Note 2 - Investments in and Advances To Local Limited Partnerships	9 Months Ended
Sep. 30, 2014
Notes
Note 2 - Investments in and Advances To Local Limited Partnerships	NOTE 2 - INVESTMENTS IN AND ADVANCES TO LOCAL LIMITED PARTNERSHIP As of September 30, 2014 and December 31, 2013, the Partnership held limited partnership interests in zero and one Local Limited Partnership. As of December 31, 2013, the Local Limited Partnership owned a residential low-income rental project consisting of 126 apartment units. The Local Limited Partnership may be encumbered by mortgage notes payable to or insured by various governmental agencies. 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 respective ownership percentages (90%). Distributions of surplus cash from operations from the Local Limited Partnership is restricted by the Local Limited Partnership's Regulatory Agreement with the United States Department of Housing and Urban Development (“HUD”). These restrictions limit the distribution to a portion, generally less than 10% of the initial invested capital. The excess surplus cash is deposited into a residual receipts reserve, of which the ultimate realization by the Partnership is uncertain as HUD frequently retains it upon sale or dissolution of the Local Limited Partnership. The Partnership is allocated profits and losses and receives distributions from refinancings and sales in accordance with the Local Limited Partnership's partnership agreement. The agreement limits the Partnership’s distributions to an amount substantially less than its ownership percentage in the Local Limited Partnership. The 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 it. Therefore, it does not recognize losses once its investment in the Local Limited Partnership reaches zero. Distributions from the Local Limited Partnership is 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. An operating distribution of approximately $4,000 was received from one Local Limited Partnership, Oakridge Park II, during the nine months ended September 30, 2013. In September 2013, the Partnership assigned its limited partnership interest in Oakridge Park II to an affiliate of the Operating General Partner for a total of $13,200. This amount was recognized as a gain on sale of Local Limited Partnerships as the partnership had no investment balance remaining in Oakridge Park II at the date of the assignment. In November 2013, Crockett Manor sold its investment property for net proceeds of approximately $40,000. In December 2013, the Partnership assigned its limited partnership interest in Hummelstown for approximately $190,000 and Kentucky Manor for approximately $25,000. On September 29, 2014, the Partnership assigned 100% of its interests in Park Place Associates to the local general partner in exchange for a payment of $900,000. In addition, the Partnership received repayment of advances of approximately $139,000. Based on the assignment agreement, the Partnership expensed approximately $100,000 in advances which were included in the investment balance that will not be repaid and recognized an impairment charge of approximately $434,000 during the nine months ended September 30, 2014. The Partnership reviews its investment in Local Limited Partnerships to determine if there has been any permanent impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the sum of the expected future cash flows is less than the carrying amount of the assets, the Partnership recognizes an impairment loss. During the nine months ended September 30, 2014, the Partnership recognized impairment charges of approximately $434,000 with respect to its investment in the Local Limited Partnership. For those investments where the Partnership has determined that the carrying value of its investments approximates the estimated fair value of those investments, the Partnership’s policy is to recognize equity in income of the Local Limited Partnerships only to the extent of distributions received and amortization of acquisition costs from those Local Limited Partnerships. Therefore, the Partnership limits its recognition of equity earnings to the amount it expects to ultimately realize. At times, advances are made to the Local Limited Partnerships. Advances made by the Partnership to the individual Local Limited Partnerships are considered part of the Partnership’s investment in the Local Limited Partnership. Advances made to Local Limited Partnerships for which the investment has been reduced to zero are charged to expense. Advances from the Partnership to the Local Limited Partnership during the nine months ended September 30, 2014, was approximately $155,000 of which $71,000 was advanced to Crockett Manor for wind up expenses and $84,000 to Park Place for non-resident withholding taxes and repairs. During the nine months ended September 30, 2013, the Partnership advanced approximately $237,000 to Park Place Limited Partnership of which $139,000 was to restore a letter of credit, $58,000 was for non-resident withholding taxes and $40,000 was for REAC inspection related cost and $88,000 which was utilized to make repairs and make state withholding payments. The advances were recorded as expense. While not obligated to make advances to the Local Limited Partnerships, the Partnership made this advance to protect its economic investment in the Local Limited Partnership.

Note 2 - Investments in and Advances To Local Limited Partnerships

9 Months Ended

Sep. 30, 2014

Note 2 - Investments in and Advances To Local Limited Partnerships

NOTE 2 - INVESTMENTS IN AND ADVANCES TO LOCAL LIMITED PARTNERSHIP

As of September 30, 2014 and December 31, 2013, the Partnership held limited partnership interests in zero and one Local Limited Partnership. As of December 31, 2013, the Local Limited Partnership owned a residential low-income rental project consisting of 126 apartment units. The Local Limited Partnership may be encumbered by mortgage notes payable to or insured by various governmental agencies.

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 respective ownership percentages (90%). Distributions of surplus cash from operations from the Local Limited Partnership is restricted by the Local Limited Partnership's Regulatory Agreement with the United States Department of Housing and Urban Development (“HUD”). These restrictions limit the distribution to a portion, generally less than 10% of the initial invested capital. The excess surplus cash is deposited into a residual receipts reserve, of which the ultimate realization by the Partnership is uncertain as HUD frequently retains it upon sale or dissolution of the Local Limited Partnership. The Partnership is allocated profits and losses and receives distributions from refinancings and sales in accordance with the Local Limited Partnership's partnership agreement. The agreement limits the Partnership’s distributions to an amount substantially less than its ownership percentage in the Local Limited Partnership.

The 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 it. Therefore, it does not recognize losses once its investment in the Local Limited Partnership reaches zero. Distributions from the Local Limited Partnership is 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. An operating distribution of approximately $4,000 was received from one Local Limited Partnership, Oakridge Park II, during the nine months ended September 30, 2013.

In September 2013, the Partnership assigned its limited partnership interest in Oakridge Park II to an affiliate of the Operating General Partner for a total of $13,200. This amount was recognized as a gain on sale of Local Limited Partnerships as the partnership had no investment balance remaining in Oakridge Park II at the date of the assignment.

In November 2013, Crockett Manor sold its investment property for net proceeds of approximately $40,000.

In December 2013, the Partnership assigned its limited partnership interest in Hummelstown for approximately $190,000 and Kentucky Manor for approximately $25,000.

On September 29, 2014, the Partnership assigned 100% of its interests in Park Place Associates to the local general partner in exchange for a payment of $900,000. In addition, the Partnership received repayment of advances of approximately $139,000. Based on the assignment agreement, the Partnership expensed approximately $100,000 in advances which were included in the investment balance that will not be repaid and recognized an impairment charge of approximately $434,000 during the nine months ended September 30, 2014.

The Partnership reviews its investment in Local Limited Partnerships to determine if there has been any permanent impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. If the sum of the expected future cash flows is less than the carrying amount of the assets, the Partnership recognizes an impairment loss. During the nine months ended September 30, 2014, the Partnership recognized impairment charges of approximately $434,000 with respect to its investment in the Local Limited Partnership.

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

At times, advances are made to the Local Limited Partnerships. Advances made by the Partnership to the individual Local Limited Partnerships are considered part of the Partnership’s investment in the Local Limited Partnership. Advances made to Local Limited Partnerships for which the investment has been reduced to zero are charged to expense. Advances from the Partnership to the Local Limited Partnership during the nine months ended September 30, 2014, was approximately $155,000 of which $71,000 was advanced to Crockett Manor for wind up expenses and $84,000 to Park Place for non-resident withholding taxes and repairs. During the nine months ended September 30, 2013, the Partnership advanced approximately $237,000 to Park Place Limited Partnership of which $139,000 was to restore a letter of credit, $58,000 was for non-resident withholding taxes and $40,000 was for REAC inspection related cost and $88,000 which was utilized to make repairs and make state withholding payments. The advances were recorded as expense. While not obligated to make advances to the Local Limited Partnerships, the Partnership made this advance to protect its economic investment in the Local Limited Partnership.