 4). The receivables have a balance of $117.5 million (net of allowance of $0.8 million) and $109.8 million (net of allowance of $0.7 million ) as of September 30, 2014 and December 31, 2013, respectively.  The receivables have a net weighted average interest rate and maturity of 10.5% and 14.3 years as of September 30, 2014, and 10.7% and 13.6 years as of December 31, 2013.

Allowance for Losses for Collateralized and Installment Notes Receivable

The following table sets forth the allowance for collateralized and installment notes receivable as of September 30, 2014 (in thousands):

	Nine Months Ended
	September 30, 2014
Beginning balance	$	(793	)
Lower of cost or market write-downs	274
Increase to reserve balance	(368		)
Total activity	(94		)
Ending balance	$	(887	)

5.      Notes and Other Receivables, continued

Other Receivables

As of September 30, 2014, other receivables were comprised of amounts due from residents for rent and water and sewer usage of $9.1 million (net of allowance of $0.7 million), home sale proceeds of $6.0 million, insurance receivables of $3.3 million, insurance settlement of $3.7 million, rebates and other receivables of $4.9 million and a note receivable of $2.2 million.  The $2.2 million note bears interest at 8.0% for the first two years and 7.9% for the remainder of the loan, is secured by the senior mortgage on one MH community and a deed of land, and is due on December 31, 2016. As of December 31, 2013, other receivables were comprised of amounts due from residents for rent and water and sewer usage of $6.9 million (net of allowance of $0.7 million), home sale proceeds of $5.7 million, insurance receivables of $2.0 million, insurance settlement of $3.7 million, rebates and other receivables of $4.6 million and two notes receivable of $4.3 million and $2.2 million.

In June 2014, our $4.3 million note receivable, which was secured by senior mortgages on two RV communities, a pledge of $4.0 million in Series A-3 Preferred OP Units, a subordinated interest in cash collateral account and equity interests in another RV community, was paid in full.