Commitments and Contingencies

6 Months Ended

Sep. 30, 2017

Commitments and Contingencies

Commitments and Contingencies

NOTE 6 – Commitments and Contingencies

a)     Liquidity

At September 30, 2017, the Partnership’s liabilities exceeded its assets by $502,811 and for the six months ended September 30, 2017, the Partnership had a net gain of $15,043,611. As discussed in Note 2, partnership management fees of approximately $1,850,000 will be payable out of sales or refinancing proceeds only to the extent of available funds after payments on all other Partnership liabilities have been made and after the Limited Partners have received a 10% return on their capital contributions.  As such, the General Partner cannot demand payment of these deferred fees beyond the Partnership’s ability to pay them.  In addition, where the Partnership has unpaid partnership management fees related to sold properties, such management fees are written off and recorded as capital contributions. 

The Partnership has cash reserves of approximately $1,433,000 at September 30, 2017.  Such amount is considered sufficient to cover the Partnership’s accrued operating expenses and liquidation expenses until the Partnership’s liquidation.  The Partnership’s operating expenses, excluding the Local Partnerships’ expenses and related party expenses, amounted to approximately $92,000 for the six months ended September 30, 2017.

b)     Uninsured Cash and Cash Equivalents

The Partnership maintains its cash and cash equivalents in various high quality credit institutions.  The accounts at each bank are guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) up to $250,000 per entity per institution. At times, the balances exceed the FDIC insurance limit.

c)     Property Management Fees

Property management fees incurred by the last remaining Local Partnership amounted to $0 and $13,871 and $13,248 and $27,897 for the three and six months ended September 30, 2017 and 2016, respectively. Of these fees $0 and $13,871 and $13,248 and $14,026 were earned by an affiliate of the remaining Local General Partner and related to discontinued operations for the three and six months ended September 30, 2017 and 2016, respectively.

d)     Subsequent Events

The Partnership evaluated all subsequent events from the date of the condensed consolidated balance sheet through the issuance date of these condensed consolidated financial statements and determined that there were no events or transactions occurring during the subsequent event reporting period which require recognition or disclosure in the condensed consolidated financial statements.