INVESTMENTS IN AND ADVANCES TO PARTNERSHIPS

At March 31, 2013 and 2012, the Partnership had limited partnership equity interests in three and six Local Partnerships, respectively, owning three and six apartment complexes, respectively.

A schedule of the apartment complexes owned by the Local Partnerships at March 31, 2013 in which the Partnership is invested is provided below:



PROPERTY	CITY	STATE	UNITS

Chestnut	Fresno	CA	90
New Sharon Woods	Deptford	NJ	50
Westwood Village	New Haven	CT	48

Under the terms of the Partnership's investment in each Local Partnership, the Partnership was required to make capital contributions to the Local Partnerships. These contributions were payable in installments upon each Local Partnership achieving specified levels of construction and/or operations. At March 31, 2013 and 2012, all such capital contributions had been paid to the Local Partnerships.

a. Summarized financial information

The combined statements of operations for the three and six Local Partnerships in which the Partnership was invested as of March 31, 2013 and 2012, respectively, follow. The combined statements are compiled based on estimates from the audited financial statements of the Local Partnerships at December 31, 2012 and 2011 and these estimates are unaudited. The information for each of the periods is presented separately for those Local Partnerships which have investment basis (equity method), and for those Local Partnerships which have cumulative losses in excess of the amount of the Partnership's investments in those Local Partnerships (equity method suspended). Appended after the combined statements is information concerning the Partnership's share of income from partnerships related to cash distributions recorded as income, and related to the Partnership's share of income from Local Partnerships.



For the three months ended
March 31,

	2013									2012

	Equity Method			Suspended				Total		Equity Method			Suspended			Total
Number of Local Partnerships	2		(a)	1			(b)	3		3		(c)	3		(d)	6

Revenue:
Rental	$	401,819		$	165,558			$	567,377	$	921,244		$	323,352		$	1,244,596
Other	12,958			2,311				15,269		90,316			6,163			96,479
Total revenue	414,777			167,869				582,646		1,011,560			329,515			1,341,075


Expenses:
Operating	258,614			114,333				372,947		505,639			243,031			748,670
Interest	7,456			36,878				44,334		57,568			40,883			98,451
Depreciation and amortization	24,834			17,340				42,174		101,943			32,441			134,384
Total expenses	290,904			168,551				459,455		665,150			316,355			981,505

Net income (loss)	$	123,873		$	(682	)		$	123,191	$	346,410		$	13,160		$	359,570

Cash distributions	$	16,660		$	7,219			$	23,879	$	—		$	—		$	—

Cash distributions recorded as reduction
of investments in partnerships	$	16,660		$	—			$	16,660	$	—		$	—		$	—

Cash distribution recorded as income	$	—		$	7,219			$	7,219	$	—		$	—		$	—

Partnership’s share of Local Partnership net income	121,388			—				121,388		339,459			—			339,459

Share of income from partnerships	$	121,388		$	7,219			$	128,607	$339,459			$	—		$	339,459

(a) Westwood Village, Chestnut

(b) New Sharon Woods

(d) Hillview Terrace, New Sharon Woods, Shallowford Oaks

Cash distributions received from Local Partnerships which have investment basis (equity method) are recorded as a reduction of investments in partnerships and as cash receipts on the respective balance sheets. Cash distributions received from Local Partnerships which have cumulative losses in excess of the amount of the Partnership's investments in those Local Partnerships (equity method suspended) are recorded as share of income from partnerships on the respective statements of operations and as cash receipts on the respective balance sheets. As of March 31, 2013, the Partnership's share of cumulative losses to date for one of three Local Partnerships exceeded the amount of the Partnership's investment in that Local Partnership by $2,898,788. As of

March 31, 2012, the Partnership's share of cumulative losses to date for three of six Local Partnerships exceeded the amount of the Partnership's investments in those Local Partnerships by $3,343,037. As the Partnership has no further obligation to advance funds or provide financing to these Local Partnerships, the excess losses have not been reflected in the accompanying condensed financial statements.

b. Property Matters

On December 19, 2002, the Local Partnership which owned the Baltic Plaza apartments sold the property. Cash proceeds received by the Partnership totaled $2,053,358. As part of the consideration, the Local Partnership took back a 30-year purchase money note in the principal amount of $2,300,000, collateralized by the partnership interests of the general partner of the maker/purchaser. The Local Partnership assigned the purchase money note to an escrow for the benefit of its partners (with CRI serving as escrow agent), so that the Local Partnership entity could be dissolved. The purchase money note bears interest at 4.60% compounded annually, and requires a minimum annual payment equal to 50% of the maker/purchaser’s annual audited cash flow, as defined, with the balance of unpaid principal, if any, plus accrued interest, due and payable on December 31, 2032. As of March 31, 2013 and 2012, no payments of principal or interest have been received on this purchase money note. The Partnership’s 98% beneficial interest in this purchase money note is reflected in the accompanying balance sheets at March 31, 2013 and 2012, at its original principal balance of $2,300,000 plus estimated accrued but unpaid interest, all discounted to $619,000 to provide for an effective interest rate commensurate with the investment risk. The resulting discounted amount has been fully reserved due to uncertainty of collection of the purchase money note and related interest.

The Partnership entered an agreement to sell the note to an affiliate of the SP Baltic Plaza, LP for a sale price of $2,000,000. The note sold on April 29, 2013. The Partnership received $1,960,000 in proceeds from the sale of the note. CRICO housing Partnership received $39,800 and C.R.H.C. of Atlantic City, Inc received $200, which represents their interest of 1.99% and .01%, respectively.

On November 1, 2011, the mortgage holder for Shallowford Oaks, LSREF2 Chalk 2, LLC, foreclosed on the property and became the new owner of the property pursuant to a non-judicial foreclosure sale under the power of sale clause contained in its law documents. During 2012, the Local Partnership was wound up, and the Partnership no longer held a limited Partnership interest in this Local Partnership at December 31, 2012.

c. Pending and Completed Sales

Pending Sales

On June 29, 2012, the Partnership entered into a partnership purchase agreement to sell their partnership interest in New Sharon Woods for $1. The Partnership's investment basis in this Local Partnership at March 31, 2013 was $0. The sale closed on June 4, 2013.

On August 2, 2012, the Local Partnership that owns Chestnut Apartments entered into a purchase and sale agreement to sell the Chestnut Apartments for $5,440,000. The Partnership's investment basis in this Local Partnership at March 31, 2013 was $1,208,766. The Partnership expects to receive approximately $3,500,000 as a result of the sale. The sale is expected to close during the third quarter of 2013.

On August 2, 2012, the Local Partnership that owns Westwood Village entered into a purchase and sale agreement to sell Westwood Village for $3,085,000. The Partnership's investment basis in this Local Partnership at March 31, 2013 was $492,989. The Partnership expects to receive $2,150,000 as a result of the sale. The sale is expected to close during the third quarter of 2013.

Completed Sales

On August 29, 2012, the Partnership sold its limited partner interest in Traverse City Elderly, LP, which owns the Hillview Terrace Apartments for $299,990.

On December 17, 2012, the Partnership sold its limited partner interest in Capital Senior Limited Dividend Housing Association Limited Partnership, which owns the Capital Commons Senior Apartments for $6,245,328.

d. Investment Reconciliation

The following is a reconciliation of investments in partnerships at March 31, 2013.



Investments in partnerships at December 31, 2012	$	1,597,027

Distributions	(23,879		)

Share of income from partnerships	128,607

Investments in partnerships at March 31, 2013	$	1,701,755