Investments in Local Limited Partnerships

12 Months Ended

Mar. 31, 2013

Equity Method Investments and Joint Ventures [Abstract]

Investments in Local Limited Partnerships

NOTE 2 - INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS

As of March 31, 2013 and 2012 the Partnership owned Local Limited Partnership interests in 2 and 14, Local Limited Partnerships, respectively, each of which owns one Housing Complex, consisting of an aggregate of 189 and 653 apartment units, respectively. The respective 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 Agreements, of the operating profits and losses, taxable income and losses and Low Income Housing Tax Credits of the Local Limited Partnerships.

The Partnership’s investments in Local Limited Partnerships as shown in the balance sheets at March 31, 2013 and 2012 are approximately $2,516,000 and $396,000, respectively less than the Partnership’s equity at the preceding December 31 as shown in the Local Limited Partnerships’ combined condensed financial statements presented below. This difference is primarily due to acquisition, selection, and other costs related to the acquisition of the investments which have been capitalized in the Partnership’s investment account, impairment losses recorded in the Partnership’s investment account and capital contributions payable to the Local Limited Partnerships which were netted against partner capital in the Local Limited Partnership’s financial statements.

For all periods presented, the investment accounts in certain Local Limited Partnerships have reached a zero balance. Consequently, a portion of the Partnership’s estimate of its share of losses for the years ended March 31, 2013, 2012, and 2011 amounting to approximately $34,000, $253,000 and $563,000, respectively, have not been recognized. As of March 31, 2013, the aggregate share of net losses not recognized by the Partnership amounted to approximately $27,000.

The financial information from the individual financial statements of the Local Limited Partnerships include rental and interest subsidies. Rental subsidies are included in total revenues and interest subsidies are generally netted in interest expense. Approximate combined condensed financial information from the individual financial statements of the Local Limited Partnerships as of December 31 and for the years then ended is as follows:

COMBINED CONDENSED BALANCE SHEETS

	2012			2011
ASSETS
Buildings and improvements (net of accumulated depreciation as of December 31, 2012 and 2011 of $5,451,000 and $15,330,000, respectively)	$	4,577,000		$	12,501,000
Land		369,000			1,047,000
Other assets		681,000			2,095,000
Total assets	$	5,627,000		$	15,643,000
LIABILITIES
Mortgage payable	$	4,114,000		$	15,040,000
Due to affiliates		3,000			154,000
Other liabilities		294,000			1,081,000
Total liabilities		4,411,000			16,275,000
PARTNERS’ EQUITY (DEFICIT)
WNC Housing Tax Credit Fund IV, L.P., Series 2		2,516,000			396,000
Other partners		(1,300,000	)		(1,028,000	)
Total partners’ equity deficit		1,216,000			(632,000	)
Total liabilities and partners’ equity deficit	$	5,627,000		$	15,643,000

COMBINED CONDENSED STATEMENTS OF OPERATIONS

	2012			2011			2010
Revenues	$	1,384,000		$	3,914,000		$	4,234,000
Expenses:
Operating expenses		864,000			2,738,000			3,079,000
Interest expense		228,000			447,000			634,000
Depreciation and amortization		325,000			984,000			1,090,000
Total expenses		1,417,000			4,169,000			4,803,000
Net loss	$	(33,000	)	$	(255,000	)	$	(569,000	)
Net loss allocable to the Partnership	$	(34,000	)	$	(253,000	)	$	(563,000	)
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 and/or the Local General Partner may be required to sustain the operations of such Local Limited Partnerships.