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Subsequent Events
12 Months Ended
Mar. 31, 2012
Subsequent Events [Abstract]  
Subsequent Events

 

NOTE 5 - SUBSEQUENT EVENTS

 

As of March 31, 2012, the Local Limited Partnership Interest in Sun Manor, L.P. (“Sun Manor”) was identified to be sold to an affiliate of the Local General Partner. The buyer offered $30,000 to purchase the Local Limited Partnership Interest. Sun Manor was appraised for $490,000 and had a mortgage note balance of $1,000,584 as of December 31, 2011. The Partnership has incurred $3,000 in appraisal expenses which will be netted against the proceeds from the sale in calculating the gain on the sale. The Partnership’s investment balance is zero; therefore a gain of $27,000 will be recorded during the respective period. The payment for the sale of Sun Manor will be made in six installments of $5,000 each. The Partnership received five installments totaling $25,000 as of March 31, 2012 and the proceeds were recorded as prepaid disposition proceeds. No cash distribution will be made to the Limited Partners as a result of this sale. The Compliance Period has been completed therefore there is no risk of recapture and investor approval is not required. The Local Limited Partnership was sold on April 30, 2012.

 

As of March 31, 2012, the Local Limited Partnership Interest in Almond Garden Apartments Associates (Almond Garden) was identified for sale and was sold subsequent thereto on May 1, 2012. The buyer offered $35,000 to purchase the Local Limited Partnership Interest. Almond Garden was appraised for $740,000 and had a mortgage note balance of $1,300,000 as of December 31, 2011. The Partnership has incurred $1,500 in appraisal expenses and $385 in legal fees which will be netted against the proceeds from the sale in calculating the gain on the sale. The Partnership’s investment balance is zero; therefore a gain of $33,115 will be recorded during the respective period. The $35,000 of cash proceeds were used as follows: $25,000 in accrued asset management fees were paid and $10,000 was placed in the Partnership’s reserve for future operating expenses. No cash distribution was made to the Limited Partners as a result of this sale. The Compliance Period has been completed therefore there is no risk of recapture and investor approval is not required.