Note 4 - Transactions With Affiliated Parties

9 Months Ended

Sep. 30, 2014

Notes

Note 4 - Transactions With Affiliated Parties

Note 4 – Transactions with Affiliated Parties

Under the terms of its Partnership Agreement, the Partnership is obligated to the General Partner for the following fees:

(a)           An annual Partnership management fee in an amount equal to 0.5 percent of invested assets (as defined in the Partnership Agreement) at the beginning of the year is payable to the General Partner. For the nine months ended September 30, 2014 and 2013, partnership management fees in the amount of approximately $47,000 and $80,000, respectively were recorded as an expense.

(b)           The Partnership reimburses NAPICO for certain expenses. The reimbursement to NAPICO was approximately $22,000 for the nine months ended September 30, 2014 and 2013 and is included in general and administrative expenses.

NTC-II or another affiliate of the General Partner is the Local Operating General Partner in one of the Partnership's two Local Partnerships at September 30, 2014. In addition, NTC-II is typically either a special limited partner or an administrative general partner in each Local Partnership in which the Partnership has an investment.

The General Partner is not obligated to advance funds to the Partnership for operations or to fund Partnership advances to Local Partnerships, but may voluntarily do so from time to time. There were no advances received by the Partnership during the nine months ended September 30, 2014 and 2013. The Partnership may receive future advances of funds from the General Partner although the General Partner is not obligated to provide such advances.