Real Estate Associates LTD Ii (REAL2) 10-K 31 Mar 15 2014 FY Annual report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	12 Months Ended
	Dec. 31, 2014	Jun. 30, 2014
Document and Entity Information:
Entity Registrant Name	REAL ESTATE ASSOCIATES LTD II
Document Type	10-K
Document Period End Date	31-Dec-14
Amendment Flag	FALSE
Entity Central Index Key	314237
Current Fiscal Year End Date	-19
Entity Common Stock, Shares Outstanding	10,507
Entity Public Float		$0
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	FY

Balance_Sheets

Balance Sheets (USD $)	Dec. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
ASSETS
Cash and cash equivalents	$601	$766
Accounts Receivable	103	25
Total assets	704	791
Liabilities:
Accounts payable and accrued expenses	20	22
Partners' capital (deficiency)
General partners	-135	-134
Limited partners	819	903
Total partners' capital (deficiency)	684	769
Total liabilities and partners' capital (deficiency)	$704	$791

Statements_of_Operations

Statements of Operations (USD $)	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Operating Expenses:
Management fees - General Partner	$8	$18
Administrative	31	19
Legal and accounting	51	38
Total operating expenses	90	75
Loss from partnership operations	-90	-75
Gain on sale of interests in Local Limited Partnerships	0	38
Distribution in excess of investment in Local Limited Partnership	5	9
Net income (loss)	-85	-28
Net income (loss) allocated to general partners (1%)	-1
Net income (loss) allocated to limited partners (99%)	($84)	($28)
Net Income (Loss) per limited partnership interest	($7.99)	($2.66)
Distribution per limited partnership interest		$142.45

Statements_of_Changes_in_Partn

Statements of Changes in Partners' Capital (Deficiency) (USD $)	General Partners	Limited Partners	Total
In Thousands
Partners' capital (deficiency), beginning balance at Dec. 31, 2012	($134)	$2,431	$2,297
Distribution to limited partners		-1,500	-1,500
Net loss		-28	-28
Partners' capital (deficiency), ending balance at Dec. 31, 2013	-134	903	769
Net loss	-1	-84	-85
Partners' capital (deficiency), ending balance at Dec. 31, 2014	($135)	$819	$684

Statements_of_Cash_Flows

Statements of Cash Flows (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income (loss)	($85)	($28)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Distributions in excess of investments	-5	-9
Gain on sale of interests in Local Limited Partnerships	0	-38
Change in accounts:
Change in Accounts Receivable - Limited Partners	-78	-25
Change in Accounts payable and accrued expenses	-2	-10
Net cash provided by (used in) operating activities	-170	-110
Cash flows provided by (used in) investing activities:
Distributions in excess of investments	5	9
Proceeds from sale of interests in Local Limited Partnerships		38
Net cash provided by (used in) investing activities	5	47
Cash flows provided by (used) in financing activities:
Distribution to limited partners		-1,500
Net decrease in cash and cash equivalents	-165	-1,563
Cash and cash equivalents, beginning of period	766	2,329
Cash and cash equivalents, end of period	$601	$766

Note_1_Organization_and_Summar

Note 1 - Organization and Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2014
Notes
Note 1 - Organization and Summary of Significant Accounting Policies	NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
	Organization
	Real Estate Associates Limited II (the “Partnership”) was formed under the California Limited Partnership Act on December 4, 1979.  The Partnership was formed to invest in other limited partnerships which own and operate primarily federal, state or local government-assisted housing projects. The general partners are National Partnership Investments Associates, a California limited partnership, and National Partnership Investments, LLC, a California limited liability company (“NAPICO” or the “General Partner”).  The business of the Partnership is conducted primarily by NAPICO. The General Partner is a subsidiary of Bethesda Holdings II, LLC, a privately held real estate asset management company (“Bethesda”).  Bethesda acquired the General Partner on December 19, 2012, pursuant to an option agreement with Aimco/Bethesda Holdings, Inc., a subsidiary of Apartment Investment and Management Company (“Aimco”), a publicly traded real estate investment trust.
	The general partners share a one percent interest in profits and losses of the Partnership.  The limited partners share the remaining 99 percent interest in proportion to their respective investments.
	The Partnership shall be dissolved only upon the expiration of 52 complete calendar years (December 31, 2031) from the date of the formation of the Partnership or the occurrence of various other events as specified in the terms of the Partnership Agreement.
	Upon total or partial liquidation of the Partnership or the disposition or partial disposition of a project or project interest and distribution of the proceeds, the general partners will be entitled to a liquidation fee as stipulated in the Partnership agreement.  The limited partners will have a priority return equal to their invested capital attributable to the project(s) or project interest(s) sold. The general partners' liquidation fee may accrue but shall not be paid until the limited partners have received distributions equal to 100 percent of their capital contributions. No such fees were accrued or paid during the years ended December 31, 2014 and 2013.
	Basis of Presentation
	The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States.
	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from those estimates.
	Method of Accounting for Investment in Local Limited Partnership
	The investment in the local limited partnership (the “Local Limited Partnership”) is accounted for using the equity method.
	Abandoned Units
	During 2014 and 2013, the number of Limited Partnership Interests decreased by 7 and 16 interests, respectively, due to limited partners abandoning their interests. At December 31, 2014 and 2013, the Partnership had outstanding 10,507 and 10,514 Limited Partnership Interests, respectively. In abandoning his or her Limited Partnership Interest(s), a limited partner relinquishes all right, title, and interest in the partnership as of the date of abandonment.
	Net Income (loss) and Distribution Per Limited Partnership Interest
	Net income (loss) per limited partnership interest and distribution per limited partnership interest were computed by dividing the limited partners’ share of net income (loss) and distributions by the number of limited partnership interests outstanding at the beginning of the year. The number of limited partnership interests used was 10,514 and 10,530 for the years ended December 31, 2014 and 2013, respectively.
	Cash and Cash Equivalents
	Cash and cash equivalents include cash on hand and in bank accounts.  At certain times, the amount of cash deposited at a bank may exceed the limit on insured deposits.
	Impairment of Long-Lived Assets
	The Partnership reviews its investments in long-lived assets to determine if there have been any impairments whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.  If the sum of the expected future cash flows is less than the carrying amount of the assets, the Partnership recognizes an impairment loss.  There were no impairment losses recognized during the years ended December 31, 2014 and 2013.
	Segment Reporting
	Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 280-10, “Segment Reporting”, established standards for the way that public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports. ASC Topic 280-10 also established standards for related disclosures about products and services, geographic areas and major customers. As defined in ASC Topic 280-10, the Partnership has only one reportable segment.
	Fair Value of Financial Instruments
	ASC Topic 825, “Financial Instruments”, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate fair value. Fair value is defined as the amount at which the instruments could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.  The Partnership believes that the carrying amounts of other assets and liabilities reported on the balance sheet at December 31, 2014 that require such disclosure approximated their fair value due to the short-term maturity of these instruments.
	Variable Interest Entities
	The Partnership consolidates any variable interest entities in which the Partnership holds a variable interest and is the primary beneficiary. Generally, a variable interest entity, or VIE, is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group the holders of the equity investment at risk lack (i) the ability to make decisions about an entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. The primary beneficiary of a VIE is generally the entity that has (a) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (b) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.
	In determining whether it is the primary beneficiary of a VIE, the Partnership considers qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of the Partnership’s investment; the obligation or likelihood for the Partnership or other investors to provide financial support; and the similarity with and significance to the business activities of the Partnership and the other investors.  Significant judgments related to these determinations include estimates about the current and future fair values and performance of real estate held by these VIEs and general market conditions.
	At December 31, 2014 and 2013, the Partnership held variable interests in one VIE, for which the Partnership was not the primary beneficiary.  The Partnership has concluded, based on its qualitative consideration of the partnership agreement, the partnership structure and the role of the general partner in the Local Limited Partnership, that the general partner of the Local Limited Partnership is the primary beneficiary of the respective Local Limited Partnership.
	In making this determination, the Partnership considered the following factors:
	·         the general partner conducts and manages the business of the Local Limited Partnerships;
	·         the general partner has the responsibility for and sole discretion over selecting a property management agent for the Local Limited Partnership’s underlying real estate properties;
	·         the general partner is responsible for approving operating and capital budgets for the properties owned by the Local Limited Partnership;
	·         the general partner is obligated to fund any recourse obligations of the Local Limited Partnership;
	·         the general partner is authorized to borrow funds on behalf of the Local Limited Partnership; and
	·         the Partnership, as a limited partner in the Local Limited Partnership, does not have the ability to direct or otherwise significantly influence the activities of the Local Limited Partnership that most significantly impact such entity’s economic performance.
	The VIE at December 31, 2014 consists of a Local Limited Partnership that is directly engaged in the ownership and management of one apartment property with a total of 48 units.  The Partnership is involved with the VIE as a non-controlling limited partner equity holder. The Partnership’s maximum exposure to loss as a result of its involvement with the unconsolidated VIE is limited to the Partnership’s recorded investments in and receivables from the VIE, which was zero at both December 31, 2014 and 2013. The Partnership may be subject to additional losses to the extent of any financial support that the Partnership voluntarily provides in the future.

Note_2_Investments_in_and_Adva

Note 2 - Investments in and Advances To Local Limited Partnerships	12 Months Ended
	Dec. 31, 2014
Notes
Note 2 - Investments in and Advances To Local Limited Partnerships	NOTE 2 – INVESTMENTS IN AND ADVANCES TO THE LOCAL LIMITED PARTNERSHIP
	As of December 31, 2014 and 2013, the Partnership holds limited partnership interests in one Local Limited Partnership. As of December 31, 2014, the Local Limited Partnership owns a residential low income rental project consisting of 48 apartment units. The mortgage loans of the project are payable to or insured by various governmental agencies.
	The Partnership, as a limited partner, does not have a contractual relationship with the Local Limited Partnerships or exercise control over the activities and operations, including refinancing or selling decisions, of the Local Limited Partnerships that would require or allow for consolidation. Accordingly, the Partnership accounts for its investments in the Local Limited Partnerships using the equity method. The Partnership is allocated profits and losses of the Local Limited Partnerships based upon its respective ownership percentage of 99%. Distributions of surplus cash from operations from the Local Limited Partnership are restricted by the Local Limited Partnership’s Regulatory Agreements with the United States Department of Housing and Urban Development (“HUD”) and/or are restricted by the terms of the mortgages encumbering the Projects. These restrictions limit the distribution to a portion, generally less than 10%, of the initial invested capital. The excess surplus cash is deposited into a residual receipts reserve, of which the ultimate realization by the Partnership is uncertain as HUD frequently retains it upon sale or dissolution of the Local Limited Partnership. The Partnership is allocated profits and losses and receives distributions from refinancings and sales in accordance with the Local Limited Partnerships’ partnership agreements. These agreements usually limit the Partnership’s distributions to an amount substantially less than its ownership percentage in the Local Limited Partnership.
	The individual investments are carried at cost plus the Partnership’s share of the Local Limited Partnership’s profits less the Partnership’s share of the Local Limited Partnership’s losses, distributions and impairment charges. The Partnership is not legally liable for the obligations of the Local Limited Partnerships and is not otherwise committed to provide additional support to them. Therefore, it does not recognize losses once its investment in each of the Local Limited Partnerships reaches zero. Distributions from the Local Limited Partnerships are accounted for as a reduction of the investment balance until the investment balance is reduced to zero. When the investment balance has been reduced to zero, subsequent distributions received are recognized as income in the accompanying statements of operations. Operating distributions from the Local Limited Partnerships in which the Partnership’s investment in the Local Limited Partnerships has been reduced to zero were approximately $5,000 and $9,000 for the years ended December 31, 2014 and 2013, respectively.
	At times, advances are made to the Local Limited Partnership. Advances made by the Partnership to the Local Limited Partnership are considered part of the Partnership’s investment in the limited partnerships. Advances made to Local Limited Partnerships for which the investment has been reduced to zero are generally charged to expense.
	While not obligated to make advances to the Local Limited Partnerships, the Partnership made this advance in order to protect its economic investment in the Local Limited Partnership. There were no advances made during the years ended December 31, 2014 and 2013, respectively.
	For investments where the Partnership has determined that the carrying value of its investment approximates the estimated fair value of the investment, the Partnership’s policy is to recognize equity in income of the Local Limited Partnership only to the extent of distributions received and amortization of acquisition costs from the Local Limited Partnership. Therefore, the Partnership limits its recognition of equity earnings to the amount it expects to ultimately realize.
	The Partnership has no carrying value in the investment in Local Limited Partnership as of December 31, 2014 and 2013.
	In October 2013, the Partnership sold its limited partnership interest in Magnolia Estates to an affiliate of the Local Operating General Partner. The Partnership received $16,500 in proceeds from the sale. The Partnership's investment balance in this Local Partnership was zero at the time of sale.
	In October 2013, the Partnership sold its limited partnership interest in Crystal Springs to an affiliate of the Local Operating General Partner. The Partnership received $7,700 in proceeds from the sale. The Partnership's investment balance in this Local Partnership was zero at the time of sale.
	In October 2013, the Partnership sold its limited partnership interest in Azalea Court to an affiliate of the Local Operating General Partner. The Partnership received $13,200 in proceeds from the sale. The Partnership's investment balance in this Local Partnership was zero at the time of sale.
	The difference between the investment per the accompanying balance sheets at December 31, 2014 and 2013 and the partners’ deficiency per the Local Limited Partnerships' condensed combined financial statements is due primarily to cumulative unrecognized equity in losses of certain Local Limited Partnerships, costs capitalized to the investment account, cumulative distributions recognized as income and recognition of impairment losses.
	Although the Partnership’s recorded value of its investments and its equity in distributions from the Local Limited Partnerships are not individually material to the overall financial position of the Partnership, the unaudited condensed combined balance sheets of the aforementioned Local Limited Partnership as of December 31, 2014 and 2013, and the unaudited condensed combined results of operations for each of the two years in the periods ended December 31, 2014 and 2013 are as follows (2013 exclude the operations of Magnolia Estates, Crystal Springs and Azalea Court as the Partnership sold its limited partnership interest in October 2013):
	Condensed Combined Balance Sheets of the Local Limited Partnership	December 31,
		2014		2013
		(in thousands – unaudited)
	Assets:
	Land	$ 102		$ 102
	Buildings and improvements	2,108		2,106
	Accumulated depreciation	(1,755)		(1,726)
	Other assets	394		365
	Total Assets	$ 849		$ 847
	Liabilities and Partners’ Deficiency:
	Liabilities:
	Mortgage notes payable	$ 1,435		$ 1,450
	Other liabilities	108		128
	Total Liabilities	1,543		1,578
	Partners’ Deficiency	(694)		(731)
	Total Liabilities & Partners' Deficiency	$ 849		$ 847
	Condensed Combined Results of Operations
	of the Local Limited Partnership
		Years Ended December 31,
		2014				2013
		(in thousands – unaudited)
	Revenues
	Rental income	$ 430					$ 435
	Other income	14					5
	Total revenues	444					440
	Expenses
	Depreciation and amortization	31					38
	Interest	57					59
	Operating	317					363
	Total expenses	405					460
	Income (loss) from continuing operations	$ 39					$ (20)
	Real Estate and Accumulated Depreciation of the Local Limited Partnership
	The following unaudited data is a summary of real estate, accumulated depreciation and encumbrances of the Local Limited Partnership. (in thousands-unaudited)
	Description	Encumbrances	Land	Buildings and Related Personal Property	Total	Accumulated Depreciation	Date of Construction
	Lakeside Apartments	$ 1,435	$ 102	$ 2,108	$ 2,210	$ 1,755	10/80-6/81
	Reconciliation of real estate (unaudited)
		Years Ended December 31,
		2014			2013
		(in thousands)
	Balance at beginning of year	$ 2,208		$ 2,200
	Additions during the year	2		8
	Disposal of property	--		--
	Balance at end of year	$ 2,210		$ 2,208
	Reconciliation of accumulated depreciation (unaudited)
		Years Ended December 31,
		2014	2013
		(in thousands)
	Balance at beginning of year	$ 1,726		$ 1,689
	Disposal of property	--		--
	Depreciation expense for the year	29		37
	Balance at end of year	$ 1,755		$ 1,726
The current policy of the United States Department of Housing and Urban Development (“HUD”) is to not renew the Housing Assistance Payment (“HAP”) Contracts on a long term basis on the existing terms.  In connection with renewals of the HAP Contracts under current law and policy, the amount of rental assistance payments under renewed HAP Contracts will be based on market rentals instead of above market rentals, which may not be the case under existing HAP Contracts.  The payments under the renewed HAP Contracts may not be in an amount that would provide sufficient cash flow to permit owners of properties subject to HAP Contracts to meet the debt service requirements of existing loans insured by the Federal Housing Administration of HUD (“FHA”) unless such mortgage loans are restructured.  In order to address the reduction in payments under HAP Contracts as a result of current policy, the Multi-family Assisted Housing Reform and Affordability Act of 1997 (“MAHRAA”) provides for the restructuring of mortgage loans insured by the FHA with respect to properties subject to the Section 8 program.  Under MAHRAA, an FHA-insured mortgage loan can be restructured into a first mortgage loan which will be amortized on a current basis and a low interest second mortgage loan payable to FHA which will only be payable on maturity of the first mortgage loan.  This restructuring results in a reduction in annual debt service payable by the owner of the FHA-insured mortgage loan and is expected to result in an insurance payment from FHA to the holder of the FHA-insured loan due to the reduction in the principal amount. MAHRAA also phases out project-based subsidies on selected properties serving families not located in rental markets with limited supply, converting such subsidies to a tenant-based subsidy.
When the HAP Contracts are subject to renewal, there can be no assurance that the Local Limited Partnerships in which the Partnership has an investment will be permitted to restructure its mortgage indebtedness under MAHRAA.  In addition, the economic impact on the Partnership of the combination of the reduced payments under the HAP Contracts and the restructuring of the existing FHA-insured mortgage loans under MAHRAA is uncertain.

Note_3_Transactions_With_Affil

Note 3 - Transactions With Affiliated Parties	12 Months Ended
	Dec. 31, 2014
Notes
Note 3 - Transactions With Affiliated Parties	NOTE 3 – TRANSACTIONS WITH AFFILIATED PARTIES
	Under the terms of the Restated Certificate and Agreement of Limited Partnership, the Partnership is liable to NAPICO for an annual management fee equal to 0.4 percent of the Partnership’s original remaining invested assets of the Local Limited Partnerships and is calculated at the beginning of each year. Invested assets are defined as the costs of acquiring project interests, including the proportionate amount of the mortgage loans related to the Partnership’s interests in the capital accounts of the respective partnerships. The fee was approximately $8,000 and $18,000 for the years ended December 31, 2014 and 2013, respectively.
	Bethesda Holdings II, LLC (“Bethesda”) and its affiliates owned 57 units or 114 limited partnership interests in the Partnership representing 1.08% of the outstanding limited partnership interests in the Partnership at December 31, 2014.
	It is possible that Bethesda or its affiliates will acquire additional limited partnership interests in the Partnership, either through private purchases or tender offers.  Pursuant to the Partnership Agreement, unitholders holding a majority of the limited partnership interests are entitled to take action with respect to a variety of matters that include, but are not limited to, voting on certain amendments to the Partnership Agreement and voting to remove the General Partner. A “Unit” consists of two limited partnership interests. Bethesda has entered into a management agreement with a holder of 870 Units or 1,740 limited partnership interests in the Partnership representing 16.56% of the outstanding limited partnership interests in the Partnership as of December 31, 2014.  Pursuant to such management agreement, Bethesda manages the business of such holder in exchange for a management fee, part of which includes all payments received by such holder with respect to such holder’s ownership of limited partnership interests in the Partnership.  Although the General Partner owes fiduciary duties to the limited partners of the Partnership, the General Partner also owes fiduciary duties to Bethesda as its sole stockholder. As a result, the duties of the General Partner, as corporate general partner, to the Partnership and its limited partners may come into conflict with the duties of the General Partner to Bethesda as its sole stockholder.

Note_4_Income_Taxes

Note 4 - Income Taxes	12 Months Ended
	Dec. 31, 2014
Notes
Note 4 - Income Taxes	NOTE 4 – INCOME TAXES
	The Partnership is not taxed on its income. The partners are taxed in their individual capacities based upon their distributive share of the Partnership's taxable income or loss and are allowed the benefits to be derived from off-setting their distributive share of the tax losses against taxable income from other sources subject to passive loss limitations. The taxable income or loss differs from amounts included in the statements of operations because different methods are used in determining the losses of the Local Limited Partnerships as discussed below.
	A reconciliation is as follows:
		Years Ended December 31,
		2014	2013
		(in thousands)
	Net income per financial statements	$ (85)		$ (28)
	Partnership’s share of Local Limited Partnership	25		1,929
	Income per tax return	$ (60)		$ 1,901
	Income per limited partnership interest	$ (5.64)		$ 179.00
	The following is a reconciliation between the Partnership’s reported amounts and the Federal tax basis of net assets (in thousands):
		31-Dec-14	December 31,2013
		(in thousands)	(in thousands)
	Net assets as reported	$ 684	$ 769
	(Deduct) add:
	Investment in Partnerships	(1,648)	(1,674)
	Deferred offering costs	1,443	1,443
	Receivable from affiliates	2,094	2,094
	Net assets – Federal tax basis	$ 2,573	$ 2,632

Note_5_Contingencies

Note 5 - Contingencies	12 Months Ended
	Dec. 31, 2014
Notes
Note 5 - Contingencies	NOTE 5 – CONTINGENCIES
	The General Partner is involved in various lawsuits arising from transactions in the ordinary course of business. In the opinion of management and the General Partner, the claims will not result in any material liability to the Partnership.

Note_6_Distribution

Note 6 - Distribution	12 Months Ended
	Dec. 31, 2014
Notes
Note 6 - Distribution	NOTE 6 – DISTRIBUTION
	During the year ended December 31, 2014, the Partnership made no distributions to the limited partners. During the year ended December 31, 2013, the Partnership distributed approximately $1,500,000 to the limited partners, or $142.45 per limited partnership interest.

Note_7_Subsequent_Event

Note 7 - Subsequent Event	12 Months Ended
	Dec. 31, 2014
Notes
Note 7 - Subsequent Event	NOTE 7 - SUBSEQUENT EVENTS
	The Partnership’s management evaluated subsequent events through the time this Annual Report on Form 10-K was filed.

Note_1_Organization_and_Summar1

Note 1 - Organization and Summary of Significant Accounting Policies: Basis of Presentation (Policies)	12 Months Ended
	Dec. 31, 2014
Policies
Basis of Presentation	Basis of Presentation
	The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States.

Note_1_Organization_and_Summar2

Note 1 - Organization and Summary of Significant Accounting Policies: Use of Estimates (Policies)	12 Months Ended
	Dec. 31, 2014
Policies
Use of Estimates	Use of Estimates
	The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from those estimates.

Note_1_Organization_and_Summar3

Note 1 - Organization and Summary of Significant Accounting Policies: Method of Accounting For Investment in Local Limited Partnerships (Policies)	12 Months Ended
	Dec. 31, 2014
Policies
Method of Accounting For Investment in Local Limited Partnerships	Method of Accounting for Investment in Local Limited Partnership
	The investment in the local limited partnership (the “Local Limited Partnership”) is accounted for using the equity method.

Note_1_Organization_and_Summar4

Note 1 - Organization and Summary of Significant Accounting Policies: Abandoned Units (Policies)	12 Months Ended
	Dec. 31, 2014
Policies
Abandoned Units	Abandoned Units
	During 2014 and 2013, the number of Limited Partnership Interests decreased by 7 and 16 interests, respectively, due to limited partners abandoning their interests. At December 31, 2014 and 2013, the Partnership had outstanding 10,507 and 10,514 Limited Partnership Interests, respectively. In abandoning his or her Limited Partnership Interest(s), a limited partner relinquishes all right, title, and interest in the partnership as of the date of abandonment.

Note_1_Organization_and_Summar5

Note 1 - Organization and Summary of Significant Accounting Policies: Net Income and Distribution Per Limited Partnership Interest (Policies)	12 Months Ended
	Dec. 31, 2014
Policies
Net Income and Distribution Per Limited Partnership Interest	Net Income (loss) and Distribution Per Limited Partnership Interest
	Net income (loss) per limited partnership interest and distribution per limited partnership interest were computed by dividing the limited partners’ share of net income (loss) and distributions by the number of limited partnership interests outstanding at the beginning of the year. The number of limited partnership interests used was 10,514 and 10,530 for the years ended December 31, 2014 and 2013, respectively.

Note_1_Organization_and_Summar6

Note 1 - Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies)	12 Months Ended
	Dec. 31, 2014
Policies
Cash and Cash Equivalents	Cash and Cash Equivalents
	Cash and cash equivalents include cash on hand and in bank accounts.  At certain times, the amount of cash deposited at a bank may exceed the limit on insured deposits.

Note_1_Organization_and_Summar7

Note 1 - Organization and Summary of Significant Accounting Policies: Impairment of Long-lived Assets (Policies)	12 Months Ended
	Dec. 31, 2014
Policies
Impairment of Long-lived Assets	Impairment of Long-Lived Assets
	The Partnership reviews its investments in long-lived assets to determine if there have been any impairments whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.  If the sum of the expected future cash flows is less than the carrying amount of the assets, the Partnership recognizes an impairment loss.  There were no impairment losses recognized during the years ended December 31, 2014 and 2013.

Note_1_Organization_and_Summar8

Note 1 - Organization and Summary of Significant Accounting Policies: Segment Reporting (Policies)	12 Months Ended
	Dec. 31, 2014
Policies
Segment Reporting	Segment Reporting
	Financial Accounting Standards Board Accounting Standards Codification (“ASC”) Topic 280-10, “Segment Reporting”, established standards for the way that public business enterprises report information about operating segments in annual financial statements and requires that those enterprises report selected information about operating segments in interim financial reports. ASC Topic 280-10 also established standards for related disclosures about products and services, geographic areas and major customers. As defined in ASC Topic 280-10, the Partnership has only one reportable segment.

Note_1_Organization_and_Summar9

Note 1 - Organization and Summary of Significant Accounting Policies: Fair Value of Financial Instruments (Policies)	12 Months Ended
	Dec. 31, 2014
Policies
Fair Value of Financial Instruments	Fair Value of Financial Instruments
	ASC Topic 825, “Financial Instruments”, requires disclosure of fair value information about financial instruments, whether or not recognized in the balance sheet, for which it is practicable to estimate fair value. Fair value is defined as the amount at which the instruments could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.  The Partnership believes that the carrying amounts of other assets and liabilities reported on the balance sheet at December 31, 2014 that require such disclosure approximated their fair value due to the short-term maturity of these instruments.

Recovered_Sheet1

Note 1 - Organization and Summary of Significant Accounting Policies: Variable Interest Entities (Policies)	12 Months Ended
	Dec. 31, 2014
Policies
Variable Interest Entities	Variable Interest Entities
	The Partnership consolidates any variable interest entities in which the Partnership holds a variable interest and is the primary beneficiary. Generally, a variable interest entity, or VIE, is an entity with one or more of the following characteristics: (a) the total equity investment at risk is not sufficient to permit the entity to finance its activities without additional subordinated financial support; (b) as a group the holders of the equity investment at risk lack (i) the ability to make decisions about an entity’s activities through voting or similar rights, (ii) the obligation to absorb the expected losses of the entity, or (iii) the right to receive the expected residual returns of the entity; or (c) the equity investors have voting rights that are not proportional to their economic interests and substantially all of the entity’s activities either involve, or are conducted on behalf of, an investor that has disproportionately few voting rights. The primary beneficiary of a VIE is generally the entity that has (a) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (b) the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE.
	In determining whether it is the primary beneficiary of a VIE, the Partnership considers qualitative and quantitative factors, including, but not limited to: which activities most significantly impact the VIE’s economic performance and which party controls such activities; the amount and characteristics of the Partnership’s investment; the obligation or likelihood for the Partnership or other investors to provide financial support; and the similarity with and significance to the business activities of the Partnership and the other investors.  Significant judgments related to these determinations include estimates about the current and future fair values and performance of real estate held by these VIEs and general market conditions.
	At December 31, 2014 and 2013, the Partnership held variable interests in one VIE, for which the Partnership was not the primary beneficiary.  The Partnership has concluded, based on its qualitative consideration of the partnership agreement, the partnership structure and the role of the general partner in the Local Limited Partnership, that the general partner of the Local Limited Partnership is the primary beneficiary of the respective Local Limited Partnership.
	In making this determination, the Partnership considered the following factors:
	·         the general partner conducts and manages the business of the Local Limited Partnerships;
	·         the general partner has the responsibility for and sole discretion over selecting a property management agent for the Local Limited Partnership’s underlying real estate properties;
	·         the general partner is responsible for approving operating and capital budgets for the properties owned by the Local Limited Partnership;
	·         the general partner is obligated to fund any recourse obligations of the Local Limited Partnership;
	·         the general partner is authorized to borrow funds on behalf of the Local Limited Partnership; and
	·         the Partnership, as a limited partner in the Local Limited Partnership, does not have the ability to direct or otherwise significantly influence the activities of the Local Limited Partnership that most significantly impact such entity’s economic performance.
	The VIE at December 31, 2014 consists of a Local Limited Partnership that is directly engaged in the ownership and management of one apartment property with a total of 48 units.  The Partnership is involved with the VIE as a non-controlling limited partner equity holder. The Partnership’s maximum exposure to loss as a result of its involvement with the unconsolidated VIE is limited to the Partnership’s recorded investments in and receivables from the VIE, which was zero at both December 31, 2014 and 2013. The Partnership may be subject to additional losses to the extent of any financial support that the Partnership voluntarily provides in the future.

Note_2_Investments_in_and_Adva1

Note 2 - Investments in and Advances To Local Limited Partnerships: Condensed Combined Balance Sheets of the Local Partnerships (Tables)	12 Months Ended
	Dec. 31, 2014
Tables/Schedules
Condensed Combined Balance Sheets of the Local Partnerships
	Condensed Combined Balance Sheets of the Local Limited Partnership	December 31,
		2014	2013
		(in thousands – unaudited)
	Assets:
	Land	$ 102	$ 102
	Buildings and improvements	2,108	2,106
	Accumulated depreciation	(1,755)	(1,726)
	Other assets	394	365
	Total Assets	$ 849	$ 847
	Liabilities and Partners’ Deficiency:
	Liabilities:
	Mortgage notes payable	$ 1,435	$ 1,450
	Other liabilities	108	128
	Total Liabilities	1,543	1,578
	Partners’ Deficiency	(694)	(731)
	Total Liabilities & Partners' Deficiency	$ 849	$ 847

Note_2_Investments_in_and_Adva2

Note 2 - Investments in and Advances To Local Limited Partnerships: Estimated condensed combined statements of operations for Local Partnerships (Tables)	12 Months Ended
	Dec. 31, 2014
Tables/Schedules
Estimated condensed combined statements of operations for Local Partnerships
	Condensed Combined Results of Operations
	of the Local Limited Partnership
		Years Ended December 31,
		2014	2013
		(in thousands – unaudited)
	Revenues
	Rental income	$ 430		$ 435
	Other income	14		5
	Total revenues	444		440
	Expenses
	Depreciation and amortization	31		38
	Interest	57		59
	Operating	317		363
	Total expenses	405		460
	Income (loss) from continuing operations	$ 39		$ (20)

Note_2_Investments_in_and_Adva3

Note 2 - Investments in and Advances To Local Limited Partnerships: Schedule of Real estate, accumulated depreciation and encumbrances of the Local Partnerships (Tables)	12 Months Ended
	Dec. 31, 2014
Tables/Schedules
Schedule of Real estate, accumulated depreciation and encumbrances of the Local Partnerships
	Description	Encumbrances	Land	Buildings and Related Personal Property	Total	Accumulated Depreciation	Date of Construction
	Lakeside Apartments	$ 1,435	$ 102	$ 2,108	$ 2,210	$ 1,755	10/80-6/81

Note_2_Investments_in_and_Adva4

Note 2 - Investments in and Advances To Local Limited Partnerships: Schecule of Reconciliation of real estate (Tables)	12 Months Ended
	Dec. 31, 2014
Tables/Schedules
Schecule of Reconciliation of real estate
		Years Ended December 31,
		2014		2013
		(in thousands)
	Balance at beginning of year	$ 2,208	$ 2,200
	Additions during the year	2	8
	Disposal of property	--	--
	Balance at end of year	$ 2,210	$ 2,208

Note_2_Investments_in_and_Adva5

Note 2 - Investments in and Advances To Local Limited Partnerships: Schedule of Reconciliation of accumulated depreciation (Tables)	12 Months Ended
	Dec. 31, 2014
Tables/Schedules
Schedule of Reconciliation of accumulated depreciation
		Years Ended December 31,
		2014	2013
		(in thousands)
	Balance at beginning of year	$ 1,726		$ 1,689
	Disposal of property	--		--
	Depreciation expense for the year	29		37
	Balance at end of year	$ 1,755		$ 1,726

Note_4_Income_Taxes_Reconcilia

Note 4 - Income Taxes: Reconciliation between the Partnership's reported net income and the net income (loss) per tax return (Tables)	12 Months Ended
	Dec. 31, 2014
Tables/Schedules
Reconciliation between the Partnership's reported net income and the net income (loss) per tax return
		Years Ended December 31,
		2014	2013
		(in thousands)
	Net income per financial statements	$ (85)		$ (28)
	Partnership’s share of Local Limited Partnership	25		1,929
	Income per tax return	$ (60)		$ 1,901
	Income per limited partnership interest	$ (5.64)		$ 179.00

Note_4_Income_Taxes_Reconcilia1

Note 4 - Income Taxes: Reconciliation between the Partnership's reported amounts and the Federal tax basis of net assets (Tables)	12 Months Ended
	Dec. 31, 2014
Tables/Schedules
Reconciliation between the Partnership's reported amounts and the Federal tax basis of net assets
		31-Dec-14	December 31,2013
		(in thousands)	(in thousands)
	Net assets as reported	$ 684	$ 769
	(Deduct) add:
	Investment in Partnerships	(1,648)	(1,674)
	Deferred offering costs	1,443	1,443
	Receivable from affiliates	2,094	2,094
	Net assets – Federal tax basis	$ 2,573	$ 2,632

Recovered_Sheet2

Note 1 - Organization and Summary of Significant Accounting Policies: Abandoned Units (Details)	Dec. 31, 2014	Dec. 31, 2013
Details
OutstandingLimitedPartnershipInterests	10,507	10,514

Recovered_Sheet3

Note 1 - Organization and Summary of Significant Accounting Policies: Net Income and Distribution Per Limited Partnership Interest (Details)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Details
Number of limited partnership interests	10,514	10,530

Note_2_Investments_in_and_Adva6

Note 2 - Investments in and Advances To Local Limited Partnerships (Details) (USD $)	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013
Carrying value in investments in Local Limited Partnerships	$0	$0
Magnolia Estates
Proceeds from sale of limited partnership interest	0	16,500
Investment Balance	0	0
Crystal Springs
Proceeds from sale of limited partnership interest	0	7,700
Investment Balance	0	0
Azalea Court
Proceeds from sale of limited partnership interest		13,200
Investment Balance	$0	$0

Note_2_Investments_in_and_Adva7

Note 2 - Investments in and Advances To Local Limited Partnerships: Condensed Combined Balance Sheets of the Local Partnerships (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
SEC Schedule III, Real Estate Accumulated Depreciation	($1,755)	($1,726)	($1,689)
Unaudited
Land	102	102
Buildings and Improvements, Gross	2,108	2,106
SEC Schedule III, Real Estate Accumulated Depreciation	-1,755	-1,726
Other Partnership Assets	394	365
Partnership Assets	849	847
Other Notes Payable	1,435	1,450
Other Liabilities	108	128
Liabilities, Total	1,543	1,578
Partnership Equity (Deficit)	-694	-731
Partnership Liabilities and Equity (Deficit)	$849	$847

Note_2_Investments_in_and_Adva8

Note 2 - Investments in and Advances To Local Limited Partnerships: Estimated condensed combined statements of operations for Local Partnerships (Details) (Unaudited, USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Unaudited
Revenues
Rental Income, Nonoperating	$430	$435
Other income	14	5
Expenses
Depreciation, Depletion and Amortization, Nonproduction	31	38
Interest Expense	57	59
Operating Costs and Expenses	317	363
Total Expenses	405	460
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest	$39	($20)

Note_2_Investments_in_and_Adva9

Note 2 - Investments in and Advances To Local Limited Partnerships: Schedule of Real estate, accumulated depreciation and encumbrances of the Local Partnerships (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
In Thousands, unless otherwise specified
Real Estate Assets	$2,210	$2,208	$2,200
SEC Schedule III, Real Estate Accumulated Depreciation	1,755	1,726	1,689
Lakeside Apartments
SEC Schedule III, Real Estate and Accumulated Depreciation, Amount of Encumbrances	1,435
Land	102
Buildings and Improvements, Gross	2,108
Real Estate Assets	2,210
SEC Schedule III, Real Estate Accumulated Depreciation	$1,755

Recovered_Sheet4

Note 2 - Investments in and Advances To Local Limited Partnerships: Schecule of Reconciliation of real estate (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Details
Real Estate Assets	$2,208	$2,200
Additions During The Year	2	8
Real Estate Assets	$2,210	$2,208

Recovered_Sheet5

Note 2 - Investments in and Advances To Local Limited Partnerships: Schedule of Reconciliation of accumulated depreciation (Details) (USD $)	12 Months Ended
In Thousands, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Details
SEC Schedule III, Real Estate Accumulated Depreciation, Beginning Balance	$1,726	$1,689
Depreciation	29	37
SEC Schedule III, Real Estate Accumulated Depreciation, Ending Balance	$1,755	$1,726

Note_4_Income_Taxes_Reconcilia2

Note 4 - Income Taxes: Reconciliation between the Partnership's reported net income and the net income (loss) per tax return (Details) (USD $)	12 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Dec. 31, 2014	Dec. 31, 2013
Details
Net income (loss)	($85)	($28)
Partnership's Share of Local Partnerships Income	25	1,929
Net income (loss) per tax return	($60)	$1,901
Net income (loss) per limited partnership interest	($5.64)	$179

Note_4_Income_Taxes_Reconcilia3

Note 4 - Income Taxes: Reconciliation between the Partnership's reported amounts and the Federal tax basis of net assets (Details) (USD $)	Dec. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Details
Net Assets	$684	$769
Investment in Partnerships	-1,648	-1,674
Deferred offering costs	1,443	1,443
Net Assets - Federal Tax Basis	$2,573	$2,632

Note_6_Distribution_Details

Note 6 - Distribution (Details) (USD $)	12 Months Ended
	Dec. 31, 2014
Details
Distribution Made to Member or Limited Partner, Distributions Paid, Per Unit	$142.45