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Investment in Local Partnerships
 12 Months Ended
Mar. 30, 2012
Investments in and Advances to Affiliates  
Investments in and Advances to Affiliates, Schedule of Investments
6.     Investment in Local Partnerships


The Trust initially acquired a Local Partnership Interest in ten Local Partnerships. As of March 30, 2012, the Trust owns a 98.9% to 99% Local Partnership Interest in the following Local Partnerships:


 
  1.
ACP Housing Associates, L.P.;
 
  2.
Creative Choice Homes VII, Ltd.;
 
  3.
Edgewood Manor Associates, L.P. (“Edgewood”);
 
  4.
Ledge/McLaren Limited Partnership;
 
  5.
Penn Apartment Associates;
 
  6.
SB-92 Limited Partnership;
 
  7.
St. Christopher's Associates, L.P. V (“St. Christopher’s”);
 
  8.
St. John Housing Associates, L.P. (“St. John Housing”); and
 
  9.
Vision Limited Dividend Housing Association Limited Partnership.


In connection with the initial purchase of ten Local Partnership Interests, under the terms of the partnership agreement of each Local Partnership, as of March 30, 2012 the Trust is committed to make capital contributions in the aggregate of $14,837,956, which includes Advances to certain Local Partnerships (see discussion below) and all of which has been paid.


The remaining Properties are principally comprised of subsidized and leveraged low-income multifamily residential complexes located throughout the United States. The required holding period of each Property, in order to avoid Low-income Housing Tax Credit recapture, is fifteen years from the year in which the Low-income Housing Tax Credits commence on the last building of the Property (the “Compliance Period”). The Compliance Periods of all the Local Partnerships expired in a prior year. The rents of the Properties, certain of which receive project based rental subsidy payments pursuant to subsidy agreements, are subject to specific laws, regulations and agreements with federal and state agencies. The subsidies expire at various times. The Trust cannot reasonably predict legislative initiatives and governmental budget negotiations, the outcome of which could result in a reduction in funds available for the various federal and state administered housing programs. Such changes could adversely affect the future net operating income and debt structure of the Local Partnerships receiving such subsidies. The rents of the Properties are controlled by federal and state agencies pursuant to applicable laws and regulations. As of December 31, 2011 the Local Partnerships have outstanding mortgage loans payable totaling approximately $18,759,000 and accrued interest payable on such loans totaling approximately $4,676,000, which are secured by security interests and liens common to mortgage loans on the Local Partnerships' real property and other assets.


Equity in loss of investment in local partnerships is limited to the Trust’s investment balance in each Local Partnership; any excess is applied to other partners' capital in any such Local Partnership (see Note 1). The amount of such excess losses applied to other partners' capital was $619,937, $640,634, and $711,478 for the years ended December 31, 2011, 2010 and 2009, respectively, as reflected in the combined statements of operations of the Local Partnerships herein Note 6.


For the years ended March 30, 2012 and 2011, the investment in local partnerships activity consists of the following:


   
2012
  
2011
 
        
        Investment in local partnerships as of March 30, 2011 and 2010
 $2,297,912  $2,126,698 
          
        Distributions from Local Partnerships
  (152,015)  (62,733)
          
        Distributions classified as other income
  36,250   2,500 
          
        Equity in income of investment in local partnerships
  84,853   231,447 
          
        Investment in local partnerships as of March 30, 2012 and 2011
 $2,267,000  $2,297,912 
          
The differences between the Trust’s investment in local partnerships as of March 30, 2012 and 2011 and the amounts reflected as the Trust’s investment balance in the combined balance sheets of the Local Partnerships as of December 31, 2011 and 2010 herein Note 6 are as follows:


   
2012
  
2011
 
        
        Investment in local partnerships as of March 30 - Trust
 $2,267,000  $2,297,912 
          
        Distributions from Local Partnerships for the period January 1 through March 30
  60,233   -- 
          
        Carrying value adjustments (see Note 1)
  1,667,948   1,667,948 
          
        Investment in local partnerships as of December 31, 2011 and 2010 - Local Partnerships’ combined balance sheets
 $3,995,181  $3,965,860 
          
In March 2012, Starved Rock - LaSalle Manor Limited Partnership (“Starved Rock”) sold its underlying Property to an affiliate of the Local General Partner of Starved Rock. In connection with the sale, the Trust received $108,000, which amount is reflected as gain on sale of limited partner interests/local partnership properties in the accompanying statement of operations of the Trust for the year ended March 30, 2012. In addition, the Trust received $30,000 for distributions that were due to the Trust under the terms of Starved Rock’s partnership agreement. Such amount is included in other income from local partnerships in the accompanying statement of operations of the Trust for the year ended March 30, 2012 (see Note 1). The Trust’s investment balance in Starved Rock, after cumulative equity losses and distributions 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 $50,000 as of May 2012. The Trust has made cumulative Advances of $90,000 to Edgewood to fund operating deficits as of March 30, 2012, none of which were made during the three years then ended. The Trust’s investment balance in Edgewood, after cumulative equity losses and distributions, became zero during the year ended March 30, 2005 and 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.


During the year ended March 30, 2010, the Trust made Advances of $6,092 to St. Christopher's to fund operating deficits. Cumulative Advances as of March 30, 2012 and 2011 are $6,092. The Trust’s investment balance in St. Christopher’s, after cumulative equity losses and distributions, became zero during the year ended March 30, 2004 and 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 in St. John Housing represents more than 20% of the Trust’s total assets as of March 30, 2012 and 2011 and the equity in income recognized by the Trust for the years ended March 30, 2012 and 2011 in connection with St. John Housing represents more than 20% of the Trust’s net income for such years. The following financial information represents certain balance sheet and operating statement data of St. John Housing as of and for the years ended December 31, 2011 and 2010:


   
2011
  
2010
 
        
Total assets
 $5,636,912  $5,769,162 
          
Total liabilities
 $3,325,051  $3,482,169 
          
Revenue
 $1,444,889  $1,430,713 
          
Net income
 $85,710  $233,785 


The combined balance sheets of the Local Partnerships as of December 31, 2011 and 2010 and the combined statements of operations of the Local Partnerships for the years ended December 31, 2011, 2010 and 2009 are reflected on pages 29 and 30, respectively.
 
The combined balance sheets of the Local Partnerships as of December 31, 2011 and 2010 are as follows:


   
2011
  
2010
 
        
ASSETS
      
        
Cash and cash equivalents
 $696,549  $821,860 
Rents receivable
  74,710   71,782 
Escrow deposits and reserves
  2,065,245   1,934,303 
Land
  1,213,303   1,213,303 
Buildings and improvements (net of accumulated depreciation of $18,795,401 and $17,738,375)
  16,454,213   17,222,078 
Intangible assets (net of accumulated amortization of $164,642 and $179,568)
  223,567   225,773 
Other assets
  442,692   469,815 
          
   $21,170,279  $21,958,914 
          
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
        
          
Liabilities
        
          
Accounts payable and accrued expenses
 $684,071  $739,419 
Due to related parties
  2,646,659   2,547,157 
Mortgage loans
  18,758,639   19,497,031 
Notes payable
  100,000   100,000 
Accrued interest
  4,675,602   4,455,768 
Other liabilities
  140,303   146,928 
          
    27,005,274   27,486,303 
          
Partners' equity (deficit)
        
          
American Tax Credit Trust, Series I
        
Capital contributions, net of distributions
  13,739,701   13,795,233 
Cumulative loss
  (9,744,520)  (9,829,373)
          
    3,995,181   3,965,860 
          
General partners and other limited partners
        
Capital contributions, net of distributions
  466,308   471,617 
Cumulative loss
  (10,296,484)  (9,964,866)
          
    (9,830,176)  (9,493,249)
          
    (5,834,995)  (5,527,389)
          
   $21,170,279  $21,958,914 




The combined statements of operations of the Local Partnerships for the years ended December 31, 2011, 2010 and 2009 are as follows:


   
2011
  
2010
  
2009
 
           
REVENUE
         
           
Rental
 $4,834,032  $4,790,746  $4,558,362 
Interest and other
  303,156   263,948   309,213 
              
TOTAL REVENUE
  5,137,188   5,054,694   4,867,575 
              
EXPENSES
            
              
Administrative
  1,088,411   1,110,818   1,071,204 
Utilities
  778,210   732,869   743,172 
Operating and maintenance
  1,186,236   1,147,203   1,224,343 
Taxes and insurance
  442,146   454,494   470,561 
Financial
  810,269   810,922   842,269 
Depreciation and amortization
  1,078,681   1,089,127   1,115,729 
              
TOTAL EXPENSES
  5,383,953   5,345,433   5,467,278 
              
NET LOSS
 $(246,765) $(290,739) $(599,703)
              
NET INCOME (LOSS) ATTRIBUTABLE TO
            
              
American Tax Credit Trust, Series I
 $84,853  $231,447  $103,033 
General partners and other limited partners (includes
   $619,937, $640,634 and $711,478 of Trust loss in excess of investment and specially allocated income of $290,801, $121,375 and $14,758)
  (331,618)  (522,186)  (702,736)
              
   $(246,765) $(290,739) $(599,703)