exv99w5

POST WOODS TOWNHOMES II LIMITED PARTNERSHIP

TABLE OF CONTENTS

DECEMBER 31, 2006 AND 2005


	Page

Independent Auditor’s Report	1

FINANCIAL STATEMENTS

Balance Sheets		2

Statements of Operations		3

Statements of Changes in Partners’ Equity		4

Statements of Cash Flows		5

Notes to Financial Statements		6-13

Independent Auditor’s Report on Supplementary Information		15

SUPPLEMENTARY INFORMATION

Detailed Balance Sheet Schedules		16

Detailed Statement of Operations Schedules		17-19

CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITOR’S REPORT

To the Partners of Post Woods Townhomes II Limited Partnership
c/o Joint Development & Housing Corporation

We have audited the accompanying balance sheets of Post Woods Townhomes II Limited Partnership as of December 31, 2006 and 2005, and the related statements of operations, changes in partners’ equity, and cash flows for the years then ended. These financial statements are the responsibility of the Partnership’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audits 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 financial position of Post Woods Townhomes II Limited Partnership as of December 31, 2006 and 2005, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Certified Public Accountants

Cincinnati,Ohio

January 29, 2007

Donald R. Harting
Terrence P. Egan
James R. Hochwalt
Charles C. Craft
Randall S. Kuvin
Randolph N. Kramer
David P. Dirksen
Bruce G. Kreinbrink

Kelley G. O’Neil
Julie M. Kline
Dustin C. Fry
Terry L. Yoho
Linda B. Hadley
Alexander P. Kurian
Angela L. Gatto
Erin J. Kliesch
Kevin R. Hagstrom
Michael W. Smith
Jeffrey M. Woeste
Robert L. Hesch

RETIRED
David E. Flagel
Gerald P. Flagel
Arthur J. Huber
Louis G. Roman


DAYTON		CINCINNATI
3400 South Dixie Drive / Dayton, Ohio 45439-2304		9135 Governors Way / Cincinnati, Ohio 45249-2037
phone: (937) 299-3400 / fax: (937)293-5481 / www.fhf-cpa.com		phone: (513) 774-0300 / fax: (513) 774-7250 / www.fhf-cpa.com

POST WOODS TOWNHOMES II LIMITED PARTNERSHIP

BALANCE SHEETS


	DECEMBER 31,
	2006		2005
ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	37,708	$	51,210
Receivables, net of allowance for doubtful accounts, of $1,103 and $1,812 in 2006 and 2005, respectively		8,862		7,163
Reserve for replacement		5,117		5,660
Real estate taxes and insurance escrow		66,067		58,293

TOTAL CURRENT ASSETS		117,754		122,326


FIXED ASSETS, at net book value		3,129,465		3,332,795


OTHER ASSETS, net of accumulated amortization		23,811		26,916


TOTAL ASSETS	$	3,271,030	$	3,482,037


LIABILITIES AND PARTNERS’ EQUITY

CURRENT LIABILITIES
Trade payables	$	3,597	$	4,404
Accrued expenses		120,304		119,587
Security deposits		36,843		29,148
Deferred revenue		3,821		3,989
Current portion of mortgage payable		92,787		84,514
Project expense loans		220,779		142,841

TOTAL CURRENT LIABILITIES		478,131		384,483


LONG-TERM DEBT
Mortgage payable		2,077,253		2,170,040


TOTAL LIABILITIES		2,555,384		2,554,523


PARTNERS’ EQUITY
Investor Limited Partner		251,321		461,071
Special Limited Partner		10		10
General Partner		464,315		466,433

		715,646		927,514

TOTAL LIABILITIES AND PARTNERS’ EQUITY	$	3,271,030	$	3,482,037

The accompanying notes are an integral part of these statements.

POST WOODS TOWNHOMES II LIMITED PARNERSHIP

STATEMENTS OF OPERATIONS


	FOR THE YEARS ENDED
	DECEMBER 31,
	2006			2005

INCOME FROM RENTS AND MISCELLANEOUS	$	601,505		$	639,979


RENTAL EXPENSES
Administrative expense		109,902			95,159
Utilities		22,530			14,049
Operating and maintenance expense		119,238			117,758
Real estate taxes		97,408			96,347
Miscellaneous taxes, licenses and permits		504			246
Insurance		22,540			16,390

		372,122			339,949


NET RENTAL INCOME		229,383			300,030


OTHER DEDUCTIONS
Mortgage interest expense		207,134			214,728


INCOME — before depreciation and amortization		22,249			85,302


DEPRECIATION		231,012			220,899
AMORTIZATION		3,105			3,106

		234,117			224,005


NET LOSS	$	(211,868	)	$	(138,703	)

The accompanying notes are an integral part of these statements.

POST WOODS TOWNHOMES II LIMITED PARTNERSHIP

STATEMENTS OF CHANGES IN PARTNERS’ EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005


				INVESTOR			SPECIAL
	GENERAL			LIMITED			LIMITED
	PARTNER			PARTNER			PARTNER		TOTAL

Balance — January 1, 2005	$	467,820		$	603,688		$	10	$	1,071,518

Distribution		0			(5,301	)		0		(5,301	)

Net loss — 2005		(1.387	)		(137,316	)		0		(138,703	)


Balance — December 31, 2005		466,433			461,071			10		927,514

Net loss - 2006		(2,118	)		(209,750	)		0		(211,868	)


Balance — December 31, 2006	$	464,315		$	251,321		$	10	$	715,646

The accompanying notes are an integral part of these statements.

POST WOODS TOWNHOMES II LIMITED PARTNERSHIP

STATEMENTS OF CASH FLOWS


	FOR THE YEARS ENDED
	DECEMBER 31,
	2006			2005
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(211,868	)	$	(138,703	)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation		231,012			220,899
Amortization		3,105			3,106
Changes in assets and liabilities:
Receivables		(1,699	)		(2,848	)
Reserve for replacement		543			(1,049	)
Real estate taxes and insurance escrow		(7,774	)		(2,022	)
Trade payables		(807	)		720
Accrued expenses		717			23,031
Security deposits		7,695			(1,470	)
Deferred revenue		(168	)		866


NET CASH PROVIDED BY OPERATING ACTIVITIES		20,756			102,530


CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of improvements, equipment and furnishings		(27,682	)		(24,959	)


CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments on mortgage		(84,514	)		(76,979	)
Distributions		0			(5,301	)
Project expense loans		77,938			(1,291).


NET CASH USED IN FINANCING ACTIVITIES		(6,576	)		(83,571	)


NET CHANGE IN CASH AND CASH EQUIVALENTS		(13,502	)		(6,000	)

CASH AND CASH EQUIVALENTS — beginning of year		51,210			57,210


CASH AND CASH EQUIVALENTS — end of year	$	37,708		$	51,210


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

Cash paid during the year for:
Interest	$	207,795		$	215,329

The accompanying notes are an integral part of these statements.

POST WOODS TOWNHOMES II LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005


1.		ORGANIZATION

		The Partnership was formed on November 21, 1991, to acquire land in Franklin County, Ohio to construct an 88-unit apartment project qualifying for low income housing tax credits provided under Section 42(a) of the Internal Revenue Code, and to lease, manage and operate the project. The Partnership was organized as a limited partnership by Joint Development & Housing Corporation (JDH) and Ashford Investment Corporation (Ashford) as general partners and JDH as the limited partner.

		On March 6, 1992, the Partnership Agreement was amended to reflect the withdrawal of Ashford as a general partner and to substitute Towne Building Group, Inc. (TBG) for JDH as the Original Limited Partner.

		On January 1, 1994, the Partnership Agreement was amended and restated to admit Boston Financial Institutional Tax Credits IV, A Limited Partnership (BFITC) as the Investor Limited Partner and SLP, Inc. (SLP) as a Special Limited Partner; to-reflect the withdrawal of TBG, the Original Limited Partner and to set out more fully the rights, obligations and duties of the Partners.

		Rental operations commenced on September 22, 1993.

		Allocation of Income or Loss and Tax Credits

		The Partnership Agreement provides that income or loss and tax credits are to be allocated as follows:


General Partner (GP)	1	%
Investor Limited Partner (ILP)	99	%
Special Limited Partner (SLP)	0	%

		Allocation of Cash Flows

		After the earlier to occur of the Development Obligation Date (December 31, 1997) or the first anniversary of the Completion Date (December 3, 1994), cash flows (as defined in the Partnership Agreement) are to be distributed, within 90 days of year-end, in the following priority:

First:

100% to ILP until ILP has received $7,500 per year, cumulative but not compounded;

POST WOODS TOWNHOMES II LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005


1.		ORGANIZATION (continued)

Allocation of Cash Flows (continued)

	Second:		to repay any accrued but unpaid management fees and any other amounts due the Management Agent, whenever incurred, by any and all of the Integrated Partnerships (as defined in the Amendment to Limited Partnership Agreements dated March 4, 1998) and any Project Expense Loans (as defined in the Partnership Agreement) of any Integrated Partnership, then outstanding and incurred on or after January 1, 1997; and

	Third:		to ILP and GP in equal shares.

		For the years ended December 31, 2006 and 2005, distributions from Cash Flows were $0 and $5,301, respectively.

		Distributions of Other Than Cash Flow Prior to dissolution, if the General Partner shall determine that there are proceeds available for distribution from a Capital Transaction (as defined in the Partnership Agreement), such proceeds shall be applied and distributed in accordance with the provisions of the Partnership Agreement, as amended.


2.		SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

		Basis of Accounting The financial statements are prepared on the accrual basis of accounting.

		Depreciation Methods Depreciation for financial reporting is computed using the straight-line method over the estimated useful lives of the assets, and for income tax purposes is computed primarily using accelerated methods over the statutory lives of the assets. The Partnership follows the practice of charging expenditures for additions or major replacements to the asset accounts. When an asset is retired or otherwise disposed of, its cost and the related accumulated depreciation are eliminated from their respective accounts and any gain or loss is reflected in the statement of operations.

		Cash and Cash Equivalents The Partnership considers financial instruments with maturities of three months or less to be cash equivalents.

		Fair Value of Financial Instrument The carrying amount of the mortgage payable approximates fair value as a result of the current mortgage rates available to the Partnership at December 31, 2006.

POST WOODS TOWNHOMES II LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005


2.		SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

		Estimates

		The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

		Accounts Receivable

		Tenant rent charges for the current month are due on the first of the month. Rental payments received in advance are deferred until earned. Tenants who are evicted or move out are charged with any damages or cleaning fees in excess of the security deposit. The Partnership accounts for all past due rents as stipulated in the lease agreement, and recognizes other tenant charges on the date assessed at the actual amount due. The Partnership does not accrue interest on tenant receivable balances. Tenant receivable balances in excess of 90 days in arrears are transferred to a collection agency and written off to bad debt expense at that time. The allowance method is used to estimate bad debt expense based on collection experience. Bad debt expense for 2006 and 2005 was $7,290 and $2,359, respectively.

		Advertising Costs

		Advertising costs are charged to operations when incurred. Advertising expense for 2006 and 2005 was $10,462 and $7,910, respectively.

		Concentration of Credit Risk

		The Partnership maintains its cash balances in various Cincinnati, Ohio financial institutions which, at times, may exceed federally insured limits. The Partnership has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash.


3.		RECEIVABLES

The following is a summary of receivables at December 31, 2006 and 2005:


	2006			2005
Rent receivable	$	9,429		$	8,964
Other receivables		536			11
Less: allowance for doubtful accounts		(1,103	)		(1,812	)

	$	8,862		$	7,163

POST WOODS TOWNHOMES II LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005


4.		FIXED ASSETS


							Depreciable
	2006			2005			Life in Years
COST
Qualifying for tax credits:
Buildings	$	4,311,105		$	4,311,105			27
Site improvements		926,618			926,618			20
Equipment and furnishings		46,729			46,729			12
Not qualifying for tax credits;
Land		420,000			420,000			—
Land improvements — additions		19,180			19,180			20
Equipment — additions		174,129			172,033			12

		5,897,761			5,895,665
Less: accumulated depreciation		(2,768,296	)		(2,562,870	)


NET BOOK VALUE	$	3,129,465		$	3,332,795


5.		OTHER ASSETS

The following is a summary of amortizable costs and the related accumulated amortization:


	2006			2005			Amortization Period
COST
Loan costs	$	62,115		$	62,115		20 years
Less: accumulated amortization		(38,304	)		(35,199	)

	$	23,811		$	26,916

POST WOODS TOWNHOMES II LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005


6.		MORTGAGE PAYABLE

		On August 26, 1994, the Partnership obtained a 20-year permanent mortgage with Indianapolis Life Insurance Company (ILIC) in the amount of $2,816,000. The permanent loan carries an interest rate of 9.38% and may be adjusted at the sole and absolute discretion of ILIC on the first day of the 16th year to a rate comparable to what is being offered by ILIC to borrowers for comparable loans. Principal and interest payments are due monthly (based on a 25-year amortization period) in the amount of $24,359, unless adjusted in connection with an adjustment of the interest rate, with a balloon payment of approximately $1,193,000 payable in full on July 1, 2014. During the 4th through 15th loan year, the loan may be prepaid in full but not in part, with a prepayment premium equal to the greater of one percent (1%) of the principal balance of the note then being paid or the yield maintenance amount as defined in the promissory note. For the 16th through the 20th loan years, the prepayment premium is five percent (5%), reduced by one percent (1%) each year with no prepayment penalty if the principal balance is paid in full within 120 days of final maturity (July 1, 2014). If ILIC elects to increase the interest rate on the Adjustment Date, the borrower may prepay the note in full but not in part, without prepayment premium during the 120-day period commencing on the date that ILIC notifies borrower of their election to adjust the interest rate. This note is collateralized by the real property known as Post Woods Townhomes II, by a security interest in certain fixtures and personal property, and by an assignment of leases and rents to ILIC for all present and future leases of all or any portion of the realty encumbered by the mortgage. The Partners have no personal liability with respect to this indebtedness.

		Following are maturities of mortgage payable for each of the next five (5) years, and in the aggregate:


2007	$	92,787
2008		101,869
2009		111,841
2010		122,789
2011		134,808
Later years		1,605,946

	$	2,170,040

POST WOODS TOWNHOMES II LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005

PROJECT EXPENSE LOANS

The Partnership has received Project Expense Loans from the General Partner (as defined in the Amendment to the Limited Partnership Agreement dated March 4, 1998). The loans totaled $220,779 and $142,841 as of December 31, 2006 and 2005, respectively. These loans are non-interest bearing and are repayable only as provided in the Partnership Agreement (See Note 1).

RESERVE FOR REPLACEMENT

The General Partner is responsible for the establishment of a reserve account for capital replacements. The account is to be funded by monthly deposits, commencing on the Project Completion Date (December 3, 1993), equal to the greater of the amount required by the lender or $1,100. The monthly deposit required was $1,100 until permanent financing was obtained on August 26, 1994, at which time the lender required the Partnership to deposit four percent (4%) of the monthly gross apartment rental received, until the total reserve account equals or exceeds $50,000. Disbursements from the reserve account are permitted for expenditures approved upon written request of the lender.

RELATED PARTY TRANSACTIONS

Effective June 1, 1993, the Partnership entered into a management agreement with Towne Properties Asset Management Company (TPAMC), an affiliate of JDH, in which TPAMC will act as the manager and leasing agent for the project and receive a monthly fee of four percent (4%) of monthly gross income. On January 1, 2001, TPAMC assigned this contractual agreement to a newly-formed subsidiary Limited Liability Company known as Towne Properties Asset Management Company Ltd., LLC (TPAMC Ltd.), which is owned 84.7% by TPAMC. Total management fees paid or accrued to TPAMC Ltd. in 2006 and 2005 totaled $23,711 and $25,419, respectively. The agreement was for an initial term of one year and is currently on a month-to-month basis. At December 31, 2006 and 2005, the Partnership owed TPAMC Ltd. $2,169 and $2,139 respectively, for unpaid management fees. TPAMC also provides office and maintenance supplies and personnel, administrative services, and marketing services, and is reimbursed for these expenses by the Partnership. At December 31, 2006 and 2005, the Partnership owed TPAMC $5,943 and $5,626, respectively, for these reimbursements.

During 2005, the Partnership inadvertently received a deposit from an affiliated community in the amount of $700. This amount is included in trade payables at December 31, 2005 and was repaid in early 2006.

POST WOODS TOWNHOMES II LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005

RELATED PARTY TRANSACTIONS (Continued)

During 2006, an affiliated community inadvertently received a deposit for the Partnership in the amount of $525. This amount is included in other receivables at December 31, 2006 and was repaid in early 2007.

Effective January 1, 1994, the Partnership entered into an incentive management agreement with TPAMC, providing for an annual, non-cumulative incentive management fee equal to the lesser of five percent (5%) of gross revenues or the Priority Distribution (as defined in the Partnership Agreement) applicable to such year. In no event, however, shall the incentive management fee and the management fee payable under the Management Agreement exceed, in the aggregate, nine percent (9%) of the gross revenues of the Project in any fiscal year. The agreement continues in full force and effect until termination of the Partnership. No incentive management fee was payable for 2006 or 2005.

10.

INCOME TAXES

These statements contain no provision for federal income taxes. As a partnership any income or loss is reported on the tax returns of the respective partners.

The Partnership treats certain items of income and deductions differently for federal income tax purposes than for financial reporting purposes. Following is a reconciliation of financial statement income to federal taxable income:


	2006			2005
Net loss — financial statement	$	(211,868	)	$	(138,703	)
Additional depreciation for federal income tax purposes due to the use of accelerated depreciation methods		(4,669	)		(12,466	)
Allowance for doubtful accounts — deductible when written off		(709	)		1,532
Revenue received in advance — taxable when received; recognized when earned for financial reporting:
Current year		3,821			3,989
Prior year		(3,989	)		(3,123	)

Net loss — federal income tax	$	(217,414	)	$	(148,771	)

POST WOODS TOWNHOMES II LIMITED PARTNERSHIP

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2006 AND 2005

10.

INCOME TAXES (Continued)

The Partnership has qualified to receive low-income housing tax credits from the State of Ohio pursuant to Internal Revenue Code Section 42 totaling $4,375,670. These tax credits are available on an annual basis for a ten-year period commencing with 1993. The annual allocation of $437,567 is available to the Partners as a credit against their federal income taxes payable. As of December 31, 2006, all of the $4,375,670 tax credits have been utilized by the Partners. Certain technical requirements must be met and maintained by the Partnership to receive the full allocation of tax credits.

11.

RESIDENT LEASE AGREEMENTS

Generally, the apartment units are leased to residents for an initial one-year term. Thereafter, residents can extend the lease on a month-to- month basis.

12.

CONTINGENCY

The Partnership’s low-income housing tax credits are contingent on its ability to maintain compliance with applicable sections of Section 42(a) of the Internal Revenue Code. Failure to maintain compliance with occupant eligibility, and/or gross rent, or to correct noncompliance within a specified time period could result in recapture of previously taken tax credits plus interest. In addition, such potential noncompliance may require an adjustment to the contributed capital by the Investor Limited Partner.

CERTIFIED PUBLIC ACCOUNTANTS

INDEPENDENT AUDITOR’S REPORT ON SUPPLEMENTARY INFORMATION

To the Partners of Post Woods Townhomes II Limited Partnership
c/o Joint Development & Housing Corporation

Our report on our audits of the basic financial statements of Post Woods Townhomes II Limited Partnership for 2006 and 2005 appears on page 1. Those audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The detailed balance sheet and statement of operations schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information, except for that portion marked “unaudited,” on which we express no opinion, has been subjected to the auditing procedures applied in the audits of the basic financial statements, and, in our opinion, the information is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

Certified Public Accountants

Cincinnati, Ohio

January 29, 2007

Donald R. Harting
Terrence P. Egan
James R. Hochwalt
Charles C. Craft
Randall S. Kuvin
Randolph N. Kramer
David P. Dirksen
Bruce G. Kreinbrink

Kelley G. O’Neil
Julie M. Kline
Dustin C. Fry
Terry L. Yoho
Linda B. Hadley
Alexander P. Kurian
Angela L. Gatto
Erin J. Kliesch
Kevin R. Hagstrom
Michael W. Smith
Jeffrey M. Woeste
Robert L. Hesch

RETIRED
David E. Flagel
Gerald P. Flagel
Arthur J. Ruber
Louis G. Homan


DAYTON					CINCINNATI
3400 South Dixie Drive / Dayton, Ohio 45439-2304					9135 Governors Way / Cincinnati, Ohio 45249-2037
phone: (937) 299-3400 / fax: (937) 293-5481 / www.fhf-cpa.com					phone: (513) 774-0300 / fax: (513) 774-7250 / www.fhf-cpa.corn

POST WOODS TOWNHOMES II LIMITED PARTNERSHIP

DETAILED BALANCE SHEET SCHEDULES


	DECEMBER 31,
	2006			2005
ASSETS

CURRENT ASSETS
Petty cash	$	100		$	100
Cash in bank		765			21,962
Tenant accounts receivable, net of allowance for doubtful accounts of $1,103 and $1,812 in 2006 and 2005, respectively		8,326			7,152
Other receivables		536			11
Tenant security deposits		36,843			29,148

		46,570			58,373

RESTRICTED DEPOSITS AND FUNDED RESERVES
Replacement reserve deposits		5,117			5,660
Mortgage escrow deposits		66,067			58,293

		71,184			63,953

FIXED ASSETS
Land		420,000			420,000
Land improvements		945,798			945,798
Buildings		4,311,105			4,311,105
Building equipment		220,858			218,762
Accumulated depreciation		(2,768,296	)		(2,562,870	)

		3,129,465			3,332,795

OTHER ASSETS
Deferred financing costs, net of accumulated amortization		23,811			26,916


TOTAL ASSETS	$	3,271,030		$	3,482,037


LIABILITIES AND PARTNERS’ EQUITY

CURRENT LIABILITIES
Accounts payable	$	3,597		$	4,404
Accrued wages and payroll taxes		5,943			5,626
Accrued interest payable		16,953			17,614
Accrued real estate taxes payable		97,408			96,347
Current portion of mortgage note payable		92,787			84,514
Tenant security deposit liability		36,843			29,148
Rent deferred credits		3,821			3,989
Project expense loans		220,779			142,841

		478,131			384,483


LONG-TERM LIABILITIES
Mortgage note payable		2,077,253			2,170,040


PARTNERS’ EQUITY
Other partner’s equity		464,315			466,433
Limited partners’ equity		251,331			461,081

		715,646			927,514

TOTAL LIABILITIES AND PARTNERS’ EQUITY	$	3,271,030		$	3,482,037

POST WOODS TOWNHOMES II LIMITED PARTNERSHIP

DETAILED STATEMENT OF OPERATIONS SCHEDULES


	FOR THE YEARS ENDED
	DECEMBER 31,
	2006			2005
REVENUE
RENTAL INCOME
Apartments	$	694,578	*	$	700,158	*

VACANCIES
Apartments		100,732	*		68,474	*

RENTAL INCOME LESS VACANCIES		593,846			631,684


FINANCIAL REVENUE
Interest income — miscellaneous		1,177			661
Interest income — reserve for replacement		218			122

TOTAL FINANCIAL REVENUE		1,395			783


OTHER REVENUE
NSF and late charges		2,191			2,253
Damages and cleaning fees		3,443			4,771
Forfeited security deposits		300			0
Other revenue (miscellaneous)		330			488

TOTAL OTHER REVENUE		6,264			7,512


TOTAL REVENUE	$	601,505		$	639,979


*		- Unaudited

POST WOODS TOWNHOMES II LIMITED PARTNERSHIP

DETAILED STATEMENT OF OPERATIONS SCHEDULES (CONTINUED)


	FOR THE YEARS ENDED
	DECEMBER 31,
	2006		2005
EXPENSES
ADMINISTRATIVE
Advertising	$	10,463	$	7,910
Office salaries		19,887		16,485
Office supplies		1,136		1,090
Management fees		23,711		25,419
Manager or superintendent salaries		26,992		26,408
Legal expenses (project-related issues)		1,595		1,073
Auditing expense		9,370		6,600
Telephone and answering services		2,901		2,529
Bad debts		7,290		2,359
Miscellaneous administrative expenses		6,557		5,286

TOTAL ADMINISTRATIVE		109,902		95,159


UTILITIES
Gas		6,690		3,307
Electricity		7,388		7,035
Water and sewer, less reimbursements		8,452		3,707

TOTAL UTILITIES		22,530		14,049


OPERATING AND MAINTENANCE
Janitor cleaning supplies and payroll		530		407
Garbage and trash removal		7,023		7,955
Security payroll/contract		1,810		2,002
Grounds payroll		16,449		18,487
Grounds supplies		820		3,490
Repairs payroll		37,480		38,281
Repairs material		28,500		21,084
Snow removal		0		3,121
Turnover expense		20,532		17,791
Miscellaneous operating and maintenance		6,094		5,140

TOTAL OPERATING AND MAINTENANCE		119,238		117,758

POST WOODS TOWNHOMES II LIMITED PARTNERSHIP

DETAILED STATEMENT OF OPERATIONS SCHEDULES (CONTINUED)


	FOR THE YEARS ENDED
	DECEMBER 31,
	2006			2005
TAXES AND INSURANCE
Real estate taxes	$	97,408		$	96,347
Miscellaneous taxes, license and permits		504			246
Property and liability insurance (hazard)		22,540			16,390

TOTAL TAXES AND INSURANCE		120,452			112,983


FINANCIAL EXPENSES
Interest on mortgage note payable		207,134			214,728


DEPRECIATION AND AMORTIZATION
Depreciation		231,012			220,899
Amortization		3,105			3,106

TOTAL DEPRECIATION AND AMORTIZATION		234,117			224,005


TOTAL EXPENSES		813,373			778,682


NET LOSS	$	(211,868	)	$	(138,703	)


OTHER ITEMS

Amount of principal paid	$	84,514		$	76,979

Deposits made to replacement reserve		23,680			25,501

Disbursements made from replacement reserve		24,441			24,574

Occupancy percentage — end of year		98	%*		83	%*


* -		Unaudited