<PAGE> 1
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, 2000
COMMISSION FILE NUMBER 33-11194
CENTURY PACIFIC HOUSING FUND-I
A CALIFORNIA LIMITED PARTNERSHIP
I.R.S. EMPLOYER IDENTIFICATION NO. 95-3938971
1925 CENTURY PARK EAST, SUITE 1760, LOS ANGELES, CA 90067
REGISTRANT'S TELEPHONE NUMBER: (310) 208-1888
Securities Registered Pursuant to Section 12(b) or 12(g) of the Act:
NONE
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed with the Commission by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding twelve months (or 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-K is not 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 to Part III of this Form
10-K or any amendment to this Form 10-K (X)
No documents are incorporated into the text by reference.
Yes No X
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Exhibit Index is located on Page 16
Registrant's Prospectus dated April 15, 1987, as amended (the Prospectus) and
the Registrant's Supplement No. 3 dated December 21, 1988 to Prospectus dated
April 15, 1987 (Supplement No. 3) but only to the extent expressly
incorporated by reference in Parts I through IV hereof. Capitalized terms
which are not defined herein have the same meaning as in the Prospectus.
<PAGE> 2
TABLE OF CONTENTS
PART 1
ITEM 1 BUSINESS 3
ITEM 2 PROPERTIES 4
ITEM 3 LEGAL PROCEEDINGS 7
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 7
PART II
ITEM 5 MARKET FOR THE REGISTRANT'S PARTNERSHIP INTERESTS 8
ITEM 6 SELECTED FINANCIAL DATA 8
ITEM 7 MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS 9
ITEM 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 12
ITEM 9 CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS
ON ACCOUNTING AND FINANCIAL DISCLOSURE 12
PART III
ITEM 10 DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT 13
ITEM 11 EXECUTIVE COMPENSATION 14
ITEM 12 PARTNERSHIP INTEREST OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGEMENT 14
ITEM 13 CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS 14
PART IV
ITEM 14 EXHIBITS, FINANCIAL STATEMENT SCHEDULES 15
EXHIBIT INDEX 16
SIGNATURES 17
<PAGE> 3
PART I
ITEM 1. BUSINESS
--------
Century Pacific Housing Fund-I (the Partnership) was formed on October 6,
1986 as a limited partnership under the laws of the State of California to
invest in multi-family housing developments. The Partnership's business is
to invest primarily in other limited partnerships (Operating Partnerships)
that are organized for the purpose of either constructing or acquiring and
operating existing affordable multi-family rental apartments that are
eligible for the Low-Income Housing Tax Credit, or to a lesser extent, the
Rehabilitation Tax Credit, both enacted by the Tax Reform Act of 1986
(sometimes referred to as Credits or Tax Credits). The Partnership invested
in 21 properties (the properties). Each of the properties qualifies for the
Low-Income Housing Tax Credit, and one property, a historic structure,
qualifies for the Rehabilitation Tax Credit. All of these properties receive
one or more forms of assistance from federal, state or local governments. A
summary of the Partnership's objectives and a summary of the Tax Credits are
provided in the Prospectus under "Investment Objectives and Policies" and
"Federal Income Tax Aspects" on pages 45 and 79, respectively, and are
incorporated herein by reference.
In order to stimulate private investment in low and moderate income housing
of the types in which the Partnership has invested, the federal government
has provided investors with significant ownership incentives intended to
reduce the risks and provide investors/owners with certain tax benefits,
limited cash distributions and the possibility of long-term capital gains.
The ownership incentives include interest subsidies, rent subsidies, mortgage
insurance and other measures. However, there remains significant risks
inherent in this type of housing. Long-term investments in real estate limit
the ability of the Partnership to vary its portfolio in response to changing
economic, financial and investment conditions, and such investments are
subject to changes in economic circumstances and housing patterns, rising
operating costs and vacancies, rent controls and collection difficulties,
costs and availability of energy, as well as other factors which normally
affect real estate values. In addition, these properties usually are rent
restricted and are subject to government agency programs which may or may not
require prior consent to transfer ownership.
The Partnership acquired the properties by investing as the limited partner
in Operating Partnerships which own the properties. As a limited partner,
the Partnership's liability for obligations of the Operating Partnerships is
limited to its investment. The Partnership made capital contributions to the
Operating Partnerships in amounts sufficient to pay the Operating
Partnerships' expenses and to reimburse the general partners for their costs
incurred in forming the Operating Partnerships, if any, and acquiring the
properties. For each acquisition, this typically included a cash down
payment (in one or more installments), acceptance of the property's mortgage
indebtedness, and execution of a Purchase Money Note in favor of the seller
of the property. For a summary of the acquisition financing activities for
each property, see the financial information contained under Item 2.
The Partnership's primary objective is to provide Low-Income Housing Tax
Credits to limited partners generally over a 10-year period. Each of the
Partnership's Operating Partnerships has been allocated by the relevant state
tax credit agency an amount of the Low-Income Housing Tax Credit for 10 years
from the date the property is placed-in-service. The required holding period
of the properties is 15 years (the Compliance Period). The properties must
satisfy rent restrictions, tenant income limitations and other requirements
(the Low-Income Housing Tax Credit Requirements) in order to maintain
eligibility for recognition of the Low-Income Housing Tax Credit at all times
during the Compliance Period. Once an Operating Partnership has become
eligible for the Low-Income Housing Tax Credit, it may lose such eligibility
and suffer an event of recapture if its property fails to remain in
compliance with the Low-Income Housing Tax Credit Requirements. To date,
none of the Operating Partnerships have suffered an event of recapture of the
Low-Income Housing Tax Credit.
3
<PAGE> 4
Nineteen of the twenty-one Operating Partnerships receive rental subsidy
payments, including payments under Section 8 of Title II of the Housing and
Community Development Act of 1974 ("Section 8"). The subsidy agreements
expire at various times during and after the 15-year compliance period of the
Operating Partnerships. The United States Department of Housing and Urban
Development ("HUD") has issued a notice implementing provisions to renew
Section 8 contracts expiring during HUD's fiscal year 2000, where requested
by an owner, for an additional one year term at current rent levels. As of
May 31, 2000, twelve of the Operating Partnerships' Section 8 contracts are
due to expire during 2000. The Operating Partnerships have not yet received
HUD's approval of their extension requests. At the present time, the
Partnership cannot reasonably predict legislative initiatives and government
budget negotiations, the outcome of which could result in a reduction in
funds available for the various federal and state administered housing
programs including the Section 8 program. Such changes could adversely
affect the future net operating income and debt structure of any or all
Operating Partnerships receiving such subsidy or similar subsidies.
Employees
---------
The Partnership does not employ any persons. Alternatively, the Partnership
reimburses an affiliate for overhead allocation consisting primarily of
payroll costs.
ITEM 2. PROPERTIES
----------
As of March 31, 2000, the Partnership had acquired equity interests in the
Operating Partnerships set forth in the table below. Each of the properties
acquired by the Operating Partnerships receives benefits under government
assistance programs. The table set forth below summarizes the properties
acquired, and the purchase price, original indebtedness assumed and the
government assistance programs benefitting each property. Further
information concerning these Properties may be found in Supplement No. 3 to
the Prospectus, pages 4 through 66, which information is incorporated herein
by reference and is summarized below.
4
<PAGE> 5
<TABLE>
<CAPTION>
PROPERTY NAME, AVERAGE CASH GOVERNMENT
LOCATION AND OCCUPANCY PURCHASE DOWN PURCHASE MORTGAGE RESIDUAL ASSISTANCE
RENTAL UNITS 2000 PRICE PAYMENT NOTE ASSUMED NOTE PROGRAM
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Century Pacific Housing
Partnership V
(CPHP-V) -
Jaycee Towers
Dayton, OH Section 236
204 residential units 91% $ 5,700,000 $ 400,196 $16,500 $ 3,000,123 $ 2,283,181 Section 8
CPHP - VIII -
Sunset Townhomes
Newton, KS
50 residential units 93% 1,225,000 138,000 -- 751,905 335,095 Section 236
CPHP - XI -
Continental Terrace
Fort Worth, TX Section 236
200 residential units 94% 4,600,000 482,883 -- 2,609,991 1,507,126 Section 8
CPHP - XII
Yale Village
Houston, TX Section 236
180 residential units 96% 5,250,000 530,894 -- 3,075,000 1,644,106 Section 8
CPHP - XIII - Atlantis
Virginia Beach, VA Section 236
208 residential units 100% 6,032,000 801,000 -- 2,678,416 2,552,584 Section 8
CPHP - XIV - Kings Row
Houston, TX Section 236
180 residential units 96% 3,780,000 394,213 -- 1,848,269 1,537,518 Section 8
CPHP - XV -
Castle Gardens
Lubbock, TX Section 236
152 residential units 97% 3,268,000 320,140 -- 1,787,613 1,160,247 Section 8
CPHP - XVI -
Rockwell Villa
Oklahoma City, OK Section 236
60 residential units 90% 1,235,400 129,564 -- 707,207 398,629 Section 8
CPHP - XVII -
London Square Village
Oklahoma City, OK Section 236
200 residential units 93% 4,214,000 414,097 -- 2,820,832 979,071 Section 8
CPHP - XVIII -
Ascension Towers
Memphis, TN
197 residential units 96% 6,727,500 409,094 50,000 3,863,739 2,404,667 Section 236
Coleman Manor
Associates Limited
Partnership Section
Baltimore, MD 221(d)(4)
50 residential units 99% 3,990,000 <F1> 1,625,000 -- 2,365,000 -- Section 8
5
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<CAPTION>
PROPERTY NAME, AVERAGE CASH GOVERNMENT
LOCATION AND OCCUPANCY PURCHASE DOWN PURCHASE MORTGAGE RESIDUAL ASSISTANCE
RENTAL UNITS 2000 PRICE PAYMENT NOTE ASSUMED NOTE PROGRAM
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
CPHP - XX
Holiday Heights
Fort Worth, TX Section 236
100 residential units 99% $ 2,200,000 $ 191,000 $ -- $ 1,120,000 $ 889,000 Section 8
CPHP - XXII
Harriet Tubman
Terrace
Berkeley, CA Section 236
91 residential units 99% 4,732,000 593,000 -- 1,718,171 2,420,829<F2> Section 8
CPHP - I -
Charter House
Dothan, AL
100 residential units 100% 2,146,000 195,000 -- 1,169,000 782,000 Section 236
CPHP II - VOA - Section 236
Sunset Park Section 8
Denver, CO Flexible
242 residential units 96% 6,500,000 956,000 -- 3,081,144 2,462,856 Subsidy Loan
Section
CPHP - III - 221(d)(3)
Highland Park Section 8
Topeka, KS Flexible
200 residential units 93% 6,900,000 939,000 -- 2,024,000 3,937,000 Subsidy Loan
CPHP - IV - Section 236
Forest Glen Estates Section 8
Kansas City, KS Flexible
160 residential units 98% 4,960,000 738,000 -- 2,488,000 1,734,000 Subsidy Loan
CPHP - VI - Edgewood
Danville, IL
150 residential units 74% 3,540,000 680,000 -- 2,359,950 500,050 Section 8
CPHP - VII - Gulfway
Terrace
New Orleans, LA Section 236
206 residential units 88% 5,700,000 683,000 -- 3,301,974 1,715,026 Section 8
Section 236
CPHP - IX - Wind Ridge Section 8
Wichita, KS Flexible
136 residential units 97% 3,500,000 382,000 -- 1,791,936 1,326,064 Subsidy Loan
CPHP - X - Bergen Circle
Springfield, MA Section 236
201 residential units 98% 12,261,000 1,768,000 -- 6,946,158 3,546,842 Section 8
-----------------------------------------------------------------------------------------------------------------------------------
$98,460,900 $12,770,081 $66,500 $51,508,428 $34,115,891
===================================================================================================================================
<FN>
<F1> This amount represents the development cost and not the purchase price.
<F2> This total includes a flex subsidy loan in the amount of $185,000 and the
assumption of a prior residual note in the amount of $200,000.
</TABLE>
6
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ITEM 3. LEGAL PROCEEDINGS
-----------------
As of May 31, 2000, there were no pending legal proceedings against the
Partnership or any Operating Partnership in which it has invested.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
---------------------------------------------------
There were no submissions of matters to a vote of security holders during the
year ended March 31, 2000.
7
<PAGE> 8
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S PARTNERSHIP INTERESTS
-------------------------------------------------
There is at presently no public market for the Units of limited partnership
interests (the Units), and it is unlikely that any public market for the
Units will develop. See the Prospectus under "Transferability of Interests"
on pages 29 and 72 of the Prospectus, which information is incorporated
herein by reference. The number of owners of Units as of May 31, 2000 was
approximately 2,117, holding 22,315 units.
As of May 31, 2000, there were no cash distributions.
ITEM 6. SELECTED FINANCIAL DATA
-----------------------
The following summary of selected financial data should be read in
conjunction with ITEM 14, herein, which also includes a summary of the
Partnership's significant accounting policies.
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
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OPERATIONS 2000 1999 1998 1997 1996
-------------------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Revenues $ 1,000 $ 3,715 $ 1,720 $ 2,100 $ 3,900
Operating Expenses (87,407) (74,653) (72,591) (73,359) (75,053)
Equity in Net Losses of
Operating Partnerships (122,245) (122,202) (134,311) (136,010) (176,789)
------------- ------------- ------------- ------------- -------------
Net Loss $ (208,652) $ (193,140) $ (205,182) $ (207,269) $ (247,942)
============= ============= ============= ============= =============
Net Loss per Unit of
Limited Partnership
Interest $ (9) $ (9) $ (9) $ (9) $ (11)
============= ============= ============= ============= =============
<CAPTION>
March 31,
-------------------------------------------------------------------------------------
FINANCIAL POSITION 2000 1999 1998 1997 1996
-------------------------- ------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
Total Assets $ 26,456 $ 171,816 $ 277,925 $ 410,633 $ 547,704
============= ============= ============= ============= =============
</TABLE>
8
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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
----------------------------------------------------------------
RESULTS OF OPERATIONS
---------------------
The Partnership raised $8,517,000 in equity capital during calendar year 1987
and raised an additional $13,798,000 through April 15, 1988. In late
December 1987, the Partnership invested in eight Operating Partnerships,
which own eight multi-family properties located in various states
representing $45,507,000 of property value. During 1988, the Partnership
invested in an additional 13 properties located in eight states representing
$52,953,900 of property value.
As of March 31, 2000, the Partnership's portfolio consists of 21 properties.
The properties are located in 13 states and contain 3,267 residential units.
The average occupancy level for each property during calendar year 1999 was
approximately 93% and most properties generated sufficient revenue to cover
operating costs, debt service, and the funding of reserves. For a summary of
the combined financial status of the Operating Partnerships and the
properties, see the financial information contained under Item 14.
Liquidity and Capital Resources
-------------------------------
The Partnership is currently experiencing a liquidity problem. Under the
Partnership Agreement, the Partnership is entitled to receive distributions
of surplus cash from the Operating Partnerships which is to provide the funds
necessary for the Partnership to meet its operating costs. To date, the
Operating Partnerships have not provided sufficient cash distributions to
enable the Partnership to meet its current obligations. The Partnership has
also incurred allocated losses from all but one of its Operating Partnerships
to the extent of the Partnership's cash contributions and has a negative
working capital. As a result of the foregoing, the Partnership has been
dependent upon its general partners and affiliates for continued financial
support to meet its operating costs. Management maintains that the general
partners and/or affiliates, though not required to do so, will continue to
fund operations of the Partnership by continuing to fund operating costs and
by deferring payment of allocated overhead expenses and repayment of
operating cash advances.
Management believes the possibility exists that one or several Operating
Partnerships may require additional capital, in addition to that previously
contributed by the Partnership, to sustain operations. In such case, the
source of the required capital needs may be from (i) limited reserves from
the Partnership (which may include distributions received from the Operating
Partnerships that would otherwise be available for distribution to partners),
(ii) debt financing at the Operating Partnership level (which may not be
available), or (iii) additional equity contributions from the general partner
of the Operating Partnerships (which may not be available). There can be no
assurance that any of these sources would be readily available to provide for
possible additional capital requirements which may be necessary to sustain
the operations of the Operating Partnerships. However, the Partnership is
under no obligation to fund operating deficits of the Operating Partnerships
in the form of additional contributions or loans.
Due to the uncertainty of the continuation of the Section 8 program,
management has been forced to look at several options to prepare for the
possible lack of subsidy income to the Operating Partnerships. The loss of
subsidy income to the Operating Partnerships will make it more difficult for
the Operating Partnerships to provide sufficient cash distributions to the
Partnership. Management has identified the courses of action they will take
as a result of the potential changes to the Section 8 program.
The plan that the Operating Partnerships follow will depend on the federal
government's decision to implement the decentralization or elimination of
HUD. HUD's proposed Mark-to-Market approach would create an atmosphere where
the Projects would have to compete for residents in the conventional market.
The following alternatives are listed as plans of action that management
plans to pursue in response the HUD's actions:
9
<PAGE> 10
1) HUD may transfer project control to a local Housing Authority in the
form of block grants. The Housing Authority would determine the
market rents based on the area market. The projects will respond to
the local Housing Authority and follow their procedures and guidelines.
2) The current tenants may receive a housing voucher administered by the
local Housing Authority. The projects will accept vouchers and actively
seek applicants who have vouchers. The projects will also accept non-
voucher residents who will pay rent amounts not to exceed the maximum
rents for persons at 60% of the median income level as in compliance
with Section 42 of the Internal Revenue Code (IRC).
3) If no subsidies or vouchers are given to the projects or the tenants,
all rents will be raised not to exceed the maximum rents for persons at
60% of the median income level and in compliance with Section 42 of the
IRC. With rental rate increases, many of the current residents will be
unable to pay the higher rents, thus forcing them to move from the
projects and to seek housing elsewhere. An increase in the move out rate
will cause a severe cash flow strain to the project. To compensate for
the loss of income and increased vacancy turnover costs, the projects
will require effective marketing, competitive rental rates and possible
upgrading to units and/or common areas to attract qualified applicants
and maintain a low vacancy rate.
4) HUD may restructure loans in order to minimize the monthly costs to the
project and reduce the chances for default. Even with reduced or
eliminated payments, the project will be forced to increase rents in
order to operate.
5) The final option is to buy off the HUD insured loan making the complex
free from HUD's or the local Housing Authority's regulations.
Tax Reform Act of 1986, Omnibus Budget Reconciliation Act of 1987, Technical
----------------------------------------------------------------------------
and Miscellaneous Revenue Act of 1988, Omnibus Budget Reconciliation Act of
---------------------------------------------------------------------------
1989, Omnibus Budget Reconciliation Act of 1990 and all subsequent tax acts.
----------------------------------------------------------------------------
The Partnership is organized as a limited partnership and is a "pass through"
tax entity which does not, itself, pay federal income tax. However, the
partners of the Partnership, who are subject to federal income tax, may be
affected by the Tax Reform Act of 1986, the Omnibus Budget Reconciliation Act
of 1987, the Technical and Miscellaneous Revenue Act of 1988, the Omnibus
Budget Reconciliation Act of 1989, the Omnibus Budget Reconciliation Act of
1990 and all subsequent tax acts (collectively the Tax Acts). The
Partnership will consider the effect of certain aspects of the Tax Acts on
the partners when making investment decisions. The Partnership does not
anticipate that the Tax Acts will have a material adverse impact on the
Partnership's business operations, capital resources, plans or liquidity.
Results of Operations
---------------------
2000 Compared to 1999
---------------------
For the fiscal year ended March 31, 2000, the Partnership recorded a net loss
of approximately $209,000, as compared to a net loss of approximately
$193,000 for the prior fiscal year. The increase in net loss is a result of
an increase in the Partnership's general and administrative expenses.
10
<PAGE> 11
In accordance with the equity method of accounting for limited partnership
interests, the Partnership does not recognize losses from investment
properties when losses exceed the Partnership's equity method basis in these
properties. Twenty of the twenty-one investments have an equity method basis
of zero at March 31, 2000. The Partnership's recorded share of the Operating
Partnerships' losses in the current fiscal period consists of losses of
approximately $122,000 from the Coleman Manor Associates Limited Partnership.
In the prior fiscal year, losses of approximately $122,000 from the
operations of Coleman Manor Associates Limited Partnership were recorded.
In the aggregate, combined rental revenue of the Operating Partnerships
increased by approximately $209,000 during the current calendar year. The
average occupancy level increased in twelve out of the twenty-one Operating
Partnerships. The combined total expenses increased by approximately
$140,000 in the current year primarily due to an increase in other operating
expenses.
1999 Compared to 1998
---------------------
For the fiscal year ended March 31, 1999, the Partnership recorded a net loss
of approximately $193,000, as compared to a net loss of approximately
$205,000 for the prior fiscal year. The decrease in net loss is a direct
result of a decrease in the Partnership's equity in net losses of the
Operating Partnerships.
In accordance with the equity method of accounting for limited partnership
interests, the Partnership does not recognize losses from investment
properties when losses exceed the Partnership's equity method basis in these
properties. Twenty of the twenty-one investments have an equity method basis
of zero at March 31, 1999. The Partnership's recorded share of the Operating
Partnerships' losses in the current fiscal period consists of losses of
approximately $122,000 from the Coleman Manor Associates Limited Partnership.
In the prior fiscal year, losses of approximately $134,000 from the
operations of Coleman Manor Associates Limited Partnership were recorded.
In the aggregate, combined rental revenue of the Operating Partnerships
decrease by approximately $29,000 during the current calendar year. The
average occupancy level decreased in twelve out of the twenty-one Operating
Partnerships. The combined total expenses increased by approximately
$718,000 in the current year primarily due to increases in repair and
maintenance, interest and also depreciation and amortization.
1998 Compared To 1997
---------------------
For the fiscal year ended March 31, 1998, the Partnership recorded a net loss
of approximately $205,000, as compared to a net loss of approximately
$207,000 for the prior fiscal year. The decrease in net loss is a direct
result of a decrease in the Partnership's equity in net losses of the
Operating Partnerships.
In accordance with the equity method of accounting for limited partnership
interests, the Partnership does not recognize losses from investment
properties when losses exceed the Partnership's equity method basis in these
properties. Twenty of the twenty-one investments have an equity method basis
of zero at March 31, 1998. The Partnership's recorded share of the Operating
Partnerships' losses in the current fiscal period consists of losses of
approximately $134,000 from the Coleman Manor Associates Limited Partnership.
In the prior fiscal year, losses of approximately $136,000 from the
operations of Coleman Manor Associates Limited Partnership were recorded.
In the aggregate, combined rental revenue of the Operating Partnerships
increased by approximately $633,000 during the current calendar year. The
combined total expenses increased by approximately $547,000 in the current
year primarily due to increases in utilities, management fees and interest.
11
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Inflation
---------
Inflation is not expected to have a material adverse impact on the
Partnership's operations during its period of ownership of the Properties.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
-------------------------------------------
The financial statements at March 31, 2000 and 1999 together with the report
of the independent auditors thereon are incorporated by reference from the
Registrants Financial Statements on the pages indicated in ITEM 14.
ITEM 9. CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
------------------------------------------------------------
FINANCIAL DISCLOSURE
--------------------
Not applicable.
12
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PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
--------------------------------------------------
The Partnership has no officers or directors. Management of the Partnership
is vested in Irwin Jay Deutch and Century Pacific Capital Corporation (CPCC)
(the general partners). The general partners will involve themselves in the
day-to-day affairs of the Partnership as required to protect the limited
partners' investment and advance the Partnership's tax investment objectives.
Mr. Deutch, the managing general partner, has the overall responsibility for
the preparation and transmittal of periodic reports to the limited partners,
preparation and filing of the Partnership's tax returns with the IRS and the
appropriate state tax authorities, and the preparation and filing of reports
to HUD and other government agencies.
Following is biographical information on Mr. Deutch and the Executive
Officers of CPCC:
IRWIN JAY DEUTCH
Irwin Jay Deutch, age 59, is Chairman of the Board, President, and Chief
Executive Officer of Century Pacific Realty Corporation (CPRC), a general
partner of the Operating Partnerships that own the Properties in which CPHF-I
has invested, and its Affiliates. Mr. Deutch has been involved with
low-income housing investments since 1968. He is the individual general
partner in 62 private limited partnerships and two public limited partnerships
investing in 209 properties, including 196 multifamily properties with 33,700
apartment units, 10 commercial projects, and 3 hotel properties. Fifty-eight
of the 62 private limited partnerships have invested in affordable housing.
In his capacity as general partner and officer of CPRC, he oversees the
management of these partnerships and assumes overall responsibility for the
development, direction, and operation of all affiliated CPRC companies. Mr.
Deutch is recognized as an expert in the field of affordable housing and
frequently addresses professional groups on topics of real estate investment,
syndication, tax law, and the Low-Income Housing Tax Credit program.
Mr. Deutch received a B.B.A. with distinction from the University of Michigan
School of Business Administration in 1962 and a Juris Doctor degree with
honors from the University of Michigan Law School in 1965. He is a member of
the Order of the Coif. Mr. Deutch served in the Honors Program in the Office
of the Chief Counsel of the Internal Revenue Service from 1965 to 1967, where
he was assigned to the Interpretative Division in Washington, D.C. He
attended Georgetown Law Center and received his Master of Laws degree in
taxation in 1967. Mr. Deutch is a member of the State Bars of Michigan and
California, as well as the American, Federal, Los Angeles, and Beverly Hills
Bar Associations.
KEY OFFICERS OF CPCC AND AFFILIATES
ESSIE SAFAIE, age 50, is Chief Financial Officer and Chief Operating Officer
of CPRC. Prior to joining CPRC in 1988, from 1985-88, he was Vice President
and Chief Financial Officer of Sunrise Investments, Inc., a real estate
syndication firm with $450 million of real estate under management. During
this period, Mr. Safaie was also President of an affiliated property
management firm, S&L Property Management, Inc., with over 12,000 residential
units and 800,000 square feet of commercial office space under direct
management. From 1982 to 1985, Mr. Safaie was assistant controller of
Standard Management Company, builders and managers of luxury hotels,
commercial offices and residential units. From 1980-1982, he served as
financial officer of Diamond "M" Drilling Company. Mr. Safaie received a BA
degree in Business Administration from California State University with a
major in accounting.
13
<PAGE> 14
CHARLES L. SCHWENNESEN, age 54, is Vice President of Acquisition Finance for
CPRC and is responsible for financial analysis and "due diligence" reviews of
all properties acquired by CPRC. Prior to joining CPRC in 1987, he was a
consultant to companies which provided investment opportunities through
private placements. From 1984 to 1985, Mr. Schwennesen was Vice President of
Cranston Securities Company and was responsible for the structuring of more
than $30 million of mortgage revenue bond financing for affordable housing
projects. From 1977 to 1984, Mr. Schwennesen was a manager with the
accounting firm of Price Waterhouse where he specialized in providing
auditing and consulting services to publicly held California real estate
development companies involved in the affordable housing industry. Mr.
Schwennesen is a Certified Public Accountant and holds a Masters degree in
Business Administration from the UCLA Graduate School of Management and a
B.A. degree in Mathematics from UCLA.
ITEM 11. EXECUTIVE COMPENSATION
----------------------
The Partnership has no officers or directors. However, in connection with
the operations of the Partnership and the Operating Partnerships, the general
partners and their affiliates will or may receive certain fees, compensation,
income and other payments which are described in the Prospectus under
"Compensation, Fees and Reimbursements" on page 17, the terms of which are
incorporated herein by reference.
During the fiscal years ended March 31, 2000, 1999, and 1998, CPCC, a general
partner of the Partnership, and CPRC, an general partner of the Operating
Partnerships, earned $522,326, $535,596 and $512,139, respectively, in
compensation from the Operating Partnerships and $60,000 was accrued for each
fiscal year for the reimbursement for overhead allocation from Century
Pacific Equity Corporation (CPEC). During fiscal year 2000, the general
partners received no payments from the Operating Partnerships.
ITEM 12. PARTNERSHIP INTEREST OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
---------------------------------------------------------------
MANAGEMENT
----------
No partner in the Partnership owns more than 5% of the total number of
partnership interests outstanding. Irwin J. Deutch, the managing general
partner, holds a one-half percent general partnership interest and C.P.
Westwood Associates holds a one percent limited partnership interest.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
----------------------------------------------
Irwin J. Deutch is the managing general partner of the Partnership, and CPCC
is also a general partner. Irwin J. Deutch is the sole Director and
President of CPCC, and the stock of CPCC is solely owned by the Deutch Family
Trust. Mr. Deutch is also the President, sole Director and the Deutch Family
Trust is the sole stockholder of Century Pacific Realty Corporation (CPRC),
the general partner of the Operating Partnerships that own the properties in
which the Partnership has invested. The general partners were allocated
their proportionate share of the Partnership's tax losses and allocated tax
credits. CPCC and CPRC accrued certain fees for their services in managing
and advising the Partnership and its business. Century Pacific Equity
Corporation (CPEC), an affiliate, provides all the services and materials
necessary for the operation of the Partnership and is reimbursed for actual
costs. These transactions are more particularly set forth in the financial
statements found under ITEM 14.
14
<PAGE> 15
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
---------------------------------------------------------------
(a) Exhibits - See the Exhibit Index at page 15 of this report.
(b) (1) Financial Statements:
Independent Auditors' Reports F-1
Balance Sheet as of March 31, 2000 and 1999 F-2
Statement of Operations for the Years Ended March 31,
2000, 1999, and 1998 F-3
Statement Of Partners' Equity (Deficit) for the
Years Ended March 31, 2000, 1999, and 1998 F-4
Statement of Cash Flows for the Years Ended March 31,
2000, 1999, and 1998 F-5
Notes to Financial Statements F-6
(2) Financial Statement Schedules:
Schedule III - Real Estate and Accumulated Depreciation of
Operating Partnerships in which CPHF-I has
Limited Partnership Interests F-12
Notes to Schedule III - Real Estate and Accumulated
Depreciation of Operating Partnerships in which
CPHF-I has Limited Partnership Interests F-14
Schedule IV - Mortgage Loans on Real Estate of Operating
Partnerships in which CPHF-I has Limited
Partnership Interests F-16
Notes to Schedule IV - Mortgage Loans on Real Estate of
Operating Partnerships in which CPHF-I has
Limited Partnership Interests F-20
All other schedules are omitted because they are not
applicable or the required information is shown in
the financial statements or notes thereto.
15
<PAGE> 16
EXHIBIT INDEX
These exhibits are numbered in accordance with the exhibit table of Item 601
of Regulation S-K.
<TABLE>
<CAPTION>
Exhibit Number Description
-------------------- ----------------------------------------
<C> <S>
11 Omitted - inapplicable
12 Omitted - inapplicable
13 Omitted - inapplicable
16 Omitted - inapplicable
18 Omitted - inapplicable
21 Omitted - inapplicable
23 Omitted - inapplicable
27 Financial Data Schedule
Financial Statements of Coleman Manor
(Equity Investment)
</TABLE>
16
<PAGE> 17
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities and
Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
CENTURY PACIFIC HOUSING FUND - I
By: Irwin Jay Deutch, as Managing
General Partner
Date: __________________________ ____________________________________
and
Century Pacific Capital I Corporation,
as Corporate General Partner and as
Attorney-in-Fact for all Investor
Limited Partners
Date: __________________________ ____________________________________
By: Irwin Jay Deutch, President
17
<PAGE> 18
[letterhead of RBG & CO.]
INDEPENDENT AUDITORS' REPORT
Partners
Century Pacific Housing Fund - I
We have audited the accompanying balance sheet of Century Pacific Housing
Fund - I as of March 31, 2000 and 1999, and the related statements of
operations, partners' equity and cash flows for the years then ended. 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 audit. The Financial statements of Century Pacific Housing
Fund-I for the year ended March 31, 1998 were audited by other auditors,
whose report dated June 16, 1998, included an explanatory paragraph
describing conditions that raised substantial doubt about the Company's
ability to continue as a going concern.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits 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 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 financial position of Century Pacific Housing Fund
- I as of March 31, 2000 and 1999, respectively, and the results of its
operations and its cash flows for the years then ended, in conformity with
generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the
Partnership will continue as a going concern. As discussed in Notes 2, 3, 4
and 5 to the financial statements, the Partnership has suffered recurring
losses from operations and has a net capital deficiency that raises
substantial doubt about its ability to continue as a going concern.
Management's plans regarding these matters also are described in Note 3. The
financial statements do not include any adjustments that might result from
the outcome of this uncertainty.
We have also prepared, from information audited by us, the related financial
statement schedules listed in Item 14(b)(2) as of December 31, 1999 and 1998.
In our opinion the financial statement schedules present fairly, in all
material respects, the information required to be set forth therein.
/s/ Rubin, Brown, Gornstein & Co. LLP
St. Louis, Missouri
May 31, 2000
F-1
<PAGE> 19
<TABLE>
CENTURY PACIFIC HOUSING FUND-1
-------------------------------------------------------------------------------------------------------
BALANCE SHEET
ASSETS
<CAPTION>
MARCH 31,
-----------------------------
2000 1999
-----------------------------
<C> <C>
<S>
Cash $ 5,889 $ 4,889
Receivable from related party (Note 4) 4,934 29,049
Investments in Operating Partnerships (Notes 1 and 5) 15,633 137,878
-------------------------------------------------------------------------------------------------------
$ 26,456 $ 171,816
=======================================================================================================
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
Accounts payable and accrued expenses $ 13,769 $ 15,800
Advance from affiliate (Note 4) 62,455 75,955
Payable to related parties (Note 4) 932,769 853,946
-------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES 1,008,993 945,701
-------------------------------------------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES (NOTE 6) -- --
-------------------------------------------------------------------------------------------------------
PARTNERS' EQUITY (DEFICIT)
General partners (398,373) (394,200)
Limited partners, $1,000 stated value per unit,
50,000 units authorized, 22,315 units issued
and outstanding (Note 4) (584,164) (379,685)
-------------------------------------------------------------------------------------------------------
TOTAL PARTNERS' EQUITY (DEFICIT) (982,537) (773,885)
-------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND PARTNERS' EQUITY (DEFICIT) $ 26,456 $ 171,816
=======================================================================================================
F-2
-------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements.
</TABLE>
<PAGE> 20
<TABLE>
CENTURY PACIFIC HOUSING FUND-1
-------------------------------------------------------------------------------------------------------
STATEMENT OF OPERATIONS
<CAPTION>
FOR THE YEARS ENDED MARCH 31,
-----------------------------------------
2000 1999 1998
-----------------------------------------
<S> <C> <C> <C>
REVENUES
Transfer fees $ 1,000 $ 1,900 $ 1,720
Miscellaneous -- 1,815 --
-------------------------------------------------------------------------------------------------------
TOTAL REVENUES 1,000 3,715 1,720
-------------------------------------------------------------------------------------------------------
EXPENSES
Allocated overhead expenses - affiliate (Note 4) 60,000 60,000 60,000
Other general and administrative 27,407 14,653 12,591
-------------------------------------------------------------------------------------------------------
TOTAL EXPENSES 87,407 74,653 72,591
-------------------------------------------------------------------------------------------------------
LOSS BEFORE EQUITY IN NET LOSSES OF
OPERATING PARTNERSHIPS (86,407) (70,938) (70,871)
EQUITY IN NET LOSSES OF OPERATING
PARTNERSHIPS (NOTE 5) (122,245) (122,202) (134,311)
-------------------------------------------------------------------------------------------------------
NET LOSS $(208,652) $(193,140) $(205,182)
=======================================================================================================
ALLOCATION OF NET LOSS
General partners $ (4,173) $ (3,863) $ (4,104)
Limited partners (204,479) (189,277) (201,078)
-------------------------------------------------------------------------------------------------------
$(208,652) $(193,140) $(205,182)
=======================================================================================================
NET LOSS PER UNIT OF LIMITED PARTNERSHIP
INTEREST (NOTE 1) $ (9) $ (9) $ (9)
=======================================================================================================
AVERAGE NUMBER OF OUTSTANDING UNITS 22,315 22,315 22,315
=======================================================================================================
F-3
-------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements.
</TABLE>
<PAGE> 21
<TABLE>
CENTURY PACIFIC HOUSING FUND-1
--------------------------------------------------------------------------------------------------------
STATEMENT OF PARTNERS' EQUITY
FOR THE YEARS ENDED MARCH 31, 2000, 1999 AND 1998
<CAPTION>
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
------------------------------------------
<S> <C> <C> <C>
PARTNERS' EQUITY (DEFICIT) - MARCH 31, 1997 $(386,233) $ 10,670 $(375,563)
NET LOSS (4,104) (201,078) (205,182)
--------------------------------------------------------------------------------------------------------
PARTNERS' EQUITY (DEFICIT) - MARCH 31, 1998 (390,337) (190,408) (580,745)
NET LOSS (3,863) (189,277) (193,140)
--------------------------------------------------------------------------------------------------------
PARTNERS' EQUITY (DEFICIT) - MARCH 31, 1999 (394,200) (379,685) (773,885)
NET LOSS (4,173) (204,479) (208,652)
--------------------------------------------------------------------------------------------------------
PARTNERS' EQUITY (DEFICIT) - MARCH 31, 2000 $(398,373) $(584,164) $(982,537)
========================================================================================================
PERCENTAGE INTEREST - MARCH 31, 2000 2% 98% 100%
========================================================================================================
F-4
--------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements.
</TABLE>
<PAGE> 22
<TABLE>
CENTURY PACIFIC HOUSING FUND-1
--------------------------------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
<CAPTION>
FOR THE YEARS ENDED MARCH 31,
------------------------------------------
2000 1999 1998
------------------------------------------
<S> <C> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(208,652) $(193,140) $(205,182)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Equity in net losses of Operating Partnerships 122,245 122,202 134,311
(Increase) decrease in receivable from related
parties 24,116 (13,500) --
Increase (decrease) in accounts payable and
accrued expenses (2,032) 5,000 (800)
Increase (decrease) in advance from affiliate (13,500) 13,500 --
Increase in payable to related parties 78,823 68,531 73,274
--------------------------------------------------------------------------------------------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,000 2,593 1,603
--------------------------------------------------------------------------------------------------------
NET INCREASE IN CASH 1,000 2,593 1,603
CASH - BEGINNING OF PERIOD 4,889 2,296 693
--------------------------------------------------------------------------------------------------------
CASH - END OF PERIOD $ 5,889 $ 4,889 $ 2,296
========================================================================================================
F-5
--------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements.
</TABLE>
<PAGE> 23
CENTURY PACIFIC HOUSING FUND-1
------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2000, 1999 AND 1998
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The Partnership maintains its financial records on the tax basis.
Memorandum entries, while not recorded in the records of the
Partnership, have been made in order to prepare the financial statements
in accordance with generally accepted accounting principles.
On August 7, 1991, management of the Partnership changed from a calendar
year end to a fiscal year end of March 31 for financial reporting
purposes. Accordingly, the Partnership's quarterly periods end June 30,
September 30 and December 31. The Operating Partnerships, for financial
reporting purposes, have a calendar year. The Partnership, as well as
the Operating Partnerships, have a calendar year for income tax
purposes.
ESTIMATES AND ASSUMPTIONS
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those
estimates.
INVESTMENTS IN OPERATING PARTNERSHIPS
The Partnership uses the equity method to account for its investment in
the Operating Partnerships in which it has invested (Note 5). Under the
equity method of accounting, the investment is carried at cost and
adjusted for the Partnership's share of the Operating Partnerships'
results of operations and by cash distributions received. Equity in the
loss of each Operating Partnership allocated to the Partnership is not
recognized to the extent that the investment balance would become
negative. Costs paid by the Partnership for organization of the
Operating Partnership as well as direct costs of acquiring properties,
including acquisition fees and reimbursable acquisition expenses paid to
the general partner, have been capitalized as investments in Operating
Partnerships.
INCOME TAXES
No provision has been made for income taxes in the accompanying
financial statements since such taxes and/or the recapture of the
Low-Income Housing Tax Credit benefits received, if any, are the
liability of the individual partners. The Partnership uses the accrual
method of accounting for tax purposes.
F-6
------------------------------------------------------------------------------
<PAGE> 24
CENTURY PACIFIC HOUSING FUND-1
------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
NET LOSS PER UNIT OF LIMITED PARTNERSHIP INTEREST
Net loss per unit of limited partnership interest is calculated based
upon the weighted average number of units of limited partnership
interest (units) outstanding, which is 22,315 for the years ending
March 31, 2000, 1999, and 1998.
2. OPERATIONS
Century Pacific Housing Fund-I, a California limited partnership, (the
Partnership), was formed on October 6, 1986 for the purpose of raising
capital by offering and selling limited partnership interests and then
acquiring limited partnership interests and then acquiring limited
partnership interests in 21 limited partnerships (the Operating
Partnerships), which acquired and operate 21 multi-family residential
apartment properties (the properties).
The general partners of the Partnership are Century Pacific Capital
Corporation, a California corporation (CPCC), and Irwin Jay Deutch, an
individual (collectively, the general partners). The general partners
and affiliates of the general partners (the general partners and
affiliates) have interests in the Partnership and receive compensation
from the Partnership and the Operating Partnerships (Note 3).
The Properties qualify for the Low-Income Housing Tax Credit established
by Section 42 of the Tax Reform Act of 1986 (the Low-Income Housing Tax
Credit) and one property qualifies for Historic Rehabilitation Tax
Credits (collectively the Tax Credits). These properties are leveraged
low-income multi-family residential complexes and receive one or more
forms of assistance from federal, state or local government agencies
(the Government Agencies).
In July 1987, the Partnership began raising capital from sales of
limited partnership interests, at $1,000 per unit, to limited partners.
The Partnership authorized the issuance of a maximum of 50,000
partnership units of which 22,315 were subscribed and issued. The
limited partnership interest offering closed in April 1988.
The Partnership has acquired limited partnership interests ranging from
97% to 99% in the Operating Partnerships, which have invested in rental
property.
F-7
------------------------------------------------------------------------------
<PAGE> 25
CENTURY PACIFIC HOUSING FUND-1
------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
3. REALIZATION OF ASSETS
The accompanying financial statements have been prepared in conformity
with generally accepted accounting principles, which contemplates
continuation of the Partnership as a going concern. The Partnership's
Operating Partnerships have not achieved the operating results required
to provide the Partnership with sufficient cash distributions to fund
the Partnership's administrative costs. Additionally, the Partnership
has incurred allocated losses from all but one of its Operating
Partnerships to the extent of the Partnership's cash contributions. As
a result of the foregoing, the Partnership is dependent upon the general
partners and affiliates for continued financial support.
The auditors' report on thirteen of the Operating Partnerships'
financial statements contained an explanatory paragraph relating to a
going concern issue, of which twelve concerned the expiration of the
Housing Assistance Payment Contract and one concerned recurring losses
of the project. These Operating Partnerships have Housing Assistance
Payment Contracts with the U.S. Department of Housing and Urban
Development (HUD) that are due to expire during 2000. Management has
requested one year extensions for the remaining fifteen Operating
Partnerships, however, as of May 31, 2000, these extensions have not
been granted.
Management maintains that the general partners and affiliates, though
not required to do so, will continue to fund operations by deferring
payment to related parties of allocated overhead expenses, and by
funding any Partnership operating costs. Unpaid allocated overhead
expenses will accrue and become payable when the Operating Partnerships
generate sufficient cash distributions to the Partnership to cover such
expenses. The financial statements do no include any adjustments that
might result from the outcome of this uncertainty.
4. TRANSACTIONS WITH THE GENERAL PARTNERS AND AFFILIATES OF THE
GENERAL PARTNERS
The general partners of the Partnership are CPCC and Irwin Jay Deutch.
The original limited partner of the Partnership is Westwood Associates
which partners are Irwin Jay Deutch and key employees of CPCC. Century
Pacific Placement Corporation (CPPC), an affiliate of the general
partners, served as the broker-dealer-manager for sales of the limited
partnership interests in the Partnership. Century Pacific Realty
Corporation (CPRC), an affiliate of CPCC, is a general partner in each
of the Operating Partnerships.
The general partners have an aggregate one percent interest in the
Partnership, as does the original limited partner. CPRC has a one
percent interest in each of the Operating Partnerships, except for one
Operating Partnership in which it has a one-half percent interest.
F-8
------------------------------------------------------------------------------
<PAGE> 26
CENTURY PACIFIC HOUSING FUND-1
------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
The general partners and affiliates receive compensation and
reimbursement of expenses from the Partnership, as set forth in the
limited partnership agreement, for their services in managing the
Partnership and its business. The general partners and affiliates also
receive compensation and reimbursement of expenses from the Operating
Partnerships. This compensation and reimbursement includes services
provided to the Partnership during its offering stage, acquisition
stage, operational stage, and termination of refinancing stage.
The general partners and affiliates earned the following fees for
services provided to the Partnership and were entitled to reimbursement
for costs incurred by the general partners and affiliates on behalf of
the Partnership and the Operating Partnerships for the years ended
March 31, 2000, 1999 and 1998 as follows:
<TABLE>
<CAPTION>
2000 1999 1998
----------------------------------------
<S> <C> <C> <C>
Fees and reimbursement from the Partnership:
Reimbursement for overhead allocated from
Century Pacific Equity Corporation
(CPEC) $ 60,000 $ 60,000 $ 60,000
--------------------------------------------------------------------------------------------------
Fees and reimbursement from the Operating
Partnerships
Supervisory management fee (CPCC and
CPRC) 152,115 152,115 152,115
Partnership management fee (CPCC and
CPRC) 370,211 383,681 360,024
--------------------------------------------------------------------------------------------------
522,326 535,796 512,139
--------------------------------------------------------------------------------------------------
$582,326 $595,796 $572,139
==================================================================================================
</TABLE>
At March 31, 2000 and 1999, payable to related parties consists of fees
and certain general and administrative costs accrued as payable by the
Partnership to the general partners and affiliates relating to the above
and prior year's amounts totalling $932,769 and $853,946, respectively.
Such fees and allocated costs have been deferred until the Partnership
has sufficient cash to pay them.
Receivable from related party of $4,934 and $29,049 at March 31, 2000
and 1999, respectively, represents cash advances to several of the
Operating Partnerships.
At March 31, 2000 and 1999, CPRC was owed $62,455 and $75,955,
respectively, for non-interest bearing, demand cash advances to the
Partnership.
The general partners may advance funds to the Partnership to fund
operating deficits, but are not obligated to do so. Such advances shall
be evidenced by a promissory note of a term no more than 12 months in
length and at a rate of interest no lower than the prime rate. All such
loans shall be repaid prior to any distributions of net cash flow. At
March 31, 2000 and 1999, the Partnership had no outstanding advances due
to the general partners.
F-9
------------------------------------------------------------------------------
<PAGE> 27
CENTURY PACIFIC HOUSING FUND-1
------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
5. INVESTMENTS IN OPERATING PARTNERSHIPS
At March 31, 2000 and 1999, the Partnership owned limited partnership
interests in 21 Operating Partnerships, each of which has invested in a
multi-family rental property.
Investments in Operating Partnerships consist of the following:
<TABLE>
<CAPTION>
2000 1999
---------------------------------
<S> <C> <C>
Cash contributions to Operating Partnerships
to fund purchase of beneficial interests in
properties $ 15,497,467 $ 15,497,467
Cash contributions to Operating Partnerships
to fund operations 6,150 6,150
Cash distribution from Operating Partnership (6,326) (6,326)
Acquisition and organization costs 3,342,778 3,342,778
Equity in net losses of Operating Partnerships (18,824,436) (18,702,191)
---------------------------------------------------------------------------------------
$ 15,633 $ 137,878
=======================================================================================
</TABLE>
A summary of the combined balance sheet as of December 31, 1999 and 1998
and statements of operations of the aforementioned Operating
Partnerships for the years then ended follows:
<TABLE>
COMBINED BALANCE SHEET
ASSETS
<CAPTION>
1999 1998
----------------------------------
<S> <C> <C>
Cash $ 1,480,035 $ 831,921
Reserve for replacements 2,977,765 2,670,504
Land and buildings 59,866,590 63,317,940
Other assets 3,177,215 3,030,639
----------------------------------------------------------------------------------------
$ 67,501,605 $ 69,851,004
========================================================================================
LIABILITIES AND PARTNERS' DEFICIT
<CAPTION>
1999 1998
----------------------------------
<S> <C> <C>
Notes payable $128,346,523 $123,339,239
Other liabilities 7,829,867 7,239,839
Partners' deficit (68,674,785) (60,728,074)
----------------------------------------------------------------------------------------
$ 67,501,605 $ 69,851,004
========================================================================================
</TABLE>
F-10
------------------------------------------------------------------------------
<PAGE> 28
CENTURY PACIFIC HOUSING FUND-1
------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
<TABLE>
COMBINED STATEMENT OF OPERATIONS
<CAPTION>
1999 1998
---------------------------------
<S> <C> <C>
REVENUES
Rental income $16,667,064 $ 16,457,379
Other income 817,016 413,609
----------------------------------------------------------------------------------------
TOTAL REVENUES 17,484,080 16,870,988
----------------------------------------------------------------------------------------
EXPENSES
Utilities 2,630,077 2,718,177
Repairs and maintenance 4,389,890 4,645,192
Management fees 1,320,288 1,287,155
Other operating expenses 5,492,192 4,848,663
Interest 7,179,043 7,339,635
Depreciation and amortization 4,345,497 4,378,554
----------------------------------------------------------------------------------------
TOTAL EXPENSES 25,356,987 25,217,376
----------------------------------------------------------------------------------------
NET LOSS $(7,872,907) $ (8,346,388)
========================================================================================
ALLOCATION OF LOSS
General partners and other limited partners $(7,715,449) $ (8,179,460)
CPHF-I (157,458) (166,928)
----------------------------------------------------------------------------------------
$(7,872,907) $ (8,346,388)
========================================================================================
</TABLE>
6. COMMITMENTS AND CONTINGENCIES
The rents of the Operating Partnerships, all of which receive rental
subsidy payments, including payments under Section 8 of Title II of the
Housing and Community Development Act of 1974 ("Section 8") are subject
to specific laws, regulations, and agreements with federal and state
agencies. The subsidy agreements expire at various times during and
after the 15-year compliance period of the Operating Partnerships. The
United States Department of Housing and Urban Development ("HUD") has
issued a notice implementing provisions to renew Section 8 contracts
expiring during HUD's fiscal year 2000, where requested by an owner, for
an additional one year term at current rent levels. As of May 31, 2000,
twelve of the Operating Partnerships' Section 8 contracts are due to
expire during 2000. The Operating Partnerships have not yet received
HUD's approval of their extension requests. At the present time, the
Partnership cannot reasonably predict legislative initiatives and
governmental budget negotiations, the outcome of which could result in a
reduction in funds available for the various federal and state
administered housing programs including the Section 8 program. Such
changes could adversely affect the future net operating income and debt
structure of any or all Operating Partnerships receiving such subsidy or
similar subsidies.
F-11
------------------------------------------------------------------------------
<PAGE> 29
<TABLE>
Schedule III
------------
Page 1 of 2
CENTURY PACIFIC HOUSING FUND-I
------------------------------------------------------------------------------------------------------------------------
REAL ESTATE AND ACCUMULATED DEPRECIATION OF OPERATING
PARTNERSHIPS IN WHICH CPHF-I HAS LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 1999
<CAPTION>
INITIAL COST TO COST CAPITALIZED
OPERATING PARTNERSHIP SUBSEQUENT TO ACQUISITION
---------------------------- --------------------------
BUILDINGS AND BUILDINGS AND
DESCRIPTION <F1> ENCUMBRANCES <F2> LAND IMPROVEMENTS LAND IMPROVEMENTS
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Century Pacific Housing
Partnership I (CPHP-I) -
Charter House
Dothan, Alabama $ 2,434,881 $ 179,578 $ 1,918,124 $ -- $ 150,324
CPHP-II - VOA/
Sunset Park, Ltd. -
Sunset Park
Denver, Colorado 9,226,778 803,595 5,696,405 7,305 933,379
CPHP-III -
Highland Park
Topeka, Kansas 11,566,978 434,475 6,465,525 251 469,561
CPHP-IV -
Forest Glen Estates
Kansas City, Missouri 6,463,761 427,519 4,469,134 292 230,903
CPHP-VI -
Edgewood
Danville, Illinois 2,999,347 223,418 3,316,582 -- 418,707
CPHP-VII -
Gulfway Terrace
New Orleans, Louisiana 6,363,343 270,343 5,429,657 237 375,578
CPHP-IX -
Wind Ridge
Wichita, Kansas 4,185,587 169,514 3,330,486 146 842,621
CPHP-X -
Bergen Circle
Springfield, Massachusetts 15,692,629 901,206 11,359,794 -- 1,201,240
CPHP-V -
Jaycee Towers
Dayton, Ohio 8,041,177 599,719 5,096,481 -- 403,012
CPHP-VIII -
Sunset Townhouses
Newton, Kansas 1,435,098 50,259 1,174,741 138 126,009
------------------------------------------------------------------------------------------------------------------------
BALANCE CARRIED
FORWARD $68,409,579 $4,059,626 $48,256,929 $8,369 $5,151,334
------------------------------------------------------------------------------------------------------------------------
<CAPTION>
LIFE UPON
WHICH
GROSS AMOUNT AT WHICH ACCUMULATED DEPRECIATION
CARRIED AT CLOSE OF YEAR DEPRECIATION IN LATEST
-------------------------------------- ------------- INCOME
BUILDINGS AND BUILDINGS AND DATE OF DATE STATEMENT IS
DESCRIPTION <F1> LAND IMPROVEMENTS TOTAL IMPROVEMENTS CONSTRUCTION ACQUIRED COMPUTED
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Century Pacific Housing
Partnership I (CPHP-I) -
Charter House
Dothan, Alabama $ 179,578 $ 2,068,448 $ 2,248,026 $ 914,865 1972 12/87 27.5 years
CPHP-II - VOA/
Sunset Park, Ltd. -
Sunset Park
Denver, Colorado 810,900 6,629,784 7,440,684 2,920,460 1971 12/87 10 - 50 years
CPHP-III -
Highland Park
Topeka, Kansas 434,726 6,935,086 7,369,812 4,027,461 1967 12/87 10 - 40 years
CPHP-IV
Forest Glen Estates
Kansas City, Missouri 427,811 4,700,037 5,127,848 2,363,916 1971 12/87 40 years
CPHP-VI -
Edgewood
Danville, Illinois 223,418 3,735,289 3,958,707 1,580,410 1970 12/87 27.5 years
CPHP-VII -
Gulfway Terrace
New Orleans, Louisiana 270,580 5,805,235 6,075,815 2,852,245 1970 12/87 10 - 40 years
CPHP-IX -
Wind Ridge
Wichita, Kansas 169,660 4,173,107 4,342,767 2,063,105 1969 12/87 10 - 40 years
CPHP-X -
Bergen Circle
Springfield, Massachusetts 901,206 12,561,034 13,462,240 5,725,070 1976 12/87 10 - 40 years
CPHP-V -
JayCee Towers
Dayton, Ohio 599,719 5,499,493 6,099,212 2,242,069 1970 12/88 27.5 years
CPHP-VIII -
Sunset Townhouses
Newton, Kansas 50,397 1,300,750 1,351,147 666,656 1971 8/88 10 - 40 years
---------------------------------------------------------------------------------------------------------------------------------
BALANCE CARRIED
FORWARD $4,067,995 $53,408,263 $57,476,258 $25,356,257
---------------------------------------------------------------------------------------------------------------------------------
See notes to schedule
</TABLE>
F-12
<PAGE> 30
<TABLE>
Schedule III
------------
Page 2 of 2
CENTURY PACIFIC HOUSING FUND-I
------------------------------------------------------------------------------------------------------------------------
REAL ESTATE AND ACCUMULATED DEPRECIATION OF OPERATING
PARTNERSHIPS IN WHICH CPHF-I HAS LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 1999
<CAPTION>
INITIAL COST TO COST CAPITALIZED
OPERATING PARTNERSHIP SUBSEQUENT TO ACQUISITION
---------------------------- --------------------------
BUILDINGS AND BUILDINGS AND
DESCRIPTION <F1> ENCUMBRANCES <F2> LAND IMPROVEMENTS LAND IMPROVEMENTS
------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BALANCE CARRIED
FORWARD $ 68,409,579 $4,059,626 $48,256,929 $ 8,369 $ 5,151,334
CPHP-XI -
Continental Terrace
Fort Worth, Texas 6,020,648 231,946 4,368,054 1,049 706,441
CPHP-XII -
Yale Village
Houston, Texas 8,169,631 299,925 4,950,075 1,364 996,956
CPHP-XIII -
Atlantis
Virginia Beach, Virginia 8,409,691 520,607 5,382,387 2,861 806,887
CPHP-XIV -
Kings Row
Houston, Texas 5,642,156 193,458 3,586,542 947 885,759
CPHP-XV -
Castle Gardens
Lubbock, Texas 4,612,946 161,989 3,106,011 821 681,178
CPHP-XVI -
Rockwell Villa
Oklahoma City, Oklahoma 1,533,328 75,255 1,160,145 1,168 280,455
CPHP-XVII -
London Square Village
Oklahoma City, Oklahoma 4,771,998 203,978 4,009,000 -- 730,084
CPHP-XVIII -
Ascension Towers
Memphis, Tennessee 9,015,291 176,341 6,551,159 -- 806,421
Coleman Manor
Associates Limited
Partnership -
Coleman Manor
Baltimore, Maryland 2,175,463 61,281 3,384,621 -- 165,210
CPHP-XX -
Holiday Heights
Fort Worth, Texas 3,068,922 202,445 1,942,864 -- 193,476
CPHP-XXII -
Harriet Tubman
Terrace - Berkeley,
California 6,516,870 361,275 3,807,339 5,097 436,832
------------------------------------------------------------------------------------------------------------------------
$128,346,523 $6,548,126 $90,505,126 $21,676 $11,841,033
========================================================================================================================
<CAPTION>
LIFE UPON
WHICH
GROSS AMOUNT AT WHICH ACCUMULATED DEPRECIATION
CARRIED AT CLOSE OF YEAR DEPRECIATION IN LATEST
-------------------------------------- ------------- INCOME
BUILDINGS AND BUILDINGS AND DATE OF DATE STATEMENT IS
DESCRIPTION <F1> LAND IMPROVEMENTS TOTAL IMPROVEMENTS CONSTRUCTION ACQUIRED COMPUTED
---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
BALANCE CARRIED
FORWARD $4,067,995 $ 53,408,263 $ 57,476,258 $25,356,257
CPHP-XI -
Continental Terrace
Fort Worth, Texas 232,995 5,074,495 5,307,490 2,513,411 1971 10/88 20 - 40 years
CPHP-XII -
Yale Village
Houston, Texas 301,289 5,947,031 6,248,320 3,295,657 1970 8/88 20 - 40 years
CPHP-XIII -
Atlantis
Virginia Beach, Virginia 523,468 6,189,274 6,712,742 3,114,724 1970 7/88 20 - 40 years
CPHP-XIV -
Kings Row
Houston, Texas 194,405 4,472,301 4,666,706 2,271,625 1968 8/88 20 - 40 years
CPHP-XV -
Castle Gardens
Lubbock, Texas 162,810 3,787,189 3,949,999 1,838,454 1971 7/88 15 - 40 years
CPHP-XVI -
Rockwell Villa
Oklahoma City, Oklahoma 76,423 1,440,600 1,517,023 626,760 1970 7/88 27.5 years
CPHP-XVII -
London Square Village
Oklahoma City, Oklahoma 203,978 4,739,084 4,943,062 2,471,850 1975 8/88 27.5 years
CPHP-XVIII -
Ascension Towers
Memphis, Tennessee 176,341 7,357,580 7,533,921 3,195,630 1979 8/88 27.5 years
Coleman Manor
Associates Limited
Partnership -
Coleman Manor
Baltimore, Maryland 61,281 3,549,831 3,611,112 1,466,857 1903 8/88 27.5 years
CPHP-XX -
Holiday Heights
Fort Worth, Texas 202,445 2,136,340 2,338,785 1,047,680 1972 10/88 32 years
CPHP-XXII -
Harriet Tubman
Terrace - Berkeley,
California 366,372 4,244,171 4,610,543 1,850,466 1975 8/88 27.5 years
---------------------------------------------------------------------------------------------------------------------------------
$6,569,802 $102,346,159 $108,915,961 $49,049,371
=================================================================================================================================
See notes to schedule
</TABLE>
F-13
<PAGE> 31
CENTURY PACIFIC HOUSING FUND-1
------------------------------------------------------------------------------
NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED
DEPRECIATION OF OPERATING PARTNERSHIPS IN WHICH
CPHF-I HAS LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 1999
NOTE 1 - DESCRIPTION OF PROPERTIES
----------------------------------
The Properties held by the Operating Partnerships in which the Partnership
has invested are housing projects, primarily for families and elderly or
handicapped individuals of low and moderate income.
NOTE 2 - SCHEDULE OF ENCUMBRANCES
---------------------------------
<TABLE>
<CAPTION>
OPERATING PARTNERSHIP MORTGAGE RESIDUAL PURCHASE OTHER
NAME AND PROPERTY NAME NOTES NOTE NOTE NOTES TOTAL
--------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CPHP-I Charter House $ 852,154 $ 1,582,727 $ -- $ -- $ 2,434,881
CPHP-II VOA/Sunset Park,
Ltd. Sunset Park 2,355,066 6,776,105 -- 95,607 9,226,778
CPHP-III Highland Park 1,024,403 10,519,878 -- 22,697 11,566,978
CPHP-IV Forest Glen
Estates 1,847,626 4,548,298 -- 67,837 6,463,761
CPHP-V Jaycee Towers 2,297,260 5,479,214 -- 264,703 8,041,177
CPHP-VI Edgewood 1,838,919 977,433 -- 182,995 2,999,347
CPHP-VII Gulfway Terrace 2,552,744 3,522,793 -- 287,806 6,363,343
CPHP-VIII
Sunset Townhouses 566,125 850,721 -- 18,252 1,435,098
CPHP-IX Wind Ridge 1,262,361 2,859,061 -- 64,165 4,185,587
CPHP-X Bergen Circle 5,712,249 9,294,493 -- 685,887 15,692,629
CPHP-XI Continental Terrace 1,930,065 3,673,668 -- 416,915 6,020,648
CPHP-XII Yale Village 2,257,315 4,372,435 -- 1,539,881 8,169,631
CPHP-XIII Atlantis 1,985,348 6,413,898 -- 10,445 8,409,691
CPHP-XIV Kings Row 1,296,674 3,852,811 -- 492,671 5,642,156
CPHP-XV Castle Gardens 1,366,748 2,923,446 -- 322,752 4,612,946
CPHP-XVI Rockwell Villa 487,774 982,918 -- 62,636 1,533,328
CPHP-XVII London Square
Village 2,037,616 2,470,882 -- 263,500 4,771,998
CPHP-XVIII Ascension Towers 3,002,910 5,984,927 -- 27,454 9,015,291
Coleman Manor Associates
Limited Partnership
Coleman Manor 2,135,463 -- -- 40,000 2,175,463
CPHP-XX Holiday Heights 843,810 2,225,112 -- -- 3,068,922
CPHP-XXII Harriet Tubman
Terrace 1,341,436 4,953,934 221,500 -- 6,516,870
--------------------------------------------------------------------------------------------------------------
$38,994,066 $84,264,754 $221,500 $4,866,203 $128,346,523
==============================================================================================================
</TABLE>
F-14
<PAGE> 32
CENTURY PACIFIC HOUSING FUND-1
------------------------------------------------------------------------------
NOTES TO SCHEDULE III - REAL ESTATE AND
ACCUMULATED DEPRECIATION OF OPERATING PARTNERSHIPS IN
WHICH CPHF-I HAS LIMITED PARTNERSHIP INTERESTS - CONTINUED
DECEMBER 31, 1999
NOTE 3 - RECONCILIATION OF REAL ESTATE AND ACCUMULATED DEPRECIATION
-------------------------------------------------------------------
<TABLE>
<CAPTION>
ACCUMULATED
COST DEPRECIATION
---------------------------------
<S> <C> <C>
Balance at December 31, 1996 $106,463,360 $36,178,310
Additions during year:
Improvements 744,144 --
Depreciation -- 4,256,632
---------------------------------------------------------------------
Balance at December 31, 1997 107,207,504 40,434,942
Additions during year:
Improvements 864,012 --
Depreciation -- 4,318,634
---------------------------------------------------------------------
Balance at December 31, 1998 108,071,516 44,753,576
Additions during year:
Improvements 844,445 --
Depreciation -- 4,295,795
---------------------------------------------------------------------
$108,915,961 $49,049,371
=====================================================================
</TABLE>
F-15
<PAGE> 33
<TABLE>
CENTURY PACIFIC HOUSING FUND-1
------------------------------------------------------------------------------------------------------------------
MORTGAGE LOANS ON REAL ESTATE OF OPERATING
PARTNERSHIPS IN WHICH CPHF-I HAS
LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 1999
Schedule IV
<CAPTION>
MONTHLY
PAYMENTS ORIGINAL
FINAL TO MATURITY FACE CARRYING
INTEREST MATURITY (NET OF HUD AMOUNT OF AMOUNT OF
DESCRIPTION <F1> RATE DATE SUBSIDY) MORTGAGE MORTGAGE <F2>
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
First mortgages assumed
by Operating Partnerships:
Century Pacific Housing
Partnership-I (CPHP-I)
Charter House
Dothan, Alabama 7% March 2013 $ 8,238 $ 1,325,700 $ 852,154
CPHP-II
VOA/Sunset Park, Ltd.
Sunset Park November
Denver, Colorado 7% 2014 8,697 4,859,300 2,355,066
CPHP-III
Highland Park December
Topeka, Kansas 3% 2008 10,835 2,914,500 1,024,403
CPHP-IV
Forest Glen Estates
Kansas City, Kansas 7.5% April 2013 6,566 2,787,000 1,847,626
CPHP-VI 3% plus
Edgewood treasury
Danville, Illinois bill rate March 2013 18,928 2,360,000 1,838,919
CPHP-VII
Gulfway Terrace
New Orleans, Louisiana 7% June 2015 8,320 3,616,200 2,552,744
CPHP-IX
Wind Ridge November
Wichita, Kansas 8.5% 2010 4,602 2,010,900 1,262,361
CPHP-X
Bergen Circle
Springfield,
Massachusetts 6.92% March 2018 4,818 7,381,100 5,712,249
CPHP-V
Jaycee Towers September
Dayton, Ohio 8.5% 2012 7,541 3,361,200 2,297,260
CPHP-VIII
Sunset Townhouses
Newton, Kansas September
8.5% 2012 1,864 828,300 566,125
------------------------------------------------------------------------------------------------------------------
BALANCE BROUGHT
FORWARD 80,409 31,444,200 20,308,907
------------------------------------------------------------------------------------------------------------------
F-16
<PAGE> 34
CENTURY PACIFIC HOUSING FUND-1
------------------------------------------------------------------------------------------------------------------
MORTGAGE LOANS ON REAL ESTATE OF OPERATING
PARTNERSHIPS IN WHICH CPHF-I HAS
LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 1999
Schedule IV
<CAPTION>
MONTHLY
PAYMENTS ORIGINAL
FINAL TO MATURITY FACE CARRYING
INTEREST MATURITY (NET OF HUD AMOUNT OF AMOUNT OF
DESCRIPTION <F1> RATE DATE SUBSIDY) MORTGAGE MORTGAGE <F2>
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BALANCE BROUGHT FORWARD $ 80,409 $31,444,200 $20,308,907
CPHP-XI
Continental Terrace
Fort Worth, Texas 7% March 2013 6,812 3,002,600 1,930,065
CPHP-XII
Yale Village
Houston, Texas 7% June 2015 9,552 3,363,300 2,257,315
CPHP-XIII
Atlantis
Virginia Beach, Virginia 8.5% March 2012 7,294 2,946,500 1,985,348
CPHP-XIV
Kings Row
Houston, Texas 7.05% August 2011 13,925 2,116,000 1,296,674
CPHP-XV
Castle Gardens
Lubbock, Texas 8.5% June 2015 4,785 1,949,900 1,366,748
CPHP-XVI
Rockwell Villa
Oklahoma City, Oklahoma September
7% 2013 1,953 812,700 487,774
CPHP-XVII
London Square Village
Oklahoma City, Oklahoma 7.5% June 2012 7,861 3,153,900 2,037,616
CPHP-XVIII
Ascension Towers
Memphis, Tennessee 7% May 2015 9,622 4,290,000 3,002,910
Coleman Manor Associates
Limited Partnership
Coleman Manor
Baltimore, Maryland 10% July 2029 12,545 2,365,000 2,135,463
CPHP-XX
Holiday Heights
Fort Worth, Texas 7% April 2014 2,829 1,252,700 843,810
CPHP-XXII
Harriet Tubman Terrace
Berkeley, California 7% October 2015 4,113 1,882,700 1,341,436
------------------------------------------------------------------------------------------------------------------
$161,700 $58,579,500 $38,994,066
------------------------------------------------------------------------------------------------------------------
See notes to schedule
F-17
<PAGE> 35
CENTURY PACIFIC HOUSING FUND-1
------------------------------------------------------------------------------------------------------------------
MORTGAGE LOANS ON REAL ESTATE OF OPERATING
PARTNERSHIPS IN WHICH CPHF-I HAS
LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 1999
Schedule IV
<CAPTION>
MONTHLY
PAYMENTS ORIGINAL
FINAL TO MATURITY FACE CARRYING
INTEREST MATURITY (NET OF HUD AMOUNT OF AMOUNT OF
DESCRIPTION <F1> RATE DATE SUBSIDY) MORTGAGE MORTGAGE <F2>
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Residual notes (second
mortgages):
Century Pacific Housing
Partnership-I (CPHP-I)
Charter House December
Dothan, Alabama <F1> 2002 <F1> $ 781,581 $ 1,582,727
CPHP-II
VOA/Sunset Park, Ltd.
Sunset Park December
Denver, Colorado <F1> 2002 <F1> 2,462,936 6,776,105
CPHP-III
Highland Park
Topeka, Kansas December
<F1> 2002 <F1> 3,936,695 10,519,878
CPHP-IV
Forest Glen Estates December
Kansas City, Kansas <F1> 2002 <F1> 1,733,923 4,548,298
CPHP-VI
Edgewood December
Danville, Illinois <F1> 2002 <F1> 415,192 977,433
CPHP-VII
Gulfway Terrace December
New Orleans, Louisiana <F1> 2002 <F1> 1,255,000 3,522,793
CPHP-IX
Wind Ridge December
Wichita, Kansas <F1> 2003 <F1> 1,053,084 2,859,061
CPHP-X
Bergen Circle
Springfield,
Massachusetts <F1> July 2013 <F1> 3,547,072 9,294,493
CPHP-V
Jaycee Towers
Dayton, Ohio <F1> October 2005 <F1> 2,245,673 5,479,214
CPHP-VIII
Sunset Townhouses
Newton, Kansas <F1> August 2003 <F1> 341,229 850,721
------------------------------------------------------------------------------------------------------------------
BALANCE BROUGHT
FORWARD 17,772,385 46,410,723
------------------------------------------------------------------------------------------------------------------
F-18
<PAGE> 36
CENTURY PACIFIC HOUSING FUND-1
------------------------------------------------------------------------------------------------------------------
MORTGAGE LOANS ON REAL ESTATE OF OPERATING
PARTNERSHIPS IN WHICH CPHF-I HAS
LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 1999
Schedule IV
<CAPTION>
MONTHLY
PAYMENTS ORIGINAL
FINAL TO MATURITY FACE CARRYING
INTEREST MATURITY (NET OF HUD AMOUNT OF AMOUNT OF
DESCRIPTION <F1> RATE DATE SUBSIDY) MORTGAGE MORTGAGE <F2>
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
BALANCE BROUGHT
FORWARD $17,772,385 $46,410,723
CPHP-XI
Continental Terrace
Fort Worth, Texas <F1> October 2003 <F1> 1,595,364 3,673,668
CPHP-XII
Yale Village
Houston, Texas <F1> August 2003 <F1> 1,255,000 4,372,435
CPHP-XIII
Atlantis
Virginia Beach, Virginia <F1> July 2003 <F1> 2,552,584 6,413,898
CPHP-XIV
Kings Row
Houston, Texas <F1> August 2003 <F1> 1,537,518 3,852,811
CPHP-XV
Castle Gardens
Lubbock, Texas <F1> July 2003 <F1> 1,160,247 2,923,446
CPHP-XVI
Rockwell Villa
Oklahoma City,
Oklahoma <F1> July 2003 <F1> 398,629 982,918
CPHP-XVII
London Square Village
Oklahoma City,
Oklahoma <F1> July 2003 <F1> 979,071 2,470,882
CPHP-XVIII
Ascension Towers
Memphis, Tennessee <F1> August 2003 <F1> 2,404,667 5,984,927
CPHP-XX
Holiday Heights
Fort Worth, Texas <F1> October 2004 <F1> 909,472 2,225,112
CPHP-XXII
Harriet Tubman Terrace December
Berkeley, California <F1> 2003 <F1> 2,036,000 4,953,934
------------------------------------------------------------------------------------------------------------------
$32,600,937 $84,264,754
==================================================================================================================
See notes to schedule
</TABLE>
F-19
<PAGE> 37
CENTURY PACIFIC HOUSING FUND-1
------------------------------------------------------------------------------
NOTES TO SCHEDULE IV - MORTGAGE LOANS ON REAL
ESTATE OF OPERATING PARTNERSHIPS IN WHICH
CPHF-I HAS LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 1999
NOTE 1 - DESCRIPTION
-----------
Each Operating Partnership has invested in a Property. The Operating
Partnerships assumed mortgage loan obligations from the sellers of the
properties, and with the exception of two mortgages, all mortgage loan
obligations are insured by the United States Department of Housing and
Urban Development. All mortgages are secured by the land and buildings of
the properties.
In addition, the Operating Partnerships issued residual notes to the
sellers of the properties as partial consideration. The notes bear
interest at the minimum long-term federal rate as announced from
time-to-time pursuant to Section 1274 of the Internal Revenue Code,
provided that such rate shall not be less than 7% nor greater than 15%. The
notes are secured by the land and buildings of the properties. The notes
are repayable out of future cash available for distribution and unpaid
principal and interest are due at maturity.
NOTE 2 - RECONCILIATION OF MORTGAGES AND RESIDUAL NOTES
----------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
DECEMBER 31, 1999
----------------------------------
MORTGAGE RESIDUAL
LOANS NOTES
----------------------------------
<S> <C> <C>
Balance at December 31, 1996 $43,297,826 $66,017,699
Additions during year:
Accrued interest -- 5,288,652
Deductions during year:
Payments (1,329,889) --
--------------------------------------------------------------------------------
Balance at December 31, 1997 41,967,937 71,306,351
Additions during year:
Accrued interest -- 5,929,555
Deductions during year:
Payments (733,082) --
--------------------------------------------------------------------------------
Balance at December 31, 1998 41,234,855 77,235,906
Additions during year:
Accrued interest -- 7,028,848
Deductions during year:
Payments (2,240,789) --
--------------------------------------------------------------------------------
$38,994,066 $84,264,754
================================================================================
</TABLE>
F-20
<PAGE> 38
==============================================================================
COLEMAN MANOR ASSOCIATES
LIMITED PARTNERSHIP
FINANCIAL STATEMENTS
DECEMBER 31, 1999
==============================================================================
<PAGE> 39
<TABLE>
CONTENTS
------------------------------------------------------------------------
<CAPTION>
PAGE
<S> <C>
Independent Auditors' Report 1 - 2
Balance Sheet 3 - 4
Statement Of Profit And Loss 5 - 6
Statement Of Partners' Equity (Deficit) 7
Statement Of Cash Flows 8 - 9
Notes To Financial Statements 10 - 13
Supporting Data Required By HUD 14 - 16
Independent Auditors' Report On Internal
Control 17 - 18
Independent Auditors' Report On Compliance With
Specific Requirements Applicable To Major HUD
Programs 19 - 20
Independent Auditors' Report On Compliance With
Specific Requirements Applicable To Fair Housing
And Non-Discrimination 21
Schedule Of Findings And Questioned Costs 22
Auditors' Comments On Audit Resolution Matters
Relating To The HUD Programs 23 - 24
Mortgagor's Certification 25
Management Agent's Certification 26
Auditor's Transmittal Letter 27
</TABLE>
<PAGE> 40
[letterhead of RBG & Co.]
S2100-020 INDEPENDENT AUDITORS' REPORT
To The Partners
Coleman Manor Associates Limited Partnership
We have audited the accompanying balance sheet of Coleman Manor Associates
Limited Partnership, Project No. 052-35464, a limited partnership, as of
December 31, 1999 and the related statements of profit and loss, partners'
equity (deficit) and cash flows for the year then ended. 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 audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller
General of the United States. 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 management, as well as
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Coleman Manor Associates
Limited Partnership as of December 31, 1999 and the results of its operations
and its cash flows for the year then ended in conformity with generally
accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplementary
information (shown on pages 14 to 16) is presented for purposes of additional
analysis and is not a required part of the basic financial statements. Such
information has been subjected to the auditing procedures applied in the
audit of the financial statements and, in our opinion, is fairly stated in
all material respects in relation to the financial statements taken as a
whole.
<PAGE> 41
Board of Directors
Coleman Manor Associates Limited Partnership
------------------------------------------------------------------------------
In accordance with Government Auditing Standards and the Consolidated Audit
Guide for Audits of HUD Programs issued by the U.S. Department of Housing and
Urban Development, we have also issued a report dated January 27, 2000 on our
consideration of Coleman Manor Associates Limited Partnership's internal
control and reports dated January 27, 2000, on its compliance with specific
requirements applicable to major HUD programs and specific requirements
applicable to Fair Housing and Non-Discrimination.
/s/ Rubin, Brown, Gornstein & Co. LLP
January 27, 2000
------------------------------------------------------------------------------
Page 2
<PAGE> 42
<TABLE>
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
-------------------------------------------------------------------------------------------------------
BALANCE SHEET
PAGE 1 OF 2
DECEMBER 31, 1999
<S> <C> <C>
ASSETS
CURRENT ASSETS
1120 Cash - operations $ 6,814
1130 Tenant accounts receivable 1,939
1135 Accounts receivable - HUD 8,345
1200 Miscellaneous prepaid expenses 21,805
--------------
1100T TOTAL CURRENT ASSETS $ 38,903
DEPOSITS HELD IN TRUST - FUNDED
1191 Tenant deposits held in trust 6,652
RESTRICTED DEPOSITS AND FUNDED RESERVES
1310 Escrow deposits 28,943
1320 Replacement reserve 40,527
--------------
1300T TOTAL DEPOSITS 69,470
FIXED ASSETS
1410 Land 61,281
1420 Buildings 3,426,317
1465 Office furniture and equipment 123,514
--------------
1400T Total Fixed Assets 3,611,112
1495 Less: Accumulated depreciation 1,466,857
--------------
1400N NET FIXED ASSETS 2,144,255
OTHER ASSETS
1520 Intangible assets - loan costs
1520 Intangible assets - credit application and 97,875
compliance fees 11,844
--------------
1500T TOTAL OTHER ASSETS 109,719
-------------
1000T TOTAL ASSETS $2,368,999
=============
-------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 3
<PAGE> 43
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
-------------------------------------------------------------------------------------------------------
BALANCE SHEET
PAGE 2 OF 2
DECEMBER 31, 1999
LIABILITIES
CURRENT LIABILITIES
2105 Bank overdraft - operations $ 398
2110 Accounts payable - operations 6,366
2120 Accrued wages payable 2,311
2113 Accounts payable - entity 186,454
2123 Accrued management fee payable 1,839
2131 Accrued interest payable - first mortgage 14,889
2170 Mortgage payable - first mortgage (short-term) 8,559
2172 Mortgage payable - second mortgage (short-term) 1,382
2210 Prepaid revenue 1,337
--------------
2122T TOTAL CURRENT LIABILITIES $ 223,535
DEPOSIT AND PREPAYMENT LIABILITIES
2191 Tenant deposits held in trust (contra) 6,638
LONG-TERM LIABILITIES
2320 Mortgage payable - first mortgage 1,415,101
2322 Mortgage payable - second mortgage 710,421
2324 Other loans and notes payable 40,000
--------------
2300T TOTAL LONG-TERM LIABILITIES 2,165,522
-------------
2000T TOTAL LIABILITIES 2,395,695
PARTNERS' EQUITY (DEFICIT)
3130 Partners' equity (deficit) (26,696)
-------------
2033T TOTAL LIABILITIES AND PARTNERS' EQUITY (DEFICIT) $2,368,999
=============
-------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 4
</TABLE>
<PAGE> 44
<TABLE>
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
----------------------------------------------------------------------------------------------------------------------
STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED DECEMBER 31, 1999
----------------------------------------------------------------------------------------------------------------------
<CAPTION>
PART 1 DESCRIPTION OF ACCOUNT ACCT. NO. AMOUNT
----------------------------------------------------------------------------------------------------------------------
<C> <S> <C> <C> <C>
Rent Revenue - Gross Potential 5120 $ 44,692
---------------------------------------------------------------------------------------------------
Tenant Assistance Payments 5121 $330,202
---------------------------------------------------------------------------------------------------
Rent Revenue - Stores and Commercial 5140 $
---------------------------------------------------------------------------------------------------
Garage and Parking Spaces 5170 $
---------------------------------------------------------------------------------------------------
Flexible Subsidy Revenue 5180 $
RENT ---------------------------------------------------------------------------------------------------
REVENUE Miscellaneous Rent Revenue 5190 $
5100 ---------------------------------------------------------------------------------------------------
Excess Rent 5191 $
---------------------------------------------------------------------------------------------------
Rent Revenue/Insurance 5192 $
---------------------------------------------------------------------------------------------------
Special Claims Revenue 5193 $
---------------------------------------------------------------------------------------------------
Retained Excess Income 5194 $
---------------------------------------------------------------------------------------------------
TOTAL RENT REVENUE 5100T $ 374,894
----------------------------------------------------------------------------------------------------------------------
Apartments 5220 $ 5,983
---------------------------------------------------------------------------------------------------
Stores and Commercial 5240 $
---------------------------------------------------------------------------------------------------
Rental Concessions 5250 $
VACANCIES ---------------------------------------------------------------------------------------------------
5200 Garage and Parking Space 5270 $
---------------------------------------------------------------------------------------------------
Miscellaneous 5290 $
---------------------------------------------------------------------------------------------------
TOTAL VACANCIES 5200T $ 5,983
---------------------------------------------------------------------------------------------------
NET RENTAL REVENUE Rent Revenue Less Vacancies 5152N $ 368,911
----------------------------------------------------------------------------------------------------------------------
Nursing Homes/Assisted Living/Board
5300 and Care/Other Elderly Care/
---------------------------------------------------------------------------------------------------
Coop/ and Other Revenues 5300 $
----------------------------------------------------------------------------------------------------------------------
Financial Revenue - Project Operations 5410 $ 446
---------------------------------------------------------------------------------------------------
Revenue from Investments - Residual Receipts 5430 $
FINANCIAL ---------------------------------------------------------------------------------------------------
REVENUE Revenue from Investments - Replacement Reserve 5440 $ 797
5400 ---------------------------------------------------------------------------------------------------
Revenue from Investments - Miscellaneous 5490 $
---------------------------------------------------------------------------------------------------
TOTAL FINANCIAL REVENUE 5400T $ 1,243
----------------------------------------------------------------------------------------------------------------------
Laundry and Vending Revenue 5910 $ 1,627
---------------------------------------------------------------------------------------------------
Tenant Charges 5920 $ 1,316
---------------------------------------------------------------------------------------------------
Interest Reduction Payments Revenue 5945 $
OTHER ---------------------------------------------------------------------------------------------------
REVENUE Miscellaneous Revenue (Schedule) 5990 $ 3,789
5900 ---------------------------------------------------------------------------------------------------
TOTAL OTHER REVENUE 5900T $ 6,732
---------------------------------------------------------------------------------------------------
TOTAL REVENUE 5000T $ 376,886
----------------------------------------------------------------------------------------------------------------------
Conventions and Meetings 6203 $
---------------------------------------------------------------------------------------------------
Management Consultants 6204 $
---------------------------------------------------------------------------------------------------
Advertising and Marketing 6210 $ 93
---------------------------------------------------------------------------------------------------
Other Renting Expenses 6250 $ 4,180
---------------------------------------------------------------------------------------------------
Office Salaries 6310 $ 17,799
---------------------------------------------------------------------------------------------------
Office Expenses 6311 $ 7,368
---------------------------------------------------------------------------------------------------
Office or Model Apartment Rent 6312 $
---------------------------------------------------------------------------------------------------
Management Fee 6320 $ 21,943
ADMINISTRATIVE ---------------------------------------------------------------------------------------------------
EXPENSES Manager or Superintendent Salaries 6330 $
6200/6300 ---------------------------------------------------------------------------------------------------
Administrative Rent Free Unit 6331 $ 7,477
---------------------------------------------------------------------------------------------------
Legal Expense - Project 6340 $ 174
---------------------------------------------------------------------------------------------------
Audit Expense 6350 $ 6,000
---------------------------------------------------------------------------------------------------
Bookkeeping Fees/Accounting Services 6351 $ 4,925
---------------------------------------------------------------------------------------------------
Bad Debts 6370 $ 243
---------------------------------------------------------------------------------------------------
Miscellaneous Administrative Expenses 6390 $ 1,421
---------------------------------------------------------------------------------------------------
TOTAL ADMINISTRATIVE EXPENSES 6263T $ 71,623
----------------------------------------------------------------------------------------------------------------------
Fuel Oil/Coal 6420 $
---------------------------------------------------------------------------------------------------
Electricity 6450 $ 8,104
UTILITIES ---------------------------------------------------------------------------------------------------
EXPENSE Water 6451 $ 1,325
6400 ---------------------------------------------------------------------------------------------------
Gas 6452 $
---------------------------------------------------------------------------------------------------
Sewer 6453 $ 2,959
---------------------------------------------------------------------------------------------------
TOTAL UTILITIES EXPENSE 6400T $ 12,388
---------------------------------------------------------------------------------------------------
TOTAL EXPENSES (CARRY FORWARD TO PAGE 2) $ 84,011
----------------------------------------------------------------------------------------------------------------------
Page 1 of 2
----------------------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 5
<PAGE> 45
Project Name: Coleman Manor Associates Limited Partnership
----------------------------------------------------------------------------------------------------------------------
BALANCE CARRIED FORWARD $ 84,011
----------------------------------------------------------------------------------------------------------------------
Payroll 6510 $ 30,806
---------------------------------------------------------------------------------------------------
Supplies 6515 $ 641
---------------------------------------------------------------------------------------------------
Contracts 6520 $ 16,970
---------------------------------------------------------------------------------------------------
Operating and Maintenance Rent Free Unit 6521 $
---------------------------------------------------------------------------------------------------
Garbage and Trash Removal 6525 $ 1,980
OPERATING ---------------------------------------------------------------------------------------------------
MAINTENANCE Security Payroll/Contract 6530 $
EXPENSES ---------------------------------------------------------------------------------------------------
6500 Security Rent Free Unit 6531 $
---------------------------------------------------------------------------------------------------
Heating/Cooling Repairs and Maintenance 6546 $ 6,760
---------------------------------------------------------------------------------------------------
Snow Removal 6548 $ 150
---------------------------------------------------------------------------------------------------
Vehicle and Maintenance Equipment Operation and Repairs 6570 $
---------------------------------------------------------------------------------------------------
Miscellaneous Operating and Maintenance Expenses 6590 $ 5,992
---------------------------------------------------------------------------------------------------
TOTAL OPERATING AND MAINTENANCE EXPENSES 6500T $ 63,299
----------------------------------------------------------------------------------------------------------------------
Real Estate Taxes 6710 $ 34,458
---------------------------------------------------------------------------------------------------
Payroll Taxes (Project's Share) 6711 $ 4,284
---------------------------------------------------------------------------------------------------
Property and Liability Insurance (Hazard) 6720 $ 5,655
TAXES ---------------------------------------------------------------------------------------------------
AND Fidelity Bond Insurance 6721 $
INSURANCE ---------------------------------------------------------------------------------------------------
6700 Workmen's Compensation 6722 $ 830
---------------------------------------------------------------------------------------------------
Health Insurance and Other Employee Benefits 6723 $ 3,956
---------------------------------------------------------------------------------------------------
Miscellaneous Taxes, Licenses, Permits and Insurance 6790 $ 1,315
---------------------------------------------------------------------------------------------------
TOTAL TAXES AND INSURANCE 6700T $ 50,498
----------------------------------------------------------------------------------------------------------------------
Interest on Mortgage Payable 6820 $142,798
---------------------------------------------------------------------------------------------------
Interest on Notes Payable (Long-Term) 6830 $ 7,123
FINANCIAL ---------------------------------------------------------------------------------------------------
EXPENSES Interest on Notes Payable (Short-Term) 6840 $
6800 ---------------------------------------------------------------------------------------------------
Mortgage Insurance Premium/Service Charge 6850 $ 7,153
---------------------------------------------------------------------------------------------------
Miscellaneous Financial Expenses 6890 $
---------------------------------------------------------------------------------------------------
TOTAL FINANCIAL EXPENSES 6800T $ 157,074
----------------------------------------------------------------------------------------------------------------------
Nursing Homes/ Assisted Living/ Board and
6900 ---------------------------------------------------------------------------------------------------
Care/ Other Elderly Care Expenses 6900 $
----------------------------------------------------------------------------------------------------------------------
TOTAL COST OF OPERATIONS BEFORE
DEPRECIATION AND AMORTIZATION 6000T $ 354,882
---------------------------------------------------------------------------------------------------
PROFIT (LOSS) BEFORE DEPRECIATION AND AMORTIZATION 5060T $ 22,004
---------------------------------------------------------------------------------------------------
Depreciation Expense 6600 $135,085
---------------------------------------------------------------------------------------------------
Amortization Expense 6610 $ 6,580
---------------------------------------------------------------------------------------------------
TOTAL DEPRECIATION AND AMORTIZATION $ 141,665
---------------------------------------------------------------------------------------------------
OPERATING PROFIT OR (LOSS) 5060N $(119,661)
----------------------------------------------------------------------------------------------------------------------
Officer's Salaries 7110 $
---------------------------------------------------------------------------------------------------
Legal Expenses 7120 $
---------------------------------------------------------------------------------------------------
Federal, State, and Other Income Taxes 7130 $
---------------------------------------------------------------------------------------------------
CORPORATE OR Interest Income 7140 $
MORTGAGOR ---------------------------------------------------------------------------------------------------
ENTITY Interest on Notes Payable 7141 $
EXPENSES ---------------------------------------------------------------------------------------------------
7100 Interest on Mortgage Payable 7142 $
---------------------------------------------------------------------------------------------------
Other Expenses (Schedule) 7190 $ 19,800
---------------------------------------------------------------------------------------------------
NET ENTITY EXPENSES 7100T $ 19,800
---------------------------------------------------------------------------------------------------
PROFIT OR LOSS (NET INCOME OR LOSS) 3250 $(139,461)
----------------------------------------------------------------------------------------------------------------------
MISCELLANEOUS OR OTHER INCOME AND EXPENSE SUB-ACCOUNT GROUPS. If miscellaneous or other income and/or expense
sub-accounts (5190, 5290, 5490, 5990, 6390, 6590, 6790, 6890 and 7190) exceed the Account Groupings by 10% or
more, attach a separate schedule describing or explaining the miscellaneous income or expense.
----------------------------------------------------------------------------------------------------------------------
<S> <C>
PART II
----------------------------------------------------------------------------------------------------------------------
1. Total mortgage principal payments required during the audit year (12 monthly payments).
This applies to all direct loans and HUD-held and fully insured mortgages.
Any HUD approved second mortgages should be included in the figures.
(Account S1000-010) $ 9,120
----------------------------------------------------------------------------------------------------------------------
2. Total of 12 monthly deposits in the audit year into the Replacement Reserve account,
as required by the Regulatory Agreement even if payments may be temporarily
suspended or reduced. (Account S1000-020) $ 5,910
----------------------------------------------------------------------------------------------------------------------
3. Replacement Reserve or Residual Receipts releases which are included as expense
items on this Profit and Loss Statement. (Account S1000-030) $
----------------------------------------------------------------------------------------------------------------------
4. Project Improvement Reserve Releases under the Flexible Subsidy Program that
are included as expense items on this Profit and Loss Statement.
(Account S1000-040) $
----------------------------------------------------------------------------------------------------------------------
Page 2 of 2
----------------------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 6
</TABLE>
<PAGE> 46
<TABLE>
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
--------------------------------------------------------------------------------------------------
SCHEDULE OF SUB-ACCOUNTS
FOR THE YEAR ENDED DECEMBER 31, 1999
<S> <C> <C>
5990 - MISCELLANEOUS REVENUE
5990-010 Recovery of bad debts 5990-020 $ 3,500
5990-010 Miscellaneous revenue 5990-020 289
------------
5990 TOTAL MISCELLANEOUS REVENUE $ 3,789
============
7190 OTHER EXPENSES
7190-010 Supervisory management fee 7190-020 $19,800
============
--------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 6a
</TABLE>
<PAGE> 47
<TABLE>
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
--------------------------------------------------------------------------------------------------
STATEMENT OF PARTNERS' EQUITY (DEFICIT)
FOR THE YEAR ENDED DECEMBER 31, 1999
<S> <C>
S1100-010 BEGINNING OF YEAR $ 112,765
3250 NET LOSS (139,461)
---------------
3130 END OF YEAR $ (26,696)
===============
--------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 7
</TABLE>
<PAGE> 48
<TABLE>
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
---------------------------------------------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
PAGE 1 OF 2
FOR THE YEAR ENDED DECEMBER 31, 1999
<CAPTION>
ACCOUNT AMOUNT
----------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts:
S1200-010 Rental receipts $ 362,437
S1200-020 Interest receipts 1,243
S1200-030 Other operating receipts 6,732
--------------
S1200-040 Total Receipts 370,412
--------------
Disbursements:
S1200-050 Administrative 30,756
S1200-070 Management fee 22,536
S1200-090 Utilities 12,388
S1200-100 Salaries and wages 48,406
S1200-110 Operating and maintenance 32,493
S1200-120 Real estate taxes 32,379
S1200-140 Property insurance 12,134
S1200-150 Miscellaneous taxes and insurance 4,284
S1200-160 Tenant security deposits 287
S1200-180 Interest on mortgages 142,868
S1200-210 Mortgage insurance premium (MIP) 7,130
S1200-220 Miscellaneous financial 7,123
--------------
S1200-230 Total Disbursements 352,784
--------------
S1200-240 NET CASH PROVIDED BY OPERATING ACTIVITIES 17,628
--------------
CASH FLOWS FROM INVESTING ACTIVITIES
S1200-245 Net deposits to the mortgage escrow account (8,534)
S1200-250 Net deposits to the reserve for replacement account (6,707)
S1200-330 Net purchases of fixed assets (4,880)
--------------
S1200-350 NET CASH USED IN INVESTING ACTIVITIES (20,121)
--------------
CASH FLOWS FROM FINANCING ACTIVITIES
S1200-360 Mortgage principal payments (9,120)
S1200-450 Other financing activities 398
S1200-455 Entity/Construction financing activities:
S1200-456 Supervisory management fees S1200-457 (3,000)
--------------
S1200-460 NET CASH USED IN FINANCING ACTIVITIES (11,722)
--------------
S1200-470 NET DECREASE IN CASH (14,215)
S1200-480 BEGINNING OF PERIOD CASH 21,029
--------------
S1200T END OF PERIOD CASH $ 6,814
==============
---------------------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 8
<PAGE> 49
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
---------------------------------------------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
PAGE 2 OF 2
FOR THE YEAR ENDED DECEMBER 31, 1999
<CAPTION>
ACCOUNT AMOUNT
----------------------------
<S> <C> <C>
RECONCILIATION OF NET LOSS TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
3250 Net loss $(139,461)
Adjustments to reconcile net loss to net cash
provided by operating activities:
6600 Depreciation 135,085
6610 Amortization 6,580
Change in assets and liabilities:
S1200-490 Increase in tenant accounts receivable (1,573)
S1200-500 Decrease in accounts receivable - other (5,824)
S1200-520 Decrease in prepaid expenses 1,724
S1200-530 Increase in cash restricted for tenant security deposits (270)
S1200-540 Increase in accounts payable 1,125
S1200-560 Decrease in accrued liabilities (394)
S1200-570 Decrease in accrued interest payable (70)
S1200-580 Decrease in tenant security deposits held in trust (17)
S1200-590 Increase in prepaid revenue 923
S1200-605 Increase in entity/construction liability accounts
S1200-606 Management fee expense S1200-607 19,800
--------------
S1200-610 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 17,628
==============
---------------------------------------------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 9
</TABLE>
<PAGE> 50
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(S3100-010)
The Partnership is organized as a limited partnership formed under the
laws of the State of Maryland on May 16, 1988 to acquire an interest in
723 acres of land in Baltimore City, Maryland, and to construct and
operate thereon an apartment complex of 50 units under Section 221(d)(3)
of the National Housing Act. Such projects are regulated by the U.S.
Department of Housing and Urban Development (HUD) as to rent charges and
operating methods. The regulatory agreements limit annual distributions
of net operating receipts to "surplus cash" available at the end of each
year. There was no "surplus cash" as of December 31, 1999.
The following significant accounting policies have been followed in the
preparation of the financial statements:
Management uses estimates and assumptions in preparing financial
statements. Those estimates and assumptions affect the reported
amounts of assets and liabilities, the disclosure of contingent
assets and liabilities, and the reported revenues and expenses.
The Partnership provides an allowance for doubtful accounts equal
to the estimated collection losses that will be incurred in
collection of all receivables. The estimated losses are based on a
review of the current status of the existing receivables. No
allowance for doubtful accounts was provided for at December 31,
1999 as none was deemed necessary by management.
Depreciation is provided using primarily the straight-line method
over the estimated useful lives of the assets ranging from seven to
twenty-seven years.
The replacement reserve can only be used for improvements to
buildings upon prior approval of HUD.
------------------------------------------------------------------------------
Page 10
<PAGE> 51
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
Deferred loan costs consist of fees for obtaining the HUD insured
mortgage loan and are being amortized using the straight-line
method over the life of the mortgage loan.
The low income credit application fee and the low income credit
compliance fee are being amortized over 15 years, the term of the
credit compliance period.
Income or loss of the Partnership is allocated 2% to the general
partners and 98% to the limited partners. No income tax provision has
been included in the financial statements since income or loss of the
Partnership is required to be reported by the partners on their
respective income tax returns.
2. MORTGAGES PAYABLE (S3100-050)
Permanent financing of the project has been provided by three mortgages.
The related notes are nonrecourse and are secured by the Partnership's
real estate.
The first mortgage is insured by the Federal Housing Administration
(FHA) and collateralized by a deed of trust on the rental property. The
mortgage bears interest at a rate of 10% and is payable in monthly
installments of $12,545 (including principal and interest) through July
2029.
Under agreements with the mortgage lender and FHA, the Partnership is
required to make monthly escrow deposits for taxes, insurance and
replacement of project assets, and is subject to restrictions as to
operating policies, rental charges, operating expenditures and
distributions to partners.
The liability of the Partnership under the mortgage note is limited to
the underlying value of the real estate collateral plus other amounts
deposited with the lender.
SUBORDINATED MORTGAGE PAYABLE
The second mortgage, a variable interest loan through Community
Development Administration (CDA) of Maryland, is serviced by Bogman,
Inc. The note matures on July 1, 2029 and is payable as follows:
1. Beginning August 1, 1990, fifteen annual payments of $8,500 are
due, which includes interest at 1% annum.
------------------------------------------------------------------------------
Page 11
<PAGE> 52
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
2. Beginning August 1, 2005, annual payments are due including
interest at 10%, in an amount sufficient to amortize the principal
balance over the remaining term of the loan.
SUBORDINATED PURCHASE MONEY MORTGAGE PAYABLE
This mortgage is with the Mayor and City Council of Baltimore and is
non-interest bearing. The full balance is due on September 1, 2029.
The scheduled maturities of the mortgages payable at December 31, 1999
are as follows: (S3100-x1x)
<TABLE>
<CAPTION>
YEAR ACCOUNT AMOUNT
-----------------------------------------------------------------
<S> <C> <C>
2000 S3100-060 $ 9,941
2001 S3100-070 10,851
2002 S3100-080 11,855
2003 S3100-090 12,963
2004 S3100-100 14,185
Thereafter S3100-110 2,115,668
-----------------------------------------------------------------
$2,175,463
=================================================================
</TABLE>
3. COMMITMENTS (S3100-X3X) (S3100-240)
The Partnership has entered into a regulatory agreement with HUD which
regulates, among other things, the rents which may be charged for
apartment units in the project, prohibits the sale of the Project
without HUD consent, limits the annual distribution of cash flow to the
partners and otherwise regulates the relationship between the
Partnership and HUD.
4. RELATED PARTY TRANSACTIONS (S3100-200)
ASSET AND SUPERVISORY MANAGEMENT FEE (S3100-200)
The Project has a management agreement with Century Pacific Realty
Corporation (CPRC), the supervising general partner, which requires a
fee of $19,800 annually. The first portion of the fee ($3,000) is to be
paid out of operations. The second portion ($5,000) is to be paid out
of surplus cash (as defined by HUD). The remaining balance and any
unpaid portions of the above may be paid out of capital transactions.
As of December 31, 1999, $186,454 of this fee remains unpaid.
------------------------------------------------------------------------------
Page 12
<PAGE> 53
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
INCENTIVE MANAGEMENT FEE (S3100-200)
The Project has an incentive management agreement with the managing
general partner. The fee is to be equal to 60% of surplus cash (as
defined by HUD) net of the second portion ($5,000) of the asset and
supervisory management fee. There were no fees charged nor payments
made related to this fee in 1999.
S3100-210 COMPANY NAME Century Pacific Realty Corporation
S3100-220 AMOUNT RECEIVED $3,000
S3100-210 COMPANY NAME Mt. Washington Management Group, Inc.
S3100-220 AMOUNT RECEIVED $27,461
MANAGEMENT FEE (S3100-230)
Mt. Washington Management Group, Inc., an affiliate of the general
partners, is the exclusive agent for the management of the property.
The current management agreement provides for a management fee equal to
6.14% of gross collections. Total management fees incurred during 1999
were $21,943. In addition, Mt. Washington Management Group, Inc.
collects an accounting and bookkeeping fee which amounted to $4,925 in
1999. At December 31, 1999, $1,839 of these amounts are due and
payable.
5. LOW-INCOME HOUSING TAX CREDITS (S3100-240)
The Partnership expects to generate an aggregate of $2,545,410 of low-
income housing tax credits. Generally, such credits are expected to
become available for use by its partners pro rata over a ten-year period
beginning in 1989. In order to qualify for these credits, the Property
must comply with various federal and state requirements. These
requirements, include, but are not limited to, renting to low-income
tenants at rental rates, which do not exceed specified percentages of
area median gross income for the first 15 years of operation.
------------------------------------------------------------------------------
Page 13
<PAGE> 54
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
------------------------------------------------------------------------------
SUPPORTING DATA REQUIRED BY HUD
DECEMBER 31, 1999
REPLACEMENT RESERVE
In accordance with the provisions of the regulatory agreement, restricted
cash is held by Greystone Servicing Corporation, Inc. to be used for
replacement of property with the approval of HUD as follows:
1320P Balance at beginning of year $ 33,820
1320DT Total monthly deposits 5,910
1320ODT Other deposits 797
-------------
1320OD-010 Interest income
1320OD-020 $797
1320 Balance at end of year, confirmed by mortgagee $ 40,527
=============
------------------------------------------------------------------------------
Page 14
<PAGE> 55
<TABLE>
COMPUTATION OF SURPLUS CASH,
DISTRIBUTIONS AND RESIDUAL
RECEIPTS
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------
PROJECT NAME FISCAL PERIOD ENDED: PROJECT NUMBER
Coleman Manor Associates Limited Partnership 12/31/99 052-35464
-----------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
PART A - COMPUTE SURPLUS CASH
-----------------------------------------------------------------------------------------------------------------------
CASH
-----------------------------------------------------------------------------------------------------------------------
1. Cash (Accounts 1120, 1170, 1191 minus Account 2105) (S1300-010) $13,068
-----------------------------------------------------------------------------------------------------------------------
2. Tenant subsidy due for period covered by financial statement (1135) $ 8,345
-----------------------------------------------------------------------------------------------------------------------
3. Other (describe) (S1300-030) $
-----------------------------------------------------------------------------------------------------------------------
(a) TOTAL CASH (Add Lines 1, 2, and 3) (S1300-040) $ 21,413
-----------------------------------------------------------------------------------------------------------------------
CURRENT OBLIGATIONS
-----------------------------------------------------------------------------------------------------------------------
4. Accrued mortgage interest payable (S1300-050) $14,889
-----------------------------------------------------------------------------------------------------------------------
5. Delinquent mortgage principal payments (S1300-060) $
-----------------------------------------------------------------------------------------------------------------------
6. Delinquent deposits to reserve for replacements (S1300-070) $
-----------------------------------------------------------------------------------------------------------------------
7. Accounts payable - 30 days (S1300-075) $ 6,366
-----------------------------------------------------------------------------------------------------------------------
8. Loans and notes payable (due within 30 days) (S1300-080) $
-----------------------------------------------------------------------------------------------------------------------
9. Deficient tax insurance or MIP escrow deposits (S1300-090) $
-----------------------------------------------------------------------------------------------------------------------
10. Accrued expenses (not escrowed) (S1300-100) $ 4,150
-----------------------------------------------------------------------------------------------------------------------
11. Prepaid revenue (2210) $ 1,337
-----------------------------------------------------------------------------------------------------------------------
12. Tenant security deposits liability (2191) $ 6,638
-----------------------------------------------------------------------------------------------------------------------
13. Other current obligations (Describe) (S1300-110) $
-----------------------------------------------------------------------------------------------------------------------
(b) TOTAL CURRENT OBLIGATIONS (Add Lines 4 through 13) (S1300-140) $ 33,380
-----------------------------------------------------------------------------------------------------------------------
(c) SURPLUS CASH (DEFICIENCY) [Line (a) minus Line (b)] (S1300-150) $(11,967)
-----------------------------------------------------------------------------------------------------------------------
PART B - COMPUTE DISTRIBUTIONS TO OWNERS AND REQUIRED DEPOSIT TO
RESIDUAL RECEIPTS
-----------------------------------------------------------------------------------------------------------------------
1. Surplus Cash $
-----------------------------------------------------------------------------------------------------------------------
LIMITED DIVIDEND PROJECTS
-----------------------------------------------------------------------------------------------------------------------
2a. Annual distribution earned during fiscal period covered by the
statement (S1300-160) $
-----------------------------------------------------------------------------------------------------------------------
2b. Distribution accrued and unpaid as of the end of the prior
fiscal period (S1300-170) $
-----------------------------------------------------------------------------------------------------------------------
2c. Distributions and entity expenses paid during fiscal period
covered by statement (S1300-180) $
-----------------------------------------------------------------------------------------------------------------------
3. Distribution earned but unpaid (Line 2a plus 2b minus 2c) (S1300-190) $
-----------------------------------------------------------------------------------------------------------------------
4. Amount available for distribution during next fiscal period (S1300-200) $ NONE
-----------------------------------------------------------------------------------------------------------------------
5. Deposit due residual receipts (S1300-210) $
-----------------------------------------------------------------------------------------------------------------------
-----------------------------------------------------------------------------------------------------------------------
Page 15
</TABLE>
<PAGE> 56
<TABLE>
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
--------------------------------------------------------------------------------------------------------------------
SUPPORTING DATA REQUIRED BY HUD (CONTINUED)
DECEMBER 31, 1999
<CAPTION>
ASSETS
-------------------------------------------------------------------
BALANCE BALANCE
JANUARY 1, DECEMBER 31,
1999 ADDITIONS DEDUCTIONS 1999
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
1410 Land $ 61,281 $ -- $ -- $ 61,281
1420 Buildings 3,426,317 -- -- 3,426,317
1465 Office furniture and equipment 118,634 4,880 -- 123,514
--------------------------------------------------------------------------------------------------------------------
Total 3,606,232 4,880 -- 3,611,112
Accumulated depreciation 1,331,772 135,085 -- 1,466,857
--------------------------------------------------------------------------------------------------------------------
NET BOOK VALUE $2,274,460 $(130,205) $ -- $2,144,255
====================================================================================================================
--------------------------------------------------------------------------------------------------------------------
Page 16
</TABLE>
<PAGE> 57
[letterhead of RBG & CO.]
S2200-020 INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL
To The Partners
Coleman Manor Associates Limited Partnership
We have audited the financial statements of Coleman Manor Associates Limited
Partnership as of and for the year ended December 31, 1999, and have issued
our report thereon dated January 27, 2000. We have also audited Coleman
Manor Associates Limited Partnership's compliance with requirements
applicable to HUD-assisted programs and have issued our reports thereon dated
January 27, 2000.
We conducted our audits in accordance with generally accepted auditing
standards, Government Auditing Standards, issued by the Comptroller General
of the United States, and the Consolidated Audit Guide for Audits of HUD
Programs (the "Guide") issued by the U.S. Department of Housing and Urban
Development, Office of the Inspector General. Those standards and the Guide
require that we plan and perform the audits to obtain reasonable assurance
about whether the financial statements are free of material misstatement and
about whether Coleman Manor Associates Limited Partnership complied with laws
and regulations, noncompliance with which would be material to a major
HUD-assisted program.
The management of Coleman Manor Associates Limited Partnership is responsible
for establishing and maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are required to assess
the expected benefits and related costs of controls. The objectives of
internal control are to provide management with reasonable, but not absolute,
assurance that assets are safeguarded against loss from unauthorized use or
disposition, that transactions are executed in accordance with management
authorization and recorded properly to permit the preparation of financial
statements in accordance with generally accepted accounting principles, and
that HUD-assisted programs are managed in compliance with applicable laws and
regulations. Because of inherent limitations in any internal control,
errors, irregularities or instances of noncompliance may nevertheless
occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that procedures may become
inadequate because of changes in conditions or that the effectiveness of the
design and operation of controls may deteriorate.
Page 17
<PAGE> 58
To The Partners
Coleman Manor Associates Limited Partnership
------------------------------------------------------------------------------
In planning and performing our audits, we obtained an understanding of the
design of relevant controls and determined whether they had been placed in
operation, and we assessed control risk in order to determine our auditing
procedures for the purpose of expressing our opinions on the financial
statements of Coleman Manor Associates Limited Partnership and on its
compliance with specific requirements applicable to its major HUD-assisted
programs and to report on internal control in accordance with the provisions
of the Guide and not to provide any assurance on internal control.
We performed tests of controls, as required by the Guide, to evaluate the
effectiveness of the design and operation of controls that we considered
relevant to preventing or detecting material noncompliance with specific
requirements applicable to Coleman Manor Associates Limited Partnership's
major HUD-assisted programs. Our procedures were less in scope than would be
necessary to render an opinion on internal control. Accordingly, we do not
express such an opinion.
Our consideration of internal control would not necessarily disclose all
matters in internal control that might be material weaknesses under standards
established by the American Institute of Certified Public Accountants. A
material weakness is a condition in which the design or operation of one or
more of the internal control components does not reduce to a relatively low
level the risk that errors or irregularities in amounts that would be
material in relation to the financial statements or that noncompliance with
laws and regulations that would be material to a HUD-assisted program may
occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. We noted no matters involving
internal control and its operation that we consider to be material weaknesses
as defined above.
This report is intended solely for the information and use of management and
the Department of Housing and Urban Development and is not intended to be and
should not be used by anyone other than these specified parties.
/s/ Rubin, Brown, Gornstein & Co. LLP
January 27, 2000
------------------------------------------------------------------------------
Page 18
<PAGE> 59
[letterhead of RBG & CO.]
S2300-020 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH
SPECIFIC REQUIREMENTS APPLICABLE TO MAJOR HUD PROGRAMS
To The Partners
Coleman Manor Associates Limited Partnership
We have audited the financial statements of Coleman Manor Associates Limited
Partnership as of and for the year ended December 31, 1999 and have issued
our report thereon dated January 27, 2000. We have also audited Coleman
Manor Associates Limited Partnership's compliance with the specific program
requirements governing federal financial reports, mortgage status,
replacement reserve, security deposits, cash receipts and disbursements,
tenant application, eligibility and recertification and management functions
that are applicable to each of its major HUD-assisted programs for the year
ended December 31, 1999. The management of Coleman Manor Associates Limited
Partnership is responsible for compliance with those requirements. Our
responsibility is to express an opinion on compliance with those requirements
based on our audit.
We conducted our audit of compliance with those requirements in accordance
with generally accepted auditing standards, Government Auditing Standards,
issued by the Comptroller General of the United States, and the Consolidated
Audit Guide for Audits of HUD Programs (the "Guide") issued by the U.S.
Department of Housing and Urban Development, Office of Inspector General.
Those standards and the Guide require that we plan and perform the audit to
obtain reasonable assurance about whether material noncompliance with the
requirements referred to above occurred. An audit includes examining, on a
test basis, evidence about Coleman Manor Associates Limited Partnership's
compliance with those requirements. We believe that our audit provides a
reasonable basis for our opinion.
The results of our audit procedures disclosed immaterial instances of
noncompliance with the requirements referred to above, which are described in
the accompanying Schedule of Findings and Questioned Costs. We considered
those instances of noncompliance in forming our opinion on compliance, which
is expressed in the following paragraph.
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<PAGE> 60
To The Partners
Coleman Manor Associates Limited Partnership
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In our opinion, Coleman Manor Associates Limited Partnership complied, in all
material respects, with the requirements described above that are applicable
to each of its major HUD-assisted programs for the year ended December 31,
1999.
This report is intended solely for the information and use of management and
the Department of Housing and Urban Development and is not intended to be and
should not be used by anyone other than these specified parties.
/s/ Rubin, Brown, Gornstein & Co. LLP
January 27, 2000
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<PAGE> 61
[letterhead of RBG & CO.]
S2500-020
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH SPECIFIC
REQUIREMENTS APPLICABLE TO FAIR HOUSING AND NON-DISCRIMINATION
To The Partners
Coleman Manor Associates Limited Partnership
We have audited the financial statements of Coleman Manor Associates Limited
Partnership as of and for the year ended December 31, 1999, and have issued
our report thereon dated January 27, 2000.
We have also applied procedures to test Coleman Manor Associates Limited
Partnership's compliance with Fair Housing and Non-Discrimination
requirements applicable to its HUD-assisted programs for the year ended
December 31, 1999.
Our procedures were limited to the applicable compliance requirement
described by the Consolidated Audit Guide for Audits of HUD Programs (the
"Guide") issued by the U.S. Department of Housing and Urban Development,
Office of Inspector General. Our procedures were substantially less in scope
than an audit, the objective of which is the expression of an opinion on
Coleman Manor Associates Limited Partnership's compliance with Fair Housing
and Non-Discrimination requirements. Accordingly, we do not express such an
opinion.
The results of our tests disclosed no instances of noncompliance that are
required to be reported herein under the Guide.
This report is intended solely for the information and use of management and
the Department of Housing and Urban Development and is not intended to be and
should not be used by anyone other than these specified parties.
/s/ Rubin, Brown, Gornstein & Co. LLP
January 27, 2000
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<PAGE> 62
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
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SCHEDULE OF FINDINGS AND QUESTIONED COSTS (S2700-X1X)
FINDING 1999-1
S2700-010 STATEMENT OF CONDITION - In review of the electronic submission
of the 1998 financial statements, we noted that the correct
response was not given in regards to the going concern issue,
account S2100-050.
S2700-020 CRITERIA - It is the responsibility of the Partnership to ensure
that the electronic submission of the financial statements
agrees with the statements issued by the independent certified
public accountant.
S2700-030 EFFECT - The Partnership incorrectly reflected the financial
statements as having an unqualified report letter with no going
concern issue. Account S2100-050 should have been input as a
yes.
S2700-040 CAUSE - The electronic submission was not input accurately.
S2700-050 RECOMMENDATION - The Partnership should consult with the HUD
office and correct the electronic submission of the 1998 audited
financial statements, if possible.
S2700-055 AUDITOR NON-COMPLIANCE CODE - Electronic submission
verification
S2700-065 AMOUNT OF QUESTIONED COSTS - $0
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<PAGE> 63
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
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AUDITORS' COMMENTS ON AUDIT RESOLUTION
MATTERS RELATING TO THE HUD PROGRAMS (S2800-X1X)
FINDING 1998-1
S2800-010 NARRATIVE
Management was unable to provide a current management agreement
and/or "Identity of Interest Statement" stating the current
management fees.
S2800-020 STATUS
CLEARED
S2800-030 REPORTING PERIOD
12/31/98
FINDING 1998-2
S2800-010 NARRATIVE
Fidelity bond coverage is not at least equal to two months'
gross potential rent collections.
S2800-020 STATUS
CLEARED
S2800-030 REPORTING PERIOD
12/31/98
FINDING 1998-3
S2800-010 NARRATIVE
Management was operating with no approved management agreement.
S2800-020 STATUS
CLEARED
S2800-030 REPORTING PERIOD
12/31/98
FINDING 1998-4
S2800-010 NARRATIVE
Client does not possess any support of HUD approval for the
accounting charge of $11/unit/month.
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<PAGE> 64
COLEMAN MANOR ASSOCIATES LIMITED PARTNERSHIP
052-35464
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AUDITORS' COMMENTS ON AUDIT RESOLUTION
MATTERS RELATING TO THE HUD PROGRAMS (CONTINUED) (S2800-X1X)
S2800-020 STATUS
CLEARED
S2800-030 REPORTING PERIOD
12/31/98
FINDING 1998-5
S2800-010 NARRATIVE
The security deposit account was $273 less than the related
liability at December 31, 1998.
S2800-020 STATUS
CLEARED
S2800-030 REPORTING PERIOD
12/31/98
FINDING 1998-6
S2800-010 NARRATIVE
Client was not able to locate 3 out of 10 invoices requested for
cash disbursement testing.
S2800-020 STATUS
CLEARED
S2800-030 REPORTING PERIOD
12/31/98
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<PAGE> 65
S2900-010 MORTGAGOR'S CERTIFICATION
We hereby certify that we have examined the accompanying financial statements
and supplemental data of Coleman Manor Associates Limited Partnership and, to
the best of our knowledge and belief, the same is complete and accurate.
S2900-020 Name of Signatory #1 ____________________________________________
S2900-040 Auditee Telephone Number ________________________________________
S2900-050 Date of Certification ___________________________________________
------------------------------------------------------
Signature Date
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<PAGE> 66
(S3000-010) MANAGEMENT AGENT'S CERTIFICATION
We hereby certify that we have examined the accompanying financial statements
and supplemental data of Coleman Manor Associates Limited Partnership and, to
the best of our knowledge and belief, the same is complete and accurate.
Mt. Washington Management Group, Inc.
------------------------------------------
Name of Managing Agent (S3000-020) Date
------------------------------------------
Name of Signatory (S3000-030)
52-1618787
------------------------------------------
Management Agent TIN (S3000-040)
Eldamae Ingram
------------------------------------------
Name of Individual (i.e., Property Manager)
(S3000-050)
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<PAGE> 67
AUDITOR'S TRANSMITTAL LETTER
S3200-010 Audit Firm Rubin, Brown, Gornstein & Co. LLP
-------------------------------------------------------
S3200-020 Lead Auditor First Name Lawrence
------------------------------------------
S3200-030 Lead Auditor Middle Name Edward
-----------------------------------------
S3200-040 Lead Auditor Last Name Rubin
-------------------------------------------
S3200-050 Auditor Street Address Line 1 230 South Bemiston Avenue
------------------------------------
S3200-060 Auditor Street Address Line 2
------------------------------------
S3200-070 Auditor City St. Louis
-----------------------------------------------------
S3200-080 Auditor State Missouri
----------------------------------------------------
S3200-090 Auditor Zip Code 63105
-------------------------------------------------
S3200-100 Auditor Zip Code Extension
---------------------------------------
S3200-110 Auditor Telephone Number (314) 727-8150
-----------------------------------------
S3200-120 Auditor Firm TIN 43-0765316
-------------------------------------------------
S3200-130 Date of Independent Auditors' Report 01/27/2000
-----------------------------
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