Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Mar. 30, 2018 | Jun. 25, 2018 | Sep. 29, 2017 | |
Document and Entity Information: | |||
Entity Registrant Name | AMERICAN TAX CREDIT PROPERTIES III LP | ||
Document Type | 10-K | ||
Document Period End Date | Mar. 30, 2018 | ||
Trading Symbol | atciiix | ||
Amendment Flag | false | ||
Entity Central Index Key | 856,135 | ||
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 | 2,018 | ||
Document Fiscal Period Focus | FY |
BALANCE SHEETS
BALANCE SHEETS - USD ($) | Mar. 30, 2018 | Mar. 30, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 4,009 | $ 62,429 |
Investment in Pemberwick Fund - a short duration bond fund | 309,296 | 832,364 |
Total assets | 313,305 | 894,793 |
Liabilities | ||
Accounts payable and accrued expenses | 21,771 | 27,475 |
Payable to general partner and affiliates | 2,614,191 | 3,101,684 |
Total liabilities | 2,635,962 | 3,129,159 |
Commitments and contingencies | ||
Partners' deficit | ||
General partner | (2,149,235) | (2,060,698) |
Limited partners (35,883 units of limited partnership interest outstanding) | (170,804) | (170,804) |
Accumulated other comprehensive loss | (2,618) | (2,864) |
Total equity (deficit) | (2,322,657) | (2,234,366) |
Total liabilities & equity (deficit) | $ 313,305 | $ 894,793 |
BALANCE SHEETS PARENTHETICAL
BALANCE SHEETS PARENTHETICAL - shares | Mar. 30, 2018 | Mar. 30, 2017 |
BALANCE SHEETS PARENTHETICAL | ||
Units of limited partnership interest outstanding | 35,883 | 35,883 |
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS - USD ($) | 12 Months Ended | |
Mar. 30, 2018 | Mar. 30, 2017 | |
REVENUE | ||
Interest | $ 5,902 | $ 7,824 |
Other income from local partnerships | 6,967 | |
TOTAL REVENUE | 5,902 | 14,791 |
EXPENSES | ||
Administration fees - affiliate | 19,186 | 24,902 |
Management fees - affiliate | 19,186 | 24,902 |
Professional fees | 38,866 | 44,678 |
Printing, postage and other | 17,201 | 18,644 |
TOTAL EXPENSES | 94,439 | 113,126 |
LOSS PRIOR TO GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | (88,537) | (98,335) |
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 879,937 | |
NET INCOME (LOSS) | (88,537) | 781,602 |
NET INCOME (LOSS) ATTRIBUTABLE TO | ||
General partner net income (loss) | (88,537) | 781,602 |
Limited partners net income (loss) | ||
NET INCOME (LOSS) per unit of limited partnership interest (35,883 units of limited partnership interest) |
STATEMENTS OF COMPREHENSIVE INC
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) | 12 Months Ended | |
Mar. 30, 2018 | Mar. 30, 2017 | |
STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
NET INCOME (LOSS) | $ (88,537) | $ 781,602 |
Other comprehensive income (loss) - Pemberwick Fund | 246 | (2,071) |
COMPREHENSIVE INCOME (LOSS) | $ (88,291) | $ 779,531 |
STATEMENTS OF CHANGES IN PARTNE
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIT) - USD ($) | General Partner | Limited Partners | Accumulated Other Comprehensive Income (Loss) | Total |
Partners' deficit at Mar. 30, 2016 | $ (2,842,300) | $ (107,589) | $ (793) | $ (2,950,682) |
Net income (loss) | 781,602 | 781,602 | ||
Distributions to partners | (63,215) | (63,215) | ||
Other comprehensive income (loss) - Pemberwick Fund | (2,071) | (2,071) | ||
Partners' deficit at Mar. 30, 2017 | (2,060,698) | (170,804) | (2,864) | (2,234,366) |
Net income (loss) | (88,537) | (88,537) | ||
Other comprehensive income (loss) - Pemberwick Fund | 246 | 246 | ||
Partners' deficit at Mar. 30, 2018 | $ (2,149,235) | $ (170,804) | $ (2,618) | $ (2,322,657) |
STATEMENTS OF CASH FLOWS
STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Mar. 30, 2018 | Mar. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Interest received | $ 7,753 | $ 8,025 |
Cash paid for administration fees | (264,210) | (98,168) |
Cash paid for management fees | (261,655) | (110,000) |
Cash paid for professional fees | (38,866) | (55,038) |
Cash paid for printing, postage and other expenses | (22,905) | (12,929) |
Net cash used in operating activities | (579,883) | (268,110) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Investments in Pemberwick Fund | (7,537) | (667,269) |
Redemptions from Pemberwick Fund | 529,000 | 64,000 |
Proceeds in connection with sale of limited partner interests/local partnership properties | 879,937 | |
Distributions received from local partnerships | 6,967 | |
Net cash provided by investing activities | 521,463 | 283,635 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Distributions to partners | (63,215) | |
Net cash used in financing activities | (63,215) | |
Net decrease in cash and cash equivalents | (58,420) | (47,690) |
Cash and cash equivalents at beginning of year | 62,429 | 110,119 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 4,009 | 62,429 |
SIGNIFICANT NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Unrealized gain (loss) on investment in Pemberwick Fund | $ 246 | $ (2,071) |
STATEMENTS OF CASH FLOWS - CONT
STATEMENTS OF CASH FLOWS - CONTINUED - USD ($) | 12 Months Ended | |
Mar. 30, 2018 | Mar. 30, 2017 | |
STATEMENTS OF CASH FLOWS - CONTINUED | ||
Net income (loss) | $ (88,537) | $ 781,602 |
Adjustments to reconcile net income (loss) to net cash used in operating activities | ||
Gain on sale of limited partner interests/local partnership properties | (879,937) | |
Other income from local partnerships | (6,967) | |
Loss on redemptions from Pemberwick Fund | 1,851 | 201 |
Decrease in payable to general partner and affiliates | (487,493) | (158,364) |
Decrease in accounts payable and accrued expenses | (5,704) | (4,645) |
NET CASH USED IN OPERATING ACTIVITIES | $ (579,883) | $ (268,110) |
1. Organization, Purpose and Su
1. Organization, Purpose and Summary of Significant Accounting Policies | 12 Months Ended |
Mar. 30, 2018 | |
Notes | |
1. Organization, Purpose and Summary of Significant Accounting Policies | 1. Organization, Purpose and Summary of Significant Accounting Policies American Tax Credit Properties III L.P. (the "Partnership") was formed on September 21, 1989 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 13, 1990. 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. Such interests were acquired from 1990 to 1992. Richman Tax Credit Properties III L.P. (the "General Partner") was formed on September 21, 1989 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 Partnerships 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 does not consolidate the accounts and activities of the Local Partnerships, which are considered Variable Interest Entities as defined by the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 810; Subtopic 10, 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). In addition, the Local Partnerships partnership agreements grant the Local General Partners the power to direct the activities that most significantly impact the Local Partnerships economic success. As described above herein Note 1, the Partnerships investment in local partnerships reached a zero balance in a prior year. 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 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 2013 remain subject to examination. The accompanying 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, 2018 | |
Notes | |
2. Capital Contributions and Distributions | 2. Capital Contributions and Distributions On March 12, 1990, the Partnership commenced the offering of units (the Units) through Merrill Lynch, Pierce, Fenner & Smith Incorporated (the "Selling Agent"). On June 13, 1990, December 27, 1990, December 31, 1991 and January 23, 1992, 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 four closings. At these closings, subscriptions for a total of 35,883 Units representing $35,883,000 in Limited Partner capital contributions were accepted. In connection with the offering of Units, the Partnership incurred organization and offering costs of $4,418,530, of which $75,000 was capitalized as organization costs and $4,343,530 was charged to the Limited Partners' equity as syndication costs. The General Partner contributed $100 to the Partnership. Net loss was allocated 99% to the Limited Partners and 1% to the General Partner in accordance with the Partnership Agreement until such time as the Limited Partners' capital reached zero as a result of loss allocations, after which all losses have been allocated to the General Partner. Net income will be allocated 100% to the General Partner until such time as the total allocation agrees to the excess losses allocated to the General Partner in prior years. During the year ended March 30, 2017, the Partnership paid state withholding taxes of $63,215 on behalf of the Limited Partners in connection with gains recognized by a Local Partnership for the year ended December 31, 2016. |
3. Cash and Cash Equivalents
3. Cash and Cash Equivalents | 12 Months Ended |
Mar. 30, 2018 | |
Notes | |
3. Cash and Cash Equivalents | 3. Cash and Cash Equivalents As of March 30, 2018, the Partnership has $4,009 in cash and cash equivalents, all of which 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, 2018. |
4. Investment in Pemberwick Fun
4. Investment in Pemberwick Fund | 12 Months Ended |
Mar. 30, 2018 | |
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 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 90% 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 3.18 years as of March 30, 2018. Redemptions from Pemberwick are immediately liquid and unrestricted. Pemberwicks net asset value (NAV) is $9.98 and $10.03 per share as of March 30, 2018 and 2017, respectively. The Partnerships investment in Pemberwick as of March 30, 2018 and 2017 is $309,296 and $832,364, respectively. An unrealized loss of $2,618 as of March 30, 2018 is reflected as accumulated other comprehensive loss in the accompanying balance sheet as of March 30, 2018. The Partnership has earned $57,021 of interest revenue from the date of its initial investment in Pemberwick through March 30, 2018. 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 $9.99 as of May 31, 2018. 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 through December 5, 2016. Such fee was reduced to 0.25% as of December 6, 2016. 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 all fees fee earned in excess of 0.15% since Pemberwicks inception and earned $596 and $1,318 in connection with the Partnerships investment in Pemberwick for the years ended March 30, 2018 and 2017, 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, 2018 | |
Notes | |
5. Investment in Local Partnerships | 5. Investment in Local Partnerships The Partnership initially acquired a Local Partnership Interest in forty-three Local Partnerships. As of March 30, 2018, the Partnership owns a 99% Local Partnership Interest in one Local Partnership, Fulton Street Houses Limited Partnership (Fulton Street Houses). In connection with the initial purchase of forty-three Local Partnership Interests, under the terms of the partnership agreement of each Local Partnership, as of March 30, 2018 the Partnership is committed to make capital contributions in the aggregate of $29,384,966, which includes Advances to a certain Local Partnership and all of which has been paid. Fulton Street Houses owns a 36 unit subsidized and leveraged low-income multifamily residential complex located in Brooklyn, New York. 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 Fulton Street Houses are subject to specific laws, regulations and agreements with federal and state agencies. During the year ended March 30, 2017, Summerfield Apartments Limited Partnership (Summerfield Apartments) sold its underlying Property to an unaffiliated third party, in connection with which Summerfield Apartments recognized a gain of $711,374; 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, 2016 herein Note 5. The Partnership received $857,937 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, 2017. Summerfield Apartments has since been dissolved. During the year ended March 30, 2017, the Partnership sold its Local Partnership Interest in Hurlock Meadow Limited Partnership (Hurlock Meadow) to an unaffiliated third party. The Partnership received $15,000 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, 2017. During the year ended March 30, 2017, the Partnership sold its Local Partnership Interest in Country View Apartments (Country View) to one of the Local General Partners of Country View. The Partnership received $7,000 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, 2017. 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 $228,448 and $217,171 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 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 24 and 25, respectively. The combined balance sheet of the Local Partnerships as of December 31, 2016 does not include any balances in connection with the Local Partnerships in which the Partnership no longer owns an interest as of such date, while the combined statement of operations of the Local Partnerships for the year then ended includes the results of operations of such Local Partnerships for the period prior to the sales or other dispositions (see discussion above herein Note 5). Accordingly, the combined balance sheets of the Local Partnerships as of December 31, 2017 and 2016 and the combined statement of operations of the Local Partnerships for the year ended December 31, 2017 only include balances for Fulton Street Houses. 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 $ 134,233 $ 91,918 Rents receivable 10,959 7,448 Escrow deposits and reserves 4,879 57,171 Land 2 2 Buildings and improvements (net of accumulated depreciation of $5,692,901 and $5,443,697) 462,758 631,253 Other assets 109,294 113,959 Total assets $ 722,125 $ 901,751 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) Liabilities Accounts payable and accrued expenses $ 37,617 $ 34,374 Due to related parties 657,410 657,403 Mortgage loans 3,869,930 3,869,930 Accrued interest 1,146,641 1,099,278 Other liabilities 41,394 40,877 Total liabilities 5,752,992 5,701,862 Partners' equity (deficit) American Tax Credit Properties III L.P. Capital contributions, net of distributions 1,948,081 1,948,081 Cumulative loss (1,948,081) (1,948,081) Total American Tax Credit Properties III L.P. -- -- General partner Capital contributions, net of distributions 100 100 Cumulative loss (5,030,967) (4,800,211) Total General partner (5,030,867) (4,800,111) Total equity (deficit) (5,030,867) (4,800,111) Total liabilities & equity (deficit) $ 722,125 $ 901,751 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 $ 429,155 $ 981,398 Interest and other 2,734 13,908 Total Revenue 431,889 995,306 EXPENSES Administrative 55,049 120,345 Payroll 73,709 113,930 Utilities 80,754 134,945 Operating and maintenance 79,768 166,953 Taxes and insurance 76,798 149,389 Financial 47,363 151,177 Depreciation and amortization 249,204 380,435 Total Expenses 662,645 1,217,174 LOSS BEFORE GAIN ON SALE OF PROPERTY (230,756) (221,868) GAIN ON SALE OF PROPERTY -- 711,374 NET INCOME (LOSS) $ (230,756) $ 489,506 NET INCOME (LOSS) ATTRIBUTABLE TO American Tax Credit Properties III L.P. $ -- $ -- General partners and other limited partners (includes $228,448 and $217,171 of Partnership losses in excess of investment and specially allocated income of $702,870 in 2016) (230,756) 489,506 $ (230,756) $ 489,506 |
6. Transactions With General Pa
6. Transactions With General Partner and Affiliates | 12 Months Ended |
Mar. 30, 2018 | |
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 0.14% of Invested Assets (as such term is defined in the Partnership Agreement), while the annual Additional Management Fee is equal to 0.06% 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 $18,341 and $23,502 for the years ended March 30, 2018 and 2017, respectively, and Additional Management Fees of $845 and $1,400 for the years ended March 30, 2018 and 2017, 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 $1,308,031 and $1,550,500 are included in payable to general partner and affiliates in the accompanying balance sheets as of March 30, 2018 and 2017, 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, |
7. Taxable Income (Loss)
7. Taxable Income (Loss) | 12 Months Ended |
Mar. 30, 2018 | |
Notes | |
7. Taxable Income (Loss) | 7. Taxable Income (Loss) A reconciliation of the financial statement net income (loss) of the Partnership for the years ended March 30, 2018 and 2017 to the tax return income (loss) for the years ended December 31, 2017 and 2016 is as follows: 2018 2017 Financial statement net income (loss) for the years ended March 30, 2018 and 2017 $ (88,537) $ 781,602 Add (less) net transactions occurring between January 1, 2016 and March 30, 2016 -- (72,175) January 1, 2017 and March 30, 2017 (19,547) 19,547 January 1, 2018 and March 30, 2018 23,693 -- Adjusted financial statement net income (loss) for the years ended December 31, 2017 and 2016 (84,391) 873,324 Management Fees and Administration Fees deductible for tax purposes when paid (686,599) 49,036 Equity in income (loss) of investment in local partnerships (221,866) 866,064 Gain on sale of limited partner interests/local partnership properties (7,000) 249,847 Other income from local partnerships -- (6,967) Other differences 384 623 Tax return income (loss) for the years ended December 31, 2017 and 2016 $ (999,472) $ 2,031,927 The differences between investment in local partnerships for financial reporting and tax purposes as of December 31, 2017 and 2016 are as follows: 2017 2016 Investment in local partnerships - financial reporting $ -- $ -- Investment in local partnerships - tax (5,508,058) (5,283,192) $ 5,508,058 $ 5,283,192 Payable to general partner and affiliates 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, 2018 | |
Notes | |
8. Fair Value of Financial Instruments | 8. Fair Value of Financial Instruments The 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 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 carrying amount approximates fair value. |
9. Going Concern Considerations
9. Going Concern Considerations | 12 Months Ended |
Mar. 30, 2018 | |
Notes | |
9. Going Concern Considerations | 9. Going Concern Considerations As of March 30, 2018, the Partnerships current liabilities exceed its liquid assets by approximately $2,323,000; such deficit is the result of accrued Management Fees and Administration Fees totaling approximately $2,614,000 (see Note 6). The General Partner and RAM have historically not required the payment of such fees on a current basis and have agreed to continue to defer receipt of such fees until such time as the Partnership has liquid assets available for payment. Management of the Partnership believes that such deferral will provide the Partnership with the ability to meet its other obligations as they come due for at least the twelve month period beginning on June 25, 2018. |
1. Organization, Purpose and 18
1. Organization, Purpose and Summary of Significant Accounting Policies: Basis of Accounting and Fiscal Year (Policies) | 12 Months Ended |
Mar. 30, 2018 | |
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 19
1. Organization, Purpose and Summary of Significant Accounting Policies: Investment in Local Partnerships (Policies) | 12 Months Ended |
Mar. 30, 2018 | |
Policies | |
Investment in Local Partnerships | 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 Partnerships 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 does not consolidate the accounts and activities of the Local Partnerships, which are considered Variable Interest Entities as defined by the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 810; Subtopic 10, 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). In addition, the Local Partnerships partnership agreements grant the Local General Partners the power to direct the activities that most significantly impact the Local Partnerships economic success. As described above herein Note 1, the Partnerships investment in local partnerships reached a zero balance in a prior year. 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. |
1. Organization, Purpose and 20
1. Organization, Purpose and Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 12 Months Ended |
Mar. 30, 2018 | |
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 21
1. Organization, Purpose and Summary of Significant Accounting Policies: Fair Value Measurements (Policies) | 12 Months Ended |
Mar. 30, 2018 | |
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 22
1. Organization, Purpose and Summary of Significant Accounting Policies: Income Taxes (Policies) | 12 Months Ended |
Mar. 30, 2018 | |
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 2013 remain subject to examination. The accompanying 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 23
1. Organization, Purpose and Summary of Significant Accounting Policies: Use of Estimates (Policies) | 12 Months Ended |
Mar. 30, 2018 | |
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 Partne24
5. Investment in Local Partnerships: Combined Balance Sheets of the Local Partnerships (Tables) | 12 Months Ended |
Mar. 30, 2018 | |
Tables/Schedules | |
Combined Balance Sheets of the Local Partnerships | 2017 2016 ASSETS Cash and cash equivalents $ 134,233 $ 91,918 Rents receivable 10,959 7,448 Escrow deposits and reserves 4,879 57,171 Land 2 2 Buildings and improvements (net of accumulated depreciation of $5,692,901 and $5,443,697) 462,758 631,253 Other assets 109,294 113,959 Total assets $ 722,125 $ 901,751 LIABILITIES AND PARTNERS' EQUITY (DEFICIT) Liabilities Accounts payable and accrued expenses $ 37,617 $ 34,374 Due to related parties 657,410 657,403 Mortgage loans 3,869,930 3,869,930 Accrued interest 1,146,641 1,099,278 Other liabilities 41,394 40,877 Total liabilities 5,752,992 5,701,862 Partners' equity (deficit) American Tax Credit Properties III L.P. Capital contributions, net of distributions 1,948,081 1,948,081 Cumulative loss (1,948,081) (1,948,081) Total American Tax Credit Properties III L.P. -- -- General partner Capital contributions, net of distributions 100 100 Cumulative loss (5,030,967) (4,800,211) Total General partner (5,030,867) (4,800,111) Total equity (deficit) (5,030,867) (4,800,111) Total liabilities & equity (deficit) $ 722,125 $ 901,751 |
5. Investment in Local Partne25
5. Investment in Local Partnerships: Combined Statements of Operations of the Local Partnerships (Tables) | 12 Months Ended |
Mar. 30, 2018 | |
Tables/Schedules | |
Combined Statements of Operations of the Local Partnerships | 2017 2016 REVENUE Rental $ 429,155 $ 981,398 Interest and other 2,734 13,908 Total Revenue 431,889 995,306 EXPENSES Administrative 55,049 120,345 Payroll 73,709 113,930 Utilities 80,754 134,945 Operating and maintenance 79,768 166,953 Taxes and insurance 76,798 149,389 Financial 47,363 151,177 Depreciation and amortization 249,204 380,435 Total Expenses 662,645 1,217,174 LOSS BEFORE GAIN ON SALE OF PROPERTY (230,756) (221,868) GAIN ON SALE OF PROPERTY -- 711,374 NET INCOME (LOSS) $ (230,756) $ 489,506 NET INCOME (LOSS) ATTRIBUTABLE TO American Tax Credit Properties III L.P. $ -- $ -- General partners and other limited partners (includes $228,448 and $217,171 of Partnership losses in excess of investment and specially allocated income of $702,870 in 2016) (230,756) 489,506 $ (230,756) $ 489,506 |
7. Taxable Income (Loss)_ Recon
7. Taxable Income (Loss): Reconciliation of Financial Statement Net Income (Loss) to the Tax Return Income (Loss) (Tables) | 12 Months Ended |
Mar. 30, 2018 | |
Tables/Schedules | |
Reconciliation of Financial Statement Net Income (Loss) to the Tax Return Income (Loss) | 2018 2017 Financial statement net income (loss) for the years ended March 30, 2018 and 2017 $ (88,537) $ 781,602 Add (less) net transactions occurring between January 1, 2016 and March 30, 2016 -- (72,175) January 1, 2017 and March 30, 2017 (19,547) 19,547 January 1, 2018 and March 30, 2018 23,693 -- Adjusted financial statement net income (loss) for the years ended December 31, 2017 and 2016 (84,391) 873,324 Management Fees and Administration Fees deductible for tax purposes when paid (686,599) 49,036 Equity in income (loss) of investment in local partnerships (221,866) 866,064 Gain on sale of limited partner interests/local partnership properties (7,000) 249,847 Other income from local partnerships -- (6,967) Other differences 384 623 Tax return income (loss) for the years ended December 31, 2017 and 2016 $ (999,472) $ 2,031,927 |
7. Taxable Income (Loss)_ Diffe
7. Taxable Income (Loss): Differences Between Investment in Local Partnerships for Financial Reporting and Tax Purposes (Tables) | 12 Months Ended |
Mar. 30, 2018 | |
Tables/Schedules | |
Differences Between Investment in Local Partnerships for Financial Reporting and Tax Purposes | 2017 2016 Investment in local partnerships - financial reporting $ -- $ -- Investment in local partnerships - tax (5,508,058) (5,283,192) $ 5,508,058 $ 5,283,192 |
2. Capital Contributions and 28
2. Capital Contributions and Distributions (Details) - USD ($) | 12 Months Ended | |
Mar. 30, 2017 | Mar. 30, 2018 | |
Details | ||
Units of limited partnership interest outstanding | 35,883 | 35,883 |
Limited Partners' Contributions in Connection with the Partnership Offering | $ 35,883,000 | $ 35,883,000 |
Organization and Offering Costs incurred in connection with the Partnership offering | 4,418,530 | 4,418,530 |
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 | 4,343,530 | 4,343,530 |
General Partner Contribution in Connection with the Partnership Offering | 100 | $ 100 |
State Withholding Taxes Paid - Distribution to Limited Partners | $ 63,215 |
3. Cash and Cash Equivalents (D
3. Cash and Cash Equivalents (Details) - USD ($) | Mar. 30, 2018 | Mar. 30, 2017 | Mar. 30, 2016 |
Details | |||
Cash and cash equivalents | $ 4,009 | $ 62,429 | $ 110,119 |
Maximum insured at each institution | $ 250,000 |
4. Investment in Pemberwick F30
4. Investment in Pemberwick Fund (Details) | May 31, 2018$ / shares | Mar. 30, 2018USD ($)$ / shares | Mar. 30, 2017USD ($)$ / shares |
Details | |||
Weighted Average Duration of Pemberwick's assets in years | 3.18 | ||
Pemberwick Net Asset Value | $ / shares | $ 9.99 | $ 9.98 | $ 10.03 |
Investment in Pemberwick Fund - a short duration bond fund | $ 309,296 | $ 832,364 | |
Unrealized loss reflected as accumulated other comprehensive loss | 2,618 | ||
Aggregate interest revenue from investment in Pemberwick | $ 57,021 |
4. Investment in Pemberwick F31
4. Investment in Pemberwick Fund: Advisory Fee (Details) - USD ($) | 12 Months Ended | |
Mar. 30, 2018 | Mar. 30, 2017 | |
Details | ||
Advisory Fee | $ 596 | $ 1,318 |
5. Investment in Local Partne32
5. Investment in Local Partnerships (Details) - USD ($) | 12 Months Ended | ||
Mar. 30, 2017 | Dec. 31, 2016 | Mar. 30, 2018 | |
Capital contributions in the aggregate | $ 29,384,966 | ||
Proceeds in connection with sale of limited partner interests/local partnership properties | $ 879,937 | ||
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 879,937 | ||
Summerfield Apartments Limited Partnership | |||
Gain on sale of Property | $ 711,374 | ||
Proceeds in connection with sale of limited partner interests/local partnership properties | 857,937 | ||
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | 857,937 | ||
Hurlock Meadow Limited Partnership | |||
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 | ||
Country View Apartments | |||
Proceeds in connection with sale of limited partner interests/local partnership properties | 7,000 | ||
GAIN ON SALE OF LIMITED PARTNER INTERESTS/LOCAL PARTNERSHIP PROPERTIES | $ 7,000 |
5. Investment in Local Partne33
5. Investment in Local Partnerships: Partnership losses in excess of investment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Details | ||
Excess Losses Applied to Other Partners' Capital | $ 228,448 | $ 217,171 |
5. Investment in Local Partne34
5. Investment in Local Partnerships: Combined Balance Sheets of the Local Partnerships (Details) - Combined Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | $ 134,233 | $ 91,918 |
Rents receivable | 10,959 | 7,448 |
Escrow deposits and reserves | 4,879 | 57,171 |
Land | 2 | 2 |
Buildings and improvements, net | 462,758 | 631,253 |
Other assets | 109,294 | 113,959 |
Total assets | 722,125 | 901,751 |
Accounts payable and accrued expenses | 37,617 | 34,374 |
Due to related parties | 657,410 | 657,403 |
Mortgage loans | 3,869,930 | 3,869,930 |
Accrued interest | 1,146,641 | 1,099,278 |
Other liabilities | 41,394 | 40,877 |
Total liabilities | 5,752,992 | 5,701,862 |
American Tax Credit Properties III L.P. Capital contributions, net of distributions | 1,948,081 | 1,948,081 |
American Tax Credit Properties III L.P. Cumulative loss | (1,948,081) | (1,948,081) |
General Partner Capital contributions, net of distributions | 100 | 100 |
General Partner Cumulative loss | (5,030,967) | (4,800,211) |
Total General partner | (5,030,867) | (4,800,111) |
Total equity (deficit) | (5,030,867) | (4,800,111) |
Total liabilities & equity (deficit) | $ 722,125 | $ 901,751 |
5. Investment in Local Partne35
5. Investment in Local Partnerships: Combined Statements of Operations of the Local Partnerships (Details) - Combined Statements Of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Rental | $ 429,155 | $ 981,398 |
Interest and other | 2,734 | 13,908 |
TOTAL REVENUE | 431,889 | 995,306 |
Administrative | 55,049 | 120,345 |
Payroll | 73,709 | 113,930 |
Utilities | 80,754 | 134,945 |
Operating and maintenance | 79,768 | 166,953 |
Taxes and insurance | 76,798 | 149,389 |
Financial | 47,363 | 151,177 |
Depreciation and amortization | 249,204 | 380,435 |
TOTAL EXPENSES | 662,645 | 1,217,174 |
LOSS BEFORE GAIN ON SALE OF PROPERTY | (230,756) | (221,868) |
GAIN ON SALE OF PROPERTY | 711,374 | |
NET INCOME (LOSS) | (230,756) | 489,506 |
Net Income (Loss) Attributable To General partners and other limited partners (includes $228,448 and $217,171 of Partnership losses in excess of investment and specially allocated income of $702,870 in 2016) | $ (230,756) | $ 489,506 |
6. Transactions With General 36
6. Transactions With General Partner and Affiliates (Details) - USD ($) | 12 Months Ended | |
Mar. 30, 2018 | Mar. 30, 2017 | |
Details | ||
Maximum Annual Management Fee | The annual Management Fee is equal to the greater of $100,000 or 0.14% of Invested Assets (as such term is defined in the Partnership Agreement), while the annual Additional Management Fee is equal to 0.06% of Invested Assets | The annual Management Fee is equal to the greater of $100,000 or 0.14% of Invested Assets (as such term is defined in the Partnership Agreement), while the annual Additional Management Fee is equal to 0.06% of Invested Assets |
Cumulative Total of the Management Fees and Administration Fees | 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 cumulative total of the management fees and administration fees (see discussion below herein Note 6) is limited to 0.5% of Invested Assets |
Incurred Management Fees | $ 18,341 | $ 23,502 |
Incurred Additional Management Fees | $ 845 | $ 1,400 |
Maximum Annual Administration Fee | The annual Administration Fee is equal to the greater of $100,000 or 0.14% of Invested Assets, while the annual Additional Administration Fee is equal to 0.06% of Invested Assets. The cumulative total of the administration fees and management fees is limited as described above herein Note 6. | The annual Administration Fee is equal to the greater of $100,000 or 0.14% of Invested Assets, while the annual Additional Administration Fee is equal to 0.06% of Invested Assets. The cumulative total of the administration fees and management fees is limited as described above herein Note 6. |
Incurred Administration Fees | $ 18,341 | $ 23,502 |
Incurred Additional Administration Fees | $ 845 | $ 1,400 |
6. Transactions With General 37
6. Transactions With General Partner and Affiliates: Unpaid Management and Additional Management Fees (Details) - USD ($) | Mar. 30, 2018 | Mar. 30, 2017 |
Details | ||
Unpaid Management and Additional Management Fees Included in Payable to General Partner and Affiliates | $ 1,308,031 | $ 1,550,500 |
6. Transactions With General 38
6. Transactions With General Partner and Affiliates: Unpaid Administration and Additional Administration Fees (Details) - USD ($) | Mar. 30, 2018 | Mar. 30, 2017 |
Details | ||
Unpaid Administration Fees and Additional Administration Fees Included in Payable to General Partner and Affiliates | $ 1,306,160 | $ 1,551,184 |
7. Taxable Income (Loss)_ Rec39
7. Taxable Income (Loss): Reconciliation of Financial Statement Net Income (Loss) to the Tax Return Income (Loss) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Mar. 30, 2018 | Mar. 30, 2017 | Mar. 30, 2016 | Mar. 30, 2018 | Dec. 31, 2017 | Mar. 30, 2017 | Dec. 31, 2016 | |
Details | |||||||
NET INCOME (LOSS) | $ (88,537) | $ 781,602 | |||||
Add (less) net transactions occurring between Jan 1 and Mar 30 | $ 23,693 | $ 19,547 | $ (72,175) | ||||
Adjusted financial statement net income (loss) for the years ended December 31, 2017 and 2016 | $ (84,391) | $ 873,324 | |||||
Management Fees and Administration Fees deductible for tax purposes when paid | (686,599) | 49,036 | |||||
Equity in income (loss) of investment in local partnerships | (221,866) | 866,064 | |||||
Gain on sale of limited partner interests / local partnership properties | (7,000) | 249,847 | |||||
Other income from local partnerships | (6,967) | ||||||
Other differences | 384 | 623 | |||||
Tax return income (loss) for the years ended December 31, 2017 and 2016 | $ (999,472) | $ 2,031,927 |
7. Taxable Income (Loss)_ Dif40
7. Taxable Income (Loss): Differences Between Investment in Local Partnerships for Financial Reporting and Tax Purposes (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Details | ||
Investment in local partnerships - tax | $ (5,508,058) | $ (5,283,192) |
Differences between the investment in local partnerships for tax and financial reporting purposes | $ 5,508,058 | $ 5,283,192 |