Investment in Local Partnerships

3 Months Ended

Jun. 29, 2011

Investments in and Advances to Affiliates

Investments in and Advances to Affiliates, Schedule of Investments [Text Block]

2. Investment in Local Partnerships

The Trust owns a 98.9% to 99% limited partner interest (the “Local Partnership Interests”) in ten Local Partnerships representing capital contributions in the aggregate amount of $14,837,956, which includes voluntary advances made to certain Local Partnerships and all of which has been paid.  The Trust has no legal obligation to fund any operating deficits of the Local Partnerships.

For the three months ended June 29, 2011, the investment in local partnerships activity consists of the following:

Investment in local partnerships as of March 30, 2011	$	2,297,912
Equity in income of investment in local partnerships		76,652	*
Distributions received from Local Partnerships		(58,532	)
Distributions classified as other income		3,000
Investment in local partnerships as of June 29, 2011	$	2,319,032

*In the event the operations of a Local Partnership result in a loss, equity in loss of each investment in Local Partnership allocated to the Trust is recognized to the extent of the Trust’s investment balance in each Local Partnership.  Equity in loss in excess of the Trust’s investment balance in a Local Partnership is allocated to other partners’ capital in any such Local Partnership.

In January 2011, Starved Rock - LaSalle Manor Limited Partnership (“Starved Rock”) entered into a purchase agreement (the “Purchase Agreement”) to sell its underlying Property to an affiliate of the Local General Partner of Starved Rock.  Under the terms of the Purchase Agreement, the Trust would receive $108,000 (subject to adjustment as described in the Purchase Agreement) plus $30,000 in distributions that are due to the Trust under the terms of Starved Rock’s partnership agreement.  The Purchase Agreement is subject to the approval of the United States Department of Housing and Urban Development (“HUD”) and there can be no assurance that the Property will be sold under the terms of the Purchase Agreement.  The Trust’s investment balance in Starved Rock, after cumulative equity losses, became zero during the year ended March 30, 2008.

Edgewood Manor Associates, L.P. (“Edgewood”) is currently in default under the terms of its first mortgage and a default has been declared by the lender; delinquent payments of principal, interest and certain fees represent a cumulative arrearage of approximately $42,000 as of July 2011.  The Trust has made cumulative voluntary advances of $90,000 to Edgewood to fund operating deficits as of June 29, 2011, none of which were made during the three months then ended.  The Trust’s investment balance in Edgewood, after cumulative equity losses, became zero during the year ended March 30, 2005 and voluntary advances made by the Trust were recorded as investment in local partnerships and written off as additional equity in loss of investment in local partnerships.

The Trust’s investment balance in St. John Housing Associates, L.P. (“St. John Housing”) represents more than 20% of the Trust’s total assets as of June 29, 2011 and the equity in income recognized by the Trust for the three months ended June 29, 2011 in connection with St. John Housing represents more than 20% of the Trust’s net income for such period.  The following financial information represents certain unaudited operating statement data of St. John Housing for the three months ended March 31, 2011:

Revenue	$	360,429
Net income	$	77,426