UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended March 31, ~~2010~~ 2011 or

o ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 033-14852-01

AMERICAN AFFORDABLE HOUSING II LIMITED PARTNERSHIP

(Exact name of registrant as specified in its charter)

Massachusetts		04-2992309
(State or other jurisdiction		(I.R.S. Employer
of incorporation or organization)		Identification No.)

One Boston Place, Suite 2100, Boston, Massachusetts		02108
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code (617) 624-8900

Securities registered pursuant to Section 12(b) of the Act:

Title of each class - Name of each exchange on which registered

None

Securities registered pursuant to Section 12(g) of the Act:

Title of class

~~None~~Beneficial Assignee Certificates

Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o ¨ No x

Indicate by check mark if the Registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes o ¨ No x

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o ¨ No o ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (check one):

Large accelerated filer o¨ Accelerated filer o¨ Non-accelerated filer o¨ Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o ¨ No x

DOCUMENTS INCORPORATED BY REFERENCE

The following documents of the ~~Registrant~~Partnership are incorporated by reference:

Form 10-K
Parts		Documents
Parts III and IV		Prospectus

None.

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AMERICAN AFFORDABLE HOUSING II LIMITED PARTNERSHIP

(a Massachusetts limited partnership)

FORM 10-K ANNUAL REPORT FOR THE YEAR ENDED

March 31, ~~2010~~2011

TABLE OF CONTENTS

PART I
Item 1.	Business
Item 1A.	Risk Factors
Item 1B.	Unresolved Staff Comments
Item 2.	Properties
Item 3.	Legal Proceedings
Item 4.	(Removed and Reserved)
PART II
Item 5.	Market for the Fund’s Limited Partnership Interests and Related Partnership Matters and Issuer Purchases of Partnership Interests
Item 6.	Selected Financial Data
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 7a.	Quantitative and Qualitative Disclosure About Market Risk
Item 8.	Financial Statements and Supplementary Data
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9a.	Controls and Procedures
PART III
Item 10.	Directors, Executive Officers, and Corporate Governance
Item 11.	Executive Compensation
Item 12.	Security Ownership of Certain Beneficial Owners and Management
Item 13.	Certain Relationships and Related Transactions, and Director Independence
Item 14.	Principal Accountant Fees and Services
PART IV
Item 15.	Exhibits and Financial Statement Schedules
	Signatures

PART I

Item 1.	Business
Item 1A.	Risk Factors
Item 1B.	Unresolved Staff Comments
Item 2.	Properties
Item 3.	Legal Proceedings
Item 4.	(Removed and Reserved)

PART II

Item 5.	Market for the Fund's Limited Partnership Interests and Related Partnership Matters and Issuer Purchases of Partnership Interests
Item 6.	Selected Financial Data
Item 7.	Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 7a.	Quantitative and Qualitative Disclosure About Market Risk
Item 8.	Financial Statements and Supplementary Data
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Item 9a.	Controls and Procedures

PART III

Item 10.	Directors, Executive Officers, and Corporate Governance
Item 11.	Executive Compensation
Item 12.	Security Ownership of Certain Beneficial Owners and Management
Item 13.	Certain Relationships and Related Transactions, and Director Independence
Item 14.	Principal Accounting Fees and Services

PART IV

Item 15.	Exhibits and Financial Statement Schedules

	Signatures

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PART I

Item 1.

Business

American Affordable Housing II Limited Partnership (the “"Partnership”") is a limited partnership which was formed under the laws of the Commonwealth of Massachusetts on May 13, 1987. Effective as of June 1, 2001 there was a restructuring and, as a result, the Partnership’s general partner was reorganized as follows. The general partner of the Partnership continues to be Boston Capital Associates Limited Partnership, a Massachusetts limited partnership. The general partner of the general partner is BCA Associates Limited Partnership; a Massachusetts limited partnership, whose sole general partner is C&M Management, Inc., a Massachusetts corporation. John P. Manning is the principal of Boston Capital Partners, Inc. and C&M Management, Inc.

The Partnership was formed to acquire limited partner interests in limited partnerships (the" “Operating Partnerships”"), each of which was to own and operate an apartment complex for low and moderate income tenants. Each apartment complex qualified for the low-income housing tax credit under Section 42 of the Internal Revenue Code of 1986, as amended, (the “"Code”"), and some apartment complexes also qualified for the historic rehabilitation tax credit under Section 47 of the Code. Section 236(f)(ii) of the National Housing Act, as amended, and Section 101 of the Housing and Urban Development Act of 1965, as amended, each provide for the making by HUD of rent supplement payments to low income tenants in properties which receive other forms of federal assistance such as tax credits. The payments for each tenant, which are made directly to the owner of their property, generally are in such amounts as to enable the tenant to pay rent equal to 30% of the adjusted family income. Some of the apartment complexes in which the Partnership has invested are receiving such rent supplements from HUD.

HUD has been in the process of converting rent supplement assistance to assistance paid not to the owner of the apartment complex, but directly to the individuals. At this time, the Partnership is unable to predict whether Congress will continue rent supplement programs payable directly to owners of the apartment complexes.

The investment objectives of the Partnership are (i) to provide investors with tax benefits during the first ten years of operations in the form of (a) low-income housing and historic rehabilitation tax credits which may be applied against the investors’' federal income tax liability arising from, in the case of individuals, active and portfolio income on a limited basis from passive income, and in the case of corporations, against Federal income tax liability from active and passive income and, as to certain corporations, against all income and (b) passive losses which may be used to reduce an Investor’'s income in the same manner, (ii) to preserve and protect the capital of the Partnership, (iii) to provide long-term capital appreciation through increases in the value of the Partnership’'s investments, and (iv) to provide cash distributions from capital transaction proceeds. The general partner is currently of the belief that the Partnership’'s investment objectives will be met. Current distributions are not an investment objective of the Partnership.

The offering of Class A Limited Partner interests (the “"Units”") in the Partnership (the “"Public Offering”") began on February 2, 1988 and was concluded on September 21, 1988. Investors purchasing 26,501 Units contributed $26,501,000 to the Partnership. The Partnership held interests in 107 Operating Partnerships at March 31, ~~2010~~2011. See Item 2.

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Plan of Liquidation

On January 10, 2008, our General Partner recommended that the Unit holders approve a plan of liquidation and dissolution for the Partnership, or the “Plan.” The Plan was approved by the Unit holders on April 1, 2008, and was adopted by the General Partner on April 1, 2008. Pursuant to the Plan, the General Partner may, without further action by the Unit holders:

liquidate the assets and wind up the business of the Partnership;

make liquidating distributions in cancellation of the Unit;

· dissolve the Partnership after the sale of all of the Partnership’'s assets; and

take, or cause the Partnership to take, such other acts and deeds and shall do, or cause the Partnership to do, such other things, as are necessary or appropriate in connection with the dissolution, winding up and liquidation of the Partnership, the termination of the responsibilities and liabilities of the Partnership under applicable law, and the termination of the existence of the Partnership.

Since the approval of the Plan by the Unit holders, we have continued to seek to sell the assets of the Partnership and use the sales proceeds and/or other Partnership funds to pay all expenses in connection with such sales, pay or make provision for payment of all Partnership obligations and liabilities, including accrued fees and unpaid loans to the General Partner, and distribute the remaining assets as set forth in the Partnership Agreement. We ~~expect~~expected to complete the sale of the apartment complexes approximately three to four years after the Unit holders’' approval of the Plan, which was April 1, 2008. However, ~~because of numerous uncertainties,~~ the liquidation ~~may~~has ~~take~~taken longer ~~or shorter~~ than expected, and the final liquidating distribution ~~may~~will occur months after all of the apartment complexes have been sold.

For additional information regarding the sale of Partnership assets, see "Management's Discussion and Analysis of Financial Condition and Results of Operations " in this Annual Report on Form 10-K.

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Item 1A.

Risk Factors

As used in this Item 1A, references to “we, “us” and “our” mean the Partnership.

An investment in our Units and our investments in Operating Partnerships are subject to risks. These risks may impact the tax benefits of an investment in our Units, and the amount of proceeds available for distribution to our limited partners, if any, on liquidation of our investments.

In addition to the other information set forth in this report, you should carefully consider the following factors which could materially affect our business, financial condition or results of operations. The risks described below are not the only risks we face. Additional factors not presently known to us or that we currently deem to be immaterial also may materially adversely affect our business operations.

The ability of limited partners to claim tax losses from their investment in us is limited.

The IRS may audit us or an Operating Partnership and challenge the tax treatment of tax items. The amount of Low Income Housing Tax Credits and tax losses allocable to the investors could be reduced if the IRS were successful in such a challenge. The alternative minimum tax could reduce tax benefits from an investment in our Units. Changes in tax laws could also impact the tax benefits from an investment in our Units and/or the value of the Operating Partnerships. Until the Operating Partnerships have completed a mandatory fifteen year Low Income Housing Tax Credit compliance period, investors are at risk for potential recapture of Low Income Housing Tax Credits that have already been claimed.

The Low Income Housing Tax Credits rules are extremely complicated and noncompliance with these rules may have adverse consequences for Unit holders.

Noncompliance with applicable tax regulations may result in the loss of future Low Income Housing Tax Credits and the fractional recapture of Low Income Housing Tax Credits already taken. In most cases the annual amount of Low Income Housing Tax Credits that an individual can use is limited to the tax liability due on the person’s last $25,000 of taxable income. The Operating Partnerships may be sold at a price which would not result in our realizing cash distributions or proceeds from the transaction. Accordingly, we may be unable to distribute any cash to our investors. Low Income Housing Tax Credits may be the only benefit from an investment in our Units.

Poor performance of one housing complex, or the real estate market generally, could impair our ability to satisfy our investment objectives.

Each housing complex is subject to mortgage indebtedness. If an Operating Partnership failed to pay its mortgage, it could lose its housing complex in foreclosure. If foreclosure were to occur during the first 15 years of the existence of the Partnership, the loss of any remaining future Low Income Housing Tax Credits, a fractional recapture of previously claimed Low Income Housing Tax Credits, and a loss of our investment in the housing complex would occur. To the extent the Operating Partnerships receive government financing or operating subsidies, they may be subject to one or more of the following risks:

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· difficulties in obtaining rent increases;

· limitations on cash distributions;

· limitations on sales or refinancing of Operating Partnerships;

· limitations on transfers of interests in Operating Partnerships;

· limitations on removal of the local general partner;

· limitations on subsidy programs; and

· possible changes in applicable regulations.

The value of real estate is subject to risks from fluctuating economic conditions, including employment rates, inflation, tax, environmental, land use and zoning policies, supply and demand of similar properties, and neighborhood conditions, among others.

No trading market for the Units exists or is expected to develop.

There is currently no active trading market for the Units. Accordingly, limited partners may be unable to sell their Units or may have to sell Units at a discount. Limited partners should consider their Units to be a long-term investment.

Investors may realize taxable gain on sale or disposition of Units.

Upon the sale or other taxable disposition of Units, investors will realize taxable income to the extent that their allocable share of the non-recourse mortgage indebtedness on the apartment complexes, together with the money they receive from the sale of the Units, is greater than the original cost of their Units. This realized taxable income is reduced to the extent that investors have suspended passive losses or credits. It is possible that the sale of Units may not generate enough cash to pay the tax obligations arising from the sale.

Investors may have tax liability in excess of cash.

Investors eventually may be allocated profits for tax purposes which exceed any cash distributed to them. For this tax liability, the investor will have to pay federal income tax without a corresponding cash distribution. Similarly, in the event of a sale or foreclosure of an apartment complex or a sale of Units, an investor may be allocated taxable income, resulting in tax liability, in excess of any cash distributed to him or her as a result of such event.

Investors may not receive cash if apartment complexes are sold.

There is no assurance that investors will receive any cash distributions from the sale or refinancing of an apartment complex. The price at which an apartment complex is sold may not be large enough to pay the mortgage and other expenses which must be paid at such time. Even if there are net cash proceeds from a sale, expenses such as accrued Fund management fees and unpaid loans will be deducted pursuant to Section 4.02(a) of the Partnership Agreement. If any of these events happen, investors will not get all of their investment back, and the only benefit from an investment will be the tax credits received.

The sale or refinancing of the apartment complexes is dependent upon the following material factors:

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The necessity of obtaining the consent of the operating general partners;

The necessity of obtaining the approval of any governmental agency(ies) providing government assistance to the apartment complex; and

The uncertainty of the market.

Any sale may occur well after the fifteen-year federal housing tax credit compliance period.

We have insufficient sources of cash to pay our existing liabilities.

We currently do not have sufficient cash resources to satisfy our financial liabilities. Furthermore, we do not anticipate that we will have sufficient available cash to pay our future financial liabilities. Substantially all of our existing liabilities are payable to our general partner and its affiliates. Though the amounts payable to the general partner and its affiliates are contractually currently payable, we do not believe that the general partner or its affiliates will demand immediate payment of these contractual obligations in the near term; however, there can be no assurance that this will be the case. We would be materially adversely affected if the general partner or its affiliates demanded payment in the near term of our existing contractual liabilities or suspended the provision of services to us because of its inability to satisfy these obligations. All monies currently deposited, or that will be deposited in the future, into the Partnership’'s working capital reserves are intended to be utilized to pay our existing and future liabilities.

Item 1B.

Unresolved Staff Comments

Not applicable.

Item 2.

Properties

As of its fiscal year ~~ending~~ended March 31, ~~2010~~2011, the Partnership held limited partnership interests in the Operating Partnerships described below. In each instance the apartment complexes owned by the applicable Operating Partnerships are eligible for the federal housing tax credit. Initial occupancy of a unit in each apartment complex which complied with the minimum set-aside test (i.e., initial occupancy by tenants with incomes equal to no more than a designated percentage of area median income) and the rent restriction test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to as “"Qualified Occupancy.” " Each of the Operating Partnerships and each of the respective apartment complexes are described more fully in the Prospectus or applicable report on Form 8-K. The general partner believes that there is adequate casualty insurance on the properties.

Please refer to Item 7. “"Management’'s Discussion and Analysis of Financial Condition and Results of Operations”" for a more detailed discussion of operational difficulties experienced by some of the Operating Partnerships.

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American Affordable Housing II Limited Partnership

PROPERTY PROFILES AS OF MARCH 31, ~~2010~~2011

Property Name	Location	Units	~~Mortgage Balance As of 12/31/09~~	Mortgage Balance As of 12/31/10		~~Completion Date~~	~~Qualified~~Completion ~~Occupancy 3/31/10~~Date		~~Capital Contributed~~		Qualified Occupancy 3/31/11			Capital Contributed
Boardman Lake II Apartments	Travers City, MI	32	$	~~936,721~~$	930,647	~~5/89~~	~~100~~	%5/89	$	~~202,700~~		100	%	$	202,700
Center Way Apartments	Shelbyville, TN	20	583,958			7/88	100	%	136,620
Charters Cove Apartments	St. Ignace, MI	24			726,162			5/88				100	%		166,200
Charters Cove Apartments	St. Ignace, MI	24	731,897			5/88	100	%	166,200
Harbour Oaks Apartments	East China, MI	32			852,037			11/88				100	%		191,500
Harbour Oaks Apartments	East China, MI	32	857,888			11/88	100	%	191,500
Kersey Apartments	Kersey, CO	32			1,225,433			10/88				100	%		226,000
Kersey Apartments	Kersey, CO	32	1,173,898			10/88	100	%	226,000
Middleburg Bluffs	Middleburg, FL	45			1,334,118			3/89				100	%		375,283
Middleburg Bluffs	Middleburg, FL	45	1,352,766			3/89	100	%	375,283
Pine Knoll Manor	Smithfield, NC	33			1,294,058			5/89				100	%		309,450
Partridge Meadows	McMinnville, TN	48	1,338,213			10/88	100	%	296,461
Willowbrook Place	Immokalee, FL	41			1,246,482			3/88				100	%		328,711
Pine Knoll Manor	Smithfield, NC	33	1,317,885			5/89	100	%	309,450
Suncrest Apartments	Newport, TN	32	921,545			5/88	100	%	210,960
Willowbrook Place	Immokalee, FL	41	1,255,802			3/88	100	%	328,711

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Item 3.

Legal Proceedings

None.

Item 4.

(Removed and Reserved)

PART II

Item 5. Market for the Partnership’'s Limited Partnership Interests, Related Partnership Matters and Issuer Purchases of Partnership Interests

There is no established public trading market for the Units and it is not anticipated that any public market will develop for the purchase and sale of any Units.

As of March 31, ~~2010~~2011, the Partnership had 2,~~086~~ 082 registered holders of an aggregate of 26,501 Units.

The Partnership made no distributions to its limited partners from Operating Partnership cash flow from its inception on May 13, 1987 through March 31, ~~2010~~2011. Because the Partnership invested in Operating Partnerships owning apartment complexes, which receive government assistance, the cash distributions which may be made by the Operating Partnerships are often restricted. The Partnership does not anticipate that it will provide significant cash distributions to its Limited Partners in circumstances other than refinancing or sale of apartment complexes by the Operating Partnerships.

Item 6.

Selected Financial Data

Not Applicable.

Item 7. Management’'s Discussion and Analysis of Financial Condition and Results of Operations

Management’'s Discussion and Analysis of Financial Condition and Results of Operations

This Management’'s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements such as our intentions, hopes, beliefs, expectations, strategies and predictions of our future activities, or other future events or conditions. Such statements are “"forward looking statements”" within the meaning of Section 27A of the Securities Act of 1993, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created by these Acts. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including the factors identified in Part I, Item 1 of this Report. Although we believe that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate, and there can be no assurance that the forward-looking statements included in this Report will prove to be accurate. In light of the significant uncertainties inherent in their forward-looking statements, the inclusion of information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved.

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Liquidity

The Partnership’'s primary source of funds is the proceeds of the Public Offering. Other sources of liquidity have included (i) interest earned on capital contributions held pending investment or held for working capital reserves and (ii) cash distributions, if any, from operations of the Operating Partnerships in which the Partnership has invested. Both of these sources of liquidity are available to meet the obligations of the Partnership. The Partnership is currently accruing the annual asset management fees. Asset management fees accrued during the year ended March 31, ~~2010~~2011 were $6347,~~276~~931 due to Boston Capital Asset Management Limited Partnership (BCAMLP). During the fiscal year ended March 31, ~~2010~~2011 the Partnership paid $~~450~~50,000 in asset management fees. Total asset management fees accrued as of March 31, ~~2010~~2011 were $6,~~121~~119,~~807~~738. Pursuant to the Partnership agreement, these liabilities will be deferred until the Partnership receives sale or refinancing proceeds from Operating Partnerships, and at that time proceeds from such sales or refinancing would be used to satisfy these liabilities.

Affiliates of the general partner have advanced $~~320~~328,~~544~~ 357 to the Partnership to pay various third party operating expenses as of March 31, ~~2010~~2011. In addition, the Partnership did not accrue expenses other than the annual asset management fees that have been incurred by but not yet reimbursed to affiliates. These and any additional advances and accruals will be repaid, without interest, from available cash flow, reporting fees or the proceeds of sales or refinancing of the Partnership’'s interests in Operating Partnerships. Cash flow and reporting fees will be added to the Partnership’'s working capital and will be available to meet future third party obligations of the Partnership. Although the Partnership is in liquidation, we have sufficient cash to meet our anticipated current and ongoing operational expenses other than amounts payable to the general partner and its affiliates for asset management fees and advances. Additionaly, we do not expect the general partner or its affiliates to demand payment of these amounts prior to the liquidation of the Partnership pursuant to its Plan of Liquidation and Dissolution. The Partnership is currently pursuing, and will continue to ~~aggressively~~ pursue, ~~available~~additional cash flow and reporting fees. No significant distributions of cash flow from the Operating Partnerships are anticipated on a long term or short term basis due to the restrictions on rents which apply to low-income apartment complexes.

Capital Resources

The Partnership received $26,501,000 in subscriptions for Units (at $1,000 per Unit) during the period February 2, 1988 to September 21, 1988 pursuant to the Public Offering, resulting in net proceeds available for investment in Operating Partnerships (after payment of acquisition fees and expenses and funding of a reserve) of approximately $18,550,700.

As of March 31, ~~2010~~2011, the Partnership had committed to investments requiring cash payments of $18,613,793, all of which has been paid. At March 31, ~~2010~~2011, the Partnership held working capital of $~~189~~93,~~859~~581. Since the Partnership has completed funding of all investments, it anticipates that there should be no significant need for capital resources in the future.

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Results of Operations

The Partnership was formed with the investment objectives set forth above under Item 1. The Partnership incurs an annual asset management fee to Boston Capital Asset Management Limited Partnership in an amount equal to 0.5% of the aggregate cost of the apartment complexes owned by the Operating Partnerships, less the amount of certain partnership management and reporting fees paid or payable by the Operating Partnerships. The annual asset management fee incurred for the fiscal years ended March 31, ~~2010~~ 2011 and ~~2009~~2010 was $~~(51~~41,~~717)~~139 and $85(51,~~418~~717), respectively. The amounts incurred are net of reporting fees received of $~~114~~6,~~993~~792 and $5114,~~180~~993, respectively. Because the Partnership is not expected to receive any significant cash flow from the Operating Partnerships in subsequent years, the annual asset management fee is currently being deferred and is expected to be paid from the proceeds of sales or refinancing of the Partnership’'s interests in Operating Partnerships. The amount is expected to continue to decrease in future years as additional interests in Operating Partnerships are sold and the portion of the fee attributed to those Operating Partnerships is no longer incurred.

The Partnership expects that all of its cash receipts will be used to pay third party operating expenses. The Partnership reported interest income of $~~482~~328 and $~~435~~482, respectively, in the fiscal years ended March 31, ~~2010~~2011 and ~~2009~~ 2010. During the fiscal years ended March 31, ~~2010~~ 2011 and ~~2009~~2010, the Partnership received $~~114~~6,~~993~~792 and $5114,~~180~~993, respectively, of reporting fees from the Operating Partnerships. Reporting fee income in the ~~current~~prior fiscal year was higher primarily due to the collection of accrued reporting fees received from Operating Partnerships sold in the ~~current~~prior fiscal year. No other significant sources of income are anticipated.

As of March 31, ~~2010~~2011 and ~~2009~~2010, the Partnership held limited partnership interests in 107 and 1310 Operating Partnerships, respectively. There were three sales of the Operating Partnerships in the year ended March 31, ~~2010~~2011. The apartment complex owned by the applicable Operating Partnership is eligible for the federal housing tax credit. Occupancy of a unit in each apartment complex which initially complied with the minimum set-aside test (i.e., occupancy tenants with incomes equal to no more than a certain percentage of area median income) and the rent restriction test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to as “"Qualified Occupancy”". Each of the Operating Partnerships and each of the respective apartment complexes are described more fully in the Prospectus or applicable report on Form 8-K. The general partner believes that there is adequate casualty insurance on the properties.

As of March 31, ~~2010~~2011 and ~~2009~~2010, the Qualified Occupancy for the Partnership was 100%. The Partnership had a total of 107 properties at March 31, ~~2010~~2011, all of which were at 100% qualified occupancy.

For the tax years ended December 31, ~~2009~~2010 and ~~2008~~ 2009 the Partnership generated $3(125,~~726,599~~340) and ($143,~~323)~~726,599, respectively, in passive tax income (losses) that were passed through to the investors. As of December 31, 2003 all tax credits guaranteed by the Operating Partnerships had been realized and no further credits are anticipated.

In June 2007, the investment general partner of Lovington Housing approved an agreement to sell the property and the transaction closed on December 22, 2009. The sales price was $1,180,279, which includes the outstanding mortgage balance of approximately $974,813 and cash proceeds to the investment limited partners of $105,248. Of the total proceeds received, $76,000 represents reporting fees due to an affiliate of the investment partnership and the

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balance represents proceeds from the sale. Of the remaining proceeds, $7,500 ~~will~~was be paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $21,748 ~~will~~were be returned to cash reserves held by the Partnership. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid partnership management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of Units held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership’s investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, has been recorded in the amount of $21,748 as of December 31, 2009.

In ~~July 2008~~January 2009, the investment general partner ~~entered~~ ~~into~~of Belen Apartments LP approved an agreement to ~~transfer~~sell ~~its~~the ~~interest~~property inand ~~Nicollet~~the ~~Island~~transaction ~~Historic Homes~~closed toon anDecember ~~entity~~31, ~~affiliated~~2009. The ~~with~~sales ~~the~~price ~~operating~~was ~~general~~$2,150,000, ~~partner~~which ~~for~~includes ~~its assumption of~~ the outstanding mortgage balance of approximately $1,~~683~~443,~~669~~323 and cash proceeds to the investment limited ~~partner~~partners of $20463,~~000~~319. Of the total proceeds received, $10900 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $15,000 was paid to BCAMLP for expenses related to the ~~transfer~~sale, which includes third party legal costs. The remaining proceeds from the sale of $10447,~~000~~419 were returned to cash reserves held by the Partnership. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid ~~asset~~partnership management fees, and accrued but unpaid expenses of the investment limited partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of Units held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment limited partnership entered into an investment limited partner interest pledge agreement with the Operating Partnership for receipt of a residual payment. Under the terms of the investment limited partner interest pledge agreement, if the property owned by the Operating Partnership is refinanced or sold, within 5 years from the initial transfer date, there would be a residual payment of $100 plus the capital transaction proceeds distributable to the investment limited partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership’s investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, ~~has~~was ~~been~~ recorded in the amount of $10447,~~000~~419 as of ~~September 30~~December 31, ~~2008~~ 2009. The sale of the Operating Partnership had been recognized as of December 31, 2009, and the proceeds were received in the first quarter of 2010. In March 2010, additional sale proceeds of $5,456 were received and returned to the cash reserves held by the Partnership.

In ~~December 2008~~April 2009, the investment general partner transferred 99% of its interest in ~~Platteville~~Shelbyville ~~Apartments~~FH, Limited to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $~~538~~580,~~907~~848 and cash proceeds to the investment limited partner of $1617,~~167~~411. Of the total proceeds received, $5,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $7,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $114,~~167~~911 ~~was~~were returned to cash reserves held by the Partnership. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of Units held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the

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~~generated by the Operating Partnership, which were applied against the~~ investment limited partnership’s investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, has been recorded in the amount of $114,~~167~~911 as of ~~December 31~~April 30, ~~2008~~ 2009. The transfer of the remaining 1% investment partnership interest in the Operating Partnership closed in May 2010 for its assumption of the outstanding mortgage balance of approximately $5,867 and cash proceeds of $176. The remaining proceeds of $176 were returned to cash reserves and recorded as a gain as of June 30, 2010.

In ~~January~~ April 2009, the investment general partner transferred 99% of ~~Belen~~ ~~Apartments~~its LPinterest ~~approved~~in anSuncrest, ~~agreement~~Limited to ~~sell~~a ~~the~~non-affiliated ~~property~~entity ~~and~~for ~~the transaction~~its ~~closed~~assumption onof ~~December 31, 2009. The sales price was $2,150,000, which includes~~ the outstanding mortgage balance of approximately $1917,~~443,323~~468 and cash proceeds to the investment limited ~~partners~~ partner of $~~463~~27,~~319~~550. Of the total proceeds received, $~~900~~872 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the ~~sale~~transfer. Of the remaining proceeds, $157,~~000~~500 ~~will~~was be paid to BCAMLP for expenses related to the ~~sale~~transfer, which includes third party legal costs. The remaining proceeds ~~from the sale~~ of $~~447~~19,~~419~~178 were returned to cash reserves held by the Partnership. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid ~~partnership~~asset management fees, and accrued but unpaid expenses of the investment ~~limited~~ partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of Units held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership’s investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, ~~was~~has been recorded in the amount of $~~447~~19,~~419~~178 as of ~~December 31~~April 30, 2009. The ~~sale~~transfer of the ~~Operating~~remaining ~~Partnership~~1% ~~had~~investment ~~been~~partnership ~~recognized~~interest asin ofthe ~~December 31,~~Operating ~~2009,~~Partnership ~~and the~~closed ~~proceeds~~in ~~were~~May ~~received~~2010 infor its assumption of the ~~first~~outstanding ~~quarter~~mortgage balance of ~~2010. In~~approximately ~~March 2010~~$9,267 ~~additional~~and ~~sale~~cash proceeds of $~~5,456~~278. ~~were~~The ~~received~~remaining ~~and~~proceeds of $278 were returned to ~~the~~ cash reserves ~~held~~and byrecorded ~~the Partnership~~as a gain as of June 30, 2010.

In April 2009, the investment general partner transferred 99% of its interest in ~~Shelbyville~~Warren FHProperties, Limited to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $~~580~~1,~~848~~330,935 and cash proceeds to the investment limited partner of $1739,~~411~~928. Of the total proceeds received, $512,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $10,000 was paid for real estate taxes due and $7,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $410,~~911~~ 428 were returned to cash reserves held by the Partnership. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of Units held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership’s investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, has been recorded in the amount of $~~4,911~~428 as of ~~April~~ June 30, 2009. An ~~The~~adjustment ~~transfer~~to of the ~~remaining~~ 1%gain ~~investment~~on ~~partnership~~sale ~~interest~~has inbeen ~~the~~recorded ~~Operating Partnership closed~~ in ~~May 2010 for its assumption of~~ the ~~outstanding mortgage balance of approximately $5,867 and cash proceeds of $176. The remaining proceeds of $176 will be returned to cash reserves and recorded as a gain as of June 30, 2010.~~

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Inamount ~~April 2009, the investment general partner transferred 99%~~ of ~~its interest in Suncrest, Limited to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately~~ $~~917~~10,~~468~~000 and cash proceeds to the investment limited partner of $27,550. Of the total proceeds received, $872 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $7,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $19,178 were returned to cash reserves held by the Partnership. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of Units held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership’s investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, has been recorded in the amount of $19,178 as of ~~April~~ September 30, 2009. The transfer of the remaining 1% investment partnership interest in the Operating Partnership closed in May 2010 for its assumption of the outstanding mortgage balance of approximately $913,~~267~~444 and cash proceeds of $~~278~~403. The remaining proceeds of $~~278~~403 ~~will~~were be returned to cash reserves and recorded as a gain as of June 30, 2010.

In ~~April 2009~~January 2010, the investment general partner transferred ~~99% of~~ its interest in ~~Warren~~Brookhollow ~~Properties,~~Manor Limited to ~~a non-affiliated~~an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,~~330~~322,~~935~~745 and cash proceeds to the investment limited partner of $3925,~~928~~000. Of the total proceeds received, $127,~~000~~594 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $~~10,000 was paid for real estate taxes due and $~~7,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $109,~~428~~906 were returned to cash reserves held by the Partnership. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of ~~Units~~BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment ~~limited~~ partnership’s investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and ~~expense reimbursement~~expenses, has been recorded in the amount of ~~$428 as~~ of ~~June 30, 2009. An adjustment to the gain on sale has been recorded in the amount of~~ $109,~~000~~906 as of ~~September 30,~~ ~~2009. The~~March ~~transfer of the remaining 1% investment partnership interest in the Operating Partnership closed in May 2010 for its assumption of the outstanding mortgage balance of approximately $13~~31,~~444~~ ~~and cash proceeds of $403. The remaining proceeds of $403 will be returned to cash reserves and recorded as a gain as of June 30,~~ 2010.

In January 2010, the investment general partner transferred its interest in Brookhollow Manor Limited to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,322,745 and cash proceeds to the investment limited partner of $25,000. Of the total proceeds received, $7,594 represents reporting fees

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due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $7,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $9,906 were returned to cash reserves held by the Partnership. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership’s investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $9,906 as of March 31, 2010.

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Off Balance Sheet Arrangements

None.

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Principal Accounting Policies and Estimates

The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), which require the Partnership to make various estimates and assumptions. The following section is a summary of some aspects of those accounting policies that may require subjective or complex judgments and are most important to the portrayal of the Partnership’s financial condition and results of operations. The Partnership believes that there is a low probability that the use of different estimates or assumptions in making these judgments would result in materially different amounts being reported in the financial statements.

The Partnership is required to assess potential impairments to its long-lived assets, which are primarily investments in limited partnerships. The Partnership accounts for its investment in limited partnerships in accordance with the equity method of accounting since the Partnership does not control the operations of the Operating Partnerships. The purpose of an impairment analysis is to verify that the real estate investment balance reflected on the balance sheet does not exceed the value of the underlying investments.

If the book value of the Partnership’s investment in an Operating Partnership exceeds the estimated value derived by management, which generally consists of the remaining future Low-Income Housing Credits allocable to the Partnership and the estimated residual value to the Partnership, the Partnership reduces its investment in the Operating Partnership ~~and includes this reduction in equity in loss of investment of limited partnerships~~.

~~GAAP~~In ~~provides~~accordance with the accounting guidance onfor ~~when~~the aconsolidation ~~company~~of variable interest entities, the Partnership determines when it should include the assets, liabilities, and activities of a variable interest entity (“VIE”) in its financial statements, and when it should disclose information about its relationship with a VIE. The analysis that must be performed to determine which entity should consolidate a VIE focuses on control and economic factors. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it ~~absorbs~~ has (1) the ~~majority~~power to direct the activities of the ~~entity’~~VIE that most significantly impact the VIE's ~~expected~~economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party will be required to consolidate the ~~majority~~VIE. Further, the guidance requires continual reconsideration of the ~~expected returns,~~primary orbeneficiary ~~both~~of a VIE.

Based on this guidance, the Operating Partnerships in which the Partnership invests meet the definition of a VIE because the owners of the equity at risk in these entities do not have the power to direct their operations. However, management does not consolidate the Partnership’s interests in these VIEs ~~under this guidance~~, as it is not considered to be the primary beneficiary since it does not have the power to direct the activities that are considered most significant to the economic performance of these entities. The Partnership currently records the amount of its investment in these partnerships as an asset on its balance ~~sheet~~sheets, recognizes its share of partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in its financial statements. The Partnership’s balance in investment in Operating Partnerships represents its maximum exposure to loss. The Partnership’s exposure to loss on these partnerships is mitigated by the condition and financial performance of the underlying Housing Complexes as well as the strength of the general partners and their guarantee against credit recapture to the investors of the Partnership.

The Partnership’s balance in investment in Operating Partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Partnership’s exposure to loss on these partnerships is mitigated by the condition and financial performance of the underlying properties as well as the strength of the local general partners and their guarantee against credit recapture.

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Recent Accounting Changes

In ~~June~~ September 2006, ~~accounting~~the ~~guidance~~Financial ~~for~~ Accounting ~~for~~ ~~Uncertainty~~Standards inBoard ~~Income~~("FASB") ~~Taxes,~~issued ~~an interpretation of the~~ accounting guidance ~~for~~ ~~Accounting~~ for ~~Income~~Fair ~~Taxes~~Value Measurements, ~~was~~which ~~issued. This~~defines ~~requires~~fair ~~all~~value, ~~taxpayers~~establishes toa ~~analyze~~framework ~~all~~for ~~material~~measuring ~~positions~~fair ~~they~~value ~~have taken~~and orexpands ~~plan~~disclosure toabout ~~take~~fair invalue ~~all~~measurements. ~~tax~~This ~~returns~~guidance ~~that~~is ~~have~~effective ~~been~~for ~~filed~~financial orstatements ~~should~~issued ~~have been filed with all taxing authorities~~ for ~~all~~fiscal years ~~still~~beginning ~~subject~~after toNovember ~~challenge by~~15, ~~those~~2007 ~~taxing~~and ~~authorities.~~shall ~~The Partnership has elected to~~ be ~~treated~~applied asprospectively ~~a pass-through~~except ~~entity~~ for ~~income~~very ~~tax~~limited ~~purposes~~transactions. In ~~and,~~February ~~as such~~2008, isthe ~~not~~FASB ~~subject~~delayed ~~to income~~for ~~taxes. Rather,~~one ~~all~~year ~~items~~implementation of ~~taxable~~ ~~income,~~the ~~deductions~~guidance ~~and~~as ~~tax~~it ~~credits~~pertains ~~are~~to ~~passed~~certain ~~through~~non-financial toassets and ~~are reported by its owners on their respective income tax returns~~liabilities. The Partnership’s ~~federal~~adopted ~~tax~~GAAP ~~status~~for asFair ~~a pass-through~~Value ~~entity~~Measurements iseffective ~~based~~April on1, ~~its~~2008, ~~legal~~except ~~status~~ as ait ~~Partnership.~~applies ~~Accordingly, the Partnership is not required~~ to ~~take~~those ~~any tax positions in order to qualify as a pass~~non-~~through~~financial ~~entity. The Partnership~~assets ~~is required to file~~ and ~~does~~liabilities, ~~file~~for ~~tax~~which ~~returns with~~ the ~~Internal Revenue~~effective ~~Service~~date ~~and~~was ~~other~~April ~~taxing~~1, ~~authorities~~2009. ~~Accordingly,~~ ~~these~~The ~~financial~~Partnership ~~statements~~has dodetermined ~~not~~that ~~reflect~~adoption aof ~~provision~~this ~~for income~~guidance ~~taxes and the Partnership~~ has no ~~other~~material ~~tax~~impact ~~positions,~~on ~~which~~the ~~must~~Partnership’s ~~be considered~~financial ~~for disclosure~~statements.

In September 2006, the Financial Accounting Standards Board (“FASB”) issued accounting guidance for Fair Value Measurements, which defines fair value, establishes a framework for measuring fair value and expands disclosure about fair value measurements. This guidance is effective for financial statements issued for fiscal years beginning after November 15, 2007 and shall be applied prospectively except for very limited transactions. In February 2008, the FASB delayed for one year implementation of the guidance as it pertains to certain non-financial assets and liabilities. The Partnership adopted GAAP for Fair Value Measurements effective April 1, 2008, except as it applies to those non-financial assets and liabilities, for which the effective date was April 1, 2009. The Partnership has determined that adoption of this guidance has no material impact on the Partnership’s financial statements.

In February 2007, the FASB issued accounting guidance for The Fair Value Option for Financial Assets and Financial Liabilities. This guidance permits entities to choose to measure many financial instruments and certain other items at fair value. The fair value election is designed to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. It is effective for fiscal years beginning after November 15, 2007. On April 1, 2008, the Partnership adopted GAAP for The Fair Value Option for Financial Assets and Financial Liabilities and elected not to apply the provisions to its eligible financial assets and financial liabilities on the date of adoption. Accordingly, the initial application of the guidance had no effect on the Partnership.

In November 2008, the FASB issued accounting guidance on Equity Method Investment Accounting Considerations that addresses how the initial carrying value of an equity method investment should be determined, how an impairment assessment of an underlying indefinite-lived intangible asset of an equity method investment should be performed, how an equity method investee’s issuance of shares should be accounted for, and how to account for a change in an investment from the equity method to the cost method. This guidance is effective in fiscal years beginning on or after December 15, 2008, and interim periods within those fiscal years. The Partnership adopted the guidance for the interim quarterly period beginning April 1, 2009. The impact of adopting it does not have a material impact on the Partnership’s financial condition or results of operations.

In April 2009, the FASB issued accounting guidance for Interim Disclosures about Fair Value of Financial Instruments. This requires disclosure about the method and significant assumptions used to establish the fair value of financial instruments for interim reporting periods as well as annual statements. It became effective for American Affordable Housing II L.P. as of and for the interim period ended June 30, 2009 and has no impact on the Partnership’s financial condition or results of operations.

In May 2009, the FASB issued guidance regarding subsequent events, which was subsequently updated in February 2010. This guidance established general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. In particular, this guidance sets forth the period after the balance sheet date during which management of a reporting entity should evaluate events or transactions that may occur for potential recognition or disclosure in the financial statements, the circumstances under which an entity should recognize events or transactions occurring after the balance sheet date in its financial statements, and the disclosures that an entity should make about events or transactions that occurred after the balance sheet date. This guidance was effective for financial statements issued for fiscal years and interim periods ending after June 15, 2009, and was therefore adopted by the Partnership for the quarter ended June 30, 2009. The adoption did not have a significant impact on the subsequent events that the Partnership reports, either through recognition or disclosure, in the financial statements. In February 2010, the FASB amended its guidance on subsequent events to remove the requirement to disclose the date through which an entity has evaluated subsequent events, alleviating conflicts with current SEC guidance. This amendment was effective immediately and therefore the Partnership did not include the disclosure in this Form 10-K.

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Recent Accounting Changes - continued

In June 2009, the FASB issued an amendment to the accounting and disclosure requirements for the consolidation of variable interest entities (VIEs). The amended guidance modifies the consolidation model to one based on control and economics, and replaces the current quantitative primary beneficiary analysis with a qualitative analysis. The primary beneficiary of a VIE will be the entity that has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party will be required to consolidate the VIE. Further, the amended guidance requires continual reconsideration of the primary beneficiary of a VIE and adds an additional reconsideration event for determination of whether an entity is a VIE. Additionally, the amendment requires enhanced and expanded disclosures around VIEs. This amendment is effective for fiscal years beginning after November 15, 2009. The adoption of this guidance on April 1, 2010 is not expected to have a material effect on the Partnership’s financial statements.

In June 2009, the FASB issued the Accounting Standards Codification (Codification). Effective July 1, 2009, the Codification is the single source of authoritative accounting principles recognized by the FASB to be applied by non-governmental entities in the preparation of financial statements in conformity with GAAP. The Codification is intended to reorganize, rather than change, existing GAAP. Accordingly, all references to currently existing GAAP have been removed and have been replaced with plain English explanations of the Partnership’s accounting policies. The adoption of the Codification did not have a material impact on the Partnership’s financial position or results of operations.

16In June 2009, the FASB issued an amendment to the accounting and disclosure requirements for the consolidation of variable interest entities (VIEs). The amended guidance modifies the consolidation model to one based on control and economics, and replaced quantitative primary beneficiary analysis with a qualitative analysis. The primary beneficiary of a VIE will be the entity that has (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party will be required to consolidate the VIE. Further, the amended guidance requires continual reconsideration of the primary beneficiary of a VIE and adds an additional reconsideration event for determination of whether an entity is a VIE. Additionally, the amendment requires enhanced and expanded disclosures around VIEs. This amendment was effective for fiscal years beginning after November 15, 2009. The adoption of this guidance on April 1, 2010 did not have a material effect on the Fund’s financial statements.

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Item 7A.

Quantitative and Qualitative Disclosure About Market Risk

Not Applicable

Item 8. Financial Statements and Supplementary Data~~(Article 8 of Reg. S-X)~~

The financial statements of the Partnership are listed in Item 15 as being filed as a part of this Report as Exhibits 13 and 99.2 and are incorporated herein by reference.

Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

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Item 9a.

Controls & Procedures

(a)

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, the Partnership’s general partner, under the supervision and with the participation of the Principal Executive Officer and Principal Financial Officer of C&M Management, Inc., carried out an evaluation of the effectiveness of the Partnership’s “disclosure controls and procedures” as defined in the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15. Based on that evaluation, the Principal Executive Officer and Principal Financial Officer have concluded that as of the end of the period covered by this report, the Partnership’s disclosure controls and procedures were adequate and effective in timely alerting them to material information relating to the Partnership required to be included in the Partnership’s periodic SEC filings.

(b) Management’'s Annual Report on Internal Control over Financial Reporting

Management of the Partnership is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act). The Partnership’s internal control system over financial reporting is designed to provide reasonable assurance to the Partnership’s management regarding the reliability of financial reporting and the preparation of financial statements for external purposes of accounting principles generally accepted in the United States.

Due to inherent limitations, an internal control system over financial reporting may not prevent or detect misstatements. Therefore, even those systems determined to be effective can provide only reasonable assurance of achieving their control objectives.

The Partnership’'s general partner, under the supervision and with the participation of the Principal Executive Officer and Principal Financial Officer of Boston Capital Associates ~~V LLC~~LP, assessed the effectiveness of the ~~Partnership’s~~ internal controls and procedures over financial reporting as of March 31, ~~2010~~2011. In making this assessment, the Partnership’'s management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control - Integrated Framework. Based on this assessment, management believes that, as of March 31, ~~2010~~2011, the Partnership’'s internal control over financial reporting was effective.

(c)

Changes in Internal Controls

There were no changes in the Partnership’s internal control over financial reporting that occurred during the year ended March 31, 2011 that materially affected, or are reasonably likely to materially affect, the Partnership management’s internal control over financial reporting.

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This annual report does not include an attestation report of the Partnership’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Partnership’s registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit the Partnership to provide only management’s report in this annual report.

There were no changes in the Partnership’s internal control over financial reporting that occurred during the year ended March 31, 2010 that materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

PART III

Item 10.

Directors, Executive Officers, and Corporate Governance

(a), (b), (c), (d) and (e)

The Partnership has no directors or executives officers of its own. The following biographical information is presented for the partners of the General Partner and affiliates of those partners, (including Boston Capital Partners, Inc. (“"Boston Capital”")), with principal responsibility for the Partnership’'s affairs.

John P. Manning, age 6162, is co-founder, and since 1974 has been the President and Chief Executive Officer, of Boston Capital Corporation. As co-founder and CEO of Boston Capital, Mr. Manning’s primary responsibilities include strategic planning, business development and the continued oversight of new opportunities. In addition to his responsibilities at Boston Capital Corporation, Mr. Manning is a proactive leader in the multifamily real estate industry. He served in 1990 as a member of the Mitchell-Danforth Task Force, which reviewed and suggested reforms to the Low Income Housing Tax Credit program. He was the founding President of the Affordable Housing Tax Credit Coalition and is a former member of the board of the National Leased Housing Association. During the 1980s, he served as a member of the Massachusetts Housing Policy Committee as an appointee of the Governor of Massachusetts. In addition, Mr. Manning has testified before the U.S. House Ways and Means Committee and the U.S. Senate Finance Committee on the critical role of the private sector in the success of the Low Income Housing Tax Credit. In 1996, President Clinton appointed him to the President’s Advisory Committee on the Arts at the John F. Kennedy Center for the Performing Arts. In 1998, President Clinton appointed Mr. Manning to the President’s Export Council, the premiere committee comprised of major corporate CEOs that advise the President on matters of foreign trade and commerce. In 2003, he was appointed by Boston Mayor Tom Menino to the Mayors Advisory Panel on Housing. Mr. Manning sits on the Board of Directors of the John F. Kennedy Presidential Library in Boston where he serves as Chairman of the Distinguished Visitors Program. He is also on the Board of Directors of the Beth Israel Deaconess Medical Center in Boston. Mr. Manning is a graduate of Boston College.

Mr. Manning is the managing member of Boston Associates. Mr. Manning is also the principal of Boston Capital Corporation. While Boston Capital is not a direct subsidiary of Boston Capital Corporation, each of the entities is under the common control of Mr. Manning.

Jeffrey H. Goldstein, age 49, is Chief Operating Officer and has been the Director of Real Estate of Boston Capital Corporation since 1996. He directs Boston Capital Corporation’s comprehensive real estate services, which include all aspects of origination, underwriting, due diligence and acquisition. As COO, Mr. Goldstein is responsible for the financial and operational areas of Boston Capital Corporation and assists in the design and implementation of business development and strategic planning objectives. Mr. Goldstein previously served as the Director of the Asset Management division as well as the head of the dispositions and troubled assets group. Utilizing his 16 years experience in the real estate syndication and development industry, Mr. Goldstein has been instrumental in the diversification and expansion of Boston Capital Corporation’s businesses. Prior to joining Boston Capital Corporation in 1990, Mr. Goldstein was Manager of Finance for A.J. Lane & Co., where he was responsible for placing debt on all new construction projects and debt structure for existing apartment properties. Prior to that, he served as

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Jeffrey H. Goldstein, age 48, is Chief Operating Officer and has been the Director of Real Estate of Boston Capital Corporation since 1996. He directs Boston Capital Corporation’s comprehensive real estate services, which include all aspects of origination, underwriting, due diligence and acquisition. As COO, Mr. Goldstein is responsible for the financial and operational areas of Boston Capital Corporation and assists in the design and implementation of business development and strategic planning objectives. Mr. Goldstein previously served as the Director of the Asset Management division as well as the head of the dispositions and troubled assets group. Utilizing his 16 years experience in the real estate syndication and development industry, Mr. Goldstein has been instrumental in the diversification and expansion of Boston Capital Corporation’s businesses. Prior to joining Boston Capital Corporation in 1990, Mr. Goldstein was Manager ~~of Finance~~ for ~~A.J. Lane & Co., where he was responsible for placing debt on all new construction projects and debt structure for existing apartment properties. Prior to that, he served as Manager for~~ Homeowner Financial Services, a financial consulting firm for residential and commercial properties, and worked as an analyst responsible for budgeting and forecasting for the New York City Council Finance Division. He graduated from the University of Colorado and received his MBA from Northeastern University.

Kevin P. Costello, age 6364, is Executive Vice President and has been the Director of Institutional Investing of Boston Capital Corporation since 1992 and serves on the firm’s Executive Committee. He is responsible for all corporate investment activity and has spent over 20 years in the real estate syndication and investment business. Mr. Costello’s prior responsibilities at Boston Capital Corporation have involved the management of the Acquisitions Department and the structuring and distribution of conventional and tax credit private placements. Prior to joining Boston Capital Corporation in 1987, he held positions with First Winthrop, Reynolds Securities and Bache & Company. Mr. Costello graduated from Stonehill College and received his MBA with honors from Rutgers’ Graduate School of Business Administration.

Marc N. Teal, age 4647, has been Chief Financial Officer of Boston Capital Corporation since May 2003. Mr. Teal previously served as Senior Vice President and Director of Accounting and prior to that served as Vice President of Partnership Accounting. He has been with Boston Capital Corporation since 1990. In his current role as CFO he oversees all of the accounting, financial reporting, SEC reporting, budgeting, audit, tax and compliance for Boston Capital Corporation, its affiliated entities and all Boston Capital Corporation sponsored programs. Additionally, Mr. Teal is responsible for maintaining all banking and borrowing relationships of Boston Capital Corporation and treasury management of all working capital reserves. He also oversees Boston Capital information and technology areas, including the strategic planning for Boston Capital Corporation and its affiliates. Prior to joining Boston Capital Corporation in 1990, Mr. Teal was a Senior Accountant for Cabot, Cabot & Forbes, a multifaceted real estate company, and prior to that was a Senior Accountant for Liberty Real Estate Corp. He received a Bachelor of Science Accountancy from Bentley College and a Masters in Finance from Suffolk University.

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(f)	Involvement in certain legal proceedings.

None.

(g)	Promoters and control persons.

None.

(h)and(i)

The Partnership has no directors or executive officers and accordingly has no audit committee and no audit committee financial expert. The Partnership is not a listed issuer as defined in Regulation 10A-3 promulgated under the Securities Exchange Act of 1934.

The general partner of the Partnership, BCA Associates LP, has adopted a Code of Ethics that applies to the Principal Executive Officer and Principal Financial Officer of C&M Management, Inc. The Code of Ethics will be provided without charge to any person who requests it. Such request should be directed to, Marc N. Teal, Boston Capital Corp., One Boston Place, Boston, MA 02108.

Item 11.

Executive Compensation

(a), (b), (c), (d) and (e)

The Partnership has no officers or directors and no compensation committee. However, under the terms of the Amended and Restated Agreement and Certificate of Limited Partnership of the Partnership, the Partnership has paid or accrued obligations to the general partner and their affiliates for the following fees during the ~~2010~~ 2011 fiscal year:

1. An annual asset management fee based on .5 percent of the aggregate cost of all apartment complexes acquired by the Operating Partnerships has been accrued as payable to Boston Capital Asset Management Limited Partnership. The annual asset management fee accrued during the year ended March 31, ~~2010~~2011 was $6347,~~276~~931. The fee is payable without interest as sufficient funds become available.

2. The Partnership recorded as payable to affiliates of the general partner a total of $67,~~634~~813 for amounts charged to operations during the year ended March 31, ~~2010~~2011. The charges include postage, printing, travel, and overhead allocations.

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Item 12.

Security Ownership of Certain Beneficial Owners and Management

(a)	Security ownership of certain beneficial owners.

As of March 31, ~~2010~~2011, 26,501 Units had been issued. The Partnership is known to have one investor, Summit Venture LP, PO Box 47638, Phoenix, AZ 85068, with holdings in excess of 5% of the total outstanding Units in the Partnership. Their holdings total 9.54% of the total outstanding Units in the Partnership.

(b)	Security ownership of management.

The general partner named in Item 1 owns the entire outstanding general partner interests in the Partnership. The general partner has a 1% interest in all profits, losses, credits and distributions of the Partnership. The Partnership’'s response to Item 12(a) is incorporated herein by reference.

(c)	Changes in control.

There exists no arrangement known to the Partnership the operation of which may at a subsequent date result in a change in control of the Partnership. There is a provision in the Partnership Agreement which allows, under certain circumstances, the ability to change control.

The Partnership has no compensation plans under which interests in the Partnership are authorized for issuance.

Item 13.

Certain Relationships and Related Transactions, and Director Independence

The Partnership has no officers or directors. However, under the terms of the Public Offering, various kinds of compensation and fees are payable to the general partner and their affiliates during the organization and operation of the Partnership. Additionally, the general partner will receive distributions from the Partnership if there is cash available for distribution or residual proceeds as defined in the Partnership Agreement.

The amounts and kinds of compensation and fees are described on pages 9 to 11 of the Prospectus under the caption “Compensation of the general partner and Affiliate”, which is incorporated herein by reference. See Note B of Notes to Financial Statements in Item 15 of this Annual Report on Form 10-K for amounts accrued or paid to the general partner and their affiliates during the period from April 1, 1993 through March 31, ~~2010~~2011.

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Item 14. Principal ~~Accountant~~Accounting Fees and Services

Fees paid to the Partnership’s independent auditors for fiscal year ~~2010~~2011 and fiscal year ~~2009~~2010 were comprised of the following:

Fee Type	~~2010~~2011		~~2009~~	2010
Audit Fees	~~18,625~~$	18,175	~~22,320~~	$	18,625
Audit Related Fees	—	-	—		-
Tax Fees	~~5,825~~	5,565	~~6,653~~		5,825
All Other Fees	~~1,340~~	-	—		1,340
Total	~~25,790~~$	23,740	~~28,973~~	$	25,790

Audit Committee

The Partnership has no Audit Committee. All audit services and any permitted non-audit services performed by the Partnership’s independent auditors are pre-approved by C&M Management, Inc.

PART IV

Item 15. Exhibits and Financial Statement Schedules

Item 15.	Exhibits and Financial Statement Schedules

(a) 1. Financial Statements; Filed herein as Exhibit 13

	American Affordable Housing II Limited Partnership-Filed herein as Exhibit 13

	Report of Independent Registered Public Accounting Firm
	Balance Sheets, March 31, 2011 and 2010
	Statements of Operations, Years ended March 31, 2011 and 2010
	Statements of Changes in Partners' Deficit, Years ended March 31, 2011 and 2010
	Statements of Cash Flows, Years ended March 31, 2011 and 2010
	Notes to Financial Statements, March 31, 2011 and 2010

(b) 1	Exhibits
	(listed according to the number assigned in the table in Item 601 of Regulation S-K)

(2)	Plan of acquisition, reorganization, arrangement, liquidation or succession
a.	Plan of Liquidation and Dissolution of American Affordable Housing Fund II Limited Partnership (incorporated by reference from Appendix A to the Partnership’s Consent Solicitation Statement on Schedule 14A, as filed with the Securities and Exchange Commission on January 9, 2008).

(3)	Amended and Restated Certificate and Agreement of Limited Partnership.

(4)	Instruments defining the rights of security holders, including Indentures (same as Exhibit (3)).

(a) 1. Financial Statements; Filed herein as Exhibit 13

American Affordable Housing II Limited Partnership-Filed herein as Exhibit 13

Balance Sheets, March 31, 2010 and 2009

Statements of Operations, Years ended March 31, 2010 and 2009

Statements of Changes in Partners’ Deficit, Years ended March 31, 2010 and 2009

Statements of Cash Flows, Years ended March 31, 2010 and 2009

Notes to Financial Statements, Years ended March 31, 2010 and 2009

(b) 1 Exhibits

(listed according to the number assigned in the table in Item 601 of Regulation S-K)

(2) Plan of acquisition, reorganization, arrangement, liquidation or succession

a. Plan of Liquidation and Dissolution of American Affordable Housing Fund II Limited Partnership (incorporated by reference from Appendix A to the Partnership’s Consent Solicitation Statement on Schedule 14A, as filed with the Securities and Exchange Commission on January 9, 2008).

(3) Amended and Restated Certificate and Agreement of Limited Partnership. (1)

(4) Instruments defining the rights of security holders, including Indentures (same as Exhibit (3)).

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(13) Financial Statement of American Affordable Housing Fund II Limited Partnership, filed herein

(13)	Financial Statement of American Affordable Housing Fund II Limited Partnership, filed herein

(31)	Certification 302
a.	Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herein
b.	Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herein

(32)	Certification 906
a.	Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herein
b.	Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herein

(31) Certification 302

a. Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herein

b. Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, filed herein

(32) Certification 906

a. Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herein

b. Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herein

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SIGNATURES

Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

	American Affordable Housing II
	Limited Partnership
	By:	Boston Capital Associates Limited
		Partnership, General Partner
		By:	BCA Associates Limited Partnership,
			General Partner
		By:	C&M Management Inc.,
			General Partner
Date: June 29, 2010		By:	/s/ John P. Manning
Date: June 29, 2011		By:	/s/ John P. Manning
			John P. Manning

Pursuant to the requirements of the Securities Exchange Act of 1934, ~~thisreport~~this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated:

DATE	SIGNATURE	TITLE
June 29, 2010	/s/ John P. Manning	Director, President (Principal Executive Officer),
June 29, 2011	/s/ John P. Manning	Director, President (Principal Executive Officer), C&M
	John P. Manning	~~C&M~~ Management Inc;
DATE	SIGNATURE	TITLE
June 29, 2010	/s/ Marc N. Teal	Senior Vice President, Chief Financial Officer
	Marc N. Teal	(Principal Accounting and Financial Officer)
		C&M Management Inc.

DATE	SIGNATURE	TITLE

June 29, 2011	/s/ Marc N. Teal	Senior Vice President, Chief Financial Officer
	Marc N. Teal	(Principal Accounting and Financial Officer)
		C&M Management Inc.

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