NOTE 8 – Related Party Transactions

An affiliate of the General Partner has a 0.01% interest as a special limited partner in the remaining Local Partnership.

Pursuant to the Partnership Agreement and the remaining Local Partnership Agreement, the General Partner, the Local General Partner and their respective affiliates receive their pro-rata share of profits, losses and tax credits.

A) Related Party Expenses

Expenses incurred to related parties from operations for the years ended March 31, 2017 and 2016 were as follows:


	Years Ended March 31,
	2017		2016*
Partnership management fees (a)	$	59,712	$	108,979
Expense reimbursement (b)		221,885		196,717
Total general and administrative-General Partners	$	281,597	$	305,696

*Reclassified for comparative purposes.

Expenses incurred to related parties from discontinued operations for the years ended March 31, 2017 and 2016 were as follows:


	Years Ended March 31,
	2017		2016*
Local administrative fee (c)	$	9,160	$	14,533
Total general and administrative-General Partner		9,160		14,533
Property management fees incurred to affiliates of the subsidiary partnerships' general partners		79,047		278,454

Total general and administrative-related parties	$	88,207	$	292,987

*Reclassified for comparative purposes.

(a)

The General Partner is entitled to receive a partnership management fee, after payment of all Partnership expenses, which together with the annual local administrative fees will not exceed a maximum of 0.5% per annum of invested assets (as defined in the Partnership Agreement), for administering the affairs of the Partnership. Subject to the foregoing limitation, the partnership management fee will be determined by the General Partner in its sole discretion based upon its review of the Partnership’s investments. Unpaid partnership management fees for any year are accrued without interest and will be payable out of sales or refinancing proceeds only to the extent of available funds after payments on all Partnership liabilities have been made other than those owed to the General Partner and its affiliates. Partnership management fees owed to the General Partner amounting to approximately $— and $12,000 were accrued and unpaid as of March 31, 2017 and 2016, respectively. Current year partnership management fees may be paid out of operating reserves or refinancing and sales proceeds. During the year ended March 31, 2016, the Partnership paid approximately $2,373,000 of deferred management fees to the General Partner from sale proceeds. During the year ended March 31, 2017, the Partnership prepaid 2017 management fees to the General Partner in the amount of $7,365, this prepayment is included in Due from general partners and affiliates in the consolidated balance sheet.

(b)

The Partnership reimburses the General Partner and its affiliates for actual Partnership operating expenses incurred by the General Partner and its affiliates on the Partnership’s behalf. The amount of reimbursement from the Partnership is limited by the provisions of the Partnership Agreement. Another affiliate of the General Partner performs asset monitoring for the Partnership. These services include site visits and evaluations of the subsidiary partnerships’ performance. During the year ended March 31, 2017, the Partnership prepaid 2017 operating expenses to the General Partner in the amount of $48,746, this prepayment is included in Due from general partners and affiliates in the consolidated balance sheet.

(c)

Independence SLP IV L.P., a special limited partner of the subsidiary partnerships, was entitled to receive a local administrative fee of up to $5,000 per year from such subsidiary partnership. Local administrative fees owed to Independence SLP IV L.P. amounting to approximately $0 and $73,000 were accrued and unpaid as of March 31, 2017 and 2016, respectively. During the year ended March 31, 2016, accrued administrative fees owed to Independence SLP IV L.P. from two Local Partnerships were forgiven. These fees amounted to $136,181, and are included as contributions - write-off of related party debt in the consolidated statements of changes in partners’ capital (deficit).

As of March 31, 2017 and 2016, the Partnership owed $0 and $1,000, respectively, to the General Partner for expenses it paid on the Partnership’s behalf.

B) Due to/from Local General Partners and Affiliates

Due to Local General Partners and affiliates from discontinued operations consists of the following which are reported as a component of other liabilities held for sale in the accompanying consolidated balance sheets:


	March 31,
	2017		2016
Development fee payable	$	—	$	481,597
Operating advances		220,734		125,485

	$	220,734	$	607,082