UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the quarterly period ended March 31, 2010

	or

o	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

	For the transition period from _________ to _________

Commission File Number: 1-8356

DVL, INC.

(Exact name of registrant as specified in its charter)

Delaware		13-2892858
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

70 East 55th Street, New York, New York		10022
(Address of principal executive offices)		(Zip Code)

(212) 350-9900
(registrant’s telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes o No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). o Yes o No

Indicate by check mark whether the registrant is a large accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o	Accelerated filer o
Non-accelerated filer (Do not check if a smaller reporting company) o	Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes x No

The number of shares outstanding of the issuer’s classes of common equity, as of May 14, 2010 was:

Class		Number of Shares

Common Stock, $.01 par value		44,770,345

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DVL, INC. AND SUBSIDIARIES

INDEX

Part I	Financial Information:	Pages

	Item 1. – Financial Statements:

	Consolidated Balance Sheets – March 31, 2010 (unaudited) and December 31, 2009	2 – 3

	Consolidated Statements of Operations – Three Months Ended March 31, 2010 (unaudited) and 2009 (unaudited)	4 – 5

	Consolidated Statement of Shareholders’ Equity – Three Months Ended March 31, 2010 (unaudited)	6

	Consolidated Statements of Cash Flows – Three Months Ended March 31, 2010 (unaudited) and 2009 (unaudited)	7 – 8

	Notes to Consolidated Financial Statements (unaudited)	9 – 14

	Item 2. – Management’s Discussion and Analysis of Financial Condition and Results of Operations	15 – 20

	Item 3. – Quantitative and Qualitative Disclosures About Market Risk	20

	Item 4T. - Controls and Procedures	20

Part II	Other Information:

	Item 6. – Exhibits	21 – 25

	Signatures	26

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Part I – FINANCIAL INFORMATION

Item 1. Financial Statements

DVL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands)

	March 31,			December 31,
	2010			2009
	(unaudited)
ASSETS

Residual interests in securitized portfolios	$	40,805		$	42,699

Mortgage loans receivable from affiliated partnerships (net of unearned interest of $3,721 for 2010 and $4,037 for 2009)		13,308			13,326

Allowance for loan losses		(2,884	)		(2,884	)

Net mortgage loans receivable		10,424			10,442

Cash (including restricted cash of $269 for 2010 and $274 for 2009)		1,199			1,067

Investments
Real estate at cost (net of accumulated depreciation and
amortization of $1,618 for 2010 and $1,564 for 2009)		9,272			9,564

Affiliated limited partnerships (net of allowance for
losses of $375 for 2010 and 2009)		657			657

Net deferred tax asset		1,969			2,068

Other assets		1,682			1,762

Assets of discontinued operations		-			212

Total assets	$	66,008		$	68,471

(continued)

See notes to consolidated financial statements.

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DVL, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands except share data)

(continued)

	March 31,			December 31,
	2010			2009
	(unaudited)
LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Notes payable - residual interests	$	25,551		$	28,155
Underlying mortgages payable		2,545			2,708
Debt - other		10,544			10,694
Debt - affiliates		1,162			1,129
Interest rate swaps		174			176
Security deposits, accounts payable and accrued
liabilities (including deferred income of $210
for 2010 and $71 for 2009)		1,263			1,194
Total liabilities		41,239			44,056

Commitments and contingencies

Shareholders' equity:
Preferred stock, $10.00 par value, authorized, issued
and outstanding 100 shares		1			1
Preferred stock, $.01 par value, authorized 5,000,000
shares, issued and outstanding -0-		-			-
Common stock, $.01 par value, authorized 90,000,000
shares, issued and outstanding 44,770,345 for 2010 and
2009		448			448
Additional paid-in-capital		97,003			97,003
Deficit		(72,535	)		(72,861	)
Accumulated other comprehensive loss		(148	)		(176	)
Total shareholders' equity		24,769			24,415

Total liabilities and shareholders' equity	$	66,008		$	68,471

See notes to consolidated financial statements.

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DVL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands)

(unaudited)

	Three Months Ended
	March 31,

	2010			2009

Income from affiliates:

Interest on mortgage loans	$	486		$	528
Partnership management fees		60			53
Management fees		121			153
Transaction and other fees from partnerships		1			25
Distributions from partnerships		52			76

Income from others:

Interest income - residual interests		1,592			1,542
Net rental income (including depreciation and
amortization of $25 for 2010 and $50 for 2009)		128			66
Other income and interest		8			21

		2,448			2,464

Operating expenses:

General and administrative		480			584
Asset servicing fee - NPO Management LLC		195			195
Legal and professional fees		214			73
Provision for loan losses		-			100
Provision for impairment		245			-

Interest expense:

Underlying mortgages		50			64
Notes payable - residual interests		542			689
Affiliates		34			45
Others		213			344

		1,973			2,094

Income from continuing operations before income tax expense		475			370

Income tax expense		(99	)		-

Income from continuing operations		376			370

(Loss) income from discontinued operations - net of tax of $-0- in
both periods		(50	)		7

Net income	$	326		$	377

(continued)

See notes to consolidated financial statements.

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DVL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands)

(unaudited)

(continued)

	Three Months Ended
	March 31,

	2010		2009

Basic earnings per share:

Income from continuing operations	$	0.01	$	0.01
(Loss) income from discontinued operations		-		-

Net Income	$	0.01	$	0.01


Diluted earnings per share:
Income from continuing operations	$	0.01	$	0.01
(Loss) income from discontinued operations		-		-

Net Income	$	0.01	$	0.01


Weighted average shares outstanding - basic		44,770,345		44,770,345
Effect of diluted securities		55,317		34,445

Weighted average shares outstanding - diluted		44,825,662		44,804,790

See notes to consolidated financial statements.

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DVL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF SHAREHOLDERS’ EQUITY

(in thousands except share data)

														Accumulated
	Preferred Stock				Common Stock				Additional					Other
									Paid-In					Comprehensive					Comprehensive
	Shares		Amount		Shares		Amount		Capital		Deficit			Income (Loss)			Total		Income

Balance - January 1, 2010		100	$	1		44,770,345	$	448	$	97,003	$	(72,861	)	$	(176	)	$	24,415	$	-

Amortization of deferred loss on interest rate swap agreements		-		-		-		-		-		-			28			28		28

Net income		-		-		-		-		-		326			-			326		326

Balance - March 31, 2010		100	$	1		44,770,345	$	448	$	97,003	$	(72,535	)	$	(148	)	$	24,769	$	354

See notes to consolidated financial statements.

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DVL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

	Three Months Ended
	March 31,

	2010			2009

Cash flows from operating activities:

Continuing operations:
Net Income	$	326		$	377
Loss (gain) from discontinued operations		50			(7	)
Adjustments to reconcile income to net cash provided by
(used in) operating activities from continuing operations
Interest accretion on residual interests		(53	)		(59	)
Net decrease in accrued interest on debt		(5	)		(7	)
Depreciation and amortization		79			61
Provision for loan losses		-			100
Provision for impairment		245			-
Amortization of unearned interest on loans receivable		(316	)		(298	)
Net decrease in deferred tax asset		99			-
Net decrease in other assets		80			345
Net (decrease) increase in accounts payable, security deposits
and accrued liabilities		(70	)		156
Net increase in deferred income		139			100
Net cash provided by continuing operations		574			768

Discontinued operations:
(Loss) gain from discontinued operations		(50	)		7
Loss (gain) on sale of discontinued assets		50			(120	)
Net decrease in assets and liabilities of
discontinued operations		-			5
Cash used in discontinued operations		-			(108	)

Net cash provided by operating activities		574			660

(continued)

See notes to consolidated financial statements.

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DVL, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

(continued)

	Three Months Ended
	March 31,

	2010			2009

Cash flows from investing activities:

Collections on loans receivable	$	334		$	467
Principal collections on retained interests		1,427			388
Real estate capital improvements		(6	)		(6	)
Net proceeds from the sale of discontinued assets		162			595

Net cash provided by investing activities		1,917			1,444

Cash flows from financing activities:

Proceeds from new borrowings		-			4,250
Principal payments on debt		(112	)		(4,623	)
Payments of prepaid financing costs		-			(68	)
Payments on underlying mortgages payable		(163	)		(296	)
Payments on notes payable - residual interest		(2,084	)		(986	)
Payments related to debt redemptions		-			(5	)

Net cash used in financing activities		(2,359	)		(1,728	)

Net increase in cash		132			376
Cash, beginning of period		1,067			496

Cash, end of period	$	1,199		$	872

Supplemental disclosure of cash flow information:

Cash paid during the period for interest	$	813		$	972

Cash paid for income taxes	$	-		$	-

Supplemental disclosure of non-cash investing and
financing activities:
Residual interests in securitized portfolios -
increase / (decrease)	$	(520	)	$	498
Notes payable - residual interests -
increase / (decrease)	$	(520	)	$	498

See notes to consolidated financial statements.

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DVL, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Dollars in thousands unless otherwise noted

(except share and per share amounts)

1.	Basis of Presentation

DVL, Inc. (“DVL” or the “Company”) is a Delaware corporation headquartered in New York, New York. DVL is a commercial finance company which is primarily engaged in (a) the ownership of residual interests in securitized portfolios, (b) the ownership and servicing of a portfolio of secured commercial mortgage loans made to limited partnerships in which DVL serves as general partner, which we refer to as an Affiliated Limited Partnership, (c) the ownership of real estate and (d) the performance of real estate asset management and administrative services. In the opinion of DVL, the accompanying consolidated financial statements contain all adjustments (consisting of only normal accruals) necessary in order to present a fair presentation of the consolidated financial position of DVL and the consolidated results of its operations for the periods set forth herein. The results of the Company’s operations for the three months ended March 31, 2010 should not be regarded as indicative of the results that may be expected from its operations for the full year. For further information, refer to the consolidated financial statements and the accompanying notes included in DVL’s Annual Report on Form 10-K for the year ended December 31, 2009.

2.	Reclassifications

Certain amounts from 2009 have been reclassified to conform to the 2010 presentation.

3.	Residual Interests in Securitized Portfolios

The Company, through its wholly-owned consolidated subsidiary, S2 Holdings, Inc. (“S2”), owns 99.9% Class B member interests in Receivables II-A LLC, a limited liability company (“Receivables II-A”) and Receivables II-B, LLC, a limited liability company (“Receivables II-B”). The Class B member interests, which are consolidated into S2 for financial statement reporting purposes, entitle the Company to be allocated 99.9% of all items of income, loss and distribution of Receivables II-A and Receivables II-B. Receivables II-A and Receivables II-B receive all the residual cash flow from five securitized receivable pools after payment to the securitized note holders. The Company considered whether member interests should be considered variable interest entities, when consolidating S2’s ownership of its member interests and determined that S2’s member interests do not meet the definition of variable interest entities.

In accordance with the purchase agreements entered into with respect to the residual interests, adjustments are made to the receivables and notes payable based on the performance of the underlying periodic payment receivables, both increases and decreases, and could be material in the future. Permanent impairments are recorded immediately through results of operations. Favorable changes in future cash flows are recognized through results of operations as interest over the remaining life of the retained interest.

4.	Investments

Real Estate

The Owned Site-Kearny Property

The Company currently owns eight buildings totaling 347,000 square feet on eight and one half acres located in an industrial park in Kearny, NJ leased to various unrelated tenants (the “Owned Site”). The Owned Site represents a portion of the Passaic River Development area designated for redevelopment by the town of Kearny, New Jersey (the “Property”). The Company continues to lease such Property to multiple tenants until such time as it can redevelop the Property as described below.

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In connection with the redevelopment of the Kearny Property, on December 11, 2007, we entered into a Redeveloper Agreement with the Town of Kearny. Pursuant to the Redeveloper Agreement, the Town of Kearny designated us as the redeveloper of the Kearny Property. As redeveloper, we are obligated to redevelop the Kearny Property, at our expense, in accordance with the plans and specifications described therein, subject to review and approval of the Planning Board of the Town of Kearny. The initial plans and specifications provide for the development of up to approximately 150,000 square feet of retail space. The term of the Redeveloper Agreement along with our rights there under which were originally set to expire on December 31, 2009, was extended to May 1, 2011. If we are in default of any terms or conditions of the Redeveloper Agreement and do not cure within the appropriate time as set forth in the agreement (to the extent that a cure period is provided for such default), the Town of Kearny is afforded a number of rights including the right to terminate the Redeveloper Agreement.

The Company has capitalized costs exclusive of land and building, of $1,064 and $1,058 at March 31, 2010 and at December 31, 2009, respectively, related to the development of this project.

In order to undertake and complete the redevelopment of the Property, we will need to obtain additional construction financing and, additional loan and equity financing. Given the current economic conditions, there can be no assurance that any such additional financing will be obtained on acceptable terms or at all. Additionally, given the current economic conditions there can be no assurance that the redevelopment will occur in the five year period required under the Redevelopment Agreement or at all.

The Bogota Property

In October 2004, we entered into an agreement with Bogota Associates and Industrial Associates, the owners of the land underlying the Bogota, New Jersey leasehold, pursuant to which the leasehold was cancelled in consideration of the aforementioned partnerships agreeing to repay certain of our out-of-pocket expenses including real estate taxes and environmental remediation costs as well as $50 upon completion of a sale of the property to a third party. In addition, we own an 8.25% limited partner interest in one of these partnerships. As of March 31, 2010, the sale has not yet been consummated. The sale of the property is subject to environmental remediation which needs to be completed, which will require the Company to expend additional amounts in excess of the $721 previously expended. The Company cannot currently estimate the future amounts to be expended. There can be no assurance that the sale will be consummated and the Company will receive its reimbursements. The third party continues to lease space. The net expenses to be reimbursed to us are approximately $721 as of March 31, 2010 not including the $50 fee or any amounts to be received as a limited partner.

Foreclosed Properties

The following table identifies the properties we have acquired through foreclosure and which were held at March 31, 2010.

Location	Sq. Ft.	Acreage	Tenant

Brent, AL	34,875	5.34	Vacant
Fort Edward, NY (1)	31,000	6.00	Vacant
Soddy Daisy, TN	56,127	5.91	Vacant
Kennedy, TX	44,752	5.52	Vacant

(1)

In 2002 the Company acquired the Fort Edward property through foreclosure from an affiliated limited partnership. The Company subsequently discovered that the property had contamination which required environmental remediation. To date the Company has expended $1,050 for environmental remediation costs. The environmental remediation will require the Company to expend additional amounts in excess of the amounts previously expended. The Company cannot currently estimate the future amounts to be expended. The property cannot be sold or otherwise developed until the environmental remediation is completed. The Company has filed a lawsuit against the parties it believes are responsible for causing the environmental contamination. The litigation is ongoing, however there can be no assurance the Company will be successful in recovering any funds as a result of the litigation.

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5.	Transactions with Affiliates

Management Fee Income Earned

The Company has provided management, accounting, administrative services and office space to certain entities which are affiliated with NPO Management, LLC (“NPO”) which are entities engaged in real estate ownership, lending and management. As compensation, the Company recorded fees of $121 and $153 during the three months ended March 31, 2010 and 2009, respectively

Management and Other Fees and Expenses Incurred

The Company incurred fees to NPO of $195 for each of the three month periods ended March 31, 2010 and 2009, under an Asset Servicing Agreement (the “Asset Servicing Agreement”) between the Company and NPO, pursuant to which NPO provides the Company with asset management, advisory and administrative services relating to the assets of the Company and its affiliated limited partnerships. During 2010 and 2009, the Company provided office space under the Asset Servicing Agreement to NPO consisting of approximately 500 square feet of the Company’s New York location.

The Millennium Group, an affiliate of NPO, received approximately $27 for each of the three month periods ended March 31, 2010 and 2009, respectively, representing additional management and analytical services.

Interest expense on amounts due to Pemmil Funding LLC, members of which are our President and Chief Executive Officer and members of NPO and their affiliates, with respect to its loan to DVL were $34 and $45 for the three months ended March 31, 2010 and 2009, respectively.

6.	Commitments, Contingent Liabilities and Legal Proceedings

Pursuant to the terms of the Limited Partnership Settlement, a fund has been established into which DVL is required to deposit 20% of the cash flow received on certain of its mortgage loans from Affiliated Limited Partnerships after repayment of certain creditors, 50% of DVL’s receipts from certain loans to, and general partnership investments in, Affiliated Limited Partnerships and a contribution of 5% of DVL’s net income (based on accounting principles generally accepted in the United States of America) in the years 2004 through 2012 subject to certain adjustments.

7.	Cash Flow Hedges

The Company uses derivatives to manage risks related to interest rate movements on its floating rate loans. Interest rate swap contracts designated and qualifying as cash flow hedges are reported at fair value, the Company has established accounting and reporting standards for derivative instruments. Specifically, all derivatives are recognized as either assets or liabilities on the balance sheet and those instruments are measured at fair value. As of January 1, 2010, the Company decided to discontinue the use of hedge accounting. Accordingly, changes in the fair value of derivatives will be reported as a component of interest expense in the Consolidated Statements of Operations. Additionally, the balance that existed in other comprehensive income in the Consolidated Statement of Shareholders’ Equity as of December 31, 2009 will be amortized through the income statement over the remaining lives of the swap transactions on a straight-line basis.

The following table summarizes the notional values of the Company’s derivative financial instruments. The notional value provides an indication of the extent of the Company’s involvement in these instruments on March 31, 2010, but does not represent exposure to credit, interest rate or market risks.

Hedge Type	Notional Value	Rate	Termination Date	Fair Value

Interest rate swap agreement	$ 3,689	5.94%	July 1, 2011	$ (148)

Interest rate swap agreement	$ 1,814	6.09%	February 1, 2014	$ (26)

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8.	Earnings per share

The following table presents the computation of basic and diluted per share data for the three months ended March 31, 2010 and 2009.

	Three Months Ended March 31,

	2010						2009

			Weighted Average						Weighted Average
			Number of		Per Share				Number of		Per Share
	Amount		Shares		Amount		Amount		Shares		Amount

Basic EPS,
Net income available to common shareholders	$	326		44,770,345	$	0.01	$	377		44,770,345	$	0.01

Effect of dilutive stock options		-		55,317				-		34,445

Diluted EPS,
Net income available to common shareholders	$	326		44,825,662	$	0.01	$	377		44,804,790	$	0.01

9.	Segment Information

The Company has two reportable segments; real estate and residual interests. The real estate business is comprised of real estate assets, mortgage loans on real estate, real estate management and investments in affiliated limited partnerships which own real estate. The residual interests business is comprised of investments in residual interests in securitized receivables portfolios. The corporate/other net income of $2 in 2010 includes $99 of deferred income tax expense.

	Three Months Ended
	March 31,

	2010			2009

Revenues
Residual interests	$	1,592		$	1,542
Real estate		848			901
Corporate / other		8			21
Total consolidated revenues	$	2,448		$	2,464

Net income (loss)
Residual interests	$	1,043		$	846
Real estate		(669	)		(562	)
Corporate / other		2			86
Total income from continuing operations	$	376		$	370

	As of			As of
	March 31, 2010			December 31, 2009

Assets
Residual interests	$	40,805		$	42,699
Real estate		23,234			23,704
Corporate / other		1,969			2,068
Total consolidated assets	$	66,008		$	68,471

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10.	Fair Value of Financial Instruments

Assets and Liabilities Recorded at Fair Value

The Company uses a three-level fair value hierarchy that categorizes assets and liabilities measured at fair value based on whether the inputs utilized in the valuation are observable: Level 1 - inputs are quoted prices in active markets for the identical assets or liabilities; Level 2 - inputs other than quoted prices that are directly or indirectly observable through market-corroborated inputs; and Level 3 - inputs are unobservable, or observable but cannot be market-corroborated, requiring the Company to make assumptions about pricing by market participants. The following table sets forth information for the Company’s financial assets and liabilities that are measured at fair value on a recurring basis:

			March 31, 2010
Description	Carrying Value		Level 1		Level 2		Level 3

Liabilities:

Interest Rate Swaps	$	174	$	-	$	174	$	-


			December 31, 2009
Description	Carrying Value		Level 1		Level 2		Level 3

Liabilities:

Interest Rate Swaps	$	176	$	-	$	176	$	-

Fair Value of Financial Instruments

In addition to the above liabilities which are recorded at fair value, the Company is also required to disclose the fair value of financial instruments, whether or not recognized in the financial statements, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are estimated using present value or other valuation techniques. Those assumptions are significantly affected by the assumptions used, including the estimated market discount rate and the estimated future cash flows. The following table details the fair value of the Company’s financial instruments:

	March 31, 2010				December 31, 2009
	Carrying Value		Fair Value		Carrying Value		Fair Value

Residual Interests in Securitized Portfolios	$	40,805	$	40,689	$	42,699	$	41,203

Notes Payable - Residual Interests		25,551		25,551		28,155		28,155

11.	Discontinued Operations

During 2010 and 2009, the Company disposed of certain real estate properties. The sale and operation of these properties for all periods presented have been recorded as discontinued operations in compliance with our accounting policy.

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As of March 31, 2010, the activities of our Iowa Park, Texas property which was previously foreclosed on have been included in discontinued operations. This property was sold during January 2010 for net proceeds of $162 which resulted in a loss from the sale of discontinued operations of approximately $50. As of March 31, 2009, the activities of four foreclosed properties have been included in discontinued operations.

Discontinued operations for the three months ended March 31, 2010 and 2009 are summarized as follows:

	Three Months Ended March 31,

	2010			2009

Income	$	-		$	16
Expenses		-			129

Loss from discontinued operations before gain on sale		-			(113	)

(Loss) gain on sale		(50	)		120

(Loss) gain from discontinued operations	$	(50	)	$	7

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ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS

OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(in thousands)

This Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 contains statements which constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Those statements include statements regarding the intent, belief or current expectations of DVL, Inc., a Delaware corporation and its management team. DVL’s shareholders and prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those projected in the forward-looking statements. Such risks and uncertainties include, among other things, general economic conditions and other risks and uncertainties that are discussed herein and in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009. All references to “DVL”, “we”, “us”, “our”, or the “Company” refer to DVL, Inc. and its consolidated subsidiaries.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with the consolidated financial statements and accompanying financial statement notes appearing elsewhere herein and in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2009.

None of the recently adopted accounting standards had a material effect on the Company’s consolidated financial statements.

We are a commercial finance company which is primarily engaged in (a) the ownership of residual interests in securitized portfolios, (b) the ownership and servicing of a portfolio of secured commercial mortgage loans made to Affiliated Limited Partnerships, (c) the ownership of real estate and (d) the performance of real estate asset management and administrative services.

We expect that anticipated cash flow provided by operations and other sources will be sufficient to meet our current cash requirements through at least the next twelve months. We have in the past and expect in the future to continue to be required to augment our cash flow provided by operations with additional cash generated from either the sale or refinancing of portions of our assets and/or borrowings. We currently do not generate sufficient cash flow from operations to meet our cash requirements or to permit us to pay a dividend on our common stock. Excluding proceeds generated from the sale of assets, our cash flow would have been a net decrease in cash of $30 for the three months ended March 31, 2010. Cash flow in any given quarter is not necessarily indicative of the cash flow from any other quarter because of the seasonality of cash receipts and disbursements.

Many of the mortgages currently held by us have underlying loans or are pledged to secure debt, which are serviced by much if not all of the cash flow generated from the repayment of our mortgage portfolio. During 2008 and 2009, we foreclosed on six of our mortgage loans due to the Affiliated Limited Partnerships’ failure to pay amounts due on such loans. At the time of the foreclosure, the mortgages had a combined carrying value of $2,760. During the quarter ended March 31, 2010 we sold one of these properties for net proceeds of $162, which resulted in a loss of $50. During the quarter ended March 31, 2009, we sold one of these properties and received net proceeds of $595, which resulted in a gain of $120. All of the properties are being held for lease or sale and at March 31, 2010 remain vacant and unsold. As a result, we are obligated for all costs at these properties including property taxes and insurance. Considering the status of the property markets and the location of our properties there can be no assurance regarding future leasing or sale of the properties.

Our current strategy is to continue to maximize the value of our assets and meet our short-term working capital needs by continuing to manage, administer and service our existing portfolio and develop, lease and refinance or sell an 8.5 acre retail site located in Kearny, NJ which we have owned for many years and for which we have been designated as developer by the Town of Kearny. However, because of the current economic conditions, the development of the Kearny property will take longer than originally projected. In the current economic market there is no assurance that the project will be successful or that the redevelopment can be completed. In addition, in order for us to undertake the redevelopment of such property, we need to obtain construction financing, and, additional loan and equity financing. Given current economic conditions, there can be no assurance that any such financing will be obtained on acceptable terms or at all.

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CRITICAL ACCOUNTING POLICIES AND ESTIMATES

There have been no material changes to the Critical Accounting Policies and Estimates described in our Annual Report on Form 10-K for the year ended December 31, 2009 filed with the SEC on March 31, 2010.

RESULTS OF OPERATIONS

Three Months Ended March 31, 2010 Compared to Three Months Ended March 31, 2009

We had income or losses from continuing operations from each of our business segments as follows:

	2010			2009

Residual interests segment	$	1,043		$	846
Real estate segment		(669	)		(562	)
Corporate / other		2			86
Income from continuing operations	$	376		$	370

Interest income on mortgage loans from affiliates decreased to $486 as a result of principal amortization on certain mortgage loans. Interest expense decreased as a result of anticipated loan maturities and the application of a greater percentage of each payment to mortgage principal balances.

	2010		2009

Interest on mortgage loans	$	486	$	528
Interest expense on underlying mortgages	$	50	$	64

Interest income on residual interest increased due to favorable changes in future cash flow which are recognized as interest over the remaining life of the retained interests. Interest expense on the related notes payable decreased as a result of principal amortization.

	2010		2009

Interest income on residual interests	$	1,592	$	1,542
Interest expense on related notes payable	$	542	$	689

Net rental income increased primarily as a result of increased gross rental income and lower expenses on vacant properties held for lease.

	2010		2009

Net rental income from others	$	128	$	66
Gross rental income from others	$	320	$	306

General and administrative expenses decreased primarily as a result of a decrease in the number of employees and a reduction in overall employment costs.

	2010		2009

General and administrative	$	480	$	584

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The asset servicing fee paid to NPO Management LLC, the entity which is engaged by us to provide us with management services, is calculated pursuant to the terms of the Asset Servicing Agreement, which calls for an adjustment to reflect changes in the consumer price index.

	2010		2009

Asset servicing fee	$	195	$	195

Legal and professional fees increased primarily as a result of hiring RESIG as our outsourced accounting function and a change in our independent registered public accounting firm during the fourth quarter of 2009.

	2010		2009

Legal and professional	$	214	$	73

We recorded an additional provision for losses on our mortgage portfolio of $100 for the three months ended March 31, 2009 due to underlying changes in the value of the collateral. No such loss was recorded for the three months ended March 31, 2010.

	2010		2009

Provision for loan losses	$	0	$	100

We recorded a provision for impairment on our real estate portfolio of $245 for the three months ended March 31, 2010 due to a potential transaction on the Brent, Alabama property.

	2010		2009

Provision for impairment	$	245	$	0

Interest expense to affiliates decreased for the three months ended March 31, 2010 compared to the three months ended March 31, 2009 as a result of decreased amount of outstanding debt owed to affiliates.

	2010		2009

Interest expense to affiliates	$	34	$	45

Interest expense relating to other debts decreased for the three months ended March 31, 2010 as compared to the three months ended March 31, 2009 as a result of deferred financing costs being fully amortized.

	2010		2009

Interest expense – others	$	213	$	344

We recognized $99 of deferred income tax expense for the three months ended March 31, 2010. The deferred tax impact resulted primarily from the deferred expense related to the changes in the components of deferred tax assets. No such deferred income tax was recognized for the three months ended March 31, 2009.

	2010		2009

Income tax expense	$	99	$	0

Discontinued operations consist of the operations of business segments we consider as held for sale or have disposed of.

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	2010			2009

(Loss) gain from discontinued operations	$	(50	)	$	7

Liquidity and Capital Resources

Our cash balance was $1,199 at March 31, 2010, compared with $1,067 at December 31, 2009. This increase was due to $574 of net cash provided by operating activities and $1,917 of net cash provided by investing activities, offset by $2,359 of net cash used in financing activities.

Our cash flow from operating activities is generated principally from rental income from our ownership of real estate, distributions in connection with our residual interests in securitized portfolios, interest on our mortgage portfolio, management fees and transaction and other fees received as a result of the sale and/or refinancing of partnership properties and mortgages.

Our cash flow from investing activities is generated primarily from principal collections on retained interests and to a lesser extent from collections of loan receivables and net proceeds from the sale of our Iowa Park, Texas property.

Our cash used in financing activities consisted primarily of payments on notes payable relating to residual interests and to a lesser extent principal payments on our debt and underlying mortgages.

With respect to our residual interests, pursuant to the terms of the purchase agreements, there are annual minimum and maximum levels of cash flow that we are entitled to retain, after the payment of interest and principal on the notes payable. Effective January 1, 2010 through the final payment to the holder of the notes payable (expected to be 2014 and 2018 for Receivables II-A and Receivables II-B, respectively), the annual minimum and maximum levels are $1,050 and $1,150, respectively.

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Outstanding Financings

Outstanding loans payable as of March 31, 2010 which are scheduled to become due through 2014 are as follows:

Creditor	Original Loan Amount	Outstanding Balance Including Accrued Interest at March 31, 2010	Interest Rate	Annual Debt Service	Maturity	Amount due at Maturity

Pemmil (1)	$ 2,500	$ 1,162	12%	(1)	12/31/11	$ 1,162

Unaffiliated Bank (2)	$ 2,200	$ 1,824	LIBOR + 4%	(2)	02/01/14	$ -0-

Unaffiliated Bank (3)	$ 1,500	$ 1,357	6.25%	(3)	06/05/12	$ 1,050

Unaffiliated Bank (4)	$ 6,450	$ 3,498	>of 6% or Prime +1%	(4)	01/21/11	$ 3,498

Unaffiliated Bank	$ 250	$ 157	7.5%	$60	02/01/13	$ -0-

Unaffiliated Bank (5)	$ 3,800	$ 3,708	LIBOR + 2.1%	(5)	07/01/11	$ 3,598

(1)

Pemmil is an affiliated entity. Loan requires payments only to the extent of 50% of the proceeds from capital transactions. If proceeds are insufficient to satisfy monthly interest payments, interest is added to principal. Loan is secured by a subordinated lien on our interest in S-2 Holdings Inc. and a first priority lien on two mortgages.

(2)	Loan is secured by first priority interest in four first mortgages and contains a restriction on pledging mortgages for additional debt. Requires monthly payments of interest plus a fixed principal payment of $39.

(3)	Loan requires monthly payments of interest only as well as an annual principal payment of $100.

(4)	Initial advance under the loan was $4,250 with an additional $2,200 to be advanced upon the satisfaction of certain conditions, if at all. Requires payments of interest only. One year extension option subject to certain terms and conditions.

(5)	Secured by a certain building on the Owned-Site. Requires annual debt service of approximately $292.

We use derivatives to manage risks related to interest rate movements on our floating rate debt. Interest rate swap contracts designated and qualifying as cash flow hedges are reported at fair value. During September 2008, the Company entered into an interest rate swap agreement related to one of its floating rate loans. Valued separately, the interest rate swap agreement represents a liability as of March 31, 2010, in the amount of $148. During April 2009, the Company entered into a second interest rate swap agreement related to another of its floating rate loans. Valued separately, the interest rate swap agreement represents a liability as of March 31, 2010 in the amount of $26. This value represents the fair value of the current difference in interest paid and received under the swap agreements over the remaining term of the agreements. As of January 1, 2010 we decided to discontinue the use of hedge accounting. Accordingly, changes in the fair value of derivatives will be reported as a component of interest expense in the consolidated statements of operations. Additionally, the balance that existed in other comprehensive income in the Consolidated Statement of Shareholders’ Equity as of December 31, 2009 will be amortized through the income statement over the remaining lives of the swap transactions on a straight-line basis. The following table summarizes the notional values of our derivative financial instruments. The notional value provides an indication of the extent of our involvement in these instruments on March 31, 2010, but does not represent exposure to credit, interest rate or market risks.

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Hedge Type	Notional Value	Rate	Termination Date	Fair Value

Interest rate swap agreement	$ 3,689	5.94%	July 1, 2011	$ (148)

The outstanding principal of the Note is payable in monthly installments of $5 beginning on August 1, 2008 and continuing on the first day of each month thereafter. Annual debt service is approximately $292. The final monthly installment of the Note is due and payable at maturity on July 1, 2011 or before, at the option of the Bank upon any defaults after the expiration of all applicable notice and cure periods as specified therein.

Hedge Type	Notional Value	Rate	Termination Date	Fair Value

Interest rate swap agreement	$ 1,814	6.09%	February 1, 2014	$ (26)

The outstanding principal of the Note is payable in monthly installments of $39 beginning on June 1, 2009 and continuing on the first day of each month thereafter. The final monthly installment of the Note is due and payable at maturity on February 1, 2014 or before, at the option of the Bank upon any defaults after the expiration of all applicable notice and cure periods as specified therein.

IMPACT OF INFLATION AND CHANGES IN INTEREST RATES

Our portfolio of mortgage loans made to Affiliated Limited Partnerships consists primarily of loans made at fixed rates of interest. Therefore, increases or decreases in market interest rates are generally not expected to have an effect on our earnings. Other than as a factor in determining market interest rates, inflation has not had a significant effect on our net income.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting Company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 (the “Exchange Act”) and are not required to provide the information under this item.

ITEM 4T. CONTROLS AND PROCEDURES

(a)	Disclosure Controls and Procedures

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in company reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act, is accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.

As required by Rule 13a-15 under the Exchange Act, we are required to carry out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. This evaluation was carried out with the participation of our principal executive officer and principal financial officer. Based upon that evaluation, our principal executive officer concluded that our disclosure controls and procedures were effective at a reasonable assurance level such that the information relating to us and our consolidated subsidiaries required to be disclosed in our Exchange Act reports (i) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (ii) is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.

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(b)	Changes in Internal Control Over Financial Reporting.

There has been no change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934) during the period ended March 31, 2010 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 6. Exhibits

Exhibits required by Item 601 of Regulation S-K are filed herewith or incorporated herein by reference and are listed in the attached Exhibit Index.

EXHIBIT INDEX

3.	ARTICLES OF INCORPORATION AND BY-LAWS.

(a)	DVL’s Certificate of Incorporation, filed March 28, 1977 (Incorporated by reference to Exhibit 6(d) to DVL’s Form S-1 Registration Statement No. 2-58847 dated April 28, 1977.)

(b)	DVL’s Certificate of Amendment to Certificate of Incorporation, filed July 13, 1977 (Incorporated by reference to Exhibit 6(e) to Amendment No. 1 to DVL’s Form S-1 Registration Statement No. 2-58847 dated August 25, 1977.)

(c)	DVL’s Certificate of Amendment to Certificate of Incorporation, filed August 3, 1982. (Incorporated by reference to Exhibit 3(c) to DVL’s Form 10-K for the fiscal year ended December 31, 1982.)

(d)	DVL’s Certificate of Amendment to Certificate of Incorporation, filed May 27, 1983. (Incorporated by reference to Exhibit 3(d) to DVL’s Form 10-K for the fiscal year ended December 31, 1983.)

(e)	DVL’s Certificate of Amendment to Certificate of Incorporation, filed July 24, 1987. (Incorporated by reference to Exhibit 3(e) to DVL’s Form 10-K for the fiscal year ended December 31, 1987.)

(f)	DVL’s Certificate of Amendment to Certificate of Incorporation, filed December 20, 1983. (Incorporated by reference to DVL’s Form 10-K for the fiscal year ended December 31, 1993.)

(g)	DVL’s Certificate of Amendment to Certificate of Incorporation, filed December 4, 1995. (Incorporated by reference to DVL’s proxy statement dated October 13, 1995 – Exhibit A.)

(h)	DVL’s Certificate of Amendment to Certificate of Incorporation, filed September 17, 1996. (Incorporated by reference to DVL’s proxy statement dated July 31, 1996 – Exhibit I.)

(i)	DVL’s Certificate of Amendment to Certificate of Incorporation, filed February 7, 2000. (Incorporated by reference to DVL’s Form 10-K for the fiscal year ended December 31, 1999.)

(j)	DVL’s By-Laws, as in full force and effect at all times since March 28, 1977. (Incorporated by reference to Exhibit 3(c) to DVL’s Form 10-K for the fiscal year ended December 31, 1980.)

(k)	DVL’s First Amendment to By-Laws dated as of January 1, 1994. (Incorporated by reference to Exhibit 3(d) to DVL’s Form 10-K for the fiscal year ended December 31, 1995.)

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(l)	DVL’s Second Amendment to By-Laws, effective September 17, 1996. (Incorporated by reference to DVL’s proxy statement dated July 31, 1996 – Exhibit J.)

(m)	DVL’s Third Amendment to the By-Laws, effective February 1, 2000. (Incorporated by reference to DVL’s Form 10-K for the fiscal year ended December 31, 1999.)

10.	MATERIAL CONTRACTS.

10.1	Stipulation of Settlement of IN RE KENBEE LIMITED PARTNERSHIP LITIGATION dated August 12, 1992. (Incorporated by reference to Exhibit 10(b)(25) to DVL’s Form 10-K for the fiscal year ended December 31, 1995.)

10.2	Stipulation of Partial Settlement and Order IN RE DEL-VAL FINANCIAL CORPORATION SECURITIES LITIGATION Master File #MDL872. (Incorporated by reference to Exhibit 10(b)(28) to DVL’s Form 10-K for the fiscal year ended December 31, 1995.)

10.3	Asset Servicing Agreement between DVL, PSC, KENBEE Realty and NPO dated as of March 27, 1996. (Incorporated by reference to Exhibit 10(b)(34) to DVL’s Form 10-K for the fiscal year ended December 31, 1995.)

10.4	Asset Servicing Agreement between DVL and NPO. (Incorporated by reference to DVL’s Proxy Statement dated July 31, 1996 - Exhibit C.)

10.5	Common Stock Warrant issued by DVL to NPO. (Incorporated by reference to DVL’s Proxy Statement dated July 31, 1996 - Exhibit F.)

10.6	DVL 1996 Stock Option Plan. (Incorporated by reference to DVL’s Proxy Statement dated July 31, 1996 – Exhibit K.)

10.7	Amendment to DVL 1996 Stock Option Plan effective February 1, 2000. (Incorporated by reference to DVL’s Form 10-K for the fiscal year ended December 31, 1999.)

10.8	Promissory Note dated as of October 20, 1997, in the original Principal amount of $1,760,000 from DVL to Blackacre. (Incorporated by reference to Exhibit 10.2 to DVL’s Form 10-Q for the quarter ended September 30, 1997.)

10.9	Subordination Agreement, dated as of October 20, 1997 among DVL, Blackacre, NPM, and NPO. (Incorporated by reference to Exhibit 10.3 to DVL’s Form 10-Q for the quarter ended September 30, 1997.)

10.10

Agreement among Members dated April 10, 1998, by and among Blackacre, PNM, Pemmil and DVL. (Incorporated by reference to DVL’s Form 10-K for the fiscal year ended December 31, 1998.)

10.11

Management Services Agreement dated June 1, 1998, by and between DVL and PBD Holdings, L.P. (“PBD”). (Incorporated by reference to DVL’s Form 10-K for the fiscal year ended December 31, 1998.)

10.12

Loan Agreement, Promissory Note and Pledge, Collateral Agreement and Security Agreement, each dated as of March, 2000, each relating to a loan from Pennsylvania Business Bank to DVL in the original principal amount of $1,000,000. (Incorporated by reference to DVL’s Form 10-K for the quarter ended June 30, 2000.)

10.13

Term Loan Note and Term Loan Agreement, each dated as of March, 2000, each relating to a loan from Bank Philadelphia to DVL in the original principal amount of $1,450,000. (Incorporated by reference to DVL’s Form 10-Q for the quarter year ended June 30, 2000.)

10.14

First Amendment to Loan Agreement, Pledge Agreement, Promissory Note and other documents dated August 2000, relating to a loan from Pennsylvania Business Bank to DVL, Inc. in the original principal amount of $1,000,000. (Incorporated by reference to DVL’s Form 10-Q for the quarter ended September 30, 2000.)

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10.15

Purchase Agreement, dated April 27, 2001, by and among J.G. Wentworth Receivables II LLC, Receivables II-A LLC, Receivables II-A Holding Company, LLC, J.G. Wentworth S.S.C., Limited Partnership, J.G. Wentworth Management Company, Inc., S2 Holdings, Inc., and DVL, Inc. for the purchase of residual interests in securitized portfolios. (Incorporated by reference to DVL’s Form 8-K dated May 9, 2001.)

10.16

Non-Negotiable, Secured Purchase Money Promissory Note dated April 27, 2001 in the original principal amount of $22,073,270 payable to the order of J.G. Wentworth S.S.C., Limited Partnership from S2 Holdings, Inc. (Incorporated by reference to DVL’s Form 8-K dated May 9, 2001.)

10.17

Non-Negotiable, Secured Purchase Money Promissory Note dated April 27, 2001 in the original principal amount of $3,252,730 payable to the order of J.G. Wentworth S.S.C., Limited Partnership from S2 Holdings, Inc. (Incorporated by reference to DVL’s Form 8-K dated May 9, 2001.)

10.18

Guaranty and Surety Agreement dated April 27, 2001 by and from DVL, Inc. in favor of J.G. Wentworth S.S.C., Limited Partnership from S2 Holdings, Inc. (Incorporated by reference to DVL’s Form 8-K dated May 9, 2001.)

10.19

Common Stock Warrant dated April 27, 2001. (Incorporated by Reference to DVL’s Form 8-K dated May 9, 2001.)

10.20

Purchase Agreement, dated as of August 20, 2001, by and among J.G. Wentworth Receivables II LLC, Receivables II-B LLC, Receivables II-B Holding Company LLC, J.G. Wentworth S.S.C. Limited Partnership, J.G. Wentworth Management Company, Inc., S2 Holding, Inc. and DVL, Inc. for the purchase of residual interests in securitized portfolios. (Incorporated by reference to DVL’s Form 8-K dated August 28, 2001.)

10.21

Non-Negotiable, Secured Purchase Money Promissory Note dated as of August 15, 2001 in the original principal amount of $7,931,560.00 payable to the order of J.G. Wentworth S.S.C., Limited Partnership from S2 Holdings, Inc. (Incorporated by reference to DVL’s Form 8-K dated August 28, 2001.)

10.22

Non-Negotiable, Secured Purchase Money Promissory Note dated as of August 15, 2001 in the original principal amount of $1,168,440.00 payable to the order of J.G. Wentworth S.S.C., Limited Partnership from S2 Holdings, Inc. (Incorporated by reference to DVL’s Form 8-K dated August 28, 2001.)

10.23

Guaranty & Surety Agreement dated as of August 20, 2001 by and from DVL, Inc. in favor of J.G. Wentworth S.S.C., Limited Partnership. (Incorporated by reference to DVL’s Form 8-K dated

August 28, 2001.)

10.24

Pledge Agreement, dated as of August 20, 2001 by S2 Holdings, Inc. for the benefit of J.G. Wentworth S.S.C. Limited Partnership. (Incorporated by reference to DVL’s Form 8-K dated August 28, 2001.)

10.25

Common Stock Warrant dated as of August 15, 2001. (Incorporated by reference to DVL’s Form 8-K dated August 28, 2001.)

10.26

Client Service Agreement between the Company and Compensation Solutions, Inc. dated March 28, 2003. (Incorporated by reference to DVL’s Form 10-Q for the quarter ended March 31, 2003.)

10.27

$1,450,000 Promissory Note issued by DVL, Inc. in favor of Pennsylvania Business Bank, dated April 28, 2004. (Incorporated by reference to Exhibit 10.1 to DVL’s Form 10-Q for the quarter ended June 30, 2004.)

10.28

Loan Agreement between DVL, Inc. and Pennsylvania Business Bank dated April 28, 2004. (Incorporated by reference to Exhibit 10.2 to DVL’s Form 10-Q for the quarter ended June 30, 2004.)

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10.29

Promissory Note, dated December 28, 2004, issued by DVL Mortgage Holdings, LLC and DVL, Inc. in favor of Harleysville National Bank and Trust Company. (Incorporated by reference to Exhibit 10.29 to DVL’s Form 10-KSB filed for the year ended December 31, 2005.)

10.30

Assignment Agreement, dated as of December 28, 2004, between Rumson Mortgage Holdings LLC and DVL Mortgage Holdings LLC, Inc. (Incorporated by reference to Exhibit 10.30 to DVL’s Form 10-KSB filed for the year ended December 31, 2005.)

10.31

Loan Agreement, dated December 28, 2004, by and among Harleysville National Bank and Trust Company and DVL Mortgage Holdings LLC. (Incorporated by to Exhibit 10.31 to DVL’s Form 10-KSB filed for the year ended December 31, 2005.)

10.32

Stock Repurchase Agreement dated March 16, 2007 between DVL, Inc., Blackacre Bridge Capital, L.L.C. and Blackacre Capital Group, L.P. (Incorporated by reference to Exhibit 10.33 to DVL’s Form 10-KSB for fiscal year ended December 31, 2006.)

10.33

Loan and Security Agreement, dated June 5, 2006 by and between DVL, Inc. and First Penn Bank. (Incorporated by reference to Exhibit 10.1 to DVL’s Form 10-QSB filed on August 14, 2006.)

10.34

Change in Terms Agreement, dated September 1, 2006 by and between DVL, Inc. and Pennsylvania Business Bank. (Incorporated by reference to Exhibit 10.1 to DVL’s Form 10-QSB filed on November 14, 2006.)

10.35

Agreement between the Town of Kearny, New Jersey and DVL, Inc. approved on October 24, 2006. (Incorporated by reference to Exhibit 10.34 to DVL’s Form 10-KSB for the fiscal year ended December 31, 2006.)

10.36

Agreement of Sale dated April 27, 2006 by and between DVL, Inc. and 354 Broadway Associates, LLC. (Incorporated by reference to Exhibit 10.38 to DVL’s Form 10-KSB for the fiscal year ended December 31, 2006.)

10.37

First Amendment of Agreement of Sale dated June 28, 2006 by and between DVL, Inc. and 354 Broadway Associates, LLC. (Incorporated by reference to Exhibit 10.39 to DVL’s Form 10-KSB for the fiscal year ended December 31, 2006.)

10.38

Second Amendment of Agreement of Sale dated September 25, 2006 by and between DVL, Inc. and 354 Broadway Associates, LLC. (Incorporated by reference to Exhibit 10.40 to DVL, Inc.’s Form 10-KSB for the fiscal year ended December 31, 2006.)

10.39

Loan Extension Agreement between Pennsylvania Business Bank and Del Toch, LLC, Delborne Land Company LLC, and Delbrook Holding, LLC dated March 2, 2007. (Incorporated by reference to Exhibit 10.1 to DVL’s Form 10-QSB for the quarter ended March 31, 2007.)

10.40

Loan Extension Agreement between Pennsylvania Business Bank and Del Toch, LLC, Delborne Land Company, LLC and Delbrook Holding LLC, dated June 1, 2007. (Incorporated by reference to Exhibit 10.1 to DVL’s Form 10-QSB for the quarter ended June 30, 2007.)

10.41

Construction Loan Agreement dated August 2007 between DVL Kearny Holdings LLC, CapMark Bank, Urban Development Fund II LLC, and Paramount Community Development Fund. (Incorporated by reference to Exhibit 10.43 to DVL’s Form 10-KSB for the year ended December 31, 2007.)

10.42

Asset Servicing Extension Agreement dated October 31, 2007 between DVL, Inc., Professional Services Corporation, K.M. Realty Corporation, and NPO Management, LLC. (Incorporated by reference to Exhibit 10.44 to DVL’s Form 10-KSB for the year ended December 31, 2007.)

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10.43

First Amendment to Lease dated August 10, 2007 to that certain lease dated November 7, 2002 between DVL, Inc. and Amstad Property, Inc. (Incorporated by reference to Exhibit 10.45 to DVL’s Form 10-KSB for the year ended December 31, 2007.)

10.44

Construction Loan Agreement between Capmark Bank, Urban Development Fund II, LLC, Paramount Community Development Fund, LLC, and DVL Kearny Holdings, LLC (dated August 14, 2007). (Incorporated by reference to DVL’s Form 10-QSB for the quarter ended September 30, 2007.)

10.45

Asset Servicing Extension Agreement between DVL, Inc., Professional Services Corporation, KM Realty Corporation and NPO Management, LLC dated October, 2007. (Incorporated by reference to DVL’s Form 10-QSB for the quarter ended September 30, 2007.)

10.46

Redeveloper Agreement dated December 11, 2007 between DVL, Inc., DVL Kearny Holdings, LLC, and the Town of Kearny, New Jersey. (Incorporated by reference to DVL’s Current Event Report on Form 8-K dated December 11, 2007.)

10.47

Developer Services Agreement between DVL, Inc., P&A Associates, and Pemmil Management, LLC. (Incorporated by reference to DVL’s Current Event Report on Form 8-K dated December 11, 2007.)

10.48

Mortgage Note for the principal amount of $3,800,000 in favor of Delbrook Holding, LLC. (Incorporated by reference to DVL’s Form 10-Q for the period ended June 30, 2008.)

10.49

Amendment No. 2 to the Construction Loan Agreement. (Incorporated by Reference to DVL’s Form 10-Q for the period ended September 30, 2008.)

10.50

Pledge and Security Agreement dated as of August 1, 2008. (Incorporated by reference to DVL’s Form 10-Q for the period ended September 30, 2008.)

10.51

Amendment No. 2 to the Loan and Security Agreement with Pemmil Funding, LLC, dated November 10, 2008. (Incorporated by reference to DVL’s Form 10-Q for the period ended September 30, 2008.)

10.52

Mortgage, Security Agreement and Agreement of Leases and Rents dated January 21, 2009 by DVL Kearny Holdings LLC in favor of Signature Bank.

10.53

Guaranty dated January 21, 2009 by DVL, Inc. to Signature Bank.

10.54

Amended and Restated Loan and Security Agreement, dated as of December 31, 2009, by and between DVL, Inc. and Pemmil Funding, LLC. (Incorporated by reference to DVL’s Form 10-K for the year ended December 31, 2009.)

31.1	Chief Executive Officer’s Certificate, pursuant to Section 302 of The Sarbanes-Oxley Act of 2002.

31.2	Chief Financial Officer’s Certificate, pursuant to Section 302 of The Sarbanes-Oxley Act of 2002.

32.1	Certification of Chief Executive Officer and Chief Financial Officer, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	DVL, Inc.


	By:	/s/ Neil Koenig
		Neil Koenig, Executive Vice President and Chief Financial Officer

May 14, 2010

DVL INC /DE/ 10-Q