Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 30, 2016 | Jun. 21, 2016 | Sep. 29, 2015 | |
Document and Entity Information: | |||
Entity Registrant Name | AMERICAN TAX CREDIT PROPERTIES II L P | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 30, 2016 | ||
Trading Symbol | atciix | ||
Amendment Flag | false | ||
Entity Central Index Key | 842,314 | ||
Current Fiscal Year End Date | --03-30 | ||
Entity Common Stock, Shares Outstanding | 0 | ||
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 | 2,016 | ||
Document Fiscal Period Focus | FY |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Mar. 30, 2016 | Mar. 30, 2015 |
Cash and liquid investments | ||
Cash and cash equivalents | $ 560,502 | $ 265,061 |
Investment in Pemberwick Fund - a short duration bond fund | 3,463,931 | 6,884,812 |
Total cash and liquid investments | 4,024,433 | 7,149,873 |
Due from local partnerships | 869,404 | |
Total assets | 4,024,433 | 8,019,277 |
Liabilities | ||
Accounts payable and accrued expenses | 124,543 | 52,134 |
Payable to general partner and affiliates | 19,823 | 33,951 |
Total liabilities | $ 144,366 | $ 86,085 |
Commitments and contingencies | ||
Partners' equity (deficit) | ||
General partner | $ (453,966) | $ (413,498) |
Limited partners (55,746 units of limited partnershipinterest outstanding) | 4,334,699 | 8,341,026 |
Accumulated other comprehensive income (loss) | (666) | 5,664 |
Total equity | 3,880,067 | 7,933,192 |
Total liabilities & equity | $ 4,024,433 | $ 8,019,277 |
BALANCE SHEETS PARENTHETICAL
BALANCE SHEETS PARENTHETICAL - shares | Mar. 30, 2016 | Mar. 30, 2015 |
BALANCE SHEETS PARENTHETICAL | ||
Units of limited partnership interest outstanding | 55,746 | 55,746 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Mar. 30, 2016 | Mar. 30, 2015 | |
REVENUE | ||
Interest | $ 36,481 | $ 71,458 |
Other income from local partnerships | 23,346 | |
TOTAL REVENUE | 36,481 | 94,804 |
EXPENSES | ||
Administration fees - affiliate | 37,388 | 76,374 |
Management fees - affiliate | 37,388 | 76,374 |
Professional fees | 67,027 | 55,375 |
State of New Jersey filing fee | 116,772 | 52,214 |
Printing, postage and other | 24,643 | 38,906 |
TOTAL EXPENSES | 283,218 | 299,243 |
LOSS PRIOR TO GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | (246,737) | (204,439) |
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 423,124 | 4,723,044 |
NET INCOME | 176,387 | 4,518,605 |
NET INCOME ATTRIBUTABLE TO | ||
General partner net income | 1,764 | 45,186 |
Limited partners net income | $ 174,623 | $ 4,473,419 |
NET INCOME per unit of limited partnership interest (55,746 units of limited partnership interest) | $ 3.13 | $ 80.25 |
STATEMENTS OF COMPREHENSIVE INC
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | |
Mar. 30, 2016 | Mar. 30, 2015 | |
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
NET INCOME | $ 176,387 | $ 4,518,605 |
Reclassification of unrealized gain - Pemberwick Fund | (3,492) | (9,383) |
Other comprehensive loss - Pemberwick Fund | (2,838) | (5,712) |
Other comprehensive loss | (6,330) | (15,095) |
COMPREHENSIVE INCOME | $ 170,057 | $ 4,503,510 |
STATEMENTS OF CHANGES IN PARTNE
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIT) - USD ($) | General Partner | Limited Partners | Accumulated Other Comprehensive Income (Loss) | Total |
Partners' equity (deficit) at Mar. 30, 2014 | $ (427,922) | $ 6,912,860 | $ 20,759 | $ 6,505,697 |
Net income | 45,186 | 4,473,419 | 4,518,605 | |
Distributions to partners | (30,762) | (3,045,253) | (3,076,015) | |
Reclassification of unrealized gain - Pemberwick Fund | (9,383) | (9,383) | ||
Other comprehensive loss - Pemberwick Fund | (5,712) | (5,712) | ||
Partners' equity (deficit) at Mar. 30, 2015 | (413,498) | 8,341,026 | 5,664 | 7,933,192 |
Net income | 1,764 | 174,623 | 176,387 | |
Distributions to partners | (42,232) | (4,180,950) | (4,223,182) | |
Reclassification of unrealized gain - Pemberwick Fund | (3,492) | (3,492) | ||
Other comprehensive loss - Pemberwick Fund | (2,838) | (2,838) | ||
Partners' equity (deficit) at Mar. 30, 2016 | $ (453,966) | $ 4,334,699 | $ (666) | $ 3,880,067 |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Mar. 30, 2016 | Mar. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Interest received | $ 28,768 | $ 48,100 |
Cash paid for administration fees | (46,404) | (70,073) |
Cash paid for management fees | (42,500) | (74,000) |
Cash paid for professional fees | (54,089) | (69,035) |
Cash paid for State of New Jersey filing fee | (54,904) | (45,266) |
Cash paid for printing, postage and other expenses | (27,040) | (39,093) |
Net cash used in operating activities | (196,169) | (249,367) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Investments in Pemberwick Fund | (827,736) | (3,512,123) |
Redemptions from Pemberwick Fund | 4,250,000 | 2,785,000 |
Distributions received from local partnerships | 39,079 | |
Proceeds in connection with sale of limited partner interests/local partnership properties | 1,292,528 | 3,642,121 |
Net cash provided by investing activities | 4,714,792 | 2,954,077 |
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 (decrease) in cash and cash equivalents | 295,441 | (110,655) |
Cash and cash equivalents at beginning of year | 265,061 | 375,716 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 560,502 | 265,061 |
SIGNIFICANT NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Unrealized loss on investment in Pemberwick Fund | (2,838) | (5,712) |
Reclassification of unrealized gain on investment in Pemberwick Fund | $ (3,492) | (9,383) |
Net increase in due from local partnerships included in gain on sale of limited partner interests/local partnership properties | 861,860 | |
Nonresident withholding taxes paid by a local partnership on behalf of the partners included in gain on sale of limited partner interests/local partnership properties and distributions to partners | $ 260,650 |
STATEMENTS OF CASH FLOWS - CONT
STATEMENTS OF CASH FLOWS - CONTINUED - USD ($) | 12 Months Ended | |
Mar. 30, 2016 | Mar. 30, 2015 | |
RECONCILIATION OF NET INCOME TO NET CASH USED IN OPERATING ACTIVITIES | ||
Net income | $ 176,387 | $ 4,518,605 |
Adjustments to reconcile net income to net cash used in operating activities | ||
Gain on sale of limited partner interests/local partnership properties | (423,124) | (4,723,044) |
Other income from local partnerships | (23,346) | |
Gain on redemptions from Pemberwick Fund | (7,713) | (23,358) |
Increase (decrease) in accounts payable and accrued expenses | 72,409 | (6,899) |
Increase (decrease) in payable to general partner and affiliates | (14,128) | 8,675 |
NET CASH USED IN OPERATING ACTIVITIES | $ (196,169) | $ (249,367) |
1. Organization, Purpose and Su
1. Organization, Purpose and Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 30, 2016 | |
Notes | |
1. Organization, Purpose and Summary of Significant Accounting Policies | 1. Organization, Purpose and Summary of Significant Accounting Policies American Tax Credit Properties II L.P. (the "Partnership") was formed on October 26, 1988 and the Certificate of Limited Partnership of the Partnership was filed under the Delaware Revised Uniform Limited Partnership Act. There was no operating activity until admission of the limited partners (the Limited Partners) on June 28, 1989. The Partnership was formed to invest primarily in leveraged low-income multifamily residential complexes (the "Property" or "Properties") that qualified for the low-income housing tax credit (the Low-income Housing Tax Credit) in accordance with Section 42 of the Internal Revenue Code (the IRC), through the acquisition of limited partner equity interests (the "Local Partnership Interest" or "Local Partnership Interests") in partnerships (the "Local Partnership" or "Local Partnerships") that are the owners of the Properties. The Partnership invested in one Local Partnership whose Property also qualified for the historic rehabilitation tax credit in accordance with IRC Section 47. Such interests were acquired in 1989 and 1990. Richman Tax Credit Properties II L.P. (the "General Partner") was formed on October 26, 1988 to act as the General Partner of the Partnership. Basis of Accounting and Fiscal Year The Partnership's records are maintained on the accrual basis of accounting for both financial reporting and tax purposes. For financial reporting purposes, the Partnership's fiscal year ends March 30 and its quarterly periods end June 29, September 29 and December 30. The Local Partnerships have a calendar year for financial reporting purposes. The Partnership and the Local Partnerships each have a calendar year for income tax purposes. Investment in Local Partnerships The Partnership accounts for its investment in local partnerships in accordance with the equity method of accounting, under which the investment is carried at cost and is adjusted for the Partnership's share of each Local Partnerships results of operations and by cash distributions received. 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 Partnership's investment balance in a Local Partnership is allocated to other partners' capital in any such Local Partnership. Previously unrecognized equity in loss of any Local Partnership is recognized in the fiscal year in which equity in income is earned by such Local Partnership or additional investment is made by the Partnership. Distributions received subsequent to the elimination of an investment balance for any such investment in a Local Partnership are recorded as other income from local partnerships. As a result of cumulative equity losses and distributions and the sale 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. The Partnership assessed the carrying value (the Carrying Value) of its investment in local partnerships at least annually in the fourth quarter of its fiscal year or whenever there were indications that a permanent impairment may have occurred. If the Carrying Value of an investment in a Local Partnership exceeded the estimated value derived by management, the Partnership reduced its investment in any such Local Partnership (unless the impairment was considered to be temporary) and included such reduction in equity in income (loss) of investment in local partnerships. Impairment was measured by comparing the investment carrying amount to the estimated residual value of the investment. The Partnership does not consolidate the accounts and activities of the Local Partnerships, which are considered Variable Interest Entities as defined by because the Partnership is not considered the primary beneficiary. The Partnership's balance in investment in local partnerships represents the maximum exposure to loss in connection with such investments. The Partnership's exposure to loss on the Local Partnerships is mitigated by the condition and financial performance of the underlying Properties as well as the financial strength of the general partners of the Local Partnerships (the Local General Partners). Advances and additional capital contributions (collectively the Advances) that are not required under the terms of the Local Partnerships partnership agreements but which are made to the Local Partnerships are recorded as investment in local partnerships. Certain Advances are considered by the Partnership to be voluntary loans to the respective Local Partnerships and the Partnership may be reimbursed at a future date to the extent such Local Partnerships generate distributable cash flow or receive proceeds from sale or refinancing. Cash and Cash Equivalents The Partnership considers all highly liquid investments purchased with an original maturity of three months or less at the date of acquisition to be cash equivalents. Cash and cash equivalents are stated at cost, which approximates market value. Fair Value Measurements ASC Topic 820 clarifies the principle that fair value should be based on the assumptions that market participants would use when pricing the asset or liability and establishes the following fair value hierarchy: · · · For instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the fair value measurement will fall within the lowest level input that is significant to the fair value measurement in its entirety. Investment in Pemberwick Fund The Partnership carries its investment in Pemberwick Fund (Pemberwick), an investment grade institutional short duration bond fund, at estimated fair value. Realized gains (losses) are included in (offset against) interest revenue. Investment in Pemberwick is classified as available-for-sale and unrealized gains (losses) are included as items of comprehensive income (loss) and are reported as a separate component of partners' equity (deficit). Income Taxes The Partnership is a pass-through entity for income tax purposes and, as such, is not subject to income taxes. Rather, all items of taxable income and deductions are passed through to and are reported by its partners on their respective income tax returns. The Partnerships federal tax status as a pass-through entity is based on its legal status as a partnership. Accordingly, the Partnership is not required to take any tax positions in order to qualify as a pass-through entity. The Partnership is required to file and does file tax returns with the Internal Revenue Service (the IRS) and other taxing authorities. Income tax returns filed by the Partnership are subject to examination by the IRS for a period of three years. While no Partnership income tax returns are currently being examined by the IRS, tax years subsequent to 2011 remain subject to examination. These financial statements do not reflect a provision for income taxes and the Partnership has no other tax positions which must be considered for disclosure. In accordance with ASC Topic 740; Subtopic 10, the Partnership has included in Note 7 disclosures related to differences in the financial and tax bases of accounting. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
2. Capital Contributions and Di
2. Capital Contributions and Distributions | 12 Months Ended |
Mar. 30, 2016 | |
Notes | |
2. Capital Contributions and Distributions | 2. Capital Contributions and Distributions On June 14, 1989, the Partnership commenced the offering of units (the "Units") through Merrill Lynch, Pierce, Fenner & Smith Incorporated (the "Selling Agent"). On June 28, 1989, July 31, 1989 and September 22, 1989, under the terms of the Amended and Restated Agreement of Limited Partnership of the Partnership (the "Partnership Agreement"), the General Partner admitted the Limited Partners to the Partnership in three closings. At these closings, subscriptions for a total of 55,746 Units representing $55,746,000 in Limited Partners' capital contributions were accepted. In connection with the offering of Units, the Partnership incurred organization and offering costs of $6,534,064, of which $75,000 was capitalized as organization costs and $6,459,064 was charged to the Limited Partners' equity as syndication costs. The General Partner contributed $100 to the Partnership. Net income is allocated 99% to the Limited Partners and 1% to the General Partner in accordance with the Partnership Agreement. Net income (loss) in the year of dissolution of the Partnership will be allocated to the partners as described in the dissolution provisions of the Partnership Agreement. During the year ended March 30, 2016, the Partnership made a distribution to the Limited Partners in the amount of approximately $75 per Unit ($4,180,950) to Unit holders of record as of February 28, 2015; the pro-rata distribution to the General Partner was $42,232. During the year ended March 30, 2015, the Partnership paid nonresident state withholding taxes of $31,810 on behalf of certain of the Limited Partners in connection with gains recognized by a Local Partnership for the year ended December 31, 2013. The Partnership also made a distribution to the Limited Partners in the amount of approximately $50 per Unit (an additional $2,755,400). The $50 per Unit includes the nonresident state withholding taxes referred to above; the pro-rata distribution to the General Partner was $28,155. As a result of gains recognized in connection with the sale of its underlying Property during the year ended December 31, 2014, Lakeside Housing Limited Partnership (Lakeside Housing) was required to pay nonresident state withholding taxes of $258,043 and $2,607 on behalf of the Limited Partners and the General Partner, respectively (see Note 5). |
3. Cash and Cash Equivalents
3. Cash and Cash Equivalents | 12 Months Ended |
Mar. 30, 2016 | |
Notes | |
3. Cash and Cash Equivalents | 3. Cash and Cash Equivalents As of March 30, 2016, the Partnership has $560,502 in cash and cash equivalents. Of such amount, $264,890 is held in accounts at two financial institutions in which such accounts are insured up to $250,000 at each institution by the Federal Deposit Insurance Corporation (the FDIC). The entire amount is FDIC insured as of March 30, 2016. The remaining $295,612 is held in an account at a financial institution in which such amount is invested in a portfolio of securities that are direct obligations of the U.S. Treasury and are backed by the full faith and credit of the United States of America. |
4. Investment in Pemberwick Fun
4. Investment in Pemberwick Fund | 12 Months Ended |
Mar. 30, 2016 | |
Notes | |
4. Investment in Pemberwick Fund | 4. Investment in Pemberwick Fund The Partnership carries its investment in Pemberwick, an investment grade institutional short duration bond fund, at estimated fair value. Pemberwick was organized in February 2010 as a non-diversified open-end management investment company registered under the Investment Company Act of 1940, as amended, that seeks maximum current income consistent with liquidity and stability of principal. In selecting a portfolio of securities for Pemberwick, the investment advisor of Pemberwick (the Advisor) will select investments so that 95% of Pemberwicks assets will be rated A- or better by a nationally recognized statistical rating organization (NRSRO) such as Moodys Investor Services, Inc. (Moodys) and/or by Standard & Poors Financial Services, LLC (S&P) (or if commercial paper rated in the highest category) or, if a rating is not available, deemed to be of comparable quality by the Advisor, or securities issued by banking institutions operating in the United States and having assets in excess of $200 billion. The weighted average duration of Pemberwicks assets is approximately 1.57 years as of March 30, 2016. Redemptions from Pemberwick are immediately liquid and unrestricted. Pemberwicks net asset value (NAV) is $10.04 and $10.06 per share as of March 30, 2016 and 2015, respectively. The Partnerships investment in Pemberwick as of March 30, 2016 and 2015 is $3,463,931 and $6,884,812, respectively. An unrealized loss of $666 as of March 30, 2016 is reflected as accumulated other comprehensive loss in the accompanying balance sheet as of March 30, 2016. The Partnership has earned $283,934 of interest revenue from the date of its initial investment in Pemberwick through March 30, 2016. 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 (see Note 1). Pemberwicks NAV was $10.04 as of May 31, 2016. The Advisor is an affiliate of the General Partner. For its services, the Advisor is entitled to receive an annual advisory fee of 0.50% of the average daily net assets of Pemberwick. The Advisor may, in its discretion, voluntarily waive its fees or reimburse certain Pemberwick expenses; however, the Advisor is not required to do so. The Advisor has waived 70% of its fee earned since Pemberwicks inception and earned $3,075 and $7,913 in connection with the Partnerships investment in Pemberwick for the years ended March 30, 2016 and 2015, respectively, enough to cover its direct costs. The Advisors asset management affiliate, Richman Asset Management, Inc. (RAM) has agreed to reduce its administration and management fees (see Note 6) payable by the Partnership to the extent any fee of the Advisor payable by Pemberwick would be duplicative of any profit that RAM would receive from the Partnership. |
5. Investment in Local Partners
5. Investment in Local Partnerships | 12 Months Ended |
Mar. 30, 2016 | |
Notes | |
5. Investment in Local Partnerships | 5. Investment in Local Partnerships The Partnership initially acquired a Local Partnership Interest in fifty Local Partnerships. As of March 30, 2016, the Partnership owns a 99% Local Partnership Interest in only one Local Partnership, Littleton Avenue Community Village, L.P. (Littleton). In connection with the initial purchase of fifty Local Partnership Interests, under the terms of the partnership agreement of each Local Partnership, as of March 30, 2016 the Partnership is committed to make capital contributions in the aggregate of $48,460,126, which includes Advances to certain Local Partnerships and all of which has been paid. Littleton owns a 102 unit subsidized and leveraged low-income multifamily residential complex located in Newark, New Jersey. The required holding period of each Property, in order to avoid Low-income Housing Tax Credit recapture, is fifteen years from the year in which the Low-income Housing Tax Credits commence on the last building of the Property (the Compliance Period). The Compliance Periods of all the Local Partnerships expired in a prior year. The rents of Littleton are subject to specific laws, regulations and agreements with federal and state agencies. As of December 31, 2015, Littleton has outstanding mortgage loans payable totaling approximately $4,303,000 and accrued interest payable on such loans totaling approximately $5,180,000, which are secured by security interests and liens common to mortgage loans on Littletons real property and other assets. 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 (the Lender) issued a declaration of default demanding Littletons immediate payment of an amount in excess of 6,500,000 3,100,000 During the year ended March 30, 2016, 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 year ended March 30, 2016, 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 in connection with the sale; such amount is included in gain on sale of limited partner interests/local partnership properties in the accompanying statement of operations and comprehensive income (loss) of the Partnership for the year ended March 30, 2016. During the year ended March 30, 2016, 1989 Westview Arms Limited Partnership (Westview Arms) sold its underlying Property to an unaffiliated entity, in connection with which Westview Arms recognized a gain of $826,288; such amount is reflected as gain on sale of property in the combined statement of operations of the Local Partnerships for the year ended December 31, 2015 herein Note 5. The Partnership received $378,124 in connection with the sale; such amount is included in gain on sale of limited partner interests/local partnership properties in the accompanying statement of operations and comprehensive income (loss) of the Partnership for the year ended March 30, 2016. Westview Arms has since been dissolved. During the year ended March 30, 2013, the Partnership sold its Local Partnership Interest in North Hills Farms Limited Partnership (North Hills Farms) to affiliates of the Local General Partners of North Hills Farms for 20,820 -7544 During the year ended March 30, 2015, the Partnership sold its Local Partnership Interest in Village Creek Limited Partnership (Village Creek) to an affiliate of the Local General Partner of Village Creek; there were no proceeds in connection with the sale. However, the Partnership received $12,000 for distributions that were due to the Partnership under the terms of the Village Creek partnership agreement. Such amount is included in other income from local partnerships in the accompanying statement of operations and comprehensive income (loss) of the Partnership for the year ended March 30, 2015 (see Note 1). During the year ended March 30, 2015, the Partnership sold its Local Partnership Interests in Batesville Family, L.P. (Batesville Family), Canton Partners, L.P., Lawrence Road Properties, Ltd. (Lawrence Road), Magee Elderly, L.P. and Purvis Heights Properties, L.P. (Purvis Heights) to an affiliate of the Local General Partner of such Local Partnerships for a total of $58,095; such amount is included in gain on sale of limited partner interests/local partnership properties in the accompanying statement of operations and comprehensive income (loss) of the Partnership for the year ended March 30, 2015. In addition, the Partnership received $4,683 for distributions that were due to the Partnership under the terms of the partnership agreements of such Local Partnerships; such amount is included in other income from local partnerships in the accompanying statement of operations and comprehensive income (loss) of the Partnership for the year ended March 30, 2015 (see Note 1). Such Local Partnerships have the same Local General Partner. The 99% Local Partnership Interests in Batesville Family, Lawrence Road and Purvis Heights were acquired along with American Tax Credit Properties III L.P. (ATCP III), an investment partnership whose general partner is an affiliate of the General Partner, whereby the Partnership owned 37.25%. ATCP III sold its interest in Batesville Family, Lawrence Road and Purvis Heights as part of the same transaction. During the year ended March 30, 2015, Lakeside Housing sold its underlying Property to an unaffiliated entity, in connection with which Lakeside Housing recognized a gain of $8,820,227; such amount is reflected as gain on sale of property in the combined statement of operations of the Local Partnerships for the year ended December 31, 2014 herein Note 5. The Partnership received $ 3,506,089 869,404 During the year ended March 30, 2015, the Partnership sold its Local Partnership Interests in Browning Road Phase I, L.P., Lexington Estates Ltd., A Mississippi Limited Partnership, Lula Courts Ltd., L.P. and Tchula Courts Apartments, L.P. to an affiliate of the Local General Partner of such Local Partnerships for a total of $15,000; such amount is included in gain on sale of limited partner interests/local partnership properties in the accompanying statement of operations and comprehensive income (loss) of the Partnership for the year ended March 30, 2015. Such Local Partnerships have the same Local General Partner. During the year ended March 30, 2015, the Partnership sold its Local Partnership Interests in DeQueen Villas Limited Partnership and Eudora Manor Limited Partnership to unaffiliated entities for a total of $21,350; such amount is included in gain on sale of limited partner interests/local partnership properties in the accompanying statement of operations and comprehensive income (loss) of the Partnership for the year ended March 30, 2015. Such Local Partnerships have the same Local General Partners. During the year ended March 30, 2014, the Partnership sold its Local Partnership Interest in Auburn Hills Apartments Limited Partnership (Auburn Hills) to an affiliate of the Local General Partner of Auburn Hills. Although the Partnership received no proceeds in connection with the sale, the Partnership received $1,500 during the year ended March 30, 2015 for distributions that were due to the Partnership under the terms of the partnership agreement of Auburn Hills. Such amount was recognized by the Partnership as other income from local partnerships for the year ended March 30, 2014 (see Note 1). During the year ended March 30, 2014, the Partnership sold its Local Partnership Interests in Eagle View, Ltd. and Summers Village Limited Partnership to the Local General Partner of such Local Partnerships or affiliates thereof for a total of $20,767; such amount was recognized by the Partnership as gain on sale of limited partner interests/local partnership properties during the year ended March 30, 2014. In addition, the Partnership received $14,233 for distributions that were due to the Partnership under the terms of the partnership agreements of such Local Partnerships; such amount was recognized by the Partnership as other income from local partnerships during the year ended March 30, 2014 (see Note 1). The total proceeds of $35,000 were received during the year ended March 30, 2015. The Local General Partners of such Local Partnerships are affiliates of each other. Equity in loss of investment in local partnerships is limited to the Partnerships investment balance in each Local Partnership; any excess is applied to other partners' capital in any such Local Partnership (see Note 1). The amount of such excess losses applied to other partners capital was $660,096 and $929,412 for the years ended December 31, 2015 and 2014, respectively, as reflected in the combined statements of operations of the Local Partnerships herein Note 5. The differences between the Partnerships investment in local partnerships as of March 30, 2016 and 2015 and the amounts reflected as the Partnerships investment balance in the combined balance sheets of the Local Partnerships as of December 31, 2015 and 2014 herein Note 5 are as follows: 2016 2015 Investment in local partnerships as of March 30 - Partnership $ -- $ -- Carrying Value adjustments (see Note 1) -- 1,330,343 Distributions paid by Lakeside Housing after December 31, 2014 -- 1,130,054 Investment in local partnerships as of December 31, 2015 and 2014 - Local Partnerships combined balance sheets $ -- $ 2,460,397 The combined balance sheets of the Local Partnerships as of December 31, 2015 and 2014 and the combined statements of operations of the Local Partnerships for the years then ended are reflected on pages 27 and 28, respectively. The combined balance sheets of the Local Partnerships as of December 31, 2015 and 2014 do not include any balances in connection with the Local Partnerships in which the Partnership no longer owns an interest as of such dates, while the combined statements of operations of the Local Partnerships for the years then ended include the results of operations of such Local Partnerships for the period prior to the sales or other dispositions (see discussion above herein Note 5). The combined balance sheet of the Local Partnerships as of December 31, 2015 only includes balances for Littleton. The combined balance sheets of the Local Partnerships as of December 31, 2015 and 2014 are as follows: 2015 2014 ASSETS Cash and cash equivalents $ 59,863 $ 2,479,602 Rents receivable 19,989 141,545 Escrow deposits and reserves 121,865 298,963 Land 512,331 820,233 Buildings and improvements (net of accumulated depreciation of $6,834,349 and $12,637,208) 681,942 3,207,145 Other assets 107,087 264,510 Total assets $ 1,503,077 $ 7,211,998 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) Liabilities Accounts payable and accrued expenses $ 154,795 $ 985,529 Due to related parties 89,577 530,791 Mortgage loans 4,303,080 6,747,505 Notes payable 790,551 242,676 Accrued interest 5,180,496 5,561,951 Other liabilities 82,870 97,956 Total liabilities 10,601,369 14,166,408 Partners' equity (deficit) American Tax Credit Properties II L.P. Capital contributions, net of distributions 3,072,138 4,488,474 Cumulative loss (3,072,138) (2,028,077) Total American Tax Credit Properties II L.P. -- 2,460,397 General partners and other limited partners Capital contributions, net of distributions (200,277) (4,236,274) Cumulative loss (8,898,015) (5,178,533) Total General partners and other limited partners (9,098,292) (9,414,807) Total equity (deficit) (9,098,292) (6,954,410) Total liabilities & equity (deficit) $ 1,503,077 $ 7,211,998 The combined statements of operations of the Local Partnerships for the years ended December 31, 2015 and 2014 are as follows: 2015 2014 REVENUE Rental $ 2,074,591 $ 8,014,998 Interest and other 59,334 288,833 TOTAL REVENUE 2,133,925 8,303,831 EXPENSES Administrative 298,227 1,123,077 Payroll 312,351 1,067,806 Utilities 471,125 1,144,163 Operating and maintenance 697,670 1,740,936 Taxes and insurance 320,852 873,582 Financial 258,336 1,460,454 Depreciation and amortization 514,107 1,311,874 TOTAL EXPENSES 2,872,668 8,721,892 LOSS BEFORE GAIN ON SALE OF PROPERTY (738,743) (418,061) GAIN ON SALE OF PROPERTY 826,288 8,820,227 NET INCOME $ 87,545 $ 8,402,166 NET INCOME (LOSS) ATTRIBUTABLE TO American Tax Credit Properties II L.P.* $ 703,510 $ 4,540,562 General partners and other limited partners (includes Partnership losses in excess of investment of $660,096 and $949,412 and specially allocated income of $43,256 and $169,045) (615,965) 3,861,604 $ 87,545 $ 8,402,166 *The allocations of income in 2015 and 2014 are from Westview Arms and Lakeside Housing, respectively, whose Properties were sold. Because the Partnerships investment in such Local Partnerships had reached a zero balance prior to the income allocation, the Partnership has recognized income only to the extent of proceeds received, to be received or paid on behalf of the Partnership in connection with the sales (see discussion above herein Note 5). |
6. Transactions With General Pa
6. Transactions With General Partner and Affiliates | 12 Months Ended |
Mar. 30, 2016 | |
Notes | |
6. Transactions With General Partner and Affiliates | 6. Transactions with General Partner and Affiliates Pursuant to the terms of the Partnership Agreement, the Partnership incurs an annual management fee (the Management Fee) and an annual additional management fee (the Additional Management Fee) payable to the General Partner for its services in connection with the management of the affairs of the Partnership. The annual Management Fee is equal to the greater of $100,000 or .14% of Invested Assets (as such term is defined in the Partnership Agreement), while the annual Additional Management Fee is equal to .06% of Invested Assets. The cumulative total of the management fees and administration fees (see discussion below herein Note 6) is limited to 0.5% of Invested Assets. The Partnership incurred Management Fees of $34,223 and $64,079 for the years ended March 30, 2016 and 2015, respectively, and Additional Management Fees of $3,165 and $12,295 for the years ended March 30, 2016 and 2015, respectively. Such amounts are aggregated and reflected under the caption management fees - affiliate in the accompanying statements of operations and comprehensive income (loss). Unpaid Management Fees and Additional Management Fees in the cumulative amount of $11,800 and $16,912 are included in payable to general partner and affiliates in the accompanying balance sheets as of March 30, 2016 and 2015, respectively. In addition, pursuant to the terms of the Partnership Agreement, the Partnership is authorized to contract for administrative services provided to the Partnership. From the inception of the Partnership through November 23, 1999, such administrative services were provided by ML Fund Administrators Inc. (MLFA), an affiliate of the Selling Agent, pursuant to an Administrative Services Agreement. MLFA resigned the performance of its basic services under the Administrative Services Agreement effective November 23, 1999, with certain transitional services continued through April 30, 2000. The General Partner transitioned the administrative services to RAM without any changes to the terms of the Administrative Services Agreement. Pursuant to such agreement, the Partnership incurs an annual administration fee (the Administration Fee) and an annual additional administration fee (the Additional Administration Fee) for administrative services provided to the Partnership. The annual Administration Fee is equal to the greater of $100,000 or .14% of Invested Assets, while the annual Additional Administration Fee is equal to .06% of Invested Assets. The cumulative total of the administration fees and management fees is limited as described above herein Note 6. The Partnership incurred Administration Fees of $34,223 and $64,079 for the years ended March 30, 2016 and 2015, respectively, and Additional Administration Fees of $3,165 and $12,295 for the years ended March 30, 2016 and 2015, respectively. Such amounts are aggregated and reflected under the caption administration fees - affiliate in the accompanying statements of operations and comprehensive income (loss). Unpaid Administration Fees and Additional Administration Fees in the cumulative amount of $8,023 and $17,039 are included in due to general partner and affiliates in the accompanying balance sheets as of March 30, 2016 and 2015, respectively. |
7. Taxable Income
7. Taxable Income | 12 Months Ended |
Mar. 30, 2016 | |
Notes | |
7. Taxable Income | 7. Taxable Income A reconciliation of the financial statement net income of the Partnership for the years ended March 30, 2016 and 2015 to the tax return income for the years ended December 31, 2015 and 2014 is as follows: 2016 2015 Financial statement net income for the years ended March 30, 2016 and 2015 $ 176,387 $ 4,518,605 Add (less) net transactions occurring between January 1, 2014 to March 30, 2014 -- 107,781 January 1, 2015 to March 30, 2015 1,084,878 (1,084,878) January 1, 2016 to March 30, 2016 22,217 -- Adjusted financial statement net income for the years ended December 31, 2015 and 2014 1,283,482 3,541,508 Management Fees and Administration Fees deductible for tax purposes when paid (4,051) 2,196 Gain on sale of limited partner interests/local partnership properties 737,723 4,310,061 Equity in income (loss) of investment in local partnerships (79,858) 5,286,662 Nondeductible flow-through expenses 6,343 -- Other income from local partnerships -- (86,456) Other differences (1,096) 784 Tax return income for the years ended December 31, 2015 and 2014 $ 1,942,543 $ 13,054,755 The differences between investment in local partnerships for financial reporting and tax purposes as of December 31, 2015 and 2014 are as follows: 2015 2014 Investment in local partnerships - financial reporting $ -- $ -- Investment in local partnerships - tax (8,975,477) (9,619,371) $ 8,975,477 $ 9,619,371 Payable to general partner and affiliate in the accompanying balance sheets represents accrued Management Fees and Administration Fees, which are not deductible for tax purposes until paid pursuant to IRC Section 267. |
8. Fair Value of Financial Inst
8. Fair Value of Financial Instruments | 12 Months Ended |
Mar. 30, 2016 | |
Notes | |
8. Fair Value of Financial Instruments | 8. Fair Value of Financial Instruments The estimated fair value amounts have been determined using available market information, assumptions, estimates and valuation methodologies. Cash and cash equivalents The carrying amount approximates fair value. Investment in Pemberwick Fund, a short duration bond fund The estimated fair value of Pemberwick is based on current market quotes received from active markets. Pemberwicks NAV is calculated and published daily (see Note 4). Investment in local partnerships The Partnership assessed the Carrying Value of its investment in local partnerships at least annually in the fourth quarter of its fiscal year or whenever there were indications that a permanent impairment may have occurred. If the Carrying Value of an investment in a Local Partnership exceeded the estimated value derived by management, the Partnership reduced its investment in any such Local Partnership (unless the impairment was considered to be temporary) and included such reduction in equity in income (loss) of investment in local partnerships. Impairment was measured by comparing the investment carrying amount to the estimated residual value of the investment. The investment in local partnerships, carried at zero as of March 30, 2016, approximates fair value. Although the investment in local partnerships was carried at zero as of March 30, 2015, Westview Arms was able to negotiate a sale of its underlying Property during the year ended March 30, 2016 (see Note 5). |
1. Organization, Purpose and 17
1. Organization, Purpose and Summary of Significant Accounting Policies: Basis of Accounting and Fiscal Year (Policies) | 12 Months Ended |
Mar. 30, 2016 | |
Policies | |
Basis of Accounting and Fiscal Year | Basis of Accounting and Fiscal Year The Partnership's records are maintained on the accrual basis of accounting for both financial reporting and tax purposes. For financial reporting purposes, the Partnership's fiscal year ends March 30 and its quarterly periods end June 29, September 29 and December 30. The Local Partnerships have a calendar year for financial reporting purposes. The Partnership and the Local Partnerships each have a calendar year for income tax purposes. |
1. Organization, Purpose and 18
1. Organization, Purpose and Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 12 Months Ended |
Mar. 30, 2016 | |
Policies | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Partnership considers all highly liquid investments purchased with an original maturity of three months or less at the date of acquisition to be cash equivalents. Cash and cash equivalents are stated at cost, which approximates market value. |
1. Organization, Purpose and 19
1. Organization, Purpose and Summary of Significant Accounting Policies: Fair Value Measurements (Policies) | 12 Months Ended |
Mar. 30, 2016 | |
Policies | |
Fair Value Measurements | Fair Value Measurements ASC Topic 820 clarifies the principle that fair value should be based on the assumptions that market participants would use when pricing the asset or liability and establishes the following fair value hierarchy: · · · For instances in which the determination of the fair value measurement is based on inputs from different levels of the fair value hierarchy, the fair value measurement will fall within the lowest level input that is significant to the fair value measurement in its entirety. |
1. Organization, Purpose and 20
1. Organization, Purpose and Summary of Significant Accounting Policies: Income Taxes (Policies) | 12 Months Ended |
Mar. 30, 2016 | |
Policies | |
Income Taxes | Income Taxes The Partnership is a pass-through entity for income tax purposes and, as such, is not subject to income taxes. Rather, all items of taxable income and deductions are passed through to and are reported by its partners on their respective income tax returns. The Partnerships federal tax status as a pass-through entity is based on its legal status as a partnership. Accordingly, the Partnership is not required to take any tax positions in order to qualify as a pass-through entity. The Partnership is required to file and does file tax returns with the Internal Revenue Service (the IRS) and other taxing authorities. Income tax returns filed by the Partnership are subject to examination by the IRS for a period of three years. While no Partnership income tax returns are currently being examined by the IRS, tax years subsequent to 2011 remain subject to examination. These financial statements do not reflect a provision for income taxes and the Partnership has no other tax positions which must be considered for disclosure. In accordance with ASC Topic 740; Subtopic 10, the Partnership has included in Note 7 disclosures related to differences in the financial and tax bases of accounting. |
1. Organization, Purpose and 21
1. Organization, Purpose and Summary of Significant Accounting Policies: Use of Estimates (Policies) | 12 Months Ended |
Mar. 30, 2016 | |
Policies | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
5. Investment in Local Partne22
5. Investment in Local Partnerships: Reconciliation of Partnership Investment in Local Partnerships Balance to Combined Local Partnerships' Balance Sheets (Tables) | 12 Months Ended |
Mar. 30, 2016 | |
Tables/Schedules | |
Reconciliation of Partnership Investment in Local Partnerships Balance to Combined Local Partnerships' Balance Sheets | 2016 2015 Investment in local partnerships as of March 30 - Partnership $ -- $ -- Carrying Value adjustments (see Note 1) -- 1,330,343 Distributions paid by Lakeside Housing after December 31, 2014 -- 1,130,054 Investment in local partnerships as of December 31, 2015 and 2014 - Local Partnerships combined balance sheets $ -- $ 2,460,397 |
5. Investment in Local Partne23
5. Investment in Local Partnerships: Combined Balance Sheets of the Local Partnerships (Tables) | 12 Months Ended |
Mar. 30, 2016 | |
Tables/Schedules | |
Combined Balance Sheets of the Local Partnerships | 2015 2014 ASSETS Cash and cash equivalents $ 59,863 $ 2,479,602 Rents receivable 19,989 141,545 Escrow deposits and reserves 121,865 298,963 Land 512,331 820,233 Buildings and improvements (net of accumulated depreciation of $6,834,349 and $12,637,208) 681,942 3,207,145 Other assets 107,087 264,510 Total assets $ 1,503,077 $ 7,211,998 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) Liabilities Accounts payable and accrued expenses $ 154,795 $ 985,529 Due to related parties 89,577 530,791 Mortgage loans 4,303,080 6,747,505 Notes payable 790,551 242,676 Accrued interest 5,180,496 5,561,951 Other liabilities 82,870 97,956 Total liabilities 10,601,369 14,166,408 Partners' equity (deficit) American Tax Credit Properties II L.P. Capital contributions, net of distributions 3,072,138 4,488,474 Cumulative loss (3,072,138) (2,028,077) Total American Tax Credit Properties II L.P. -- 2,460,397 General partners and other limited partners Capital contributions, net of distributions (200,277) (4,236,274) Cumulative loss (8,898,015) (5,178,533) Total General partners and other limited partners (9,098,292) (9,414,807) Total equity (deficit) (9,098,292) (6,954,410) Total liabilities & equity (deficit) $ 1,503,077 $ 7,211,998 |
5. Investment in Local Partne24
5. Investment in Local Partnerships: Combined Statements of Operations of the Local Partnerships (Tables) | 12 Months Ended |
Mar. 30, 2016 | |
Tables/Schedules | |
Combined Statements of Operations of the Local Partnerships | 2015 2014 REVENUE Rental $ 2,074,591 $ 8,014,998 Interest and other 59,334 288,833 TOTAL REVENUE 2,133,925 8,303,831 EXPENSES Administrative 298,227 1,123,077 Payroll 312,351 1,067,806 Utilities 471,125 1,144,163 Operating and maintenance 697,670 1,740,936 Taxes and insurance 320,852 873,582 Financial 258,336 1,460,454 Depreciation and amortization 514,107 1,311,874 TOTAL EXPENSES 2,872,668 8,721,892 LOSS BEFORE GAIN ON SALE OF PROPERTY (738,743) (418,061) GAIN ON SALE OF PROPERTY 826,288 8,820,227 NET INCOME $ 87,545 $ 8,402,166 NET INCOME (LOSS) ATTRIBUTABLE TO American Tax Credit Properties II L.P.* $ 703,510 $ 4,540,562 General partners and other limited partners (includes Partnership losses in excess of investment of $660,096 and $949,412 and specially allocated income of $43,256 and $169,045) (615,965) 3,861,604 $ 87,545 $ 8,402,166 |
7. Taxable Income_ Reconciliati
7. Taxable Income: Reconciliation of Financial Statement Net Income to the Tax Return Income (Tables) | 12 Months Ended |
Mar. 30, 2016 | |
Tables/Schedules | |
Reconciliation of Financial Statement Net Income to the Tax Return Income | 2016 2015 Financial statement net income for the years ended March 30, 2016 and 2015 $ 176,387 $ 4,518,605 Add (less) net transactions occurring between January 1, 2014 to March 30, 2014 -- 107,781 January 1, 2015 to March 30, 2015 1,084,878 (1,084,878) January 1, 2016 to March 30, 2016 22,217 -- Adjusted financial statement net income for the years ended December 31, 2015 and 2014 1,283,482 3,541,508 Management Fees and Administration Fees deductible for tax purposes when paid (4,051) 2,196 Gain on sale of limited partner interests/local partnership properties 737,723 4,310,061 Equity in income (loss) of investment in local partnerships (79,858) 5,286,662 Nondeductible flow-through expenses 6,343 -- Other income from local partnerships -- (86,456) Other differences (1,096) 784 Tax return income for the years ended December 31, 2015 and 2014 $ 1,942,543 $ 13,054,755 |
7. Taxable Income_ Differences
7. Taxable Income: Differences Between Investment in Local Partnerships for Financial Reporting and Tax Purposes (Tables) | 12 Months Ended |
Mar. 30, 2016 | |
Tables/Schedules | |
Differences Between Investment in Local Partnerships for Financial Reporting and Tax Purposes | 2015 2014 Investment in local partnerships - financial reporting $ -- $ -- Investment in local partnerships - tax (8,975,477) (9,619,371) $ 8,975,477 $ 9,619,371 |
2. Capital Contributions and 27
2. Capital Contributions and Distributions (Details) - USD ($) | 12 Months Ended | |
Mar. 30, 2016 | Mar. 30, 2015 | |
Units of limited partnership interest outstanding | 55,746 | 55,746 |
Limited Partners' Contributions in Connection with the Partnership Offering | $ 55,746,000 | $ 55,746,000 |
Organization and Offering Costs incurred in connection with the Partnership offering | 6,534,064 | 6,534,064 |
Organization Costs Capitalized in Connection with the Partnership Offering | 75,000 | 75,000 |
Syndication Costs Charged to the Limited Partners' Equity in Connection with the Partnership Offering | 6,459,064 | 6,459,064 |
General Partner Contribution in Connection with the Partnership Offering | 100 | 100 |
Distributions to partners | 4,223,182 | 3,076,015 |
Distribution to Limited Partners | 2,755,400 | |
Distribution to General Partner | 28,155 | |
Queen Lane | ||
Nonresident State Withholding Taxes Paid - Distribution to Limited Partners | 31,810 | |
Lakeside Housing | ||
Nonresident State Withholding Taxes Paid - Distribution to Limited Partners | 258,043 | |
Nonresident State Withholding Taxes Paid - Distribution to General Partner | 2,607 | |
Limited Partners | ||
Distributions to partners | 4,180,950 | 3,045,253 |
General Partner | ||
Distributions to partners | $ 42,232 | $ 30,762 |
3. Cash and Cash Equivalents (D
3. Cash and Cash Equivalents (Details) - USD ($) | Mar. 30, 2016 | Mar. 30, 2015 | Mar. 30, 2014 |
Details | |||
Cash and cash equivalents | $ 560,502 | $ 265,061 | $ 375,716 |
Cash and cash equivalents held at two FDIC insured institutions | 264,890 | ||
Maximum insured at each institution | 250,000 | ||
Cash and cash equivalents held in portfolio of U.S. Treasury securities | $ 295,612 |
4. Investment in Pemberwick F29
4. Investment in Pemberwick Fund (Details) | May 31, 2016$ / shares | Mar. 30, 2016USD ($)$ / shares | Mar. 30, 2015USD ($)$ / shares |
Details | |||
Weighted Average Duration of Pemberwick's assets in years | 1.57 | ||
Pemberwick Net Asset Value | $ / shares | $ 10.04 | $ 10.04 | $ 10.06 |
Investment in Pemberwick Fund - a short duration bond fund | $ 3,463,931 | $ 6,884,812 | |
Unrealized loss reflected as accumulated other comprehensive loss | 666 | ||
Aggregate interest revenue from investment in Pemberwick | $ 283,934 |
4. Investment in Pemberwick F30
4. Investment in Pemberwick Fund: Advisory Fee (Details) - USD ($) | 12 Months Ended | |
Mar. 30, 2016 | Mar. 30, 2015 | |
Details | ||
Advisory Fee | $ 3,075 | $ 7,913 |
5. Investment in Local Partne31
5. Investment in Local Partnerships: Other (Details) | Mar. 30, 2016USD ($) |
Details | |
Capital contributions in the aggregate | $ 48,460,126 |
5. Investment in Local Partne32
5. Investment in Local Partnerships: Littleton (Details) - USD ($) | Mar. 30, 2016 | Dec. 31, 2015 | Mar. 30, 2015 |
Details | |||
Local Partnerships outstanding mortgage loans payable | $ 4,303,000 | ||
Local Partnerships accrued interest on outstanding mortgage loans payable | $ 5,180,000 | ||
First mortgage declared default | $ 6,500,000 | $ 6,500,000 | |
Second mortgage arrearage | $ 3,100,000 |
5. Investment in Local Partne33
5. Investment in Local Partnerships (Details) - USD ($) | 12 Months Ended | |||||
Mar. 30, 2016 | Dec. 31, 2015 | Mar. 30, 2015 | Dec. 31, 2014 | Mar. 30, 2014 | Mar. 30, 2013 | |
Proceeds in connection with sale of limited partner interests/local partnership properties | $ 1,292,528 | $ 3,642,121 | ||||
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 423,124 | 4,723,044 | ||||
Due from local partnerships | 869,404 | |||||
Other income from local partnerships | 23,346 | |||||
Nonresident withholding taxes paid by a local partnership on behalf of the partners included in gain on sale of limited partner interests/local partnership properties and distributions to partners | 260,650 | |||||
Combined Statements Of Operations | ||||||
GAIN ON SALE OF PROPERTY | $ 826,288 | $ 8,820,227 | ||||
Patton Place | ||||||
Proceeds in connection with sale of limited partner interests/local partnership properties | 45,000 | |||||
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 45,000 | |||||
Westview Arms | ||||||
Proceeds in connection with sale of limited partner interests/local partnership properties | 378,124 | |||||
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 378,124 | |||||
GAIN ON SALE OF PROPERTY | $ 826,288 | |||||
North Hills Farms | ||||||
Proceeds in connection with sale of limited partner interests/local partnership properties | 20,820 | $ 3,586,431 | ||||
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | (7,544) | $ 28,364 | $ 2,185,051 | |||
Due from local partnerships | 28,364 | |||||
Village Creek Limited Partnership | ||||||
Other income from local partnerships | 12,000 | |||||
Batesville Family, L.P., Canton Partners, L.P., Lawrence Road Properties, Ltd., Magee Elderly, L.P. and Purvis Heights Properties, L.P. | ||||||
Proceeds in connection with sale of limited partner interests/local partnership properties | 58,095 | |||||
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 58,095 | |||||
Other income from local partnerships | 4,683 | |||||
Lakeside Housing | ||||||
Proceeds in connection with sale of limited partner interests/local partnership properties | 869,404 | 3,506,089 | ||||
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 4,636,143 | |||||
Due from local partnerships | $ 869,404 | |||||
Nonresident withholding taxes paid by a local partnership on behalf of the partners included in gain on sale of limited partner interests/local partnership properties and distributions to partners | 260,650 | |||||
Browning Road Phase I, L.P., Lexington Estates Ltd., Lula Courts Ltd., L.P. and Tchula Courts Apartments, L.P. | ||||||
Proceeds in connection with sale of limited partner interests/local partnership properties | 15,000 | |||||
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 15,000 | |||||
DeQueen Villas Limited Partnership and Eudora Manor Limited Partnership | ||||||
Proceeds in connection with sale of limited partner interests/local partnership properties | 21,350 | |||||
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 21,350 | |||||
Auburn Hills | ||||||
Due from local partnerships | 1,500 | |||||
Other income from local partnerships | 1,500 | |||||
Eagle View, Summers Village | ||||||
Proceeds in connection with sale of limited partner interests/local partnership properties | 20,767 | |||||
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 20,767 | |||||
Due from local partnerships | $ 35,000 | |||||
Other income from local partnerships | $ 14,233 |
5. Investment in Local Partne34
5. Investment in Local Partnerships: Equity in loss of investment in local partnerships (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Details | ||
Excess Losses Applied to Other Partners' Capital | $ 660,096 | $ 929,412 |
5. Investment in Local Partne35
5. Investment in Local Partnerships: Reconciliation of Partnership Investment in Local Partnerships Balance to Combined Local Partnerships' Balance Sheets (Details) - USD ($) | 12 Months Ended | ||
Mar. 30, 2016 | Mar. 30, 2015 | Dec. 31, 2014 | |
Details | |||
Investment in local partnerships | $ 2,460,397 | ||
Cumulative Carrying Value Adjustments | $ 1,330,343 | ||
Distributions paid by Lakeside Housing | $ 1,130,054 |
5. Investment in Local Partne36
5. Investment in Local Partnerships: Combined Balance Sheets of the Local Partnerships (Details) - Combined Balance Sheets - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Cash and cash equivalents | $ 59,863 | $ 2,479,602 |
Rents receivable | 19,989 | 141,545 |
Escrow deposits and reserves | 121,865 | 298,963 |
Land | 512,331 | 820,233 |
Buildings and improvements, net | 681,942 | 3,207,145 |
Other assets | 107,087 | 264,510 |
Total assets | 1,503,077 | 7,211,998 |
Accounts payable and accrued expenses | 154,795 | 985,529 |
Due to related parties | 89,577 | 530,791 |
Mortgage loans | 4,303,080 | 6,747,505 |
Notes payable | 790,551 | 242,676 |
Accrued interest | 5,180,496 | 5,561,951 |
Other liabilities | 82,870 | 97,956 |
Total liabilities | 10,601,369 | 14,166,408 |
American Tax Credit Properties II L.P. Capital contributions, net of distributions | 3,072,138 | 4,488,474 |
American Tax Credit Properties II L.P. Cumulative loss | (3,072,138) | (2,028,077) |
Total American Tax Credit Properties II L.P. | 2,460,397 | |
General partners and other limited partners Capital contributions, net of distributions | (200,277) | (4,236,274) |
General partners and other limited partners Cumulative loss | (8,898,015) | (5,178,533) |
Total General partners and other limited partners | (9,098,292) | (9,414,807) |
Total equity (deficit) | (9,098,292) | (6,954,410) |
Total liabilities & equity (deficit) | $ 1,503,077 | $ 7,211,998 |
5. Investment in Local Partne37
5. Investment in Local Partnerships: Combined Statements of Operations of the Local Partnerships (Details) - Combined Statements Of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Rental | $ 2,074,591 | $ 8,014,998 |
Interest and other | 59,334 | 288,833 |
TOTAL REVENUE | 2,133,925 | 8,303,831 |
Administrative | 298,227 | 1,123,077 |
Payroll | 312,351 | 1,067,806 |
Utilities | 471,125 | 1,144,163 |
Operating and maintenance | 697,670 | 1,740,936 |
Taxes and insurance | 320,852 | 873,582 |
Financial | 258,336 | 1,460,454 |
Depreciation and amortization | 514,107 | 1,311,874 |
TOTAL EXPENSES | 2,872,668 | 8,721,892 |
LOSS BEFORE GAIN ON SALE OF PROPERTY | (738,743) | (418,061) |
GAIN ON SALE OF PROPERTY | 826,288 | 8,820,227 |
NET INCOME | 87,545 | 8,402,166 |
Net Income (Loss) Attributable To American Tax Credit Properties II L.P. | 703,510 | 4,540,562 |
Net Income (Loss) Attributable To General partners and other limited partners (includes Partnership losses in excess of investment of $660,096 and $949,412 and specially allocated income of $43,256 and $169,045) | $ (615,965) | $ 3,861,604 |
6. Transactions With General 38
6. Transactions With General Partner and Affiliates (Details) - USD ($) | 12 Months Ended | |
Mar. 30, 2016 | Mar. 30, 2015 | |
Details | ||
Maximum Annual Management Fee | The annual Management Fee is equal to the greater of $100,000 or .14% of Invested Assets (as such term is defined in the Partnership Agreement), while the annual Additional Management Fee is equal to .06% of Invested Assets. The cumulative total of the management fees and administration fees (see discussion below herein Note 6) is limited to 0.5% of Invested Assets. | The annual Management Fee is equal to the greater of $100,000 or .14% of Invested Assets (as such term is defined in the Partnership Agreement), while the annual Additional Management Fee is equal to .06% of Invested Assets. The cumulative total of the management fees and administration fees (see discussion below herein Note 6) is limited to 0.5% of Invested Assets. |
Additional Annual Management Fee | the annual Additional Management Fee is equal to .06% of Invested Assets | the annual Additional Management Fee is equal to .06% of Invested Assets |
Cumulative Total of the Management Fees and Administration Fees | cumulative total of the management fees and administration fees (see discussion below herein Note 6) is limited to 0.5% of Invested Assets | cumulative total of the management fees and administration fees (see discussion below herein Note 6) is limited to 0.5% of Invested Assets |
Management Fees Incurred | $ 34,223 | $ 64,079 |
Additional Management Fees Incurred | $ 3,165 | $ 12,295 |
Maximum Annual Administration Fee | The annual Administration Fee is equal to the greater of $100,000 or .14% of Invested Assets | The annual Administration Fee is equal to the greater of $100,000 or .14% of Invested Assets |
Additional Annual Administration Fee | the annual Additional Administration Fee is equal to .06% of Invested Assets | the annual Additional Administration Fee is equal to .06% of Invested Assets |
Administration Fees Incurred | $ 34,223 | $ 64,079 |
Additional Administration Fees Incurred | $ 3,165 | $ 12,295 |
6. Transactions With General 39
6. Transactions With General Partner and Affiliates: Unpaid Management and Additional Management Fees (Details) - USD ($) | Mar. 30, 2016 | Mar. 30, 2015 |
Details | ||
Unpaid Management and Additional Management Fees | $ 11,800 | $ 16,912 |
6. Transactions With General 40
6. Transactions With General Partner and Affiliates: Unpaid Administration and Additional Administration Fees (Details) - USD ($) | Mar. 30, 2016 | Mar. 30, 2015 |
Details | ||
Unpaid Administration Fees and Additional Administration Fees | $ 8,023 | $ 17,039 |
7. Taxable Income_ Reconcilia41
7. Taxable Income: Reconciliation of Financial Statement Net Income to the Tax Return Income (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Mar. 30, 2016 | Mar. 30, 2015 | Mar. 30, 2014 | Mar. 30, 2016 | Dec. 31, 2015 | Mar. 30, 2015 | Dec. 31, 2014 | |
Details | |||||||
NET INCOME | $ 176,387 | $ 4,518,605 | |||||
Add (less) net transactions occurring between Jan 1 and Mar 30 | $ 22,217 | $ (1,084,878) | $ 107,781 | ||||
Adjusted financial statement net income for the years ended December 31, 2015 and 2014 | $ 1,283,482 | $ 3,541,508 | |||||
Management Fees and Administration Fees deductible for tax purposes when paid | (4,051) | 2,196 | |||||
Gain on sale of limited partner interests/local partnership properties | 737,723 | 4,310,061 | |||||
Equity in income (loss) of investment in local partnerships | (79,858) | 5,286,662 | |||||
Nondeductible flow-through expenses | 6,343 | ||||||
Other income from local partnerships | (86,456) | ||||||
Other differences | (1,096) | 784 | |||||
Tax return income for the years ended December 31, 2015 and 2014 | $ 1,942,543 | $ 13,054,755 |
7. Taxable Income_ Difference42
7. Taxable Income: Differences Between Investment in Local Partnerships for Financial Reporting and Tax Purposes (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 |
Details | ||
Investment in local partnerships - tax | $ (8,975,477) | $ (9,619,371) |
Differences between the investment in local partnerships for tax and financial reporting purposes | $ 8,975,477 | $ 9,619,371 |