Apartment Investment and Management Company
Annual Report 2009

Plain-text annual report

AIV 10-K 12/31/2009 Section 1: 10-K (FORM 10-K) Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) þþþþ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2009 or oooo TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Apartment Investment and Management Company (Exact name of registrant as specified in its charter) Commission File Number 1-13232 Maryland (State or other jurisdiction of incorporation or organization) 4582 South Ulster Street Parkway, Suite 1100 Denver, Colorado (Address of principal executive offices) 84-1259577 (I.R.S. Employer Identification No.) 80237 (Zip Code) Registrant’s telephone number, including area code: (303) 757-8101 Securities Registered Pursuant to Section 12(b) of the Act: Title of Each Class Name of Each Exchange on Which Registered Class A Common Stock Class G Cumulative Preferred Stock Class T Cumulative Preferred Stock Class U Cumulative Preferred Stock Class V Cumulative Preferred Stock Class Y Cumulative Preferred Stock New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange New York Stock Exchange Securities Registered Pursuant to Section 12(g) of the Act: none Indicate by check mark if the registrant is a well-known seasoned issuer, as defined by Rule 405 of the Securities Act. Yes þ No o Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o No þ 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 þ No o Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one): Large accelerated filer þ Accelerated filer o Non-accelerated filer o (Do not check if a smaller reporting company) Smaller reporting company o Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No þ The aggregate market value of the voting and non-voting common stock held by non-affiliates of the registrant was approximately $1.0 billion as of June 30, 2009. As of February 24, 2010, there were 117,140,672 shares of Class A Common Stock outstanding. Portions of the registrant’s definitive proxy statement to be issued in conjunction with the registrant’s annual meeting of stockholders to be held April 26, 2010, are incorporated by reference into Part III of this Annual Report. DOCUMENTS INCORPORATED BY REFERENCE APARTMENT INVESTMENT AND MANAGEMENT COMPANY TABLE OF CONTENTS ANNUAL REPORT ON FORM 10-K For the Fiscal Year Ended December 31, 2009 Item PART I 1. Business 1A. Risk Factors 1B. Unresolved Staff Comments 2. Properties 3. Legal Proceedings 4. Submission of Matters to a Vote of Security Holders 5. PART II Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 6. Selected Financial Data 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 7A. Quantitative and Qualitative Disclosures About Market Risk 8. Financial Statements and Supplementary Data 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 9A. Controls and Procedures 9B. Other Information 10. Directors, Executive Officers and Corporate Governance 11. Executive Compensation 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 13. Certain Relationships and Related Transactions, and Director Independence 14. Principal Accountant Fees and Services PART III 15. Exhibits and Financial Statement Schedules EX-21.1 EX-23.1 EX-31.1 EX-31.2 EX-32.1 EX-32.2 EX-99.1 PART IV 1 Page 2 8 16 16 17 17 18 20 22 42 43 43 43 46 46 46 46 46 46 47 Table of Contents FORWARD-LOOKING STATEMENTS The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements in certain circumstances. Certain information included in this Annual Report contains or may contain information that is forward-looking within the meaning of the federal securities laws, including, without limitation, statements regarding the effect of acquisitions and redevelopments, our future financial performance, including our ability to maintain current or meet projected occupancy, rent levels and same store results, and the effect of government regulations. Actual results may differ materially from those described in these forward-looking statements and, in addition, will be affected by a variety of risks and factors, some of which are beyond our control, including, without limitation: financing risks, including the availability and cost of financing and the risk that our cash flows from operations may be insufficient to meet required payments of principal and interest; earnings may not be sufficient to maintain compliance with debt covenants; real estate risks, including fluctuations in real estate values and the general economic climate in the markets in which we operate and competition for residents in such markets; national and local economic conditions; the terms of governmental regulations that affect us and interpretations of those regulations; the competitive environment in which we operate; the timing of acquisitions and dispositions; insurance risk, including the cost of insurance; natural disasters and severe weather such as hurricanes; litigation, including costs associated with prosecuting or defending claims and any adverse outcomes; energy costs; and possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us. In addition, our current and continuing qualification as a real estate investment trust involves the application of highly technical and complex provisions of the Internal Revenue Code and depends on our ability to meet the various requirements imposed by the Internal Revenue Code, through actual operating results, distribution levels and diversity of stock ownership. Readers should carefully review our financial statements and the notes thereto, as well as the section entitled “Risk Factors” described in Item 1A of this Annual Report and the other documents we file from time to time with the Securities and Exchange Commission. Item 1. Business The Company PART I Apartment Investment and Management Company, or Aimco, is a Maryland corporation incorporated on January 10, 1994. We are a self-administered and self-managed real estate investment trust, or REIT, engaged in the acquisition, ownership, management and redevelopment of apartment properties. We primarily invest in the 20 largest U.S. markets, as measured by total market capitalization, which is the total market value of institutional-grade apartment properties in a particular market. We define these markets as “target markets” and they possess the following characteristics: a high concentration of population and apartment units; geographic and employment diversification; and historically strong returns with reduced volatility as part of a diversified portfolio. We are one of the largest owners and operators of apartment properties in the United States. We own an equity interest in, and consolidate the majority of, the properties in our owned real estate portfolio. These properties represent the consolidated real estate holdings in our financial statements, which we refer to as consolidated properties. In addition, we have an equity interest in, but do not consolidate for financial statement purposes, certain properties that are accounted for under the equity or cost methods. These properties represent our investment in unconsolidated real estate partnerships in our financial statements, which we refer to as unconsolidated properties. Additionally, we provide property management and asset management services to certain properties, and in certain cases, we may indirectly own generally less than one percent of the operations of such 2 Table of Contents properties through a partnership syndication or other fund. Our equity holdings and managed properties are as follows as of December 31, 2009: Consolidated properties Unconsolidated properties Property management Asset management Total Total Portfolio Properties Units 426 77 22 345 870 95,202 8,478 2,095 29,879 135,654 Through our wholly-owned subsidiaries, AIMCO-GP, Inc. and AIMCO-LP Trust, we own a majority of the ownership interests in AIMCO Properties, L.P., which we refer to as the Aimco Operating Partnership. As of December 31, 2009, we held an interest of approximately 93% in the common partnership units and equivalents of the Aimco Operating Partnership. We conduct substantially all of our business and own substantially all of our assets through the Aimco Operating Partnership. Interests in the Aimco Operating Partnership that are held by limited partners other than Aimco are referred to as “OP Units.” OP Units include common OP Units, partnership preferred units, or preferred OP Units, and high performance partnership units, or High Performance Units. Generally, after a holding period of twelve months, holders of common OP Units may redeem such units for cash or, at the Aimco Operating Partnership’s option, Aimco Class A Common Stock, which we refer to as Common Stock. At December 31, 2009, we had 116,479,791 shares of our Common Stock outstanding and the Aimco Operating Partnership had 8,374,233 common OP Units and equivalents outstanding for a combined total of 124,854,024 shares of Common Stock and OP Units outstanding (excluding preferred OP Units). Since our initial public offering in July 1994, we have completed numerous transactions, including purchases of properties and interests in entities that own or manage properties, expanding our portfolio of owned or managed properties from 132 properties with 29,343 apartment units to a peak of over 2,100 properties with 379,000 apartment units. As of December 31, 2009, our portfolio of owned and/or managed properties consists of 870 properties with 135,654 apartment units. Except as the context otherwise requires, “we,” “our,” “us” and the “Company” refer to Aimco, the Aimco Operating Partnership and their consolidated entities, collectively. As used herein, and except where the context otherwise requires, “partnership” refers to a limited partnership or a limited liability company and “partner” refers to a limited partner in a limited partnership or a member in a limited liability company. Available Information Our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and any amendments to any of those reports that we file with the Securities and Exchange Commission are available free of charge as soon as reasonably practicable through our website at www.aimco.com. The information contained on our website is not incorporated into this Annual Report. Our Common Stock is listed on the New York Stock Exchange under the symbol “AIV.” In 2009, our chief executive officer submitted his annual corporate governance listing standards certification to the New York Stock Exchange, which certification was unqualified. Financial Information About Industry Segments We operate in two reportable segments: real estate (owning, operating and redeveloping apartments) and investment management (portfolio management and asset management, which are further discussed in the Business Overview). For further information on these segments, see Note 17 of the consolidated financial statements in Item 8, and Management’s Discussion and Analysis in Item 7. Business Overview Our principal financial objective is to increase long-term stockholder value, both as measured by Net Asset Value, which is the estimated fair value of our assets, net of debt, or NAV, and total shareholder return. 3 Table of Contents We strive to meet our objectives through: • property operations — using scale and technology to increase the effectiveness and efficiency of attracting and retaining apartment residents; • portfolio management — allocating capital among geographic markets and apartment property types, primarily Class B and B+ quality apartments that are well located within the 20 largest U.S. markets, through sales, redevelopment and/or acquisitions; • managing our cost and risk of capital by using leverage that is largely long-term, laddered in maturity, non- recourse and property specific; and • reducing our general and administrative and certain other costs through outsourcing and standardization. Our business is organized around two core activities: Property Operations and Investment Management. These core activities, along with our financial strategy, are described in more detail below. Property Operations Our portfolio is comprised of two business components: conventional and affordable. Our conventional operations, which provide 88% of our property net operating income and are market-rate apartments with rents paid by the resident, include 243 properties with 74,030 units. Our affordable operations provide 12% of our property net operating income and consist of 260 properties with 29,650 units, with rents that are generally paid, in whole or part, by a government agency. Affordable properties tend to have relatively more stable rents and higher occupancy due to government rent payments and thus are much less affected by market fluctuations. We operate a broad range of property types, from suburban garden-style to urban high-rise properties in 44 states, the District of Columbia and Puerto Rico at a range of average monthly rental rates. On average, our portfolio rents are somewhat above the average rents in the local markets. This diversification in geography insulates us, to some degree, from inevitable downturns in any one market. Our property operations currently are organized into five areas, which are further subdivided according to our target markets. To manage our nationwide portfolio more efficiently and to increase the benefits from our local management expertise, we have given direct responsibility for operations within each area to an area operations leader with regular senior management reviews. To enable the area operations leaders to focus on sales and service, as well as to improve financial control and budgeting, we have dedicated an area financial officer to support each area operations leader, and with the exception of routine maintenance, our specialized Construction Services group manages all on-site improvements, thus reducing the need for the area operations leaders to spend time on oversight of construction projects. We seek to improve our oversight of property operations by: developing better systems; standardizing business goals, operational measurements and internal reporting; and enhancing financial controls over field operations. Our objectives are to focus on the areas discussed below: • Customer Service. Our operating culture is focused on our residents. Our goal is to provide our residents with consistent service in clean, safe and attractive communities. We evaluate our performance through a customer satisfaction tracking system. In addition, we emphasize the quality of our on-site employees through recruiting, training and retention programs, which we believe contributes to improved customer service and leads to increased occupancy rates and enhanced operational performance. • Resident Selection and Retention. In apartment properties, neighbors are a meaningful part of the product, together with the location of the property and the physical quality of the apartment units. Part of our property operations strategy is to focus on resident acquisition and retention — attracting and retaining credit-worthy residents who are good neighbors. We have structured goals and coaching for all of our sales personnel, a tracking system for inquiries and a standardized renewal communication program. We have standardized residential financial stability requirements and have policies and monitoring practices to maintain our resident quality. 4 Table of Contents • Revenue Management. For our conventional properties, we have a centralized revenue management system that leverages people, processes and technology to work in partnership with our area operational management teams to develop rental rate pricing. We seek to increase revenue by optimizing the balance between rental and occupancy rates. We are also focused on the automation of on-site operations, as we believe that timely and accurate collection of property performance and resident profile data will enable us to maximize revenue through better property management and leasing decisions. We have standardized policies for new and renewal pricing with timely data and analyses by floor-plan, thereby enabling us to maximize our ability to modify pricing, even in challenging sub-markets. • Controlling Expenses. Cost controls are accomplished by local focus at the area level and by taking advantage of economies of scale at the corporate level. As a result of the size of our portfolio and our area concentrations of properties, we have the ability to spread over a large property base the fixed costs for general and administrative expenditures and certain operating functions, such as purchasing, insurance and information technology. • Ancillary Services. We believe that our ownership and management of properties provide us with unique access to a customer base that allows us to provide additional services and thereby increase occupancy and rents, while also generating incremental revenue. We currently provide cable television, telephone services, appliance rental, and carport, garage and storage space rental at certain properties. • Maintaining and Improving Property Quality. We believe that the physical condition and amenities of our apartment properties are important factors in our ability to maintain and increase rental rates. In 2009, we spent $70.3 million (Aimco’s share), or $723 per owned apartment unit, for Capital Replacements, which represent the share of additions that are deemed to replace the consumed portion of acquired capital assets. Additionally, we spent $53.4 million (Aimco’s share), or $549 per owned apartment unit, for Capital Improvements, which are non- redevelopment capital additions that are made to enhance the value, profitability or useful life of an asset from its original purchase condition. Investment Management Investment management includes activities related to our owned portfolio of properties as well as services provided to affiliated partnerships. Investment management includes portfolio strategy, capital allocation, joint ventures, tax credit syndication, acquisitions, dispositions and other transaction activities. Within our owned portfolio, we refer to these activities as Portfolio Management, and their benefit is seen in property operating results and investment gains. For affiliated partnerships, we refer to these activities as asset management for which we are separately compensated through fees paid by third party investors. Portfolio Management Portfolio Management involves the ongoing allocation of investment capital to meet our geographic and product type goals. We target geographic balance in Aimco’s diversified portfolio in order to optimize risk-adjusted returns and to avoid the risk of undue concentration in any particular market. We also seek to balance the portfolio by product type, with both high quality properties in excellent locations and also high land value properties that support redevelopment activities. We intend to slightly reduce our allocation of capital to affordable properties to 10% of our NAV. Our geographic allocation strategy focuses on our target markets to reduce volatility in and our dependence on particular areas of the country. We believe our target markets are deep, relatively liquid and possess desirable long-term growth characteristics. They are primarily coastal markets, and also include a number of Sun Belt cities and Chicago, Illinois. We may also invest in other markets on an opportunistic basis. We intend to upgrade the quality of our portfolio through the sale of approximately 5% to 10% of our portfolio annually, with the proceeds generally used to increase our allocation of capital to well located properties within our target markets through capital investments, redevelopment or acquisitions. We expect that increased geographic focus will also add to our investment knowledge and increase operating efficiencies based on local economies of scale. 5 Table of Contents Our portfolio management activities include strategic portfolio and capital allocation decisions including transactions to buy, sell or modify our ownership interest in properties, including through the use of partnerships and joint ventures, and to increase our investment in existing properties through redevelopment. The purpose of these transactions is to adjust Aimco’s investments to reflect our decisions regarding target allocations to geographic markets and to investment types. We believe redevelopment of certain properties in superior locations provides advantages over ground-up development, enabling us to generate rents comparable to new properties with lower financial risk, in less time and with reduced delays associated with governmental permits and authorizations. Redevelopment work also includes seeking entitlements from local governments, which enhance the value of our existing portfolio by increasing density, that is, the right to add residential units to a site. We have historically undertaken a range of redevelopment projects: from those in which a substantial number of all available units are vacated for significant renovations to the property, to those in which there is significant renovation, such as exteriors, common areas or unit improvements, typically done upon lease expirations without the need to vacate units on any wholesale or substantial basis. We have a specialized Redevelopment and Construction Services group to oversee these projects. During 2009, we increased our allocation of capital to our target markets by disposing of 68 conventional properties located primarily outside of our target markets or in less desirable locations within our target markets and by investing $66.8 million in redevelopment of conventional properties. As of December 31, 2009, our conventional portfolio included 243 properties with 74,030 units in 38 markets. As of December 31, 2009, conventional properties in our target markets comprised 88% of our NAV attributable to our conventional properties. Our top five markets by net operating income contribution include the metropolitan areas of Washington, D.C.; Los Angeles, California; “Other” Florida (which is comprised of Ft. Lauderdale, Jacksonville, Orlando, Palm Beach County and Tampa); Chicago, Illinois and Boston, Massachusetts. During 2009, we invested $46.0 million in redevelopment of affordable properties, funded primarily by proceeds from the sale of tax credits to institutional partners. As with conventional properties, we also seek to dispose of properties that are inconsistent with our long-term investment and operating strategies. During 2009, we sold 22 properties from our affordable portfolio. As of December 31, 2009, our affordable portfolio included 260 properties with 29,650 units. Financial Strategy We are focused on maintaining a safe balance sheet, including minimizing or eliminating our recourse debt and near term property debt maturities as well as minimizing our cost of capital on a risk adjusted basis. We primarily use non- recourse and amortizing property debt with laddered maturities and minimize reliance on corporate debt. The lower risk inherent in non-recourse property debt permits us to operate with higher debt leverage and a lower weighted average cost of capital. We use floating rate property and corporate debt to provide lower interest costs over time at a level that considers acceptable earnings volatility. During 2009, using proceeds from asset dispositions, we repaid $310.0 million of our term loan, which matures in March 2011, leaving a remaining outstanding balance of $90.0 million at December 31, 2009. We repaid an additional $45.0 million through February 26, 2010, leaving a remaining outstanding balance of $45.0 million. During 2009, we also focused on reducing refunding risk by accelerating refinancing of property loans maturing prior to 2012. At the beginning of 2009, property debt totaling $753.0 million was scheduled to mature prior to 2012. During 2009, through refinancing, repayment and property sales, we reduced these maturities by 69%, or $516.3 million, and eliminated all 2010 property debt maturities. As of December 31, 2009, five loans totaling $236.7 million were scheduled to mature in 2011. During January 2010, we extended the maturity of one of these loans for $65.0 million to 2013. We expect to refinance the remaining four loans, totaling $171.7 million ($101.2 million Aimco’s share), at their maturity. As of December 31, 2009, we had a $180.0 million revolving credit facility and borrowings available of $136.2 million (after giving effect to $43.8 million outstanding for undrawn letters of credit). The revolving credit facility matures in May 2011 and has a one year extension option, subject to certain terms. 6 Table of Contents Competition In attracting and retaining residents to occupy our properties we compete with numerous other housing alternatives. Our properties compete directly with other rental apartments as well as condominiums and single-family homes that are available for rent or purchase in the markets in which our properties are located. Principal factors of competition include rent or price charged, attractiveness of the location and property and quality and breadth of services. The number of competitive properties relative to demand in a particular area has a material effect on our ability to lease apartment units at our properties and on the rents we charge. In certain markets there exists oversupply of single family homes and condominiums and a reduction of households, both of which affect the pricing and occupancy of our rental apartments. Additionally, we compete with other real estate investors, including other apartment REITs, pension and investment funds, partnerships and investment companies in acquiring, redeveloping and managing apartment properties. This competition affects our ability to acquire properties we want to add to our portfolio and the price that we pay in such acquisitions. Taxation We have elected to be taxed as a REIT under the Internal Revenue Code of 1986, as amended, which we refer to as the Code, commencing with our taxable year ended December 31, 1994, and intend to continue to operate in such a manner. Our current and continuing qualification as a REIT depends on our ability to meet the various requirements imposed by the Code, which relate to organizational structure, distribution levels, diversity of stock ownership and certain restrictions with regard to owned assets and categories of income. If we qualify for taxation as a REIT, we will generally not be subject to United States Federal corporate income tax on our taxable income that is currently distributed to stockholders. This treatment substantially eliminates the “double taxation” (at the corporate and stockholder levels) that generally results from an investment in a corporation. Even if we qualify as a REIT, we may be subject to United States Federal income and excise taxes in various situations, such as on our undistributed income. We also will be required to pay a 100% tax on any net income on non- arm’s length transactions between us and a TRS (described below) and on any net income from sales of property that was property held for sale to customers in the ordinary course. We and our stockholders may be subject to state or local taxation in various state or local jurisdictions, including those in which we transact business or our stockholders reside. In addition, we could also be subject to the alternative minimum tax, or AMT, on our items of tax preference. The state and local tax laws may not conform to the United States Federal income tax treatment. Any taxes imposed on us reduce our operating cash flow and net income. Certain of our operations or a portion thereof, including property management, asset management and risk are conducted through taxable REIT subsidiaries, each of which we refer to as a TRS. A TRS is a C-corporation that has not elected REIT status and, as such, is subject to United States Federal corporate income tax. We use TRS entities to facilitate our ability to offer certain services and activities to our residents and investment partners, as these services and activities generally cannot be offered directly by the REIT. Regulation General Apartment properties and their owners are subject to various laws, ordinances and regulations, including those related to real estate broker licensing and regulations relating to recreational facilities such as swimming pools, activity centers and other common areas. Changes in laws increasing the potential liability for environmental conditions existing on properties or increasing the restrictions on discharges or other conditions, as well as changes in laws affecting development, construction and safety requirements, may result in significant unanticipated expenditures, which would adversely affect our net income and cash flows from operating activities. In addition, future enactment of rent control or rent stabilization laws, such as legislation that has been considered in New York, or other laws regulating multifamily housing may reduce rental revenue or increase operating costs in particular markets. 7 Table of Contents Environmental Various Federal, state and local laws subject property owners or operators to liability for management, and the costs of removal or remediation, of certain hazardous substances present on a property. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release or presence of the hazardous substances. In connection with the ownership, operation and management of properties, we could potentially be liable for environmental liabilities or costs associated with our properties or properties we acquire or manage in the future. These and other risks related to environmental matters are described in more detail in Item 1A, “Risk Factors.” Insurance Our primary lines of insurance coverage are property, general liability, and workers’ compensation. We believe that our insurance coverages adequately insure our properties against the risk of loss attributable to fire, earthquake, hurricane, tornado, flood, terrorism and other perils, and adequately insure us against other risk. Our coverage includes deductibles, retentions and limits that are customary in the industry. We have established loss prevention, loss mitigation, claims handling, litigation management and loss reserving procedures to manage our exposure. Employees At December 31, 2009, we had approximately 3,500 employees, of which approximately 2,800 were at the property level, performing various on-site functions, with the balance managing corporate and area operations, including investment and debt transactions, legal, financial reporting, accounting, information systems, human resources and other support functions. As of December 31, 2009, unions represented 115 of our employees. We have never experienced a work stoppage and believe we maintain satisfactory relations with our employees. Item 1A. Risk Factors The risk factors noted in this section and other factors noted throughout this Annual Report, describe certain risks and uncertainties that could cause our actual results to differ materially from those contained in any forward-looking statement. Our existing and future debt financing could render us unable to operate, result in foreclosure on our properties, prevent us from making distributions on our equity or otherwise adversely affect our liquidity. We are subject to the risk that our cash flow from operations will be insufficient to make required payments of principal and interest, and the risk that existing indebtedness may not be refinanced or that the terms of any refinancing will not be as favorable as the terms of existing indebtedness. If we fail to make required payments of principal and interest on secured debt, our lenders could foreclose on the properties and other collateral securing such debt, which would result in loss of income and asset value to us. As of December 31, 2009, substantially all of the properties that we owned or controlled were encumbered by debt. Our organizational documents do not limit the amount of debt that we may incur, and we have significant amounts of debt outstanding. Payments of principal and interest may leave us with insufficient cash resources to operate our properties or pay distributions required to be paid in order to maintain our qualification as a REIT. Our strategy is generally to incur debt to increase the return on our equity while maintaining acceptable coverage ratios. For the year ended December 31, 2009, as calculated based on the provisions in our credit agreement, which is further discussed in Note 7 to the consolidated financial statements in Item 8, we had a ratio of earnings before interest, taxes and depreciation and amortization to debt service of 1.59:1 and a ratio of earnings to fixed charges of 1.36:1. On February 3, 2010, we and our lenders agreed to reduce the covenant ratios of earnings before interest, taxes and depreciation and amortization to debt service and earnings to fixed charges from 1.50:1 and 1.30:1, respectively, to 1.40:1 and 1.20:1, respectively. We expect to remain in compliance with these covenants. At December 31, 2009, we had swap positions with two financial institutions totaling $353.1 million. The related swap agreements provide for collateral calls to maintain specified loan-to-value ratios. In the event the 8 Table of Contents values of the real estate properties serving as collateral under these agreements decline, we may be required to provide additional collateral pursuant to the swap agreements, which would adversely affect our cash flows. Disruptions in the financial markets could affect our ability to obtain financing and the cost of available financing and could adversely affect our liquidity. Our ability to obtain financing and the cost of such financing depends on the overall condition of the United States credit markets and, to an important extent in 2009, on the level of involvement of certain government sponsored entities, specifically, Federal Home Loan Mortgage Corporation, or Freddie Mac, and Federal National Mortgage Association, or Fannie Mae, in secondary credit markets. During 2009, the United States credit markets (outside of multi-family) experienced significant liquidity disruptions, which caused the spreads on debt financings to widen considerably and made obtaining financing, both non-recourse property debt and corporate borrowings, such as our term loan or revolving credit facility, more difficult. Further or prolonged disruptions in the credit markets could result in Freddie Mac or Fannie Mae reducing their level of involvement in secondary credit markets which would adversely affect our ability to obtain non-recourse property debt financing. Additionally, further or prolonged disruptions in the credit markets may also affect our ability to renew our credit facility with similar commitments when it matures in May 2012 (inclusive of a one year extension option). If our ability to obtain financing is adversely affected, we may be unable to satisfy scheduled maturities on existing financing through other sources of liquidity, which could result in lender foreclosure on the properties securing such debt and loss of income and asset value, each of which would adversely affect our liquidity. Increases in interest rates would increase our interest expense and reduce our profitability. As of December 31, 2009, we had approximately $654.6 million of variable-rate indebtedness outstanding and $67.0 million of variable rate preferred stock outstanding. Of the total debt subject to variable interest rates, floating rate tax-exempt bond financing was about two-thirds, or $433.9 million. Floating rate tax-exempt bond financing is benchmarked against the Securities Industry and Financial Markets Association Municipal Swap Index, or SIFMA, rate, which since 1989 has averaged 73% of the 30-day LIBOR rate. At December 31, 2009, we had approximately $440.9 million in cash and cash equivalents, restricted cash and notes receivable, the majority of which bear interest. The effect of our interest-bearing assets would partially reduce the effect of an increase in variable interest rates. If this historical relationship continues, we estimate that an increase in 30-day LIBOR of 100 basis points (73 basis points for tax-exempt interest rates) with constant credit risk spreads would result in net income being reduced by $1.1 million and income attributable to Aimco common stockholders being reduced by $1.5 million on an annual basis. Failure to generate sufficient net operating income may adversely affect our liquidity, limit our ability to fund necessary capital expenditures or adversely affect our ability to pay dividends. Our ability to fund necessary capital expenditures on our properties depends on, among other things, our ability to generate net operating income in excess of required debt payments. If we are unable to fund capital expenditures on our properties, we may not be able to preserve the competitiveness of our properties, which could adversely affect our net operating income. Our ability to make payments to our investors depends on our ability to generate net operating income in excess of required debt payments and capital expenditure requirements. Our net operating income and liquidity may be adversely affected by events or conditions beyond our control, including: • the general economic climate; • an inflationary environment in which the costs to operate and maintain our properties increase at a rate greater than our ability to increase rents only upon renewal of existing leases or at the inception of new leases; • competition from other apartment communities and other housing options; 9 Table of Contents • local conditions, such as loss of jobs, unemployment rates or an increase in the supply of apartments, that might adversely affect apartment occupancy or rental rates; • changes in governmental regulations and the related cost of compliance; • increases in operating costs (including real estate taxes) due to inflation and other factors, which may not be offset by increased rents; • changes in tax laws and housing laws, including the enactment of rent control laws or other laws regulating multifamily housing; and • changes in interest rates and the availability of financing. Covenant restrictions may limit our ability to make payments to our investors. Some of our debt and other securities contain covenants that restrict our ability to make distributions or other payments to our investors unless certain financial tests or other criteria are satisfied. Our credit facility provides, among other things, that we may make distributions to our investors during any four consecutive fiscal quarters in an aggregate amount that does not exceed the greater of 95% of our Funds From Operations for such period, subject to certain non-cash adjustments, or such amount as may be necessary to maintain our REIT status. Our outstanding classes of preferred stock prohibit the payment of dividends on our Common Stock if we fail to pay the dividends to which the holders of the preferred stock are entitled. Because real estate investments are relatively illiquid, we may not be able to sell properties when appropriate. Real estate investments are relatively illiquid and cannot always be sold quickly. Our freedom to sell properties is also restricted by REIT tax rules. Thus, we may not be able to change our portfolio promptly in response to changes in economic or other market conditions. Our ability to dispose of assets in the future will depend on prevailing economic and market conditions, including the cost and availability of financing. This could have a material adverse effect on our financial condition or results of operations. Competition could limit our ability to lease apartments or increase or maintain rents. Our apartment properties compete for residents with other housing alternatives, including other rental apartments, condominiums and single-family homes that are available for rent, as well as new and existing condominiums and single- family homes for sale. Competitive residential housing in a particular area could adversely affect our ability to lease apartments and to increase or maintain rental rates. The current challenges in the credit and housing markets have increased housing inventory that competes with our apartment properties. Our subsidiaries may be prohibited from making distributions and other payments to us. All of our properties are owned, and all of our operations are conducted, by the Aimco Operating Partnership and our other subsidiaries. As a result, we depend on distributions and other payments from our subsidiaries in order to satisfy our financial obligations and make payments to our investors. The ability of our subsidiaries to make such distributions and other payments depends on their earnings and cash flows and may be subject to statutory or contractual limitations. As an equity investor in our subsidiaries, our right to receive assets upon their liquidation or reorganization will be effectively subordinated to the claims of their creditors. To the extent that we are recognized as a creditor of such subsidiaries, our claims may still be subordinate to any security interest in or other lien on their assets and to any of their debt or other obligations that are senior to our claims. Redevelopment and construction risks could affect our profitability. We intend to continue to redevelop certain of our properties. These activities are subject to the following risks: • we may be unable to obtain, or experience delays in obtaining, necessary zoning, occupancy, or other required governmental or third party permits and authorizations, which could result in increased costs or the delay or abandonment of opportunities; 10 Table of Contents • we may incur costs that exceed our original estimates due to increased material, labor or other costs, such as litigation; • we may be unable to complete construction and lease up of a property on schedule, resulting in increased construction and financing costs and a decrease in expected rental revenues; • occupancy rates and rents at a property may fail to meet our expectations for a number of reasons, including changes in market and economic conditions beyond our control and the development by competitors of competing communities; • we may be unable to obtain financing with favorable terms, or at all, for the proposed development of a property, which may cause us to delay or abandon an opportunity; • we may abandon opportunities that we have already begun to explore for a number of reasons, including changes in local market conditions or increases in construction or financing costs, and, as a result, we may fail to recover expenses already incurred in exploring those opportunities; • we may incur liabilities to third parties during the redevelopment process, for example, in connection with resident lease terminations, or managing existing improvements on the site prior to resident lease terminations; and • loss of a key member of a project team could adversely affect our ability to deliver redevelopment projects on time and within our budget. We are insured for certain risks, and the cost of insurance, increased claims activity or losses resulting from casualty events may affect our operating results and financial condition. We are insured for a portion of our consolidated properties’ exposure to casualty losses resulting from fire, earthquake, hurricane, tornado, flood and other perils, which insurance is subject to deductibles and self-insurance retention. We recognize casualty losses or gains based on the net book value of the affected property and the amount of and any related insurance proceeds. In many instances, the actual cost to repair or replace the property may exceed its net book value and any insurance proceeds. We also insure certain unconsolidated properties for a portion of their exposure to such losses. With respect to our consolidated properties, we recognize the uninsured portion of losses as part of casualty losses in the periods in which they are incurred. In addition, we are self-insured for a portion of our exposure to third-party claims related to our employee health insurance plans, workers’ compensation coverage and general liability exposure. With respect to our insurance obligations to unconsolidated properties and our exposure to claims of third parties, we establish reserves at levels that reflect our known and estimated losses. The ultimate cost of losses and the impact of unforeseen events may vary materially from recorded reserves, and variances may adversely affect our operating results and financial condition. We purchase insurance (or reinsurance where we insure unconsolidated properties) to reduce our exposure to losses and limit our financial losses on large individual risks. The availability and cost of insurance are determined by market conditions outside our control. No assurance can be made that we will be able to obtain and maintain insurance at the same levels and on the same terms as we do today. If we are not able to obtain or maintain insurance in amounts we consider appropriate for our business, or if the cost of obtaining such insurance increases materially, we may have to retain a larger portion of the potential loss associated with our exposures to risks. Natural disasters and severe weather may affect our operating results and financial condition. Natural disasters and severe weather such as hurricanes may result in significant damage to our properties. The extent of our casualty losses and loss in operating income in connection with such events is a function of the severity of the event and the total amount of exposure in the affected area. When we have geographic concentration of exposures, a single catastrophe (such as an earthquake) or destructive weather event (such as a hurricane) affecting a region may have a significant negative effect on our financial condition and results of operations. We cannot accurately predict natural disasters or severe weather, or the number and type of such events that will affect us. As a result, our operating and financial results may vary significantly from one period to the next. Although we anticipate and plan for losses, there can be no assurance that our financial results will not be adversely affected by our exposure 11 Table of Contents to losses arising from natural disasters or severe weather in the future that exceed our previous experience and assumptions. We depend on our senior management. Our success depends upon the retention of our senior management, including Terry Considine, our chief executive officer. We have a succession planning and talent development process that is designed to identify potential replacements and develop our team members to provide depth in the organization and a bench of talent on which to draw. However, there are no assurances that we would be able to find qualified replacements for the individuals who make up our senior management if their services were no longer available. The loss of services of one or more members of our senior management team could have a material adverse effect on our business, financial condition and results of operations. We do not currently maintain key-man life insurance for any of our employees. If we are not successful in our acquisition of properties, our results of operations could be adversely affected. The selective acquisition of properties is a component of our strategy. However, we may not be able to complete transactions successfully in the future. Although we seek to acquire properties when such acquisitions increase our net income, Funds From Operations or net asset value, such transactions may fail to perform in accordance with our expectations. In particular, following acquisition, the value and operational performance of a property may be diminished if obsolescence or neighborhood changes occur before we are able to redevelop or sell the property. We may be subject to litigation associated with partnership transactions that could increase our expenses and prevent completion of beneficial transactions. We have engaged in, and intend to continue to engage in, the selective acquisition of interests in partnerships controlled by us that own apartment properties. In some cases, we have acquired the general partner of a partnership and then made an offer to acquire the limited partners’ interests in the partnership. In these transactions, we may be subject to litigation based on claims that we, as the general partner, have breached our fiduciary duty to our limited partners or that the transaction violates the relevant partnership agreement or state law. Although we intend to comply with our fiduciary obligations and the relevant partnership agreements, we may incur additional costs in connection with the defense or settlement of this type of litigation. In some cases, this type of litigation may adversely affect our desire to proceed with, or our ability to complete, a particular transaction. Any litigation of this type could also have a material adverse effect on our financial condition or results of operations. Government housing regulations may limit the opportunities at some of our properties and failure to comply with resident qualification requirements may result in financial penalties and/or loss of benefits, such as rental revenues paid by government agencies. We own consolidated and unconsolidated equity interests in certain properties and manage other properties that benefit from governmental programs intended to provide housing to people with low or moderate incomes. These programs, which are usually administered by the U.S. Department of Housing and Urban Development, or HUD, or state housing finance agencies, typically provide mortgage insurance, favorable financing terms, tax-credit equity, or rental assistance payments to the property owners. As a condition of the receipt of assistance under these programs, the properties must comply with various requirements, which typically limit rents to pre-approved amounts and impose restrictions on resident incomes. Failure to comply with these requirements and restrictions may result in financial penalties or loss of benefits. We usually need to obtain the approval of HUD in order to acquire or dispose of a significant interest in or manage a HUD-assisted property. We may not always receive such approval. During 2009, 2008 and 2007, for continuing operations, our rental revenues include $140.3 million, $132.3 million and $121.4 million, respectively, of subsidies from government agencies. Any loss of such benefits would adversely affect our liquidity and results of operations. 12 Table of Contents Laws benefiting disabled persons may result in our incurrence of unanticipated expenses. Under the Americans with Disabilities Act of 1990, or ADA, all places intended to be used by the public are required to meet certain Federal requirements related to access and use by disabled persons. Likewise, the Fair Housing Amendments Act of 1988, or FHAA, requires apartment properties first occupied after March 13, 1990, to be accessible to the handicapped. These and other Federal, state and local laws may require modifications to our properties, or affect renovations of the properties. Noncompliance with these laws could result in the imposition of fines or an award of damages to private litigants and also could result in an order to correct any non-complying feature, which could result in substantial capital expenditures. Although we believe that our properties are substantially in compliance with present requirements, we may incur unanticipated expenses to comply with the ADA and the FHAA in connection with the ongoing operation or redevelopment of our properties. Potential liability or other expenditures associated with potential environmental contamination may be costly. Various Federal, state and local laws subject property owners or operators to liability for management, and the costs of removal or remediation, of certain hazardous substances present on a property, including lead-based paint. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release or presence of the hazardous substances. The presence of, or the failure to manage or remedy properly, hazardous substances may adversely affect occupancy at affected apartment communities and the ability to sell or finance affected properties. In addition to the costs associated with investigation and remediation actions brought by government agencies, and potential fines or penalties imposed by such agencies in connection therewith, the presence of hazardous substances on a property could result in claims by private plaintiffs for personal injury, disease, disability or other infirmities. Various laws also impose liability for the cost of removal, remediation or disposal of hazardous substances through a licensed disposal or treatment facility. Anyone who arranges for the disposal or treatment of hazardous substances is potentially liable under such laws. These laws often impose liability whether or not the person arranging for the disposal ever owned or operated the disposal facility. In connection with the ownership, operation and management of properties, we could potentially be liable for environmental liabilities or costs associated with our properties or properties we acquire or manage in the future. Moisture infiltration and resulting mold remediation may be costly. We have been named as a defendant in lawsuits that have alleged personal injury and property damage as a result of the presence of mold. In addition, we are aware of lawsuits against owners and managers of multifamily properties asserting claims of personal injury and property damage caused by the presence of mold, some of which have resulted in substantial monetary judgments or settlements. We have only limited insurance coverage for property damage loss claims arising from the presence of mold and for personal injury claims related to mold exposure. We have implemented policies, procedures, third-party audits and training, and include a detailed moisture intrusion and mold assessment during acquisition due diligence. We believe these measures will prevent or eliminate mold exposure from our properties and will minimize the effects that mold may have on our residents. To date, we have not incurred any material costs or liabilities relating to claims of mold exposure or to abate mold conditions. Because the law regarding mold is unsettled and subject to change, we can make no assurance that liabilities resulting from the presence of or exposure to mold will not have a material adverse effect on our consolidated financial condition or results of operations. We may fail to qualify as a REIT. If we fail to qualify as a REIT, we will not be allowed a deduction for dividends paid to our stockholders in computing our taxable income, and we will be subject to Federal income tax at regular corporate rates, including any applicable alternative minimum tax. This would substantially reduce our funds available for payment to our investors. Unless entitled to relief under certain provisions of the Code, we also would be disqualified from taxation as a REIT for the four taxable years following the year during which we ceased to qualify as a REIT. In addition, our failure to qualify as a REIT would place us in default under our primary credit facilities. 13 Table of Contents We believe that we operate, and have always operated, in a manner that enables us to meet the requirements for qualification as a REIT for Federal income tax purposes. Our continued qualification as a REIT will depend on our satisfaction of certain asset, income, investment, organizational, distribution, stockholder ownership and other requirements on a continuing basis. Our ability to satisfy the asset tests depends upon our analysis of the fair market values of our assets, some of which are not susceptible to a precise determination, and for which we will not obtain independent appraisals. Our compliance with the REIT income and quarterly asset requirements also depends upon our ability to manage successfully the composition of our income and assets on an ongoing basis. Moreover, the proper classification of an instrument as debt or equity for Federal income tax purposes may be uncertain in some circumstances, which could affect the application of the REIT qualification requirements. Accordingly, there can be no assurance that the Internal Revenue Service, or the IRS, will not contend that our interests in subsidiaries or other issuers constitutes a violation of the REIT requirements. Moreover, future economic, market, legal, tax or other considerations may cause us to fail to qualify as a REIT, or our Board of Directors may determine to revoke our REIT status. REIT distribution requirements limit our available cash. As a REIT, we are subject to annual distribution requirements, which generally limit the amount of cash we retain for other business purposes, including amounts to fund our growth. We generally must distribute annually at least 90% of our net REIT taxable income, excluding any net capital gain, in order for our distributed earnings not to be subject to corporate income tax. We intend to make distributions to our stockholders to comply with the requirements of the Code. However, differences in timing between the recognition of taxable income and the actual receipt of cash could require us to sell assets or borrow funds on a short-term or long-term basis to meet the 90% distribution requirement of the Code. We have in the past chosen, and may in the future choose, to pay dividends in our own stock, in which case you may be required to pay income taxes in excess of the cash dividends you receive. We have in the past distributed, and may in the future distribute, taxable dividends that are payable in cash and shares of our Common Stock. Stockholders subject to the payment of income tax receiving such dividends will be required to include the full amount of the dividend as taxable income to the extent of our current and accumulated earnings and profits for U.S. Federal income tax purposes. As a result, a U.S. stockholder may be required to pay income taxes with respect to such dividends in excess of the cash dividends received. If a U.S. stockholder sells the stock it receives as a dividend in order to pay this tax, the sales proceeds may be less than the amount included in income with respect to the dividend, depending on the market price of our stock at the time of the sale. Furthermore, with respect to non-U.S. stockholders, we may be required to withhold U.S. tax with respect to such dividends, including in respect of all or a portion of such dividend that is payable in stock. In addition, if a significant number of our stockholders determine to sell shares of our Common Stock in order to pay taxes owed on dividends, it may put downward pressure on the trading price of our Common Stock. No assurance can be given that the IRS will not impose additional requirements in the future with respect to taxable cash/stock dividends, including on a retroactive basis, or assert that the requirements for such taxable cash/stock dividends have not been met. Limits on ownership of shares in our charter may result in the loss of economic and voting rights by purchasers that violate those limits. Our charter limits ownership of our Common Stock by any single stockholder (applying certain “beneficial ownership” rules under the Federal securities laws) to 8.7% of our outstanding shares of Common Stock, or 15% in the case of certain pension trusts, registered investment companies and Mr. Considine. Our charter also limits ownership of our Common Stock and preferred stock by any single stockholder to 8.7% of the value of the outstanding Common Stock and preferred stock, or 15% in the case of certain pension trusts, registered investment companies and Mr. Considine. The charter also prohibits anyone from buying shares of our capital stock if the purchase would result in us losing our REIT status. This could happen if a transaction results in fewer than 100 persons owning all of our shares of capital stock or results in five or fewer persons (applying certain attribution 14 Table of Contents rules of the Code) owning 50% or more of the value of all of our shares of capital stock. If anyone acquires shares in excess of the ownership limit or in violation of the ownership requirements of the Code for REITs: • the transfer will be considered null and void; • we will not reflect the transaction on our books; • we may institute legal action to enjoin the transaction; • we may demand repayment of any dividends received by the affected person on those shares; • we may redeem the shares; • the affected person will not have any voting rights for those shares; and • the shares (and all voting and dividend rights of the shares) will be held in trust for the benefit of one or more charitable organizations designated by us. We may purchase the shares of capital stock held in trust at a price equal to the lesser of the price paid by the transferee of the shares or the then current market price. If the trust transfers any of the shares of capital stock, the affected person will receive the lesser of the price paid for the shares or the then current market price. An individual who acquires shares of capital stock that violate the above rules bears the risk that the individual: • may lose control over the power to dispose of such shares; • may not recognize profit from the sale of such shares if the market price of the shares increases; • may be required to recognize a loss from the sale of such shares if the market price decreases; and • may be required to repay to us any distributions received from us as a result of his or her ownership of the shares. Our charter may limit the ability of a third party to acquire control of us. The 8.7% ownership limit discussed above may have the effect of delaying or precluding acquisition of control of us by a third party without the consent of our Board of Directors. Our charter authorizes our Board of Directors to issue up to 510,587,500 shares of capital stock. As of December 31, 2009, 426,157,736 shares were classified as Common Stock, of which 116,479,791 were outstanding, and 84,429,764 shares were classified as preferred stock, of which 24,950,134 were outstanding. Under our charter, our Board of Directors has the authority to classify and reclassify any of our unissued shares of capital stock into shares of capital stock with such preferences, conversion or other rights, voting powers restrictions, limitations as to dividends, qualifications or terms or conditions of redemptions as our Board of Directors may determine. The authorization and issuance of a new class of capital stock could have the effect of delaying or preventing someone from taking control of us, even if a change in control were in our stockholders’ best interests. The Maryland General Corporation Law may limit the ability of a third party to acquire control of us. As a Maryland corporation, we are subject to various Maryland laws that may have the effect of discouraging offers to acquire us and increasing the difficulty of consummating any such offers, even if an acquisition would be in our stockholders’ best interests. The Maryland General Corporation Law, specifically the Maryland Business Combination Act, restricts mergers and other business combination transactions between us and any person who acquires, directly or indirectly, beneficial ownership of shares of our stock representing 10% or more of the voting power without our Board of Directors’ prior approval. Any such business combination transaction could not be completed until five years after the person acquired such voting power, and generally only with the approval of stockholders representing 80% of all votes entitled to be cast and 662/3% of the votes entitled to be cast, excluding the interested stockholder, or upon payment of a fair price. The Maryland General Corporation Law, specifically the Maryland Control Share Acquisition Act, provides generally that a person who acquires shares of our capital stock representing 10% or more of the voting power in electing directors will have no voting rights unless approved by a vote of two-thirds of the shares eligible to vote. Additionally, the Maryland General Corporation Law provides, among other things, that the board of directors has broad discretion in adopting stockholders’ rights plans and has 15 Table of Contents the sole power to fix the record date, time and place for special meetings of the stockholders. To date, we have not adopted a shareholders’ rights plan. In addition, the Maryland General Corporation Law provides that corporations that: • have at least three directors who are not officers or employees of the entity or related to an acquiring person; and • has a class of equity securities registered under the Securities Exchange Act of 1934, as amended, may elect in their charter or bylaws or by resolution of the board of directors to be subject to all or part of a special subtitle that provides that: • the corporation will have a staggered board of directors; • any director may be removed only for cause and by the vote of two-thirds of the votes entitled to be cast in the election of directors generally, even if a lesser proportion is provided in the charter or bylaws; • the number of directors may only be set by the board of directors, even if the procedure is contrary to the charter or bylaws; • vacancies may only be filled by the remaining directors, even if the procedure is contrary to the charter or bylaws; and • the secretary of the corporation may call a special meeting of stockholders at the request of stockholders only on the written request of the stockholders entitled to cast at least a majority of all the votes entitled to be cast at the meeting, even if the procedure is contrary to the charter or bylaws. To date, we have not made any of the elections described above. Item 1B. Unresolved Staff Comments None. Item 2. Properties Our portfolio includes garden style, mid-rise and high-rise properties located in 44 states, the District of Columbia and Puerto Rico. Our geographic allocation strategy focuses on target markets which are grouped by region below. The following table sets forth information on all of our properties as of December 31, 2009 and 2008: Conventional: Pacific Northeast Sunbelt Chicago Total target markets Opportunistic and other markets Total conventional owned and managed Affordable owned and managed Property management Asset management Total 2009 2008 Number Number Number of Number of Properties of Units Properties of Units 37 62 77 15 191 52 243 260 22 345 870 10,274 18,270 23,546 4,633 56,723 17,307 74,030 29,650 2,095 29,879 135,654 38 67 106 19 230 81 311 288 34 359 992 10,504 21,221 31,481 5,555 68,761 25,735 94,496 32,836 3,252 32,223 162,807 At December 31, 2009, we owned an equity interest in and consolidated 426 properties containing 95,202 apartment units, which we refer to as “consolidated properties.” These consolidated properties contain, on average, 16 Table of Contents 223 apartment units, with the largest property containing 2,113 apartment units. These properties offer residents a range of amenities, including swimming pools, clubhouses, spas, fitness centers and tennis courts. Many of the apartment units offer features such as vaulted ceilings, fireplaces, washer and dryer hook-ups, cable television, balconies and patios. Additional information on our consolidated properties is contained in “Schedule III — Real Estate and Accumulated Depreciation” in this Annual Report on Form 10-K. At December 31, 2009, we held an equity interest in and did not consolidate 77 properties containing 8,478 apartment units, which we refer to as “unconsolidated properties.” In addition, we provided property management services for 22 properties containing 2,095 apartment units, and asset management services for 345 properties containing 29,879 apartment units. In certain cases, we may indirectly own generally less than one percent of the economic interest in such properties through a partnership syndication or other fund. Substantially all of our consolidated properties are encumbered by property debt. At December 31, 2009, our consolidated properties classified as held for use in our consolidated balance sheet were encumbered by aggregate property debt totaling $5,547.3 million having an aggregate weighted average interest rate of 5.50%. Such property debt was collateralized by 412 properties with a combined net book value of $6,867.8 million. Included in the 412 properties, we had a total of 31 property loans on 15 properties, with an aggregate principal balance outstanding of $366.1 million, that were each collateralized by property and cross-collateralized with certain (but not all) other property loans within this group of property loans (see Note 6 of the consolidated financial statements in Item 8 for additional information about our property debt). Item 3. Legal Proceedings None. Item 4. Submission of Matters to a Vote of Security Holders No matters were submitted to a vote of security holders during the fourth quarter of 2009. 17 Table of Contents PART II Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Our Common Stock has been listed and traded on the NYSE under the symbol “AIV” since July 22, 1994. The following table sets forth the quarterly high and low sales prices of our Common Stock, as reported on the NYSE, and the dividends declared in the periods indicated: Quarter Ended 2009 December 31, 2009 September 30, 2009 June 30, 2009 March 31, 2009 2008 December 31, 2008(1) September 30, 2008(1) June 30, 2008 March 31, 2008 High Low Dividends Declared (per share) $ 17.09 $ 11.80 7.36 15.91 5.18 11.10 4.57 12.89 $ 43.67 $ 7.01 29.25 42.28 33.33 41.24 29.91 41.11 $ 0.20 0.10 0.10 0.00 $ 3.88 3.00 0.60 0.00 (1) During 2008, our Board of Directors declared special dividends which were paid part in cash and part in shares of Common Stock as further discussed in Note 11 to the consolidated financial statements in Item 8. Our Board of Directors declared the dividends to address taxable gains from 2008 property sales. Our Board of Directors determines and declares our dividends. In making a dividend determination, the Board of Directors considers a variety of factors, including: REIT distribution requirements; current market conditions; liquidity needs and other uses of cash, such as for deleveraging and accretive investment activities. The Board of Directors may adjust the dividend amount or the frequency with which the dividend is paid based on then prevailing facts and circumstances. On February 24, 2010, the closing price of our Common Stock was $16.73 per share, as reported on the NYSE, and there were 117,140,672 shares of Common Stock outstanding, held by 3,270 stockholders of record. The number of holders does not include individuals or entities who beneficially own shares but whose shares are held of record by a broker or clearing agency, but does include each such broker or clearing agency as one recordholder. As a REIT, we are required to distribute annually to holders of common stock at least 90% of our “real estate investment trust taxable income,” which, as defined by the Code and United States Department of Treasury regulations, is generally equivalent to net taxable ordinary income. From time to time, we may issue shares of Common Stock in exchange for common and preferred OP Units tendered to the Aimco Operating Partnership for redemption in accordance with the terms and provisions of the agreement of limited partnership of the Aimco Operating Partnership. Such shares are issued based on an exchange ratio of one share for each common OP Unit or the applicable conversion ratio for preferred OP Units. The shares are generally issued in exchange for OP Units in private transactions exempt from registration under the Securities Act of 1933, as amended, pursuant to Section 4(2) thereof. During the three and twelve months ended December 31, 2009, approximately 379,400 and 518,800 shares of Common Stock were issued in exchange for common OP Units, respectively. During the three and twelve months ended December 31, 2009, no shares of Common Stock were issued in exchange for preferred OP Units. Our Board of Directors has, from time to time, authorized us to repurchase shares of our outstanding capital stock. There were no repurchases of our equity securities during the year ended December 31, 2009. As of December 31, 2009, we were authorized to repurchase approximately 19.3 million additional shares. This authorization has no expiration date. These repurchases may be made from time to time in the open market or in privately negotiated transactions. 18 Table of Contents Dividend Payments Our Credit Agreement includes customary covenants, including a restriction on dividends and other restricted payments, but permits dividends during any four consecutive fiscal quarters in an aggregate amount of up to 95% of our Funds From Operations for such period, subject to certain non-cash adjustments, or such amount as may be necessary to maintain our REIT status. Performance Graph The following graph compares cumulative total returns for our Common Stock, the Standard & Poor’s 500 Total Return Index (the “S&P 500”) and the MSCI US REIT Index. The MSCI US REIT Index is published by Morgan Stanley Capital International Inc., a provider of equity indices. The indices are weighted for all companies that fit the definitional criteria of the particular index and are calculated to exclude companies as they are acquired and add them to the index calculation as they become publicly traded companies. All companies of the definitional criteria in existence at the point in time presented are included in the index calculations. The graph assumes the investment of $100 in our Common Stock and in each index on December 31, 2004, and that all dividends paid have been reinvested. The historical information set forth below is not necessarily indicative of future performance. Total Return Performance Index 2004 2005 2006 2007 2008 2009 For the Years Ended December 31, Aimco MSCI US REIT S&P 500 100.00 100.00 100.00 106.29 112.13 104.91 164.95 152.41 121.48 113.71 59.71 85.29 126.78 78.64 101.14 128.16 80.74 102.11 Source: (other than with respect to S&P 500) SNL Financial LC, Charlottesville, VA ©2010 The Performance Graph will not be deemed to be incorporated by reference into any filing by the Company under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, except to the extent that the Company specifically incorporates the same by reference. The information required by Item 5 with respect to securities authorized for issuance under equity compensation plans is incorporated by reference in Part III, Item 12 of this Annual Report. 19 Table of Contents Item 6. Selected Financial Data The following selected financial data is based on our audited historical financial statements. This information should be read in conjunction with such financial statements, including the notes thereto, and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included herein or in previous filings with the Securities and Exchange Commission. OPERATING DATA: Total revenues Total operating expenses(3) Operating income(3) Loss from continuing operations(3) Income from discontinued operations, net(4) Net (loss) income Net income attributable to noncontrolling interests Net income attributable to preferred stockholders Net (loss) income attributable to Aimco common stockholders Earnings (loss) per common share — basic and diluted(5): Loss from continuing operations attributable to Aimco 2009 For the Years Ended December 31, 2006(2) 2008(1)(2) 2007(2) 2005(2) (Dollar amounts in thousands, except per share data) $ 1,195,763 $ 1,243,170 $ 1,174,457 $ 1,084,552 $ (909,784 ) (1,085,250 ) (1,185,071 ) 174,768 58,099 110,513 (42,924 ) (197,037 ) (117,878 ) 329,947 152,237 744,880 287,022 (44,800 ) 627,002 (110,234 ) (19,474 ) (214,995 ) (81,132 ) (53,708 ) (50,566 ) 93,710 (114,840 ) 351,314 (989,658 ) 184,799 (46,109 ) 171,615 125,506 (95,595 ) (66,016 ) (40,586 ) 894,060 (751,516 ) 142,544 (35,098 ) 160,450 125,352 (54,370 ) (87,948 ) (21,223 ) common stockholders $ Net (loss) income attributable to Aimco common stockholders $ (1.75 ) $ (1.00 ) $ (2.10 ) $ 3.96 $ (1.41 ) $ (0.43 ) $ (1.49 ) $ 0.98 $ (1.34 ) (0.23 ) BALANCE SHEET INFORMATION: Real estate, net of accumulated depreciation Total assets Total indebtedness Total equity OTHER INFORMATION: Dividends declared per common share Total consolidated properties (end of period) Total consolidated apartment units (end of period) Total unconsolidated properties (end of period) Total unconsolidated apartment units (end of period) Units managed (end of period)(6) $ 6,962,361 $ 7,125,637 $ 6,901,575 $ 6,436,854 $ 5,708,319 7,906,468 9,441,870 10,617,681 10,292,587 10,019,160 5,690,310 6,069,804 5,683,884 4,969,185 4,283,278 1,534,703 1,646,749 2,048,546 2,650,182 3,060,969 $ 0.40 $ 426 7.48 $ 514 95,202 117,719 85 9,613 35,475 77 8,478 31,974 4.31 $ 657 153,758 94 10,878 38,404 2.40 $ 703 162,432 102 11,791 42,190 3.00 619 158,548 264 35,269 46,667 (1) The consolidated statement of income for the year ended December 31, 2008, has been restated to reclassify impairment losses on real estate development assets within operating income. The reclassification reduced operating income by $91.1 million for the year ended December 31, 2008, and had no effect on the reported amounts of loss from continuing operations, net income, net income available to Aimco common stockholders or earnings per share. Additionally, the reclassification had no effect on the consolidated balance sheets, statements of equity or statements of cash flows. See Note 2 to the consolidated financial statements in Item 8. (2) Certain reclassifications have been made to conform to the current financial statement presentation, including retroactive adjustments related to our January 1, 2009 adoption of the provisions of Financial Accounting Standards Board, or FASB, Statement of Financial Accounting Standards No. 141(R), or SFAS 141(R), FASB Statement of Financial Accounting Standards No. 160, or SFAS 160, and FASB Staff Position No. EITF 03-6-1, or FSP EITF 03-6-1 (see Note 2 to the consolidated financial statements in Item 8) and to reflect additional properties sold during 2009 or classified as held for sale as of December 31, 2009, as discontinued operations (see Note 13 to the consolidated financial statements in Item 8). (3) Total operating expenses, operating income and loss from continuing operations for the year ended December 31, 2008, include a $91.1 million pre-tax provision for impairment losses on real estate development assets, which is discussed further in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7. 20 Table of Contents (4) Income from discontinued operations for the years ended December 31, 2009, 2008, 2007, 2006 and 2005 includes $221.8 million, $800.3 million, $117.6 million, $337.3 million and $162.7 million in gains on disposition of real estate, respectively. Income from discontinued operations for 2009, 2008 and 2007 is discussed further in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7. (5) Weighted average common shares, common share equivalents, dilutive preferred securities and earnings per share amounts for each of the periods presented above have been adjusted for our application during the fourth quarter 2009 of a change in accounting, which requires the shares issued in our special dividends paid in 2008 and January 2009 to be treated as issued and outstanding on the dividend payment dates for basic purposes and as potential share equivalents for the periods between the ex-dividend dates and payment dates for diluted purposes, rather than treating the shares as issued and outstanding as of the beginning of the earliest period presented for both basic and diluted purposes. See Note 2 to the consolidated financial statements in Item 8 for further discussion of this accounting change. (6) Units managed represents units in properties for which we provide asset management services only, although in certain cases we may indirectly own generally less than one percent of the economic interest in such properties through a partnership syndication or other fund. 21 Table of Contents Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations Executive Overview We are a self-administered and self-managed real estate investment trust, or REIT, engaged in the acquisition, ownership, management and redevelopment of apartment properties. Our property operations are characterized by diversification of product, location and price point. We primarily invest in the 20 largest U.S. markets, as measured by total market capitalization, which is the total market value of institutional-grade apartment properties in a particular market. We define these markets as “target markets” and they possess the following characteristics: a high concentration of population and apartment units; geographic and employment diversification; and historically strong returns with reduced volatility as part of a diversified portfolio. We are one of the largest owners and operators of apartment properties in the United States. As of December 31, 2009, we owned or managed 870 apartment properties containing 135,654 units located in 44 states, the District of Columbia and Puerto Rico. Our primary sources of income and cash are rents associated with apartment leases. The key financial indicators that we use in managing our business and in evaluating our financial condition and operating performance are: NAV; Funds From Operations, or FFO; Adjusted FFO, or AFFO, which is FFO less spending for Capital Replacements; same store property operating results; net operating income; Free Cash Flow, which is net operating income less spending for Capital Replacements; financial coverage ratios; and leverage as shown on our balance sheet. FFO and Capital Replacements are defined and further described in the sections captioned “Funds From Operations” and “Capital Additions” below. The key macro-economic factors and non-financial indicators that affect our financial condition and operating performance are: household formations; rates of job growth; single-family and multifamily housing starts; interest rates; and availability and cost of financing. Because our operating results depend primarily on income from our properties, the supply and demand for apartments influences our operating results. Additionally, the level of expenses required to operate and maintain our properties and the pace and price at which we redevelop, acquire and dispose of our apartment properties affect our operating results. Our cost of capital is affected by the conditions in the capital and credit markets and the terms that we negotiate for our equity and debt financings. During the challenging financial and economic environment in 2009, we focused on: serving and retaining residents; continually improving our portfolio; reducing leverage and financial risk; and simplifying our business model. We are focused on owning and operating B/B+ quality apartments concentrated in our target markets. We intend to upgrade the quality of our portfolio through the sale of approximately 5% to 10% of our portfolio annually, with the proceeds generally used to increase our allocation of capital to well located properties within our target markets through capital investments, redevelopment or acquisitions. The following discussion and analysis of the results of our operations and financial condition should be read in conjunction with the accompanying consolidated financial statements in Item 8. Results of Operations Overview 2009 compared to 2008 We reported net loss attributable to Aimco of $64.3 million and net loss attributable to Aimco common stockholders of $114.8 million for the year ended December 31, 2009, compared to net income attributable to Aimco of $412.0 million and net income attributable to Aimco common stockholders of $351.3 million for the year ended December 31, 2008, decreases of $476.3 million and $466.1 million, respectively. These decreases were principally due to the following items, all of which are discussed in further detail below: • a decrease in income from discontinued operations, primarily related to our sale of fewer assets in 2009 and the recognition of lower gains on sales as compared to 2008; • a decrease in gain on dispositions of unconsolidated real estate and other, primarily due to a large gain on the sale of an interest in an unconsolidated real estate partnership in 2008; 22 Table of Contents • an increase in depreciation and amortization expense, primarily related to completed redevelopments and capital additions placed in service for partial periods during 2008 or 2009; and • a decrease in asset management and tax credit revenues, primarily due to a reduction in promote income, which is income earned in connection with the disposition of properties owned by our consolidated joint ventures. The effects of these items on our operating results were partially offset by: • a decrease in earnings allocable to noncontrolling interests, primarily due to a decrease in the noncontrolling interests’ share of the decrease in gains on sales discussed above; • a decrease in general and administrative expenses, primarily related to reductions in personnel and related expenses from our organizational restructuring activities during 2008 and 2009; and • impairment losses on real estate development assets in 2008, for which no similar impairments were recognized in 2009. 2008 compared to 2007 We reported net income attributable to Aimco of $412.0 million and net income attributable to Aimco common stockholders of $351.3 million for the year ended December 31, 2008, compared to net income attributable to Aimco of $29.9 million and net loss attributable to Aimco common stockholders of $40.6 million for the year ended December 31, 2007, increases of $382.1 million and $391.9 million, respectively. These increases were principally due to the following items, all of which are discussed in further detail below: • an increase in income from discontinued operations, primarily related to an increase in the number of assets sold during 2008 and our recognition of higher gains on sales as compared to 2007; • an increase in gain on dispositions of unconsolidated real estate and other, primarily due to a large gain on the sale of an interest in an unconsolidated real estate partnership in 2008; • an increase in net operating income associated with property operations, reflecting improved operations of our same store properties and other properties; and • an increase in asset management and tax credit revenues, primarily due to an increase in promote income, which is income earned in connection with the disposition of properties owned by our consolidated joint ventures. The effects of these items on our operating results were partially offset by: • impairment losses on real estate development assets in 2008, for which no similar impairments were recognized in 2007; • an increase in earnings allocable to noncontrolling interests, primarily due to an increase in the noncontrolling interests’ share of the increase in gains on sales discussed above; • an increase in depreciation and amortization expense, primarily related to completed redevelopments placed in service for partial periods during 2007 or 2008; • restructuring costs recognized during the fourth quarter of 2008; and • an increase in provisions for losses on notes receivable, primarily due to the impairment during 2008 of our interest in Casden Properties LLC. The following paragraphs discuss these and other items affecting the results of our operations in more detail. Business Segment Operating Results We have two reportable segments: real estate (owning, operating and redeveloping apartments) and investment management (portfolio management and asset management). Our chief operating decision maker uses various generally accepted industry financial measures to assess the performance and financial condition of the business, 23 Table of Contents including: NAV; FFO; AFFO; same store property operating results; net operating income; Free Cash Flow; financial coverage ratios; and leverage as shown on our balance sheet. Our chief operating decision maker emphasizes net operating income as a key measurement of segment profit or loss. Segment net operating income is generally defined as segment revenues less direct segment operating expenses. Real Estate Segment Our real estate segment involves the ownership and operation of properties that generate rental and other property-related income through the leasing of apartment units. Our real estate segment’s net operating income also includes income from property management services performed for unconsolidated partnerships and unrelated parties. The following table summarizes our real estate segment’s net operating income for the years ended December 31, 2009, 2008 and 2007 (in thousands): Real estate segment revenues: Rental and other property revenues Property management revenues, primarily from affiliates Real estate segment expenses: Property operating expenses Property management expenses Real estate segment net operating income Year Ended December 31, 2008 2007 2009 $ 1,140,828 5,082 1,145,910 $ 1,137,995 6,345 1,144,340 $ 1,093,779 6,923 1,100,702 521,161 2,869 524,030 $ 621,880 526,238 5,385 531,623 $ 612,717 503,890 6,678 510,568 $ 590,134 For the year ended December 31, 2009, compared to the year ended December 31, 2008, real estate segment net operating income increased $9.2 million, or 1.5%. This increase was due to an increase in real estate segment revenues of $1.6 million, or 0.1% and a decrease in real estate segment expenses of $7.6 million, or 1.4%. The increase in revenues from our real estate segment during the year ended December 31, 2009, was primarily attributed to an increase of $10.0 million in revenues related to our conventional redevelopment properties based on more units in service at these properties in 2009, $7.5 million in revenues related to our affordable properties, primarily due to higher average rents partially offset by lower physical occupancy during 2009, and $2.3 million of revenues related to properties acquired during the latter half of 2008. These increases were partially offset by a $14.8 million, or 2.0%, decrease in revenues from our conventional same store properties, due to a decrease of 50 basis points in average physical occupancy and lower average rent (approximately $23 per unit). Conventional same store property revenues in our target markets, which represented approximately 78% of our total conventional same store revenues, decreased by 2.7% due to decreases in average physical occupancy (80 basis points) and average rent (approximately $31 per unit). The decrease in revenues associated with these target markets were primarily attributed to revenue decreases of 4.9% in our Pacific markets, attributed to 140 basis points in lower occupancy and $73 per unit in lower rents, and 3.3% in our Sunbelt market, attributed to 40 basis points in lower occupancy and $35 per unit in lower rents. Conventional same store revenues related to our other markets decreased by 1.7%, due to 130 basis points in lower occupancy and $14 per unit in lower rents. For the year ended December 31, 2009, compared to the year ended December 31, 2008, the decrease in our real estate segment expenses was primarily attributed to property management expenses. Property management expenses related to our consolidated properties, which are shown in the table above as a component of property operating expenses, decreased by $8.2 million, and property management expenses related to our unconsolidated properties decreased by $2.5 million, both due primarily to reductions in personnel and related costs resulting from our organizational restructurings. These decreases in our real estate segment expenses were partially offset by 24 Table of Contents increases of $0.6 million related to our conventional same store properties, primarily due to increases in employee compensation, insurance, repair and maintenance, and real estate tax expenses, offset by decreases in administrative and marketing expenses, $0.6 million related to our conventional redevelopment properties, primarily due to more units placed in service, $0.5 million related to our affordable properties, primarily due to properties that were newly consolidated in 2008 and $0.8 million related to properties acquired during the latter half of 2008. For the year ended December 31, 2008, compared to the year ended December 31, 2007, real estate segment net operating income increased $22.6 million, or 3.8%. This increase was due to an increase in real estate segment revenues of $43.6 million, or 4.0%, offset by an increase in real estate segment expenses of $21.1 million, or 4.1%. The increase in revenues from our real estate segment during the year ended December 31, 2008, was primarily attributed to an increase of $19.8 million in revenues from our conventional same store properties, due to an increase of 80 basis points in average physical occupancy and higher average rent (approximately $18 per unit), $13.0 million in revenues related to our affordable properties, primarily due to newly consolidated properties, and $8.8 million in revenues related to our conventional redevelopment properties based on more units in service and higher rental rates. For the year ended December 31, 2008, compared to the year ended December 31, 2007, the increase in expense was primarily attributed to increases of $9.3 million related to our affordable properties, primarily due to properties that were newly consolidated, $5.2 million related to our conventional redevelopment properties, primarily due to more units placed in service, $3.1 million of property management expenses related to consolidated properties, which are shown in the table above as a component of property operating expenses, and $0.2 million related to our conventional same store properties, primarily due to increases in utilities and real estate taxes, offset by decreases in employee compensation, repairs and maintenance, and turnover expenses. These increases in property expenses were in addition to an increase of $4.2 million in casualty losses during 2008, primarily related to properties damaged by Tropical Storm Fay and Hurricane Ike. Investment Management Segment Our investment management segment includes activities and services related to our owned portfolio of properties as well as services provided to affiliated partnerships. Activities and services that fall within investment management include portfolio strategy, capital allocation, joint ventures, tax credit syndication, acquisitions, dispositions and other transaction activities. Within our owned portfolio, we refer to these activities as “Portfolio Management,” and their benefit is seen in property operating results and in investment gains. For affiliated partnerships, we refer to these activities as asset management, for which we are separately compensated through fees paid by third party investors. The expenses of this segment consist primarily of the costs of departments that perform these activities. These activities are conducted in part by our taxable subsidiaries, and the related net operating income may be subject to income taxes. Asset management revenue includes certain fees that were earned in a prior period, but not recognized at that time because collectibility was not reasonably assured. Those fees may be recognized in a subsequent period upon occurrence of a transaction or a high level of the probability of occurrence of a transaction, or improvement in operations that generates sufficient cash to pay the fees. The following table summarizes the net operating income from our investment management segment for the years ended December 31, 2009, 2008 and 2007 (in thousands): Year Ended December 31, 2008 2007 2009 Asset management and tax credit revenues Investment management expenses Investment segment net operating income $ 52,193 15,779 $ 36,414 $ 101,225 24,784 $ 76,441 $ 73,755 20,507 $ 53,248 For the year ended December 31, 2009, compared to the year ended December 31, 2008, net operating income from investment management decreased $40.0 million, or 52.4%. This decrease is primarily attributable to a $42.8 million decrease in promote income, which is income earned in connection with the disposition of properties 25 Table of Contents owned by our consolidated joint ventures, due to fewer related sales in 2009 and a $7.6 million decrease in other general partner transactional fees, partially offset by a $9.0 million decrease in investment management expenses, primarily due to reductions in personnel and related costs from our organizational restructurings and a reduction in transaction costs, and a $3.9 million increase in revenues associated with our affordable housing tax credit syndication business, including syndication fees and other revenue earned in connection with these arrangements. For the year ended December 31, 2008, compared to the year ended December 31, 2007, net operating income from investment management increased $23.2 million, or 43.6%. This increase is primarily attributable to a $30.7 million increase in promote income, which is income earned in connection with the disposition of properties owned by our consolidated joint ventures, and a $9.2 million increase in other general partner transactional fees. These increases are offset by a decrease of $7.4 million in asset management fees, a decrease of $5.0 million in revenues associated with our affordable housing tax credit syndication business, including syndication fees and other revenue earned in connection with these arrangements, and an increase of $4.3 million in investment management expenses, inclusive of $3.5 million in deferred acquisition costs. Other Operating Expenses (Income) Depreciation and Amortization For the year ended December 31, 2009, compared to the year ended December 31, 2008, depreciation and amortization increased $51.4 million, or 13.1%. This increase primarily consists of depreciation related to properties acquired during the latter part of 2008, completed redevelopments and other capital projects recently placed in service. For the year ended December 31, 2008, compared to the year ended December 31, 2007, depreciation and amortization increased $45.5 million, or 13.1%. This increase reflects depreciation of $65.3 million for newly acquired properties, completed redevelopments and other capital projects recently placed in service. This increase was partially offset by a decrease of $25.7 million in depreciation adjustments necessary to reduce the carrying amount of buildings and improvements to their estimated disposition value, or zero in the case of a planned demolition, primarily due to a property that became fully depreciated during 2007. Provision for Operating Real Estate Impairment Losses Real estate and other long-lived assets to be held and used are stated at cost, less accumulated depreciation and amortization, unless the carrying amount of the asset is not recoverable. If events or circumstances indicate that the carrying amount of a property may not be recoverable, we make an assessment of its recoverability by comparing the carrying amount to our estimate of the undiscounted future cash flows, excluding interest charges, of the property. If the carrying amount exceeds the estimated aggregate undiscounted future cash flows, we recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the property. For the years ended December 31, 2009 and 2007, we recognized impairment losses of $2.3 million and $1.1 million, respectively, related to properties classified as held for use as of December 31, 2009. We recognized no such impairment losses during the year ended December 31, 2008. Provision for Impairment Losses on Real Estate Development Assets In connection with the preparation of our 2008 annual financial statements, we assessed the recoverability of our investment in our Lincoln Place property, located in Venice, California. Based upon the decline in land values in Southern California during 2008 and the expected timing of our redevelopment efforts, we determined that the total carrying amount of the property was no longer probable of full recovery and, accordingly, during the three months ended December 31, 2008, recognized an impairment loss of $85.4 million ($55.6 million net of tax). Similarly, we assessed the recoverability of our investment in Pacific Bay Vistas (formerly Treetops), a vacant property located in San Bruno, California, and determined that the carrying amount of the property was no longer probable of full recovery and, accordingly, we recognized an impairment loss of $5.7 million for this property during the three months ended December 31, 2008. 26 Table of Contents The impairments discussed above totaled $91.1 million and are included in provisions for impairment losses on real estate development assets in our consolidated statement of income for the year ended December 31, 2009 included in Item 8. We recognized no similar impairments on real estate development assets during the years ended December 31, 2009 or 2007. General and Administrative Expenses For the year ended December 31, 2009, compared to the year ended December 31, 2008, general and administrative expenses decreased $29.6 million, or 29.8%. This decrease is primarily attributable to reductions in personnel and related expenses associated with our organizational restructurings (see Note 3 to the consolidated financial statements in Item 8), pursuant to which we eliminated approximately 400, or 36%, of our offsite positions between December 31, 2008 and December 31, 2009. For the year ended December 31, 2008, compared to the year ended December 31, 2007, general and administrative expenses increased $8.5 million, or 9.4%. This increase is primarily attributable to higher personnel and related expenses of $6.1 million and an increase of $1.5 million in information technology communications costs. Other Expenses, Net Other expenses, net includes franchise taxes, risk management activities, partnership administration expenses and certain non-recurring items. For the year ended December 31, 2009, compared to the year ended December 31, 2008, other expenses, net decreased by $4.7 million. The decrease is primarily attributable to a $5.4 million write-off during 2008 of certain communications hardware and capitalized costs in 2008, and a $5.3 million reduction in expenses of our self insurance activities, including a decrease in casualty losses on less than wholly owned properties from 2008 to 2009. These decreases are partially offset by an increase of $4.3 million in costs related to certain litigation matters. For the year ended December 31, 2008, compared to the year ended December 31, 2007, other expenses, net increased by $3.2 million. The increase includes a $5.4 million write-off of certain communications hardware and capitalized costs during 2008 and a $1.2 million write-off of redevelopment costs associated with a change in the planned use of a property during 2008. The net unfavorable change also reflects $3.6 million of income recognized in 2007 related to the transfer of certain property rights to an unrelated party. These increases were partially offset by a $3.7 million reduction in expenses of our self insurance activities (net of costs in 2008 related to Tropical Storm Fay and Hurricane Ike) and a net decrease of $1.7 million in costs related to certain litigation matters. Restructuring Costs For the year ended December 31, 2009, we recognized restructuring costs of $11.2 million, as compared to $22.8 million in the year ended December 31, 2008, related to our organizational restructurings, which are further discussed in Note 3 to the consolidated financial statements in Item 8. We recognized no restructuring costs during the year ended December 31, 2007. Interest Income Interest income consists primarily of interest on notes receivable from non-affiliates and unconsolidated real estate partnerships, interest on cash and restricted cash accounts, and accretion of discounts on certain notes receivable from unconsolidated real estate partnerships. Transactions that result in accretion occur infrequently and thus accretion income may vary from period to period. For the year ended December 31, 2009, compared to the year ended December 31, 2008, interest income decreased $10.6 million, or 53.1%. Interest income decreased by $8.8 million due to lower interest rates on notes receivable, cash and restricted cash balances and lower average balances and by $4.1 million due to a decrease in accretion income related to our note receivable from Casden Properties LLC for which we ceased accretion following impairment of the note in 2008. These decreases were partially offset by a $2.3 million increase in 27 Table of Contents accretion income related to other notes during the year ended December 31, 2008, resulting from a change in the timing and amount of collection. For the year ended December 31, 2008, as compared to the year ended December 31, 2007, interest income decreased $23.3 million, or 53.9%. Interest income decreased by $16.0 million due to lower interest rates on notes receivable, cash and restricted cash balances and lower average balances. Interest income also decreased by $5.8 million due to an adjustment of accretion on certain discounted notes during the year ended December 31, 2008, resulting from a change in the estimated timing and amount of collection, and by $1.5 million for accretion income recognized during the year ended December 31, 2007, related to the prepayment of principal on certain discounted loans collateralized by properties in West Harlem in New York City. Provision for Losses on Notes Receivable During the years ended December 31, 2009, 2008 and 2007, we recognized net provisions for losses on notes receivable of $21.5 million, $17.6 million and $2.0 million, respectively. The provisions for losses on notes receivable for the years ended December 31, 2009 and 2008, primarily consist of impairments related to our investment in Casden Properties LLC, which are discussed further below. As part of the March 2002 acquisition of Casden Properties, Inc., we invested $50.0 million for a 20% passive interest in Casden Properties LLC, an entity organized to acquire, re-entitle and develop land parcels in Southern California. Based upon the profit allocation agreement, we account for this investment as a note receivable and through 2008 were amortizing the discounted value of the investment to the $50.0 million previously estimated to be collectible, through January 2, 2009, the initial dissolution date of the entity. In 2009, the managing member extended the dissolution date. In connection with the preparation of our 2008 annual financial statements and as a result of a decline in land values in Southern California, we determined our recorded investment amount was not fully recoverable, and accordingly recognized an impairment loss of $16.3 million ($10.0 million net of tax) during the three months ended December 31, 2008. In connection with the preparation of our 2009 annual financial statements and as a result of continued declines in land values in Southern California, we determined our then recorded investment amount was not fully recoverable, and accordingly recognized an impairment loss of $20.7 million ($12.4 million net of tax) during the three months ended December 31, 2009. In addition to the impairments related to Casden Properties LLC discussed above, we recognized provisions for losses on notes receivable totaling $0.8 million, $1.3 million and $2.0 million during the years ended December 31, 2009, 2008 and 2007, respectively. Interest Expense For the years ended December 31, 2009 and December 31, 2008, interest expense, which includes the amortization of deferred financing costs, totaled $324.2 million and $324.1 million, respectively. Interest expense increased by $15.0 million due to a reduction in redevelopment activity during 2009, which resulted in a reduction in capitalized interest. In addition, interest expense increased by $1.2 million due to an increase in prepayment penalties associated with refinancing activities, from $2.8 million in 2008 to $4.0 million in 2009, and by $3.3 million related to non-recourse property loans, from $311.2 million to $314.5 million, primarily due to higher average interest rates partially offset by lower average balances during 2009. These increases in interest expense were substantially offset by decreases in corporate interest expense. Interest expense related to corporate debt, which is primarily floating rate, decreased by $19.4 million, from $34.8 million to $15.4 million, primarily due to lower average balances and interest rates during 2009. For the year ended December 31, 2008, compared to the year ended December 31, 2007, interest expense increased $11.1 million, or 3.5%. Interest expense related to non-recourse property loans increased by $17.1 million, from $294.1 million to $311.2 million, primarily due to higher average balances partially offset by lower average interest rates during 2008. In addition, interest expense increased by $4.4 million, due to a decrease in capitalized interest from $29.1 million in 2007 to $24.7 million in 2008, resulting from more units in service and lower interest rates. These increases were partially offset by a decrease in interest expense related to corporate debt, which is primarily floating rate and which decreased by $10.4 million, from $45.2 million to $34.8 million, primarily due to lower average balances and interest rates during 2008. 28 Table of Contents Equity in Losses of Unconsolidated Real Estate Partnerships Equity in losses of unconsolidated real estate partnerships includes our share of net losses of our unconsolidated real estate partnerships and is primarily driven by depreciation expense in excess of the net operating income recognized by such partnerships. During the years ended December 31, 2009, 2008 and 2007, we recognized equity in losses of unconsolidated real estate partnerships of $12.0 million, $4.6 million and $3.3 million, respectively. The $7.4 million increase in our equity in losses from 2008 to 2009 was primarily due to our sale in late 2008 of an interest in an unconsolidated real estate partnership that generated $3.0 million of equity in earnings during the year ended December 31, 2008, and our sale during 2009 of our interest in an unconsolidated group purchasing organization which resulted in a decrease of equity in earnings of approximately $1.2 million. The increase in equity in losses also includes additional losses recognized during 2009 related to the underlying investment properties of certain tax credit syndications we consolidated during 2009 and 2008. Impairment Losses Related to Unconsolidated Real Estate Partnerships Impairment losses related to unconsolidated real estate partnerships includes our share of impairment losses recognized by our unconsolidated real estate partnerships. For the year ended December 31, 2009, compared to the year ended December 31, 2008, impairment losses related to unconsolidated real estate partnerships decreased $2.3 million, and for the year ended December 31, 2008, compared to the year ended December 31, 2007, impairment losses related to unconsolidated real estate partnerships increased $2.7 million. This decrease and increase are primarily attributable to impairment losses recognized by unconsolidated partnerships on their underlying real estate properties during 2008. Gain on Dispositions of Unconsolidated Real Estate and Other Gain on dispositions of unconsolidated real estate and other includes our share of gains related to dispositions of real estate by unconsolidated real estate partnerships, gains on disposition of interests in unconsolidated real estate partnerships, gains on dispositions of land and other non-depreciable assets and costs related to asset disposal activities. Changes in the level of gains recognized from period to period reflect the changing level of disposition activity from period to period. Additionally, gains on properties sold are determined on an individual property basis or in the aggregate for a group of properties that are sold in a single transaction, and are not comparable period to period. For the year ended December 31, 2009, compared to the year ended December 31, 2008, gain on dispositions of unconsolidated real estate and other decreased $77.4 million. This decrease is primarily attributable to a gain of $98.4 million on our disposition in 2008 of interests in two unconsolidated real estate partnerships. This decrease was partially offset by $18.7 million of gains on the disposition of interests in unconsolidated partnerships during 2009. Gains recognized in 2009 consist of $8.6 million related to our receipt in 2009 of additional proceeds related to our disposition during 2008 of one of the partnership interests discussed above (see Note 3 to the consolidated financials statements in Item 8), $4.0 million from the disposition of our interest in a group purchasing organization (see Note 3 to the consolidated financial statements in Item 8), and $6.1 million from our disposition in 2009 of interests in unconsolidated real estate partnerships. For the year ended December 31, 2008, compared to the year ended December 31, 2007, gain on dispositions of unconsolidated real estate and other increased $75.4 million. This increase is primarily attributable to a $98.4 million net gain on the disposition of interests in two unconsolidated real estate partnerships during the year ended December 31, 2008. During 2007, we recognized a $6.0 million non-refundable option and extension fee resulting from the termination of rights under an option agreement to sell the North and Central towers of our Flamingo South Beach property, approximately $6.4 million of net gains on dispositions of land parcels and our share of gains on dispositions of properties by unconsolidated real estate partnerships in 2007, and a $10.6 million gain on debt extinguishment related to properties in the VMS partnership (see Note 3 to the consolidated financial statements in Item 8). 29 Table of Contents Income Tax Benefit Certain of our operations or a portion thereof, such as property management, asset management and risk management, are conducted through, and certain of our properties are owned by, taxable REIT subsidiaries, each of which we refer to as a TRS. A TRS is a C-corporation that has not elected REIT status and, as such, is subject to United States Federal corporate income tax. We use TRS entities to facilitate our ability to offer certain services and conduct certain activities that generally cannot be offered directly by the REIT. We also use TRS entities to hold investments in certain properties. Income taxes related to the results of continuing operations of our TRS entities are included in income tax benefit in our consolidated statements of income. For the year ended December 31, 2009, compared to the year ended December 31, 2008, income tax benefit decreased by $34.5 million. This decrease was primarily attributed to $36.1 million of income tax benefit recognized in 2008 related to the impairments of our Lincoln Place property and our investment in Casden Properties LLC, both of which are owned through TRS entities, partially offset by $8.1 million of income tax benefit recognized in 2009 related to the impairment of our investment in Casden Properties LLC. For the year ended December 31, 2008, compared to the year ended December 31, 2007, income tax benefit increased by $33.4 million. This increase was primarily attributed to $36.1 million of income tax benefit recognized in 2008 related to the impairments of our Lincoln Place property and our investment in Casden Properties LLC. Income from Discontinued Operations, Net The results of operations for properties sold during the period or designated as held for sale at the end of the period are generally required to be classified as discontinued operations for all periods presented. The components of net earnings that are classified as discontinued operations include all property-related revenues and operating expenses, depreciation expense recognized prior to the classification as held for sale, property-specific interest expense and debt extinguishment gains and losses to the extent there is secured debt on the property. In addition, any impairment losses on assets held for sale and the net gain or loss on the eventual disposal of properties held for sale are reported in discontinued operations. For the years ended December 31, 2009 and 2008, income from discontinued operations totaled $152.2 million and $744.9 million, respectively. The $592.7 million decrease in income from discontinued operations was principally due to a $541.2 million decrease in gain on dispositions of real estate, net of income taxes, primarily attributable to fewer properties sold in 2009 as compared to 2008, and a $111.8 million decrease in operating income (inclusive of a $27.1 million increase in real estate impairment losses), partially offset by a $58.8 million decrease in interest expense. For the years ended December 31, 2008 and 2007, income from discontinued operations totaled $744.9 million and $171.6 million, respectively. The $573.3 million increase in income from discontinued operations was principally due to a $641.7 million increase in gain on dispositions of real estate, net of income taxes, primarily attributable to more properties sold in 2008 as compared to 2007 and a $27.9 million decrease in interest expense. These increases were partially offset by a $66.1 million decrease in operating income (inclusive of a $22.0 million increase in real estate impairment losses) and a $31.6 million decrease related to a 2007 gain on debt extinguishment related to properties in the VMS partnership. During the year ended December 31, 2009, we sold 89 consolidated properties for gross proceeds of $1.3 billion and net proceeds of $432.7 million, resulting in a net gain on sale of approximately $216.0 million (which is net of $5.8 million of related income taxes). During the year ended December 31, 2008, we sold 151 consolidated properties for gross proceeds of $2.4 billion and net proceeds of $1.1 billion, resulting in a net gain on sale of approximately $757.2 million (which is net of $43.1 million of related income taxes). During the year ended December 31, 2007, we sold 73 consolidated properties for gross proceeds of $480.0 million and net proceeds of $203.8 million, resulting in a net gain on sale of approximately $115.5 million (which is net of $2.1 million of related income taxes). For the years ended December 31, 2009, 2008 and 2007, income from discontinued operations includes the operating results of the properties sold or classified as held for sale as of December 31, 2009. 30 Table of Contents Changes in the level of gains recognized from period to period reflect the changing level of our disposition activity from period to period. Additionally, gains on properties sold are determined on an individual property basis or in the aggregate for a group of properties that are sold in a single transaction, and are not comparable period to period (see Note 13 of the consolidated financial statements in Item 8 for additional information on discontinued operations). Noncontrolling Interests in Consolidated Real Estate Partnerships Noncontrolling interests in consolidated real estate partnerships reflects the non-Aimco partners’, or noncontrolling partners’, share of operating results of consolidated real estate partnerships. This generally includes the noncontrolling partners’ share of property management fees, interest on notes and other amounts eliminated in consolidation that we charge to such partnerships. As discussed in Note 2 to the consolidated financial statements in Item 8, we adopted the provisions of SFAS 160, which are now codified in the Financial Accounting Standards Board’s Accounting Standards Codification, or FASB ASC, Topic 810, effective January 1, 2009. Prior to our adoption of SFAS 160, we generally did not recognize a benefit for the noncontrolling interest partners’ share of partnership losses for partnerships that have deficit noncontrolling interest balances and we generally recognized a charge to our earnings for distributions paid to noncontrolling partners for partnerships that had deficit noncontrolling interest balances. Under the updated provisions of FASB ASC Topic 810, we are required to attribute losses to noncontrolling interests even if such attribution would result in a deficit noncontrolling interest balance and we are no longer required to recognize a charge to our earnings for distributions paid to noncontrolling partners for partnerships that have deficit noncontrolling interest balances. For the year ended December 31, 2009, compared to the year ended December 31, 2008, net earnings attributed to noncontrolling interests in consolidated real estate partnerships decreased by $133.2 million. This decrease is primarily attributable to a reduction of $108.7 million related to the noncontrolling interests in consolidated real estate partnerships’ share of gains on dispositions of real estate, due primarily to fewer sales in 2009 as compared to 2008, $5.5 million of losses allocated to noncontrolling interests in 2009 that we would not have allocated to the noncontrolling interest partners in 2008 because to do so would have resulted in deficits in their noncontrolling interest balances, and approximately $3.8 million related to deficit distribution charges recognized as a reduction to our earnings in 2008, for which we did not recognize similar charges in 2009 based on the change in accounting discussed above. These decreases are in addition to the noncontrolling interest partners’ share of increased losses of our consolidated real estate partnerships in 2009 as compared to 2008. For the year ended December 31, 2008, compared to the year ended December 31, 2007, net income attributed to noncontrolling interests in consolidated real estate partnerships increased by $63.6 million. This increase is primarily attributable to an increase of $106.5 million related to the noncontrolling interests in consolidated real estate partnerships’ share of gains on dispositions of real estate, due primarily to more sales in 2008 as compared to 2007, partially offset by increases of $42.9 million in net recoveries of deficit distributions. As discussed in Note 2 to the consolidated financial statements in Item 8, during the first quarter 2010, we will adopt new accounting guidance related to accounting for variable interest entities. This change in accounting guidance may result in our consolidation of certain previously unconsolidated entities as well as our deconsolidation of certain we currently consolidate. At this time, we have not yet determined the effect this accounting change will have on our consolidated financial statements. Noncontrolling Interests in Aimco Operating Partnership Noncontrolling interests in Aimco Operating Partnership consist of common OP Units, High Performance Units and preferred OP Units. We allocate the Aimco Operating Partnership’s income or loss to the holders of common OP Units and High Performance Units based on the weighted average number of common OP Units and High Performance Units outstanding during the period. Holders of the preferred OP Units participate in the Aimco Operating Partnership’s income or loss only to the extent of their preferred distributions. For the year ended December 31, 2009, compared to the year ended December 31, 2008, the effect on our earnings of income or loss attributable to noncontrolling interests in the Aimco Operating Partnership changed favorably by $62.3 million. This favorable change is attributable to a decrease of $50.8 million related to the 31 Table of Contents noncontrolling interests in the Aimco Operating Partnership’s share of income from discontinued operations (net of noncontrolling interests in consolidated real estate partnerships), due primarily to larger gains on sales in 2008 relative to 2009 and $11.5 million in deficit distribution charges recognized during 2008 due to distributions in excess of the positive balance in noncontrolling interest. These changes were also affected by a decrease in the noncontrolling interests in the Aimco Operating Partnership’s effective ownership interest from 2008 to 2009. For the year ended December 31, 2008, compared to the year ended December 31, 2007, the effect on our earnings of income or loss attributable to noncontrolling interests in the Aimco Operating Partnership changed unfavorably by $55.8 million. This unfavorable change is attributable to an increase of $48.1 million related to the noncontrolling interests in the Aimco Operating Partnership’s share of income from discontinued operations (net of noncontrolling interests in consolidated real estate partnerships), due primarily to larger gains on sales in 2008 relative to 2007, $11.5 million in deficit distribution charges recognized during 2008 due to distributions in excess of the positive balance in noncontrolling interest, and a $0.5 million increase in distributions to holders of preferred OP Units. These unfavorable changes were partially offset by a $4.3 million increase in noncontrolling interests in the Aimco Operating Partnership’s share of losses from continuing operations (net of noncontrolling interests in consolidated real estate partnerships) in 2008 as compared to 2007. Critical Accounting Policies and Estimates We prepare our consolidated financial statements in accordance with accounting principles generally accepted in the United States of America, or GAAP, which requires us to make estimates and assumptions. We believe that the following critical accounting policies involve our more significant judgments and estimates used in the preparation of our consolidated financial statements. Impairment of Long-Lived Assets Real estate and other long-lived assets to be held and used are stated at cost, less accumulated depreciation and amortization, unless the carrying amount of the asset is not recoverable. If events or circumstances indicate that the carrying amount of a property may not be recoverable, we make an assessment of its recoverability by comparing the carrying amount to our estimate of the undiscounted future cash flows, excluding interest charges, of the property. If the carrying amount exceeds the estimated aggregate undiscounted future cash flows, we recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the property. From time to time, we have non-revenue producing properties that we hold for future redevelopment. We assess the recoverability of the carrying amount of these redevelopment properties by comparing our estimate of undiscounted future cash flows based on the expected service potential of the redevelopment property upon completion to the carrying amount. In certain instances, we use a probability-weighted approach to determine our estimate of undiscounted future cash flows when alternative courses of action are under consideration. As discussed in Provision for Impairment Losses on Real Estate Development Assets within the preceding discussion of our Results of Operations, during 2008 we recognized impairment losses on our Lincoln Place and Pacific Bay Vistas properties of $85.4 million ($55.6 million net of tax) and $5.7 million, respectively. Real estate investments are subject to varying degrees of risk. Several factors may adversely affect the economic performance and value of our real estate investments. These factors include: • the general economic climate; • competition from other apartment communities and other housing options; • local conditions, such as loss of jobs or an increase in the supply of apartments, that might adversely affect apartment occupancy or rental rates; • changes in governmental regulations and the related cost of compliance; 32 Table of Contents • increases in operating costs (including real estate taxes) due to inflation and other factors, which may not be offset by increased rents; • changes in tax laws and housing laws, including the enactment of rent control laws or other laws regulating multifamily housing; and • changes in interest rates and the availability of financing. Any adverse changes in these and other factors could cause an impairment in our long-lived assets, including real estate and investments in unconsolidated real estate partnerships. In addition to the impairments of Lincoln Place and Pacific Bay Vistas discussed above, based on periodic tests of recoverability of long-lived assets, for the years ended December 31, 2009 and 2007, we recorded net impairment losses of $2.3 million and $1.1 million, respectively, related to properties classified as held for use, and during the year ended December 31, 2008, we recorded no additional impairments related to properties held for use. Notes Receivable and Interest Income Recognition Notes receivable from unconsolidated real estate partnerships consist primarily of notes receivable from partnerships in which we are the general partner. Notes receivable from non-affiliates consist of notes receivable from unrelated third parties. The ultimate repayment of these notes is subject to a number of variables, including the performance and value of the underlying real estate and the claims of unaffiliated mortgage lenders. Our notes receivable include loans extended by us that we carry at the face amount plus accrued interest, which we refer to as “par value notes,” and loans extended by predecessors, some of whose positions we generally acquired at a discount, which we refer to as “discounted notes.” We record interest income on par value notes as earned in accordance with the terms of the related loan agreements. We discontinue the accrual of interest on such notes when the notes are impaired, as discussed below, or when there is otherwise significant uncertainty as to the collection of interest. We record income on such nonaccrual loans using the cost recovery method, under which we apply cash receipts first to the recorded amount of the loan; thereafter, any additional receipts are recognized as income. We recognize interest income on discounted notes receivable based upon whether the amount and timing of collections are both probable and reasonably estimable. We consider collections to be probable and reasonably estimable when the borrower has closed transactions or has entered into certain pending transactions (which include real estate sales, refinancings, foreclosures and rights offerings) that provide a reliable source of repayment. In such instances, we recognize accretion income, on a prospective basis using the effective interest method over the estimated remaining term of the loans, equal to the difference between the carrying amount of the discounted notes and the estimated collectible value. We record income on all other discounted notes using the cost recovery method. Accretion income recognized in any given period is based on our ability to complete transactions to monetize the notes receivable and the difference between the carrying value and the estimated collectible amount of the notes; therefore, accretion income varies on a period by period basis and could be lower or higher than in prior periods. Provision for Losses on Notes Receivable We assess the collectibility of notes receivable on a periodic basis, which assessment consists primarily of an evaluation of cash flow projections of the borrower to determine whether estimated cash flows are sufficient to repay principal and interest in accordance with the contractual terms of the note. We recognize impairments on notes receivable when it is probable that principal and interest will not be received in accordance with the contractual terms of the loan. The amount of the impairment to be recognized generally is based on the fair value of the partnership’s real estate that represents the primary source of loan repayment. In certain instances where other sources of cash flow are available to repay the loan, the impairment is measured by discounting the estimated cash flows at the loan’s original effective interest rate. During the years ended December 31, 2009, 2008 and 2007 we recorded net provisions for losses on notes receivable of $21.5 million, $17.6 million and $2.0 million, respectively. As discussed in Provision for Losses on Notes Receivable within the preceding discussion of our Results of Operations, provisions for losses on notes receivable in 2009 and 2008 include impairment losses of $20.7 million ($12.4 million net of tax) and $16.3 million 33 Table of Contents ($10.0 million net of tax), respectively, on our investment in Casden Properties LLC, which we account for as a note receivable. We will continue to evaluate the collectibility of these notes, and we will adjust related allowances in the future due to changes in market conditions and other factors. Capitalized Costs We capitalize costs, including certain indirect costs, incurred in connection with our capital additions activities, including redevelopment and construction projects, other tangible property improvements and replacements of existing property components. Included in these capitalized costs are payroll costs associated with time spent by site employees in connection with the planning, execution and control of all capital additions activities at the property level. We characterize as “indirect costs” an allocation of certain department costs, including payroll, at the area operations and corporate levels that clearly relate to capital additions activities. We capitalize interest, property taxes and insurance during periods in which redevelopment and construction projects are in progress. We charge to expense as incurred costs that do not relate to capital additions activities, including ordinary repairs, maintenance, resident turnover costs and general and administrative expenses (see Capital Additions and Related Depreciation in Note 2 to the consolidated financial statements in Item 8). For the years ended December 31, 2009, 2008 and 2007, for continuing and discontinued operations, we capitalized $9.8 million, $25.7 million and $30.8 million of interest costs, respectively, and $40.0 million, $78.1 million and $78.1 million of site payroll and indirect costs, respectively. The reduction is primarily due to a reduced level of redevelopment activities. Funds From Operations FFO is a non-GAAP financial measure that we believe, when considered with the financial statements determined in accordance with GAAP, is helpful to investors in understanding our performance because it captures features particular to real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than do other depreciable assets such as machinery, computers or other personal property. The Board of Governors of the National Association of Real Estate Investment Trusts, or NAREIT, defines FFO as net income (loss), computed in accordance with GAAP, excluding gains from sales of depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect FFO on the same basis. We compute FFO for all periods presented in accordance with the guidance set forth by NAREIT’s April 1, 2002, White Paper, which we refer to as the White Paper. We calculate FFO attributable to Aimco common stockholders (diluted) by subtracting redemption or repurchase related preferred stock issuance costs and dividends on preferred stock and adding back dividends/distributions on dilutive preferred securities and premiums or discounts on preferred stock redemptions or repurchases. FFO should not be considered an alternative to net income or net cash flows from operating activities, as determined in accordance with GAAP, as an indication of our performance or as a measure of liquidity. FFO is not necessarily indicative of cash available to fund future cash needs. In addition, although FFO is a measure used for comparability in assessing the performance of REITs, there can be no assurance that our basis for computing FFO is comparable with that of other REITs. In addition to FFO, we compute an alternate measure of FFO, which we refer to as Proforma FFO and which is FFO attributable to Aimco common stockholders (diluted), excluding operating real estate impairments and preferred stock redemption related amounts (adjusted for the noncontrolling interests). Both operating real estate impairment losses and preferred stock redemption related amounts are recurring items that affect our operating results. We exclude operating real estate impairment losses, net of related income tax benefits and noncontrolling interests, from our calculation of Proforma FFO because we believe the inclusion of such losses in FFO is inconsistent with the treatment of gains on the disposition of operating real estate, which are not included in FFO. We exclude preferred redemption related amounts (gains or losses) from our calculation of Proforma FFO because such amounts are not representative of our operating results. Similar to FFO, we believe Proforma FFO is helpful to investors in understanding our performance because it captures features particular to real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than do other depreciating assets such as machinery, computers or other personal property. Not all REITs present an 34 Table of Contents alternate measure of FFO similar to our Proforma FFO measure and there can be no assurance our basis for calculating Proforma FFO is comparable to those of other REITs. For the years ended December 31, 2009, 2008 and 2007, our FFO and Proforma FFO are calculated as follows (in thousands): Net (loss) income attributable to Aimco common stockholders(1) Adjustments: Depreciation and amortization Depreciation and amortization related to non-real estate assets Depreciation of rental property related to noncontrolling partners and unconsolidated entities(2) Gain on dispositions of unconsolidated real estate and other Income tax expense (benefit) arising from disposition of unconsolidated real estate and other Add back portion of gain on dispositions of unconsolidated real estate and other that relates to non- depreciable assets and debt extinguishment gain Deficit distributions to noncontrolling partners(3) Discontinued operations: Gain on dispositions of real estate, net of noncontrolling partners’ interest(2) Depreciation of rental property, net of noncontrolling partners’ interest(2) (Recovery of deficit distributions) deficit distributions to noncontrolling partners, net(3) Income tax expense arising from disposals Noncontrolling interests in Aimco Operating Partnership’s share of above adjustments(4) Preferred stock dividends Preferred stock redemption related (gains) costs Amounts allocable to participating securities(5) FFO Preferred stock dividends Preferred stock redemption related gains (costs) Amounts allocable to participating securities(5) Dividends/distributions on dilutive preferred securities 2009 2008 2007 $ (114,840 ) $ 351,314 $ (40,586 ) 444,413 392,999 347,491 (16,667 ) (17,372 ) (20,159 ) (40,852 ) (29,872 ) (15,888 ) (22,494 ) (99,864 ) (24,470 ) (17 ) 1,582 (433 ) 7,783 1,669 17,956 — 37,680 29,210 (164,281 ) (617,906 ) (63,923 ) 45,836 109,043 114,586 9,550 — (30,354 ) 2,135 5,788 43,146 (19,509 ) 21,667 (36,830 ) 52,215 55,190 63,381 2,635 4,481 (1,482 ) 6,985 (1,649 ) — $ 177,325 $ 222,410 $ 389,552 (52,215 ) (55,190 ) (63,381 ) (2,635 ) (4,481 ) 1,442 1,482 (6,985 ) 4,292 1,649 (773 ) — FFO attributable to Aimco common stockholders — diluted Operating real estate impairment losses, continuing operations, net of noncontrolling partners’ $ 125,986 $ 166,009 $ 320,497 interest(6) Operating real estate impairment losses, discontinued operations, net of noncontrolling partners’ interest(6) Income tax benefit on impairment losses Preferred stock redemption related (gains) costs(7) Noncontrolling interests in Aimco Operating Partnership’s share of above adjustments Amounts allocable to participating securities(5) Dividends/distributions on dilutive preferred securities Proforma FFO attributable to Aimco common stockholders — diluted 2,012 1,131 1,080 61,313 26,285 (511 ) (1,482 ) (2,474 ) — — (4,075 ) (1,649 ) (4,304 ) (448 ) — 5,430 — 2,635 (850 ) — 426 $ 178,835 $ 188,958 $ 329,218 FFO attributable to Aimco common stockholders — diluted Weighted average number of common shares, common share equivalents and dilutive preferred securities outstanding(8): Common shares and equivalents(9) Dilutive preferred securities Total Proforma FFO attributable to Aimco common stockholders — diluted Weighted average number of common shares, common share equivalents and dilutive preferred securities outstanding(8): Common shares and equivalents(9) Dilutive preferred securities Total Notes: 115,563 89,827 97,055 457 1,490 — 115,563 91,317 97,512 115,563 89,827 97,055 580 1,490 — 115,563 91,317 97,635 (1) Represents the numerator for calculating basic earnings per common share in accordance with GAAP (see Note 14 to the consolidated financial statements in Item 8). (2) “Noncontrolling partners” refers to noncontrolling partners in our consolidated real estate partnerships. 35 Table of Contents (3) Prior to adoption of SFAS 160 (see Note 2 to the consolidated financial statements in Item 8), we recognized deficit distributions to noncontrolling partners as charges in our income statement when cash was distributed to a noncontrolling partner in a consolidated partnership in excess of the positive balance in such partner’s noncontrolling interest balance. We recorded these charges for GAAP purposes even though there was no economic effect or cost. Deficit distributions to noncontrolling partners occurred when the fair value of the underlying real estate exceeded its depreciated net book value because the underlying real estate had appreciated or maintained its value. As a result, the recognition of expense for deficit distributions to noncontrolling partners represented, in substance, either (a) our recognition of depreciation previously allocated to the noncontrolling partner or (b) a payment related to the noncontrolling partner’s share of real estate appreciation. Based on White Paper guidance that requires real estate depreciation and gains to be excluded from FFO, we added back deficit distributions and subtracted related recoveries in our reconciliation of net income to FFO. Subsequent to our adoption of SFAS 160, effective January 1, 2009, we may reduce the balance of noncontrolling interests below zero in such situations and we are no longer required to recognize such charges in our income statement. (4) During the years ended December 31, 2009, 2008 and 2007, the Aimco Operating Partnership had 6,534,140, 7,191,199, and 7,367,400 common OP Units outstanding and 2,344,719, 2,367,629 and 2,379,084 High Performance Units outstanding. (5) Amounts allocable to participating securities represent dividends declared and any amounts of undistributed earnings allocable to participating securities. See Note 2 and Note 14 to the consolidated financial statements in Item 8 for further information regarding participating securities. (6) On October 1, 2003, NAREIT clarified its definition of FFO to include operating real estate impairment losses, which previously had been added back to calculate FFO. Although Aimco’s presentation conforms with the NAREIT definition, Aimco considers such approach to be inconsistent with the treatment of gains on dispositions of operating real estate, which are not included in FFO. (7) In accordance with the Securities and Exchange Commission’s July 31, 2003 interpretation of the Emerging Issues Task Force Topic D-42, Aimco includes preferred stock redemption related charges or gains in FFO. As a result, FFO for the years ended December 31, 2009, 2008 and 2007 includes redemption discounts, net of issuance costs, of $1.6 million and $1.5 million and a redemption premium of $2.6 million, respectively. (8) Weighted average common shares, common share equivalents, dilutive preferred securities for each of the periods presented above have been adjusted for our application during the fourth quarter 2009 of a change in GAAP, which requires the shares issued in our special dividends paid in 2008 and January 2009 to be treated as issued and outstanding on the dividend payment dates for basic purposes and as potential share equivalents for the periods between the ex-dividend dates and the payment dates for diluted purposes, rather than treating the shares as issued and outstanding as of the beginning of the earliest period presented for both basic and diluted purposes. The change in accounting treatment had no effect on diluted weighted average shares outstanding for the year ended December 31, 2009. The change in accounting treatment reduced diluted weighted average shares outstanding by 32.7 million and 46.5 million for the years ended December 31, 2008 and 2007, respectively. (9) Represents the denominator for earnings per common share — diluted, calculated in accordance with GAAP, plus common share equivalents that are dilutive for FFO. Liquidity and Capital Resources Liquidity is the ability to meet present and future financial obligations. Our primary source of liquidity is cash flow from our operations. Additional sources are proceeds from property sales and proceeds from refinancings of existing property loans and borrowings under new property loans. Our principal uses for liquidity include normal operating activities, payments of principal and interest on outstanding debt, capital additions, dividends paid to stockholders and distributions paid to noncontrolling interest partners, repurchases of shares of our Common Stock, and acquisitions of, and investments in, properties. We use our cash and cash equivalents and our cash provided by operating activities to meet short-term liquidity needs. In the event that our cash and cash equivalents and cash provided by operating activities are not sufficient to cover our 36 Table of Contents short-term liquidity demands, we have additional means, such as short-term borrowing availability and proceeds from property sales and refinancings, to help us meet our short-term liquidity demands. We may use our revolving credit facility for general corporate purposes and to fund investments on an interim basis. We expect to meet our long-term liquidity requirements, such as debt maturities and property acquisitions, through long-term borrowings, primarily secured, the issuance of equity securities (including OP Units), the sale of properties and cash generated from operations. The state of credit markets and related effect on the overall economy may have an adverse affect on our liquidity, both through increases in interest rates and credit risk spreads, and access to financing. As further discussed in Item 7A, Quantitative and Qualitative Disclosures About Market Risk, we are subject to interest rate risk associated with certain variable rate liabilities, preferred stock and assets. Based on our net variable rate liabilities, preferred stock and assets outstanding at December 31, 2009, we estimate that a 1.0% increase in 30-day LIBOR with constant credit risk spreads would reduce our income attributable to Aimco common stockholders by approximately $1.5 million on an annual basis. Although base interest rates have generally decreased relative to their levels prior to the disruptions in the financial markets, the tightening of credit markets has affected the credit risk spreads charged over base interest rates on, and the availability of, property loan financing. For future refinancing activities, our liquidity and cost of funds may be affected by increases in base interest rates or higher credit risk spreads. If timely property financing options are not available for maturing debt, we may consider alternative sources of liquidity, such as reductions in certain capital spending or proceeds from asset dispositions. As further discussed in Note 2 to our consolidated financial statements in Item 8, we use total rate of return swaps as a financing product to lower our cost of borrowing through conversion of fixed rate tax-exempt bonds payable and fixed rate notes payable to variable interest rates indexed to the SIFMA rate for tax-exempt bonds payable and the 30-day LIBOR rate for notes payable, plus a credit risk spread. The cost of financing through these arrangements is generally lower than the fixed rate on the debt. As of December 31, 2009, we had total rate of return swap positions with two financial institutions with notional amounts totaling $353.1 million. Swaps with notional amounts of $307.9 million and $45.2 million had maturity dates in May 2012 and October 2012, respectively. The total rate of return swaps require specified loan-to-value ratios. In the event the values of the real estate properties serving as collateral under these agreements decline or if we sell properties in the collateral pool with low loan-to-value ratios, certain of our consolidated subsidiaries have an obligation to pay down the debt or provide additional collateral pursuant to the swap agreements, which may adversely affect our cash flows. The obligation to provide collateral is limited to these subsidiaries and is non-recourse to Aimco. At December 31, 2009, these subsidiaries were not required to provide cash collateral based on the loan-to-value ratios of the real estate properties serving as collateral under these agreements. We periodically evaluate counterparty credit risk associated with these arrangements. At the current time, we have concluded we do not have material exposure. In the event a counterparty were to default under these arrangements, loss of the net interest benefit we generally receive under these arrangements, which is equal to the difference between the fixed rate we receive and the variable rate we pay, may adversely affect our operating cash flows. See Derivative Financial Instruments in Note 2 to the consolidated financial statements in Item 8 for additional discussion of these arrangements, including the current swap maturity dates. As of December 31, 2009, the amount available under our $180.0 million revolving credit facility was $136.2 million (after giving effect to $43.8 million outstanding for undrawn letters of credit). Our total outstanding term loan of $90.0 million at December 31, 2009, matures in March 2011. We repaid an additional $45.0 million on the term loan through February 26, 2010, leaving a remaining outstanding balance of $45.0 million. Additionally, we have limited obligations to fund redevelopment commitments during the year ending December 31, 2010, and no development commitments. At December 31, 2009, we had $81.3 million in cash and cash equivalents, a decrease of $218.4 million from December 31, 2008. At December 31, 2009, we had $220.0 million of restricted cash, primarily consisting of reserves and escrows held by lenders for bond sinking funds, capital additions, property taxes and insurance. In addition, cash, cash equivalents and restricted cash are held by partnerships that are not presented on a consolidated 37 Table of Contents basis. The following discussion relates to changes in cash due to operating, investing and financing activities, which are presented in our consolidated statements of cash flows in Item 8. Operating Activities For the year ended December 31, 2009, our net cash provided by operating activities of $233.8 million was primarily related to operating income from our consolidated properties, which is affected primarily by rental rates, occupancy levels and operating expenses related to our portfolio of properties, in excess of payments of operating accounts payable and accrued liabilities, including amounts related to our organizational restructuring. Cash provided by operating activities decreased $206.6 million compared with the year ended December 31, 2008, primarily due to a $159.3 million decrease in operating income related to consolidated properties included in discontinued operations, which was attributable to property sales in 2009 and 2008, a $42.8 million decrease in promote income, which is generated by the disposition of properties by consolidated real estate partnerships, and an increase in payments on operating accounts payable and accrued expenses, including payments related to our restructuring accrual, in 2009 as compared to 2008. Investing Activities For the year ended December 31, 2009, our net cash provided by investing activities of $630.3 million consisted primarily of proceeds from disposition of real estate and partnership interests, partially offset by capital expenditures. Although we hold all of our properties for investment, we sell properties when they do not meet our investment criteria or are located in areas that we believe do not justify our continued investment when compared to alternative uses for our capital. During the year ended December 31, 2009, we sold 89 consolidated properties. These properties were sold for an aggregate sales price of $1.3 billion, or $1.2 billion, after the payment of transaction costs and debt prepayment penalties. The $1.2 billion is inclusive of promote income and debt assumed by buyers. Net cash proceeds from property sales were used primarily to repay term debt and for other corporate purposes. Capital Additions We classify all capital additions as Capital Replacements (which we refer to as CR), Capital Improvements (which we refer to as CI), casualties or redevelopment. Additions other than casualty or redevelopment capital additions are apportioned between CR and CI based on the useful life of the capital item under consideration and the period we have owned the property. CR represents the share of capital additions that are deemed to replace the portion of acquired capital assets that was consumed during the period we have owned the asset. CI represents the share of additions that are made to enhance the value, profitability or useful life of an asset as compared to its original purchase condition. CR and CI exclude capital additions for casualties and redevelopment. Casualty additions represent capitalized costs incurred in connection with casualty losses and are associated with the restoration of the asset. A portion of the restoration costs may be reimbursed by insurance carriers subject to deductibles associated with each loss. Redevelopment additions represent additions that substantially upgrade the property. 38 Table of Contents The table below details our share of actual spending, on both consolidated and unconsolidated real estate partnerships, for CR, CI, casualties and redevelopment for the year ended December 31, 2009, on a per unit and total dollar basis (in thousands, except per unit amounts). Per unit numbers for CR and CI are based on approximately 97,196 average units for the year, including 81,135 conventional units and 16,061 affordable units. Average units are weighted for the portion of the period that we owned an interest in the property, represent ownership-adjusted effective units, and exclude non-managed units. Aimco’s Share of Additions Per Effective Unit Capital Replacements Detail: Building and grounds Turnover related Capitalized site payroll and indirect costs Our share of Capital Replacements Capital Replacements: Conventional Affordable Our share of Capital Replacements Capital Improvements: Conventional Affordable Our share of Capital Improvements Casualties: Conventional Affordable Our share of casualties Redevelopment: Conventional projects Tax credit projects(1) Our share of redevelopment Our share of capital additions Plus noncontrolling partners’ share of consolidated additions Less our share of unconsolidated additions Total capital additions 338 312 73 723 797 347 723 587 358 549 $ $ $ $ 32,876 $ 30,298 7,076 70,250 $ 64,675 $ 5,575 $ 70,250 $ 47,634 $ 5,755 $ 53,389 $ 17,724 1,872 19,596 66,768 46,066 112,834 256,069 20,062 (687 ) 275,444 (1) Redevelopment additions on tax credit projects are substantially funded from tax credit investor contributions. Included in the above additions for CI, casualties and redevelopment, was approximately $34.6 million of our share of capitalized site payroll and indirect costs related to these activities for the year ended December 31, 2009. We generally fund capital additions with cash provided by operating activities, working capital and property sales as discussed below. Financing Activities For the year ended December 31, 2009, net cash used in financing activities of $1.1 billion was primarily attributed to debt principal payments, dividends paid to common and preferred stockholders and distributions to noncontrolling interests, partially offset by proceeds from property loans. 39 Table of Contents Property Debt At December 31, 2009 and 2008, we had $5.6 billion and $6.3 billion, respectively, in consolidated property debt outstanding, which included $29.2 million and $759.3 million, respectively, of property debt classified within liabilities related to assets held for sale. During the year ended December 31, 2009, we refinanced or closed property loans on 55 properties generating $788.1 million of proceeds from borrowings with a weighted average interest rate of 5.78%. Our share of the net proceeds after repayment of existing debt, payment of transaction costs and distributions to limited partners, was $132.3 million. We used these total net proceeds for capital expenditures and other corporate purposes. We intend to continue to refinance property debt primarily as a means of extending current and near term maturities and to finance certain capital projects. Term Loans and Credit Facility We have an Amended and Restated Senior Secured Credit Agreement, as amended, with a syndicate of financial institutions, which we refer to as the Credit Agreement. As of December 31, 2009, the Credit Agreement consisted of aggregate commitments of $270.0 million, comprised of our $90.0 million outstanding balance on the term loan and $180.0 million of revolving loan commitments. The term loan bears interest at LIBOR plus 1.5%, or at our option, a base rate equal to the prime rate, and matures March 2011. Borrowings under the revolving credit facility bear interest based on a pricing grid determined by leverage (either at LIBOR plus 4.25% with a LIBOR floor of 2.00% or, at our option, a base rate equal to the Prime rate plus a spread of 3.00%). The revolving credit facility matures May 1, 2011, and may be extended for an additional year, subject to certain conditions, including payment of a 45.0 basis point fee on the total revolving commitments and repayment of the remaining term loan balance by February 1, 2011. At December 31, 2009, the term loan had an outstanding principal balance of $90.0 million and an interest rate of 1.73%. We repaid $45.0 million on the term loan through February 26, 2010, leaving a remaining outstanding balance of $45.0 million. At December 31, 2009, we had no outstanding borrowings under the revolving credit facility. The amount available under the revolving credit facility at December 31, 2009, was $136.2 million (after giving effect to $43.8 million outstanding for undrawn letters of credit issued under the revolving credit facility). The proceeds of revolving loans are generally permitted to be used to fund working capital and for other corporate purposes. Fair Value Measurements We have entered into total rate of return swaps on various fixed rate secured tax-exempt bonds payable and fixed rate notes payable to convert these borrowings from a fixed rate to a variable rate and provide an efficient financing product to lower our cost of borrowing. We designate total rate of return swaps as hedges of the risk of overall changes in the fair value of the underlying borrowings. At each reporting period, we estimate the fair value of these borrowings and the total rate of return swaps and recognize any changes therein as an adjustment of interest expense. Our method used to calculate the fair value of the total rate of return swaps generally results in changes in fair value that are equal to the changes in fair value of the related borrowings, which is consistent with our hedging strategy. We believe that these financial instruments are highly effective in offsetting the changes in fair value of the related borrowings during the hedging period, and accordingly, changes in the fair value of these instruments have no material impact on our liquidity, results of operations or capital resources. During the year ended December 31, 2009, changes in the fair values of these financial instruments resulted in increases of $5.2 million in the carrying amount of the hedged borrowings and equal decreases in accrued liabilities and other for total rate of return swaps. At December 31, 2009, the cumulative recognized changes in the fair value of these financial instruments resulted in a $24.3 million reduction in the carrying amount of the hedged borrowings offset by an equal increase in accrued liabilities and other for total rate of return swaps. The cumulative changes in the fair values of the hedged borrowings and related swaps reflect the recent uncertainty in the credit markets which has decreased demand and increased pricing for similar debt instruments. 40 Table of Contents During the year ended December 31, 2009, we received net cash receipts of $19.4 million under the total return swaps, which positively affected our liquidity. To the extent interest rates increase above the fixed rates on the underlying borrowings, our obligations under the total return swaps will negatively affect our liquidity. At December 31, 2009, we were not required to provide cash collateral pursuant to the total rate of return swaps. In the event the values of the real estate properties serving as collateral under these agreements decline, we may be required to provide additional collateral pursuant to the swap agreements, which would adversely affect our liquidity. See Note 2 to the consolidated financial statements in Item 8 for more information on our total rate of return swaps and related borrowings. Equity Transactions During the year ended December 31, 2009, we paid cash dividends or distributions totaling $52.2 million, $95.3 million and $28.5 million to preferred stockholders, common stockholders and noncontrolling interests in the Aimco Operating Partnership, respectively. Additionally, we paid dividends totaling $149.0 million to common stockholders through the issuance of approximately 15.5 million shares. During the year ended December 31, 2009, we paid distributions of $91.9 million to noncontrolling interests in consolidated real estate partnerships. During the year ended December 31, 2009, we repurchased 12 shares, or $6.0 million in liquidation preference, of CRA Preferred Stock for $4.2 million. We and the Aimco Operating Partnership have a shelf registration statement that provides for the issuance of debt and equity securities by Aimco and debt securities by the Aimco Operating Partnership. Contractual Obligations This table summarizes information contained elsewhere in this Annual Report regarding payments due under contractual obligations and commitments as of December 31, 2009 (amounts in thousands): Total Less than One Year 1-3 Years 3-5 Years More than 5 Years Scheduled long-term debt maturities(1) Scheduled long-term debt maturities related to properties classified as held for sale(1) Term loan(1)(2) Redevelopment and other construction commitments Leases for space occupied(3) Other obligations(4) Total $ 5,600,310 $ 105,294 $ 660,733 $ 868,615 $ 3,965,668 29,177 90,000 519 — 11,206 90,000 868 — 16,584 — 4,795 24,888 4,605 — 4,859 — $ 5,753,775 $ 122,558 $ 772,795 $ 874,342 — 10,856 — 4,795 7,345 4,605 — 1,828 — $ 3,984,080 (1) Scheduled debt maturities presented above include amortization and the maturities in 2010 consist primarily of amortization. The scheduled maturities presented above exclude related interest amounts. Refer to Note 6 in the consolidated financial statements in Item 8 for a description of average interest rates associated with our debt. (2) After payments of $45.0 million through February 26, 2010, the term loan had an outstanding balance of $45.0 million. (3) Inclusive of leased space that has been abandoned as part of our organizational restructuring in 2008 (see Restructuring Costs in Note 3 to the consolidated financial statements in Item 8). (4) Represents a commitment to fund $4.6 million in second mortgage loans on certain properties in West Harlem, New York City. In addition to the amounts presented in the table above, at December 31, 2009, we had $690.5 million of outstanding preferred stock outstanding with annual dividend yields ranging from 1.5% (variable) to 9.4%, and 41 Table of Contents $85.7 million of preferred units of the Aimco Operating Partnership outstanding with annual distribution yields ranging from 5.9% to 9.5%. Additionally, we may enter into commitments to purchase goods and services in connection with the operations of our properties. Those commitments generally have terms of one year or less and reflect expenditure levels comparable to our historical expenditures. Future Capital Needs In addition to the items set forth in “Contractual Obligations” above, we expect to fund any future acquisitions, additional redevelopment projects, capital improvements and capital replacement principally with proceeds from property sales (including tax-free exchange proceeds), short-term borrowings, debt and equity financing (including tax credit equity) and operating cash flows. Off-Balance Sheet Arrangements We own general and limited partner interests in unconsolidated real estate partnerships, in which our total ownership interests typically range from less than 1% to 50% and in some instances may exceed 50%. There are no lines of credit, side agreements, or any other derivative financial instruments related to or between our unconsolidated real estate partnerships and us and no material exposure to financial guarantees. Accordingly, our maximum risk of loss related to these unconsolidated real estate partnerships is limited to the aggregate carrying amount of our investment in the unconsolidated real estate partnerships and any outstanding notes receivable as reported in our consolidated financial statements (see Note 4 of the consolidated financial statements in Item 8 for additional information about our investments in unconsolidated real estate partnerships). Item 7A. Quantitative and Qualitative Disclosures About Market Risk Our primary market risk exposure relates to changes in base interest rates, credit risk spreads and availability of credit. We are not subject to any other material market rate or price risks. We use predominantly long-term, fixed-rate non-recourse property debt in order to avoid the refunding and repricing risks of short-term borrowings. We use short- term debt financing and working capital primarily to fund short-term uses and acquisitions and generally expect to refinance such borrowings with cash from operating activities, property sales proceeds, long-term debt or equity financings. We use total rate-of-return swaps to obtain the benefit of variable rates on certain of our fixed rate debt instruments. We make limited use of other derivative financial instruments and we do not use them for trading or other speculative purposes. We had $654.6 million of floating rate debt and $67.0 million of floating rate preferred stock outstanding at December 31, 2009. Of the total floating rate debt, the major components were floating rate tax-exempt bond financing ($433.9 million), floating rate secured notes ($122.2 million) and a term loan ($90.0 million). At December 31, 2009, we had approximately $440.9 million in cash and cash equivalents, restricted cash and notes receivable, the majority of which bear interest. The effect of our interest-bearing assets would partially reduce the effect of an increase in variable interest rates. Historically, changes in tax-exempt interest rates have been at a ratio of less than 1:1 with changes in taxable interest rates. Floating rate tax-exempt bond financing is benchmarked against the SIFMA rate, which since 1989 has averaged 73% of the 30-day LIBOR rate. If the historical relationship continues, on an annual basis, we estimate that an increase in 30-day LIBOR of 100 basis points (73 basis points for tax-exempt interest rates) with constant credit risk spreads would result in net income and our net income attributable to Aimco common stockholders being reduced by $1.1 million and $1.5 million, respectively. We estimate the fair value for our debt instruments using present value techniques that include income and market valuation approaches with market rates for debt with the same or similar terms. Present value calculations vary depending on the assumptions used, including the discount rate and estimates of future cash flows. In many cases, the fair value estimates may not be realizable in immediate settlement of the instruments. The estimated aggregate fair value of our consolidated debt (including amounts reported in liabilities related to assets held for sale) was approximately $5.7 billion and $6.7 billion at December 31, 2009 and 2008, respectively. The combined carrying value of our consolidated debt (including amounts reported in liabilities related to assets held for sale) was approximately $5.7 billion and $6.8 billion at December 31, 2009 and 2008, respectively. See Note 6 and Note 7 to 42 Table of Contents the consolidated financial statements in Item 8 for further details on our consolidated debt. Refer to Derivative Financial Instruments in Note 2 to the consolidated financial statements in Item 8 for further discussion regarding certain of our fixed rate debt that is subject to total rate of return swap instruments. If market rates for our fixed-rate debt were higher by 100 basis points with constant credit risk spreads, the estimated fair value of our debt discussed above would have decreased from $5.7 billion to $5.4 billion. If market rates for our debt discussed above were lower by 100 basis points with constant credit risk spreads, the estimated fair value of our fixed-rate debt would have increased from $5.7 billion to $6.1 billion. At December 31, 2009, we had swap positions with two financial institutions totaling $353.1 million. The related swap agreements provide for collateral calls to maintain specified loan-to-value ratios. In the event the values of the real estate properties serving as collateral under these agreements decline, we may be required to provide additional collateral pursuant to the swap agreements, which would adversely affect our cash flows. At December 31, 2009, we were not required to provide cash collateral based on the loan-to-value ratios of the real estate properties serving as collateral under these agreements. Item 8. Financial Statements and Supplementary Data The independent registered public accounting firm’s report, consolidated financial statements and schedule listed in the accompanying index are filed as part of this report and incorporated herein by this reference. See “Index to Financial Statements” on page F-1 of this Annual Report. Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure None. Item 9A. Controls and Procedures Disclosure Controls and Procedures Our management, with the participation of our chief executive officer and chief financial officer, has evaluated the effectiveness of our disclosure controls and procedures (as 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, our chief executive officer and chief financial officer have concluded that, as of the end of such period, our disclosure controls and procedures are effective. Management’s Report on Internal Control Over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act as a process designed by, or under the supervision of, our principal executive and principal financial officers and effected by our Board of Directors, management and other personnel 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 and includes those policies and procedures that: • pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets; • provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of our management and directors; and • provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risks that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 43 Table of Contents Management assessed the effectiveness of our internal control over financial reporting as of December 31, 2009. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework. Based on their assessment, management concluded that, as of December 31, 2009, our internal control over financial reporting is effective. Our independent registered public accounting firm has issued an attestation report on our internal control over financial reporting. Changes in Internal Control over Financial Reporting There has been no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fourth quarter of 2009 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. 44 Table of Contents Report of Independent Registered Public Accounting Firm Stockholders and Board of Directors Apartment Investment and Management Company We have audited Apartment Investment and Management Company’s (the “Company”) internal control over financial reporting as of December 31, 2009, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO criteria). The Company’s management is responsible for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2009, based on the COSO criteria. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of the Company as of December 31, 2009 and 2008, and the related consolidated statements of income, equity, and cash flows for each of the three years in the period ended December 31, 2009, and our report dated February 26, 2010 expressed an unqualified opinion thereon. Denver, Colorado February 26, 2010 /s/ ERNST & YOUNG LLP 45 Table of Contents Item 9B. Other Information None. PART III Item 10. Directors, Executive Officers and Corporate Governance The information required by this item is presented under the captions “Board of Directors and Executive Officers,” “Corporate Governance Matters — Code of Ethics,” “Other Matters — Section 16(a) Beneficial Ownership Reporting Compliance,” “Corporate Governance Matters — Nominating and Corporate Governance Committee,” “Corporate Governance Matters — Audit Committee” and “Corporate Governance Matters — Audit Committee Financial Expert” in the proxy statement for our 2010 annual meeting of stockholders and is incorporated herein by reference. Item 11. Executive Compensation The information required by this item is presented under the captions “Compensation Discussion & Analysis,” “Compensation and Human Resources Committee Report to Stockholders,” “Summary Compensation Table,” “Grants of Plan-Based Awards in 2009,” “Outstanding Equity Awards at Fiscal Year End 2009,” “Option Exercises and Stock Vested in 2009,” “Potential Payments Upon Termination or Change in Control” and “Corporate Governance Matters — Director Compensation” in the proxy statement for our 2010 annual meeting of stockholders and is incorporated herein by reference. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters The information required by this item is presented under the captions “Security Ownership of Certain Beneficial Owners and Management” and “Securities Authorized for Issuance Under Equity Compensation Plans” in the proxy statement for our 2010 annual meeting of stockholders and is incorporated herein by reference. Item 13. Certain Relationships and Related Transactions, and Director Independence The information required by this item is presented under the caption “Certain Relationships and Related Transactions” and “Corporate Governance Matters — Independence of Directors” in the proxy statement for our 2010 annual meeting of stockholders and is incorporated herein by reference. Item 14. Principal Accountant Fees and Services The information required by this item is presented under the caption “Principal Accountant Fees and Services” in the proxy statement for our 2010 annual meeting of stockholders and is incorporated herein by reference. 46 Table of Contents Item 15. Exhibits and Financial Statement Schedules PART IV (a)(1) The financial statements listed in the Index to Financial Statements on Page F-1 of this report are filed as part of this report and incorporated herein by reference. (a)(2) The financial statement schedule listed in the Index to Financial Statements on Page F-1 of this report is filed as part of this report and incorporated herein by reference. (a)(3) The Exhibit Index is incorporated herein by reference. Exhibit No. INDEX TO EXHIBITS (1)(2) Description 3 .1 3 .2 10 .1 10 .2 10 .3 10 .4 10 .5 10 .6 10 .7 Charter (Exhibit 3.1 to Aimco’s Annual Report on Form 10-K for the year ended December 31, 2008, is incorporated herein by this reference) Amended and Restated Bylaws (Exhibit 3.2 to Aimco’s Current Report on Form 8-K dated February 4, 2010, is incorporated herein by this reference) Fourth Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of July 29, 1994, as amended and restated as of February 28, 2007 (Exhibit 10.1 to Aimco’s Annual Report on Form 10-K for the year ended December 31, 2006, is incorporated herein by this reference) First Amendment to Fourth Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of December 31, 2007 (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated December 31, 2007, is incorporated herein by this reference) Second Amendment to the Fourth Amended and Restated Agreement of Limited Partnership of AIMCO Properties, L.P., dated as of July 30, 2009 (Exhibit 10.1 to Aimco’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009, is incorporated herein by this reference) Amended and Restated Secured Credit Agreement, dated as of November 2, 2004, by and among Aimco, AIMCO Properties, L.P., AIMCO/Bethesda Holdings, Inc., and NHP Management Company as the borrowers and Bank of America, N.A., Keybank National Association, and the Lenders listed therein (Exhibit 4.1 to Aimco’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2004, is incorporated herein by this reference) First Amendment to Amended and Restated Secured Credit Agreement, dated as of June 16, 2005, by and among Aimco, AIMCO Properties, L.P., AIMCO/Bethesda Holdings, Inc., and NHP Management Company as the borrowers and Bank of America, N.A., Keybank National Association, and the Lenders listed therein (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated June 16, 2005, is incorporated herein by this reference) Second Amendment to Amended and Restated Senior Secured Credit Agreement, dated as of March 22, 2006, by and among Aimco, AIMCO Properties, L.P., and AIMCO/Bethesda Holdings, Inc., as the borrowers, and Bank of America, N.A., Keybank National Association, and the lenders listed therein (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated March 22, 2006, is incorporated herein by this reference) Third Amendment to Senior Secured Credit Agreement, dated as of August 31, 2007, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., and AIMCO/Bethesda Holdings, Inc., as the Borrowers, the pledgors and guarantors named therein, Bank of America, N.A., as administrative agent and Bank of America, N.A., Keybank National Association and the other lenders listed therein (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated August 31, 2007, is incorporated herein by this reference) 47 Table of Contents Exhibit No. Description 10 .8 10 .9 10 .10 10 .11 10 .12 10 .13 10 .14 10 .15 10 .16 10 .17 10 .18 Fourth Amendment to Senior Secured Credit Agreement, dated as of September 14, 2007, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., and AIMCO/Bethesda Holdings, Inc., as the Borrowers, the pledgors and guarantors named therein, Bank of America, N.A., as administrative agent and Bank of America, N.A., Keybank National Association and the other lenders listed therein (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated September 14, 2007, is incorporated herein by this reference) Fifth Amendment to Senior Secured Credit Agreement, dated as of September 9, 2008, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., and AIMCO/Bethesda Holdings, Inc., as the Borrowers, the pledgors and guarantors named therein, Bank of America, N.A., as administrative agent and Bank of America, N.A., Keybank National Association and the other lenders listed therein (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated September 11, 2008, is incorporated herein by this reference) Sixth Amendment to Senior Secured Credit Agreement, dated as of May 1, 2009, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., and AIMCO/Bethesda Holdings, Inc., as the Borrowers, the pledgors and guarantors named therein, Bank of America, N.A., as administrative agent and Bank of America, N.A., Keybank National Association and the other lenders listed therein (Exhibit 10.1 to Aimco’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2009, is incorporated herein by this reference) Seventh Amendment to Senior Secured Credit Agreement, dated as of August 4, 2009, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., and AIMCO/Bethesda Holdings, Inc., as the Borrowers, the pledgors and guarantors named therein and the lenders party thereto (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated August 6, 2009, is incorporated herein by this reference) Eighth Amendment to Senior Secured Credit Agreement, dated as of February 3, 2010, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., and AIMCO/Bethesda Holdings, Inc., as the Borrowers, the pledgors and guarantors named therein and the lenders party thereto (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated February 5, 2010, is incorporated herein by this reference) Master Indemnification Agreement, dated December 3, 2001, by and among Apartment Investment and Management Company, AIMCO Properties, L.P., XYZ Holdings LLC, and the other parties signatory thereto (Exhibit 2.3 to Aimco’s Current Report on Form 8-K, dated December 6, 2001, is incorporated herein by this reference) Tax Indemnification and Contest Agreement, dated December 3, 2001, by and among Apartment Investment and Management Company, National Partnership Investments, Corp., and XYZ Holdings LLC and the other parties signatory thereto (Exhibit 2.4 to Aimco’s Current Report on Form 8-K, dated December 6, 2001, is incorporated herein by this reference) Limited Liability Company Agreement of AIMCO JV Portfolio #1, LLC dated as of December 30, 2003 by and among AIMCO BRE I, LLC, AIMCO BRE II, LLC and SRV-AJVP#1, LLC (Exhibit 10.54 to Aimco’s Annual Report on Form 10-K for the year ended December 31, 2003, is incorporated herein by this reference) Employment Contract executed on December 29, 2008, by and between AIMCO Properties, L.P. and Terry Considine (Exhibit 10.1 to Aimco’s Current Report on Form 8-K, dated December 29, 2008, is incorporated herein by this reference)* Apartment Investment and Management Company 1997 Stock Award and Incentive Plan (October 1999) (Exhibit 10.26 to Aimco’s Annual Report on Form 10-K for the year ended December 31, 1999, is incorporated herein by this reference)* Form of Restricted Stock Agreement (1997 Stock Award and Incentive Plan) (Exhibit 10.11 to Aimco’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 1997, is incorporated herein by this reference)* 48 Table of Contents Exhibit No. Description 10 .19 10 .20 10 .21 10 .22 10 .23 Form of Incentive Stock Option Agreement (1997 Stock Award and Incentive Plan) (Exhibit 10.42 to Aimco’s Annual Report on Form 10-K for the year ended December 31, 1998, is incorporated herein by this reference)* 2007 Stock Award and Incentive Plan (incorporated by reference to Appendix A to Aimco’s Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on March 20, 2007)* Form of Restricted Stock Agreement (Exhibit 10.2 to Aimco’s Current Report on Form 8-K, dated April 30, 2007, is incorporated herein by this reference)* Form of Non-Qualified Stock Option Agreement (Exhibit 10.3 to Aimco’s Current Report on Form 8-K, dated April 30, 2007, is incorporated herein by this reference)* 2007 Employee Stock Purchase Plan (incorporated by reference to Appendix B to Aimco’s Proxy Statement on Schedule 14A filed with the Securities and Exchange Commission on March 20, 2007)* 21 .1 List of Subsidiaries 23 .1 Consent of Independent Registered Public Accounting Firm 31 .1 Certification of Chief Executive Officer pursuant to Securities Exchange Act Rules 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Certification of Chief Financial Officer pursuant to Securities Exchange Act Rules 13a-14(a)/15d-14(a), as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 31 .2 32 .1 32 .2 99 .1 Agreement re: disclosure of long-term debt instruments (1) Schedule and supplemental materials to the exhibits have been omitted but will be provided to the Securities and Exchange Commission upon request. (2) The file reference number for all exhibits is 001-13232, and all such exhibits remain available pursuant to the Records Control Schedule of the Securities and Exchange Commission. * Management contract or compensatory plan or arrangement 49 Table of Contents 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. SIGNATURES APARTMENT INVESTMENT AND MANAGEMENT COMPANY By: /s/ TERRY CONSIDINE Terry Considine Chairman of the Board and Chief Executive Officer 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 Date: February 26, 2010 /s/ TERRY CONSIDINE Terry Considine /s/ ERNEST M. FREEDMAN Ernest M. Freedman /s/ PAUL BELDIN Paul Beldin /s/ JAMES N. BAILEY James N. Bailey /s/ RICHARD S. ELLWOOD Richard S. Ellwood /s/ THOMAS L. KELTNER Thomas L. Keltner /s/ J. LANDIS MARTIN J. Landis Martin /s/ ROBERT A. MILLER Robert A. Miller /s/ MICHAEL A. STEIN Michael A. Stein Chairman of the Board and Chief Executive Officer (principal executive officer) Executive Vice President and Chief Financial Officer (principal financial officer) Senior Vice President and Chief Accounting Officer (principal accounting officer) February 26, 2010 February 26, 2010 February 26, 2010 Director February 26, 2010 Director February 26, 2010 Director February 26, 2010 Director February 26, 2010 Director February 26, 2010 Director February 26, 2010 50 Table of Contents (This page intentionally left blank) APARTMENT INVESTMENT AND MANAGEMENT COMPANY INDEX TO FINANCIAL STATEMENTS Financial Statements: Report of Independent Registered Public Accounting Firm Consolidated Balance Sheets as of December 31, 2009 and 2008 Consolidated Statements of Income for the Years Ended December 31, 2009, 2008 (as restated) and 2007 Consolidated Statements of Equity for the Years Ended December 31, 2009, 2008 and 2007 Consolidated Statements of Cash Flows for the Years Ended December 31, 2009, 2008 and 2007 Notes to Consolidated Financial Statements Financial Statement Schedule: Schedule III — Real Estate and Accumulated Depreciation All other schedules are omitted because they are not applicable or the required information is shown in the financial statements or notes thereto. Page F-2 F-3 F-4 F-5 F-6 F-8 F-53 F-1 Table of Contents REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM Stockholders and Board of Directors Apartment Investment and Management Company We have audited the accompanying consolidated balance sheets of Apartment Investment and Management Company (the “Company”) as of December 31, 2009 and 2008, and the related consolidated statements of income, equity and cash flows for each of the three years in the period ended December 31, 2009. Our audits also included the financial statement schedule listed in the accompanying Index to Financial Statements. These financial statements and schedule are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements and schedule based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Company at December 31, 2009 and 2008, and the consolidated results of its operations and its cash flows for each of the three years in the period ended December 31, 2009, in conformity with United States generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements taken as a whole, presents fairly, in all material respects the information set forth therein. The consolidated financial statements include retroactive adjustments to reflect the adoption in 2009 of Statement of Financial Accounting Standards No. 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment to ARB 51 (codified in FASB ASC 810), Statement of Financial Accounting Standards No. 141(R), Business Combinations — a replacement of FASB Statement No 141 (codified in FASB ASC 805), FASB Staff Position No. EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities (codified in FASB ASC 260), and FASB Accounting Standards Update No. 2010-01, Accounting for Distributions to Shareholders with Components of Stock and Cash (codified in FASB ASC 505). Further, the Company retrospectively adjusted the 2008 and 2007 consolidated financial statements to reflect real estate assets that meet the definition of a component and have been sold or meet the criteria to be classified as held for sale at December 31, 2009 pursuant to Statement of Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long- Lived Assets (codified in FASB ASC 360), through December 31, 2009. As discussed in Note 2 to the consolidated financial statements, the consolidated statement of income for the year ended December 31, 2008 has been restated to reclassify provisions for impairment losses on real estate development assets into operating income. We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company’s internal control over financial reporting as of December 31, 2009, based on criteria established in Internal Control — Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 26, 2010 expressed an unqualified opinion thereon. Denver, Colorado February 26, 2010 /s/ ERNST & YOUNG LLP F-2 Table of Contents APARTMENT INVESTMENT AND MANAGEMENT COMPANY CONSOLIDATED BALANCE SHEETS As of December 31, 2009 and 2008 (In thousands, except share data) ASSETS Real estate: Buildings and improvements Land Total real estate Less accumulated depreciation Net real estate Cash and cash equivalents Restricted cash Accounts receivable, net Accounts receivable from affiliates, net Deferred financing costs, net Notes receivable from unconsolidated real estate partnerships, net Notes receivable from non-affiliates, net Investment in unconsolidated real estate partnerships Other assets Deferred income tax assets, net Assets held for sale Total assets LIABILITIES AND EQUITY Property tax-exempt bond financing Property loans payable Term loans Other borrowings Total indebtedness Accounts payable Accrued liabilities and other Deferred income Security deposits Liabilities related to assets held for sale Total liabilities Preferred noncontrolling interests in Aimco Operating Partnership Preferred stock subject to repurchase agreement (Note 11) Commitments and contingencies (Note 8) Equity: 2009 2008 $ 7,479,480 2,183,927 9,663,407 (2,701,046 ) 6,962,361 81,260 220,037 59,822 23,744 52,725 14,295 125,269 105,324 185,890 42,015 33,726 $ 7,906,468 $ 574,926 4,972,327 90,000 53,057 5,690,310 29,819 286,328 182,485 35,764 30,403 6,255,109 86,656 30,000 — $ 7,278,734 2,167,574 9,446,308 (2,320,671 ) 7,125,637 299,676 253,315 90,318 38,978 51,568 22,567 139,897 119,036 198,713 28,326 1,073,839 $ 9,441,870 $ 629,499 4,944,324 400,000 95,981 6,069,804 64,241 569,996 193,810 37,244 771,878 7,706,973 88,148 — — Perpetual Preferred Stock (Note 11) Class A Common Stock, $0.01 par value, 426,157,736 shares authorized, 116,479,791 and 660,500 696,500 100,631,881 shares issued and outstanding, at December 31, 2009 and 2008, respectively Additional paid-in capital Accumulated other comprehensive loss Notes due on common stock purchases Distributions in excess of earnings Total Aimco equity Noncontrolling interests in consolidated real estate partnerships Common noncontrolling interests in Aimco Operating Partnership Total equity Total liabilities and equity 1,165 3,072,665 (1,138 ) (1,392 ) (2,492,082 ) 1,239,718 316,177 (21,192 ) 1,534,703 $ 7,906,468 1,006 2,910,002 (2,249 ) (3,607 ) (2,335,628 ) 1,266,024 380,725 — 1,646,749 $ 9,441,870 See notes to consolidated financial statements. F-3 Table of Contents APARTMENT INVESTMENT AND MANAGEMENT COMPANY CONSOLIDATED STATEMENTS OF INCOME For the Years Ended December 31, 2009, 2008 and 2007 (In thousands, except per share data) 2009 2008 (as restated see Note 2) 2007 REVENUES: Rental and other property revenues Property management revenues, primarily from affiliates Asset management and tax credit revenues $ 1,140,828 $ 1,137,995 $ 1,093,779 6,923 73,755 6,345 98,830 5,082 49,853 Total revenues 1,195,763 1,243,170 1,174,457 OPERATING EXPENSES: Property operating expenses Property management expenses Investment management expenses Depreciation and amortization Provision for operating real estate impairment losses Provision for impairment losses on real estate development assets General and administrative expenses Other expenses, net Restructuring costs Total operating expenses Operating income Interest income Provision for losses on notes receivable, net Interest expense Equity in losses of unconsolidated real estate partnerships Impairment losses related to unconsolidated real estate partnerships Gain on dispositions of unconsolidated real estate and other Loss before income taxes and discontinued operations Income tax benefit Loss from continuing operations Income from discontinued operations, net Net (loss) income Noncontrolling interests: 521,161 2,869 15,779 444,413 2,329 — 69,567 17,891 11,241 5,385 24,784 526,238 503,890 6,678 20,507 392,999 347,491 1,080 — 90,674 19,338 — — 91,138 99,157 22,568 22,802 1,085,250 1,185,071 989,658 110,513 9,341 (21,549 ) (324,160 ) (12,025 ) (322 ) 22,494 58,099 184,799 43,222 19,914 (2,010 ) (17,577 ) (324,118 ) (313,038 ) (3,347 ) — 24,470 (4,601 ) (2,661 ) 99,864 (215,708 ) 18,671 (171,080 ) 53,202 (65,904 ) 19,795 (197,037 ) 152,237 (117,878 ) (46,109 ) 744,880 171,615 (44,800 ) 627,002 125,506 Net income attributable to noncontrolling interests in consolidated real estate partnerships Net income attributable to preferred noncontrolling interests in Aimco Operating (22,541 ) (155,727 ) (92,165 ) Partnership Net loss (income) attributable to common noncontrolling interests in Aimco Operating Partnership Total noncontrolling interests Net (loss) income attributable to Aimco Net income attributable to Aimco preferred stockholders Net income attributable to participating securities (6,288 ) (7,646 ) (7,128 ) 9,355 (51,622 ) 3,698 (19,474 ) (214,995 ) (95,595 ) (64,274 ) (50,566 ) — 412,007 (53,708 ) (6,985 ) 29,911 (66,016 ) (4,481 ) Net (loss) income attributable to Aimco common stockholders $ (114,840 ) $ 351,314 $ (40,586 ) Earnings (loss) per common share — basic and diluted: Loss from continuing operations attributable to Aimco common stockholders Income from discontinued operations attributable to Aimco common stockholders Net (loss) income attributable to Aimco common stockholders $ (1.75 ) $ 0.75 $ (1.00 ) $ (2.10 ) $ 6.06 3.96 $ (1.41 ) 0.98 (0.43 ) Weighted average common shares outstanding — basic and diluted 114,301 88,690 95,107 Dividends declared per common share $ 0.40 $ 7.48 $ 4.31 See notes to consolidated financial statements. F-4 Table of Contents APARTMENT INVESTMENT AND MANAGEMENT COMPANY CONSOLIDATED STATEMENTS OF EQUITY For the Years Ended December 31, 2009, 2008 and 2007 (In thousands) Accumulated Notes Due Common Stock Preferred Stock Additional Shares Paid-in Shares Issued Amount Issued Amount Capital Other Comprehensive Loss on Common Distributions in Total Aimco Excess of Equity Purchases Earnings Stock Noncontrolling Total Equity Interests Balances at December 31, 2006 Redemption of Preferred Stock and preferred partnership units Cumulative effect of change in accounting principle — adoption of 26,845 $ 823,500 96,820 $ — (1,905 ) (100,000 ) 968 $ 3,095,564 $ 635 — (134 ) $ — (4,714 ) $ — (1,575,292 ) $ 2,339,892 $ (2,635 ) (102,000 ) 310,289 $ 2,650,181 — (102,000 ) FIN 48 — — — — — Redemption of Aimco Operating Partnership units for Common Stock — — Repurchases of Common Stock and common partnership units — Repayment of notes receivable from officers — Officer and employee stock awards and purchases, net Stock options exercised — Amortization of stock option and restricted stock compensation cost — — Issuance of Aimco Operating Partnership units Contributions from noncontrolling interests — Adjustment to noncontrolling interests from VMS transactions — 471 — (7,456 ) — — — 313 — 1,403 — — — — — — 5 27,848 (75 ) (325,747 ) — — 2,555 3 53,705 14 19,224 — — — — — (Note 3) — — — — — Adjustment to noncontrolling interests from consolidation of entities — — — — — Reversal of excess income tax benefits related to stock-based compensation and other Change in accumulated other comprehensive income Net income Common dividends and distributions Preferred Stock dividends — — — — — — — — — — — — — — — — — — — — (751 ) — — — — — — — — — — — — — — — — (550 ) — — — — (764 ) (764 ) (81 ) (845 ) — — 1,659 (2,386 ) — — — — — — — — — — — — 27,853 — (325,822 ) 1,659 — 172 — 53,719 — 19,224 — — — — — (27,810 ) 43 (2,181 ) (328,003 ) 1,659 172 53,719 19,224 2,998 203,552 203,552 — — — — 2,998 — — 62,820 62,820 — — 91,219 91,219 — — 29,911 (751 ) (550 ) 29,911 (406,121 ) (406,121 ) (64,817 ) (64,817 ) — 365 (751 ) (185 ) 88,467 118,378 (252,887 ) (659,008 ) (64,817 ) — Balances at December 31, 2007 24,940 723,500 91,551 915 2,873,033 (684 ) (5,441 ) (2,019,718 ) 1,571,605 476,751 2,048,356 Repurchase of Preferred Stock Redemption of Aimco Operating Partnership units for Common — (27,000 ) — — 678 Stock — — Repurchases of Common Stock and common partnership units — Repayment of notes receivable from officers Officer and employee stock awards and purchases, net — Amortization of stock option and restricted stock compensation cost — — Common Stock issued pursuant to Special Dividend Contributions from noncontrolling interests — Adjustment to noncontrolling interests from consolidation of entities Change in accumulated other comprehensive income Net income Common dividends and distributions Preferred Stock dividends — — — — — — 114 — (13,919 ) — — 106 — — — — 22,780 — — — — — — — — — — — — 1 4,181 (139 ) (473,393 ) — — 651 1 — 17,603 228 487,249 — — — — — — — — — — — 1,482 (24,840 ) — (24,840 ) — — 1,458 376 — — — — 4,182 — (473,532 ) 1,458 — 1,028 — — 17,603 — 487,477 — — (4,182 ) — (3,192 ) (476,724 ) 1,458 — 1,028 — — 17,603 — 487,477 6,854 6,854 — — — — — — — — — — — (1,565 ) — — — — — — — — — — — (1,565 ) 412,007 412,007 (674,185 ) (674,185 ) (55,214 ) (55,214 ) 14,969 190 14,969 (1,375 ) 207,349 619,356 (318,014 ) (992,199 ) (55,214 ) — Balances at December 31, 2008 24,940 696,500 100,632 1,006 2,910,002 (2,249 ) (3,607 ) (2,335,628 ) 1,266,024 380,725 1,646,749 Repurchase of Preferred Stock Reclassification of preferred stock to temporary equity Redemption or Conversion of Aimco Operating Partnership units for Common Stock Repurchases of Common Stock and common partnership units Repayment of notes receivable from officers Common Stock issued pursuant to special dividends Officer and employee stock awards and — (6,000 ) — (30,000 ) — — — — 151 — — — — — 527 — — — — — — 15,548 7,080 5 — — — — 156 148,590 purchases, net — Amortization of stock option and restricted stock compensation cost — Expense for dividends on forfeited shares and other OP Unit distributions Contributions from noncontrolling interests Adjustment to noncontrolling interests from consolidation of entities Change in accumulated other comprehensive income Net income Common dividends and distributions Preferred Stock dividends — — — — — — — — — (227 ) — (2 ) — (1,476 ) 8,007 — — — — — — — — — — — — — — — — — — — — — 311 — — — — — — — — — — — — — — — — — 1,111 — — — — — — — 763 — 1,800 — (4,049 ) (30,000 ) — — (4,049 ) (30,000 ) 7,085 — — — — 763 — 148,746 — (7,085 ) (980 ) (980 ) — 763 — 148,746 1,452 — — — (26 ) 8,007 — — (26 ) 8,007 — — — — — — — 2,917 — 3,228 — (990 ) 5,535 2,238 5,535 — — (64,274 ) (46,202 ) (50,695 ) — 1,111 (64,274 ) (46,202 ) (50,695 ) (1,151 ) (1,151 ) 1,408 297 13,186 (51,088 ) (94,552 ) (140,754 ) (50,695 ) — Balances at December 31, 2009 24,940 $ 660,500 116,480 $ 1,165 $ 3,072,665 $ (1,138 ) $ (1,392 ) $ (2,492,082 ) $ 1,239,718 $ 294,985 $ 1,534,703 See notes to consolidated financial statements. F-5 Table of Contents APARTMENT INVESTMENT AND MANAGEMENT COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2009, 2008 and 2007 (In thousands) CASH FLOWS FROM OPERATING ACTIVITIES: Net (loss) income Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization Equity in losses of unconsolidated real estate partnerships Provision for impairment losses on real estate development assets Provision for operating real estate impairment losses Gain on dispositions of unconsolidated real estate and other Income tax benefit Stock-based compensation expense Amortization of deferred loan costs and other Distributions of earnings from unconsolidated entities Discontinued operations: Depreciation and amortization Gain on disposition of real estate Other adjustments to income from discontinued operations Changes in operating assets and operating liabilities: Accounts receivable Other assets Accounts payable, accrued liabilities and other Total adjustments Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of real estate Capital expenditures Proceeds from dispositions of real estate Change in funds held in escrow from tax-free exchanges Proceeds from sale of interests and distributions from real estate partnerships Purchases of partnership interests and other assets Originations of notes receivable Proceeds from repayment of notes receivable Other investing activities Net cash provided by (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from property loans Principal repayments on property loans Proceeds from tax-exempt bond financing Principal repayments on tax-exempt bond financing (Payments on) borrowings under term loans Net repayments on revolving credit facility Proceeds from (payments on) other borrowings Repurchases and redemptions of preferred stock Repurchases of Class A Common Stock Proceeds from Class A Common Stock option exercises Payment of Class A Common Stock dividends Payment of preferred stock dividends Payment of distributions to noncontrolling interests Other financing activities Net cash used in financing activities NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR 2009 2008 2007 $ (44,800 ) $ 627,002 $ 125,506 444,413 12,025 — 2,329 (22,494 ) (18,671 ) 6,666 10,845 4,893 392,999 4,601 91,138 — (99,864 ) (53,202 ) 13,833 9,950 14,619 347,491 3,347 — 1,080 (24,470 ) (19,795 ) 14,921 7,916 4,239 51,155 (221,793 ) 53,975 122,549 (800,335 ) 67,214 152,446 (117,627 ) (24,063 ) 27,067 2,440 (74,238 ) 278,612 233,812 4,848 57,155 (12,139 ) (186,634 ) 440,368 7,453 (9,751 ) 14,249 357,436 482,942 — (300,344 ) 875,931 — 25,067 (6,842 ) (5,778 ) 5,264 36,956 630,254 (112,655 ) (665,233 ) 2,060,344 345 94,277 (28,121 ) (6,911 ) 8,929 (6,106 ) 1,344,869 772,443 (1,076,318 ) 15,727 (157,862 ) (310,000 ) — (40,085 ) (4,200 ) — — (95,335 ) (52,215 ) (120,361 ) (14,276 ) 949,549 (1,291,543 ) 50,100 (217,361 ) (75,000 ) — 21,367 (24,840 ) (502,296 ) 481 (212,286 ) (55,215 ) (330,582 ) (8,396 ) (201,434 ) (689,719 ) 431,863 25,863 198,998 (86,204 ) (10,812 ) 14,370 45,476 (271,599 ) 1,552,048 (850,484 ) 82,350 (70,029 ) 75,000 (140,000 ) (8,468 ) (102,000 ) (307,382 ) 53,719 (230,806 ) (67,100 ) (198,090 ) (19,464 ) (230,706 ) (1,696,022 ) (1,082,482 ) (19,363 ) 89,215 (218,416 ) 299,676 229,824 210,461 81,260 $ 299,676 $ 210,461 $ See notes to consolidated financial statements. F-6 Table of Contents APARTMENT INVESTMENT AND MANAGEMENT COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 31, 2009, 2008 and 2007 (In thousands) 2009 2008 2007 SUPPLEMENTAL CASH FLOW INFORMATION: Interest paid Cash paid for income taxes Non-cash transactions associated with the acquisition of real estate and interests in unconsolidated real estate partnerships: Secured debt assumed in connection with purchase of real estate Issuance of OP Units for interests in unconsolidated real estate partnerships and acquisitions of real estate Non-cash transactions associated with the disposition of real estate: $ 348,341 $ 434,645 $ 452,324 2,994 13,780 4,560 — — — 16,000 — 2,998 Secured debt assumed in connection with the disposition of real estate Issuance of notes receivable connection with the disposition of real estate 314,265 3,605 157,394 10,372 27,929 — Non-cash transactions associated with consolidation of real estate partnerships: Real estate, net Investments in and notes receivable primarily from affiliated entities Restricted cash and other assets Secured debt Accounts payable, accrued and other liabilities Other non-cash transactions: Redemption of common OP Units for Class A Common Stock Conversion of preferred OP Units for Class A Common Stock (Cancellation) origination of notes receivable from officers for Class A Common Stock purchases, net Common stock issued pursuant to special dividends (Note 11) 6,058 4,326 (1,682 ) 2,031 6,769 25,830 4,497 5,483 22,036 14,020 56,877 84,545 8,545 41,296 48,602 7,085 — 4,182 — 27,810 43 (1,452 ) (148,746 ) (385 ) (487,477 ) 2,386 — See notes to consolidated financial statements. F-7 Table of Contents APARTMENT INVESTMENT AND MANAGEMENT COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS December 31, 2009 NOTE 1 — Organization Apartment Investment and Management Company, or Aimco, is a Maryland corporation incorporated on January 10, 1994. We are a self-administered and self-managed real estate investment trust, or REIT, engaged in the acquisition, ownership, management and redevelopment of apartment properties. As of December 31, 2009, we owned or managed a real estate portfolio of 870 apartment properties containing 135,654 apartment units located in 44 states, the District of Columbia and Puerto Rico. We are one of the largest owners and operators of apartment properties in the United States. As of December 31, 2009, we: • owned an equity interest in and consolidated 95,202 units in 426 properties (which we refer to as “consolidated properties”), of which 93,098 units were also managed by us; • owned an equity interest in and did not consolidate 8,478 units in 77 properties (which we refer to as “unconsolidated properties”), of which 3,594 units were also managed by us; and • provided services for or managed 31,974 units in 367 properties, primarily pursuant to long-term agreements (including 29,879 units in 345 properties for which we provide asset management services only, and not also property management services). In certain cases, we may indirectly own generally less than one percent of the operations of such properties through a partnership syndication or other fund. Through our wholly-owned subsidiaries, AIMCO-GP, Inc. and AIMCO-LP Trust, we own a majority of the ownership interests in AIMCO Properties, L.P., which we refer to as the Aimco Operating Partnership. As of December 31, 2009, we held an interest of approximately 93% in the common partnership units and equivalents of the Aimco Operating Partnership. We conduct substantially all of our business and own substantially all of our assets through the Aimco Operating Partnership. Interests in the Aimco Operating Partnership that are held by limited partners other than Aimco are referred to as “OP Units.” OP Units include common OP Units, partnership preferred units, or preferred OP Units, and high performance partnership units, or High Performance Units. The Aimco Operating Partnership’s income is allocated to holders of common OP Units based on the weighted average number of common OP Units outstanding during the period. The Aimco Operating Partnership records the issuance of common OP Units and the assets acquired in purchase transactions based on the market price of Aimco Class A Common Stock (which we refer to as Common Stock) at the date of closing of the transaction. The holders of the common OP Units and Class I High Performance Units receive distributions, prorated from the date of issuance, in an amount equivalent to the dividends paid to holders of Common Stock. Holders of common OP Units may redeem such units for cash or, at the Aimco Operating Partnership’s option, Common Stock. During 2009, 2008 and 2007, the weighted average ownership interest in the Aimco Operating Partnership held by the common OP Unit holders was approximately 7%, 10% and 9%, respectively. Preferred OP Units entitle the holders thereof to a preference with respect to distributions or upon liquidation. At December 31, 2009, 116,479,791 shares of our Common Stock were outstanding and the Aimco Operating Partnership had 8,374,233 common OP Units and equivalents outstanding for a combined total of 124,854,024 shares of Common Stock and OP Units outstanding (excluding preferred OP Units). Except as the context otherwise requires, “we,” “our,” “us” and the “Company” refer to Aimco, the Aimco Operating Partnership and their consolidated entities, collectively. NOTE 2 — Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of Aimco, the Aimco Operating Partnership, and their consolidated entities. We consolidate all variable interest entities for which we are the primary beneficiary. Generally, we consolidate real estate partnerships and other entities that are not variable F-8 Table of Contents interest entities when we own, directly or indirectly, a majority voting interest in the entity or are otherwise able to control the entity. All significant intercompany balances and transactions have been eliminated in consolidation. Interests in the Aimco Operating Partnership that are held by limited partners other than Aimco are reflected in the accompanying balance sheets as noncontrolling interests in Aimco Operating Partnership. Interests in partnerships consolidated into the Aimco Operating Partnership that are held by third parties are reflected in the accompanying balance sheets as noncontrolling interests in consolidated real estate partnerships. The assets of consolidated real estate partnerships owned or controlled by us generally are not available to pay creditors of Aimco or the Aimco Operating Partnership. As used herein, and except where the context otherwise requires, “partnership” refers to a limited partnership or a limited liability company and “partner” refers to a partner in a limited partnership or a member in a limited liability company. Variable Interest Entities We consolidate all variable interest entities for which we are the primary beneficiary. Generally, a variable interest entity, or VIE, is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group, the holders of the equity investment at risk lack (i) the ability to make decisions about an entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. The primary beneficiary generally is the entity that will receive a majority of the VIE’s expected losses, receive a majority of the VIE’s expected residual returns, or both. In determining whether we are the primary beneficiary of a VIE, we consider qualitative and quantitative factors, including, but not limited to: the amount and characteristics of our investment; the obligation or likelihood for us or other investors to provide financial support; our and the other investors’ ability to control or significantly influence key decisions for the VIE; and the similarity with and significance to the business activities of us and the other investors. Significant judgments related to these determinations include estimates about the current and future fair values and performance of real estate held by these VIEs and general market conditions. As of December 31, 2009, we were the primary beneficiary of, and therefore consolidated, 90 VIEs, which owned 67 apartment properties with 9,652 units. Real estate with a carrying amount of $769.4 million collateralized $474.3 million of debt of those VIEs. The creditors of the consolidated VIEs do not have recourse to our general credit. As of December 31, 2009, we also held variable interests in 120 VIEs for which we were not the primary beneficiary. Those VIEs consist primarily of partnerships that are engaged, directly or indirectly, in the ownership and management of 172 apartment properties with 9,566 units. We are involved with those VIEs as an equity holder, lender, management agent, or through other contractual relationships. At December 31, 2009, our maximum exposure to loss as a result of our involvement with unconsolidated VIEs is limited to our recorded investments in and receivables from those VIEs totaling $107.5 million and our contractual obligation to advance funds to certain VIEs totaling $4.6 million. We may be subject to additional losses to the extent of any financial support that we voluntarily provide in the future. Additionally, the provision of financial support in the future may require us to consolidate a VIE. In December 2009, the FASB issued Accounting Standards Update 2009-17, Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities, or ASU 2009-17, which is effective for fiscal years beginning after November 15, 2009. ASU 2009-17, which modifies the guidance in FASB ASC Topic 810, introduces a more qualitative approach to evaluating VIEs for consolidation and requires a company to perform an analysis to determine whether its variable interests give it a controlling financial interest in a VIE. This analysis identifies the primary beneficiary of a VIE as the entity that has (a) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (b) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. In determining whether it has the power to direct the activities of the VIE that most significantly affect the VIE’s performance, ASU 2009-17 requires a company to F-9 Table of Contents assess whether it has an implicit financial responsibility to ensure that a VIE operates as designed, requires continuous reassessment of primary beneficiary status rather than periodic, event-driven assessments as previously required, and incorporates expanded disclosure requirements. Our adoption of ASU 2009-17 during 2010 may result in changes in our conclusions regarding whether we are required to consolidate certain unconsolidated real estate partnerships that are VIEs. As of December 31, 2009, in addition to the unconsolidated VIEs discussed above, we held insignificant partnership interests in VIEs that own approximately 250 properties. We hold general and/or limited partner interests generally ranging from less than 1% to 5% and our recorded investment in these entities is typically limited to accounts receivable from our provision of property management and asset management services to these partnerships. We may be required to consolidate some of these VIEs if we conclude that we control the activities that are significant to the VIEs’ economic performance. Additionally, we may be required to deconsolidate certain VIEs that we currently consolidate if we conclude we do not control the activities that are significant to such VIEs’ economic performance. We have not yet completed our evaluation of ASU 2009-17 and therefore have not determined the effect our adoption of ASU 2009-17 will have on our consolidated financial statements. Acquisition of Real Estate Assets and Related Depreciation and Amortization We capitalize the purchase price and incremental direct costs associated with the acquisition of properties as the cost of the assets acquired. We allocate the cost of acquired properties to tangible assets and identified intangible assets based on their fair values. We determine the fair value of tangible assets, such as land, building, furniture, fixtures and equipment, on an “as-if vacant” basis, generally using internal valuation techniques that consider comparable market transactions, discounted cash flow techniques, replacement costs and other available information. We determine the fair value of identified intangible assets (or liabilities), which typically relate to in-place leases, using internal valuation techniques that consider the terms of the in-place leases, current market data for comparable leases, and our experience in leasing similar properties. The intangible assets or liabilities related to in-place leases are comprised of: 1. The value of the above- and below-market leases in-place. An asset or liability is recognized based on the difference between (a) the contractual amounts to be paid pursuant to the in-place leases and (b) our estimate of fair market lease rates for the corresponding in-place leases, measured over the period, including estimated lease renewals for below-market leases, that the leases are expected to remain in effect. 2. The estimated unamortized portion of avoided leasing commissions and other costs that ordinarily would be incurred to acquire the in-place leases. 3. The value associated with vacant units during the absorption period (estimates of lost rental revenue during the expected lease-up periods based on current market demand and stabilized occupancy levels). The values of the above- and below-market leases are amortized to rental revenue over the expected remaining terms of the associated leases. Other intangible assets related to in-place leases are amortized to depreciation and amortization over the expected remaining terms of the associated leases. Amortization is adjusted, as necessary, to reflect any early lease terminations that were not anticipated in determining amortization periods. Depreciation for all tangible real estate assets is calculated using the straight-line method over their estimated useful lives. Acquired buildings and improvements are depreciated over a composite life of 14 to 52 years, based on the age, condition and other physical characteristics of the property. As discussed under Impairment of Long Lived Assets below, we may adjust depreciation of properties that are expected to be disposed of or demolished prior to the end of their useful lives. Furniture, fixtures and equipment associated with acquired properties are depreciated over five years. At December 31, 2009 and 2008, deferred income in our consolidated balance sheets includes below-market lease amounts totaling $31.8 million and $36.2 million, respectively, which are net of accumulated amortization of $21.0 million and $16.6 million, respectively. Additions to below-market leases resulting from acquisitions during the year ended December 31, 2007 totaled $18.9 million, and there were no such additions during the years ended December 31, 2009 or 2008. During the years ended December 31, 2009, 2008 and 2007, we included amortization of below-market leases of $4.4 million, $4.4 million and $4.6 million, respectively, in rental and other property F-10 Table of Contents revenues in our consolidated statements of income. During the year ended December 31, 2008, we revised the estimated fair value of assets acquired and liabilities assumed in acquisitions completed in 2007, resulting in a $4.7 million reduction of below-market lease values and a corresponding reduction in buildings and improvements. At December 31, 2009, our below-market leases had a weighted average amortization period of 7.1 years and estimated aggregate amortization for each of the five succeeding years as follows (in millions): Estimated amortization Capital Additions and Related Depreciation 2010 $ 3.9 2011 $ 3.6 2012 $ 3.2 2013 $ 2.8 2014 $ 2.5 We capitalize costs, including certain indirect costs, incurred in connection with our capital additions activities, including redevelopment and construction projects, other tangible property improvements, and replacements of existing property components. Included in these capitalized costs are payroll costs associated with time spent by site employees in connection with the planning, execution and control of all capital additions activities at the property level. We characterize as “indirect costs” an allocation of certain department costs, including payroll, at the area operations and corporate levels that clearly relate to capital additions activities. We capitalize interest, property taxes and insurance during periods in which redevelopment and construction projects are in progress. We charge to expense as incurred costs that do not relate to capital expenditure activities, including ordinary repairs, maintenance, resident turnover costs and general and administrative expenses. We depreciate capitalized costs using the straight-line method over the estimated useful life of the related component or improvement, which is generally five, 15 or 30 years. All capitalized site payroll and indirect costs are allocated proportionately, based on direct costs, among capital projects and depreciated over the estimated useful lives of such projects. Certain homogeneous items that are purchased in bulk on a recurring basis, such as carpeting and appliances, are depreciated using group methods that reflect the average estimated useful life of the items in each group. Except in the case of property casualties, where the net book value of lost property is written off in the determination of casualty gains or losses, we generally do not recognize any loss in connection with the replacement of an existing property component because normal replacements are considered in determining the estimated useful lives used in connection with our composite and group depreciation methods. For the years ended December 31, 2009, 2008 and 2007, for continuing and discontinued operations, we capitalized $9.8 million, $25.7 million and $30.8 million, respectively, of interest costs, and $40.0 million, $78.1 million and $78.1 million, respectively, of site payroll and indirect costs, respectively. Impairment of Long-Lived Assets Our real estate and other long-lived assets classified as held for use are stated at cost, less accumulated depreciation and amortization, unless the carrying amounts are not recoverable. If events or circumstances indicate that the carrying amount of a property may not be recoverable, we make an assessment of its recoverability by comparing the carrying amount to our estimate of the undiscounted future cash flows, excluding interest charges, of the property. If the carrying amount exceeds the aggregate undiscounted future cash flows, we recognize an impairment loss to the extent the carrying amount exceeds the estimated fair value of the property. In connection with the preparation of our 2008 annual financial statements, we assessed the recoverability of our investment in our Lincoln Place property, located in Venice, California. Based upon the declines in land values in Southern California during 2008 and the expected timing of our redevelopment efforts, we determined that the total carrying amount of the property was no longer probable of full recovery and, accordingly, during the three months ended December 31, 2008, recognized an impairment loss of $85.4 million ($55.6 million net of tax). Similarly, we assessed the recoverability of our investment in Pacific Bay Vistas (formerly Treetops), a vacant property located in San Bruno, California, and determined that the carrying amount of the property was no longer probable of full recovery and, accordingly, we recognized an impairment loss of $5.7 million for this property during the three months ended December 31, 2008. F-11 Table of Contents In addition to the impairments of Lincoln Place and Pacific Bay Vistas, based on periodic tests of recoverability of long-lived assets, for the years ended December 31, 2009 and 2007, we recorded real estate impairment losses of $2.3 million and $1.1 million, respectively, related to properties classified as held for use. For the year ended December 31, 2008, we recorded no similar impairment losses related to properties classified as held for use. We report impairment losses or recoveries related to properties sold or classified as held for sale in discontinued operations. Our tests of recoverability address real estate assets that do not currently meet all conditions to be classified as held for sale, but are expected to be disposed of prior to the end of their estimated useful lives. If an impairment loss is not required to be recorded, the recognition of depreciation is adjusted prospectively, as necessary, to reduce the carrying amount of the real estate to its estimated disposition value over the remaining period that the real estate is expected to be held and used. We also may adjust depreciation prospectively to reduce to zero the carrying amount of buildings that we plan to demolish in connection with a redevelopment project. These depreciation adjustments, after adjustments for noncontrolling interests, decreased net income available to Aimco common stockholders by $18.3 million, $10.7 million and $33.8 million, and resulted in decreases in basic and diluted earnings per share of $0.16, $0.12 and $0.35, for the years ended December 31, 2009, 2008 and 2007, respectively. Cash Equivalents We classify highly liquid investments with an original maturity of three months or less as cash equivalents. Restricted Cash Restricted cash includes capital replacement reserves, completion repair reserves, bond sinking fund amounts and tax and insurance escrow accounts held by lenders. Accounts Receivable and Allowance for Doubtful Accounts Accounts receivable are generally comprised of amounts receivable from residents, amounts receivable from non- affiliated real estate partnerships for which we provide property management and other services and other miscellaneous receivables from non-affiliated entities. We evaluate collectibility of accounts receivable from residents and establish an allowance, after the application of security deposits and other anticipated recoveries, for accounts greater than 30 days past due for current residents and all receivables due from former residents. Accounts receivable from residents are stated net of allowances for doubtful accounts of approximately $1.4 million and $3.3 million as of December 31, 2009 and 2008, respectively. We evaluate collectibility of accounts receivable from non-affiliated entities and establish an allowance for amounts that are considered to be uncollectible. Accounts receivable relating to non-affiliated entities are stated net of allowances for doubtful accounts of approximately $5.4 million and $5.0 million as of December 31, 2009 and 2008, respectively. Accounts Receivable and Allowance for Doubtful Accounts from Affiliates Accounts receivable from affiliates are generally comprised of receivables related to property management and other services provided to unconsolidated real estate partnerships in which we have an ownership interest. We evaluate collectibility of accounts receivable balances from affiliates on a periodic basis, and establish an allowance for the amounts deemed to be uncollectible. Accounts receivable from affiliates are stated net of allowances for doubtful accounts of approximately $1.9 million and $2.8 million as of December 31, 2009 and 2008, respectively. Deferred Costs We defer lender fees and other direct costs incurred in obtaining new financing and amortize the amounts over the terms of the related loan agreements. Amortization of these costs is included in interest expense. F-12 Table of Contents We defer leasing commissions and other direct costs incurred in connection with successful leasing efforts and amortize the costs over the terms of the related leases. Amortization of these costs is included in depreciation and amortization. Notes Receivable from Unconsolidated Real Estate Partnerships and Non-Affiliates and Related Interest Income and Provision for Losses Notes receivable from unconsolidated real estate partnerships consist primarily of notes receivable from partnerships in which we are the general partner but do not consolidate the partnership. The ultimate repayment of these notes and those from non-affiliates is subject to a number of variables, including the performance and value of the underlying real estate property and the claims of unaffiliated mortgage lenders. Our notes receivable include loans extended by us that we carry at the face amount plus accrued interest, which we refer to as “par value notes,” and loans extended by predecessors whose positions we generally acquired at a discount, which we refer to as “discounted notes.” We record interest income on par value notes as earned in accordance with the terms of the related loan agreements. We discontinue the accrual of interest on such notes when the notes are impaired, as discussed below, or when there is otherwise significant uncertainty as to the collection of interest. We record income on such nonaccrual loans using the cost recovery method, under which we apply cash receipts first to the recorded amount of the loan; thereafter, any additional receipts are recognized as income. We recognize interest income on discounted notes receivable based upon whether the amount and timing of collections are both probable and reasonably estimable. We consider collections to be probable and reasonably estimable when the borrower has closed or entered into certain pending transactions (which include real estate sales, refinancings, foreclosures and rights offerings) that provide a reliable source of repayment. In such instances, we recognize accretion income, on a prospective basis using the effective interest method over the estimated remaining term of the loans, equal to the difference between the carrying amount of the discounted notes and the estimated collectible value. We record income on all other discounted notes using the cost recovery method. We assess the collectibility of notes receivable on a periodic basis, which assessment consists primarily of an evaluation of cash flow projections of the borrower to determine whether estimated cash flows are sufficient to repay principal and interest in accordance with the contractual terms of the note. We recognize impairments on notes receivable when it is probable that principal and interest will not be received in accordance with the contractual terms of the loan. The amount of the impairment to be recognized generally is based on the fair value of the partnership’s real estate that represents the primary source of loan repayment. In certain instances where other sources of cash flow are available to repay the loan, the impairment is measured by discounting the estimated cash flows at the loan’s original effective interest rate. See Note 5 for further discussion of Notes Receivable. Investments in Unconsolidated Real Estate Partnerships We own general and limited partner interests in real estate partnerships that own apartment properties. We generally account for investments in real estate partnerships that we do not consolidate under the equity method. Under the equity method, our share of the earnings or losses of the entity for the periods being presented is included in equity in earnings (losses) from unconsolidated real estate partnerships, except for our share of impairments and property disposition gains related to such entities, which we report separately in the consolidated statements of income. Certain investments in real estate partnerships that were acquired in business combinations were determined to have insignificant value at the acquisition date and are accounted for under the cost method. Any distributions received from such partnerships are recognized as income when received. The excess of the cost of the acquired partnership interests over the historical carrying amount of partners’ equity or deficit is ascribed generally to the fair values of land and buildings owned by the partnerships. We amortize the excess cost related to the buildings over the estimated useful lives of the buildings. Such amortization is recorded as a component of equity in earnings (losses) of unconsolidated real estate partnerships. F-13 Table of Contents Intangible Assets At December 31, 2009 and 2008, other assets included goodwill associated with our real estate segment of $71.8 million and $81.9 million, respectively. We perform an annual impairment test of goodwill that compares the fair value of reporting units with their carrying amounts, including goodwill. We determined that our goodwill was not impaired in 2009, 2008 or 2007. During the year ended December 31, 2009, we allocated $10.1 million of goodwill related to our real estate segment to the carrying amounts of the properties sold or classified as held for sale. The amounts of goodwill allocated to these properties were based on the relative fair values of the properties sold or classified as held for sale and the retained portions of the reporting units to which the goodwill as allocated. During 2008 and 2007, we did not allocate any goodwill to properties sold or classified as held for sale as real estate properties were not considered businesses under then applicable accounting principles generally accepted in the United States of America, or GAAP. Other assets also includes intangible assets for purchased management contracts with finite lives that we amortize on a straight-line basis over terms ranging from five to 20 years and intangible assets for in-place leases as discussed under Acquisition of Real Estate Assets and Related Depreciation and Amortization. Capitalized Software Costs Purchased software and other costs related to software developed for internal use are capitalized during the application development stage and are amortized using the straight-line method over the estimated useful life of the software, generally five years. We write-off the costs of software development projects when it is no longer probable that the software will be completed and placed in service. For the years ended December 31, 2009, 2008 and 2007, we capitalized software development costs totaling $5.6 million, $20.9 million and $11.9 million, respectively. At December 31, 2009 and 2008, other assets included $29.7 million and $35.7 million of net capitalized software, respectively. During the years ended December 31, 2009, 2008 and 2007, we recognized amortization of capitalized software of $11.5 million, $10.0 million and $10.8 million, respectively, which is included in depreciation and amortization in our consolidated statements of income. During the year ended December 31, 2008, we reassessed our approach to communication technology needs at our properties, which resulted in the discontinuation of an infrastructure project and a $5.4 million write-off of related hardware and capitalized internal and consulting costs included in other assets. The write-off, which is net of sales proceeds, is included in other expenses, net. During the year ended December 31, 2008, we additionally recorded a $1.6 million write-off of certain software and hardware assets that are no longer consistent with our information technology strategy. This write-off is included in depreciation and amortization. During the year ended December 31, 2007, we abandoned certain internal-use software development projects and recorded a $4.2 million write-off of the capitalized costs of such projects in depreciation and amortization. There were no similar write-offs during the year ended December 31, 2009. Noncontrolling Interests in Consolidated Real Estate Partnerships We report the unaffiliated partners’ interests in our consolidated real estate partnerships as noncontrolling interests in consolidated real estate partnerships. Noncontrolling interests in consolidated real estate partnerships represent the noncontrolling partners’ share of the underlying net assets of our consolidated real estate partnerships. Prior to 2009, when these consolidated real estate partnerships made cash distributions to partners in excess of the carrying amount of the noncontrolling interest, we generally recorded a charge equal to the amount of such excess distribution, even though there was no economic effect or cost. These charges are reported in the consolidated statements of income for the years ended December 31, 2008 and 2007 within noncontrolling interests in consolidated real estate partnerships. Also prior to 2009, we allocated the noncontrolling partners’ share of partnership losses to noncontrolling partners to the extent of the carrying amount of the noncontrolling interest. We generally recorded a charge when the noncontrolling partners’ share of partnership losses exceed the carrying amount of the noncontrolling interest, even though there is no economic effect or cost. These charges are reported in the consolidated statements of income within noncontrolling interests in consolidated real estate partnerships. We did not record charges for distributions or losses in certain limited instances where the noncontrolling partner had a F-14 Table of Contents legal obligation and financial capacity to contribute additional capital to the partnership. For the years ended December 31, 2008 and 2007, we recorded charges for partnership losses resulting from depreciation of approximately $9.0 million and $12.2 million, respectively that were not allocated to noncontrolling partners because the losses exceeded the carrying amount of the noncontrolling interest. Noncontrolling interests in consolidated real estate partnerships consist primarily of equity interests held by limited partners in consolidated real estate partnerships that have finite lives. The terms of the related partnership agreements generally require the partnership to be liquidated following the sale of the partnership’s real estate. As the general partner in these partnerships, we ordinarily control the execution of real estate sales and other events that could lead to the liquidation, redemption or other settlement of noncontrolling interests. The aggregate carrying amount of noncontrolling interests in consolidated real estate partnerships is approximately $316.2 million at December 31, 2009. The aggregate fair value of these interests varies based on the fair value of the real estate owned by the partnerships. Based on the number of classes of finite-life noncontrolling interests, the number of properties in which there is direct or indirect noncontrolling ownership, complexities in determining the allocation of liquidation proceeds among partners and other factors, we believe it is impracticable to determine the total required payments to the noncontrolling interests in an assumed liquidation at December 31, 2009. As a result of real estate depreciation that is recognized in our financial statements and appreciation in the fair value of real estate that is not recognized in our financial statements, we believe that the aggregate fair value of our noncontrolling interests exceeds their aggregate carrying amount. As a result of our ability to control real estate sales and other events that require payment of noncontrolling interests and our expectation that proceeds from real estate sales will be sufficient to liquidate related noncontrolling interests, we anticipate that the eventual liquidation of these noncontrolling interests will not have an adverse impact on our financial condition. Revenue Recognition Our properties have operating leases with apartment residents with terms generally of 12 months or less. We recognize rental revenue related to these leases, net of any concessions, on a straight-line basis over the term of the lease. We recognize revenues from property management, asset management, syndication and other services when the related fees are earned and are realized or realizable. Advertising Costs We generally expense all advertising costs as incurred to property operating expense. For the years ended December 31, 2009, 2008 and 2007, for both continuing and discontinued operations, total advertising expense was $25.0 million, $36.0 million and $38.0 million, respectively. Insurance We believe that our insurance coverages insure our properties adequately against the risk of loss attributable to fire, earthquake, hurricane, tornado, flood, and other perils. In addition, we have insurance coverage for substantial portions of our property, workers’ compensation, health, and general liability exposures. Losses are accrued based upon our estimates of the aggregate liability for uninsured losses incurred using certain actuarial assumptions followed in the insurance industry and based on our experience. Stock-Based Compensation We recognize all stock-based employee compensation, including grants of employee stock options, in the consolidated financial statements based on the grant date fair value and recognize compensation cost, which is net of estimates for expected forfeitures, ratably over the awards’ requisite service period. See Note 12 for further discussion of our stock-based compensation. Tax Credit Arrangements We sponsor certain partnerships that own and operate apartment properties that qualify for tax credits under Section 42 of the Internal Revenue Code of 1986, as amended, which we refer to as the Code, and for the U.S. Department of Housing and Urban Development, or HUD, subsidized rents under HUD’s Section 8 program. F-15 Table of Contents These partnerships acquire, develop and operate qualifying affordable housing properties and are structured to provide for the pass-through of tax credits and deductions to their partners. The tax credits are generally realized ratably over the first ten years of the tax credit arrangement and are subject to the partnership’s compliance with applicable laws and regulations for a period of 15 years. Typically, we are the general partner with a legal ownership interest of one percent or less. We market limited partner interests of at least 99 percent to unaffiliated institutional investors (which we refer to as tax credit investors or investors) and receive a syndication fee from each investor upon such investor’s admission to the partnership. At inception, each investor agrees to fund capital contributions to the partnerships. We agree to perform various services to the partnerships in exchange for fees over the expected duration of the tax credit service period. The related partnership agreements generally require adjustment of each tax credit investor’s required capital contributions if actual tax benefits to such investor differ from projected amounts. We have determined that the partnerships in these arrangements are variable interest entities and, where we are general partner, we are generally the primary beneficiary that is required to consolidate the partnerships. When the contractual arrangements obligate us to deliver tax benefits to the investors, and entitle us through fee arrangements to receive substantially all available cash flow from the partnerships, we account for these partnerships as wholly owned subsidiaries. Capital contributions received by the partnerships from tax credit investors represent, in substance, consideration that we receive in exchange for our obligation to deliver tax credits and other tax benefits to the investors, and the receipts are recognized as revenue in our consolidated financial statements when our obligation to the investors is relieved upon delivery of the expected tax benefits. In summary, our accounting treatment recognizes the income or loss generated by the underlying real estate based on our economic interest in the partnerships. Proceeds received in exchange for the transfer of the tax credits are recognized as revenue proportionately as the tax benefits are delivered to the tax credit investors and our obligation is relieved. Syndication fees and related costs are recognized in income upon completion of the syndication effort. We recognize syndication fees in amounts determined based on a market rate analysis of fees for comparable services, which generally fell within a range of 10% to 15% of investor contributions during the periods presented. Other direct and incremental costs incurred in structuring these arrangements are deferred and amortized over the expected duration of the arrangement in proportion to the recognition of related income. Investor contributions in excess of recognized revenue are reported as deferred income in our consolidated balance sheets. During the years ended December 31, 2008 and 2007, we recognized syndication fee income of $3.4 million and $13.8 million, respectively. We recognized no syndication fee income during the year ended December 31, 2009. During the years ended December 31, 2009, 2008 and 2007 we recognized revenue associated with the delivery of tax benefits of $36.6 million, $29.4 million and $24.0 million, respectively. At December 31, 2009 and 2008, $148.1 million and $159.6 million, respectively, of investor contributions in excess of the recognized revenue were included in deferred income in our consolidated balance sheets. Discontinued Operations We classify certain properties and related assets and liabilities as held for sale when they meet certain criteria. The operating results of such properties as well as those properties sold during the periods presented are included in discontinued operations in both current periods and all comparable periods presented. Depreciation is not recorded on properties once they have been classified as held for sale; however, depreciation expense recorded prior to classification as held for sale is included in discontinued operations. The net gain on sale and any impairment losses are presented in discontinued operations when recognized. See Note 13 for additional information regarding discontinued operations. Derivative Financial Instruments We primarily use long-term, fixed-rate and self-amortizing non-recourse debt to avoid, among other things, risk related to fluctuating interest rates. For our variable rate debt, we are sometimes required by our lenders to limit our exposure to interest rate fluctuations by entering into interest rate swap or cap agreements. The interest rate swap agreements moderate our exposure to interest rate risk by effectively converting the interest on variable rate debt to a fixed rate. The interest rate cap agreements effectively limit our exposure to interest rate risk by providing a F-16 Table of Contents ceiling on the underlying variable interest rate. The fair values of the interest rate swaps are reflected as assets or liabilities in the balance sheet, and periodic changes in fair value are included in interest expense or equity, as appropriate. These interest rate caps are not material to our financial position or results of operations. As of December 31, 2009 and 2008, we had interest rate swaps with aggregate notional amounts of $52.3 million and $27.2 million, and recorded fair values of $1.6 million and $2.6 million, respectively, reflected in accrued liabilities and other in our consolidated balance sheets. At December 31, 2009, these interest rate swaps had a weighted average term of 11.1 years. We have designated these interest rate swaps as cash flow hedges and recognize any changes in their fair value as an adjustment of accumulated other comprehensive income within equity to the extent of their effectiveness. For the year ended December 31, 2009, we recognized changes in fair value of $1.0 million, of which $1.4 million resulted in an adjustment to accumulated other comprehensive loss within consolidated equity. For the year ended December 31, 2008, we recognized changes in fair value of $2.2 million, of which $2.1 million resulted in an adjustment to accumulated other comprehensive loss within consolidated equity. We recognized $0.4 million and less than $0.1 million of ineffectiveness as an adjustment of interest expense during the years ended December 31, 2009 and 2008, respectively, and we recognized no ineffectiveness during the year ended December 31, 2007. Our consolidated comprehensive loss for the year ended December 31, 2009 totaled $43.4 million and our comprehensive income for the years ended December 31, 2008 and 2007, totaled $624.9 million and $124.8 million, respectively, before the effects of noncontrolling interests. If the forward rates at December 31, 2009 remain constant, we estimate that during the next twelve months, we would reclassify into earnings approximately $1.5 million of the unrealized losses in accumulated other comprehensive income. We have entered into total rate of return swaps on various fixed rate secured tax-exempt bonds payable and fixed rate notes payable to convert these borrowings from a fixed rate to a variable rate and provide an efficient financing product to lower our cost of borrowing. In exchange for our receipt of a fixed rate generally equal to the underlying borrowing’s interest rate, the total rate of return swaps require that we pay a variable rate, equivalent to the Securities Industry and Financial Markets Association Municipal Swap Index, or SIFMA, rate for tax-exempt bonds payable and the 30-day LIBOR rate for notes payable, plus a risk spread. These swaps generally have a second or third lien on the property collateralized by the related borrowings and the obligations under certain of these swaps are cross- collateralized with certain of the other swaps with a particular counterparty. The underlying borrowings are generally callable at our option, with no prepayment penalty, with 30 days advance notice, and the swaps generally have a term of less than five years. The total rate of return swaps have a contractually defined termination value generally equal to the difference between the fair value and the counterparty’s purchased value of the underlying borrowings, which may require payment by us or to us for such difference. Accordingly, we believe fluctuations in the fair value of the borrowings from the inception of the hedging relationship generally will be offset by a corresponding fluctuation in the fair value of the total rate of return swaps. We designate total rate of return swaps as hedges of the risk of overall changes in the fair value of the underlying borrowings. At each reporting period, we estimate the fair value of these borrowings and the total rate of return swaps and recognize any changes therein as an adjustment of interest expense. We evaluate the effectiveness of these fair value hedges at the end of each reporting period and recognize an adjustment of interest expense as a result of any ineffectiveness. Borrowings payable subject to total rate of return swaps with aggregate outstanding principal balances of $352.7 million and $421.7 million at December 31, 2009 and 2008, respectively, are reflected as variable rate borrowings in Note 6. Due to changes in the estimated fair values of these debt instruments and the corresponding total rate of return swaps, we increased property loans payable by $5.2 million for the year ended December 31, 2009, and reduced property loans payable by $20.1 million and $9.4 million for the years ended December 31, 2008 and 2007, respectively, with offsetting adjustments to accrued liabilities, resulting in no net effect on net income. Refer to Fair Value Measurements for further discussion of fair value measurements related to these arrangements. During 2009, 2008 and 2007, we determined these hedges were fully effective and accordingly we made no adjustments to interest expense for ineffectiveness. At December 31, 2009, the weighted average fixed receive rate under the total return swaps was 6.8% and the weighted average variable pay rate was 1.0%, based on the applicable SIFMA and 30-day LIBOR rates effective as F-17 Table of Contents of that date. Further information related to our total return swaps as of December 31, 2009 is as follows (dollars in millions): Debt Principal $ 45.2 24.0 14.2 42.8 93.0 108.7 12.3 12.5 $ 352.7 Year of Debt Maturity Weighted Average Debt Interest Rate Swap Notional Amount 2012 2015 2018 2025 2031 2036 2038 2048 7.5 % 6.9 % 7.3 % 7.0 % 7.4 % 6.2 % 5.5 % 6.5 % $ $ 45.2 24.0 14.2 42.8 93.0 109.1 12.3 12.5 353.1 Fair Value Measurements Swap Maturity Date 2012 2012 2012 2012 2012 2012 2012 2012 Weighted Average Swap Variable Pay Rate at December 31, 2009 1.6 % 1.0 % 1.0 % 1.0 % 1.0 % 0.7 % 0.9 % 0.9 % Beginning in 2008, we applied the FASB’s revised accounting provisions related to fair value measurements, which are codified in FASB ASC Topic 820. These revised provisions define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, establish a hierarchy that prioritizes the information used in developing fair value estimates and require disclosure of fair value measurements by level within the fair value hierarchy. The hierarchy gives the highest priority to quoted prices in active markets (Level 1 measurements) and the lowest priority to unobservable data (Level 3 measurements), such as the reporting entity’s own data. We adopted the revised fair value measurement provisions that apply to recurring and nonrecurring fair value measurements of financial assets and liabilities effective January 1, 2008, and the provisions that apply to the remaining fair value measurements effective January 1, 2009, and at those times determined no transition adjustments were required. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date and includes three levels defined as follows: Level 1 — Level 2 — Unadjusted quoted prices for identical and unrestricted assets or liabilities in active markets Quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument Level 3 — Unobservable inputs that are significant to the fair value measurement A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Following are descriptions of the valuation methodologies used for our significant assets or liabilities measured at fair value on a recurring or nonrecurring basis. Although some of the valuation methodologies use observable market inputs in limited instances, the majority of inputs we use are unobservable and are therefore classified within Level 3 of the valuation hierarchy. Provisions for Real Estate Impairment Losses If events or circumstances indicate that the carrying amount of a property may not be recoverable, we make an assessment of its recoverability by comparing the carrying amount to our estimate of the undiscounted future cash flows, excluding interest charges, of the property. If the carrying amount exceeds the aggregate undiscounted future cash flows, we recognize an impairment loss to the extent the carrying amount exceeds the F-18 Table of Contents estimated fair value of the property, for properties classified as held for use, and estimated fair value of the property, less estimated selling costs, for properties classified as held for sale. We estimate the fair value of real estate using income and market valuation techniques using information such as broker estimates, purchase prices for recent transactions on comparable assets and net operating income capitalization analyses using observable and unobservable inputs such as capitalization rates, asset quality grading, geographic location analysis, and local supply and demand observations. For certain properties classified as held for sale, we may also recognize the impairment loss based on the contract sale price, which we believe is representative of fair value, less estimated selling costs. Notes Receivable We assess the collectibility of notes receivable on a periodic basis, which assessment consists primarily of an evaluation of cash flow projections of the borrower to determine whether estimated cash flows are sufficient to repay principal and interest in accordance with the contractual terms of the note. We recognize impairments on notes receivable when it is probable that principal and interest will not be received in accordance with the contractual terms of the loan. The amount of the impairment to be recognized generally is based on the fair value of the real estate, which represents the primary source of loan repayment. The fair value of real estate is estimated through income and market valuation approaches using information such as broker estimates, purchase prices for recent transactions on comparable assets and net operating income capitalization analyses using observable and unobservable inputs such as capitalization rates, asset quality grading, geographic location analysis, and local supply and demand observations. Interest Rate Swaps We estimate the fair value of interest rate swaps using an income approach with primarily observable inputs, including information regarding the hedged variable cash flows and forward yield curves relating to the variable interest rates on which the hedged cash flows are based. Total Rate of Return Swaps Our total rate of return swaps have contractually-defined termination values generally equal to the difference between the fair value and the counterparty’s purchased value of the underlying borrowings. Upon termination, we are required to pay the counterparty the difference if the fair value is less than the purchased value, and the counterparty is required to pay us the difference if the fair value is greater than the purchased value. The underlying borrowings are generally callable, at our option, at face value prior to maturity and with no prepayment penalty. Due to our control of the call features in the underlying borrowings, we believe the inherent value of any differential between the fixed and variable cash payments due under the swaps would be significantly discounted by a market participant willing to purchase or assume any rights and obligations under these contracts. The swaps are generally cross-collateralized with other swap contracts with the same counterparty and do not allow transfer or assignment, thus there is no alternate or secondary market for these instruments. Accordingly, our assumptions about the fair value that a willing market participant would assign in valuing these instruments are based on a hypothetical market in which the highest and best use of these contracts is in-use in combination with the related borrowings, similar to how we use the contracts. Based on these assumptions, we believe the termination value, or exit value, of the swaps approximates the fair value that would be assigned by a willing market participant. We calculate the termination value using a market approach by reference to estimates of the fair value of the underlying borrowings, which are discussed below, and an evaluation of potential changes in the credit quality of the counterparties to these arrangements. We compare our estimates of the fair value of the swaps and related borrowings to the valuations provided by the counterparties on a quarterly basis. Our method for calculating fair value of the swaps generally results in changes in fair value equal to the changes in fair value of the related borrowings. Accordingly, we believe these instruments are highly effective in offsetting the changes in fair value of the borrowings during the hedging period. F-19 Table of Contents Changes in Fair Value of Borrowings Subject to Total Rate of Return Swaps We recognize changes in the fair value of certain borrowings subject to total rate of return swaps, which we have designated as fair value hedges. We estimate the fair value of debt instruments using an income and market approach, including comparison of the contractual terms to observable and unobservable inputs such as market interest rate risk spreads, collateral quality and loan-to-value ratios on similarly encumbered assets within our portfolio. These borrowings are collateralized and non-recourse to us; therefore, we believe changes in our credit rating will not materially affect a market participant’s estimate of the borrowings’ fair value. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain assets and liabilities could result in a different estimate of fair value at the reporting date. The table below presents amounts at December 31, 2009, 2008 and 2007 (and the changes in fair value between such dates) for significant items measured in our consolidated balance sheets at fair value (in thousands). Certain of these fair value measurements are based on significant unobservable inputs classified within Level 3 of the valuation hierarchy. When a determination is made to classify a fair value measurement within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, Level 3 fair value measurements typically include, in addition to the unobservable or Level 3 components, observable components that can be validated to observable external sources; accordingly, the changes in fair value in the table below are due in part to observable factors that are part of the valuation methodology. Level 2 Level 3 Changes in Fair Interest Rate Total rate of Swaps return swaps Value of Debt Instruments Subject to Total Rate of Return Swaps Total Fair value at December 31, 2007 Unrealized gains (losses) included in earnings(1)(2) Realized gains (losses) included in earnings Unrealized gains (losses) included in equity Fair value at December 31, 2008 Unrealized gains (losses) included in earnings(1)(2) Realized gains (losses) included in earnings Unrealized gains (losses) included in equity Fair value at December 31, 2009 $ (371 ) $ (47 ) — (2,139 ) $ (2,557 ) $ (447 ) — 1,408 $ (1,596 ) $ (9,420 ) $ (20,075 ) — — (29,495 ) $ 5,188 — — (24,307 ) $ 9,420 $ (371 ) (47 ) 20,075 — — — (2,139 ) 29,495 $ (2,557 ) (447 ) (5,188 ) — — — 1,408 24,307 $ (1,596 ) (1) Unrealized gains (losses) relate to periodic revaluations of fair value and have not resulted from the settlement of a swap position. (2) Included in interest expense in the accompanying condensed consolidated statements of income. In addition to the amounts in the table above, during the years ended December 31, 2009, 2008 and 2007, we recognized $56.9 million, $118.6 million and $6.5 million, respectively, of provisions for real estate impairment losses (including amounts in discontinued operations) to reduce the carrying amounts of certain real estate properties to their estimated fair value (or fair value less estimated costs to sell) and provisions for losses on notes receivable of $21.5 million, $17.6 million and $2.0 million, respectively, based on our estimates of the fair value of the real estate properties that represent the primary source of repayment. Based on the significance of the F-20 Table of Contents unobservable inputs used in our methods for estimating the fair values for these amounts, we classify these fair value measurements within Level 3 of the valuation hierarchy. Disclosures Regarding Fair Value of Financial Instruments We believe that the aggregate fair value of our cash and cash equivalents, receivables, payables and short-term secured debt approximates their aggregate carrying value at December 31, 2009, due to their relatively short-term nature and high probability of realization. We estimate fair value for our notes receivable and debt instruments using present value techniques that include income and market valuation approaches using observable inputs such as market rates for debt with the same or similar terms and unobservable inputs such as collateral quality and loan-to-value ratios on similarly encumbered assets. Present value calculations vary depending on the assumptions used, including the discount rate and estimates of future cash flows. In many cases, the fair value estimates may not be realizable in immediate settlement of the instruments. The estimated aggregate fair value of our notes receivable was approximately $126.1 million and $161.6 million at December 31, 2009 and 2008, respectively. See Note 5 for further information on notes receivable. The estimated aggregate fair value of our consolidated debt (including amounts reported in liabilities related to assets held for sale) was approximately $5.7 billion and $6.7 billion at December 31, 2009 and 2008, respectively. The combined carrying amount of our consolidated debt (including amounts reported in liabilities related to assets held for sale) was approximately $5.7 billion and $6.8 billion at December 31, 2009 and 2008, respectively. See Note 6 and Note 7 for further details on our consolidated debt. Refer to Derivative Financial Instruments for further discussion regarding certain of our fixed rate debt that is subject to total rate of return swap instruments. Income Taxes We have elected to be taxed as a REIT under the Code commencing with our taxable year ended December 31, 1994, and intend to continue to operate in such a manner. Our current and continuing qualification as a REIT depends on our ability to meet the various requirements imposed by the Code, which are related to organizational structure, distribution levels, diversity of stock ownership and certain restrictions with regard to owned assets and categories of income. If we qualify for taxation as a REIT, we will generally not be subject to United States Federal corporate income tax on our taxable income that is currently distributed to stockholders. This treatment substantially eliminates the “double taxation” (at the corporate and stockholder levels) that generally results from an investment in a corporation. Even if we qualify as a REIT, we may be subject to United States Federal income and excise taxes in various situations, such as on our undistributed income. We also will be required to pay a 100% tax on any net income on non- arms length transactions between us and a TRS (described below) and on any net income from sales of property that was property held for sale to customers in the ordinary course. We and our stockholders may be subject to state or local taxation in various state or local jurisdictions, including those in which we transact business or our stockholders reside. In addition, we could also be subject to the alternative minimum tax, or AMT, on our items of tax preference. The state and local tax laws may not conform to the United States Federal income tax treatment. Any taxes imposed on us reduce our operating cash flow and net income. Certain of our operations or a portion thereof, including property management, asset management and risk, are conducted through taxable REIT subsidiaries, which are subsidiaries of the Aimco Operating Partnership, and each of which we refer to as a TRS. A TRS is a C-corporation that has not elected REIT status and as such is subject to United States Federal corporate income tax. We use TRS entities to facilitate our ability to offer certain services and activities to our residents, as these services and activities generally cannot be offered directly by the REIT. We also use TRS entities to hold investments in certain properties. For our TRS entities, deferred income taxes result from temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for Federal income tax purposes, and are measured using the enacted tax rates and laws that are expected to be in effect when the differences reverse. We reduce deferred tax assets by recording a valuation allowance when we determine based on available evidence that it is more likely than not that the assets will not be realized. We recognize the tax consequences associated with F-21 Table of Contents intercompany transfers between the REIT and TRS entities when the related assets are sold to third parties, impaired or otherwise disposed of for financial reporting purposes. In March 2008, we were notified by the Internal Revenue Service that it intended to examine the 2006 Federal tax return for the Aimco Operating Partnership. During June 2008, the IRS issued AIMCO-GP, Inc., the general and tax matters partner of the Aimco Operating Partnership, a summary report including the IRS’s proposed adjustments to the Aimco Operating Partnership’s 2006 Federal tax return. In addition, in May 2009, we were notified by the IRS that it intended to examine the 2007 Federal tax return for the Aimco Operating Partnership. During November 2009, the IRS issued AIMCO-GP, Inc. a summary report including the IRS’s proposed adjustments to the Aimco Operating Partnership’s 2007 Federal tax return. We do not expect the 2006 or 2007 proposed adjustments to have any material effect on our unrecognized tax benefits, financial condition or results of operations. Concentration of Credit Risk Financial instruments that potentially could subject us to significant concentrations of credit risk consist principally of notes receivable and total rate of return swaps. As discussed in Note 5, a significant portion of our notes receivable at December 31, 2009, are collateralized by properties in the West Harlem area of New York City. There are no other significant concentrations of credit risk with respect to our notes receivable due to the large number of partnerships that are borrowers under the notes and the geographic diversity of the properties that collateralize the notes. At December 31, 2009, we had total rate of return swap positions with two financial institutions totaling $353.1 million. The swap positions with one counterparty are comprised of $340.9 million of fixed rate debt effectively converted to variable rates using total rate of return swaps, including $295.7 million of tax-exempt bonds indexed to SIFMA and $45.2 million of taxable second mortgage notes indexed to LIBOR. Additionally, the swap agreements with this counterparty provide for collateral calls to maintain specified loan-to-value ratios. As of December 31, 2009, we were not required to provide cash collateral pursuant to the total rate of return swaps. We have one swap position with another counterparty that is comprised of $12.2 million of fixed rate tax-exempt bonds indexed to SIFMA. We periodically evaluate counterparty credit risk associated with these arrangements. At the current time, we have concluded we do not have material exposure. In the event either counterparty were to default under these arrangements, loss of the net interest benefit we generally receive under these arrangements, which is equal to the difference between the fixed rate we receive and the variable rate we pay, may adversely impact our results of operations and operating cash flows. In the event the values of the real estate properties serving as collateral under these agreements decline, we may be required to provide additional collateral pursuant to the swap agreements, which may adversely affect our cash flows. FASB Accounting Standards Codification In June 2009, the Financial Accounting Standards Board, or FASB, issued Statement of Financial Accounting Standards No. 168, The FASB Accounting Standards Codification and the Hierarchy of Generally Accepted Accounting Principles — a replacement of FASB Statement No. 162, or SFAS 168, which is effective for financial statements issued for interim and annual periods ending after September 15, 2009. Upon the effective date of SFAS 168, the FASB Accounting Standards Codification, or the FASB ASC, became the single source of authoritative GAAP recognized by the FASB to be applied by nongovernmental entities. Rules and interpretive releases of the Securities and Exchange Commission, or SEC, under authority of federal securities laws are also sources of authoritative GAAP for SEC registrants. The FASB ASC superseded all then-existing non-SEC accounting and reporting standards, and all other non-grandfathered non-SEC accounting literature not included in the FASB ASC is now non-authoritative. Subsequent to the effective date of SFAS 168, the FASB will issue Accounting Standards Updates that serve to update the FASB ASC. Business Combinations We adopted the provisions of FASB Statement of Financial Accounting Standards No. 141(R), Business Combinations — a replacement of FASB Statement No. 141, or SFAS 141(R), which are codified in FASB ASC Topic 805, effective January 1, 2009. These provisions apply to all transactions or events in which an entity obtains F-22 Table of Contents control of one or more businesses, including those effected without the transfer of consideration, for example by contract or through a lapse of minority veto rights. These provisions require the acquiring entity in a business combination to recognize the full fair value of assets acquired and liabilities assumed in the transaction (whether a full or partial acquisition); establish the acquisition-date fair value as the measurement objective for all assets acquired and liabilities assumed; and require expensing of most transaction and restructuring costs. We believe most operating real estate assets meet the revised definition of a business. Accordingly, beginning in 2009, we expense transaction costs associated with acquisitions of operating real estate or interests therein when we consolidate the asset. The FASB did not provide implementation guidance regarding the treatment of acquisition costs incurred prior to December 31, 2008, for acquisitions that did not close until 2009. The SEC indicated any of the following three transition methods were acceptable, provided that the method chosen is disclosed and applied consistently: 1) expense acquisition costs in 2008 when it is probable that the acquisition will not close in 2008; 2) expense acquisition costs January 1, 2009; or 3) give retroactive treatment to the acquisition costs January 1, 2009, by retroactively adjusting prior periods to record acquisition costs in the prior periods in which they were incurred. We elected to apply the third method and accordingly have retroactively adjusted our results of operations for the year ended December 31, 2008, by $3.5 million, which also resulted in a corresponding reduction to our December 31, 2008 equity balance. This retroactive adjustment is reflected in investment management expenses in our accompanying consolidated statements of income and reduced basic and diluted earnings per share amounts by $0.04 for the year ended December 31, 2008. Noncontrolling Interests Effective January 1, 2009, we adopted the provisions of FASB Statement of Financial Accounting Standards No. 160, Noncontrolling Interests in Consolidated Financial Statements — an amendment of ARB No. 51, or SFAS 160, which are codified in FASB ASC Topic 810. These provisions clarified that a noncontrolling interest in a subsidiary is an ownership interest in a consolidated entity, which should be reported as equity in the parent’s consolidated financial statements. These provisions require disclosure, on the face of the consolidated income statements, of the amounts of consolidated net income and other comprehensive income attributable to controlling and noncontrolling interests, eliminating the past practice of reporting amounts of income attributable to noncontrolling interests as an adjustment in arriving at consolidated net income. These provisions also require us to attribute to noncontrolling interests their share of losses even if such attribution results in a deficit noncontrolling interest balance within our equity accounts, and in some instances, recognize a gain or loss in net income when a subsidiary is deconsolidated. In connection with our retrospective application of these provisions, we reclassified into our consolidated equity accounts the historical balances related to noncontrolling interests in consolidated real estate partnerships and the portion of noncontrolling interests in the Aimco Operating Partnership related to the Aimco Operating Partnership’s common OP Units and High Performance Units. At December 31, 2008, the carrying amount of noncontrolling interests in consolidated real estate partnerships was $380.7 million and the carrying amount for noncontrolling interests in Aimco Operating Partnership attributable to common OP Units and High Performance Units was zero, due to cash distributions in excess of the positive balances related to those noncontrolling interests. Beginning in 2009, we no longer record a charge related to cash distributions to noncontrolling interests in excess of the carrying amount of such noncontrolling interests, and we attribute losses to noncontrolling interests even if such attribution results in a deficit noncontrolling interest balance within our equity accounts. The following table illustrates the pro forma amounts of loss from continuing operations, discontinued operations and net loss that would have been attributed to Aimco common stockholders for the year ended December 31, 2009, had we applied F-23 Table of Contents the accounting provisions related to noncontrolling interests prior to their amendment by SFAS 160 (in thousands, except per share amounts): Loss from continuing operations attributable to Aimco common stockholders Income from discontinued operations attributable to Aimco common stockholders Net loss attributable to Aimco common stockholders Basic and diluted earnings (loss) per common share: Loss from continuing operations attributable to Aimco common stockholders Income from discontinued operations attributable to Aimco common stockholders Net loss attributable to Aimco common stockholders Year Ended December 31, 2009 $ $ $ $ (225,957 ) 91,044 (134,913 ) (1.98 ) 0.80 (1.18 ) The following table presents a reconciliation of preferred noncontrolling interests in the Aimco Operating Partnership, which are generally redeemable at the holders’ option and may be settled in cash or, at the Aimco Operating Partnership’s discretion, shares of Common Stock and are included in temporary equity in our consolidated balance sheet, for the years ending December 31, 2009, 2008 and 2007. Balance at January 1 Net income attributable to preferred noncontrolling interests in the Aimco Operating Partnership Distributions attributable to preferred noncontrolling interests in the Aimco Operating Partnership Conversion of preferred units into Common Stock Purchases of preferred units Other Balance at December 31 2009 2008 2007 $ 88,148 $ 89,716 $ 90,120 6,288 7,646 7,128 (6,806 ) — (1,725 ) 751 $ 86,656 (7,486 ) — (976 ) (752 ) $ 88,148 (7,489 ) (43 ) — — $ 89,716 The effects on our equity of changes in our ownership interest in the Aimco Operating Partnership are reflected in our consolidated statement of equity as redemptions of Aimco Operating Partnership units for Common Stock and repurchases of common partnership units. Changes in our ownership interest in consolidated real estate partnerships generally consist of our purchase of an additional interest in or the sale of our entire interest in a consolidated real estate partnership. Our purchase of additional interests in consolidated real estate partnerships had no direct effect on equity attributable to Aimco during the years ended December 31, 2008 and 2007, and did not have a significant effect on equity attributable to Aimco during the year ended December 31, 2009. The effect on our equity of sales of our entire interest in consolidated real estate partnerships is reflected in our consolidated financial statements as sales of real estate and accordingly the effect on our equity is reflected as gains on disposition of real estate, less the amounts of such gains attributable to noncontrolling interests, within consolidated net (loss) income attributable to Aimco common stockholders. Earnings per Share We calculate earnings per share based on the weighted average number of shares of Common Stock, common stock equivalents, participating securities and other potentially dilutive securities outstanding during the period (see Note 14). Effective January 1, 2009, we adopted the provisions of FASB Statement of Position No. EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities, or FSP EITF 03-6-1, which are codified in FASB ASC Topic 260. FSP EITF 03-6-1 clarified that unvested share-based F-24 Table of Contents payment awards that participate in dividends similar to shares of common stock or common partnership units should be treated as participating securities. FSP EITF 03-6-1 affects our computation of basic and diluted earnings per share for unvested restricted stock awards and shares purchased pursuant to officer stock loans, which serve as collateral for such loans, both of which entitle the holders to dividends. Refer to Note 14, which details our calculation of earnings per share and the effect of our retroactive application of FSP EITF 03-6-1 on our earnings per share. In December 2009, we adopted the provisions of FASB Accounting Standards Update 2010-01, Accounting for Distributions to Shareholders with Components of Stock and Cash, or ASU 2010-01, which are codified in FASB ASC Topic 505. ASU 2010-01 requires that for distributions with components of cash and stock, the portion distributed in stock should be accounted for prospectively as a stock issuance with no retroactive adjustment to basic and diluted earnings per share. In accordance with ASU 2010-01, we retrospectively revised the accounting treatment of our special dividends paid during 2008 and 2009, resulting in changes in the number of weighted average shares outstanding and earnings per share amounts for the years ended December 31, 2008 and 2007, as compared to the amounts previously reported. The following table illustrates the effects of these changes in accounting treatment on our basic and diluted weighted average shares outstanding and on net income (loss) attributable to Aimco common stockholders per common share for the years ended December 31, 2008 and 2007: Weighted average shares outstanding — basic and diluted: As previously reported Reduction in weighted average shares outstanding As currently reported Net income (loss) attributable to Aimco common stockholders per common share — basic and diluted: As previously reported Effect of reduction in weighted average shares outstanding Effect of participating securities allocations As currently reported Use of Estimates 2008 2007 121,213 (32,523 ) 88,690 140,137 (45,030 ) 95,107 $ $ 2.98 1.06 (0.08 ) 3.96 $ $ (0.26 ) (0.12 ) (0.05 ) (0.43 ) The preparation of our consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts included in the financial statements and accompanying notes thereto. Actual results could differ from those estimates. Restatement to Reclassify Impairment Losses on Real Estate Development Assets Our consolidated statement of income for the year ended December 31, 2008, has been restated to reclassify the provision for impairment losses on real estate development assets into operating income. The reclassification reduced operating income by $91.1 million for the year ended December 31, 2008, and had no effect on the reported amounts of loss before income taxes and discontinued operations, loss from continuing operations, net income, net income available to Aimco common stockholders or earnings per share. Additionally, the reclassification had no effect on the consolidated balance sheet at December 31, 2008, or the consolidated statements of equity and cash flows for the year ended December 31, 2008. Reclassifications Certain items included in the 2008 and 2007 financial statements have been reclassified to conform to the current presentation. F-25 Table of Contents Subsequent Events Our management evaluated subsequent events through the time this Annual Report on Form 10-K was filed. NOTE 3 — Real Estate and Partnership Acquisitions and Other Significant Transactions Real Estate Acquisitions During the year ended December 31, 2009, we did not acquire any real estate properties. During the year ended December 31, 2008, we acquired three conventional properties with a total of 470 units, located in San Jose, California, Brighton, Massachusetts and Seattle, Washington. The aggregate purchase price of $111.5 million, excluding transaction costs, was funded using $39.0 million in proceeds from property loans, $41.9 million in tax-free exchange proceeds (provided by 2008 real estate dispositions) and the remainder in cash. During the year ended December 31, 2007, we completed the acquisition of 16 conventional properties with approximately 1,300 units for an aggregate purchase price of approximately $217.0 million, excluding transaction costs. Of the 16 properties acquired, ten are located in New York City, New York, two in Daytona Beach, Florida, one in Park Forest, Illinois, one in Poughkeepsie, New York, one in Redwood City, California, and one in North San Diego, California. The purchases were funded with cash, tax-free exchange proceeds, new debt and the assumption of existing debt. Acquisitions of Partnership Interests During the year ended December 31, 2009, we did not acquire a significant amount of limited partnership interests. During the years ended December 31, 2008 and 2007, we acquired limited partnership interests in 22 and 50 partnerships, respectively, in which our affiliates served as general partner. In connection with such acquisitions, we paid cash of approximately $2.0 million and $47.4 million, including transaction costs. The cost of the acquisitions was approximately $2.4 million and $43.6 million in excess of the carrying amount of noncontrolling interest in such limited partnerships, which excess we generally assigned to real estate. Disposition of Unconsolidated Real Estate and Other During the year ended December 31, 2009, we recognized $22.5 million in gains on disposition of unconsolidated real estate and other. Gains recognized in 2009 primarily consist of $8.6 million related to our receipt in 2009 of additional proceeds related to our disposition during 2008 of one of the partnership interests (discussed below), $4.0 million from the disposition of our interest in a group purchasing organization (discussed further below), $6.1 million from our disposition of interests in unconsolidated real estate partnerships and our share of gains recognized by our unconsolidated partnerships on the sale of real estate and $3.8 million related to various other transactions. During the year ended December 31, 2008, we recognized $99.9 million in gains on disposition of unconsolidated real estate and other, which primarily consisted of a $98.4 million gain recognized on the disposal of our interests in unconsolidated real estate partnerships that owned two properties with 671 units. Casualty Loss Related to Tropical Storm Fay and Hurricane Ike During 2008, Tropical Storm Fay and Hurricane Ike caused severe damage to certain of our properties located primarily in Florida and Texas, respectively. We incurred total losses of approximately $33.9 million, including property damage replacement costs and clean-up costs. After consideration of estimated third party insurance proceeds and the noncontrolling interest partners’ share of losses for consolidated real estate partnerships, the net effect of these casualties on net income available to Aimco common stockholders was a loss of approximately $5.0 million. Sale of Interest in Group Purchasing Organization During 2009, we sold our interest in an unconsolidated group purchasing organization to an unrelated entity for $5.9 million, resulting in the recognition of a gain on sale of $4.0 million, which is included in gain on disposition of F-26 Table of Contents unconsolidated real estate and other in our consolidated statement of income for the year ended December 31, 2009. This gain was partially offset by a $1.0 million provision for income tax. We also have a note receivable from another principal in the group purchasing organization, which is collateralized by its equity interest in the entity. In connection with the sale of our interest, we reevaluated collectibility of the note receivable and reversed $1.4 million of previously recognized impairment losses, which is reflected in provision for losses on notes receivable, net in our consolidated statement of income for the year ended December 31, 2009. As of December 31, 2009, the carrying amount of the note receivable, which is due for repayment in 2010, totaled $1.6 million. Restructuring Costs In connection with 2008 property sales and an expected reduction in redevelopment and transactional activities, during the three months ended December 31, 2008, we initiated an organizational restructuring program that included reductions in workforce and related costs, reductions in leased corporate facilities and abandonment of certain redevelopment projects and business pursuits. This restructuring effort resulted in a restructuring charge of $22.8 million, which consisted of: severance costs of $12.9 million; unrecoverable lease obligations of $6.4 million related to space that we will no longer use; and the write-off of deferred transaction costs totaling $3.5 million associated with certain acquisitions and redevelopment opportunities that we will no longer pursue. We completed the workforce reductions by March 31, 2009. During 2009, in connection with continued repositioning of our portfolio, we completed additional organizational restructuring activities that included reductions in workforce and related costs and the abandonment of additional leased corporate facilities and redevelopment projects. Our 2009 restructuring activities resulted in a restructuring charge of $11.2 million, which consisted of severance costs and personnel related costs of $7.0 million; unrecoverable lease obligations of $2.6 million related to space that we will no longer use; the write-off of deferred costs totaling $0.9 million associated with certain redevelopment opportunities that we will no longer pursue; and $0.7 million in other costs. As of December 31, 2009, the remaining accruals associated with our restructuring activity are $6.9 million for estimated unrecoverable lease obligations, which will be paid over the remaining terms of the affected leases, and $4.7 million for severance and personnel related costs, which are anticipated to be paid during the first quarter 2010. Transactions Involving VMS National Properties Joint Venture In January 2007, VMS National Properties Joint Venture, or VMS, a consolidated real estate partnership in which we held a 22% equity interest, refinanced property loans secured by its 15 apartment properties. The existing loans had an aggregate carrying amount of $110.0 million and an aggregate face amount of $152.2 million. The $42.2 million difference between the face amount and carrying amount resulted from a 1997 bankruptcy settlement in which the lender agreed to reduce the principal amount of the loans subject to VMS’s compliance with the terms of the restructured loans. Because the reduction in the loan amount was contingent on future compliance, recognition of the inherent debt extinguishment gain was deferred. Upon refinancing of the loans in January 2007, the existing lender accepted the reduced principal amount in full satisfaction of the loans, and VMS recognized the $42.2 million debt extinguishment gain in earnings. During the year ended December 31, 2007, VMS sold eight properties to third parties for an aggregate gain of $22.7 million. Additionally, VMS contributed its seven remaining properties to wholly-owned subsidiaries of Aimco in exchange for consideration totaling $230.1 million, consisting primarily of cash of $21.3 million, common OP Units with a fair value of $9.8 million, the assumption of $168.0 million in property debt, and the assumption of $30.9 million in mortgage participation liabilities. This total consideration included $50.7 million related to our 22% equity interest in VMS. Exclusive of our share, the consideration paid for the seven properties exceeded the carrying amount of the noncontrolling interest in such properties by $44.9 million. This excess consideration is reflected in our consolidated balance sheet as an increase in the carrying amount of the seven properties. Approximately $31.6 million of the $42.2 million debt extinguishment gain related to the property loans that were secured by the eight properties sold to third parties and two properties we acquired from VMS but F-27 Table of Contents subsequently sold and is reported in discontinued operations for the year ended December 31, 2007. The remaining $10.6 million portion of the debt extinguishment gain related to the property loans that were secured by the five VMS properties we purchased and continue to own and is reported in our continuing operations as gain on dispositions of unconsolidated real estate and other. Although 78% of the equity interests in VMS were held by unrelated noncontrolling partners, no noncontrolling interest share of the gains on debt extinguishment and sale of the properties was recognized in our earnings. As required by then applicable GAAP, we had in prior years recognized the noncontrolling partners’ share of VMS losses in excess of the noncontrolling partners’ capital contributions. The amounts of those previously recognized losses exceeded the noncontrolling partners’ share of the gains on debt extinguishment and sale of the properties; accordingly, the noncontrolling interests in such gains recognized in our earnings was limited to the noncontrolling interests in the Aimco Operating Partnership. For the year ended December 31, 2007, the aggregate effect of the gains on extinguishment of VMS debt and sale of VMS properties was to decrease loss from continuing operations attributable to Aimco common stockholders by $9.7 million ($0.10 per diluted share) and decrease net loss attributable to Aimco common stockholders by $59.0 million ($0.62 per diluted share). During the three months ended December 31, 2007, VMS distributed its remaining cash, consisting primarily of undistributed proceeds from the sale of its 15 properties (including properties sold to us). Of the $42.4 million of cash distributed to the unrelated limited partners, $21.3 million represents the cash consideration we contributed in exchange for the purchase of seven properties and is presented in purchases of partnership interests and other assets in the consolidated statement of cash flows for the year ended December 31, 2007. The remainder of the cash distributed to the unrelated limited partners is presented in payment of distributions to noncontrolling interest in the consolidated statement of cash flows. Palazzo Joint Venture In December 2007, we entered into a joint venture agreement with a third party investor which provides for the co- ownership of three multi-family properties with 1,382 units located in West Los Angeles. Under the agreement, we contributed three wholly-owned properties, The Palazzo at Park La Brea, The Palazzo East at Park La Brea and The Villas at Park La Brea to the partnership, which we refer to as Palazzo, at a value of $726.0 million, or approximately $525,000 per unit. Palazzo had existing property debt of approximately $296.0 million and an implied equity value of approximately $430.0 million. We received $202.0 million from the investor in exchange for an approximate 47% interest in Palazzo, of which approximately $7.9 million was used to fund escrows for capital improvements and various operating requirements. We own the remaining interests in Palazzo, including a managing interest, and will operate the properties in exchange for a property management fee and certain other fees over the term of the partnership. We determined Palazzo is a VIE and that we are the primary beneficiary who should consolidate this partnership. We deferred recognition of a gain on this transaction and recognized the consideration received as an increase in noncontrolling interests in consolidated real estate partnerships. NOTE 4 — Investments in Unconsolidated Real Estate Partnerships We owned general and limited partner interests in unconsolidated real estate partnerships owning approximately 77, 85 and 94 properties at December 31, 2009, 2008 and 2007, respectively. We acquired these interests through various transactions, including large portfolio acquisitions and offers to individual limited partners. Our total ownership interests in these unconsolidated real estate partnerships typically ranges from less than 1% to 50% and in some instances may exceed 50%. F-28 Table of Contents The following table provides selected combined financial information for the unconsolidated real estate partnerships in which we had investments accounted for under the equity method as of and for the years ended December 31, 2009, 2008 and 2007 (in thousands): Real estate, net of accumulated depreciation Total assets Secured and other notes payable Total liabilities Partners’ deficit Rental and other property revenues Property operating expenses Depreciation expense Interest expense Gain on sale Net income (loss) 2009 2008 2007 $ 95,226 $ 122,788 $ 133,544 165,567 122,543 124,406 101,678 180,222 145,637 (14,655 ) (23,094 ) 73,672 55,366 (45,998 ) (34,497 ) (13,965 ) (10,302 ) (17,194 ) (11,103 ) 8,482 59 (4,845 ) 6,622 155,444 122,859 175,681 (20,237 ) 69,392 (42,863 ) (12,640 ) (17,182 ) 5,391 1,398 As a result of our acquisition of interests in unconsolidated real estate partnerships at a cost in excess of the historical carrying amount of the partnerships’ net assets, our aggregate investment in these partnerships at December 31, 2009 and 2008 of $105.3 million and $119.0 million, respectively, exceeds our share of the underlying historical partners’ deficit of the partnerships by approximately $109.5 million and $122.9 million, respectively. NOTE 5 — Notes Receivable The following table summarizes our notes receivable at December 31, 2009 and 2008 (in thousands): 2009 2008 Unconsolidated Real Estate Partnerships Affiliates Total Non- Unconsolidated Real Estate Partnerships Affiliates Total Non- Par value notes Discounted notes Allowance for loan losses Total notes receivable Face value of discounted notes $ $ $ 11,353 $ 20,862 $ 32,215 5,095 141,468 146,563 (2,153 ) (37,061 ) (39,214 ) 14,295 $ 125,269 $ 139,564 37,709 $ 155,848 $ 193,557 $ $ $ 18,855 $ 19,253 $ 38,108 8,575 138,387 146,962 (4,863 ) (17,743 ) (22,606 ) 22,567 $ 139,897 $ 162,464 39,333 $ 148,790 $ 188,123 Included in notes receivable from unconsolidated real estate partnerships at December 31, 2009 and 2008, are $2.4 million and $4.2 million, respectively, in notes that were secured by interests in real estate or interests in real estate partnerships. We earn interest on these secured notes receivable at various annual interest rates averaging 12.0%. Included in the notes receivable from non-affiliates at December 31, 2009 and 2008, are $102.2 million and $95.8 million, respectively, in notes that were secured by interests in real estate or interests in real estate partnerships. We earn interest on these secured notes receivable at various annual interest rates ranging between 4.0% and 12.0% and averaging 4.7%. Notes receivable from non-affiliates at December 31, 2009 and 2008, include notes receivable totaling $87.4 million and $85.6 million, respectively, from 31 entities (the “borrowers”) that are wholly owned by a single individual. We originated these notes in November 2006 pursuant to a loan agreement that provides for total funding of approximately $110.0 million, including $16.4 million for property improvements and an interest reserve, of which $4.6 million had not been funded as of December 31, 2009. The notes mature in November 2016, bear interest at LIBOR plus 2.0%, are partially guaranteed by the owner of the borrowers, and are collateralized by second mortgages on 87 buildings containing 1,597 residential units and 42 commercial spaces in West Harlem, F-29 Table of Contents New York City. In conjunction with the loan agreement, we entered into a purchase option and put agreement with the borrowers under which we may purchase some or all of the buildings and, subject to achieving specified increases in rental income, the borrowers may require us to purchase the buildings (see Note 8). We determined that the stated interest rate on the notes on the date the loan was originated was a below-market interest rate and recorded a $19.4 million discount to reflect the estimated fair value of the notes based on an estimated market interest rate of LIBOR plus 4.0%. The discount was determined to be attributable to our real estate purchase option, which we recorded separately in other assets. Accretion of this discount, which is included in interest income in our consolidated statements of income, totaled $0.9 million in 2009, $0.7 million in 2008 and $1.9 million in 2007, inclusive of a $1.5 million adjustment of accretion recognized upon the repayment of a portion of the outstanding principal balance in 2007. The value of the purchase option asset will be included in the cost of properties acquired pursuant to the option or otherwise be charged to expense. We determined that the borrowers are VIEs and, based on qualitative and quantitative analysis, determined that the individual who owns the borrowers and partially guarantees the notes is the primary beneficiary. As part of the March 2002 acquisition of Casden Properties, Inc., we invested $50.0 million for a 20% passive interest in Casden Properties LLC, an entity organized to acquire, re-entitle and develop land parcels in Southern California. Based upon the profit allocation agreement, we account for this investment as a note receivable and through 2008 were amortizing the discounted value of the investment to the $50.0 million previously estimated to be collectible, through January 2, 2009, the initial dissolution date of the entity. In 2009, the managing member extended the dissolution date. In connection with the preparation of our 2008 annual financial statements and as a result of a decline in land values in Southern California, we determined our recorded investment amount was not fully recoverable, and accordingly recognized an impairment loss of $16.3 million ($10.0 million net of tax) during the three months ended December 31, 2008. In connection with the preparation of our 2009 annual financial statements and as a result of continued declines in land values in Southern California, we determined our then recorded investment amount was not fully recoverable, and accordingly recognized an impairment loss of $20.7 million ($12.4 million net of tax) during the three months ended December 31, 2009. Interest income from total non-impaired par value and certain discounted notes for the years ended December 31, 2009, 2008 and 2007 totaled $5.7 million, $7.8 million and $11.7 million, respectively. For the years ended December 31, 2009, 2008 and 2007, we recognized accretion income on certain discounted notes of $0.1 million, $1.4 million and $8.1 million, respectively. The activity in the allowance for loan losses in total for both par value notes and discounted notes for the years ended December 31, 2009 and 2008, is as follows (in thousands): Balance at beginning of year Provisions for losses on notes receivable Recoveries of losses on notes receivable Provisions for impairment loss on investment in Casden Properties LLC Net reductions due to consolidation of real estate partnerships and property dispositions Balance at end of year 2009 2008 $ (22,606 ) (2,231 ) 1,422 (20,740 ) 4,941 $ (39,214 ) $ (6,435 ) (1,673 ) 417 (16,321 ) 1,406 $ (22,606 ) During the years ended December 31, 2009 and 2008, we determined that an allowance for loan losses of $1.2 million and $3.6 million, respectively, was required on certain of our par value notes that had carrying amounts of $3.8 million and $11.4 million, respectively. The average recorded investment in the impaired par value notes for the years ended December 31, 2009 and 2008, was $7.6 million and $9.0 million, respectively. The remaining $28.4 million in par value notes receivable at December 31, 2009, is estimated to be collectible and, therefore, interest income on these par value notes is recognized as it is earned. F-30 Table of Contents As of December 31, 2009 and 2008, we determined that an allowance for loan losses of $1.0 million and $2.7 million, respectively, was required on certain of our discounted notes (excluding the note related to Casden Properties LLC discussed above) that had carrying values of $1.6 million and $5.4 million, respectively. The average recorded investment in the impaired discounted notes for the years ended December 31, 2009 and 2008, was $3.5 million and $4.9 million, respectively. NOTE 6 — Property Tax-Exempt Bond Financings, Property Loans Payable and Other Borrowings The following table summarizes our property tax-exempt bond financings related to properties classified as held for use at December 31, 2009 and 2008, the majority of which is non-recourse to us (in thousands): Fixed rate property tax-exempt bonds payable Variable rate property tax-exempt bonds payable Total Weighted Average Interest Rate 2009 5.10% 0.90% Principal Outstanding 2009 2008 $ 140,995 $ 131,530 497,969 $ 574,926 $ 629,499 433,931 Fixed rate property tax-exempt bonds payable mature at various dates through December 2049. Variable rate property tax-exempt bonds payable mature at various dates through June 2038. Principal and interest on these bonds are generally payable in semi-annual installments with balloon payments due at maturity. Certain of our property tax-exempt bonds at December 31, 2009, are remarketed periodically by a remarketing agent to maintain a variable yield. If the remarketing agent is unable to remarket the bonds, then the remarketing agent can put the bonds to us. We believe that the likelihood of this occurring is remote. At December 31, 2009, our property tax-exempt bond financings related to properties classified as held for use were secured by 39 properties with a combined net book value of $837.7 million. As discussed in Note 2, certain fixed rate property tax-exempt bonds payable have been converted to variable rates using total rate of return swaps and are presented above as variable rate debt at their carrying amounts, or fair value. The following table summarizes our property loans payable related to properties classified as held for use at December 31, 2009 and 2008, the majority of which are non-recourse to us (in thousands): Fixed rate property notes payable Variable rate property notes payable Secured notes credit facility Total Weighted Average Interest Rate 2009 6.01% 2.46% 1.02% Principal Outstanding 2009 2008 $ 4,850,136 75,877 46,314 $ 4,972,327 $ 4,662,584 223,561 58,179 $ 4,944,324 Fixed rate property notes payable mature at various dates through August 2053. Variable rate property notes payable mature at various dates through November 2030. Principal and interest are generally payable monthly or in monthly interest-only payments with balloon payments due at maturity. At December 31, 2009, our property notes payable related to properties classified as held for use were secured by 373 properties with a combined net book value of $6,030.1 million. As discussed in Note 2, certain fixed rate secured notes payable have been converted to variable rates using total rate of return swaps and are presented above as variable rate debt at their carrying amounts, or fair value. At December 31, 2009, we had a secured revolving credit facility with a major life company that provided for borrowings of up to $200.0 million. In January 2010, the credit facility was modified to reduce allowed borrowings to the then outstanding amount of $46.3 million. The primary function of the facility is to secure short-term fully pre-payable non-recourse loans for a period of less than three years. The interest rate on the notes provided through the facility is 30-day LIBOR plus 0.78%. Each loan under the facility is treated as a separate borrowing and is secured by a specific property. None of the facility loans are cross-collateralized or cross-defaulted. This facility matures in October 2010, and has two one-year extension options for a $500,000 fee per extension. At December 31, F-31 Table of Contents 2009, outstanding borrowings of $46.3 million related to properties classified as held for use are included in 2012 maturities below based on the extension options. Our consolidated debt instruments generally contain covenants common to the type of facility or borrowing, including financial covenants establishing minimum debt service coverage ratios and maximum leverage ratios. At December 31, 2009, we were in compliance with all financial covenants pertaining to our consolidated debt instruments. Other borrowings totaled $53.1 million and $96.0 million at December 31, 2009 and 2008, respectively. At December 31, 2009, other borrowings includes $44.6 million in fixed rate obligations with interest rates ranging from zero to 10.0% and $8.5 million in variable rate obligations bearing interest at the prime rate plus 1.75%. The maturity dates for other borrowings range from 2010 to 2039, although certain amounts are due upon occurrence of specified events, such as property sales. As of December 31, 2009, the scheduled principal amortization and maturity payments for our property tax-exempt bonds, property notes payable and other borrowings related to properties in continuing operations are as follows (in thousands): Amortization Maturities Total 2010 2011 2012 2013 2014 Thereafter $ 101,945 $ 106,962 110,269 108,946 105,701 237,796 205,706 386,421 267,547 3,349 $ 105,294 344,758 315,975 495,367 373,248 3,965,668 $ 5,600,310 NOTE 7 — Term Loans and Credit Facility We have an Amended and Restated Senior Secured Credit Agreement, as amended, with a syndicate of financial institutions, which we refer to as the Credit Agreement. In addition to Aimco, the Aimco Operating Partnership and an Aimco subsidiary are also borrowers under the Credit Agreement. As of December 31, 2009, the Credit Agreement consisted of aggregate commitments of $270.0 million, comprised of the $90.0 million outstanding balance on the term loan and $180.0 million of revolving loan commitments. The term loan bears interest at LIBOR plus 1.5%, or at our option, a base rate equal to the prime rate, and matures March 2011. Borrowings under the revolving credit facility bear interest based on a pricing grid determined by leverage (either at LIBOR plus 4.25% with a LIBOR floor of 2.00% or, at our option, a base rate equal to the Prime rate plus a spread of 3.00%). The revolving credit facility matures May 1, 2011, and may be extended for an additional year, subject to certain conditions, including payment of a 45.0 basis point fee on the total revolving commitments and repayment of the remaining term loan balance by February 1, 2011. Pursuant to the Credit Agreement, while any balance under the term loan is outstanding, repurchases of our Common Stock are permitted with 50% of net asset sale proceeds if the other 50% of such net asset sale proceeds are applied to repay the term loan. The Credit Agreement permits us to increase revolving commitments by up to $320.0 million, subject to our obtaining such commitments from eligible lenders. The Credit Agreement includes customary financial covenants, including the maintenance of specified ratios with respect to total indebtedness to gross asset value, total secured indebtedness to gross asset value, aggregate recourse indebtedness to gross asset value, variable rate debt to total indebtedness, debt service coverage and fixed charge coverage; the maintenance of a minimum adjusted tangible net worth; and limitations regarding the amount of cross- collateralized debt. The Credit Agreement includes other customary covenants, including a restriction on distributions and other restricted payments, but permits distributions during any four consecutive fiscal quarters in an aggregate amount of up to 95% of our funds from operations for such period, subject to certain non-cash adjustments, or such amount as may be necessary to maintain our REIT status. We were in compliance with all such covenants as of December 31, 2009. F-32 Table of Contents The lenders under the Credit Agreement may accelerate any outstanding loans if, among other things: we fail to make payments when due (subject to applicable grace periods); material defaults occur under other debt agreements; certain bankruptcy or insolvency events occur; material judgments are entered against us; we fail to comply with certain covenants, such as the requirement to deliver financial information or the requirement to provide notices regarding material events (subject to applicable grace periods in some cases); indebtedness is incurred in violation of the covenants; or prohibited liens arise. At December 31, 2009, the term loan had an outstanding principal balance of $90.0 million and an interest rate of 1.73%. We repaid $45.0 million of the term loan through February 26, 2010, leaving a remaining outstanding balance of $45.0 million. At December 31, 2009, we had no outstanding borrowings under the revolving credit facility. The amount available under the revolving credit facility at December 31, 2009, was $136.2 million (after giving effect to $43.8 million outstanding for undrawn letters of credit issued under the revolving credit facility). The proceeds of revolving loans are generally permitted to be used to fund working capital and for other corporate purposes. On February 3, 2010, we entered into an Eighth Amendment to our Credit Agreement, which provides for a reduction in the minimum threshold for our debt service coverage and fixed charge coverage ratios and an increase in the maximum threshold for our secured indebtedness ratio. NOTE 8 — Commitments and Contingencies Commitments In connection with our redevelopment and capital improvement activities, we have commitments of approximately $4.8 million related to construction projects that are expected to be completed during 2010. Additionally, we enter into certain commitments for future purchases of goods and services in connection with the operations of our properties. Those commitments generally have terms of one year or less and reflect expenditure levels comparable to our historical expenditures. As discussed in Note 5, we have committed to fund an additional $4.6 million in loans on certain properties in West Harlem in New York City. In certain circumstances, the obligor under these notes has the ability to put properties to us, which would result in a cash payment between $30.0 and $97.5 million and the assumption of approximately $119.0 million in property debt. The ability to exercise the put and the amount of cash payment required upon exercise is dependent upon the achievement of specified thresholds by the current owner of the properties. As discussed in Note 11, we have a potential obligation to repurchase $30.0 million in liquidation preference of our Series A Community Reinvestment Act Preferred Stock for $21.0 million. Tax Credit Arrangements We are required to manage certain consolidated real estate partnerships in compliance with various laws, regulations and contractual provisions that apply to our historic and low-income housing tax credit syndication arrangements. In some instances, noncompliance with applicable requirements could result in projected tax benefits not being realized and require a refund or reduction of investor capital contributions, which are reported as deferred income in our consolidated balance sheet, until such time as our obligation to deliver tax benefits is relieved. The remaining compliance periods for our tax credit syndication arrangements range from less than one year to 15 years. We do not anticipate that any material refunds or reductions of investor capital contributions will be required in connection with these arrangements. Legal Matters In addition to the matters described below, we are a party to various legal actions and administrative proceedings arising in the ordinary course of business, some of which are covered by our general liability insurance program, and none of which we expect to have a material adverse effect on our consolidated financial condition, results of operations or cash flows. F-33 Table of Contents Limited Partnerships In connection with our acquisitions of interests in real estate partnerships and our role as general partner in certain real estate partnerships, we are sometimes subject to legal actions, including allegations that such activities may involve breaches of fiduciary duties to the partners of such real estate partnerships or violations of the relevant partnership agreements. We may incur costs in connection with the defense or settlement of such litigation. We believe that we comply with our fiduciary obligations and relevant partnership agreements. Although the outcome of any litigation is uncertain, we do not expect any such legal actions to have a material adverse effect on our consolidated financial condition, results of operations or cash flows. Environmental Various Federal, state and local laws subject property owners or operators to liability for management, and the costs of removal or remediation, of certain hazardous substances present on a property, including lead-based paint. Such laws often impose liability without regard to whether the owner or operator knew of, or was responsible for, the release or presence of the hazardous substances. The presence of, or the failure to manage or remedy properly, hazardous substances may adversely affect occupancy at affected apartment communities and the ability to sell or finance affected properties. In addition to the costs associated with investigation and remediation actions brought by government agencies, and potential fines or penalties imposed by such agencies in connection therewith, the presence of hazardous substances on a property could result in claims by private plaintiffs for personal injury, disease, disability or other infirmities. Various laws also impose liability for the cost of removal, remediation or disposal of hazardous substances through a licensed disposal or treatment facility. Anyone who arranges for the disposal or treatment of hazardous substances is potentially liable under such laws. These laws often impose liability whether or not the person arranging for the disposal ever owned or operated the disposal facility. In connection with the ownership, operation and management of properties, we could potentially be liable for environmental liabilities or costs associated with our properties or properties we acquire or manage in the future. We have determined that our legal obligations to remove or remediate hazardous substances may be conditional asset retirement obligations, as defined in GAAP. Except in limited circumstances where the asset retirement activities are expected to be performed in connection with a planned construction project or property casualty, we believe that the fair value of our asset retirement obligations cannot be reasonably estimated due to significant uncertainties in the timing and manner of settlement of those obligations. Asset retirement obligations that are reasonably estimable as of December 31, 2009, are immaterial to our consolidated financial condition, results of operations and cash flows. Mold We have been named as a defendant in lawsuits that have alleged personal injury and property damage as a result of the presence of mold. In addition, we are aware of lawsuits against owners and managers of multifamily properties asserting claims of personal injury and property damage caused by the presence of mold, some of which have resulted in substantial monetary judgments or settlements. We have only limited insurance coverage for property damage loss claims arising from the presence of mold and for personal injury claims related to mold exposure. We have implemented policies, procedures, third-party audits and training, and include a detailed moisture intrusion and mold assessment during acquisition due diligence. We believe these measures will prevent or eliminate mold exposure from our properties and will minimize the effects that mold may have on our residents. To date, we have not incurred any material costs or liabilities relating to claims of mold exposure or to abate mold conditions. Because the law regarding mold is unsettled and subject to change, we can make no assurance that liabilities resulting from the presence of or exposure to mold will not have a material adverse effect on our consolidated financial condition, results of operations or cash flows. Operating Leases We are obligated under office space and equipment non-cancelable operating leases. In addition, we sublease certain of our office space to tenants under non-cancelable subleases. Approximate minimum annual rentals under F-34 Table of Contents operating leases and approximate minimum payments to be received under annual subleases are as follows (in thousands): 2010 2011 2012 2013 2014 Thereafter Total Operating Lease Sublease Receivables Obligations $ $ 7,345 $ 5,800 5,056 2,594 2,265 1,828 24,888 $ 818 185 64 12 — — 1,079 Substantially all of the office space subject to the operating leases described above are for the use of our corporate offices and area operations. Rent expense recognized totaled $7.7 million, $10.2 million and $9.8 million for the years ended December 31, 2009, 2008 and 2007, respectively. Sublease receipts that offset rent expense totaled approximately $0.7 million, $0.7 million and $1.3 million for the years ended December 31, 2009, 2008 and 2007, respectively. As discussed in Note 3, during the years ended December 31, 2009 and 2008, we commenced restructuring activities pursuant to which we vacated certain leased office space for which we remain obligated. In connection with the restructurings, we accrued amounts representing the estimated fair value of certain lease obligations related to space we are no longer using, reduced by estimated sublease amounts. At December 31, 2009, approximately $6.9 million related to the above operating lease obligations was included in accrued liabilities related to these estimates. F-35 Table of Contents NOTE 9 — Income Taxes Deferred income taxes reflect the net effects of temporary differences between the carrying amounts of assets and liabilities of the taxable REIT subsidiaries for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax liabilities and assets are as follows (in thousands): Deferred tax liabilities: Partnership differences Depreciation Deferred revenue Other Total deferred tax liabilities Deferred tax assets: Net operating, capital and other loss carryforwards Provision for impairments on real estate assets Receivables Accrued liabilities Accrued interest expense Intangibles — management contracts Tax credit carryforwards Equity compensation Other Total deferred tax assets Valuation allowance Net deferred income tax assets 2009 2008 $ 32,565 2,474 14,862 — $ 49,901 $ 37,164 33,321 3,094 9,272 — 1,911 6,949 1,463 929 94,103 (2,187 ) $ 42,015 $ 47,635 2,477 7,757 11 $ 57,880 $ 7,183 33,321 5,530 23,504 2,220 3,789 8,521 1,983 155 86,206 — $ 28,326 As of December 31, 2009, we determined a valuation allowance for our deferred tax assets was necessary for certain state net operating losses based on a determination that it was more likely than not that such assets will not be realized prior to their expiration. A reconciliation of the beginning and ending balance of our unrecognized tax benefits is presented below: Balance at January 1 Reductions as a result of the lapse of applicable statutes Additions based on tax positions related to the prior year Reductions based on tax positions related to the prior year Balance at December 31 2009 2008 2007 $ 3,080 — — (1 ) $ 3,079 $ 2,965 — 115 — $ 3,080 $ 3,118 (189 ) 36 — $ 2,965 We do not anticipate any material changes in existing unrecognized tax benefits during the next 12 months. Because the statute of limitations has not yet elapsed, our Federal income tax returns for the year ended December 31, 2006, and subsequent years and certain of our State income tax returns for the year ended December 31, 2004, and subsequent years are currently subject to examination by the Internal Revenue Service or other tax authorities. As discussed in Note 2, the IRS has issued us summary reports including its proposed adjustments to the Aimco Operating Partnership’s 2007 and 2006 Federal tax returns. We do not expect the proposed adjustments to have any material effect on our unrecognized tax benefits, financial condition or results of operations. Our policy is to include interest and penalties related to income taxes in income taxes in our consolidated statements of income. In accordance with the accounting requirements for stock-based compensation, our deferred tax assets at December 31, 2008, are net of $3.6 million of excess tax benefits from employee stock option exercises and vested F-36 Table of Contents restricted stock awards. As of December 31, 2009, we had no such excess tax benefits from employee stock option exercises and vested restricted stock awards. The cost of land and depreciable property, net of accumulated depreciation, for federal income tax purposes was approximately $4.6 billion. Significant components of the provision (benefit) for income taxes are as follows and are classified within income tax benefit in continuing operations and income from discontinued operations, net in our statements of income for the years ended December 31, 2009, 2008 and 2007 (in thousands): Current: Federal State Total current Deferred: Federal State Total deferred Total benefit Classification: Continuing operations Discontinued operations 2009 2008 2007 $ (1,910 ) 3,992 2,082 $ 8,678 2,415 11,093 $ 20 1,938 1,958 (17,320 ) (3,988 ) (21,308 ) $ (19,226 ) (22,115 ) (2,386 ) (24,501 ) $ (13,408 ) (17,816 ) (1,833 ) (19,649 ) $ (17,691 ) $ (18,671 ) (555 ) $ $ (53,202 ) $ 39,794 $ (19,795 ) $ 2,104 Consolidated losses subject to tax, consisting of pretax income or loss of our taxable REIT subsidiaries and gains or loss on certain property sales that are subject to income tax under section 1374 of the Internal Revenue Code, for the years ended December 31, 2009, 2008 and 2007 totaled $40.6 million, $81.8 million and $41.5 million, respectively. The reconciliation of income tax attributable to continuing and discontinued operations computed at the U.S. statutory rate to income tax benefit is shown below (dollars in thousands): 2009 Amount Percent 2008 Amount Percent 2007 Amount Percent Tax at U.S. statutory rates on consolidated loss subject to tax State income tax, net of Federal tax benefit Effect of permanent differences Tax effect of intercompany transfers of assets between $ (14,221 ) (2,183 ) 127 35.0 % $ (28,632 ) 5.4 % (0.3 )% 29 — 215 35.0 % $ (14,508 ) 106 (306 ) (0.3 )% 35.0 % (0.3 )% 0.7 % the REIT and taxable REIT subsidiaries(1) Write-off of excess tax basis Increase in valuation allowance (4,759 ) (377 ) 2,187 $ (19,226 ) 11.7 % 15,059 0.9 % (79 ) (5.4 )% — — 47.3 % $ (13,408 ) (18.4 )% — — 0.1 % (2,983 ) 7.2 % — — 16.4 % $ (17,691 ) 42.6 % (1) Includes the effect of assets contributed by the Aimco Operating Partnership to taxable REIT subsidiaries, for which deferred tax expense or benefit was recognized upon the sale or impairment of the asset by the taxable REIT subsidiary. Income taxes paid totaled approximately $4.6 million, $13.8 million and $3.0 million in the years ended December 31, 2009, 2008 and 2007, respectively. F-37 Table of Contents At December 31, 2009, we had net operating loss carryforwards, or NOLs, of approximately $60.6 million for income tax purposes that expire in years 2027 to 2029. Subject to certain separate return limitations, we may use these NOLs to offset all or a portion of taxable income generated by our taxable REIT subsidiaries. We generated approximately $45.9 million of NOLs during the year ended December 31, 2009, as a result of losses from our taxable REIT subsidiaries. The deductibility of intercompany interest expense with our taxable REIT subsidiaries is subject to certain intercompany limitations based upon taxable income as required under Section 163(j) of the Code. As of December 31, 2009, interest carryovers of approximately $24.6 million, limited by Section 163(j) of the Code, are available against U.S. Federal tax without expiration. The deferred tax asset related to these interest carryovers is approximately $9.6 million. Additionally, our low-income housing and rehabilitation tax credit carryforwards as of December 31, 2009, were approximately $7.4 million for income tax purposes that expire in years 2012 to 2028. For income tax purposes, dividends paid to holders of Common Stock primarily consist of ordinary income, return of capital, capital gains, qualified dividends and unrecaptured Section 1250 gains, or a combination thereof. For the years ended December 31, 2009, 2008 and 2007, dividends per share held for the entire year were estimated to be taxable as follows: 2009(1)(2) 2008(3) Amount Percentage Amount Percentage Amount Percentage 2007(4) Ordinary income Capital gains Qualified dividends Unrecaptured Section 1250 gain $ — 0.10 0.06 0.24 0.40 $ — $ — 4.77 26 % 0.03 14 % 2.68 60 % 7.48 100 % $ — $ 64 % — 36 % 100 % $ 0.78 2.31 0.10 1.12 4.31 18 % 54 % 2 % 26 % 100 % (1) On December 18, 2009, our Board of Directors declared a quarterly cash dividend of $0.10 per common share for the quarter ended December 31, 2009, that was paid on January 29, 2010, to stockholders of record on December 31, 2009. Pursuant to certain provisions in the Code, this dividend was deemed paid by us and received by our shareholders in 2009. (2) The Company has designated the per share amounts above as capital gain dividends in accordance with the requirements under the Code. (3) On December 18, 2008, our Board of Directors declared a special dividend of $2.08 per common share for the quarter ended December 31, 2008, that was paid on January 29, 2009, to stockholders of record on December 29, 2008. A portion of the special dividend represented an early payment of the regular quarterly dividend of $0.60 per share that would otherwise have been paid in February 2009. Pursuant to certain provisions in the Code, this dividend was deemed paid by us and received by our shareholders in 2008. (4) On December 21, 2007, our Board of Directors declared a special dividend of $2.51 per common share for the quarter ended December 31, 2007, that was paid on January 30, 2008, to stockholders of record on December 31, 2007. A portion of the special dividend represented an early payment of the regular quarterly dividend of $0.60 per share that would otherwise have been paid in February 2008. Pursuant to certain provisions in the Code, this dividend was deemed paid by us and received by our shareholders in 2007. NOTE 10 — Transactions Involving Noncontrolling Interests in Aimco Operating Partnership In December 2008, October 2008, July 2008, and December 2007, the Aimco Operating Partnership declared special distributions payable on January 29, 2009, December 1, 2008, August 29, 2008 and January 30, 2008, respectively, to holders of record of common OP Units and High Performance Units on December 29, 2008, October 27, 2008, July 28, 2008 and December 31, 2007, respectively. The special distributions were paid on common OP Units and High Performance Units in the amounts listed below. The Aimco Operating Partnership distributed to us common OP Units equal to the number of shares we issued pursuant to our corresponding special dividends (discussed in Note 11) in addition to approximately $0.60 per unit in cash. Holders of common OP Units other than us and holders of High Performance Units received the distribution entirely in cash. F-38 Table of Contents Aimco Operating Partnership Special Distributions Distribution per unit Total distribution Common OP Units and High Performance Units outstanding on record date Common OP Units held by Aimco Total distribution on Aimco common OP Units Cash distribution to Aimco Portion of distribution paid to Aimco January 2009 Special Distribution December 2008 Special Distribution August 2008 Special Distribution January 2008 Special Distribution 2.08 $ $ 230.1 million 1.80 $ $ 176.6 million 3.00 $ $ 285.5 million 2.51 $ $ 257.2 million 110,654,142 101,169,951 98,136,520 88,650,980 95,151,333 85,619,144 102,478,510 92,795,891 $ 210.4 million $ 60.6 million $ 159.6 million $ 53.2 million $ 256.9 million $ 51.4 million $ 232.9 million $ 55.0 million through issuance of common OP Units $ 149.8 million $ 106.4 million $ 205.5 million $ 177.9 million Common OP Units issued to Aimco pursuant to distributions Cash distributed to common OP Unit and 15,627,330 12,572,267 5,731,310 4,594,074 High Performance Unit holders other than Aimco $ 19.7 million $ 17.0 million $ 28.6 million $ 24.3 million Preferred OP Units Various classes of preferred OP Units of the Aimco Operating Partnership are outstanding. Depending on the terms of each class, these preferred OP Units are convertible into common OP Units or redeemable for cash, or at the Aimco Operating Partnership’s option, Common Stock, and are paid distributions varying from 5.9% to 9.6% per annum per unit, or equal to the dividends paid on Common Stock based on the conversion terms. As of December 31, 2009 and 2008, a total of 3.1 million and 3.2 million preferred OP Units were outstanding with redemption values of $85.7 million and $88.1 million, respectively. At December 31, 2009 and 2008, a total of 3.1 million and 3.1 million of these preferred OP Units with redemption values of $82.8 million and $85.2 million, respectively, were redeemable into approximately 5.2 million and 7.4 million shares of Common Stock, respectively, or cash at the Aimco Operating Partnership’s option. During the years ended December 31, 2009 and 2008, approximately 68,200 and 38,400 preferred OP Units, respectively, were tendered for redemption in exchange for cash. During the years ended December 31, 2009 and 2008, no preferred OP Units were tendered for redemption in exchange for shares of Common Stock. The Aimco Operating Partnership has a redemption policy that requires cash settlement of redemption requests for the redeemable preferred OP Units, subject to limited exceptions. Common OP Units In 2007, we completed tender offers for limited partnership interests resulting in the issuance of approximately 55,400 common OP Units. Approximately 55,100 of the common OP Units issued in 2007 were to unrelated limited partners in VMS in connection with our purchase of seven properties from the partnership, as discussed in Note 3. In 2009 and 2008, we did not issue a significant number of common OP Units in connection with tender offers for limited partners. During the years ended December 31, 2009 and 2008, approximately 64,000 and 50,000 common OP Units, respectively, were redeemed in exchange for cash, and approximately 519,000 and 114,000 common OP Units, respectively, were redeemed in exchange for shares of Common Stock. High Performance Units From 1998 through 2005, the Aimco Operating Partnership issued various classes of High Performance Units, or HPUs. These HPUs were issued to limited liability companies owned by certain members of our senior F-39 Table of Contents management (and independent directors in the case of Class I HPUs only) in exchange for cash in amounts that we determined, with the assistance of a nationally recognized independent valuation expert, to be the fair value of the HPUs. The terms of the HPUs provide for the issuance, following a measurement period of generally three years of an increased number of HPUs depending on the degree, if any, to which certain financial performance benchmarks are achieved over the applicable measurement period. The holders of HPUs at the conclusion of the measurement period receive the same amount of distributions that are paid to holders of an equivalent number of the Aimco Operating Partnership’s outstanding common OP Units. At December 31, 2009 and 2008, 2,344,719 Class I HPUs, the sole class of HPUs to meet the performance benchmarks, were outstanding. The minimum performance benchmarks were not achieved for HPU Classes II through IX. Accordingly, those HPUs had only nominal value at the conclusion of the related measurement period and were reacquired by the Aimco Operating Partnership and cancelled. NOTE 11 — Aimco Equity Preferred Stock At December 31, 2009 and 2008, we had the following classes of preferred stock outstanding: Perpetual: Class G Cumulative Preferred Stock, $0.01 par value, 4,050,000 shares Annual Dividend Redemption Rate Per Share Balance December 31, 2009 2008 Date(1) (paid quarterly) (thousands) (thousands) authorized, 4,050,000 shares issued and outstanding(2) 07/15/2008 9.3750 % $ 101,000 $ 101,000 Class T Cumulative Preferred Stock, $0.01 par value, 6,000,000 shares authorized, 6,000,000 shares issued and outstanding 07/31/2008 8.000 % 150,000 150,000 Class U Cumulative Preferred Stock, $0.01 par value, 8,000,000 shares authorized, 8,000,000 shares issued and outstanding 03/24/2009 7.750 % 200,000 200,000 Class V Cumulative Preferred Stock, $0.01 par value, 3,450,000 shares authorized, 3,450,000 shares issued and outstanding 09/29/2009 8.000 % 86,250 86,250 Class Y Cumulative Preferred Stock, $0.01 par value, 3,450,000 shares authorized, 3,450,000 shares issued and outstanding 12/21/2009 7.875 % 86,250 86,250 Series A Community Reinvestment Act Preferred Stock, $0.01 par value per share, 240 shares authorized, 134 and 146 shares issued and outstanding(3) 06/30/2011 (3 ) 67,000 73,000 Total Less preferred stock subject to repurchase agreement(4) Preferred stock per consolidated balance sheets $ 690,500 $ 696,500 (30,000 ) — $ 660,500 $ 696,500 (1) All classes of preferred stock are redeemable at our option on and after the dates specified. (2) Includes 10,000 shares held by a consolidated subsidiary that are eliminated in consolidation. (3) During 2006, we sold 200 shares of our Series A Community Reinvestment Act Perpetual Preferred Stock, $0.01 par value per share, or the CRA Preferred Stock, with a liquidation preference of $500,000 per share, for net proceeds of $97.5 million. For the period from the date of original issuance through March 31, 2015, the dividend rate is a variable rate per annum equal to the Three-Month LIBOR Rate (as defined in the articles supplementary designating the CRA Preferred Stock) plus 1.25%, calculated as of the beginning of each quarterly dividend period. The rate at December 31, 2009 and 2008, was 1.54% and 5.01%, respectively. Upon liquidation, holders of the CRA Preferred Stock are entitled to a preference of $500,000 per share, plus an amount equal to accumulated, accrued and unpaid dividends, whether or not earned or declared. The CRA Preferred Stock ranks prior to our Common Stock and on the same level as our outstanding shares of preferred stock with respect to the payment of dividends and the distribution of amounts upon liquidation, dissolution or winding up. The CRA Preferred Stock is not redeemable prior to June 30, 2011, except in limited circumstances related to REIT qualification. On and after June 30, 2011, the CRA Preferred Stock is redeemable for cash, in whole or from time to time in part, at our option, at a price per share equal to the liquidation preference, plus accumulated, accrued and unpaid dividends, if any, to the redemption date. (4) In June 2009, we entered into an agreement to repurchase $36.0 million in liquidation preference of our CRA Preferred Stock at a 30% discount to the liquidation preference. Pursuant to this agreement, in June 2009, we F-40 Table of Contents repurchased 12 shares, or $6.0 million in liquidation preference, of CRA Preferred Stock for $4.2 million, and the holder of the CRA Preferred Stock may require us to repurchase an additional 60 shares, or $30.0 million in liquidation preference, of CRA Preferred Stock over the next three years, for $21.0 million. If required, these additional repurchases will be for up to $10.0 million in liquidation preference in May 2010, 2011 and 2012. Based on the holder’s ability to require us to repurchase an additional 60 shares of CRA Preferred Stock pursuant to this agreement, $30.0 million in liquidation preference of CRA Preferred Stock, or the maximum redemption value of such preferred stock, is classified within temporary equity in our consolidation balance sheet at December 31, 2009. In connection with our June 2009 CRA Preferred Stock repurchase discussed above, we reflected the $1.8 million excess of the carrying value over the repurchase price, offset by $0.2 million of issuance costs previously recorded as a reduction of additional paid-in capital, as a reduction of net income attributable to preferred stockholders for the year ended December 31, 2009. During 2008, we repurchased 54 shares, or $27.0 million in liquidation preference, of our CRA Preferred Stock for cash totaling $24.8 million. We reflected the $2.2 million excess of the carrying value over the redemption price, offset by $0.7 million of issuance costs previously recorded as a reduction of additional paid-in capital, as a reduction of net income attributable to preferred stockholders for purposes of calculating earnings per share for the year ended December 31, 2008. All classes of preferred stock are pari passu with each other and are senior to our Common Stock. The holders of each class of preferred stock are generally not entitled to vote on matters submitted to stockholders. Dividends on all shares of preferred stock are subject to declaration by our Board of Directors. All of the above outstanding classes of preferred stock have a liquidation preference per share of $25, with the exception of the CRA Preferred Stock, which has a liquidation preference per share of $500,000. The dividends paid on each class of preferred stock classified as equity in the years ended December 31, 2009, 2008 and 2007 are as follows (in thousands, except per share data): 2009 2008 2007 Class of Preferred Stock Perpetual: Class G Class T Class U Class V Class Y Series A CRA Convertible: Class W Total Amount Per Share(1) $ 2.34 2.00 1.94 2.00 1.97 10,841 (2) Total Amount Paid Amount Per Share(1) Total Amount Paid Amount Per Share(1) 2.34 2.00 1.94 2.00 1.97 $ 9,492 $ 12,000 15,500 6,900 6,792 1,531 24,381 (3) 52,215 $ 9,492 $ 12,000 15,500 6,900 6,792 4,531 55,215 2.34 2.00 1.94 2.00 1.97 41,661 Total Amount Paid $ 9,492 12,000 15,500 6,900 6,792 8,316 59,000 — — — $ 52,215 — — — $ 55,215 4.25 (4) 8,100 8,100 $ 67,100 (1) Amounts per share are calculated based on the number of preferred shares outstanding either at the end of each year or as of conversion, redemption or repurchase date, as noted. (2) Amount per share is based on 134 shares outstanding for the entire period. 12 shares were repurchased in June 2009 and received $6,509 in dividends through the date of purchase. (3) Amount per share is based on 146 shares outstanding for the entire period. 54 shares were repurchased in September 2008 and received $17,980 in dividends through the date of purchase. F-41 Table of Contents (4) For the period from January 1, 2007, to the date of redemption. Common Stock In December 2008, October 2008, July 2008 and December 2007, in connection with the Aimco Operating Partnership’s special distributions discussed in Note 10, our Board of Directors declared corresponding special dividends payable on January 29, 2009, December 1, 2008, August 29, 2008 and January 30, 2008, respectively, to holders of record of our Common Stock on December 29, 2008, October 27, 2008, July 28, 2008 and December 31, 2007, respectively. A portion of the special dividends in the amounts of $0.60 per share represents payment of the regular dividend for the quarters ended December 31, 2008, September 30, 2008, June 30, 2008 and December 31, 2007, respectively, and the remaining amount per share represents an additional dividend associated with taxable gains from property dispositions. Portions of the special dividends were paid through the issuance of shares of Common Stock. The table below summarizes information regarding these special dividends. Aimco Special Dividends Dividend per share Outstanding shares of Common Stock on the record date Total dividend Portion of dividend paid in cash Portion of dividend paid through issuance of shares Shares issued pursuant to dividend Average share price on determination date Amounts after elimination of the effects of shares of Common Stock held by consolidated subsidiaries: Outstanding shares of Common Stock on the record date Total dividend Portion of dividend paid in cash Portion of dividend paid through issuance January 2009 Special Dividend December 2008 Special Dividend August 2008 Special Dividend January 2008 Special Dividend $ 2.08 $ 1.80 $ 3.00 $ 2.51 101,169,951 $ 210.4 million $ 60.6 million 88,650,980 $ 159.6 million $ 53.2 million 85,619,144 $ 256.9 million $ 51.4 million 92,795,891 $ 232.9 million $ 55.0 million $ 149.8 million 15,627,330 9.58 $ $ 106.4 million 12,572,267 8.46 $ $ 205.5 million 5,731,310 35.84 $ $ 177.9 million 4,594,074 38.71 $ 100,642,817 $ 209.3 million $ 60.3 million 88,186,456 $ 158.7 million $ 52.9 million 85,182,665 $ 255.5 million $ 51.1 million 92,379,751 $ 231.9 million $ 54.8 million of shares Shares issued pursuant to dividend $ 149.0 million 15,548,996 $ 105.8 million 12,509,657 $ 204.4 million 5,703,265 $ 177.1 million 4,573,735 As discussed in Note 2, during December 2009, we adopted the provisions of ASU 2010-01, which relate to accounting for dividends with components of cash and stock. In prior periods, we treated the shares of stock issued in our special dividends similar to stock dividends, with a reclassification within consolidated equity at the beginning of the earliest period presented. In connection with our adoption of ASU 2010-01, we retrospectively adjusted our consolidated balance sheet at December 31, 2008, by increasing accrued liabilities and other by $149.0 million, representing the portion of our special dividend declared in December 2008 that was paid in January 2009 through the issuance of common stock. During 2008, we issued approximately 17,000 shares of Common Stock to certain non-executive officers who purchased the shares at market prices. In exchange for the shares purchased, the officers executed notes payable totaling $0.6 million. No shares were issued under similar arrangements during 2009. These notes, which are 25% recourse to the borrowers, have a 10-year maturity and bear interest either at a fixed rate of 6% annually or a floating rate based on the 30-day LIBOR plus 3.85%, which is subject to an annual interest rate cap of typically 7.25%. Total payments in 2009 and 2008 on all notes from officers were $0.8 million and $1.5 million, respectively. In 2009 and 2008, we reacquired approximately 94,000 and 31,000 shares of Common Stock from officers in exchange for the cancellation of related notes totaling $1.5 million and $1.0 million, respectively. F-42 Table of Contents In addition, in 2009 and 2008, we issued approximately 378,000 and 225,000 restricted shares of Common Stock, respectively, to certain officers and employees. The restricted stock was recorded at the fair market value of the Common Stock on the date of issuance. These shares of restricted Common Stock may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of and are subject to a risk of forfeiture prior to the expiration of the applicable vesting period (ratably over a period of four years). In 2008 and 2007, we purchased in the open market approximately 13.9 million and 7.5 million shares of Common Stock, respectively, at an average price per share of approximately $34.02 and $43.70, respectively. During 2009, we did not repurchase any shares of Common Stock on the open market. Registration Statements We and the Aimco Operating Partnership have a shelf registration statement that provides for the issuance of debt and equity securities by Aimco and debt securities by the Aimco Operating Partnership. NOTE 12 — Share-Based Compensation and Employee Benefit Plans Stock Award and Incentive Plan We adopted the Apartment Investment and Management Company 1997 Stock Award and Incentive Plan, or the 1997 Plan, to attract and retain officers, key employees and independent directors. The 1997 Plan reserved for issuance a maximum of 20 million shares, which may be in the form of incentive stock options, non-qualified stock options and restricted stock, or other types of awards as authorized under the 1997 Plan. The 1997 Plan expired on April 24, 2007. On April 30, 2007, the 2007 Stock Award and Incentive Plan, or the 2007 Plan, was approved as successor to the 1997 Plan. The 2007 Plan reserves for issuance a maximum of 4.1 million shares, which may be in the form of incentive stock options, non-qualified stock options and restricted stock, or other types of awards as authorized under the 2007 Plan. Pursuant to the anti-dilution provisions of the 2007 Plan, the number of shares reserved for issuance has been adjusted to reflect the special dividends discussed in Note 11. At December 31, 2009 there were approximately 1.7 million shares available to be granted under the 2007 Plan. The 2007 Plan is administered by the Compensation and Human Resources Committee of the Board of Directors. In the case of stock options, the exercise price of the options granted may not be less than the fair market value of Common Stock at the date of grant. The term of the options is generally ten years from the date of grant. The options typically vest over a period of one to four or five years from the date of grant. We generally issue new shares upon exercise of options. Restricted stock awards typically vest over a period of three to five years. Refer to Stock-Based Compensation in Note 2 for discussion of our accounting policy related to stock-based compensation. We estimated the fair value of our options using a Black-Scholes closed-form valuation model using the assumptions set forth in the table below. For options granted in 2009 and 2008, the expected term of the options was based on historical option exercises and post-vesting terminations. For options granted in 2007, the expected term of the options reflects the average of the vesting period and the contractual term for the options, with the exception of a grant of approximately 0.6 million options to an executive during 2007, for which the expected term used was equal to the vesting period of five years. Expected volatility reflects the historical volatility of our Common Stock during the historical period commensurate with the expected term of the options that ended on the date of grant. The expected dividend yield reflects expectations regarding cash dividend amounts per share paid on our Common Stock during the expected term of the option and the risk-free interest rate reflects the annualized yield of a zero F-43 Table of Contents coupon U.S. Treasury security with a term equal to the expected term of the option. The weighted average fair value of options and our valuation assumptions for the years ended December 31, 2009, 2008 and 2007 were as follows: Weighted average grant-date fair value Assumptions: Risk-free interest rate Expected dividend yield Expected volatility Weighted average expected life of options 2009 2008 2007 $ 2.47 $ 4.34 $ 6.28 2.26 % 8.00 % 45.64 % 6.9 years 3.12 % 6.02 % 24.02 % 6.5 years 4.70 % 4.94 % 21.66 % 5.6 years The following table summarizes activity for our outstanding stock options for the years ended December 31, 2009, 2008 and 2007 (numbers of options in thousands): 2009(1) 2008(1) 2007(1) Weighted Average Weighted Average Number Exercise Number Exercise Number Exercise of Options Price Weighted Average of Options Price of Options Price Outstanding at beginning of year Granted Exercised Forfeited Adjustment to outstanding options pursuant to special dividends Outstanding at end of year Exercisable at end of year 10,344 $ 965 — (2,436 ) 31.01 8.92 — 32.03 8,555 $ 980 (14 ) (1,423 ) 39.57 39.77 37.45 38.75 8,598 $ 955 (1,403 ) (26 ) — 8,873 $ 6,840 $ n/a 28.22 29.65 2,246 10,344 $ 7,221 $ n/a 31.01 29.51 431 8,555 $ 6,417 $ 39.36 57.25 38.29 37.83 n/a 39.57 37.75 (1) In connection with the special dividends discussed in Note 11, effective on the record date of each dividend, the number of options and exercise prices of all outstanding awards were adjusted pursuant to the anti-dilution provisions of the applicable plans based on the market price of our stock on the ex-dividend dates of the related special dividends. The adjustment to the number of outstanding options is reflected in the table separate from the other activity during the periods at the weighted average exercise price for those outstanding options. The exercise prices for options granted, exercised and forfeited in the table above reflect the actual exercise prices at the time of the related activity. The number and weighted average exercise price for options outstanding and exercisable at the end of year reflect the adjustments for the applicable special dividends. The adjustment of the awards pursuant to the special dividends is considered a modification of the awards, but did not result in a change in the fair value of any awards and therefore did not result in a change in total compensation to be recognized over the remaining term of the awards. The intrinsic value of a stock option represents the amount by which the current price of the underlying stock exceeds the exercise price of the option. Options outstanding at December 31, 2009, had an aggregate intrinsic value of $5.7 million and a weighted average remaining contractual term of 4.4 years. Options exercisable at December 31, 2008, had no aggregate intrinsic value and a weighted average remaining contractual term of 5.7 years. No stock options were exercised during the year ended 2009. The intrinsic value of stock options exercised during the years ended December 31, 2008 and 2007, was less than $0.1 million and $28.9 million, respectively. We may realize tax benefits in connection with the exercise of options by employees of our taxable subsidiaries. As no stock options were exercised during the year ended December 31, 2009, we realized no related tax benefits. F-44 Table of Contents The following table summarizes activity for restricted stock awards for the years ended December 31, 2009, 2008 and 2007 (numbers of shares in thousands): 2009 Weighted Average 2007 Weighted Average Number of Grant-Date Number of Grant-Date Number of Grant-Date Fair Value Shares 2008 Weighted Average Fair Value Shares Fair Value Shares Unvested at beginning of year Granted Vested Forfeited Issued pursuant to special dividends(1) Unvested at end of year 893 $ 378 (418 ) (533 ) 138 458 $ 40.33 8.92 34.42 28.57 9.58 24.23 960 $ 248 (377 ) (128 ) 190 893 $ 46.08 39.85 43.45 46.85 22.51 40.33 1,088 $ 308 (387 ) (49 ) — 960 $ 40.11 60.13 40.31 47.43 — 46.08 (1) This represents shares of restricted stock issued to holders of restricted stock pursuant to the special dividends discussed in Note 11. The weighted average grant-date fair value for these shares represents the price of our stock on the determination date for each dividend. The issuance of the additional shares of restricted stock resulted in no incremental compensation expense. The aggregate fair value of shares that vested during the years ended December 31, 2009, 2008 and 2007 was $3.1 million, $16.5 million and $19.5 million, respectively. Total compensation cost recognized for restricted stock and stock option awards was $8.0 million, $17.6 million and $19.2 million for the years ended December 31, 2009, 2008 and 2007, respectively. Of these amounts, $1.3 million, $3.8 million and $4.3 million, respectively, were capitalized. At December 31, 2009, total unvested compensation cost not yet recognized was $10.1 million. We expect to recognize this compensation over a weighted average period of approximately 1.5 years. Employee Stock Purchase Plan Under the terms of our employee stock purchase plan, eligible employees may authorize payroll deductions up to 15% of their base compensation to purchase shares of our Common Stock at a five percent discount from its fair value on the last day of the calendar quarter during which payroll deductions are made. In 2009, 2008 and 2007, 20,076, 8,926 and 3,751 shares were purchased under this plan at an average price of $8.82, $23.86 and $44.67, respectively. No compensation cost is recognized in connection with this plan. 401(k) Plan We provide a 401(k) defined-contribution employee savings plan. Employees who have completed 30 days of service and are age 18 or older are eligible to participate. For the period from January 1, 2009 through January 29, 2009, and during the years ended December 31, 2008 and 2007, our matching contributions were made in the following manner: (1) a 100% match on the first 3% of the participant’s compensation; and (2) a 50% match on the next 2% of the participant’s compensation. On December 31, 2008, we suspended employer matching contributions effective January 29, 2009. We may reinstate employer matching contributions at any time. We incurred costs in connection with this plan of approximately $0.6 million, $5.2 million and $5.2 million in 2009, 2008 and 2007, respectively. NOTE 13 — Discontinued Operations and Assets Held for Sale We report as discontinued operations real estate assets that meet the definition of a component of an entity and have been sold or meet the criteria to be classified as held for sale. We include all results of these discontinued operations, less applicable income taxes, in a separate component of income on the consolidated statements of income under the heading “income from discontinued operations, net.” This treatment resulted in the retrospective adjustment of 2008 and 2007 financial statement amounts. F-45 Table of Contents We are currently marketing for sale certain real estate properties that are inconsistent with our long-term investment strategy. At the end of each reporting period, we evaluate whether such properties meet the criteria to be classified as held for sale, including whether such properties are expected to be sold within 12 months. Additionally, certain properties that do not meet all of the criteria to be classified as held for sale at the balance sheet date may nevertheless be sold and included in discontinued operations in the subsequent 12 months; thus the number of properties that may be sold during the subsequent 12 months could exceed the number classified as held for sale. At December 31, 2009 and 2008, we had four and 93 properties, with an aggregate of 845 and 23,348 units, classified as held for sale, respectively. Amounts classified as held for sale in the accompanying consolidated balance sheets are as follows (in thousands): Real estate, net Other assets Assets held for sale Property debt Other liabilities Liabilities related to assets held for sale December 31, December 31, 2009 2008 $ $ $ $ 32,773 $ 953 33,726 $ 29,177 $ 1,226 30,403 $ 1,059,362 14,477 1,073,839 759,327 12,551 771,878 During the years ended December 31, 2009, 2008 and 2007, we sold 89, 151 and 73 consolidated properties with an aggregate 22,503, 37,202 and 11,588 units, respectively. For the years ended December 31, 2009, 2008 and 2007, discontinued operations includes the results of operations for the periods prior to the date of sale for all properties sold or classified as held for sale as of December 31, 2009. The following is a summary of the components of income from discontinued operations for the years ended December 31, 2009, 2008 and 2007 (in thousands): Rental and other property revenues Property operating expenses Depreciation and amortization Provision for operating real estate impairment losses Other expenses, net Operating (loss) income Interest income Interest expense Gain on extinguishment of debt (Loss) income before gain on dispositions of real estate and income taxes Gain on dispositions of real estate Income tax benefit (expense) Income from discontinued operations, net Income from discontinued operation attributable to: Noncontrolling interests in consolidated real estate partnerships Noncontrolling interests in Aimco Operating Partnership Total noncontrolling interests Aimco 2009 2008 2007 $ 152,812 (77,267 ) (51,155 ) (54,530 ) (9,750 ) (39,890 ) 112 (30,592 ) 259 (70,111 ) 221,793 555 $ 152,237 $ 463,232 (228,423 ) (122,549 ) (27,420 ) (12,892 ) 71,948 1,747 (89,356 ) — (15,661 ) 800,335 (39,794 ) $ 744,880 $ 599,183 (295,741 ) (152,446 ) (5,430 ) (7,550 ) 138,016 3,747 (117,268 ) 31,597 56,092 117,627 (2,104 ) $ 171,615 $ (60,008 ) (6,891 ) (66,899 ) $ 85,338 $ (149,383 ) (57,732 ) (207,115 ) $ 537,765 $ (68,360 ) (9,592 ) (77,952 ) $ 93,663 Gain on dispositions of real estate is reported net of incremental direct costs incurred in connection with the transaction, including any prepayment penalties incurred upon repayment of property loans collateralized by the F-46 Table of Contents property being sold. Such prepayment penalties totaled $29.0 million, $64.9 million and $12.6 million for the years ended December 31, 2009, 2008 and 2007, respectively. We classify interest expense related to property debt within discontinued operations when the related real estate asset is sold or classified as held for sale. As discussed in Note 2, during the year ended December 31, 2009, we allocated $10.1 million of goodwill related to our real estate segment to the carrying amounts of the properties sold or classified as held for sale. Of these amounts, $8.7 million was reflected as a reduction of gain on dispositions of real estate and $1.4 million was reflected as an adjustment of impairment losses. NOTE 14 — Earnings per Share We calculate earnings per share based on the weighted average number of shares of Common Stock, participating securities, common stock equivalents and dilutive convertible securities outstanding during the period. The following table illustrates the calculation of basic and diluted earnings per share for the years ended December 31, 2009, 2008 and 2007 (in thousands, except per share data): Numerator: Loss from continuing operations Loss (income) from continuing operations attributable to noncontrolling interests 47,425 (50,566 ) Income attributable to preferred stockholders Income attributable to participating securities — Loss from continuing operations attributable to Aimco common stockholders $ (197,037 ) $ (117,878 ) (7,880 ) (53,708 ) (6,985 ) $ (200,178 ) $ (186,451 ) $ (46,109 ) (17,643 ) (66,016 ) (4,481 ) $ (134,249 ) 2009 2008 2007 Income from discontinued operations Income from discontinued operations attributable to noncontrolling interests Income from discontinued operations attributable to Aimco common stockholders Net (loss) income Net income attributable to noncontrolling interests Income attributable to preferred stockholders Income attributable to participating securities Net (loss) income attributable to Aimco common stockholders Denominator: Denominator for basic earnings per share — weighted average number of shares of Common Stock outstanding Effect of dilutive securities: Dilutive potential common shares Denominator for diluted earnings per share $ 152,237 $ 744,880 (207,115 ) (66,899 ) $ 171,615 (77,952 ) $ 85,338 $ 537,765 $ 93,663 $ (44,800 ) $ 627,002 (214,995 ) (19,474 ) (53,708 ) (50,566 ) (6,985 ) — $ (114,840 ) $ 351,314 $ 125,506 (95,595 ) (66,016 ) (4,481 ) $ (40,586 ) 114,301 88,690 95,107 — 114,301 — 88,690 — 95,107 Earnings (loss) per common share — basic and diluted: Loss from continuing operations attributable to Aimco common stockholders $ Income from discontinued operations attributable to Aimco common (1.75 ) $ (2.10 ) $ (1.41 ) stockholders Net (loss) income attributable to Aimco common stockholders 0.75 (1.00 ) $ 6.06 3.96 $ 0.98 (0.43 ) $ F-47 Table of Contents As discussed in Note 2, earnings (loss) per common share for the years ended December 31, 2008 and 2007 have been retroactively adjusted for the effect of our adoption of FSP EITF 03-6-1 and FASB ASU 2010-01. As of December 31, 2009, 2008 and 2007, the common share equivalents that could potentially dilute basic earnings per share in future periods totaled 8.9 million, 9.2 million and 8.1 million, respectively. These securities, representing stock options, have been excluded from the earnings per share computations for the years ended December 31, 2009, 2008 and 2007, because their effect would have been anti-dilutive. Participating securities, consisting of unvested restricted stock and shares purchased pursuant to officer loans, receive dividends similar to shares of Common Stock and totaled 0.5 million, 1.0 million and 1.2 million at December 31, 2009, 2008 and 2007, respectively. The effect of participating securities is reflected in basic and diluted earnings per share computations for the periods presented above using the two-class method of allocating distributed and undistributed earnings. During the year ended December 31, 2009, the adjustment to compensation expense recognized related to cumulative dividends on forfeited shares of restricted stock exceeded the amount of dividends declared related to participating securities. Accordingly, distributed earnings attributed to participating securities during 2009 were reduced to zero for purposes of calculating earnings per share using the two-class method. As discussed in Note 10, the Aimco Operating Partnership has various classes of preferred OP units, which may be redeemed at the holders’ option. The Aimco Operating Partnership may redeem these units for cash or at its option, shares of Common Stock. During the periods presented, no common share equivalents related to these preferred OP units have been included in earnings per share computations because their effect was antidilutive. NOTE 15 — Unaudited Summarized Consolidated Quarterly Information Summarized unaudited consolidated quarterly information for 2009 and 2008 is provided below (in thousands, except per share amounts). 2009 Total revenues Total operating expenses Operating income Loss from continuing operations Income from discontinued operations, net Net (loss) income Loss attributable to Aimco common stockholders Loss per common share — basic and diluted: Loss from continuing operations attributable to Aimco common stockholders Net loss attributable to Aimco common stockholders Weighted average common shares outstanding(2) Weighted average common shares and common share equivalents First Second Third Fourth Quarter(1) $ 297,501 $ 299,059 $ 296,396 $ 302,807 (277,984 ) (265,851 ) 24,823 31,650 (63,546 ) (35,344 ) 68,502 2,773 4,956 (32,571 ) (6,728 ) (37,698 ) (276,891 ) 19,505 (54,659 ) 45,102 (9,557 ) (40,490 ) (264,524 ) 34,535 (43,488 ) 35,860 (7,628 ) (29,924 ) (0.33 ) $ (0.34 ) $ $ $ 110,262 (0.39 ) $ (0.26 ) $ (0.46 ) $ (0.34 ) $ 115,510 115,563 (0.57 ) (0.06 ) 115,871 outstanding(2) 110,262 115,510 115,563 115,871 F-48 Table of Contents 2008 First Second Third Fourth Quarter(1) Total revenues Total operating expenses(3) Operating income (loss)(3) (Loss) income from continuing operations(3) Income from discontinued operations, net Net (loss) income Net (loss) income attributable to Aimco common stockholders Earnings (loss) per common share — basic and diluted: (Loss) income from continuing operations attributable to Aimco common stockholders Net (loss) income attributable to Aimco common stockholders Weighted average common shares outstanding(2) Weighted average common shares and common share equivalents $ 296,362 $ 321,278 $ 321,274 $ 304,256 (389,476 ) (258,269 ) (85,220 ) 38,093 (140,726 ) (33,247 ) 211,045 9,587 70,319 (23,660 ) (9,898 ) (38,857 ) (273,586 ) 47,688 75,722 161,667 237,389 158,313 (263,740 ) 57,538 (19,627 ) 362,581 342,954 239,119 (0.49 ) $ (0.43 ) $ $ $ 89,465 (0.48 ) $ 2.72 $ 87,790 85,992 0.56 $ 1.84 $ (1.60 ) (0.11 ) 91,515 outstanding(2) 89,465 87,790 86,297 91,515 (1) Certain reclassifications have been made to 2009 and 2008 quarterly amounts to conform to the full year 2009 presentation, primarily related to treatment of discontinued operations and newly adopted accounting standards (see Note 2). (2) As discussed in Note 2, in December 2009, we adopted the provisions of ASU 2010-01, which resulted in reductions in the number of weighted average common shares and common share equivalents outstanding, as compared to the amounts previously reported. (3) Total operating expenses, operating income (loss) and (loss) income from continuing operations for the quarter ended December 31, 2008, includes a $91.1 million provision for impairment losses on real estate development assets, which is discussed further in Note 2. NOTE 16 — Transactions with Affiliates We earn revenue from affiliated real estate partnerships. These revenues include fees for property management services, partnership and asset management services, risk management services and transactional services such as refinancing, construction supervisory and disposition (including promote income, which is income earned in connection with the disposition of properties owned by certain of our consolidated joint ventures). In addition, we are reimbursed for our costs in connection with the management of the unconsolidated real estate partnerships. These fees and reimbursements for the years ended December 31, 2009, 2008 and 2007 totaled $18.5 million, $72.5 million and $42.1 million, respectively. The total accounts receivable due from affiliates was $23.7 million, net of allowance for doubtful accounts of $3.4 million, at December 31, 2009, and $39.0 million, net of allowance for doubtful accounts of $2.8 million, at December 31, 2008. Additionally, we earn interest income on notes from real estate partnerships in which we are the general partner and hold either par value or discounted notes. During the years ended December 31, 2009 and 2008, we did not recognize a significant amount of interest income on par value notes from unconsolidated real estate partnerships. Interest income earned on par value notes from unconsolidated real estate partnerships totaled $8.1 million for the year ended December 31, 2007. Accretion income recognized on discounted notes from affiliated real estate partnerships totaled $0.1 million, $1.4 million and $8.1 million for the years ended December 31, 2009, 2008 and 2007, respectively. See Note 5 for additional information on notes receivable from unconsolidated real estate partnerships. F-49 Table of Contents NOTE 17 — Business Segments Our chief operating decision maker uses various generally accepted industry financial measures to assess the performance and financial conditions of the business, including: Net Asset Value, which is the estimated fair value of our assets, net of debt, or NAV; Funds From Operations, or FFO; Adjusted FFO, or AFFO, which is FFO less spending for Capital Replacements; same store property operating results; net operating income; Free Cash Flow which is net operating income less spending for Capital Replacements; financial coverage ratios; and leverage as shown on our balance sheet. Our chief operating decision maker emphasizes net operating income as a key measurement of segment profit or loss. Segment net operating income is generally defined as segment revenues less direct segment operating expenses. We have two reportable segments: real estate and investment management. Real Estate Segment Our real estate segment owns and operates properties that generate rental and other property-related income through the leasing of apartment units to a diverse base of residents. Our real estate segment’s net operating income also includes income from property management services performed for unconsolidated partnerships and unrelated parties. Investment Management Segment Our investment management segment includes portfolio strategy, capital allocation, joint ventures, tax credit syndication, acquisitions, dispositions and other transaction activities. The expenses of this segment consist primarily of the costs of departments that perform these activities. These activities are conducted in part by our taxable subsidiaries, and the related net operating income may be subject to income taxes. Our investment management segment’s operating results also include gains on dispositions of non-depreciable assets, accretion of loan discounts resulting from transactional activities and certain other income in arriving at income (loss) from continuing operations for the segment. The following tables present the revenues, net operating income (loss) and income (loss) from continuing operations of our real estate and investment management segments for the years ended December 31, 2009, 2008 and 2007 (in thousands): Corporate Not Allocated Investment to Segments Real Estate Management and Certain Eliminations Segment Segment Total Year Ended December 31, 2009: Rental and other property revenues Property management revenues, primarily from affiliates Asset management and tax credit revenues Total revenues Property operating expenses Property management expenses Investment management expenses Depreciation and amortization(1) Provision for operating real estate impairment losses General and administrative expenses Other expenses, net Restructuring costs Total operating expenses Net operating income (loss) Other items included in continuing operations(2) $ 1,140,828 $ 5,082 — 1,145,910 521,161 2,869 — — — — — — 524,030 621,880 — Income (loss) from continuing operations $ 621,880 $ — $ — 52,193 52,193 — — 15,779 — — — — — 15,779 36,414 1,659 38,073 $ — $ 1,140,828 5,082 — 49,853 (2,340 ) 1,195,763 (2,340 ) 521,161 — 2,869 — 15,779 — 444,413 444,413 2,329 2,329 69,567 69,567 17,891 17,891 11,241 11,241 1,085,250 545,441 (547,781 ) 110,513 (307,550 ) (309,209 ) (856,990 ) $ (197,037 ) F-50 Table of Contents Corporate Not Allocated to Investment Segments and Real Estate Management Segment Segment Certain Eliminations Total Year Ended December 31, 2008: Rental and other property revenues Property management revenues, primarily from affiliates Asset management and tax credit revenues Total revenues Property operating expenses Property management expenses Investment management expenses Depreciation and amortization(1) Provision for impairment losses on real estate development $ 1,137,995 $ 6,345 — 1,144,340 526,238 5,385 — — assets General and administrative expenses Other expenses, net Restructuring costs Total operating expenses Net operating income (loss) Other items included in continuing operations(2) — — — — 531,623 612,717 — Income (loss) from continuing operations $ 612,717 $ — $ — 101,225 101,225 — — 24,784 — — — — — 24,784 76,441 (2,227 ) 74,214 $ — $ 1,137,995 6,345 — 98,830 (2,395 ) 1,243,170 (2,395 ) 526,238 — 5,385 — 24,784 — 392,999 392,999 91,138 91,138 99,157 99,157 22,568 22,568 22,802 22,802 628,664 1,185,071 (631,059 ) 58,099 (175,977 ) (173,750 ) (804,809 ) $ (117,878 ) Investment Corporate Real Estate Management Not Allocated to Segments Segment Segment Total Year Ended December 31, 2007: Rental and other property revenues Property management revenues, primarily from affiliates Asset management and tax credit revenues Total revenues Property operating expenses Property management expenses Investment management expenses Depreciation and amortization(1) Provision for operating real estate impairment losses General and administrative expenses Other expenses, net Total operating expenses Net operating income (loss) Other items included in continuing operations(2) $ 1,093,779 $ 6,923 — 1,100,702 503,890 6,678 — — — — — 510,568 590,134 — Income (loss) from continuing operations $ 590,134 $ — $ — 73,755 73,755 — — 20,507 — — — — 20,507 53,248 7,305 60,553 $ — $ 1,093,779 6,923 — 73,755 — 1,174,457 — 503,890 — 6,678 — 20,507 — 347,491 347,491 1,080 1,080 90,674 90,674 19,338 19,338 989,658 458,583 184,799 (458,583 ) (230,908 ) (238,213 ) (46,109 ) (696,796 ) $ F-51 Table of Contents (1) Our chief operating decision maker assesses the performance of real estate using, among other measures, net operating income, excluding depreciation and amortization. Accordingly, we do not allocate depreciation and amortization to the real estate segment. (2) Other items in continuing operations for the investment management segment include accretion income recognized on discounted notes receivable, other income items and income taxes associated with transactional activities. Other items in continuing operations not allocated to segments include: (i) interest income and expense; (ii) provisions for losses on notes receivable; (iii) equity in losses of unconsolidated real estate partnerships and impairment losses related to unconsolidated real estate partnerships; and (iv) gain on dispositions of unconsolidated real estate and other. During the years ended December 31, 2009, 2008 and 2007, for continuing operations, our rental revenues include $140.3 million, $132.3 million and $121.4 million, respectively, of subsidies from government agencies, which represented 12.2%, 11.6% and 11.0%, respectively, of our real estate segment revenues. The assets of our reportable segments are as follows (in thousands): Total assets for reportable segments(1) Corporate and other assets Total consolidated assets 2009 2008 $ 7,683,449 223,019 $ 7,906,468 $ 9,074,131 367,739 $ 9,441,870 (1) Total assets for reportable segments primarily relate to the real estate segment. Our capital additions primarily relate to the real estate segment and totaled $275.4 million, $665.2 million and $689.7 million for the years ended December 31, 2009, 2008 and 2007, respectively. F-52 Table of Contents APARTMENT INVESTMENT AND MANAGEMENT COMPANY REAL ESTATE AND ACCUMULATED DEPRECIATION December 31, 2009 (In Thousands Except Unit Data) (2) Initial Cost Property Name Property Type (1) Date Consolidated Location (3) Cost Capitalized Buildings and Subsequent to Year Number Built of Units Land Improvements Consolidation Land Improvements Total Buildings and (5) December 31, 2009 Total Accumulated Cost Depreciation Net of AD (AD) Encumbrances Continuing Operations: Conventional Properties: 100 Forest Place 1582 First Avenue 173 E. 90th Street 182-188 Columbus High Rise Dec-97 High Rise Mar-05 High Rise May-04 OakPark, IL New York, NY New York, NY 1987 1900 1910 234 2,664 17 4,250 72 11,773 18,815 752 4,535 4,493 2,664 224 4,281 1,445 12,067 23,308 25,972 945 5,226 5,686 17,753 (8,692 ) 17,280 (249 ) 4,977 (1,365 ) 16,388 27,761 2,671 8,772 Avenue Mid Rise Feb-07 New York, NY 1910 32 17,187 3,300 3,690 19,123 5,054 24,177 (992 ) 23,185 13,471 204-206 West 133rd Street Mid Rise Jun-07 New York, NY 1910 44 3,291 1,450 1,921 4,352 2,310 6,662 (303 ) 6,359 3,132 2232-2240 Seventh Avenue Mid Rise Jun-07 New York, NY 1910 24 2,863 3,785 1,477 3,366 4,759 8,125 (517 ) 7,608 2,972 2247-2253 Seventh Avenue Mid Rise Jun-07 New York, NY 1910 35 6,787 3,335 1,464 7,356 4,230 11,586 (586 ) 11,000 5,483 2252-2258 Seventh Avenue Mid Rise Jun-07 New York, NY 1910 35 3,623 4,504 1,814 4,318 5,623 9,941 (772 ) 9,169 5,125 2300-2310 Seventh Avenue 236 — 238 East 88th Street 237-239 Ninth Avenue 240 West 73rd Street, Mid Rise Jun-07 New York, NY 1910 63 8,623 6,964 5,260 10,417 10,430 20,847 (1,441 ) 19,406 9,896 High Rise Jan-04 High Rise Mar-05 New York, NY New York, NY 1900 1900 43 8,751 36 8,430 2,914 1,866 1,295 8,820 770 8,494 4,140 12,960 2,572 11,066 (1,155 ) 11,805 (614 ) 10,452 LLC High Rise Sep-04 2484 Seventh Avenue Mid Rise Jun-07 2900 on First Apartments Mid Rise Oct-08 306 East 89th Street High Rise Jul-04 311 & 313 East 73rd New York, NY New York, NY Seattle, WA New York, NY 1900 1921 1989 1930 200 68,006 23 2,384 135 19,015 20 2,659 Street 322-324 East 61st Street 3400 Avenue of the Arts 452 East 78th Street 464-466 Amsterdam & Mid Rise Mar-03 High Rise Mar-05 Mid Rise Mar-02 High Rise Jan-04 New York, NY New York, NY Costa Mesa, CA New York, NY 1904 1900 1987 1900 34 5,635 40 6,319 770 55,223 12 1,966 200-210 W. 83rd Street Mid Rise Feb-07 510 East 88th Street High Rise Jan-04 514-516 East 88th Street High Rise Mar-05 656 St. Nicholas Avenue Mid Rise Jun-07 759 St. Nicholas Avenue Mid Rise Oct-07 Jul-00 865 Bellevue Garden Arbors (Grovetree), The Garden Oct-97 Arbours Of Hermitage, The Atriums of Plantation Auburn Glen BaLaye Bank Lofts Bay Parc Plaza Bay Ridge at Nashua Bayberry Hill Estates Bayhead Village Boston Lofts Boulder Creek Brandywine Breakers, The Broadcast Center Buena Vista Jul-00 Garden Mid Rise Aug-98 Dec-06 Garden Garden Apr-06 High Rise Apr-01 High Rise Sep-04 Jan-03 Garden Garden Aug-02 Oct-00 Garden High Rise Apr-01 Jul-94 Garden Jul-94 Garden Oct-98 Garden Garden Mar-02 Mid Rise Jan-06 New York, NY New York, NY New York, NY New York, NY New York, NY Nashville, TN Tempe, AZ 1910 1900 1900 1920 1920 1972 1967 1972 Hermitage, TN 1979 Plantation, FL 1974 Jacksonville, FL 2002 Tampa, FL 1920 Denver, CO 2000 Miami, FL Nashua, NH 1984 Framingham, MA 1971 1978 Indianapolis, IN 1890 Denver, CO Boulder, CO 1972 St. Petersburg, FL 1971 Daytona Beach, FL 1985 Los Angeles, CA 1990 1973 Pasadena, CA 72 23,677 20 3,137 36 6,230 31 2,731 682 9 326 3,558 200 1,092 350 3,217 210 1,807 251 7,483 324 10,329 117 3,525 471 22,680 412 3,352 424 18,915 202 1,411 158 3,447 221 755 477 1,437 208 1,008 279 27,603 92 9,693 12,140 1,726 17,518 1,006 1,609 2,224 65,506 608 7,101 1,002 2,168 1,636 535 12,037 6,208 12,023 10,385 8,191 28,800 9,045 41,847 40,713 35,945 5,139 20,589 7,730 12,725 5,507 41,244 6,818 3,563 68,109 468 2,601 330 19,071 167 2,681 15,600 83,709 1,977 4,578 17,792 36,863 1,151 3,832 (2,827 ) 80,882 (243 ) 4,335 (860 ) 36,003 (350 ) 3,482 546 5,678 681 6,372 73,301 57,240 278 1,982 2,112 7,790 2,852 9,224 136,790 194,030 870 2,852 (940 ) 6,850 (707 ) 8,517 (31,750 ) 162,280 (242 ) 2,610 3,881 25,552 278 3,163 556 6,282 2,774 3,576 587 1,013 27,055 3,558 2,940 1,092 6,795 3,217 2,833 1,807 3,202 7,670 969 10,608 1,668 3,525 4,097 22,680 6,895 3,262 8,744 18,916 3,482 1,411 3,188 3,447 17,156 755 8,763 1,437 9,107 34,659 1,254 4,417 2,672 8,954 3,565 7,141 791 1,804 39,092 42,650 9,148 10,240 18,818 22,035 13,218 15,025 11,206 18,876 29,490 40,098 10,713 14,238 45,944 68,624 47,698 50,960 44,688 63,604 8,621 10,032 23,777 27,224 24,886 25,641 21,488 22,925 (1,241 ) 33,418 (307 ) 4,110 (618 ) 8,336 (467 ) 6,674 (84 ) 1,720 (11,840 ) 30,810 (4,038 ) 6,202 (8,527 ) 13,508 (5,151 ) 9,874 (2,098 ) 16,778 (4,187 ) 35,911 (4,668 ) 9,570 (6,612 ) 62,012 (10,541 ) 40,419 (14,036 ) 49,568 (3,400 ) 6,632 (9,855 ) 17,369 (11,913 ) 13,728 (13,782 ) 9,143 3,257 1,008 29,066 29,407 1,126 9,693 8,764 9,772 68,506 97,913 7,944 17,637 (3,856 ) 5,916 (15,963 ) 81,950 (768 ) 16,869 F-53 6,879 5,227 30,286 2,472 20,719 1,908 2,761 3,691 119,869 1,600 19,679 2,634 4,607 2,374 545 19,184 6,743 10,258 5,780 9,912 23,012 7,242 46,294 40,766 35,250 2,728 14,559 12,031 21,124 6,378 55,875 10,607 Table of Contents Property Name Property Type (1) Date Consolidated Location (2) Initial Cost (3) Cost Capitalized Buildings and Subsequent to Year Number Built of Units Land Improvements Consolidation Land Improvements Total Buildings and (5) December 31, 2009 Total Accumulated Cost Depreciation Net of AD (AD) Encumbrances 130 15,382 348 60 10,215 957 14,817 15,765 348 392 24,649 40,414 1,349 1,697 (9,223 ) 31,191 484 (1,213 ) Garden Mar-01 High Rise Dec-98 Dec-99 Garden Mar-02 Garden Jul-00 Garden Burke, VA 1986 Minneapolis, MN 1928 1979 Fort Wayne, IN Saugus, CA 1984 East Lansing, MI 1972 360 4,867 332 11,708 1,988 13,659 130 7,300 143 1,957 Burke Shire Commons Calhoun Beach Club Canterbury Green Canyon Terrace Carriage Hill Casa del Mar at Baymeadows Oct-06 Garden Garden Apr-00 Cedar Rim High Rise Oct-99 Center Square Sep-00 Garden Charleston Landing Sep-00 Chesapeake Landing I Garden Mar-01 Chesapeake Landing II Garden High Rise Oct-06 Chestnut Hall Chestnut Hill Apr-00 Garden Chimneys of Cradle Rock Citrus Grove Colonnade Gardens Colony at Kenilworth Columbus Avenue Country Lakes I Country Lakes II Creekside Creekside Crescent at West Hollywood, The Defoors Crossing Douglaston Villas and Townhomes Elm Creek Evanston Place Fairlane East Farmingdale Ferntree Fisherman’s Village Fishermans Wharf Flamingo Towers Jun-04 Garden Jun-98 Garden Oct-97 Garden Garden Oct-99 Mid Rise Sep-03 Apr-01 Garden May-97 Garden Jan-00 Garden Mar-02 Garden Mid Rise Mar-02 Jan-06 Garden Garden Aug-99 Mid Rise Dec-97 High Rise Dec-97 Garden Jan-01 Mid Rise Oct-00 Mar-01 Garden Jan-06 Garden Garden Nov-96 High Rise Sep-97 Forestlake Apartments Four Quarters Habitat Foxchase Georgetown Garden Garden Garden Garden Mar-07 Jan-06 Dec-97 Aug-02 Mar-07 Garden Garden Sep-03 Mid Rise Aug-02 Dec-99 Garden Jul-94 Garden Glen at Forestlake, The Glenbridge Manors Granada Grand Pointe Greens Greenspoint at Paradise Valley Hampden Heights Harbour, The Heritage Park at Alta 1984 Jacksonville, FL Newcastle, WA 1980 Doylestown, PA 1975 1985 Brandon, FL 1986 Aurora, IL Aurora, IL 1987 Philadelphia, PA 1923 Philadelphia, PA 1963 1982 1987 1979 Columbia, MD 1985 Redlands, CA 1973 Phoenix, AZ 1966 Towson, MD 1880 New York, NY 1982 Naperville, IL 1986 Naperville, IL Denver, CO 1974 Simi Valley, CA 1985 West Hollywood, CA Atlanta, GA Altamonte 1979 Springs, FL 1986 Elmhurst, IL 1988 Evanston, IL 1973 Dearborn, MI 1975 Darien, IL 1968 Phoenix, AZ 1982 Indianapolis, IN Clute, TX 1981 Miami Beach, FL 1960 Daytona Beach, 1982 FL 1976 Miami, FL 1947 Alexandria, VA Framingham, MA 1964 Daytona Beach, 1982 FL Cincinnati, OH 1978 Framingham, MA 1958 1974 Columbia, MD 2000 Chandler, AZ 144 4,902 761 104 350 582 300 7,488 416 15,800 184 1,969 315 12,047 821 6,463 198 2,234 198 1,118 196 766 383 2,403 59 35,472 240 8,512 400 5,165 328 2,953 397 24,595 234 1,666 372 5,534 189 3,232 244 6,550 240 11,763 219 2,078 328 2,156 360 1,257 1,127 32,191 120 3,691 336 2,383 2,113 15,419 207 12,351 897 26 274 1,030 72 4,577 325 2,715 324 2,303 Garden Garden Garden Jan-00 Jan-00 Mar-01 Phoenix, AZ Denver, CO Melbourne, FL 1985 1973 1987 336 3,042 376 3,224 162 4,108 Loma Garden Heritage Park Escondido Garden Heritage Park Livermore Garden Heritage Park Montclair Garden Jan-01 Oct-00 Alta Loma, CA Escondido, CA 1986 1986 232 1,200 196 1,055 Oct-00 Mar-01 Livermore, CA Montclair, CA 1988 1985 167 1,039 690 144 F-54 23,617 73,334 73,115 6,602 7,912 10,562 5,218 4,190 8,656 16,875 7,980 14,299 49,315 8,107 6,642 4,346 18,798 9,450 10,832 29,430 12,697 18,818 3,860 4,867 45,743 11,708 25,704 13,659 5,909 7,508 2,053 1,957 27,477 32,344 119,077 130,785 98,819 112,478 12,303 19,811 9,965 11,922 (10,304 ) 22,040 (40,408 ) 90,377 (45,994 ) 66,484 (3,593 ) 16,218 (5,434 ) 6,488 1,403 5,039 761 17,174 3,532 582 7,711 7,488 4,931 15,800 3,308 1,969 4,653 12,338 48,996 6,463 578 2,040 2,186 1,118 2,912 766 10,801 2,403 3,599 35,527 3,300 8,512 5,921 5,165 5,028 3,189 6,775 25,245 11,828 16,867 22,392 23,153 7,722 8,304 16,367 23,855 21,806 37,606 11,288 13,257 18,661 30,999 98,311 104,774 8,879 10,919 8,828 9,946 7,258 8,024 29,599 32,002 12,994 48,521 14,132 22,644 35,351 40,516 17,489 20,678 24,943 50,188 (1,752 ) 15,115 (9,405 ) 13,748 (3,104 ) 5,200 (5,745 ) 18,110 (7,748 ) 29,858 (4,730 ) 8,527 (3,996 ) 27,003 (36,814 ) 67,960 (2,284 ) 8,635 (3,983 ) 5,963 (3,615 ) 4,409 (14,784 ) 17,218 (4,970 ) 43,551 (5,213 ) 17,431 (14,200 ) 26,316 (7,788 ) 12,890 (8,109 ) 42,079 9,353 30,830 25,546 11,711 15,174 13,752 9,936 7,584 38,399 4,320 17,199 96,062 13,168 862 17,447 4,058 16,771 713 13,223 12,905 3,563 6,428 7,565 9,170 4,149 7,460 1,666 17,422 5,635 4,398 3,232 5,136 6,550 9,177 11,763 3,195 2,079 2,685 2,156 5,428 1,257 217,720 32,239 16,813 18,479 48,151 53,786 29,944 33,176 16,847 23,397 24,351 36,114 16,946 19,025 12,621 14,777 13,012 14,269 256,071 288,310 (6,381 ) 12,098 (18,347 ) 35,439 (10,325 ) 22,851 (8,610 ) 14,787 (9,406 ) 26,708 (6,327 ) 12,698 (7,059 ) 7,718 (5,704 ) 8,565 (91,197 ) 197,113 496 3,860 14,503 2,379 31,800 15,496 2,091 12,351 4,647 8,507 31,706 34,085 127,785 143,281 15,259 27,610 (623 ) 7,884 (11,365 ) 22,720 (55,566 ) 87,715 (4,535 ) 23,075 182 933 14,108 1,031 854 4,577 5,264 2,715 27,244 2,303 1,008 1,941 31,554 32,585 4,912 9,489 22,035 24,750 27,957 30,260 (125 ) 1,816 (7,012 ) 25,573 (2,043 ) 7,446 (8,144 ) 16,606 (12,346 ) 17,914 12,350 3,042 5,893 3,453 5,774 4,108 25,573 28,615 18,569 22,022 9,337 13,445 (11,541 ) 17,074 (8,681 ) 13,341 (3,026 ) 10,419 3,456 1,200 1,325 1,055 9,884 11,084 8,890 9,945 (3,560 ) 7,524 (4,118 ) 5,827 1,343 1,039 690 1,206 10,513 11,552 5,355 6,045 (4,639 ) 6,913 (1,873 ) 4,172 46,100 49,119 53,200 11,750 5,360 9,434 7,857 15,159 13,101 24,630 10,241 18,690 51,444 16,737 3,261 1,625 24,443 25,826 14,557 24,893 14,359 40,670 24,195 — 10,512 35,154 21,645 10,200 17,732 7,058 6,350 6,930 118,890 4,735 11,698 184,131 12,775 1,039 16,820 4,275 16,987 12,855 16,287 13,830 — 7,264 7,299 7,432 4,620 Table of Contents Property Name Property Type (1) Date Consolidated Location (2) Initial Cost (3) Cost Capitalized Buildings and Subsequent to Year Number Built of Units Land Improvements Consolidation Land Improvements Total Buildings and (5) December 31, 2009 Total Accumulated Cost Depreciation Net of AD (AD) Encumbrances Garden Garden Garden Garden Heritage Village Oct-00 Anaheim Jul-98 Hidden Cove Jul-07 Hidden Cove II Hidden Harbour Oct-02 Highcrest Townhomes Town Home Jan-03 Sep-04 Highland Ridge Mar-02 Hillcreste Nov-94 Hillmeade Homestead Apr-05 Horizons West Apartments Garden Garden Garden Garden Hunt Club Hunt Club Hunter’s Chase Hunter’s Crossing Hunters Glen IV Hunters Glen V Hunters Glen VI Hyde Park Tower Mid Rise Garden Garden Garden Garden Garden Garden Garden High Rise Dec-06 Sep-00 Mar-01 Jan-01 Apr-01 Oct-99 Oct-99 Oct-99 Oct-04 Independence Green Indian Oaks Island Club Garden Garden Garden Jan-06 Mar-02 Oct-00 Garden High Rise Garden Oct-00 Apr-01 Oct-99 Island Club (Beville) Key Towers Lakeside Lakeside at Vinings Mountain Lakeside Place Lamplighter Park Latrobe Lazy Hollow Garden Garden Garden High Rise Garden Jan-00 Oct-99 Apr-00 Jan-03 Apr-05 Apr-07 Jan-06 Oct-04 Oct-99 Sep-97 Mar-02 Dec-99 Mar-02 Jul-94 Jan-00 Jul-94 Jul-94 Jun-08 Oct-00 May-98 Jan-00 Mar-01 Jul-06 Garden Leahy Square Lewis Park Garden Lincoln Place Garden Garden Lodge at Chattahoochee, The Garden Garden Garden Los Arboles Malibu Canyon Garden Garden Garden High Rise Garden Garden Garden Garden Garden High Rise Garden Garden Maple Bay Mariners Cove Meadow Creek Merrill House Mesa Royale Montecito Monterey Grove Oak Park Village Ocean Oaks One Lytle Place Pacific Bay Vistas Pacifica Park Palazzo at Park La Brea, The Palazzo East at Park La Brea, The Anaheim, CA 1986 Escondido, CA 1985 Escondido, CA 1986 Melbourne, FL 1985 Woodridge, IL 1968 1984 Atlanta, GA Century City, CA 1989 Nashville, TN 1985 East Lansing, MI 1986 Pacifica, CA 1970 Gaithersburg, MD 1986 1987 Austin, TX 1985 Midlothian, VA 1967 Leesburg, VA 1976 Plainsboro, NJ 1977 Plainsboro, NJ 1977 Plainsboro, NJ 1990 Chicago, IL Farmington Hills, MI 1960 Simi Valley, CA 1986 Oceanside, CA 1986 Daytona Beach, FL Alexandria, VA Lisle, IL 1986 1964 1972 1970 1985 1986 1973 1972 1951 1983 1976 1967 1980 1979 Atlanta, GA Houston, TX Bellevue, WA Washington, DC Columbia, MD Redwood City, CA Carbondale, IL Venice, CA Sandy Springs, GA Chandler, AZ Calabasas, CA Virginia Beach, 1971 VA 1984 San Diego, CA Boulder, CO 1972 Falls Church, VA 1962 1985 Mesa, AZ 1985 Austin, TX 1999 San Jose, CA 1973 Lansing, MI 1988 Port Orange, FL 1980 Cincinnati ,OH 1987 San Bruno, CA 1977 Pacifica, CA 196 1,832 334 3,043 118 12,730 216 1,444 176 3,045 219 1,225 315 33,755 288 2,872 168 1,565 78 8,763 336 17,859 384 10,342 320 7,935 164 2,244 264 2,709 304 3,283 328 2,787 155 4,683 981 10,293 254 23,927 592 18,027 204 6,086 140 1,526 568 5,840 220 2,109 734 6,160 174 2,225 175 3,459 178 2,424 110 15,352 269 1,407 692 43,979 312 2,320 232 1,662 698 66,257 414 2,598 500 — 332 1,435 159 1,836 832 152 268 1,268 224 34,175 618 10,048 296 2,132 231 2,662 308 3,703 104 12,770 8,541 17,615 6,530 7,590 13,452 6,174 47,216 16,069 8,200 6,376 13,149 11,920 7,915 7,763 14,420 17,337 15,501 14,928 24,586 15,801 28,654 8,571 7,050 27,937 11,863 34,151 9,272 9,103 12,181 7,909 12,193 10,439 16,370 9,504 53,438 16,141 66,861 24,532 10,831 4,569 6,896 21,939 16,771 12,855 21,800 62,460 6,579 1,609 1,832 6,980 3,043 5,473 12,849 4,798 1,444 1,368 3,045 5,145 1,242 25,906 35,862 13,564 2,872 761 1,566 1,610 8,887 3,598 17,859 8,537 10,342 3,259 7,935 4,079 2,244 4,819 2,709 5,211 3,283 6,075 2,787 1,931 4,731 10,150 11,982 24,595 27,638 11,884 24,733 12,388 13,832 14,820 17,865 11,302 12,544 71,015 106,877 29,633 32,505 8,960 10,526 7,862 16,749 16,747 34,606 20,457 30,799 11,174 19,109 11,842 14,086 19,239 21,948 22,548 25,831 21,576 24,363 16,811 21,542 (4,777 ) 7,205 (10,158 ) 17,480 (1,806 ) 22,927 (3,471 ) 10,361 (6,091 ) 11,774 (4,605 ) 7,939 (21,022 ) 85,855 (16,923 ) 15,582 (3,878 ) 6,648 (1,059 ) 15,690 (6,372 ) 28,234 (9,758 ) 21,041 (3,398 ) 15,711 (6,371 ) 7,715 (9,525 ) 12,423 (11,087 ) 14,744 (11,389 ) 12,974 (2,913 ) 18,629 20,189 10,156 3,489 24,523 11,220 18,027 44,912 55,068 18,694 43,217 39,874 57,901 (13,065 ) 42,003 (5,884 ) 37,333 (15,731 ) 42,170 2,135 6,087 3,849 1,526 28,127 5,840 10,705 16,792 10,899 12,425 56,064 61,904 (4,444 ) 12,348 (4,859 ) 7,566 (22,153 ) 39,751 15,149 2,109 15,942 6,160 4,150 2,225 15,543 3,459 956 2,424 27,012 29,121 50,093 56,253 13,422 15,647 24,646 28,105 13,137 15,561 (10,884 ) 18,237 (21,654 ) 34,599 (6,442 ) 9,205 (10,353 ) 17,752 (5,520 ) 10,041 1,755 15,444 3,183 1,404 86,174 42,894 9,572 25,016 15,379 16,783 97,698 140,592 (1,631 ) 23,385 (8,520 ) 8,263 (1,691 ) 138,901 21,615 2,320 3,197 1,662 34,982 69,834 37,985 40,305 12,701 14,363 84,843 154,677 (15,095 ) 25,210 (5,741 ) 8,622 (30,295 ) 124,382 29,935 2,598 7,271 — 6,358 1,435 5,863 1,836 832 9,585 4,958 1,267 2,072 34,325 7,340 10,048 3,242 2,132 12,551 2,662 22,184 22,994 3,183 12,970 46,076 48,674 74,132 74,132 30,890 32,325 16,694 18,530 14,154 14,986 11,855 13,122 23,861 58,186 24,111 34,159 16,097 18,229 34,351 37,013 65,353 88,347 9,562 22,532 (15,809 ) 32,865 (18,728 ) 55,404 (13,197 ) 19,128 (4,452 ) 14,078 (5,290 ) 9,696 (6,165 ) 6,957 (1,806 ) 56,380 (12,777 ) 21,382 (6,492 ) 11,737 (12,139 ) 24,874 (55,442 ) 32,905 (2,205 ) 20,327 8,858 31,006 11,586 — 10,876 6,100 57,610 18,376 3,372 5,377 32,160 16,499 16,407 6,940 20,191 24,194 25,182 13,781 27,758 33,171 64,973 8,440 10,868 29,375 9,666 26,955 10,576 22,192 7,867 15,185 3,981 65,000 11,087 8,086 97,604 33,548 5,813 24,071 15,600 — 996 35,000 23,487 10,295 15,450 — 11,260 Mid Rise Feb-04 Los Angeles, CA 2002 521 47,822 125,464 8,804 48,362 133,728 182,090 (30,135 ) 151,955 125,554 Mid Rise Mar-05 Los Angeles, CA 2005 611 61,004 136,503 22,142 72,578 147,071 219,649 (26,968 ) 192,681 150,000 F-55 Table of Contents Property Name Property Type (1) Date Consolidated Location (2) Initial Cost (3) Cost Capitalized Buildings and Subsequent to Year Number Built of Units Land Improvements Consolidation Land Improvements Total Buildings and (5) December 31, 2009 Total Accumulated Cost Depreciation Net of (AD) AD Encumbrances Paradise Palms Garden Park at Cedar Lawn, The Garden Park Towne Place Parktown Townhouses Parkway Pathfinder Village Peachtree Park Peak at Vinings Jul-94 Nov-96 High Rise Apr-00 Oct-99 Garden Mar-00 Garden Jan-06 Garden Jan-96 Garden Mountain, The Peakview Place Pebble Point Peppertree Pine Lake Terrace Pine Shadows Pines, The Plantation Gardens Post Ridge Ramblewood Ravensworth Towers Garden Garden Garden Garden Jan-00 Jan-00 Oct-02 Mar-02 Mar-02 Garden May-98 Garden Oct-98 Garden Oct-99 Garden Jul-00 Garden Garden Dec-99 High Rise Jun-04 Reflections Garden Sep-00 Reflections Reflections Regency Oaks Remington at Ponte Vedra Lakes River Club River Reach Riverbend Village Riverloft Riverside Rosewood Royal Crest Estates Royal Crest Estates Royal Crest Estates Garden Garden Garden Oct-00 Oct-02 Oct-99 Dec-06 Garden Apr-05 Garden Sep-00 Garden Garden Jul-01 High Rise Oct-99 High Rise Apr-00 Mar-02 Garden Aug-02 Garden Aug-02 Garden Aug-02 Garden Royal Crest Estates Royal Crest Estates Runaway Bay Runaway Bay Garden Garden Garden Garden Aug-02 Aug-02 Oct-00 Jul-02 Sandpiper Cove Savannah Trace Scandia Scotchollow Scottsdale Gateway I Scottsdale Gateway II Shadow Creek Shenandoah Crossing Signal Pointe Signature Point Springwoods at Lake Garden Garden Garden Garden Garden Garden Garden Garden Garden Garden Dec-97 Mar-01 Oct-00 Jan-06 Oct-97 Oct-97 May-98 Sep-00 Oct-99 Nov-96 Ridge Garden Jul-02 Spyglass at Cedar Cove Stafford Steeplechase Garden Sep-00 High Rise Oct-02 Sep-00 Garden 1985 Phoenix, AZ Galveston, TX 1985 Philadelphia, PA 1959 Deer Park, TX 1968 Williamsburg, VA 1971 1973 Fremont, CA 1962 Atlanta, GA 1987 1986 1984 1965 1980 1975 1980 1971 1971 1983 1984 1971 1972 1973 1974 Atlanta, GA Englewood, CO Indianapolis, IN Cypress, CA Garden Grove, CA Tempe, AZ Palm Bay, FL Plantation ,FL Nashville, TN Wyoming, MI Annandale, VA Virginia Beach, VA West Palm Beach, FL Casselberry, FL Fern Park, FL Ponte Vedra 1986 Beach, FL 1998 Edgewater, NJ 1986 Naples, FL Arlington, TX 1983 Philadelphia, PA 1910 1973 Alexandria ,VA 1976 Camarillo, CA 1974 Fall River, MA Warwick, RI 1972 Marlborough, MA 1970 North Andover, 1970 MA 1970 Nashua, NH 1987 Lantana, FL Pinellas Park, FL 1986 Boynton Beach, 1987 FL 1986 Schaumburg, IL 1977 Indianapolis, IN 1971 San Mateo, CA 1965 Tempe, AZ 1976 Tempe, AZ 1984 Mesa, AZ 1984 Fairfax, VA Winter Park, FL 1971 League City, TX 1994 129 647 192 1,025 959 10,451 309 2,570 148 386 246 19,595 303 4,683 280 2,651 296 3,440 220 1,790 136 7,835 111 3,975 272 2,095 216 603 372 3,773 150 1,883 1,708 8,607 219 3,455 3,515 2,521 47,301 12,052 2,834 14,838 11,713 13,660 18,734 6,883 5,224 6,035 11,899 3,318 19,443 6,712 61,082 17,157 6,959 647 3,585 1,025 54,589 10,451 9,410 2,570 2,754 386 8,147 19,595 9,900 4,683 10,474 11,121 6,106 7,131 101,890 112,341 21,462 24,032 5,588 5,974 22,985 42,580 21,613 26,296 (5,539 ) 5,582 (2,539 ) 4,592 (23,850 ) 88,491 (8,186 ) 15,846 (3,284 ) 2,690 (3,163 ) 39,417 (9,890 ) 16,406 17,606 2,651 4,547 3,440 2,612 1,790 2,778 8,030 31,266 33,917 23,281 26,721 9,495 11,285 7,807 15,837 (12,410 ) 21,507 (15,330 ) 11,391 (4,526 ) 6,759 (2,743 ) 13,094 2,094 4,125 3,725 2,095 2,716 603 6,204 3,773 3,517 1,883 1,930 8,661 2,272 3,455 7,979 12,104 15,624 17,719 6,034 6,637 25,647 29,420 10,229 12,112 62,958 71,619 19,429 22,884 (2,531 ) 9,573 (7,375 ) 10,344 (2,415 ) 4,222 (10,871 ) 18,549 (4,456 ) 7,656 (12,161 ) 59,458 (9,501 ) 13,383 6,400 — 86,343 5,618 9,273 19,348 9,543 10,412 12,711 5,430 15,750 12,000 7,500 1,937 24,141 6,042 34,944 20,685 480 15,988 13,684 5,255 15,988 18,939 34,927 (7,638 ) 27,289 39,451 300 5,504 336 3,906 343 1,832 344 18,576 266 30,578 556 17,728 201 893 184 2,120 1,222 10,433 152 12,128 216 5,832 492 22,433 473 25,178 588 51,292 902 68,231 404 5,934 192 1,884 416 3,511 368 13,960 444 10,540 418 49,474 591 124 487 2,458 266 2,016 640 18,492 368 2,382 304 2,810 9,984 10,491 9,905 18,650 30,638 18,337 4,128 11,287 65,474 8,060 12,044 24,095 28,786 36,808 45,562 16,052 7,045 21,396 20,731 9,852 17,756 3,359 13,927 11,886 57,197 11,359 17,579 4,113 5,504 4,233 3,906 8,398 1,832 14,097 19,601 14,724 18,630 18,303 20,135 (5,272 ) 14,329 (4,662 ) 13,968 (10,017 ) 10,118 2,242 18,795 1,910 30,579 6,365 17,728 4,963 893 31,118 2,120 76,986 10,433 2,407 12,430 1,953 5,832 5,296 22,433 3,835 25,178 20,673 39,468 32,547 63,126 24,702 42,430 9,091 9,984 42,405 44,525 142,460 152,893 10,165 22,595 13,997 19,829 29,391 51,824 32,621 57,799 (3,586 ) 35,882 (6,208 ) 56,918 (10,002 ) 32,428 (3,967 ) 6,017 (15,462 ) 29,063 (59,333 ) 93,560 (3,320 ) 19,275 (5,694 ) 14,135 (12,162 ) 39,662 (13,594 ) 44,205 9,632 51,292 11,187 68,231 7,643 5,934 1,831 1,884 46,440 97,732 56,749 124,980 23,695 29,629 8,876 10,760 (18,797 ) 78,935 (25,003 ) 99,977 (7,842 ) 21,787 (2,402 ) 8,358 7,141 3,511 4,001 13,960 12,780 10,539 7,733 49,473 591 8,017 23,353 2,458 3,790 2,016 7,499 18,492 21,447 2,382 2,810 2,810 28,537 32,048 24,732 38,692 22,633 33,172 25,490 74,963 11,376 11,967 37,280 39,738 15,676 17,692 64,696 83,188 32,806 35,188 20,389 23,199 (11,039 ) 21,009 (8,502 ) 30,190 (11,260 ) 21,912 (3,128 ) 71,835 (4,075 ) 7,892 (15,204 ) 24,534 (7,685 ) 10,007 (27,715 ) 55,473 (10,480 ) 24,708 (6,784 ) 16,415 9,190 10,700 11,134 24,695 39,373 23,452 — 19,951 96,289 17,900 12,161 37,890 35,400 60,305 50,667 21,644 9,004 29,425 22,282 19,163 49,605 5,800 5,087 — 69,724 18,596 10,823 Woodbridge, VA 1984 Lexington Park, MD Baltimore, MD Largo, MD 1985 1889 1986 180 5,587 7,284 1,278 5,587 8,562 14,149 (1,944 ) 12,205 14,502 152 3,241 96 706 240 3,675 5,094 4,032 16,111 2,479 3,241 3,131 562 3,301 3,675 7,573 10,814 7,307 7,869 19,412 23,087 (3,237 ) 7,577 (3,524 ) 4,345 (7,106 ) 15,981 10,300 4,315 23,600 F-56 Table of Contents Property Name Steeplechase Sterling Apartment Homes, The Stone Creek Club Summit Creek Sun Lake Sun River Village Talbot Woods Tamarac Village Tamarind Bay Tar River Estates Tatum Gardens The Bluffs at Pacifica Tierra Palms Timbertree Towers Of Westchester Property Type (1) Date Consolidated Location Year Number Built of Units Land Improvements Consolidation Land Improvements Total Buildings and (5) (AD) AD Encumbrances Garden Jul-02 Plano, TX 1985 368 7,056 10,510 6,974 7,056 17,484 24,540 (5,158 ) 19,382 13,987 (2) Initial Cost (3) Cost Capitalized Buildings and Subsequent to December 31, 2009 Total Accumulated Cost Depreciation Net of Garden Garden Garden Garden Garden Garden Garden Garden Garden Garden Garden Garden Garden Oct-99 Sep-00 May-98 May-98 Oct-99 Sep-04 Apr-00 Jan-00 Oct-99 May-98 Oct-06 Jan-06 Oct-97 Philadelphia, PA 1962 Germantown, MD 1984 1985 Austin, TX Lake Mary, FL 1986 1981 Tempe ,AZ Middleboro, MA 1972 Denver, CO 1979 St. Petersburg, FL 1980 1969 Greenville, NC 1985 Phoenix, AZ 1963 Pacifica, CA 1970 Norwalk, CA 1979 Phoenix, AZ College Park, MD 1972 1985 Centennial, CO Westmont, IL 1969 Palm Harbor, FL 1986 Swampscott, MA 1987 1985 Apopka, FL 535 8,871 240 13,593 164 1,211 600 4,551 334 2,367 121 5,852 564 3,928 200 1,091 220 1,558 128 1,323 64 7,975 144 6,441 387 2,292 303 15,198 161 1,615 399 3,268 262 2,062 96 4,749 210 2,271 55,364 9,347 6,037 25,543 13,303 4,719 23,491 6,310 14,298 7,155 4,131 6,807 13,000 22,029 9,773 18,763 12,850 10,089 7,724 17,358 8,871 2,948 13,593 2,591 1,211 30,903 4,551 3,888 2,367 2,026 5,852 8,089 4,223 4,987 1,091 3,740 1,558 1,928 1,323 7,635 8,108 609 6,441 6,209 2,292 4,504 15,198 6,118 1,536 23,625 3,268 4,584 2,062 1,351 4,749 2,974 2,271 72,722 81,593 12,295 25,888 8,628 9,839 56,446 60,997 17,191 19,558 6,745 12,597 31,285 35,508 11,297 12,388 18,038 19,596 9,083 10,406 11,633 19,741 7,416 13,857 19,209 21,501 (30,782 ) 50,811 (6,743 ) 19,145 (3,285 ) 6,554 (20,010 ) 40,987 (8,524 ) 11,034 (2,150 ) 10,447 (16,205 ) 19,303 (5,368 ) 7,020 (7,601 ) 11,995 (4,706 ) 5,700 (1,067 ) 18,674 (855 ) 13,002 (9,830 ) 11,671 26,533 41,731 15,970 17,506 42,388 45,656 17,434 19,496 11,440 16,189 10,698 12,969 (3,946 ) 37,785 (6,955 ) 10,551 (15,984 ) 29,672 (7,652 ) 11,844 (3,498 ) 12,691 (2,641 ) 10,328 77,915 24,900 5,670 35,727 10,569 6,203 18,389 6,925 3,960 7,403 6,428 10,777 4,510 27,667 16,640 9,255 10,604 7,385 11,070 13,757 13,500 Park, The High Rise Jan-06 Town Home Nov-96 Township At Highlands Oct-99 High Rise Twin Lake Towers Apr-00 Garden Twin Lakes Aug-02 Vantage Pointe Mid Rise Verandahs at Hunt Club Garden Jul-02 Views at Vinings Mountain, The Garden Garden Jan-06 Mar-02 Villa Del Sol Village Crossing Garden May-98 Garden Village Green Garden Village in the Woods Village of Pennbrook Garden Villages of Baymeadows Garden Villas at Park La Brea, The Vista Del Lagos Waterford Village Waterways Village Waverly Apartments West Winds Westway Village Wexford Village Garden Garden Garden Garden Garden Garden Garden Garden Oct-02 Jan-00 Oct-98 Oct-99 Mar-02 Dec-97 Aug-02 Jun-97 Aug-08 Oct-02 May-98 Aug-02 Willow Bend Willow Park on Lake Garden May-98 Adelaide Wilson Acres Windrift Windrift Garden Garden Garden Garden Garden Windsor Crossing Garden Windsor Park Garden Woodcreek Garden Woods of Burnsville Woods of Inverness Garden Woods Of Williamsburg Garden Yacht Club at Brickell High Rise Oct-99 Apr-06 Mar-01 Oct-00 Mar-00 Mar-01 Oct-02 Nov-04 Oct-99 Jan-06 Dec-03 Atlanta, GA Norwalk, CA West Palm Beach, FL Altamonte Springs, FL Cypress, TX Levittown, PA Jacksonville, FL 1985 Los Angeles, CA 2002 Chandler, AZ 1986 Bridgewater, MA 1971 1991 Aventura, FL 1970 Brighton, MA 1985 Orlando, FL 1979 Houston, TX 1974 Worcester, MA Rolling Meadows, IL Altamonte Springs, FL Greenville, NC Oceanside, CA Orlando, FL Newport News, VA 1978 Woodbridge, VA 1987 1985 Mesa, AZ 1984 Burnsville, MN Houston, TX 1983 Williamsburg, VA 1976 1998 Miami, FL 1972 1979 1987 1987 1983 1972 180 610 120 7,294 5,026 4,861 12,209 610 2,512 7,476 17,235 17,845 7,191 14,667 (7,559 ) 10,286 (2,670 ) 11,997 1986 189 1,618 8,188 2,941 1,618 11,129 12,747 (5,497 ) 7,250 7,000 1970 1983 1969 1972 164 608 530 3,457 722 10,229 904 4,859 250 8,621 200 804 588 28,585 180 4,504 103 7,696 272 2,324 326 2,921 264 6,339 6,618 15,787 38,222 33,957 48,871 4,952 28,102 11,064 11,347 11,481 11,384 17,939 2,514 608 10,230 3,457 13,539 10,229 53,735 4,859 9,132 9,740 26,017 29,474 51,761 61,990 87,692 92,551 (4,386 ) 5,354 (12,765 ) 16,709 (22,047 ) 39,943 (40,263 ) 52,288 3,603 8,630 3,442 804 5,591 29,110 3,683 4,504 1,188 7,920 3,030 2,324 3,172 2,921 2,082 6,339 52,465 61,095 8,394 9,198 33,168 62,278 14,747 19,251 12,311 20,231 14,511 16,835 14,556 17,477 20,021 26,360 (12,802 ) 48,293 (3,431 ) 5,767 (15,640 ) 46,638 (6,456 ) 12,795 (723 ) 19,508 (4,829 ) 12,006 (6,586 ) 10,891 (7,250 ) 19,110 6,510 19,451 48,419 38,050 30,564 11,783 40,542 7,145 12,000 12,776 7,677 13,924 328 2,717 15,437 26,391 2,717 41,828 44,545 (13,960 ) 30,585 19,876 185 1,225 146 1,175 404 24,960 288 3,696 156 307 220 4,279 432 2,426 400 3,954 272 2,146 798 125 357 31,363 7,357 3,943 17,590 10,029 2,110 15,970 15,886 18,125 10,978 3,657 32,214 3,266 1,224 962 1,485 18,667 24,960 5,495 3,696 10,624 11,848 4,595 6,080 36,257 61,217 15,524 19,220 (5,611 ) 6,237 (866 ) 5,214 (15,443 ) 45,774 (5,710 ) 13,510 1,992 131 2,172 4,279 4,487 2,426 2,694 3,954 3,860 2,146 798 4,297 31,363 873 4,278 4,409 18,142 22,421 20,373 22,799 20,819 24,773 14,838 16,984 4,530 5,328 36,511 67,874 (2,102 ) 2,307 (6,430 ) 15,991 (10,400 ) 12,399 (7,429 ) 17,344 (7,194 ) 9,790 (3,309 ) 2,019 (5,900 ) 61,974 6,804 2,743 28,999 17,094 2,153 13,444 19,449 16,580 5,878 1,189 37,804 F-57 Table of Contents Property Name Property Type (1) Date Consolidated Location Year Number Built of Units Land (2) Initial Cost (3) Cost Capitalized Buildings and Subsequent to Improvements Consolidation Land Buildings and Improvements Total (5) December 31, 2009 Total Accumulated Cost Depreciation Net of AD (AD) Encumbrances Yorktown Apartments High Rise Dec-99 Lombard, IL 1973 364 2,971 18,163 16,098 3,055 34,177 37,232 (10,538 ) 26,694 22,626 Total Conventional Properties: Affordable Properties: Garden All Hallows High Rise Alliance Towers High Rise Arvada House High Rise Ashland Manor Mid Rise Baldwin Oaks High Rise Baldwin Towers Garden Bannock Arms Garden Bayview High Rise Beacon Hill Bedford House Mid Rise Benjamin Banneker Plaza Mid Rise Mid Rise Berger Apartments High Rise Biltmore Towers Garden Blakewood Mid Rise Bloomsburg Towers High Rise Bolton North Garden Burchwood Butternut Creek Mid Rise Cache Creek Apartment Homes California Square I Campbell Heights Canterbury Towers Carriage House Casa de Las Hermanitas Castlewood Mid Rise High Rise High Rise High Rise Mid Rise Garden Garden Jan-06 Mar-02 Nov-04 Mar-02 Oct-99 Jan-06 Mar-02 Jun-05 Mar-02 Mar-02 Jan-06 Mar-02 Mar-02 Oct-05 Jan-06 Jan-06 Oct-07 Jan-06 Jun-04 Jan-06 Oct-02 Jan-06 Dec-06 Mar-02 Mar-02 Cherry Ridge Terrace Garden Mar-02 City Line Clisby Towers Club, The Coatesville Towers Cold Spring Homes Community Circle II Garden Mid Rise Garden High Rise Garden Garden Mar-02 Jan-06 Jan-06 Mar-02 Oct-07 Jan-06 Copperwood I Apartments Garden Apr-06 Oct-05 Copperwood II Apartments Garden Mar-04 Garden Country Club Heights Jan-06 Garden Country Commons Mid Rise Courtyard Jan-06 Town Home Jan-06 Crevenna Oaks Mar-04 Garden Crockett Manor Jan-06 Garden Cumberland Court Mar-02 High Rise Daugette Tower Mar-02 Mid Rise Delhaven Manor Denny Place Douglas Landing Garden Garden Mar-02 Oct-07 San Francisco, CA 1976 1971 Alliance, OH 1977 Arvada, CO 1977 Toledo, OH 1980 Parsippany ,NJ 1983 Pittsburgh, PA Boise, ID 1978 San Francisco, CA 1976 1980 Hillsdale, MI 1979 Falmouth, KY 1976 Chester, PA 1981 New Haven, CT 1980 Dayton, OH Statesboro, GA 1973 Bloomsburg, PA 1981 1977 Baltimore, MD 1999 Berea, KY 1980 Charlotte, MI 1983 1986 Clearlake, CA Louisville, KY 1982 Washington, D.C. 1978 1976 Worcester, MA Petersburg, VA 1885 Los Angeles, CA 1982 Davenport, IA 1980 Northern Cambria, PA Newport News, 1976 VA 1980 Macon, GA 1972 Lexington, NC Coatesville, PA 1979 Cold Springs, KY 2000 Cleveland, OH 1975 The Woodlands, TX The Woodlands, TX Quincy, IL Bensalem, PA Cincinnati, OH Burke, VA Trenton, TN Harrisburg, PA Gadsden, AL Jackson, MS North Hollywood, CA Austin, TX 1981 1976 1972 1980 1979 1982 1975 1979 1983 1984 1999 1980 71,881 1,998,409 3,931,734 2,197,399 2,055,178 6,072,364 8,127,542 (2,163,859 ) 5,963,683 4,792,048 157 101 88 189 251 99 66 146 198 48 70 144 230 42 75 209 24 100 80 101 171 156 118 88 96 1,348 530 641 205 746 398 275 1,023 1,380 230 79 1,152 1,813 316 1 1,450 253 505 1,545 154 750 567 847 1,775 585 29,770 1,934 3,314 455 8,516 5,256 1,139 15,265 7,044 919 3,862 4,657 6,411 882 4,128 6,569 1,173 3,617 9,405 5,704 6,719 4,557 2,886 4,606 2,351 20,124 756 1,746 363 1,998 202 571 16,548 6,599 310 670 2,229 13,073 373 351 649 551 3,957 494 523 859 936 3,356 4,222 1,443 1,338 530 405 205 746 398 275 582 1,093 230 79 1,152 1,813 316 1 1,429 253 505 1,545 154 750 567 716 1,879 585 49,904 2,690 5,296 818 10,514 5,458 1,710 32,254 13,930 1,229 4,532 6,886 19,484 1,255 4,479 7,239 1,724 7,574 9,899 6,227 7,578 5,493 6,373 8,724 3,794 51,242 3,220 5,701 1,023 11,260 5,856 1,985 32,836 15,023 1,459 4,611 8,038 21,297 1,571 4,480 8,668 1,977 8,079 11,444 6,381 8,328 6,060 7,089 10,603 4,379 (745 ) (1,304 ) (667 ) (6,245 ) (4,002 ) (575 ) (15,590 ) 35,652 2,475 4,397 356 5,015 1,854 1,410 (9,118 ) 23,718 (3,236 ) 11,787 1,025 (434 ) 1,721 (2,890 ) (2,080 ) 5,958 (8,817 ) 12,480 486 (1,085 ) 1,719 (2,761 ) 6,321 (2,347 ) 1,019 (958 ) 5,840 (2,239 ) (2,866 ) (3,600 ) (3,062 ) (3,681 ) (1,407 ) (1,118 ) (1,497 ) 8,578 2,781 5,266 2,379 5,682 9,485 2,882 21,219 2,234 4,152 561 12,972 1,458 1,406 12,520 4,616 1,084 1,538 1,061 10,648 698 1,553 2,438 981 — 2,302 3,499 15,449 3,966 2,273 5,081 3,503 62 372 1,490 906 372 2,396 2,768 (852 ) 1,916 795 200 52 87 90 30 129 500 524 498 500 187 263 2,014 1,970 2,128 2,011 917 4,699 7,172 228 662 693 1,122 804 500 524 498 500 187 263 9,186 2,198 2,790 2,704 2,039 5,503 9,686 2,722 3,288 3,204 2,226 5,766 (2,046 ) (1,677 ) (1,978 ) (866 ) (1,441 ) (3,265 ) 7,640 1,045 1,310 2,338 785 2,501 4,863 939 303 2,108 790 3,275 150 390 8,373 4,862 363 13,262 13,625 (8,167 ) 5,458 5,590 150 200 352 137 50 38 108 100 104 17 96 452 676 1,853 1,362 355 42 379 540 575 5,552 5,715 17,657 4,876 4,849 1,395 4,040 2,178 2,304 3,415 4,841 2,308 448 219 38 682 1,744 1,986 459 675 1,853 1,362 355 42 379 540 575 8,960 10,557 19,965 5,324 5,068 1,433 4,722 3,922 4,290 9,419 11,232 21,818 6,686 5,423 1,475 5,101 4,462 4,865 6,285 (3,134 ) (3,837 ) 7,395 (10,649 ) 11,169 3,560 (3,126 ) 4,478 (945 ) 1,438 (37 ) 1,819 (3,282 ) 3,138 (1,324 ) 3,244 (1,621 ) 394 11 1,579 4,989 139 22 394 11 1,718 5,011 2,112 5,022 (479 ) — 1,633 5,022 5,773 7,312 4,715 3,830 3,312 978 1,314 117 3,758 1,121 4,000 F-58 Table of Contents Property Name Property Type (1) Date Consolidated Location (2) Initial Cost (3) Cost Capitalized Buildings and Subsequent to December 31, 2009 Total Accumulated Cost Depreciation Net of Year Number Built of Units Land Improvements Consolidation Land Improvements Total Buildings and (5) (AD) AD Encumbrances Garden Elmwood Garden Fairburn And Gordon II Garden Fairwood Mid Rise Fountain Place Garden Fox Run Foxfire Garden Franklin Square School Apts Mid Rise High Rise Friendset Apartments Garden Frio Garden Gates Manor Garden Gateway Village Garden Glens, The Garden Greenbriar Jan-06 Jan-06 Jan-06 Jan-06 Mar-02 Jan-06 Jan-06 Jan-06 Jan-06 Mar-04 Mar-04 Jan-06 Jan-06 Hamlin Estates Hanover Square Harris Park Apartments Hatillo Housing Hemet Estates Henna Townhomes Heritage House Hillside Village Hilltop Hopkins Village Hudson Gardens Hudson Terrace Indio Gardens Ingram Square Jenny Lind Hall JFK Towers Kephart Plaza King Bell Apartments Kirkwood House Kubasek Trinity Manor Mar-02 Garden Jan-06 High Rise Dec-97 Garden Jan-06 Mid Rise Mar-02 Garden Oct-07 Garden Mid Rise Jan-06 Town Home Jan-06 Jan-06 Garden Sep-03 Mid Rise Mar-02 Garden Jan-06 Garden Oct-06 Mid Rise Jan-06 Garden Mar-04 High Rise Jan-06 Mid Rise Jan-06 High Rise Jan-06 Garden Sep-04 High Rise (The Hollows) High Rise Garden La Salle Garden La Vista Garden Lafayette Square Mid Rise Lakeview Arms Garden Landau Garden Laurelwood Garden Lock Haven Gardens High Rise Locust House Mid Rise Lodge Run Garden Long Meadow Loring Towers High Rise Loring Towers Apartments High Rise Lynnhaven Michigan Beach Mill Pond Miramar Housing Montblanc Gardens Jan-06 Oct-00 Jan-06 Jan-06 Jan-06 Oct-05 Jan-06 Jan-06 Mar-02 Jan-06 Jan-06 Oct-02 Sep-03 Mar-04 Garden Oct-07 Garden Jan-06 Mid Rise High Rise Jan-06 Town Home Dec-03 1981 Athens, AL 1969 Atlanta, GA 1979 Carmichael, CA 1980 Connersville, IN 1983 Orange, TX 1975 Jackson, MI 1888 Baltimore, MD 1979 Brooklyn, NY 1980 Pearsall, TX Clinton, TN 1981 Hillsborough, NC 1980 1982 Rock Hill, SC 1980 Indianapolis, IN North Hollywood, CA Baltimore, MD Rochester, NY Hatillo, PR Hemet, CA Round Rock, TX Lewisburg, PA Catawissa, PA Duquesne, PA Baltimore, MD Pasadena, CA Hudson, NY Indio, CA San Antonio, TX Springfield, MO Durham, NC Lock Haven, PA Milwaukie, OR Baltimore, MD 1983 1980 1968 1982 1983 1999 1982 1981 1975 1979 1983 1973 1980 1980 1977 1983 1978 1982 1979 Yonkers, NY 1981 San Francisco, CA 1976 1981 Concord, CA Camden, SC 1978 Poughkeepsie, NY 1981 1970 Clinton, SC 1981 Morristown, TN Lock Haven, PA 1979 Westminster, MD 1979 1983 Portage, PA Cheraw, SC 1973 Minneapolis, MN 1975 1973 Salem, MA 1980 Durham, NC 1958 Chicago, IL 1982 Taunton, MA 1983 Ponce, PR 1982 Yauco, PR 80 346 58 439 86 176 102 440 70 420 160 856 65 566 259 550 63 327 80 266 64 433 88 839 121 812 30 1,010 199 1,656 114 475 64 202 80 700 160 1,047 80 178 50 31 152 1,271 165 438 41 914 168 647 151 775 120 630 78 142 177 750 101 609 62 204 261 1,281 130 54 145 1,841 75 565 72 142 72 111 80 1,293 75 65 150 1,163 99 650 31 274 56 158 230 1,297 250 129 75 539 239 2,225 49 80 96 367 128 391 2,643 1,647 5,264 2,091 1,992 6,853 3,581 16,825 2,207 2,225 1,666 4,135 3,272 1,691 9,575 2,786 2,875 2,802 12,893 3,251 2,643 6,194 5,973 1,548 5,025 8,759 3,137 3,684 7,970 3,796 2,497 9,358 8,308 19,568 4,448 1,875 3,256 1,429 1,870 6,045 2,604 1,211 1,342 7,445 14,050 2,159 10,797 2,704 5,085 3,859 F-59 346 346 231 439 379 176 2,883 447 1,026 420 1,423 856 216 566 1,737 550 407 327 881 264 580 515 1,140 839 346 812 241 1,010 425 1,656 1,101 475 204 202 2,995 420 84 1,047 131 178 186 31 722 1,271 3,680 452 335 914 584 647 4,155 775 5,716 630 260 142 773 750 462 609 193 204 6,398 1,275 1,788 54 16,650 1,866 4,223 581 79 142 288 111 246 1,293 75 179 606 1,163 786 650 377 274 174 158 7,587 886 6,414 140 793 563 757 2,225 311 80 194 367 959 391 2,989 3,335 1,878 2,317 5,643 5,819 4,967 5,414 3,018 3,438 8,276 9,132 3,797 4,363 18,562 19,112 2,614 2,941 3,108 3,372 2,164 2,679 5,275 6,114 3,618 4,430 1,932 2,942 10,000 11,656 3,887 4,362 3,079 3,281 6,077 6,497 12,977 14,024 3,382 3,560 2,829 2,860 6,916 8,187 9,639 10,091 1,883 2,797 5,609 6,256 12,914 13,689 8,853 9,483 3,944 4,086 8,743 9,493 4,258 4,867 2,690 2,894 15,762 17,037 10,096 10,150 36,193 38,059 8,655 9,236 1,954 2,096 3,544 3,655 1,675 2,968 2,049 2,124 6,651 7,814 3,390 4,040 1,588 1,862 1,516 1,674 15,443 16,329 20,453 20,593 2,928 3,491 11,554 13,779 3,015 3,095 5,279 5,646 4,818 5,209 (1,673 ) 1,662 (1,469 ) 848 (3,523 ) 2,296 (511 ) 4,903 (928 ) 2,510 (5,247 ) 3,885 (2,153 ) 2,210 (10,414 ) 8,698 (1,728 ) 1,213 (1,195 ) 2,177 (746 ) 1,933 (3,627 ) 2,487 (2,491 ) 1,939 (678 ) 2,264 (6,267 ) 5,389 (1,824 ) 2,538 (1,820 ) 1,461 (1,138 ) 5,359 (2,641 ) 11,383 (2,034 ) 1,526 (1,795 ) 1,065 (5,198 ) 2,989 (1,192 ) 8,899 (644 ) 2,153 (3,813 ) 2,443 (1,213 ) 12,476 (1,338 ) 8,145 (358 ) 3,728 (4,678 ) 4,815 (2,987 ) 1,880 (1,451 ) 1,443 (1,929 ) 15,108 (5,033 ) 5,117 (12,408 ) 25,651 (909 ) 8,327 (1,629 ) 467 (2,182 ) 1,473 (1,675 ) 1,293 849 (1,275 ) (4,643 ) 3,171 (1,123 ) 2,917 603 (1,259 ) (1,168 ) 506 (4,248 ) 12,081 (3,664 ) 16,929 (652 ) 2,839 (3,296 ) 10,483 (1,655 ) 1,440 (2,946 ) 2,700 (2,469 ) 2,740 1,869 98 2,475 1,155 2,563 1,803 2,099 14,404 1,109 2,411 2,360 3,757 1,098 1,515 5,495 200 1,370 4,316 6,172 2,106 1,089 2,110 9,100 539 1,044 4,173 3,825 942 5,796 1,488 1,631 16,000 4,749 15,992 5,499 270 1,790 283 1,320 2,860 2,264 363 198 7,387 16,177 2,787 5,510 1,301 2,869 3,282 Table of Contents Property Name Morrisania II Moss Gardens Property Type (1) Date Consolidated Location High Rise Mid Rise Jan-06 Jan-06 (2) Initial Cost (3) Cost Capitalized Buildings and Subsequent to December 31, 2009 Total Accumulated Cost Depreciation Net of Year Number Built of Units Land Improvements Consolidation Land Improvements Total Buildings and (5) (AD) AD Encumbrances 1979 1980 Bronx, NY Lafayette, LA New Baltimore, 1980 MI 1925 Chicago, IL 1985 Chicago, IL 1971 Lima, OH 1921 Chicago, IL 1978 Wytheville, VA 1979 Topeka, KS 1984 Milan, TN 1978 Troy, NY 1979 Hermitage, PA 1981 Chillicothe, OH 1979 Deactur, IL Indianapolis, IN 1994 Palm Springs, CA 1981 1982 Bakersfield, CA 1973 Lithonia, GA 1974 Lithonia, GA 1974 Joplin, MO 1977 St Louis, MO 1958 Anaheim, CA 1980 Sacramento, CA Chicago, IL 1925 Hughes Springs, TX Philadelphia, PA Waycross, GA Salisbury, MD Toledo, OH Austin, TX North Hills, CA Washington, DC Yonkers, NY Flora, MS Temecula, CA Sacramento, CA East Moline, IL Flint, MI Greenville, MI Kankakee, IL Dawson Springs, 1981 KY Champaign, IL 1979 Hummelstown, PA 1981 1970 San Antonio, TX 1971 Boulder, CO 1980 Norristown, PA 1979 Macon, GA Taunton, MA 1920 Wilkes-Barre, PA 1976 1978 1976 1999 1980 1979 1982 1983 1980 1930 1975 1984 1980 1977 1980 1983 1983 203 659 114 524 15,783 3,818 1,710 659 257 524 17,493 18,152 4,075 4,599 (10,840 ) 7,312 (3,058 ) 1,541 2,360 6,121 7,632 1,317 14,334 2,012 6,200 498 4,067 3,406 2,282 4,164 1,410 8,745 5,520 1,442 2,965 8,847 6,327 25,929 2,880 23,257 1,382 15,416 2,254 7,177 1,698 2,631 2,647 3,753 3,315 1,071 5,462 227 2,803 13,877 2,097 4,932 1,177 5,134 4,814 5,770 7,110 6,599 1,522 4,335 15,549 101 888 148 1,448 82 1,380 150 487 304 2,280 144 500 170 240 95 34 88 115 79 81 50 136 156 993 48 247 116 — 66 621 86 592 88 596 192 996 242 742 392 6,155 97 1,041 446 3,684 82 727 296 — 72 163 151 1,112 99 420 100 1,188 75 624 48 697 56 148 76 102 55 488 75 684 140 698 340 1,756 49 311 125 590 40 194 156 947 85 376 220 404 150 243 174 1,650 74 366 75 219 344 2,039 F-60 5,154 896 380 1,448 459 1,380 1,791 487 16,403 2,510 525 500 7 240 95 27 88 791 79 436 198 136 451 993 607 247 3,657 — 893 619 324 592 284 596 2 996 9,758 705 4,463 6,155 7,019 1,145 17,401 3,427 604 727 1,265 — — 163 685 1,112 1,234 420 3,502 1,229 1,613 667 92 697 415 148 1,628 102 256 488 7,367 718 755 698 1,484 1,756 283 311 3,454 598 180 194 5,729 934 312 376 11,373 234 12,551 438 2,783 1,650 1,403 366 645 219 1,334 2,039 525 7,506 8,402 6,501 7,949 8,091 9,471 3,108 3,595 30,507 33,017 2,537 3,037 6,207 6,447 620 4,858 4,946 3,842 3,921 2,480 2,616 4,615 5,608 2,017 2,264 12,402 12,402 6,415 7,034 1,766 2,358 3,249 3,845 8,849 9,845 16,122 16,827 30,392 36,547 9,795 10,940 40,915 44,342 1,986 2,713 16,681 16,681 2,254 2,417 7,862 8,974 2,932 3,352 6,092 7,321 4,217 4,884 3,845 4,542 3,730 3,878 2,699 2,801 5,718 6,206 7,560 8,278 3,558 4,256 15,361 17,117 2,380 2,691 8,378 8,976 1,357 1,551 10,876 11,810 5,126 5,502 17,313 17,547 19,466 19,904 9,382 11,032 2,925 3,291 4,980 5,199 16,883 18,922 (96 ) (1,459 ) 6,943 (5,577 ) 2,372 (2,739 ) 6,732 (1,736 ) 1,859 (14,624 ) 18,393 (1,339 ) 1,698 (2,773 ) 3,674 524 (3,278 ) 1,668 (2,361 ) 1,560 (1,377 ) 1,239 (1,932 ) 3,676 (1,057 ) 1,207 (1,782 ) 10,620 (1,254 ) 5,780 (1,744 ) 614 (2,522 ) 1,323 (2,816 ) 7,029 (8,022 ) 8,805 (6,356 ) 30,191 (1,456 ) 9,484 (12,211 ) 32,131 (1,532 ) 1,181 (4,111 ) 12,570 (1,317 ) 1,100 (5,627 ) 3,347 (1,229 ) 2,123 (1,810 ) 5,511 (1,670 ) 3,214 (287 ) 4,255 (2,297 ) 1,581 (1,454 ) 1,347 (2,797 ) 3,409 (910 ) 7,368 (1,296 ) 2,960 (10,068 ) 7,049 (1,643 ) 1,048 (1,234 ) 7,742 (548 ) 1,003 (2,312 ) 9,498 (3,005 ) 2,497 (3,275 ) 14,272 (3,729 ) 16,175 (3,011 ) 8,021 (1,703 ) 1,588 (2,742 ) 2,457 (13,422 ) 5,500 8,144 1,991 2,213 1,386 7,399 608 19,556 1,599 2,770 433 1,353 1,833 1,447 2,910 1,261 6,902 2,331 434 437 3,395 9,572 37,757 6,198 21,927 1,229 9,230 737 2,050 2,001 3,206 2,598 6,428 1,599 1,079 4,536 4,650 1,552 7,370 664 5,077 876 5,220 2,841 5,271 11,652 3,598 1,915 2,625 3,028 Mar-02 Mid Rise New Baltimore Jan-06 Garden New Vistas I Dec-97 Garden Newberry Park Oct-00 Garden Northlake Village Jan-00 Garden Northpoint Mar-02 Garden Northwinds, The Jan-08 Garden Oakbrook Mar-04 Garden Oakwood Manor Jan-06 High Rise O’Neil Jan-06 Garden Orange Village Jan-06 Garden Overbrook Park Mid Rise Mar-02 Oxford House Town Home Oct-07 Oxford Terrace IV Mar-02 Garden Palm Springs Senior Mar-02 Garden Panorama Park Jan-06 Garden Parc Chateau I Jan-06 Garden Parc Chateau II Oct-07 Park — Joplin Apartments Garden Jun-05 Mid Rise Park Place Oct-05 Garden Park Vista Mar-02 Garden Parkview Jun-04 Garden Parkways, The Patman Switch Pavilion Peachwood Place Pinebluff Village Pinewood Place Pleasant Hills Plummer Village Portner Place Post Street Apartments Pride Gardens Rancho California Ridgewood (La Loma) Ridgewood Towers River Village River’s Edge Riverwoods Rosedale Court Apartments Round Barn Rutherford Park San Jose Apartments San Juan Del Centro Sandy Hill Terrace Sandy Springs School Street Sherman Hills Jan-06 Garden Mar-04 High Rise Oct-07 Garden Jan-06 Mid Rise Mar-02 Garden Apr-05 Garden Mid Rise Mar-02 Town Home Jan-06 Jan-06 High Rise Dec-97 Garden Jan-06 Garden Mar-02 Garden Mar-02 High Rise High Rise Jan-06 Town Home Jan-06 Jan-06 High Rise Mar-04 Garden Garden Mar-02 Town Home Jan-06 Sep-05 Garden Sep-05 Mid Rise Mar-02 High Rise Mar-05 Garden Jan-06 Mid Rise Jan-06 High Rise Table of Contents Property Type (1) Date Consolidated Location Year Number Built of Units Land (2) Initial Cost (3) Cost Capitalized Buildings and Subsequent to Improvements Consolidation Land Buildings and Improvements Total (5) December 31, 2009 Total Accumulated Cost Depreciation Net of AD (AD) Encumbrances Oct-99 Garden Mar-02 Garden Jan-06 Mid Rise Oct-07 Garden Garden Jan-06 Town Home Mar-02 Jul-09 Mid Rise Oct-00 Garden Garden Jan-06 Town Home Jan-06 Jan-06 Garden Jan-06 Mid Rise San Francisco, CA 1976 Los Angeles, CA 1981 Holidaysburg, PA 1983 1999 Lockhart, TX St. George, SC 1984 San Bernadino, CA 1983 1920 Indianapolis, IN 1970 New Castle, IN 1976 Norfolk, VA 1980 Burke, VA 1980 St. Johns, MI 1979 Lewisburg, WV 156 1,498 663 80 608 51 — 32 86 40 549 80 255 52 313 122 215 126 382 50 403 121 163 84 19,071 2,770 2,083 1,153 1,025 3,459 3,610 1,895 4,400 4,930 6,488 3,360 18,283 1,476 4,354 1,352 608 — 86 188 255 308 215 382 403 163 425 9 95 2,722 6 1,342 503 288 658 236 37,376 6,435 2,508 1,162 1,120 6,542 3,616 3,242 4,903 5,218 7,146 3,596 38,852 7,787 3,116 1,162 1,206 6,730 3,871 3,550 5,118 5,600 7,549 3,759 (787 ) (13,248 ) 25,604 (3,290 ) 4,497 948 (2,168 ) — 1,162 419 (1,470 ) 5,260 (733 ) 3,138 (1,344 ) 2,206 (3,643 ) 1,475 (1,103 ) 4,497 (4,472 ) 3,077 (2,136 ) 1,623 17,278 3,063 631 855 503 4,497 1,918 284 1,303 3,303 966 1,934 Property Name Shoreview South Bay Villa Spring Manor Springfield Villas St. George Villas Sterling Village Stonegate Apts Stonegate Village Sumler Terrace Summit Oaks Suntree Tabor Towers Tamarac Apartments I Garden Nov-04 Woodlands, TX 1980 144 140 2,775 3,613 363 6,165 6,528 (2,071 ) 4,457 4,188 Tamarac Apartments II Garden Mid Rise Terraces Terry Manor Mid Rise Tompkins Terrace Garden Trestletree Village Garden University Square High Rise Van Nuys Nov-04 Jan-06 Oct-05 Oct-02 Mar-02 Mar-05 Woodlands, TX Kettering, OH Los Angeles, CA Beacon, NY Atlanta, GA Philadelphia, PA 1980 1979 1977 1974 1981 1978 156 142 102 1,561 170 1,775 193 872 188 1,150 702 442 Apartments Victory Square Village Oaks Village of Kaufman Vintage Crossing Vista Park Chino Vistula Heritage Village Wah Luck House Walnut Hills Wasco Arms Washington Square High Rise Garden Mid Rise Mar-02 Mar-02 Jan-06 Los Angeles, CA Canton, OH Catonsville, MD 1981 1975 1980 299 4,253 215 81 181 2,127 Mar-05 Garden Town Home Mar-04 Mar-02 Garden Kaufman, TX Cuthbert, GA Chino, CA 1981 1982 1983 68 50 40 370 188 380 Garden High Rise High Rise Garden Oct-08 Jan-06 Jan-06 Mar-02 Toledo, OH Washington, DC Cincinnati, OH Wasco, CA 1930 1982 1983 1982 250 1,312 — 153 888 198 625 78 3,195 2,815 5,848 6,827 4,655 12,201 21,226 889 5,188 1,606 1,058 1,521 20,635 8,690 5,608 2,519 4,048 266 634 1,561 6,648 1,997 12,128 872 1,500 1,150 702 12,209 7,119 3,449 12,274 18,955 6,155 24,410 7,385 5,010 14,271 19,827 7,305 25,112 (2,349 ) 5,036 (2,493 ) 2,517 (4,379 ) 9,892 (3,124 ) 16,703 (2,119 ) 5,186 (8,361 ) 16,751 19,594 4,219 215 1,775 2,127 550 40,854 1,439 6,963 45,073 1,654 9,090 (5,581 ) 39,492 (633 ) 1,021 (4,748 ) 4,342 628 553 388 370 188 380 2,234 1,611 1,909 2,604 1,799 2,289 (747 ) 1,857 (917 ) 882 (693 ) 1,596 — 1,312 — 476 826 5,114 625 1,025 20,635 9,166 10,784 3,544 21,947 9,166 11,610 4,169 (8,119 ) 13,828 (2,407 ) 6,759 (1,788 ) 9,822 (1,368 ) 2,801 West Mid Rise Westwood Terrace Mid Rise Sep-04 Mar-02 White Cliff Whitefield Place Wickford Wilderness Trail Garden Garden Garden High Rise Mar-02 Apr-05 Mar-04 Mar-02 Wilkes Towers High Rise Mar-02 Willow Wood Winnsboro Arms Winter Gardens Woodcrest Woodland Woodland Hills Garden Garden High Rise Garden Garden Garden Mar-02 Jan-06 Mar-04 Dec-97 Jan-06 Oct-05 Philadelphia, PA Moline, IL Lincoln Heights, OH San Antonio, TX Henderson, NC Pineville, KY North Wilkesboro, NC North Hollywood, CA Winnsboro, SC St Louis, MO Odessa, TX Spartanburg, SC Jackson, MI Total Affordable Properties: Other(4) 1982 1976 1977 1980 1983 1983 132 97 555 720 11,169 3,242 5,854 586 582 720 16,996 3,828 17,578 4,548 (7,665 ) 9,913 (1,237 ) 3,311 215 72 223 80 247 44 124 1,010 938 3,151 946 4,048 215 419 219 2,550 247 123 674 1,010 1,357 5,705 1,069 4,722 1,572 5,924 1,316 5,732 (567 ) 1,005 (2,054 ) 3,870 880 (1,223 ) 4,509 (436 ) 1981 72 410 1,680 494 410 2,174 2,584 (723 ) 1,861 1,875 1984 1978 1920 1972 1972 1980 19 1,051 272 60 300 112 41 80 182 100 541 125 840 1,697 3,072 229 663 3,875 193 1,051 272 253 300 4,448 41 674 182 1,379 321 4,266 1,033 1,950 7,520 903 2,042 8,361 2,084 2,222 7,820 944 2,224 8,682 (308 ) 1,776 (1,508 ) 714 (1,334 ) 6,486 (708 ) 236 (491 ) 1,733 (2,727 ) 5,955 1,068 182 3,796 443 — 3,644 22,476 127,444 949,906 453,506 126,642 1,404,214 1,530,856 (534,697 ) 996,159 755,205 — 74 2,470 2,465 2,107 2,902 5,009 (2,490 ) 2,519 — F-61 4,537 2,483 6,961 8,536 2,856 13,634 20,870 850 4,479 1,851 1,639 1,446 12,716 9,147 5,645 3,109 3,888 1,652 1,003 2,260 1,423 4,478 Table of Contents Property Name Total Continuing Operations (1) Date Property Type Consolidated Location Year Number Built of Units Land (2) Initial Cost (3) Cost Capitalized Buildings and Subsequent to Improvements Consolidation Land Buildings and Improvements Total (5) December 31, 2009 Total Accumulated Cost Depreciation Net of AD (AD) Encumbrances 94,357 2,125,927 4,884,110 2,653,370 2,183,927 7,479,480 9,663,407 (2,701,046 ) 6,962,361 5,547,253 Discontinued Operations: Conventional Properties: Fairway Garden Jan-00 Garden Apr-00 Garden Dec-97 Garden Nov-96 Sienna Bay Solana Vista Stoney Brook Total Conventional Properties: Other(4) Total Discontinued Operations Total Continuing and Discontinued Operations 1978 Plano, TX St. Petersburg, FL 1984 Bradenton, FL 1984 Houston, TX 1972 256 2,961 5,137 5,788 2,961 10,925 13,886 (5,794 ) 8,092 8,885 276 200 113 1,737 1,276 275 9,778 7,170 1,865 10,702 6,872 1,931 1,737 1,276 275 20,480 14,042 3,796 22,217 15,318 4,071 (10,277 ) (5,449 ) (1,215 ) 11,940 9,869 2,856 10,630 7,865 1,797 845 6,249 23,950 25,293 6,249 49,243 55,492 (22,735 ) 32,757 29,177 — — — 79 1 78 79 (63 ) 16 — 845 6,249 23,950 25,372 6,250 49,321 55,571 (22,798 ) 32,773 29,177 95,202 2,132,176 4,908,060 2,678,742 2,190,177 7,528,801 9,718,978 (2,723,844 ) 6,995,134 5,576,430 (1) Date we acquired the property or first consolidated the partnership which owns the property. (2) Initial cost includes the tendering costs to acquire the noncontrolling interest share of our consolidated real estate partnerships. (3) Costs capitalized subsequent to consolidation includes costs capitalized since acquisition or first consolidation of the partnership/property. (4) Other includes land parcels, commercial properties and other related costs. (5) The aggregate cost of land and depreciable property for federal income tax purposes was approximately $8.0 billion at December 31, 2009. F-62 Table of Contents APARTMENT INVESTMENT AND MANAGEMENT COMPANY SCHEDULE III: REAL ESTATE AND ACCUMULATED DEPRECIATION For the Years Ended December 31, 2009, 2008 and 2007 (In Thousands) Real Estate Balance at beginning of year Additions during the year: Newly consolidated assets and acquisition of limited partnership interests(1) Acquisitions Capital expenditures Deductions during the year: Casualty and other write-offs(2) Sales Balance at end of year Accumulated Depreciation Balance at beginning of year Additions during the year: Depreciation Newly consolidated assets and acquisition of limited partnership interests(1) Deductions during the year: Casualty and other write-offs Sales Balance at end of year 2009 2008 2007 $ 11,000,496 $ 12,420,200 $ 12,011,693 19,683 — 275,444 31,447 107,445 665,233 31,572 233,059 689,719 (43,134 ) (1,533,511 ) $ 9,718,978 (130,595 ) (2,093,234 ) $ 11,000,496 (24,594 ) (521,249 ) $ 12,420,200 $ 2,815,497 $ 3,047,716 $ 2,901,414 478,550 497,395 477,725 (2,763 ) (22,256 ) (128,272 ) (5,200 ) (562,240 ) $ 2,723,844 (1,838 ) (705,520 ) $ 2,815,497 (5,280 ) (197,871 ) $ 3,047,716 (1) Includes the effect of newly consolidated assets, acquisition of limited partnership interests and related activity. (2) Casualty and other write-offs in 2008 include impairments totaling $91.1 million related to our Lincoln Place and Pacific Bay Vistas properties. (Back To Top) F-63 Section 2: EX-21.1 (EX-21.1) Entity Name APARTMENT INVESTMENT AND MANAGEMENT COMPANY 107-145 WEST 135TH STREET ASSOCIATES LIMITED PARTNERSHIP 1133 FIFTEENTH STREET ASSOCIATES 1133 FIFTEENTH STREET FOUR ASSOCIATES (A MARYLAND LIMITED PARTNERSHIP) 1212 SOUTH MICHIGAN LLC 1-36 JAIDEE DRIVE ASSOCIATES LIMITED PARTNERSHIP 1625 ROSEMARIE LIMITED PARTNERSHIP 224 E. COMMONWEALTH APARTMENTS, A CALIFORNIA LIMITED PARTNERSHIP 249 ALBANY HEIGHTS LIMITED PARTNERSHIP 324 SOUTH HORNE STREET ASSOCIATES LIMITED PARTNERSHIP 3258 BCP ASSOCIATES, L.P. 5 MILE LIMITED PARTNERSHIP 601 NORTH GRAND AVENUE PARTNERS LIMITED PARTNERSHIP 62ND STREET JOINT VENTURE 62ND STREET LIMITED PARTNERSHIP 7400 ROOSEVELT INVESTORS ABBOTT ASSOCIATES LIMITED PARTNERSHIP ACQUISITION LIMITED PARTNERSHIP ACTC VI MANAGER, LLC Exhibit 21.1 State Code MD NY DC MD IL CT CA CA GA AZ TN MI CA IL IL PA NY MD DE AHP ACQUISITION COMPANY, LLC AIC REIT PROPERTIES LLC AIMCO 1582 FIRST AVENUE, LLC AIMCO 173 EAST 90TH STREET, LLC AIMCO 182-188 COLUMBUS AVENUE, LLC AIMCO 204-206 WEST 133, LLC AIMCO 2232-2240 ACP, LLC AIMCO 2247-2253 ACP, LLC AIMCO 2252-2258 ACP, LLC AIMCO 2300-2310 ACP, LLC AIMCO 237 NINTH AVENUE, LLC AIMCO 240 WEST 73RD STREET CO-OWNER, LLC AIMCO 240 WEST 73RD STREET, LLC AIMCO 2484 ACP, LLC AIMCO 306 EAST 89TH STREET, LLC AIMCO 311/313 EAST 73RD STREET, LLC AIMCO 322 EAST 61ST STREET, LLC ME DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE Entity Name AIMCO 452 EAST 78TH STREET PROPERTY, LLC AIMCO 464-466 AMSTERDAM 200-210 WEST 83RD STREET, LLC AIMCO 510 EAST 88TH STREET PROPERTY, LLC AIMCO 514 EAST 88TH STREET, LLC AIMCO 656 ST. NICHOLAS, LLC AIMCO 759 ST. NICHOLAS, LLC AIMCO 88TH STREET/SECOND AVENUE PROPERTIES, LLC AIMCO ALL HALLOWS, LLC AIMCO ANCHORAGE, L.P. AIMCO ANGELES GP, LLC AIMCO ANTIOCH, L.L.C. AIMCO ARBORS-GROVETREE, LLC AIMCO ARVADA HOUSE, LLC AIMCO ASSOCIATED PROPERTIES, LP AIMCO ASSURANCE LTD. AIMCO AUBURN GLEN APARTMENTS, LLC AIMCO BALAYE APARTMENTS I, LLC AIMCO BALAYE APARTMENTS II, LLC AIMCO BARCELONA, LLC AIMCO BAYVIEW, LLC AIMCO BEACON HILL PRESERVATION GP, LLC AIMCO BEAU JARDIN, L.P. AIMCO BEECH LAKE, L.L.C. AIMCO BILTMORE, LLC AIMCO BOLTON NORTH, L.L.C. AIMCO BOSTON LOFTS, L.P. AIMCO BRE I, LLC AIMCO BRE II, LLC AIMCO BREAKERS, L.P. AIMCO BRIARWEST, LLC AIMCO BRIARWOOD, LLC AIMCO BROOK RUN, L.L.C. AIMCO BUENA VISTA APARTMENTS GP, LLC AIMCO BUENA VISTA APARTMENTS, L.P. AIMCO BUTTERNUT CREEK PRESERVATION GP, LLC AIMCO CALHOUN CLUB, L.L.C. AIMCO CALHOUN, INC. State Code DE DE DE DE DE DE DE DE DE DE DE DE DE DE BD DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE Entity Name AIMCO CALHOUN, L.L.C. AIMCO CAMERON VILLAS, L.L.C. AIMCO CAPITAL HOLDINGS FUND VI, LLC AIMCO CAPITAL HOLDINGS FUND VII, LLC AIMCO CAPITAL TAX CREDIT FUND I, LIMITED PARTNERSHIP AIMCO CAPITAL TAX CREDIT FUND II, LLC AIMCO CAPITAL TAX CREDIT FUND III, LLC AIMCO CAPITAL TAX CREDIT FUND IV, LLC AIMCO CAPITAL TAX CREDIT FUND IX, LLC AIMCO CAPITAL TAX CREDIT FUND V, LLC AIMCO CAPITAL TAX CREDIT FUND VI, LLC AIMCO CAPITAL TAX CREDIT FUND VII, LLC AIMCO CAPITAL TAX CREDIT FUND VIII, LLC AIMCO CAPITAL TAX CREDIT FUND X, LLC AIMCO CAPITAL TAX CREDIT FUND XI, LLC AIMCO CAPITAL TAX CREDIT FUND XII, LLC AIMCO CAPITAL TAX CREDIT FUND XIII, LLC AIMCO CAPITAL TAX CREDIT I, INC. AIMCO CAPITAL TAX CREDIT MANAGEMENT II, LLC AIMCO CAPITAL TAX CREDIT MANAGEMENT III, LLC AIMCO CAPITAL, INC. AIMCO CARRIAGE HOUSE GP, LLC AIMCO CASA DE LAS HERMANITAS DEVCO, LLC AIMCO CASA DE MONTEREY GP, LLC AIMCO CASA DE MONTEREY, L.P. AIMCO CENTRAL PARK TOWNHOMES, LLC AIMCO CHATHAM HARBOR, L.L.C. AIMCO CHELSEA LAND, L.L.C. AIMCO CHELSEA MEMBER, L.L.C. AIMCO CHELSEA RIDGE, L.L.C. AIMCO CHESTNUT HALL GP, LLC AIMCO CHESTNUT HALL LIMITED PARTNERSHIP AIMCO CHESTNUT HILL GP, LLC AIMCO CK PROPERTIES, LLC AIMCO COLUMBUS AVE., LLC AIMCO CONSTRUCTION SERVICES, LLC AIMCO COPPERWOOD, LLC State Code DE DE DE DE CA DE DE DE DE DE DE DE DE DE DE DE DE CA DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE Entity Name AIMCO COUNTRY CLUB HEIGHTS, LLC AIMCO COUNTRY LAKES, L.L.C. AIMCO COVINGTON POINTE, L.P. AIMCO CREVENNA OAKS GP, LLC AIMCO CROSSWOOD PARK APARTMENTS GP, LLC AIMCO CROSSWOOD PARK APARTMENTS, L.P. AIMCO CROSSWOOD PARK GP, LLC AIMCO CROSSWOOD PARK, L.P. AIMCO DEERBROOK, LLC AIMCO DORAL OAKS, L.P. AIMCO ELM CREEK, L.P. AIMCO EQUITY SERVICES, INC. AIMCO ESPLANADE AVENUE APARTMENTS, LLC AIMCO FALL RIVER II, L.L.C. AIMCO FALL RIVER, L.L.C. AIMCO FISHERMAN’S WHARF, LLC AIMCO FLAMINGO HEALTH CLUB, LLC AIMCO FORESTLAKE APARTMENTS, LLC AIMCO FOUNTAIN PLACE PRESERVATION GP, LLC AIMCO FOXCHASE, L.P. AIMCO FRAMINGHAM, LLC AIMCO GARDENS GP LLC AIMCO GLENS APARTMENTS, LLC AIMCO GP LA, L.P. AIMCO GRANADA, L.L.C. AIMCO GREENBRIAR PRESERVATION GP, LLC AIMCO GREENS OF NAPERVILLE, L.L.C. AIMCO GREENS, L.L.C. AIMCO GREENSPRING, L.P. AIMCO GROUP, L.P. AIMCO GS SWAP, LLC AIMCO HANOVER SQUARE/DIP, L.L.C. AIMCO HARLEM FUNDING, LLC AIMCO HEMET DEVCO, LLC AIMCO HERITAGE PARK, L.P. AIMCO HILLMEADE, LLC AIMCO HOLDINGS QRS, INC. State Code DE DE DE DE DE DE DE DE DE DE DE VA DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE Entity Name AIMCO HOLDINGS, L.P. AIMCO HOPKINS VILLAGE PRESERVATION GP, LLC AIMCO HORIZONS WEST APARTMENTS, LLC AIMCO HP/SWAP, LLC AIMCO HUDSON HARBOUR, LLC AIMCO HUNTER’S CROSSING, L.P. AIMCO HYDE PARK TOWER, L.L.C. AIMCO IGA, INC. AIMCO INDEPENDENCE GREEN, L.L.C. AIMCO INDIO DEVCO, LLC AIMCO INGRAM SQUARE PRESERVATION GP, LLC AIMCO IPLP, L.P. AIMCO JACQUES-MILLER, L.P. AIMCO JV PORTFOLIO #1, LLC AIMCO KEY TOWERS, L.P. AIMCO KIRKWOOD HOUSE PRESERVATION SLP, LLC AIMCO LA QRS, INC. AIMCO LA SALLE, LLC AIMCO LA VISTA, LLC AIMCO LAKE CASTLETON ARMS, L.L.C. AIMCO LEAHY SQUARE APARTMENTS, LLC AIMCO LOFTS HOLDINGS, L.P. AIMCO LORING TOWERS, LLC AIMCO LOS ARBOLES, L.P. AIMCO LP LA, LP AIMCO LT, L.P. AIMCO MAPLE BAY, L.L.C. AIMCO MERRILL HOUSE, L.L.C. AIMCO MICHIGAN MEADOWS HOLDINGS, L.L.C. AIMCO MONTEREY GROVE APARTMENTS TIC 2, LLC AIMCO MONTEREY GROVE APARTMENTS, LLC AIMCO MOUNTAIN VIEW APARTMENTS GP, LLC AIMCO MOUNTAIN VIEW APARTMENTS, L.P. AIMCO MOUNTAIN VIEW, L.L.C. AIMCO N.P. LOFTS, L.P. AIMCO NET LESSEE (BAYBERRY HILL), LLC AIMCO NET LESSEE (GEORGETOWN), LLC State Code DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE Entity Name AIMCO NET LESSEE (MARLBORO), LLC AIMCO NET LESSEE (WATERFORD VILLAGE), LLC AIMCO NEW BALTIMORE, LLC AIMCO NEWBERRY PARK PRESERVATION GP, LLC AIMCO NON-ECONOMIC MEMBER, LLC AIMCO NORTH ANDOVER, L.L.C. AIMCO NORTHPOINT, L.L.C. AIMCO OAK FOREST I, L.L.C. AIMCO OAK FOREST II, L.L.C. AIMCO OCEAN OAKS, L.L.C. AIMCO OLDE TOWN WEST III, L.P. AIMCO OXFORD HOUSE PRESERVATION GP, LLC AIMCO PACIFICA PARK APARTMENTS, LLC AIMCO PALM SPRINGS DEVCO, LLC AIMCO PANORAMA PARK PRESERVATION GP, LLC AIMCO PARADISE PALMS, LLC AIMCO PARK AT CEDAR LAWN, L.P. AIMCO PARK LA BREA HOLDINGS, LLC AIMCO PARK LA BREA SERVICES, LLC AIMCO PARK LA BREA, INC. AIMCO PARK PLACE, LLC AIMCO PARKVIEW DEVCO, LLC AIMCO PARKVIEW MANOR, LLC AIMCO PARKWAYS GP, LLC AIMCO PATHFINDER VILLAGE APARTMENTS GP, LLC AIMCO PATHFINDER VILLAGE APARTMENTS, L.P. AIMCO PAVILION PRESERVATION GP, L.L.C. AIMCO PINE BLUFF VILLAGE PRESERVATION GP, LLC AIMCO PINE SHADOWS, L.L.C. AIMCO PINEBROOK, L.P. AIMCO PINES, L.P. AIMCO PLEASANT HILL, LLC AIMCO PLUMMER VILLAGE, LLC AIMCO PROPERTIES FINANCE CORP. AIMCO PROPERTIES FINANCE PARTNERSHIP, L.P. AIMCO PROPERTIES, L.P. AIMCO PROPERTIES, LLC State Code DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE MD DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE Entity Name AIMCO PROPERTIES/ABHLD PARKVIEW MANOR, LLC AIMCO QRS GP, LLC AIMCO RAMBLEWOOD, L.L.C. AIMCO REMINGTON, LLC AIMCO RIDGEWOOD LA LOMA DEVCO, LLC AIMCO RIDGEWOOD TOWERS PRESERVATION GP, LLC AIMCO RIVER CLUB, LLC AIMCO RIVER VILLAGE PRESERVATION GP, LLC AIMCO RIVERSIDE PARK, L.L.C. AIMCO RIVERWOODS GP, LLC AIMCO ROSE GARDENS, LLC AIMCO ROUND BARN MANOR GP, LLC AIMCO ROYAL CREST — NASHUA, L.L.C. AIMCO ROYAL PALMS, LLC AIMCO RUSCOMBE GARDENS SLP, LLC AIMCO SALEM PRESERVATION GP, LLC AIMCO SAN BRUNO APARTMENT PARTNERS, L.P. AIMCO SAN JOSE, LLC AIMCO SANDPIPER, L.P. AIMCO SCOTCHOLLOW APARTMENTS GP, LLC AIMCO SCOTCHOLLOW APARTMENTS, L.P. AIMCO SELECT PROPERTIES, L.P. AIMCO SHOREVIEW, LLC AIMCO SIGNATURE POINT, L.P. AIMCO SOMERSET LAKES, L.L.C. AIMCO SOUTH BAY VILLA, LLC AIMCO STAFFORD STUDENT APARTMENTS GP, LLC AIMCO STERLING VILLAGE DEVCO, LLC AIMCO SUMMIT OAKS GP, LLC AIMCO SUNSET ESCONDIDO, L.L.C. AIMCO TALBOT WOODS, LLC AIMCO TAMARAC PINES, LLC AIMCO TERRY MANOR, LLC AIMCO TOMPKINS TERRACE GP, LLC AIMCO TOR, L.L.C. AIMCO TOWNSHIP AT HIGHLANDS APARTMENTS, LLC AIMCO TREE CARE DIVISION, LLC State Code DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE Entity Name AIMCO VAN NUYS PRESERVATION, LLC AIMCO VANTAGE POINTE, L.L.C. AIMCO VENEZIA, LLC AIMCO VERDES DEL ORIENTE, L.L.C. AIMCO VILLA DE GUADALUPE, L.L.C. AIMCO VILLAGE CREEK AT BROOKHILL, LLC AIMCO VILLAGE CROSSING, L.L.C. AIMCO WALNUT HILLS PRESERVATION GP, LLC AIMCO WARWICK, L.L.C. AIMCO WASHINGTON SQUARE WEST GP, LLC AIMCO WAVERLY APARTMENTS, LLC AIMCO WESTCHESTER PARK, LLC AIMCO WESTGATE, LLC AIMCO WESTMINSTER OAKS GP, LLC AIMCO WESTWOOD PRESERVATION GP, LLC AIMCO WESTWOOD TERRACE GP, LLC AIMCO WEXFORD VILLAGE II, L.L.C. AIMCO WEXFORD VILLAGE, L.L.C. AIMCO WHITEFIELD PLACE, LLC AIMCO WILSON ACRES MANAGER, LLC AIMCO WILSON ACRES, LLC AIMCO WINDWARD, LLC AIMCO WINTER GARDEN, LLC AIMCO WOODLAND HILLS, LLC AIMCO WOODS OF BURNSVILLE, L.L.C. AIMCO YACHT CLUB AT BRICKELL, LLC AIMCO YORKTOWN, L.P. AIMCO/ALLVIEW, L.L.C. AIMCO/APOLLO, L.L.C. AIMCO/BETHESDA EMPLOYEE, L.L.C. AIMCO/BETHESDA GP, L.L.C. AIMCO/BETHESDA HOLDINGS ACQUISITIONS, INC. AIMCO/BETHESDA HOLDINGS, INC. AIMCO/BETHESDA II, L.L.C. AIMCO/BLUFFS, L.L.C. AIMCO/BRANDERMILL, L.L.C. AIMCO/BRANDON, L.L.C. State Code DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE Entity Name AIMCO/BRANDYWINE, L.P. AIMCO/CASSELBERRY, L.L.C. AIMCO/CHICKASAW, L.L.C. AIMCO/CHIMNEYTOP, L.L.C. AIMCO/COLONNADE, INC. AIMCO/COLONNADE, L.L.C. AIMCO/COLONNADE, L.P. AIMCO/CONTINENTAL PLAZA LIMITED GP, LLC AIMCO/DFW APARTMENT INVESTORS GP, LLC AIMCO/DFW RESIDENTIAL INVESTORS GP, LLC AIMCO/FARMINGDALE, L.L.C. AIMCO/FOX VALLEY, L.L.C. AIMCO/FOXTREE, INC. AIMCO/FOXTREE, L.L.C. AIMCO/FOXTREE, L.P. AIMCO/GALLERIA PARK ASSOCIATES GP, LLC AIMCO/GROVETREE, INC. AIMCO/GROVETREE, L.L.C. AIMCO/GROVETREE, L.P. AIMCO/HIL, L.L.C. AIMCO/HOLLIDAY ASSOCIATES GP, LLC AIMCO/IPT, INC. AIMCO/KIRKMAN, L.L.C. AIMCO/LAKE RIDGE, L.L.C. AIMCO/LANTANA, L.L.C. AIMCO/LEXINGTON, L.L.C. AIMCO/MIDDLETOWN, L.L.C. AIMCO/MINNEAPOLIS ASSOCIATES GP, LLC AIMCO/NASHUA, L.L.C. AIMCO/NEWPORT, L.L.C. AIMCO/NHP PARTNERS, L.P. AIMCO/NHP PROPERTIES, INC. AIMCO/NORTH WOODS, L.L.C. AIMCO/ONE LINWOOD ASSOCIATES GP, LLC AIMCO/PALM BEACH, L.L.C. AIMCO/PARK TOWNE PLACE ASSOCIATES GP, LLC AIMCO/PINELLAS, L.L.C. State Code DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE Entity Name AIMCO/RALS, L.P. AIMCO/RAVENSWORTH ASSOCIATES GP, LLC AIMCO/RIVERSIDE PARK ASSOCIATES GP, LLC AIMCO/SCHAUMBURG, L.L.C. AIMCO/SHADETREE, INC. AIMCO/SHADETREE, L.L.C. AIMCO/SHADETREE, L.P. AIMCO/SOUTHRIDGE, L.L.C. AIMCO/STANDPOINT VISTA GP, LLC AIMCO/STONEGATE, L.P. AIMCO/SWAP, L.L.C. AIMCO/THE HILLS, INC. AIMCO/TIDEWATER, L.L.C. AIMCO/TIMBERTREE, INC. AIMCO/TIMBERTREE, L.L.C. AIMCO/TIMBERTREE, L.P. AIMCO/TRAVIS ONE, L.P. AIMCO/WAI ASSOCIATES GP, LLC AIMCO/WAI ASSOCIATES LP, LLC AIMCO/WESTRIDGE, L.L.C. AIMCO/WICKERTREE, INC. AIMCO/WICKERTREE, L.L.C. AIMCO/WICKERTREE, L.P. AIMCO/WINROCK-HOUSTON GP, LLC AIMCO-GP, INC. AIMCO-LP TRUST AJ ONE LIMITED PARTNERSHIP AJ ONE, INC. AJ TWO LIMITED PARTNERSHIP AJ TWO, INC. ALABAMA PROPERTIES LTD., II ALABAMA PROPERTIES, LTD., V ALASKA HOUSE ASSOCIATES ALEX PLACE, LIMITED PARTNERSHIP ALEXANDER PLACE APARTMENTS, A LOUISIANA PARTNERSHIP IN COMMENDAM ALL HALLOWS ASSOCIATES, L.P. ALL HALLOWS PRESERVATION, L.P. State Code DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE AL AL WA AL LA CA CA Entity Name ALLENTOWN TOWNE HOUSE LIMITED PARTNERSHIP ALLENTOWN-OXFORD ASSOCIATES LIMITED PARTNERSHIP ALLIANCE TOWERS LIMITED PARTNERSHIP ALLISON VILLAGE ASSOCIATES, L.P. ALLVIEW-OXFORD LIMITED PARTNERSHIP ALMS HILL II LIMITED PARTNERSHIP AMARILLO NORTHWEST VILLAGE, LTD. AMBASSADOR APARTMENTS, L.P. AMBASSADOR CRM FLORIDA PARTNERS LIMITED PARTNERSHIP AMBASSADOR FLORIDA PARTNERS LIMITED PARTNERSHIP AMBASSADOR FLORIDA PARTNERS, INC. AMBASSADOR I, INC. AMBASSADOR I, L. P. AMBASSADOR II JV GP, LLC AMBASSADOR II JV, L.P. AMBASSADOR II, INC. AMBASSADOR III, L.P. AMBASSADOR IV, INC. AMBASSADOR IX, INC. AMBASSADOR IX, L.P. AMBASSADOR TEXAS PARTNERS, L.P. AMBASSADOR TEXAS, INC. AMBASSADOR VII, INC. AMBASSADOR VII, L.P. AMBASSADOR VIII, INC. AMBASSADOR VIII, L.P. AMBASSADOR X, INC. AMBASSADOR X, L.P. AMREAL CORPORATION AMREAL REALTY, INC. ANCHORAGE PARTNERS, A TEXAS LIMITED PARTNERSHIP ANDERSON OAKS LIMITED PARTNERSHIP ANGELES INCOME PROPERTIES, LTD. 6 ANGELES INCOME PROPERTIES, LTD. II ANGELES INVESTMENT PROPERTIES, INC. ANGELES OPPORTUNITY PROPERTIES, LTD., A CALIFORNIA LIMITED PARTNERSHIP ANGELES PARTNERS X State Code PA MD OH CO MD OH TX DE DE DE DE DE IL DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE SC SC TX WA CA CA CA CA CA Entity Name ANGELES PARTNERS XII ANGELES PROPERTIES, INC. ANGELES REALTY CORPORATION ANGELES REALTY CORPORATION II ANTIOCH PRESERVATION, L.P. ANTON SQUARE, LTD. AP XII ASSOCIATES GP, L.L.C. AP XII TWIN LAKE TOWERS, L.P. AP XII TWIN LAKE TOWERS, LLC APARTMENT CCG 17, L.L.C. APARTMENT CCG 17, L.P. APARTMENT CREEK 17A LLC APARTMENT LODGE 17A LLC APOLLO-OXFORD ASSOCIATES LIMITED PARTNERSHIP APPLE RIDGE SINGLE FAMILY HOMES LIMITED PARTNERSHIP APPLE TREE ASSOCIATES, AN IDAHO LIMITED PARTNERSHIP ARCHERS GREEN LIMITED PARTNERSHIP ARISTOCRAT MANOR, LTD. ARKANSAS CITY APARTMENTS, LIMITED PARTNERSHIP ARLINGTON SENIOR HOUSING, L.P. ARVADA HOUSE PRESERVATION LIMITED PARTNERSHIP ASHLAND MANOR LIMITED PARTNERSHIP ATHENS GARDENS, LTD. ATHENS STATION, LTD. ATLANTA ASSOCIATES LIMITED PARTNERSHIP ATLANTIC IX, L.L.C. ATRIUM VILLAGE ASSOCIATES ATRIUMS OF PLANTATION JV GP, LLC ATRIUMS OF PLANTATION JV, L.P. AVON DEVELOPMENT COMPANY AVONDALE SIESTA POINTE APARTMENTS LIMITED PARTNERSHIP AZALEA COURT INVESTMENT GROUP, BRENTWOOD LIMITED PARTNERSHIP NO. 2 BAISLEY PARK ASSOCIATES LIMITED PARTNERSHIP BALDWIN COUNTY HOUSING, LTD. BALDWIN OAKS ELDERLY, LTD. BALDWIN TOWERS ASSOCIATES BANGOR HOUSE PROPRIETARY LIMITED PARTNERSHIP State Code CA CA CA CA DE AL SC DE DE SC CA CO CO MD KY ID VA AR AR TX CO OH OH OH MA MI IL DE DE PA AZ AL NY AL NJ PA ME Entity Name BANNOCK ARMS SECOND LIMITED PARTNERSHIP BARNESBORO ASSOCIATES, A PENNSYLVANIA LIMITED PARTNERSHIP BAY PARC PLAZA APARTMENTS, L.P. BAYBERRY HILL, L.L.C. BAYHEAD VILLAGE ASSOCIATES, L.P. BAYVIEW HUNTERS POINT APARTMENTS, L.P. BAYVIEW PRESERVATION, L.P. BEACON HILL PRESERVATION LIMITED DIVIDEND HOUSING ASSOCIATION LIMITED PARTNERSHIP BEDFORD HOUSE, LTD. BELLA GRANDE, LTD. BELLAIR MANOR, LTD. BELLERIVE ASSOCIATES LIMITED PARTNERSHIP BELLEVILLE MANOR APARTMENTS, LTD. BELLS BAY, L.P. BELMONT 189 ASSOCIATES BELOIT MATURE ADULT HOUSING, L.L.C. BENJAMIN BANNEKER PLAZA ASSOCIATES BENSALEM GARDEN ASSOCIATES LIMITED PARTNERSHIP BENT TREE II-OXFORD ASSOCIATES LIMITED PARTNERSHIP BENT TREE-OXFORD ASSOCIATES LIMITED PARTNERSHIP BEREA SINGLE FAMILY HOMES, LTD. BERKLEY LIMITED PARTNERSHIP BETHEL COLUMBUS CORPORATION BETHEL COLUMBUS-OXFORD ASSOCIATES LIMITED PARTNERSHIP BETHEL TOWERS LIMITED DIVIDEND HOUSING ASSOCIATION BETHLEHEM DEVELOPMENT COMPANY BETTER HOUSING ASSOCIATES, LIMITED PARTNERSHIP BEVILLE-ISLAND CLUB APARTMENTS PARTNERS, L.P. BILTMORE APARTMENTS, LTD. BIRCH MANOR APARTMENTS BIRCH MANOR APARTMENTS — PHASE II BIRCH MANOR APARTMENTS, PHASE 1 LTD. BIRCH MANOR APARTMENTS, PHASE II LTD. BIRCHFIELD ASSOCIATES BLAKEWOOD PROPERTIES ASSOCIATES BLANCHARD APARTMENTS ASSOCIATES LIMITED PARTNERSHIP BLOOMSBURG ELDERLY ASSOCIATES State Code CA PA DE DE IN CA CA MI OH FL OH MO KY SC NY WI PA PA IN IN KY VA MD MD MI PA CT DE OH OH OH OH OH PA GA WA PA Entity Name BLUEWATER LIMITED DIVIDEND HOUSING ASSOCIATION BOLTON NORTH PRESERVATION LIMITED PARTNERSHIP BRANDEMERE-REO, L.P. BRANDERMILL-OXFORD ASSOCIATES LIMITED PARTNERSHIP BRANDON-OXFORD ASSOCIATES LIMITED PARTNERSHIP BRANFORD DEVELOPMENT ASSOCIATES LIMITED PARTNERSHIP BRIARCLIFFE-OXFORD ASSOCIATES LIMITED PARTNERSHIP BRIGHTON APARTMENTS ASSOCIATES LIMITED PARTNERSHIP BRIGHTON GP, L.L.C. BRIGHTON MEADOWS ASSOCIATES, AN INDIANA LIMITED PARTNERSHIP BRIGHTWOOD MANOR ASSOCIATES BRINTON MANOR NO. 1 ASSOCIATES BRINTON TOWERS ASSOCIATES BRISTOL PARTNERS, L.P. BROAD RIVER PROPERTIES, L.L.C. BROADMOOR APARTMENTS ASSOCIATES LTD. PARTNERSHIP BROADMOOR AT CHELSEA ACQUISITION, L.P. BROADWAY ASSOCIATES BROADWAY GLEN ASSOCIATES BROOK RUN ASSOCIATES, L.P. BROOKSIDE APARTMENTS ASSOCIATES BROOKWOOD LIMITED PARTNERSHIP BRYDEN HOUSE LIMITED PARTNERSHIP BUCKHANNON MANOR ASSOCIATES LIMITED PARTNERSHIP BUFFALO VILLAGE ASSOCIATES LIMITED PARTNERSHIP BURKSHIRE COMMONS APARTMENTS PARTNERS, L.P. BURLINGTON HOTEL BUILDING, LTD., LLLP BURLINGTON RIVER APARTMENTS, LIMITED PARTNERSHIP BURNHAM GEREL BURNSVILLE APARTMENTS LIMITED PARTNERSHIP BUTTERNUT CREEK PRESERVATION LIMITED DIVIDEND HOUSING ASSOCIATION LIMITED PARTNERSHIP BUYERS ACCESS LLC BW OPERATING COMPANY, L.L.C. CACHE CREEK PARTNERS, L.P. CALHOUN BUILDERS, INC. D/B/A PATMAN SWITCH ASSOCIATES, A LOUISIANA PARTNERSHIP IN COMMENDAM CALIFORNIA SQUARE LIMITED PARTNERSHIP CALMARK HERITAGE PARK II LIMITED PARTNERSHIP State Code MI DE TX MD MD CT MI NY SC IN PA PA PA MO DE SC MO RI MA IL PA IL OH WV NY DE CO IA IL MN MI DE MA CA LA KY CA Entity Name CALMARK INVESTORS, LTD., A CALIFORNIA LIMITED PARTNERSHIP CALMARK/FORT COLLINS, INC. CALMARK/FORT COLLINS, LTD. CALVERT CITY, LTD. CAMARILLO-ROSEWOOD ASSOCIATES LIMITED PARTNERSHIP CAMBRIDGE COURT APARTMENTS, L.P. CAMBRIDGE HEIGHTS APARTMENTS LIMITED PARTNERSHIP CAMERON PARK VILLAGE LIMITED, A CALIFORNIA LIMITED PARTNERSHIP CAMPBELL HEIGHTS ASSOCIATES LIMITED PARTNERSHIP CANTERBURY GARDENS ASSOCIATES LIMITED PARTNERSHIP CANTERBURY LIMITED PARTNERSHIP CANTERBURY SERVICES LLC CANYON SHADOWS, L.P. CAPITAL HEIGHTS ASSOCIATES LIMITED PARTNERSHIP CAPITOL HILL ASSOCIATES CAROLINA ASSOCIATES LIMITED PARTNERSHIP CARPENTER-OXFORD ASSOCIATES II LIMITED PARTNERSHIP CARPENTER-OXFORD, L.L.C. CARRIAGE APX, A MICHIGAN LIMITED PARTNERSHIP CARRIAGE APX, INC. CARRIAGE APX, LLC CARRIAGE HOUSE PRESERVATION, L.P. CASA QUINTANA, LTD. CASDEN OFFICE HOLDINGS LLC CASDEN PROPERTIES LLC CASSADY VILLAGE APARTMENTS, LTD. CASSELBERRY INVESTORS, L.L.C. CASSELBERRY-OXFORD ASSOCIATES LIMITED PARTNERSHIP CASTLEWOOD ASSOCIATES, L.P. CAYUGA VILLAGE ASSOCIATES LIMITED PARTNERSHIP CCIP PLANTATION GARDENS, L.L.C. CCIP REGENCY OAKS, L.L.C. CCIP STERLING, L.L.C. CCIP STERLING, L.P. CCIP/2 HIGHCREST, L.L.C. CCIP/2 VILLAGE BROOKE, L.L.C. CCIP/2 WINDEMERE, L.L.C. State Code CA CA CA OH CA SC MS CA DC MI IN DE CA WV CO WA MD MD MI MI DE DE TX DE DE OH MD MD IA NY DE DE DE PA DE DE DE Entity Name CCIP/2 WINDEMERE, L.P. CCIP/3 SANDPIPER, LLC CCIP/3 WILLIAMSBURG MANOR, LLC CCP IV ARBOURS OF HERMITAGE, LLC CCP IV ASSOCIATES, LTD. CCP IV KNOLLWOOD, LLC CCP/III VILLAGE GREEN GP, INC. CCP/IV RESIDENTIAL GP, L.L.C. CDLH AFFORDABLE, L.P. CEDAR RIM APARTMENTS, LLC CEDAR TERRACE APARTMENTS, LTD. CENTER CITY ASSOCIATES CENTER SQUARE ASSOCIATES CENTRAL PARK TOWERS II LIMITED PARTNERSHIP CENTRAL PARK TOWERS LIMITED PARTNERSHIP CENTRAL STATION LIMITED PARTNERSHIP CENTRAL STROUD, LIMITED PARTNERSHIP CENTRAL WOODLAWN LIMITED PARTNERSHIP CENTRAL WOODLAWN REHABILITATION JOINT VENTURE CENTURY LAKESIDE PLACE, L.P. CENTURY PENSION INCOME FUND XXIV, A CALIFORNIA LIMITED PARTNERSHIP CENTURY PROPERTIES FUND XIV L.P. CENTURY PROPERTIES FUND XIX, LP CENTURY PROPERTIES FUND XV CENTURY PROPERTIES FUND XVI CENTURY PROPERTIES FUND XVII, LP CENTURY PROPERTIES GROWTH FUND XXII, LP CENTURY SUN RIVER, LIMITED PARTNERSHIP CENTURY TOWER APARTMENTS, L.P. CHA PROPERTIES, INC. CHANDLER COMMONWEALTH LIMITED PARTNERSHIP CHANDLER PROPERTY DEVELOPMENT ASSOCIATES LIMITED PARTNERSHIP CHANTILLY PARTNERS LIMITED PARTNERSHIP CHAPEL HOUSING LIMITED PARTNERSHIP CHARLES STREET ASSOCIATES LIMITED PARTNERSHIP CHARLESTON-OXFORD ASSOCIATES LIMITED PARTNERSHIP CHARLTON HOUSING ASSOCIATES LIMITED PARTNERSHIP State Code DE DE DE DE TX DE SC SC CA DE AL PA PA KS KS TN FL IL IL TX CA CA DE CA CA DE DE AZ MO DE AZ AZ VA MD CT MD MA Entity Name CHARNEY ASSOCIATES LIMITED PARTNERSHIP CHATEAU FOGHORN LIMITED PARTNERSHIP CHELSEA RENAISSANCE L.P. CHERRYWOOD ASSOCIATES LIMITED PARTNERSHIP CHESTNUT HILL ASSOCIATES LIMITED PARTNERSHIP CHESWICK-OXFORD ASSOCIATES, L.P. CHICKASAW-OXFORD ASSOCIATES LIMITED PARTNERSHIP CHICO GARDENS LIMITED PARTNERSHIP CHILDRESS MANOR APARTMENTS CHIMNEYTOP-OXFORD ASSOCIATES L.P. CHURCH STREET ASSOCIATES LIMITED PARTNERSHIP CHURCHVIEW GARDENS LIMITED PARTNERSHIP CIDER MILL ASSOCIATES, A PENNSYLVANIA LIMITED PARTNERSHIP CIMARRON ACQUISITION, L.P. CITRUS GROVE JV GP, LLC CITRUS GROVE JV, L.P. CITY HEIGHTS DEVELOPMENT COMPANY CITY LINE ASSOCIATES LIMITED PARTNERSHIP CIVIC HOUSING ASSOCIATES I CIVIC HOUSING ASSOCIATES II CK SERVICES, INC. CK-GP II, INC. CK-LP II, INC. CLARKE COURT, LLC CLAYTON ASSOCIATES LIMITED PARTNERSHIP CLEAR LAKE LAND PARTNERS, LTD. CLIFFS APARTMENTS, L.P. CLOVERLANE FOUR-OXFORD LIMITED PARTNERSHIP CLOVERLANE III CORPORATION CLOVERLANE III-OXFORD ASSOCIATES LIMITED PARTNERSHIP CLUB APARTMENT ASSOCIATES LIMITED PARTNERSHIP C-O CORPORATION COATESVILLE TOWERS COBBLESTONE CORNERS, L.P. COES POND LIMITED PARTNERSHIP COLCHESTER STAGE II COMPANY COLD SPRING SINGLE FAMILY HOMES, LTD. State Code WA MD KS ID DE IN MD CA TX IN IL PA PA MO DE DE PA VA OH OH DE DE DE WA WA TX SC MD MD MD NC MD PA TN MA MI KY Entity Name COLLEGE OAKS PARK, L.P. COLLEGE PARK APARTMENTS, A LIMITED PARTNERSHIP COLLEGE TRACE APARTMENTS, LTD. COLONY HOUSE APARTMENTS, LTD. COLUMBUS JUNCTION PARK, LIMITED PARTNERSHIP COMBINED PROPERTIES LIMITED PARTNERSHIP COMFED QUALIFIED HOUSING LIMITED PARTNERS XII, A NEBRASKA LIMITED PARTNERSHIP COMMUNITY CIRCLE II, LTD. COMMUNITY CIRCLE, LTD. COMMUNITY DEVELOPERS OF PRINCEVILLE LIMITED PARTNERSHIP CONCAP CCP/IV RIVER’S EDGE PROPERTIES, INC. CONCAP EQUITIES, INC. CONCAP HOLDINGS, INC. CONCAP VILLAGE GREEN ASSOCIATES, LTD. CONGRESS REALTY COMPANIES LIMITED PARTNERSHIP CONGRESS REALTY CORP. CONIFER MEDFORD CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES, LP CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/2, LP CONSOLIDATED CAPITAL INSTITUTIONAL PROPERTIES/3, LP CONSOLIDATED CAPITAL PROPERTIES III CONSOLIDATED CAPITAL PROPERTIES IV, LP CONTINENTAL APARTMENTS CONTINENTAL PLAZA ASSOCIATES CONTINENTAL PLAZA LIMITED PARTNERSHIP COOPER RIVER PROPERTIES, L.L.C. COPPERFIELD APARTMENTS JV, L.P. COPPERWOOD PRESERVATION, LP COUCH-OXFORD ASSOCIATES LIMITED PARTNERSHIP COUCH-OXFORD, L.L.C. COUNTRY CLUB WOODS, AFFORDABLE HOMES, LTD. COUNTRYSIDE NORTH AMERICAN PARTNERS, L.P. COUNTRYVIEW ESTATES I, L.P. COURTS OF CICERO II L.P. COURTYARD-OXFORD ASSOCIATES L.P. COVENTRY SQUARE APARTMENTS JV, L.P. CPF 16 WOODS OF INVERNESS GP, L.L.C. State Code IL PA FL CA IA WA NE OH OH NC TX DE TX TX MA MA OR DE DE DE CA DE MI IL IL DE TX TX MD MD FL NJ MO IL IN TX SC Entity Name CPF XIV/SUN RIVER, INC. CPF XV/LAKESIDE PLACE, INC. CPGF 22 WOOD CREEK GP, L.L.C. CRC CONGRESS REALTY CORP. CREEKSIDE INVESTMENT COMPANY CREEKVIEW ASSOCIATES CREEKWOOD APARTMENTS, LTD. CREVENNA OAKS PRESERVATION, L.P. CROCKETT MANOR APARTMENTS, A LIMITED PARTNERSHIP CRYAR HOMES, LIMITED PARTNERSHIP CRYSTAL SPRINGS ASSOCIATES CUMBERLAND COURT ASSOCIATES CUMMINGS MILL, LLC DAMEN COURT ASSOCIATES LIMITED PARTNERSHIP DARBY TOWNHOUSES ASSOCIATES DARBY TOWNHOUSES LIMITED PARTNERSHIP DARBY TOWNHOUSES PRESERVATION GENERAL PARTNER, L.L.C. DARBY TOWNHOUSES PRESERVATION, LP DAVIDSON DIVERSIFIED PROPERTIES, INC. DAVIDSON DIVERSIFIED REAL ESTATE II, L.P. DAVIDSON GP, L.L.C. DAVIDSON GROWTH PLUS GP CORPORATION DAVIDSON GROWTH PLUS GP LIMITED PARTNERSHIP DAVIDSON GROWTH PLUS, L.P. DAVIDSON INCOME REAL ESTATE, L.P. DAVIDSON PROPERTIES, INC. DAWSON SPRINGS, LTD. DAYTON III CORPORATION DAYTON III-OXFORD ASSOCIATES LIMITED PARTNERSHIP DAYTONA VILLAGE, LTD DBL PROPERTIES CORPORATION DEERCROSS-OXFORD ASSOCIATES, L.P. DEL MORAL LIMITED PARTNERSHIP DELAVAN MATURE ADULT HOUSING, L.L.C. DELHAVEN MANOR, LTD. DELPHIA HOUSE ASSOCIATES DELTA SQUARE-OXFORD LIMITED PARTNERSHIP State Code AZ TX SC MA ID PA AL DE TN AL WA PA ME IL PA PA DE PA TN DE SC DE DE DE DE TN OH MD MD OH NY IN AZ WI MS PA MD Entity Name DELTA SQUARE-OXFORD, L.L.C. DENNY PLACE LIMITED PARTNERSHIP DESHLER APARTMENTS ASSOCIATES LIMITED PARTNERSHIP DFW RESIDENTIAL INVESTORS LIMITED PARTNERSHIP DILLON PLACE ASSOCIATES LIMITED PARTNERSHIP DIP LIMITED PARTNERSHIP DIP LIMITED PARTNERSHIP II DIVERSIFIED EQUITIES, LIMITED DIXON RIVER APARTMENTS, L.P. DORAL GARDEN ASSOCIATES DORAL LIMITED PARTNERSHIP DOUGLAS STREET LANDINGS, LTD. DOYLE ASSOCIATES LIMITED DIVIDEND HOUSING ASSOCIATION DREXEL BURNHAM LAMBERT REAL ESTATE ASSOCIATES II LIMITED PARTNERSHIP DUKE MANOR ASSOCIATES DUQUESNE ASSOCIATES NO. 1 EAST HAVEN REAL ESTATE ASSOCIATES LIMITED PARTNERSHIP EAST WINDSOR 255 LIMITED PARTNERSHIP EAST WINDSOR 255, INC. EASTGATE APARTMENTS, A LIMITED PARTNERSHIP EASTRIDGE APARTMENTS A LIMITED PARTNERSHIP EASTRIDGE ASSOCIATES ECO VILLAGE, LTD EDGEWOOD ASSOCIATES EDGEWOOD HOUSING ASSOCIATES, L.P. EDGEWOOD, A LIMITED PARTNERSHIP EL CAZADOR LIMITED PARTNERSHIP EL CORONADO APTS., LTD. ELDERLY DEVELOPMENT WESTMINSTER, A CALIFORNIA LIMITED PARTNERSHIP ELKHART TOWN AND COUNTRY LIMITED PARTNERSHIP ELM GREEN APARTMENTS LIMITED PARTNERSHIP ELMS COMMON ASSOCIATES EMPORIA LIMITED ENGLISH MANOR JOINT VENTURE EUSTIS APARTMENTS, LTD. EVANGELINE VILLAGE APARTMENTS A LOUISIANA PARTNERSHIP IN COMMENDAM EVANSVILLE SENIOR HOUSING LIMITED PARTNERSHIP State Code MD CA NY DE CT VA VA TN IL PA PA TX MI NY PA PA MA DE DE IA PA PA OH WA GA AR CA TX CA IN NC CT VA TX FL LA WI Entity Name EVEREST INVESTORS 5, LLC EVEREST WINGFIELD, L.P. EVERETT SQUARE PLAZA ASSOCIATES EVERGREEN CLUB LIMITED PARTNERSHIP FAIR OAK ESTATES, LTD. FAIRBURN AND GORDON ASSOCIATES II LIMITED PARTNERSHIP FAIRBURN AND GORDON ASSOCIATES LIMITED PARTNERSHIP FAIRLANE EAST, LLC FAIRLAWN GREEN ACQUISITION, L.P. FAIRMONT HILLS APARTMENTS LIMITED PARTNERSHIP FAIRWIND ASSOCIATES, LTD. FAIRWOOD ASSOCIATES FARMINGDALE-OXFORD ASSOCIATES LIMITED PARTNERSHIP FERNWOOD LTD., LIMITED PARTNERSHIP FILLMORE PLACE APARTMENTS LIMITED PARTNERSHIP FINLAY INTERESTS 2, LTD. FINLAY INTERESTS MT 2, LTD. FIRST ALEXANDRIA ASSOCIATES LIMITED PARTNERSHIP FIRST WINTHROP CORPORATION FISH CREEK PLAZA, LTD FISHERMAN’S LANDING APARTMENTS LIMITED PARTNERSHIP FISHERMAN’S LANDING JV GP, LLC FISHERMAN’S LANDING JV, L.P. FISHERMAN’S VILLAGE-OXFORD ASSOCIATES, L.P. FISHERMAN’S WHARF PARTNERS, A TEXAS LIMITED PARTNERSHIP FISHWIND CORPORATION FMI LIMITED PARTNERSHIP FOOTHILL CHIMNEY ASSOCIATES LIMITED PARTNERSHIP FOREST GARDENS ASSOCIATES, A MARYLAND LIMITED PARTNERSHIP FOREST PARK SOUTH, LTD. FOUNTAIN PLACE PRESERVATION, L.P. FOUR QUARTERS HABITAT APARTMENTS ASSOCIATES, LTD. FOURTH STREET APARTMENT INVESTORS, A CALIFORNIA LIMITED PARTNERSHIP FOX ASSOCIATES ‘84 FOX CAPITAL MANAGEMENT CORPORATION FOX PARTNERS FOX PARTNERS II State Code CA KS MA MA FL GA GA DE KS WV WA CA IL MA AZ FL FL VA DE OH FL DE DE IN TX MD PA GA MD FL DE FL CA CA CA CA CA Entity Name FOX PARTNERS III FOX PARTNERS IV FOX PARTNERS VIII FOX REALTY INVESTORS FOX RIDGE ASSOCIATES FOX RUN APARTMENTS, LTD. FOX STRATEGIC HOUSING INCOME PARTNERS, A CALIFORNIA LIMITED PARTNERSHIP FOX VALLEY TWO-OXFORD LIMITED PARTNERSHIP FOX VALLEY-OXFORD LIMITED PARTNERSHIP FOXFIRE LIMITED DIVIDEND HOUSING ASSOCIATION FRANKLIN CHANDLER ASSOCIATES FRANKLIN EAGLE ROCK ASSOCIATES FRANKLIN NEW YORK AVENUE ASSOCIATES FRANKLIN PARK LIMITED PARTNERSHIP FRANKLIN PHEASANT RIDGE ASSOCIATES FRANKLIN SQUARE SCHOOL ASSOCIATES LIMITED PARTNERSHIP FRANKLIN WOODS ASSOCIATES FRANKLIN WOODS LTD FREEMAN EQUITIES, LIMITED FRIENDSET HOUSING COMPANY LIMITED PARTNERSHIP FRIENDSHIP VILLAGE LIMITED PARTNERSHIP FRIO HOUSING, LTD. FRP LIMITED PARTNERSHIP GADSDEN TOWERS, LTD. GALLATIN ASSOCIATES GALLERIA PARK ASSOCIATES LIMITED PARTNERSHIP GARDEN COURT ASSOCIATES GATE MANOR APARTMENTS, LTD., A TENNESSEE LIMITED PARTNERSHIP GATEWAY-OXFORD ASSOCIATES LIMITED PARTNERSHIP GC SOUTHEAST PARTNERS, L.P. GEORGETOWN 20Y APARTMENTS, L.L.C. GEORGETOWN MANAGEMENT, INC. GEORGETOWN WOODS LAND DEVELOPMENT, LP GEORGETOWN WOODS SENIOR APARTMENTS, L.P. GERMANTOWN, A LIMITED PARTNERSHIP GIFFORD GROVES, LTD. GLENARK ASSOCIATES LIMITED PARTNERSHIP State Code CA CA CA CA WV TX CA MD MD MI PA PA PA PA PA MD PA OH TN NY VA TX PA AL PA MA CA TN MD DE DE CA IN IN AR FL RI Entity Name GLENBROOK LIMITED PARTNERSHIP GLENDALE TERRACE LIMITED PARTNERSHIP GOLDEN OAK VILLAGE LIMITED PARTNERSHIP GOLER METROPOLITAN APARTMENTS LIMITED PARTNERSHIP GOOSE HOLLOW VILLAGE LIMITED PARTNERSHIP GOTHAM APARTMENTS, LIMITED PARTNERSHIP GP REAL ESTATE SERVICES II INC. GP SERVICES II, INC. GP SERVICES XV, INC. GP-OP PROPERTY MANAGEMENT, LLC GRAND MEADOWS II LIMITED DIVIDEND HOUSING ASSOCIATION LIMITEDPARTNERSHIP GRAND PLAZA PRESERVATION GP, LLC GRAND PLAZA PRESERVATION, L.P. GRANDVIEW PLACE LIMITED PARTNERSHIP GRANITE HEIGHTS, L.P. GRANT-KO ENTERPRISES A LIMITED PARTNERSHIP GREATER HARTFORD ASSOCIATES LIMITED PARTNERSHIP GREATER MESA PROPERTY ASSOCIATES LIMITED PARTNERSHIP GREENBRIAR PRESERVATION, L.P. GREENBRIAR-OXFORD ASSOCIATES L.P. GREENFAIR TOWER II CALIFORNIA LIMITED PARTNERSHIP, A CALIFORNIA LIMITED PARTNERSHIP GREENFAIR-DCW CALIFORNIA LIMITED PARTNERSHIP, A CALIFORNIA LIMITED PARTNERSHIP GREEN-KO ENTERPRISES OF BARNEVELD, WISCONSIN A LIMITED PARTNERSHIP GREENTREE ASSOCIATES GREENWOOD VILLA APARTMENTS, LTD. GRIMES PARK APARTMENTS, LIMITED PARTNERSHIP GRINNELL PARK APARTMENTS, LIMITED PARTNERSHIP GROVE PARK VILLAS, LTD. GSSW-REO DALLAS, L.P. GSSW-REO PEBBLE CREEK, L.P. GSSW-REO TIMBERLINE LIMITED PARTNERSHIP GULF COAST HOLDINGS, LTD. GULF COAST PARTNERS, LTD. GULFPORT ASSOCIATES GWYNED PARTNERS LIMITED PARTNERSHIP HALLS MILL, LTD. HAMLIN ESTATES LIMITED PARTNERSHIP State Code MA SC IN NC OR MO DE SC SC DE MI DE CA MT TN WI CT AZ DE IN CA CA WI IL KY IA IA FL TX TX TX AL CA WA PA AL CA Entity Name HAMMOND HOUSING 1994 PARTNERS, A LOUISIANA PARTNERSHIP IN COMMENDAM HAMPSHIRE HOUSE APARTMENTS, LTD. HARDIN HAMMOCK ESTATES ASSOCIATES, LTD. HAROLD APARTMENTS ASSOCIATES LIMITED PARTNERSHIP HARRIS PARK LIMITED PARTNERSHIP HARRISON SQUARE LIMITED PARTNERSHIP HATILLO HOUSING ASSOCIATES HAWTHORN VILLAGE I, L.P. HC/OAC, L.L.C. HCW GENERAL PARTNER, LIMITED PARTNERSHIP HCW PENSION REAL ESTATE FUND LIMITED PARTNERSHIP HEARTLAND PARK ELDERLY LIVING CENTER, L.P. HEATHERWOOD-REO, L.P. HEMET ESTATES AFFORDABLE, L.P. HENNA TOWNHOMES, LTD. HENRIETTA-OXFORD ASSOCIATES LIMITED PARTNERSHIP, A MARYLAND LIMITED PARTNERSHIP HERITAGE EAGLE VILLAS, LTD. HERITAGE FOREST GROVE, LTD. HERITAGE HOLLYBROOK, LTD. HERITAGE PARK II INC. HERITAGE PARK INVESTORS, INC. HERITAGE PHOENIX, LTD. HERITAGE VILLAGE BLACKSHEAR, L.P. HERITAGE WILLOW GLEN, LTD. HHP L.P. HICKORY HEIGHTS APARTMENTS, A LIMITED PARTNERSHIP HICKORY HILL TOWNHOMES, LTD. HICKORY RIDGE ASSOCIATES, LTD. HIGHLANDS VILLAGE II, LTD. HIGHLAWN PLACE LIMITED PARTNERSHIP HILLCREST APARTMENTS L.L.C. HILLSBOROUGH-OXFORD ASSOCIATES LIMITED PARTNERSHIP HILLSIDE VILLAGE ASSOCIATES HILLTOP APARTMENTS ASSOCIATES HILLTOP APARTMENTS, PHASE II LIMITED PARTNERSHIP HILLTOP APARTMENTS, PHASE I LIMITED PARTNERSHIP HIMBOLA MANOR — PARTNERSHIP SERVICES, INC. LTD., A PARTNERSHIP State Code LA OH FL NY NY CT MA MO MD TX MA IL TX CA TX MD CO TX FL DE CA FL GA TX DE SC KY FL FL WV OH MD PA PA MO MO LA Entity Name HINTON HOUSE ASSOCIATES LIMITED PARTNERSHIP HISTORIC PROPERTIES INC. HIVIEW GARDENS DEVELOPMENT COMPANY HMI PROPERTY MANAGEMENT (ARIZONA), INC. HOLLIDAY ASSOCIATES LIMITED PARTNERSHIP HOLLIDAYSBURG LIMITED PARTNERSHIP HOLLOWS ASSOCIATES LIMITED PARTNERSHIP HOLLY POINT ASSOCIATES, A KENTUCKY LIMITED PARTNERSHIP HOMECORP INVESTMENTS, LTD. HOPKINS VILLAGE PRESERVATION LIMITED PARTNERSHIP HOUSING ASSISTANCE OF MT. DORA, LTD. HOUSING ASSISTANCE OF ORANGE CITY, LTD. HOUSING ASSISTANCE OF SEBRING, LTD. HOUSING ASSISTANCE OF VERO BEACH, LTD. HOUSING ASSOCIATES LIMITED HOUSING PROGRAMS CORPORATION II HOUSING PROGRAMS LIMITED, A CALIFORNIA LIMITED PARTNERSHIP HOUSING TECHNOLOGY ASSOCIATES HUDSON STREET APARTMENTS LIMITED PARTNERSHIP HUDSON TERRACE ASSOCIATES LIMITED PARTNERSHIP HUMMELSTOWN HOUSING ASSOCIATES HUNT CLUB PARTNERS, L.L.C. HUNTERS GLEN AP XII LIMITED PARTNERSHIP HUNTERS GLEN PHASE V GP, L.L.C. HUNTINGTON HACIENDA ASSOCIATES, A CALIFORNIA LIMITED PARTNERSHIP HUNTSVILLE PROPERTIES LIMITED PARTNERSHIP HURBELL IV LTD. HYATTSVILLE HOUSING ASSOCIATES LIMITED PARTNERSHIP HYDE PARK APARTMENTS LIMITED PARTNERSHIP IDA TOWER IH, INC. INDIO GARDENS AFFORDABLE, L.P. INGRAM SQUARE APARTMENTS, LTD. INGRAM SQUARE PRESERVATION, L.P. INTEGRATED PROPERTIES, INC. INTOWN WEST ASSOCIATES LIMITED PARTNERSHIP INWOOD COLONY, LTD. State Code WV DE PA AZ DC PA NY KY AL DE FL FL FL FL CA DE CA HI CA NY PA MD SC SC CA GA AL MD MO PA DE CA TX TX RI CT TX Entity Name IPGP, INC. IPLP ACQUISITION I LLC IPT I LLC IRONMAN HOUSING ASSOCIATION ISTC CORPORATION IVYWOOD APARTMENTS LIMITED PARNTERSHIP J M PROPERTY INVESTORS 1984, L.P. J M PROPERTY INVESTORS 1985, L.P. JACARANDA-OXFORD LIMITED PARTNERSHIP JACARANDA-OXFORD, L.L.C. JACOB’S LANDING, L.P. JACQUES-MILLER ASSOCIATES JAMES COURT ASSOCIATES JAMES-OXFORD LIMITED PARTNERSHIP JAMESTOWN TERRACE LIMITED PARTNERSHIP, A CALIFORNIA LIMITED PARTNERSHIP JAMESTOWN VILLAGE ASSOCIATES JARDINES DE MAYAGUEZ LIMITED PARTNERSHIP JASPER COUNTY PROPERTIES, LTD. JEFFERSON MEADOWS LIMITED DIVIDEND HOUSING ASSOCIATION LIMITEDPARTNERSHIP JENNY LIND HALL SECOND LIMITED PARTNERSHIP, A CALIFORNIA LIMITED PARTNERSHIP JFK ASSOCIATES LIMITED PARTNERSHIP JMA EQUITIES, L.P. JUPITER-I, L.P. JUPITER-II, L.P. KENDALL TOWNHOME INVESTORS, LTD. KENNEDY BOULEVARD ASSOCIATES KENNEDY BOULEVARD ASSOCIATES II, L.P. KENNEDY BOULEVARD ASSOCIATES III, L.P. KENNEDY BOULEVARD ASSOCIATES IV, L.P. KENOSHA GARDENS ASSOCIATES LIMITED PARTNERSHIP OF WISCONSIN KENTON DEVELOPMENT CO. KENTON VILLAGE, LTD. KENTUCKY MANOR APARTMENTS, LTD. KENTUCKY RIVER APARTMENTS, LTD. KENYON HOUSE CO. KING-BELL ASSOCIATES LIMITED PARTNERSHIP KINGS ROW ASSOCIATES State Code DE DE DE OK DE OH DE DE MD MD MO TN ID MD CA PA MD MS MI CA NC DE DE DE FL PA PA PA PA WI MO OH KY KY WA OR NJ Entity Name KINGSTON GREENE ASSOCIATES LTD KINSEY-OXFORD ASSOCIATES, L.P. KIRKMAN-OXFORD ASSOCIATES LIMITED PARTNERSHIP KIRKWOOD HOUSE PRESERVATION LIMITED PARTNERSHIP KIWANIS MANOR, L.P. KOHLER GARDENS APARTMENTS KONA PLUS ASSOCIATES LIMITED PARTNERSHIP L.M. ASSOCIATES LIMITED PARTNERSHIP LA BROADCAST CENTER GP LLC LA BROADCAST CENTER QRS INC. LA CANYON TERRACE GP LLC LA CANYON TERRACE LP LA CANYON TERRACE QRS INC. LA CREEKSIDE GP LLC LA CREEKSIDE LP LA CREEKSIDE QRS INC. LA CRESCENT GARDENS GP LLC LA CRESCENT GARDENS LP LA CRESCENT GARDENS QRS INC. LA HILLCRESTE APARTMENTS LLC LA HILLCRESTE GP LLC LA HILLCRESTE LP LA HILLCRESTE MEZZANINE MEMBER LLC LA HILLCRESTE QRS INC. LA INDIAN OAKS GP LLC LA INDIAN OAKS LP LA INDIAN OAKS QRS INC. LA LAKES GP LLC LA LAKES LP LA LAKES QRS INC. LA MALIBU CANYON GP LLC LA MALIBU CANYON LP LA MALIBU CANYON QRS INC. LA MORADA ASSOCIATES LIMITED PARTNERSHIP LA PARK LA BREA A LLC LA PARK LA BREA B LLC LA PARK LA BREA C LLC State Code OH OH MD DE IL CA WA OH DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DE DC DE DE DE Entity Name LA PARK LA BREA LLC LA SALLE PRESERVATION, L.P. LA VISTA PRESERVATION, L.P. LAC PROPERTIES GP I LIMITED PARTNERSHIP LAC PROPERTIES GP I LLC LAC PROPERTIES GP II LIMITED PARTNERSHIP LAC PROPERTIES GP III LIMITED PARTNERSHIP LAC PROPERTIES OPERATING PARTNERSHIP, L.P. LAC PROPERTIES QRS II INC. LAC PROPERTIES QRS III INC. LAC PROPERTIES SUB LLC LAFAYETTE LIMITED PARTNERSHIP LAFAYETTE MANOR ASSOCIATES LIMITED PARTNERSHIP LAFAYETTE SQUARE ASSOCIATES LAFAYETTE TERRACE ASSOCIATES LAFAYETTE TOWNE ELDERLY LIMITED PARTNERSHIP LAKE AVENUE ASSOCIATES L.P. LAKE CASTLETON II, L.P LAKE FOREST APARTMENTS LAKE HAVASU ASSOCIATES LIMITED PARTNERSHIP LAKE JUNE VILLAGE II LIMITED PARTNERSHIP LAKE RIDGE-OXFORD ASSOCIATES LIMITED PARTNERSHIP LAKE TOWERS ASSOCIATES II LIMITED PARTNERSHIP LAKE WALES VILLAS, LTD. LAKERIDGE-ISLAND CLUB APARTMENTS PARTNERS, L.P. LAKESIDE APARTMENTS LIMITED LAKESIDE APARTMENTS, A LIMITED PARTNERSHIP LAKESIDE AT VININGS, LLC LAKESIDE NORTH, L.L.C. LAKEVIEW ARMS ASSOCIATES LIMITED PARTNERSHIP LAKEVIEW VILLAS, LTD. LAKEWOOD AOPL, A TEXAS LIMITED PARTNERSHIP LAKEWOOD AOPL, INC. LANCASTER HEIGHTS MANAGEMENT CORP. LANDAU APARTMENTS LIMITED PARTNERSHIP LANDMARK (NC), LLC LANDMARK APARTMENTS ASSOCIATES State Code DE CA CA DE DE DE DE DE DE DE DE IL VA TN IL MO OH TX PA AZ TX MD IL FL DE FL IN DE MD NY FL TX TX CA SC DE IL Entity Name LANDMARK ASSOCIATES LANTANA-OXFORD ASSOCIATES LIMITED PARTNERSHIP LARGO PARTNERS, L.L.C. LARGO/OAC, L.L.C. LAS MONTANAS VILLAGE LIMITED PARTNERSHIP LAS PALOMAS VILLAGE LIMITED PARTNERSHIP LASALLE APARTMENTS, L.P. LAUDERDALE TOWERS-REO, LIMITED PARTNERSHIP LAWNDALE SQUARE-REO LIMITED PARTNERSHIP LAZY HOLLOW PARTNERS LEE-HY MANOR ASSOCIATES LIMITED PARTNERSHIP LEMAY VILLAGE LIMITED PARTNERSHIP LEWISBURG ASSOCIATES LIMITED PARTNERSHIP LEWISBURG ELDERLY ASSOCIATES LEXINGTON-OXFORD ASSOCIATES L.P. LEYDEN LIMITED PARTNERSHIP LIBERTY TOWERS ASSOCIATES II L.P. LIMA-OXFORD ASSOCIATES, L.P. LINCOLN MARINERS ASSOCIATES LIMITED LINCOLN PROPERTY COMPANY NO. 409, LTD. LINDEN COURT ASSOCIATES LIMITED PARTNERSHIP LIVINGSTON HOUSING 1994 PARTNERS, A LOUISIANA PARTNERSHIP IN COMMENDAM LOCK HAVEN ELDERLY ASSOCIATES LOCK HAVEN GARDENS ASSOCIATES LOCUST HOUSE ASSOCIATES LIMITED PARTNERSHIP LONE OAK APARTMENTS, LTD. LONE STAR PROPERTIES LIMITED PARTNERSHIP LONG MEADOW LIMITED PARTNERSHIP LORELEI ASSOCIATES LIMITED PARTNERSHIP LORING TOWERS PRESERVATION LIMITED PARTNERSHIP LORING TOWERS SALEM PRESERVATION LIMITED PARTNERSHIP LOUIS JOLIET APARTMENTS MT, L.P. LOUIS JOLIET APARTMENTS, L.P. LUND-HILL ASSOCIATES LIMITED PARTNERSHIP LYNN-OXFORD ASSOCIATES LIMITED PARTNERSHIP M & P DEVELOPMENT COMPANY MADISON PARK III ASSOCIATES State Code ID MD MD MD AZ AZ CA TX TX CA VA MO WV PA IN MA IL IN CA CA NY LA PA PA MD KY TX SC DC DE MA IL IL WI MD PA MA Entity Name MADISON RIVER PROPERTIES, L.L.C. MADISON TERRACE ASSOCIATES MADISONVILLE, LTD. MAE — SPI, L.P. MAE DELTA, INC. MAE INVESTMENTS, INC. MAE JMA, INC. MAERIL, INC. MALLARDS OF WEDGEWOOD LIMITED PARTNERSHIP MANDARIN TRACE APARTMENTS, LTD. MANGONIA RESIDENCE I, LTD. MANNA CREST HOMES LIMITED PARTNERSHIP MANOR GREEN LIMITED PARTNERSHIP MAPLE HILL ASSOCIATES MAQUOKETA HOUSING, L.P. MARINA DEL REY LIMITED DIVIDEND PARTNERSHIP ASSOCIATES MARINETTE WOODS APARTMENTS ASSOCIATES LIMITED PARTNERSHIP MARKET VENTURES, L.L.C. MARSHALL PLAZA APARTMENTS, LTD.-PHASE I MARSHALL PLAZA APARTMENTS, LTD.-PHASE II MARTINEZ PARK VILLAS, LTD. MASHPEE UNITED CHURCH VILLAGE PARTNERSHIP MAUNAKEA PALMS LIMITED PARTNERSHIP MAUNAKEA PALMS, INC. MAYER BEVERLY PARK LIMITED PARTNERSHIP MB APARTMENTS LIMITED PARTNERSHIP MCZ/CENTRUM FLAMINGO II, L.L.C. MCZ/CENTRUM FLAMINGO III, L.L.C. MEADOW LAKE PHASE II, A LIMITED PARTNERSHIP MEADOW LAKE, A LIMITED PARTNERSHIP MEADOW LANE MEADOW VIEW ASSOCIATES L.P. MEADOWS LIMITED PARTNERSHIP MEADOWS RUN LIMITED PARTNERSHIP MECKLENBURG MILL ASSOCIATES, LIMITED PARTNERSHIP MEGAN MANOR, LIMITED PARTNERSHIP MELBOURNE-OXFORD ASSOCIATES LIMITED PARTNERSHIP State Code DE IL OH DE DE DE DE DE WA FL FL OH WA PA IA MA WI DE OH OH CO MA HI HI CA IL DE DE AR AR WA IL IL CO NC AL MD Entity Name MELBOURNE-OXFORD CORPORATION MERCER PARTNERS, LP MERIDIAN-REO, L.P. MESA BROADWAY PROPERTY LIMITED PARTNERSHIP MESA VALLEY HOUSING ASSOCIATES II LIMITED PARTNERSHIP MESA VALLEY HOUSING ASSOCIATES LIMITED PARTNERSHIP METROPOLITAN PLAZA LP, LLC MHO PARTNERS, LIMITED MIAMI ELDERLY ASSOCIATES LIMITED PARTNERSHIP MICHIGAN BEACH LIMITED PARTNERSHIP MIDDLETOWN-OXFORD LIMITED PARTNERSHIP MIDPARK DEVELOPMENT CO. MIDTOWN MESA LIMITED PARTERSHIP MIDTOWN PLAZA ASSOCIATES MINNEAPOLIS ASSOCIATES II LIMITED PARTNERSHIP MINNEAPOLIS ASSOCIATES LIMITED PARTNERSHIP MIRAMAR HOUSING ASSOCIATES LIMITED PARTNERSHIP MOHAVE PARTNERS, L.P. MONROE CORPORATION MONROE COUNTY APTS. 2 & 3 L.P. MONROE-OXFORD ASSOCIATES LIMITED PARTNERSHIP MONTBLANC GARDEN APARTMENTS ASSOCIATES MONTICELLO MANAGEMENT I, L.L.C. MONTICELLO MANOR, LTD. MORNINGSIDE HOUSING PHASE B ASSOCIATES LIMITED PARTNERSHIP MORNINGSTAR SENIOR CITIZEN URBAN RENEWAL HOUSING GROUP, L.P. MORRISANIA TOWERS HOUSING COMPANY LIMITED PARTNERSHIP MORTON TOWERS APARTMENTS, L.P. MORTON TOWERS HEALTH CLUB, LLC MOSS GARDENS LTD., A PARTNERSHIP IN COMMENDAM MOUNT CARROLL APARTMENTS LIMITED PARTNERSHIP MOUNT UNION APARTMENTS, LTD. MRR LIMITED PARTNERSHIP MULBERRY ASSOCIATES MUSCATINE HOUSING, L.P. NAPICO HOUSING CREDIT COMPANY-XI.A, LLC NAPICO HOUSING CREDIT COMPANY-XI.B, LLC State Code MD NJ TX AZ AZ AZ DE FL OH IL MD OH AZ WA MA MD DC OH MD IL MD MA DE TX NY NJ NY DE DE LA IL OH IL PA IA DE DE Entity Name NAPICO HOUSING CREDIT COMPANY-XI.C, LLC NAPICO HOUSING CREDIT COMPANY-XI.D, LLC NAPLES-OXFORD LIMITED PARTNERSHIP NAPLES-OXFORD, L.L.C. NASHUA-OXFORD-BAY ASSOCIATES LIMITED PARTNERSHIP NATIONAL BOSTON LOFTS ASSOCIATES, LLLP NATIONAL CORPORATE TAX CREDIT FUND II, A CALIFORNIA LIMITED PARTNERSHIP NATIONAL CORPORATE TAX CREDIT FUND III, A CALIFORNIA LIMITED PARTNERSHIP NATIONAL CORPORATE TAX CREDIT FUND IV, A CALIFORNIA LIMITED PARTNERSHIP NATIONAL CORPORATE TAX CREDIT FUND IX, A CALIFORNIA LIMITED PARTNERSHIP NATIONAL CORPORATE TAX CREDIT FUND V, A CALIFORNIA LIMITED PARTNERSHIP NATIONAL CORPORATE TAX CREDIT FUND VI, A CALIFORNIA LIMITED PARTNERSHIP NATIONAL CORPORATE TAX CREDIT FUND VII, A CALIFORNIA LIMITED PARTNERSHIP NATIONAL CORPORATE TAX CREDIT FUND VIII, A CALIFORNIA LIMITED PARTNERSHIP NATIONAL CORPORATE TAX CREDIT FUND X, A CALIFORNIA LIMITED PARTNERSHIP NATIONAL CORPORATE TAX CREDIT FUND XI, A CALIFORNIA LIMITED PARTNERSHIP NATIONAL CORPORATE TAX CREDIT FUND XII, A CALIFORNIA LIMITED PARTNERSHIP NATIONAL CORPORATE TAX CREDIT FUND XIII, A CALIFORNIA LIMITED PARTNERSHIP NATIONAL CORPORATE TAX CREDIT FUND, A CALIFORNIA LIMITED PARTNERSHIP NATIONAL CORPORATE TAX CREDIT, INC. NATIONAL CORPORATE TAX CREDIT, INC. II NATIONAL CORPORATE TAX CREDIT, INC. III NATIONAL CORPORATE TAX CREDIT, INC. IV NATIONAL CORPORATE TAX CREDIT, INC. IX NATIONAL CORPORATE TAX CREDIT, INC. OF PENNSYLVANIA NATIONAL CORPORATE TAX CREDIT, INC. VI NATIONAL CORPORATE TAX CREDIT, INC. VII NATIONAL CORPORATE TAX CREDIT, INC. VIII NATIONAL CORPORATE TAX CREDIT, INC. X NATIONAL CORPORATE TAX CREDIT, INC. XI NATIONAL CORPORATE TAX CREDIT, INC. XII NATIONAL CORPORATE TAX CREDIT, INC. XIII NATIONAL CORPORATE TAX CREDIT, INC. XIV NATIONAL CORPORATION FOR HOUSING PARTNERSHIPS NATIONAL HOUSING PARTNERSHIP REALTY FUND I, A MARYLAND LIMITED PARTNERSHIP NATIONAL HOUSING PARTNERSHIP RESI ASSOCIATES I LIMITED PARTNERSHIP NATIONAL PARTNERSHIP CREDIT FACILITY CORP. State Code DE DE MD MD MD CO CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA CA PA CA CA CA CA CA CA CA CA DC MD DC CA Entity Name NATIONAL PARTNERSHIP INVESTMENTS ASSOCIATES II NATIONAL PARTNERSHIP INVESTMENTS CORP. NATIONAL PARTNERSHIP MANAGEMENT CORP. NATIONAL PROPERTY INVESTORS 4 NATIONAL PROPERTY INVESTORS 5 NATIONAL PROPERTY INVESTORS 6 NATIONAL PROPERTY INVESTORS 8, A CALIFORNIA LIMITED PARTNERSHIP NATIONAL PROPERTY INVESTORS III NATIONAL TAX CREDIT INVESTORS II, A CALIFORNIA LIMITED PARTNERSHIP NATIONAL TAX CREDIT MANAGEMENT CORP. I NATIONAL TAX CREDIT PARTNERS, L.P. NATIONAL TAX CREDIT, INC. NATIONAL TAX CREDIT, INC. II NBA, LTD. NEIGHBORHOOD REINVESTMENT RESOURCES CORPORATION NEIGHBORHOOD RESTORATIONS LIMITED PARTNERSHIP V NEVADA SUNRISE GARDENS, LIMITED PARTNERSHIP NEW BALTIMORE SENIOR PRESERVATION LIMITED PARTNERSHIP NEW CASTLE — OXFORD ASSOCIATES L.P. NEW HAVEN APARTMENTS, LIMITED PARTNERSHIP NEW HAVEN ASSOCIATES LIMITED PARTNERSHIP NEW SHELTER V LIMITED PARTNERSHIP NEW VISTAS APARTMENTS ASSOCIATES NEW-BEL-MO ENTERPRISES A LIMITED PARTNERSHIP NEWBERRY PARK PRESERVATION, L.P. NEWINGTON-OXFORD ASSOCIATES LIMITED PARTNERSHIP NEWPORT-AVONDALE, LLC NEWPORT-OXFORD ASSOCIATES LIMITED PARTNERSHIP NEWTON APARTMENTS, LTD. NHP A&R SERVICES, INC. NHP ACQUISITION CORPORATION NHP AFFORDABLE HOUSING PARTNERS, L.P. NHP COUNTRY GARDENS LIMITED PARTNERSHIP NHP COUNTRY GARDENS, INC. NHP MID-ATLANTIC PARTNERS ONE L.P. NHP MID-ATLANTIC PARTNERS TWO L.P. NHP MULTI-FAMILY CAPITAL CORPORATION State Code CA CA CA CA CA CA CA CA CA CA CA CA CA AL IL PA CA MI IN AL MA DE IL WI DE MD DE MD MS VA DE PA VA VA DE DE DC Entity Name NHP PARKWAY ASSOCIATES L.P. NHP PARKWAY L.P. NHP PARTNERS TWO LIMITED PARTNERSHIP NHP PUERTO RICO MANAGEMENT COMPANY NHP REAL ESTATE CORPORATION NHP WINDSOR CROSSING ASSOCIATES L.P. NHP WINDSOR CROSSING L.P. NHP-HDV EIGHTEEN, INC. NHP-HDV ELEVEN, INC. NHP-HDV FOUR, INC. NHP-HDV FOURTEEN, INC. NHP-HDV SEVENTEEN, INC. NHP-HDV TEN, INC. NHP-HDV TWELVE, INC. NHP-HG FOUR, INC. NHPMN MANAGEMENT, L.P. NHPMN MANAGEMENT, LLC NHPMN STATE MANAGEMENT, INC. NHPMN-GP, INC. NICHOLS TOWNEHOMES, LTD. NOBLE SENIOR HOUSING, L.P., A CALIFORNIA LIMITED PARTNERSHIP NORTH GATE-OXFORD ASSOCIATES LIMITED PARTNERSHIP NORTH LIBERTY PARK, LIMITED PARTNERSHIP NORTH OMAHA HOMES NORTH PARK ASSOCIATES LIMITED PARTNERSHIP NORTH WASHINGTON PARK ESTATES NORTH WOODS-OXFORD ASSOCIATES, L.P. NORTHERN STATES PROPERTIES LIMITED PARTNERSHIP NORTHPOINT PRESERVATION LIMITED PARTNERSHIP NORTHWESTERN PARTNERS, LTD. NORTHWIND FOREST LIMITED PARTNERSHIP NORTHWINDS APARTMENTS, L.P. NORWALK PARK APARTMENTS, LIMITED PARTNERSHIP NOVA ASSOCIATES LIMITED PARTNERSHIP NP BANK LOFTS ASSOCIATES, L.P. NPI EQUITY INVESTMENTS II, INC. NPI EQUITY INVESTMENTS, INC. State Code DE DE DE DE DE DE DE DE DE DE DE DE DE DE VA DE DE DE DE OH CA IN IA NE WV IL IN WA DE FL MI VA IA WA CO FL FL Entity Name NPIA III, A CALIFORNIA LIMITED PARTNERSHIP OAC INVESTMENT, INC. OAC L.L.C. OAC LIMITED PARTNERSHIP OAK FALLS CONDOMINIUMS JV, L.P. OAK FOREST ASSOCIATES LIMITED PARTNERSHIP OAK FOREST II ASSOCIATES LIMITED PARTNERSHIP OAK FOREST III ASSOCIATES OAK HILL APARTMENTS, LTD. OAK HOLLOW SOUTH ASSOCIATES OAK PARK-OXFORD ASSOCIATES LIMITED PARTNERSHIP OAK VIEW SPARTANBURG LIMITED PARTNERSHIP OAK WOODS ASSOCIATES OAKBROOK ACQUISITION, L.P. OAKLAND CITY WEST END ASSOCIATES LIMITED PARTNERSHIP OAKRIDGE PARK APARTMENTS, LTD. OAKRIDGE PARK APARTMENTS, PHASE II, LTD. OAKVIEW APARTMENTS LIMITED PARTNERSHIP OAKWOOD APARTMENTS, LIMITED PARTNERSHIP — PHASE I OAKWOOD APARTMENTS, LIMITED PARTNERSHIP — PHASE II OAKWOOD MANOR ASSOCIATES, LTD. OAKWOOD TRUST — PHASE I OAKWOOD TRUST — PHASE II OAMCO I, L.L.C. OAMCO II, L.L.C. OAMCO IV, L.L.C. OAMCO V, L.L.C. OAMCO VII, L.L.C. OAMCO X, L.L.C. OAMCO XI, L.L.C. OAMCO XII, L.L.C. OAMCO XIX, L.L.C. OAMCO XIX, L.P. OAMCO XV, L.L.C. OAMCO XVI, L.L.C. OAMCO XX, L.L.C. OAMCO XX, L.P. State Code CA MD MD MD TX OH OH OH PA PA MI SC IL MO GA MS MS AR OH OH TN OH OH DE DE DE DE DE DE DE DE DE DE DE DE DE DE Entity Name OAMCO XXII, L.L.C. OAMCO XXIII, L.L.C. OAMCO XXVIII LIMITED PARTNERSHIP OCALA PLACE, LTD. O’DEA INVESTMENT COMPANY OFA PARTNERS OHA ASSOCIATES OLD FARM ASSOCIATES OLD FINANCIAL DISTRICT LIMITED PARTNERSHIP ONE LINWOOD ASSOCIATES, LTD. ONE LYTLE PLACE APARTMENTS PARTNERS, L.P. ONE MADISON AVENUE ASSOCIATES, L.P. ONE WEST CONWAY ASSOCIATES LIMITED PARTNERSHIP OP PROPERTY MANAGEMENT, L.P. OP PROPERTY MANAGEMENT, LLC OPPORTUNITY ASSOCIATES 1991 L.P. OPPORTUNITY ASSOCIATES 1994, L.P. ORANGE CITY VILLAS II, LTD. ORANGE VILLAGE ASSOCIATES ORLEANS GARDENS, A LIMITED PARTNERSHIP OROCOVIX LIMITED DIVIDEND PARTNERSHIP, A LIMITED PARTNERSHIP ORP ACQUISITION PARTNERS LIMITED PARTNERSHIP ORP ACQUISITION, INC. ORP CORPORATION I ORP I ASSIGNOR CORPORATION ORP ONE L.L.C. OSHTEMO LIMITED DIVIDEND HOUSING ASSOCIATION OTEF II ASSOCIATES LIMITED PARTNERSHIP OVERBROOK PARK, LTD. OXFORD APARTMENT COMPANY, INC. OXFORD ASSOCIATES ‘76 LIMITED PARTNERSHIP OXFORD ASSOCIATES ‘77 LIMITED PARTNERSHIP OXFORD ASSOCIATES ‘78 LIMITED PARTNERSHIP OXFORD ASSOCIATES ‘79 LIMITED PARTNERSHIP OXFORD ASSOCIATES ‘80 LIMITED PARTNERSHIP OXFORD ASSOCIATES ‘81 LIMITED PARTNERSHIP OXFORD ASSOCIATES ‘82 LIMITED PARTNERSHIP State Code DE DE MD FL CA PA IL PA CA DC DE ME MD DE DE IN IN FL PA SC CA MD MD MD MD MD MI MD OH MD IN IN IN IN IN IN IN Entity Name OXFORD ASSOCIATES ‘83 LIMITED PARTNERSHIP OXFORD ASSOCIATES ‘84 LIMITED PARTNERSHIP OXFORD ASSOCIATES ‘85 LIMITED PARTNERSHIP OXFORD BETHESDA I LIMITED PARTNERSHIP OXFORD BETHESDA II LIMITED PARTNERSHIP OXFORD CORPORATION OXFORD DEVELOPMENT CORPORATION OXFORD DEVELOPMENT ENTERPRISES INC. OXFORD EQUITIES CORPORATION OXFORD EQUITIES CORPORATION II OXFORD EQUITIES CORPORATION III OXFORD FUND I LIMITED PARTNERSHIP OXFORD HOLDING CORPORATION OXFORD HOUSE PRESERVATION, L.P. OXFORD INVESTMENT CORPORATION OXFORD INVESTMENT II CORPORATION OXFORD MANAGEMENT COMPANY INC OXFORD MANAGERS I LIMITED PARTNERSHIP OXFORD NATIONAL PROPERTIES CORPORATION OXFORD PARTNERS I LIMITED PARTNERSHIP OXFORD PARTNERS V LIMITED PARTNERSHIP OXFORD PARTNERS X, L.L.C. OXFORD REALTY FINANCIAL GROUP, INC. OXFORD RESIDENTIAL PROPERTIES I CORPORATION OXFORD RESIDENTIAL PROPERTIES I LIMITED PARTNERSHIP OXFORD TAX EXEMPT FUND II CORPORATION OXFORD TAX EXEMPT FUND II LIMITED PARTNERSHIP OXFORD-COLUMBIA ASSOCIATES, A MARYLAND LIMITED PARTNERSHIP OXPARC 1994, L.L.C. OXPARC 1995, L.L.C. OXPARC 1996, L.L.C. OXPARC 1997, L.L.C. OXPARC 1998, L.L.C. OXPARC 1999, L.L.C. OXPARC 2000, L.L.C. P&R INVESTMENT SERVICES PACHUTA, LTD. State Code IN MD MD MD MD IN IN IN IN DE DE MD MD DE MD MD IN MD MD IN MD MD MD MD DE MD MD MD MD MD MD MD MD MD MD WA MS Entity Name PACIFIC COAST PLAZA PACIFIC PLACE APARTMENTS, L.P. PALACE VIEW HOUSING LIMITED PARTNERSHIP PALM AIRE-ISLAND CLUB APARTMENTS PARTNERS, L.P. PALM BEACH-OXFORD LIMITED PARTNERSHIP PALM SPRINGS SENIOR AFFORDABLE, L.P. PALM SPRINGS SENIOR CITIZENS COMPLEX LIMITED PARTNERSHIP PALM SPRINGS VIEW APARTMENTS, LTD., A CALIFORNIA LIMITED PARTNERSHIP PALMETTO APARTMENTS, A LIMITED PARTNERSHIP PAMPA PARTNERSHIP LIMITED PANORAMA PARK APARTMENTS LIMITED PARTNERSHIP PANORAMA PARK PRESERVATION, L.P. PAP PARTNERSHIP, L.P. PARADISE PALMS MULTI-HOUSING LIMITED PARTNERSHIP PARADISE PALMS SENIOR HOUSING LIMITED PARTNERSHIP PARC CHATEAU SECTION I ASSOCIATES L.P. PARC CHATEAU SECTION II ASSOCIATES (L.P.) PARK ACQUISITION, L.P. PARK ASSOCIATES, L.P. PARK CREST, LTD. PARK LA BREA ACQUISITION, LLC PARK LANE ASSOCIATES LIMITED PARTNERSHIP PARK MANOR, OREG. LTD. PARK NORTH-OXFORD ASSOCIATES, A MARYLAND LIMITED PARTNERSHIP PARK PLACE ASSOCIATES PARK PLACE PRESERVATION, L.P. PARK TOWNE PLACE ASSOCIATES LIMITED PARTNERSHIP PARK VISTA MANAGEMENT, INC. PARK VISTA, LTD., A CALIFORNIA LIMITED PARTNERSHIP PARKVIEW AFFORDABLE, L.P. PARKVIEW APARTMENTS, A LIMITED PARTNERSHIP PARKVIEW ARMS ASSOCIATES I LIMITED PARTNERSHIP PARKVIEW ARMS ASSOCIATES II LIMITED PARTNERSHIP PARKVIEW ASSOCIATES LIMITED PARTNERSHIP PARKVIEW ASSOCIATES LIMITED PARTNERSHIP PARKVIEW DEVELOPMENT CO. PARKWAYS PRESERVATION, L.P. State Code CA MO CT DE MD CA CA CA SC TX CA CA PA AZ AZ GA GA KS MO FL DE AZ OR MD NJ MO DE CA CA CA SC OH OH CA NY MN DE Entity Name PARTNERSHIP18, L.P. PARTNERSHIP FOR HOUSING LIMITED PATEE VILLAS I, L.P. PAVILION ASSOCIATES PAVILION PRESERVATION, L.P. PEAK AT VININGS, LLC PEBBLE POINT CORPORATION PEBBLE POINT-OXFORD ASSOCIATES, L.P. PENNSYLVANIA ASSOCIATES LIMITED PARTNERSHIP PENNSYLVANIA HOUSING PARTNERS PENVIEW ASSOCIATES, L.P. PEPPERMILL PLACE APARTMENTS JV, L.P. PEPPERTREE ASSOCIATES PEPPERTREE VILLAGE OF AVON PARK, LIMITED PETERSBURG EAST SECTION 1, L.P. PHILLIPS TO THE FALLS, L.L.C. PHILLIPS VILLAGE ASSOCIATES, L.P. PHOENIX BROADWAY ASSOCIATES LIMITED PARTNERSHIP PHOENIX VINEYARD LIMITED PARTNERSHIP PINE BLUFF ASSOCIATES, A MARYLAND LIMITED PARTNERSHIP PINE BLUFF VILLAGE PRESERVATION LIMITED PARTNERSHIP PINE CREEK APARTMENTS, LTD. PINE HAVEN APARTMENTS, LTD. A TEXAS LIMITED PARTNERSHIP PINE LAKE TERRACE ASSOCIATES L.P. PINE TREE APARTMENTS, LTD. PINELLAS-OXFORD ASSOCIATES LIMITED PARTNERSHIP PINERIDGE ASSOCIATES, L.P. PINERIDGE MANAGEMENT, INC. PINETREE ASSOCIATES PINEVIEW TERRACE I, L.P. PINEWOOD PARK APARTMENTS, A LIMITED PARTNERSHIP PINEWOOD PLACE APARTMENTS ASSOCIATES LIMITED PARTNERSHIP PINEWOOD, LTD. (CLARKE, L.P.) PINEY BRANCH ASSOCIATES LIMITED PARTNERSHIP PLAINS VILLAGE, LTD. PLAINVIEW GP, INC. PLEASANT HILL PRESERVATION, LP State Code PA CA MO PA DE DE MD IN MA PA NY TX CA FL VA SD CA AZ AZ MD DE AL TX CA FL MD MO CA PA TX SC OH GA MD TX DE TX Entity Name PLEASANT HILL VILLAS, LTD PLUMLY TOWNEHOMES, LTD. PLUMMER VILLAGE PRESERVATION, L.P. POINT VILLAGE, LTD. POPLAR POINTE, LIMITED PARTNERSHIP PORTAGE ASSOCIATES LIMITED PARTNERSHIP PORTFOLIO PROPERTIES EIGHT ASSOCIATES LIMITED PARTNERSHIP PORTFOLIO PROPERTIES SEVEN ASSOCIATES LIMITED PARTNERSHIP PORTFOLIO PROPERTIES TEN ASSOCIATES LIMITED PARTNERSHIP PORTNER PLACE ASSOCIATES LIMITED PARTNERSHIP POST RIDGE ASSOCIATES, LTD., LIMITED PARTNERSHIP POST STREET ASSOCIATES LIMITED PARTNERSHIP PRESCOTT EQUITIES HOLDINGS LIMITED PARTNERSHIP PRIDE GARDENS LIMITED PARTNERSHIP PRINCE STREET TOWERS LIMITED PARTNERSHIP PTP PROPERTIES, INC. PUERTO RICO MANAGEMENT, INC. PUL-CORAL GARDENS APARTMENTS LIMTED PARTNERSHIP PULLMAN WHEELWORKS ASSOCIATES I QUAIL RUN ASSOCIATES, L.P. QUEENSGATE II ASSOCIATES, LIMITED PARTNERSHIP QUEENSTOWN APARTMENTS LIMITED PARTNERSHIP QUINCY AFFORDABLE HOUSING L.P. QUIVIRA MANAGEMENT, INC. QUIVIRA PLACE ASSOCIATES, L.P. RAMBLEWOOD LIMITED PARTNERSHIP RAMBLEWOOD RESIDENTIAL JV GP, LLC RAMBLEWOOD RESIDENTIAL JV, LLC RAMBLEWOOD SERVICES LLC RANCHO DEL MAR APARTMENTS LIMITED PARTNERSHIP RANCHO TOWNHOUSES ASSOCIATES RAVENSWORTH ASSOCIATES LIMITED PARTNERSHIP REAL ESTATE ASSOCIATES III REAL ESTATE ASSOCIATES IV REAL ESTATE ASSOCIATES LIMITED REAL ESTATE ASSOCIATES LIMITED II REAL ESTATE ASSOCIATES LIMITED III State Code CO OH CA OH AL MI DC DC DC DC TN NY AZ MS PA DE CA AZ IL DE OH MD IL CA KS MI DE DE DE AZ CA MA CA CA CA CA CA Entity Name REAL ESTATE ASSOCIATES LIMITED IV REAL ESTATE ASSOCIATES LIMITED V REAL ESTATE ASSOCIATES LIMITED VI REAL ESTATE ASSOCIATES LIMITED VII REAL ESTATE EQUITY PARTNERS INC. REAL ESTATE EQUITY PARTNERS, L.P. REAL ESTATE PARTNERS LIMITED REDBIRD TRAILS ASSOCIATES, L.P. REDMOND BUILDING LIMITED PARTNERSHIP REEDY RIVER PROPERTIES, L.L.C. REGENCY PARTNERS LIMITED PARTNERSHIP REGENCY-NATIONAL CORPORATE TAX CREDIT, INC. II RESCORP DEVELOPMENT, INC. RHDC-1, LIMITED PARTNERSHIP RHDC-2, LIMITED PARTNERSHIP RI-15 LIMITED PARTNERSHIP RICHARDS PARK APARTMENTS RICHARDS PARK APARTMENTS, LTD. RICHLAND SENIOR ASSOCIATES, A WASHINGTON LIMITED PARTNERSHIP RICHLIEU ASSOCIATES RIDGEMONT GROUP, LTD. RIDGEWOOD TOWERS ASSOCIATES RIDGEWOOD TOWERS PRESERVATION, L.P. RIVER FRONT APARTMENTS LIMITED PARTNERSHIP RIVER LOFT APARTMENTS LIMITED PARTNERSHIP RIVER LOFT ASSOCIATES LIMITED PARTNERSHIP RIVER OAKS ASSOCIATES RIVER REACH COMMUNITY SERVICES ASSOCIATION, INC. RIVER RIDGE APARTMENTS LIMITED PARTNERSHIP RIVER VILLAGE PRESERVATION LIMITED PARTNERSHIP RIVERCREST APARTMENTS, L.P. RIVERPOINT ASSOCIATES RIVER’S EDGE ASSOCIATES LIMITED DIVIDEND HOUSING ASSOCIATION LIMITED PARTNERSHIP RIVERSIDE PARK ASSOCIATES LIMITED PARTNERSHIP RIVERWOODS PRESERVATION, L.P. RL AFFORDABLE, L.P. ROCK FALLS ELDERLY LIVING CENTER, L.P. State Code CA CA CA CA DE DE CA MO KY DE OH OH IL IL IL DC OH OH WA PA TX IL DE PA PA MA TX FL CT DE SC RI MI DE DE CA IL Entity Name ROCKVILLE ASSOCIATES, LTD. ROCKY CREEK LIMITED PARTNERSHIP ROLLING HILLS APARTMENTS LIMITED PARTNERSHIP ROOSEVELT GARDENS APARTMENTS II LIMITED PARTNERSHIP ROOSEVELT GARDENS LIMITED PARTNERSHIP ROSEWOOD APARTMENTS CORPORATION ROUND BARN MANOR PRESERVATION, L.P. ROWLAND HEIGHTS II LIMITED PARTNERSHIP ROYAL CREST ESTATES (MARLBORO), L.L.C. ROYAL DE LEON APARTMENTS, LTD. ROYAL PALM LAKES, LTD. ROYAL SHORE ASSOCIATES LIMITED PARTNERSHIP RUTHERFORD PARK TOWNHOUSES ASSOCIATES SABINE HOUSING 1994 PARTNERS A LOUISIANA PARTNERSHIP IN COMMENDAM SAGINAW VILLAGE LIMITED PARTNERSHIP SALEM MANOR OREG. LTD. SALEM PARK, A LIMITED PARTNERSHIP SAN BRUNO-OXFORD LIMITED PARTNERSHIP SAN JOSE PRESERVATION, L.P. SANDY PINES, LTD. SANDY SPRINGS ASSOCIATES, LIMITED SANS SOUCI-REO LIMITED PARTNERSHIP SANTA MARIA LIMITED DIVIDEND PARTNERSHIP ASSOCIATES SAUK-KO ENTERPRISES A LIMITED PARTNERSHIP SCANDIA ASSOCIATES L.P. SCANDIA V CORPORATION SCHAUMBURG-OXFORD LIMITED PARTNERSHIP SEASIDE POINT PARTNERS, LTD., A TEXAS LIMITED PARTNERSHIP SEATTLE ROCHESTER AVENUE ASSOCIATES LIMITED PARTNERSHIP SEAVIEW TOWERS ASSOCIATES SECURED INCOME L.P. SECURITY MANAGEMENT INC. SECURITY PROPERTIES SECURITY PROPERTIES 73 SECURITY PROPERTIES 74 SECURITY PROPERTIES 74 II SECURITY PROPERTIES 74 III State Code OH OH PA SC SC CA DE CA DE FL FL HI PA LA OR OR AK MD TX FL GA TX MA WI IN MD MD TX NY NY DE WA WA WA WA WA WA Entity Name SECURITY PROPERTIES 74-A SECURITY PROPERTIES 75 SECURITY PROPERTIES 76 SECURITY PROPERTIES 77 SECURITY PROPERTIES 77A SECURITY PROPERTIES 78 SECURITY PROPERTIES 78A SECURITY PROPERTIES 79 SECURITY PROPERTIES 79-II SECURITY PROPERTIES 80 SECURITY PROPERTIES 81 SECURITY PROPERTIES 81-A SECURITY PROPERTIES FHA LIMITED PARTNERSHIP SEMINOLE-OXFORD ASSOCIATES LIMITED PARTNERSHIP SEMINOLE-OXFORD CORPORATION SENCIT F/G METROPOLITAN ASSOCIATES SENCIT NEW YORK AVENUE ASSOCIATES SENCIT TOWNE HOUSE LIMITED PARTNERSHIP SENCIT-LEBANON COMPANY SENCIT-SELINSGROVE ASSOCIATES SERENDIPITY LIMITED PARTNERSHIP SEWARD ASSOCIATES, AN IDAHO LIMITED PARTNERSHIP SHARP-LEADENHALL ASSOCIATES, A MARYLAND LIMITED PARTNERSHIP SHAWNEE MEADOWS, LIMITED PARTNERSHIP SHELTER IV GP LIMITED PARTNERSHIP SHELTER PROPERTIES II LIMITED PARTNERSHIP SHELTER PROPERTIES IV LIMITED PARTNERSHIP SHELTER PROPERTIES V LIMITED PARTNERSHIP SHELTER REALTY II CORPORATION SHELTER REALTY IV CORPORATION SHELTER REALTY V CORPORATION SHELTER V GP LIMITED PARTNERSHIP SHENANDOAH CROSSINGS, L.P. SHERIDAN PLAZA ASSOCIATES II L.P. SHERMAN TERRACE ASSOCIATES SHOCKOE PLACE APARTMENTS, LLC SHOREVIEW APARTMENTS, L.P. State Code WA WA WA WA WA WA WA WA WA WA WA WA MT MD MD NJ NJ PA PA PA MT ID MD OH SC SC SC SC SC SC SC DE VA IL PA VA CA Entity Name SHOREVIEW PRESERVATION, L.P. SHUBUTA PROPERTIES, LTD. SIERRA MEADOWS, L.P. SIGNATURE MIDWEST, L.P. SIGNATURE POINT JOINT VENTURE SIGNATURE POINT PARTNERS, LTD. SILVER HILL MILL DAM ASSOCIATES LIMITED PARTNERSHIP SITKA III ASSOCIATES, AN IDAHO LIMITED PARTNERSHIP SJT ASSOCIATES, LTD., A CALIFORNIA LIMITED PARTNERSHIP SNI DEVELOPMENT COMPANY LIMITED PARTNERSHIP SOL 413 LIMITED DIVIDEND PARTNERSHIP SOLDOTNA ASSOCIATES, AN IDAHO LIMITED PARTNERSHIP SOUTH BAY VILLA PRESERVATION, L.P. SOUTH BRITTANY OAKS, L.P. SOUTH HIAWASSEE VILLAGE, LTD. SOUTH LA MANCHA, L.P. SOUTH LANDMARK PROPERTIES, L.P. SOUTH MILL ASSOCIATES SOUTH PARK APARTMENTS SOUTH PARK APARTMENTS LIMITED PARTNERSHIP SOUTH WINDRUSH PROPERTIES, L.P. SOUTHERN MISSOURI HOUSING II, L.P. SOUTHERN MISSOURI HOUSING VI, L.P. SOUTHERN MISSOURI HOUSING X, L.P. SOUTHERN MISSOURI HOUSING XII, L.P. SOUTHERN MISSOURI HOUSING XIV, L.P. SOUTHERN MISSOURI HOUSING XIX, L.P. SOUTHERN MISSOURI HOUSING XVI, L.P. SOUTHRIDGE-OXFORD LIMITED PARTNERSHIP SOUTHWEST ASSOCIATES, L.P. SP MID TERM INCOME FUND, LTD. SP PROPERTIES 1982 LIMITED PARTNERSHIP SP PROPERTIES 1983 LIMITED PARTNERSHIP SP PROPERTIES 1983 TWO LIMITED PARTNERSHIP SP PROPERTIES 1984 LIMITED PARTNERSHIP SPRINGDALE WEST SPRINGFIELD FACILITIES, LLC State Code CA MS CA MO TX TX VA ID CA NY MA ID CA DE FL DE TX PA OH OH TX MO MO MO MO MO MO MO MD DE WA WA WA WA WA CA MD Entity Name SPRINGFIELD VILLAS, LTD. SPRINGHAVEN LIMITED PARTNERSHIP SPYGLASS-OXFORD ASSOCIATES L.P. ST. GEORGE VILLAS LIMITED PARTNERSHIP ST. MARY’S-OXFORD ASSOCIATES LIMITED PARTNERSHIP STAFFORD STUDENT APARTMENTS, L.P. STANDPOINT VISTA ASSOCIATES STANDPOINT VISTA LIMITED PARTNERSHIP STEEPLECHASE (AILKEN) LIMITED PARTNERSHIP STERLING CREST JOINT VENTURE STERLING GROVE L.P. STERLING TOWERS ASSOCIATES II LIMITED PARTNERSHIP STERLING VILLAGE AFFORDABLE, L.P. STEWARTOWN ASSOCIATES LIMITED PARTNERSHIP STONEGATE PARK APARTMENTS, LTD. STRATEGIC CAPITAL ALLIANCE LIMITED PARTNERSHIP STRATFORD VILLAGE REALTY TRUST STRAWBRIDGE SQUARE ASSOCIATES LIMITED PARTNERSHIP STRUM AFFORDABLE HOUSING, LLC STUYVESANT LIMITED DIVIDEND HOUSING ASSOCIATION SUBSIDIZED HOUSING PARTNERS SUGAR RIVER MILLS ASSOCIATES SUGARBERRY APARTMENTS CORPORATION SUMMER CROSSINGS 40, A LIMITED PARTNERSHIP SUMMIT OAKS PRESERVATION, L.P. SUMMIT TAX CREDIT PROPERTIES I, L.P. SUMMIT TAX CREDIT PROPERTIES II, L.P. SUMMIT TAX CREDIT PROPERTIES III, L.P. SUN TERRACE ASSOCIATES SUNBURY DOWNS APARTMENTS JV, L.P. SUNSET SILVER BOW APARTMENTS SUNTREE-OXFORD ASSOCIATES LIMITED DIVIDEND HOUSING ASSOCIATION SUSQUEHANNA VIEW LIMITED PARTNERSHIP TAMARAC PINES PRESERVATION, LP TAMARAC VILLAGE, LLC TAUNTON GREEN ASSOCIATES LIMITED PARTNERSHIP TAUNTON II ASSOCIATES State Code TX MA IN SC MD DE SC MD SC TN TX IL CA MD TX AZ MA VA WI MI CA MA CA CA DE DE DE DE AZ TX MT MI PA TX DE MA MA Entity Name TENNESSEE TRUST COMPANY TERAN LIMITED PARTNERSHIP TERRA II LIMITED DIVIDEND HOUSING ASSOCIATION TERRACE INVESTORS LIMITED PARTNERSHIP TERRY MANOR PRESERVATION, L.P. TEXAS BIRCHWOOD APARTMENTS, L.P. TEXAS BROOK APARTMENTS, L.P. TEXAS KIRNWOOD APARTMENTS, L.P. TEXAS MELODY APARTMENTS, L.P. TEXAS-ESTRADA APARTMENTS L.P. THE BRANFORD GROUP LIMITED PARTNERSHIP THE GLENS, A LIMITED PARTNERSHIP THE HOUSTON RECOVERY FUND JV GP, LLC THE HOUSTON RECOVERY FUND JV, L.P. THE NATIONAL HOUSING PARTNERSHIP THE NATIONAL HOUSING PARTNERSHIP II TRUST THE NATIONAL HOUSING PARTNERSHIP-II LIMITED PARTNERSHIP THE NEW FAIRWAYS, L.P. THE OAK PARK PARTNERSHIP LIMITED PARTNERSHIP THE OAKS APARTMENTS, LTD. THE PARK AT CEDAR LAWN, LTD., A TEXAS LIMITED PARTNERSHIP THE TAILORED LADY APARTMENTS PARTNERSHIP THE TERRACES ASSOCIATES L.P. THE VILLA LIMITED PARTNERSHIP THE VILLAGE OF KAUFMAN, LTD. THE WOODLANDS LIMITED THE WOODS ASSOCIATES THIBODAUX HOUSING 1994 PARTNERS, A LOUISIANA PARTNERSHIP IN COMMENDAM THREE FOUNTAINS LIMITED TIDEWATER-OXFORD LIMITED PARTNERSHIP TIMBERLAKE APARTMENTS LIMITED PARTNERSHIP TOMPKINS TERRACE ASSOCIATES LIMITED PARTNERSHIP TOMPKINS TERRACE PRESERVATION, L.P. TOMPKINS TERRACE, INC. TORRES DEL PLATA I LIMITED PARTNERSHIP TORRES DEL PLATA II LIMITED PARTNERSHIP TORRIES CHASE ACQUISITION, L.P. State Code TN AZ MI TX CA TX TX TX TX TX CT SC DE TX DC NY DC DE IL AL TX PA IN WI TX MI IL LA MI MD TX NY DE NY DE DE KS Entity Name TOWER OF DAVID LIMITED PARTNERSHIP TOWN & COUNTRY CLUB APARTMENTS TOWN ONE — PHASE II LIMITED PARTNERSHIP TOWN ONE LIMITED PARTNERSHIP TOWN VIEW TOWERS I LIMITED PARTNERSHIP TOWNSHIP AT HIGHLANDS LLC TRADEWINDS EAST ASSOCIATES, LIMITED DIVIDEND HOUSING ASSOCIATION TRADEWINDS HAMMOCKS, LTD. TRAVIS ONE-OXFORD LIMITED PARTNERSHIP TROON APARTMENTS LIMITED PARTNERSHIP TRUMAN TOWERS, L.P. TUJUNGA GARDENS LIMITED PARTNERSHIP TURNBUERRY-REO, L.P. TWELFTH STREET APARTMENTS, L.P. TWIN GABLES ASSOCIATES LIMITED PARTNERSHIP TWIN OAKS VILLAS, LTD. TYRONE ELDERLY LIMITED PARTNERSHIP U. S. REALTY I CORPORATION U. S. REALTY PARTNERS LIMITED PARTNERSHIP U.S. SHELTER LIMITED PARTNERSHIP UNDERWOOD ASSOCIATES LIMITED PARTNERSHIP UNDERWOOD-OXFORD ASSOCIATES LIMITED PARTNERSHIP ONE UNITED HOUSING PARTNERS — ELMWOOD, LTD. UNITED HOUSING PARTNERS CUTHBERT LIMITED PARTNERSHIP UNITED HOUSING PARTNERS MORRISTOWN LIMITED PARTNERSHIP UNITED HOUSING PARTNERS-CARBONDALE, L.P. UNITED INVESTORS INCOME PROPERTIES (A MISSOURI LIMITED PARTNERSHIP) UNITED INVESTORS REAL ESTATE, INC. UNIVERSITY CITY HOUSING NEIGHBORHOOD RESTORATIONS LIMITED PARTNERSHIP IV UNIVERSITY PLAZA ASSOCIATES UPTOWN VILLAGE, LIMITED URBANA VILLAGE, LTD. URBANIZACION MARIA LOPEZ HOUSING COMPANY LIMITED PARTNERSHIP USS DEPOSITARY, INC. UTOPIA ACQUISITION, L.P. VALEBROOK ASSOCIATES VALLEY OAKS SENIOR HOUSING ASSOCIATES State Code SD MT SD SD TN DE MI FL MD NC MO CA TX IL OH FL PA SC DE SC CT CT AL GA TN TN MO DE PA PA OH OH NY SC MO MA CA Entity Name VAN NUYS ASSOCIATES LIMITED PARTNERSHIP VAN NUYS PRESERVATION MT, L.P. VAN NUYS PRESERVATION, L.P. VERDES DEL ORIENTE PRESERVATION, L.P. VICTORIA ARMS APARTMENTS LIMITED PARTNERSHIP VICTORY SQUARE APARTMENTS LIMITED PARTNERSHIP VILLA DE GUADALUPE PRESERVATION, L.P. VILLA DEL NORTE ASSOCIATES VILLA DEL NORTE II ASSOCIATES VILLA DEL SOL ASSOCIATES LIMITED PARTNERSHIP VILLA FLORENTINA, A CALIFORNIA LIMITED PARTNERSHIP VILLA NOVA, LIMITED PARTNERSHIP VILLAGE APARTMENT, LTD. VILLAGE EAST TOWERS LIMITED PARTNERSHIP VILLAGE OAKS-OXFORD ASSOCIATES, A MARYLAND LIMITED PARTNERSHIP VILLAGE SOUTH ASSOCIATES VINEVILLE TOWERS ASSOCIATES LIMITED PARTNERSHIP VIRGINIA PARK MEADOWS LIMITED DIVIDEND HOUSING ASSOCIATION LIMITEDPARTNERSHIP VISTA DEL LAGOS JOINT VENTURE VISTA HOUSING ASSOCIATES VISTA PARK CHINO LIMITED PARTNERSHIP VISTULA HERITAGE VILLAGE LIMITED PARTNERSHIP WAI ASSOCIATES LIMITED PARTNERSHIP WALNUT CREEK PARTNERS, LIMITED WALNUT HILLS PRESERVATION, L.P. WALTON-PERRY LIMITED WASCO ARMS WASHINGTON CHINATOWN ASSOCIATES LIMITED PARTNERSHIP WASHINGTON SQUARE WEST PRESERVATION, L.P. WASH-WEST PROPERTIES WATERFORD TOWNHOMES LIMITED PARTNERSHIP WATERFORD VILLAGE, L.L.C. WATERGATE II ASSOCIATES WATERS LANDING PARTNERS, L.L.C. WAYCROSS, L.P. WEDGEWOOD CLUB ESTATES LIMITED PARTNERSHIP WEST LAFAYETTE, LTD. State Code MA CA CA CA MO OH CA TX TX CA CA TN TN MO MD OH GA MI AZ CA CA OH TX OH DE MI CA DC DE PA OH DE NY MD GA WA OH Entity Name WEST LAKE ARMS LIMITED PARTNERSHIP WEST VIRGINIAN MANOR ASSOCIATES LIMITED PARTNERSHIP WESTBURY GROUP, LTD. WESTBURY INVESTORS LIMITED PARTNERSHIP WESTGATE (SPARTANBURG) LIMITED PARTNERSHIP WESTGATE APARTMENTS WESTGATE APARTMENTS LIMITED PARTNERSHIP WESTGATE APARTMENTS, LTD. WESTLAND APARTMENTS, LTD. WESTMINISTER PROPERTIES, LTD. WESTMINSTER COMMONS ASSOCIATES LIMITED PARTNERSHIP WESTMINSTER OAKS PRESERVATION, L.P. WESTRIDGE-OXFORD LIMITED PARTNERSHIP WESTWICK II LIMITED PARTNERSHIP WESTWOOD PRESERVATION, L.P. WESTWOOD TERRACE PRESERVATION, L.P. WESTWOOD TERRACE SECOND LIMITED PARTNERSHIP WF-AC TAX CREDIT FUND I, L.P. WF-AC TAX CREDIT FUND I, LLC WF-AC TAX CREDIT FUND II, L.P. WF-AC TAX CREDIT FUND III, L.P. WHITE CLIFF APARTMENTS LIMITED PARTNERSHIP WHITEFIELD PLACE PRESERVATION, LP WICKFORD ASSOCIATES LIMITED PARTNERSHIP WILDERNESS TRAIL, LTD. WILIKINA PARK LIMITED PARTNERSHIP WILKES TOWERS LIMITED PARTNERSHIP WILLIAMSBURG ACQUISITION, L.P. WILLIAMSBURG LIMITED PARTNERSHIP WILLIAMSON TOWERS ASSOCIATES LIMITED PARTNERSHIP WILLOW COURT LIMITED PARTNERSHIP WILLOW WOOD LIMITED PARTNERSHIP WINCHESTER SINGLE FAMILY HOMES, LTD. WIND DRIFT-OXFORD ASSOCIATES, L.P. WINDING BROOK ASSOCIATES WINDMILL RUN ASSOCIATES, LTD. WINDSOR CROSSINGS LIMITED PARTNERSHIP State Code DE WV TX DE SC GA MN AL AL WA VA DE MD MS DE DE IL DE DE DE DE OH TX NC OH HI NC MO IL WV MT CA KY IN IN TX NJ Entity Name WINNSBORO ARMS LIMITED PARTNERSHIP WINONA ASSOCIATES LIMITED PARTNERSHIP WINROCK-HOUSTON ASSOCIATES LIMITED PARTNERSHIP WINROCK-HOUSTON LIMITED PARTNERSHIP WINTER GARDEN PRESERVATION, L.P. WINTHROP APARTMENT INVESTORS LIMITED PARTNERSHIP WINTHROP TEXAS INVESTORS LIMITED PARTNERSHIP WL/OAC, L.L.C. WMOP PARTNERS, L.P. WOLF RIDGE, LTD. WOOD CREEK CPGF 22, L.P. WOODCREST APARTMENTS, LTD. WOODCREST APARTMENTS, LTD. WOODCROFT II LIMITED PARTNERSHIP WOODLAKE ASSOCIATES WOODLAND APARTMENTS, A LIMITED PARTNERSHIP WOODLAND HILLS PRESERVATION LIMITED PARTNERSHIP WOODS EDGE-OXFORD ASSOCIATES, L.P. WOODS MORTGAGE ASSOCIATES WOODS OF INVERNESS CPF 16, L.P. WOODSIDE VILLAS OF ARCADIA, LTD. WORCESTER EPISCOPAL HOUSING COMPANY LIMITED PARTNERSHIP WRC-87A CORPORATION WYNNEFIELD LINCOLN GROVE LIMITED PARTNERSHIP WYNTRE BROOKE ASSOCIATES YADKIN ASSOCIATES LIMITED PARTNERSHIP YELLOW CREEK GLEN FAMILY HOUSING LIMITED PARTNERSHIP YORKVIEW ESTATES, LTD. ZELOTES HOLMES LIMITED PARTNERSHIP ZICKLER ASSOCIATES LIMITED PARTNERSHIP ZIMCO CORPORATION I ZIMCO CORPORATION IV ZIMCO I LIMITED PARTNERSHIP ZIMCO II L.L.C. ZIMCO II LIMITED PARTNERSHIP ZIMCO IV LIMITED PARTNERSHIP ZIMCO IX L.L.C. State Code SC WA DE DE MO MD MD MD DE AL DE OK TX NC WA SC MI IN PA DE FL MA DE NC PA NC IL OH NC IN MD MD MD MD MD MD MD Entity Name ZIMCO V L.L.C. ZIMCO VIII L.L.C. ZIMCO X L.L.C. ZIMCO XI L.L.C. ZIMCO XIII L.L.C. ZIMCO XIV L.L.C. ZIMCO XIX L.L.C. ZIMCO XVI L.L.C. ZIMCO XVII L.L.C. ZIMCO XVIII L.L.C. ZIMCO XX L.L.C. ZIMCO XXV L.L.C. ZIMCO XXVII L.L.C. ZIMCO XXXII LIMITED PARTNERSHIP ZIMCO/BETHEL CORPORATION IX ZIMCO/CHANTILLY CORPORATION ZIMCO/COUCH CORPORATION ZIMCO/DAYTON CORPORATION X ZIMCO/DEERCROSS CORPORATION ZIMCO/DELTA SQUARE CORPORATION ZIMCO/FISHERMAN’S VILLAGE CORPORATION ZIMCO/MELBOURNE CORPORATION ZIMCO/MONROE CORPORATION XI ZIMCO/PEBBLE POINT CORPORATION ZIMCO/SEMINOLE CORPORATION (Back To Top) Section 3: EX-23.1 (EX-23.1) State Code MD MD MD MD MD MD MD MD MD MD MD MD MD MD MD MD MD MD MD MD MD MD MD MD MD Exhibit 23.1 CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM We consent to the incorporation by reference in the Registration Statements listed below of Apartment Investment and Management Company and in the related Prospectuses of our reports dated February 26, 2010 with respect to the consolidated financial statements and schedule of Apartment Investment and Management Company, and the effectiveness of internal control over financial reporting of Apartment Investment and Management Company, both included in this Annual Report on Form 10-K for the year ended December 31, 2009. Form S-3 (No. 333-828) Form S-3 (No. 333-8997) Form S-3 (No. 333-17431) Form S-3 (No. 333-20755) Form S-3 (No. 333-4546) Form S-3 (No. 333-36531) Form S-3 (No. 333-36537) Form S-3 (No. 333-4542) Form S-8 (No. 333-4550) Form S-8 (No. 333-4548) Form S-8 (No. 333-14481) Form S-8 (No. 333-36803) Form S-8 (No. 333-41719) Form S-4 (No. 333-49075) Form S-3 (No. 333-47201) Form S-8 (No. 333-57617) Form S-4 (No. 333-60663) Form S-8 (No. 333-70409) Form S-3 (No. 333-69121) Form S-3 (No. 333-75109) Form S-4 (No. 333-60355) Form S-8 (No. 333-75349) Form S-3 (No. 333-77257) Form S-3 (No. 333-77067) Form S-3 (No. 333-81689) Form S-3 (No. 333-92743) Form S-3 (No. 333-31718) Form S-3 (No. 333-50742) Form S-4 (No. 333-51154) Form S-3 (No. 333-52808) Form S-3 (No. 333-64460) Form S-3 (No. 333-71002) Form S-3 (No. 333-73162) Form S-3 (No. 333-86200) Form S-3 (No. 333-101735) Form S-3 (No. 333-130735) Form S-4 (No. 333-90590-01) Form S-4 (No. 333-90588-01) Form S-4 (No. 333-136801) Form S-8 (No. 333-142466) Form S-8 (No. 333-142467) Form S-3 (No. 333-150342) Form S-3ASR (333-150341-01) Denver, Colorado February 26, 2010 (Back To Top) /s/ ERNST & YOUNG LLP Section 4: EX-31.1 (EX-31.1) Exhibit 31.1 I, Terry Considine, certify that: CHIEF EXECUTIVE OFFICER CERTIFICATION 1. 2. I have reviewed this annual report on Form 10-K of Apartment Investment and Management Company; 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 are 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 an 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. Date: February 26, 2010 /s/ Terry Considine Terry Considine Chairman and Chief Executive Officer (Back To Top) Section 5: EX-31.2 (EX-31.2) Exhibit 31.2 I, Ernest M. Freedman, certify that: CHIEF FINANCIAL OFFICER CERTIFICATION 1. 2. I have reviewed this annual report on Form 10-K of Apartment Investment and Management Company; 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 are 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 an 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. Date: February 26, 2010 /s/ Ernest M. Freedman Ernest M. Freedman Executive Vice President and Chief Financial Officer (Back To Top) Section 6: EX-32.1 (EX-32.1) Certification of CEO Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Exhibit 32.1 In connection with the Annual Report of Apartment Investment and Management Company (the “Company”) on Form 10-K for the period ended December 31, 2009 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Terry Considine, as Chief Executive Officer of the Company hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, 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 result of operations of the Company. /s/ Terry Considine Terry Considine Chairman and Chief Executive Officer February 26, 2010 (Back To Top) Section 7: EX-32.2 (EX-32.2) Certification of CFO Pursuant to 18 U.S.C. Section 1350, As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 Exhibit 32.2 In connection with the Annual Report of Apartment Investment and Management Company (the “Company”) on Form 10-K for the period ended December 31, 2009 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Ernest M. Freedman, as Chief Financial Officer of the Company hereby certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to the best of my knowledge, 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 result of operations of the Company. /s/ Ernest M. Freedman Ernest M. Freedman Executive Vice President and Chief Financial Officer February 26, 2010 (Back To Top) Section 8: EX-99.1 (EX-99.1) Exhibit 99.1 Agreement Regarding Disclosure of Long-Term Debt Instruments In reliance upon Item 601(b)(4)(iii)(A) of Regulation S-K, Apartment Investment and Management Company , a Maryland corporation (the “Company”), has not filed as an exhibit to its Annual Report on Form 10-K for the period ended December 31, 2009, any instrument with respect to long-term debt not being registered where the total amount of securities authorized thereunder does not exceed ten percent of the total assets of the Company and its subsidiaries on a consolidated basis. Pursuant to Item 601(b) (4) (iii) (A) of Regulation S-K, the Company hereby agrees to furnish a copy of any such agreement to the Securities and Exchange Commission upon request. Apartment Investment and Management Company By: /s/ Ernest M. Freedman Ernest M. Freedman Executive Vice President and Chief Financial Officer (Back To Top) 

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