November 12, 1997
Securities and Exchange Commission
Filer Support, Edgar
Operation Center, Stop 0-7
6432 General Green Way
Alexandria, VA 22312
Re: Boston Financial Qualified Housing Limited Partnership
Report on Form 10-Q for Quarter Ended September 30, 1997
File No. 0-16796
Dear Sir/Madam:
Pursuant to the requirements of Section 15(d) of the Securities Exchange Act
of 1934, filed herewith is a copy of subject report.
Very truly yours,
/s/Patricia Olsen-Goldberg
Patricia Olsen-Goldberg
Controller
QH1-10Q2.DOC
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act
of 1934
(Mark One)
[ X ]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended September 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
For Quarter Ended September 30, 1997 Commission file number 0-16796
------------------------- ---------
Boston Financial Qualified Housing Limited Partnership
(Exact name of registrant as specified in its charter)
Delaware 04-2947737
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) (Identification No.)
101 Arch Street, Boston, Massachusetts 02110-1106
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617)439-3911
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No .
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION Page No.
- ------------------------------ --------
Item 1. Financial Statements
Combined Balance Sheets - September 30, 1997 (Unaudited)
and March 31, 1997 1
Combined Statements of Operations (Unaudited) - For the Three and Six
Months Ended September 30, 1997 and 1996 2
Statement of Changes in Partners' Equity (Deficiency) (Unaudited) -
For the Six Months Ended September 30, 1997 3
Combined Statements of Cash Flows (Unaudited) - For the Six
Months Ended September 30, 1997 and 1996 4
Notes to the Combined Financial Statements (Unaudited) 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 10
PART II - OTHER INFORMATION
Items 1-6 12
SIGNATURE 13
<PAGE>
<TABLE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
COMBINED BALANCE SHEETS
<CAPTION>
September 30, March 31,
1997 1997
(Unaudited)
Assets
<S> <C> <C>
Cash and cash equivalents $ 371,179 $ 453,264
Tenant security deposits 3,536 4,709
Marketable securities, at fair value 1,954,789 1,923,032
Mortgagee escrow deposits 3,870 10,230
Replacement reserve escrow 6,092 6,092
Bond trusts 99,469 86,209
Investments in Local Limited Partnerships,
net of reserve for valuation of
$594,650 and $650,453, respectively (Note 1) 3,648,973 4,645,508
Deferred charges, net of accumulated
amortization of $33,857 and $32,245, respectively 46,757 48,369
Rental property at cost, net of accumulated
depreciation of $408,742 and $388,378, respectively 1,137,881 1,158,106
Other assets 31,412 33,588
------------ ------------
Total Assets $ 7,303,958 $ 8,369,107
============ ============
Liabilities and Partners' Equity
Accounts payable to affiliates $ 10,664 $ 34,790
Accounts payable and accrued expenses 33,015 46,346
Accrued interest 68,819 68,819
Tenant security deposits payable 3,536 4,617
Bonds payable 1,210,000 1,210,000
------------ ------------
Total Liabilities 1,326,034 1,364,572
------------ ------------
Minority interest in Local Limited Partnership 58,695 58,847
------------ ------------
General, Initial and Investor Limited Partners' Equity 5,916,647 6,958,668
Net unrealized gains (losses) on marketable securities 2,582 (12,980)
------------ ------------
Total Partners' Equity 5,919,229 6,945,688
------------ ------------
Total Liabilities and Partners' Equity $ 7,303,958 $ 8,369,107
============ ============
</TABLE>
The accompanying notes are an integral part of these combined
financial statements.
<PAGE>
<TABLE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
COMBINED STATEMENTS OF OPERATIONS
For the Three and Six Months Ended September 30, 1997 and 1996
(Unaudited)
<CAPTION>
Three Months Ended Six Months Ended
September 30, September 30, September 30, September 30,
1997 1996 1997 1996
-------------- -------------- ------------- ---------
Revenues:
<S> <C> <C> <C> <C>
Rental $ 55,948 $ 58,123 $ 114,332 $ 104,424
Investment 34,597 36,821 72,288 67,863
Other 2,611 1,314 26,382 5,671
------------- ------------- ------------- -------------
Total Revenue 93,156 96,258 213,002 177,958
------------- ------------- ------------- -------------
Expenses:
General and administrative
(includes reimbursements to
affiliates in the amounts of
$83,647 and $72,089 in 1997
and 1996, respectively) 56,515 3,439 130,757 81,781
Rental operations, exclusive
of depreciation 20,879 28,487 52,602 55,436
Interest 20,778 35,204 59,056 65,239
Depreciation 10,182 10,319 20,364 20,364
Amortization 20,924 20,301 41,846 47,376
Adjustment to provision for
valuation of investments
in Local Limited Partnerships - (42,485) (55,803) (164,602)
------------- ------------- ------------- -------------
Total Expenses 129,278 55,265 248,822 105,594
------------- ------------- ------------- -------------
Income (loss) before minority
interest and equity in losses of
Local Limited Partnerships (36,122) 40,993 (35,820) 72,364
Minority interest in loss (income) of
Local Limited Partnership (49) 156 152 347
Equity in losses of
Local Limited Partnerships (416,940) (675,676) (1,006,353) (1,201,026)
------------- ------------- ------------- -------------
Net Loss $ (453,111) $ (634,527) $ (1,042,021) $ (1,128,315)
============= ============= ============= =============
Net Loss allocated:
To General Partners $ (4,531) $ (6,345) $ (10,420) $ (11,283)
To Limited Partners (448,580) (628,182) (1,031,601) (1,117,032)
------------- ------------- ------------- -------------
$ (453,111) $ (634,527) $ (1,042,021) $ (1,128,315)
============= ============= ============= =============
Net Loss per Limited
Partnership Unit (50,000 Units) $ (8.97) $ (12.56) $ (20.63) $ (22.34)
============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these combined
financial statements.
<PAGE>
<TABLE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
(Unaudited)
For the Six Months Ended September 30, 1997
<CAPTION>
Net
Initial Investor Unrealized
General Limited Limited Gains
Partners Partners Partners (Losses) Total
<S> <C> <C> <C> <C> <C>
Balance at March 31, 1997 $ (364,910) $ 4,648 $ 7,318,930 $ (12,980) $ 6,945,688
Net change in net unrealized losses
on marketable securities
available for sale - - - 15,562 15,562
Net Loss (10,420) - (1,031,601) - (1,042,021)
----------- ------- ----------- ---------- ------------
Balance at September 30, 1997 $ (375,330) $ 4,648 $ 6,287,329 $ 2,582 $ 5,919,229
=========== ======= =========== ========== ============
</TABLE>
The accompanying notes are an integral part of these combined
financial statements.
<PAGE>
<TABLE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
COMBINED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Six Months Ended September 30, 1997 and 1996
<CAPTION>
1997 1996
------------ --------
<S> <C> <C>
Net cash used for operating activities $ (91,654) $ (115,205)
----------- -----------
Cash flows from investing activities:
Purchases of marketable securities (1,493,980) (885,037)
Proceeds from sales and maturities of marketable securities 1,477,956 781,750
Cash distributions received from Local Limited Partnerships 25,732 28,209
Advances to affiliates - (146,651)
Purchase of rental property (139) (55,557)
----------- -----------
Net cash provided by (used for) investing activities 9,569 (277,286)
----------- -----------
Net decrease in cash and cash
equivalents (82,085) (392,491)
Cash and cash equivalents, beginning 453,264 678,567
----------- -----------
Cash and cash equivalents, ending $ 371,179 $ 286,076
=========== ===========
Supplemental disclosure:
Cash paid for interest $ 59,056 $ 65,239
=========== ===========
</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
(Unaudited)
The unaudited financial statements presented herein have been prepared in
accordance with the instructions to Form 10-Q and do not include all of the
information and note disclosures required by generally accepted accounting
principles. These statements should be read in conjunction with the financial
statements and notes thereto included with the Partnership's 10-K for the year
ended March 31, 1997. In the opinion of management, these financial statements
include all adjustments, consisting only of normal recurring adjustments,
necessary to present fairly the Partnership's financial position and results of
operations. The results of operations for the periods may not be indicative of
the results to be expected for the year. Certain reclassifications have been
made to prior period financial statements to conform to current period
classifications.
1. Investments in Local Limited Partnerships
The Partnership has acquired interests in thirty-three Local Limited
Partnerships, excluding Hughes Apartments Ltd. ("Hughes"), which own and operate
multi-family housing complexes, all of which are government-assisted. The
Partnership, as Investor Limited Partner pursuant to the various Local Limited
Partnership Agreements, has generally acquired a 99% interest in the profits,
losses, tax credits and cash flows from operations of each of the Local Limited
Partnerships. Upon dissolution, proceeds will be distributed according to each
respective partnership agreement.
A summary of Investments in Local Limited Partnerships, excluding Hughes, at
September 30, 1997, is as follows:
<TABLE>
<CAPTION>
<S> <C>
Capital contributions to Local Limited Partnerships and purchase
price paid to withdrawing partners of Local Limited Partnerships $ 36,630,480
Cumulative equity in losses of Local Limited Partnerships
(excluding cumulative unrecognized losses of $14,458,934) (34,448,213)
Cumulative cash distributions received from Local Limited Partnerships (1,598,165)
----------------
Investments in Local Limited Partnerships before adjustment 584,102
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 4,770,577
Accumulated amortization of acquisition fees and expenses (1,111,056)
----------------
Investments in Local Limited Partnerships 4,243,623
Reserve for Valuation of Investments in
Local Limited Partnerships (594,650)
$ 3,648,973
</TABLE>
The Partnership's share of net losses of the Local Limited Partnerships for the
six months ended September 30, 1997 is $2,929,998.
For the six months ended September 30, 1997, the Partnership has not recognized
$1,943,626 of equity in losses relating to seventeen Local Limited Partnerships
where cumulative equity in losses and cumulative distributions from Local
Limited Partnerships exceeded its total investments in these Local Limited
Partnerships.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
(Unaudited)
2. Supplemental Combining Schedules
<TABLE>
Balance Sheets
<CAPTION>
Boston Financial
Qualified Housing Hughes
Tax Credits Apartments
L.P. (A) Ltd.(B) Eliminations Combined
Assets
<S> <C> <C> <C> <C>
Cash and cash equivalents $ 367,631 $ 3,548 $ - $ 371,179
Tenant security deposits - 3,536 - 3,536
Marketable securities, at fair value 1,954,789 - - 1,954,789
Mortgagee escrow deposits - 3,870 - 3,870
Replacement reserve escrow - 6,092 - 6,092
Bond trusts - 99,469 - 99,469
Investments in Local Limited
Partnerships, net 3,592,364 - 56,609 3,648,973
Deferred charges, net - 46,757 - 46,757
Rental property at cost, net - 1,137,881 - 1,137,881
Other assets 29,288 2,124 - 31,412
------------ ------------ -------- -------------
Total Assets $ 5,944,072 $ 1,303,277 $ 56,609 $ 7,303,958
============ ============ ======== =============
Liabilities and Partners' Equity (Deficiency)
Accounts payable to affiliates $ 10,664 $ 53,490 $(53,490) $ 10,664
Accounts payable and accrued
expenses 14,179 18,836 - 33,015
Accrued interest - 68,819 - 68,819
Tenant security deposits payable - 3,536 - 3,536
Bonds payable - 1,210,000 - 1,210,000
------------ ------------ -------- -------------
Total Liabilities 24,843 1,354,681 (53,490) 1,326,034
------------ ------------ -------- -------------
Minority interest in Local Limited
Partnership - - 58,695 58,695
------------ ------------ -------- -------------
General, Initial and Investor
Limited Partners' Equity (Deficiency) 5,916,647 (51,404) 51,404 5,916,647
Net unrealized gain on
marketable securities 2,582 - - 2,582
------------ ------------ -------- -------------
Total Partners' Equity (Deficiency) 5,919,229 (51,404) 51,404 5,919,229
------------ ------------ -------- -------------
Total Liabilities and
Partners' Equity (Deficiency) $ 5,944,072 $ 1,303,277 $ 56,609 $ 7,303,958
============ ============ ======== =============
</TABLE>
(A) As of September 30, 1997. (B) As of June 30, 1997.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
(Unaudited)
2. Supplemental Combining Schedules (continued)
<TABLE>
Statements of Operations
For the Three Months Ended September 30, 1997
<CAPTION>
Boston Financial
Qualified Housing Hughes
Tax Credits Apartments
L.P. (A) Ltd.(B) Eliminations Combined
Revenue:
<S> <C> <C> <C> <C>
Rental $ - $ 55,948 $ - $ 55,948
Investment 34,465 132 - 34,597
Other 1,125 1,486 - 2,611
------------- ------------ --------- ------------
Total Revenue 35,590 57,566 - 93,156
------------- ------------ --------- ------------
Expenses:
General and administrative 56,515 - - 56,515
Rental operations, exclusive
of depreciation - 20,879 - 20,879
Interest - 20,778 - 20,778
Depreciation - 10,182 - 10,182
Amortization 20,118 806 - 20,924
------------- ------------ --------- ------------
Total Expenses 76,633 52,645 - 129,278
------------- ------------ --------- ------------
Income (loss) before minority interest
and equity in losses of Local
Limited Partnerships (41,043) 4,921 - (36,122)
Minority interest in income of
Local Limited Partnership - - (49) (49)
Equity in losses of Local
Limited Partnerships (412,068) - (4,872) (416,940)
------------- ------------ --------- ------------
Net Loss $ (453,111) $ 4,921 $ (4,921) $ (453,111)
============= ============ ========= ============
</TABLE>
(A) For the three months ended September 30, 1997. (B) For the three months
ended June 30, 1997.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
(Unaudited)
2. Supplemental Combining Schedules (continued)
<TABLE>
Statements of Operations
For the Six Months Ended September 30, 1997
<CAPTION>
Boston Financial
Qualified Housing Hughes
Tax Credits Apartments
L.P. (A) Ltd.(B) Eliminations Combined
Revenue:
<S> <C> <C> <C> <C>
Rental $ - $ 114,332 $ - $ 114,332
Investment 72,132 156 - 72,288
Other 22,381 4,001 - 26,382
------------- ------------ --------- ------------
Total Revenue 94,513 118,489 - 213,002
------------- ------------ --------- ------------
Expenses:
General and administrative 130,757 - - 130,757
Rental operations, exclusive
of depreciation - 52,602 - 52,602
Interest - 59,056 - 59,056
Depreciation - 20,364 - 20,364
Amortization 40,234 1,612 - 41,846
Adjustment to provision
for valuation of
investments in Local
Limited Partnerships (55,803) - - (55,803)
------------- ------------ --------- ------------
Total Expenses 115,188 133,634 - 248,822
------------- ------------ --------- ------------
Loss before minority interest and
equity in losses of Local
Limited Partnerships (20,675) (15,145) - (35,820)
Minority interest in loss of
Local Limited Partnership - - 152 152
Equity in losses of Local
Limited Partnerships (1,021,346) - 14,993 (1,006,353)
------------- ------------ --------- ------------
Net Loss $ (1,042,021) $ (15,145) $ 15,145 $ (1,042,021)
============= ============ ========= ============
</TABLE>
(A) For the six months ended September 30, 1997. (B) For the six months ended
June 30, 1997.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
(Unaudited)
2. 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
Net cash provided by (used for)
<S> <C> <C> <C> <C>
operating activities $ (92,797) $ 1,143 $ - $ (91,654)
----------- ---------- --------- ------------
Cash flows from investing activities:
Purchases of marketable securities (1,493,980) - - (1,493,980)
Proceeds from sales and maturities
of marketable securities 1,477,956 - - 1,477,956
Cash distributions received from
Local Limited Partnerships 25,732 - - 25,732
Purchase of rental property - (139) - (139)
----------- ---------- --------- ------------
Net cash provided by (used for)
investing activities 9,708 (139) - 9,569
----------- ---------- --------- ------------
Net increase (decrease) in cash and
cash equivalents (83,089) 1,004 - (82,085)
Cash and cash equivalents, beginning 450,720 2,544 - 453,264
----------- ---------- --------- ------------
Cash and cash equivalents, ending $ 367,631 $ 3,548 $ - $ 371,179
=========== ========== ========= ============
</TABLE>
(A) For the six months ended September 30, 1997. (B) For the six months ended
June 30, 1997.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
At September 30, 1997, the Partnership, including the combined entity (Hughes
Apartments Ltd.), had cash and cash equivalents of $371,179 compared with
$453,264 at March 31, 1997. The decrease is attributable to purchases of
marketable securities in excess of proceeds from sales and maturities of
marketable securities and cash used for operations. These decreases to cash are
offset by cash distributions received from Local Limited Partnerships.
At September 30, 1997, approximately $1,687,000 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 September 30, 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 provide such funds, voluntarily, in order to protect its
investment.
Cash Distributions
No cash distributions were made during the six months ended September 30, 1997.
Results of Operations
The Partnership's results of operations for the three and six months ended
September 30, 1997 resulted in a net loss of $453,111 and $1,042,021, as
compared to a net loss of $634,527 and $1,128,315 for the same periods in 1996.
The decrease in net loss is primarily attributable to a decrease in equity in
losses of Local Limited Partnerships due to an increase in losses not recognized
by the Partnership for Local Limited Partnerships whose cumulative equity in
losses and cumulative distributions exceeded its total investment in these
partnerships. This decrease is offset by a decrease in the provision for
valuation of investments in Local Limited Partnerships and an increase in
general and administrative expenses. The provision for valuation of investments
in Local Limited Partnerships decreased because the investment in Pebble Creek
reached zero through equity in losses in 1997 making future provisions
unnecessary. General and administrative expenses increased because a
reclassification of Hughes expenses to a receivable account occurred in the 1996
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.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Property Discussions (continued)
Specifically, four of these properties are Graver Inn, 600 Dakota, Barrington
Manor and Duluth Apartments, located in North and South Dakota. Due to the
Managing General Partner's concerns regarding the long-term viability of these
projects, negotiations are underway with the Local General Partner to develop a
plan that will ultimately transfer ownership of the properties to the Local
General Partner. The plan includes provisions to maximize the Fund's ability to
retain tax credits going forward, while minimizing the risk of recapture.
As previously reported, 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 had 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 included provisions for
substantial capital improvements to the property designed to stabilize
operations. The capital improvements were complete on time and in accordance
with the workout. Occupancy is currently 95%. The Managing General Partner
continues to work toward a long-term solution of the property issues.
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. Both properties, as well as Bittersweet Apartments,
have received SHARP subsidies in the past which have been an important part of
their annual income. Effective October 1, 1997, the Massachusetts Housing
Finance Agency (MHFA) which provided the SHARP subsidies, withdrew future SHARP
mortgage subsidies from its portfolio of 77 SHARP subsidized properties. The
Managing General Partner has joined a group of interested parties and is working
with MHFA to find a solution to the problems that will result as a result of
withdrawn subsidies. Given existing operating deficits and the dependence on
these subsidies by Cass House and Verdean Gardens, it is likely that both
properties will default on their mortgage obligations by the end of the year.
Bittersweet is also dependent upon these subsidies and default is a possibility.
It is possible that Partnership Reserves will be used to support these
properties until these issues can be resolved. The carrying value of the
Partnership's investment in these Local Limited Partnerships is zero at
September 30, 1997.
Hughes Apartments, located in Mandan, North Dakota, continues to generate
operating deficits. However, occupancy has increased to 98%. 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.
The Local General Partner for Brentwood Manor II, in Nashua, New Hampshire,
filed for protection under the provisions of the Chapter 7 bankruptcy laws. The
Managing General Partner's request to replace the Local General Partner with a
substitute general partner was denied by the lender. The Managing General
Partner continues to work towards replacing the Local General Partner. The
Managing General Partner is also seeking to replace the Local General Partner as
management agent of the property as well. As noted previously, although full
mortgage payments are being made at this time, partial mortgage payments were
made earlier in the year prior to the Local General Partner declaring
bankruptcy. The lender has required that the small deficit generated by the
deficient payments be cured immediately. The Managing General Partner is
negotiating with both the lender and the Local General Partner to develop a plan
for the payment of this amount. It is possible that Partnership Reserves will be
used to pay this deficit.
Boulevard Commons, located in Chicago, Illinois, is expected to generate a small
operating deficit in 1997. Although occupancy is currently 96%, expenses are
higher than expected due to increasing maintenance and capital needs, security
issues and high turnover at the property. The Managing General Partner, Local
General Partner and Property Manager are working to increase rents sufficiently
to provide for these needs.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
PART II OTHER INFORMATION
Items 1-5 Not applicable
Item 6 Exhibits and reports on Form 8-K
(a)Exhibits - None
(b)Reports on Form 8-K - No reports on Form 8-K were filed
during the quarter ended September 30, 1997.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
DATED: November 14, 1997 BOSTON FINANCIAL QUALIFIED HOUSING
LIMITED PARTNERSHIP
By: 29 Franklin Street, Inc.,
its Managing General Partner
/s/William E Haynsworth
William E Haynsworth
Managing Director, Vice President and
Chief Operating Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1997
<CASH> 371,179
<SECURITIES> 1,954,789
<RECEIVABLES> 000
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 000
<PP&E> 1,137,881
<DEPRECIATION> 000
<TOTAL-ASSETS> 7,303,958<F1>
<CURRENT-LIABILITIES> 000
<BONDS> 1,210,000
000
000
<COMMON> 000
<OTHER-SE> 5,919,229
<TOTAL-LIABILITY-AND-EQUITY> 7,303,958<F2>
<SALES> 000
<TOTAL-REVENUES> 213,002<F3>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 189,766<F4>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 59,056
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (1,042,021)<F5>
<EPS-PRIMARY> (20.63)
<EPS-DILUTED> 000
<FN>
<F1>Included in total assets is tenant security deposits of $3,536, Investments
in Local Limited Partnerships of $3,648,973, deferred charges, net $46,757, bond
trusts of $99,469, mortgagee escrow deposits of $3,870, replacement reserve
escrow of $6,092 and other assets of $31,412. <F2>Included in total liability
and equity is accounts payable to affiliates of $10,664, accounts payable and
accrued expenses of $33,015, accrued interest of $68,819, tenant security
deposits payable of $3,536, and minority interest in Local Limited Partnership
of $58,695. <F3>Total revenue includes rental of $114,332, investment of $72,288
and other of $26,382. <F4>Included in other expenses is an adjustment to the
provision for valuation of investments in Local Limited Partnerships of
$(55,803), general and administrative of $130,757, rental operations, exclusive
of depreciation of $52,602, depreciation of $20,364 and amortization of $41,846.
<F5>Net loss reflects equity in losses of Local Limited Partnerships of
$1,006,353 and minority interest in loss of Local Limited Partnership of $152.
</FN>
</TABLE>
