Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Dec. 30, 2015 | Feb. 04, 2016 | |
Document and Entity Information: | ||
Entity Registrant Name | AMERICAN TAX CREDIT PROPERTIES II L P | |
Document Type | 10-Q | |
Document Period End Date | Dec. 30, 2015 | |
Trading Symbol | atciix | |
Amendment Flag | false | |
Entity Central Index Key | 842,314 | |
Current Fiscal Year End Date | --03-30 | |
Entity Common Stock, Shares Outstanding | 55,746 | |
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 | 2,016 | |
Document Fiscal Period Focus | Q3 |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Dec. 30, 2015 | Mar. 30, 2015 |
Cash and liquid investments | ||
Cash and cash equivalents | $ 316,417 | $ 265,061 |
Investment in Pemberwick Fund - a short duration bond fund | 3,444,960 | 6,884,812 |
Total cash and liquid investments | 3,761,377 | 7,149,873 |
Due from local partnerships | 254,653 | 869,404 |
Total assets | 4,016,030 | 8,019,277 |
Liabilities | ||
Accounts payable and accrued expenses | 48,866 | 52,134 |
Payable to general partner and affiliates | 10,655 | 33,951 |
Total liabilities | $ 59,521 | $ 86,085 |
Commitments and contingencies | ||
Partners' equity (deficit) | ||
General partner | $ (453,098) | $ (413,498) |
Limited partners (55,746 units of limited partnershipinterest outstanding) | 4,420,606 | 8,341,026 |
Accumulated other comprehensive income (loss) | (10,999) | 5,664 |
Total equity (deficit) | 3,956,509 | 7,933,192 |
Total liabilities & equity (deficit) | $ 4,016,030 | $ 8,019,277 |
BALANCE SHEETS PARENTHETICAL
BALANCE SHEETS PARENTHETICAL - shares | Dec. 30, 2015 | Mar. 30, 2015 |
BALANCE SHEETS PARENTHETICAL | ||
Units of limited partnership interest outstanding | 55,746 | 55,746 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 30, 2015 | Dec. 30, 2014 | Dec. 30, 2015 | Dec. 30, 2014 | |
REVENUE | ||||
Interest | $ 6,563 | $ 8,460 | $ 27,596 | $ 55,407 |
Other income from local partnerships | 23,346 | 23,346 | ||
TOTAL REVENUE | 6,563 | 31,806 | 27,596 | 78,753 |
EXPENSES | ||||
Administration fees | 8,213 | 18,564 | 31,069 | 64,946 |
Management fees | 8,213 | 18,564 | 31,069 | 64,946 |
Professional fees | 26,106 | 14,257 | 52,375 | 40,413 |
State of New Jersey filing fee | 13,054 | 11,709 | 39,161 | 35,126 |
Printing, postage and other | 5,295 | 16,526 | 19,913 | 32,585 |
TOTAL EXPENSES | 60,881 | 79,620 | 173,587 | 238,016 |
LOSS PRIOR TO GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | (54,318) | (47,814) | (145,991) | (159,263) |
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 409,153 | 3,600,534 | 409,153 | 3,592,990 |
NET INCOME | 354,835 | 3,552,720 | 263,162 | 3,433,727 |
NET INCOME ATTRIBUTABLE TO | ||||
General partner net income | 3,549 | 35,527 | 2,632 | 34,337 |
Limited partners net income | $ 351,286 | $ 3,517,193 | $ 260,530 | $ 3,399,390 |
NET INCOME per unit of limited partnership interest (55,746 units of limited partnership interest) | $ 6.30 | $ 63.09 | $ 4.67 | $ 60.98 |
STATEMENTS OF COMPREHENSIVE INC
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Dec. 30, 2015 | Dec. 30, 2014 | Dec. 30, 2015 | Dec. 30, 2014 | |
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||||
NET INCOME | $ 354,835 | $ 3,552,720 | $ 263,162 | $ 3,433,727 |
Reclassification of unrealized gain on investment in Pemberwick Fund | (3,492) | (20,759) | ||
Other comprehensive loss - Pemberwick Fund | (7,916) | (13,850) | (13,171) | (7,639) |
OTHER COMPREHENSIVE LOSS | (7,916) | (13,850) | (16,663) | (28,398) |
COMPREHENSIVE INCOME | $ 346,919 | $ 3,538,870 | $ 246,499 | $ 3,405,329 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Dec. 30, 2015 | Dec. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Interest received | $ 19,883 | $ 32,049 |
Cash paid for administration fees | (42,934) | (66,462) |
Cash paid for management fees | (42,500) | (74,000) |
Cash paid for professional fees | (37,503) | (48,450) |
Cash paid for State of New Jersey filing fee | (54,904) | (45,266) |
Cash paid for printing, postage and other expenses | (22,310) | (33,424) |
Net cash used in operating activities | (180,268) | (235,553) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Investments in Pemberwick Fund | (819,098) | (3,321,316) |
Proceeds in connection with sale of limited partner interests/local partnership properties | 1,023,904 | 3,642,121 |
Redemptions from Pemberwick Fund | 4,250,000 | 2,785,000 |
Distributions received from local partnerships | 39,079 | |
Net cash provided by investing activities | 4,454,806 | 3,144,884 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Distributions to partners | (4,223,182) | (2,815,365) |
Net cash used in financing activities | (4,223,182) | (2,815,365) |
Net increase in cash and cash equivalents | 51,356 | 93,966 |
Cash and cash equivalents at beginning of period | 265,061 | 375,716 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 316,417 | 469,682 |
SIGNIFICANT NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Unrealized loss on investment in Pemberwick Fund | (13,171) | (7,639) |
Reclassification of unrealized gain on investment in Pemberwick Fund | $ (3,492) | (20,759) |
Decrease in due from local partnerships included in gain on sale of limited partner interests/local partnership properties | $ (7,544) |
STATEMENTS OF CASH FLOWS - CONT
STATEMENTS OF CASH FLOWS - CONTINUED - USD ($) | 9 Months Ended | |
Dec. 30, 2015 | Dec. 30, 2014 | |
RECONCILIATION OF NET INCOME TO NET CASH USED IN OPERATING ACTIVITIES | ||
Net income | $ 263,162 | $ 3,433,727 |
Adjustments to reconcile net income to net cash used in operating activities | ||
Gain on sale of limited partner interests/local partnership properties | (409,153) | (3,592,990) |
Gain on redemptions from Pemberwick Fund | (7,713) | (23,358) |
Other income from local partnerships | (23,346) | |
Decrease in accounts payable and accrued expenses | (3,268) | (19,016) |
Decrease in due to general partner and affiliates | (23,296) | (10,570) |
Net cash used in operating activities | $ (180,268) | $ (235,553) |
1. Basis of Presentation
1. Basis of Presentation | 9 Months Ended |
Dec. 30, 2015 | |
Notes | |
1. Basis of Presentation | 1. Basis of Presentation The accompanying unaudited financial statements of American Tax Credit Properties II L.P. (the Partnership) have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) for interim financial information. They do not include all information and footnotes required by GAAP for complete financial statements. In the opinion of the general partner of the Partnership (the General Partner), the accompanying unaudited financial statements include all adjustments necessary to present fairly the financial position as of December 30, 2015 and the results of operations and cash flows for the interim periods presented. All adjustments are of a normal recurring nature. The results of operations for the nine months ended December 30, 2015 are not necessarily indicative of the results that may be expected for the entire year. |
2. Investment in Local Partners
2. Investment in Local Partnerships | 9 Months Ended |
Dec. 30, 2015 | |
Notes | |
2. Investment in Local Partnerships | 2. Investment in Local Partnerships The Partnership initially acquired limited partner equity interests (the Local Partnership Interests) in fifty partnerships (the Local Partnerships) representing capital contributions in the aggregate amount of $48,460,126, which includes voluntary advances (the Advances) made to certain Local Partnerships and all of which has been paid. As of December 30, 2015, the Partnership holds a Local Partnership Interest in one Local Partnership (Littleton Avenue Community Village, L.P. (Littleton)). The Partnership has no legal obligation to fund any of Littletons operating deficits. The results of operations of the Local Partnerships are provided by the general partners of the Local Partnerships (the Local General Partners) on an unaudited basis during interim periods. In the event the operations of a Local Partnership result in a loss, equity in loss of each investment in Local Partnership allocated to the Partnership is recognized to the extent of the Partnerships investment balance in each Local Partnership. Equity in loss in excess of the Partnerships investment balance in a Local Partnership is allocated to other partners capital in any such Local Partnership. As a result of cumulative equity losses and distributions, and the sales of certain Local Partnerships Properties and/or the Partnerships Local Partnership Interests, the Partnerships investment in local partnerships reached a zero balance in a prior year. During the year ended March 30, 2015, Lakeside Housing Limited Partnership (Lakeside Housing) sold its underlying Property to an unaffiliated entity. The Partnership recognized a gain of $4,636,143 in connection with the sale, of which $869,404 was received during the nine months ended December 30, 2015 and is reflected as due from local partnerships in the accompanying unaudited balance sheet as of March 30, 2015. Lakeside Housing has since been dissolved. During the nine months ended December 30, 2015, the Partnership sold its Local Partnership Interests in Hill Com I Associates Limited Partnership and Hill Com II Associates Limited Partnership (collectively the Hill Com Local Partnerships) to one of the Local General Partners of the Hill Com Local Partnerships; there were no proceeds in connection with the sale. The Hill Com Local Partnerships have the same Local General Partners. During the nine months ended December 30, 2015, the Partnership sold its Local Partnership Interest in Patton Place Limited Partnership (Patton Place) to an affiliate of the Local General Partners of Patton Place. The Partnership received $45,000 4,500 40,500 During the nine months ended December 30, 2015, 1989 Westview Arms Limited Partnership (Westview Arms) sold its underlying Property to an unaffiliated entity. The Partnership is to receive $364,153 in connection with the sale; such amount is included in gain on sale of limited partner interests/local partnership properties in the accompanying unaudited statement of operations and comprehensive income (loss) for the nine months ended December 30, 2015. Of such amount, $150,000 was received during the nine months ended December 30, 2015 and $214,153 is included in due from local partnerships in the accompanying unaudited balance sheet as of December 30, 2015. The Local General Partner of Westview Arms will dissolve Westview Arms as soon as possible. The non-mandatory mortgages of Littleton matured in October 2006 but have not been repaid or formally extended. During the year ended March 30, 2015, the first mortgage holder issued a declaration of default demanding Littletons immediate payment of an amount in excess of 6,500,000 3,100,000 |
3. Investment in Pemberwick Fun
3. Investment in Pemberwick Fund | 9 Months Ended |
Dec. 30, 2015 | |
Notes | |
3. Investment in Pemberwick Fund | 3. Investment in Pemberwick Fund The Partnership carries its investment in Pemberwick Fund, a short duration bond fund (Pemberwick) at estimated fair value. The fair value of the Partnerships investment in Pemberwick is classified within Level 1 of the fair value hierarchy of the guidance on Fair Value Measurements as defined in Accounting Standards Codification (ASC) Topic 820. Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Partnership has the ability to access. Pemberwicks net asset value (NAV) is $10.01 per share as of December 30, 2015. An unrealized loss of $10,999 is reflected as accumulated other comprehensive loss in the accompanying unaudited balance sheet as of December 30, 2015. The Partnership has earned $275,297 of interest revenue from the date of its initial investment in Pemberwick through December 30, 2015. |
4. Distributions To Partners
4. Distributions To Partners | 9 Months Ended |
Dec. 30, 2015 | |
Notes | |
4. Distributions To Partners | 4. Distributions to Partners During the nine months ended December 30, 2015, the Partnership made a distribution to the Limited Partners in the amount of $4,180,950, representing approximately $75 per Unit; the pro-rata distribution to the General Partner was $42,232. |
5. Additional Information
5. Additional Information | 9 Months Ended |
Dec. 30, 2015 | |
Notes | |
5. Additional Information | 5. Additional Information Additional information, including the audited March 30, 2015 Financial Statements and the Organization, Purpose and Summary of Significant Accounting Policies, is included in the Partnership's Annual Report on Form 10-K for the fiscal year ended March 30, 2015 on file with the Securities and Exchange Commission. |
2. Investment in Local Partne13
2. Investment in Local Partnerships: Capital Contributions (Details) | Dec. 30, 2015USD ($) |
Details | |
Capital contributions in the aggregate | $ 48,460,126 |
2. Investment in Local Partne14
2. Investment in Local Partnerships (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jan. 30, 2016 | Dec. 30, 2015 | Dec. 30, 2014 | Dec. 30, 2015 | Dec. 30, 2014 | Mar. 30, 2015 | |
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | $ 409,153 | $ 3,600,534 | $ 409,153 | $ 3,592,990 | ||
Due from local partnerships | 254,653 | 254,653 | $ 869,404 | |||
Proceeds in connection with sale of limited partner interests/local partnership properties | 1,023,904 | $ 3,642,121 | ||||
Lakeside Housing | ||||||
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 4,636,143 | |||||
Due from local partnerships | $ 869,404 | |||||
Proceeds in connection with sale of limited partner interests/local partnership properties | 869,404 | |||||
Patton Place | ||||||
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 45,000 | 45,000 | ||||
Due from local partnerships | 40,500 | 40,500 | ||||
Proceeds in connection with sale of limited partner interests/local partnership properties | $ 40,500 | 4,500 | 4,500 | |||
Westview Arms | ||||||
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 364,153 | 364,153 | ||||
Due from local partnerships | $ 214,153 | 214,153 | ||||
Proceeds in connection with sale of limited partner interests/local partnership properties | $ 150,000 |
2. Investment in Local Partne15
2. Investment in Local Partnerships: Littleton (Details) | Dec. 30, 2015USD ($) |
Details | |
First mortgage declared default | $ 6,500,000 |
Second mortgage arrearage | $ 3,100,000 |
3. Investment in Pemberwick F16
3. Investment in Pemberwick Fund (Details) | Dec. 30, 2015USD ($)$ / shares |
Details | |
Pemberwick Net Asset Value | $ / shares | $ 10.01 |
Unrealized loss reflected as accumulated other comprehensive loss | $ 10,999 |
Aggregate interest revenue from investment in Pemberwick | $ 275,297 |
4. Distributions To Partners (D
4. Distributions To Partners (Details) | 9 Months Ended |
Dec. 30, 2015USD ($) | |
Details | |
Distribution to limited partners | $ 4,180,950 |
Distribution to general partner | $ 42,232 |