Does this bother anyone else that BoA took a bail out, and is now distributing $$$ to deliquent home owners?

You just have to make sure that the distribution back into the accounts is equal to the percentage ownership/funded in the deal.  

If you make a prohibited transaction your entire IRA will be distributed with applicable taxes and penalties.

Any distribution will reduce the Due to Personal.

Preferably something where we can send financial statements, distribution info, and other data to our investors.

This could be to stop building new structures and re-purpose existing ones into residential, warehouse/distribution centers, etc. 

You'd be taking a distribution on a retirement account that has probably lost somewhere between 10-40% of it's value (depending on your investment spread).

In order to formulate that, they will survey the market for similar units and apply a market derived rental rate for the units to arrive at the potential gross income. 

Also, as it pertains to rate on investment distribution is it typical for a flat rate, flat rate plus lower profit sharing rate or no flat rate with a higher profit sharing ratio. 

This payout structure is typically defined in your "waterfall" which is a table detailing how the proceeds at sale are distributed and the waterfall should match the terms of the agreement and/or partnership.