2. Investments in Local Limited Partnerships

12 Months Ended

Mar. 31, 2016

Equity Method Investments and Joint Ventures [Abstract]

Investments in Local Limited Partnerships

As of March 31, 2016 and 2015, the Partnership owned interests in 9 and 13 Local Limited Partnerships, respectively, each of which owns or owned one Housing Complex, consisting of an aggregate of 349 and 527 apartment units, respectively. The respective Local General Partners of the Local Limited Partnerships manage the day-to-day operations of the entities. Significant Local Limited Partnership business decisions require approval from the Partnership. The Partnership, as a limited partner, is generally entitled to 99%, as specified in the Local Limited Partnership Agreements, of the operating profits and losses, taxable income and losses and Low Income Housing Tax Credits of the Local Limited Partnerships.

The Partnership’s investments in Local Limited Partnerships as shown in the balance sheets at March 31, 2016 and 2015 are approximately $2,199,000 and $3,354,000, respectively, less than the Partnership's equity at the preceding December 31 as shown in the Local Limited Partnerships’ combined condensed financial statements presented below. This difference is primarily due to acquisition, selection, and other costs related to the acquisition of the investments which have been capitalized in the Partnership's investment account, impairment losses recorded in the Partnership’s investment account and capital contributions payable to the Local Limited Partnerships which were netted against partner capital in the Local Limited Partnership’s financial statements.

The Partnership reviews its investments in Local Limited Partnerships for impairment at least annually or whenever events or changes in circumstances indicate that the carrying value of such investments may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the investment to the sum of the total amount of the remaining Low Income Housing Tax Credits allocated to the Partnership and any estimated residual value of the investment. For the years ended March 31, 2016, 2015 and 2014 impairment loss related to investments in Local Limited Partnerships was $0, $0 and $146,238, respectively.

As of March 31, 2016 and 2015 the investment accounts in certain Local Limited Partnerships have reached a zero balance. Consequently, a portion of the Partnership’s estimate of its share of losses for the years ended March 31, 2016, 2015 and 2014 amounting to approximately $326,000, $608,000 and $500,000, respectively, have not been recognized. As of March 31, 2016, the aggregate share of net losses not recognized by the Partnership amounted to approximately $2,045,000.

The following is a summary of the equity method activity of the investments in the Local Limited Partnerships for the periods presented:

	For the Years Ended March 31,
	2016		2015		2014
Investments per balance sheet, beginning of period	$	-	$	-	$	225,686
Impairment loss		-		-		(146,238	)
Equity in losses of Local Limited Partnerships		-		-		(79,448	)
Amortization of paid acquisition fees and costs		-		-		-
Distributions received from Local Limited Partnerships		-		-		-
Investments per balance sheet, end of period	$	-	$	-	$	-

The financial information from the individual financial statements of the Local Limited Partnerships include rental and interest subsidies. Rental subsidies are included in total revenues and interest subsidies are generally netted in interest expense. Approximate combined condensed financial information from the individual financial statements of the Local Limited Partnerships as of December 31 and for the years then ended is as follows:

COMBINED CONDENSED BALANCE SHEETS

	2015		2014
ASSETS
Buildings and improvements (net of accumulated depreciation as of December 31, 2015 and 2014 of $9,679,000 and $13,276,000, respectively)	$	13,135,000	$	19,598,000
Land		1,652,000		1,861,000
Other assets		1,880,000		2,374,000
Total assets	$	16,667,000	$	23,833,000

LIABILITIES
Mortgage payable	$	11,705,000	$	16,916,000
Due to affiliates		524,000		1,034,000
Other liabilities		336,000		578,000
Total liabilities		12,565,000		18,528,000
PARTNERS' EQUITY
WNC Housing Tax Credit Fund VI, L.P., Series 9		2,199,000		3,354,000
Other partners		1,903,000		1,951,000
Total partners’ equity		4,102,000		5,305,000
Total liabilities and partners’ equity	$	16,667,000	$	23,833,000

COMBINED CONDENSED STATEMENTS OF OPERATIONS

	2015			2014			2013
Revenues	$	2,654,000		$	3,572,000		$	3,446,000
Expenses:
Operating expenses		1,857,000			2,571,000			2,335,000
Interest expense		421,000			585,000			672,000
Depreciation and amortization		702,000			1,045,000			1,053,000
Total expenses		2,980,000			4,201,000			4,060,000
Net  loss	$	(326,000	)	$	(629,000	)	$	(614,000	)
Net loss allocable to the Partnership	$	(326,000	)	$	(608,000	)	$	(579,000	)
Net loss recorded by the Partnership	$	-		$	-		$	(79,000	)

Certain Local Limited Partnerships have incurred significant operating losses and/or have working capital deficiencies. In the event these Local Limited Partnerships continue to incur significant operating losses, additional capital contributions by the Partnership and/or the Local General Partner may be required to sustain the operations of such Local Limited Partnerships. If additional capital contributions are not made when they are required, the Partnership's investment in certain of such Local Limited Partnerships could be impaired, and the loss and recapture of the related Low Income Housing Tax Credits could occur.