Investments in Local Limited Partnerships

6 Months Ended

Sep. 30, 2013

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments Disclosure [Text Block]

1.      Investments in Local Limited Partnerships

The Fund currently has limited partner or member interests in two Local Limited Partnerships, which were organized for the purpose of owning and operating multi-family housing complexes, both of which are government assisted. The Fund's ownership interest in one Local Limited Partnership is 99%, while the Fund’s ownership interest in the other is 77%.  The Fund may have negotiated or may negotiate options with the Local General Partners to purchase or sell the Fund’s interests in the Local Limited Partnerships at the end of the 15-year period during which properties that receive tax credits must remain in compliance with rent restrictions and set-aside requirements (the “Compliance Period”) for nominal prices.  In the event that the Properties are sold to third parties, or upon dissolution of the Local Limited Partnerships, proceeds will be distributed according to the terms of each Local Limited Partnership’s partnership agreement.

The following is a summary of investments in Local Limited Partnerships at September 30, 2013 and March 31, 2013:

	September 30		March 31
Capital contributions paid to Local Limited Partnerships	$	4,015,376	$	4,015,376
Cumulative equity in losses of Local Limited Partnerships (excluding
cumulative unrecognized losses of $1,001,859 and $945,515 at
September 30 and March 31, 2013, respectively)		(2,971,814)		(2,971,814)
Cumulative cash distributions received from Local Limited Partnerships		(43,323)		(43,323)
Investments in Local Limited Partnerships before adjustments		1,000,239		1,000,239
Excess investment costs over the underlying assets acquired:
Acquisition fees and expenses		49,892		49,892
Cumulative amortization of acquisition fees and expenses		(15,131)		(15,131)
Investments in Local Limited Partnerships before impairment		1,035,000		1,035,000
Cumulative impairment on investments in Local Limited Partnerships		(1,035,000)		(1,035,000)
Investments in Local Limited Partnerships	$	-	$	-

The Fund has recorded an impairment for its investments in certain Local Limited Partnerships in order to appropriately reflect the estimated net realizable value of these investments.

The Fund’s share of net losses of the Local Limited Partnerships for the six months ended September 30, 2013 and 2012 is $56,344 and $215,726, respectively.  For the six months ended September 30, 2013 and 2012, the Fund has not recognized $56,344 and $308,831, respectively, of equity in losses relating to certain Local Limited Partnerships in which cumulative equity in losses and cumulative distributions exceeded its total investment in the Local Limited Partnerships.  Previously unrecognized losses of $33,383 are included in losses recognized during the six months ended September 30, 2012.

During the six months ended September 30, 2012, the Fund disposed of its interest in one Local Limited Partnership.  The Fund received $2,015,000 from the disposition of this interest.  The Fund’s investment value at the time of the disposition was $2,044,403 resulting in a loss on disposition of investments in Local Limited Partnerships of $29,403 for the six months ended September 30, 2012.