----

----

|                              Delaware                              |                      13-3545006                                                                                                                                                                                                               |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (State or Other Jurisdiction of Organization)                                                                                                                                                                                                                                                                                                                   | (I.R.S. Employer Identification No.)                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Richman Tax Credit Properties III L.P.340 Pemberwick RoadGreenwich, Connecticut                                                                                                                                                                                                                                                                                 |       06831                                                                                                                                                                                                                                                                                                                                                                                                   |
| (Address of Principal Executive Offices)                                                                                                                                                                                                                                                                                                                        | (Zip Code)                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Registrant's Telephone Number, Including Area Code:                                                                                                                                                                                                                                                                                                             | (203) 869-0900                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Securities Registered Pursuant to Section 12(b) of the Act:                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                None                                                                                                                                                                                            |                                        None                                   |
| (Title of Each Class)                                                                                                                                                                                                                                                                                                                                           | (Name of Each Exchange on Which Registered)                                                                                                                                                                                                                                                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Securities Registered Pursuant to Section 12(g) of the Act:                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Units of Limited Partnership Interest                                                                                                                                                                                                                                                                                                                           |
| (Title of Class)                                                                                                                                                                                                                                                                                                                                                |

----

----

----

|   | · | the Extended Use Provisions;                                                                                                                                                                                                                                       |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                               |
|   | · | the substantial remaining mortgage balances on the Properties, which are typically very near the initial balances as a result of the heavily subsidized debt of the Local Partnerships and the lengthy (usually near 40-year) amortization period of the debt; and |
|   |   |                                                                                                                                                                                                                                                               |
|   | · | poor economic conditions.                                                                                                                                                                                                                                          |

|   | · | the adverse use of adjacent or neighborhood real estate;                                                        |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                            |
|   | · | regulated rents, which may adversely impact rent increases;                                                     |
|   |   |                                                                                                            |
|   | · | utility allowances, which may adversely impact rents charged to tenants from year to year in certain locations; |
|   |   |                                                                                                            |
|   | · | the inability of tenants to pay rent in light of current market conditions;                                     |
|   |   |                                                                                                            |
|   | · | changes in the demand for or supply of competing properties;                                                    |
|   |   |                                                                                                            |
|   | · | changes in state or local tax rates and assessments;                                                            |

----

|   | · | increases in utility charges;                                                                                             |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                      |
|   | · | unexpected expenditures for repairs and maintenance;                                                                      |
|   |   |                                                                                                                      |
|   | · | the discovery of previously undetected environmentally hazardous conditions;                                              |
|   |   |                                                                                                                      |
|   | · | costs associated with complying with the Americans with Disabilities Act;                                                 |
|   |   |                                                                                                                      |
|   | · | uninsured losses relating to real property or excessively expensive premiums for insurance coverage;                      |
|   |   |                                                                                                                      |
|   | · | lawsuits from tenants or guests in connection with injuries that occur on the Properties;                                 |
|   |   |                                                                                                                      |
|   | · | changes in local economic conditions; and                                                                                 |
|   |   |                                                                                                                      |
|   | · | changes in interest rates and the availability of financing (including changes resulting from current market conditions). |

----

----

|                                |   | Registrant |   | ATCP II |
|-------------------------------------|--------|------------|--------|---------|
|                                |   |       |   |    |   |   |
| Batesville Family, L.P.             |   |       | 61.75  | %       |   |   | 37.25 | % |
| Bruce Housing Associates, L.P.      |   |       | 61.75  |    |   |   | 37.25 |   |
| Ivy Family, L.P.                    |   |       | 61.75  |    |   |   | 37.25 |   |
| Lawrence Road Properties, Ltd.      |   |       | 61.75  |    |   |   | 37.25 |   |
| Mirador del Toa Limited Partnership |   |       | 59.06  |    |   |   | 39.94 |   |
| Purvis Heights Properties, L.P.     |   |       | 61.75  |    |   |   | 37.25 |   |
| Queen Lane Investors                |   |       | 48.50  |    |   |   | 50.50 |   |

----

|                                                                                                                                      |   |      |                     |   |         |   |                         | Mortgage            |   |   |                           |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------------------------|--------|--------------|--------|------------------------------|---------------------|--------|--------|--------------------------------|--------|
| Name of Local Partnership                                                                                                                 |   | Number    |                     |   |         |   |                         | loans payable as of |   |   | Subsidy                        |   |
| Name of apartment complex                                                                                                                 |   | of rental |                     |   | Capital      |   |                         | December 31,        |   |   | (see                           |   |
| Apartment complex location                                                                                                                |   | units     |                     |   | contribution |   |                         | 2010                |   |   | footnotes)                     |   |
| April Gardens Apartments II  Limited PartnershipApril Gardens ApartmentsLas Piedras, Puerto Rico                                |   |      |     48         |   |         | $      |   485,581               |                |   | $      |   1,906,475               |   |   |   (1a&b) |   |
| Ashland Park Apartments, L.P.  (3), (5)Ashland Park ApartmentsAshland, Nebraska                                                 |   |      | 24                       |   |         |   | 235,732                      |                |   |   | --(3)                          |   |   |   |   |
| Auburn Family, L.P.Auburn ApartmentsLouisville, Mississippi                                                                               |   |      |   16                |   |         |   |   95,412                |                |   |   |   429,693                 |   |   |  (1a&b) |   |
| Batesville Family, L.P.Westridge ApartmentsBatesville, Mississippi                                                                        |   |      |   48                |   |         |   | 239,716                      |  (2)           |   |   |   1,380,986               |   |   |   | (1a)   |   |
| Bay Springs Elderly, L.P.Bay Springs ManorBay Springs, Mississippi                                                                        |   |      |   24                |   |         |   |   208,820               |                |   |   |   646,688                 |   |   |  (1a&b) |   |
| Brisas del Mar Apartments  Limited PartnershipBrisas del Mar ApartmentsHatillo, Puerto Rico                                     |   |      |     66         |   |         |   |     668,172        |                |   |   |     2,521,086        |   |   |   (1a&b) |   |
| Bruce Housing Associates, L.P.Bruce Family ApartmentsBruce, Mississippi                                                                   |   |      |   40                |   |         |   | 183,155                      | (2)                 |   |   |   1,050,106               |   |   |  (1a&b) |   |
| Carrington Limited Dividend  Housing Association Limited  Partnership (3)Carrington PlaceFarmington Hills, Michigan   |   |      |       100 |   |         |   | 2,174,720                    | (2)                 |   |   | --(3)                          |   |   |   |   |   |
| Chestnut Park Apartments, L.P.  (4), (11)Chestnut Park ApartmentsEast Orange, New Jersey                                        |   |      |     59         |   |         |   |     4,204,576      |                |   |   | --(4)                          |   |   |   |   |   |
| Chowan Senior Manor Associates  Limited PartnershipAzalea Garden Senior Manor  ApartmentsMurfreesboro, North Carolina |   |      |       33  |   |         |   |       278,405 |                |   |   |       1,171,977 |   |   |    (1a&b) |   |
| Christian Street Commons  Associates (12)Christian Street Commons  ApartmentsPhiladelphia, Pennsylvania               |   |      |       18  |   |         |   |       581,645 |                |   |   |       492,539   |   |   |   |   |   |

----

|                                                                                                               |   |      |                    |   |         |   |                           | Mortgage            |   |   |                           |   |
|--------------------------------------------------------------------------------------------------------------------|--------|-----------|-------------------------|--------|--------------|--------|--------------------------------|---------------------|--------|--------|--------------------------------|--------|
| Name of Local Partnership                                                                                          |   | Number    |                    |   |         |   |                           | loans payable as of |   |   | Subsidy                        |   |
| Name of apartment complex                                                                                          |   | of rental |                    |   | Capital      |   |                           | December 31,        |   |   | (see                           |   |
| Apartment complex location                                                                                         |   | units     |                    |   | contribution |   |                           | 2010                |   |   | footnotes)                     |   |
| Country View ApartmentsCountry View ApartmentsPembroke, Maine                                                      |   |      |   16               |   |         | $      |  279,183                  |                |   | $      |  894,915                  |   |   |  (1a&b) |   |
| Desarrollos de Belen Limited  PartnershipVista de Jagueyes II ApartmentsAguas Buenas, Puerto Rico        |   |      |     41        |   |         |   |     422,929          |                |   |   |     1,795,962        |   |   |   (1a&b) |   |
| Desarrollos de Emaus Limited  PartnershipHucares II ApartmentsNaguabo, Puerto Rico                       |   |      |     72        |   |         |   |     631,404          |                |   |   |     3,052,309        |   |   |   (1a&b) |   |
| Ellinwood Heights Apartments, L.P.Ellinwood Heights ApartmentsEllinwood, Kansas                                    |   |      |   24               |   |         |   |   156,261                 |                |   |   |   656,821                 |   |   |  (1a&b) |   |
| Fulton Street Houses Limited  PartnershipFulton Street Townhouse  ApartmentsNew York, New York |   |      |       35 |   |         |   |       1,948,081 |                |   |   |       3,869,930 |   |   |   | (1a)   |   |
| Hayes Run Limited PartnershipMashburn Gap ApartmentsMarshall, North Carolina                                       |   |      |   34               |   |         |   |   322,074                 |                |   |   |   1,362,065               |   |   |  (1a&b) |   |
| Howard L. Miller Sallisaw  Apartments II, L.P.Sallisaw II ApartmentsSallisaw, Oklahoma                   |   |      |     24        |   |         |   |     130,158          |                |   |   |     589,309          |   |   |   (1a&b) |   |
| Hurlock Meadow Limited  PartnershipHurlock Meadow ApartmentsHurlock, Maryland                            |   |      |     30        |   |         |   |     284,218          |                |   |   |     1,210,027        |   |   |   (1a&b) |   |
| Ivy Family, L.P.Ivy ApartmentsLouisville, Mississippi                                                              |   |      |   32               |   |         |   | 135,528                        | (2)                 |   |   |   710,431                 |   |   |  (1a&b) |   |
| Justin Associates (4) (8)Locust Tower ApartmentsPhiladelphia, Pennsylvania                                         |   |      |   40               |   |         |   |   1,809,723               |                |   |   | --(4)                          |   |   |   |   |   |
| LaBelle Commons, Ltd.LaBelle CommonsLaBelle, Florida                                                               |   |      |   32               |   |         |   |   253,580                 |                |   |   |   966,364                 |   |   |  (1a&b) |   |
| Lawrence Road Properties, Ltd.Hillcrest ApartmentsNewton, Mississippi                                              |   |      |   24               |   |         |   | 123,799                        | (2)                 |   |   |   724,659                 |   |   |  (1a&b) |   |

----

|                                                                                                                                      |   |      |                     |   |         |   |                           | Mortgage            |   |   |                          |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------------------------|--------|--------------|--------|--------------------------------|---------------------|--------|--------|-------------------------------|--------|
| Name of Local Partnership                                                                                                                 |   | Number    |                     |   |         |   |                           | loans payable as of |   |   | Subsidy                       |   |
| Name of apartment complex                                                                                                                 |   | of rental |                     |   | Capital      |   |                           | December 31,        |   |   | (see                          |   |
| Apartment complex location                                                                                                                |   | units     |                     |   | contribution |   |                           | 2010                |   |   | footnotes)                    |   |
| Loma Del Norte Limited  PartnershipLoma Del Norte ApartmentsAnthony, New Mexico                                                 |   |      |     40         |   |         | $      |   314,865                 |                |   | $      |    1,375,750        |   |   |   (1a&b) |   |
| Long Reach Associates Limited  PartnershipOak Ridge ApartmentsBath, Maine                                                       |   |      |     30         |   |         |   |     448,922          |                |   |   |      1,414,151 |   |   |   (1a&b) |   |
| Mirador del Toa Limited  PartnershipMirador del Toa ApartmentsToa Alta, Puerto Rico                                             |   |      |     48         |   |         |   | 284,847                        | (2)                 |   |   |      1,786,488 |   |   |   (1a&b) |   |
| Moore Haven Commons, Ltd.Moore Haven CommonsMoore Haven, Florida                                                                          |   |      |   28                |   |         |   |   213,402                 |                |   |   |    886,036          |   |   |  (1a&b) |   |
| NP-89 Limited Dividend  Housing Association Limited  Partnership (4), (9)Newport ApartmentsClinton Township, Michigan |   |      |       168 |   |         |   |       2,372,292 |                |   |   | --(4)                         |   |   |   |   |
| Nash Hill Associates, Limited  PartnershipNash Hill PlaceWilliamsburg, Massachusetts                                            |   |      |     28         |   |         |   |     302,575          |                |   |   |      1,402,493 |   |   |   (1a,b&c) |   |
| North Calhoun City, L.P.North Calhoun City ApartmentsCalhoun City, Mississippi                                                            |   |      |   18                |   |         |   |   146,565                 |                |   |   |    435,002          |   |   |  (1a&b) |   |
| Orange City Plaza, Limited  Partnership (4), (10), (13)Orange City Plaza ApartmentsOrange City, Iowa                            |   |      |     32         |   |         |   |     576,580          |                |   |   | --(4)                         |   |   |   |   |
| Puerta del Mar Limited PartnershipPuerta del Mar ApartmentsHatillo, Puerto Rico                                                           |   |      |   66                |   |         |   |   630,570                 |                |   |   |    2,400,405        |   |   |  (1a&b) |   |
| Purvis Heights Properties, L.P.Pineview ApartmentsPurvis, Mississippi                                                                     |   |      |   40                |   |         |   | 191,512                        | (2)                 |   |   |    1,096,255        |   |   |   | (1a)   |   |
| Queen Lane InvestorsQueen's RowPhiladelphia, Pennsylvania                                                                                 |   |      |   29                |   |         |   | 597,050                        | (2)                 |   |   |    2,075,290        |   |   |   | (1a)   |   |
| Somerset Manor, Ltd.Somerset ManorCentral City, Pennsylvania                                                                              |   |      |   24                |   |         |   |   208,465                 |                |   |   |    858,873          |   |   |  (1a&b) |   |
| Sugar Cane Villas, Ltd.Sugar Cane VillasPahokee, Florida                                                                                  |   |      |   87                |   |         |   |   751,560                 |                |   |   |    3,162,495        |   |   |  (1a&b) |   |

----

|                                                                                                               |   |      |                     |   |         |   |                           | Mortgage            |   |   |                            |   |
|--------------------------------------------------------------------------------------------------------------------|--------|-----------|--------------------------|--------|--------------|--------|--------------------------------|---------------------|--------|--------|---------------------------------|--------|
| Name of Local Partnership                                                                                          |   | Number    |                     |   |         |   |                           | loans payable as of |   |   | Subsidy                         |   |
| Name of apartment complex                                                                                          |   | of rental |                     |   | Capital      |   |                           | December 31,        |   |   | (see                            |   |
| Apartment complex location                                                                                         |   | units     |                     |   | contribution |   |                           | 2010                |   |   | footnotes)                      |   |
| Summerfield Apartments Limited  PartnershipSummerfield ApartmentsCharlotte, North Carolina               |   |      |     52         |   |         | $      |   1,088,667               |                |   | $      |   1,336,987                |   |   |   | (1a)  |   |
| Sydney Engel Associates L.P.(formerly known as Sydney Engel  Associates) (7)The CastleNew York, New York |   |      |       224 |   |         |   |       3,201,874 |                |   |   |       18,001,703 |   |   |   | (1a)  |   |
| Union Valley Associates Limited  PartnershipUnion Valley ApartmentsUnion Township, Pennsylvania          |   |      |     36         |   |         |   |     371,589          |                |   |   |     1,384,112         |   |   |   | (1a)  |   |
| Walnut Grove Family, L.P.Walnut Grove ApartmentsWalnut Grove, Mississippi                                          |   |      |   24                |   |         |   |   191,695                 |                |   |   |   812,671                  |   |   |  (1a&b) |   |
| Waynesboro Apartments Limited  PartnershipWaynesboro ApartmentsWaynesboro, Pennsylvania                  |   |      |     36         |   |         |   |     360,859          |                |   |   |     1,414,917         |   |   |   | (1a)  |   |
| West Calhoun City, L.P.West Calhoun City ApartmentsCalhoun City, Mississippi                                       |   |      |   28                |   |         |   |   230,212                 |                |   |   |   639,600                  |   |   |  (1a&b) |   |
| Westminster Apartments Limited  Partnership (3), (6)Westminster ApartmentsPhiladelphia, Pennsylvania     |   |      |     42         |   |         |   |       1,047,993 |                |   |   | --(3)                           |   |   |   |   |   |
|                                                                                                               |   |      |                     |   |         |   |                           |                |   |   |                            |   |   |   |   |   |
|                                                                                                               |   |      |                     |   |         | $      | 29,384,966                     |                |   | $      | 65,915,570                      |   |   |   |   |   |

|   | (1)    | Description of Subsidies:                                                                                                                                                                                                                                                                    |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                         |   |
|   |   | (a)                                                                                                                                                                                                                                                                                          | The Local Partnership’s debt structure includes a principal or interest payment subsidy. |
|   |   |                                                                                                                                                                                                                                                                                         |   |
|   |   | (b)                                                                                                                                                                                                                                                                                          | The Rural Housing Service (formerly the Farmers Home Administration) of the United States Department of Agriculture Rental Assistance Program allows qualified low-income tenants to receive rental subsidies. |
|   |   |                                                                                                                                                                                                                                                                                         |   |
|   |   | (c)                                                                                                                                                                                                                                                                                          | The Commonwealth of Massachusetts participates in a rental assistance program. |
|   |   |                                                                                                                                                                                                                                                                                         |   |
|   | (2)    | Reflects amount attributable to Registrant only.                                                                                                                                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                         |   |
|   | (3)    | The Local Partnership Interest is no longer owned by Registrant; there are no assets or liabilities related to such Local Partnership included in the combined balance sheets of the Local Partnerships as of December 31, 2010 and 2009 in Note 6 to the accompanying financial statements. |
|   |   |                                                                                                                                                                                                                                                                                         |   |
|   | (4)    | The Local Partnership Interest is no longer owned by Registrant; there are no assets or liabilities related to such Local Partnership included in the combined balance sheet of the Local Partnerships as of December 31, 2010 in Note 6 to the accompanying financial statements.           |

----

|   | (5)    | Registrant withdrew from the Local Partnership in February 2009.  The combined statement of operations of the Local Partnerships for the year ended December 31, 2009 included in Note 6 to the accompanying financial statements does not include any results of operations for such Local Partnership.                                                                                                                                                                                                  |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | (6)    | Registrant withdrew from the Local Partnership in July 2009.  The combined statement of operations of the Local Partnerships for the year ended December 31, 2009 included in Note 6 to the accompanying financial statements includes results of operations for such Local Partnership through the date of withdrawal.                                                                                                                                                                                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | (7)    | Registrant assigned one-half of its 99% Local Partnership Interest to an affiliate of the Local General Partner in December 2009.  The combined statement of operations of the Local Partnerships for the year ended December 31, 2009 included in Note 6 to the accompanying financial statements includes results of operations for such Local Partnership for all of 2009.                                                                                                                             |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | (8)    | Registrant sold its Local Partnership Interest to an affiliate of the Local General Partner in March 2010.  The combined statement of operations of the Local Partnerships for the year ended December 31, 2010 included in Note 6 to the accompanying financial statements includes results of operations for such Local Partnership through the date of sale.                                                                                                                                           |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | (9)    | Registrant sold its Local Partnership Interest to an affiliate of the Local General Partner in August 2010.  The combined statement of operations of the Local Partnerships for the year ended December 31, 2010 included in Note 6 to the accompanying financial statements includes results of operations for such Local Partnership through the date of sale (see Part II, Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations, herein).              |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | (10)   | Registrant assigned its Local Partnership Interest to an unrelated third party in November 2010.  The combined statement of operations of the Local Partnerships for the year ended December 31, 2010 included in Note 6 to the accompanying financial statements includes results of operations for such Local Partnership through the date of assignment (see Part II, Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations, herein).                   |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | (11)   | Registrant withdrew from the Local Partnership in December 2010, thereby transferring its interest to the Local General Partners.  The combined statement of operations of the Local Partnerships for the year ended December 31, 2010 included in Note 6 to the accompanying financial statements includes results of operations for such Local Partnership for all of 2010 (see Part II, Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations, herein). |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | (12)   | In January 2011, the Local Partnership sold its underlying Property (see Part II, Item 7 - Management’s Discussion and Analysis of Financial Condition and Results of Operations, herein).                                                                                                                                                                                                                                                                                                                    |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | (13)   | Capital contribution includes voluntary advances made to the Local Partnership.                                                                                                                                                                                                                                                                                                                                                                                                                                     |

----

----

----

----

|   | · | Registrant accounts for its investment in local partnerships in accordance with the equity method of accounting. |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

----

|   | · | Registrant does not consolidate the accounts and activities of the Local Partnerships, which are considered Variable Interest Entities as defined by Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 810; Subtopic 10, because Registrant is not considered the primary beneficiary.  Registrant’s balance in investment in local partnerships represents the maximum exposure to loss in connection with such investments.  Registrant’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 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 a result of Registrant’s sale of its local Partnership Interest in NP-89, Registrant’s investment in local partnerships has a zero balance as of March 30, 2011. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                    | Page   |
|---------------------------------------------------------|--------|
|                                                    |   |
| Report of Independent Registered Public Accounting Firm | 19     |
|                                                    |   |
| Balance Sheets                                          | 20     |
|                                                    |   |
| Statements of Operations                                | 21     |
|                                                    |   |
| Statements of Changes in Partners' Equity (Deficit)     | 22     |
|                                                    |   |
| Statements of Cash Flows                                | 23     |
|                                                    |   |
| Notes to Financial Statements                           | 25     |

----

----

|                                                                        |   | 2011   |       |   | 2010   |   |
|-----------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
|                                                                        |   |   |       |   |   |   |
| ASSETS                                                                      |   |   |       |   |   |   |
|                                                                        |   |   |       |   |   |   |
| Cash and liquid investments                                                 |   |   |       |   |   |   |
|                                                                        |   |   |       |   |   |   |
| Cash and cash equivalents                                                   |   | $      | 310,706    |   |   | $      | 312,127 |   |
| Investment in Pemberwick Fund                                               |   |   | 1,130,477  |   |   |   | 512,962 |   |
| Investment in bond                                                          |   |   | 99,873     |   |   |   | -- |   |
|                                                                        |   |   |       |   |   |   |   |   |
| Total cash and liquid investments                                           |   |   | 1,541,056  |   |   |   | 825,089 |   |
|                                                                        |   |   |       |   |   |   |   |   |
| Interest receivable                                                         |   |   | 123        |   |   |   | -- |   |
| Investment in local partnerships                                            |   |   | --         |   |   |   | 516,163 |   |
|                                                                        |   |   |       |   |   |   |   |   |
|                                                                        |   | $      | 1,541,179  |   |   | $      | 1,341,252 |   |
|                                                                        |   |   |       |   |   |   |   |   |
| LIABILITIES AND PARTNERS' DEFICIT                                           |   |   |       |   |   |   |   |   |
|                                                                        |   |   |       |   |   |   |   |   |
| Liabilities                                                                 |   |   |       |   |   |   |   |   |
|                                                                        |   |   |       |   |   |   |   |   |
| Accounts payable and accrued expenses                                       |   | $      | 372,270    |   |   | $      | 518,831 |   |
| Payable to general partner and affiliates                                   |   |   | 3,476,461  |   |   |   | 3,217,189 |   |
|                                                                        |   |   |       |   |   |   |   |   |
|                                                                        |   |   | 3,848,731  |   |   |   | 3,736,020 |   |
|                                                                        |   |   |       |   |   |   |   |   |
| Commitments and contingencies                                               |   |   |       |   |   |   |   |   |
|                                                                        |   |   |       |   |   |   |   |   |
| Partners' deficit                                                           |   |   |       |   |   |   |   |   |
|                                                                        |   |   |       |   |   |   |   |   |
| General partner                                                             |   |   | (2,319,896 | )      |   |   | (2,394,768 | ) |
| Limited partners (35,883 units of limited partnership interest outstanding) |   |   | --         |   |   |   | -- |   |
| Accumulated other comprehensive income                                      |   |   | 12,344     |   |   |   | -- |   |
|                                                                        |   |   |       |   |   |   |   |   |
|                                                                        |   |   | (2,307,552 | )      |   |   | (2,394,768 | ) |
|                                                                        |   |   |       |   |   |   |   |   |
|                                                                        |   | $      | 1,541,179  |   |   | $      | 1,341,252 |   |

----

|                                                                                                      |   | 2011   |     |   | 2010   |   |     | 2009   |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
|                                                                                                      |   |   |     |   |   |   |     |   |   |
| REVENUE                                                                                                   |   |   |     |   |   |   |     |   |   |
|                                                                                                      |   |   |     |   |   |   |     |   |   |
| Interest                                                                                                  |   | $      | 15,087   |   |   | $      | 2,430    |   |   | $ | 14,626 |   |
| Other income from local partnerships                                                                      |   |   | 105,272  |   |   |   | 53,075   |   |   |   | 46,186 |   |
|                                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| TOTAL REVENUE                                                                                             |   |   | 120,359  |   |   |   | 55,505   |   |   |   | 60,812 |   |
|                                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| EXPENSES                                                                                                  |   |   |     |   |   |   |     |   |   |   |   |   |
|                                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| Administration fees - affiliate                                                                           |   |   | 204,035  |   |   |   | 174,361  |   |   |   | 220,825 |   |
| Management fees - affiliate                                                                               |   |   | 204,036  |   |   |   | 174,361  |   |   |   | 220,825 |   |
| Professional fees                                                                                         |   |   | 71,500   |   |   |   | 98,004   |   |   |   | 96,342 |   |
| State of New Jersey filing fees                                                                           |   |   | 19,824   |   |   |   | 12,939   |   |   |   | 19,969 |   |
| Printing, postage and other                                                                               |   |   | 20,645   |   |   |   | 15,227   |   |   |   | 5,815 |   |
|                                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| TOTAL EXPENSES                                                                                            |   |   | 520,040  |   |   |   | 474,892  |   |   |   | 563,776 |   |
|                                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
|                                                                                                      |   |   | (399,681 | )      |   |   | (419,387 | )      |   |   | (502,964 | ) |
|                                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| Equity in income of investment in local partnerships                                                      |   |   | 99,594   |   |   |   | 6,193    |   |   |   | 25,363 |   |
|                                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| Loss prior to gain on sale of limited partner interests/local partnership properties                 |   |   | (300,087 | )      |   |   | (413,194 | )      |   |   | (477,601 | ) |
|                                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| Gain on sale of limited partner interests/local partnership properties                                    |   |   | 374,959  |   |   |   | 10       |   |   |   | 3,500 |   |
|                                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| NET INCOME (LOSS)                                                                                         |   |   | 74,872   |   |   |   | (413,184 | )      |   |   | (474,101 | ) |
|                                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| Other comprehensive income (loss)                                                                         |   |   | 12,344   |   |   |   |     |   |   |   | (3,426 | ) |
|                                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| COMPREHENSIVE INCOME (LOSS)                                                                               |   | $      | 87,216   |   |   | $      | (413,184 | )      |   | $ | (477,527 | ) |
|                                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| NET INCOME (LOSS) ATTRIBUTABLE TO                                                                         |   |   |     |   |   |   |     |   |   |   |   |   |
|                                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| General partner                                                                                           |   | $      | 74,872   |   |   | $      | (413,184 | )      |   | $ | (474,101 | ) |
| Limited partners                                                                                          |   |   | --       |   |   |   | --       |   |   |   | -- |   |
|                                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
|                                                                                                      |   | $      | 74,872   |   |   | $      | (413,184 | )      |   | $ | (474,101 | ) |
|                                                                                                      |   |   |     |   |   |   |     |   |   |   |   |   |
| NET INCOME (LOSS) per unit of limited partnership interest (35,883 units of limited partnership interest) |   | $      |  -- |   |   | $      |  -- |   |   | $ |  -- |   |

----

|                                       |   |   General |       |   |   Limited |   |   |  AccumulatedOtherComprehensive |   |   |   |   |
|--------------------------------------------|--------|---------------------|------------|--------|---------------------|--------|--------|-------------------------------------|--------|--------|--------|--------|
|                                       |   | Partner             |       |   | Partners            |   |   | Income (Loss)                  |   |   | Total  |   |
|                                       |   |                |       |   |                |   |   |                                |   |   |   |   |
| Partners' equity (deficit), March 30, 2008 |   | $                   | (1,507,483 | )      |                | $      | --     |                                |   | $      | 3,426  |   |   | $ | (1,504,057 | ) |
|                                       |   |                |       |   |                |   |   |                                |   |   |   |   |   |   |   |   |
| Net loss                                   |   |                | (474,101   | )      |                |   |   |                                |   |   |   |   |   |   | (474,101 | ) |
|                                       |   |                |       |   |                |   |   |                                |   |   |   |   |   |   |   |   |
| Other comprehensive loss                   |   |                |       |   |                |   |   |                                |   |   | (3,426 | )      |   |   | (3,426 | ) |
|                                       |   |                |       |   |                |   |   |                                |   |   |   |   |   |   |   |   |
| Partners' deficit, March 30, 2009          |   |                | (1,981,584 | )      |                |   | --     |                                |   |   | --     |   |   |   | (1,981,584 | ) |
|                                       |   |                |       |   |                |   |   |                                |   |   |   |   |   |   |   |   |
| Net loss                                   |   |                | (413,184   | )      |                |   |   |                                |   |   |   |   |   |   | (413,184 | ) |
|                                       |   |                |       |   |                |   |   |                                |   |   |   |   |   |   |   |   |
| Partners' deficit, March 30, 2010          |   |                | (2,394,768 | )      |                |   | --     |                                |   |   | --     |   |   |   | (2,394,768 | ) |
|                                       |   |                |       |   |                |   |   |                                |   |   |   |   |   |   |   |   |
| Net income                                 |   |                | 74,872     |   |                |   |   |                                |   |   |   |   |   |   | 74,872 |   |
|                                       |   |                |       |   |                |   |   |                                |   |   |   |   |   |   |   |   |
| Other comprehensive income                 |   |                |       |   |                |   |   |                                |   |   | 12,344 |   |   |   | 12,344 |   |
|                                       |   |                |       |   |                |   |   |                                |   |   |   |   |   |   |   |   |
| Partners' equity (deficit), March 30, 2011 |   | $                   | (2,319,896 | )      |                | $      | --     |                                |   | $      | 12,344 |   |   | $ | (2,307,552 | ) |

----

|                                                                                       |   | 2011   |     |   | 2010   |   |     | 2009   |   |
|--------------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
|                                                                                       |   |   |     |   |   |   |     |   |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                       |   |   |     |   |   |   |     |   |   |
|                                                                                       |   |   |     |   |   |   |     |   |   |
| Interest received                                                                          |   | $      | 18,761   |   |   | $      | 2,430    |   |   | $ | 9,796 |   |
| Cash paid for                                                                              |   |   |     |   |   |   |     |   |   |   |   |   |
| Administration fees                                                                        |   |   | (148,799 | )      |   |   | (16,252  | )      |   |   | (14,226 | ) |
| Management fees                                                                            |   |   | (140,000 | )      |   |   | (50,000  | )      |   |   | (214,000 | ) |
| Professional fees                                                                          |   |   | (82,236  | )      |   |   | (101,402 | )      |   |   | (90,178 | ) |
| State of New Jersey filing fees                                                            |   |   | (15,398  | )      |   |   | (16,369  | )      |   |   | (20,412 | ) |
| Printing, postage and other expenses                                                       |   |   | (20,896  | )      |   |   | (13,015  | )      |   |   | (26,714 | ) |
|                                                                                       |   |   |     |   |   |   |     |   |   |   |   |   |
| Net cash used in operating activities                                                      |   |   | (388,568 | )      |   |   | (194,608 | )      |   |   | (355,734 | ) |
|                                                                                       |   |   |     |   |   |   |     |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                       |   |   |     |   |   |   |     |   |   |   |   |   |
|                                                                                       |   |   |     |   |   |   |     |   |   |   |   |   |
| Investments in Pemberwick Fund                                                             |   |   | (607,901 | )      |   |   | (513,281 | )      |   |   |   |   |
| Redemptions from Pemberwick Fund                                                           |   |   |     |   |   |   | 319      |   |   |   |   |   |
| Investment in bond                                                                         |   |   | (100,940 | )      |   |   |     |   |   |   |   |   |
| Proceeds in connection with sale of limited partner interests/local partnership properties |   |   | 990,716  |   |   |   | 10       |   |   |   | 3,500 |   |
| Distributions received from local partnerships                                             |   |   | 105,272  |   |   |   | 73,075   |   |   |   | 46,186 |   |
| Maturities of investments in bonds                                                         |   |   |     |   |   |   |     |   |   |   | 872,000 |   |
|                                                                                       |   |   |     |   |   |   |     |   |   |   |   |   |
| Net cash provided by (used in) investing activities                                        |   |   | 387,147  |   |   |   | (439,877 | )      |   |   | 921,686 |   |
|                                                                                       |   |   |     |   |   |   |     |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                       |   |   | (1,421   | )      |   |   | (634,485 | )      |   |   | 565,952 |   |
|                                                                                       |   |   |     |   |   |   |     |   |   |   |   |   |
| Cash and cash equivalents at beginning of year                                             |   |   | 312,127  |   |   |   | 946,612  |   |   |   | 380,660 |   |
|                                                                                       |   |   |     |   |   |   |     |   |   |   |   |   |
| CASH AND CASH EQUIVALENTS AT END OF YEAR                                                   |   | $      | 310,706  |   |   | $      | 312,127  |   |   | $ | 946,612 |   |
|                                                                                       |   |   |     |   |   |   |     |   |   |   |   |   |
|                                                                                       |   |   |     |   |   |   |     |   |   |   |   |   |
| SIGNIFICANT NONCASH INVESTING AND FINANCING ACTIVITIES                                     |   |   |     |   |   |   |     |   |   |   |   |   |
|                                                                                       |   |   |     |   |   |   |     |   |   |   |   |   |
| Unrealized gain on investment in Pemberwick Fund                                           |   | $      | 9,614    |   |   |   |     |   |   |   |   |   |
|                                                                                       |   |   |     |   |   |   |     |   |   |   |   |   |
| Unrealized gain (loss) on investments in bonds                                             |   | $      | 2,730    |   |   |   |     |   |   | $ | (3,426 | ) |
|                                                                                       |   |   |     |   |   |   |     |   |   |   |   |   |
|                                                                                       |   |   |     |   |   |   |     |   |   |   |   |   |

----

|                                                                                |   | 2011   |     |   | 2010   |   |     | 2009   |   |
|-------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|----------|--------|--------|
|                                                                                |   |   |     |   |   |   |     |   |   |
| RECONCILIATION OF NET INCOME (LOSS) TO NET CASH USED IN OPERATING ACTIVITIES        |   |   |     |   |   |   |     |   |   |
|                                                                                |   |   |     |   |   |   |     |   |   |
| Net income (loss)                                                                   |   | $      | 74,872   |   |   | $      | (413,184 | )      |   | $ | (474,101 | ) |
|                                                                                |   |   |     |   |   |   |     |   |   |   |   |   |
| Adjustments to reconcile net income (loss) to net cash used in operating activities |   |   |     |   |   |   |     |   |   |   |   |   |
|                                                                                |   |   |     |   |   |   |     |   |   |   |   |   |
| Equity in income of investment in local partnerships                                |   |   | (99,594  | )      |   |   | (6,193   | )      |   |   | (25,363 | ) |
| Gain on sale of limited partner interests/local partnership properties              |   |   | (374,959 | )      |   |   | (10      | )      |   |   | (3,500 | ) |
| Other income from local partnerships                                                |   |   | (105,272 | )      |   |   | (53,075  | )      |   |   | (46,186 | ) |
| Accretion of zero coupon bonds                                                      |   |   |     |   |   |   |     |   |   |   | (4,830 | ) |
| Accrued interest purchased at date of investment in bond                            |   |   | 1,750    |   |   |   |     |   |   |   |   |   |
| Amortization of premium on investment in bond                                       |   |   | 2,047    |   |   |   |     |   |   |   |   |   |
| Increase in interest receivable                                                     |   |   | (123     | )      |   |   |     |   |   |   |   |   |
| Increase in payable to general partner and affiliates                               |   |   | 259,272  |   |   |   | 282,470  |   |   |   | 213,424 |   |
| Decrease in accounts payable and accrued expenses                                   |   |   | (146,561 | )      |   |   | (4,616   | )      |   |   | (15,178 | ) |
|                                                                                |   |   |     |   |   |   |     |   |   |   |   |   |
| NET CASH USED IN OPERATING ACTIVITIES                                               |   | $      | (388,568 | )      |   | $      | (194,608 | )      |   | $ | (355,734 | ) |

----

| 1. | Organization, Purpose and Summary of Significant Accounting Policies |
|----|----------------------------------------------------------------------|

----

| 1. | Organization, Purpose and Summary of Significant Accounting Policies (Continued) |
|----|----------------------------------------------------------------------------------|

|   | · |   | Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that the Partnership has the ability to access;                                         |
|--------|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |   |                                                                                                                                                                                            |
|   | · |   | Level 2 inputs may include quoted prices for similar assets and liabilities in active markets, as well as interest rates and yield curves that are observable at commonly quoted intervals; and |
|   |   |   |                                                                                                                                                                                            |
|   | · |   | Level 3 inputs are unobservable inputs for the asset or liability that are typically based on an entity’s own assumptions as there is little, if any, related market activity.            |

----

| 1. | Organization, Purpose and Summary of Significant Accounting Policies (Continued) |
|----|----------------------------------------------------------------------------------|

| 2. | Capital Contributions |
|----|-----------------------|

| 3. | Cash and Cash Equivalents |
|----|---------------------------|

| 4. | Investment in Pemberwick Fund |
|----|-------------------------------|

----

| 4. | Investment in Pemberwick Fund (Continued) |
|----|-------------------------------------------|

| 5. | Investment in Bond |
|----|--------------------|

|   Description and maturity |   | Amortizedcost |   |   | GrossUnrealizedgain |   |   | Grossunrealizedloss |   |   | Estimatedfair value |   |
|--------------------------------------|--------|---------------|--------|--------|---------------------|--------|--------|---------------------|--------|--------|---------------------|--------|
|                                 |   |          |   |   |                |   |   |                |   |   |                |   |
| Corporate debt security              |   |          |   |   |                |   |   |                |   |   |                |   |
| Callable in September 2013           |   | $             | 97,143 |   |                | $      | 2,730  |                |   | $      | --                  |   |   | $ | 99,873 |   |

----

| 6. | Investment in Local Partnerships |
|----|----------------------------------|

| 1.  | April Gardens Apartments II Limited Partnership;           |
|-----|------------------------------------------------------------|
| 2.  | Auburn Family, L.P.;                                       |
| 3.  | Batesville Family, L.P.;                                   |
| 4.  | Bay Springs Elderly, L.P.;                                 |
| 5.  | Brisas del Mar Apartments Limited Partnership;             |
| 6.  | Bruce Housing Associates, L.P.;                            |
| 7.  | Chowan Senior Manor Associates Limited Partnership;        |
| 8.  | Country View Apartments;                                   |
| 9.  | Desarrollos de Belen Limited Partnership;                  |
| 10. | Desarrollos de Emaus Limited Partnership;                  |
| 11. | Ellinwood Heights Apartments, L.P.;                        |
| 12. | Fulton Street Houses Limited Partnership;                  |
| 13. | Hayes Run Limited Partnership;                             |
| 14. | Howard L. Miller Sallisaw Apartments II, L.P.;             |
| 15. | Hurlock Meadow Limited Partnership;                        |
| 16. | Ivy Family, L.P.;                                          |
| 17. | LaBelle Commons, Ltd.;                                     |
| 18. | Lawrence Road Properties, Ltd.;                            |
| 19. | Loma Del Norte Limited Partnership;                        |
| 20. | Long Reach Associates Limited Partnership;                 |
| 21. | Mirador del Toa Limited Partnership;                       |
| 22. | Moore Haven Commons, Ltd.;                                 |
| 23. | Nash Hill Associates, Limited Partnership;                 |
| 24. | North Calhoun City, L.P.;                                  |
| 25. | Puerta del Mar Limited Partnership;                        |
| 26. | Purvis Heights Properties, L.P.;                           |
| 27. | Queen Lane Investors (“Queen Lane”);           |
| 28. | Somerset Manor, Ltd.;                                      |
| 29. | Sugar Cane Villas, Ltd.;                                   |
| 30. | Summerfield Apartments Limited Partnership;                |
| 31. | Sydney Engel Associates L.P. (“Sydney Engel”); |
| 32. | Union Valley Associates Limited Partnership;               |
| 33. | Walnut Grove Family, L.P.;                                 |
| 34. | Waynesboro Apartments Limited Partnership; and             |
| 35. | West Calhoun City, L.P.                                    |

|                                |   | ThePartnership |   |   | ATCP II |   |
|-------------------------------------|--------|----------------|--------|--------|---------|--------|
|                                |   |           |   |   |    |   |
| Batesville Family, L.P.             |   |           | 61.75  | %      |    |   | 37.25 | % |
| Bruce Housing Associates, L.P.      |   |           | 61.75  |   |    |   | 37.25 |   |
| Ivy Family, L.P.                    |   |           | 61.75  |   |    |   | 37.25 |   |
| Lawrence Road Properties, Ltd.      |   |           | 61.75  |   |    |   | 37.25 |   |
| Mirador del Toa Limited Partnership |   |           | 59.06  |   |    |   | 39.94 |   |
| Purvis Heights Properties, L.P.     |   |           | 61.75  |   |    |   | 37.25 |   |
| Queen Lane Investors                |   |           | 48.50  |   |    |   | 50.50 |   |

----

| 6. | Investment in Local Partnerships (Continued) |
|----|----------------------------------------------|

----

| 6. | Investment in Local Partnerships (Continued) |
|----|----------------------------------------------|

|              |   | 2010   |    |   | 2009   |      |
|-------------------|--------|--------|---------|--------|--------|-----------|
|              |   |   |    |   |   |      |
| Total assets      |   |   |    |   | $      | 3,324,230 |   |
|              |   |   |    |   |   |      |   |
| Total liabilities |   |   |    |   | $      | 2,739,318 |   |
|              |   |   |    |   |   |      |   |
| Revenue           |   | $      | 863,386 |   |   | $         | 1,288,664 |   |
|              |   |   |    |   |   |      |   |   |
| Net income        |   | $      | 100,600 |   |   | $         | 6,256 |   |

----

| 6. | Investment in Local Partnerships (Continued) |
|----|----------------------------------------------|

|                                                                                        |   | 2010   |        |   | 2009   |   |
|---------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                                                        |   |   |        |   |   |   |
| ASSETS                                                                                      |   |   |        |   |   |   |
|                                                                                        |   |   |        |   |   |   |
| Cash and cash equivalents                                                                   |   | $      | 2,040,698   |   |   | $      | 1,745,227 |   |
| Rents receivable                                                                            |   |   | 456,831     |   |   |   | 504,964 |   |
| Escrow deposits and reserves                                                                |   |   | 4,488,303   |   |   |   | 5,115,688 |   |
| Land                                                                                        |   |   | 2,595,328   |   |   |   | 3,608,404 |   |
| Buildings and improvements (net of accumulated depreciation of $56,717,405 and $68,583,356) |   |   | 35,495,944  |   |   |   | 43,096,982 |   |
| Intangible assets (net of accumulated amortization of $339,791 and $625,138)                |   |   | 263,336     |   |   |   | 400,175 |   |
| Other assets                                                                                |   |   | 1,275,133   |   |   |   | 1,379,059 |   |
|                                                                                        |   |   |        |   |   |   |   |   |
|                                                                                        |   | $      | 46,615,573  |   |   | $      | 55,850,499 |   |
|                                                                                        |   |   |        |   |   |   |   |   |
| LIABILITIES AND PARTNERS' EQUITY (DEFICIT)                                                  |   |   |        |   |   |   |   |   |
|                                                                                        |   |   |        |   |   |   |   |   |
| Liabilities                                                                                 |   |   |        |   |   |   |   |   |
|                                                                                        |   |   |        |   |   |   |   |   |
| Accounts payable and accrued expenses                                                       |   | $      | 1,310,293   |   |   | $      | 1,216,538 |   |
| Due to related parties                                                                      |   |   | 4,577,399   |   |   |   | 5,301,656 |   |
| Mortgage loans                                                                              |   |   | 65,915,570  |   |   |   | 73,874,985 |   |
| Accrued interest                                                                            |   |   | 2,126,970   |   |   |   | 5,895,042 |   |
| Other liabilities                                                                           |   |   | 689,269     |   |   |   | 730,814 |   |
|                                                                                        |   |   |        |   |   |   |   |   |
|                                                                                        |   |   | 74,619,501  |   |   |   | 87,019,035 |   |
|                                                                                        |   |   |        |   |   |   |   |   |
| Partners' equity (deficit)                                                                  |   |   |        |   |   |   |   |   |
|                                                                                        |   |   |        |   |   |   |   |   |
| American Tax Credit Properties III L.P.                                                     |   |   |        |   |   |   |   |   |
| Capital contributions, net of distributions                                                 |   |   | 15,151,714  |   |   |   | 23,922,311 |   |
| Cumulative loss                                                                             |   |   | (14,485,316 | )      |   |   | (21,865,526 | ) |
|                                                                                        |   |   |        |   |   |   |   |   |
|                                                                                        |   |   | 666,398     |   |   |   | 2,056,785 |   |
|                                                                                        |   |   |        |   |   |   |   |   |
| General partners and other limited partners                                                 |   |   |        |   |   |   |   |   |
| Capital contributions, net of distributions                                                 |   |   | (56,816     | )      |   |   | 196,361 |   |
| Cumulative loss                                                                             |   |   | (28,613,510 | )      |   |   | (33,421,682 | ) |
|                                                                                        |   |   |        |   |   |   |   |   |
|                                                                                        |   |   | (28,670,326 | )      |   |   | (33,225,321 | ) |
|                                                                                        |   |   |        |   |   |   |   |   |
|                                                                                        |   |   | (28,003,928 | )      |   |   | (31,168,536 | ) |
|                                                                                        |   |   |        |   |   |   |   |   |
|                                                                                        |   | $      | 46,615,573  |   |   | $      | 55,850,499 |   |

----

| 6. | Investment in Local Partnerships (Continued) |
|----|----------------------------------------------|

|                                                                                                                                     |   | 2010   |       |   | 2009   |   |       | 2008   |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                                                                                                     |   |   |       |   |   |   |       |   |   |
| REVENUE                                                                                                                                  |   |   |       |   |   |   |       |   |   |
|                                                                                                                                     |   |   |       |   |   |   |       |   |   |
| Rental                                                                                                                                   |   | $      | 11,849,345 |   |   | $      | 12,346,413 |   |   | $ | 12,349,316 |   |
| Interest and other                                                                                                                       |   |   | 180,725    |   |   |   | 458,431    |   |   |   | 313,636 |   |
|                                                                                                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| TOTAL REVENUE                                                                                                                            |   |   | 12,030,070 |   |   |   | 12,804,844 |   |   |   | 12,662,952 |   |
|                                                                                                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| EXPENSES                                                                                                                                 |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                                                                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| Administrative                                                                                                                           |   |   | 2,749,706  |   |   |   | 2,912,171  |   |   |   | 3,016,090 |   |
| Utilities                                                                                                                                |   |   | 1,523,217  |   |   |   | 1,653,578  |   |   |   | 1,784,854 |   |
| Operating and maintenance                                                                                                                |   |   | 2,675,614  |   |   |   | 3,445,870  |   |   |   | 3,029,077 |   |
| Taxes and insurance                                                                                                                      |   |   | 1,025,220  |   |   |   | 1,094,092  |   |   |   | 1,164,195 |   |
| Financial                                                                                                                                |   |   | 1,907,533  |   |   |   | 2,015,688  |   |   |   | 2,182,047 |   |
| Depreciation and amortization                                                                                                            |   |   | 3,427,773  |   |   |   | 3,834,817  |   |   |   | 3,880,345 |   |
|                                                                                                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| TOTAL EXPENSES                                                                                                                           |   |   | 13,309,063 |   |   |   | 14,956,216 |   |   |   | 15,056,608 |   |
|                                                                                                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| NET LOSS                                                                                                                                 |   | $      | (1,278,993 | )      |   | $      | (2,151,372 | )      |   | $ | (2,393,656 | ) |
|                                                                                                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| NET INCOME (LOSS) ATTRIBUTABLE TO                                                                                                        |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                                                                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| American Tax Credit Properties III L.P.                                                                                                  |   | $      | 99,594     |   |   | $      | 6,193      |   |   | $ | 25,363 |   |
| General partners and other limited partners (includes $1,245,952, $2,045,768 and $2,292,014 of Partnership loss in excess of investment) |   |   | (1,378,587 | )      |   |   | (2,157,565 | )      |   |   | (2,419,019 | ) |
|                                                                                                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
|                                                                                                                                     |   | $      | (1,278,993 | )      |   | $      | (2,151,372 | )      |   | $ | (2,393,656 | ) |

----

| 6. | Investment in Local Partnerships (Continued) |
|----|----------------------------------------------|

|        Name of Local Partnership |   |  Investmentin LocalPartnershipbalance as ofMarch 30,2010 |    |   |  Partnership'sequity inincome for theyear endedMarch 30,2011 |   |   | Cashdistributionsreceivedduring theyear endedMarch 30,2011 |   |   | Cashdistributionsclassified asother incomeduring theyear endedMarch 30,2011 |   |   |  Investmentin LocalPartnershipbalance as ofMarch 30,2011 |     |
|---------------------------------------------------------------------|--------|---------------------------------------------------------------|---------|--------|-------------------------------------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------|----------|
|                                                                |   |                                                          |    |   |                                                              |   |   |                                                       |   |   |                                                                        |   |   |                                                          |     |
| April Gardens Apartments II Limited Partnership                     |   | $                                                             | --      |   |                                                              | $      | --     | (1)                                                        |   | $      | (960                                                                        | )      |   | $                                                             | 960      |   |   | $ | -- |   |
| Auburn Family, L.P.                                                 |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Batesville Family, L.P.                                             |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Bay Springs Elderly, L.P.                                           |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Brisas del Mar Apartments Limited Partnership                       |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (1,320                                                                      | )      |   |                                                          | 1,320    |   |   |   | -- |   |
| Bruce Housing Associates, L.P.                                      |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Chestnut Park Associates, L.P.                                      |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Chowan Senior Manor Associates Limited Partnership                  |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (1,580                                                                      | )      |   |                                                          | 1,580    |   |   |   | -- |   |
| Christian Street Commons Associates (2)                             |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (63,229                                                                     | )      |   |                                                          | 63,229   |   |   |   | -- |   |
| Country View Apartments                                             |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Desarrollos de Belen Limited Partnership                            |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (2,000                                                                      | )      |   |                                                          | 2,000    |   |   |   | -- |   |
| Desarrollos de Emaus Limited Partnership                            |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (3,000                                                                      | )      |   |                                                          | 3,000    |   |   |   | -- |   |
| Ellinwood Heights Apartments, L.P.                                  |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (480                                                                        | )      |   |                                                          | 480      |   |   |   | -- |   |
| Fulton Street Houses Limited Partnership                            |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Hayes Run Limited Partnership                                       |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (1,785                                                                      | )      |   |                                                          | 1,785    |   |   |   | -- |   |
| Howard L. Miller Sallisaw Apartments II, L.P.                       |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (480                                                                        | )      |   |                                                          | 480      |   |   |   | -- |   |
| Hurlock Meadow Limited Partnership                                  |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (1,588                                                                      | )      |   |                                                          | 1,588    |   |   |   | -- |   |
| Ivy Family, L.P.                                                    |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Lawrence Road Properties, Ltd.                                      |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Labelle Commons, Ltd.                                               |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (2,500                                                                      | )      |   |                                                          | 2,500    |   |   |   | -- |   |
| Loma Del Norte Limited Partnership                                  |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (4,000                                                                      | )      |   |                                                          | 4,000    |   |   |   | -- |   |
| Long Reach Associates Limited Partnership                           |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (1,837                                                                      | )      |   |                                                          | 1,837    |   |   |   | -- |   |
| Mirador del Toa Limited Partnership                                 |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (572                                                                        | )      |   |                                                          | 572      |   |   |   | -- |   |
| Moore Haven Commons, Ltd.                                           |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (2,320                                                                      | )      |   |                                                          | 2,320    |   |   |   | -- |   |
| NP-89 Limited Dividend Housing Association Limited Partnership (2)  |   |                                                          | 516,163 |   |                                                              |   | 99,594 |                                                       |   |   | (615,757                                                                    | )      |   |                                                          |  -- |   |   |   | -- |   |
| Nash Hill Associates, Limited Partnership                           |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (1,819                                                                      | )      |   |                                                          | 1,819    |   |   |   | -- |   |
| North Calhoun City, L.P.                                            |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Orange City Plaza, Limited Partnership                              |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Puerta del Mar Limited Partnership                                  |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (1,320                                                                      | )      |   |                                                          | 1,320    |   |   |   | -- |   |
| Purvis Heights Properties, L.P.                                     |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Queen Lane Investors                                                |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Somerset Manor, Ltd.                                                |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (2,242                                                                      | )      |   |                                                          | 2,242    |   |   |   | -- |   |
| Sugar Cane Villas, Ltd.                                             |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (10,990                                                                     | )      |   |                                                          | 10,990   |   |   |   | -- |   |
| Summerfield Apartments Limited Partnership                          |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Sydney Engel Associates L.P.                                        |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Union Valley Associates Limited Partnership                         |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Walnut Grove Family, L.P.                                           |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Waynesboro Apartments Limited Partnership                           |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (1,250                                                                      | )      |   |                                                          | 1,250    |   |   |   | -- |   |
| West Calhoun City, L.P.                                             |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
|                                                                |   |                                                          |    |   |                                                              |   |   |                                                       |   |   |                                                                        |   |   |                                                          |     |   |   |   |   |   |
|                                                                |   | $                                                             | 516,163 |   |                                                              | $      | 99,594 |                                                       |   | $      | (721,029                                                                    | )      |   | $                                                             | 105,272  |   |   | $ | -- |   |

|   | (1) | Additional equity in loss of investment is not allocated to the Partnership until equity in income is earned or additional investment is made by the Partnership. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Distribution does not include additional sales proceeds; see discussion above herein Note 6. |
|--------|-----|----------------------------------------------------------------------------------------------|

----

| 6. | Investment in Local Partnerships (Continued) |
|----|----------------------------------------------|

|    Name of Local Partnership                    |   |  Investmentin LocalPartnershipbalance as ofMarch 30,2009 |    |   |  Partnership'sequity inincome for theyear endedMarch 30,2010 |   |   | Cashdistributionsreceivedduring theyear endedMarch 30,2010 |   |   | Cashdistributionsclassified asother incomeduring theyear endedMarch 30,2010 |   |   |  Investmentin LocalPartnershipbalance as ofMarch 30,2010 |     |
|----------------------------------------------------------------|--------|---------------------------------------------------------------|---------|--------|-------------------------------------------------------------------|--------|--------|------------------------------------------------------------|--------|--------|-----------------------------------------------------------------------------|--------|--------|---------------------------------------------------------------|----------|
|                                                           |   |                                                          |    |   |                                                              |   |   |                                                       |   |   |                                                                        |   |   |                                                          |     |
| April Gardens Apartments II Limited Partnership                |   | $                                                             | --      |   |                                                              | $      | --     | (1)                                                        |   | $      | (960                                                                        | )      |   | $                                                             | 960      |   |   | $ | -- |   |
| Auburn Family, L.P.                                            |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Batesville Family, L.P.                                        |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Bay Springs Elderly, L.P.                                      |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Brisas del Mar Apartments Limited Partnership                  |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (1,320                                                                      | )      |   |                                                          | 1,320    |   |   |   | -- |   |
| Bruce Housing Associates, L.P.                                 |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Chestnut Park Associates, L.P.                                 |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Chowan Senior Manor Associates Limited Partnership             |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (1,580                                                                      | )      |   |                                                          | 1,580    |   |   |   | -- |   |
| Christian Street Commons Associates                            |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Country View Apartments                                        |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Desarrollos de Belen Limited Partnership                       |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (2,000                                                                      | )      |   |                                                          | 2,000    |   |   |   | -- |   |
| Desarrollos de Emaus Limited Partnership                       |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (3,000                                                                      | )      |   |                                                          | 3,000    |   |   |   | -- |   |
| Ellinwood Heights Apartments, L.P.                             |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Fulton Street Houses Limited Partnership                       |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Hayes Run Limited Partnership                                  |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (1,785                                                                      | )      |   |                                                          | 1,785    |   |   |   | -- |   |
| Howard L. Miller Sallisaw Apartments II, L.P.                  |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Hurlock Meadow Limited Partnership                             |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (1,588                                                                      | )      |   |                                                          | 1,588    |   |   |   | -- |   |
| Ivy Family, L.P.                                               |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Justin Associates                                              |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Lawrence Road Properties, Ltd.                                 |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Labelle Commons, Ltd.                                          |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (5,000                                                                      | )      |   |                                                          | 5,000    |   |   |   | -- |   |
| Loma Del Norte Limited Partnership                             |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (2,000                                                                      | )      |   |                                                          | 2,000    |   |   |   | -- |   |
| Long Reach Associates Limited Partnership                      |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (1,837                                                                      | )      |   |                                                          | 1,837    |   |   |   | -- |   |
| Mirador del Toa Limited Partnership                            |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (572                                                                        | )      |   |                                                          | 572      |   |   |   | -- |   |
| Moore Haven Commons, Ltd.                                      |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (4,640                                                                      | )      |   |                                                          | 4,640    |   |   |   | -- |   |
| NP-89 Limited Dividend Housing Association Limited Partnership |   |                                                          | 529,970 |   |                                                              |   | 6,193  |                                                       |   |   | (20,000                                                                     | )      |   |                                                          |  -- |   |   |   | 516,163 |   |
| Nash Hill Associates, Limited Partnership                      |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| North Calhoun City, L.P.                                       |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Orange City Plaza, Limited Partnership                         |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Puerta del Mar Limited Partnership                             |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (1,320                                                                      | )      |   |                                                          | 1,320    |   |   |   | -- |   |
| Purvis Heights Properties, L.P.                                |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Queen Lane Investors                                           |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Somerset Manor, Ltd.                                           |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (2,243                                                                      | )      |   |                                                          | 2,243    |   |   |   | -- |   |
| Sugar Cane Villas, Ltd.                                        |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (21,980                                                                     | )      |   |                                                          | 21,980   |   |   |   | -- |   |
| Summerfield Apartments Limited Partnership                     |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Sydney Engel Associates L.P.                                   |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Union Valley Associates Limited Partnership                    |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Walnut Grove Family, L.P.                                      |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Waynesboro Apartments Limited Partnership                      |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | (1,250                                                                      | )      |   |                                                          | 1,250    |   |   |   | -- |   |
| West Calhoun City, L.P.                                        |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
| Westminster Apartments Limited Partnership (2)                 |   |                                                          | --      |   |                                                              |   | --     | (1)                                                        |   |   | --                                                                          |   |   |                                                          | --       |   |   |   | -- |   |
|                                                           |   |                                                          |    |   |                                                              |   |   |                                                       |   |   |                                                                        |   |   |                                                          |     |   |   |   |   |   |
|                                                           |   | $                                                             | 529,970 |   |                                                              | $      | 6,193  |                                                       |   | $      | (73,075                                                                     | )      |   | $                                                             | (53,075  | ) |   | $ | 516,163 |   |

| (1) | Additional equity in loss of investment is not allocated to the Partnership until equity in income is earned or additional investment is made by the Partnership. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | Distribution excludes $10 in sales proceeds; see discussion above herein Note 6.                                                                                  |

----

| 6. | Investment in Local Partnerships (Continued) |
|----|----------------------------------------------|

|  Name of Local Partnership                    |   | Mortgageloans payable |       |   | Land   |   |      | Buildings andimprovements |   |   | Accumulateddepreciation |   |
|----------------------------------------------------|--------|-----------------------|------------|--------|--------|--------|-----------|---------------------------|--------|--------|-------------------------|--------|
|                                               |   |                  |       |   |   |   |      |                      |   |   |                    |   |
| April Gardens Apartments II Limited Partnership    |   | $                     | 1,906,475  |   |   | $      | 39,984    |                      |   | $      | 2,580,057               |   |   | $ | (2,014,181 | ) |
| Auburn Family, L.P.                                |   |                  | 429,693    |   |   |   | 20,000    |                      |   |   | 705,291                 |   |   |   | (358,659 | ) |
| Batesville Family, L.P.                            |   |                  | 1,380,986  |   |   |   | 52,000    |                      |   |   | 1,939,764               |   |   |   | (1,090,190 | ) |
| Bay Springs Elderly, L.P.                          |   |                  | 646,688    |   |   |   | 38,000    |                      |   |   | 938,296                 |   |   |   | (521,720 | ) |
| Brisas del Mar Apartments Limited Partnership      |   |                  | 2,521,086  |   |   |   | 100,280   |                      |   |   | 3,662,238               |   |   |   | (2,767,855 | ) |
| Bruce Housing Associates, L.P.                     |   |                  | 1,050,106  |   |   |   | 16,000    |                      |   |   | 1,677,857               |   |   |   | (1,087,813 | ) |
| Chowan Senior Manor Associates Limited Partnership |   |                  | 1,171,977  |   |   |   | 86,101    |                      |   |   | 1,620,729               |   |   |   | (1,126,948 | ) |
| Christian Street Commons Associates                |   |                  | 492,539    |   |   |   | --        |                      |   |   | --                      |   |   |   | -- |   |
| Country View Apartments                            |   |                  | 894,915    |   |   |   | 35,698    |                      |   |   | 1,323,993               |   |   |   | (635,623 | ) |
| Desarrollos de Belen Limited Partnership           |   |                  | 1,795,962  |   |   |   | 96,190    |                      |   |   | 2,519,166               |   |   |   | (1,538,566 | ) |
| Desarrollos de Emaus Limited Partnership           |   |                  | 3,052,309  |   |   |   | 214,000   |                      |   |   | 4,115,794               |   |   |   | (2,394,335 | ) |
| Ellinwood Heights Apartments, L.P.                 |   |                  | 656,821    |   |   |   | 10,000    |                      |   |   | 1,052,310               |   |   |   | (526,676 | ) |
| Fulton Street Houses Limited Partnership           |   |                  | 3,869,930  |   |   |   | 2         |                      |   |   | 5,983,089               |   |   |   | (4,128,499 | ) |
| Hayes Run Limited Partnership                      |   |                  | 1,362,065  |   |   |   | 85,060    |                      |   |   | 1,721,348               |   |   |   | (906,454 | ) |
| Howard L. Miller Sallisaw Apartments II, L.P.      |   |                  | 589,309    |   |   |   | 39,000    |                      |   |   | 866,303                 |   |   |   | (374,687 | ) |
| Hurlock Meadow Limited Partnership                 |   |                  | 1,210,027  |   |   |   | 49,525    |                      |   |   | 1,712,708               |   |   |   | (1,165,551 | ) |
| Ivy Family, L.P.                                   |   |                  | 710,431    |   |   |   | 11,000    |                      |   |   | 1,301,053               |   |   |   | (807,795 | ) |
| LaBelle Commons, Ltd.                              |   |                  | 966,364    |   |   |   | 98,947    |                      |   |   | 1,263,737               |   |   |   | (805,339 | ) |
| Lawrence Road Properties, Ltd.                     |   |                  | 724,659    |   |   |   | 50,000    |                      |   |   | 1,000,995               |   |   |   | (563,090 | ) |
| Loma Del Norte Limited Partnership                 |   |                  | 1,375,750  |   |   |   | 84,874    |                      |   |   | 1,962,065               |   |   |   | (911,494 | ) |
| Long Reach Associates Limited Partnership          |   |                  | 1,414,151  |   |   |   | 118,446   |                      |   |   | 1,944,524               |   |   |   | (1,018,920 | ) |
| Mirador del Toa Limited Partnership                |   |                  | 1,786,488  |   |   |   | 105,000   |                      |   |   | 2,397,849               |   |   |   | (1,894,993 | ) |
| Moore Haven Commons, Ltd.                          |   |                  | 886,036    |   |   |   | 73,645    |                      |   |   | 1,199,226               |   |   |   | (851,791 | ) |
| Nash Hill Associates, Limited Partnership          |   |                  | 1,402,493  |   |   |   | 123,876   |                      |   |   | 1,816,676               |   |   |   | (936,365 | ) |
| North Calhoun City, L.P.                           |   |                  | 435,002    |   |   |   | 12,000    |                      |   |   | 689,428                 |   |   |   | (390,725 | ) |
| Puerta del Mar Limited Partnership                 |   |                  | 2,400,405  |   |   |   | 115,000   |                      |   |   | 3,417,724               |   |   |   | (2,537,474 | ) |
| Purvis Heights Properties, L.P.                    |   |                  | 1,096,255  |   |   |   | 47,000    |                      |   |   | 1,646,125               |   |   |   | (831,013 | ) |
| Queen Lane Investors                               |   |                  | 2,075,290  |   |   |   | 60,301    |                      |   |   | 2,841,369               |   |   |   | (1,729,552 | ) |
| Somerset Manor, Ltd.                               |   |                  | 858,873    |   |   |   | 53,383    |                      |   |   | 1,144,154               |   |   |   | (819,172 | ) |
| Sugar Cane Villas, Ltd.                            |   |                  | 3,162,495  |   |   |   | 58,500    |                      |   |   | 4,093,772               |   |   |   | (2,900,283 | ) |
| Summerfield Apartments Limited Partnership         |   |                  | 1,336,987  |   |   |   | 195,411   |                      |   |   | 2,958,656               |   |   |   | (1,335,540 | ) |
| Sydney Engel Associates LP                         |   |                  | 18,001,703 |   |   |   | 284,305   |                      |   |   | 24,123,246              |   |   |   | (14,589,649 | ) |
| Union Valley Associates Limited Partnership        |   |                  | 1,384,112  |   |   |   | 97,800    |                      |   |   | 1,758,877               |   |   |   | (885,663 | ) |
| Walnut Grove Family, L.P.                          |   |                  | 812,671    |   |   |   | 30,000    |                      |   |   | 1,153,737               |   |   |   | (671,688 | ) |
| Waynesboro Apartments Limited Partnership          |   |                  | 1,414,917  |   |   |   | 76,000    |                      |   |   | 1,842,666               |   |   |   | (927,804 | ) |
| West Calhoun City, L.P.                            |   |                  | 639,600    |   |   |   | 18,000    |                      |   |   | 1,238,527               |   |   |   | (671,298 | ) |
|                                               |   |                  |       |   |   |   |      |                      |   |   |                    |   |   |   |   |   |
|                                               |   | $                     | 65,915,570 |   |   | $      | 2,595,328 |                      |   | $      | 92,213,349              |   |   | $ | (56,717,405 | ) |

----

| 6. | Investment in Local Partnerships (Continued) |
|----|----------------------------------------------|

|  Name of Local Partnership                                |   | Mortgageloans payable |       |   | Land   |   |      | Buildings andimprovements |   |   | Accumulateddepreciation |   |
|----------------------------------------------------------------|--------|-----------------------|------------|--------|--------|--------|-----------|---------------------------|--------|--------|-------------------------|--------|
|                                                           |   |                  |       |   |   |   |      |                      |   |   |                    |   |
| April Gardens Apartments II Limited Partnership                |   | $                     | 1,919,017  |   |   | $      | 39,984    |                      |   | $      | 2,571,888               |   |   | $ | (1,914,383 | ) |
| Auburn Family, L.P.                                            |   |                  | 435,391    |   |   |   | 20,000    |                      |   |   | 700,291                 |   |   |   | (340,469 | ) |
| Batesville Family, L.P.                                        |   |                  | 1,388,997  |   |   |   | 52,000    |                      |   |   | 1,902,733               |   |   |   | (1,039,102 | ) |
| Bay Springs Elderly, L.P.                                      |   |                  | 650,941    |   |   |   | 38,000    |                      |   |   | 938,296                 |   |   |   | (498,904 | ) |
| Brisas del Mar Apartments Limited Partnership                  |   |                  | 2,539,009  |   |   |   | 100,280   |                      |   |   | 3,525,312               |   |   |   | (2,614,962 | ) |
| Bruce Housing Associates, L.P.                                 |   |                  | 1,058,397  |   |   |   | 16,000    |                      |   |   | 1,668,814               |   |   |   | (1,029,811 | ) |
| Chestnut Park Associates, L.P.                                 |   |                  | 4,201,606  |   |   |   | 781,700   |                      |   |   | 8,715,836               |   |   |   | (5,890,740 | ) |
| Chowan Senior Manor Associates Limited Partnership             |   |                  | 1,183,484  |   |   |   | 86,101    |                      |   |   | 1,620,729               |   |   |   | (1,075,357 | ) |
| Christian Street Commons Associates                            |   |                  | 507,616    |   |   |   | --        |                      |   |   | --                      |   |   |   | -- |   |
| Country View Apartments                                        |   |                  | 900,561    |   |   |   | 35,698    |                      |   |   | 1,314,750               |   |   |   | (597,516 | ) |
| Desarrollos de Belen Limited Partnership                       |   |                  | 1,807,250  |   |   |   | 96,190    |                      |   |   | 2,519,166               |   |   |   | (1,455,783 | ) |
| Desarrollos de Emaus Limited Partnership                       |   |                  | 3,071,495  |   |   |   | 214,000   |                      |   |   | 4,115,793               |   |   |   | (2,260,523 | ) |
| Ellinwood Heights Apartments, L.P.                             |   |                  | 661,047    |   |   |   | 10,000    |                      |   |   | 1,039,293               |   |   |   | (491,959 | ) |
| Fulton Street Houses Limited Partnership                       |   |                  | 3,869,930  |   |   |   | 2         |                      |   |   | 5,983,089               |   |   |   | (3,903,811 | ) |
| Hayes Run Limited Partnership                                  |   |                  | 1,370,693  |   |   |   | 85,060    |                      |   |   | 1,714,574               |   |   |   | (856,803 | ) |
| Howard L. Miller Sallisaw Apartments II, L.P.                  |   |                  | 592,943    |   |   |   | 39,000    |                      |   |   | 837,234                 |   |   |   | (350,157 | ) |
| Hurlock Meadow Limited Partnership                             |   |                  | 1,218,066  |   |   |   | 49,525    |                      |   |   | 1,653,890               |   |   |   | (1,103,083 | ) |
| Ivy Family, L.P.                                               |   |                  | 722,550    |   |   |   | 11,000    |                      |   |   | 1,239,462               |   |   |   | (762,642 | ) |
| Justin Associates                                              |   |                  | 2,070,292  |   |   |   | 27,472    |                      |   |   | 4,384,882               |   |   |   | (2,866,978 | ) |
| LaBelle Commons, Ltd.                                          |   |                  | 972,598    |   |   |   | 98,947    |                      |   |   | 1,263,737               |   |   |   | (781,096 | ) |
| Lawrence Road Properties, Ltd.                                 |   |                  | 729,334    |   |   |   | 50,000    |                      |   |   | 988,256                 |   |   |   | (536,499 | ) |
| Loma Del Norte Limited Partnership                             |   |                  | 1,384,131  |   |   |   | 84,874    |                      |   |   | 2,057,207               |   |   |   | (960,503 | ) |
| Long Reach Associates Limited Partnership                      |   |                  | 1,422,983  |   |   |   | 118,446   |                      |   |   | 1,940,133               |   |   |   | (968,023 | ) |
| Mirador del Toa Limited Partnership                            |   |                  | 1,799,524  |   |   |   | 105,000   |                      |   |   | 2,393,997               |   |   |   | (1,791,380 | ) |
| Moore Haven Commons, Ltd.                                      |   |                  | 891,738    |   |   |   | 73,645    |                      |   |   | 1,199,226               |   |   |   | (834,425 | ) |
| NP-89 Limited Dividend Housing Association Limited Partnership |   |                  | 2,678,344  |   |   |   | 150,000   |                      |   |   | 8,008,425               |   |   |   | (5,259,302 | ) |
| Nash Hill Associates, Limited Partnership                      |   |                  | 1,411,518  |   |   |   | 123,876   |                      |   |   | 1,814,111               |   |   |   | (884,813 | ) |
| North Calhoun City, L.P.                                       |   |                  | 442,614    |   |   |   | 12,000    |                      |   |   | 681,627                 |   |   |   | (374,441 | ) |
| Orange City Plaza, Limited Partnership                         |   |                  | 361,020    |   |   |   | 53,904    |                      |   |   | 1,051,852               |   |   |   | (549,917 | ) |
| Puerta del Mar Limited Partnership                             |   |                  | 2,417,459  |   |   |   | 115,000   |                      |   |   | 3,279,123               |   |   |   | (2,391,813 | ) |
| Purvis Heights Properties, L.P.                                |   |                  | 1,103,621  |   |   |   | 47,000    |                      |   |   | 1,616,972               |   |   |   | (793,650 | ) |
| Queen Lane Investors                                           |   |                  | 1,955,583  |   |   |   | 60,301    |                      |   |   | 2,841,369               |   |   |   | (1,729,552 | ) |
| Somerset Manor, Ltd.                                           |   |                  | 864,146    |   |   |   | 53,383    |                      |   |   | 1,140,303               |   |   |   | (777,728 | ) |
| Sugar Cane Villas, Ltd.                                        |   |                  | 3,182,404  |   |   |   | 58,500    |                      |   |   | 4,093,772               |   |   |   | (2,839,720 | ) |
| Summerfield Apartments Limited Partnership                     |   |                  | 1,393,021  |   |   |   | 195,411   |                      |   |   | 2,893,128               |   |   |   | (1,258,715 | ) |
| Sydney Engel Associates L.P.                                   |   |                  | 16,403,175 |   |   |   | 284,305   |                      |   |   | 22,039,952              |   |   |   | (13,795,998 | ) |
| Union Valley Associates Limited Partnership                    |   |                  | 1,392,677  |   |   |   | 97,800    |                      |   |   | 1,758,877               |   |   |   | (842,708 | ) |
| Walnut Grove Family, L.P.                                      |   |                  | 817,729    |   |   |   | 30,000    |                      |   |   | 1,130,022               |   |   |   | (642,428 | ) |
| Waynesboro Apartments Limited Partnership                      |   |                  | 1,424,179  |   |   |   | 76,000    |                      |   |   | 1,814,995               |   |   |   | (882,888 | ) |
| West Calhoun City, L.P.                                        |   |                  | 657,902    |   |   |   | 18,000    |                      |   |   | 1,227,222               |   |   |   | (634,774 | ) |
|                                                           |   |                  |       |   |   |   |      |                      |   |   |                    |   |   |   |   |   |
|                                                           |   | $                     | 73,874,985 |   |   | $      | 3,608,404 |                      |   | $      | 111,680,338             |   |   | $ | (68,583,356 | ) |

|                       |   |  Balance as ofDecember 31, 2009 |        |   | Net changeduring the yearendedDecember 31, 2010 |   |        |  Balance as ofDecember 31, 2010 |   |
|----------------------------|--------|--------------------------------------|-------------|--------|-------------------------------------------------|--------|-------------|--------------------------------------|--------|
|                       |   |                                 |        |   |                                            |   |        |                                 |   |
| Land                       |   | $                                    | 3,608,404   |   |                                            | $      | (1,013,076  | )                                    |   | $ | 2,595,328 |   |
| Buildings and improvements |   |                                 | 111,680,338 |   |                                            |   | (19,466,989 | )                                    |   |   | 92,213,349 |   |
|                       |   |                                 |        |   |                                            |   |        |                                 |   |   |   |   |
|                       |   |                                 | 115,288,742 |   |                                            |   | (20,480,065 | )                                    |   |   | 94,808,677 |   |
| Accumulated depreciation   |   |                                 | (68,583,356 | )      |                                            |   | 11,865,951  |                                 |   |   | (56,717,405 | ) |
|                       |   |                                 |        |   |                                            |   |        |                                 |   |   |   |   |
|                       |   | $                                    | 46,705,386  |   |                                            | $      | (8,614,114  | )                                    |   | $ | 38,091,272 |   |

----

| 7. | Transactions with General Partner and Affiliates |
|----|--------------------------------------------------|

|                     |   | 2010   |   |   | 2009     |   |   | 2008   |   |
|--------------------------|--------|--------|--------|--------|----------|--------|--------|--------|--------|
|                     |   | Paid   |   |   | Incurred |   |   | Paid   |   |   | Incurred |   |   | Paid |   |   | Incurred |   |
|                     |   |   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Property management fees |   | $      | 46,047 |   |     | $      | 46,473 |   |   | $ | 45,448 |   |   | $ | 45,502 |   |   | $ | 44,607 |   |   | $ | 45,598 |   |

----

| 8. | Taxable Loss |
|----|--------------|

|                                                                                                |   | 2011   |       |   | 2010   |   |       | 2009   |   |
|-----------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
|                                                                                                |   |   |       |   |   |   |       |   |   |
| Financial statement net income (loss) for the years ended March 30, 2011, 2010 and 2009             |   | $      | 74,872     |   |   | $      | (413,184   | )      |   | $ | (474,101 | ) |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Add (less) net transactions occurring between                                                       |   |   |       |   |   |   |       |   |   |   |   |   |
| January 1, 2008 and March 30, 2008                                                                  |   |   | --         |   |   |   | --         |   |   |   | (125,165 | ) |
| January 1, 2009 and March 30, 2009                                                                  |   |   | --         |   |   |   | (120,348   | )      |   |   | 120,348 |   |
| January 1, 2010 and March 30, 2010                                                                  |   |   | (97,168    | )      |   |   | 97,168     |   |   |   | -- |   |
| January 1, 2011 and March 30, 2011                                                                  |   |   | (318,640   | )      |   |   | --         |   |   |   | -- |   |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Adjusted financial statement net loss for the years ended December 31, 2010, 2009 and 2008          |   |   | (340,936   | )      |   |   | (436,364   | )      |   |   | (478,918 | ) |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Adjustment to Management Fees and Administration Fees pursuant to Internal Revenue Code Section 267 |   |   | 261,370    |   |   |   | 203,312    |   |   |   | 327,562 |   |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Differences arising from equity in loss of investment in local partnerships                         |   |   | (1,312,740 | )      |   |   | (1,923,864 | )      |   |   | (1,850,619 | ) |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Differences in gain on sale of limited partner interests/local partnership properties               |   |   | 4,810,501  |   |   |   | 4,775,725  |   |   |   | -- |   |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Other income from local partnerships                                                                |   |   | (40,044    | )      |   |   | (56,173    | )      |   |   | (36,063 | ) |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Nondeductible flow through expenses                                                                 |   |   | --         |   |   |   | 461        |   |   |   | 39 |   |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Other differences                                                                                   |   |   | 401        |   |   |   | (1,604     | )      |   |   | 1,988 |   |
|                                                                                                |   |   |       |   |   |   |       |   |   |   |   |   |
| Tax return income (loss) for the years ended December 31, 2010, 2009 and 2008                       |   | $      | 3,378,552  |   |   | $      | 2,561,493  |   |   | $ | (2,036,011 | ) |

|                                                   |   | 2010   |        |   | 2009   |   |
|--------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
|                                                   |   |   |        |   |   |   |
| Investment in local partnerships - financial reporting |   | $      | --          |   |   | $      | 516,163 |   |
| Investment in local partnerships - tax                 |   |   | (19,605,129 | )      |   |   | (22,667,175 | ) |
|                                                   |   |   |        |   |   |   |   |   |
|                                                   |   | $      | 19,605,129  |   |   | $      | 23,183,338 |   |

----

| 9. | Fair Value of Financial Instruments |
|----|-------------------------------------|

----

----

|                 | Served in present  |                         |
|----------------------|--------------------|------------------------------|
| Name                 | capacity since1    | Position held                |
|                 |               |                         |
| Richard Paul Richman | September 21, 1989 | Director                     |
| David A. Salzman     | February 1, 2001   | President                    |
| James Hussey         | January 20, 2009   | Vice President and Treasurer |
| Gina K. Dodge        | September 21, 1989 | Secretary                    |
| Charles L. Krafnick  | February 1, 2001   | Assistant Treasurer          |

----

----

----

----

|               |   | 2011   |   |   | 2010   |   |
|--------------------|--------|--------|--------|--------|--------|--------|
|               |   |   |   |   |   |   |
| Audit Fees         |   | $      | 40,500 |   |   | $      | 40,500 |   |
| Audit-Related Fees |   |   | --     |   |   |   | -- |   |
| Tax Fees           |   | $      | 14,923 |   |   | $      | 13,500 |   |
| All Other Fees     |   |   | --     |   |   |   | -- |   |

----

|   |                                                                                                                                                    |   | Incorporated by                                                                            |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|
|   | Exhibit                                                                                                                                                 |   | Reference to                                       |
| 4.1    | Amended and Restated Agreement of Limited Partnership of Registrant                                                                                     |   | Exhibit A to Registrant’s Prospectus filed February 15, 1990(File No. 33-31390)      |
| 10.1   | April Gardens Apartments II Limited Partnership (A Delaware Limited Partnership) Amended and Restated Agreement of Limited Partnership                  |   | Exhibit 10.1 to Form 10-Q Report forthe period ended December 30, 1990(File No. 33-31390)  |
| 10.2   | Ashland Park Apartments, L.P. Second Amended and Restated Agreement of Limited Partnership                                                              |   | Exhibit 10.2 to Form 10-K Report for the year ended March 30, 1991(File No. 33-31390)      |
| 10.3   | Auburn Family, L.P. Amended and Restated Limited Partnership Agreement and Certificate of Limited Partnership                                           |   | Exhibit 10.1 to Form 10-Q Report forthe period ended December 30, 1991(File No. 0-19217)   |
| 10.4   | Amended No. 2 to the Batesville Family, L.P. Amended and Restated Agreement of Limited Partnership                                                      |   | Exhibit 10.2 to Form 10-Q Report forthe period ended December 30, 1990(File No. 33-31390)  |
| 10.5   | Batesville Family, L.P. Amendment No. 3 to the Amended and Restated Agreement of Limited Partnership                                                    |   | Exhibit 10.2 to Form 10-Q Report forthe period ended December 30, 1991(File No. 0-19217)   |
| 10.6   | Bay Springs Elderly, L.P. (A Mississippi Limited Partnership) Amended and Restated Limited Partnership Agreement and Certificate of Limited Partnership |   | Exhibit 10.1 to Form 10-Q Report forthe period ended September 29, 1991(File No. 0-19217)  |
| 10.7   | Brisas del Mar Apartments Limited Partnership (A Delaware Limited Partnership) Amended and Restated Agreement of Limited Partnership                    |   | Exhibit 10.3 to Form 10-Q Report for the period ended December 30, 1990(File No. 33-31390) |
| 10.8   | Amendment No. 1 to the Bruce Housing Associates, L.P. Amended and Restated Agreement of Limited Partnership                                             |   | Exhibit 10.8 to Form 10-K Reportfor the year ended March 30, 1992(File No. 33-31390)       |

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|   |                                                                                                                                                    |   | Incorporated by                                                                            |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|
|   | Exhibit                                                                                                                                                 |   | Reference to                                       |
| 10.9   | Amendment No. 2 to the Bruce Housing Associates, L.P. Amended and Restated Agreement of Limited Partnership                                             |   | Exhibit 10.4 to Form 10-Q Report forthe period ended December 30, 1990(File No. 33-31390)  |
| 10.10  | Bruce Housing Associates, L.P. Amendment No. 3 to the Amended and Restated Agreement of Limited Partnership                                             |   | Exhibit 10.3 to Form 10-Q Report forthe period ended December 30, 1991(File No. 0-19217)   |
| 10.11  | Carrington Limited Dividend Housing Association Limited Partnership Amended and Restated Agreement of Limited Partnership                               |   | Exhibit 10.1 to Form 10-Q Report forthe period ended September 29, 1990(File No. 33-31390) |
| 10.12  | Carrington Limited Dividend Housing Association Limited Partnership Second Amended and Restated Agreement of Limited Partnership                        |   | Exhibit 10.2 to Form 10-Q Report forthe period ended September 29, 1990(File No. 33-31390) |
| 10.13  | Carrington Limited Dividend Housing Association Limited Partnership Amendment No. 1 to the Second Amended and Restated Agreement of Limited Partnership |   | Exhibit 10.5 to Form 10-Q Report forthe period ended December 30, 1990(File No. 33-31390)  |
| 10.14  | Chestnut Park Associates, L.P. Amended and Restated Agreement of Limited Partnership                                                                    |   | Exhibit 10.3 to Form 10-Q Report forthe period ended September 29, 1990(File No. 33-31390) |
| 10.15  | Chowan Senior Manor Associates Limited Partnership Amended and Restated Agreement of Limited Partnership                                                |   | Exhibit 10.15 to Form 10-K Reportfor the year ended March 30, 1992(File No. 33-31390)      |
| 10.16  | Christian Street Commons Associates Amended and Restated Limited Partnership Agreement and Certificate of Limited Partnership                           |   | Exhibit 10.16 to Form 10-K Reportfor the year ended March 30, 1992(File No. 33-31390)      |
| 10.17  | Country View Apartments Second Amended and Restated Limited Partnership Agreement and Certificate of Limited Partnership                                |   | Exhibit 10.17 to Form 10-K Reportfor the year ended March 30, 1992(File No. 33-31390)      |
| 10.18  | Desarrollos de Belen Limited Partnership Amended and Restated Agreement of Limited Partnership                                                          |   | Exhibit 10.18 to Form 10-K Reportfor the year ended March 30, 1992(File No. 33-31390)      |
| 10.19  | Desarrollos de Emaus Limited Partnership Amended and Restated Agreement of Limited Partnership                                                          |   | Exhibit 10.19 to Form 10-K Reportfor the year ended March 30, 1992(File No. 33-31390)      |
| 10.20  | Ellinwood Heights Apartments, L.P. Amended and Restated Agreement of Limited Partnership                                                                |   | Exhibit 10.1 to Form 10-Q Report forthe period ended June 29, 1991(File No. 0-19217)       |
| 10.21  | Fulton Street Houses Limited Partnership Amended and Restated Agreement of Limited Partnership                                                          |   | Exhibit 10.21 to Form 10-K Reportfor the year ended March 30, 1992(File No. 33-31390)      |

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|   |                                                                                                                      |   | Incorporated by                                                                           |
|--------|---------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------|
|   | Exhibit                                                                                                                   |   | Reference to                                      |
| 10.22  | Hayes Run Limited Partnership Amended and Restated Agreement of Limited Partnership                                       |   | Exhibit 10.2 to Form 10-Q Report forthe period ended June 29, 1991(File No. 0-19217)      |
| 10.23  | Howard L. Miller Sallisaw Apartments II, L.P. Third Amended and Restated Agreement and Certificate of Limited Partnership |   | Exhibit 10.10 to Form 10-K Reportfor the year ended March 30, 1991(File No. 33-31390)     |
| 10.24  | Hurlock Meadow Limited Partnership Amended and Restated Limited Partnership Agreement                                     |   | Exhibit 10.24 to Form 10-K Reportfor the year ended March 30, 1992(File No. 33-31390)     |
| 10.25  | Amendment No. 1 to the Ivy Family, L.P. Amended and Restated Agreement of Limited Partnership                             |   | Exhibit 10.6 to Form 10-Q Report forthe period ended December 30, 1990(File No. 33-31390) |
| 10.26  | Ivy Family, L.P. Amendment No. 3 to the Amended and Restated Agreement of Limited Partnership                             |   | Exhibit 10.4 to Form 10-Q Report forthe period ended December 30, 1991(File No. 0-19217)  |
| 10.27  | Justin Associates Amended and Restated Agreement and Certificate of Limited Partnership                                   |   | Exhibit 10.7 to Form 10-Q Report forthe period ended December 30, 1990(File No. 33-31390) |
| 10.28  | LaBelle Commons, Ltd. Amended and Restated Agreement of Limited Partnership                                               |   | Exhibit 10.13 to Form 10-K Reportfor the year ended March 30, 1991(File No. 33-31390)     |
| 10.29  | LaBelle Commons, Ltd. Amendment No. 1 to Amended and Restated Agreement of Limited Partnership                            |   | Exhibit 10.29 to Form 10-K Reportfor the year ended March 30, 1992(File No. 33-31390)     |
| 10.30  | Amendment No. 2 to the Lawrence Road Properties, Ltd. Amended and Restated Agreement of Limited Partnership               |   | Exhibit 10.8 to Form 10-Q Report forthe period ended December 30, 1990(File No. 33-31390) |
| 10.31  | Lawrence Road Properties, Ltd. Amendment No. 3 to the Amended and Restated Agreement of Limited Partnership               |   | Exhibit 10.5 to Form 10-Q Report forthe period ended December 30, 1991(File No. 0-19217)  |
| 10.32  | Loma Del Norte Limited Partnership Amended and Restated Limited Partnership Agreement                                     |   | Exhibit 10.2 to Form 10-Q Report forthe period ended September 29, 1991(File No. 0-19217) |
| 10.33  | Long Reach Associates Limited Partnership Sixth Amended and Restated Agreement of Limited Partnership                     |   | Exhibit 10.15 to Form 10-K Reportfor the year ended March 30, 1991(File No. 33-31390)     |
| 10.34  | Mirador del Toa Limited Partnership Amended and Restated Agreement of Limited Partnership                                 |   | Exhibit 10.16 to Form 10-K Reportfor the year ended March 30, 1991(File No. 33-31390)     |

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|   |                                                                                                                                                   |   | Incorporated by                                                                            |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|
|   | Exhibit                                                                                                                                                |   | Reference to                                       |
| 10.35  | Amendment No. 1 to the Mirador del Toa Limited Partnership Amended and Restated Agreement of Limited Partnership                                       |   | Exhibit 10.17 to Form 10-K Reportfor the year ended March 30, 1991(File No. 33-31390)      |
| 10.36  | Moore Haven Commons, Ltd. Amended and Restated Agreement of Limited Partnership                                                                        |   | Exhibit 10.9 to Form 10-Q Report forthe period ended December 30, 1990(File No. 33-31390)  |
| 10.37  | NP-89 Limited Dividend Housing Association Limited Partnership Second Restated and Amended Agreement of Limited Partnership                            |   | Exhibit 10.3 to Form 10-Q Report forthe period ended June 29, 1991(File No. 0-19217)       |
| 10.38  | Nash Hill Associates, Limited Partnership Amended and Restated Agreement of Limited Partnership                                                        |   | Exhibit 10.37 to Form 10-K Reportfor the year ended March 30, 1992(File No. 33-31390)      |
| 10.39  | North Calhoun City, L.P. (A Mississippi Limited Partnership) Amended and Restated Limited Partnership Agreement and Certificate of Limited Partnership |   | Exhibit 10.3 to Form 10-Q Report forthe period ended September 29, 1991(File No. 0-19217)  |
| 10.40  | Orange City Plaza, Limited Partnership Amended and Restated Partnership Agreement                                                                      |   | Exhibit 10.40 to Form 10-K Reportfor the year ended March 30, 1992(File No. 33-31390)      |
| 10.41  | Puerta del Mar Limited Partnership (A Delaware Limited Partnership) Amended and Restated Agreement of Limited Partnership                              |   | Exhibit 10.10 to Form 10-Q Report forthe period ended December 30, 1990(File No. 33-31390) |
| 10.42  | Amendment No. 2 to the Purvis Heights Properties, L.P. Amended and Restated Agreement of Limited Partnership                                           |   | Exhibit 10.11 to Form 10-Q Report forthe period ended December 30, 1990(File No. 33-31390) |
| 10.43  | Purvis Heights Properties, L.P. Amendment No. 3 to the Amended and Restated Agreement of Limited Partnership                                           |   | Exhibit 10.6 to Form 10-Q Report forthe period ended December 30, 1991(File No. 0-19217)   |
| 10.44  | Queen Lane Investors Amendment No. 1 to Amended and Restated Agreement and Certificate of Limited Partnership                                          |   | Exhibit 10.12 to Form 10-Q Report forthe period ended December 30, 1990(File No. 33-31390) |
| 10.45  | Somerset Manor, Ltd. Amended and Restated Agreement and Certificate of Limited Partnership                                                             |   | Exhibit 10.13 to Form 10-Q Report forthe period ended December 30, 1990(File No. 33-31390) |
| 10.46  | Sugar Cane Villas, Ltd. Amended and Restated Agreement of Limited Partnership                                                                          |   | Exhibit 10.23 to Form 10-K Reportfor the year ended March 30, 1991(File No. 33-31390)      |
| 10.47  | Summerfield Apartments Limited Partnership Amended and Restated Agreement of Limited Partnership                                                       |   | Exhibit 10.47 to Form 10-K Reportfor the year ended March 30, 1992(File No. 33-31390)      |

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|   |                                                                                                                                                    |   | Incorporated by                                                                            |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|
|   | Exhibit                                                                                                                                                 |   | Reference to                                       |
| 10.48  | Amendment No.1 to the Summerfield Apartments Limited Partnership Amended and Restated Agreement of Limited Partnership                                  |   | Exhibit 10.48 to Form 10-K Reportfor the year ended March 30, 1999(File No. 0-19217)       |
| 10.49  | Sydney Engel Associates Second Amended and Restated Agreement of Limited Partnership                                                                    |   | Exhibit 10.4 to Form 10-Q Report forthe period ended September 29, 1990(File No. 33-31390) |
| 10.50  | First Amendment to Second Amended and Restated Agreement of Limited Partnership of Sydney Engel Associates                                              |   | Exhibit 10.49 to Form 10-K Reportfor the year ended March 30, 1997(File No. 0-19217)       |
| 10.51  | Second Amendment to Second Amended and Restated Agreement of Limited Partnership of Sydney Engel Associates L.P.                                        |   | Exhibit 10.50 to Form 10-K Reportfor the year ended March 30, 1997(File No. 0-19217)       |
| 10.52  | Third Amendment to Second Amended and Restated Agreement of Limited Partnership of Sydney Engel Associates L.P.                                         |   | Exhibit 10.51 to Form 10-K Reportfor the year ended March 30, 1997(File No. 0-19217)       |
| 10.53  | Fourth Amendment to Second Amended and Restated Agreement of Limited Partnership of Sydney Engel Associates L.P.                                        |   | Exhibit 10.52 to Form 10-K Reportfor the year ended March 30, 1997(File No. 0-19217)       |
| 10.54  | Union Valley Associates Limited Partnership Amended and Restated Agreement and Certificate of Limited Partnership                                       |   | Exhibit 10.14 to Form 10-Q Report forthe period ended December 30, 1990(File No. 33-31390) |
| 10.55  | Walnut Grove Family, L.P. (A Mississippi Limited Partnership) Amended and Restated Limited Partnership Agreement and Certificate of Limited Partnership |   | Exhibit 10.4 to Form 10-Q Report forthe period ended September 29, 1991(File No. 0-19217)  |
| 10.56  | Waynesboro Apartments Limited Partnership Amended and Restated Agreement and Certificate of Limited Partnership                                         |   | Exhibit 10.15 to Form 10-Q Report forthe period ended December 30, 1990(File No. 33-31390) |
| 10.57  | West Calhoun City, L.P. (A Mississippi Limited Partnership) Amended and Restated Limited Partnership Agreement and Certificate of Limited Partnership   |   | Exhibit 10.5 to Form 10-Q Report forthe period ended September 29, 1991(File No. 0-19217)  |
| 10.58  | Westminster Apartments Limited Partnership Second Amended and Restated Agreement of Limited Partnership                                                 |   | Exhibit 10.53 to Form 10-K Reportfor the year ended March 30, 1992(File No. 33-31390)      |
| *31.1  | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer                                                                                       |   |                                                                                       |
| *31.2  | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.                                                                                      |   |                                                                                       |
| *32.1  | Section 1350 Certification of Chief Executive Officer.                                                                                                  |   |                                                                                       |

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|   |                                                                                                                                              |   | Incorporated by                                                                      |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|
|   | Exhibit                                                                                                                                           |   | Reference to                                 |
| *32.2  | Section 1350 Certification of Chief FinancialOfficer.                                                                                             |   |                                                                                 |
| 99.1   | Pages 20 through 31 of Prospectus dated February 7, 1990 filed pursuant to Rule 424(b)(3) under Securities Act of 1933                            |   | Exhibit 99.1 to Form 10-K Reportfor the year ended March 30, 2009(File No. 0-19217)  |
| 99.2   | Pages 44 through 71 of Prospectus dated February 7, 1990 filed pursuant to Rule 424(b)(3) under Securities Act of 1933                            |   | Exhibit 99.2 to Form 10-K Reportfor the year ended March 30, 2009(File No. 0-19217)  |
| 99.3   | Pages 78 through 80 of Prospectus dated February 7, 1990 filed pursuant to Rule 424(b)(3) under Securities Act of 1933                            |   | Exhibit 99.3 to Form 10-K Reportfor the year ended March 30, 2009(File No. 0-19217)  |
| 99.4   | Pages 14 through 19 of Prospectus dated February 7, 1990 filed pursuant to Rule 424(b)(3) under Securities Act of 1933                            |   | Exhibit 99.4 to Form 10-K Reportfor the year ended March 30, 2009(File No. 0-19217)  |
| 99.5   | Supplement No. 1 dated June 6, 1990 to Prospectus dated February 7, 1990 filed pursuant to Rule 424(b)(3) under Securities Act of 1933            |   | Exhibit 99.5 to Form 10-K Reportfor the year ended March 30, 2009(File No. 0-19217)  |
| 99.6   | Supplement No. 2 dated November 21, 1990 to Prospectus dated February 7, 1990 filed pursuant to Rule 424(b)(3) under Securities Act of 1933       |   | Exhibit 99.6 to Form 10-K Reportfor the year ended March 30, 2009(File No. 0-19217)  |
| 99.7   | Supplement No. 3 dated December 20, 1990 to Prospectus dated February 7, 1990 filed pursuant to Rule 424(b)(3) under Securities Act of 1933       |   | Exhibit 99.7 to Form 10-K Reportfor the year ended March 30, 2009(File No. 0-19217)  |
| 99.8   | Supplement No. 4 dated October 30, 1991 to Prospectus dated February 7, 1990 filed pursuant to Rule 424(b)(3) under Securities Act of 1933        |   | Exhibit 99.8 to Form 10-K Reportfor the year ended March 30, 2009(File No. 0-19217)  |
| 99.9   | Supplement No. 5 dated December 26, 1991 to Prospectus dated February 7, 1990 filed pursuant to Rule 424(b)(3) under Securities Act of 1933       |   | Exhibit 99.9 to Form 10-K Reportfor the year ended March 30, 2009(File No. 0-19217)  |
| 99.10  | Supplement No. 6 dated January 15, 1992 to Prospectus dated February 7, 1990 filed pursuant to Rule 424(b)(3) under Securities Act of 1933        |   | Exhibit 99.10 to Form 10-K Reportfor the year ended March 30, 2009(File No. 0-19217) |
| 99.11  | Report of Independent Registered Public Accounting Firm of Carrington L.D.H.A. Limited Partnership as of and for the year ended December 31, 2004 |   | Exhibit 99.9 to Form 10-K Reportfor the year ended March 30, 2005(File No. 0-19217)  |

----

|   |                                                                                                                                                                     |   | Incorporated by                                                                      |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------|
|   | Exhibit                                                                                                                                                                  |   | Reference to                                 |
| 99.12  | Independent Auditor’s Report of Ellinwood Heights Apartments, L.P. as of and for the years ended December 31, 2004 and 2003                                        |   | Exhibit 99.10 to Form 10-K Reportfor the year ended March 30, 2005(File No. 0-19217) |
| 99.13  | Independent Auditors’ Report of NP-89 Limited Dividend Housing Association Limited Partnership as of and for the year ended December 31, 2004                      |   | Exhibit 99.11 to Form 10-K Reportfor the year ended March 30, 2005(File No. 0-19217) |
| 99.14  | Audited Financial Statements of NP-89 Limited Dividend Housing Association Limited Partnership as of and for the year ended December 31, 2005                            |   | Exhibit 99.12 to Form 10-K Reportfor the year ended March 30, 2006(File No. 0-19217) |
| 99.15  | Report of Independent Registered Public Accounting Firm of NP-89 Limited Dividend Housing Association Limited Partnership as of and for the year ended December 31, 2005 |   | Exhibit 99.13 to Form 10-K Reportfor the year ended March 30, 2006(File No. 0-19217) |
| 99.16  | Audited Financial Statements of NP-89 Limited Dividend Housing Association Limited Partnership as of and for the year ended December 31, 2006                            |   | Exhibit 99.14 to Form 10-K Reportfor the year ended March 30, 2007(File No. 0-19217) |
| 99.17  | Report of Independent Registered Public Accounting Firm of NP-89 Limited Dividend Housing Association Limited Partnership as of and for the year ended December 31, 2007 |   | Exhibit 99.15 to Form 10-K Reportfor the year ended March 30, 2008(File No. 0-19217) |
| 99.18  | Deferred Fee Agreement between Registrant, the General Partner and ML Fund Administrators Inc.                                                                           |   | Exhibit 99.18 to Form 10-K Reportfor the year ended March 30, 2009(File No. 0-19217) |
| 99.19  | Report of Independent Registered Public Accounting Firm of NP-89 Limited Dividend Housing Association Limited Partnership as of and for the year ended December 31, 2008 |   | Exhibit 99.19 to Form 10-K Reportfor the year ended March 30, 2009(File No. 0-19217) |
| 99.20  | Report of Independent Registered Public Accounting Firm of NP-89 Limited Dividend Housing Association Limited Partnership as of and for the year ended December 31, 2009 |   | Exhibit 99.20 to Form 10-K Reportfor the year ended March 30, 2010(File No. 0-19217) |
|   |                                                                                                                                                                     |   |                                                                                 |

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|                            | AMERICAN TAX CREDIT PROPERTIES III L.P.                                                                                                                                                                          |
|---------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                            | (a Delaware limited partnership)                                                                                                                                                                                 |
|                            |                                                                                                                                                                                                             |
|                            | By:   Richman Tax Credit Properties III L.P.,                                                                                                                                                     |
|                            |          General Partner                                                                                                                                                 |
|                            |                                                                                                                                                                                                             |
|                            | By:   Richman Housing Credits Inc.,                                                                                                                                                               |
|                            |          general partner                                                                                                                                            |
|                            |                                                                                                                                                                                                             |
| Dated:  June 28, 2011 | /s/David Salzman                                           |
|                            | David Salzman                                                                                                                                                                                                    |
|                            | Chief Executive Officer                                                                                                                                                                                          |
|                            |                                                                                                                                                                                                             |
|                            |                                                                                                                                                                                                             |
| Dated:  June 28, 2011 | /s/James Hussey                                  |
|                            | James Hussey                                                                                                                                                                                                     |
|                            | Chief Financial Officer                                                                                                                                                                                          |

| Signature                                                                                                                                                                                                                                                              |   | Title                                             | Date          |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------|---------------|
|                                                                                                                                                                                                                                                                   |   |                                              |          |
|                                                                                                                                                                                                                                                                   |   |                                              |          |
| /s/David Salzman                                               |   | Chief Executive Officer of  the general | June 28, 2011 |
| (David Salzman)                                                                                                                                                                                                                                                        |   | partner of the General Partner                    |          |
|                                                                                                                                                                                                                                                                   |   |                                              |          |
| /s/James Hussey                                           |   | Chief Financial Officer of the general            | June 28, 2011 |
| (James Hussey)                                                                                                                                                                                                                                                         |   | partner of the General Partner                    |          |
|                                                                                                                                                                                                                                                                   |   |                                              |          |
| /s/Richard Paul Richman                                                                                               |   | Director of the general partner of the            | June 28, 2011 |
| (Richard Paul Richman)                                                                                                                                                                                                                                                 |   | General Partner                                   |          |

----