Note 4 - Notes Payable	3 Months Ended
Mar. 31, 2013
Notes
Note 4 - Notes Payable	Note 4 – NOTES PAYABLE Two of the Partnership's three remaining investments involved purchases of partnership interests from partners who subsequently withdrew from the operating partnership. As of both March 31, 2013 and December 31, 2012, the Partnership is obligated for non-recourse notes payable of approximately $2,341,000 to the sellers of the partnership interests, bearing interest at 9.5 percent annually. The Partnership recognized interest expense of approximately $50,000 and $141,000 for the three months ended March 31, 2013 and 2012, respectively. Accrued interest is approximately $5,800,000 and $5,750,000 as of March 31, 2013 and December 31, 2012, respectively. These notes matured between December 1999 and December 2004. These obligations and related interest are collateralized by the Partnership's investments in the Local Limited Partnerships and are payable only out of cash distributions from the Local Limited Partnerships, as defined in the notes. Unpaid interest was due at maturity of the notes. Both of the notes payable have matured and remain unpaid at March 31, 2013. In 2005, the Partnership entered into an agreement with the holder of the non-recourse notes payable collateralized by the Partnership’s investment in five Local Limited Partnerships with notes payable in which the note holder agreed to forebear taking any action under these notes pending the purchase by the note holder of a series of projects including the properties owned by ten of the Local Limited Partnerships. These ten Local Limited Partnerships sold their respective investment properties to the note holder during 2012. In connection with these sales, non-recourse notes payable of approximately $2,329,000 and associated accrued interest of approximately $6,036,000 were extinguished during the second and third quarters of 2012. The sales of Oakwood Park Apartments I, Oakwood Park Apartments II, Richards Park, Birch Manor I and Birch Manor II had no impact on the Partnership’s notes payable outstanding. The holder of one non-recourse note payable extinguished the note payable of approximately $1,400,000 and associated accrued interest of approximately $3,837,000 during the fourth quarter of 2012 in connection with the Partnership’s sale of its limited Partnership interest in Aristocrat Manor to the local general partner of this Local Limited Partnership. There were no principal or interest payments made on these notes during the three months ended March 31, 2013 or 2012. The Partnership has agreements with the non-recourse note holder for the remaining two notes payable in which the note holder agreed to forebear taking any action under these notes in order to permit the Partnership to negotiate the sale of its limited partnership interests in these Local Limited Partnerships to the local general partner of the respective Local Limited Partnerships. As discussed in “Note 3”, the holder of two non-recourse notes payable cancelled and extinguished the notes payable of an aggregate of approximately $920,000 and associated accrued interest of approximately $2,419,000 at March 31, 2013 in connection with the Partnership’s sale of its limited partnership interest in Bluewater to the local general partner of this Local Limited Partnership. The other sale is expected to close during 2013.

Note 4 - Notes Payable

3 Months Ended

Mar. 31, 2013

Note 4 – NOTES PAYABLE

Two of the Partnership's three remaining investments involved purchases of partnership interests from partners who subsequently withdrew from the operating partnership. As of both March 31, 2013 and December 31, 2012, the Partnership is obligated for non-recourse notes payable of approximately $2,341,000 to the sellers of the partnership interests, bearing interest at 9.5 percent annually. The Partnership recognized interest expense of approximately $50,000 and $141,000 for the three months ended March 31, 2013 and 2012, respectively. Accrued interest is approximately $5,800,000 and $5,750,000 as of March 31, 2013 and December 31, 2012, respectively. These notes matured between December 1999 and December 2004. These obligations and related interest are collateralized by the Partnership's investments in the Local Limited Partnerships and are payable only out of cash distributions from the Local Limited Partnerships, as defined in the notes. Unpaid interest was due at maturity of the notes. Both of the notes payable have matured and remain unpaid at March 31, 2013.

In 2005, the Partnership entered into an agreement with the holder of the non-recourse notes payable collateralized by the Partnership’s investment in five Local Limited Partnerships with notes payable in which the note holder agreed to forebear taking any action under these notes pending the purchase by the note holder of a series of projects including the properties owned by ten of the Local Limited Partnerships. These ten Local Limited Partnerships sold their respective investment properties to the note holder during 2012. In connection with these sales, non-recourse notes payable of approximately $2,329,000 and associated accrued interest of approximately $6,036,000 were extinguished during the second and third quarters of 2012. The sales of Oakwood Park Apartments I, Oakwood Park Apartments II, Richards Park, Birch Manor I and Birch Manor II had no impact on the Partnership’s notes payable outstanding.

The holder of one non-recourse note payable extinguished the note payable of approximately $1,400,000 and associated accrued interest of approximately $3,837,000 during the fourth quarter of 2012 in connection with the Partnership’s sale of its limited Partnership interest in Aristocrat Manor to the local general partner of this Local Limited Partnership.

There were no principal or interest payments made on these notes during the three months ended March 31, 2013 or 2012. The Partnership has agreements with the non-recourse note holder for the remaining two notes payable in which the note holder agreed to forebear taking any action under these notes in order to permit the Partnership to negotiate the sale of its limited partnership interests in these Local Limited Partnerships to the local general partner of the respective Local Limited Partnerships. As discussed in “Note 3”, the holder of two non-recourse notes payable cancelled and extinguished the notes payable of an aggregate of approximately $920,000 and associated accrued interest of approximately $2,419,000 at March 31, 2013 in connection with the Partnership’s sale of its limited partnership interest in Bluewater to the local general partner of this Local Limited Partnership. The other sale is expected to close during 2013.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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