Item 2.05 Costs Associated with Exit or Disposal Activities.

Based on the number of properties sold in 2008 and the current economic environment, Apartment Investment and Management Company ("Aimco") continues to review its level of spending. Aimco has plans to reduce the scale and scope of its activities. In connection with such scale reductions, Aimco intends: to reduce its workforce by approximately seven percent, reduce related workforce costs, and write-off costs deferred in connection with abandoned activities, including certain redevelopment projects and business pursuit costs. Aimco is in the process of refining its estimate of the fourth quarter charge, which is expected to be in a range of approximately $21 million to $28 million.

In connection with its regular year-end financial statement preparation and audit, Aimco continues to evaluate certain items that may or may not result in additional adjustments or charges. Aimco intends to provide full 2008 earnings results and 2009 guidance in the normal course on its earnings conference call in early February.

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