@Ashish Acharya @Michael PlaksAshish correctly points out that LPs are subject to more specific rules, however the courts have found that a limited liability company (LLC) interest is not treated as a limited partnership interest.

When you have a fund and a loan comes back, you are still obligated to provide a return to your LPs whether or not the funds are redeployed or not.

When you invest in the education system you stimulate the cities potential for future economic growth and job growth for years to come.

Those are issues that will keep away a family of tourists from NYC who would normally be spending money and stimulating the economy.

And when you imply that LPs can have that lifestyle, too, it certainly attracts capital.  

Many LPs know so much about the sponsor and the opportunity that it would be clear to them if it was an issue.

Currently they are a tenant and falling behind on payment so you can use that as your reason, and you can start the eviction process. however you need to check state laws when it comes to applications for rent, because you can not discriminate against child support, it is considered legal income. this is from NJ site, but other states do follow this.http://www.nj.gov/lps/dcr/housing.html so be careful on who you turn away, make sure you set up a criteria as Account Closed mentions.

This monetary policy is intended to lower interest rates. essentiallywhen you print currency your devaluing it causing prices to increase (more dollars chasing fewer goods)also lowering interest rates has a stimulative effect to increase pricing because people borrow moreAnd it will make consumer goods and asset prices more expensiveThe people that survive and thrive during inflation are the ones that are buying assets and I believe low down payment loan programs are great for buyers just getting started and for buyers who already own property.

@William Coet The GPs are active and the LPs are passive.

Not sure how that is supposed to immediately stimulate the economy but that is what I've read.