June 28, 1996
Securities and Exchange Commission
Filer Support, Edgar
Operation Center, Stop 0-7
6432 General Green Way
Alexandria, VA 22312
Boston Financial Qualified Housing Limited Partnership
Form 10-K Annual Report for the Year Ended March 31, 1996
File Number 0-16796
Filing Fee Account Number 0000810663
Dear Sir/Madam:
Pursuant to the requirements of Rule 901(d) of Regulation S-T, enclosed is one
copy of subject report. A check in the amount of $250 in payment of the filing
fee has been deposited to your account, number 9108739, at Mellon Bank.
Very truly yours,
/s/ Marie D.Reynolds
Marie D. Reynolds
Assistant Controller
QH110K-K.96
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 Commission file number
March 31, 1996 0-16796
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Delaware 04-2947737
(State of organization) (I.R.S. Employer
Identification No.)
101 Arch Street, 16th Floor
Boston, Massachusetts 02110-1106
(Address of Principal executive office) (Zip Code)
Registrant's telephone number, including area code 617/439-3911
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange on
Title of each class which registered
None None
Securities registered pursuant to Section 12(g) of the Act:
UNITS OF LIMITED PARTNERSHIP INTEREST
(Title of Class)
50,000
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
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (Subsection 229.405 of this chapter) is not contained herein,
and will not be contained, to the best of registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this
Form 10-K or any amendment to this Form 10-K. [ X ]
State the aggregate sales price of partnership units held by nonaffiliates of
the registrant.
$50,000,000 as of March 31, 1996
<PAGE>
DOCUMENTS INCORPORATED BY REFERENCE: LIST THE FOLLOWING DOCUMENTS IF
INCORPORATED BY REFERENCE AND THE PART OF THE FORM 10-K INTO WHICH THE DOCUMENT
IS INCORPORATED: (1) ANY ANNUAL REPORT TO SECURITY HOLDERS: (2) ANY PROXY OR
INFORMATION STATEMENT AND (3) ANY PROSPECTUS FILED PURSUANT TO RULE 424(b) OR
(c) UNDER THE SECURITIES ACT OF 1933.
Part of Report on
Form 10-K into
Which the Document
Documents incorporated by reference is Incorporated
Post-Effective Amendments Nos. 1 through 3
to the Form S-11 Registration Statement,
File # 33-11910 Part I, Item 1
Report on Form 8-K filed on July 7, 1988 Part I, Item 1
Report on Form 8-K filed on January 20, 1989 Part I, Item 1
Acquisition Reports Part I, Item 1
Prospectus - Sections Entitled:
"Other Government Assistance Programs" Part II, Item 7
"Estimated Use of Proceeds" Part III, Item 13
"Management Compensation and Fees" Part III, Item 13
"Profits and Losses for Tax Purposes, Tax
Credits and Cash Distributions" Part III, Item 13
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED MARCH 31, 1996
TABLE OF CONTENTS
PART 1 Page No.
Item 1 Business K-3
Item 2 Properties K-6
Item 3 Legal Proceedings K-13
Item 4 Submission of Matters to a
Vote of Security Holders K-13
PART II
Item 5 Market for the Registrant's Units
and Related Security Holder Matters K-14
Item 6 Selected Financial Data K-15
Item 7 Management's Discussion and Analysis of Financial
Condition and Results of Operations K-16
Item 8 Financial Statements and Supplementary Data K-18
Item 9 Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure K-18
PART III
Item 10 Directors and Executive Officers
of the Registrant K-19
Item 11 Management Remuneration K-20
Item 12 Security Ownership of Certain Beneficial
Owners and Management K-21
Item 13 Certain Relationships and Related
Transactions K-21
PART IV
Item 14 Exhibits, Financial Statement Schedule
and Reports on Form 8-K K-23
SIGNATURES K-24
<PAGE>
PART I
Item 1. Business
Boston Financial Qualified Housing Limited Partnership (the "Partnership") is a
limited partnership formed on January 22, 1987 under the Uniform Limited
Partnership Act of the State of Delaware. The Partnership's partnership
agreement ("Partnership Agreement") authorized the sale of up to 50,000 units of
Limited Partnership Interest ("Units") at $1,000 per Unit, adjusted for certain
discounts. The Partnership raised $49,963,740 ("Gross Proceeds"), net of
discounts of $36,260, through the sale of 50,000 Units. Such amounts exclude
five unregistered Units previously acquired for $5,000 by the Initial Limited
Partner, which is also one of the General Partners. The offering of Units
terminated on April 29, 1988.
The Partnership is engaged solely in the business of real estate investment.
Accordingly, a presentation of information about industry segments is not
applicable and would not be material to an understanding of the Partnership's
business taken as a whole. On October 27, 1995, an affiliate of the
Partnership's Managing General Partners, BF Harbour View, Inc., became the Local
General Partner of Hughes Apartments, Ltd. ("Hughes"), a Local Limited
Partnership in which the Partnership has invested. As a result, the Partnership
is deemed to have control over Hughes and commencing on November 1, 1995, the
accompanying financial statements are presented in combined form to conform with
the required accounting treatment under generally accepted accounting
principles. This change only affects the presentation of the Partnership's
financial condition and operating results, not the business of the Partnership.
The Partnership has invested as a limited partner in other limited partnerships
("Local Limited Partnerships") which own and operate residential apartment
complexes ("Properties"), all of which benefit from some form of federal, state
or local assistance programs and which qualify for the low-income housing tax
credits ("Tax Credits") that were added to the Internal Revenue Code (the "Code)
by the Tax Reform Act of 1986. The investment objectives of the Partnership
include the following: (i) to provide current tax benefits in the form of Tax
Credits which qualified limited partners may use to offset their federal income
tax liability; (ii) to preserve and protect the Partnership's capital; (iii) to
provide limited cash distributions from property operations which are not
expected to constitute taxable income during the expected duration of the
Partnership's operations; and (iv) to provide cash distributions from sale or
refinancing transactions. There cannot be any assurance that the Partnership
will attain any or all of these investment objectives.
Table A on the following page lists the properties owned by the Local Limited
Partnerships in which the Partnership has invested. Item 7 of this Report
contains other significant information with respect to such Local Limited
Partnerships. As required by applicable rules, the terms of the acquisition of
Local Limited Partnership interests have been described in supplements to the
Prospectus and collected in three post-effective amendments to the Registration
Statement and in two Form 8-K filings listed in Part IV of this Report on Form
10-K (collectively, the "Acquisition Reports"); such descriptions are
incorporated herein by this reference.
<PAGE>
TABLE A
SELECTED LOCAL LIMITED
PARTNERSHIP DATA
Properties owned by Date
Local Limited Interest
Partnerships Location Acquired
- --------------------- --------------------- -------------
Barrington Manor Fargo, ND 12/31/87
Bingham Bingham, ME 12/30/87
Birmingham Randolph, ME 12/30/87
Bittersweet Randolph, MA 10/27/87
Boulevard Commons Chicago, IL 07/14/88
Brentwood Manor II Nashua, NH 01/20/89
Cass House/Roxbury Hills Boston, MA 06/08/88
Chestnut Lane Newnan, GA 08/01/88
Coronado Courts Douglas, AZ 12/18/87
Country Estates Glennville, GA 03/01/88
600 Dakota Wahpeton, ND 10/01/88
Delmar Gillette, WY 10/01/88
Duluth Sioux Falls, SD 10/01/88
Elmore Hotel Great Falls, MT 12/22/87
Graver Inn Fargo, ND 12/31/87
Hazel-Winthrop Chicago, IL 12/30/87
Heritage Court Dundalk, MD 01/20/89
Hughes Mandan, ND 12/31/87
Lakeview Heights Clearfield, UT 12/30/87
Logan Plaza New York, NY 05/10/88
New Medford Hotel Medford, OR 12/22/87
Heritage View New Sweden, ME 12/30/87
Pebble Creek Arlington, TX 06/20/88
Hillcrest III Perryville, MO 03/31/89
Pine Village Pine Mountain, GA 03/01/88
Rolling Green Edmond, OK 09/30/87
Sierra Pointe Las Vegas, NV 09/01/87
Sierra Vista Aurora, CO 09/30/87
Talbot Village Talbotton, GA 03/01/88
Terrace Oklahoma City, OK 11/20/87
Trenton Salt Lake City, UT 12/30/87
Verdean Gardens New Bedford, MA 05/31/88
Willowpeg Village Rincon, GA 03/01/88
Windsor Court Aurora, CO 12/30/87
* The Partnership's interest in profits and losses of each Local Limited
Partnership arising from normal operations is 99%, with the exception of
Hazel-Winthrop, Logan Plaza and Boulevard Commons, in which the
Partnership has a 98% interest, a 98.99% interest and a 98.974% interest.
Profits and losses arising from sale or refinancing transactions are
allocated in accordance with the respective Local Limited Partnership
Agreements.
<PAGE>
Although the Partnership's investments in Local Limited Partnerships are not
subject to seasonal fluctuations, the Partnership's equity in losses of Local
Limited Partnerships, to the extent it reflects the operations of individual
properties, may vary from quarter to quarter based upon changes in occupancy and
operating expenses as a result of seasonal factors.
Under the terms of the Partnership Agreement, the Partnership initially
designated 5% of the Gross Proceeds from the sale of Units as a reserve for
working capital of the Partnership and contingencies related to ownership of
Local Limited Partnership interests. The Managing General Partner may increase
or decrease such reserves from time to time, as it deems appropriate. As of
March 31, 1996, the Managing General Partner has designated approximately
$2,043,000 of cash, cash equivalents and marketable securities as such reserve.
Approximately $264,000 has been paid for legal fees and related expenses in
connection with the Mod Rehab issue as previously reported. Additionally, the
Partnership has paid approximately $152,000 of tax credit adjusters to certain
Local Limited Partnerships as a result of their generating higher than expected
Tax Credits to be passed through to investors. Also, legal fees relating to
various property issues totaling approximately $66,000 have been paid from
reserves.
The Partnership's primary source of working capital is investment income earned
on the reserves. Additionally, the Partnership expects to receive distributions
from cash flows from operations of its Local Limited Partnership interests in
future years. It is expected that these sources of funds will provide adequate
working capital to the Partnership.
Each Local Limited Partnership has, as its general partners ("Local General
Partners"), one or more individuals or entities not affiliated with the
Partnership or its General Partners. In accordance with the partnership
agreements under which such entities are organized ("Local Limited Partnership
Agreements"), the Partnership depends on the Local General Partners for the
management of each Local Limited Partnership. As of March 31, 1996, the
following Local Limited Partnerships have a common Local General Partner or
affiliated group of Local General Partners accounting for the specified
percentage of the original investment in Local Limited Partnerships: (i) Rolling
Green, Sierra Vista, Terrace, Windsor, and Sierra Point Limited Partnerships,
representing 29.7%, have Phillip Abrams Ventures, Inc. and PWD, Inc., as Local
General Partners; (ii) Graver Inn, Barrington Manor, Hughes, 600 Dakota and
Duluth Limited Partnerships, representing 4.35%, have Jerry L. Meide and RABB,
Inc. as General Partners; (iii) New Medford and Oregon Landmark Limited
Partnerships, representing 6.65%, have WHP Holdings, Inc. as the Local General
Partner; (iv) Delmar, Trenton and Lakeview Heights Limited Partnerships,
representing 2.58%, have PSC Real Estate, Inc. and J. Michael Queenan &
Associates, Inc. (which is a corporation controlled by J. Michael Queenan) as
Local General Partners; (v) Bingham, Birmingham, and New Sweden Limited
Partnerships, representing 1.95%, have Charles B. Mattson and Todd Mattson as
Local General Partners; (vi) Cass House and Verdean Gardens Limited
Partnerships, representing 12.4%, have Cruz Development Corporation as Local
General Partners; and (vii) Willowpeg Village, Pine Village, Glennville, Talbot
Village and Chestnut Lane Limited Partnership, representing 2.73% have Michael
G. Kistler and William E. Johnson as General Partners. The Local General
Partners of the remaining Local Limited Partnerships are identified in the
Acquisition Reports, which are incorporated herein by reference.
The Properties owned by Local Limited Partnerships in which the Partnership has
invested are, and will continue to be, subject to competition from existing and
future apartment complexes in the same areas. The continued success of the
Partnership will depend on many outside factors, most of which are beyond the
control of the Partnership and which cannot be predicted at this time. Such
factors include general economic and real estate market conditions, both on a
national basis and in those areas where the Properties are located, the
availability and cost of borrowed funds, real estate tax rates, operating
expenses, energy costs, and government regulations. In addition, other risks
inherent in real estate investment may influence the ultimate success of the
Partnership, including (i) possible reduction in rental income due to an
inability to maintain high occupancy levels or adequate rental levels, (ii)
possible adverse changes in general economic conditions and adverse local
conditions, such as competitive overbuilding, or a decrease in employment or
adverse changes in real estate laws, including building codes, and (iii) the
possible future adoption of rent control legislation which would not permit
increased costs to be passed on to the tenants in the form of rent increases, or
which would suppress the ability of the Local Limited Partnerships to generate
operating cash flow. Since all of the Properties benefit from some form of
government
<PAGE>
assistance, the Partnership is subject to the risks inherent in that
area including decreased subsidies, difficulties in finding suitable tenants and
obtaining permission for rent increases. In addition, any Tax Credits allocated
to investors with respect to a Property are subject to recapture to the extent
that the Property or any portion thereof ceases to qualify for the Tax Credits.
Other future changes in federal and state income tax laws affecting real estate
ownership or limited partnerships could have a material and adverse affect on
the business of the Partnership.
The Partnership is managed by 29 Franklin Street, Inc., the Managing General
Partner of the Partnership. The other General Partner of the Partnership is
Franklin 29 Limited Partnership. To economize on direct and indirect payroll
costs, the Partnership, which does not have any employees, reimburses The Boston
Financial Group Limited Partnership, an affiliate of the General Partner, for
certain expenses and overhead costs. A complete discussion of the management of
the Partnership is set forth in Item 10 of this Report.
Item 2. Properties
The Partnership owns limited partnership interests in thirty-four Local Limited
Partnerships which own and operate Properties, all of which benefit from some
form of federal, state or local assistance programs which qualify for the Tax
Credits added to the Code by the Tax Reform Act of 1986. The Partnership's
ownership interest in each Local Limited Partnership is generally 99%, except
for Hazel-Winthrop, Logan Plaza and Boulevard Commons, where the Partnership's
ownership interest is 98.99%, 98% and 98.974%, respectively, of each.
Each of the Local Limited Partnerships has received an allocation of Tax Credits
by its relevant state tax credit agency. In general, the Tax Credit runs for ten
years from the date the Property is placed in service. The required holding
period (the "Compliance Period") of the Properties is fifteen years. During
these fifteen years, the Properties must satisfy rent restrictions, tenant
income limitations and other requirements, as promulgated by the Internal
Revenue Service, in order to maintain eligibility for the Tax Credit at all
times during the Compliance Period. Once a Local Limited Partnership has become
eligible for the Tax Credits, it may lose such eligibility and suffer an event
of recapture if its Property fails to remain in compliance with the
requirements. To date, none of the Local Limited Partnerships have suffered an
event of recapture of Tax Credits.
In addition, some of the Local Limited Partnerships have obtained one or a
combination of different types of loans such as: i) below market rate interest
loans; ii) loans provided by a redevelopment agency of the town or city in which
the property is located at favorable terms; and iii) or loans that have
repayment terms that are based on a percentage of cash flow.
The schedules on the following pages provide certain key information on the
Local Limited Partnership interests acquired by the Partnership.
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Local Limited Partnership Total Paid Mtge. Loans Occupancy at
Property Name Number of Committed at Through Payable at Type of March 31,
Property Location Apt. Units March 31, March 31, December 31, Subsidy* 1996
1996 1996 1995
- --------------------------------- ----------- ------------------------------------------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Barrington Manor
Limited Partnership
Barrington Manor
Fargo, ND 18 175,200 175,200 $ 650,000 Section 8 72%
Bingham Family Housing
Associates (A Limited
Partnership)
Bingham
Bingham, ME 24 240,900 240,900 1,168,691 FmHA 92%
Birmingham Housing Associates
(A Limited Partnership)
Birmingham Village
Randolph, ME 24 236,520 236,520 1,163,308 FmHA 100%
MB Bittersweet Associates Limited
Partnership (a Massachusetts
Limited Partnership)
Bittersweet
Randolph, MA 35 620,500 620,500 2,505,823 None 94%
Boulevard Commons
Limited Partnership
Boulevard Commons
Chicago, IL 212 4,527,850 4,527,850 10,512,596 Section 8 94%
Michael J. Dobens
Limited Partnership I
Brentwood Manor II
Nashua, NH 22 300,000 300,000 784,915 Section 8 100%
<PAGE>
Capital Contributions
Local Limited Partnership Total Paid Mtge. Loans Occupancy at
Property Name Number of Committed at Through Payable at Type of March 31,
Property Location Apt. Units March 31, March 31, December 31, Subsidy* 1996
1996 1996 1995
- --------------------------------- ----------- ------------------------------------------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Cass House Associates Limited
Partnership(a Massachusetts
Limited Partnership)
Cass House/Roxbury Hills
Boston, MA 111 2,141,090 2,141,090 8,251,189 None 95%
Chestnut Lane Limited
Partnership (A Limited
Partnership)
Chestnut Lane
Newnan, GA 50 282,510 282,510 1,477,627 None 98%
Coronado Courts Limited
Partnership
Coronado Courts
Douglas, AZ 145 1,800,000 1,800,000 3,791,839 Section 8 99%
Glennville Properties
(A Limited Partnership)
Country Estates
Glennville, GA 24 121,910 121,910 597,310 FmHA 95%
600 Dakota Properties
Limited Partnership
600 Dakota
Wahpeton, ND 28 113,000 113,000 676,153 Section 8 79%
Delmar Housing Associates
Limited Partnership
Delmar
Gillette, WY 16 128,000 128,000 423,220 Section 8 94%
<PAGE>
Capital Contributions
Local Limited Partnership Total Paid Mtge. Loans Occupancy at
Property Name Number of Committed at Through Payable at Type of March 31,
Property Location Apt. Units March 31, March 31, December 31, Subsidy* 1996
1996 1996 1995
- --------------------------------- ----------- ------------------------------------------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Duluth Limited Partnership
Duluth
Sioux Falls, SD 11 107,000 107,000 261,364 Section 8 97%
Oregon Landmark-Three
Limited Partnership
Elmore Hotel
Great Falls, MT 60 1,022,000 1,022,000 3,409,618 Section 8 92%
Graver Inn
Limited Partnership
Graver Inn
Fargo, ND 70 819,500 819,500 2,080,853 Section 8 93%
Hazel-Winthrop Apartments (An
Illinois Limited Partnership)
Hazel-Winthrop
Chicago, IL 30 350,400 350,400 2,130,358 Section 8 100%
Heritage Court
Limited Partnership
Park Terrace
Dundalk, MD 101 2,048,750 2,048,750 3,567,373 FmHA 100%
Hughes Apartments
Limited Partnership
Hughes
Mandan, ND 47 379,453 379,453 1,210,000 Section 8 96%
<PAGE>
Capital Contributions
Local Limited Partnership Total Paid Mtge. Loans Occupancy at
Property Name Number of Committed at Through Payable at Type of March 31,
Property Location Apt. Units March 31, March 31, December 31, Subsidy* 1996
1996 1996 1995
- --------------------------------- ----------- ------------------------------------------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Lakeview Heights Apartments,
Ltd. (A Limited Partnership)
Lakeview Heights
Clearfield, UT 83 584,000 584,000 2,844,555 Section 8 98%
Logan Plaza Associates
Logan Plaza
New York NY 130 2,240,000 2,240,000 11,337,095 None 97%
New Medford Hotel Associates
Limited Partnership
New Medford Hotel
Medford, OR 76 1,417,765 1,417,765 3,266,176 Section 8 100%
New Sweden Housing Associates
(A Limited Partnership)
Heritage View
New Sweden, ME 24 237,250 237,250 1,168,329 FmHA 96%
2225 New York Avenue, Ltd.
(A Limited Partnership)
Pebble Creek
Arlington, TX 352 2,512,941 2,512,941 7,951,425 Section 8 99%
Perryville Associates I, L.P.
(A Limited Partnership)
Hillcrest III
Perryville, MO 24 128,115 128,115 593,311 FmHA 90%
<PAGE>
Capital Contributions
Local Limited Partnership Total Paid Mtge. Loans Occupancy at
Property Name Number of Committed at Through Payable at Type of March 31,
Property Location Apt. Units March 31, March 31, December 31, Subsidy* 1996
1996 1996 1995
- --------------------------------- ----------- ------------------------------------------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Pine Village Limited Partnership
(A Limited Partnership)
Pine Village
Pine Mountain, GA 36 188,340 188,340 941,419 FmHA 88%
Rolling Green Housing Associates,
Ltd. (a Limited Partnership)
Rolling Green
Edmond, OK 166 1,855,650 1,855,650 4,844,837 Section 8 100%
Sierra Vista Housing Associates,
Ltd. (a Limited Partnership)
Sierra Pointe
Las Vegas, NV 160 3,016,008 3,016,008 7,221,499 Section 8 95%
Sundance Housing Associates,
Ltd. (A Limited Partnership)
Sierra Vista
Aurora, CO 209 2,271,751 2,271,751 6,361,818 Section 8 99%
Talbot Village Limited Partnership
(A Limited Partnership)
Talbot Village
Talbotton, GA 24 121,180 121,180 602,938 FmHA 100%
Terrace Housing Associates,
Ltd. (a Limited Partnership)
Terrace
Oklahoma City, OK 206 1,950,550 1,950,550 5,298,860 Section 8 97%
<PAGE>
Capital Contributions
Local Limited Partnership Total Paid Mtge. Loans Occupancy at
Property Name Number of Committed at Through Payable at Type of March 31,
Property Location Apt. Units March 31, March 31, December 31, Subsidy* 1996
1996 1996 1995
- --------------------------------- ----------- ------------------------------------------------- -------------
<S> <C> <C> <C> <C> <C> <C>
Trenton Apartments, Ltd.
(A Limited Partnership)
Trenton
Salt Lake City, UT 37 237,250 237,250 849,224 Section 8 100%
Verdean Gardens Associates Limited
Partnership (a Massachusetts
limited partnership)
Verdean Gardens
New Bedford, MA 110 2,409,000 2,409,000 7,877,121 None 86%
Willowpeg Village Limited Partnership
(A Limited Partnership)
Willowpeg Village
Rincon, GA 57 288,400 288,400 1,483,403 FmHA 95%
Windsor Court Housing Associates,
Ltd. (a Limited Partnership)
Windsor Court
Aurora, CO 143 1,815,500 1,815,500 4,540,483 Section 8 97%
------------ ------------ ------------ ------------
2,865 36,688,283 36,688,283 111,844,730
Less: Hughes Apartments 379,453 379,453 1,210,000
------------ ------------ ------------
$ 36,308,830 $ 36,308,830 $110,634,730
============ ============ ============
</TABLE>
*FmHA This subsidy, which is authorized under Section 515 of the
Housing Act of 1949, can be one or a combination of different
types of financing. For instance, FmHA may provide 1) direct
below-market-rate mortgage loans for rural rental housing; 2)
mortgage interest subsidies which effectively lower the
interest rate of the loan to 1%; 3) a rental assistance
subsidy to tenants which allows them to pay no more than 30%
of their monthly income as rent with the balance paid by the
federal government; or 4) a combination of any of the above.
Section 8 This subsidy, which is authorized under Section 8 of Title
II of the Housing and Community Development Act of 1974,
allows qualified low-income tenants to pay 30% of their
monthly income as rent with the balance paid by the federal
government.
<PAGE>
One Local Limited Partnership, Boulevard Commons, invested in by the Partnership
represents more than 10% of the total capital contributions to be made to Local
Limited Partnerships by the Partnership. Boulevard Commons is a 212-unit
rehabilitation apartment complex with six buildings located in Chicago,
Illinois.
Boulevard Commons is financed by a first mortgage at 10% interest, insured by
the U.S. Department of Housing and Urban Development ("HUD"), and was refinanced
at 8.875% on April 6, 1995. Principal and interest payments of $74,916 commenced
June 1, 1995 and continue to May 1, 2035. In addition to this, there is a junior
mortgage payable to the City of Chicago which bears interest at 3% per annum.
The maturity date of this note is the later of July 1, 2030, or the retirement
of the FHA insured mortgage.
The duration of the leases for occupancy in the Properties described above is
six to twelve months. The Managing General Partner believes the Properties
described herein are adequately covered by insurance.
Additional information required under this Item, as it pertains to the
Partnership, is contained in Items 1, 7, and 8 of this Report.
Item 3. Legal Proceedings
The Partnership is not a party to any pending legal or administrative
proceeding, and to the best of its knowledge, no legal or administrative
proceeding is threatened or contemplated against it.
Item 4. Submission of Matters to a Vote of Security Holders
None.
<PAGE>
PART II
Item 5. Market for the Registrant's Units and Related Security Holder Matters
There is no public market for the Units, and it is not expected that a public
market will develop. If a Limited Partner desires to sell Units, the buyer of
those Units will be required to comply with the minimum purchase and retention
requirements and investor suitability standards imposed by applicable federal or
state securities laws and the minimum purchase and retention requirements
imposed by the Partnership. The price to be paid for the Units, as well as the
commissions to be received by any participating broker-dealers, will be subject
to negotiation by the Limited Partner seeking to sell his Units. Units will not
be redeemed or repurchased by the Partnership.
The Partnership Agreement does not impose on the Partnership or its General
Partners any obligation to obtain periodic appraisals of assets or to provide
Limited Partners with any estimates of the current value of Units.
As of March 31, 1996, there were 3,330 record holders of Units of the
Partnership.
Cash distributions, when made, are paid annually. No cash distributions were
paid during the years ended March 31, 1996, 1995 and 1994.
<PAGE>
Item 6. Selected Financial Data
The following table sets forth selected financial information regarding the
Partnership's financial position and operating results. This information should
be read in conjunction with Management's Discussion and Analysis of Financial
Condition and Results of Operations and the Financial Statements and Notes
thereto, which are included in Items 7 and 8 of this Report.
<TABLE>
<CAPTION>
March 31, March 31, March 31, March 31, March 31,
1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
Revenue (D) $ 191,229 $ 77,348 $ 204,552 $ 176,681 $ 177,648
Equity in losses of Local Limited
Partnerships (D) (2,657,886) (2,732,227) (3,076,265) (4,468,387) (4,312,822)
Net loss (2,278,003) (3,142,627) (3,048,198) (4,532,734) (6,435,819)
Per Limited Partnership Unit (45.10) (62.22) (60.35) (89.75) (127.43)
Cash, cash equivalents and
marketable securities (D) 2,676,948 2,374,552 2,324,577 2,299,837 2,342,896
Investment in Local Limited
Partnerships, at original cost 41,458,860 41,422,507 41,422,507 41,422,507 41,422,507
Total assets (A) 10,458,754 11,358,168 14,487,572 17,626,031 22,072,094
Cash distribution (C) -- -- -- -- 202,270
Per Limited Partnership Unit (C) -- -- -- -- 4.00
Other Data:
Passive loss (B) (6,502,105) (6,757,956) (7,213,910) (7,195,871) (8,849,490)
Per Limited Partnership Unit (B) (128.74) (133.81) (142.84) (142.48) (175.22)
Portfolio income (B) 442,059 321,042 420,572 609,370 607,908
Per Limited Partnership Unit (B) 8.75 6.36 8.33 12.07 12.04
Low-Income Housing
Tax Credits (B) 7,652,372 7,512,822 7,490,806 7,479,988 7,522,003
Per Limited Partnership Unit (B) 151.31 148.55 148.11 147.89 148.74
Local Limited Partnership interests
owned at end of period 34 34 34 34 34
</TABLE>
(A) Total assets include the net investment in Local Limited Partnerships.
(B) Income tax information is as of December 31, the year end of the
Partnership for income tax purposes. The Low-Income Housing Tax Credit
per Limited Partnership Unit for 1995, 1994, 1993, 1992 and 1991,
represents the amount distributed to individual investors based upon
50,000 outstanding Units. Corporate investors received Low-Income
Housing Tax Credits of $161.23, $158.40, $158.11, $157.89 and 158.40
per Unit in 1995, 1994, 1993, 1992 and 1991, respectively.
(C) The cash distribution represents a return of capital.
(D) March 31, 1996 revenue includes $28,827 of rental and other revenues
from Hughes Apartments that is included in the combined revenue of the
Statement of Operations.
March 31, 1996 equity in losses of Local Limited Partnerships does not
include $13,329 of losses from Hughes Apartments that have been
combined with the Partnership's loss in the Statements of Operations
March 31, 1996 cash and cash equivalents, and marketable securities
include $26,084 of cash equivalents from Hughes Apartments that has
been combined with the Partnership in the Balance Sheet.
<PAGE>
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
At March 31, 1996, the Partnership cash and cash equivalents of $678,567
compared with $308,216 at March 31, 1995. The increase is attributable to cash
distributions received from Local Limited Partnerships and proceeds from the
sales and maturities of securities in excess of cash expenditures for the
purchase of marketable securities, partially offset by cash used for operations.
At March 31, 1996, approximately $2,043,000 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 deficits, 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 March 31, 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 interests 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 years ended
March 31, 1996. In the event that distributions are received from Local Limited
Partnerships, the Managing General Partner has decided that such amounts will be
used to increase reserves. No assurance can be given as to the amounts of future
distributions from the Local Limited Partnerships since many of the Properties
benefit from some type of federal or state subsidy, and as a consequence, are
subject to restrictions on cash distributions. Therefore, it is expected that
only a limited amount of cash will be distributed to investors from this source
in the future.
Results of Operations
1996 versus 1995
The Partnership's results of operations for the year ended March 31, 1996
resulted in a net loss of $2,278,003, as compared to a net loss of $3,142,627
for the same period in 1995. The improved net loss position is primarily
attributable to the Mod Rehab Settlement, which resulted in reimbursement of
legal costs incurred by the Partnership on behalf of the Mod Rehab Program
Properties, as well as an increase in investment revenue due to improved market
conditions and an adjustment to the reserve for valuation of investments in
Local Limited Partnerships.
1995 versus 1994
The Partnership's operating results for the year ended March 31, 1995 resulted
in a net loss of $3,142,627, as compared to a net loss of $3,048,198 for the
same period in 1994. The slight increase is primarily attributable to an
increase in the provision for valuation of Investments in the Local Limited
Partnerships and a decline in investment income resulting from lower investment
rates. These increases were partially offset by a decline in equity in losses of
Local Limited Partnerships.
The increase in the adjustment to reserve for valuation of Investments in Local
Limited Partnerships is the result of a $273,000 reserve against the
Partnership's investment in one Local Limited Partnership. Partially offsetting
this amount is a decrease in the reserve amount related to 2225 New York Avenue,
L.P. equal to the loss incurred during the year ended December 31, 1994.
<PAGE>
The equity in losses of Local Limited Partnerships decreased for the year ended
March 31, 1995, as compared with the same period in 1994 primarily as a result
of an increase in rental income in 1994 and a decrease in depreciation as assets
become or approach being fully depreciated.
Effect of recently issued Accounting Standard
The Financial Accounting Standards Board has issued Statement of Accounting
Standards No. 121, Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to Be Disposed Of, which is effective for fiscal years
beginning after December 15, 1995. This standard requires that long-lived assets
be reviewed for recoverability. Impairment losses are recognized when future
cash flows or other benefits are less than the carrying amount of the asset. The
Partnership plans to adopt the new standard for its year ending March 31, 1997,
however, it is not expected to have a significant effect on financial position
or results of operations.
Low-Income Housing Tax Credits
The 1995, 1994 and 1993 Low-Income Housing Tax Credits per Unit for individuals
were $151.31, $148.55 and $148.11, respectively. The 1995, 1994 and 1993
Low-Income Housing Tax Credits per Unit for corporations were $161.23, $158.40
and $158.11, respectively. The Tax Credits per Limited Partnership Unit
stabilized in 1991 at approximately $148.00 per Unit for individuals and $158.00
per Unit for corporations. The credits are expected to remain stable for the two
years subsequent to 1995 and then they are expected to decrease as certain
properties reach the end of the ten-year credit period.
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. All of the
properties have completed construction or rehabilitation and initial rent-up.
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.
At Pebble Creek, continued deficits caused by high security and repair costs,
and high turnover has resulted in a mortgage default. An affiliate of the
Managing General Partner had become actively involved in discussions with the
bondholder on a workout plan to refinance the mortgage and address the mortgage
default and deferred maintenance issues. Despite these efforts, the loan has
recently been assigned to HUD. Because of the level of Section 8 subsidy, only
state and local housing agencies, or qualified non-profits will be able to bid
on the mortgage. As previously reported, the Local General Partners have
expressed their desire to sell their ownership interests in the property.
However, they are not actively pursuing such a sale. The carrying value of the
Partnership's investment in this Local Limited Partnership is zero at March 31,
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
<PAGE>
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 March 31, 1996.
At Hughes Apartments, located in Mandan, North Dakota, rental losses due to
flood damage resulted in a mortgage default. Effective October 27, 1995, an
affiliate of the Partnership's Managing General Partner replaced the Local
General Partner. Construction to repair the damaged units is ongoing, and
occupancy has increased partly because the local Housing Authority has
reinstated Hughes on their resident referral list. The Managing General Partner
negotiated a forbearance agreement with the lender which included an infusion of
additional capital to cure the default and fund capital repairs. A portion of
the capital repairs will be funded from Partnership reserves.
It was previously reported that an affiliate of The Boston Financial Group
Limited Partnership had been negotiating to purchase the Local General Partner
interests in five properties in which the Partnership has invested in
(collectively, the "Colorado Partnerships") from Phillip Abrams Ventures, Inc.
and PDW, Inc., the current Local General Partners. It now appears that this
transaction will not occur. Instead, the Local General Partner will retain their
interests in the Colorado Partnerships and Boston Financial will continue to act
as property manager for these properties.
Inflation and Other Economic Factors
Inflation had no material impact on the operations or financial condition of the
Partnership for the years ended March 31, 1996, 1995 and 1994.
Item 8. Financial Statements and Supplementary Data
Information required under this Item is submitted as a separate section of this
Report. See Index on page F-1 hereof.
Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure
On November 10, 1995, the firm of Arthur Andersen LLP was dismissed as the
principal accountant to audit the registrant's financial statements. Reports on
the financial statements of the registrant by Arthur Andersen LLP for the years
ending March 31, 1995 and 1994, respectively, did not contain any adverse
opinion or disclaimer of opinion, and were not qualified or modified as to
uncertainty, audit scope, or accounting principles. The decision to change
accountants was approved by the Board of Directors of the General Partner of the
registrant.
During the years ending March 31, 1995 and 1994, respectively, and for the
subsequent interim period, April 1, 1995 through November 10, 1995, there were
no disagreements with Arthur Andersen LLP on any matter of accounting principles
or practices, financial statement disclosure, or auditing scope or procedure.
The firm of Coopers & Lybrand L.L.P. has been engaged as principal accountant to
audit the registrant's financial statements.
<PAGE>
PART III
Item 10. Directors and Executive Officers of the Registrant
The Managing General Partner of the Partnership is 29 Franklin Street, Inc., a
Massachusetts corporation (the "Managing General Partner" or "Franklin, Inc."),
an affiliate of The Boston Financial Group Limited Partnership ("Boston
Financial"), a Massachusetts limited partnership. George Fantini, Jr., a Vice
President of the Managing General Partner resigned his position effective June
30, 1995.
The Managing General Partner was incorporated in January 1987. William E.
Haynsworth is the Chief Operating Officer of the Managing General Partner, and
had the primary responsibility for evaluating, selecting and negotiating
investments for the Partnership. The Investment Committee of the Managing
General Partner approved all investments. The names and positions of the
principal officers and the directors of the Managing General Partner are set
forth below.
Name Position
Georgia Murray Managing Director, Treasurer
and Chief Financial Officer
Fred N. Pratt, Jr. Managing Director
William E. Haynsworth Managing Director, Vice President and
Chief Operating Officer
Paul F. Coughlan Vice President
Peter G. Fallon, Jr. Vice President
Donna C. Gibson Vice President
Randolph G. Hawthorne Vice President
A. Harold Howell Vice President
The other General Partner of the Partnership is Franklin 29 Limited Partnership,
a Massachusetts limited partnership ("Franklin L.P.") that was organized in
January 1987. The General Partners of Franklin L.P. are Messrs. Pratt,
Hawthorne, Coughlan and Fallon.
The Managing General Partner provides day-to-day management of the Partnership.
Compensation is discussed in Item 11 of this report. Such day-to-day management
does not include the management of the Properties.
The business experience of each of the persons listed above is described below.
There is no family relationship between any of the persons listed in this
section.
Georgia Murray, age 45, is a graduate of Newton College of the Sacred Heart
(B.A., 1972). She joined Boston Financial Management Company in 1973 and is
currently a Senior Vice President of Boston Financial and a member of its Board
of Directors. Ms. Murray currently serves on the firm's senior leadership team,
and oversees the firm's efforts in structuring tax credit investments for
corporate investors. Previously she managed Boston Financial's Investment Real
Estate, Asset Management, and Property Management divisions. She is a member of
the Board of Directors of the General Partner of Boston Financial. She also
serves as a director of Atlantic Bank and Trust Company.
Fred N. Pratt, Jr., age 51, graduated from Tufts University and the Amos Tuck
School of Business Administration at Dartmouth College. Mr. Pratt was one of the
original employees of Boston Financial when it was founded in late 1969. He
currently serves as Boston Financial's Chief Executive Officer and Chairman of
the Board of Directors of the General Partner of Boston Financial.
William E. Haynsworth, age 56, graduated from Dartmouth College and Harvard Law
School. Mr. Haynsworth was Acting Executive Director of the Massachusetts
Housing Finance Agency, where he was also General Counsel, prior to becoming a
Vice President of Boston Financial in 1977 and a Senior Vice President in 1986.
He has also
<PAGE>
served as Director of Non-Residential Development of the Boston
Redevelopment Authority and as an associate of the law firm of Goodwin, Procter
& Hoar in Boston. Mr. Haynsworth is a member of the Board of Directors of the
General Partner of Boston Financial and senior leadership team, participating in
the structuring of real estate investments and the development of new business
opportunities.
Paul F. Coughlan, age 52, is a graduate of Brown University (A.B., 1965) and
served in the United States Navy before entering the securities business in
1969. He was employed as an investment broker by Bache & Company until 1972, and
then by Reynolds Securities Inc. He joined Boston Financial in 1975 as a Vice
President in the real estate investment marketing area and was named a Senior
Vice President in 1986. He currently participates in marketing the firm's
Institutional Tax Credit product.
Peter G. Fallon, Jr., age 57, graduated from the College of The Holy Cross
(B.S., 1960) and Babson College (M.B.A., 1965). He joined Boston Financial in
1970, shortly after its formation, and is currently a Senior Vice President with
responsibility for marketing the firm's Institutional Tax Credit product.
Donna C. Gibson, age 54, who previously served as Chairman of the Commonwealth
of Massachusetts Board of Registration for Real Estate Brokers and Salesmen, and
as President of Community Workshop, Inc., joined Boston Financial Property
Management in 1978. She was a Vice President of Hunneman & Company, Inc., a
Boston real estate firm, for fifteen years, and from 1976 to 1978 she was a
Senior Management Analyst for the Massachusetts Housing Finance Agency. She is a
member of the firm's senior leadership team and oversees the administration and
financial control of Boston Financial's Property Management division. She is a
member of the Board of Directors of the General Partner of Boston Financial.
Randolph G. Hawthorne, age 46, is a graduate of Massachusetts Institute of
Technology and Harvard Graduate School of Business. He has been associated with
Boston Financial since 1973 and has served as the Treasurer of Boston Financial.
Currently a Senior Vice President of Boston Financial and a member of the Board
of Directors, Mr. Hawthorne's primary responsibility is the structuring of real
estate investments and the development of new business opportunities. He serves
as Vice Chairman of the National Multi-Family Housing Council and is a former
president of the National Housing and Rehabilitation Association.
A. Harold Howell, age 55, graduated from Harvard College and the Amos Tuck
School of Business Administration at Dartmouth College. He has been employed by
Boston Financial since 1970. For most of this time he has been active in the
overall administration of Boston Financial and its affiliates, but has also been
involved in other areas of its business. Mr. Howell has served as head of Boston
Financial's property management division and also as its Chief Financial Officer
and Chief Executive Officer. He currently is a Senior Vice President and a
member of the Board of Directors of the General Partner of Boston Financial,
involved in the overall management of the firm. Mr. Howell recently spent a
two-year sabbatical from Boston Financial as a Visiting Professor at the
Instituto de Estudios Superiores de la Empresa, a highly regarded international
M.B.A. program in Barcelona, Spain. While there he taught courses in business
strategy and real estate finance.
Item 11. Management Remuneration
Neither the directors or officers of Franklin, Inc., nor the partners of
Franklin L.P., nor any other individual with significant involvement in the
business of the Partnership receives any current or proposed remuneration from
the Partnership.
<PAGE>
Item 12. Security Ownership of Certain Beneficial Owners and Management
No person is known to the Partnership to be the beneficial owner of more than 5%
of the outstanding Units.
The equity securities registered by the Partnership under Section 12(g) of the
Act consist of 50,000 Units, all of which have been sold to the public. Holders
of Units are permitted to vote on matters affecting the Partnership only in
certain unusual circumstances and do not generally have the right to vote on the
operation or management of the Partnership.
As of March 31, 1996, Franklin L.P. owns five (unregistered) Units not included
in the 50,000 Units sold to the public.
Except as described in the preceding paragraph, neither Franklin, Inc., Franklin
L.P., Boston Financial, nor any of their executive officers, directors,
partners, or affiliates is the beneficial owner of any Units. None of the
foregoing persons possesses a right to acquire beneficial ownership of Units.
The Partnership does not know of any existing arrangement that might at a later
date result in a change in control of the Partnership.
Item 13. Certain Relationships and Related Transactions
The Partnership was required to pay certain fees to and reimburse certain
expenses of the Managing General Partner or its affiliates (including Boston
Financial) in connection with the organization of the Partnership and the
offering of Units. The Partnership is also required to pay certain fees to and
reimburse certain expenses of the Managing General Partner or its affiliates
(including Boston Financial) in connection with the administration of the
Partnership and its acquisition and disposition of investments in Local Limited
Partnerships. In addition, the General Partners are entitled to certain
Partnership distributions under the terms of the Partnership Agreement. Also, an
affiliate of the General Partners will receive up to $10,000 from the sale or
refinancing proceeds of each Local Limited Partnership, if it is still a limited
partner at the time of such transaction. All such fees, expenses and
distributions paid in the three years ended March 31, 1996 are described below
and in the sections of the Prospectus entitled "Estimated Use of Proceeds",
"Management Compensation and Fees" and "Profits and Losses for Tax Purposes, Tax
Credits and Cash Distributions". Such sections are incorporated herein by
reference. In addition, Boston Financial Property Management, an affiliate of
the Managing General Partner, serves as property management agent for one of the
properties in which the Partnership invested.
The Partnership is permitted to enter into transactions involving affiliates of
the Managing General Partner, subject to certain limitations established in the
Partnership Agreement as follows:
Organizational fees and expenses and selling expenses
In accordance with the Partnership Agreement, the Partnership was required to
pay certain fees to and reimburse expenses of the General Partners and others in
connection with the organization of the Partnership and the offering of its
Limited Partnership Units. As of March 31, 1996, selling commissions, fees and
accountable expenses related to the sale of the Units totaling $6,164,983 have
been charged directly to Limited Partners' equity. In connection therewith,
$3,963,740 of selling expenses and $2,201,243 of offering expenses incurred on
behalf of the Partnership have been paid to an affiliate of the General Partner.
The Partnership has capitalized an additional $50,000 of organizational costs
which was reimbursed to an affiliate of the General Partner. These costs are
fully amortized as of March 31, 1996. Total organization and offering expenses
exclusive of selling commissions and underwriting advisory fees did not exceed
5.5% of the Gross Proceeds and organizational and offering expenses, inclusive
of selling commissions and underwriting advisory fees, did not exceed 15.0% of
the Gross Proceeds. No organizational fees and expenses and selling expenses
were paid during the three years ended March 31, 1996.
<PAGE>
Acquisition fees and expenses
In accordance with the Partnership Agreement, the Partnership was required to
pay acquisition fees to and reimburse acquisition expenses of the Managing
General Partner or its affiliates for selecting, evaluating, structuring,
negotiating, and closing the Partnership's investments in Local Limited
Partnerships. Acquisition fees total 8% of the gross offering proceeds.
Acquisition expenses include such expenses as legal fees and expenses, travel
and communications expenses, costs of appraisals, and accounting fees and
expenses. As of March 31, 1996, acquisition fees totaling $4,000,000 for the
closing of the Partnership's Local Limited Partnership Investments have been
paid to an affiliate of the Managing General Partner. Acquisition expenses
totaling $770,577 at March 31, 1996 were incurred and have been reimbursed to an
affiliate of the Managing General Partner. No acquisition fees or expenses were
paid during the three years ended March 31, 1996.
Salaries and benefits expense reimbursements
An affiliate of the Managing General Partner is reimbursed for the cost of the
Partnership's salaries, benefits and administrative expenses. The reimbursements
are based upon the size and complexity of the Partnership's operations.
Reimbursements made in each of the three years ended March 31, 1996 are as
follows:
1996 1995 1994
------------- ------------ ---------
Salaries and benefits expense
reimbursements $ 146,464 $135,847 $119,268
Property Management Fees
Boston Financial Property Management ("BFPM"), an affiliate of the Managing
General Partner, currently manages four of the five properties owned by the
Colorado Partnerships. The property management fee charged to each property is
equal to 5% of property gross revenues. BFPM earned fees in each of the three
years ended March 31, 1996 are as follows
1996 1995 1994
------------- ------------ ---------
Property Management Fees $ 181,269 $189,800 $186,882
Cash distributions paid to the General Partners
In accordance with the Partnership Agreement, the General Partners of the
Partnership, Franklin, Inc. and Franklin Limited Partnership, receive 1% of cash
distributions made to partners.
No cash distributions were paid to the General Partners in each of the three
years ended March 31, 1996.
Additional information concerning cash distributions and other fees paid or
payable to the Managing General Partner and its affiliates and the reimbursement
of expenses paid or payable to Boston Financial and its affiliates during each
of the three years ended March 31, 1996 is presented in Note 5 to the Financial
Statements.
<PAGE>
PART IV
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K
(a)(1) and (a)(2) Documents filed as a part of this Report
In response to this portion of Item 14, the financial statements, financial
statement schedule, and the auditors' reports relating thereto, are submitted as
a separate section of this Report. See Index on page F-1 hereof.
The reports of auditors of the Local Limited Partnerships relating to the audits
of the financial statements of such Local Limited Partnerships appear in Exhibit
(28)(1) of this Report.
All other financial statement schedules and exhibits for which provision is made
in the applicable accounting regulation of the Securities and Exchange
Commission are not required under related instructions or are inapplicable, and
therefore have been omitted.
(a)(3)(b)Reports on Form 8-K
No Reports on Form 8-K were filed during the quarter ended March
31, 1996.
(a)(3)(c) Exhibits
Page Number or
Number and Description in Accordance with Incorporation
Item 601 of Regulation S-K by Reference to
28. Additional Exhibits
(a) 28.1 Reports of Other Independent Auditors
(b) Audited financial statements of
Local Limited Partnerships
1. Boulevard Commons
(a)(3)(d) None.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
By:29 Franklin Street, Inc.
its Managing General Partner
By: /s/William E. Haynsworth Date: June 28, 1996
William E. Haynsworth,
Managing Director, Vice President and
Chief Operating Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed by the following persons on behalf of the Managing General
Partner of the Partnership and in the capacities and on the dates indicated:
By: /s/William E. Haynsworth Date: June 28, 1996
William E. Haynsworth,
Managing Director, Vice President and
Chief Operating Officer
By: /s/Fred N Pratt, Jr. Date: June 28, 1996
Fred N Pratt, Jr.,
A Managing Director
<PAGE>
Item 8. Financial Statements and Supplementary Data
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
Annual Report on Form 10-K For the Year Ended March 31, 1996
Index
Page No.
Report of Independent Accountants
For the year ended March 31, 1996 F-2
For the years ended March 31, 1995 and 1994 F-3
Combined Financial Statements
Combined Balance Sheets - March 31, 1996 and 1995 F-4
Combined Statements of Operations - Years Ended
March 31, 1996, 1995 and 1994 F-5
Combined Statements of Changes in Partners' Equity (Deficiency)
Years Ended March 31, 1996, 1995 and 1994 F-6
Combined Statements of Cash Flows - Years Ended
March 31, 1996, 1995 and 1994 F-7
Notes to Combined Financial Statements F-8
Financial Statement Schedule:
Schedule III - Real Estate and Accumulated Depreciation F-21
See also Index to Exhibits on Page K-25 for the financial statements of the
Local Limited Partnerships included as a separate exhibit in this Annual Report
on Form 10-K.
Other schedules have been omitted as they are either not required or the
information required to be presented therein is available elsewhere in the
financial statements and the accompanying notes and schedules.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of
Boston Financial Qualified Housing Limited Partnership:
We have audited the accompanying combined balance sheet of Boston Financial
Qualified Housing Limited Partnership (A Limited Partnership) as of March 31,
1996 and the related combined statements of operations, changes in partners'
equity (deficiency) and cash flows and the financial statement schedule listed
in Item 14(a) of this Report on Form 10-K, for the year ended March 31, 1996.
These financial statements and financial statement schedule are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and the financial statement schedule based
on our audit. As of March 31, 1996, 74% of total assets, and for the year ended
March 31, 1996, 99% of equity in losses of Local Limited Partnerships, reflected
in the financial statements of the Partnership, relate to Local Limited
Partnerships for which we did not audit the financial statements. The financial
statements of these Local Limited Partnerships were audited by other auditors
whose reports have been furnished to us, and our opinion, insofar as it relates
to those investments in Local Limited Partnerships, is based solely on the
reports of other auditors.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
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, based on our audit and the reports of other auditors, the
financial statements referred to above present fairly, in all material respects,
the financial position of Boston Financial Qualified Housing Limited
Partnership, as of March 31, 1996, and the results of its operations and its
cash flows for the year ended March 31, 1996, in conformity with generally
accepted accounting principles. In addition, in our opinion, the financial
statement schedule referred to above, when considered in relation to the basic
financial statements taken as a whole, presents fairly, in all material
respects, the information required to be included therein.
Coopers & Lybrand L.L.P.
Boston, Massachusetts
June 19, 1996
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners
Boston Financial Qualified Housing Limited Partnership:
We have audited the accompanying balance sheet of Boston Financial Qualified
Housing Limited Partnership (A Limited Partnership) as of March 31, 1995 and the
related combined statements of operations, changes in partners' equity
(deficiency) and cash flows for the each of the two 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 audits. We did not audit certain of the financial statements of the Local
Limited Partnerships for each of the two years ended March 31, 1995, the
investments in which are recorded using the equity method of accounting (see
Note 2). The investments in these partnerships represent 79% of the
Partnership's assets as of March 31, 1995 and the equity in their losses
represent 100% of the equity in loss of the Local Limited Partnerships for each
of the two years ended March 31, 1995. Those financial statements were audited
by other auditors whose reports have been furnished to us, and our opinion,
insofar as it relates to those investments in Local Limited Partnerships, is
based solely on the reports of other auditors.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits and the reports of other auditors, provide a
reasonable basis for our opinion.
In our opinion, based on our audit and the reports of other auditors, the
financial statements referred to above present fairly, in all material respects,
the financial position of Boston Financial Qualified Housing Limited Partnership
as of March 31, 1995, and the results of its operations and its cash flows for
each of the two years then ended in conformity with generally accepted
accounting principles.
Arthur Andersen LLP
Boston, Massachusetts
June 16, 1995
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
COMBINED BALANCE SHEETS - March 31, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
------------- --------
(Note 2)
Assets
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 678,567 $ 308,216
Tenant security deposits 4,067 --
Other current assets 67,483 25,339
------------ ------------
Total current assets 750,117 333,555
Investments in Local Limited Partnerships
(net of reserve for valuation of
$787,526 and $1,297,574 in
1996 and 1995) (Note 4) 6,447,339 8,958,277
Marketable securities, at fair value (Notes 1 and 3) 1,998,381 2,066,336
Rental property at cost, net of
accumulated depreciation (Note 6) 1,135,368 --
Replacement reserve escrow 5,816 --
Bond trusts (Note 7) 70,140 --
Deferred charges, net of accumulated
amortization of $29,021 (Note 2) 51,593 --
------------ ------------
Total Assets $ 10,458,754 $ 11,358,168
============ ============
Liabilities and Partners' Equity
Current liabilities:
Accounts payable to affiliate (Note 5) $ 16,763 $ --
Accounts payable and accrued expenses 94,274 101,803
Current portion of bonds payable (Note 7) 117,975 --
Accrued interest (Note 7) 68,819 --
Tenant security deposits payable 2,936 --
------------ ------------
Total current liabilities 300,767 101,803
Bonds payable (Note 7) 1,092,025 --
------------ ------------
Total Liabilities 1,392,792 101,803
------------ ------------
Minority interest in Local Limited Partnership 59,219 --
------------ ------------
General, Initial and Investor Limited Partners' Equity 9,006,780 11,284,783
Net unrealized losses on marketable securities (37) (28,418)
------------ ------------
Total Partners' Equity 9,006,743 11,256,365
------------ ------------
Total Liabilities and Partners' Equity $ 10,458,754 $ 11,358,168
============ ============
The accompanying notes are an integral part of these combined financial statements
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
COMBINED STATEMENTS OF OPERATIONS
For The Years Ended March 31, 1996, 1995 AND 1994
<TABLE>
<CAPTION>
1996 1995 1994
------------- ------------- --------
(Note 2)
<S> <C> <C> <C>
Revenue:
Rental $ 22,721 $ -- $ --
Investment, net (Note 3) 130,960 54,550 120,599
Other 37,548 22,798 83,953
----------- ----------- -----------
Total Revenue 191,229 77,348 204,552
----------- ----------- -----------
Expenses:
General and administrative (includes
reimbursements to an affiliate of $146,464,
$135,847 and $119,268) (Note 5) 173,259 321,980 311,171
Rental operations, exclusive of depreciation 8,495 -- --
Interest (Note 7) 19,685 -- --
Depreciation (Note 6) 13,575 -- --
Amortization (Note 2) 106,515 109,621 112,521
Adjustment to reserve for valuation of
investments in Local
Limited Partnerships (Note 4) (510,048) 56,147 (247,207)
----------- ----------- -----------
Total Expenses (188,519) 487,748 176,485
----------- ----------- -----------
Income (Loss) before equity in losses
of Local Limited Partnerships 379,748 (410,400) 28,067
Minority interest in loss of
Local Limited Partnership 135 -- --
Equity in losses of Local Limited
Partnerships (Note 4) (2,657,886) (2,732,227) (3,076,265)
----------- ----------- -----------
Net Loss $(2,278,003) $(3,142,627) $(3,048,198)
=========== =========== ===========
Net Loss allocated
To General Partners $ (22,780) $ (31,426) $ (30,482)
To Limited Partners (2,255,223) (3,111,201) (3,017,716)
----------- ----------- -----------
$(2,278,003) $(3,142,627) $(3,048,198)
=========== =========== ===========
Per Limited Partnership Unit
(50,000 Units) $ (45.10) $ (62.22) $ (60.35)
=========== =========== ===========
The accompanying notes are an integral part of these combined financial statements
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
COMBINED STATEMENTS OF CHANGES IN
PARTNERS' EQUITY (DEFICIENCY)
For the Years Ended March 31, 1996, 1995 AND 1994
<TABLE>
<CAPTION>
Net
Initial Investor Unrealized
General Limited Limited Gains
Partners Partners Partners (Losses) Total
<S> <C> <C> <C> <C> <C>
Balance at March 31, 1993 $ (259,741) $ 4,648 $ 17,730,701 $ -- $ 17,475,608
Net Loss (30,482) -- (3,017,716) -- (3,048,198)
Net change in unrealized
losses on marketable
securities available for sale -- -- -- (39,324) (39,324)
------------ ------------ ------------ ------------ ------------
Balance at March 31, 1994 (290,223) 4,648 14,712,985 (39,324) 14,388,086
Net Loss (31,426) -- (3,111,201) -- (3,142,627)
Net change in unrealized
losses on marketable
securities available
for sale -- -- -- 10,906 10,906
------------ ------------ ------------ ------------ ------------
Balance at March 31, 1995 (321,649) 4,648 11,601,784 (28,418) 11,256,365
Net Loss (22,780) -- (2,255,223) -- (2,278,003)
Net change in unrealized
losses on marketable
securities available
for sale -- -- -- 28,381 28,381
------------ ------------ ------------ ------------ ------------
Balance at March 31, 1996 $ (344,429) $ 4,648 $ 9,346,561 $ (37) $ 9,006,743
============ ============ ============ ============ ============
The accompanying notes are an integral part of these combined financial statements
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
COMBINED STATEMENTS OF CASH FLOWS
For the Years Ended March 31, 1996, 1995 AND 1994
<TABLE>
<CAPTION>
1996 1995 1994
------------ ------------ --------
(Note 2)
<S> <C> <C> <C>
Cash flows from operating activities:
Net Loss $(2,278,003) $(3,142,627) $(3,048,198)
Adjustments to reconcile net loss to net
cash used for operating activities:
Equity in losses of Local Limited Partnerships 2,657,886 2,732,227 3,076,265
Adjustment to reserve for valuation of
Investments in Local Limited Partnerships (510,048) 56,147 (247,207)
(Gain) loss on sale of marketable securities (9,470) 46,361 --
Distribution income included in cash distribution
received from Local Limited Partnerships (5,000) (5,225) --
Depreciation and amortization 120,090 109,621 112,521
Minority interest in loss of Local Limited Partnership (135) -- --
Increase (decrease) in cash arising from changes in operating assets and
liabilities:
Other current assets (39,052) (366) 8,714
Accounts payable to affiliate 5,017 -- --
Accounts payable and accrued expenses (9,883) 2,317 (50,937)
----------- ----------- -----------
Net cash used for operating activities (68,598) (201,545) (148,842)
----------- ----------- -----------
Cash flows from investing activities:
Purchases of marketable securities (1,547,205) (2,916,220) --
Proceeds from sales and maturities
of marketable securities 1,653,011 3,094,216 --
Marketable securities, net -- -- (221,528)
Cash distributions received from Local
Limited Partnerships 343,431 286,975 212,906
Bond trust deposits (28,828) -- --
Cash received upon assumption
of General Partner's interest in the
Combined Entity 18,540 -- --
----------- ----------- -----------
Net cash provided by (used for) investing activities 438,949 464,971 (8,622)
----------- ----------- -----------
Net increase (decrease) in cash and cash
equivalents 370,351 263,426 (157,464)
Cash and cash equivalents, beginning 308,216 44,790 202,254
----------- ----------- -----------
Cash and cash equivalents, ending $ 678,567 $ 308,216 $ 44,790
The accompanying notes are an integral part of these combined financial statements
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS
1. Organization
Boston Financial Qualified Housing Limited Partnership (the "Partnership") was
formed on January 22, 1987 under the laws of the State of Delaware for the
primary purpose of investing, as a limited partner, in other limited
partnerships ("Local Limited Partnerships"), each of which own and operate
apartment complexes benefiting from some form of federal, state or local
assistance program and each of which qualify for low-income housing tax credits.
The Partnership's objectives are to (i) provide current tax benefits in the form
of tax credits which qualified investors may use to offset their federal income
tax liability, (ii) preserve and protect the Partnership's capital, (iii)
provide limited cash distributions from property operations which are not
expected to constitute taxable income during Partnership operations, and iv)
provide cash distributions from sale or refinancing transactions. The General
Partners of the Partnership are 29 Franklin Street Inc., which serves as the
Managing General Partner and Franklin 29 Limited Partnership, which serves as
the Initial Limited Partner. Both of the General Partners are affiliates of The
Boston Financial Group Limited Partnership ("Boston Financial"). The fiscal year
of the Partnership ends on March 31.
The Partnership's partnership agreement ("Partnership Agreement") authorized the
sale of up to 50,000 units of Limited Partnership Interest ("Units") at $1,000
per Unit, adjusted for certain discounts. The Partnership raised $49,963,740
("Gross Proceeds"), net of discounts of $36,260, through the sale of 50,000
Units. Such amounts exclude five unregistered Units previously acquired for
$5,000 by the Initial Limited Partner, which is also one of the General
Partners. The offering of Units terminated on April 29, 1988.
Generally, profits, losses, tax credits and cash flows from operations are
allocated 99% to the Limited Partners and 1% to the General Partners. Net
proceeds from a sale or refinancing will be allocated 95% to the Limited
Partners and 5% to the General Partners after certain priority payments.
Under the terms of the Partnership Agreement, the Partnership originally
designated 5% of Gross Proceeds from the sale of Units as a reserve for working
capital of the Partnership and contingencies related to ownership of Local
Limited Partnership interests. The Managing General Partner may increase or
decrease such amounts from time to time, as it deems appropriate. As of March
31, 1996, the Managing General Partner has designated approximately $2,043,000
of cash, cash equivalents and marketable securities as such reserve.
2. Significant Accounting Policies
Basis of Presentation and Combination
The Partnership accounts for its investments in Local Limited Partnerships, with
the exception of Hughes Apartments, using the equity method of accounting. Under
the equity method, the investment is carried at cost, adjusted for changes in
the net assets and for cash distributions from the Local Limited Partnerships;
equity in income or loss of the Local Limited Partnerships is included currently
in the Partnership's operations. Under the equity method, a Limited Partnership
investment will not be carried below zero. To the extent that equity losses are
incurred when a Local Limited Partnership's respective asset value has been
reduced to a zero balance, the losses will be suspended to be used against
future income. Also, when a Local Limited Partnership with a carrying value of
zero distributes cash to the Partnership, that distribution is recorded as
revenue on the books of the Partnership in the accompanying financial
statements.
Excess investment costs over the underlying net assets acquired have arisen from
acquisition fees paid and expenses reimbursed to an affiliate of the
Partnership. These fees and expenses, which are part of the Partnership's
Investments in Local Limited Partnerships, are being amortized on a
straight-line basis over 35 years.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
2. Significant Accounting Policies (continued)
In connection with the Partnership's fiscal year-end of March 31, the General
Partner has decided to report the results of the Local Limited Partnerships on a
90-day lag basis. Accordingly, the financial information of the Local Limited
Partnerships that is included in the accompanying Combined Financial Statements
is as of December 31, 1995, 1994, and 1993.
On October 27, 1995, an affiliate of the Partnership's Managing General
Partners, BF Harbour View, Inc., became the Local General Partner of Hughes
Apartments, Ltd. ("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. from November 1, 1995 through December 31,
1995. All significant intercompany balances and transactions have been
eliminated.
The Partnership has elected to report the results of Hughes on a 90-day lag
basis, consistent with the presentation of the financial information of all
Local Limited Partnerships.
The Partnership recognizes a decline in the carrying value of its investment in
Local Limited Partnerships when there is evidence of a non-temporary decline in
the recoverable amount of the investment.
The Partnership, as a limited partner in the Local Limited Partnerships, is
subject to risks inherent in the ownership of property which are beyond its
control, such as fluctuations in occupancy rates and operating expenses,
variations in rental schedules, proper maintenance and continued eligibility for
tax credits. If the cost of operating a property exceeds the rental income
earned thereon, the Partnership may deem it in its best interest to voluntarily
provide funds in order to protect its investment. There is a possibility that
the estimates relating to reserves for non-temporary declines in the carrying
value of investments in Local Limited Partnerships may be subject to material
near term adjustments.
It was previously reported that an affiliate of The Boston Financial Group
Limited Partnership had been negotiating to purchase the Local General Partner
interests in five properties in which the Partnership has invested
(collectively, the "Colorado Partnerships") from Phillip Abrams Ventures, Inc.
and PDW, Inc., the current Local General Partners. It now appears that this
transaction will not occur. Instead, the Local General Partners will retain
their interests in the Colorado Partnerships and Boston Financial will continue
to act as property manager for these properties.
Cash Equivalents
Cash equivalents consist of short-term money market instruments with original
maturities of 90 days or less at acquisition and approximate fair value.
Marketable Securities
Marketable securities consist primarily of U.S. Treasury instruments and various
asset-backed investment vehicles. On March 31, 1994, the Partnership adopted
Statement of Financial Accounting Standards No. 115 - Accounting for Certain
Investments in Debt and Equity Securities. Under this statement, the
Partnership's investments in securities are classified as "Available for Sale"
securities and reported at fair value as reported by the brokerage firm at which
the securities are held. Realized gains and losses from the sales of securities
are based on the specific identification method. Unrealized gains and losses are
excluded from earnings and reported as a separate components of partners'
equity.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
2. Significant Accounting Policies (continued)
Effect of recently issued Accounting Standard
The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standards No. 121, Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to Be Disposed Of, which is effective for fiscal years
beginning after December 15, 1995. This standard requires that long-lived assets
be reviewed for recoverability. Impairment losses are recognized when future
cash flows or other benefits are less than the carrying amount of the asset. The
Partnership plans to adopt the new standard for its year ending March 31, 1997,
however, it is not expected to have a significant effect on financial position
or results of operations.
Deferred Charges
Bond financing costs incurred in connection with financing the construction of
Hughes has been capitalized and are being amortized over the 25-year term of the
bonds, using the straight line method of amortization.
Rental Property
Real estate and personal property of Hughes is carried at cost, net of
accumulated depreciation. Depreciation is computed using the straight-line
method over the estimated useful lives of the assets.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosures 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.
Rental Income
Rental income, principally from short term leases on apartment units, is
recognized as income as rentals become due.
Income Taxes
No provision for income taxes has been made as the liability for such taxes is
the obligation of the partners of the Partnership.
Reclassifications
Certain amounts in the prior year financial statements have been reclassified
herein to conform with the current year presentation.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
3. 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 $ 1,394,653 $ 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
=========== =========== =========== ===========
Debt securities issued by the
US Treasury and
other US Government
corporations and agencies $ 1,132,567 $ -- $ (12,169) $ 1,120,398
Mortgage backed securities 526,319 1,763 (17,040) 511,042
Other debt securities 435,868 1,143 (2,115) 434,896
----------- ----------- ----------- -----------
Marketable securities
at March 31, 1995 $ 2,094,754 $ 2,906 $ (31,324) $ 2,066,336
=========== =========== =========== ===========
</TABLE>
The contractual maturities at March 31, 1996 are as follows:
<TABLE>
<CAPTION>
Fair
Cost Value
<S> <C> <C>
Due in one year to five years $ 1,541,364 $ 1,537,508
Due in five to ten years 209,672 211,863
Mortgage backed securities 247,382 249,010
----------- -----------
$ 1,998,418 $ 1,998,381
=========== ===========
</TABLE>
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 $1,653,000 and $3,094,000 for the years ended March 31, 1996
and 1995, respectively. Included in investment income are gross gains of $16,733
and gross losses of $7,263 which were realized on these sales for the year ended
March 31, 1996 and gross gains of $1,349 and gross losses of $47,710 which were
realized on the sales for the year ended March 31, 1995.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
4. Investments in Local Limited Partnerships
The Partnership has acquired interests in thirty-three Local Limited
Partnerships, excluding 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,
which contain certain operating and distribution restrictions, 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.
The following is a summary of Investments in Local Limited Partnerships at March
31, 1996 1995 and 1994. The 1996 summary excludes Hughes.
<TABLE>
<CAPTION>
1996 1995 1994
------------- ------------ --------
<S> <C> <C> <C>
Capital contributions to Local Limited
Partnerships and purchase price paid to
withdrawing partners of Local Limited
Partnerships $ 36,308,830 $ 36,651,930 $ 36,651,930
Cumulative equity in losses of Local
Limited Partnerships (31,456,648) (29,228,172) (26,501,170)
Cumulative cash distributions received
from Local Limited Partnerships (1,414,539) (1,071,108) (784,133)
------------ ------------ ------------
Investments in Local Limited Partnerships
before adjustment 3,437,643 6,352,650 9,366,627
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 4,770,577 4,770,577 4,770,577
Accumulated amortization of acquisition
fees and expenses (973,355) (867,376) (757,755)
------------ ------------ ------------
Investments in Local Limited Partnerships 7,234,865 10,255,851 13,379,449
Reserve for Valuation of Investments in
Local Limited Partnerships (787,526) (1,297,574) (1,241,427)
------------ ------------ ------------
$ 6,447,339 $ 8,958,277 $ 12,138,022
============ ============ ============
</TABLE>
The 1995, 1994 and 1993 financial statements of 2225 New York Avenue, LTD ("2225
New York Avenue"), a Local Limited Partnership in which the Partnership
invested, were prepared assuming that 2225 New York Avenue will continue as a
going concern. 2225 New York Avenue, which owns Pebble Creek in Arlington,
Texas, incurred significant net losses in 1995, 1994 and 1993, has severe
liquidity problems and recurring cash deficits. Pebble Creek did operate at
break-even in 1993, however, the Property continues to have high maintenance
expenses. These factors, among others, raise substantial doubt as to 2225 New
York Avenue's ability to continue as a going concern. As such, the Partnership
provided a reserve for valuation of $1,885,841 against its investment in 2225
New York Avenue at March 31, 1992. This reserve has been adjusted in the
financial statements to reflect the Partnership's share of the net losses of
2225 New York Avenue for the years ended December 31, 1993 through 1995. Equity
in losses of Local Limited Partnerships for the years ended March 31, 1996,
1995, and 1994 includes $500,670, $218,983 and $237,332, respectively, related
to 2225 New York Ave. The reserve for valuation of investments in Local Limited
Partnerships has been reduced by these amounts. As a result, these losses have
no effect on the Partnership's Net Loss.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
4. Investments in Local Limited Partnerships (continued)
The Partnership has also provided a reserve for valuation for a portion of its
investment in one other Local Limited Partnership, Graver Inn, because there is
evidence of a non-temporary decline in the recoverable amount of the investment.
Summarized financial information, as of December 31, 1995, 1994, and 1993 (due
to the Partnership's policy of reporting financial information of its Local
Limited Partnership interests on a 90 day lag basis) of the Local Limited
Partnerships, excluding Hughes in 1996, of all Local Limited Partnerships in
which the Partnership has invested as of that date is as follows:
Summarized Balance Sheets - as of December 31,
<TABLE>
<CAPTION>
1995 1994 1993
------------------ ---------------- -------------
<S> <C> <C> <C>
Assets:
Investment property, net $ 108,942,454 $ 113,394,758 $ 118,787,133
Current assets 2,801,351 2,337,205 4,703,067
Other assets 9,921,430 10,375,151 7,784,957
------------- ------------- -------------
Total Assets $ 121,665,235 $ 126,107,114 $ 131,275,157
============= ============= =============
Liabilities and Partners' Equity (Deficit):
Current liabilities (includes current portion
of long-term debt) $ 5,948,489 $ 5,087,134 $ 3,691,228
Other debt 14,021,083 14,981,385 14,290,147
Long-term debt 110,465,789 110,046,887 111,849,410
------------- ------------- -------------
Total Liabilities 130,435,361 130,115,406 129,830,785
------------- ------------- -------------
Partners' (Deficit) Equity:
Partnership (Deficit) Equity (8,764,328) (3,556,895) 1,867,549
Other Partners' Deficit (5,798) (451,397) (423,177)
------------- ------------- -------------
Total Partners' (Deficit) Equity (8,770,126) (4,008,292) 1,444,372
------------- ------------- -------------
Total Liabilities and Partners' (Deficit) Equity $121,665,235 $ 126,107,114 $ 131,275,157
============= ============= =============
</TABLE>
Summarized Income Statements - for
the year ended December 31,
<TABLE>
<CAPTION>
1995 1994 1993
----------------- --------------- ----------
<S> <C> <C> <C>
Rental and other income $ 21,087,845 $ 19,884,870 $ 19,518,022
------------ ------------ ------------
Expenses:
Interest 10,481,568 10,540,501 10,289,246
Operating 10,544,604 9,480,068 9,375,483
Depreciation and amortization 5,269,753 5,100,823 5,226,659
------------ ------------ ------------
Total Expenses 26,295,925 25,121,392 24,891,388
------------ ------------ ------------
Net Loss $ (5,208,080) $ (5,236,522) $ (5,373,366)
============ ============ ============
Partnership's share of Net Loss $ (5,153,645) $ (5,180,777) $ (5,315,332)
============ ============ ============
Other Partners' share of Net Loss $ (54,435) $ (55,745) $ (58,034)
============ ============ ============
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
4. Investments in Local Limited Partnerships (continued)
For the years ended March 31, 1996, 1995 and 1994, the Partnership has not
recognized $2,500,759, $2,453,775 and $2,239,067, respectively, in equity in
losses relating to eleven Local Limited Partnerships where cumulative equity in
losses and cumulative distributions exceeded its total investments.
The Partnership's deficit as reflected by the Local Limited Partnerships of
$8,764,328 differs from the Partnership's Investments in Local Limited
Partnerships before adjustment of $3,437,643 principally because: a) the
Partnership has not recognized $9,589,820 of equity in losses relating to Local
Limited Partnerships whose cumulative equity in losses exceeded their total
investments; b) purchase price paid to original Limited Partners by the
Partnership have not been reflected in the balance sheets of certain Local
Limited Partnerships and c) cash distributions paid to the Partnership during
the quarter ended March 31, 1996 are not reflected in the equity of certain
Local Limited Partnerships at December 31, 1995.
5. Transactions with Affiliates
An affiliate of the Managing General Partner is reimbursed for the actual cost
of the Partnership's operating expenses. Included in general and administrative
expenses for the years ended March 31, 1996, 1995 and 1994 is $146,464, $135,847
and $119,268, respectively, that has been paid or is payable by the Partnership
as reimbursement for salaries and benefits.
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 4 to the Financial Statements is $181,269, $189,800 and $186,882 of fees
earned by BFPM for the years ended December 31, 1995, 1994 and 1993,
respectively.
6. Rental Property
Real estate and personal property belonging to Hughes Apartments are recorded at
cost, the components of which are as follows at December 31, 1995:
Land $ 29,008
Building and improvements 1,425,374
Equipment and furnishings 26,817
-----------
1,481,199
Less accumulated depreciation (345,831)
-----------
Total $ 1,135,368
===========
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
7. Bonds Payable
Hughes Apartments Limited Partnership financed the construction of the project
through the sale of 25 year Industrial Development Revenue Bonds ("the Bonds")
by the city of Mandan, North Dakota and leased the property from the city for
rental equal to the sum of the annual principal payment and semiannual interest
payments on the Bonds. The Bonds bear interest at 9.75%. The leased property is
included as an asset of the Partnership and the bonds have been recorded as a
direct obligation of the Partnership.
The bond financing documents require that a portion of the bond proceeds be
deposited in a bond reserve trust account and that only interest income on the
account can be used for operations. The funds can be withdrawn only by the bond
trustee in the event that there is insufficient cash in the bond account to pay
the annual bond payments. If the bond trustee does draw on the bond reserve
trust account, the amount withdrawn must be replaced or Hughes Apartments, LP
will be considered in default on the remaining outstanding bonds. The bond
trustee has withdrawn funds from this account in 1995 and 1994. The amounts
withdrawn have not been replaced, and consequently, Hughes Apartments, LP is in
default of its lease agreement.
Effective October 27, 1995, an affiliate of the Partnership's Managing General
Partner replaced the Local General Partner and successfully negotiated a
Forbearance Agreement with the trustee whereby the mortgage arrears and capital
repairs would be funded from Partnership and bond reserves.
Principal payments due under the terms of the financing agreement are as
follows:
1996 $ 117,975
1997 117,975
1998 117,975
1999 117,975
2000 117,975
Thereafter 620,125
-----------
1,210,000
Less current portion 117,975
----------
$1,092,025
==========
Based on the unique terms of this financiing, management believes it is not
practicable to estimate the fair value of this arrangement.
The balances in the Trust accounts required to be maintained pursuant to the
bond financing documents, at December 31, 1995 are as follows:
Bond reserve trust $ 42,618
Bond trust 27,522
-----------
$ 70,140
============
The Bond reserve trust account consists of investments in U.S. Treasury notes,
which are considered held to maturity and are due in January 1999. Investment
cost as of December 31, 1995 and 1994 are $42,618 and $101,937, respectively.
Fair value as of December 31, 1995 and 1994 are $46,378 and $99,755,
respectively. Unrealized gains of $3,760 in 1995 and unrealized losses as of
$2,182 in 1994 have not been recognized as the notes will be held to maturity.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
8. Federal Income Taxes
A reconciliation of the loss reported in the Combined Statements of Operations
for the years ended March 31, 1996, 1995 and 1994 to the loss reported for
federal income tax purposes is as follows:
<TABLE>
<CAPTION>
1996 1995 1994
------------ ------------ -------
<S> <C> <C> <C>
Net Loss per Statements of Operations $(2,278,003) $(3,142,627) $(3,048,198)
Adjustment to reflect March 31, fiscal
year-end to December 31,
taxable year-end 26,458 (16,932) 7,561
Adjustment to reserve for valuation of
Investments in Local Limited Partnerships
not deductible (taxable) for tax purposes (510,048) 56,147 (247,207)
Amortization of acquisition fees and
expenses for tax purposes over
amortization for financial
reporting purposes (67,497) (63,855) (60,955)
Adjustment for equity in losses of Local
Limited Partnerships for financial
reporting purposes under
equity in losses for tax purposes (3,201,391) (3,269,647) (3,445,155)
Other (29,565) -- --
----------- ----------- -----------
Net loss for federal income tax purposes $(6,060,046) $(6,436,914) $(6,793,954)
=========== =========== ===========
</TABLE>
The carrying value of the Partnership's Investment in Local Limited Partnerships
is approximately $17,856,000 greater for financial reporting purposes than for
tax return purposes because (i) the equity in losses of the Local Limited
Partnerships is approximately $9,053,000 greater for tax purposes because of
accelerated tax depreciation methods used; (ii) the Partnership has not
recognized approximately $9,590,000 of equity in losses of the Local Limited
Partnerships for financial reporting purposes; (iii) the Partnership has
provided a provision for valuation of approximately $788,000 against two of its
investments in Local Limited Partnerships for financial reporting purposes; (iv)
the amortization of acquisition fees for tax purposes exceeds financial
reporting purposes by approximately $316,000; and (v) approximately $334,000 of
cash distributions received from Local Limited Partnerships during the lag
period January 1, 1996 to March 31, 1996. The carrying value of the
Partnership's other assets and liabilities is the same for financial reporting
and tax return purposes.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
9. Supplemental Combining Schedules
<TABLE>
<CAPTION>
Balance Sheets
Boston Financial
Qualified Housing Hughes
Tax Credits Apartments
L.P. (A) Ltd.(B) Eliminations Combined (A)
Assets
<S> <C> <C> <C> <C>
Current assets:
Cash and cash equivalents $ 652,483 $ 26,084 $ -- $ 678,567
Tenant security deposits -- 4,067 -- 4,067
Other current assets 64,391 3,092 -- 67,483
------------ ------------ ------------ ------------
Total current assets 716,874 33,243 -- 750,117
Investments in Local Limited
Partnerships 6,389,053 -- 58,286 6,447,339
Marketable securities, at fair value 1,998,381 -- -- 1,998,381
Rental property at cost, net of
accumulated depreciation -- 1,135,368 -- 1,135,368
Replacement reserve escrow -- 5,816 -- 5,816
Bond trusts -- 70,140 -- 70,140
Deferred charges, net -- 51,593 -- 51,593
------------ ------------ ------------ ------------
Total Assets $ 9,104,308 $ 1,296,160 $ 58,286 $ 10,458,754
============ ============ ============ ============
Liabilities and Partners' Equity
Current liabilities:
Accounts payable to affiliate $ 16,763 $ -- $ -- $ 16,763
Accounts payable and accrued
expenses 80,802 13,472 -- 94,274
Current portion of bonds payable -- 117,975 -- 117,975
Accrued interest -- 68,819 -- 68,819
Tenant security deposits payable -- 2,936 -- 2,936
------------ ------------ ------------ ------------
Total current liabilities 97,565 203,202 -- 300,767
Bonds payable -- 1,092,025 -- 1,092,025
------------ ------------ ------------ ------------
Total Liabilities 97,565 1,295,227 -- 1,392,792
------------ ------------ ------------ ------------
Minority interest in Local Limited
Partnership -- -- 59,219 59,219
General, Initial and Investor
Limited Partners' Equity 9,006,780 933 (933) 9,006,780
Net unrealized losses (37) -- -- (37)
------------ ------------ ------------ ------------
Total Partners' Equity 9,006,743 933 (933) 9,006,743
------------ ------------ ------------ ------------
Total Liabilities and
Partners' Equity $ 9,104,308 $ 1,296,160 $ 58,286 $ 10,458,754
============ ============ ============ ============
</TABLE>
(A) March 31, 1996. (B) December 31, 1995.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
9. Supplemental Combining Schedules (continued)
<TABLE>
<CAPTION>
Statements of Operations
Boston Financial
Qualified Housing Hughes
Tax Credits Apartments
L.P. (A) Ltd.(B) Eliminations Combined (A)
<S> <C> <C> <C> <C>
Revenue:
Rental $ -- $ 22,721 $ -- $ 22,721
Investment 125,035 5,925 -- 130,960
Other 37,367 181 -- 37,548
----------- ----------- ----------- -----------
Total Revenue 162,402 28,827 -- 191,229
----------- ----------- ----------- -----------
Expenses:
General and administrative 173,259 -- -- 173,259
Rental operations, exclusive
of depreciation -- 8,495 -- 8,495
Interest -- 19,685 -- 19,685
Depreciation -- 13,575 -- 13,575
Amortization 105,979 536 -- 106,515
Adjustment to provision
for valuation of
investments in Local
Limited Partnerships (510,048) -- -- (510,048)
----------- ----------- ----------- -----------
Total Expenses (230,810) 42,291 -- (188,519)
----------- ----------- ----------- -----------
Income (loss) before equity in
losses of Local Limited
Partnerships 393,212 (13,464) -- 379,748
Minority interest in loss of
Local Limited Partnership -- -- 135 135
Equity in losses of Local
Limited Partnerships (2,671,215) -- 13,329 (2,657,886)
----------- ----------- ----------- -----------
Net Loss $(2,278,003) $ (13,464) $ 13,464 $(2,278,003)
=========== =========== =========== ===========
</TABLE>
(A) For the year ended March 31, 1996.
(B) For the two months ended December 31, 1995 - see Note 2.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
9. Supplemental Combining Schedules (continued)
<TABLE>
<CAPTION>
Statements of Cash Flows
Boston Financial
Qualified Housing Hughes
Tax Credits Apartments
L.P. (A) Ltd.(B) Eliminations Combined (A)
<S> <C> <C> <C> <C>
Cash flows from operating activities:
Net Loss $(2,278,003) $ (13,464) $ 13,464 $(2,278,003)
Adjustments to reconcile net loss to
net cash provided by (used for)
operating activities:
Equity in losses of Local Limited
Partnerships 2,671,215 -- (13,329) 2,657,886
Provision for valuation of investment
in Local Limited Partnerships (510,048) -- -- (510,048)
Gain on sale of marketable securities (9,470) -- -- (9,470)
Distribution income included in
cash distributions received from
Local Limited Partnership (5,000) -- -- (5,000)
Depreciation and amortization 105,979 14,111 -- 120,090
Minority interest in loss of Local
Limited Partnership -- -- (135) (135)
Increase (decrease) in cash arising
from changes in operating assets
and liabilities:
Other current assets (39,052) -- -- (39,052)
Accounts payable to affiliate 5,017 -- -- 5,017
Accounts payable and accrued
expenses (9,255) (628) -- (9,883)
----------- ----------- ----------- -----------
Net cash provided by (used for)
operating activities (68,617) 19 -- (68,598)
----------- ----------- ----------- -----------
Cash flows from investing activities:
Investments in Local Limited
Partnerships (36,353) 36,353 --
Purchases of marketable securities (1,547,205) -- -- (1,547,205)
Proceeds from sales and maturities
of marketable securities 1,653,011 -- -- 1,653,011
Cash distributions received from
Local Limited Partnerships 343,431 -- -- 343,431
Bond trust deposits -- (28,828) -- (28,828)
Cash received upon assumption of
General Partner's interest in the
Combined Entity -- 18,540 -- 18,540
----------- ----------- ----------- -----------
Net cash provided by (used for)
investing activities 412,884 (10,288) 36,353 438,949
----------- ----------- ----------- -----------
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
9. Supplemental Combining Schedules (continued)
<TABLE>
<CAPTION>
Statements of Cash Flows
Boston Financial
Qualified Housing Hughes
Tax Credits Apartments
L.P. (A) Ltd.(B) Eliminations Combined (A)
<S> <C> <C> <C> <C>
Cash flows from financing activities:
Capital contributions received -- 36,353 (36,353) --
-------- -------- -------- --------
Net cash provided by financing activities -- 36,353 (36,353) --
-------- -------- -------- --------
Net increase in cash and cash equivalents 344,267 26,084 -- 370,351
Cash and cash equivalents, beginning 308,216 -- -- 308,216
-------- -------- -------- --------
Cash and cash equivalents, ending $652,483 $ 26,084 $ -- $678,567
======== ======== ======== ========
</TABLE>
(A) For the year ended March 31, 1996.
(B) For the two months ended December 31, 1995 - See Note 2.
<PAGE>
Boston Financial Qualified Housing Limited Partnership
Schedule III - Real Estate and Accumulated Depreciation
of Property owned by Local Limited Partnerships in
which Registrant has invested at March 31, 1996
<TABLE>
<CAPTION>
COST OF INTEREST AT AQUISITION DATE
----------------------------------------
NUMBER TOTAL BUILDINGS /
OF ENCUM- IMPROVEMENTS
DESCRIPTION UNITS BRANCES * LAND & EQUIPMENT
Low and Moderate
Income Apartment Complexes
<S> <C> <C> <C> <C>
Barrington Manor 18 $650,000 $30,000 $555,638
Fargo, ND
Bingham Housing Associates 24 1,168,691 48,934 362,172
Bingham, ME
Birmingham Village 24 1,163,308 61,900 190,424
Randolph, ME
Bittersweet Lane 35 2,505,823 69,300 2,884,207
Randolph , MA
Coronodo Courts 145 3,791,839 452,331 4,995,460
Douglas, AZ
Elmore Hotel 60 3,409,618 12,500 2,976,388
Great Falls, MT
Graver Inn 70 2,080,853 30,000 2,208,960
Fargo, ND
Hazel Winthrop Apartments 30 2,130,358 45,000 2,548,540
Chicago, IL
Hughes Apartments 47 1,210,000 28,000 1,260,066
Mandan, ND
Lakeview Heights 83 2,844,555 217,588 2,896,224
Clearfield, UT
Medford Hotel 76 3,266,176 12,500 2,747,997
Medford, OR
Heritage View 24 1,168,329 64,800 690,736
New Sweden, ME
Rolling Green Apartments 166 4,844,837 286,350 6,254,575
Edmond, OK
Sierra Vista Apartments 209 6,361,818 382,000 8,001,390
Aurora, CO
Terrace Apartments 206 5,298,860 350,000 6,470,754
Oklahoma City, OK
Trenton Apartments 37 849,224 154,000 899,293
Salt Lake City, UT
Windsor Court Apartments 143 4,540,483 280,000 5,579,636
Aurora, CO
Sierra Pointe 160 7,221,499 434,866 8,056,238
Las Vegas, NV
Willow Peg Village 57 1,483,403 125,000 1,741,799
Ricon, GA
Pebble Creek 352 7,951,425 794,000 9,563,687
Arlington, TX
Pine Village 36 941,419 40,000 960,000
Pine Mountain, GA
Talbot Village 24 602,938 21,775 545,547
Talbolton, GA
Logan Plaza 130 11,337,095 969,289 13,287,069
New York, NY
Cass House 111 8,251,189 222,000 11,423,209
Boston, MA
Verdean Gardens 110 7,877,121 214,992 8,891,168
New Bedford, MA
Country Estates 24 597,310 22,500 734,409
Glenville, GA
Boulevard Commons 212 10,512,596 318,000 3,580,316
Chicago, IL
Chestnut Lane 50 1,477,627 93,484 848,922
Newman, GA
600 Dakota Properties 28 676,153 64,353 769,608
Wahpeton, ND
Duluth 11 261,364 24,000 363,810
Souix Falls, SD
Delmar 16 423,220 75,000 495,203
Gillette, WY
Park Terrace 101 3,567,373 393,713 4,781,404
Dundalk, MD
Brentwood Manor II 22 784,915 44,980 1,118,947
Nashua, NH
Hillcrest Apts 3 24 593,311 17,000 727,587
Perryville, MO
----------------------------------------------------------
2,865 $111,844,730 $6,400,155 $119,411,383
==========================================================
</TABLE>
<TABLE>
<CAPTION>
GROSS AMOUNT AT WHICH CARRIED AT DECEMBER 31, 1995 LIFE ON
-------------------------------------------------------
NET IMPROVEMENTS WHICH
CAPITALIZED BUILDINGS DEPRECIATION
DESCRIPTION SUBSEQUENT TO LAND AND AND ACCUMULATED DATE IS COMPUTED DATE
ACQUISITION IMPROVEMENTS IMPROVEMENTS TOTAL DEPRECIATION BUILT (YEARS) ACQUIRED
Low and Moderate
Income Apartment Complexes
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Barrington Manor
Fargo, ND $242,106 $32,011 $795,733 $827,744 $179,629 1927 various 12/31/87
Bingham Housing Associates
Bingham, ME 1,019,534 48,934 1,381,706 1,430,640 260,504 1988 various 12/30/87
Birmingham Village
Randolph, ME 1,163,445 61,900 1,353,869 1,415,769 253,677 1988 various 12/30/87
Bittersweet Lane
Randolph , MA 368,037 69,300 3,252,244 3,321,544 942,610 1988 various 10/27/87
Coronodo Courts
Douglas, AZ 58,753 452,331 5,054,213 5,506,544 1,540,461 1945 various 12/18/87
Elmore Hotel
Great Falls, MT 336,134 12,500 3,312,522 3,325,022 1,038,862 1917 various 12/22/87
Graver Inn
Fargo, ND 843,462 40,914 3,041,508 3,082,422 701,679 1917 various 12/31/87
Hazel Winthrop Apartments
Chicago, IL (124,859) 45,000 2,423,681 2,468,681 539,524 1910 various 12/30/87
Hughes Apartments
Mandan, ND 193,133 29,008 1,452,191 1,481,199 345,831 1926 various 12/31/87
Lakeview Heights
Clearfield, UT 143,033 217,588 3,039,257 3,256,845 810,603 1972 various 12/30/87
Medford Hotel
Medford, OR 1,863,079 12,500 4,611,076 4,623,576 996,523 1915 various 12/22/87
Heritage View
New Sweden, ME 670,358 64,800 1,361,094 1,425,894 261,804 1988 various 12/30/87
Rolling Green Apartments
Edmond, OK 77,306 286,350 6,331,881 6,618,231 2,051,156 1974 various 09/30/87
Sierra Vista Apartments
Aurora, CO 113,541 434,866 8,062,065 8,496,931 2,723,400 1973 various 09/30/87
Terrace Apartments
Oklahoma City, OK (287,404) 350,000 6,183,350 6,533,350 2,109,045 1970 various 11/20/87
Trenton Apartments
Salt Lake City, UT 100,146 154,000 999,439 1,153,439 257,266 1925 various 12/30/87
Windsor Court Apartments
Aurora, CO (262,075) 280,000 5,317,561 5,597,561 1,790,926 1974 various 12/30/87
Sierra Pointe
Las Vegas, NV 885,271 336,087 9,040,288 9,376,375 3,069,247 1963 various 09/01/87
Willow Peg Village
Ricon, GA 2,980 125,000 1,744,779 1,869,779 524,319 1989 various 03/01/88
Pebble Creek
Arlington, TX 134,091 734,800 9,756,978 10,491,778 2,030,988 1977/81 various 06/20/88
Pine Village
Pine Mountain, GA 189,618 40,000 1,149,618 1,189,618 331,479 1988 various 03/01/88
Talbot Village
Talbolton, GA 192,054 20,000 739,376 759,376 205,887 1988 various 03/01/88
Logan Plaza
New York, NY 331,986 969,289 13,619,055 14,588,344 2,750,317 1988 various 05/10/88
Cass House
Boston, MA 47,910 222,000 11,471,119 11,693,119 2,982,630 1988 various 06/08/88
Verdean Gardens
New Bedford, MA 2,042,800 214,992 10,933,968 11,148,960 2,662,520 1989 various 05/31/88
Country Estates
Glenville, GA 0 22,500 734,409 756,909 237,021 1988 various 03/01/88
Boulevard Commons
Chicago, IL 10,843,728 318,000 14,424,044 14,742,044 3,707,924 1920 various 07/14/88
Chestnut Lane
Newman, GA 886,378 93,322 1,735,462 1,828,784 476,173 1989 various 08/01/88
600 Dakota Properties
Wahpeton, ND 36,538 63,670 806,829 870,499 166,635 1988 various 10/01/88
Duluth
Souix Falls, SD 13,214 24,000 377,024 401,024 81,762 1989 various 10/01/88
Delmar
Gillette, WY 19,936 75,000 515,139 590,139 145,984 1988 various 10/01/88
Park Terrace
Dundalk, MD 146,598 393,713 4,928,002 5,321,715 1,286,216 1989 various 01/20/89
Brentwood Manor II
Nashua, NH 2,832 44,980 1,121,779 1,166,759 388,692 1971 various 01/20/89
Hillcrest Apts 3
Perryville, MO 1,515 17,000 729,102 746,102 177,600 1989 various 03/31/89
-----------------------------------------------------------------------
$22,295,178 $6,306,355 $141,800,361 $148,106,716 $38,028,894
=======================================================================
</TABLE>
(1) The aggregate cost for Federal Income Tax purposes is approximately $
148,016,716.
* Mortgage notes payable generally represent non-recourse financing
of low-income housing projects payable with terms of up to 40 years with
interest payable at rates ranging from 9.75% to 12%. The Partnership has not
guaranteed any of these mortgage notes payable.
<PAGE>
Boston Financial Qualified Housing Limited Partnership
Schedule III - Real Estate and Accumulated Depreciation
of Property owned by Local Limited Partnerships in
which Registrant has invested at March 31, 1996
(continued)
Summary of property owned and accumulated depreciation:
<TABLE>
<CAPTION>
Property Owned December 31, 1995 Accumulated Depreciation December 31, 1995
<S> <C> <C> <C>
Balance at beginning of period $147,713,079 Balance at beginning of period $34,318,321
Additions during period: Additions during period:
Other acquisitions 8,571 Depreciation 3,710,573
-----------
Improvements etc. 659,703 Balance at close of period $38,028,894
-------------- ===========
668,274
Deductions during period:
Cost of real estate and fixed assets sold (274,637)
Reclassification to intangible assets 0
--------------
(274,637)
--------------
Balance at close of period $148,106,716
==============
Property Owned December 31, 1994 Accumulated Depreciation December 31, 1994
Balance at beginning of period $148,207,928 Balance at beginning of period $29,420,795
Additions during period: Additions during period:
Other acquisitions 27,064 Depreciation 4,897,526
-----------
Improvements etc. 228,450 Balance at close of period $34,318,321
-------------- ===========
255,514
Deductions during period:
Cost of real estate and fixed assets sold (750,363)
Reclassification to intangible assets 0
--------------
(750,363)
--------------
Balance at close of period $147,713,079
==============
Property Owned December 31, 1993 Accumulated Depreciation December 31, 1993
Balance at beginning of period $148,026,160 Balance at beginning of period $24,308,993
Additions during period: Additions during period:
Other acquisitions 60,593 Depreciation 5,111,802
-----------
Improvements etc. 199,195 Balance at close of period $29,420,795
-------------- ===========
259,788
Deductions during period:
Cost of real estate sold 0
Reclassification to intangible assets (78,020)
--------------
(78,020)
--------------
Balance at close of period $148,207,928
==============
</TABLE>
<PAGE>
Annual Report on form 10-K
For The Year Ended March 31, 1996
Reports of Independent Auditors
<PAGE>
[Letterhead]
[LOGO]
Haran & Associates Ltd
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the accompanying balance sheet of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of December 31, 1995 and the related
statements of profit and loss, changes in partners' equity and statement of 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 generally accepted Government Auditing Standards for financial and
compliance audits issued by the Comptroller General of the United States. These
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. 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 provided a reasonable basis for our opinion.
In our opinion the financial statements referred to in the first paragraph
present fairly, in all material respects, the financial position of BOULEVARD
COMMONS LIMITED PARTNERSHIP as of December 31, 1995, and its profit or loss,
changes in partners' equity, and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report
dated January 19, 1996 on our consideration of BOULEVARD COMMONS LIMITED
PARTNERSHIP's internal control structure and reports dated January 19, 1996 on
its compliance with specific requirements applicable to Major HUD Programs and
specific requirements applicable to Affirmative Fair Housing.
The accompanying supplementary information included in this report (shown on
pages 16 through 20) 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 same auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are presented fairly in all material
respects in relation to the basic financial statements taken as a whole.
/s/ HARAN & ASSOCIATES LTD
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate No. 060-002892
Federal Identification No. 36-3097692
Audit Partner: James E. Haran (708) 853-2580
January 19, 1996
<PAGE>
[Letterhead]
[LOGO]
Haran & Associates Ltd
Certified Public Accountants
Business Consultants
INDEPENDENT AUDITOR'S REPORT
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the accompanying balance sheet of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of December 31, 1994 and the related
statements of profit and loss, changes in partners' equity and statement of 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 generally accepted Government Auditing Standards for financial and
compliance audits issued by the Comptroller General of the United States. These
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. 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 provided a reasonable basis for our opinion.
As more fully described in the notes to the financial statements, the
Partnership has expensed construction period interest and real estate taxes
associated with the building. In our opinion, construction period interest and
taxes should be capitalized and depreciated over the life of the building to
conform with generally accepted accounting principles. In addition, the Project
recognized depreciation for the building over a shorter useful life than would
be allowable under generally accepted accounting principles. The effects on the
financial statements of the preceding practices are not reasonably determinable.
In our opinion, except for the effects of the matters discussed in the preceding
paragraph, the financial statements referred to in the first paragraph present
fairly, in all material respects, the financial position of BOULEVARD COMMONS
LIMITED PARTNERSHIP as of December 31, 1994, and its profit or loss, changes in
partners' equity, and its cash flows for the year then ended in conformity with
generally accepted accounting principles. The supporting data included in this
report (shown on pages 15 through 19) has been subjected to the same auditing
procedures applied in the audit of the basic financial statements and, in our
opinion, are presented fairly in all material respects in relation to the basic
financial statements taken as a whole.
/s/ HARAN & ASSOCIATES LTD
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate No. 060-002892
Federal Identification No. 36-3097692
Audit Partner: James E. Haran (708) 853-2580
January 25, 1995
<PAGE>
[Letterhead]
[LOGO]
Haran & Associates Ltd
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the accompanying balance sheet of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of December 31, 1993 and the related
statements of profit and loss, changes in partners' equity and statement of 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 generally accepted Government Auditing Standards for financial and
compliance audits issued by the Comptroller General of the United States. These
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. 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 provided a reasonable basis for our opinion.
As more fully described in the notes to the financial statements, the
Partnership has expensed construction period interest and real estate taxes
associated with the building. In our opinion, construction period interest and
taxes should be capitalized and depreciated over the life of the building to
conform with generally accepted accounting principles. In addition, the Project
recognized depreciation for the building over a shorter useful life than would
be allowable under generally accepted accounting principles. The effects on the
financial statements of the preceding practices are not reasonably determinable.
In our opinion, except for the effects of the matters discussed in the preceding
paragraph, the financial statements referred to in the first paragraph present
fairly, in all material respects, the financial position of BOULEVARD COMMONS
LIMITED PARTNERSHIP as of December 31, 1993, and its profit or loss, changes in
partners' equity, and its cash flows for the year then ended in conformity with
generally accepted accounting principles. The supporting data included in this
report (shown on pages 15 through 19) has been subjected to the same auditing
procedures applied in the audit of the basic financial statements and, in our
opinion, are presented fairly in all material respects in relation to the basic
financial statements taken as a whole.
/s/ HARAN & ASSOCIATES LTD
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate No. 060-002892
Federal Identification No. 36-3097692
Audit Partner: James E. Haran (708) 853-2580
January 25, 1994
<PAGE>
[Letterhead]
GELFOND HOCHSTADT
PANGBURN & CO.
A Professional Corporation
Certified Public Accountants
and Business Consultants
Suite 2500
1600 Broadway
Denver, CO 80202-4925
(303) 831-5000/Fax: (303) 831-5032
A member of Horwath International
[Logo] HORWATH
INDEPENDENT AUDITORS' REPORT
To the Partners of
Sundance Housing Associates, Ltd.
Denver, Colorado
We have audited the accompanying balance sheet of Sundance Housing Associates,
Ltd., a limited partnership (the "Partnership"), HUD Project No. 101-36614, as
of December 31, 1995, and the related statements of profit and loss, changes in
partners' equity (deficiency) and cash flow 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 Sundance Housing Associates,
Ltd., HUD Project No. 101-36614 as of December 31, 1995, and the results of its
operations and the changes in its partners' equity and its cash flows for the
year then ended, in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards and the Consolidated Audit
Guide for Audits and HUD Programs issued by the U.S. Department of Housing and
Urban Development, we have also issued a report dated January 22, 1996 on our
consideration of the Partnership's internal control structure and reports dated
January 22, 1996 on its compliance with specific requirements applicable to
Major HUD programs and specific requirements applicable to Affirmative Fair
Housing.
Our audit was conducted for the pupose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplementary
information required by HUD shown on pages 13 to 18 is presented for purposes of
additional analysis and is not a required part of the basic financial statements
of the Partnership. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
/s/ Gelfond Hochstadt Pangburn & Co.
Gelfond Hochstadt Pangburn & Co.
January 22, 1996
<PAGE>
[Letterhead]
GELFOND HOCHSTADT
PANGBURN & CO.
A Professional Corporation
Certified Public Accountants
and Business Consultants
Suite 2500
1600 Broadway
Denver, CO 80202-4925
(303) 831-5000/Fax: (303) 831-5032
A member of Horwath International
[Logo] HORWATH
INDEPENDENT AUDITORS' REPORT
To the Partners of
Sundance Housing Associates, Ltd.
Denver, Colorado
We have audited the accompanying balance sheet of Sundance Housing Associates,
Ltd., a limited partnership (the "Partnership"), HUD Project No. 101-36614, as
of December 31, 1994, and the related statements of profit and loss, changes in
partners' equity (deficiency) and cash flow 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 Sundance Housing Associates,
Ltd., HUD Project No. 101-36614 as of December 31, 1994, and the results of its
operations and the changes in its partners' equity and its cash flows for the
year then ended, in conformity with generally accepted accounting principles.
/s/ Gelfond Hochstadt Pangburn & Co.
Gelfond Hochstadt Pangburn & Co.
January 20, 1995
<PAGE>
[Letterhead]
GELFOND HOCHSTADT
PANGBURN STARK & CO.
A Professional Corporation
Certified Public Accountants
and Business Consultants
A member of Horwath International
Suite 2100
370 Seventeenth Street
Denver, CO 80202
(303) 595-4000/Fax: (303) 825-7132
[Logo] HORWATH
INDEPENDENT AUDITORS' REPORT
To the Partners of
Sundance Housing Associates, Ltd.
Denver, Colorado
We have audited the accompanying balance sheet of Sundance Housing Associates,
Ltd. (a limited partnership), HUD Project No. 101-36614, as of December 31,
1993, and the related statements of profit and loss, changes in partners' equity
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 Sundance Housing Associates,
Ltd., HUD Project No. 101-36614 as of December 31, 1993, and the results of its
operations and the changes in its partners' equity and its cash flows for the
year then ended, in conformity with generally accepted accounting principles.
/s/ Gelfond Hochstadt Pangburn Stark & Co.
Gelfond Hochstadt Pangburn Stark & Co.
February 7, 1994
<PAGE>
[Letterhead]
[Pyramid logo]
ARONSON, FETRIDGE & WEIGLE
A Professional Corporation
Certified Public Accountants
and Management Consultants
Independent Auditor's Report
The Partners HUD Field Office Director
2225 NEW YORK AVENUE, LTD. 1600 Thockmorton
T/A PEBBLE CREEK APARTMENTS P.O. Box 2905
11781 Lee Jackson Highway, #320 Fort Worth, Texas 76113-2905
Fairfax, Virginia 22033
We have audited the Balance Sheet of 2225 NEW YORK AVENUE, LTD. (A Limited
Partnership) T/A PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 as of
December 31, 1995, and the related Statements of Profit and Loss, Partners'
Capital 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 2225 NEW YORK AVENUE, LTD. T/A
PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 as of December 31, 1995, and
the results of its operations and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
The accompany financial statements have been prepared assuming that 2225 NEW
YORK AVENUE, LTD. T/A PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 will
continue as a going concern. As discussed in Note 6 to the financial statements,
the Partnership has incurred substantial losses from operations, had negative
working capital at December 31, 1995, and was three months delinquent on
mortgage payments. These factors raise substantial doubt about the Partnership's
ability to continue as a going concern. Management's plan in regard to these
matters are also described in Note 6. The financial statements do not include
any adjustments that might result from the outcome of this uncertainty.
Our audit was conducted for the pupose of forming an opinion on the basic
financial statements taken as a whole. The supporting data required by HUD shown
on pages 13 21 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 basic financial
statements and, in our opinion, is fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
/s/ Aronson, Fetridge & Weigle
<PAGE>
[Letterhead]
[Pyramid logo]
ARONSON, FETRIDGE & WEIGLE
A Professional Corporation
Certified Public Accountants
and Management Consultants
Independent Auditor's Report
The Partners HUD Field Office Director
2225 NEW YORK AVENUE, LTD. 1600 Thockmorton
T/A PEBBLE CREEK APARTMENTS P.O. Box 2905
11781 Lee Jackson Highway, #320 Fort Worth, Texas 76113-2905
Fairfax, Virginia 22033
We have audited the Balance Sheet of 2225 NEW YORK AVENUE, LTD. (A Limited
Partnership) T/A PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 as of
December 31, 1994, and the related Statements of Profit and Loss, Partners'
Capital 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 2225 NEW YORK AVENUE, LTD. T/A
PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 as of December 31, 1994, and
the results of its operations and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
The accompany financial statements have been prepared assuming that 2225 NEW
YORK AVENUE, LTD. T/A PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 will
continue as a going concern. As discussed in Note 6 to the financial statements,
the Partnership has incurred substantial losses from operations, had negative
working capital at December 31, 1994, and was three months delinquent on
mortgage payments. These factors raise substantial doubt about the Partnership's
ability to continue as a going concern. Management's plan in regard to these
matters are also described in Note 6. The financial statements do not include
any adjustments that might result from the outcome of this uncertainty.
/s/ Aronson, Fetridge & Weigle
<PAGE>
[Letterhead]
[Pyramid logo]
ARONSON, FETRIDGE & WEIGLE
A Professional Corporation
Certified Public Accountants
and Management Consultants
Independent Auditor's Report
The Partners HUD Field Office Director
2225 NEW YORK AVENUE, LTD. 1600 Thockmorton
(A Limited Partnership) P.O. Box 2905
T/A PEBBLE CREEK APARTMENTS Fort Worth, Texas 76113-2905
11781 Lee Jackson Highway, #320
Fairfax, Virginia 22033
We have audited the Balance Sheet of 2225 NEW YORK AVENUE, LTD. (A Limited
Partnership) T/A PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 as of
December 31, 1993, and the related Statements of Profit and Loss, Changes in
Partners' Capital 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 2225 NEW YORK AVENUE, LTD. T/A
PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 as of December 31, 1993, and
the results of its operations and its cash flow for the year then ended in
conformity with generally accepted accounting principles.
<PAGE>
Independent Auditor's Report (Continued)
The accompanying financial statements have been prepared assuming that 2225 NEW
YORK AVENUE, LTD. T/A PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 will
continue as a going concern. As discussed in Note 6 to the financial statements,
the Partnership's excess of current liabilities over current assets and its net
loss raise substantial doubt about the Partnership's ability to continue as a
going concern. Management's plans in regard to these matters are also described
in Note 6. The financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
/s/ Aronson, Fetridge & Weigle
Aronson, Fetridge & Weigle
Rockville, Maryland
January 19, 1994
<PAGE>
[Letterhead]
[LOGO]
ZINER & COMPANY, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of
Cass House Associates Limited
Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of
Cass House Associates Limited Partnership (a Massachusetts limited partnership)
(Project No. 84-057-S) as of December 31, 1995, and the related statements of
changes in partners' equity (deficit), operations (MHFA Form F.C.-2A) and cash
flows (MHFA Forms F.C.-4A, -4B & -4C) for the year then ended. These financial
statements are the responsibility of the general partners. 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. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the
general partners, 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 Cass House Associates Limited
Partnership as of December 31, 1995, and the results of its operations, its cash
flows and changes in partners' equity (deficit) for the year 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 Note H to the
financial statements, the Partnership has suffered recurring losses from
operations and has a net working capital deficiency, which raises substantial
doubt about its ability to continue in existence. The financial statements do
not include any adjustments that might result from the outcome of this
uncertainty.
/s/ Ziner & Company, P.C.
January 23, 1996
<PAGE>
[Letterhead]
[LOGO]
ZINER & COMPANY, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of
Cass House Associates Limited
Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of
Cass House Associates Limited Partnership (a Massachusetts limited partnership)
(Project No. 84-057-S) as of December 31, 1994, and the related statements of
changes in partners' deficit, operations (MHFA Form F.C.-2A) and cash flows
(MHFA Forms F.C.-4A, -4B & -4C) for the year then ended. These financial
statements are the responsibility of the general partners. 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. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the
general partners, 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 Cass House Associates Limited
Partnership as of December 31, 1994, and the results of its operations, its cash
flows and changes in partners' deficit for the year 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 Note I to the
financial statements, the Partnership has suffered recurring losses from
operations and has a net working capital deficiency, which raises substantial
doubt about its ability to continue in existence. The financial statements do
not include any adjustments that might result from the outcome of this
uncertainty.
/s/ Ziner & Company, P.C.
January 23, 1995
<PAGE>
[Letterhead]
[LOGO]
ZINER & COMPANY, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of
Cass House Associates Limited
Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of
Cass House Associates Limited Partnership (a Massachusetts limited partnership)
(Project No. 84-057-S) as of December 31, 1993, and the related statements of
changes in partners' deficit, operations (MHFA Form F.C.-2A) and cash flows
(MHFA Forms F.C.-4A, -4B & -4C) for the year then ended. These financial
statements are the responsibility of the general partners. 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. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the
general partners, 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 Cass House Associates Limited
Partnership as of December 31, 1993, and the results of its operations, its cash
flows and changes in partners' deficit for the year 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 Note I to the
financial statements, the Partnership has suffered recurring losses from
operations and has a net working capital deficiency, which raises substantial
doubt about its ability to continue in existence. The financial statements do
not include any adjustments that might result from the outcome of this
uncertainty.
/s/ Ziner & Company, P.C.
January 27, 1994
<PAGE>
[LOGO]
ZINER & COMPANY, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of
Verdean Gardens Associates
Limited Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of
Verdean Gardens Associates Limited Partnership (a Massachusetts limited
partnership) (Project No. 84-082-S) as of December 31, 1995, and the related
statements of changes in partners' equity (deficiency) (MHFA Form F.C.-3C)
operations (MHFA Form F.C.-2A) and cash flows (MHFA Forms F.C.-4A, -4B & -4C)
for the year then ended. These financial statements are the responsibility of
the general partners. 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.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the
general partners, 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 Verdean Gardens Associates
Limited Partnership as of December 31, 1995, and the results of its operations,
its cash flows and its changes in partners' equity (deficiency) for the year
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 Note H to the
financial statements, the Partnership has suffered recurring losses from
operations and has a net working capital deficiency, which raises substantial
doubt about its ability to continue in existence. The general partners' plans
regarding these matters are also discussed in Note H. The financial statements
do not include any adjustments that might result from the outcome of this
uncertainty.
/s/ Ziner & Company, P.C.
January 26, 1996
<PAGE>
[Letterhead]
[LOGO]
ZINER & COMPANY, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of
Verdean Gardens Associates
Limited Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of
Verdean Gardens Associates Limited Partnership (a Massachusetts limited
partnership) (Project No. 84-082-S) as of December 31, 1994, and the related
statements of changes in partners' equity (deficiency) (MHFA Form F.C.-3C)
operations (MHFA Form F.C.-2A) and cash flows (MHFA Forms F.C.-4A, -4B & -4C)
for the year then ended. These financial statements are the responsibility of
the general partners. 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. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the
general partners, 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 Verdean Gardens Associates
Limited Partnership as of December 31, 1994, and the results of its operations,
its cash flows and its changes in partners' deficit for the year then ended in
conformity with generally accepted accounting principles.
/s/ Ziner & Company, P.C.
January 27, 1995
<PAGE>
[Letterhead]
[LOGO]
ZINER & COMPANY, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of
Verdean Gardens Associates
Limited Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of
Verdean Gardens Associates Limited Partnership (a Massachusetts limited
partnership) (Project No. 84-057-N) as of December 31, 1993, and the related
statements of changes in partners' deficit, operations (MHFA Form F.C.-2A) and
cash flows (MHFA Forms F.C.-4A, -4B & -4C) for the year then ended. These
financial statements are the responsibility of the general partners. 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. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the
general partners, 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 Verdean Gardens Associates
Limited Partnership as of December 31, 1993, and the results of its operations,
its cash flows and its changes in partners' deficit for the year then ended in
conformity with generally accepted accounting principles.
/s/ Ziner & Company, P.C.
January 28, 1994
<PAGE>
[Letterhead]
ROBERT STEPHENSON
An Accountancy Corporation
515 N. Sepulveda Blvd., Suite A
Manhattan Beach, California 90266
(310) 318-1592
Partners
Medford Hotel Associates Limited Partnership
I have audited the balance sheet of Medford Hotel Associates Limited Partnership
(an Oregon limited partnership) as of December 31, 1995 and the related
statements of operations, partnership capital, and cash flows for the year then
ended. These financial statements are the responsibility of the Partnership's
management. My responsibility is to express an opinion on these financial
statements based on my audit.
I conducted my audit in accordance with generally accepted auditing
standards and with generally accepted Government Auditing Standards issued by
the Comptroller General of the United States. Those standards require that I
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. I believe that my audit
provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Medford Hotel Associates
Limited Partnership at December 31, 1995 and the results of its operations and
its cash flows for the year then ended, in conformity with generally accepted
accounting principles.
In accordance with Government Auditing Standards, I have also issued a report
dated February 15, 1996 on my consideration of Medford Hotel Associates Limited
Partnership's internal control structure and a report dated February 15, 1996 on
its compliance with laws
and regulations.
The accompanying supplementary information (shown on pages 14 and 15) 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 basic financial statements and, in my
opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
/s/ Robert Stephenson
Manhattan Beach, California
February 15, 1996
<PAGE>
[Letterhead]
ROBERT STEPHENSON
An Accountancy Corporation
515 N. Sepulveda Blvd., Suite A
Manhattan Beach, California 90266
(310) 318-1592
Partners HUD Field Office Director
Medford Hotel Associates Limited Partnership Portland, Oregon
I have audited the balance sheet of Medford Hotel Associates Limited
Partnership (an Oregon limited partnership) as of December 31, 1994 and the
related statements of operations, partnership capital, and cash flows for the
year then ended. These financial statements are the responsibility of the
Partnership's management. My responsibility is to express an opinion on these
financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards
and with generally accepted government auditing standards for financial and
compliance audits issued by the Comptroller General of the United States. Those
standards require that I 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.
I believe that my audit provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Medford Hotel Associates
Limited Partnership at December 31, 1994 and the results of its operations and
its cash flows for the year then ended, in conformity with generally accepted
accounting principles.
/s/ Robert Stephenson
Manhattan Beach, California
February 13, 1995
EIN 95-3497150
<PAGE>
[Letterhead]
ROBERT STEPHENSON
An Accountancy Corporation
515 N. Sepulveda Blvd., Suite A
Manhattan Beach, California 90266
(310) 318-1592
Partners HUD Field Office Director
Medford Hotel Associates Limited Partnership Portland, Oregon
I have audited the balance sheet of Medford Hotel Associates Limited
Partnership (an Oregon limited partnership) as of December 31, 1993 and the
related statements of operations, partnership capital, and cash flows for the
year then ended. These financial statements are the responsibility of the
Partnership's management. My responsibility is to express an opinion on these
financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards
and with generally accepted government auditing standards for financial and
compliance audits issued by the Comptroller General of the United States. Those
standards require that I 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.
I believe that my audit provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Medford Hotel Associates
Limited Partnership at December 31, 1993 and the results of its operations and
its cash flows for the year then ended, in conformity with generally accepted
accounting principles.
/s/ Robert Stephenson
Manhattan Beach, California
February 17, 1994
EIN 95-3497150
<PAGE>
[Letterhead]
ROBERT STEPHENSON
An Accountancy Corporation
515 N. Sepulveda Blvd., Suite A
Manhattan Beach, California 90266
(310) 318-1592
Partners
Oregon Landmark-Three Limited Partnership
I have audited the balance sheet of Oregon Landmark-Three Limited Partnership
(an Oregon limited partnership) as of December 31, 1995 and the related
statements of operations, deficit in partnership capital, and cash flows for the
year then ended. These financial statements are the responsibility of the
Partnership's management. My responsibility is to express an opinion on these
financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards
and with generally accepted government auditing standards for financial and
compliance audits issued by the Comptroller General of the United States. Those
standards require that I 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.
I believe that my audit provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Oregon Landmark-Three Limited
Partnership at December 31, 1995 and the results of its operations and its cash
flows for the year then ended, in conformity with generally accepted accounting
principles.
In accordance with Government Auditing Standards, I have also issued a report
dated February 15, 1996 on my consideration of Oregon Landmark-Three Limited
Partnership's internal control structure and a report dated February 15, 1996 on
its compliance with laws
and regulations.
The accompanying supplementary information (shown on pages 14 and 15) 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 basic financial statements and, in my
opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
/s/ Robert Stephenson
Manhattan Beach, California
February 15, 1995
<PAGE>
[Letterhead]
ROBERT STEPHENSON
An Accountancy Corporation
515 N. Sepulveda Blvd., Suite A
Manhattan Beach, California 90266
(310) 318-1592
Partners HUD Field Office Director
Oregon Landmark-Three Limited Partnership Denver, Colorado
I have audited the balance sheet of Oregon Landmark-Three Limited Partnership
(an Oregon limited partnership) as of December 31, 1994 and the related
statements of operations, deficit in partnership capital, and cash flows for the
year then ended. These financial statements are the responsibility of the
Partnership's management. My responsibility is to express an opinion on these
financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards
and with generally accepted government auditing standards for financial and
compliance audits issued by the Comptroller General of the United States. Those
standards require that I 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.
I believe that my audit provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Oregon Landmark-Three Limited
Partnership at December 31, 1994 and the results of its operations and its cash
flows for the year then ended, in conformity with generally accepted accounting
principles.
/s/ Robert Stephenson
Manhattan Beach, California
February 15, 1995
EIN 95-3497150
<PAGE>
[Letterhead]
ROBERT STEPHENSON
An Accountancy Corporation
515 N. Sepulveda Blvd., Suite A
Manhattan Beach, California 90266
(310) 318-1592
Partners HUD Field Office Director
Oregon Landmark-Three Limited Partnership Denver, Colorado
I have audited the balance sheet of Oregon Landmark-Three Limited Partnership
(an Oregon limited partnership) as of December 31, 1993 and the related
statements of operations, deficit in partnership capital, and cash flows for the
year then ended. These financial statements are the responsibility of the
Partnership's management. My responsibility is to express an opinion on these
financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards
and with generally accepted government auditing standards for financial and
compliance audits issued by the Comptroller General of the United States. Those
standards require that I 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.
I believe that my audit provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Oregon Landmark-Three Limited
Partnership at December 31, 1993 and the results of its operations and its cash
flows for the year then ended, in conformity with generally accepted accounting
principles.
/s/ Robert Stephenson
Manhattan Beach, California
February 14, 1994
EIN 95-3497150
<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT
To the Partners of
Trenton Apartments, Ltd.
We have audited the accompanying balance sheet of Trenton Apartments, Ltd. (a
limited partnership) (HUD Project No. 105-94006) as of December 31, 1995 and the
related statements of profit and loss, partners' equity and cash flows for the
year then ended. These financial statements are the responsibility of the
Project'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 Trenton Apartments, Ltd. (a
limited partnership) (HUD Project No. 105-94006) as of December 31, 1995, and
the results of its operations and changes in partners' equity and cash flows for
the year then ended, in conformity with generally accepted accounting
principles.
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 16, 1996, on our
consideration of Trenton Apartments, Ltd. (a limited partnership) (HUD Project
No. 105-94006) internal control structure and reports dated January 16, 1996, on
its compliance with specific requirements applicable to major HUD programs, and
specific requirements applicable to Affirmative Fair Housing.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supporting information included in
the report (shown on pages 14 to 20) are presented for the purposes of
additional analysis and are not a required part of the basic statement of
Trenton Apartments, Ltd. (a limited partnership) (HUD Project No. 105-94006).
Such information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, is fairly stated in
all material respects in relation to the financial statements taken as a whole.
/s/ Lake, Hill & Company
Lake, Hill & Company
Salt Lake City, Utah
January 16, 1996
<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT
To the Partners of
Trenton Apartments, Ltd.
We have audited the accompanying balance sheet of Trenton Apartments, Ltd. (a
limited partnership) (HUD Project No. 105-94006) as of December 31, 1994 and the
related statements of profit and loss, partners' equity and cash flows for the
year then ended. These financial statements are the responsibility of the
Project'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 Trenton Apartments, Ltd. (a
limited partnership) (HUD Project No. 105-94006) as of December 31, 1994, and
the results of its operations and changes in partners' equity and 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 supporting information included in
the report (shown on pages 13 to 19) are presented for the purposes of
additional analysis and are not a required part of the basic statement of
Trenton Apartments, Ltd. (a limited partnership) (HUD Project No. 105-94006).
Such information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, is fairly stated in
all material respects in relation to the financial statements taken as a whole.
/s/ Lake, Hill & Company
Lake, Hill & Company
Salt Lake City, Utah
January 24, 1995
<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT
To the Partners of
Trenton Apartments, Ltd.
We have audited the accompanying balance sheet of HUD Project No. 105-94006 of
the Trenton Apartments, Ltd. (a limited partnership) as of December 31, 1993 and
the related statements of profit and loss, partners' equity and cash flows for
the year then ended. These financial statements are the responsibility of the
Project'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 HUD Project No. 105-94006 as of
December 31, 1993, and the results of its operations and changes in partners'
equity and 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 supporting information included in
the report (shown on pages 13 to 20) are presented for the purposes of
additional analysis and are not a required part of the basic statement of HUD
Project No. 105-94006. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
/s/ Lake, Hill & Company
Lake, Hill & Company
Salt Lake City, Utah
February 1, 1994
<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT
To the Partners of
Lakeview Heights Apartments, Ltd.
We have audited the accompanying balance sheet of Lakeview Heights Apartments,
Ltd. (a limited partnership) (HUD Project No. 105-94007) as of December 31, 1995
and the related statements of profit and loss, partners' equity and cash flows
for the year then ended. These financial statements are the responsibility of
the Project'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 Lakeview Heights Apartments,
Ltd. (a limited partnership) (HUD Project No. 105-94007) as of December 31,
1995, and the results of its operations and changes in partners' equity and cash
flows for the year then ended, in conformity with generally accepted accounting
principles.
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 25, 1996, on our
consideration of Lakeview Heights Apartments, Ltd. (a limited partnership) (HUD
Project No. 105-94007) internal control structure and reports dated January 25,
1996, on its complience with specific requirements applicable to major HUD
programs, and specific requirements applicable to Affirmative Fair Housing.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supporting information included in
the report (shown on pages 15 to 21) are presented for the purposes of
additional analysis and are not a required part of the basic statements of
Lakeview Heights Apartments, Ltd. (a limited partnership) (HUD Project No.
105-94007). Such information has been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our opinion, is
fairly stated in all material respects in relation to the financial statements
taken as a whole.
/s/ Lake, Hill & Company
Lake, Hill & Company
Salt Lake City, Utah
January 25, 1996
<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT
To the Partners of
Lakeview Heights Apartments, Ltd.
We have audited the accompanying balance sheet of Lakeview Heights Apartments,
Ltd. (a limited partnership) (HUD Project No. 105-94007) as of December 31, 1994
and the related statements of profit and loss, partners' equity and cash flows
for the year then ended. These financial statements are the responsibility of
the Project'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 Lakeview Heights Apartments,
Ltd. (a limited partnership) (HUD Project No. 105-94007) as of December 31,
1994, and the results of its operations and changes in partners' equity and 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 supporting information included in
the report (shown on pages 13 to 19) are presented for the purposes of
additional analysis and are not a required part of the basic statements of
Lakeview Heights Apartments, Ltd. (a limited partnership) (HUD Project No.
105-94007). Such information has been subjected to the auditing procedures
applied in the audit of the basic financial statements and, in our opinion, is
fairly stated in all material respects in relation to the financial statements
taken as a whole.
/s/ Lake, Hill & Company
Lake, Hill & Company
Salt Lake City, Utah
January 24, 1995
<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT
To the Partners of
Lakeview Heights Apartments, Ltd.
We have audited the accompanying balance sheet of HUD Project No. 105-94007 of
the Lakeview Heights Apartments, Ltd. (a limited partnership) as of December 31,
1993 and the related statements of profit and loss, partners' equity and cash
flows for the year then ended. These financial statements are the responsibility
of the Project'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 HUD Project No. 105-94007 as of
December 31, 1993, and the results of its operations and changes in partners'
equity and 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 supporting information included in
the report (shown on pages 13 to 20) are presented for the purposes of
additional analysis and are not a required part of the basic statement of HUD
Project No. 105-94007. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
/s/ Lake, Hill & Company
Lake, Hill & Company
Salt Lake City, Utah
January 26, 1994
<PAGE>
[LETTERHEAD]
[Logo]
Reznick Fedder & Silverman
Certified Public Accountants * Business Consultants
INDEPENDENT AUDITORS' REPORT
To the Partners
Windsor Court Housing Associates, Ltd.
We have audited the accompanying balance sheet of Windsor Court Housing
Associates, Ltd. (a Limited Partnership) as of December 31, 1995, and the
related statements of profit and loss (on HUD Form No. 92410), partners' 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 Windsor Court Housing
Associates, Ltd. (a Limited Partnership) as of December 31, 1995, and the
results of its operations, changes in partners' deficit and cash flows for the
year then ended, in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 20 through 25
is presented for the 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 basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued reports
dated February 21, 1996, on our consideration of Windsor Court Housing
Associates, Ltd.'s internal control structure and on its compliance with
specific requirements applicable to major HUD programs, affirmative fair
housing, and laws and regulations applicable to the financial statements.
/s/ Reznick Fedder & Silverman
Boston, Massachusetts Federal Employer
February 21, 1996 Identification Number:
52-1088612
Audit Principal: Phillip A. Weitzel
<PAGE>
[Letterhead]
[Logo]
Coopers Coopers & Lybrand L.L.P.
&Lybrand a professional services firm
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of
Windsor Court Housing Associates, Ltd.
(a Limited Partnership):
We have audited the accompanying balance sheet of Windsor Court Housing
Associates, Ltd. (a Limited Partnership), HUD Project No. 101-36615, as of
December 31, 1994 and the related statements of profit and loss, partners'
equity (deficiency), 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 Windsor Court Housing
Associates, Ltd. (a Limited Partnership), HUD Project No. 101-36615, as of
December 31, 1994 and the results of its operations and its cash flows for the
year then ended in conformity with generally accepted accounting principles.
As discussed in Note 5 to the financial statements, in connection with the 1993
Section 8 Moderate Rehabilitation Program audit, HUD has asserted that the
Partnership violated certain requirements related to the displacement and
relocation of tenants while the project was undergoing renovation. HUD estimates
that it is entitled to recoup approximately $1,959,000 in past subsidy payments
and to reduce future subsidy payments by approximately $4,442,000 over the
remainder of the HAP contract. Without these subsidies, the Partnership may not
be able to continue to operate as a going concern. HUD has not yet attempted to
enforce its position, but should HUD do so, the Partnership has asserted that it
intends to vigorously contest the matter. The ultimate outcome of this
threatened litigation cannot presently be determined. Accordingly, no provision
for potential loss regarding this matter has been reflected in the accompanying
financial statements.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts
February 1, 1995
<PAGE>
[Letterhead]
[Logo]
Coopers certified public
&Lybrand accountants
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of
Windsor Court Housing Associates, Ltd.
(a Limited Partnership):
We have audited the accompanying balance sheet of Windsor Court Housing
Associates, Ltd. (a Limited Partnership), HUD Project No. 101-36615, as of
December 31, 1993 and the related statements of profit and loss, partners'
equity (deficiency), 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 Windsor Court Housing
Associates, Ltd. (a Limited Partnership), HUD Project No. 101-36615, as of
December 31, 1993 and the results of its operations and its cash flows for the
year then ended in conformity with generally accepted accounting principles.
As discussed in Note 5 to the financial statements, in connection with the
Section 8 Moderate Rehabilitation Program audit, HUD has asserted that the
Partnership violated certain requirements related to the displacement and
relocation of tenants while the project was undergoing renovation. HUD estimates
that it is entitled to recoup approximately $1,959,000 in past subsidy payments
and to reduce future subsidy payments by approximately $4,442,000 over the
remainder of the HAP contract. HUD has not yet attempted to enforce its
position, but should HUD do so, the Partnership intends to vigorously contest
the matter. The ultimate outcome of this threatened litigation cannot presently
be determined. Accordingly, no provision for potential loss regarding this
matter has been reflected in the financial statements.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts
February 1, 1994
<PAGE>
[LETTERHEAD]
[Logo]
Reznick Fedder & Silverman
Certified Public Accountants * Business Consultants
INDEPENDENT AUDITORS' REPORT
To the Partners
Terrace Housing Associates, Ltd.
We have audited the accompanying balance sheet of Terrace Housing Associates,
Ltd. as of December 31, 1995, and the related statements of profit and loss (on
HUD Form No. 92410), partners' 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 Terrace Housing Associates,
Ltd. as of December 31, 1995, and the results of its operations, the changes in
partners' deficit and cash flows for the year then ended, in conformity with
generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 21 through 27
is presented for the purposes of additional analysis and is not
a required part of the basic financial statements. Such information, except for
the portion marked "unaudited", on which we express no opinion has been
subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, is fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued reports
dated February 23, 1996, on our consideration of Terrace Housing Associates,
Ltd.'s internal control structure and on its compliance with specific
requirements applicable to major HUD programs, affirmative fair housing, and
laws and regulations applicable to the financial statements.
/s/ Reznick Fedder & Silverman
Boston, Massachusetts Federal Employer
February 21, 1996 Identification Number:
52-1088612
Audit Principal: Phillip A. Weitzel
<PAGE>
[Letterhead]
[Logo]
Coopers Coopers & Lybrand L.L.P.
&Lybrand a professional services firm
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of
Terrace Housing Associates, Ltd.
(a Limited Partnership):
We have audited the accompanying balance sheet of Terrace Housing Associates,
Ltd. (a Limited Partnership), HUD Project No. 117-36608, as of December 31,
1994, and the related statements of profit and loss, partners' equity
(deficiency), 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 Terrace Housing Associates,
Ltd. (a Limited Partnership), HUD Project No. 117-36608 as of December 31, 1994,
and the results of its operations and its cash flows for the year then ended, in
conformity with generally accepted accounting principles.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts
February 1, 1995
<PAGE>
[Letterhead]
[Logo]
Coopers certified public accountants
&Lybrand
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of
Terrace Housing Associates, Ltd.
(a Limited Partnership):
We have audited the accompanying balance sheet of Terrace Housing Associates,
Ltd. (a Limited Partnership), HUD Project No. 117-36608, as of December 31, 1993
and the related statements of profit and loss, partners' equity (deficiency),
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 Terrace Housing Associates,
Ltd. (a Limited Partnership), HUD Project No. 117-36608 as of December 31, 1993,
and the results of its operations and its cash flows for the year then ended, in
conformity with generally accepted accounting principles.
As discussed in Note 5 to the financial statements, in connection with the
Section 8 Moderate Rehabilitation Program audit, the HUD Inspector General of
Audit has directed the Oklahoma City Housing Authority to reduce initial base
and contract rents and recover excess subsidies paid by HUD to the Project
retroactively to November 1, 1987. The total effect of these directives is
estimated to be $1,500,000. No provision for the potential rent reduction has
been made in the accompanying financial statements.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts
February 1, 1994
<PAGE>
[LETTERHEAD]
[Logo]
Reznick Fedder & Silverman
Certified Public Accountants * Business Consultants
INDEPENDENT AUDITORS' REPORT
To the Partners
Rolling Green Housing Associates, Ltd.
We have audited the accompanying balance sheet of Rolling Green Housing
Associates, Ltd. as of December 31, 1995, and the related statements of profit
and loss (on HUD Form No. 92410), partners' 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 Rolling Green Housing
Associates, Ltd. as of December 31, 1995, and the results of its operations, the
changes in partners' deficit and cash flows for the year then ended, in
conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 20 through 25
is presented for the 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 basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued reports
dated February 13, 1996, on our consideration of Rolling Green Housing
Associates, Ltd.'s internal control structure and on its compliance with
specific requirements applicable to major HUD programs, affirmative fair
housing, and laws and regulations applicable to the financial statements.
/s/ Reznick Fedder & Silverman
Boston, Massachusetts Federal Employer
February 13, 1996 Identification Number:
52-1088612
Audit Principal: Phillip A. Weitzel
<PAGE>
[Letterhead]
[Logo]
Coopers Coopers & Lybrand L.L.P.
&Lybrand a professional services firm
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of
Rolling Green Housing Associates, Ltd.
(a Limited Partnership):
We have audited the accompanying balance sheet of Rolling Green Housing
Associates, Ltd. (a Limited Partnership), HUD Project No. 117-36603, as of
December 31, 1994 and the related statements of profit and loss, partners'
equity (deficiency), and cash flows for the year then ended. These financial
statements are the responsibility of the General Partners of the Partnership.
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 the General Partners of the Partnership, 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 Rolling Green Housing
Associates, Ltd. (a Limited Partnership), HUD Project No. 117-36603, as of
December 31, 1994 and the results of its operations and its cash flows for the
year then ended, in conformity with generally accepted accounting principles.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts
February 1, 1995
<PAGE>
[Letterhead]
[Logo]
Coopers certified public accountants
&Lybrand
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of
Rolling Green Housing Associates, Ltd.
(a Limited Partnership):
We have audited the accompanying balance sheet of Rolling Green Housing
Associates, Ltd. (a Limited Partnership), HUD Project No. 117-36603, as of
December 31, 1993 and the related statements of profit and loss, partners'
equity (deficiency), and cash flows for the year then ended. These financial
statements are the responsibility of the General Partners of the Partnership.
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 the General Partners of the Partnership, 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 Rolling Green Housing
Associates, Ltd. (a Limited Partnership), HUD Project No. 117-36603, as of
December 31, 1993 and the results of its operations and its cash flows for the
year then ended, in conformity with generally accepted accounting principles.
As discussed in Note 5 to the financial statements, in connection with the
Section 8 Moderate Rehabilitation Program audit, the HUD Inspector General of
Audit has directed the Oklahoma Housing Finance Authority to reduce initial base
and contract rents and recover excess subsidies paid by HUD to the project
retroactively to July 6, 1987. The total effect of these directives is estimated
to be $940,000. No provision for the potential rent reduction has been made in
the accompanying financial statements.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts
February 1, 1994
<PAGE>
[LETTERHEAD]
[Logo]
Reznick Fedder & Silverman
Certified Public Accountants * Business Consultants
INDEPENDENT AUDITORS' REPORT
To the Partners
Sierra Vista Housing Associates, Ltd.
We have audited the accompanying balance sheet of Sierra Vista Housing
Associates, Ltd. as of December 31, 1995, and the related statements of profit
and loss (on HUD Form No. 92410), partners' 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 Sierra Vista Housing
Associates, Ltd. as of December 31, 1995, and the results of its operations, the
changes in partners' deficit and cash flows for the year then ended, in
conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 21 through 27
is presented for the purposes of additional analysis and is not
a required part of the basic financial statements. Such information, except for
the portion marked "unaudited", on which we express no opinion, has been
subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, is fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued reports
dated February 23, 1996, on our consideration of Sierra Vista Housing
Associates, Ltd. 's internal control structure and on its compliance with
specific requirements applicable to major HUD programs, affirmative fair
housing, and laws and regulations applicable to the financial statements.
/s/ Reznick Fedder & Silverman
Boston, Massachusetts Federal Employer
February 23, 1996 Identification Number:
52-1088612
Audit Principal: Phillip A. Weitzel
<PAGE>
[Letterhead]
[Logo]
Coopers Coopers & Lybrand L.L.P.
&Lybrand a professional services firm
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of
Sierra Vista Housing Associates, Ltd.
(a Limited Partnership):
We have audited the accompanying balance sheet of Sierra Vista Housing
Associates, Ltd. (a Limited Partnership), HUD Project No. 125-94004, as of
December 31, 1994, and the related statements of profit and loss, partners'
equity (deficiency), 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 Sierra Vista Housing
Associates, Ltd. (a Limited Partnership), HUD Project No. 125-94004, as of
December 31, 1994, and the results of its operations and cash flows for the year
then ended, in conformity with generally accepted accounting principles.
As discussed in Note 5 to the financial statements, in connection with the 1993
Section 8 Moderate Rehabilitation Program audit, HUD has asserted that the
Partnership violated certain requirements related to the displacement and
relocation of tenants while the project was undergoing renovation. HUD estimates
that it is entitled to recoup approximately $4,143,000 in past subsidy payments
and to reduce future subsidy payments by approximately $9,516,000 over the
remainder of the HAP contract. Without these subsidies, the Partnership may not
be able to continue to operate as a going concern. HUD has not yet attempted to
enforce its position, but should HUD do so, the Partnership has asserted that it
intends to vigorously contest the matter. The ultimate outcome of this
threatened litigation cannot presently be determined. Accordingly, no provision
for potential loss regarding this matter has been reflected in the financial
statements.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts
February 1, 1995
<PAGE>
[Letterhead]
[Logo]
Coopers certified public accountants
&Lybrand
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of
Sierra Vista Housing Associates, Ltd.
(a Limited Partnership):
We have audited the accompanying balance sheet of Sierra Vista Housing
Associates, Ltd. (a Limited Partnership), HUD Project No. 125-94004, as of
December 31, 1993, and the related statements of profit and loss, partners'
equity (deficiency), 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 Sierra Vista Housing
Associates, Ltd. (a Limited Partnership), HUD Project No. 125-94004, as of
December 31, 1993, and the results of its operations and cash flows for the year
then ended, in conformity with generally accepted accounting principles.
As discussed in Note 5 to the financial statements, in connection with the
Section 8 Moderate Rehabilitation Program audit, the HUD Inspector General of
Audit has asserted that the contract rents of the project should be reduced by
approximately $253,000 over the contract term. In addition, HUD has asserted
that the Partnership violated certain requirements related to the displacement
and relocation of tenants while the project was undergoing renovation. In
connection with this issue, HUD has asserted that it is entitled to recoup
approximately $4,143,000 in past subsidy payments and to reduce future subsidy
payments by approximately $9,516,000 over the remainder of the HAP contract. HUD
has not yet attempted to enforce its positions, but should HUD do so, the
Partnership intends to vigorously contest these matters. The ultimate outcome of
this threatened litigation cannot presently be determined. Accordingly, no
provision for potential loss regarding these matters has been reflected in the
financial statements.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts
February 1, 1994
<PAGE>
[Letterhead]
[Logo] VMcHC&S Vroman, McGowen, Hurst, Clark & Smith, P.C.
Certified Public Accountants and Business Advisors
INDEPENDENT AUDITOR'S REPORT
To the Partners
Coronado Courts Limited Partnership
We have audited the accompanying balance sheets of Coronado Courts Limited
Partnership, HUD Project No. 123- 36605, as of December 31, 1995 and 1994, and
the related statements of profit and loss, partners' capital 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 audits.
We conducted our audits 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 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 Coronado Courts Limited
Partnership as of December 31, 1995 and 1994, and the results of its operations,
changes in partners' capital and cash flows for the years then ended in
conformity with generally accepted accounting principles.
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 February 1, 1996, on our
consideration of the Partnership's internal control structure and reports dated
February 1, 1996, on its complience with specific requirements applicable to
major HUD programs, and specific requirements applicable to Affirmative Fair
Housing.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental information
(shown in Section II) is presented for the purpose of additional analysis and is
not a required part of the basic financial statements of Coronado Courts Limited
Partnership. Such information has been subjected to the auditing procedures
applied in the audits of the basic financial statements and, in our opinion, is
fairly stated in all material respects in relation to the basic financial
statements taken as a whole.
/s/ Vroman, McGowen, Hurst, Clark & Smith, P.C.
Des Moines, Iowa
February 1, 1996
Other Auditor Information:
Lead Auditor - Michael W. McNichols
Federal I.D. Number - 42-1104473
<PAGE>
[Letterhead]
[Logo] VMcHC&S Vroman, McGowen, Hurst, Clark & Smith, P.C.
Certified Public Accountants and Business Advisors
INDEPENDENT AUDITOR'S REPORT
To the Partners
Coronado Courts Limited Partnership
We have audited the accompanying balance sheets of Coronado Courts Limited
Partnership, HUD Project No. 123- 36605, as of December 31, 1994 and 1993, and
the related statements of profit and loss, partners' capital 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 audits.
We conducted our audits 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 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 Coronado Courts Limited
Partnership as of December 31, 1994 and 1993, and the results of its operations,
changes in partners' capital and cash flows for the years then ended in
conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental information
(shown on pages 13 to 18) is presented for the purpose of additional analysis
and is not a required part of the basic financial statements of Coronado Courts
Limited Partnership. Such information has been subjected to the auditing
procedures applied in the audits of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
/s/ Vroman, McGowen, Hurst, Clark & Smith, P.C.
Des Moines, Iowa
February 10, 1995
Other Auditor Information:
Lead Auditor - Michael W. McNichols
Federal I.D. Number - 42-1104473
<PAGE>
[Letterhead]
[LOGO] Freedberg & Garlick, P.C.
Certified Public Accountants
Wellesley Office Park
55 William Street
Wellesley, Massachusetts 02181-4003
617-239-3400, FAX 239-1140
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Partners of
MB Bittersweet Associates Limited Partnership
(a Massachusetts Limited Partnership)
Boston, Massachusetts
We have audited the accompanying balance sheet of MB Bittersweet Associates
Limited Partnership, MHFA Project No. 84-051-S, as of December 31, 1995, and the
related statements of operations, partners' equity (deficiency) 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 MB Bittersweet Associates
Limited Partnership as of December 31, 1995, and the results of its operations,
changes in partners' equity (deficiency) and its cash flows for the year then
ended in conformity with generally accepted accounting principles.
In accordance with Government Auditing Standards. we have also issued reports
dated February 13, 1996 on our consideration of MB Bittersweet Associates
Limited Partnership's internal control structure and on its compliance with laws
and regulations.
/s/ Freedberg & Garlick, P.C.
February 13, 1996
<PAGE>
[Letterhead]
[LOGO] Freedberg & Garlick, P.C.
Certified Public Accountants
Wellesley Office Park
55 William Street
Wellesley, Massachusetts 02181-4003
617-239-3400, FAX 239-1140
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Partners of
MB Bittersweet Associates Limited Partnership
(a Massachusetts Limited Partnership)
Boston, Massachusetts
We have audited the accompanying balance sheet of MB Bittersweet Associates
Limited Partnership, MHFA Project No. 84-051-S, as of December 31, 1994, and the
related statements of operations, partners' equity (deficiency) 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 MB Bittersweet Associates
Limited Partnership as of December 31, 1994, and the results of its operations,
changes in partners' equity (deficiency) and its cash flows for the year then
ended in conformity with generally accepted accounting principles.
/s/ Freedberg & Garlick, P.C.
February 14, 1995
<PAGE>
[Letterhead]
[LOGO] Freedberg & Garlick, P.C.
Certified Public Accountants
Wellesley Office Park
55 William Street
Wellesley, Massachusetts 02181-4003
617-239-3400, FAX 239-1140
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Partners of
MB Bittersweet Associates Limited Partnership
(a Massachusetts Limited Partnership)
Boston, Massachusetts
We have audited the accompanying balance sheet of MB Bittersweet Associates
Limited Partnership, MHFA Project No. 84-051-S, as of December 31, 1993, and the
related statements of operations, partners' equity (deficiency) 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 MB Bittersweet Associates
Limited Partnership as of December 31, 1993, and the results of its operations,
changes in partners' equity (deficiency) and its cash flows for the year then
ended in conformity with generally accepted accounting principles.
/s/ Freedberg & Garlick, P.C.
February 10, 1994
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners
Hughes Apartments Limited Partnership
Wahpeton, North Dakota
We have audited the accompanying balance sheets of Hughes Apartments Limited
Partnership as of December 31, 1995 and 1994, 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 audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
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 Hughes Apartments Limited
Partnership as of December 31, 1995 and 1994, 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 Note 9 to the
financial statements, the Partnership was unable to pay all of the required bond
payments which raises substantial doubt about the Partnership's ability to
continue as a going concern. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota
February 19, 1996
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners
Hughes Apartments Limited Partnership
Wahpeton, North Dakota
We have audited the accompanying balance sheets of Hughes Apartments Limited
Partnership as of December 31, 1994 and 1993, 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 audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
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 Hughes Apartments Limited
Partnership as of December 31, 1994 and 1993, 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 Note 9 to the
financial statements, the Partnership was unable to pay real estate taxes, or
all of the required bond payments which raises substantial doubt about the
Partnership's ability to continue as a going concern. The financial statements
do not include any adjustments that might result from the outcome of this
uncertainty.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota
January 18, 1995
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners
600 Dakota Properties Limited Partnership
Wahpeton, North Dakota
We have audited the accompanying balance sheets of 600 Dakota Properties Limited
Partnership as of December 31, 1995 and 1994, 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 audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
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 600 Dakota Properties Limited
Partnership as of December 31, 1995 and 1994, and the results of its operations
and its cash flows for the years then ended in conformity with generally
accepted accounting principles.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota
January 22, 1996
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners
600 Dakota Properties Limited Partnership
Wahpeton, North Dakota
We have audited the accompanying balance sheets of 600 Dakota Properties Limited
Partnership as of December 31, 1994 and 1993, 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 audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
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 600 Dakota Properties Limited
Partnership as of December 31, 1994 and 1993, and the results of its operations
and its cash flows for the years then ended in conformity with generally
accepted accounting principles.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota
January 17, 1995
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners
Duluth Limited Partnership
Wahpeton, North Dakota
We have audited the accompanying balance sheet of Duluth Limited Partnership,
FHA Project Number 091-10505 REF, as of December 31, 1995, and the related
statements of profit and loss, partners' equity 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 Duluth Limited Partnership as
of December 31, 1995, and the results of its operations and its cash flows for
the year then ended in conformity with generally accepted accounting principles.
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 22, 1996, on our
consideration of Duluth Limited Partnership's internal control structure and
reports dated January 22, 1996, on its compliance with specific requirements
applicable to nonmajor HUD program transactions and specific requirements
applicable to Affirmative Fair Housing.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary information is
presented for the 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 basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota
January 22, 1996
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners
Duluth Limited Partnership
Wahpeton, North Dakota
We have audited the accompanying balance sheet of Duluth Limited Partnership,
FHA Project Number 091-10505 REF, as of December 31, 1994, and the related
statements of profit and loss, partners' equity 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 Duluth Limited Partnership as
of December 31, 1994, 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 supplementary information is
presented for the 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 basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota
January 18, 1995
<PAGE>
[Letterhead]
Charles Bailly & Company P.L.L.P.
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Partners
Duluth Limited Partnership
Wahpeton, North Dakota
We have audited the accompanying balance sheet of Duluth Limited Partnership,
FHA Project Number 091-10505 REF, as of December 31, 1993, and the related
statements of profit and loss, partners' equity and cash flows for the year then
ended. These financial statements are the responsibility of the Project'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 Duluth Limited Partnership as
of December 31, 1993, 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 supplementary information is
presented for the 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 basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
/s/ Charles Bailly & Company
Fargo, North Dakota
January 10, 1994
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners
Barrington Manor Limited Partnership
Wahpeton, North Dakota
We have audited the accompanying balance sheets of Barrington Manor Limited
Partnership as of December 31, 1995 and 1994, 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 audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
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 Barrington Manor Limited
Partnership as of December 31, 1995 and 1994, and the results of its operations
and its cash flows for the years then ended in conformity with generally
accepted accounting principles.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota
January 17, 1996
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners
Barrington Manor Limited Partnership
Wahpeton, North Dakota
We have audited the accompanying balance sheets of Barrington Manor Limited
Partnership as of December 31, 1994 and 1993, 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 audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
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 Barrington Manor Limited
Partnership as of December 31, 1994 and 1993, and the results of its operations
and its cash flows for the years then ended in conformity with generally
accepted accounting principles.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota
January 16, 1995
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners
Graver Inn Limited Partnership
Wahpeton, North Dakota
We have audited the accompanying balance sheets of Graver Inn Limited
Partnership as of December 31, 1995 and 1994, 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 audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
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 Graver Inn Limited Partnership
as of December 31, 1995 and 1994, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota
January 17, 1996
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
Certified Public Accountants * Consultants
INDEPENDENT AUDITOR'S REPORT
The Partners
Graver Inn Limited Partnership
Wahpeton, North Dakota
We have audited the accompanying balance sheets of Graver Inn Limited
Partnership as of December 31, 1994 and 1993, 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 audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
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 Graver Inn Limited Partnership
as of December 31, 1994 and 1993, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota
January 16, 1995
<PAGE>
[Letterhead]
David C. Moja, C.P.A., P.C.
P.O. Box 14212
5 Oglethorpe Professional Blvd.
Savannah, Georgia 31416
(912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of
Chestnut Lane Limited Partnership
We have audited the accompanying balance sheets of Chestnut Lane Limited
Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December
31, 1994, and the related statements of operations, partners' equity (deficit)
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 audits.
We conducted our audits 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 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 Chestnut Lane Limited
Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December
31, 1994, and the results of its operations and its cash flows for the years
then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information listed in the
table of contents is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information, except for
the portion marked "unaudited", on which we express no opinion, has been
subjected to the procedures applied in the audits of the basic financial
statements and, in our opinion, is fairly presented in all material respects in
relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 12, 1996
Savannah, Georgia
<PAGE>
[Letterhead]
David C. Moja, C.P.A., P.C.
P.O. Box 14212
5 Oglethorpe Professional Blvd.
Savannah, Georgia 31416
(912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of
Chestnut Lane Limited Partnership
We have audited the accompanying balance sheets of Chestnut Lane Limited
Partnership (a Georgia Limited Partnership) as of December 31, 1994 and December
31, 1993, and the related statements of operations, partners' equity (deficit)
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 audits.
We conducted our audits 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 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 Chestnut Lane Limited
Partnership (a Georgia Limited Partnership) as of December 31, 1994 and December
31, 1993, and the results of its operations and its cash flows for the years
then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information listed in the
table of contents is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information, except for
the portion marked "unaudited", on which we express no opinion, has been
subjected to the procedures applied in the audits of the basic financial
statements and, in our opinion, is fairly presented in all material respects in
relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 3, 1995
Savannah, Georgia
<PAGE>
[Letterhead]
David C. Moja, C.P.A., P.C.
P.O. Box 14212
5 Oglethorpe Professional Blvd.
Savannah, Georgia 31416
(912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of
Glennville Properties
We have audited the accompanying balance sheets of Glennville Properties (a
Georgia Limited Partnership) as of December 31, 1995 and December 31, 1994, and
the related statements of operations, partners' equity (deficit) 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 audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes 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 Glennville Properties (a
Georgia Limited Partnership) as of December 31, 1995 and December 31, 1994, and
the results of its operations and its cash flows for the years then ended in
conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information listed in the
table of contents is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information, except for
the portion marked "unaudited", on which we express no opinion, has been
subjected to the procedures applied in the audits of the basic financial
statements and, in our opinion, is fairly presented in all material respects in
relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 11, 1996
Savannah, Georgia
<PAGE>
[Letterhead]
David C. Moja, C.P.A., P.C.
P.O. Box 14212
5 Oglethorpe Professional Blvd.
Savannah, Georgia 31416
(912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of
Glennville Properties
We have audited the accompanying balance sheets of Glennville Properties (a
Georgia Limited Partnership) as of December 31, 1994 and December 31, 1993, and
the related statements of operations, partners' equity (deficit) 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 audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes 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 Glennville Properties (a
Georgia Limited Partnership) as of December 31, 1994 and December 31, 1993, and
the results of its operations and its cash flows for the years then ended in
conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information listed in the
table of contents is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information, except for
the portion marked "unaudited", on which we express no opinion, has been
subjected to the procedures applied in the audits of the basic financial
statements and, in our opinion, is fairly presented in all material respects in
relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 3, 1995
Savannah, Georgia
<PAGE>
[Letterhead]
David C. Moja, C.P.A., P.C.
P.O. Box 14212
Savannah, Georgia 31416
(912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of
Pine Village Limited Partnership
We have audited the accompanying balance sheets of Pine Village Limited
Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December
31, 1994, and the related statements of operations, partners' equity (deficit)
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 audits.
We conducted our audits 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 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 Pine Village Limited
Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December
31, 1994, and the results of its operations and its cash flows for the years
then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information listed in the
table of contents is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information, except for
the portion marked "unaudited", on which we express no opinion, has been
subjected to the procedures applied in the audits of the basic financial
statements and, in our opinion, is fairly presented in all material respects in
relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 12, 1996
Savannah, Georgia
<PAGE>
[Letterhead]
David C. Moja, C.P.A., P.C.
P.O. Box 14212
Savannah, Georgia 31416
(912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of
Pine Village Limited Partnership
We have audited the accompanying balance sheets of Pine Village Limited
Partnership (a Georgia Limited Partnership) as of December 31, 1994 and December
31, 1993, and the related statements of operations, partners' equity (deficit)
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 audits.
We conducted our audits 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 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 Pine Village Limited
Partnership (a Georgia Limited Partnership) as of December 31, 1994 and December
31, 1993, and the results of its operations and its cash flows for the years
then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information listed in the
table of contents is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information, except for
the portion marked "unaudited", on which we express no opinion, has been
subjected to the procedures applied in the audits of the basic financial
statements and, in our opinion, is fairly presented in all material respects in
relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 3, 1995
Savannah, Georgia
<PAGE>
[Letterhead]
David C. Moja, C.P.A., P.C.
P.O. Box 14212
Savannah, Georgia 31416
(912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of
Talbot Village Limited Partnership
We have audited the accompanying balance sheets of Talbot Village Limited
Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December
31, 1994, and the related statements of operations, partners' equity (deficit)
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 audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes 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 Talbot Village Limited
Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December
31, 1994, and the results of its operations and its cash flows for the years
then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information listed in the
table of contents is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information, except for
the portion marked "unaudited", on which we express no opinion, has been
subjected to the procedures applied in the audits of the basic financial
statements and, in our opinion, is fairly presented in all material respects in
relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 11, 1996
Savannah, Georgia
<PAGE>
[Letterhead]
David C. Moja, C.P.A., P.C.
P.O. Box 14212
5 Oglethorpe Professional Blvd.
Savannah, Georgia 31416
(912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of
Talbot Village Limited Partnership
We have audited the accompanying balance sheets of Talbot Village Limited
Partnership (a Georgia Limited Partnership) as of December 31, 1994 and December
31, 1993, and the related statements of operations, partners' equity (deficit)
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 audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes 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 Talbot Village Limited
Partnership (a Georgia Limited Partnership) as of December 31, 1994 and December
31, 1993, and the results of its operations and its cash flows for the years
then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information listed in the
table of contents is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information, except for
the portion marked "unaudited", on which we express no opinion, has been
subjected to the procedures applied in the audits of the basic financial
statements and, in our opinion, is fairly presented in all material respects in
relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 3, 1995
Savannah, Georgia
<PAGE>
[Letterhead]
David C. Moja, C.P.A., P.C.
P.O. Box 14212
Savannah, Georgia 31416
(912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of
Willowpeg Village Limited Partnership
We have audited the accompanying balance sheets of Willowpeg Village Limited
Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December
31, 1994, and the related statements of operations, partners' equity (deficit)
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 audits.
We conducted our audits 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 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 Willowpeg Village Limited
Partnership (a Georgia Limited Partnership) as of December 31, 1995 and December
31, 1994, and the results of its operations and its cash flows for the years
then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information listed in the
table of contents is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information, except for
the portion marked "unaudited", on which we express no opinion, has been
subjected to the procedures applied in the audits of the basic financial
statements and, in our opinion, is fairly presented in all material respects in
relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 12, 1996
Savannah, Georgia
<PAGE>
[Letterhead]
David C. Moja, C.P.A., P.C.
P.O. Box 14212
5 Oglethorpe Professional Blvd.
Savannah, Georgia 31416
(912)354-4141
INDEPENDENT AUDITORS' REPORT
To the General Partners of
Willowpeg Village Limited Partnership
We have audited the accompanying balance sheets of Willowpeg Village Limited
Partnership (a Georgia Limited Partnership) as of December 31, 1994 and December
31, 1993, and the related statements of operations, partners' equity (deficit)
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 audits.
We conducted our audits 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 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 Willowpeg Village Limited
Partnership (a Georgia Limited Partnership) as of December 31, 1994 and December
31, 1993, and the results of its operations and its cash flows for the years
then ended in conformity with generally accepted accounting principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information listed in the
table of contents is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information, except for
the portion marked "unaudited", on which we express no opinion, has been
subjected to the procedures applied in the audits of the basic financial
statements and, in our opinion, is fairly presented in all material respects in
relation to the basic financial statements taken as a whole.
/s/ David C. Moja
David C. Moja, C.P.A., P.C.
March 3, 1995
Savannah, Georgia
<PAGE>
[Letterhead]
[Logo] macdonaldpage
Certified Public Accountants
30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701
P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 14, 1996
Bingham Family Housing Associates
(a Limited Partnership)
224 Maine Avenue
Gardiner, Maine
We have audited the accompanying balance sheet of Bingham Family Housing
Associates (a Limited Partnership) as of December 31, 1995, and the related
statements of profit and loss, changes in partners' capital 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.
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 Bingham Family Housing
Associates (a Limited Partnership) as of December 31,
1995, and the results of its operations and its cash flows for the year then
ended in conformity with generally accepted accounting standards.
/s/ Macdonald Page & Co.
Certified Public Accountants
<PAGE>
[Letterhead]
[Logo] macdonaldpage
Certified Public Accountants
30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701
P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 10, 1995
Bingham Family Housing Associates
(a Limited Partnership)
224 Maine Avenue
Gardiner, Maine
We have audited the accompanying statement of assets, liabilities and partners'
capital--income tax basis of Bingham Family Housing Associates (a Limited
Partnership) as of December 31, 1994, and the related statements of revenue and
expenses--income tax basis, changes in partners' capital--income tax basis, and
cash flows--income tax basis 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.
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.
As described in Note 1, these financial statements were prepared on the basis of
accounting the Partnership uses for income tax purposes, which is a
comprehensive basis of accounting other than generally accepted accounting
principles.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets, liabilities and partners' capital of Bingham
Family Housing Associates (a Limited Partnership) as of December 31, 1994, and
its revenue and expenses, changes in partners' capital, and cash flows for the
year then ended on the basis of accounting described in Note 1.
/s/ Macdonald Page & Co.
Certified Public Accountants
<PAGE>
[Letterhead]
[Logo] macdonaldpage
Certified Public Accountants
30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701
P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 18, 1994
Bingham Family Housing Associates
(a Limited Partnership)
224 Maine Avenue
Gardiner, Maine
We have audited the accompanying statement of assets, liabilities and partners'
capital--income tax basis of Bingham Family Housing Associates (a Limited
Partnership) as of December 31, 1993, and the related statements of revenue and
expenses--income tax basis, changes in partners' capital--income tax basis, and
cash flows--income tax basis 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.
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.
As described in Note 1, these financial statements were prepared on the basis of
accounting the Partnership uses for income tax purposes, which is a
comprehensive basis of accounting other than generally accepted accounting
principles.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets, liabilities and partners' capital of Bingham
Family Housing Associates (a Limited Partnership) as of December 31, 1993, and
its revenue and expenses, changes in partners' capital, and cash flows for the
year then ended on the basis of accounting described in Note 1.
/s/ Macdonald, Page & Co.
Certified Public Accountants
<PAGE>
<PAGE>
[Letterhead]
[Logo] macdonaldpage
Certified Public Accountants
30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701
P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 14, 1996
Birmingham Housing Associates
(a Limited Partnership)
224 Maine Avenue
Gardiner, Maine
We have audited the accompanying balance sheet of Birmingham Housing Associates
(a Limited Partnership) as of December 31, 1995, and the related statements of
profit and loss, changes in partners' capital 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.
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 Birmingham Housing Associates (a
Limited Partnership) as of December 31,
1995, and the results of its operations and its cash flows for the year then
ended in conformity with generally accepted accounting standards.
/s/ Macdonald Page & Co.
Certified Public Accountants
<PAGE>
[Letterhead]
[Logo] macdonaldpage
Certified Public Accountants
30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701
P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 10, 1995
Birmingham Housing Associates
(a Limited Partnership)
224 Maine Avenue
Gardiner, Maine
We have audited the accompanying statement of assets, liabilities and partners'
capital--income tax basis of Birmingham Housing Associates (a Limited
Partnership) as of December 31, 1994, and the related statements of revenue and
expenses--income tax basis, changes in partners' capital--income tax basis, and
cash flows--income tax basis 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.
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.
As described in Note 1, these financial statements were prepared on the basis of
accounting the Partnership uses for income tax purposes, which is a
comprehensive basis of accounting other than generally accepted accounting
principles.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets, liabilities and partners' capital of
Birmingham Housing Associates (a Limited Partnership) as of December 31, 1994,
and its revenue and expenses, changes in partners' capital, and cash flows for
the year then ended on the basis of accounting described in Note 1.
/s/ Macdonald Page & Co.
Certified Public Accountants
<PAGE>
[Letterhead]
[Logo] macdonaldpage
Certified Public Accountants
30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701
P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 18, 1994
Birmingham Housing Associates
(a Limited Partnership)
224 Maine Avenue
Gardiner, Maine
We have audited the accompanying statement of assets, liabilities and partners'
capital--income tax basis of Birmingham Housing Associates (a Limited
Partnership) as of December 31, 1993, and the related statements of revenue and
expenses--income tax basis, changes in partners' capital--income tax basis, and
cash flows--income tax basis 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.
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.
As described in Note 1, these financial statements were prepared on the basis of
accounting the Partnership uses for income tax purposes, which is a
comprehensive basis of accounting other than generally accepted accounting
principles.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets, liabilities and partners' capital of
Birmingham Housing Associates (a Limited Partnership) as of December 31, 1993,
and its revenue and expenses, changes in partners' capital, and cash flows for
the year then ended on the basis of accounting described in Note 1.
/s/ Macdonald, Page & Co.
Certified Public Accountants
<PAGE>
[Letterhead]
[Logo] macdonaldpage
Certified Public Accountants
30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701
P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 14, 1996
New Sweden Housing Associates
(a Limited Partnership)
224 Maine Avenue
Gardiner, Maine
We have audited the accompanying balance sheet of New Sweden Housing Associates
(a Limited Partnership) as of December 31, 1995, and the related statements of
profit and loss, changes in partners' capital 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.
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 New Sweden Housing Associates (a
Limited Partnership) as of December 31,
1995, and the results of its operations and its cash flows for the year then
ended in conformity with generally accepted accounting standards.
/s/ Macdonald Page & Co.
Certified Public Accountants
<PAGE>
[Letterhead]
[Logo] macdonaldpage
Certified Public Accountants
30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701
P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 10, 1995
New Sweden Housing Associates
(a Limited Partnership)
224 Maine Avenue
Gardiner, Maine
We have audited the accompanying statement of assets, liabilities and partners'
capital--income tax basis of New Sweden Housing Associates (a Limited
Partnership) as of December 31, 1994, and the related statements of revenue and
expenses--income tax basis, changes in partners' capital--income tax basis, and
cash flows--income tax basis 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.
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.
As described in Note 1, these financial statements were prepared on the basis of
accounting the Partnership uses for income tax purposes, which is a
comprehensive basis of accounting other than generally accepted accounting
principles.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets, liabilities and partners' capital of New
Sweden Housing Associates (a Limited Partnership) as of December 31, 1994, and
its revenue and expenses, changes in partners' capital, and cash flows for the
year then ended on the basis of accounting described in Note 1.
/s/ Macdonald Page & Co.
Certified Public Accountants
<PAGE>
[Letterhead]
[Logo] macdonaldpage
Certified Public Accountants
30 Long Creek Drive South Portland, Maine 04106 (207) 774-5701
P.O. Box 2389 Augusta, Maine 04338 (207) 621-0330
Independent Auditors' Report
February 18, 1994
New Sweden Housing Associates
(a Limited Partnership)
224 Maine Avenue
Gardiner, Maine
We have audited the accompanying statement of assets, liabilities and partners'
capital--income tax basis of New Sweden Housing Associates (a Limited
Partnership) as of December 31, 1993, and the related statements of revenue and
expenses--income tax basis, changes in partners' capital--income tax basis, and
cash flows--income tax basis 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.
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.
As described in Note 1, these financial statements were prepared on the basis of
accounting the Partnership uses for income tax purposes, which is a
comprehensive basis of accounting other than generally accepted accounting
principles.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets, liabilities and partners' capital of New
Sweden Housing Associates (a Limited Partnership) as of December 31, 1993, and
its revenue and expenses, changes in partners' capital, and cash flows for the
year then ended on the basis of accounting described in Note 1.
/s/ Macdonald, Page & Co.
Certified Public Accountants
<PAGE>
[Letterhead]
[LOGO]
Haran & Associates Ltd
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Partners HUD Field Office Director
HAZEL-WINTHROP APARTMENTS Chicago, Illinois
Chicago, Illinois
We have audited the accompanying balance sheets of HAZEL-WINTHROP APARTMENTS,
Project No. 071-35522-PM, as of December 31, 1995 and 1994, and the related
statements of profit and loss, changes in partners' equity, and statement of
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 audits.
We conducted our audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller General of
the United States. These 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 audits provided 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 HAZEL-WINTHROP APARTMENTS, as
of December 31, 1995 and 1994, and its profit and loss, changes in partners'
equity, and its cash flows for the years then ended, in conformity with
generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report
dated January 26, 1996, on our consideration of HAZEL-WINTHROP APARTMENTS
internal control structure and reports dated January 26, 1996, on its complience
with specific requirements applicable to Affirmative Fair Housing, and specific
requirements applicable to Nonmajor HUD programs.
The accompanying supplementary information (shown on pages 15 to 20) is
presented for purposes of additional analysis and is not part of the basic
financial statements. Such information has been subjected to the same auditing
procedures applied in the audit of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
/s/ Haran & Associates Ltd
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate No. 060-002892
Federal Identification No. 36-3097692
Audit Partner: James E. Haran (708) 853-2580
January 26, 1996
<PAGE>
[Letterhead]
Russell Novak & Company
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Partners
Hazel-Winthrop Apartments
Chicago, Illinois
We have audited the accompanying balance sheets of F.H.A. Project No.
071-35522-PM Hazel-Winthrop Apartments (an Illinois Limited Partnership) as of
December 31, 1993 and 1992, and the related statements of income, 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.
We conducted our audits 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 F.H.A. Project No. 071-35522-PM
Hazel-Winthrop Apartments as of December 31, 1993 and 1992, and the results of
its operations, changes in partners' equity, and cash flows for the years then
ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the financial
statements taken as a whole. The supporting data included in the report (shown
on pages 12 through 17) are presented for the purposes of additional analysis
and are not a required part of the financial statements of F.H.A. Project No.
071-35522-PM Hazel-Winthrop Apartments. Such information has been subjected to
the auditing procedures applied in the audit of the financial statements and, in
our opinion, is fairly presented in all material respects in relation to the
financial statements taken as a whole.
/s/ Russell Novak and Company
February 4, 1994
Chicago, Illinois
<PAGE>
BILLIE J. BURNETT, CPA
5 Benton Drive
Nashua, NH 03060
(603) 883-4230
To The Partners
Michael J. Dobens Limited Partnership I
I have audited the accompanying balance sheets of Michael J. Dobens Limited
Partnership I as of December 31, 1995 and 1994, and the related statements of
income, partners' equity and cash flows for the years then ended. The financial
statements are the responsibility of the Partnership's management. My
responsibility is to express an opinion on these financial statements based on
my audit.
I conducted my audit in accordance with generally accepted auditing standards.
Those standards require that I 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.
I believe that my audits, provide a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of Michael J. Dobens Limited
Partnership I as of December 31, 1995 and 1994, and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
/s/ Billie J. Burnett
Billie J. Burnett
February 7, 1996
<PAGE>
BILLIE J. BURNETT, CPA
5 Benton Drive
Nashua, NH 03060
(603) 883-4230
To The Partners
Michael J. Dobens Limited Partnership I
I have audited the accompanying balance sheets of Michael J. Dobens Limited
Partnership I as of December 31, 1994 and 1993, and the related statements of
income, partners' equity and cash flows for the years then ended. The financial
statements are the responsibility of the Partnership's management. My
responsibility is to express an opinion on these financial statements based on
my audit.
I conducted my audit in accordance with generally accepted auditing standards.
Those standards require that I 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.
I believe that my audits, provide a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of Michael J. Dobens Limited
Partnership I as of December 31, 1994 and 1993, and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
/s/ Billie J. Burnett
Billie J. Burnett
February 9, 1995
<PAGE>
[Letterhead]
Marks Shron & Company, LLP
Certified Public Accountants
111 Great Neck Road * Great Neck * New York 11021
(516) 466-6550 * FAX (516) 466-5649
Independent Auditors' Report on Financial Statements
To the Partners of
Logan Plaza Associates
We have audited the accompanying Balance Sheets of Logan Plaza Associates as of
December 31, 1995 and 1994, and the related statements of income, partners'
capital, 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.
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.
As discussed in Note 3 to financial statements, 1995 the Partnership changed its
method of computing depreciation to conform with generally accepted accounting
principals.
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 Office of Inspector General in July 1993, we have also issued
a report dated January 24, 1996, on our consideration of the Partnership's
internal control structure, on its compliance with specific requirements
applicable to major HUD programs, and on its compliance with specific
requirements applicable to Affirmative Fair Housing.
Our audit was made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying information shown on
pages 14 to 23 is presented for purposes of additional analysis and is not a
required part of the basic financial statements of the Partnership. Such
information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and, in our opinion, except for the effects of
the item discussed above, the additional information is fairly stated, in all
material respects, in relation to the basic financial statements taken as a
whole.
/s/ Marks Shron & Company
January 24, 1996
<PAGE>
[Letterhead]
Marks Shron & Company, LLP
Certified Public Accountants
111 Great Neck Road * Great Neck * New York 11021
(516) 466-6550 * FAX (516) 466-5649
Independent Auditors' Report on Financial Statements
To the Partners of
Logan Plaza Associates
We have audited the accompanying Balance Sheet of Logan Plaza Associates, A
Limited Partnership, Project No. 012-36606-PM(42), as of December 31, 1994 and
1993, and the related statements of Profit and Loss (on HUD Form No. 92410),
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.
We conducted our audits 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.
As more fully described in Note 2 to the financial statements, the Partnership's
method of computing depreciation is in accordance with reporting for Federal
income tax purposes which is not in accordance with generally accepted
accounting principles. The information needed to quantify the effects of this
item (these items) on the financial position, results of operations, and cash
flows of the Partnership is not reasonably determinable from the Partnership's
accounts and records and, therefore, has not been presented.
In our opinion, except for the effects of the item(s) discussed in the preceding
paragraph, the financial statements referred to above present fairly, in all
material respects, the financial position of Logan Plaza Associates at December
31, 1994 and 1993 and the results of its operations and its cash flows for the
years then ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supporting data required by HUD, as referred to
in the Table of Contents, is presented for purposes of additional analysis and
to comply with HUD reporting requirements 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 basic financial statements and, in our
opinion, except for the effects of the item(s) discussed above, the additional
information is fairly stated, in all material respects, in relation to the basic
financial statements taken as a whole.
/s/ Marks Shron & Company
January 19, 1995
<PAGE>
[Letterhead]
Michael Sczekan & Co., P.C.
Certified Public Accountants
7936 East Arapahoe Court, Suite 2800
Englewood, Colorado 80112
Telephone (303) 770-3356
Facsimile (303) 770-3357
INDEPENDENT AUDITOR'S REPORT
To the Owner of Chief-Loan Management
Delmar Housing Associates Limited Partnership Continental Wingate Associates
Denver, Colorado Boston, Massachusetts
We have audited the accompanying Balance Sheet of Delmar Housing Associates
Limited Partnership, FHA Project Number 109-94004 REF, as of December 31, 1995,
and the related statements of profit and loss, changes in project equity and
cash flows for the year then ended. These financial statements are the
responsibility of the Project'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 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 Delmar Housing Associates
Limited Partnership, as of December 31, 1995 and the results of its operations
and its cash flows for the years then ended in conformity with generally
accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report
dated February 23, 1996, on our consideration of Delmar Housing Associates
Limited Partnership's internal control structure and a report dated February 23,
1996, on its compliance with laws and regulations.
Our audit was made for the purpose of forming an opinion on the financial
statements taken as a whole. The supporting data included in the report on pages
16 through 23 is presented for the purposes of additional analysis and are not a
required part of the financial statements of Delmar Housing Associates Limited
Partnership. Such information has been subjected to the same auditing procedures
applied in the examination of the basic financial statements and, in our
opinion, are presented fairly in all material respects in relation to the
financial statements taken as a whole.
Respectfully submitted,
/s/ Michael Sczekan & Co.
Michael Sczekan & Co., P.C.
Certified Public Accountants
Englewood, Colorado
February 23, 1996
<PAGE>
[Letterhead]
Michael Sczekan & Co., P.C.
Certified Public Accountants
7936 East Arapahoe Court, Suite 2800
Englewood, Colorado 80112
Telephone (303) 770-3356
Facsimile (303) 770-3357
INDEPENDENT AUDITOR'S REPORT
To the Owner of Chief-Loan Management
Delmar Housing Associates Limited Partnership Continental Wingate Associates
Denver, Colorado Boston, Massachusetts
We have audited the accompanying Balance Sheet of Delmar Housing Associates
Limited Partnership, FHA Project Number 109-94004 REF, as of December 31, 1994,
and the related statements of profit and loss, changes in project equity and
cash flows for the year then ended. These financial statements are the
responsibility of the Project'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, and the Consolidated Audit Guide, issued by the U.S. Department
of Housing and Urban Development, Office of Inspector General in July, 1993.
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 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 Delmar Housing Associates
Limited Partnership, as of December 31, 1994 and the results of its operations
and its cash flows for the years then ended in conformity with generally
accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the financial
statements taken as a whole. The supporting data included in the report on pages
16 through 22 are presented for the purposes of additional analysis and are not
a required part of the financial statements of Delmar Housing Associates Limited
Partnership. Such information has been subjected to the same auditing procedures
applied in the examination of the basic financial statements and, in our
opinion, are presented fairly in all material respects in relation to the
financial statements taken as a whole.
Respectfully submitted,
/s/ Michael Sczekan & Co.
Michael Sczekan & Co., P.C.
Certified Public Accountants
Englewood, Colorado
February 2, 1995
<PAGE>
[Letterhead]
Michael Sczekan & Co., P.C.
Certified Public Accountants
8801 East Hampden Avenue, Suite 200
Denver, Colorado 80231
(303) 751-4656
Fax (303) 745-1156
INDEPENDENT AUDITOR'S REPORT
To the Partners of Chief-Loan Management
Delmar Housing Associates Limited Partnership Continental Wingate Associates
Denver, Colorado Boston, Massachusetts
We have audited the accompanying Balance Sheet of Delmar Housing Associates
Limited Partnership, FHA Project Number 109-94004 REF, as of December 31, 1993,
and the related statements of profit and loss, changes in project equity 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 government auditing
standards, Governmental Auditing Standards issued by the Comptroller General of
the United States, and the Consolidated Audit Guide, issued by the U.S.
Department of Housing and Urban Development, Office of Inspector General in
July, 1993.
In our opinion, the balance sheet referred to above present fairly, in all
material respects, the balance sheet of Delmar Housing Associates Limited
Partnership, as of December 31, 1993, and the results of its operations and its
cash flows for the years then ended in conformity with generally accepted
accounting principles.
Our audit was made for the purpose of forming an opinion on the financial
statements taken as a whole. The supporting data included in the report on pages
16 through 22 are presented for the purposes of additional analysis and are not
a required part of the financial statements of HUD project Number 109-94004 REF.
Such information has been subjected to the same auditing procedures applied in
the examination of the basic financial statements and, in our opinion, are
presented fairly in all material respects in relation to the financial
statements taken as a whole.
Respectfully submitted,
/s/ Michael Sczekan & Co.
Michael Sczekan & Co., P.C.
Certified Public Accountants
Denver, Colorado
February 25, 1994
<PAGE>
[Letterhead]
[Logo] Reznick Fedder & Silverman
Certified Public Accountants * Business Consultants
A Professional Corporation 217 East Redwood Street *
Suite 1900 * Baltimore, MD 21202-3316 *
(410) 727-4340 * Fax (410) 727-0460
INDEPENDENT AUDITORS' REPORT
To the Partners
Heritage Court Limited Partnership
We have audited the accompanying balance sheet of Heritage Court Limited
Partnership as of December 31, 1995, and the related statements of profit and
loss (on HUD Form No. 92410), partners' equity 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 Heritage Court Limited
Partnership as of December 31, 1995, and the results of its operations, changes
in partners' equity and cash flows for the year then ended, in conformity with
generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 20 through 29
is presented for the purposes of additional analysis and is not a required part
of the basic financial statements. Such information, except for that portion
marked "unaudited," on which we express no opinion, has been subjected to the
auditing procedures applied in the audit of the basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued a report
dated January 16, 1996, on our consideration of Heritage Court Limited
Partnership's internal control structure and on its compliance with specific
requirements applicable to CDA programs, affirmative fair housing, and laws and
regulations applicable to the financial statements.
/s/ Reznick Fedder & Silverman
Baltimore, Maryland Federal Employer
January 16, 1996 Identification Number:
52-1088612
Audit Principal: William T. Riley, Jr.
<PAGE>
[Letterhead]
[Logo] Reznick Fedder & Silverman
Certified Public Accountants * Business Consultants
A Professional Corporation 217 East Redwood Street *
Suite 1900 * Baltimore, MD 21202-3316 *
(410) 727-4340 * Fax (410) 727-0460
INDEPENDENT AUDITORS' REPORT
To the Partners
Heritage Court Limited Partnership
We have audited the accompanying balance sheet of Heritage Court Limited
Partnership as of December 31, 1994, and the related statements of profit and
loss (on HUD Form No. 92410), partners' equity 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.
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 Heritage Court Limited
Partnership as of December 31, 1994, and the results of its operations, changes
in partners' equity and cash flows for the year then ended, in conformity with
generally accepted accounting principles.
<PAGE>
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 19 through 27
is presented for the purposes of additional analysis and is not a required part
of the basic financial statements. Such information, except for that portion
marked "unaudited," on which we express no opinion, has been subjected to the
auditing procedures applied in the audit of the basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
/s/ Reznick Fedder & Silverman
Baltimore, Maryland
January 9, 1995
<PAGE>
[Letterhead]
Reznick Fedder & Silverman
Certified Public Accountants * Business Consultants
A Professional Corporation 217 East Redwood Street *
Suite 1900 * Baltimore, MD 21202-3316
(410) 727-4340 * Fax (410) 727-0460
INDEPENDENT AUDITORS' REPORT
To the Partners
Heritage Court Limited Partnership
We have audited the accompanying balance sheet of Heritage Court Limited
Partnership, CDA Project No.: 27.04.002, as of December 31, 1993, and the
related statements of profit and loss (on HUD Form No. 92410), partners' equity
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. 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 Heritage Court Limited
Partnership, CDA Project No.: 27.04.0002, as of December 31, 1993, and the
results of its operations, changes in partners' equity and cash flows for the
year then ended, in conformity with generally accepted accounting principles.
<PAGE>
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 19 through 27
is presented for the purposes of additional analysis and is not a required part
of the basic financial statements. Such information, except for that portion
marked "unaudited," on which we express no opinion, has been subjected to the
audit procedures applied in the audit of the basic financial statements and, in
our opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
/s/ Reznick Fedder & Silverman
Baltimore, Maryland
January 14, 1994
<PAGE>
MUELLER & WALLA, P.C.
Certified Public Accountants
10714 Manchester Road
Suite 202
Kirkwood, Missouri 63122
(314) 822-6575
ACCOUNTANTS' COMPILATION REPORT
The Partners
Perryville Associates I, L.P.
St. Louis, Missouri
We have compiled the accompanying balance sheet of Perryville Associates I, L.P.
(a limited Partnership) as of December 31, 1995, and the related statements of
operations, partners' capital, and cash flows for the year then ended, in
accordance with Statements on Standards for Accounting and Review Services
issued by the American Institute of Certificate Public Accounts.
A compilation is limited to presenting in the form of financial statements
information that is the representation of management. We have not audited or
reviewed the accompanying financial statements and, accordingly, do not express
an opinion or any other form of assurance on them.
The financial statements for the year ended December 31, 1994, were audited by
us, and we expressed an unqualified opinion on them in our report dated February
6, 1995, but we have not performed any auditing procedures since that date.
/s/Mueller & Walla, P.C.
Mueller & Walla, P.C.
Certified Public Accountants
February 9, 1996
<PAGE>
[Letterhead]
MUELLER & WALLA, P.C.
Certified Public Accountants
10714 Manchester Road
Suite 202
Kirkwood, Missouri 63122
(314) 822-6575
INDEPENDENT AUDITORS' REPORT
The Partners
Perryville Associates I, L.P.
St. Louis, Missouri
We have audited the accompanying balance sheet of Perryville Associates I, L.P.
(a limited partnership) as of December 31, 1994, and the related statements of
operations, partners' capital, 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.
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 1994 financial statements referred to above present fairly,
in all material respects, the financial position of Perryville Associates I,
L.P. as of December 31, 1994, and the results of its operations, changes in
partners' capital and cash flows for the year then ended in conformity with
generally accepted accounting principles.
The 1993 financial statements were compiled by us and our report thereon, dated
January 19, 1994, stated that we did not audit or review those financial
statements and, accordingly, expressed no opinion or other form of assurance on
them.
/s/ Mueller & Walla, P.C.
Mueller & Walla, P.C.
Certified Public Accountants
February 6, 1995
<PAGE>
[Letterhead]
MUELLER & WALLA, P.C.
Certified Public Accountants
10714 Manchester Road
Suite 201
Kirkwood, Missouri 63122
(314) 822-6575
ACCOUNTANTS' COMPILATION REPORT
The Partners
Perryvillle Associates I, L.P.
St. Louis, Missouri
We have audited the accompanying balance sheet of Perryville Associates I, L.P.
(a limited partnership) as of December 31, 1993, and the related statements of
operations, partners' capital, and cash flows for the year then ended, in
accordance with Statements on Standards for Accounting and Review Services
issued by the American Institute of Certified Public Accountants.
A compilation is limited to presenting in the form of financial statements
information that is the representation of management. We have not audited or
reviewed the accompanying financial statements and, accordingly, do not express
an opinion or any other form of assurance on them.
The financial statements for the year ended December 31, 1992, were audited by
other accountants, and they expressed an unqualified opinion on them in their
report dated January 21, 1993, but they have not performed any auditing
procedures since that date.
/s/ Mueller & Walla, P.C.
Mueller & Walla, P.C.
Certified Public Accountants
January 19, 1994
<PAGE>
<PAGE>
Annual Report on Form 10-K
For The Year Ended March 31, 1996
Audited Financial Statements of
Local Limited Partnerships
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
REPORT ON FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 1995
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
TABLE OF CONTENTS
PAGE
AUDITOR'S REPORT 2
FINANCIAL STATEMENTS
Balance Sheet 3-4
Statement of Profit and Loss (HUD-92410) 5-6
Statement of Changes in Partners' Equity 7
Statement of Cash Flows 8-10
Notes to Financial Statements 11-15
SUPPORTING DATA 16-20
AUDITOR'S COMMENTS ON COMPLIANCE
Major HUD Program 21
AUDITOR'S COMMENTS ON INTERNAL CONTROL 22-23
AUDITOR'S COMMENTS ON AFFIRMATIVE FAIR HOUSING 24
CERTIFICATE OF GENERAL PARTNERS 25
CERTIFICATE OF MANAGEMENT AGENT 26
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the accompanying balance sheet of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of December 31, 1995, and the related
statements of profit and loss, changes in partners' equity and statement of 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. These standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatements. 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 BOULEVARD COMMONS LIMITED
PARTNERSHIP, as of December 31, 1995, and its profit or loss, changes in
partners' equity, and its cash flows for the year then ended in conformity with
generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report
dated January 19, 1996 on our consideration of BOULEVARD COMMONS LIMITED
PARTNERSHIP's internal control structure and reports dated January 19, 1996 on
its compliance with specific requirements applicable to Major HUD Programs and
specific requirements applicable to Affirmative Fair Housing.
The accompanying supplementary information (shown on pages 16 to 20) 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 basic financial statement and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate No. 060-002892
Federal Certification No. 36-3097692
Audit Partner: James E. Haran (847)853-2580
January 19, 1996
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
BALANCE SHEET
DECEMBER 31, 1995
A S S E T S
<TABLE>
<CAPTION>
<S> <C>
CURRENT ASSETS
1120 Cash in bank $ 129,363
1130 Tenant accounts receivable 17,646
1135 Rent supplement receivable 133,151
1142 Other accounts receivable 200
-----------
Total current assets $ 280,360
-----------
DEPOSITS HELD IN TRUST - FUNDED
1191 Tenant security deposits - held in trust $ 31,280
-----------
PREPAID EXPENSES
1240 Property insurance $ 29,981
1250 Mortgage insurance 26,635
-----------
Total prepaid expenses $ 56,616
-----------
RESTRICTED DEPOSITS AND FUNDED RESERVES
1310 Mortgage escrow deposits $ 114,512
1320 Cash replacement reserve 91,651
-----------
Total restricted deposits and funded reserves $ 206,163
-----------
FIXED ASSETS
1410 Land $ 318,000
1420 Buildings 13,805,309
1440 Building equipment - portable 616,354
1470 Maintenance equipment 2,381
-----------
Total fixed assets $14,742,044
Less accumulated depreciation 3,707,924
Net book value $11,034,120
OTHER ASSETS
1840 Deferred loan fees (net of amortization) $ 210,329
1860 Developer agreement escrow deposit 587,518
-----------
Total other assets $ 797,847
-----------
TOTAL ASSETS $12,406,386
===========
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
BALANCE SHEET (CONTINUED)
DECEMBER 31, 1995
LIABILITIES AND PARTNERS' EQUITY
<TABLE>
<CAPTION>
<S> <C>
CURRENT LIABILITIES
2110 Accounts payable $ 15,408
2116 Accrued property taxes 159,282
2119 Due to management agent 65,750
2130 Accrued mortgage interest 247,729
2140 Accrued management fee 15,827
2320 Mortgage payable - current portion 28,696
-----------
Total current liabilities $ 532,692
-----------
DEPOSITS
2191 Tenant security deposits - held in trust (contra) $ 27,340
-----------
LONG-TERM LIABILITIES
2320 Mortgage payable $ 9,819,096
2330 Junior mortgage payable - City of Chicago 693,500
Total $10,512,596
Less current portion 28,696
----------
Total long-term liabilities $10,483,900
----------
OTHER LIABILITIES
2390 Developer fee payable from escrow (contra) $ 480,000
2391 Due to general partner from escrow 107,518
-----------
Total other liabilities $ 587,518
-----------
Total liabilities $11,631,450
PARTNERS' EQUITY
3130 Partners' equity 774,936
----------
TOTAL LIABILITIES AND PARTNERS' EQUITY $12,406,386
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
Statement of Profit U. S. Department of Housing
and Loss and Urban Development
Office Of Housing
Federal Housing Commissioner OMB Approval No. 2502-0052(Exp 1/31/95)
Public Reporting Burden for this collection of information is estimated to
average 1.0 hours per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and
completing and reviewing the collection of information. Send comments regarding
this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to the Reports Management
Officer, Office of Information, Policies and Systems, U.S. Department of Housing
and Urban Development, Washington, D.C. 20410-3600 and to the Office of
Management and Budget, Paperwork Reduction Project (2502-0052), Washington, D.C.
20503. Do not send this completed form to either of these addresses.
For Month/Period Project No. 071-35592 Project Name BOULEVARD COMMONS LIMITED
Beginning 1/01/95 Ending 12/31/95 PARTNERSHIP
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Part I ...... Description of Account Acct No. Amount*
Rental Income - 5100
Apartments or Member Carrying Charges(Coops) .................. 5120 $ 279,496
Tenant Assistance Payments .................................... 5121 $1,741,254
Furniture and Equipment ....................................... 5130
Stores and Commercial ......................................... 5140
Garage and Parking Spaces ..................................... 5170
Flexible Subsidy Income ....................................... 5180
Miscellaneous RENTAL ASSISTANCE - PRIOR YEAR ................. 5190 $ 32,827
Total Rent Revenue Potential at 100% Occupancy ................ $ 2,053,577
------------
Vacancies - 5200
Apartments .................................................... 5220 (89,611)
------------
Furniture and Equipment ....................................... 5230
------------
Stores and Commercial ......................................... 5240
------------
Garage and Parking Spaces ..................................... 5270
------------
Miscellaneous (specify) ....................................... 5290
Total Vacancies ............................................... ( 89,611)
------------
Net Rental Revenue Rent Revenue Less Vacancies ................ 1,963,966
------------
Elderly and Congregate Services Income - 5300
Total Service Income (Schedule Attached) ...................... 5300 $ -0-
------------
Financial Revenue - 5400
------------
Interest Income - Project Operations .......................... 5410 $ 5,474
------------
Income from Investments-Residual Receipts ..................... 5430 $
------------
Income from Investments-Reserve for Replacement ............... 5440 $ 1,191
----------
Income from Investments-Miscellaneous ............................ 5490 $
----------
Total Financial Revenue ............................................ $ 6,665
----------
Other Revenue - 5900
Laundry and Vending ............................................. 5910 $
----------
NSF and Late Charges ............................................. 5920 $ 5,650
----------
Damages and Cleaning Fees ........................................ 5930 $ 436
----------
Forfeited Tenant Security Deposits ............................... 5940 $ 2,470
----------
Other Revenue (specify) ................................................. 5990 $ 3,667
----------
Total Other Revenue ............................................................... $ 12,223
----------
Total Revenue ..................................................................... $1,982,854
----------
Administrative Expenses - 6200-6300
Advertising ..................................................... 6210 $ 216
----------
Other Administrative Expenses ................................... 6250 $ 1,211
----------
Office Salaries ................................................. 6310 $ 3,036
----------
Office Supplies ................................................. 6311 $ 27,564
----------
Office or Model Apartment Rent .................................. 6312 $
----------
Management ...................................................... 6320 $ 114,110
----------
Manager or Superintendent Salaries ............................... 6330 $ 18,563
----------
Manager or Superintendent Rent Free Unit ................................ 6331 $
----------
Legal Expenses (Project) ................................................ 6340 $ 11,345
----------
Auditing Expenses (Project) ............................................. 6350 $ 4,600
----------
Bookkeeping Fees/Accounting Services .................................... 6351 $ 7,632
----------
Telephone and Answering Service ......................................... 6360 $ 10,679
Bad Debts 6370 $ 3,733
Miscellaneous Administrative Expenses (specify) ........................ 6390 $
Total Administrative Expenses ................................................. $ 202,689
----------
Utility Expense - 6400
Fuel Oil/Coal ......................................................... 6420 $
----------
Electricity ........................................................... 6450 $ 13,636
----------
Water ................................................................. 6451 $ 26,663
----------
Gas ................................................................... 6452 $ 42,374
----------
Sewer ................................................................. 6453 $
----------
Total Utilities Expense ............................................... $ 82,673
----------
</TABLE>
The accompanying notes are an integral part of this statement. Page 1 of 2
*All amounts must be rounded to the nearest dollar; $.50 and form HUD-92410
(7/91)over, round up - $.49 and below, round down. ref Handbook 4370.2
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Operating and Maintenance Expenses - 6500
Janitor and Cleaning Payroll ..................................... 6510 $100,604
------------
Janitor and Cleaning Supplies .................................... 6515 $ 15,722
------------
Janitor and Cleaning Contract .................................... 6517 $
------------
Exterminating Payroll/Contract ................................... 6519 $ 8,870
------------
Exterminating Supplies ........................................... 6520 $
------------
Garbage and Trash Removal ........................................ 6525 $ 19,664
------------
Security Payroll/Contract ........................................ 6530 $ 27,872
------------
Grounds Payroll .................................................. 6535 $
------------
Grounds Supplies ................................................. 6536 $
------------
Grounds Contract ................................................. 6537 $
------------
Repairs Payroll .................................................. 6540 $ 33,944
------------
Repairs Material ................................................. 6541 $ 10,646
------------
Repairs Contract ................................................. 6542 $ 2,797
------------
Elevator Maintenance/Contract .................................... 6545 $
------------
Heating/Cooling Repairs and Maintenance .......................... 6546 $ 3,198
------------
Swimming Pool Maintenance/Contract ............................... 6547 $
------------
Snow Removal ..................................................... 6548 $
------------
Decorating Payroll/Contract ...................................... 6560 $ 13,596
------------
Decorating Supplies .............................................. 6561 $ 130
------------
Other ............................................................ 6570 $
------------
Miscellaneous Operating & Maintenance Expenses ................... 6590 $ 450
------------
Total Operating & Maintenance Expenses ........................... $ 237,493
------------
Taxes and Insurance - 6700
Real Estate Taxes ................................................ 6710 $164,956
------------
Payroll Taxes (FICA) ............................................. 6711 $ 12,465
------------
Miscellaneous Taxes, Licenses and Permits ........................ 6719 $
------------
Property and Liability Insurance(Hazard) ......................... 6720 $ 60,083
------------
Fidelity Bond Insurance .......................................... 6721 $ 791
------------
Workmen's Compensation ........................................... 6722 $ 4,876
------------
Health Insurance and Other Employee Benefits ..................... 6723 $ 4,403
------------
Other Insurance (specify) ........................................ 6729 $
------------
Total Taxes and Insurance ........................................ $ 247,574
------------
Financial Expenses - 6800
Interest on Bonds Payable ......................................... 6810 $
------------
Interest on Mortgage Payable ..................................... 6820 $901,140
------------
Interest on Notes Payable (Long-Term) ............................ 6830 $ 20,805
------------
Interest on Notes Payable (Short-Term) ........................... 6840 $ 3,477
------------
Mortgage Insurance Premium/Service Charge ........................ 6850 $ 48,885
------------
Miscellaneous Financial Expenses ..................AMORITIZATION 6890 $475,739
------------
Total Financial Expenses ......................................... $ 1,450,046
------------
Elderly and Congregate Service Expenses - 6900
Total Service Expenses-Schedule Attached ......................... 6900 $ -0-
------------
Total Cost of Operations Before Depreciation ..................... $ 2,220,475
------------
Profit (Loss) Before Depreciation ................................ $ (237,621)
------------
Depreciation (Total) - 6600 (specify) ............................ 6600 $560,271
------------
Operating Profit or (Loss) ....................................... $(797,892)
------------
Corporate or Mortgagor Entity Expenses - 7100
Officer Salaries ............................................... 7110 $
------------
Legal Expenses (Entity) ....................................... 7120 $
------------
Taxes (Federal-State-Entity) .................................. 7130-32 $
------------
Other Expenses (Entity) ....................................... 7190 $
------------
Total Corporate Expenses ...................................... -0-
------------
Net Profit or (Loss) .......................................... $ (797,892)
-----------
</TABLE>
Warning:HUD will prosecute false claims and statements. Conviction may result
in criminal and/or Civil penalties.(U.S.C. 1001, 1010, 1012; 31 U.S.C.
3729,3802)
Miscellaneous or other income and expenses Sub-account Groups. If
miscellaneous or other income and/or expense sub-accounts
(5190,5290,5490,5990,6390,6590,6729,6890 and 7190) exceed the Account
Groupings by 10% or more, attach a separate schedule describing or
explaining the miscellaneous income or expense.
Part II
1. Total principal payments required under the mortgage, even if payments under
a Workout Agreement are less or more than those required
under the mortgage. $ 22,907
2. Replacement Reserve deposits required by the Regulatory Agreement or
Amendments thereto, even if payments may be temporarily
suspended or waived. $ 47,880
3. Replacement or Painting Reserve releases which are included as expense items
on this Profit and Loss statement. $ NONE
4. Project Improvement Reserve Releases under the Flexible Subsidy Program that
are included as expense items on this Profit and Loss Statement. $ NONE
- --------------------------------------------------------------------------------
The accompanying notes are an integral part of this statement. Page 2 of 2
ref Handbook 4370.2
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
STATEMENT OF CHANGES IN PARTNERS' EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
(Loss)
Equity for the Equity
Profit (Deficit) Year Ended (Deficit)
and Loss January 1, December 31, December 31,
Percentage 1995 Distributions Contributions 1995 1995
---------- ---------- ------------- ------------- ------------ --------
<S> <C> <C> <C> <C> <C> <C>
GENERAL
PARTNERS 1.00 $ ( 28,561) $ - $ - $ ( 7,979) $ ( 36,540)
INVESTOR
LIMITED
PARTNER 99.00 1,601,289 - - (789,913) 811,376
SPECIAL
LIMITED
PARTNER - 100 - - - 100
------ ---------- ---------- ----------- ---------- ----------
TOTALS 100.00 $1,572,828 $ - $ - $ (797,892) $ 774,936
====== ========== ========== =========== ========== ==========
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from:
Rental $ 1,834,209
Interest 6,665
Other 12,223
----------
Total cash receipts $ 1,853,097
----------
Cash payments for:
Administrative $ 66,980
Management fees 98,283
Utilities 82,673
Salaries and wages 122,203
Operating and maintenance 155,440
Real estate taxes 143,674
Payroll taxes 12,465
Property insurance 59,139
Miscellaneous taxes and insurance 10,070
Interest on mortgage note 794,270
Mortgage insurance 41,883
Tenant security and other deposits 2,023
Interest on note 24,282
----------
Total cash payments $ 1,613,385
-----------
Net cash provided by operating activities $ 239,712
-----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of depreciable assets $ (51,886)
Decrease (increase) in:
Reserve for replacement of depreciable assets (49,071)
Reserve for taxes and insurance (9,937)
Payment for deferred loan fees (176,986)
----------
Net cash used in investing activities $ (287,880)
-----------
CASH FLOWS FROM FINANCING ACTIVITIES
Mortgage principal payments $ (22,907)
Advance from management agent 65,750
-----------
Net cash provided by financing activities $ 42,843
-----------
NET (DECREASE) IN CASH $ (5,325)
CASH - BEGINNING OF YEAR 134,688
---------
CASH - END OF YEAR $ 129,363
===========
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
<S> <C>
RECONCILIATION OF NET INCOME (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Net (loss) $(797,892)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation 560,271
Amortization 475,739
Interest 94,542
Mortgage insurance 7,290
Decrease (increase) in:
Rent supplement receivable (116,952)
Tenant accounts receivable (12,805)
Prepaid property insurance 944
Prepaid mortgage insurance (288)
Tenant security deposits - held in trust (980)
Increase (decrease) in:
Accounts payable (18,551)
Accrued mortgage interest 12,328
Accrued property taxes 21,282
Tenant security deposits - held in trust (contra) (1,043)
Accrued management fee 15,827
---------
Net cash provided by operating activities $ 239,712
=========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the year for:
Interest $ 913,094
========
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1995
NONCASH INVESTING AND FINANCING TRANSACTIONS
A bank maintains an escrow account on behalf of the Project for the payment
of development fees and amounts due to a general partner. The transactions in
the accounts for the year were as follows:
<TABLE>
<CAPTION>
Due to General
Developer Agreement Developer Fee Payable Partner from
Escrow Deposit from Escrow Escrow
<S> <C> <C> <C>
Developer fees
paid $ -- $ -- $ --
Gain on investments 56,996 -- 56,996
------- -------- -------
Totals $56,996 $ -- $56,996
======= ======== =======
</TABLE>
The Partnership refinanced its 10% mortgage on April 6, 1995 as follows:
<TABLE>
<CAPTION>
<S> <C>
Cash paid $ 227,487
Mortgage proceeds 9,834,700
Refund of real estate tax escrow 10,828
Refund of insurance escrow 47,258
Refund of mortgage insurance escrow 29,357
Mortgage payoff (9,724,302)
Interest (94,542)
Funding of real estate tax escrow (24,310)
Funding of insurance escrow (64,020)
Funding of mortgage insurance escrow (7,679)
Payment of mortgage insurance premium (49,173)
Payment of deferred mortgage fees (185,604)
---------
$ -
=========
</TABLE>
DISCLOSURE OF ACCOUNTING POLICY
For purposes of the statement of cash flows, the Partnership considers all
highly liquid debt instruments purchased with a maturity of three months or
less to be cash equivalents.
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Partnership was organized as a limited partnership formed June 15, 1987 and
amended July 13, 1988. Its purpose is to acquire an interest in six buildings
located in Chicago, Illinois, and to renovate and operate thereon two
hundred-twelve units of low income housing under Section 221(d)(4) of the
National Housing Act. Such projects are regulated by HUD as to rent charges and
operating methods. The regulatory agreement limits annual distributions of net
operating receipts to "surplus cash" available at the end of each year.
The following significant accounting policies have been followed in the
preparation of the financial statements:
Deferred loan costs consist of fees for obtaining the HUD Insured Mortgage Loan
and are being amortized on the straight-line method over the life of the
original mortgage loan. Refinancing costs are being amortized over the life of
the new loan. Unamortized permanent loan fees applicable to the original
permanent loan were amortized in entirety in the current year. This resulted in
additional amortization expense of $457,529 for the year.
Organization costs associated with the formation of the Partnership were
amortized using the straight-line method over five years.
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 respec- tive
partners on their income tax returns.
Management uses estimates and assumptions in preparing these financial
statements in accordance with generally accepted accounting principles. 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. Actual results could vary from the estimates that were used.
The Partnership maintains cash balances at a bank where accounts are insured by
the F.D.I.C. for up to $100,000. Balances in excess of insured limits totalled
approximately $60,543 at December 31, 1995.
DEVELOPMENT AGREEMENT/ESCROW DEPOSITS
The Partnership has entered into a Development Agreement with Prairie Parc Corp.
(Developer) an affiliate of the General Partners.
For its services in connection with development of the Project and the
supervision of the construction and rehabilitation of the improvements, the
developer shall be entitled to receive the aggregate amount of $2,448,865
payable as follows:
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
DEVELOPMENT AGREEMENT/ESCROW DEPOSITS (Cont'd)
<TABLE>
<CAPTION>
To Be Deposited
Total In Escrow
<S> <C> <C>
Completion date of -
5417 West Washington Boulevard $ 534,546 $ 377,932
5500 West Washington Boulevard 342,893 240,684
5521 West Washington Boulevard 685,786 481,368
5716 West Washington Boulevard 220,360 154,654
5912 West Washington Boulevard 220,360 154,654
3635 West Cermak Road 444,920 309,508
---------- ----------
Total $2,448,865 $1,718,800
========== ==========
Payments received or deposited through 1994 $2,448,865 $1,718,800
========== ==========
</TABLE>
Of the $2,448,865 received by the developer, $1,718,800 was deposited by the
developer into escrow.
The scheduled source and (use) of funds to be deposited into escrow with
American National Bank is as follows:
Deposit required by developer $1,718,800
Payment to developer at the later of final closing or
determination of the annual low income housing credit (659,400)
Payment to developer at the later of breakeven date or
95% occupancy date (259,400)
Operating reserve (800,000)
Final closing and the determination of the low income housing credit have both
been achieved, thus $659,400 was disbursed to the developer during 1990.
The break-even date and 95% occupancy were achieved, thus $259,400 was disbursed
to the developer during 1991.
The operating reserve, if not required to fund a net deficit, will be maintained
on the following schedule:
Required
Year End Reserve
-------- ---------
December 31, 1990 $ 800,000
December 31, 1991 640,000
December 31, 1992 480,000
December 31, 1993 320,000
December 31, 1994 160,000
December 31, 1995 -
During 1994 $160,000 was disbursed to the developer from the operating reserve.
Consequently, $480,000 of additional reserve releases are available to the
developer as of December 31, 1995.
All interest after escrow fees are to be given to the developer.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
MORTGAGE NOTES PAYABLE
The 10% mortgage was refinanced on April 6, 1995. The new 8.875% mortgage
payable is insured by HUD. The apartment project is pledged as collateral for
the note. Principal and interest payments of $74,916 commenced June 1, 1995 and
continue to May 1, 2035.
As part of the refinancing the remaining balance of the original permanent
mortgage placement fees were amortized in entirety in the year ended December
31, 1995. This resulted in an additional amortization expense of $457,529.
Under agreements with the mortgage lender and HUD, 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
and operating expenditures.
At December 31, 1995, the following amounts were held in escrow:
Property tax escrow $ 47,005
Property insurance escrow 39,443
Mortgage insurance escrow 28,063
Cash replacement reserve 91,651
--------
Total $206,163
========
The annual principal reduction for each of the next five years is as follows:
1996 $ 28,896
1997 31,349
1998 34,248
1999 37,414
2000 40,873
The liability of the Partnership under the mortgage note is limited to the
under-lying value of the real estate collateral.
The junior mortgage payable to the City of Chicago bears interest at 3% per
annum and matures at the later of July 1, 2030 or retirement of the FHA insured
mortgage. Interest and principal are due in a lump sum upon maturity.
MANAGEMENT AND RENTAL
The Partnership has entered into a management agreement with Prairie Management
Corporation for the year ending December 31, 1995. The management fee is equal
to 5.7% of gross monthly collections.
A contract with the Department of Housing and Urban Development for Housing
Assistance Payments is currently in effect. Under terms of the contracts, a rent
subsidy is to be paid under Section 8 of the National Housing Act. Also under
the terms of the contracts, the annual rent charged to the tenants is limited to
30% of annual income.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
MANAGEMENT AGENT ADVANCES
In connection with the refinancing of the first mortgage, Prairie Management
Corporation advanced an initial loan of $319,364 which bears interest at 8.5%.
The principal balance has been paid down to $62,250 at December 31, 1995.
SUPERVISORY MANAGEMENT FEE
Prairie Parc Corp., an affiliate of the General Partners, is the Supervisory
Management Agent. It shall be entitled to a non-cumulative Supervisory
Management Fee equal to the lessor of 4% of the gross revenue or 75% of any cash
flow after the priority distribution of $21,200 is paid to the Investor Limited
Partner. Both the Supervisory Management Fee and the priority distribution are
payable only out of surplus cash as defined by the Regulatory Agreement. In no
event shall the management fee and supervisory management fee exceed 11% of
gross revenues of the project in any fiscal year.
PARTNERSHIP REPORTING FEE
The Investor Limited Partner shall receive an annual $5,000 fee to reimburse it
for its cost of providing reports. The fee is payable only out of surplus cash,
capital contributions or project expense loans.
PRIORITY DISTRIBUTION
The priority distribution was amended effective with the refinancing under which
the Investor Limited Partner is to receive 99% of the surplus cash until it has
received an annual amount equal to $21,200.
CASH FLOW (DEFICIT)
The following is a summary of cash flow at December 31, 1995 as defined by the
Limited Partnership Agreement:
Net (loss) $(797,892)
-------
Additions:
Depreciation $ 560,271
Amortization 475,739
Interest 94,542
Mortgage insurance 7,290
Increase in accrued property taxes 21,282
Increase in prepaid insurance 944
Increase in accrued interest payable 12,328
Increase in accrued management fee 15,827
---------
Total additions $1,188,223
---------
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
CASH FLOW (DEFICIT) (Cont'd)
<S> <C>
Subtractions:
Payment for deferred loan fees $(176,986)
Mortgage principal payments ( 22,907)
Payments to reserve accounts, net ( 59,008)
Increase in mortgage insurance ( 288)
Increase in tenant security
deposits - held in trust ( 980)
Payments for depreciable and
other assets ( 51,886)
Decrease in tenant security deposits -
held in trust (contra) ( 1,043)
Decrease in accounts payable ( 18,551)
Due to management agent ( 65,750)
---------
Total subtractions $(397,399)
Project cash flow $( 7,068)
=========
</TABLE>
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPORTING DATA REQUIRED BY HUD
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
DELINQUENT TENANT ACCOUNTS RECEIVABLE Number of Amount
Tenants Past Due
<S> <C> <C>
Delinquent 30 days or less 28 $ 7,212
Delinquent 31-60 days 5 5,822
Delinquent 61-90 days 8 2,659
Delinquent over 90 days 6 1,953
-- -----------
Total 47 $ 17,646
== ===========
MORTGAGE ESCROW DEPOSITS
Estimated amount required as of December 31, 1995 for future payment of:
Property tax $ 48,427
Property insurance 30,821
Mortgage insurance 26,635
Total $ 105,883
Total confirmed by mortgagee 114,512
Amount on deposit in excess of estimated requirements $ 8,629
===========
TENANT SECURITY DEPOSITS
Tenant security deposits are held in a separate bank account in the name of
the Project.
CASH REPLACEMENT RESERVE
In accordance with the provisions of the regulatory agreement, restricted
cash is to be held by Heitman Financial Services, Inc. to be used for
replacement of property with the approval of HUD:
Balance, January 1, 1995 $ 42,580
Deposits 49,071
Withdrawals -
----------
Balance, December 31, 1995, confirmed by mortgagee $ 91,651
===========
ACCOUNTS PAYABLE
Due within 30 days $ 15,408
Due within 31-60 days -
Due in more than 60 days -
---------
Total $ 15,408
===========
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPORTING DATA REQUIRED BY HUD
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
ACCRUED TAXES
<S> <C> <C> <C> <C>
Period Date Amount
Description of Tax Basis for Accrual Covered Due Accrued
Property tax Prior year tax 1995 1996 $ 159,282
Cook County Collector ===========
Parcel No. 16-08-415-016-0000
Parcel No. 16-09-318-001-0000
Parcel No. 16-09-314-032-0000
Parcel No. 16-08-413-016-0000
Parcel No. 16-09-320-001-0000
Parcel No. 16-26-106-005-0000
</TABLE>
COMPENSATION OF PARTNERS
During the calendar year 1995, the partners of Boulevard Commons Limited
Partnership did not receive any compensation from rental activities.
SCHEDULE OF UNAUTHORIZED DISTRIBUTIONS
None
DISTRIBUTIONS PAID TO PARTNERS
Distributions to partners $ NONE
===========
ACCOUNTS AND NOTES RECEIVABLE - OTHER
None
ACCOUNTS AND NOTES PAYABLE - OTHER
None
<TABLE>
<CAPTION>
IDENTITY OF INTEREST COMPANIES
Company Name Type of Service Amount Received
<S> <C> <C>
Prairie Management Corporation Management $ 114,186
===========
Prairie Management Corporation Bookkeeping $ 6,996
===========
</TABLE>
The General Partners of BOULEVARD COMMONS LIMITED PARTNERSHIP have no
identity of interest with any suppliers of the Project with the exception
that the Partnership entered into a management agreement with Prairie
Management Corporation, an affiliate of a general partner, for management
of the Project.
CHANGES IN OWNERSHIP INTEREST
None
The accompanying notes are an integral part of this statement.
<PAGE>
U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
HOUSING-FEDERAL HOUSING COMMISSIONER
OFFICE OF MULTIFAMILY HOUSING MANAGEMENT AND OCCUPANCY
COMPUTATION OF SURPLUS CASH, DISTRIBUTIONS AND
RESIDUAL RECEIPTS
PROJECT NAME: BOULEVARD COMMONS FISCAL PERIOD ENDED: PROJECT NUMBER: 071-35592
LIMITED PARTNERSHIP 12/ 31 / 95
PART A - COMPUTE SURPLUS CASH
<TABLE>
<CAPTION>
<S> <C> <C>
1. Cash (accounts 1110, 1120, 1191, 1192) $ 160,643
------------------------------------------------------------------------------
C 2. Tenant subsidy vouchers due for period
A by financial statement $ 133,151
------------------------------------------------------------------------------
S 3. Other (describe)
H $
(a) Total Cash (Add Line 1,2 and 3) $ 293,794
--------------------------------------------------------------------------------------------
C 4. Accrued mortgage interest payable $ 247,729
------------------------------------------------------------------------------
U
R 5. Delinquent mortgage principal payments $
R
E 6. Delinquent deposits to reserve for replacements $
----------------------------------------------------------------------
N
T 7. Accounts payable (due within 30 days) $ 15,408
------------------------------------------------------------------------------
8. Loans and notes payable--
O (due within 30 days) $
----------------------------------------------------------------------
B
L 9. Deficient Tax Insurance or MIP Escrow Deposits $
----------------------------------------------------------------------
I
G 10. Accrued expenses(not escrowed) $ 15,827
-------------------------------------------------------------------------------
A
T 11. Prepaid Rents (Account 2210) $
-----------------------------------------------------------------------
I
O 12. Tenant security deposits liability (Account 2191) $ 27,340
-------------------------------------------------------------------------------
N
S 13. Other (Describe) ADVANCES FROM MANAGEMENT AGENT $ 65,750
-------------------------------------------------------------------------------
(b) Less Total Current Obligations(Add Lines 4 through 13) $ 372,054
-----------------------------------------------------------------------------------------
(c) Surplus Cash (Deficiency)(Line (a) minus Line (b)) $( 78,260)
------------------------------------------------------------------------------------------
PART B - COMPUTE DISTRIBUTIONS TO OWNERS AND REQUIRED DEPOSIT TO RESIDUAL RECEIPTS
1. Surplus Cash $ NONE
2a. Annual Distribution Earned During Fiscal Period
Covered by the Statement $
2b. Distribution Accrued and Unpaid as of the
End of the Prior Period $
2c. Distributions paid During Fiscal Period Covered by Statement $
3. Amount to be Carried on Balance Sheet as Distribution
Earned but Unpaid (Line 2a plus 2b minus 2c) $
-------------------------------------------------------------------------
4. Amount Available for Distribution During Next Fiscal Period
$ NONE
5. Deposit Due Residual Receipts
(Must be deposited with Mortgagee within 60 days after Fiscal Period ends) $
-----------------------------------------------------------------------------------
PREPARED BY REVIEWED BY
LOAN TECHNICIAN LOAN OFFICER
DATE DATE
</TABLE>
The accompanying notes are an integral part of this statement. HUD-93486 12-80
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPORTING DATA REQUIRED BY HUD (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1995
CHANGES IN FIXED ASSETS
<TABLE>
<CAPTION>
A s s e t s Accumulated Depreciation Net
Balance, Balance, Balance, Balance, Book Value
January 1, December 31, January 1, Current December 31, December 31,
1995 Additions Deductions 1995 1995 Provisions Deductions 1995 1995
----------- ---------- ----------- ----------- ----------- ---------- ---------- ------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Land $ 318,000 $ -- $ -- $ 318,000 $ -- $ -- $ -- $ -- $ 318,000
Buildings 13,753,423 * 51,886 -- 13,805,309 2,634,566 500,774 -- 3,135,340 10,669,969
Building
equipment -
portable 616,354 -- -- 616,354 510,706 59,497 -- 570,203 46,151
Maintenance
equipment 2,381 -- -- 2,381 2,381 -- -- 2,381 --
--------- --------- ----------- ----------- ----------- ----------- ----------- ----------- ---------
TOTALS $14,690,158 $ 51,886 $ -- $14,742,044 $ 3,147,653 $ 560,271 $ -- $3,707,924 $11,034,120
========= ========= =========== =========== =========== =========== =========== =========== ==========
</TABLE>
* Roof Repairs
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPORTING DATA REQUIRED BY HUD
FOR THE YEAR ENDED DECEMBER 31, 1995
SCHEDULE OF FUNDS IN FINANCIAL INSTITUTIONS
AS OF DECEMBER 31, 1995:
A. Funds Held by Mortgagor, Regular Operating Account:
1. American National Bank (Checking) * $ 128,733
2. American National Bank (Savings, 3.15%) * 530
-----------
Operating Account $ 129,263
B. Funds Held by Mortgagor in Trust, Tenant Security Deposit:
1. American National Bank (Savings, 3.15%) 31,280
-----------
Total Funds Held by Mortgagor $ 160,543
-----------
C. Fund Held by Mortgagee:
1. Mortgage Escrow + $ 114,512
2. Replacement Reserve + 91,651
-----------
Total Funds Held by Mortgagee $ 206,163
-----------
TOTAL FUNDS IN FINANCIAL INSTITUTIONS $ 366,706
===========
* Balances confirmed by American National Bank and Trust Company of Chicago +
Balances confirmed by Heitman Financial Services, Inc.
The accompanying notes are an integral part of this statement.
<PAGE>
[LETTERHEAD]
[LOGO]
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPLEMENTARY DATA
COMPLIANCE WITH SPECIFIC REQUIREMENTS
APPLICABLE TO MAJOR HUD PROGRAMS
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the financial statements of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of and for the year ended December 31,
1995 and have issued our report thereon dated January 19, 1996.
We have also audited BOULEVARD COMMONS LIMITED PARTNERSHIP's compliance with the
specific program requirements governing federal financial reporting, mortgage
status, replacement reserve, security deposits, cash receipts and disbursements,
distributions to owners, tenant applications, eligibility, and recertification,
and management functions that are applicable to its major HUD-assisted programs
for the year ended December 31, 1995. The management of BOULEVARD COMMONS
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 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 Inspector General in July 1993. 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 BOULEVARD COMMONS
LIMITED PARTNERSHIP's compliance with those requirements. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, BOULEVARD COMMONS LIMITED PARTNERSHIP complied, in all material
respects with the requirements described above that are applicable to its major
HUD assisted programs, for the year ended December 31, 1995.
This report is intended for the information of the audit committee, management,
and the Department of Housing and Urban Development. However, this report is a
matter of public record and its distribution is not limited.
/s/ Haran & Assocoates LTD
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate No. 060-002892
Federal Certification No. 36-3097692
Audit Partner: James E. Haran (847)853-2580
January 19, 1996
<PAGE>
[LETTERHEAD]
[LOGO]
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPLEMENTARY DATA
INTERNAL CONTROL
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the financial statements of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of and for the year ended December 31,
1995 and have issued our report thereon dated January 19, 1996. We have also
audited BOULEVARD COMMONS LIMITED PARTNERSHIP's compliance with requirements
applicable to the major HUD-assisted programs and have issued our report thereon
dated January 19, 1996.
We conducted our audits in accordance with generally accepted auditing standards
and 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 he U.S. Department of Housing and Urban Development, Office
of the Inspector General in July 1993. Those standards and the Guide require
that we plan and perform the audit to obtain reasonable assurance about whether
BOULEVARD COMMONS LIMITED PARTNERSHIP complied with laws and regulations,
noncompliance with which would be material to a major HUD-assisted programs.
The management of BOULEVARD COMMONS LIMITED PARTNERSHIP is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. The objectives of an internal control structure are to provide
management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's 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 structure, errors,
irregularities or instances of noncompliance may nevertheless occur and not be
detected. Also, projection of any evaluation of the structure 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 policies
and procedures may deteriorate.
In planning and performing our audits, we obtained an understanding of the
design of relevant internal control structure policies and procedures 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 BOULEVARD COMMONS LIMITED
PARTNERSHIP and on its compliance with specific requirements applicable to its
major HUD-assisted programs and to report on the internal control structure in
accordance with the provisions of the Guide and not to provide any assurance on
the internal control structure.
<PAGE>
[LETTERHEAD]
[LOGO]
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPLEMENTARY DATA
INTERNAL CONTROL (CONTINUED)
We performed tests of controls, as required by the Guide, to evaluate the
effectiveness of the design and operation of the internal control structure
policies and procedures that we considered relevant to preventing or detecting
material noncompliance with specific requirements applicable to BOULEVARD
COMMONS LIMITED PARTNERSHIP's major HUD-assisted programs. Our procedures were
less in scope than would be necessary to render an opinion on internal control
structure policies and procedures. Accordingly, we do not express such an
opinion.
Our consideration of the internal control structure policies and procedures used
in administering major HUD-assisted programs would not necessarily disclose all
matters in the internal control structure that might constitute 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 structure elements does not
reduce to a relatively low level the risk that noncompliance with laws and
regulations that would be material to a major HUD-assisted program may occur and
not be detected within a timely period by employees in the normal course of
internal control structure and its operations that we consider to be material
weaknesses as defined above.
This report is intended for the information of the audit committee, management,
and the Department of Housing and Urban Development. However, this report is a
matter of public record and its distribution is not limited.
/s/Haran & Associates LTD
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate NO. 060-002892
Federal Certification No. 36-3097692
Audit Partner: James E. Haran (847)853-2580
January 19, 1996
<PAGE>
[LETTERHEAD]
[LOGO]
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPLEMENTARY DATA
AFFIRMATIVE FAIR HOUSING
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the financial statements of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of and for the year ended December 31,
1995, and have issued our report thereon dated January 19, 1996.
We have applied procedures to test BOULEVARD COMMONS LIMITED PARTNERSHIP's
compliance with the Affirmative Fair Housing requirements applicable to its
HUD-assisted programs, for the year ended December 31, 1995.
Our procedures were limited to the applicable compliance requirement described
in the Consolidated Audit Guide for Audits of HUD programs issued by the U.S.
Department of Housing and Urban Development, Office of Inspector general in July
1993. Our procedures were substantially less in scope than an audit, the
objective of which would be the expression of an opinion on BOULEVARD COMMONS
LIMITED PARTNERSHIP's compliance with the Affirmative Fair Housing requirements.
Accordingly, we do not express such an opinion.
The results of the test disclosed no instances of noncompliance that are
required to be reported herein under the Guide.
This report is intended for the information of the audit committee, management,
and the Department of Housing and Urban Development. However, this report is a
matter of public record and its distribution is not limited.
/s/ Haran & Associates LTD
HARAN & ASSOCIATES LTD
Certified Public Accountants
Illinois Certificate No. 060-002892
Federal Certification No. 36-3097692
Audit partner: James E. Haran (847)853-2580
January 19, 1996
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
EMPLOYER IDENTIFICATION NUMBER 36-3539155
CERTIFICATE OF GENERAL PARTNERS
We hereby certify that we have examined the accompanying
financial statements and supporting data for BOULEVARD
COMMONS LIMITED PARTNERSHIP and, to the best of our
knowledge and belief, the same is complete and accurate.
BOULEVARD COMMONS LIMITED PARTNERSHIP
By__________________________________________
Robert C. King
Title General Partner
Date January 19, 1996
By__________________________________________
Title General Partner
Date January 19, 1996
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
CERTIFICATE OF MANAGEMENT AGENT
I hereby certify that I have examined the accompanying
financial statements and supporting data for BOULEVARD
COMMONS LIMITED PARTNERSHIP and, to the best of my
knowledge and belief, the same is complete and accurate.
PRAIRIE MANAGEMENT CORPORATION
MANAGEMENT AGENT
By__________________________________________
Robert C. King
Title President
Date January 19, 1996
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 678,567
<SECURITIES> 1,998,381
<RECEIVABLES> 67,483
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 4,067
<PP&E> 1,135,368
<DEPRECIATION> 000
<TOTAL-ASSETS> 10,458,754<F1>
<CURRENT-LIABILITIES> 300,767
<BONDS> 1,092,025
000
000
<COMMON> 000
<OTHER-SE> 9,006,743
<TOTAL-LIABILITY-AND-EQUITY> 10,458,754<F2>
<SALES> 000
<TOTAL-REVENUES> 191,229<F3>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> (208,204)<F4>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 19,685
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (2,278,003)<F5>
<EPS-PRIMARY> $(45.10)
<EPS-DILUTED> 000
<FN>
<F1>Included in total assets is $6,447,339 of Investments in Local Limited
Partnerships, $5,816 of replacement reserve escrow, $70,140 in bond trusts, and
$51,593 of deferred charges.
<F2>This amount includes $59,218 of minority interest in the Local Limited
Partnership.
<F3>This amount includes $130,960 of investment revenue, $22,721 of rental
revenue, and $37,548 of other revenue.
<F4>This amount includes an adjustment to the provision for valuation of
investments in Local Limited Partnerships of $(510,048), $106,515 of
amortization, $173,259 of general and administrative expenses, $13,575 of
depreciation, and $8,495 of rental operations.
<F5>This amount reflects Equity in losses of Local Limited Partnerships of
$2,657,886, and $135 of minority interest.
</FN>
</TABLE>
