June 27, 1997
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, 1997
File Number 0-16796
Dear Sir / Madam:
Pursuant to the requirements of section 15(d) of the Securities Exchange Act of
1934, there is filed herewith one copy of subject report.
Very truly yours,
/s/ Veronica Curioso
Veronica Curioso
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, 1997 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, 1997
<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:
"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, 1997
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
Logan Plaza in which the Partnership has a 98% 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.
Since the Partnership invests as a limited partner, the Partnership has no
contracted obligation to provide additional funds to Local Limited Partnerships
beyond its specified investment. Thus, at March 31, 1997, the Partnership had no
contractual or other obligation to any Local Limited Partnership which had not
been paid or provided for.
In the event a Local Limited Partnership encounters operating difficulties
requiring additional funds, the Partnership's management might deem it in its
best interest to voluntarily provide such funds in order to protect its
investment. During the year ended March 31, 1997, the Partnership advanced
approximately $375,000 to four Local Limited Partnerships to fund operating
deficits and other various property issues.
The Partnership's primary source of working capital is investment income earned
on the Reserves. Additionally, the Partnership expects to receive distributions
from cash flow from operations of its Local Limited Partnership interests. It is
expected that these sources of funds will provide adequate working capital to
the Partnership.
With the exception of the Combined Entity, 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, 1997, 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 29.74%, have Phillip Abrams Ventures, Inc.
and PDW, Inc. as Local General Partners; (ii) Graver Inn, Barrington Manor, 600
Dakota and Duluth Limited Partnerships, representing 3.31%, have Jerry L. Meide
and RRABB, Inc. as Local General Partners; (iii) New Medford and Oregon Landmark
Limited Partnerships, representing 6.65%, have WHP Holdings, Inc. as the Local
General Partners; (iv) Trenton, Delmar and Lakeview Heights Limited
Partnerships, representing 2.59%, 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 the Local
General Partner; and (vii) Willowpeg Village, Pine Village, Glennville, Talbot
Village and Chestnut Lane Limited Partnerships, representing 2.73% have Norsouth
Corporation as the General Partner. 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 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 program and 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 Logan Plaza, where the Partnership's ownership interest is 98%.
Each of the Local Limited Partnerships has received an allocation of Tax Credits
from 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; or iii) 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>
<S> <C> <C> <C> <C> <C> <C>
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, 1997 March 31, 1997 Dec 31, 1996 Subsidy* 1997
- ----------------------------- ------------- -------------------- ---------------- ------------------ --------- -------
Barrington Manor
Limited Partnership
Barrington Manor
Fargo, ND 18 $ 175,200 $ 175,200 $ 635,000 Section 8 78%
Bingham Family Housing
Associates (A Limited
Partnership)
Bingham
Bingham, ME 24 240,900 240,900 1,166,209 FmHA 96%
Birmingham Housing Associates
(A Limited Partnership)
Birmingham Village
Randolph, ME 24 236,520 236,520 1,160,427 FmHA 100%
MB Bittersweet Associates Limited
Partnership (a Massachusetts
Limited Partnership)
Bittersweet
Randolph, MA 35 620,500 620,500 2,468,567 None 100%
Boulevard Commons
Limited Partnership
Boulevard Commons
Chicago, IL 212 4,527,850 4,527,850 10,483,899 Section 8 96%
Michael J. Dobens
Limited Partnership I
Brentwood Manor II
Nashua, NH 22 300,000 300,000 777,435 Section 8 100%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Capital Contributions
Local Limited Partnership Total Paid Mtge. Loans Occupancy at
Propert Number of Committed at Through Payable at Type of March 31,
Property Location Apt.Units March 31, 1997 March 31, 1997 Dec 31, 1996 Subsidy* 1997
- ----------------------------- ------------ -------------------- ----------------- --------------- ---------- ----------
Cass House Associates Limited
Partnership (a Massachusetts
Limited Partnership)
Cass House/Roxbury Hills
Boston, MA 111 2,141,090 2,141,090 8,103,267 None 97%
Chestnut Lane Limited
Partnership (A Limited
Partnership)
Chestnut Lane
Newnan, GA 50 282,510 282,510 1,474,913 None 96%
Coronado Courts Limited
Partnership
Coronado Courts
Douglas, AZ 145 1,800,000 1,800,000 3,763,016 Section 8 100%
Glennville Properties
(A Limited Partnership)
Country Estates
Glennville, GA 24 121,910 121,910 596,239 FmHA 100%
600 Dakota Properties
Limited Partnership
600 Dakota
Wahpeton, ND 28 113,000 113,000 660,000 Section 8 89%
Delmar Housing Associates
Limited Partnership
Delmar
Gillette, WY 16 128,000 128,000 420,216 Section 8 94%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
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, 1997 March 31, 1997 Dec 31, 1996 Subsidy* 1997
- ---------------------------- ----------- -------------------- ------------------ -------------- --------- -----------
Duluth Limited Partnership
Duluth
Sioux Falls, SD 11 107,000 107,000 259,509 Section 8 100%
Oregon Landmark-Three
Limited Partnership
Elmore Hotel
Great Falls, MT 60 1,022,000 1,022,000 3,336,093 Section 8 90%
Graver Inn
Limited Partnership
Graver Inn
Fargo, ND 70 819,500 819,500 2,025,486 Section 8 81%
Hazel-Winthrop Apartments (An
Illinois Limited Partnership)
Hazel-Winthrop
Chicago, IL 30 350,400 350,400 2,124,303 Section 8 100%
Heritage Court
Limited Partnership
Park Terrace
Dundalk, MD 101 2,048,750 2,048,750 3,558,155 None 97%
Hughes Apartments
Limited Partnership
Hughes
Mandan, ND 47 379,453 379,453 1,210,000 Section 8 98%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
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, 1997 March 31, 1997 Dec 31, 1996 Subsidy* 1997
- --------------------------- ------------ -------------------- ----------------- -------------- ---------- -----------
Lakeview Heights Apartments,
Ltd. (A Limited Partnership)
Lakeview Heights
Clearfield, UT 83 584,000 584,000 2,820,290 Section 8 98%
Logan Plaza Associates
Logan Plaza
New York NY 130 2,240,000 2,240,000 11,169,407 None 98%
New Medford Hotel Associates
Limited Partnership
New Medford Hotel
Medford, OR 76 1,417,765 1,417,765 3,226,176 Section 8 99%
New Sweden Housing Associates
(A Limited Partnership)
Heritage View
New Sweden, ME 24 237,250 237,250 1,165,406 FmHA 78%
2225 New York Avenue, Ltd.
(A Limited Partnership)
Pebble Creek
Arlington, TX 352 2,512,941 2,512,941 7,945,275 Section 8 99%
Perryville Associates I, L.P.
(A Limited Partnership)
Hillcrest III
Perryville, MO 24 128,115 128,115 592,380 FmHA 95%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
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, 1997 March 31, 1997 Dec 31, 1996 Subsidy* 1997
- ----------------------------- ------------ -------------------- ------------------- ------------ ---------- ------------
Pine Village Limited Partnership
(A Limited Partnership)
Pine Village
Pine Mountain, GA 36 188,340 188,340 940,806 FmHA 94%
Rolling Green Housing Associates,
Ltd. (a Limited Partnership)
Rolling Green
Edmond, OK 166 1,855,650 1,855,650 4,817,714 Section 8 92%
Sierra Vista Housing Associates,
Ltd. (a Limited Partnership)
Sierra Pointe
Las Vegas, NV 160 3,016,008 3,016,008 7,187,317 Section 8 91%
Sundance Housing Associates,
Ltd. (A Limited Partnership)
Sierra Vista
Aurora, CO 209 2,271,751 2,271,751 6,326,760 Section 8 96%
Talbot Village Limited Partnership
(A Limited Partnership)
Talbot Village
Talbotton, GA 24 121,180 121,180 602,587 FmHA 100%
Terrace Housing Associates,
Ltd. (a Limited Partnership)
Terrace
Oklahoma City, OK 206 1,950,550 1,950,550 5,275,565 Section 8 87%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
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, 1997 March 31, 1997 Dec 31, 1996 Subsidy* 1997
- ---------------------------- ------------- -------------------- --------------- -------------- ----------- -------------
Trenton Apartments, Ltd.
(A Limited Partnership)
Trenton
Salt Lake City, UT 37 237,250 237,250 843,537 Section 8 97%
Verdean Gardens Associates Limited
Partnership (a Massachusetts
limited partnership)
Verdean Gardens
New Bedford, MA 110 2,409,000 2,409,000 7,806,357 None 88%
Willowpeg Village Limited Partnership
(A Limited Partnership)
Willowpeg Village
Rincon, GA 57 288,400 288,400 1,480,195 FmHA 100%
Windsor Court Housing Associates,
Ltd. (a Limited Partnership)
Windsor Court
Aurora, CO 143 1,815,500 1,815,500 4,520,523 Section 8 96%
------ ---------- ---------- -----------
2,865 36,688,283 36,688,283 110,943,029
Less: Hughes Apartments 379,453 379,453 1,210,000
---------- ---------- ------------
$ 36,308,830 $ 36,308,830 $109,733,029
</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 was initially 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, there
is a junior mortgage payable to the City of Chicago which bears interest at 3%
per annum and matures at the later of July 1, 2030 or the retirement of the FHA
insured mortgage. Principal and interest are due in a lump sum upon maturity.
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, 1997, there were 3,323 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, 1997, 1996 and 1995.
<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>
<S> <C> <C> <C> <C> <C>
March 31, March 31, March 31, March 31, March 31,
1997 1996 1995 1994 1993
Revenue (C) $ 435,791 $ 191,229 $ 77,348 $ 204,552 $ 176,681
Equity in losses of Local Limited
Partnerships (C) (2,041,502) (2,657,886) (2,732,227) (3,076,265) (4,468,387)
Net loss (2,048,112) (2,278,003) (3,142,627) (3,048,198) (4,532,734)
Per Limited Partnership Unit (40.55) (45.10) (62.22) (60.35) (89.75)
Cash, cash equivalents and
marketable securities (C) 2,376,296 2,676,948 2,374,552 2,324,577 2,299,837
Investment in Local Limited
Partnerships, at original cost 41,458,860 41,458,860 41,422,507 41,422,507 41,422,507
Total assets (A) 8,369,107 10,458,754 11,358,168 14,487,572 17,626,031
Cash distribution - - - - -
Per Limited Partnership Unit - - - - -
Other Data:
Passive loss (B) (7,537,782) (6,502,105) (6,757,956) (7,213,910) (7,195,871)
Per Limited Partnership Unit (B) (149.25) (128.74) (133.81) (142.84) (142.48)
Portfolio income (B) 389,939 442,059 321,042 420,572 609,370
Per Limited Partnership Unit (B) 7.72 8.75 6.36 8.33 12.07
Low-Income Housing
Tax Credits (B) 7,559,531 7,652,372 7,512,822 7,490,806 7,479,988
Per Limited Partnership Unit (B) 149.47 151.31 148.55 148.11 147.89
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 1996, 1995, 1994, 1993 and 1992,
represents the amount distributed to individual investors based upon
50,000 outstanding Units. Corporate investors received Low-Income
Housing Tax Credits of $159.39, $161.23, $158.40, $158.11 and $157.89
per Unit in 1996, 1995, 1994, 1993 and 1992, respectively.
(C) March 31, 1997 and 1996 revenue includes $237,895 and $28,827,
respectively, of rental and other revenue from Hughes Apartments
that is included in the combined revenue in the Statements of
Operations.
March 31, 1997 and 1996 equity in losses of Local Limited Partnerships
does not include $36,820 and $13,329, respectively, of losses from
Hughes Apartments that have been combined with the Partnership's loss
in the Statements of Operations
March 31, 1997 and 1996 cash, cash equivalents and marketable
securities includes $2,544 and $26,084, respectively, of cash
equivalents from Hughes Apartments that has been combined with the
Partnership in the Balance Sheets.
<PAGE>
Item 7. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Liquidity and Capital Resources
At March 31, 1997, the Partnership has cash and cash equivalents of $453,264 as
compared with $678,567 at March 31, 1996. The decrease is attributable to cash
used for operations, purchases of rental property and equipment and advances
made to Local Limited Partnerships. These decreases to cash and cash equivalents
are offset by cash distributions received from Local Limited Partnerships and
proceeds from the sales and maturities of marketable securities in excess of
purchases of marketable securities.
At March 31, 1997, approximately $1,639,000 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, 1997, 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. During the year ended March 31, 1997, the Partnership advanced
approximately $375,000 to four Local Limited Partnerships to fund operating
deficits and other various property issues.
Cash Distributions
No cash distributions to Limited Partners were made during the three years ended
March 31, 1997. 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
1997 versus 1996
The Partnership's results of operations for the year ended March 31, 1997
resulted in a net loss of $2,048,112 as compared to a net loss of $2,278,003 for
the same period in 1996. The improved net loss position is primarily
attributable to a decrease in equity in losses of Local Limited Partnerships and
an increase in rental revenue. These decreases to net loss are offset by
increases in rental operations, interest and depreciation expense items. Also,
the adjustment to reserve for valuation of investments in Local Limited
Partnerships was $(510,048) in 1996 and $(137,073) in 1995. This change is due
to 1996 advances made to three Local Limited Partnerships which were fully
reserved in 1996. As discussed in Note 4 to the combined financial statements in
Item 8 of this form 10-k, the decrease in equity in losses of Local Limited
Partnerships is due to a change in accounting method for two Local Limited
Partnerships. The increase in rental revenue and rental operations, interest and
depreciation expenses is the result of the financial activity of Hughes being
combined for twelve months in 1997 and two months in 1996.
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.
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 events or
changes in circumstances indicate that the carrying amount of an asset may not
be recoverable. The Partnership adopted the new standard for its year ending
March 31, 1997, however, it had no significant effect on its financial position
or results of operations.
Low-Income Housing Tax Credits
The 1996, 1995 and 1994 Low-Income Housing Tax Credits per Unit for individuals
were $149.47, $151.31 and $148.55, respectively. The 1996, 1995 and 1994
Low-Income Housing Tax Credits per Unit for corporations were $159.39, $161.23
and $158.40, 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 through
1997 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.
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.
The Managing General Partner was successful in reaching a one year workout
agreement with HUD on Pebble Creek, located in Arlington, Texas effective June
1, 1997. The property has been experiencing significant operating problems
primarily due to considerable resident turnover and high security and capital
repair costs. The problems resulted in a mortgage default and subsequent
mortgage assignment to HUD. The workout includes provisions for substantial
capital improvements to the property designed to stabilize operations. Property
management continues to work with the Managing General Partner and HUD to ensure
that the capital improvements are completed on time and in accordance with the
workout.
As previously reported, Cass House and Verdean Gardens, Massachusetts properties
which share a common Local General Partner, continue to operate below break-even
in a slow rental market. The SHARP subsidy agreements for both properties were
renegotiated in 1992 and provided additional subsidies. However, since the
properties continue to operate at a deficit and Verdean Gardens requires
maintenance work, the Local General Partner has applied for further subsidies.
The restructuring of the Cass House subsidy closed in June of 1996. The closing
for Verdean Gardens occurred in December of 1996. Both restructurings required
contributions from Partnership reserves. Under the existing subsidy agreement,
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
December 31, 1996.
Hughes Apartments, located in Mandan, North Dakota, continues to generate
operating deficits, despite the fact that construction to repair the damaged
units is ongoing, and occupancy has reached 100%. As we previously reported, the
Managing General Partner negotiated a forbearance agreement with the lender
which included an infusion of additional capital to cure the mortgage default
and fund capital repairs. A portion of the capital repairs is being funded from
Partnership Reserves. The Managing General Partner continues to monitor property
operations closely and to work with the local General Partner on a strategy to
stabilize property operations.
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, 1997, 1996 and 1995.
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. The report
on the financial statements of the registrant by Arthur Andersen LLP for the
year ended March 31, 1995 did not contain an adverse opinion or disclaimer of
opinion and was 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 year ended March 31, 1995 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. Donna Gibson, a Vice President of the Managing General Partner,
resigned from her position on September 13, 1996
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
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 46, 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. Ms. Murray is a member of
the Senior Leadership Team and Board of Directors, and leads the Property
Management division. Previously, she led the company's Institutional Tax Credit
Team and managed Boston Financial's Investment Real Estate and Asset Management
divisions. Ms. Murray currently serves as a director of Atlantic Bank and Trust
Company, President of the Institute for Multi-Family Housing, Director of the
Investment Program Association and member of the Direct Investment Committee of
the Securities Industry Association. Previously, she served as the Industry
Advisor to the Management Policy Review Committee of the Massachusetts Housing
Finance Agency and as a commissioner of the Boston Public Facilities Department.
Fred N. Pratt, Jr., age 52, 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 the General Partner of Boston Financial.
William E. Haynsworth, age 57, 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 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 firm's Senior Leadership
Team and participates in the structuring of real estate investments and the
development of new business opportunities.
Paul F. Coughlan, age 53, 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 Account Executive by Bache & Company until 1972, and
then by Reynolds Securities Inc. He joined Boston Financial in 1975 and is
currently a Senior Vice President on the Institutional Tax Credit Team.
Peter G. Fallon, Jr., age 58, 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 and
a member of the Investment Real Estate Division with responsibility for the
marketing of the firm's Institutional Tax Credit product.
Randolph G. Hawthorne, age 47, is a graduate of the Massachusetts Institute of
Technology (B.S., 1971) and Harvard Graduate School of Business (M.B.A., 1973).
He joined Boston Financial in 1973 and has served as Treasurer and managed the
firm's Investment Real Estate division. He is a Senior Vice President serving on
the Investment Acquisitions Team with 22 years of experience in property
acquisitions. Mr. Hawthorne has primary responsibility for structuring real
estate investments and developing new business opportunities. He is a member of
the Investment Committee. He is Chairman of the National Multi-Housing Council,
a past president of the National Housing and Rehabilitation Association, a
member of the Residential Development Council of the Urban Land Institute as
well as a member of the Advisory Board of the Berkeley Real Estate Center at the
University of California. A speaker at industry conferences, he is also on the
Editorial Advisory Board of the Tax Credit Advisor.
A. Harold Howell, age 56, 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 is in
charge of a program being developed for properties managed by Boston Financial
whereby heads-of-households who want to further their education can enroll in a
program on-site which teaches economic self sufficiency, computer and internet
skills, problem solving skills and related real-world skills. 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, 1997, 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, 1997 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 four 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. 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
were reimbursed to an affiliate of the General Partner. These costs have been
fully amortized. 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, 1997.
<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 Proceeds. Acquisition
expenses include such expenses as legal fees and expenses, travel and
communications expenses, costs of appraisals and accounting fees and expenses.
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 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, 1997.
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, 1997 are as
follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1997 1996 1995
Salaries and benefits expense
reimbursements $ 138,995 $ 146,464 $ 135,847
</TABLE>
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. Fees earned by BFPM in each of the three years ended
March 31, 1997 are as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1997 1996 1995
Property management fees $ 194,057 $ 181,269 $ 189,800
</TABLE>
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, 1997.
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, 1997 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 regulations 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, 1997.
(a)(3)(c) Exhibits
Number and Description in Accordance with
Item 601 of Regulation S-K
27. Financial data schedule
28. Additional Exhibits
(a) 28.1 Reports of Other Independent Auditors
(b) Audited financial statements of
Local Limited Partnerships
1. Pebble Creek
(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:
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:
William E. Haynsworth,
Managing Director, Vice President and
Chief Operating Officer
By: /s/Fred N. Pratt, Jr. Date:
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, 1997
Index
Page No.
Report of Independent Accountants
For the Years Ended March 31, 1997 and 1996 F-2
For the Year Ended March 31, 1995 F-3
Combined Financial Statements
Combined Balance Sheets - March 31, 1997 and 1996 F-4
Combined Statements of Operations - Years Ended
March 31, 1997, 1996 and 1995 F-5
Combined Statements of Changes in Partners' Equity (Deficiency)
Years Ended March 31, 1997, 1996 and 1995 F-6
Combined Statements of Cash Flows - Years Ended
March 31, 1997, 1996 and 1995 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 Partnership 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 sheets of Boston Financial
Qualified Housing Limited Partnership (A Limited Partnership) as of March 31,
1997 and 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 years ended
March 31, 1997 and 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 financial statement
schedule based on our audits. As of March 31, 1997 and 1996, 27% and 38%,
respectively, of total assets, and for the years ended March 31, 1997 and 1996,
100% 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 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, based on our audits 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, 1997 and 1996, and the results of its operations
and its cash flows for the years ended March 31, 1997 and 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.
/s/ Coopers & Lybrand L.L.P.
Coopers & Lybrand L.L.P.
Boston, Massachusetts
June 25, 1997
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners
Boston Financial Qualified Housing Limited Partnership:
We have audited the accompanying combined statements of operations, changes in
partners' equity(deficiency) and cash flows of Boston Financial Qualified
Housing Limited Partnership (A Limited Partnership) for the year ended March 31,
1995. 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 did not audit certain of the financial
statements of the Local Limited Partnerships for the year ended March 31, 1995,
the investments in which are recorded using the equity method of accounting (see
Note 2). The equity in losses of these partnerships represents 100% of the
equity in loss of the Local Limited Partnerships for the year 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 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 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 results of operations and cash flows of Boston Financial Qualified Housing
Limited Partnership for the year ended March 31, 1995, in conformity with
generally accepted accounting principles.
/s/ Arthur Anderson LLP
Arthur Andersen LLP
Boston, Massachusetts
June 16, 1995
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
COMBINED BALANCE SHEETS - March 31, 1997 and 1996
<TABLE>
<CAPTION>
<S> <C> <C>
1997 1996
Assets
Cash and cash equivalents $ 453,264 $ 678,567
Tenant security deposits 4,709 4,067
Marketable securities, at fair value (Notes 1 and 3) 1,923,032 1,998,381
Mortgagee escrow deposits 10,230 -
Replacement reserve escrow 6,092 5,816
Bond trusts (Note 7) 86,209 70,140
Investments in Local Limited Partnerships,
net of reserve for valuation of
$328,803 and $787,526 in
1997 and 1996, respectively (Note 4) 4,645,508 6,447,339
Deferred charges, net of accumulated
amortization of $32,245 and $29,021
in 1997 and 1996, respectively 48,369 51,593
Rental property, at cost, net of
accumulated depreciation (Note 6) 1,158,106 1,135,368
Other assets 33,588 67,483
------- ---------
Total Assets $ 8,369,107 $ 10,458,754
Liabilities and Partners' Equity
Accounts payable to affiliate (Note 5) $ 34,790 $ 16,763
Accounts payable and accrued expenses 46,346 94,274
Accrued interest (Note 7) 68,819 68,819
Tenant security deposits payable 4,617 2,936
Bonds payable (Note 7) 1,210,000 1,210,000
-------- ---------
Total Liabilities 1,364,572 1,392,792
Minority interest in Local Limited Partnership 58,847 59,219
General, Initial and Investor Limited Partners' Equity 6,958,668 9,006,780
Net unrealized losses on marketable securities (12,980) (37)
Total Partners' Equity 6,945,688 9,006,743
------- ---------
Total Liabilities and Partners' Equity $ 8,369,107 $ 10,458,754
</TABLE>
The accompanying notes are an integral part of these combined
financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
COMBINED STATEMENTS OF OPERATIONS For
the Years Ended March 31, 1997, 1996 and 1995
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1997 1996 1995
(Note 2) (Note 2)
Revenue:
Rental $ 227,492 $ 22,721 $ -
Investment, net (Note 3) 151,516 130,960 54,550
Other 56,783 37,548 22,798
----- ----- ----
Total Revenue 435,791 191,229 77,348
Expenses:
General and administrative, includes
reimbursements to an affiliate of $138,995,
$146,464 and $135,847 (Note 5) 207,292 173,259 321,980
Rental operations, exclusive of depreciation 111,221 8,495 -
Interest (Note 7) 118,095 19,685 -
Depreciation (Note 6) 42,547 13,575 -
Amortization (Note 2) 100,691 106,515 109,621
Adjustment to reserve for valuation of
investments in Local
Limited Partnerships (Note 4) (137,073) (510,048) 56,147
------- ------- -------
Total Expenses 442,773 (188,519) 487,748
Income (loss) before equity in losses
of Local Limited Partnerships (6,982) 379,748 (410,400)
Minority interest in loss of
Local Limited Partnership 372 135 -
Equity in losses of Local Limited
Partnerships, including income
of $822,529 for prior year
adjustments (Note 4) (2,041,502) (2,657,886) (2,732,227)
--------- ---------- --------
Net Loss $ (2,048,112) $ (2,278,003) $(3,142,627)
Net Loss allocated
To General Partners $ (20,481) $ (22,780) $ (31,426)
To Limited Partners (2,027,631) (2,255,223) (3,111,201)
--------- ---------- ---------
$ (2,048,112) $ (2,278,003) $(3,142,627)
Net Loss per Limited Partnership Unit
(50,000 Units) $ (40.55) $ (45.10) $ (62.22)
</TABLE>
The accompanying notes are an integral part of these combined
financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
COMBINED STATEMENTS OF CHANGES IN PARTNERS' EQUITY
(DEFICIENCY) For the Years Ended March 31,
1997, 1996 and 1995
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Net
Initial Investor Unrealized
General Limited Limited Gains
Partners Partners Partners (Losses) Total
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 net 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 net unrealized
losses on marketable
securities available
for sale (Note 3) - - - 28,381 28,381
Balance at March 31, 1996 (344,429) 4,648 9,346,561 (37) 9,006,743
------ ----- --------- --- -------
Net Loss (20,481) - (2,027,631) - (2,048,112)
Net change in net unrealized
losses on marketable
securities available
for sale (Note 3) - - - (12,943) (12,943)
------ ----- --------- --- -----
Balance at March 31, 1997 $ (364,910) $ 4,648 $ 7,318,930 $ (12,980) $ 6,945,688
</TABLE>
The accompanying notes are an integral part of these combined
financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
COMBINED STATEMENTS OF CASH FLOWS For
the Years Ended March 31, 1997, 1996 and 1995
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1997 1996 1995
(Note 2) (Note 2)
Cash flows from operating activities:
Net Loss $ (2,048,112) $ (2,278,003) $(3,142,627)
Adjustments to reconcile net loss to net
cash used for operating activities:
Equity in losses of Local Limited Partnerships 2,041,502 2,657,886 2,732,227
Adjustment to reserve for valuation of
Investments in Local Limited Partnerships (137,073) (510,048) 56,147
(Gain) loss on sale of marketable securities 3,072 (9,470) 46,361
Distribution income included in cash distributions
received from Local Limited Partnerships (41,631) (5,000) (5,225)
Depreciation and amortization 143,238 120,090 109,621
Minority interest in losses of Local Limited Partnership (372) (135) -
Increase (decrease) in cash arising from changes
in operating assets and liabilities:
Tenant security deposits (642) - -
Mortgagee escrow deposits (10,230) - -
Replacement reserve escrow (276) - -
Other assets 33,895 (39,052) (366)
Accounts payable to affiliate 18,027 5,017 -
Accounts payable and accrued expenses (47,928) (9,883) 2,317
Tenant security deposits payable 1,681 - -
----- ----- ---------
Net cash used for operating activities (44,849) (68,598) (201,545)
Cash flows from investing activities:
Purchases of marketable securities (1,234,961) (1,547,205) (2,916,220)
Proceeds from sales and maturities
of marketable securities 1,294,295 1,653,011 3,094,216
Advances to Local Limited
Partnerships (321,650) - -
Cash distributions received from Local
Limited Partnerships 163,216 343,431 286,975
Purchase of rental property and equipment (65,285) - -
Bond trust deposits (16,069) (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 (180,454) 438,949 464,971
Net increase (decrease) in cash and cash
equivalents (225,303) 370,351 263,426
Cash and cash equivalents, beginning 678,567 308,216 44,790
----- ----- ----
Cash and cash equivalents, ending $ 453,264 $ 678,567 $ 308,216
</TABLE>
The accompanying notes are an integral part of these combined
financial statements.
<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, 1997, the Managing General Partner has designated approximately $1,639,000
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,
because the Partnership does not have a majority control of the major operating
and financial policies of the Local Limited Partnerships in which it invests.
Under the equity method, the investment is carried at cost, adjusted for the
Partnership's share of income or loss of the Local Limited Partnership,
additional investments 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. The Partnership has no
obligation to fund liabilities of the Local Limited Partnership beyond its
investment, therefore, a Limited Partnership's investment will not be carried
below zero. To the extent that equity losses are incurred when a Local Limited
Partnership's respective investment balance has been reduced to zero, 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 are included in the Partnership's
Investments in Local Limited Partnerships and 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)
Basis of Presentation and Combination (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, 1996, 1995 and 1994.
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
financial activity of Hughes for the year ended December 31, 1996 and 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, because the Local Limited Partnerships report their results on a calendar
year basis. Accordingly, the financial information about the Local Limited
Partnerships that is included in the accompanying combined financial statements
is as of December 31, 1996, 1995 and 1994.
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. 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.
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.
Cash and Cash Equivalents
Cash and 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
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 component 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 events or
changes in circumstances indicate that the carrying amount of an asset may not
be recoverable. The Partnership has adopted the new standard for its year ended
March 31, 1997, however, it has not had 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.
Fair Value of Financial Instruments
Statements of Financial Accounting Standards No.107 ("SFAS No. 107"),
Disclosures About Fair Value of Financial Instruments, requires disclosure for
the fair value of most on- and off-balance sheet financial instruments for which
it is practicable to estimate that value. The scope of SFAS No. 107 excludes
certain financial instruments, such as trade receivables and payables when the
carrying value approximates the fair value and investments accounted for under
the equity method, and all nonfinancial assets, such as real property. The fair
values of the Partnership's assets and liabilities which qualify as financial
instruments under SFAS No. 107 approximate their carrying amounts in the
accompanying balance sheets.
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>
<S> <C> <C> <C> <C>
Gross Gross
Unrealized Unrealized Fair
Cost Gains Losses Value
Debt securities issued by the
US Treasury and
other US Government
corporations and agencies $ 1,511,712 $ 3,283 $ (13,174) $ 1,501,821
Mortgage backed securities 405,200 498 (3,632) 402,066
Other debt securities 19,100 45 - 19,145
Marketable securities
at March 31, 1997 $ 1,936,012 $ 3,826 $ (16,806) $ 1,923,032
Debt securities issued by the
US Treasury and
other US Government
corporations and agencies $ 1,394,653 $ 2,050 $ (7,271) $ 1,389,432
Mortgage backed securities 247,382 1,792 (164) 249,010
Other debt securities 356,383 3,783 (227) 359,939
Marketable securities
at March 31, 1996 $ 1,998,418 $ 7,625 $ (7,662) $ 1,998,381
</TABLE>
The contractual maturities at March 31, 1997 are as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
Fair
Cost Value
Due in one year or less $ 296,833 $ 299,767
Due in one year to five years 1,233,979 1,221,199
Mortgage backed securities 405,200 402,066
-------- ---------
$ 1,936,012 $ 1,923,032
</TABLE>
Actual maturities may differ from contractual maturities because some borrowers
have the right to call or prepay obligations. Proceeds from sales and maturities
of securities were approximately $1,294,000, $1,653,000 and $3,094,000 for the
years ended March 31, 1997, 1996 and 1995, respectively. Included in investment
income are gross gains of $4,492, $16,733 and $1,349 and gross losses of $7,564,
$7,263 and $47,710 which were realized on these sales during the years ended
March 31, 1997, 1996 and 1995, respectively.
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.
<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 following is a summary of Investments in Local Limited Partnerships at March
31, 1997, 1996 and 1995. The 1997 and 1996 summaries exclude Hughes.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1997 1996 1995
Capital contributions and advances to Local Limited
Partnerships and purchase price paid to
withdrawing partners of Local Limited
Partnerships $ 36,630,480 $ 36,308,830 $ 36,651,930
Cumulative equity in losses of Local
Limited Partnerships (excluding cumulative
unrecognized losses of $12,515,308) (33,461,841) (31,456,648) (29,228,172)
Cumulative cash distributions received
from Local Limited Partnerships (1,572,433) (1,414,539) (1,071,108)
Investments in Local Limited Partnerships --------- --------- ---------
before adjustment 1,596,206 3,437,643 6,352,650
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 (1,070,822) (973,355) (867,376)
-------- ----- ---------
Investments in Local Limited Partnerships 5,295,961 7,234,865 10,255,851
Reserve for Valuation of Investments in
Local Limited Partnerships (650,453) (787,526) (1,297,574)
--------- ---------- ---------
$ 4,645,508 $ 6,447,339 $ 8,958,277
</TABLE>
The 1996, 1995 and 1994 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 1996, 1995 and 1994 and has severe
liquidity problems and recurring cash deficits. 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 1996. Equity in losses of Local Limited
Partnerships for the years ended March 31, 1997, 1996 and 1995 includes
$449,345, $500,670 and $218,983, 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.
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.
Included in cumulative equity in losses of Local Limited Partnerships is
$822,529 of income recognized during the year ended March 31,1997 as a result of
a change in accounting method of two Local Limited Partnerships.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
4. Investments in Local Limited Partnerships (continued)
Summarized financial information as of December 31, 1996, 1995 and 1994 (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 and 1995, in which the Partnership has invested as of
that date is as follows:
Summarized Balance Sheets - as of December 31,
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1996 1995 1994
Assets:
Investment property, net $ 104,825,788 $ 108,942,454 $ 113,394,758
Current assets 2,686,076 2,801,351 2,337,205
Other assets 9,247,079 9,921,430 10,375,151
Total Assets $ 116,758,943 $ 121,665,235 $ 126,107,114
Liabilities and Partners' Deficit:
Current liabilities (includes current portion
of long-term debt) $ 14,381,389 $ 5,948,489 $ 5,087,134
Other debt 15,883,277 14,021,083 14,981,385
Long-term debt 100,798,039 110,465,789 110,046,887
Total Liabilities 131,062,705 130,435,361 130,115,406
Partners' Deficit:
Partnership Deficit (14,087,983) (8,764,328) (3,556,895)
Other Partners' Deficit (215,779) (5,798) (451,397)
Total Partners' Deficit (14,303,762) (8,770,126) (4,008,292)
Total Liabilities and Partners' Deficit $ 116,758,943 $ 121,665,235 $ 126,107,114
Summarized Income Statements - for
the years ended December 31,
1996 1995 1994
Rental and other revenue $ 19,530,795 $ 21,087,845 $ 19,884,870
Expenses:
Interest 9,754,129 10,481,568 10,540,501
Operating 10,860,840 10,544,604 9,480,068
Depreciation and amortization 4,717,555 5,269,753 5,100,823
Total Expenses 25,332,524 26,295,925 25,121,392
Net loss $ (5,801,729) $ (5,208,080) $ (5,236,522)
Partnership's share of net loss (including
adjustments relating to prior year,
discussed above) $ (4,925,359) $ (5,153,645) $ (5,180,777)
Other Partners' share of net loss $ (110,302) $ (54,435) $ (55,745)
</TABLE>
For the years ended March 31, 1997, 1996 and 1995, the Partnership has not
recognized $2,925,488, $2,500,759 and $2,453,775, respectively, in equity in
losses relating to fourteen Local Limited Partnerships where cumulative equity
in losses and cumulative distributions exceeded its total investments.
<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's deficit as reflected by the Local Limited Partnerships of
$14,087,983 differs from the Partnership's Investments in Local Limited
Partnerships before adjustment of $1,274,556 principally because: a) the
Partnership has not recognized $12,515,308 of equity in losses relating to Local
Limited Partnerships whose cumulative equity in losses and cumulative cash
distributions 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, 1997 are not
reflected in the equity of certain Local Limited Partnerships at December 31,
1996.
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, 1997, 1996 and 1995 is $138,995, $146,464
and $135,847, respectively, that has been paid or is payable by the Partnership
as reimbursement for salaries and benefits. At March 31, 1997 and 1996, $34,790
and $16,763, respectively, is payable to an affiliate of the Managing General
Partner.
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. Included in
operating expenses in the summarized income statements in Note 4 to the
Financial Statements is $194,057, $181,269 and $189,800 of fees earned by BFPM
for the years ended December 31, 1996, 1995 and 1994, respectively.
6. Rental Property
Real estate and personal property belonging to Hughes are recorded at cost, the
components of which are as follows at December 31, 1996 and 1995:
<TABLE>
<CAPTION>
<S> <C> <C>
1996 1995
Land $ 29,008 $ 29,008
Building and improvements 1,490,659 1,425,374
Equipment and furnishings 26,817 26,817
1,546,484 1,481,199
Less accumulated depreciation (388,378) (345,831)
--------- ---------
Total $ 1,158,106 $1,135,368
</TABLE>
7. Bonds Payable
Hughes 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
Hughes and the bonds have been recorded as a direct obligation of Hughes.
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 will be
considered in default on the remaining outstanding bonds. The bond trustee has
withdrawn funds from this account in 1996, 1995 and 1994. The amounts withdrawn
have not been replaced, and consequently, Hughes is in default of its lease
agreement.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
7. Bonds Payable (continued)
The bond trust account is used to receive deposits from Hughes for principal and
interest payments on the bonds. The trustee makes all principal and interest
payments on the bonds from this trust account.
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:
1997 $ 117,975
1998 117,975
1999 117,975
2000 117,975
2001 117,975
Thereafter 620,125
------
$1,210,000
Based on the unique terms of the financing, 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, 1996 and 1995 are as follows:
1996 1995
Bond reserve trust $ 75,571 $ 42,618
Bond trust 10,638 27,522
------- ------
$ 86,209 $ 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, 1996 and 1995 is $75,571 and $42,618, respectively. Fair
value as of December 31, 1996 and 1995 is $76,725 and $46,378, respectively.
Unrealized gains of $1,154 and $3,760 in 1996 and 1995, respectively, 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 fiscal years ended March 31, 1997, 1996 and 1995 to the loss reported
for federal income tax purposes for the years ended December 31, 1996, 1995, and
1994 are as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1997 1996 1995
Net Loss per Statements of Operations $ (2,048,112) $ (2,278,003) $ (3,142,627)
Adjustment to reflect March 31, fiscal
year-end to December 31,
taxable year-end 230,663 26,458 (16,932)
Adjustment to reserve for valuation of
Investments in Local Limited Partnerships
not deductible (taxable) for tax purposes (458,723) (510,048) 56,147
Amortization of acquisition fees and
expenses for tax purposes over
amortization for financial
reporting purposes (94,149) (67,497) (63,855)
Adjustment for equity in losses of Local
Limited Partnerships for financial
reporting purposes under
equity in losses for tax purposes (1,829,071) (700,632) (815,872)
Equity in losses of Local Limited
Partnerships not recognized
for financial reporting purposes (2,925,488) (2,500,759) (2,453,775)
Other (22,963) (29,565) -
Net loss for federal income tax purposes $ (7,147,843) $(6,060,046) $ (6,436,914)
</TABLE>
The carrying value of the Partnership's Investment in Local Limited Partnerships
is approximately $23,391,000 greater for financial reporting purposes than for
tax return purposes because (i) the cumulative equity in losses of the Local
Limited Partnerships is approximately $10,924,000 greater for tax purposes
because of accelerated tax depreciation methods used; (ii) the Partnership has
not recognized approximately $12,515,000 of equity in losses of the Local
Limited Partnerships for financial reporting purposes; (iii) the Partnership has
provided a provision for valuation of approximately $329,000 against two of its
investments in Local Limited Partnerships for financial reporting purposes; (iv)
the cumulative amortization of acquisition fees for tax purposes exceeds
financial reporting purposes by approximately $410,000; and (v) approximately
$130,000 of cash distributions were received from Local Limited Partnerships
during the lag period January 1, 1997 to March 31, 1997. The carrying values 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>
Balance Sheets
<CAPTION>
Boston Financial
Qualified Housing Hughes
Tax Credits Apartments
L.P. (A) Ltd.(B) Eliminations Combined
<S> <C> <C> <C> <C>
Assets
Cash and cash equivalents $ 450,720 $ 2,544 $ - $ 453,264
Tenant security deposits - 4,709 - 4,709
Marketable securities, at fair value 1,923,032 - - 1,923,032
Mortgagee escrow deposits - 10,230 - 10,230
Replacement reserve escrow - 6,092 - 6,092
Bond trusts - 86,209 - 86,209
Investments in Local Limited
Partnerships 4,603,892 - 41,616 4,645,508
Deferred charges, net - 48,369 - 48,369
Rental property at cost, net - 1,158,106 - 1,158,106
Other assets 30,924 2,664 - 33,588
Total Assets $ 7,008,568 $ 1,318,923 $ 41,616 $ 8,369,107
Liabilities and Partners' Equity
Accounts payable to affiliates $ 34,790 $ 53,490 $(53,490) $ 34,790
Accounts payable and accrued
expenses 28,090 18,256 - 46,346
Accrued interest - 68,819 - 68,819
Tenant security deposits payable - 4,617 - 4,617
Bonds payable - 1,210,000 - 1,210,000
Total Liabilities 62,880 1,355,182 (53,490) 1,364,572
Minority interest in Local Limited
Partnership - - 58,847 58,847
General, Initial and Investor
Limited Partners' Equity 6,958,668 (36,259) 36,259 6,958,668
Net unrealized losses (12,980) - - (12,980)
Total Partners' Equity 6,945,688 (36,259) 36,259 6,945,688
Total Liabilities and
Partners' Equity $ 7,008,568 $ 1,318,923 $ 41,616 $ 8,369,107
</TABLE>
(A) As of March 31, 1997.
(B) As of December 31, 1996.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
9. Supplemental Combining Schedules (continued)
<TABLE>
Statements of Operations
<CAPTION>
Boston Financial
Qualified Housing Hughes
Tax Credits Apartments
L.P. (A) Ltd.(B) Eliminations Combined
<S> <C> <C> <C> <C>
Revenue:
Rental $ - $ 227,492 $ - $ 227,492
Investment 145,784 5,732 - 151,516
Other 52,112 4,671 - 56,783
----- ----- ------ -----
Total Revenue 197,896 237,895 - 435,791
Expenses:
General and administrative 207,292 - - 207,292
Rental operations, exclusive
of depreciation - 111,221 - 111,221
Interest - 118,095 - 118,095
Depreciation - 42,547 - 42,547
Amortization 97,467 3,224 - 100,691
Adjustment to provision
for valuation of
investments in Local
Limited Partnerships (137,073) - - (137,073)
----- -------- ------ ------
Total Expenses 167,686 275,087 - 442,773
Income (loss) before equity in
losses of Local Limited
Partnerships 30,210 (37,192) - (6,982)
Minority interest in loss of
Local Limited Partnership - - 372 372
Equity in losses of Local
Limited Partnerships (2,078,322) - 36,820 (2,041,502)
--------- -------- ------ ------
Net Loss $ (2,048,112) $ (37,192) $ 37,192 $ (2,048,112)
</TABLE>
(A) For the year ended March 31, 1997.
(B) For the year ended December 31, 1996 - 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>
Statements of Cash Flows
<CAPTION>
Boston Financial
Qualified Housing Hughes
Tax Credits Apartments
L.P. (A) Ltd.(B) Eliminations Combined
<S> <C> <C> <C> <C>
Cash flows from operating activities:
Net Loss $ (2,048,112) $ (37,192) $ 37,192 $ (2,048,112)
Adjustments to reconcile net loss to
net cash provided by (used for)
operating activities:
Equity in losses of Local Limited
Partnerships 2,078,322 - (36,820) 2,041,502
Adjustment to reserve for valuation
of investments in Local
Limited Partnerships (137,073) - - (137,073)
Loss on sale of marketable securities 3,072 - - 3,072
Distribution income included in
cash distributions received from
Local Limited Partnerships (41,631) - - (41,631)
Depreciation and amortization 97,467 45,771 - 143,238
Minority interest in loss of Local
Limited Partnership - - (372) (372)
Increase (decrease) in cash arising
from changes in operating assets
and liabilities:
Tenant security deposits - (642) - (642)
Mortgagee escrow deposits - (10,230) - (10,230)
Replacement reserve escrow - (276) - (276)
Other assets 33,467 428 - 33,895
Accounts payable to affiliates 18,027 53,490 (53,490) 18,027
Accounts payable and accrued
expenses (52,712) 4,784 - (47,928)
Tenant security deposits payable - 1,681 - 1,681
----- ---- ---- ------
Net cash provided by (used for)
operating activities (49,173) 57,814 (53,490) (44,849)
Cash flows from investing activities:
Purchases of marketable securities (1,234,961) - - (1,234,961)
Proceeds from sales and maturities
of marketable securities 1,294,295 - - 1,294,295
Advances to Local Limited
Partnerships (375,140) - 53,490 (321,650)
Cash distributions received from
Local Limited Partnerships 163,216 - - 163,216
Purchase of rental property and
equipment - (65,285) - (65,285)
Bond trust deposits - (16,069) - (16,069)
------ ---- ---- ------
Net cash used for investing activities (152,590) (81,354) 53,490 (180,454)
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
9. Supplemental Combining Schedules (continued)
<TABLE>
Statements of Cash Flows
<CAPTION>
Boston Financial
Qualified Housing Hughes
Tax Credits Apartments
L.P. (A) Ltd.(B) Eliminations Combined
<S> <C> <C> <C> <C>
Net decrease in cash and cash equivalents (201,763) (23,540) - (225,303)
Cash and cash equivalents, beginning 652,483 26,084 - 678,567
----- ----- ----- -----
Cash and cash equivalents, ending $ 450,720 $ 2,544 $ - $ 453,264
</TABLE>
(A) For the year ended March 31, 1997.
(B) For the year ended December 31, 1996
- - 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, 1997
<TABLE>
COST OF INTEREST AT AQUISITION DATE
------------------------------------
<CAPTION>
NET
IMPROVEMENTS
NUMBER TOTAL BUILDINGS / CAPITALIZED
OF ENCUM- IMPROVEMENTS SUBSEQUENT TO
DESCRIPTION UNITS BRANCES * LAND & EQUIPMENT ACQUISITION
<S> <C> <C> <C> <C> <C>
Low and Moderate
Income Apartment Complexes
Barrington Manor 18 $635,000 $30,000 $555,638 $242,106
Fargo, ND
Bingham Housing 24 1,166,209 48,934 362,172 1,031,234
Associates
Bingham, ME
Birmingham Village 24 1,160,427 61,900 190,424 1,165,087
Randolph, ME
Bittersweet Lane 35 2,468,567 69,300 2,884,207 374,582
Randolph , MA
Coronodo Courts 145 3,763,016 452,331 4,995,460 50,092
Douglas, AZ
Elmore Hotel 60 3,336,093 12,500 2,976,388 515,543
Great Falls, MT
Graver Inn 70 2,025,486 30,000 2,208,960 843,462
Fargo, ND
Hazel Winthrop Apartments 30 2,124,303 45,000 2,548,540 (118,658)
Chicago, IL
Hughes Apartments 47 1,210,000 28,000 1,260,066 258,418
Mandan, ND
Lakeview Heights 83 2,820,290 217,588 2,896,224 149,322
Clearfield, UT
Medford Hotel 76 3,226,176 12,500 2,747,997 1,863,079
Medford, OR
Heritage View 24 1,165,406 64,800 690,736 686,775
New Sweden, ME
Rolling Green Apartments 166 4,817,714 286,350 6,254,575 115,452
Edmond, OK
Sierra Pointe Apartments 209 7,187,317 382,000 8,001,390 1,008,159
Aurora, CO
Terrace Apartments 206 5,275,565 350,000 6,470,754 (275,333)
Oklahoma City, OK
Trenton Apartments 37 843,537 154,000 899,293 100,993
Salt Lake City, UT
Windsor Court Apartments 143 4,520,523 280,000 5,579,636 (256,052)
Aurora, CO
Sierra Vista 160 6,326,760 434,866 8,056,238 16,785
Las Vegas, NV
Willow Peg Village 57 1,480,195 125,000 1,741,799 2,980
Ricon, GA
Pebble Creek 352 7,945,275 794,000 9,563,687 137,529
Arlington, TX
</TABLE>
<PAGE>
<TABLE>
COST OF INTEREST AT AQUISITION DATE
------------------------------------
<CAPTION>
NET
IMPROVEMENTS
NUMBER TOTAL BUILDINGS / CAPITALIZED
OF ENCUM- IMPROVEMENTS SUBSEQUENT TO
DESCRIPTION UNITS BRANCES * LAND & EQUIPMENT ACQUISITION
Low and Moderate
Income Apartment Complexes
<S> <C> <C> <C> <C> <C>
Pine Village 36 940,806 40,000 960,000 189,698
Pine Mountain, GA
Talbot Village 24 602,587 21,775 545,547 244,531
Talbolton, GA
Logan Plaza 130 11,169,407 969,289 13,287,069 341,349
New York, NY
Cass House 111 8,103,267 222,000 11,423,209 47,910
Boston, MA
Verdean Gardens 110 7,806,357 214,992 8,891,168 2,042,800
New Bedford, MA
Country Estates 24 596,239 22,500 734,409 0
Glenville, GA
Boulevard Commons 212 10,483,899 318,000 3,580,316 10,878,475
Chicago, IL
Chestnut Lane 50 1,474,913 93,484 848,922 886,378
Newman, GA
600 Dakota Properties 28 660,000 64,353 769,608 36,538
Wahpeton, ND
Duluth 11 259,509 24,000 363,810 13,214
Souix Falls, SD
Delmar 16 420,216 75,000 495,203 23,220
Gillette, WY
Park Terrace 101 3,558,155 393,713 4,781,404 161,042
Dundalk, MD
Brentwood Manor II 22 777,435 44,980 1,118,947 9,218
Nashua, NH
Hillcrest Apts 3 24 592,380 17,000 727,587 10,252
Perryville, MO
------------------------------------------------------------------------------
2,865 $110,943,029 $6,400,155 $119,411,383 $22,796,180
==============================================================================
</TABLE>
<PAGE>
<TABLE>
GROSS AMOUNT AT WHICH CARRIED AT DECEMBER 31, 1996
-------------------------------------------------------
<CAPTION>
LIFE ON
BUILDINGS WHICH
AND ACCUMULATED DATE DEPRECIATION
IS
LAND AND COMPUTED DATE
DESCRIPTION IMPROVEMENTS IMPROVEMENTS TOTAL DEPRECIATION BUILT (YEARS) ACQUIRED
Low and Moderate
Income Apartment Complexes
<S> <C> <C> <C> <C> <C> <C> <C>
Barrington $32,011 $795,733 $827,744 $201,956 1927 various 12/31/87
Manor
Fargo, ND
Bingham Housing 48,934 1,393,406 1,442,340 295,247 1988 various 12/30/87
Associates
Bingham, ME
Birmingham 61,900 1,355,511 1,417,411 287,472 1988 various 12/30/87
Village
Randolph, ME
Bittersweet 69,300 3,258,789 3,328,089 1,049,353 1988 various 10/27/87
Lane
Randolph , MA
Coronodo Courts 452,331 5,045,552 5,497,883 1,643,651 1945 various 12/18/87
Douglas, AZ
Elmore Hotel 12,500 3,491,931 3,504,431 1,156,586 1917 various 12/22/87
Great Falls, MT
Graver Inn 40,914 3,041,508 3,082,422 787,552 1917 various 12/31/87
Fargo, ND
Hazel Winthrop 45,000 2,429,882 2,474,882 605,153 1910 various 12/30/87
Apartments
Chicago, IL
Hughes 29,008 1,517,476 1,546,484 388,378 1926 various 12/31/87
Apartments
Mandan, ND
Lakeview Heights 217,588 3,045,546 3,263,134 912,147 1972 various 12/30/87
Clearfield, UT
Medford Hotel 12,500 4,611,076 4,623,576 1,185,528 1915 various 12/22/87
Medford, OR
Heritage View 64,800 1,377,511 1,442,311 295,988 1988 various 12/30/87
New Sweden, ME
Rolling Green 286,350 6,370,027 6,656,377 2,282,081 1974 various 09/30/87
Apartments
Edmond, OK
Sierra Pointe 336,087 9,055,462 9,391,549 3,386,514 1973 various 09/30/87
Apartments
Aurora, CO
Terrace Apartments 350,000 6,195,421 6,545,421 2,323,000 1970 various 11/20/87
Oklahoma City, OK
Trenton Apartments 154,000 1,000,286 1,154,286 289,259 1925 various 12/30/87
Salt Lake City, UT
Windsor Court 280,000 5,323,584 5,603,584 1,979,771 1974 various 12/30/87
Apartments
Aurora, CO
Sierra Vista 434,866 8,073,023 8,507,889 3,023,674 1963 various 09/01/87
Las Vegas, NV
Willow Peg 125,000 1,744,779 1,869,779 585,144 1989 various 03/01/88
Village
Ricon, GA
Pebble Creek 734,800 9,760,416 10,495,216 2,269,210 1977/81 various 06/20/88
Arlington, TX
</TABLE>
<PAGE>
<TABLE>
GROSS AMOUNT AT WHICH CARRIED AT DECEMBER 31, 1996
-------------------------------------------------------
<CAPTION>
LIFE ON
WHICH
BUILDINGS DEPRECIATION
LAND AND AND ACCUMULATED DATE IS DATE
COMPUTED
DESCRIPTION IMPROVEMENTS IMPROVEMENTS TOTAL DEPRECIATION BUILT (YEARS) ACQUIRED
Low and Moderate
Income Apartment Complexes
<S> <C> <C> <C> <C> <C> <C> <C>
Pine Village 40,000 1,149,698 1,189,698 373,763 1988 various 03/01/88
Pine Mountain, GA
Talbot Village 21,120 790,733 811,853 203,225 1988 various 03/01/88
Talbolton, GA
Logan Plaza 969,289 13,628,418 14,597,707 3,106,024 1988 various 05/10/88
New York, NY
Cass House 222,000 11,471,119 11,693,119 3,356,680 1988 various 06/08/88
Boston, MA
Verdean Gardens 214,992 10,933,968 11,148,960 3,022,801 1989 various 05/31/88
New Bedford, MA
Country Estates 22,500 734,409 756,909 262,366 1988 various 03/01/88
Glenville, GA
Boulevard 318,000 14,458,791 14,776,791 4,243,111 1920 various 07/14/88
Commons
Chicago, IL
Chestnut Lane 93,322 1,735,462 1,828,784 540,885 1989 various 08/01/88
Newman, GA
600 Dakota 63,670 806,829 870,499 186,336 1988 various 10/01/88
Properties
Wahpeton, ND
Duluth 24,000 377,024 401,024 92,310 1989 various 10/01/88
Souix Falls, SD
Delmar 75,000 518,423 593,423 165,797 1988 various 10/01/88
Gillette, WY
Park Terrace 393,713 4,942,446 5,336,159 1,479,509 1989 various 01/20/89
Dundalk, MD
Brentwood Manor II 44,980 1,128,165 1,173,145 438,101 1971 various 01/20/89
Nashua, NH
Hillcrest Apts 17,000 737,839 754,839 205,252 1989 various 03/31/89
3
Perryville, MO
-------------------------------------------------------
$6,307,475 $142,300,243 $148,607,718 $42,623,824
=======================================================
</TABLE>
(1) The aggregate cost for Federal Income Tax purposes is approximately $
148,608,000.
* 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>
<TABLE>
<CAPTION>
Summary of property owned and accumulated depreciation:
<S> <C>
Property Owned December 31, 1996 Accumulated Depreciation December 31, 1996
- --------------------------------------------------------- --------------------------------------------
Balance at beginning of period $148,106,716 Balance at beginning of $38,028,894
period
Additions during period: Additions during period:
Other 18,812 Depreciation 4,594,930
acquisitions
------------------
Improvements 512,563 Balance at close of $42,623,824
etc. period
------------ ==================
531,375
Deductions during period:
Cost of real estate and (30,373)
fixed assets sold
Reclassification to 0
intangible assets
------------
(30,373)
-------------
Balance at close of period $148,607,718
=============
Property Owned December 31, 1995 Accumulated Depreciation December 31, 1995
- --------------------------------------------------------- --------------------------------------------
Balance at beginning of period $147,713,079 Balance at beginning of $34,318,321
period
Additions during period: Additions during period:
Other 8,571 Depreciation 3,710,573
acquisitions
------------------
Improvements 659,703 Balance at close of $38,028,894
etc. period
------------ ==================
668,274
Deductions during period:
Cost of real estate and (274,637)
fixed assets sold
Reclassification to 0
intangible assets
------------
(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 $29,420,795
period
Additions during period: Additions during period:
Other 27,064 Depreciation 4,897,526
acquisitions
------------------
Improvements 228,450 Balance at close of $34,318,321
etc. period
------------ ==================
255,514
Deductions during period:
Cost of real estate and (750,363)
fixed assets sold
Reclassification to 0
intangible assets
------------
(750,363)
-------------
Balance at close of period $147,713,079
=============
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
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, 1996 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, 1996, 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 17, 1997 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 17, 1997
<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]
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]
[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
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, 1996, 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.
We were unable to reconcile the confirmation received from HUD of the balance of
the mortgage, escrows, and mortgage interest paid as reflected on the balance
sheet and income statement as of and for the year ended December 31, 1996. We
were unable to obtain satisfactory corroborating information from other sources
or through alternative procedures.
In our opinion, except for the effects of such adjustments, if any, as might
have been determined to be necessary had we been able to corroborate the
recorded balance of the mortgage payable, mortgage escrows and mortgage interest
paid as referred to in the preceding parargraph, the financial statements
referred to above presently 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, 1996, and the results of its operations and its
cash flows for the year then ended in conformity with generally accepted
accounting principles.
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 7 to the financial statements,
the Partnership has incurred substantial losses from operations, had negative
working capital at December 31, 1996, and was several months delinquent on its
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 7. The financial statements do not include
any adjustments that might result from the outcome of this uncertainty.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supporting data required by HUD
presented on pages 13 - 21 are 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
Rockville, Maryland
January 12, 1997
<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]
[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, 1996, and the related statements of
changes in partners' equity (deficiency) (MHFA Forms F.C. -2A) 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, 1996, and the results of its operations, its cash
flows and changes in partners' equity (deficiency) for the year then ended in
conformity with generally accepted accounting principles.
/s/ Ziner & Company, P.C.
January 27, 1997
<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
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, 1996, 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
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 Verdean Gardens Associates
Limited Partnership as of December 31, 1996, 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 27, 1997
<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, 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]
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, 1996 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 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, 1996 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 January 22, 1997 on my consideration of Medford Hotel Associates Limited
Partnership's internal control structure and a report dated Janaury 22, 1997 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
January 22, 1997
<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
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, 1996 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 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 Oregon Landmark-Three Limited
Partnership at December 31, 1996 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 January 22, 1997 on my consideration of Oregon Landmark-Three Limited
Partnership's internal control structure and a report dated January 22, 1997 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
January 22, 1997
<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, 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
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]
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, 1996 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 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, 1996, 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, 1997, on our
consideration of Trenton Apartments, Ltd. (a limited partnership) (HUD Project
No. 105-94006) internal control structure and reports dated January 16, 1997, 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 15 to 22) 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, 1997
<PAGE>
[Letterhead]
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, changes in 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>
[Letterhead]
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, changes in 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>
[Letterhead]
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, 1996
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 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,
1996, 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 23, 1997, on our
consideration of Lakeview Heights Apartments, Ltd's. (a limited partnership)
(HUD Project No. 105-94007) internal control structure and reports dated January
23, 1997, 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 22) 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 23, 1997
<PAGE>
[Letterhead]
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>
[Letterhead]
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>
[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]
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]
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]
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] VMcHC&S Vroman, McGowen, Hurst, Clark & Smith, P.C.
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, 1996 and 1995, and
the related statements of profit and loss, partners' capital (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 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, 1996 and 1995, and the results of its operations,
changes in partners' capital (deficit) 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 4, 1997, on our
consideration of the Partnership's internal control structure and reports, also
dated February 4, 1997, on its compliance 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 4, 1997
Other Auditor information:
Lead Auditor - Donald R. Smith
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, 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] Freedberg, Derba & Tardiff, P.C.
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, 1996, 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, 1996, 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 12, 1997 on our consideration of MB Bittersweet Associates
Limited Partnership's internal control structure and on its compliance with laws
and regulations.
/s/ Freedberg , Derba & Tardiff, P.C.
February 12, 1996
<PAGE>
[Letterhead]
[LOGO] Freedberg, Derba & Tardiff, P.C.
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, Derba & Tardiff, P.C.
February 13, 1996
<PAGE>
[Letterhead]
[LOGO] Freedberg, Derba & Tardiff, P.C.
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, Derba & Tardiff, P.C.
February 14, 1995
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
INDEPENDENT AUDITOR'S REPORT
The Partners
Hughes Apartments Limited Partnership
Boston, Massachusetts
We have audited the accompanying balance sheets of Hughes Apartments Limited
Partnership as of December 31, 1996 and 1995, 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 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, 1996 and 1995, 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 18, 1997
<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.
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, 1996 and 1995, 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, 1996 and 1995, 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 18, 1997
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
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.
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, 1996, 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, 1996, 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 18, 1997; on our
consideration of Duluth Limited Partnership's internal control structure and
reports dated January 18, 1997, 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 18, 1997
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
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.
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]
[LOGO]
Charles Bailly & Company P.L.L.P.
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, 1996 and 1995, 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, 1996 and 1995, 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 18, 1997
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
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.
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, 1996 and 1995, 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, 1996 and 1995, 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 18, 1997
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
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]
FLOYD & COMPANY
Certified Public Accountant
306 Commercial Drive, Suite 202 Post Office Box 14251
Savannah, Georgia 31406 Savannah, Georgia 31416
Phone: (912) 355-9969
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, 1996 and the
related statements of operations, partners' equity (deficit) and cash flows for
the year then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
The financial statement information for the year ending December 31, 1995 was
audited by another independent certified public accountant who expressed and
unqualified opinion dated March 16, 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. 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, 1996 and the
results of its operations and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
Floyd & Company, CPA
/s/R. Doug Floyd
February 28, 1997
<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]
FLOYD & COMPANY
306 Commercial Drive, Suite 202 Post Office Box 14251
Savannah, Georgia 31406 Savannah, Georgia 31416
Phone: (912) 355-9969
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, 1996 and the related statements
of operations, partners' equity (deficit) and cash flows for the year then
ended. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
The financial statement information for the year ending December 31, 1995 was
audited by another independent certified public accountant who expressed and
unqualified opinion dated March 16, 1996.
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 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 Glennville Properties (a
Georgia Limited Partnership) as of December 31, 1996 and the results of its
operations and its cash flows for the year then ended in conformity with
generally accepted accounting principles.
Floyd & Company, CPA
/s/R. Doug Floyd
February 28, 1997
<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]
FLOYD & COMPANY
306 Commercial Drive, Suite 202 Post Office Box 14251
Savannah, Georgia 31406 Savannah, Georgia 31416
Phone: (912) 355-9969
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, 1996 and the
related statements of operations, partners' equity (deficit) and cash flows for
the year then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
The financial statement information for the year ending December 31, 1995 was
audited by another independent certified public accountant who expressed and
unqualified opinion dated March 16, 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. 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, 1996 and the
results of its operations and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
Floyd & Company, CPA
/s/R. Doug Floyd
February 28, 1997
<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]
FLOYD & COMPANY
306 Commercial Drive, Suite 202 Post Office Box 14251
Savannah, Georgia 31406 Savannah, Georgia 31416
Phone: (912) 355-9969
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, 1996 and the
related statements of operations, partners' equity (deficit) and cash flows for
the year then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
The financial statement information for the year ending December 31, 1995 was
audited by another independent certified public accountant who expressed and
unqualified opinion dated March 16, 1996.
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 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 Talbot Village Limited
Partnership (a Georgia Limited Partnership) as of December 31, 1996 and the
results of its operations and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
Floyd & Company
/s/R. Doug Floyd
February 28, 1997
<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]
FLOYD & COMPANY
306 Commercial Drive, Suite 202 Post Office Box 14251
Savannah, Georgia 31406 Savannah, Georgia 31416
Phone: (912) 355-9969
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, 1996 and the
related statements of operations, partners' equity (deficit) and cash flows for
the year then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
The financial statement information for the year ending December 31, 1995 was
audited by another independent certified public accountant who expressed and
unqualified opinion dated March 16, 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. 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, 1996 and the
results of its operations and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
Floyd & Company
/s/R. Doug Floyd
February 28, 1997
<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]
[Logo] macdonaldpage
Independent Auditors' Report
February 4, 1997
Bingham Family Housing Associates
224 Maine Avenue
Gardiner, Maine
We have audited the accompanying balance sheet of Bingham Family Housing
Associates (a limited partnership) as of December 31, 1996, 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 as of December 31, 1996, and the results of its operations and its
cash flows for the year then ended in conformity with generally accepted
accouting principles.
/s/ Macdonald Page & Co.
Certified Public Accountants
<PAGE>
[Letterhead]
[Logo] macdonaldpage
Independent Auditors' Report
February 14, 1996
Bingham Family Housing Associates
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 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.
/s/ Macdonald Page & Co.
Certified Public Accountants
<PAGE>
[Letterhead]
[Logo] macdonaldpage
Independent Auditors' Report
February 10, 1995
Bingham Family Housing Associates
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 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
Independent Auditors' Report
February 4, 1997
Birmingham Housing Associates
224 Maine Avenue
Gardiner, Maine
We have audited the accompanying balance sheet of Birmingham Housing Associates
(a limited partnership) as of December 31, 1996, 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
as of December 31, 1996, and the results of its operations and its cash flows
for the year then ended in conformity with generally accepted accounting
principles.
/s/ Macdonald Page & Co.
Certified Public Accountants
<PAGE>
[Letterhead]
[Logo] macdonaldpage
Independent Auditors' Report
February 14, 1996
Birmingham Housing Associates
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
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.
/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
Independent Auditors' Report
February 4, 1997
New Sweden Housing Associates
224 Maine Avenue
Gardiner, Maine
We have audited the accompanying balance sheet of New Sweden Housing Associates
(a limited partnership) as of December 31, 1996, 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
as of December 31, 1996, and the results of its operations and its cash flows
for the year then ended in conformity with generally accepted accounting
principles.
/s/ Macdonald Page & Co.
Certified Public Accountants
<PAGE>
[Letterhead]
[Logo] macdonaldpage
Independent Auditors' Report
February 14, 1996
New Sweden Housing Associates
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
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.
/s/ Macdonald Page & Co.
Certified Public Accountants
<PAGE>
[Letterhead]
Independent Auditors' Report
February 10, 1995
New Sweden Housing Associates
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 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]
Haran & Associates Ltd
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, 1996 and 1995, 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, 1996 and 1995, and its profit or 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 February 5, 1997, on our consideration of HAZEL-WINTHROP APARTMENTS
internal control structure and reports dated February 5, 1997, on its compliance
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 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 (847) 853-2580
February 5, 1997
<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]
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, 1996 and 1995, 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, 1996 and 1995, 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
January 8, 1997
<PAGE>
[Letterhead]
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>
[Letterhead]
Marks Shron & Company, LLP
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, 1996 and 1995, and the related statements of income, changes
in 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 U.
S. 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 Logan Plaza Associates at December
31, 1996 and 1995, and the results of its opertaions, 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 , Office of Inspector General in July 1993, we have also
issued
reports dated January 21, 1997 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 supplementary
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 21, 1997
<PAGE>
[Letterhead]
Marks Shron & Company, LLP
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 U.
S. 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]
Michael Sczekan & Co., P.C.
INDEPENDENT AUDITOR'S REPORT
To the Owners of HUD Field Office
Delmar Housing Associates Limited Partnership Denver, Colorado
Yuma, Arizona
We have audited the accompanying Balance Sheet of Delmar Housing Associates
Limited Partnership, FHA Project Number 109-94004 REF, as of December 31, 1996,
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, 1996 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 14, 1997, on our consideration of Delmar Housing Associates
Limited Partnership's internal control structure and a report dated February 14,
1997, 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 14, 1997
<PAGE>
[Letterhead]
Michael Sczekan & Co., P.C.
INDEPENDENT AUDITOR'S REPORT
To the Owners 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.
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]
[Logo] Reznick Fedder & Silverman
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, 1996, and the related statements of profit and
loss (on HUD Form No. 92410), partners' equity (deficit) and cash flows for the
year then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Heritage Court Limited
Partnership as of December 31, 1996, and the results of its operations, changes
in partners' equity (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 19 through 33
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.
<PAGE>
In accordance with Government Auditing Standards and the Consolidated Audit
Guide for Audits of HUD Programs, we have also issued a report dated January 6,
1997, 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 6, 1997 Identification Number:
52-1088612
Audit Principal: William T. Riley, Jr.
<PAGE>
[Letterhead]
[Logo] Reznick Fedder & Silverman
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
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]
MUELLER, WALLA & ALBERTSON, P.C.
INDEPENDENTS 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, 1996, 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 1996 financial statements referred to above present fairly,
in all material respects, the financial position of Perryville Associates, I,
L.P. as of December 31, 1996, 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 1995 financial statements were compiled by us and our report theron, dated
February 9, 1996, 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 & Albertson, P.C.
Mueller, Walla & Albertson, P.C.
Certified Public Accountants
January 21, 1997 1
MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
MISSOURI SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
<PAGE>
[Letterhead]
MUELLER, WALLA & ALBERTSON, P.C.
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 & Albertson, P.C.
Mueller, Walla & Albertson, P.C.
Certified Public Accountants
February 9, 1996
<PAGE>
[Letterhead]
MUELLER, WALLA & ALBERTSON, P.C.
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 & Albertson, P.C.
Mueller, Walla & Albertson, P.C.
Certified Public Accountants
February 6, 1995
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
AUDITED FINANCIAL STATEMENTS
AND OTHER FINANCIAL INFORMATION
DECEMBER 31, 1996
LEAD AUDITOR: Gerald R. Aronson, CPA
Aronson, Fetridge & Weigle
6116 Executive Blvd., Fifth Floor
Rockville, Maryland 20852
(301) 231-6200
Federal I.D.# 52-0987391
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
TABLE OF CONTENTS
TITLE PAGE
INDEPENDENT AUDITOR'S REPORT...........................................1 - 2
AUDITED FINANCIAL STATEMENTS
BALANCE SHEET ........................................... 3 - 4
STATEMENT OF PROFIT AND LOSS................... ....................5 - 6
STATEMENT OF PARTNERS' CAPITAL .....................................7
STATEMENT OF CASH FLOWS.............................................8
NOTES TO FINANCIAL STATEMENTS.......................................9 - 12
OTHER FINANCIAL INFORMATION
SUPPORTING DATA REQUIRED BY HUD....................................13 - 21
REPORT ON INTERNAL CONTROL STRUCTURE...............................22 - 23
REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS
APPLICABLE TO MAJOR HUD PROGRAMS................................24
REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENTS
APPLICABLE TO AFFIRMATIVE FAIR HOUSING..........................25
SCHEDULE OF FINDINGS AND QUESTIONED COSTS..........................26
AUDITOR'S COMMENTS ON AUDIT RESOLUTION MATTERS
RELATING TO HUD PROGRAMS........................................27
CERTIFICATE OF PARTNERS............................................28
MANAGEMENT AGENT CERTIFICATION.....................................29
<PAGE>
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
Fairfax, Virginia Fort Worth, Texas 76113-2905
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, 1996, 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.
We were unable to reconcile the confirmation received from HUD of the balance of
the mortgage, escrows, and mortgage interest paid as reflected on the balance
sheet and income statement as of and for the year ended December 31, 1996. We
were unable to obtain satisfactory corroborating information from other sources
or through alternative procedures.
In our opinion, except for the effects of such adjustments, if any, as might
have been determined to be necessary had we been able to corroborate the
recorded balance of the mortgage payable, mortgage escrows and mortgage interest
paid as referred to in the preceding paragraph, 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, 1996, and the results of its operations and its
cash flows 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 7 to the financial statements,
the Partnership has incurred substantial losses from operations, had negative
working capital at December 31, 1996, and was several months delinquent on its
mortgage payments. These factor 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.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supporting data required by HUD
presented on pages 13 - 21 are presented for purposes of additional analysis and
are 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/Arnson, Fetridge & Weigle
Rockville, Maryland
January 12, 1997
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
BALANCE SHEET
DECEMBER 31, 1996
ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
CURRENT ASSETS
Petty cash $ 300
Cash in bank 40,136
Other accounts receivable (Note 2) 143,134
Prepaid property and liability insurance 11,707
-------
Total current assets $ 195,277
DEPOSITS HELD IN TRUST-FUNDED
Tenant security deposits (contra) 35,535
RESTRICTED DEPOSITS AND FUNDED RESERVES
Mortgage escrow deposits (Note 3) 303,469
Reserve for replacement 45,370
-------
Total restricted deposits and funded reserves 348,839
FIXED ASSETS (NOTES 1 AND 4)
Land 734,800
Buildings and equipment 9,760,416
---------
Total fixed assets 10,495,216
Less: Accumulated depreciation (2,269,210)
---------
Net fixed assets 8,226,006
OTHER ASSETS
1900 Deferred financing costs, net of accumulated amortization
of $91,251
(Note 1) 379,710
---------
TOTAL ASSETS $ 9,185,367
</TABLE>
The accompanying Notes to Financial Statements are an integral part of these
financial statements.
<PAGE>
LIABILITIES AND PARTNERS' CAPITAL
<TABLE>
<CAPTION>
<S> <C> <C>
CURRENT LIABILITIES
Accounts payable and accrued expenses $127,611
Accrued real estate taxes 139,251
Accrued interest payable(Note 4) 765,391
Mortgage payable-current portion (Note 4) 7,945,275
Prepaid rents 1,051
--------
Total current liabilities $ 8,978,579
DEPOSIT LIABILITIES
Tenant security deposits (contra) 23,312
LONG-TERM LIABILITIES
Due to general partner (Note 5) 280,406
Due to affiliates (Note 5) 114,361
Due to limited partner (Note 5) 10,000
-------
Total long-term liabilities 404,767
---------
Total liabilities 9,406,658
PARTNERS'CAPITAL (221,291)
----------
TOTAL LIABILITIES AND PARTNERS' CAPITAL $ 9,185,367
==========
</TABLE>
<PAGE>
U.S. Department of Housing and Urban Development
Office of Housing Federal Housing Commissioner
STATEMENT OF PROFIT AND LOSS
For the Year Ended December 31, 1996
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 addressees.
For month /period Project Number Project Name
Beginning Ending 2225 New York Avenue
January 1, 1996 December 31, 1996 113-36607 T/A Pebble Creek
<TABLE>
<CAPTION>
<S> <C> <C>
Rental Income
Apartment or Member Carrying Charges (Coops) $ 371,200
Tenant Assistance Payments 1,855,520
Total Rent Revenue Potential at 100% Occupancy 2,226,720
Vacancies
Apartments (159,142)
Total Vacancies (159,142)
-------
Net Rental Revenue Less Vacancies 2,067,578
Interest Income - Project Operations 1,235
Income from investments - Reserves for Replacements 555
Total Financial Revenue 1,790
Other Revenue
Laundry and Vending 7,348
NSF and Late Charges 1,310
Damages and Cleaning Fees 20,510
Forfeited Tenant Security Deposits 2,100
Other Revenue (specify) pay telephone, misellaneous 7,562
Total Other Revenue 38,830
-------
Total Revenue 2,108,198
Administrative Expenses
Advertising 3,462
Other Administrative Expense 9,961
Office Salaries 67,079
Office Supplies 13,697
Management 84,030
Manager or Superintendent Salaries 35,822
Legal Expenses (Project) 2,654
Bookeeping Fees / Accounting Service 8,500
Telephone and Answering Service 8,972
Miscellaneous Administrative Expenses (specify) 12,899
Total Administrative Expenses 247,077
Electricity (Light and Misc. Power) 50,040
Water 171,387
Gas 28,348
Total Utilities Expense 249,775
</TABLE>
The accompanying notes are an integral part of the
financial statements.
<PAGE>
Limited Partnership 113-36607
<TABLE>
<CAPTION>
<S> <C> <C>
Janitor and Cleaning Supplies 106
Janitor and Cleaning Contract 9,626
Exterminating Payroll/ Contract 8,725
Garbage and Trash Removal 18,517
Security Payroll/ Contract 68,385
Grounds Payroll 17,697
Grounds Contract 24,656
Repairs Payroll 95,170
Repairs Material 328,673
Repairs Contract 39,338
Elevator Maintenance / Contract 6,486
Heating/ Cooling Repairs and Maintenance 22,019
Swimming Pool Maintenance/ Contract 8,316
Decorating Payroll/ Contract 15,031
Total Operating and Maintenance Expenses 662,745
Real Estate Taxes 139,251
Miscellaneous Taxes, Licenses and Permits 17,508
Property and Liability Insurance (Hazard) 63,212
Health Insurance and Other Employee Benefits 40,074
Other Insurance (specify) 80
Total Taxes and Insurance 260,124
Interest on Mortgage Payable 852,610
Mortgage Insurance Premium /Service Charge 39,752
Miscellaneous Financial Expenses 11,776
Total Financial Expenses 904,138
Total Cost of Operations Before Depreciation 2,323,859
Profit (Loss) before Depreciation (215,661)
Depreciation (Total) 238,223
Operating Profit or (Loss) (453,884)
Net Profit or (Loss) (453,884)
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 26,312
2. Replacement Reserve deposits required by the Regulatory
Agreement or Amendments thereto, even if payments may be
temporarily suspended or waived 32,520
</TABLE>
The accompanying notes are an integral part of the
financial statements.
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
STATEMENT OF PARTNERS' CAPITAL
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Limited
Partner
Boston
Financial
General Qualified
Partner Investment
GCJM, Inc. L.P. Total
BALANCE,BEGINNING OF YEAR $ (23,017) $ 255,610 $ 232,593
NET LOSS (4,539) (449,345) (453,884)
-------- --------- ---------
BALANCE $ (27,556) $ (193,735) $ (221,291)
</TABLE>
The accompanying Notes to Financial Statements are an integral part of these
financial statements.
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (453,884)
Adjustments to reconcile net loss to net cash
provided by operating activities
Depreciation and Amortization 249,998
Interest earned and maintained in replacement reserve (555)
Decrease in tenant accounts receivable 6,588
Increase in other receivables (141,839)
Decrease in prepaid property and liability insurance 16,526
Decrease in prepaid mortgage insurance 9,939
Increase in mortgage escrow deposits (138,376)
Decrease in insurance proceeds 39,696
Decrease in accounts payable and accrued expenses (46,542)
Increase in accrued interest payable 480,575
Decrease in prepaid rents (2,594)
Decrease in accrued real estate taxes (13,837)
Increase in security deposit escrow (net) (8,464)
-------
Net cash used by operating activities (2,769)
CASH FLOWS FROM INVESTING ACTIVITIES
Transfer from replacement reserve 5,420
Purchase of fixed assets (3,438)
-----
Net cash flows provided by investing activities 1,982
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on mortgage payable (6,150)
Advances from limited partner 10,000
------
Net cash flow provided by financing activities 3,850
-----
NET INCREASE IN CASH 3,063
CASH, BEGINNING OF YEAR 37,373
------
CASH, END OF YEAR $ 40,436
SUPPLEMENTAL CASH FLOW INFORMATION
Actual cash payments for:
Interest $ 372,035
</TABLE>
The accompanying Notes to Financial Statements are an integral part of these
financial statements.
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
(A) Organization
The Partnership was organized as a limited partnership in
December 1987 to acquire an interest in real property located in the
State of Texas and to construct and operate thereon an apartment
complex of 352 units, 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.
Ninety-five percent of the units are subsidized under Section 8
of the National Housing Act of 1937. This act provides that assistance
be made available to low income persons, including, but not limited
to, the elderly, handicapped and disabled. Assisted tenants pay no
less than 10% of their adjusted annual gross income and no more than
30% of their adjusted monthly income as rental payments and the
Department of Housing and Urban Development (HUD) contracts to pay the
difference.
(B) 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 disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of
revenues and expenses during the reporting period. Actual results
could differ from those estimates.
(C) Fixed assets
The land, buildings and equipment are recorded at original cost
to the Partnership, which includes all costs of the purchase and
renovation of the project and construction period interest and taxes.
Depreciation is provided using the straight-line method over the
estimated useful lives of the assets of 40 years for the building and
five years for the equipment.
For income tax reporting purposes, fixed assets are being
depreciated using the Modified ACRS method allowed by the Internal
Revenue Code, over the predetermined lives of 7 to 27.5 years.
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(D) Deferred financing costs
In 1988, the Partnership paid $470,961 in financing costs to
obtain an FHA-insured mortgage loan. These financing costs have been
deferred and are being amortized on the straight-line method over the
life of the mortgage loan which is 40 years.
(E) Income taxes
For Federal and state income tax purposes, the Partners report
on their separate income tax returns their respective shares of the
Partnership income or loss for each accounting period. Accordingly,
accruals for income taxes have not been reflected in the accompanying
financial statements. Income or loss of the Partnership is allocated
1% to the General Partner and 99% to the Limited Partner.
NOTE 2 - OTHER ACCOUNTS RECEIVABLE
This amount represents the October 1996 subsidy payment due from
Arlington Housing Authority, the administrator for HUD under the HAP contract.
The payment was withheld until required repairs on Pebble Creek Apartments were
performed. The repairs were completed in January 1997. It is the opinion of
management that all repairs were satisfactorily performed and the payment will
be forthcoming.
NOTE 3 - MORTGAGE ESCROW DEPOSITS
The Partnership has the following escrow balances at December 31,
1996:
<TABLE>
<CAPTION>
<S> <C>
Real estate taxes $ 185,308
Flood insurance 5,031
Unapplied escrows 91,503
FHA mortgage insurance premium 21,627
------
Total $ 303,469
</TABLE>
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
NOTE 4 - MORTGAGE PAYABLE
The 10.75% mortgage note payable is insured by HUD and is payable in
monthly installments of $73,263 including interest through March 1, 2029. The
land and buildings of the apartment project are pledged as collateral for the
note. In addition, the note agreement requires that escrows for taxes, insurance
and replacement of project assets be maintained and funded monthly as a part of
the note payment.
The mortgage is currently delinquent and is in default. The delinquent
interest due on the loan is approximately $765,391 and delinquent principal
approximately $26,312. The Partners are attempting to restructure the existing
loan under more favorable terms that will enable them to bring the loan to a
current basis (See Note 7).
The current monthly payment requirement is as follows:
<TABLE>
<CAPTION>
<S> <C>
Principal and interest $ 73,590
Cash replacement reserve 2,710
Insurance escrow 2,942
Real estate tax escrow 13,395
Service charge 3,302
------
Total $ 95,939
</TABLE>
The aggregate amount of annual maturities of the mortgage note
assuming the loan is brought current, are as follows:
<TABLE>
<CAPTION>
<S> <C>
Year Ending
December 31 Amount
1997 $ 55,596
1998 32,592
1999 36,274
2000 40,371
2001 44,931
Thereafter 7,735,511
---------
Total $ 7,945,275
</TABLE>
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
NOTE 5 - RELATED PARTY TRANSACTIONS
The general partner and/or its stockholders have advanced $280,406 to
the Partnership from time to time to cover working capital needs. The limited
partner advanced $10,000 in 1996 to cover operating shortfalls.
These advances are noninterest-bearing and have no fixed repayment terms.
Affiliates of the Partnership have also advanced funds and provided
services to the Partnership. A summary of amounts due to affiliates at December
31, 1996 is as follows:
<TABLE>
<CAPTION>
<S> <C>
Due to affiliates
Loan $ 2,200
Note 14,000
Accrued interest 9,126
Accounting services 89,035
-------
Total $ 114,361
</TABLE>
NOTE 6 - HOUSING ASSISTANCE PAYMENT CONTRACT AGREEMENT
The Federal Housing Administration (FHA) has contracted with the
Partnership, under Section 8 of Title II of The Housing and Community
Development Act of 1974, to make housing assistance payments to the Partnership
on behalf of qualified tenants. The Partnership earned rental assistance
payments from HUD in the amount of approximately $1,855,000 during the year
ended December 31, 1996.
NOTE 7 - PARTNERSHIP STATUS AND MANAGEMENT'S PLAN
At December 31, 1996, the Partnership's current liabilities exceeded
its current assets and mortgage escrow deposits available for the payment of
current liabilities by approximately $600,000 and the Partnership is delinquent
in its mortgage payments. Additionally, the Partnership experienced a net loss
of $453,884 for the year ended December 31, 1996. As discussed in Note 4, the
Partnership has filed a work out plan dated January 1, 1997 with HUD and is
attempting to refinance the existing HUD loan to 8.5%, a rate which management
believes the property can support, and to obtain relief on the arrearage in
payments.
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
SUPPORTING DATA REQUIRED BY HUD
DECEMBER 31, 1996
SUPPLEMENTAL INFORMATION FOR STATEMENT OF PROFIT AND LOSS HUD FORM 92410
Miscellaneous Administrative expenses - Account 6390
<TABLE>
<CAPTION>
<S> <C>
Source Amount
Postage $ 281
Travel 294
Employee training 653
Other administrative expenses 11,671
------
Tota1 $ 12,899
</TABLE>
Refer to Independent Auditor's Report.
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
SUPPORTING DATA REQUIRED BY HUD
DECEMBER 31, 1996
ACCOUNTS AND NOTES RECEIVABLE (OTHER THAN FROM REGULAR TENANTS):
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Name of Borrower Original Original Balance
Date Terms Amount Due
Arlington Housing
Authority 10/96 None $143,134 $143,134
</TABLE>
MORTGAGE ESCROW DEPOSITS:
<TABLE>
<CAPTION>
<S> <C>
Estimated amount required for future payment of:
City, state and county taxes $ 139,251
Property insurance 35,121
Mortgage insurance 69,566
------
Total 243,938
Excess on deposit to cover estimated requirements 59,531
Total per mortgagor's books (not reconciled ------
to confirmation from HUD) $ 303,469
</TABLE>
TENANT SECURITY DEPOSITS:
Tenant security deposits are held in a separate bank account in the name of the
project.
Refer to Independent Auditor's Report.
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
SUPPORTING DATA REQUIRED BY HUD
DECEMBER 31, 1996
CASH REPLACEMENT RESERVES:
In accordance with the provisions of the Regulatory Agreement, restricted cash
is to be used for replacement of property with the approval of HUD as follows:
<TABLE>
<CAPTION>
Amount
<S> <C>
Balance, January 1, 1996 $ 50,235
Monthly deposits -
Interest earned 555
Transfers to other escrow accounts (5,420)
-----
Balance, December 31, 1996,
confirmed by mortgagee $ 45,370
</TABLE>
Refer to Independent Auditor's Report.
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
SUPPORTING DATA REQUIRED BY HUD
DECEMBER 31, 1996
ACCOUNTS PAYABLE (OTHER THAN TRADE CREDITORS):
None.
ACCRUED TAXES (ACCOUNT 2150):
Tarrant County, Texas Due 1/31/97 $139,251
COMPENSATION TO PARTNERS:
No compensation was paid to the Partners for the year ended December 31, 1996.
UNAUTHORIZED DISTRIBUTION OF PROJECT REVENUE:
None.
IDENTITY OF INTEREST:
The general partner and/or its stockholders and affiliates have advanced money
to the partnership from time to time to cover working capital needs. These
advances total $280,406 and $114,361 at December 31, 1996. The limited partner
advanced $10,000 in 1996 to cover working capital needs. There are no fixed
repayment terms.
Refer to Independent Auditor's Report.
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
SUPPORTING DATA REQUIRED BY HUD
STATEMENT OF RECEIPTS AND DISBURSEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
<S> <C> <C>
SOURCE OF FUNDS
Operations
Revenue
Rental 1,969,426
Interest income 1,790
Other income 38,830 $ 2,010,046
Expenses
Administrative expen 60,146
Management fees 84,030
Operating and maintenance expenses 504,280
Operating and maintenance payrolls 307,906
Utilities 249,775
Taxes - real estate 153,088
Taxes - other 17,508
Insura 86,839
Interest on building 372,035
Mortgage insurance 29,813 1,865,420
----------
Cash provided by operations before amortization 144,626
Amortization of mortgage principal (6,150)
----------
Cash provided by operations after amortization 138,476
Other sources:
Decrease in replacement reserve account 4,865
Increase in mortgage escrows (138,376)
Increase in security deposit escrows (8,464)
Advances from limited partners 10,000 (131,975)
----------
Total sources of funds 6,501
APPLICATION OF FUNDS
Purchase of fixed assets (3,438)
----------
INCREASE IN CASH 3,063
CASH AT BEGINNING OF YEAR 37,373
----------
CASH AT END OF YEAR $ 40,436
</TABLE>
Refer to Independent Auditor's Report.
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
SUPPORTING DATA REQUIRED BY HUD
STATEMENT OF RECEIPTS AND DISBURSEMENTS (CONTINUED)
DECEMBER 31, 1996
(1) Detail of other income
<TABLE>
<CAPTION>
<S> <C>
Source Amount
NSF and late charges $ 1,310
Laundry and vending income 7,348
Tenant damage payment 20,510
Pay telephone income 4,698
Forfeited deposits 2,100
Miscellaneous 2,864
------
Total $ 38,830
</TABLE>
(2) Cash and temporary cash investments at year end consisted of:
<TABLE>
<CAPTION>
<S> <C> <C>
Bank/Account Type of
Name Account Amount
N/A Petty/cash $ 300
NationsBank, 2225 NY Avenue, Ltd Checking 39,302
Riggs Bank, 2225 NY Avenue, Ltd Checking 834
$ 40,436
</TABLE>
Refer to Independent Auditor's Report.
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
SUPPORTING DATA REQUIRED BY HUD
DECEMBER 31, 1996
SCHEDULE OF CHANGES IN FIXED ASSETS FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Assets Accumulated Depreciation Net
Balance Balance, Balance, Balance, Book Value
January December January Current Deductions December December
1, 1996 Additions Deductions 31, 1996 31, 1996 Provisions 31, 1996
Land $ 734,800 $ - $ - $ 734,800 $ - $ - $ - $ - $ 734,800
Building and
equipment 9,756,978 3,438 - 9,760,416 2,030,987 238,233 - 2,269,210 7,491,206
----------- ------- ------- -------- -------- -------- -------- --------- --------
Total $ 10,491,778 $ 3,438 $ - $ 10,495,216 $ 2,030,987 $ 238,233 $ - $ 2,269,210 $8,226,006
</TABLE>
Refer to Independent Auditor's Report
<PAGE>
Computation of Surplus Cash, U.S. Department of Housing
Distributions and Residual and Urban Development
Receipts Office of Housing
Federal Housing Commissioner
Project Name Fiscal Period Ended Project Number
2225 New York Avenue
T/A Pebble Creek Apts December 31, 1996 113-36607
<TABLE>
<CAPTION>
<S> <C> <C>
Cash 75,971
(a) Total Cash 75,971
Accrued mortgage interest payable 765,391
Delinquent mortgage principal payments 26,312
Delinquent deposits to reserve for replacements 40,650
Accounts payable (due within 30days) 127,611
Prepaid rents 1,051
Tenant security deposits liability 23,312
(b) Less Total Current Obligations 984,327
(c) Surplus Cash (Deficiency) (Line (a)minus Line (b)) (908,356)
</TABLE>
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
SUPPORTING DATA REQUIRED BY HUD
DECEMBER 31, 1996
SCHEDULE OF FUNDS IN FINANCIAL INSTITUTIONS AS OF DECEMBER 31, 1996
<TABLE>
<CAPTION>
<S> <C>
A. Funds Held by Mortgagor, Regular Operating Account:
1.Riggs National Bank, (checking)1 834
2.NationsBank,checking)2 39,302
3.Imprest petty cash fund 300
------
Operating Account, Sub-Total 40,436
B. Funds Held by Mortgagor in trust,Tenant
Security Deposit:
1.NationsBank, (money market)2 35,535
------
Funds Held by Mortgagor, total 75,971
C.Funds Held by Mortgagee,(in trust)
1.Tax, Insurance and MIP escrow,(checking)4 303,469
2.Reserve Fund for replacements 45,370
-------
Funds Held by Mortgagee, total 348,839
--------
TOTAL FUNDS IN FINANCIAL INSTITUTIONS $424,810
========
</TABLE>
1 Balance confirmed by Riggs National Bank, January 7, 1997
2 Balance confirmed by NationsBank, January 29, 1997
3 Balances confirmed by Data Prompt, Inc., January 18, 1997
4 The balance confirmed by Data Prompt, Inc., January 18, 1997 was
$200,928, which does not agree with the Partnership's records which reflects
a balance of $303,469.
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL STRUCTURE
DECEMBER 31, 1996
Independent Auditor's Report on Internal Control Structure
The Partners HUD Field Office Director
2225 NEW YORK AVENUE, LTD. 1600 Thockmorton
T/A PEBBLE CREEK APARTMENTS P.O. Box 2905
Fairfax, Virginia Fort Worth, Texas 76113-2905
We have audited the financial statements of 2225 NEW YORK AVENUE, LTD. as of and
for the year ended December 31, 1996, and have issued our report thereon dated
January 12, 1997. We have also audited 2225 NEW YORK AVENUE, LTD.'s compliance
with requirements applicable to HUD-assisted programs and have issued our
reports thereon dated January 12, 1997.
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 the 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 audits to obtain reasonable assurance about whether
the financial statements are free of material misstatement and about whether
2225 NEW YORK AVENUE, LTD. complied with laws and regulations, noncompliance
with which would be material to a HUD-assisted program.
The management of 2225 NEW YORK AVENUE, LTD. 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.
<PAGE>
Independent Auditor's Report on Internal Control Structure (Continued)
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 2225 NEW YORK AVENUE, LTD. 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.
We performed tests of controls, as required by the Guide, to evaluate the
effectiveness of the design and operation of internal control structure policies
and procedures that we considered relevant to preventing or detecting material
noncompliance with specific requirements applicable to 2225 NEW YORK AVENUE,
LTD.'s major HUD-assisted programs. Our procedures were less in scope than would
be necessary to render an opinion on internal control structure policy and
procedures. Accordingly, we do not express such an opinion.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of one or more of the internal control structure elements does not
reduce to a relatively low level the risk that errors or irregularities in
amounts that would be material in relation to the financial statements being
audited may occur and not be detected within a timely period by employees in the
normal course of performing their assigned functions. We noted no matters
involving the internal control structure and its operation that we consider to
be material weaknesses as defined above.
This report is intended for the information of the partners, 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/Arnson,Fetridge & Weigle
Rockville, Maryland
January 12, 1997
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH SPECIFIC REQUIREMENT
APPLICABLE TO MAJOR HUD PROGRAMS
DECEMBER 31, 1996
Independent Auditor's Report on Compliance with Specific
Requirements Applicable to Major HUD Programs
The Partners HUD Field Office Director
2225 NEW YORK AVENUE, LTD. 1600 Thockmorton
T/A PEBBLE CREEK APARTMENTS P.O. Box 2905
Fairfax, Virginia Fort Worth, Texas 76113-2905
We have audited the financial statements of 2225 NEW YORK AVENUE, LTD. as of and
for the year ended December 31, 1996, and have issued our report thereon dated
January 12, 1997.
We have also audited 2225 NEW YORK AVENUE, LTD.'s compliance with the specific
program requirements governing management, maintenance, federal financial
reports, mortgage status, the replacement reserve, the residual receipts, tenant
applications, tenant eligibility, tenant recertification, tenant security
deposits, cash receipts and disbursements, and distributions to owners that are
applicable to each of its major HUD-assisted programs for the year ended
December 31, 1996. The management of 2225 NEW YORK AVENUE, LTD. is responsible
for compliance with those requirements. Our responsibility is to express an
opinion on compliance with those requirements based on our audit.
We conducted our audit 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 2225 NEW YORK AVENUE,
LTD.'s compliance with those requirements. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion, 2225 NEW YORK AVENUE, LTD. complied, in all material respects,
with the requirements described above that are applicable to each of its
HUD-assisted programs for the year ended December 31, 1996.
This report is intended for the information of the partners, 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/Arnson, Fetridge & Weigle
Rockville, Maryland
January 12, 1997
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
OPINION ON COMPLIANCE WITH SPECIFIC REQUIREMENTS
APPLICABLE TO AFFIRMATIVE FAIR HOUSING
DECEMBER 31, 1996
Independent Auditor's Report on Compliance with Specific
Requirements Applicable to Affirmative Fair Housing
The Partners HUD Field Office Director
2225 NEW YORK AVENUE, LTD. 1600 Thockmorton
T/A PEBBLE CREEK APARTMENTS P.O. Box 2905
Fairfax, Virginia Fort Worth, Texas 76113-2905
We have audited the financial statements of 2225 NEW YORK AVENUE, LTD. as of and
for the year ended December 31, 1996, and have issued our report thereon dated
January 12, 1997.
We have applied procedures to test 2225 NEW YORK AVENUE, LTD.'s compliance with
the Affirmative Fair Housing requirements applicable to its HUD-assisted
programs for the year ended December 31, 1996.
Our procedures were limited to the applicable compliance requirements described
in 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. Our procedures were substantially less in scope than an
audit, the objective of which would be the expression of an opinion on 2225 NEW
YORK AVENUE, LTD.'s compliance with the Affirmative Fair Housing requirements.
Accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance that are
required to be reported under the Guide.
This report is intended for the information of the partners, 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/Arnson Fetridge & Weigle
Rockville, Maryland
January 12, 1997
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
DECEMBER 31, 1996
Independent Auditor's Comments on Schedule of Findings and Questioned Costs
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
None
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
RESOLUTION MATTERS RELATING TO THE HUD PROGRAMS
SUPPLEMENTARY DATA
DECEMBER 31, 1996
Independent Auditor's Comments on Audit Resolution
Matters Relating to the HUD Programs
The Project took corrective action on findings from the prior audit report of
2225 NEW YORK AVENUE, LTD. (A Limited Partnership) T/A PEBBLE CREEK APARTMENTS,
FHA Project No. 113-36607 as follows:
Finding 1 - The management company does not have fidelity bond insurance
coverage equal to two months gross rent potential.
Status - The management company increased its fidelity bond coverage during the
year and is in compliance.
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
DECEMBER 31, 1996
CERTIFICATE OF PARTNERS
We hereby certify that we have examined the accompanying financial statements
and supplementary data of 2225 NEW YORK AVENUE, LTD. (A Limited Partnership) T/A
PEBBLE CREEK APARTMENTS, FHA Project No. 113-36607 and, to the best of our
knowledge and belief, the same is complete and accurate.
2225 NEW YORK AVENUE, LTD.
Federal Employer ID No. 52-1544472
Joshua A. Muss, President of GCJM, Inc.,
General Partner
<PAGE>
2225 NEW YORK AVENUE, LTD.
(A Limited Partnership)
T/A PEBBLE CREEK APARTMENTS
FHA PROJECT NO. 113-36607
DECEMBER 31, 1996
MANAGEMENT AGENT CERTIFICATION
We hereby certify that we have examined the accompanying financial statements
and supplemental data of 2225 NEW YORK AVENUE, LTD. and, to the best of our
knowledge and belief, the same is accurate and complete.
(Signature of Management Agent's
Representative)
Title
Lincoln Property Company
Date
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 453,264
<SECURITIES> 1,923,032
<RECEIVABLES> 000
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 000
<PP&E> 1,158,106
<DEPRECIATION> 000
<TOTAL-ASSETS> 8,369,107<F1>
<CURRENT-LIABILITIES> 000
<BONDS> 1,210,000
000
000
<COMMON> 000
<OTHER-SE> 6,945,688
<TOTAL-LIABILITY-AND-EQUITY> 8,369,107<F2>
<SALES> 000
<TOTAL-REVENUES> 435,791<F3>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 324,678<F4>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 118,095
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (2,048,112)<F5>
<EPS-PRIMARY> (40.55)
<EPS-DILUTED> 000
<FN>
<F1>Included in total assets is $4,709 of tenant security deposits, $4,645,508
of Investments in Local Limited Partnerships, $6,092 of replacement reserve
escrow, $10,230 of Mortgagee escrow deposits $86,209 in bond trusts, $48,369 of
deferred charges, and $33,588 of other assets. <F2>Included in total liability
and equity are $58,847 of minority interest in the Local Limited Partnership,
Accounts payable and accrued expenses of $46,346, Accounts payable to affiliate
of $34,790, Accrued interest of $68,819 and tenant security deposits payable of
$4,617. <F3>Total revenue includes $151,516 of investment revenue, $227,492 of
rental revenue, and $56,783 of other revenue. <F4>Included in other expenses is
an adjustment to the provision for valuation of investments in Local Limited
Partnerships of $(137,073), $100,691 of amortization, $207,292 of general and
administrative expenses, $42,547 of depreciation and $111,221 of rental
operations. <F5>Net income reflects Equity in losses of Local Limited
Partnerships of $2,041,502 and $372 of minority interest.
</FN>
</TABLE>
