Investments In Local Limited

12 Months Ended

Mar. 31, 2012

Equity Method Investments and Joint Ventures [Abstract]

Investments In Local Limited

NOTE 2 - INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS

As of March 31, 2012 and 2011, the Partnership owns Local Limited Partnership interests in 6 and 18 Local Limited Partnerships, respectively. As of March 31, 2012 and 2011, these Local Limited Partnerships each own one Housing Complex consisting of an aggregate of 244 and 505 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, 2012 and 2011 are approximately $2,444,000 and $4,129,000, respectively, greater than the Partnership's equity at the preceding December 31 as shown in the Local Limited Partnerships’ combined financial statements presented below. This difference is primarily due to unrecorded losses as discussed below, and acquisition, selection and other costs related to the acquisition of the investments which have been capitalized in the Partnership's investment account along with impairment losses recorded in the Partnership’s investment account.

At March 31, 2012 and 2011, the investment accounts in all of the Local Limited Partnerships have reached a zero balance. Consequently, all of the Partnerships, estimates of its share of losses for the years ended March 31, 2012, 2011 and 2010, amounting to approximately $77,000, $235,000 and $385,000, respectively, have not been recognized. As of March 31, 2012, the aggregate share of net losses not recognized by the Partnership amounted to $2,626,000.

The financial information from the individual financial statements of the Local Limited Partnerships includes rental and interest subsidies. Rental subsidies are included in total revenues and interest subsidies are generally netted against interest expense. Approximate combined condensed financial information from the individual financial

COMBINED CONDENSED BALANCE SHEETS

	2012			2011
ASSETS
Buildings and improvements (net of accumulated depreciation as of December 31, 2012 and 2011 of $6,504,000 and $11,124,000, respectively)	$	3,975,000		$	8,697,000
Land		414,000			813,000
Other assets		956,000			1,728,000
Total assets	$	5,345,000		$	11,238,000
LIABILITIES
Mortgage loans payable	$	7,266,000		$	14,453,000
Due to related parties		92,000			103,000
Other liabilities		147,000			292,000
Total liabilities		7,505,000			14,848,000
PARTNERS’ EQUITY (DEFICIT)
WNC Housing Tax Credit Fund II, L.P.		(2,444,000	)		(4,129,000	)
Other partners		284,000			519,000
Total partners’ equity (deficit)		(2,160,000	)		(3,610,000	)
Total liabilities and partners’ equity (deficit)	$	5,345,000		$	11,238,000

COMBINED CONDENSED STATEMENTS OF OPERATIONS

	2011			2010			2009
Revenues	$	1,561,000		$	2,835,000		$	3,136,000
Expenses:
Operating expenses		1,150,000			2,209,000			2,479,000
Interest expense		144,000			297,000			411,000
Depreciation and amortization		345,000			549,000			637,000
Total expenses		1,639,000			3,055,000			3,527,000
Net operating  loss	$	(78,000	)	$	(220,000	)	$	(391,000	)
Net loss allocable to the Partnership	$	(77,000	)	$	(217,000	)	$	(385,000	)
Net loss recorded by the Partnership	$	-		$	-		$	-

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 Partners may be required to sustain operations of such Local Limited Partnerships.