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RELATED PARTY TRANSACTIONS | 12 Months Ended
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Dec. 31, 2019
RELATED PARTY TRANSACTIONS |
RELATED PARTY TRANSACTIONS | NOTE 3. RELATED PARTY TRANSACTIONS The Partnership’s properties are managed by an entity that is owned by the majority shareholder of the General Partner. The management fee is equal to 4% of gross receipts of rental revenue and laundry income on the majority of the Partnership’s properties and 3% on Linewt. Total fees paid were approximately $2,409,000, $2,326,000 and $2,159,000 in 2019, 2018 and 2017, respectively. The Partnership Agreement permits the General Partner or Management Company to charge the costs of professional services (such as counsel, accountants and contractors) to NERA. In 2019, 2018 and 2017, approximately $1,702,000, $1,380,000 and $882,000, was charged to NERA for legal, accounting, construction, maintenance, rental and architectural services supervision of capital improvements and brokerage commissions. Of the 2019 expenses referred to above, approximately $392,000 consisted of repairs and maintenance, $377,000 of administrative expense, and $9,000 of rental commissions. Approximately $924,000 of expenses for construction, architectural services and supervision of capital projects were capitalized in rental properties. Additionally in 2019, the Hamilton Company received approximately $986,000 from the Investment Properties of which approximately $664,000 was the management fee, approximately $104,000 was for construction, architectural services and supervision of capital projects, approximately $121,000 for rental commissions, approximately $60,000 was for maintenance services, and approximately $37,000 was for administrative services. The management fee is equal to 4% of gross receipts rental income on the majority of investment properties and 2% on Dexter Park. The Partnership reimburses the management company for the payroll and related expenses of the employees who work at the properties. Total reimbursement was approximately $3,384,000, $3,347,000 and $3,463,000 for the years ended December 31, 2019, 2018 and 2017, respectively. The Management Company maintains a 401K plan for all eligible employees whereby the employees may contribute the maximum allowed by law. The plan also provides for discretionary contributions by the employer. In 2019, the Partnership accrued $45,000 for the employer’s match contribution to the plan. See Note 15. There were no employer contributions during 2018 and 2017. Bookkeeping and accounting functions are provided by the Management Company’s accounting staff, which consists of approximately 14 people. During the years ended December 31, 2019, 2018 and 2017 the Management Company charged the Partnership $125,000 per year for bookkeeping and accounting services included in administrative expenses above. The former President of the Management Company performed asset management consulting services and received an asset management fee from the Partnership. The Partnership did not have a written agreement with this individual. At June 29, 2018, the individual resigned his position. During the years ended December 31, 2018 and 2017 this individual received a fee of $37,500 in 2018, and $75,000 for 2017. To fund the purchase of Woodland Park as mentioned in Note 2, the Partnership borrowed $16,000,000 from HBC Holding LLC, on July 16, 2017, with interest only at 4.75%. The loan was fully paid off through the financing of Woodland Park as of December 31, 2017. The total interest expense incurred was approximately $182,000. The Partnership has invested in seven limited partnerships, which have invested in mixed use residential apartment complexes. The Partnership has a 40% to 50% ownership interest in each investment property. The other investors, as of December 31, 2019, are the Estate of Harold Brown, and five current and previous employees of the Management Company. The Brown Family related entities’ ownership interest is between 47.6% and 59 %. See Note 14 for a description of the properties and their operations. The Advisory Committee held 4 meetings during 2019, and a total of $20,500 was paid for attendance and participation in such meetings. Additionally, the Audit Committee held 4 meetings in 2019 and a total of $24,000 was paid for attendance and participation in such meetings. See Note 8 for information regarding the repurchase of Class B and General Partnership Units.

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- Definition The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 850 -URI http://asc.fasb.org/topic&trid=2122745 + Details
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