Investments In Local Limited Partnerships

12 Months Ended

Mar. 31, 2012

Equity Method Investments and Joint Ventures [Abstract]

Investments In Local Limited Partnerships

NOTE 2 - INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS

As of March 31, 2012 and 2011, the Partnership owns Local Limited Partnership interests in 8 and 11 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 343 and 425 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 $2,252,000 and $1,431,000, 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 Local Limited Partnerships have reached a zero balance. Consequently, all of the Partnerships estimated share of losses for the years ended March 31, 2012, 2011 and 2010, amounting to approximately $487,000, $477,000 and $736,000, respectively, have not been recognized. As of March 31, 2012, the aggregate share of net losses not recognized by the Partnership amounted to $4,043,000.

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 statements of the Local Limited Partnerships as of December 31 and for the years then ended is as follows:

COMBINED CONDENSED BALANCE SHEETS
	2011			2010
ASSETS
Buildings and improvements, net of accumulated depreciation as of December 31, 2011 and 2010 of $10,402,000 and $12,321,000 respectively.	$	7,921,000		$	11,333,000
Land		833,000			1,647,000
Other assets		1,259,000			1,660,000
Total Assets	$	10,013,000		$	14,640,000
LIABILITIES
Mortgage loans payable	$	9,998,000		$	13,197,000
Due to related parties		832,000			1,471,000
Other liabilities		1,569,000			1,731,000
Total Liabilities		12,399,000			16,399,000
PARTNERS’ DEFICIT
WNC California Housing Tax Credits III, L.P.		(2,252,000	)		(1,431,000	)
Other partners		(134,000	)		(328,000	)
Total Partners’ Deficit		(2,386,000	)		(1,759,000	)
Total Liabilities and Partners’ Deficit	$	10,013,000		$	14,640,000

COMBINED CONDENSED STATEMENTS OF OPERATIONS

	2011			2010			2009
Revenues	$	2,273,000		$	2,759,000		$	3,684,000
Expenses:
Operating expenses		1,717,000			2,014,000			2,673,000
Interest expense		418,000			473,000			714,000
Depreciation and amortization		629,000			754,000			1,042,000
Total expenses		2,764,000			3,241,000			4,429,000
Net loss	$	(491,000	)	$	(482,000	)	$	(745,000	)
Net loss allocable to the Partnership	$	(487,000	)	$	(477,000	)	$	(736,000	)
Net loss recorded by the Partnership	$	-		$	-		$	-

Additionally, the financial information for the year ended December 31, 2011 does not include information for Candleridge Apartments of Perry L.P. II, Nueva Sierra Vista Associates, Parlier Garden Apartments, Tahoe Pines Apartments, Venus Retirement, Memory Lane L.P, Orosi Apartments Ltd, and Walnut-Pixley L.P, since the Partnership sold its Local Limited Partnership Interest in those particular Local Limited Partnerships as of December 31, 2011. The financial information for the year ended December 31, 2010 does not include information for Candleridge Apartments of Perry L.P. II, Nueva Sierra Vista Associates, Parlier Garden Apartments, Tahoe Pines Apartments and Venus Retirement, since the Partnership sold its Local Limited Partnership Interest in those particular Local Limited Partnerships as of December 31, 2010. The December 31, 2009 financial information above does not include the financial information for Venus Retirement.