INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS

9 Months Ended

Dec. 31, 2011

Notes to Financial Statements

INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS

NOTE 2 - INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS

As of December 31, 2011 and March 31, 2011, the Partnership owns Local Limited Partnership interests in 15 and 18 Local Limited Partnerships, respectively.  As of December 31, 2011 and March 31, 2011, these Local Limited Partnership’s own one Housing Complex consisting of an aggregate of 635 and 717 apartment units, respectively. The Local General Partners of the Local Limited Partnerships manage the day to day operations of the entities. Significant Local Limited Partnership business decisions require approval from the Partnership. The Partnership, as a Limited Partner, is generally entitled to 99%, as specified in the Local Limited Partnership governing agreements, of the operating profits and losses, taxable income and losses, and Low Income Housing Tax Credits of the Local Limited Partnerships.

Selected financial information for the nine months ended December 31, 2011 and 2010 from the unaudited combined condensed financial statements of the Local Limited Partnerships in which the partnership has invested is as follows:

COMBINED CONDENSED STATEMENTS OF OPERATIONS
	2011			2010
Revenue	$	2,912,000		$	3,176,000
Expenses:
Interest expense		451,000			476,000
Depreciation and amortization		768,000			817,000
Operating expenses		2,125,000			2,309,000
Total expenses		3,344,000			3,602,000
Net loss	$	(432,000	)	$	(426,000	)
Net loss allocable to the Partnership	$	(427,000	)	$	(422,000	)
Net loss recorded by the Partnership	$	-		$	-

Certain Local Limited Partnerships have incurred significant operating losses and/or have working capital deficiencies.  In the event these Local Limited Partnerships continue to incur significant operating losses, additional capital contributions by the Partnership may be require to sustain operations of such Local Limited Partnerships.  If additional capital contributions are not made when they are required, the Partnership's investments in certain of such Local Limited Partnerships could be impaired, and the loss and recapture of the related Low Income Housing Tax Credits could occur.