FORM 10-KSB--ANNUAL OR TRANSITIONAL REPORT UNDER
SECTION 13 OR 15(D)
FORM 10-KSB
(Mark One)
[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT
OF 1934 [No Fee Required]
For the fiscal year ended December 31, 1997
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934 [No Fee Required]
For the transition period from to
Commission file number 0-9704
ANGELES PARTNERS IX
California 95-3417137
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Insignia Financial Plaza, P.O. Box 1089
Greenville, South Carolina 29602
(Address of principal executive offices) (Zip Code)
Issuer's telephone number (864) 239-1000
Securities registered under Section 12(b) of the Exchange Act:
None
Securities registered under Section 12(g) of the Exchange Act:
Limited Partnership Units
(Title of class)
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 [ ]
Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B contained in this form, and no disclosure will be contained, to
the best of registrant's knowledge in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-KSB or any amendment to
this Form 10-KSB. [X]
State issuer's revenues for its most recent fiscal year. $7,512,000
State the aggregate market value of the voting partnership interests held by
nonaffiliates computed by reference to the price at which the partnerships
interests were sold, or the average bid and asked prices of such partnership
interests, as of a specified date within the past 60 days. Market value
information for Registrant's partnership interests is not available. Should a
trading market develop for these interests, it is the General Partner's belief
that the aggregate market value of the voting partnership interests would not
exceed $25,000,000.
DOCUMENTS INCORPORATED BY REFERENCE
None
PART I
ITEM 1. DESCRIPTION OF BUSINESS
Angeles Partners IX (the "Partnership" or "Registrant") is a publicly-held
limited partnership organized under the California Uniform Limited Partnership
Act pursuant to a Certificate and Agreement of Limited Partnership (hereinafter
referred to as the "Agreement") dated September 12, 1979. The General Partner
of the Partnership is Angeles Realty Corporation, a California corporation
(hereinafter referred to as the "General Partner" or "ARC"). ARC is wholly
owned by MAE GP Corporation ("MAE GP") which is an affiliate of Insignia
Financial Group, Inc. ("Insignia"). Effective February 25, 1998, MAE GP was
merged into Insignia Properties Trust ("IPT"), which is an affiliate of
Insignia. Thus the General Partner is now a wholly-owned subsidiary of IPT.
The Partnership, through its public offering of Limited Partnership Units, sold
20,000 units aggregating $20,000,000. The General Partner contributed capital
in the amount of $1,000 for a 1% interest in the Partnership. The Partnership
was formed for the purpose of acquiring fee interests in various types of real
property. The Partnership presently owns five investment properties. The
General Partner of the Partnership intends to maximize the operating results
and, ultimately, the net realizable value of each of the Partnership's
properties in order to achieve the best possible return for the investors. Such
results may best be achieved through property sales, refinancings, debt
restructurings or relinquishment of the assets. The Partnership intends to
evaluate each of its holdings periodically to determine the most appropriate
strategy for each of the assets.
The Partnership has no employees. The General Partner is vested with full
authority as to the general management and supervision of the business and
affairs of the Partnership. Limited Partners have no right to participate in
the management or conduct of such business and affairs. Insignia Residential
Group, L.P. provides day-to-day management services to the Partnership's
investment properties.
The business in which the Partnership is engaged is highly competitive, and the
Partnership is not a significant factor in its industry. Each of its apartment
properties is located in or near a major urban area and, accordingly, competes
for rentals not only with similar apartment properties in its immediate area but
with hundreds of similar apartment properties throughout the urban area. Such
competition is primarily on the basis of location, rents, services and
amenities. In addition, the Partnership competes with significant numbers of
individuals and organizations (including similar partnerships, real estate
investment trusts and financial institutions) with respect to the sale of
improved real properties, primarily on the basis of the prices and terms of such
transactions.
ITEM 2. DESCRIPTION OF PROPERTIES:
The following table sets forth the Partnership's investments in properties:
Date of
Property Purchase Type of Ownership Use
The Pines of Northwest
Crossing Apartments 05/30/80 Fee ownership, subject to Apartment -
Houston, Texas first and second mortgages 412 units
Panorama Terrace Apartments 06/30/80 Fee ownership, subject to a Apartment -
Birmingham, Alabama first mortgage 227 units
Forest River Apartments 12/29/80 Fee ownership, subject to Apartment -
Gadsden, Alabama first and second mortgages 248 units
Village Green Apartments 12/31/80 Fee ownership, subject to Apartment -
Montgomery, Alabama a first mortgage 337 units
Rosemont Crossing 12/31/80 Fee ownership, subject to Apartment -
San Antonio, Texas first and second mortgages 217 units
SCHEDULE OF PROPERTIES:
(dollar amounts in thousands)
Gross
Carrying Accumulated Federal
Property Value Depreciation Rate Method Tax Basis
The Pines of Northwest
Crossing Apartments $11,056 $ 6,424 5-25 yrs (1) $ 5,215
Panorama Terrace Apartments 8,481 5,414 5-25 yrs (1) 3,974
Forest River Apartments 4,974 3,398 5-25 yrs (1) 1,881
Village Green Apartments 8,014 5,346 5-25 yrs (1) 3,392
Rosemont Crossing Apartments 4,335 2,137 5-19 yrs (1) 2,335
$36,860 $22,719 $16,797
(1) Straight-line and accelerated methods used.
See "Note A" of the financial statements included in "Item 7." for a description
of the Partnership's depreciation policy.
SCHEDULE OF MORTGAGES:
(dollar amounts in thousands)
Principal Principal
Balance At Balance
December 31, Interest Period Maturity Due At
Property 1997 Rate Amortized Date Maturity
The Pines of Northwest
Crossing Apartments
1st mortgage $ 4,813 7.83% (2) 10/15/03 $ 4,338
2nd mortgage 156 7.83% (4) 10/15/03 156
Panorama Terrace Apartments
1st mortgage 3,818 10.13% (3) 08/10/02 3,590
Forest River Apartments
1st mortgage 3,256 7.83% (2) 10/15/03 2,935
2nd mortgage 106 7.83% (4) 10/15/03 106
Village Green Apartments
1st mortgage 4,849 7.33% (1) 11/01/03 4,489
Rosemont Crossing Apts.
1st mortgage 2,831 7.83% (2) 10/15/03 2,552
2nd mortgage 92 7.83% (4) 10/15/03 92
19,921 $ 18,258
Less unamortized
discounts (153)
$ 19,768
(1) The principal balance is being amortized over 360 months with a
balloon payment due November 1, 2003.
(2) The principal balance is being amortized over 344 months with a
balloon payment due October 15, 2003.
(3) The principal balance is being amortized over 360 months with a
balloon payment due August 10, 2002.
(4) Interest only payments.
SCHEDULE OF RENTAL RATES AND OCCUPANCY:
Average annual rental rates and occupancy for 1997 and 1996 for each
property:
Average Annual Average Annual
Rental Rates Occupancy
Property 1997 1996 1997 1996
The Pines of Northwest
Crossing Apartments (1) $ 5,249/unit$ 5,116/unit 91% 92%
Panorama Terrace Apartments (2) 7,186/unit 7,057/unit 90% 94%
Forest River Apartments (3) 4,670/unit 4,469/unit 93% 93%
Village Green Apartments (4) 5,161/unit 5,045/unit 92% 93%
Rosemont Crossing Apartments (5) 5,526/unit 5,553/unit 93% 91%
(1) Occupancy at The Pines of Northwest Crossing Apartments decreased and
remained low through 1997 as a result of low interest rates attracting new
home buyers. The General Partner believes that occupancy will improve as a
result of exterior building improvements made to improve the appearance of
the complex and attract new tenants.
(2) Occupancy at Panorama Terrace Apartments decreased due to low interest
rates attracting first time home buyers. Additionally, competition has
increased in the Birmingham area due to the completion of 1,900 new units.
(3) Forest River Apartments occupancy remains low as a result of a weakened
economy in the Gadsden market.
(4) Village Green Apartments low occupancy is attributed to a soft rental
market in the Montgomery area resulting from low interest rates attracting
first time home buyers.
(5) Occupancy at Rosemont Crossing Apartments increased due to the market
becoming stronger and move-in specials attracting new tenants. The efforts
to increase occupancy have; however, resulted in a slight decrease in the
average annual rental rate. Although the San Antonio market is
strengthening, it remains relatively soft due to overconstruction as well
as low interest rates attracting first time home buyers.
As noted under "Item 1. Description of Business", the real estate industry is
highly competitive. All of the properties of the Partnership are subject to
competition from other residential apartment complexes in the area. The
General Partner believes that all of the properties are adequately insured.
The multi-family residential properties' lease terms are for one year or
less. No residential tenant leases 10% or more of the available rental space.
Real estate taxes (dollar amounts in thousands) and rates in 1997 for each
property were:
1997 1997
Billing Rate
The Pines of Northwest Crossing Apartments $ 166 3.08%
Panorama Terrace Apartments 77* 6.26%
Forest River Apartments 46* 4.90%
Village Green Apartments 55* 3.45%
Rosemont Crossing Apartments 65 2.80%
*Due to this property having a tax year different than its fiscal year,
the tax bill does not equal tax expense.
ITEM 3. LEGAL PROCEEDINGS
On March 4, 1994, an employee at The Pines of Northwest Crossing Apartments
("Plaintiff") allegedly sustained personal injuries during the ordinary
course of business. The Plaintiff remained out of work until March 24, 1994.
The Plaintiff alleges that upon his return to work, he was terminated in
retaliation for having filed a worker's compensation claim. The Plaintiff
was seeking actual damages, exemplary damages, attorney's fees and court
costs. A settlement was reached with the plaintiff subsequent to December
31, 1997. A liability has been recorded in the financial statements at
December 31, 1997, in connection with the settlement.
The Partnership is unaware of any other pending or outstanding litigation
that is not of a routine nature. The General Partner believes that all such
pending or outstanding litigation will be resolved without a material adverse
effect upon the business, financial condition, or operations of the
Partnership.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The unit holders of the Partnership did not vote on any matter during the
fourth quarter of 1997.
PART II
ITEM 5. MARKET FOR THE PARTNERSHIP'S COMMON EQUITY AND RELATED SECURITY HOLDER
MATTERS
The Partnership, a publicly-held limited partnership, sold 20,000 Limited
Partnership Units during its offering period through September 12, 1979, and
currently has 1,851 Limited Partners of record and 19,975 units outstanding.
There is no intention to sell additional Limited Partnership Units nor is there
an established market for these units.
No distributions were made during the years ended December 31, 1997 and 1996.
Future cash distributions will be dependent on the levels of net cash generated
from operations, refinancings, property sales, and the availability of cash
reserves.
ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
This item should be read in conjunction with the consolidated financial
statements and other items contained elsewhere in this report. Operating
expenses also increased due to an increase in maintenance expense resulting from
exterior building improvements to repair the exterior siding and balconies at
the Pines of Northwest Crossing.
RESULTS OF OPERATIONS
The Partnership's net loss for the year ended December 31, 1997, was
approximately $971,000 versus a net loss of approximately $912,000 for the year
ended December 31, 1996. The Partnership's net loss before extraordinary item
for the years ended December 31, 1997 and 1996, were $971,000 and $739,000,
respectively. The increase in net loss before extraordinary loss on early
extinguishment of debt is due to an increase in operating and depreciation
expenses. Operating expenses increased primarily due to increased rental
incentives and advertising in an effort to increase occupancy at the
Partnership's investment properties. Depreciation expense increased due to the
addition of depreciable assets throughout 1997. Partially offsetting these
increased expenses were increases in rental revenue and other income, and a
decrease in interest expenses. Although occupancy was stable or declining at
The Pines of Northwest Crossing Apartments, Panorama Terrace Apartment, Forest
River Apartments, and Village Green Apartments, rental revenue increased as a
result of an increase in rental rates at all of these investment properties.
Other income increased for the year ended December 31, 1997, primarily as a
result of more aggressive collections of fees from the tenants at Rosemont
Crossing Apartments, Forest River Apartments and Village Green Apartments.
Interest expense decreased due to the refinancing of the mortgage note secured
by Village Green Apartments during the year ended December 31, 1996 (see "Note
B"). The new mortgage indebtedness, which carries a stated interest rate of
7.33%, replaced previous mortgage indebtedness which carried a stated interest
rate of 9.875%.
The Partnership recognized an extraordinary loss on early extinguishment of debt
for the year ended December 31, 1996, of approximately $173,000. This loss was
the result of the refinancing of Village Green Apartments in 1996. The
Partnership paid prepayment penalties of $122,000 and wrote off amortized loan
costs of approximately $51,000.
Included in operating expenses for the year ended December 31, 1997, was
approximately $369,000 of major repairs and maintenance comprised mainly of
exterior building improvements, major landscaping, exterior painting, window
treatments and parking lot repairs. Included in operating expenses for the year
ended December 31, 1996, was approximately $379,000 of major repairs and
maintenance comprised mainly of parking lot repairs, major landscaping, interior
and exterior building improvements and exterior painting.
As part of the ongoing business plan of the Partnership, the General Partner
monitors the rental market environment of each of its investment properties to
assess the feasibility of increasing rents, maintaining or increasing occupancy
levels and protecting the Partnership from increases in expenses. As part of
this plan, the General Partner attempts to protect the Partnership from the
burden of inflation-related increases in expenses by increasing rents and
maintaining a high overall occupancy level. However, due to changing market
conditions, which can result in the use of rental concessions and rental
reductions to offset softening market conditions, there is no guarantee that the
General Partner will be able to sustain such a plan.
CAPITAL RESOURCES AND LIQUIDITY
At December 31, 1997, the Partnership held cash and cash equivalents of
approximately $683,000, compared to approximately $877,000 at December 31, 1996.
For the year ended December 31, 1997, net cash decreased approximately $194,000.
Net cash increased approximately $426,000 for the year ended December 31, 1996.
Net cash provided by operating activities decreased due to an increase in other
assets and a decrease in accrued taxes. The increase in other assets was due to
an increase in prepaid expenses while the decrease in accrued taxes was due to
the timing of payments. Net cash used in investing activities decreased as a
result of fewer property improvements and replacements made in 1997, compared to
1996. Net cash used in financing activities during 1997 resulted primarily from
payments on mortgage notes payable. Net cash provided by financing activities
during 1996 resulted from the net proceeds received from the refinancing in 1996
of Village Green Apartments offset, in part, by the repayment of the mortgage
debt that was refinanced, payment of associated loan costs and the prepayment
penalty.
The Partnership's primary source of cash is from the operations of its
properties and from financing placed on such properties. Cash from these
sources is utilized for property operations, capital improvements, and/or
repayment of debt. The sufficiency of existing liquid assets to meet future
liquidity and capital expenditure requirements is directly related to the level
of capital expenditures required at the various properties to adequately
maintain the physical assets and other operating needs of the Partnership. Such
assets are currently thought to be sufficient for any near-term needs of the
Partnership. The mortgage indebtedness of $19,768,000, net of discount, is
amortized over varying periods with required balloon payments of $18,258,000
from August 2002 to November 2003, at which time the properties will either be
refinanced or sold. In November 1996, the Partnership refinanced the mortgage
debt secured by Village Green Apartments. The new loan had a principal amount
of $4,900,000 and has a maturity date of November 1, 2003. This note carries
an interest rate of 7.33% per annum. Future cash distributions will depend on
the levels of cash generated from operations, property sales and the
availability of cash reserves. No cash distributions were paid in 1997 or 1996.
YEAR 2000
The Partnership is dependent upon the General Partner and Insignia for
management and administrative services. Insignia has completed an assessment
and will have to modify or replace portions of its software so that its computer
systems will function properly with respect to dates in the year 2000 and
thereafter (the "Year 2000 Issue"). The project is estimated to be completed
not later than December 31, 1998, which is prior to any anticipated impact on
its operating systems. The General Partner believes that with modifications to
existing software and conversions to new software, the Year 2000 Issue will not
pose significant operational problems for its computer systems. However, if such
modifications and conversions are not made, or are not completed timely, the
Year 2000 Issue could have a material impact on the operations of the
Partnership.
OTHER
Certain items discussed in this annual report may constitute forward-looking
statements within the meaning of the Private Securities Litigation Reform Act of
1995 (the "Reform Act") and as such may involve known and unknown risks,
uncertainties and other factors which may cause the actual results, performance
or achievements to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements. Such
forward-looking statements speak only as of the date of this annual report. The
Partnership expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements contained
herein to reflect any change in the Partnership's expectations with regard
thereto or any change in events, conditions or circumstances on which any such
statement is based.
ITEM 7. FINANCIAL STATEMENTS
ANGELES PARTNERS IX
LIST OF FINANCIAL STATEMENTS
Report of Independent Auditors
Consolidated Balance Sheet - December 31, 1997
Consolidated Statements of Operations - Years ended December 31, 1997
and 1996
Consolidated Statement of Changes in Partners' Deficit - Years ended
December 31, 1997 and 1996
Consolidated Statements of Cash Flows - Years ended December 31, 1997
and 1996
Notes to Consolidated Financial Statements
Report of Ernst & Young LLP, Independent Auditors
The Partners
Angeles Partners IX
We have audited the accompanying consolidated balance sheet of Angeles Partners
IX as of December 31, 1997, and the related consolidated statements of
operations, changes in partners' deficit and cash flows for each of the two
years in the period ended December 31, 1997. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the
Partnership's management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of Angeles Partners
IX at December 31, 1997, and the consolidated results of its operations and its
cash flows for each of the two years in the period ended December 31, 1997, in
conformity with generally accepted accounting principles.
/S/ ERNST & YOUNG LLP
Greenville, South Carolina
February 25, 1998
ANGELES PARTNERS IX
CONSOLIDATED BALANCE SHEET
(in thousands, except unit data)
December 31, 1997
Assets
Cash and cash equivalents $ 683
Receivables and deposits 389
Restricted escrows 706
Other assets 568
Investment properties (Notes B and E):
Land $ 3,083
Buildings and related personal property 33,777
36,860
Less accumulated depreciation (22,719) 14,141
$ 16,487
Liabilities and Partners' Deficit
Liabilities
Accounts payable $ 298
Tenant security deposits 115
Accrued taxes 224
Other liabilities 233
Mortgage notes payable (Notes B and E) 19,768
Partners' Deficit
General partner $ (217)
Limited partners (19,975 units issued
and outstanding) (3,934) (4,151)
$ 16,487
See Accompanying Notes to Consolidated Financial Statements
ANGELES PARTNERS IX
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except unit data)
Years Ended December 31,
1997 1996
Revenues:
Rental income $ 7,123 $ 7,094
Other income 389 368
Total revenues 7,512 7,462
Expenses:
Operating 4,234 3,993
General and administrative 270 274
Depreciation 1,824 1,717
Interest 1,744 1,808
Property taxes 411 409
Total expenses 8,483 8,201
Loss before extraordinary item (971) (739)
Extraordinary item - loss on early
extinguishment of debt (Note F) -- (173)
Net loss $ (971) $ (912)
Net loss allocated to
general partner (1%) $ (10) $ (9)
Net loss allocated to
limited partners (99%) (961) (903)
Net loss $ (971) $ (912)
Per limited partnership unit:
Loss before extraordinary item $(48.11) $(36.63)
Extraordinary item -- (8.57)
Net loss $(48.11) $(45.20)
See Accompanying Notes to Consolidated Financial Statements
ANGELES PARTNERS IX
CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' DEFICIT
(in thousands, except unit data)
Limited
Partnership General Limited
Units Partner Partners Total
Original capital contributions 20,000 $ 1 $20,000 $ 20,001
Partners' deficit at
December 31, 1995 19,975 $ (198) $(2,070) $ (2,268)
Net loss for the year ended
December 31, 1996 -- (9) (903) (912)
Partners' deficit at
December 31, 1996 19,975 (207) (2,973) (3,180)
Net loss for the year ended
December 31, 1997 -- (10) (961) (971)
Partners' deficit at
December 31, 1997 19,975 $ (217) $(3,934) $ (4,151)
See Accompanying Notes to Consolidated Financial Statements
ANGELES PARTNERS IX
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
<TABLE>
<CAPTION>
Years Ended December 31,
1997 1996
<S> <C> <C>
Cash flows from operating activities:
Net loss $ (971) $ (912)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation 1,824 1,717
Amortization of discounts and loan costs 113 120
Extraordinary loss on early extinguishment of debt -- 173
Change in accounts:
Receivables and deposits 92 (42)
Other assets (48) (7)
Accounts payable 40 46
Tenant security deposit liabilities (13) (46)
Accrued taxes (105) 90
Other liabilities 42 (61)
Net cash provided by operating activities 974 1,078
Cash flows from investing activities:
Property improvements and replacements (807) (1,062)
Deposits to restricted escrows, net (126) (115)
Net cash used in investing activities (933) (1,177)
Cash flows from financing activities:
Prepayment penalty -- (122)
Proceeds from mortgage notes payable -- 9,800
Repayments of mortgage notes payable -- (8,788)
Payments on mortgage notes payable (227) (223)
Loan costs (8) (142)
Net cash (used in) provided by
financing activities (235) 525
Net (decrease) increase in cash and cash equivalents (194) 426
Cash and cash equivalents at beginning of year 877 451
Cash and cash equivalents at end of year $ 683 $ 877
Supplemental disclosure of cash flow information:
Cash paid for interest $ 1,634 $ 1,688
<FN>
See accompanying Notes to Consolidated Financial Statements
</FN>
</TABLE>
ANGELES PARTNERS IX
Notes to Consolidated Financial Statements
December 31, 1997
NOTE A - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
Organization: Angeles Partners IX (the "Partnership" or "Registrant") is a
California limited partnership organized on September 12, 1979, to acquire and
operate residential properties. The Partnership's general partner is Angeles
Realty Corporation ("ARC" or the "General Partner"), which is a wholly-owned
subsidiary of MAE GP Corporation ("MAE GP"), an affiliate of Insignia Financial
Group, Inc. ("Insignia"). Effective 25, 1998, MAE GP was merged into Insignia
Properties Trust ("IPT"), which is an affiliate of Insignia. Thus the General
Partner is a wholly-owned subsidiary of IPT. As of December 31, 1997, the
Partnership operates five residential properties located in or near major urban
areas in the United States.
Principles of Consolidation: The consolidated financial statements of the
Partnership include its 99% limited partnership interest in Houston Pines, Ltd.
The Partnership may remove the General Partner of Houston Pines; therefore, the
partnership is controlled and consolidated by the Partnership. All significant
interpartnership balances have been eliminated. Minority interest is immaterial
and not shown separately in the financial statements.
Allocations and Distributions to Partners: Net income and losses (excluding
those arising from the occurrence of sales or dispositions) of the Partnership
will be allocated 1% to the General Partner and 99% to the Limited Partners on
an annual basis.
Except as discussed below, the Partnership will allocate all distributions 1% to
the General Partner and 99% to the Limited Partners.
Upon the sale or other disposition, or refinancing, of any asset of the
Partnership and in connection with the dissolution of the Partnership, the
Distributable Net Proceeds, if any, thereof which the General Partner determines
are not required for support of the operations of the Partnership will be
distributed to the General Partner and the Limited Partners in proportion to
their interests in the Partnership until all Limited Partners have received
distributions from the Partnership equal to the amount of their original
contributions to the Partnership and a cumulative return of 10% per annum
(simple interest) on the Limited Partners' adjusted capital investment, as
defined in the Agreement. Thereafter, 14% of such proceeds will be distributed
to the General Partner and the remaining 86% of such proceeds will be
distributed 1% to the General Partner and 99% to the Limited Partners.
Depreciation: Depreciation is computed using the straight-line and accelerated
methods over the estimated lives of the investment properties and related
personal property. For federal income tax purposes, the accelerated cost
recovery method is used (1) for real property over 18 years for additions after
March 15, 1984, and before May 9, 1985, and 19 years for additions after May 8,
1985, and before January 1, 1987, and (2) for personal property over 5 years for
additions prior to January 1, 1987. As a result of the Tax Reform Act of 1986,
for additions after December 31, 1986, the alternative depreciation system is
used for depreciation of (1) real property additions over 40 years, and (2)
personal property additions over 6-20 years.
Cash and Cash Equivalents: Cash and cash equivalents include cash on hand and
in banks, money market funds and certificates of deposit with original
maturities of less than ninety days. At certain times, the amount of cash
deposited at a bank may exceed the limit on insured deposits.
Tenant Security Deposits: The Partnership requires security deposits from all
apartment tenants for the duration of the lease and such deposits are included
in receivables and deposits. The security deposits are refunded when the tenant
vacates the apartment, provided the tenant has not damaged the space and is
current on rental payments.
Loan Costs: Loan costs of approximately $838,000 are included in "Other assets"
in the accompanying balance sheet and are being amortized on a straight-line
basis over the life of the related loans. At December 31, 1997, accumulated
amortization is approximately $350,000.
RESTRICTED ESCROWS:
Capital Improvement Reserves - At the time of the refinancing of Forest River
Apartments, Rosemont Crossing Apartments, and The Pines of Northwest Crossing
Apartments' mortgage notes payable in 1993, $997,000 of the proceeds were
designated for "capital improvement escrows" for certain capital improvements.
As of December 31, 1997, the scheduled property improvements have been made, and
a refund has been requested for the remaining escrow balance of approximately
$12,000.
At the time of the refinancing of Village Green Apartments mortgage note payable
in 1996, $251,000 of the proceeds were designated for "capital improvement
escrow" for certain capital improvements. At December 31, 1997, the balance in
this escrow was approximately $255,000, which includes interest earned on these
funds.
Reserve Account - In addition to the 1993 establishment of Capital Improvement
Escrows, general Reserve Accounts of $283,000 were established with the
refinancing proceeds for the refinanced properties. These funds were
established to cover necessary repairs and replacements of existing
improvements, debt service, out-of-pocket expenses incurred for ordinary and
necessary administrative tasks, and payment of real property taxes and insurance
premiums. The Partnership is required to deposit net operating income (as
defined in the mortgage note) from the refinanced properties to the reserve
accounts until the reserve accounts equal $400 per apartment unit, or $351,000
in total. At December 31, 1997, the balance in these accounts was approximately
$321,000.
Replacement Reserve Escrow - In addition to the above escrows, Village Green
Apartments maintains a replacement reserve escrow to fund replacement,
refurbishment or repair of improvements to the property pursuant to the mortgage
note documents. The property is required to deposit $4,000 per month until the
escrow balance reaches $126,000. As of December 31, 1997, the balance in this
account is approximately $117,000.
Investment Properties: Investment properties are stated at cost. Acquisition
fees are capitalized as a cost of real estate. The Partnership records
impairment losses on long-lived assets used in operations when events and
circumstances indicate that the assets might be impaired and the undiscounted
cash flows estimated to be generated by those assets are less than the carrying
amounts of those assets. For the years ended December 31, 1997 and 1996, no
adjustments for impairment of value were necessary.
Leases: The Partnership generally leases apartment units for twelve-month terms
or less.
Fair Value: The Partnership believes that the carrying amount of its financial
instruments (except for long-term debt) approximates their fair value due to the
short term maturity of these instruments. The fair value of the Partnership's
long term debt, after discounting the scheduled loan payments based on estimated
borrowing rates currently available to the Partnership, approximates its
carrying value.
Advertising Costs: Advertising costs of approximately $157,000 and $139,000,
for the years ended December 31, 1997 and 1996, respectively, are charged to
expense as incurred and are included in "Operating expenses" in the accompanying
statements of operations.
Use of Estimates: The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the amounts reported in the financial statements and
accompanying notes. Actual results could differ from those estimates.
Reclassifications: Certain reclassifications have been made to the 1996
balances to conform to the 1997 presentation.
NOTE B - MORTGAGE NOTES PAYABLE
The principle terms of mortgage notes payable are as follows (dollar amounts in
thousands):
<TABLE>
<CAPTION>
Principal Monthly Principal
Balance At Payment Stated Balance
December 31, Including Interest Maturity Due At
Property 1997 Interest Rate Date Maturity
<S> <C> <C> <C> <C> <C>
The Pines of Northwest
Crossing Apartments
1st mortgage $ 4,813 $ 37 7.83% 10/15/03 $ 4,338
2nd mortgage (1) 156 1 7.83% 10/15/03 156
Panorama Terrace Apartments
1st mortgage 3,818 35 10.13% 08/10/02 3,590
Forest River Apartments
1st mortgage 3,256 25 7.83% 10/15/03 2,935
2nd mortgage (1) 106 1 7.83% 10/15/03 106
Village Green Apartments
1st mortgage 4,849 34 7.33% 11/01/03 4,489
Rosemont Crossing
Apartments
1st mortgage 2,831 22 7.83% 10/15/03 2,552
2nd mortgage (1) 92 1 7.83% 10/15/03 92
19,921 $ 156 $18,258
Less unamortized
discounts (2) (153)
$ 19,768
<FN>
(1) Interest only payments.
(2) The Partnership exercised an interest rate buy-down option for the Pines of
Northwest Crossing Apartments, Forest River Apartments and Rosemont
Crossing Apartments when the debt was refinanced, reducing the stated rate
from 8.13% to 7.83%. The fee for the interest rate reduction amounted to
$231,000 and is being amortized as a mortgage discount on the interest
method over the life of the related loans. The unamortized discount fee is
reflected as a reduction of the mortgage notes payable and increases the
effective rate of the debt to 8.13%.
</FN>
</TABLE>
In July 1996, the General Partner refinanced the mortgage debt secured by
Village Green Apartments. The bridge loan, in the principal amount of
$4,900,000, matured in September 1996. The Partnership exercised an option to
extend the maturity date to November 1996. On November 1, 1996, the Partnership
closed on the long term mortgage debt secured by Village Green Apartments. The
new loan had a principal amount of $4,900,000 and has a maturity date of
November 1, 2003. This note carries an interest rate of 7.33% per annum.
The mortgage notes payable are nonrecourse and are secured by pledge of the
Partnership's rental properties and by pledge of revenues from the respective
rental properties. Certain of the notes impose prepayment penalties if repaid
prior to maturity.
Scheduled principal payments of mortgage notes payable subsequent to December
31, 1997, are as follows:(in thousands)
1998 $ 246
1999 266
2000 289
2001 313
2002 3,904
Thereafter 14,903
$ 19,921
NOTE C - INCOME TAXES
Taxable income or loss of the Partnership is reported in the income tax returns
of its partners. Accordingly, no provision for income taxes is made in the
financial statements of the Partnership.
The following is a reconciliation of reported net loss and Federal taxable loss:
(in thousands)
1997 1996
Net loss as reported $ (971) $ (912)
Add (deduct):
Depreciation differences 787 747
Unearned income 40 (20)
Discounts on mortgage notes payable (2) (3)
Other 45 16
Federal taxable loss $ (101) $ (172)
Federal taxable loss per
limited partnership unit $ (5.01) $ (8.52)
The following is a reconciliation at December 31, 1997, between the
Partnership's reported amounts and Federal tax basis of net assets and
liabilities: (in thousands)
Net deficit as reported $ (4,151)
Land and buildings 5,614
Accumulated depreciation (2,958)
Syndication and distribution costs 2,036
Other 160
Net assets - Federal tax basis $ 701
NOTE D - TRANSACTIONS WITH AFFILIATED PARTIES
The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all partnership activities.
The Partnership Agreement provides for certain payments to affiliates for
services and as reimbursement of certain expenses incurred by affiliates on
behalf of the Partnership.
The following amounts were paid to the General Partner and affiliates in 1997
and 1996: (in thousands)
1997 1996
Property management fees (included
in operating expenses) $ 373 $ 372
Reimbursement of services (included
in investment properties, operating
expenses and general and administrative
expenses) 208 232
Included in "Reimbursement of services of affiliates" is approximately $24,000
and approximately $25,000 for construction oversight reimbursements in 1997 and
1996, respectively.
A director of Insignia Financial Group, Inc., is affiliated with a professional
legal association that received fees of approximately $12,000 in connection with
the refinancing of Village Green Apartments in 1996.
For the period from January 1, 1996, to August 31, 1997, the Partnership insured
its properties under a master policy through an agency and insurer unaffiliated
with the General Partner. An affiliate of the General Partner acquired, in the
acquisition of a business, certain financial obligations from an insurance
agency which was later acquired by the agent who placed the master policy. The
agent assumed the financial obligations to the affiliate of the General Partner
who receives payment on these obligations from the agent. The amount of the
Partnership's insurance premiums that accrued to the benefit of the affiliate of
the General Partner by virtue of the agent's obligations was not significant.
NOTE E - INVESTMENT PROPERTIES AND ACCUMULATED DEPRECIATION
(dollar amounts in thousands)
Initial Cost
To Partnership
Cost
Buildings Capitalized
and Related (Removed)
Personal Subsequent to
Description Encumbrances Land Property Acquisition
The Pines of Northwest
Crossing Apartments $ 4,969 $ 1,641 $ 7,399 $ 2,016
Panorama Terrace Apartments 3,818 473 6,262 1,746
Forest River Apartments 3,362 123 4,189 662
Village Green Apartments 4,849 409 5,786 1,819
Rosemont Crossing Apts. 2,923 437 3,933 (35)
Totals $ 19,921 $ 3,083 $ 27,569 $ 6,208
<TABLE>
<CAPTION>
Gross Amount at Which Carried
At December 31, 1997
Buildings
And Related
Personal Accumulated Date Depreciable
Description Land Property Total Depreciation Acquired Life-Years
<S> <C> <C> <C> <C> <C> <C>
The Pines of Northwest
Crossing Apartments $ 1,641 $ 9,415 $ 11,056 $ 6,424 05/30/80 5-25
Panorama Terrace Apartments 473 8,008 8,481 5,414 06/30/80 5-25
Forest River Apartments 123 4,851 4,974 3,398 12/29/80 5-25
Village Green Apartments 409 7,605 8,014 5,346 12/31/80 5-25
Rosemont Crossing Apartments 437 3,898 4,335 2,137 12/31/80 5-19
Totals $ 3,083 $ 33,777 $ 36,860 $ 22,719
</TABLE>
Reconciliation of "Investment Properties and Accumulated Depreciation":
Years Ended December 31,
1997 1996
Investment Properties
Balance at beginning of year $ 36,053 $ 34,991
Property improvements 807 1,062
Balance at end of year $ 36,860 $ 36,053
Accumulated Depreciation
Balance at beginning of year $ 20,895 $ 19,178
Additions charged to expense 1,824 1,717
Balance at end of year $ 22,719 $ 20,895
The aggregate cost of the investment property for Federal income tax purposes at
December 31, 1997 and 1996, is $42,474,000 and $41,667,000. The accumulated
depreciation taken for Federal income tax purposes at December 31, 1997 and
1996, is $25,677,000 and $24,641,000.
NOTE F - EXTINGUISHMENT OF DEBT
An extraordinary loss of approximately $173,000 for the year ended December 31,
1996, was recognized as a result of the refinancing of the Village Green
Apartments' mortgage note. Approximately $122,000 of this loss related to pre-
payment penalties on the previous mortgage and the remainder of the loss, or
approximately $51,000 was due to the write-off of unamortized loan costs.
NOTE G - SUBSEQUENT EVENT
On March 4, 1994, an employee at The Pines of Northwest Crossing Apartments
("Plaintiff") allegedly sustained personal injuries during the ordinary course
of business. The Plaintiff remained out of work until March 24, 1994. The
Plaintiff alleges that upon his return to work, he was terminated in retaliation
for having filed a worker's compensation claim. The Plaintiff was seeking
actual damages, exemplary damages, attorney's fees and court costs. A
settlement of approximately $42,000 was reached with the Plaintiff subsequent to
December 31, 1997. A liability has been recorded in the accompanying financial
statements at December 31, 1997 in connection with this settlement.
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANT ON ACCOUNTING AND
FINANCIAL DISCLOSURES
There were no disagreements with Ernst & Young LLP regarding the 1997 or 1996
audits of the Partnership's financial statements.
PART III
ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT
The Registrant has no officers or directors. The names of the directors and
executive officers of Angeles Realty Corporation ("ARC" or the "General
Partner"), the Partnership's general partner their ages and the nature of all
positions with ARC presently held by them are as follows:
Name Age Position
Carroll D. Vinson 57 President and Director
Robert D. Long, Jr. 30 Vice President and Chief
Accounting Officer
William H. Jarrard, Jr. 51 Vice President
Daniel M. LeBey 32 Secretary
Kelley M. Buechler 40 Assistant Secretary
Carroll D. Vinson has been President and Director of the Managing General
Partner and President of Metropolitan Asset Enhancement, L.P. ("MAE"), an
affiliate of Insignia, and subsidiaries since August 1994. He has acted as Chief
Operating Officer of Insignia Properties Trust ("IPT"), parent of the General
Partner, since May 1997. During 1993 to August 1994, Mr. Vinson was affiliated
with Crisp, Hughes & Co. (regional CPA firm) and engaged in various other
investment and consulting activities which included portfolio acquisitions,
asset dispositions, debt restructurings and financial reporting. Briefly, in
early 1993, Mr. Vinson served as President and Chief Executive Officer of
Angeles Corporation, a real estate investment firm. From 1991 to 1993, Mr.
Vinson was employed by Insignia in various capacities including Managing
Director - President during 1991.
Robert D. Long, Jr. has been Vice President of the General Partner since January
1998. Mr. Long MAE in September 1993. Since 1994 he has acted as Vice President
and Chief Accounting Officer of the MAE subsidiaries. Mr. Long was an
accountant for Insignia until joining MAE in 1993. Prior to joining Insignia,
Mr. Long was an auditor for the State of Tennessee and was associated with the
accounting firm of Harsman Lewis and Associates.
William H. Jarrard, Jr. has been Vice President of the General Partner since
December 1992. He has acted as Senior Vice President of IPT since May 1997.
Mr. Jarrard previously acted as Managing Director - Partnership Administration
of Insignia from January 1991 through September 1997 and served as Managing
Director - Partnership Administration and Asset Management from July 1994 until
January 1996.
Daniel M. LeBey has been Secretary of the General Partner since January 29, 1998
and Insignia's Assistant Secretary since April 30, 1997. Since July 1996 he has
also served as Insignia's Associate General Counsel. From September 1992 until
June 1996, Mr. LeBey was an attorney with the law firm of Alston & Bird LLP,
Atlanta, Georgia.
Kelley M. Buechler has been Assistant Secretary of the General Partner since
December 1992 and Assistant Secretary of Insignia since 1991.
ITEM 10. EXECUTIVE COMPENSATION
No direct form of compensation or remuneration was paid by the Partnership to
any officer or director of ARC. The Partnership has no plan, nor does the
Partnership presently propose a plan, which will result in any remuneration
being paid to any officer or director upon termination of employment. However,
certain fees and other payments have been made to the Partnership's General
Partner and it's affiliates, as described in "Item 12." below.
ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
As of December 31, 1997, no person owned of record more than 5% of Limited
Partnership Units of the Partnership nor was any person known by the Partnership
to own of record and beneficially, or beneficially only, more than 5% of such
securities.
The Partnership knows of no contractual arrangements, the operation of the terms
of which may at a subsequent date result in a change in control of the
Partnership, except for: Article 12.1 of the Agreement, which provide that upon
a vote of the Limited Partners holding more than 50% of the then outstanding
Limited Partnership Units the General Partner may be expelled from the
Partnership upon 90 days written notice. In the event that a successor general
partner has been elected by Limited Partners holding more than 50% of the then
outstanding Limited Partnership Units and if said Limited Partners elect to
continue the business of the Partnership, the Partnership is required to pay in
cash to the expelled General Partner an amount equal to the accrued and unpaid
management fee described in Article 10 of the Agreement and to purchase the
General Partner's interest in the Partnership on the effective date of the
expulsion, which shall be an amount equal to the difference between (i) the
balance of the General Partner's capital account and (ii) the fair market value
of the share of Distributable Net Proceeds to which the General Partner would be
entitled. Such determination of the fair market value of the share of
Distributable Net Proceeds is defined in Article 12.2(b) of the Agreement.
ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The Partnership has no employees and is dependent on the General Partner and its
affiliates for the management and administration of all Partnership activities.
The Partnership Agreement provides for certain payments to affiliates for
services and as reimbursement of certain expenses incurred by affiliates on
behalf of the Partnership.
The following amounts were paid to the General Partner and affiliates in 1997
and 1996: (in thousands)
1997 1996
Property management fees $ 373 $ 372
Reimbursement of services 208 232
Included in "Reimbursement of services of affiliates" is approximately $24,000
and approximately $25,000 for construction oversight reimbursements in 1997 and
1996, respectively.
A director of Insignia Financial Group, Inc., is affiliated with a professional
legal association that received fees of approximately $12,000 in connection with
the refinancing of Village Green Apartments in 1996.
For the period from January 1, 1996, to August 31, 1997, the Partnership insured
its properties under a master policy through an agency and insurer unaffiliated
with the General Partner. An affiliate of the General Partner acquired, in the
acquisition of a business, certain financial obligations from an insurance
agency which was later acquired by the agent who placed the master policy. The
agent assumed the financial obligations to the affiliate of the General Partner
who receives payment on these obligations from the agent. The amount of the
Partnership's insurance premiums that accrued to the benefit of the affiliate of
the General Partner by virtue of the agent's obligations was not significant.
PART IV
ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits: See Exhibit Index contained herein.
(b) No reports on Form 8-K were filed during the fourth quarter of 1997.
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the Registrant has
caused this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
ANGELES PARTNERS IX
(A California Limited Partnership)
(Registrant)
By: Angeles Realty Corporation
General Partner
By: /s/Carroll D. Vinson
Carroll D. Vinson
President and Director
Date: March 13, 1998
In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities on the date
indicated.
/s/Carroll D. Vinson President and Director
Carroll D. Vinson
/s/Robert D. Long, Jr. Vice President and
Robert D. Long, Jr. Chief Accounting Officer
ANGELES PARTNERS IX
EXHIBIT INDEX
Exhibit Number Description of Exhibit
3.1 Amended Certificate and Agreement of the Limited
Partnership filed in Form S-11 dated December 24,
1984 incorporated herein by reference
10.1 Earnest Money Contract (Phase I and II) - the Pines
of Northwest Crossing Apartments filed in Form 8K
dated May 30, 1980 and incorporated herein by
reference
10.2 Purchase and Sale Agreement with Exhibits - Panorama
Terrace filed in Form 8K dated June 30, 1980 and
incorporated herein by reference
10.3 Purchase and Sale Agreement with Exhibits - Forest
River Apartments filed in Form 8K dated December 29,
1980 and incorporated herein by reference
10.4 Purchase and Sale Agreement with Exhibits - Village
Green Apartments filed in Form 8K dated December 31,
1980 and incorporated herein by reference
10.5 Purchase and Sale Agreement with Exhibits - The
Greens Apartments filed in Form 8K dated December 31,
1980 and incorporated herein by reference
10.6 Promissory Note - Village Green Apartments filed in
Form 10K as Exhibit 10.8 dated March 24, 1989 and
incorporated herein by reference
10.7 Promissory Note and deed of trust modification and
extension agreement - the Pines of Northwest Crossing
Apartments filed in the 1989 Form 10K as Exhibit 10.9
dated January 15, 1991 and incorporated herein by
reference
10.8 Promissory Note and deed of trust modification and
reinstatement agreement - the Greens Apartments filed
in Form 10K as Exhibit 10.10 dated March 28, 1991 and
incorporated herein by reference
10.9 Stock Purchase Agreement dated November 24, 1992
showing the purchase of 100% of the outstanding stock
of Angeles Realty Corporation by IAP GP Corporation,
a subsidiary of MAE GP Corporation, filed in Form 8-K
dated December 31, 1992, which is incorporated herein
by reference
10.10 (a) First Deeds of Trust and Security Agreements dated
September 30, 1993 between Houston Pines, a
California Limited Partnership and Lexington Mortgage
Company, a Virginia Corporation, securing The Pines
of Northwest Crossing.*
(b) Second Deeds of Trust and Security Agreements dated
September 30, 1993 between Houston Pines, a
California Limited Partnership and Lexington Mortgage
Company, a Virginia Corporation, securing The Pines
of Northwest Crossing.*
(c) First Assignments of Leases and Rents dated September
30, 1993 between Houston Pines, a California Limited
Partnership and Lexington Mortgage Company, a
Virginia Corporation, securing The Pines of Northwest
Crossing.*
(d) Second Assignment of Leases and Rents dated September
30, 1993 between Houston Pines, a California Limited
Partnership and Lexington Mortgage Company, a
Virginia Corporation, securing The Pines of Northwest
Crossing.*
(e) First Deeds of Trust Notes dated September 30, 1993
between Houston Pines, a California Limited
Partnership and Lexington Mortgage Company, relating
to The Pines of Northwest Crossing.*
(f) Second Deeds of Trust Notes dated September 30, 1993
between Houston Pines, a California Limited
Partnership and Lexington Mortgage Company, relating
to The Pines of Northwest Crossing.*
*Filed as Exhibits 10.10 (a) through (f),
respectively, in Form 10-KSB for the year ended
December 31, 1993 and incorporated herein by
reference.
10.11 (a) First Deeds of Trust and Security Agreements dated
September 30, 1993 between Houston Pines, a
California Limited Partnership and Lexington Mortgage
Company, a Virginia Corporation, securing The
Greens.**
(b) Second Deeds of Trust and Security Agreements dated
September 30, 1993 between Houston Pines, a
California Limited Partnership and Lexington Mortgage
Company, a Virginia Corporation, securing The
Greens.**
(c) First Assignments of Leases and Rents dated September
30, 1993 between Houston Pines, a California Limited
Partnership and Lexington Mortgage Company, a
Virginia Corporation, securing The Greens.**
(d) Second Assignment of Leases and Rents dated September
30, 1993 between Houston Pines, a California Limited
Partnership and Lexington Mortgage Company, a
Virginia Corporation, securing The Greens.**
(e) First Deeds of Trust Notes dated September 30, 1993
between Houston Pines, a California Limited
Partnership and Lexington Mortgage Company, relating
to The Greens.**
(f) Second Deeds of Trust Notes dated September 30, 1993
between Houston Pines, a California Limited
Partnership and Lexington Mortgage Company, relating
to The Greens.**
**Filed as Exhibits 10.11 (a) through (f),
respectively, in Form 10-KSB for the year ended
December 31, 1993 and incorporated herein by
reference.
10.12 (a) First Deeds of Trust and Security Agreements dated
September 30, 1993 between Houston Pines, a
California Limited Partnership and Lexington Mortgage
Company, a Virginia Corporation, securing Forest
River Apartments.***
(b) Second Deeds of Trust and Security Agreements dated
September 30, 1993 between Houston Pines, a
California Limited Partnership and Lexington Mortgage
Company, a Virginia Corporation, securing Forest
River Apartments.***
(c) First Assignments of Leases and Rents dated September
30, 1993 between Houston Pines, a California Limited
Partnership and Lexington Mortgage Company, a
Virginia Corporation, securing Forest River
Apartments.***
(d) Second Assignment of Leases and Rents dated September
30, 1993 between Houston Pines, a California Limited
Partnership and Lexington Mortgage Company, a
Virginia Corporation, securing Forest River
Apartments.***
(e) First Deeds of Trust Notes dated September 30, 1993
between Houston Pines, a California Limited
Partnership and Lexington Mortgage Company, relating
to Forest River Apartments.***
(f) Second Deeds of Trust Notes dated September 30, 1993
between Houston Pines, a California Limited
Partnership and Lexington Mortgage Company, relating
to Forest River Apartments.***
***Filed as Exhibits 10.12 (a) through (f),
respectively, in Form 10-KSB for the year ended
December 31, 1993, and incorporated herein by
reference.
10.13 Multifamily Mortgage dated November 1, 1996, between
Angeles Partners IX, a California Limited Partnership
and Lehman Brothers Holdings, Inc., relating to
Village Green Apartments.
16 Letter from the Registrant's former independent
accountant regarding its concurrence with the
statements made by the Registrant is incorporated by
reference to the exhibit filed with Form 8-K dated
September 1, 1993.
27 Financial Data Schedule.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from Angeles
Partners IX 1997 Year-End 10-KSB and is qualified in its entirety by reference
to such 10-KSB filing.
</LEGEND>
<CIK> 0000313499
<NAME> ANGELES PARTNERS IX
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<CASH> 683
<SECURITIES> 0
<RECEIVABLES> 389
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0<F1>
<PP&E> 36,860
<DEPRECIATION> (22,719)
<TOTAL-ASSETS> 16,487
<CURRENT-LIABILITIES> 0<F1>
<BONDS> 19,768
0
0
<COMMON> 0
<OTHER-SE> (4,151)
<TOTAL-LIABILITY-AND-EQUITY> 16,487
<SALES> 0
<TOTAL-REVENUES> 7,512
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 8,483
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,744
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (971)
<EPS-PRIMARY> (48.11)<F2>
<EPS-DILUTED> 0
<FN>
<F1>Registrant has an unclassified balance sheet.
<F2>Multiplier is 1.
</FN>
</TABLE>
