August 13, 1996
Securities and Exchange Commission
Filer Support, Edgar
Operation Center, Stop 0-7
6432 General Green Way
Alexandria, VA 22312
Re: Boston Financial Qualified Housing Limited Partnership
Report on Form 10-Q for Quarter Ended June 30, 1996
File No. 0-16796
Dear Sir/Madam:
Pursuant to the requirements of Rule 901(d) of Regulation S-T, enclosed is one
copy of subject report.
Very truly yours,
Marie D. Ricciardi
Assistant Controller
QH1-10Q1.DOC
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act
of 1934
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
For Quarter Ended June 30, 1996 Commission file number 0-16796
Boston Financial Qualified Housing Limited Partnership
(Exact name of registrant as specified in its charter)
Delaware 04-2947737
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
101 Arch Street, Boston, Massachusetts 02110-1106
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617)439-3911
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No .
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION Page No.
- ------------------------------ --------
Item 1. Financial Statements
Combined Balance Sheets - June 30, 1996 (Unaudited)
and March 31, 1996 1
Combined Statements of Operations (Unaudited) - For the Three
Months Ended June 30, 1996 and 1995 2
Statement of Changes in Partners' Equity (Deficiency) (Unaudited) -
For the Three Months Ended June 30, 1996 3
Combined Statements of Cash Flows (Unaudited) - For the Three
Months Ended June 30, 1996 and 1995 4
Notes to Combined Financial Statements (Unaudited) 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 12
PART II - OTHER INFORMATION
Items 1-6 14
SIGNATURE 15
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
COMBINED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, March 31,
1996 1996
(Unaudited)
Assets
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 429,247 $ 678,567
Tenant security deposits 5,056 4,067
Other current assets 219,855 67,483
------------ ------------
Total current assets 654,158 750,117
Investments in Local Limited Partnerships
(net of reserve for valuation of
$665,409 and $787,526, respectively) (Note 2) 6,008,926 6,447,339
Marketable securities, at fair value (Note 1) 2,015,419 1,998,381
Rental property at cost, net of
accumulated depreciation 1,125,323 1,135,368
Mortgage escrow deposits 7,656 5,816
Bond trusts 70,140 70,140
Deferred charges, net of accumulated
amortization of $29,827 and $29,021, respectively 50,787 51,593
------------ ------------
Total Assets $ 9,932,409 $ 10,458,754
============ ============
Liabilities and Partners' Equity
Current liabilities:
Accounts payable to affiliates $ 22,328 $ 16,763
Accounts payable and accrued expenses 37,847 94,274
Current portion of bonds payable 117,975 117,975
Accrued interest 98,819 68,819
Tenant security deposits payable 4,763 2,936
------------ ------------
Total current liabilities 281,732 300,767
Bonds payable 1,092,025 1,092,025
------------ ------------
Total Liabilities 1,373,757 1,392,792
------------ ------------
Minority interest in Local Limited Partnership 59,028 59,219
------------ ------------
General, Initial and Investor Limited Partners' Equity 8,512,992 9,006,780
Net unrealized losses on marketable securities (13,368) (37)
------------ ------------
Total Partners' Equity 8,499,624 9,006,743
------------ ------------
Total Liabilities and Partners' Equity $ 9,932,409 $ 10,458,754
============ ============
</TABLE>
The accompanying notes are an integral part of these
financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
COMBINED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months Ended June 30, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
(Note 2)
Revenue:
<S> <C> <C>
Rental $ 46,301 $ -
Investment 31,042 32,930
Other 4,357 2,550
------------- -----------
Total Revenue 81,700 35,480
------------- -----------
Expenses:
General and administrative (includes reimbursements
to an affiliate of $38,748 and $31,929 in 1996 and
1995, respectively) 78,342 72,695
Rental operations, exclusive of depreciation 26,949 -
Depreciation 10,045 -
Amortization 27,075 27,141
Interest 30,035 -
Adjustment to provision for valuation of
investments in Local Limited Partnerships (122,117) -
------------- -----------
Total Expenses 50,329 99,836
------------- -----------
Income (loss) before equity in losses of
Local Limited Partnerships 31,371 (64,356)
Minority interest in loss of Local Limited Partnership 191 -
Equity in losses of Local Limited Partnerships (525,350) (524,898)
------------- -----------
Net Loss $ (493,788) $ (589,254)
============= ===========
Net Loss allocated:
To General Partners $ (4,938) $ (5,893)
To Limited Partners (488,850) (583,361)
------------- -----------
$ (493,788) $ (589,254)
============= ===========
Net Loss per Limited Partnership Unit
(50,000 Units) $ (9.78) $ (11.67)
============= ===========
</TABLE>
The accompanying notes are an integral part of these
financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
(Unaudited)
For the Three Months Ended June 30, 1996
<TABLE>
<CAPTION>
Initial Investor Net
General Limited Limited Unrealized
Partners Partners Partners Losses Total
<S> <C> <C> <C> <C> <C>
Balance at March 31, 1996 $ (344,429) $ 4,648 $ 9,346,561 $ (37) $ 9,006,743
Net change in net unrealized losses
on marketable securities
available for sale - - - (13,331) (13,331)
Net Loss (4,938) - (488,850) - (493,788)
----------- ------- ----------- --------- ------------
Balance at June 30, 1996 $ (349,367) $ 4,648 $ 8,857,711 $ (13,368) $ 8,499,624
=========== ======= =========== ========= ============
</TABLE>
The accompanying notes are an integral part of these
financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
COMBINED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Three Months Ended June 30, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
(Note 2)
<S> <C> <C>
Net cash used for operating activities $ (275,236) $ (43,552)
----------- ----------
Cash flows from investing activities:
Purchases of marketable securities (686,287) (175,656)
Proceeds from sales and maturities of marketable securities 684,625 34,012
Cash distributions received from Local Limited Partnerships 27,578 -
----------- ----------
Net cash provided by (used for) investing activities 25,916 (141,644)
----------- ----------
Net decrease in cash and cash
equivalents (249,320) (185,196)
Cash and cash equivalents, beginning 678,567 308,216
----------- ----------
Cash and cash equivalents, ending $ 429,247 $ 123,020
=========== ==========
</TABLE>
The accompanying notes are an integral part of these
financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS
(Unaudited)
The unaudited financial statements presented herein have been prepared in
accordance with the instructions to Form 10-Q and do not include all of the
information and note disclosures required by generally accepted accounting
principles. These statements should be read in conjunction with the financial
statements and notes thereto included with the Partnership's 10-K for the year
ended March 31, 1996. In the opinion of management, these financial statements
include all adjustments, consisting only of normal recurring adjustments,
necessary to present fairly the Partnership's financial position and results of
operations. The results of operations for the periods may not be indicative of
the results to be expected for the year.
1. Marketable Securities
A summary of marketable securities is as follows:
<TABLE>
<CAPTION>
Gross Gross
Unrealized Unrealized Fair
Cost Gains Losses Value
<S> <C> <C> <C> <C>
Debt securities issued by the
US Treasury and
other US Government
corporations and agencies $ 1,361,101 $ 2,478 $(11,971) $ 1,351,608
Mortgage backed securities 458,765 428 (5,335) 453,858
Other debt securities 208,921 1,236 (204) 209,953
----------- -------- -------- -----------
Marketable securities
at June 30, 1996 $ 2,028,787 $ 4,142 $(17,510) $ 2,015,419
=========== ======== ======== ===========
Debt securities issued by the
US Treasury and
other US Government
corporations and agencies $ 1,394,653 $ 2,050 $ (7,271) $ 1,389,432
Mortgage backed securities 247,382 1,792 (164) 249,010
Other debt securities 356,383 3,783 (227) 359,939
----------- -------- -------- -----------
Marketable securities
at March 31, 1996 $ 1,998,418 $ 7,625 $ (7,662) $ 1,998,381
=========== ======== ======== ===========
</TABLE>
The contractual maturities at June 30, 1996 are as follows:
Fair
Cost Value
Due in one year or less $ 245,135 $ 246,668
Due in one year to five years 1,324,887 1,314,893
Mortgage backed securities 458,765 453,858
----------- -----------
$ 2,028,787 $ 2,015,419
=========== ===========
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
(Unaudited)
1. Marketable Securities (continued)
Actual maturities may differ from contractual maturities because some borrowers
have the right to call or prepay obligations. Proceeds from sales and maturities
were approximately $685,000 and $34,000 for the three months ended June 30, 1996
and 1995, respectively. Included in investment income are gross gains of $33,022
and gross losses of $4,315 which were realized on these sales in the three
months ended June 30, 1996 and gross gains of $33 and gross losses of $308 which
were realized on these sales in the three months ended June 30, 1995.
2. Investments in Local Limited Partnerships
The Partnership has acquired interests in thirty-three Local Limited
Partnerships, excluding Hughes Apartments Ltd. ("Hughes"), which own and operate
multi-family housing complexes, all of which are government-assisted. The
Partnership, as Investor Limited Partner pursuant to the various Local Limited
Partnership Agreements, has generally acquired a 99% interest in the profits,
losses, tax credits and cash flows from operations of each of the Local Limited
Partnerships. Upon dissolution, proceeds will be distributed according to each
respective partnership agreement.
On October 27, 1995, an affiliate of the Partnership's Managing General
Partners, BF Harbour View, Inc., became the Local General Partner of Hughes, a
Local Limited Partnership in which the Partnership has invested. Since the Local
General Partner of Hughes is an affiliate of the Partnership, these combined
financial statements include all activity of Hughes Apartments, Ltd., at March
31, 1996. All significant intercompany balances have been eliminated.
A summary of Investments in Local Limited Partnerships, excluding Hughes, at
June 30, 1996, is as follows:
<TABLE>
<CAPTION>
<S> <C>
Capital contributions to Local Limited Partnerships and purchase
price paid to withdrawing partners of Local Limited Partnerships $ 36,308,830
Cumulative equity in losses of Local Limited Partnerships
(excluding cumulative unrecognized losses of $10,164,171) (31,963,331)
Cumulative cash distributions received from Local Limited Partnerships (1,442,117)
-----------------
Investments in Local Limited Partnerships before adjustment 2,903,382
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 4,770,577
Accumulated amortization of acquisition fees and expenses (999,624)
----------------
Investments in Local Limited Partnerships 6,674,335
Reserve for Valuation of Investments in
Local Limited Partnerships (665,409)
-----------------
$ 6,008,926
=================
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
(Unaudited)
2. Investments in Local Limited Partnerships (continued)
Summarized financial information from the combined financial statements of the
Local Limited Partnerships in which the Partnership has invested, excluding
Hughes, is as follows:
Summarized Balance Sheets - March 31, 1996 (Unaudited)
Assets:
Investment property, net $ 108,094,977
Current assets 4,178,246
Other assets 8,640,426
--------------
Total Assets $ 120,913,649
==============
Liabilities and Partners' Deficit:
Current liabilities $ 5,318,458
Long-term debt 113,128,252
Other liabilities 11,886,430
--------------
Total Liabilities 130,333,140
Partners' Deficit (9,419,491)
--------------
Total Liabilities and Partners' Deficit $ 120,913,649
==============
Summarized Income Statements - for the
three months ended March 31, 1996 (Unaudited)
Rental and other income $ 5,032,543
--------------
Expenses:
Operating 2,452,404
Interest 2,479,304
Depreciation and amortization 1,193,195
--------------
Total Expenses 6,124,903
--------------
Net Loss $ (1,092,360)
==============
Partnership's share of Net Loss $ (1,081,034)
==============
Other Partners' share of Net Loss $ (11,326)
==============
For the three months ended June 30, 1996, the Partnership has not recognized
$574,351 of equity in losses relating to ten Local Limited Partnerships where
cumulative equity in losses and cumulative distributions exceeded its total
investments.
3. Transactions with Affiliates
Boston Financial Property Management ("BFPM"), an affiliate of the Managing
General Partner, currently manages Sierra Vista, Windsor Court, Rolling Green
and Terrace, four properties in which the Partnership has invested. The property
management fee charged to each property is equal to 5% of property gross
revenues. Included in operating expenses in the summarized income statements in
Note 2 to the financial statements is $45,239 of fees earned by BFPM for the
three months ended March 31, 1996.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
(Unaudited)
4. Supplemental Combining Schedules
Balance Sheets
<TABLE>
<CAPTION>
Boston Financial
Qualified Housing Hughes
Tax Credits Apartments
L.P. (A) Ltd.(B) Eliminations Combined
Assets
Current assets:
<S> <C> <C> <C> <C>
Cash and cash equivalents $ 394,536 $ 34,711 $ - $ 429,247
Tenant security deposits - 5,056 - 5,056
Other current assets 211,025 8,830 - 219,855
------------ ------------ -------- -------------
Total current assets 605,561 48,597 - 654,158
Investments in Local Limited
Partnerships 5,931,754 - 77,172 6,008,926
Marketable securities, at fair value 2,015,419 - - 2,015,419
Rental property at cost, net of
accumulated depreciation - 1,125,323 - 1,125,323
Mortgage escrow deposits - 7,656 - 7,656
Bond trusts - 70,140 - 70,140
Deferred charges, net - 50,787 - 50,787
------------ ------------ -------- -------------
Total Assets $ 8,552,734 $ 1,302,503 $ 77,172 $ 9,932,409
============ ============ ======== =============
Liabilities and Partners' Equity (Deficiency)
Current liabilities:
Accounts payable to affiliates $ 22,328 $ - $ - $ 22,328
Accounts payable and accrued
expenses 30,782 7,065 - 37,847
Current portion of bonds payable - 117,975 - 117,975
Accrued interest - 98,819 - 98,819
Tenant security deposits payable - 4,763 - 4,763
------------ ------------ -------- -------------
Total current liabilities 53,110 228,622 - 281,732
Bonds payable - 1,092,025 - 1,092,025
------------ ------------ -------- -------------
Total Liabilities 53,110 1,320,647 - 1,373,757
------------ ------------ -------- -------------
Minority interest in Local Limited
Partnership - - 59,028 59,028
------------ ------------ -------- -------------
General, Initial and Investor
Limited Partners' Equity 8,512,992 (18,144) 18,144 8,512,992
Net unrealized losses (13,368) - - (13,368)
------------ ------------ -------- -------------
Total Partners' Equity 8,499,624 (18,144) 18,144 8,499,624
------------ ------------ -------- -------------
Total Liabilities and
Partners' Equity $ 8,552,734 $ 1,302,503 $ 77,172 $ 9,932,409
============ ============ ======== =============
(A) June 30, 1996. (B) March 31, 1996.
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
(Unaudited)
4. Supplemental Combining Schedules (continued)
Statements of Operations
<TABLE>
<CAPTION>
Boston Financial
Qualified Housing Hughes
Tax Credits Apartments
L.P. (A) Ltd.(B) Eliminations Combined
Revenue:
<S> <C> <C> <C> <C>
Rental $ - $ 46,301 $ - $ 46,301
Investment 31,042 - - 31,042
Other 1,900 2,457 - 4,357
------------- ------------ --------- ------------
Total Revenue 32,942 48,758 - 81,700
------------- ------------ --------- ------------
Expenses:
General and administrative 78,342 - - 78,342
Rental operations, exclusive
of depreciation - 26,949 - 26,949
Depreciation - 10,045 - 10,045
Amortization 26,269 806 - 27,075
Interest - 30,035 - 30,035
Adjustment to provision
for valuation of
investments in Local
Limited Partnerships (122,117) - - (122,117)
-------------- ------------ --------- -------------
Total Expenses (17,506) 67,835 - 50,329
-------------- ------------ --------- ------------
Income (Loss) before equity in
losses of Local Limited
Partnerships 50,448 (19,077) - 31,371
Minority interest in loss of
Local Limited Partnership - - 191 191
Equity in losses of Local
Limited Partnerships (544,236) - 18,886 (525,350)
------------- ------------ --------- ------------
Net Loss $ (493,788) $ (19,077) $ 19,077 $ (493,788)
============= ============ ========= ============
</TABLE>
(A) For the three months ended June 30, 1996. (B) For the three months ended
March 31, 1996.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
(Unaudited)
4. Supplemental Combining Schedules (continued)
Statements of Cash Flows
<TABLE>
<CAPTION>
Boston Financial
Qualified Housing Hughes
Tax Credits Apartments
L.P. (A) Ltd.(B) Eliminations Combined
<S> <C> <C> <C> <C>
Net cash provided by (used for)
operating activities $ (283,863) $ 8,627 $ - $ (275,236)
----------- ---------- --------- ------------
Cash flows from investing activities:
Purchases of marketable securities (686,287) - - (686,287)
Proceeds from sales and maturities
of marketable securities 684,625 - - 684,625
Cash distributions received from
Local Limited Partnerships 27,578 - - 27,578
----------- ---------- --------- ------------
Net cash provided by
investing activities 25,916 - - 25,916
----------- ---------- --------- ------------
Net increase (decrease) in cash and
cash equivalents (257,947) 8,627 - (249,320)
Cash and cash equivalents, beginning 652,483 26,084 - 678,567
----------- ---------- --------- ------------
Cash and cash equivalents, ending $ 394,536 $ 34,711 $ - $ 429,247
=========== ========== ========= ============
</TABLE>
(A) For the three months ended June 30, 1996. (B) For the three months ended
March 31, 1996.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
At June 30, 1996, the Partnership, including the combined entity, had cash and
cash equivalents of $429,247 compared with $678,567 at March 31, 1996. The
decrease is attributable to cash used for operations offset by cash
distributions received from Local Limited Partnerships.
At June 30, 1996, approximately $2,035,000 of cash, cash equivalents and
marketable securities has been designated as reserves. The reserves were
established to be used for working capital of the Partnership and contingencies
related to the ownership of Local Limited Partnership interests. Reserves may be
used to fund Partnership operating deficit, if the Managing General Partner
deems funding appropriate.
Since the Partnership invests as a limited partner, the Partnership has no
contractual duty to provide additional funds to Local Limited Partnerships
beyond its specified investment. Thus, at June 30, 1996, the Partnership had no
contractual or other obligation to any Local Limited Partnership which had not
been paid or provided for.
In the event a Local Limited Partnership encounters operating difficulties
requiring additional funds, the Partnership's management might deem it in its
best interest to provide such funds, voluntarily, in order to protect its
investment. No such event has occurred to date.
Cash Distributions
No cash distributions to Limited Partners were made during the three months
ended June 30, 1996.
Results of Operations
The Partnership's results of operations for the three months ended June 30, 1996
resulted in a net loss of $493,788, as compared to a net loss of $589,254 for
the same period in 1995. The improved net loss position is primarily
attributable to an adjustment to the reserve for valuation of investments in
Local Limited Partnerships. This adjustment is equal to 2225 New York Avenue
L.P.'s loss incurred during the three months ended March 31, 1996.
Property Discussions
Limited Partnership interests have been acquired in thirty-four Local Limited
Partnerships which own and operate rental properties located in nineteen states.
Fourteen of the properties with 774 apartments were newly constructed and twenty
of the properties with 2,091 apartments were rehabilitated.
Most of the thirty-four Local Limited Partnerships have stabilized operations.
The majority of these stabilized properties are operating at break-even or
generating operating cash flow.
A number of properties are experiencing operating difficulties and cash flow
deficits due to a variety of reasons. The Local General Partners of those
properties have funded operating deficits through project expense loans,
subordinated loans or payments from operating escrows. In certain instances
where the Local General Partners have stopped funding deficits because their
obligation to do so has expired or otherwise, the Managing General Partner is
working with the Local General Partners to increase operating income, reduce
expenses or refinance the debt at lower interest rates in order to improve cash
flow.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Property Discussions (continued)
At Pebble Creek, continued deficits caused by high security and repair costs,
and high turnover has resulted in a mortgage default and the mortgage was
assigned to HUD. An affiliate of the Managing General Partner had become
actively involved in discussions on a workout plan to address the mortgage
default and deferred maintenance issues. The Arlington Housing Authority has
expressed some interest in purchasing the mortgage to maintain the stability of
Pebble Creek as a local housing facility. The Local General Partners have
expressed their desire to sell their interests in the property. There is also
the possibility that the current management agent may be replaced. The carrying
value of the Partnership's investment in this Local Limited Partnership is zero
at June 30, 1996.
Cass House and Verdean Gardens, Massachusetts properties which share a common
Local General Partner, continue to operate below break-even in a slow rental
market. The SHARP subsidy agreements for both properties were renegotiated in
1992 and provided additional subsidies. However, since the properties continue
to operate at a deficit and Verdean Gardens requires maintenance work, the Local
General Partner has applied for further subsidies. The restructuring for Cass
House closed in June 1996; the closing for Verdean Gardens is expected to occur
by September 1996. Both restructurings will require contributions from
Partnership reserves. Under the existing subsidy agreements, the Local General
Partner has been supporting the properties' operations through deferred
management fees and guarantees or letters of credit. The carrying value of the
Partnership's investment in these Local Limited Partnerships is zero at June 30,
1996.
At Hughes Apartments, located in Mandan, North Dakota, construction to repair
the damaged units is ongoing, and occupancy has increased. The Managing General
Partner negotiated a forbearance agreement with the lender which included an
infusion of additional capital to cure the mortgage default and fund capital
repairs. A portion of the capital repairs will be funded from Partnership
reserves. As a result of the above actions, the property's occupancy level, as
well as property operations have significantly improved as of June 30, 1996.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
PART II OTHER INFORMATION
Items 1-5 Not applicable
Item 6 Exhibits and reports on Form 8-K
(a)Exhibits - None
(b)Reports on Form 8-K - No reports on Form 8-K were filed
during the quarter ended June 30, 1996.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
DATED: August 13, 1996 BOSTON FINANCIAL QUALIFIED HOUSING
LIMITED PARTNERSHIP
By: 29 Franklin Street, Inc.,
its Managing General Partner
/s/ Georgia Murray
Georgia Murray
A Managing Director, Treasurer
and Chief Financial Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> JUN-30-1996
<CASH> 429,247
<SECURITIES> 2,015,419
<RECEIVABLES> 219,855
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 5,056
<PP&E> 1,125,323
<DEPRECIATION> 0
<TOTAL-ASSETS> 9,932,409<F1>
<CURRENT-LIABILITIES> 281,732<F2>
<BONDS> 1,092,025
0
0
<COMMON> 0
<OTHER-SE> 8,499,624
<TOTAL-LIABILITY-AND-EQUITY> 9,932,409<F3>
<SALES> 0
<TOTAL-REVENUES> 81,700<F4>
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 20,294<F5>
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 30,035
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (493,788)<F6>
<EPS-PRIMARY> $(9.78)
<EPS-DILUTED> 0
<FN>
<F1>Included in total assets: Investments in Local Limited Partnerships
$6,008,926, Deferred charges, net $50,787, Bond Trusts $70,140, Mortgage escrow
$7,656
<F2>Included in current liabilities: Accounts payable to affiliates
$22,328, Accounts payable and accrued expenses $37,847, Current bonds payable
$117,975. Accrued interest $98,819, Security deposits $4,763
<F3>This amount includes: $59,028 of minority interest in the Local Limited
Partnership.
<F4>Total revenue includes: Rental $46,301, Investment $31,042, Other $4,357.
<F5>Included in Other Expenses: An Adjustment to the provision for valuation of
investments in Local Limited Partnerships of $(122,117), General and
Administrative $78,342, Rental operations, exclusive of depreciation $26,949,
Depreciation $10,045 and Amortization $27,075.
<F6>Net loss reflects: equity in losses of Local Limited Partnerships of
$525,350, Minority interest in loss of Local Limited Partnerships $191.
</FN>
</TABLE>
