Investments, Equity Method and Joint Ventures

6 Months Ended

Jun. 30, 2011

Investments, Equity Method and Joint Ventures

Equity Method Investments Disclosure [Text Block]

NOTE 2 - INVESTMENTS IN AND ADVANCES TO LOCAL LIMITED PARTNERSHIPS

As of June 30, 2011 and December 31, 2010, the Partnership holds a limited partnership interest in one Local Limited Partnership. The Local Limited Partnership owns one residential low-income rental project consisting of 48 apartment units.  The mortgage loans of this project are payable to or insured by a governmental agency.

The Partnership, as a limited partner, does not have a contractual relationship with the Local Limited Partnership or exercise control over the activities and operations, including refinancing or selling decisions, of the Local Limited Partnership that would require or allow for consolidation. Accordingly, the Partnership accounts for its investment in the Local Limited Partnership using the equity method. The Partnership is allocated profits and losses of the Local Limited Partnership based upon its ownership percentage of 99%. Distributions of surplus cash from operations from the Local Limited Partnership are not restricted. The Partnership is allocated profits and losses and receives distributions from refinancings and sales in accordance with the Local Limited Partnership’s partnership agreement. This agreement usually limits the Partnership’s distributions to an amount substantially less than its ownership percentage in the Local Limited Partnership. 

The individual investment is carried at cost plus the Partnership’s share of the Local Limited Partnership’s profits less the Partnership’s share of the Local Limited Partnership’s losses, distributions and impairment charges. The Partnership is not legally liable for the obligations of the Local Limited Partnership and is not otherwise committed to provide additional support to the Local Limited Partnership. Therefore, it does not recognize losses once its investment in the Local Limited Partnership reaches zero.  Distributions from the Local Limited Partnership are accounted for as a reduction of the investment balance until the investment balance is reduced to zero. When the investment balance has been reduced to zero, subsequent distributions received are recognized as income in the accompanying statements of operations. During the three and six months ended June 30, 2011 and 2010, the Partnership received operating distributions of approximately $4,000 and $10,000, respectively, from Local Limited Partnerships in which it does not have an investment balance.

For those investments where the Partnership has determined that the carrying value of its investment approximates the estimated fair value of the investment, the Partnership’s policy is to recognize equity in income of the Local Limited Partnership only to the extent of distributions received and amortization of acquisition costs from the Local Limited Partnership. Therefore, the Partnership limits its recognition of equity earnings to the amount it expects to ultimately realize.

As of June 30, 2011 and December 31, 2010, the investment balance in the Local Limited Partnership had been reduced to zero.

The following are unaudited condensed estimated statements of operations for the three and six months ended June 30, 2011 and 2010 of the Local Limited Partnership in which the Partnership has invested (in thousands). The 2010 amounts exclude Three Rivers due to the sale of its investment property in June 2010.

UNAUDITED CONDENSED ESTIMATED STATEMENTS OF OPERATIONS

	Three Months Ended June 30, 2011	Three Months Ended June 30, 2010	Six Months Ended June 30, 2011	Six Months Ended June 30, 2010
Revenues:
Rental income	$   89	$   96	$  187	$  192
Expenses:
Depreciation and amortization	14	15	29	29
Financial expenses	21	21	42	42
Operating expenses	71	64	138	128
Total expenses	106	100	209	199
Loss from continuing operations	$  (17)	$   (4)	$  (22)	$   (7)

On June 25, 2010, the Local Operating General Partner of Three Rivers sold its investment property to a third party for a total sales price of $1,800,000. During the three and six months ended June 30, 2011 and 2010, the Partnership received distributions from the sale of approximately $4,000 and $500,000, respectively. The Partnership had no remaining investment balance in the Partnership at June 30, 2011 and December 31, 2010.

Subsequent to June 30, 2011, the Partnership assigned its limited partnership interest in Grandview Place Limited Partnership to a third party for $25,000.  The Partnership had no remaining investment balance in the Local Limited Partnership at June 30, 2011 and December 31, 2010. Grandview Place was the Partnership’s sole remaining investment. The Partnership anticipates liquidating by December 31, 2011.