INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS

3 Months Ended

Jun. 30, 2011

INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS [Abstract]

INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS

NOTE 2 - INVESTMENTS IN LOCAL LIMITED PARTNERSHIPS

As of June 30, 2011 and March 31, 2011, the Partnership owns Local Limited Partnership interests in five and six Local Limited Partnerships, respectively. Each of these Local Limited Partnership's own one Housing Complex consisting of an aggregate of 226 and 282 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 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 three months ended June 30, 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

	Revenues	$	336,000	$	567,000

	Expenses
	Interest expense		49,000		114,000
	Depreciation and amortization		111,000		171,000
	Operating expenses		292,000		444,000
	Total expenses		452,000		729,000

	Net loss	$	(116,000)	$	(162,000)
	Net loss allocable to the Partnership	$	(114,000)	$	(161,000)
	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 required to sustain operations of such Local Limited Partnerships.

- Definition

The entire disclosure for equity investment, or group of investments, for which combined disclosure is appropriate, including: (a) the name of each investee and percentage of ownership of common stock, (b) accounting policies for investments in common stock, (c) difference between the amount at which the investment is carried and the amount of underlying equity in net assets and the accounting treatment of the difference, (d) the total fair value of each identified investment for which a market value is available, (e) summarized information as to assets, liabilities, and results of operations of the investees (for investments in unconsolidated subsidiaries, common stock of joint ventures, or other investments using the equity method), and (f) material effects of possible conversions, exercises, or contingent issuances of the investee. Other disclosures include (a) the names of any investee in which the investor owns 20 percent or more of the voting stock and investment is not accounted for using the equity method, and the reasons why not, and (b) the names of any investee in which the investor owns less than 20 percent of the voting stock and the investment is accounted for using the equity method, and the reasons why it is.

+ References+ Details

WNC CALIFORNIA HOUSING TAX CREDITS II LP 10-Q