5. Investment in Local Partnerships | 5. Investment in Local Partnerships The Trust initially acquired a Local Partnership Interest in ten Local Partnerships. As of March 30, 2018, the Trust owns a 99% Local Partnership Interest in one Local Partnership, Vision Limited Dividend Housing Association Limited Partnership (Vision). In connection with the initial purchase of ten Local Partnership Interests, under the terms of the partnership agreement of each Local Partnership, as of March 30, 2018 the Trust is committed to make capital contributions in the aggregate of $14,837,956, which includes Advances to certain Local Partnerships and all of which has been paid. Vision owns a 97 unit subsidized and leveraged low-income multifamily residential complex located in Detroit, Michigan. 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 Vision are subject to specific laws, regulations and agreements with federal and state agencies. During the year ended March 30, 2018, the Trust sold its Local Partnership Interest in Creative Choice Homes VII, Ltd. to an unaffiliated third party; the Trust received $900,000 in connection with the sale. Such amount is reflected as gain on sale of limited partner interests/local partnership properties in the accompanying statement of operations and comprehensive income (loss) of the Trust for the year ended March 30, 2018. During the year ended March 30, 2017, the Trust sold its Local Partnership Interest in ACP Housing Associates, L.P. (ACP Housing) to an affiliate of the Local General Partner of ACP Housing; the Trust received $1,331,798 in connection with the sale. Such amount is reflected as gain on sale of limited partner interests/local partnership properties in the accompanying statement of operations and comprehensive income (loss) of the Trust for the year ended March 30, 2017. Equity in loss of investment in local partnerships is limited to the Trusts 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 $112,218 and $180,177 for the years ended December 31, 2017 and 2016, respectively, as reflected in the combined statements of operations of the Local Partnerships herein Note 5. The differences between the Trusts investment in local partnerships as of March 30, 2018 and 2017 and the amounts reflected as the Trusts investment balance in the combined balance sheets of the Local Partnerships as of December 31, 2017 and 2016 herein Note 5 represent cumulative Carrying Value adjustments made by the Trust (see Note 1). The combined balance sheets of the Local Partnerships as of December 31, 2017 and 2016 and the combined statements of operations of the Local Partnerships for the years then ended are reflected on pages 21 and 22, respectiv The combined balance sheets of the Local Partnerships as of December 31, 2017 and 2016 are as follows: 2017 2016 ASSETS Cash and cash equivalents $ 75,844 $ 179,344 Rents receivable 5,065 28,960 Escrow deposits and reserves 386,784 1,296,653 Land 179,799 179,799 Buildings and improvements (net of accumulated depreciation of $5,593,736 and $7,820,447) 3,464,656 6,037,801 Other assets 82,650 105,387 $ 4,194,798 $ 7,827,944 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) Liabilities Accounts payable and accrued expenses $ 11,899 $ 39,284 Due to related parties 56,474 861,622 Mortgages and notes payable 4,609,748 6,236,502 Accrued interest 324,377 2,075,697 Other liabilities 36,264 53,034 5,038,762 9,266,139 Partners' equity (deficit) American Tax Credit Trust, Series I Capital contributions, net of distributions 1,405,544 3,775,145 Cumulative loss (1,197,744) (3,273,345) 207,800 501,800 General partners and other limited partners Capital contributions, net of distributions 100 (5,897) Cumulative loss (1,051,864) (1,934,098) (1,051,764) (1,939,995) (843,964) (1,438,195) $ 4,194,798 $ 7,827,944 The combined statements of operations of the Local Partnerships for the years ended December 31, 2017 and 2016 are as follows: 2017 2016 REVENUE Rental $ 1,380,099 $ 2,227,795 Interest and other 35,090 121,318 TOTAL REVENUE 1,415,189 2,349,113 EXPENSES Administrative 215,732 279,499 Payroll 161,618 303,714 Utilities 197,457 409,131 Operating and maintenance 195,659 473,314 Taxes and insurance 138,041 196,083 Financial 165,585 258,378 Depreciation and amortization 452,802 563,241 TOTAL EXPENSES 1,526,894 2,483,360 NET LOSS $ (111,705) $ (134,247) NET LOSS ATTRIBUTABLE TO American Tax Credit Trust, Series I $ -- $ -- General partners and other limited partners (includes $112,218 and $180,177 of Trust losses in excess of investment and specially allocated income of $1,631 and $47,273) (111,705) (134,247) $ (111,705) $ (134,247) |