5. Investment in Local Partnerships

12 Months Ended

Mar. 30, 2019

Notes

5. Investment in Local Partnerships

5.       Investment in Local Partnerships

The Partnership initially acquired a Local Partnership Interest in forty-three Local Partnerships. As of March 30, 2019 and 2018, the Partnership owns a 99% Local Partnership Interest in one Local Partnership, Fulton Street Houses Limited Partnership (“Fulton Street Houses”). In connection with the initial purchase of forty-three Local Partnership Interests, under the terms of the partnership agreement of each Local Partnership, as of March 30, 2019 the Partnership is committed to make capital contributions in the aggregate of $29,384,966, which includes Advances to a certain Local Partnership and all of which has been paid.

Fulton Street Houses owns a 36 unit subsidized and leveraged low-income multifamily residential complex located in Brooklyn, New York. The required holding period of each Property, in order to avoid Low-income Housing Tax Credit recapture, is fifteen years from the year in which the Low-income Housing Tax Credits commence on the last building of the Property (the “Compliance Period”). The Compliance Periods of all the Local Partnerships expired in a prior year. The rents of Fulton Street Houses are subject to specific laws, regulations and agreements with federal and state agencies.

Equity in loss of investment in Fulton Street Houses is limited to the Partnership’s investment balance in Fulton Street Houses; any excess is applied to other partners' capital in Fulton Street Houses (see Note 1). The amount of such excess losses applied to other partners' capital was $227,264 and $228,488 for the years ended December 31, 2018 and 2017, respectively, as reflected in the statements of operations of Fulton Street Houses herein Note 5.

The balance sheets and statements of operations of Fulton Street Houses as of December 31, 2018 and 2017 and for the years then ended are reflected on pages 23 and 24, respectively.

The balance sheets of Fulton Street Houses as of December 31, 2018 and 2017 are as follows:

	2018	2017
ASSETS
Cash and cash equivalents	$       194,455	$       134,233
Rents receivable	6,645	10,959
Escrow deposits and reserves	27,137	4,879
Land	2	2
Buildings and improvements (net of accumulated depreciation of $5,936,955 and $5,692,901)	246,992	462,758
Other assets	57,304	109,294
	$         532,535	$         722,125
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
Liabilities
Accounts payable and accrued expenses	$         29,421	$         37,617
Due to related parties	657,424	657,410
Mortgage loans	3,869,930	3,869,930
Accrued interest	1,194,950	1,146,641
Other liabilities	41,237	41,394
	5,792,962	5,752,992
Partners' equity (deficit)
American Tax Credit Properties III L.P.
Capital contributions, net of distributions	1,948,081	1,948,081
Cumulative loss	(1,948,081)	(1,948,081)
	--	--
General partner
Capital contributions, net of distributions	100	100
Cumulative loss	(5,260,527)	(5,030,967)
	(5,260,427)	(5,030,867)
	(5,260,427)	(5,030,867)
	$         532,535	$         722,125

The statements of operations of Fulton Street Houses for the years ended December 31, 2018 and 2017 are as follows:

	2018	2017
REVENUE
Rental	$         427,850	$         429,155
Interest and other	3,993	2,734
Total Revenue	431,843	431,889
EXPENSES
Administrative	41,624	55,049
Payroll	84,324	73,709
Utilities	68,661	80,754
Operating and maintenance	70,739	79,768
Taxes and insurance	106,858	76,798
Financial	48,072	47,363
Depreciation	241,125	249,204
Total Expenses	661,403	662,645
NET LOSS	$       (229,560)	$       (230,756)
NET LOSS ATTRIBUTABLE TO
American Tax Credit Properties III L.P.	$                  --	$                  --
General partner (includes $227,264 and $228,448 of Partnership losses in excess of investment)	(229,560)	(230,756)
	$(229,560)	$(230,756)