Investments in Local Limited Partnerships

9 Months Ended

Dec. 31, 2013

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments Disclosure [Text Block]

1.      Investments in Local Limited Partnerships

The Fund currently has a limited partner interest in one Local Limited Partnership which was organized for the purpose of owning and operating government-assisted, multi-family housing complexes. The Fund's ownership interest in the Local Limited Partnership is 77%.  The Fund may have negotiated or may negotiate options with the Local General Partner to purchase or sell the Fund’s interests in the Local Limited Partnership 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 December 31, 2013 and March 31, 2013:

	December 31		March 31
Capital contributions paid to Local Limited Partnerships	$	1,697,298	$	4,015,376
Cumulative equity in losses of Local Limited Partnerships (excluding    cumulative unrecognized losses of $515,615 and $945,515 at    December 31 and March 31, 2013, respectively)		(1,712,856)		(2,971,814)
Cumulative cash distributions received from Local Limited Partnerships		-		(43,323)
Investments in Local Limited Partnerships before adjustments		(15,558)		1,000,239
Excess investment costs over the underlying assets acquired:
Acquisition fees and expenses		21,077		49,892
Cumulative amortization of acquisition fees and expenses		(5,519)		(15,131)
Investments in Local Limited Partnerships before impairment		-		1,035,000
Cumulative impairment on investments in Local Limited Partnerships		-		(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 income (losses) of the Local Limited Partnerships for the nine months ended December 31, 2013 and 2012 is $796,803 and ($423,985), respectively.  For the nine months ended December 31, 2013 and 2012, the Fund has not recognized $24,340 and $543,360, 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 $454,240 and $59,653 are included in losses recognized during the nine months ended December 31, 2013 and 2012, respectively.

During the nine months ended December 31, 2013, the property owned by one of the Local Limited Partnerships was sold.  The sale resulted in a distribution to the Fund of $1,425,429.  As a result of the property sale, the Local Limited Partnership was dissolved and the Fund no longer has an interest in this Local Limited Partnership as of December 31, 2013.  The Fund’s net investment value in the Local Limited Partnership at the time of the sale was zero.

During the nine months ended December 31, 2012, the Fund disposed of its interest in two Local Limited Partnerships.  The Fund received $2,015,000 from the disposition of these interests.  The Fund’s investment value at the time of the dispositions was $2,044,403 resulting in a loss on disposition of investments in Local Limited Partnerships of $29,403 for the nine months ended December 31, 2012.