2. Investment in Local Partnerships

9 Months Ended

Dec. 30, 2014

Notes

2. Investment in Local Partnerships

2.      Investment in Local Partnerships

The Trust initially acquired limited partner equity interests (the “Local Partnership Interests”) in ten Local Partnerships representing capital contributions in the aggregate amount of $14,837,956, which includes voluntary advances (the “Advances”) made to certain Local Partnerships and all of which has been paid. As of December 30, 2014, the Trust holds a Local Partnership Interest in six Local Partnerships. The Trust has no legal obligation to fund any operating deficits of the Local Partnerships.

For the nine months ended December 30, 2014, the investment in local partnerships activity consists of the following:

Investment in local partnerships as of March 30, 2014	$ 2,518,186
Equity in loss of investment in local partnerships	(2,025,176)	*
Distributions from Local Partnerships	(63,233)
Distributions classified as other income	3,000
Investment in local partnerships as of December 30, 2014	$   432,777

*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.

St. John Housing Associates, L.P. (“St. John Housing”) has been receiving rental subsidy payments under Section 8 of Title II of the Housing and Community Development Act of 1974 (“Section 8”); St. John Housing’s Section 8 contracts expire on June 30, 2015.  The Local General Partner of St. John Housing has reported that St. John Housing has entered into negotiations with the United States Department of Housing and Urban Development (“HUD”) in an effort to renew the Section 8 contracts beyond their expiration date.  However, based on correspondence received from HUD, St. John Housing’s Local General Partner does not believe that the Section 8 contracts will be renewed at rent levels sufficient for St. John Housing to make its mandatory mortgage payments without a complete restructuring.  After further analysis, the Trust has reduced its investment in St. John Housing by $2,200,000 during the nine months ended December 30, 2014. Such amount is included in equity in income (loss) of investment in local partnerships in the accompanying unaudited statement of operations and comprehensive income (loss) for the nine months ended December 30, 2014.

The Trust’s investment in St. John Housing represents more than 20% of the Trust’s total assets as of December 30, 2014. The following financial information represents certain unaudited balance sheet and operating statement data of St. John Housing as of and for the nine months ended September 30, 2014:

Total assets	$ 5,279,461
Total liabilities	$ 2,654,222
Revenue	$ 1,124,183
Net income	$   176,590