June 29, 1998
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, 1998
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/Dianne Groark
Dianne Groark
Assistant Controller
QH110K-K.98/
<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, 1998 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, 1998
<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, 1998
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-19
Item 9 Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure K-19
PART III
Item 10 Directors and Executive Officers
of the Registrant K-20
Item 11 Management Remuneration K-21
Item 12 Security Ownership of Certain Beneficial
Owners and Management K-22
Item 13 Certain Relationships and Related
Transactions K-22
PART IV
Item 14 Exhibits, Financial Statement Schedule
and Reports on Form 8-K K-24
SIGNATURES K-25
<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
<TABLE>
<CAPTION>
Properties owned by Date
Local Limited Interest
Partnerships Location Acquired
-------------------------------- --------------------- -------------
<S> <C> <C>
Barrington Manor Fargo, ND 12/31/87
Bingham Bingham, ME 12/30/87
Birmingham Village 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
Park Terrace 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
</TABLE>
* The Partnership's interest in profits and losses of each Local Limited
Partnership arising from normal operations is 99%, except for Logan Plaza
where the Partnership's ownership interest is 98% and Barrington Manor,
Graver Inn, 600 Dakota Properties and Duluth where the Partnerships
ownership interest is 49.5%. 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, 1998, 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 years ended March 31, 1998 and 1997, the Partnership
advanced approximately $3,000 and $375,000, respectively, to five 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 Hughes, 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, 1998, the
following Local Limited Partnerships have a common Local General Partner or
affiliated group of Local General Partners accounting for the specified
percentage of capital contributions to Local Limited Partnerships: (i) Rolling
Green, Sierra Vista, Terrace, Windsor and Sierra Point Limited Partnerships,
representing 29.78%, have Phillip Abrams Ventures, Inc. and PDW, Inc. as Local
General Partners; (ii) Graver Inn, Barrington Manor, 600 Dakota and Duluth
Limited Partnerships, representing 3.32%, have Jerry L. Meide and RRABB, Inc. as
Local General Partners (see discussion below); (iii) New Medford and Oregon
Landmark Limited Partnerships, representing 6.52%, 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 12.42%, have Cruz Development Corporation as the
Local General Partner; and (vii) Willowpeg Village, Pine Village, Glennville,
Talbot Village and Chestnut Lane Limited Partnerships, representing 2.74% 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.
On November 10, 1997, the Partnership transferred 50% of its interest in
Barrington Manor, Graver Inn, 600 Dakota and Duluth to the local general
partner, Jerry Meide. Included in these transfers is a put option granting the
Managing General Partner the right to put the Partnership's remaining
interest to the local general partner any time after one year has elapsed. The
Meide portfolio represents 3.32% of capital contributions.
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)
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% and
Barrington Manor, Graver Inn, 600 Dakota, and Duluth where the Partnership's
ownership interest is 49.5%.
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>
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, 1998 March 31, 1998 December 31, 1997 Subsidy* 1998
- ---------------------------- ------------ -------------- ---------------- ------------------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Barrington Manor
Limited Partnership
Barrington Manor
Fargo, ND 18 $ 175,200 $ 175,200 $ 615,000 Section 8 68%
Bingham Family Housing
Associates (A Limited
Partnership)
Bingham
Bingham, ME 24 240,900 240,900 1,163,496 FmHA 92%
Birmingham Housing Associates
(A Limited Partnership)
Birmingham Village
Randolph, ME 24 236,520 236,520 1,158,176 FmHA 100%
MB Bittersweet Associates Limited
Partnership (a Massachusetts
Limited Partnership)
Bittersweet
Randolph, MA 35 620,500 620,500 2,427,903 None 95%
Boulevard Commons
Limited Partnership
Boulevard Commons
Chicago, IL 212 4,527,850 4,527,850 10,455,270 Section 8 83%
Michael J. Dobens
Limited Partnership I
Brentwood Manor II
Nashua, NH 22 300,000 300,000 769,131 Section 8 96%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Local Limited Partnership Total Paid Mtge. Loans Occupancy at
Property Name Number of Committed at Through Payable at Type of March 31,
Property Location Apt. Units March 31, 1998 March 31, 1998 December 31, 1997 Subsidy* 1998
- ---------------------------- ----------- --------------- --------------- ----------------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Cass House Associates Limited
Partnership (a Massachusetts
Limited Partnership)
Cass House/Roxbury Hills
Boston, MA 111 2,141,090 2,141,090 7,993,802 None 97%
Chestnut Lane Limited
Partnership (A Limited
Partnership)
Chestnut Lane
Newnan, GA 50 282,510 282,510 1,471,733 None 100%
Coronado Courts Limited
Partnership
Coronado Courts
Douglas, AZ 145 1,800,000 1,800,000 3,731,253 Section 8 94%
Glennville Properties
(A Limited Partnership)
Country Estates
Glennville, GA 24 121,910 121,910 595,011 FmHA 100%
600 Dakota Properties
Limited Partnership
600 Dakota
Wahpeton, ND 28 113,000 113,000 640,000 Section 8 92%
Delmar Housing Associates
Limited Partnership
Delmar
Gillette, WY 16 128,000 128,000 416,889 Section 8 100%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Local Limited Partnership Total Paid Mtge. Loans Occupancy at
Property Name Number of Committed at Through Payable at Type of March 31,
Property Location Apt. Units March 31, 1998 March 31, 1998 December 31, 1997 Subsidy* 1998
- ---------------------------- ---------- --------------- ---------------- ----------------- ---------- -----------
<S> <C> <C> <C> <C> <C> <C>
Duluth Limited Partnership
Duluth
Sioux Falls, SD 11 107,000 107,000 257,454 Section 8 90%
Oregon Landmark-Three
Limited Partnership
Elmore Hotel
Great Falls, MT 60 1,022,000 1,022,000 3,261,876 Section 8 99%
Graver Inn
Limited Partnership
Graver Inn
Fargo, ND 70 819,500 819,500 1,971,386 Section 8 81%
Hazel-Winthrop Apartments (An
Illinois Limited Partnership)
Hazel-Winthrop
Chicago, IL 30 350,400 350,400 2,117,621 Section 8 97%
Heritage Court
Limited Partnership
Park Terrace
Dundalk, MD 101 2,048,750 2,048,750 3,547,906 None 100%
Hughes Apartments
Limited Partnership
Hughes
Mandan, ND 47 379,453 379,453 1,210,000 Section 8 98%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Local Limited Partnership Total Paid Mtge. Loans Occupancy at
Property Name Number of Committed at Through Payable at Type of March 31,
Property Location Apt. Units March 31, 1998 March 31, 1998 December 31, 1997 Subsidy* 1998
- --------------------------- ----------- --------------- ---------------- ------------------- --------- -------------
<S> <C> <C> <C> <C> <C> <C>
Lakeview Heights Apartments,
Ltd. (A Limited Partnership)
Lakeview Heights
Clearfield, UT 83 584,000 584,000 2,793,695 Section 8 96%
Logan Plaza Associates
Logan Plaza
New York NY 130 2,240,000 2,240,000 10,985,662 None 98%
New Medford Hotel Associates
Limited Partnership
New Medford Hotel
Medford, OR 76 1,365,100 1,365,100 3,186,176 Section 8 96%
New Sweden Housing Associates
(A Limited Partnership)
Heritage View
New Sweden, ME 24 237,250 237,250 1,162,225 FmHA 70%
2225 New York Avenue, Ltd.
(A Limited Partnership)
Pebble Creek
Arlington, TX 352 2,512,941 2,512,941 7,955,434 Section 8 98%
Perryville Associates I, L.P.
(A Limited Partnership)
Hillcrest III
Perryville, MO 24 128,115 128,115 591,329 FmHA 88%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Local Limited Partnership Total Paid Mtge. Loans Occupancy at
Property Name Number of Committed at Through Payable at Type of March 31,
Property Location Apt. Units March 31, 1998 March 31, 1998 December 31, 1997 Subsidy* 1998
- -------------------------- ----------- ---------------- --------------- ------------------ --------- ------------
<S> <C> <C> <C> <C> <C> <C>
Pine Village Limited Partnership
(A Limited Partnership)
Pine Village
Pine Mountain, GA 36 188,340 188,340 938,715 FmHA 97%
Rolling Green Housing Associates,
Ltd. (a Limited Partnership)
Rolling Green
Edmond, OK 166 1,855,650 1,855,650 4,788,046 Section 8 97%
Sierra Vista Housing Associates,
Ltd. (a Limited Partnership)
Sierra Pointe
Las Vegas, NV 160 3,016,008 3,016,008 7,152,930 Section 8 74%
Sundance Housing Associates,
Ltd. (A Limited Partnership)
Sierra Vista
Aurora, CO 209 2,271,751 2,271,751 6,288,417 Section 8 100%
Talbot Village Limited Partnership
(A Limited Partnership)
Talbot Village
Talbotton, GA 24 121,180 121,180 601,258 FmHA 100%
Terrace Housing Associates,
Ltd. (a Limited Partnership)
Terrace
Oklahoma City, OK 206 1,950,550 1,950,550 5,249,923 Section 8 80%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Local Limited Partnership Total Paid Mtge. Loans Occupancy at
Property Name Number of Committed at Through Payable at Type of March 31,
Property Location Apt. Units March 31, 1998 March 31, 1998 December 31, 1997 Subsidy* 1998
- ------------------------- ----------- --------------- ---------------- ----------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Trenton Apartments, Ltd.
(A Limited Partnership)
Trenton
Salt Lake City, UT 37 237,250 237,250 841,706 Section 8 100%
Verdean Gardens Associates Limited
Partnership (a Massachusetts
limited partnership)
Verdean Gardens
New Bedford, MA 110 2,409,000 2,409,000 7,621,194 None 94%
Willowpeg Village Limited Partnership
(A Limited Partnership)
Willowpeg Village
Rincon, GA 57 288,400 288,400 1,476,803 FmHA 100%
Windsor Court Housing Associates,
Ltd. (a Limited Partnership)
Windsor Court
Aurora, CO 143 1,815,500 1,815,500 4,498,473 Section 8 98%
------- ------------ ------------ -------------
2,865 36,635,618 36,635,618 109,935,893
=======
Less: Hughes Apartments 379,453 379,453 1,210,000
------------ ------------ -------------
$ 36,256,165 $ 36,256,165 $ 108,725,893
============ ============ =============
</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 invested in by the Partnership, Boulevard Commons,
represents more than 10% of the total capital contributions 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 June 15, 1998, there were 3,314 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, 1998, 1997 and 1996.
<PAGE>
Item 6. Selected Financial Data
The following table sets forth selected financial information regarding the
Partnership's financial position and operating results. This information should
be read in conjunction with Management's Discussion and Analysis of Financial
Condition and Results of Operations and the Financial Statements and Notes
thereto, which are included in Items 7 and 8 of this Report.
<TABLE>
<CAPTION>
March 31, March 31, March 31, March 31, March 31,
1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C>
Revenue (B) $ 414,211 $ 435,791 $ 191,229 $ 77,348 $ 204,552
Equity in losses of Local Limited
Partnerships (B) (2,321,647) (2,041,502) (2,657,886) (2,732,227) (3,076,265)
Net loss (2,927,278) (2,048,112) (2,278,003) (3,142,627) (3,048,198)
Per Limited Partnership Unit (57.96) (40.55) (45.10) (62.22) (60.35)
Cash and cash equivalents (B) 243,723 453,264 678,567 308,216 44,790
Marketable securities 2,025,236 1,923,032 1,998,381 2,066,336 2,279,787
Investment in Local Limited
Partnerships 1,842,272 4,592,843 6,394,674 8,905,612 12,085,357
Total assets 5,428,937 8,369,107 10,458,754 11,358,168 14,487,572
Long-term debt 1,210,000 1,210,000 1,210,000 - -
Cash distribution - - - - -
Per Limited Partnership Unit - - - - -
Other Data:
Passive loss (A) (7,045,034) (7,537,782) (6,502,105) (6,757,956) (7,213,910)
Per Limited Partnership Unit (A) (139.49) (149.25) (128.74) (133.81) (142.84)
Portfolio income (A) 308,954 389,939 442,059 321,042 420,572
Per Limited Partnership Unit (A) 6.12 7.72 8.75 6.36 8.33
Low-Income Housing
Tax Credits (A) 6,904,667 7,559,531 7,652,372 7,512,822 7,490,806
Per Limited Partnership Unit (A) 136.50 149.47 151.31 148.55 148.11
Local Limited Partnership interests
owned at end of period 34 34 34 34 34
</TABLE>
(A) 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 1997, 1996, 1995, 1994 and 1993,
represents the amount distributed to individual investors based upon
50,000 outstanding Units. Corporate investors received Low-Income
Housing Tax Credits of $146.42, $159.39, $161.23, $158.40 and $158.11
per Unit in 1997, 1996, 1995, 1994 and 1993, respectively.
(B) March 31, 1998, 1997 and 1996 revenue includes $245,380, $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, 1998, 1997 and 1996 equity in losses of Local Limited
Partnerships does not include $25,528, $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, 1998, 1997 and 1996 cash and cash equivalents includes
$2,464, $2,544 and $26,084, respectively, of cash and 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, 1998, the Partnership, including the combined entity (Hughes
Apartments, Ltd.), has cash and cash equivalents of $243,723 as 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 and
cash equivalents are offset by cash distributions received from Local Limited
Partnerships.
At March 31, 1998, approximately $1,680,000 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, 1998, 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, 1998, the Partnership advanced
$3,000 to one Local Limited Partnerships for various property issues.
Cash Distributions
No cash distributions to Limited Partners were made during the three years ended
March 31, 1998. 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
1998 versus 1997
The Partnership's results of operations for the year ended March 31, 1998
resulted in a net loss of $2,927,278 as compared to a net loss of $2,048,112 for
the same period in 1997. The increase in net loss is primarily attributable to
an increase in equity in losses of Local Limited Partnerships and a provision
for valuation of investments in five Local Limited Partnerships. As discussed in
Note 4 to the combined financial statements in Item 8 of this Form 10-K, the
increase in equity in losses of Local Limited Partnerships is due to equity in
income recognized during the year ended March 31, 1997 due to a change in
accounting methods for two Local Limited Partnerships. The Partnership provided
for a provision for valuation in five Local Limited Partnerships because there
is evidence of a non-temporary decline in the recoverable amount of these
investments.
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
<PAGE>
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 the 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.
Effect of recently issued Accounting Standard
The Financial Accounting Standards Board recently issued Statement of Financial
Accounting Standards No. 130, Reporting Comprehensive Income. The standard
requires that changes in comprehensive income be shown in a financial statement
that is displayed with the same prominence as other financial statements. The
standard is effective for fiscal years beginning after December 15, 1997. The
Partnership will adopt the new standard beginning in the first quarter of the
fiscal year ending March 31, 1999, but it is not expected to have a significant
effect on the Partnership's financial position or results of operations.
Low-Income Housing Tax Credits
The 1997, 1996 and 1995 Low-Income Housing Tax Credits per Unit for individuals
were $136.50, $149.47 and $151.31, respectively. The 1997, 1996 and 1995
Low-Income Housing Tax Credits per Unit for corporations were $146.42, $159.39
and $161.23, 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 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.
As previously reported, 600 Dakota, Graver Inn and Barrington Manor, located in
North Dakota, and Duluth, located in South Dakota, which have the same local
general partner, have been performing satisfactorily. However, affiliates of the
Managing General Partner have been working with the local general partner who
has raised some concerns over the long-term financial health of the properties.
In an effort to reduce possible future risk, the Managing General Partner
recently consummated the transfer of 50% of the Partnership's interest in
capital and profits in the properties to the local general partner. The Managing
General Partner has the right to transfer the Partnership's remaining interest
to the local general partner any time after one year has elapsed. The Managing
General Partner continues to monitor property operations closely. The
Partnership will retain its full share of tax credits until such time as the
remaining interest is put to the local general partner. For financial reporting
purposes, the remaining carrying value of these investments have been
fully reserved.
As previously reported Boulevard Common, located in Chicago, Illinois, has been
experiencing operating deficits. Occupancy as of December 31, 1997 is 91%, down
from 96% at December 31, 1996. Expenses have increased due to increasing
maintenance and capital needs, security issues and high turnover at the
property. The Local General Partner is requesting that the Managing General
Partner assist in funding capital improvements. The Managing General Partner is
reviewing this request and has requested that the Local General Partner provide
a workout plan detailing where and how these funds will be used.
Delmar, located in Gillette, Wyoming, has been experiencing operating deficits.
In addition, a significant amount of capital improvements on the property need
to be completed in the very near future. In the past, deficits were being funded
by a combination of the accrual of property management fees and funds provided
by the Local General Partner. Due to the Managing General Partner's concerns
regarding the long term viability of this property, negotiations with the Local
General Partner are underway to develop a plan that will ultimately transfer
ownership of the property to the Local General Partner. The plan includes
provisions to minimize 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 which resulted in a mortgage default and subsequent mortgage
assignment to HUD. The workout included provisions for substantial capital
improvements. These capital improvements were completed on time and in
accordance with the workout. Currently, the Managing General Partner is
negotiating with HUD to extend and/or modify the existing workout agreement
which expired May 31, 1998. Also, the Managing General Partner is involved in
negotiations for the appointment of a replacement Local General Partner.
Occupancy is currently 98%. The carrying value of the Partnership's investment
in this Local Limited Partnership is zero at March 31, 1998.
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, Verdean Gardens and Bittersweet, it is likely
that all three properties will default on their mortgage obligations in the near
future. 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 March
31, 1998.
Hughes Apartments, located in Mandan, North Dakota, continues to generate
operating deficits. 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 has replaced the former Local General Partner as management agent of the
property with an unaffiliated third-party management agent. 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 former Local General Partner
declaring bankruptcy. The lender 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 former 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.
Sierra Pointe, located in California, is experiencing operating deficits due to
low occupancy. The current occupancy is at 74%. The Managing General Partner and
Local General Partner are working with the Housing Authority to fill vacant
units. Further, the Managing General Partner and Local General Partner
negotiated a replacement for the current management agent. The new management
agent started March 1, 1998. The Managing General Partner will continue to work
with the Local General Partner and new management agent in an effort to
stabilize operations and improve occupancy. For financial reporting purposes,
the carrying value of the Partnership's investment in this Local Limited
Partnership has been written-down to zero.
In accordance with Financial Accounting Standard 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, the
Partnership has implemented policies and practices for assessing impairment of
its real estate assets and investments in local limited partnerships. Each asset
is analyzed by real estate experts to determine if an impairment indicator
exists. If so, the current value is compared to the fair value and if there is a
significant impairment in value, a provision to write down the asset to fair
value will be charged against income.
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, 1998, 1997 and 1996.
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
None.
<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. Georgia Murray resigned as
Managing Director, Treasurer and Chief Financial Officer of the General Partner
on May 25, 1997. Fred N. Pratt, Jr. resigned as Managing Director of the General
Partner on May 28, 1997. William E. Haynsworth resigned as Managing Director
and Chief Operating Officer of the General Partner on March 23, 1998.
The Managing General Partner was incorporated in January 1987. Randolph G.
Hawthorne 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
Jenny Netzer Managing Director and President
Michael H. Gladstone Managing Director, Vice President and Clerk
Randolph G. Hawthorne Managing Director, Vice President and
Chief Operating Officer
James D. Hart Chief Financial Officer and Treasurer
Paul F. Coughlan Vice President
Peter G. Fallon, Jr. Vice President
William E. Haynsworth 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 Partner of Franklin L.P. is 29 Franklin Street, Inc.
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.
Jenny Netzer, age 42, graduated from Harvard University (B.A., 1976) and
received a Master's in Public Policy from Harvard's Kennedy School of Government
in 1982. She joined Boston Financial in 1987 and is a Senior Vice President
leading the Institutional Tax Credit Team. She is also a member of the Senior
Leadership Team. Previously, Ms. Netzer led Boston Financial's new business
initiatives and managed the firm's Asset Management division, which is
responsible for the performance of 750 properties and providing service to
35,000 investors. Before joining Boston Financial, she was Deputy Budget
Director for the Commonwealth of Massachusetts where she was responsible for
the Commonwealth's health care and public pension programs' budgets. Ms. Netzer
was also Assistant Controller at Yale University and has been a member of the
Watertown Zoning Board of Appeals.
Michael H. Gladstone, age 41, graduated from Emory University (B.A. 1978) and
Cornell University (J.D., MBA, 1982). He joined Boston Financial in 1985 and
currently serves as Vice President and as the company's General Counsel. Prior
to joining Boston Financial, Mr. Gladstone was associated with the law firm of
Herrick & Smith. Mr. Gladstone is a member of the National Realty Committee and
has served on the advisory board to the Housing and Development Reporter, a
national publication on housing issues.
Randolph G. Hawthorne, age 48, is a graduate of Massachusetts Institute of
Technology (B.S., 1971) and Harvard Graduate School of Business (M.B.A., 1973).
He has been associated with Boston Financial since 1973 and has served as the
Treasurer of Boston Financial. Currently a Senior Vice President of the firm,
Mr. Hawthorne's primary responsibility is structuring and acquiring real estate
investments. Mr. Hawthorne is Past Chairman of the Board of the National Multi
Housing Council, having served on the board since 1989. He is a past president
of the National Housing and Rehabilitation Association, is 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. In addition to speaking at industry conferences, he is on the
Editorial Advisory Boards of the Tax Credit Advisor and Multi-Housing News.
James D. Hart, age 40, earned his Bachelor of Arts degree from Trinity College
and his Masters of Business Administration from the Amos Tuck School at
Dartmouth College. Mr. Hart serves as Chief Financial Officer and is a member of
the Senior Leadership Team. Prior to joining Boston Financial, Mr. Hart was
engaged in venture capital management on behalf of institutional investors,
including the negotiation and structuring of private equity and mezzanine
transactions as a Vice President of Interfid Ltd., and later in the operational
management of a venture-backed software company, as Managing Director and Chief
Financial Officer of Bitstream Inc. Mr. Hart has also served on the Board of
Directors of several investee companies, including those that went on to
complete initial public offerings.
Paul F. Coughlan, age 54, is a graduate of Brown University (B.A., 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 59, 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, to raise capital for the firm's investments.
He is currently a Senior Vice President and a member of the Institutional Tax
Credits Team with responsibility for marketing institutional investments.
Previously, he has served as president of BFG Securities, as a director of
Boston Financial and as marketing director for public and corporate funds. Mr.
Fallon has also served as Chairman of the Board of Directors for Boston College
High School, as well as a director of a local bank.
William E. Haynsworth, age 58, is a graduate of Dartmouth College (B.A., 1961)
and Harvard Law School (L.L.B., 1964; L.L.M., 1969). Prior to joining Boston
Financial in 1977, Mr. Haynsworth was Acting Executive Director and General
Counsel of the Massachusetts Housing Finance Agency. He was also the Director of
Non-Residential Development of the Boston Redevelopment Authority and an
associate of the law firm of Goodwin, Procter & Hoar. Appointed Senior Vice
President in 1986, Mr. Haynsworth brings over 25 years of experience structuring
real estate investments. Mr. Haynsworth is a member of the Executive Committee
and the Board of Directors of the Affordable Housing Tax Credit Coalition. He is
a member of the Senior Leadership Team, the firm's Executive Committee and the
Board of Directors of Boston Financial.
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.
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, 1998, 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 the Partnership 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, 1998 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, 1998.
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 totaled 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, 1998.
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, 1998 are as
follows:
1998 1997 1996
------------- ------------ ---------
Salaries and benefits expense
reimbursements $ 162,548 $ 138,995 $ 146,464
Property management fees
Boston Financial Property Management ("BFPM"), an affiliate of the Managing
General Partner, currently manages five properties in which the Partnership has
invested. In the years ended March 31, 1997 and 1996, BFPM managed only four of
these five properties. Fees earned by BFPM in each of the three years ended
March 31, 1998 are as follows:
1998 1997 1996
------------ ---------- -----------
Property management fees $ 136,095 $ 194,057 $ 181,269
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, 1998.
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, 1998 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, 1998.
(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
Boulevard Commons
(a)(3)(d) None.
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this Report to be signed on its
behalf by the undersigned, thereunto duly authorized.
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
By: 29 Franklin Street, Inc.
its Managing General Partner
By: /s/Randolph G. Hawthorne Date: 6/29/98
Randolph G. Hawthorne
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/ Randolph G. Hawthorne Date: 6/29/98
Randolph G. Hawthorne
Managing Director, Vice President and
Chief Operating Officer
By: /s/Michael H. Gladstone Date: 6/29/98
Michael H. Gladstone
A Managing Director
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, 1998
Index
Page No.
Report of Independent Accountants
For the Years Ended March 31, 1998 and 1997 F-2
Combined Financial Statements
Combined Balance Sheets - March 31, 1998 and 1997 F-3
Combined Statements of Operations - Years Ended
March 31, 1998, 1997 and 1996 F-4
Combined Statements of Changes in Partners' Equity (Deficiency) Years Ended
March 31, 1998, 1997 and 1996 F-5
Combined Statements of Cash Flows - Years Ended
March 31, 1998, 1997 and 1996 F-6
Notes to Combined Financial Statements F-7
Financial Statement Schedule:
Schedule III - Real Estate and Accumulated Depreciation F-22
See also Index to Exhibits on Page K-24 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,
1998 and 1997 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 each of the three
years in the period ended March 31, 1998. These financial statements and
financial statement schedule are the responsibility of the Partnership'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,
1998 and 1997, 0% and 27%, respectively, of total assets, and for the years
ended March 31, 1998, 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 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 and the reports of other auditors 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, 1998 and 1997, and the results of its operations
and its cash flows for each of the three years in the period ended March 31,
1998, in conformity with generally accepted accounting principles. In addition,
in our opinion, the financial statement schedule referred to above, when
considered in relation to the basic financial statements taken as a whole,
presents fairly, in all material respects, the information required to be
included therein.
Coopers & Lybrand L.L.P.
Boston, Massachusetts
June 22, 1998
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS LIMITED PARTNERSHIP
(A Limited Partnership)
COMBINED BALANCE SHEETS - March 31, 1998 and 1997
<TABLE>
<CAPTION>
1998 1997
Assets
<S> <C> <C>
Cash and cash equivalents $ 243,723 $ 453,264
Tenant security deposits 4,731 4,709
Accounts receivable, net 3,000 52,665
Marketable securities, at fair value (Notes 1 and 3) 2,025,236 1,923,032
Mortgagee escrow deposits 6,020 10,230
Replacement reserve escrow 6,398 6,092
Bond trusts (Note 7) 107,572 86,209
Investments in Local Limited Partnerships,
net of reserve for valuation of
$685,201 and $328,803 in
1998 and 1997, respectively (Note 4) 1,842,272 4,592,843
Deferred charges, net of accumulated
amortization of $35,469 and $32,245
in 1998 and 1997, respectively 45,145 48,369
Rental property, at cost, net of
accumulated depreciation (Note 6) 1,112,647 1,158,106
Other assets 32,193 33,588
Total Assets $ 5,428,937 $ 8,369,107
Liabilities and Partners' Equity
Accounts payable to affiliates (Note 5) $ 22,773 $ 34,790
Accounts payable and accrued expenses 27,577 46,346
Accrued interest (Note 7) 68,819 68,819
Tenant security deposits payable 4,731 4,617
Bonds payable (Note 7) 1,210,000 1,210,000
Total Liabilities 1,333,900 1,364,572
Minority interest in Local Limited Partnership 58,589 58,847
General, Initial and Investor Limited Partners' Equity 4,031,390 6,958,668
Net unrealized gains (losses) on marketable securities 5,058 (12,980)
Total Partners' Equity 4,036,448 6,945,688
Total Liabilities and Partners' Equity $ 5,428,937 $ 8,369,107
</TABLE>
The accompanying notes are an integral part of these combined financial
statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS LIMITED PARTNERSHIP
(A Limited Partnership)
<TABLE>
<CAPTION>
COMBINED STATEMENTS OF OPERATIONS
For the Years Ended March 31, 1998, 1997 and 1996
1998 1997 1996
------- ------- -------
<S> <C> <C> <C>
Revenue:
Rental $ 228,680 $ 227,492 $ 22,721
Investment, net (Note 3) 146,437 151,516 130,960
Other 39,094 56,783 37,548
Total Revenue 414,211 435,791 191,229
Expenses:
General and administrative, includes
reimbursements to an affiliate of $162,548,
$138,995 and $146,464 (Note 5) 276,279 207,292 173,259
Bad debt expense 52,665 - -
Rental operations, exclusive of depreciation 104,426 111,221 8,495
Interest (Note 7) 118,057 118,095 19,685
Depreciation (Note 6) 45,459 42,547 13,575
Amortization (Note 2) 66,816 100,691 106,515
Provision for valuation of
investments in Local
Limited Partnerships (Note 4) 356,398 (137,073) (510,048)
Total Expenses 1,020,100 442,773 (188,519)
Income (loss) before equity in losses
of Local Limited Partnerships and minority
interest in loss of Local Limited
Partnership (605,889) (6,982) 379,748
Equity in losses of Local Limited
Partnerships, including income of
$822,529 in 1997 for prior year
adjustments (Note 4) (2,321,647) (2,041,502) (2,657,886)
Minority interest in loss of
Local Limited Partnership 258 372 135
Net Loss $ (2,927,278) $ (2,048,112) $ (2,278,003)
Net Loss allocated
To General Partners $ (29,273) $ (20,481) $ (22,780)
To Limited Partners (2,898,005) (2,027,631) (2,255,223)
$ (2,927,278) $ (2,048,112) $ (2,278,003)
Net Loss per Limited Partnership Unit
(50,000 Units) $ (57.96) $ (40.55) $ (45.10)
</TABLE>
The accompanying notes are an integral part of these combined financial
statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS LIMITED PARTNERSHIP
(A Limited Partnership)
COMBINED STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
For the Years Ended March 31, 1998, 1997 and 1996
<TABLE>
<CAPTION>
Net
Initial Investor Unrealized
General Limited Limited Gains
Partners Partners Partners (Losses) Total
<S> <C> <C> <C> <C> <C>
Balance at March 31, 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
Net Loss (29,273) - (2,898,005) - (2,927,278)
Net change in net unrealized
losses on marketable
securities available
for sale (Note 3) - - - 18,038 18,038
Balance at March 31, 1998 $ (394,183) $ 4,648 $ 4,420,925 $ 5,058 $ 4,036,448
</TABLE>
The accompanying notes are an integral part of these combined financial
statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS LIMITED PARTNERSHIP
(A Limited Partnership)
COMBINED STATEMENTS OF CASH FLOWS
For the Years Ended March 31, 1998, 1997 and 1996
<TABLE>
<CAPTION>
1998 1997 1996
<S> <C> <C> <C>
Cash flows from operating activities:
Net Loss $ (2,927,278) $ (2,048,112) $ (2,278,003)
Adjustments to reconcile net loss to net
cash used for operating activities:
Equity in losses of Local Limited Partnerships 2,321,647 2,041,502 2,657,886
Provision for valuation of investments in
Local Limited Partnerships 356,398 (137,073) (510,048)
Bad debt expense 52,665 - -
(Gain) loss on sale of marketable securities (1,711) 3,072 (9,470)
Cash distribution income included in cash
distributions from Local Limited Partnerships (21,181) (41,631) (5,000)
Depreciation and amortization 112,275 143,238 120,090
Minority interest in losses of Local Limited
Partnership (258) (372) (135)
Increase (decrease) in cash arising from changes
in operating assets and liabilities:
Tenant security deposits (23) (642) -
Mortgagee escrow deposits 4,210 (10,230) -
Replacement reserve escrow (306) (276) -
Other assets 1,395 33,895 (39,052)
Accounts payable to affiliate (12,017) 18,027 5,017
Accounts payable and accrued expenses (18,769) (47,928) (9,883)
Tenant security deposits payable 114 1,681 -
Net cash used for operating activities (132,839) (44,849) (68,598)
Cash flows from investing activities:
Purchases of marketable securities (2,292,303) (1,234,961) (1,547,205)
Proceeds from sales and maturities
of marketable securities 2,209,848 1,294,295 1,653,011
Advances to Local Limited
Partnerships (3,000) (321,650) -
Cash distributions received from Local
Limited Partnerships 30,116 163,216 343,431
Purchase of rental property and equipment - (65,285) -
Bond trust deposits (21,363) (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 (76,702) (180,454) 438,949
Net increase (decrease) in cash and cash
equivalents (209,541) (225,303) 370,351
Cash and cash equivalents, beginning 453,264 678,567 308,216
Cash and cash equivalents, ending $ 243,723 $ 453,264 $ 678,567
Supplemental disclosure:
Cash paid for interest $ 118,057 $ 118,095 $ -
</TABLE>
The accompanying notes are an integral part of these combined financial
statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS 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, 1998, the Managing General Partner has designated approximately $1,680,000
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 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 or distributions
received when the Partnership's respective carrying value of the Local Limited
Partnership has been reduced to a zero balance, the losses will be suspended to
be used against future income, and distributions received will be recorded as
income. In addition, valuation reserves are adjusted for equity losses in
subsequent years.
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 TAX CREDITS LIMITED PARTNERSHIP
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
2. Significant Accounting Policies (continued)
Basis of Presentation and Combination (continued)
The Managing General Partner has elected to report results of the Local Limited
Partnerships 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 as set forth in paragraph 22 of ARB 51,
that is included in the accompanying combined financial statements is as of
December 31, 1997, 1996 and 1995.
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 and has a controlling financial interest in the
Local Limited Partnership as set forth in paragraph 22 of ARB 51 these
combined financial statements include financial activity of Hughes for the years
ended December 31, 1997, 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, consistent with the presentation of the financial information of all
Local Limited Partnerships.
The Partnership recognizes a decline in the carrying value of its investment in
Local Limited Partnerships when there is evidence of a non-temporary decline in
the recoverable amount of the investment. 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 ninety days or less at acquisition and approximate fair
value.
Marketable Securities
Marketable securities consist primarily of U.S. treasury instruments and various
asset-backed investment vehicles. The Partnership's marketable 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. All marketable
securities have fixed maturities. 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.
Effect of recently issued Accounting Standard
The Financial Accounting Standards Board recently issued Statement of Financial
Accounting Standards No. 130, Reporting Comprehensive Income. The standard
requires that changes in comprehensive income be shown in a financial statement
that is displayed with the same prominence as other financial statements. The
standard is effective for fiscal years beginning after December 15, 1997. The
Partnership will adopt the new standard beginning in the first quarter of the
fiscal year ending March 31, 1999, but it is not expected to have a significant
effect on the Partnership's financial position or results of operations.
.
<PAGE>
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
2. Significant Accounting Policies (continued)
Deferred Charges
Bond financing costs incurred in connection with financing the construction of
Hughes have 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 are recorded in accordance with SFAS
121. Valuation allowances are established when the carrying value of such assets
exceeds their estimated receivable amounts. 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, except the bond trusts (see Note 7), 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.
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
3. Marketable Securities
A summary of marketable securities is as follows:
<TABLE>
<CAPTION>
Gross Gross
Unrealized Unrealized Fair
Cost Gains Losses Value
<S> <C> <C> <C> <C>
Debt securities issued by the
US Treasury and
other US Government
corporations and agencies $ 1,836,517 $ 6,426 $ (3,884) $ 1,839,059
Mortgage backed securities 183,661 2,516 - 186,177
Marketable securities
at March 31, 1998 $ 2,020,178 $ 8,942 $ (3,884) $ 2,025,236
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
</TABLE>
The contractual maturities at March 31, 1998 are as follows:
<TABLE>
<CAPTION>
Fair
Cost Value
<S> <C> <C>
Due in one year or less $ 638,382 $ 638,792
Due in one year to five years 1,198,135 1,200,267
Mortgage backed securities 183,661 186,177
$2,020,178 $ 2,025,236
</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 $2,210,000, $1,294,000 and $1,653,000 for the
years ended March 31, 1998, 1997 and 1996, respectively. Included in investment
income are gross gains of $7,098, $4,492 and $16,733 and gross losses of $5,387,
$7,564 and $7,263 which were realized on these sales during the years ended
March 31, 1998, 1997 and 1996, 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.
<PAGE>
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
4. Investments in Local Limited Partnerships (continued)
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, with the exception of Barrington Manor, Graver Inn, 600 Dakota and
Duluth which are 49.5%. Upon dissolution, proceeds will be distributed according
to each respective partnership agreement.
A summary of Investments in Local Limited Partnerships, excluding Hughes, at
March 31, 1998, 1997 and 1996 is as follows:
<TABLE>
<CAPTION>
1998 1997 1996
<S> <C> <C> <C>
Capital contributions to Local Limited
Partnerships and purchase price paid to
withdrawing partners of Local Limited
Partnerships $ 36,256,165 $ 36,256,165 $ 36,256,165
Cumulative equity in losses of Local Limited
Partnerships (excluding cumulative
unrecognized losses of $22,515,719,
$12,515,308 and $9,589,820 at March 31, 1998,
1997 and 1996, respectively) (35,762,306) (33,461,841) (31,456,648)
Cumulative cash distributions received
from Local Limited Partnerships (1,602,549) (1,572,433) (1,414,539)
Investments in Local Limited Partnerships
before adjustment (1,108,690) 1,221,891 3,384,978
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 (1,134,414) (1,070,822) (973,355)
Investments in Local Limited Partnerships 2,527,473 4,921,646 7,182,200
Reserve for Valuation of Investments in
Local Limited Partnerships (685,201) (328,803) (787,526)
$ 1,842,272 $ 4,592,843 $ 6,394,674
</TABLE>
The 1997, 1996 and 1995 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 1997, 1996 and 1995 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 1997. Equity in losses of Local Limited
Partnerships for the years ended March 31, 1998, 1997 and 1996 includes $55,803,
$449,345 and $500,670, 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 its investment in
five Local Limited Partnerships, Graver Inn, Sierra Pointe, Barrington Manor,
600 Dakota and Duluth, because there is evidence of a non-temporary decline in
the recoverable amount of these investments.
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
4. Investments in Local Limited Partnerships (continued)
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.
Summarized financial information as of December 31, 1997, 1996 and 1995 (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 which the Partnership has invested as of that date is as
follows:
Summarized Balance Sheets - as of December 31,
<TABLE>
<CAPTION>
1997 1996 1995
<S> <C> <C> <C>
Assets:
Investment property, net $ 94,727,330 $ 104,825,788 $ 108,942,454
Current assets 2,033,143 2,686,076 2,801,351
Other assets 9,048,810 9,247,079 9,921,430
Total Assets $ 105,809,283 $ 116,758,943 $ 121,665,235
Liabilities and Partners' Deficit:
Current liabilities (includes current portion
of long-term debt) $ 17,747,512 $ 14,381,389 $ 5,948,489
Other debt 4,551,240 15,883,277 14,021,083
Long-term debt 110,449,979 100,798,039 110,465,789
Total Liabilities 132,748,731 131,062,705 130,435,361
Partners' Deficit:
Partnership Deficit (26,663,482) (14,087,983) (8,764,328)
Other Partners' Deficit (275,966) (215,779) (5,798)
Total Partners' Deficit (26,939,448) (14,303,762) (8,770,126)
Total Liabilities and Partners' Deficit $ 105,809,283 $ 116,758,943 $ 121,665,235
Summarized Income Statements - for
the years ended December 31,
1997 1996 1995
Rental and other revenue $ 19,707,452 $ 19,530,795 $ 21,087,845
Expenses:
Interest 9,720,959 9,754,129 10,481,568
Operating 17,741,869 10,860,840 10,544,604
Depreciation and amortization 4,671,464 4,717,555 5,269,753
Total Expenses 32,134,292 25,332,524 26,295,925
Net loss $ (12,426,840) $ (5,801,729) $ (5,208,080)
Partnership's share of net loss (1996 includes an
adjustment relating to prior
year as discussed above) $ (12,300,877) $ (4,925,359) $ (5,153,645)
Other Partners' share of net loss $ (125,963) $ (110,302) $ (54,435)
</TABLE>
For the years ended March 31, 1998, 1997 and 1996, the Partnership has not
recognized $10,000,411, $2,925,488 and $2,500,759, respectively, in equity in
losses relating to twenty Local Limited Partnerships where cumulative equity in
losses and cumulative distributions exceeded its total investments.
<PAGE>
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
$26,663,482 differs from the Partnership's Investments in Local Limited
Partnerships before adjustment of $1,108,690 principally because: a) the
Partnership has not recognized $22,515,719 of equity in losses relating to Local
Limited Partnerships whose cumulative equity in losses and cumulative cash
distributions exceeded their total investments and b) purchase price paid to
original Limited Partners by the Partnership have not been reflected in the
balance sheets of certain Local Limited Partnerships.
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, 1998, 1997 and 1996 is $162,548, $138,995
and $146,464, respectively, that has been paid or is payable by the Partnership
as reimbursement for salaries and benefits. At March 31, 1998 and 1997, $22,773
and $34,790, 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 Windsor Court, Rolling Green and Terrace,
three properties in which the Partnership has invested. ( In the years ended
December 31, 1996 and 1995, BFPM also managed Sierra Vista.) Included in
operating expenses in the summarized income statements in Note 4 to the
Financial Statements is $136,095, $194,057 and $181,269 of fees earned by BFPM
for the years ended December 31, 1997, 1996 and 1995, respectively.
6. Rental Property
Real estate and personal property belonging to Hughes are recorded in
accordance with SFAS 121, the components of which are as follows at
December 31, 1997 and 1996:
<TABLE>
<CAPTION>
1997 1996
<S> <C> <C>
Land $ 29,008 $ 29,008
Building and improvements 1,490,659 1,490,659
Equipment and furnishings 26,817 26,817
1,546,484 1,546,484
Less accumulated depreciation (433,837) (388,378)
Total $ 1,112,647 $1,158,106
</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
withdrew funds from this account in 1996 and 1995. The amounts withdrawn have
not been replaced, and consequently, Hughes is in default of its lease
agreement.
<PAGE>
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 of Hughes and successfully negotiated
a Forbearance Agreement with the trustee whereby the mortgage arrears and
capital repairs would be funded from Partnership and bond reserves. The
agreement calls for interest payments on June 1 and December 1, annually,
through 2005 of $58,987.50 at each payment date. On December 1, 2005, all
arrears are due and payable.
Based on the unique terms of the financing and lack of available market data
for agreements with similar characteristics, 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, 1997 and 1996 are as follows:
1997 1996
Bond reserve trust $ 79,358 $ 75,571
Bond trust 28,214 10,638
$ 107,572 $ 86,209
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, 1997 and 1996 is $79,358 and $75,571, respectively. Fair
value as of December 31, 1997 and 1996 is $80,413 and $76,725, respectively.
Unrealized gains of $1,055 and $1,154 in 1997 and 1996, respectively, have not
been recognized as the notes will be held to maturity.
8. Transfer of Interests in Local Limited Partnerships
On November 10, 1997, the Managing General Partner transferred 50% of its
interest in capital and profits of Barrington Manor, Graver Inn, 600 Dakota and
Duluth to the local general partner. Included in this transfer is a put option.
The put option grants the Managing General Partner the right to put the
Partnership's remaining interest to the local general partner anytime after one
year has elapsed. For financial reporting purposes, the Partnership has written
down the carrying value of these investments in Local Limited
Partnerships to zero, because it is unknown as to whether the Partnership will
be able to recover its invested balances. The Partnership will retain its full
share of tax credits until such time as the remaining interest is put to the
local general partner.
<PAGE>
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
9. Federal Income Taxes
A reconciliation of the loss reported in the Combined Statements of Operations
for the fiscal years ended March 31, 1998, 1997 and 1996 to the loss reported
for federal income tax purposes for the years ended December 31, 1997, 1996 and
1995 are as follows:
<TABLE>
<CAPTION>
1998 1997 1996
<S> <C> <C> <C>
Net Loss per Statements of Operations $ (2,927,278) $ (2,048,112) $ (2,278,003)
Adjustment to reflect March 31, fiscal
year-end to December 31,
taxable year-end (291,494) 230,663 26,458
Provision for valuation of Investments in
Local Limited Partnerships not deductible
for tax purposes 356,398 (458,723) (510,048)
Amortization of acquisition fees and
expenses for tax purposes over
amortization for financial
reporting purposes (109,884) (94,149) (67,497)
Adjustment for equity in losses of Local
Limited Partnerships for financial
reporting purposes over (under)
equity in losses for tax purposes 5,611,504 (1,829,071) (700,632)
Equity in losses of Local Limited
Partnerships not recognized
for financial reporting purposes (10,000,411) (2,925,488) (2,500,759)
Other 353,134 (22,963) (29,565)
Net loss for federal income tax purposes $ (7,008,031) $(7,147,843)$ (6,060,046)
</TABLE>
The differences of the assets and liabilities of the Partnership for
financial reporting purposes and tax reporting purposes as of March 31, 1998
are as follows:
<TABLE>
<CAPTION>
Financial Tax
Reporting Reporting
Purposes Purposes Differences
<S> <C> <C> <C>
Investments in Local Limited Partnerships $ 1,842,272 $ (25,958,295) $ (27,800,567)
Other assets $ 3,586,665 $ 8,908,049 $ (5,321,384)
Liabilities $ 1,333,900 $ 28,034 $ 1,305,866
</TABLE>
The differences in assets and liabilities of the Partnership for financial
reporting purposes are primarily attributable to: (i) for financial reporting
purposes, the Partnership combines the financial statements of one Local Limited
Partnership with its financial statements; for tax reporting purposes, this
entity is carried on the equity method; (ii) the cumulative equity in loss
from Local Limited Partnerships, including the combined entity, for tax
reporting purposes is approximately $5,334,000 greater than for financial
reporting purposes, including approximately $22,516,000 of losses the
Partnership has not recognized relating to twenty Local Limited Partnerships
whose cumulative equity in losses exceeded its total investment; (iii) the
amortization of acquisition fees for tax reporting purposes exceeds financial
reporting purposes by approximately $520,000; (iv) approximately $7,000 of
cash distributions received from Local Limited Partnerships during the quarter
ended March 31, 1998 are not included in the Partnership's Investments in
Local Limited Partnerships for tax reporting purposes at December 31, 1997;
and (v) organizational and offering costs of approximately $6,165,000 that
have been capitalized for tax reporting purposes are charged to Limited
Partners' equity for financial reporting purposes.
<PAGE>
NOTES TO THE COMBINED FINANCIAL STATEMENTS(continued)
9. Federal Income Taxes (continued)
The differences of the assets and liabilities of the Partnership for financial
reporting purposes and tax purposes as of March 31, 1997 are as follows:
<TABLE>
<CAPTION>
Financial Tax
Reporting Reporting
Purposes Purposes Differences
<S> <C> <C> <C>
Investments in Local Limited Partnerships $ 4,592,843 $ (18,840,655) $ (23,433,498)
Other Assets $ 3,776,264 $ 8,797,014 $ (5,020,750)
Liabilities $ 1,364,572 $ 26,608 $ 1,337,964
</TABLE>
The difference in assets and liabilities of the Partnership for financial
reporting purposes are primary attributable to: (i) for financial reporting
purposes, the Partnership combines the financial statements of one Local Limited
Partnership with its financial statements; for tax reporting purposes, this
entity is carried on the equity method; (ii) the cumulative equity in loss
from Local Limited Partnerships, including the combined entity, for tax
reporting purposes is approximately $10,924,000 greater than for financial
reporting purposes, including approximately $12,515,000 of losses the
Partnership has not recognized relating to fourteen local limited
partnerships whose cumulative equity in losses exceeded its total investment;
(iii) the amortization of acquisition fees for tax reporting purposes exceeds
financial reporting purposes by approximately $410,000; (iv) approximately
$130,000 of cash distributions received from Local Limited Partnerships during
the quarter ended March 31, 1997 are not included in the Partnership's
Investments in Local Limited Partnerships for tax reporting
purposes at December 31, 1997; and (v) organizational and offering costs of
approximately $6,165,000 have been capitalized for tax reporting purposes are
charged to Limited Partners' equity for financial reporting purposes.
<PAGE>
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
10. Supplemental Combining Schedules
Balance Sheets
<TABLE>
<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 $ 241,259 $ 2,464 $ - $ 243,723
Tenant security deposits - 4,731 - 4,731
Accounts receivable, net 56,490 - (53,490) 3,000
Marketable securities, at fair value 2,025,236 - - 2,025,236
Mortgagee escrow deposits - 6,020 - 6,020
Replacement reserve escrow - 6,398 - 6,398
Bond trusts - 107,572 - 107,572
Investments in Local Limited
Partnerships,net 1,721,637 - 120,635 1,842,272
Deferred charges, net - 45,145 - 45,145
Rental property at cost, net - 1,112,647 - 1,112,647
Other assets 25,779 6,414 - 32,193
Total Assets $ 4,070,401 $ 1,291,391 $ 67,145 $ 5,428,937
Liabilities and Partners' Equity
Accounts payable to affiliates $ 22,773 $ 53,490 $ (53,490) $ 22,773
Accounts payable and accrued
expenses 11,180 16,397 - 27,577
Accrued interest - 68,819 - 68,819
Tenant security deposits payable - 4,731 - 4,731
Bonds payable - 1,210,000 - 1,210,000
Total Liabilities 33,953 1,353,437 (53,490) 1,333,900
Minority interest in Local Limited
Partnership - - 58,589 58,589
General, Initial and Investor
Limited Partners' Equity 4,031,390 (62,046) 62,046 4,031,390
Net unrealized gains 5,058 - - 5,058
Total Partners' Equity 4,036,448 (62,046) 62,046 4,036,448
Total Liabilities and
Partners' Equity $ 4,070,401 $ 1,291,391 $ 67,145 $ 5,428,937
</TABLE>
(A) As of March 31, 1998.
(B) As of December 31, 1997.
<PAGE>
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
10. Supplemental Combining Schedules (continued)
Statements of Operations
<TABLE>
<CAPTION>
Boston Financial
Qualified Housing Hughes
Tax Credits Apartments
L.P. (A) Ltd.(B) Eliminations Combined
<S> <C> <C> <C> <C>
Revenue:
Rental $ - $ 228,680 $ - $ 228,680
Investment 139,325 7,112 - 146,437
Other 29,506 9,588 - 39,094
Total Revenue 168,831 245,380 - 414,211
Expenses:
General and administrative 276,279 - - 276,279
Bad debt expense 52,665 - - 52,665
Rental operations, exclusive
of depreciation - 104,426 - 104,426
Interest - 118,057 - 118,057
Depreciation - 45,459 - 45,459
Amortization 63,592 3,224 - 66,816
Provision for valuation of
investments in Local
Limited Partnerships 356,398 - - 356,398
Total Expenses 748,934 271,166 - 1,020,100
Loss before equity in losses
of Local Limited Partnerships
and minority interest (580,103) (25,786) - (605,889)
Equity in losses of Local
Limited Partnerships (2,347,175) - 25,528 (2,321,647)
Minority interest in loss of
Local Limited Partnership - - 258 258
Net Loss $ (2,927,278) $ (25,786) $ 25,786 $ (2,927,278)
</TABLE>
(A) For the year ended March 31, 1998.
(B) For the year ended December 31, 1997.
<PAGE>
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
10. Supplemental Combining Schedules (continued)
Statements of Cash Flows
<TABLE>
<CAPTION>
Boston Financial
Qualified Housing Hughes
Tax Credits Apartments
L.P. (A) Ltd.(B) Eliminations Combined
<S> <C> <C> <C> <C>
Cash flows from operating activities:
Net Loss $ (2,927,278) $ (25,786) $ 25,786 $ (2,927,278)
Adjustments to reconcile net loss to
net cash provided by (used for)
operating activities:
Equity in losses of Local Limited
Partnerships 2,347,175 - (25,528) 2,321,647
Provision for valuation
of investments in Local
Limited Partnerships 356,398 - - 356,398
Bad debt expense 52,665 - - 52,665
Loss on sale of marketable securities (1,711) - - (1,711)
Cash distribution income included in
cash distributions from
Local Limited Partnerships (21,181) - - (21,181)
Depreciation and amortization 63,592 48,683 - 112,275
Minority interest in losses of Local
Limited Partnership - - (258) (258)
Increase (decrease) in cash arising
from changes in operating assets
and liabilities:
Tenant security deposits - (23) - (23)
Mortgagee escrow deposits - 4,210 - 4,210
Replacement reserve escrow - (306) - (306)
Other assets 5,145 (3,750) - 1,395
Accounts payable to affiliate (12,017) - - (12,017)
Accounts payable and accrued
expenses (16,910) (1,859) - (18,769)
Tenant security deposits payable - 114 - 114
Net cash provided by (used for)
operating activities (154,122) 21,283 - (132,839)
Cash flows from investing activities:
Purchases of marketable securities (2,292,303) - - (2,292,303)
Proceeds from sales and maturities
of marketable securities 2,209,848 - - 2,209,848
Advances to Local Limited
Partnerships (3,000) - - (3,000)
Cash distributions received from
Local Limited Partnerships 30,116 - - 30,116
Purchase of rental property and
equipment - - - -
Bond trust deposits - (21,363) - (21,363)
Net cash used for investing activities (55,339) (21,363) - (76,702)
</TABLE>
<PAGE>
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
10. Supplemental Combining Schedules (continued)
Statements of Cash Flows
<TABLE>
<CAPTION>
Boston Financial
Qualified Housing Hughes
Tax Credits Apartments
L.P. (A) Ltd.(B) Eliminations Combined
<S> <C> <C> <C> <C>
Net decrease in cash and cash equivalents (209,461) (80) - (209,541)
Cash and cash equivalents, beginning 450,720 2,544 - 453,264
Cash and cash equivalents, ending $ 241,259 $ 2,464 $ - $ 243,723
</TABLE>
(A) For the year ended March 31, 1998.
(B) For the year ended December 31, 1997.
<TABLE>
<CAPTION>
COST OF INTEREST AT AQUISITION DATE GROSS AMOUNT
AT WHICH
CARRIED AT
DECEMBER 31,
1997
------------------------------------- ---------------
NET IMPROVEMENTS
NUMBER TOTAL BUILDINGS / CAPITALIZED
OF ENCUM- IMPROVEMENTS SUBSEQUENT TO LAND AND
DESCRIPTION UNITS BRANCES * LAND & EQUIPMENT ACQUISITION IMPROVEMENTS
- ----------- ----- --------- ---- ----------- ----------- ------------
<S> <C> <C> <C> <C> <C> <C>
Low and Moderate
Income Apartment Complexes
Barrington Manor 18 $ 615,000 $ 30,000 $ 555,638 $ 242,106 $ 32,011
Fargo, ND
Bingham Housing 24 1,163,496 48,934 362,172 1,031,324 48,934
Associates
Bingham, ME
Birmingham Village 24 1,158,176 61,900 190,424 1,166,788 61,900
Randolph, ME
Bittersweet Lane 35 2,427,903 69,300 2,884,207 374,582 69,300
Randolph , MA
Coronodo Courts 145 3,731,253 452,331 4,995,460 (33,448) 452,331
Douglas, AZ
Elmore Hotel 60 3,261,876 12,500 2,976,388 515,543 12,500
Great Falls, MT
Graver Inn 70 1,971,386 30,000 2,208,960 843,461 40,914
Fargo, ND
Hazel Winthrop Apartments 30 2,117,621 45,000 2,548,540 (115,800) 45,000
Chicago, IL
Hughes Apartments 47 1,210,000 28,000 1,260,066 258,418 29,008
Mandan, ND
Lakeview Heights 83 2,793,695 217,588 2,896,224 274,181 217,588
Clearfield, UT
Medford Hotel 76 3,186,176 12,500 2,747,997 1,853,845 12,500
Medford, OR
Heritage View 24 1,162,225 64,800 690,736 682,131 64,800
New Sweden, ME
Rolling Green Apartments 166 4,788,046 286,350 6,254,575 130,329 286,350
Edmond, OK
Sierra Pointe Apartments 209 7,152,930 382,000 8,001,390 1,069,030 336,087
Aurora, CO
Terrace Apartments 206 5,249,923 350,000 6,470,754 (265,833) 369,724
Oklahoma City, OK
Trenton Apartments 37 841,706 154,000 899,293 100,993 154,000
Salt Lake City, UT
Windsor Court Apartments 143 4,498,473 280,000 5,579,636 (247,415) 282,350
Aurora, CO
Sierra Vista 160 6,288,417 434,866 8,056,238 18,894 434,866
Las Vegas, NV
Willow Peg Village 57 1,476,803 125,000 1,741,799 4,166 125,000
Ricon, GA
Pebble Creek 352 7,955,434 794,000 9,563,687 244,473 734,800
Arlington, TX
Pine Village 36 938,715 40,000 960,000 189,698 40,000
Pine Mountain, GA
Talbot Village 24 601,258 21,775 545,547 192,054 20,000
Talbolton, GA
Logan Plaza 130 10,985,662 969,289 13,287,069 355,742 969,289
New York, NY
Cass House 111 7,993,802 222,000 11,423,209 47,910 222,000
Boston, MA
Verdean Gardens (A) 110 7,621,194 214,992 8,891,168 (3,764,800) 214,992
New Bedford, MA
Country Estates 24 595,011 22,500 734,409 0 22,500
Glenville, GA
Boulevard Commons 212 10,455,270 318,000 3,580,316 10,892,825 318,000
Chicago, IL
Chestnut Lane 50 1,471,733 93,484 848,922 888,481 93,322
Newman, GA
600 Dakota Properties 28 640,000 64,353 769,608 36,538 63,670
Wahpeton, ND
Duluth 11 257,454 24,000 363,810 13,214 24,000
Souix Falls, SD
Delmar 16 416,889 75,000 495,203 25,015 75,000
Gillette, WY
Park Terrace 101 3,547,906 393,713 4,781,404 188,147 393,713
Dundalk, MD
Brentwood Manor II 22 769,131 44,980 1,118,947 20,991 44,980
Nashua, NH
Hillcrest Apts 3 24 591,329 17,000 727,587 13,579 17,000
Perryville, MO
-------------------------------------------------------------------------------------------------
Subtotal 2,865 $109,935,893 $6,400,155 $119,411,383 $17,247,162 $6,328,429
Less Combined Entity 47 1,210,000 28,000 1,260,066 258,418 29,008
-------------------------------------------------------------------------------------------------
Total 2,818 108,725,893 6,372,155 118,151,317 16,988,744 6,299,421
=================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
LIFE ON
WHICH
BUILDINGS DEPRECIATION
AND ACCUMULATED DATE IS COMPUTED DATE
DESCRIPTION IMPROVEMENTS TOTAL DEPRECIATION BUILT (YEARS) ACQUIRED
<S> <C> <C> <C> <C> <C> <C>
Low and Moderate
Income Apartment
Complexes
Barrington Manor $ 795,733 $ 827,744 $ 224,282 1927 various 12/31/87
Fargo, ND
Bingham Housing 1,393,496 1,442,430 328,407 1988 various 12/30/87
Associates
Bingham, ME
Birmingham Village 1,357,212 1,419,112 318,334 1988 various 12/30/87
Randolph, ME
Bittersweet Lane 3,258,789 3,328,089 1,156,282 1988 various 10/27/87
Randolph , MA
Coronodo Courts 4,962,012 5,414,343 1,675,292 1945 various 12/18/87
Douglas, AZ
Elmore Hotel 3,491,931 3,504,431 1,276,916 1917 various 12/22/87
Great Falls, MT
Graver Inn 3,041,507 3,082,421 873,257 1917 various 12/31/87
Fargo, ND
Hazel Winthrop 2,432,740 2,477,740 670,588 1910 various 12/30/87
Apartments
Chicago, IL
Hughes Apartments 1,517,476 1,546,484 433,837 1926 various 12/31/87
Mandan, ND
Lakeview Heights 3,170,405 3,387,993 1,013,691 1972 various 12/30/87
Clearfield, UT
Medford Hotel 4,601,842 4,614,342 1,363,770 1915 various 12/22/87
Medford, OR
Heritage View 1,372,867 1,437,667 325,665 1988 various 12/30/87
New Sweden, ME
Rolling Green Apartments 6,384,904 6,671,254 2,515,393 1974 various 09/30/87
Edmond, OK
Sierra Pointe Apartments 9,116,333 9,452,420 3,709,215 1973 various 09/30/87
Aurora, CO
Terrace Apartments 6,185,197 6,554,921 2,538,092 1970 various 11/20/87
Oklahoma City, OK
Trenton Apartments 1,000,286 1,154,286 320,254 1925 various 12/30/87
Salt Lake City, UT
Windsor Court Apartments 5,329,871 5,612,221 2,170,007 1974 various 12/30/87
Aurora, CO
Sierra Vista 8,075,132 8,509,998 3,319,805 1963 various 09/01/87
Las Vegas, NV
Willow Peg Village 1,745,965 1,870,965 646,056 1989 various 03/01/88
Ricon, GA
Pebble Creek 9,867,360 10,602,160 2,509,432 1977/81 various 06/20/88
Arlington, TX
Pine Village 1,149,698 1,189,698 413,465 1988 various 03/01/88
Pine Mountain, GA
Talbot Village 739,376 759,376 258,736 1988 various 03/01/88
Talbolton, GA
Logan Plaza 13,642,811 14,612,100 3,458,250 1988 various 05/10/88
New York, NY
Cass House 11,471,119 11,693,119 3,797,096 1988 various 06/08/88
Boston, MA
Verdean Gardens (A) 5,126,368 5,341,360 3,383,960 1989 various 05/31/88
New Bedford, MA
Country Estates 734,409 756,909 287,711 1988 various 03/01/88
Glenville, GA
Boulevard Commons 14,473,141 14,791,141 4,758,502 1920 various 07/14/88
Chicago, IL
Chestnut Lane 1,737,565 1,830,887 602,208 1989 various 08/01/88
Newman, GA
600 Dakota 806,829 870,499 206,037 1988 various 10/01/88
Properties
Wahpeton, ND
Duluth 377,024 401,024 102,858 1989 various 10/01/88
Souix Falls, SD
Delmar 520,218 595,218 185,951 1988 various 10/01/88
Gillette, WY
Park Terrace 4,969,551 5,363,264 1,654,479 1989 various 01/20/89
Dundalk, MD
Brentwood Manor II 1,139,938 1,184,918 488,227 1971 various 01/20/89
Nashua, NH
Hillcrest Apts 3 741,166 758,166 232,668 1989 various 03/31/89
Perryville, MO
-------------------------------------------
Subtotal $136,730,271 $143,058,700 $47,218,723
Less Combined Entity 1,517,476 1,546,484 433,837
-------------------------------------------
Total 135,212,795 141,512,216 46,784,886
===========================================
</TABLE>
<PAGE>
(1) The aggregate cost for Federal Income Tax purposes is approximately
$149,059,000.
* 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>
Summary of property owned and accumulated depreciation:
Property Owned December 31, 1997
- --------------------------------------------------------------------------------
Balance at beginning of period $148,607,718
Additions during period:
Less current year Hughes Apartments (1,546,484)
Other acquisitions 75,769
Improvements etc. 525,109
-----------------
(945,606)
Deductions during period:
Cost of real estate and fixed assets sold (149,896)
Write down of fixed assets (6,000,000)
-----------------
(6,149,896)
-----------------
Balance at close of period $141,512,216
=================
Property Owned December 31, 1996
- --------------------------------------------------------------------------------
Balance at beginning of period $148,106,716
Additions during period:
Other acquisitions 18,812
Improvements etc. 512,563
-----------------
531,375
Deductions during period:
Cost of real estate and fixed assets sold (30,373)
Reclassification to intangible assets 0
-----------------
(30,373)
-----------------
Balance at close of period $148,607,718
=================
Property Owned December 31, 1995
- --------------------------------------------------------------------------------
Balance at beginning of period $147,713,079
Additions during period:
Other acquisitions 8,571
Improvements etc. 659,703
-----------------
668,274
Deductions during period:
Cost of real estate and fixed assets sold (274,637)
Reclassification to intangible assets 0
-----------------
(274,637)
-----------------
Balance at close of period $148,106,716
=================
<PAGE>
Accumulated Depreciation December 31, 1997
- ---------------------------------------------------------------------
Balance at beginning of period $42,623,824
Additions during period:
Less current year hughes Apt. (433,837)
Depreciation 4,594,899
--------------
Balance at close of period $46,784,886
==============
Accumulated Depreciation December 31, 1996
- ---------------------------------------------------------------------
Balance at beginning of period $38,028,894
Additions during period:
Depreciation 4,594,930
--------------
Balance at close of period $42,623,824
==============
Accumulated Depreciation December 31, 1995
- ---------------------------------------------------------------------
Balance at beginning of period $34,318,321
Additions during period:
Depreciation 3,710,573
--------------
Balance at close of period $38,028,894
==============
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING LIMITED PARTNERSHIP
(A Limited Partnership)
Annual Report on form 10-K
For The Year Ended March 31, 1998
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, 1997 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, 1997, 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 23, 1998 on our consideration of BOULEVARD COMMONS LIMITED
PARTNERSHIP's internal control structure and reports dated January 23, 1998 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 14 through 17) 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 (847) 853-2580
January 23, 1998
<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]
Michael Sczekan & Co., P.C.
Certified Public Accountants
7936 East Arapahoe Court, Suite 2800
Englewood, CO 80112
Telephone (303) 770-3356
Fax (303) 770-3357
INDEPENDENT AUDITORS' REPORT
To the Partners of HUD Field Office
Sundance Housing Associates, Ltd. Denver, CO
Denver, Colorado
We have audited the accompanying Balance Sheet of Sundance Housing Associates,
Ltd., FHA Project Number 101-44154-SR-PR, as of December 31, 1997, 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
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., as of December 31, 1997, 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 and HUD Programs and, we have also issued a report dated
February 5, 1998, on our consideration of Sundance Housing Associates, Ltd.'s
internal control structure and reports dated February 5, 1998 on its compliance
with laws and regulations and compliance with laws and requlations and specific
requirements applicable to major HUD programs and specific requirements
applicable to Fair Housing and Non-discrimination.
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
12 through 18 is presented for purposes of additional analysis and is not a
required part of the basic financial statements of the Americana Redevelopment.
Such information has been subjected to the same auditing procedures applied in
the examination of 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/Michael Sczkan
Michael Sczekan Co., P.C.
Certified Public Accountants
Englewood, CO
February 5, 1998
<PAGE>
Reznick Fedder & Silverman
Certified Public Accountants
Business Consultants
745 Atlantic Avenue
Suite 800
Boston, MA 02111-2735
Phone (617) 423-5855
FAX (617) 423-6651
INDEPENDENT AUDITORS' REPORT
To the Partners
Sundance Housing Associates, Ltd.
We have audited the accompanying balance sheet of Sundance Housing
Associates, Ltd. as of December 31, 1996, 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 Sundance Housing Associates,
Ltd. as of December 31, 1996, 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 26
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, except for that portion marked "unaudited" on which we express
no 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, and the "Consolidated Audit
Guide for Audits of HUD Programs", we have also issued reports dated January 27,
1997, on our consideration of Sundance 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
January 27, 1997 Identification Number:
52-1088612
Audit Principal: Phillip A. Weitzel
<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 purpose 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]
[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, 1997, 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 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, 1997, 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 5 to the financial statements,
the Partnership has incurred substantial losses from operations, had negative
working capital at December 31, 1997 and is under a workout agreement with
Department of HUD on it's mortgage. These factors raise 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.
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.
In accordance with Government Auditing Standards, we have also issued a report
dated January 22, 1998 on our consideration of 225 NEW YORK AVENUE, LTD T/A
PEBBLE CREEK APARTMENTS; internal control and reports dated January 22, 1998 on
its compliance with laws and regulations.
/s/ Aronson, Fetridge & Weigle
Rockville, Maryland
January 22, 1998
<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 paragraph, 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 purpose 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
Rockville, Maryland
January 12, 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, 1997, and the related statements of
changes in partners' equity (deficiency) (MHFA Form 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, 1997, 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.
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 form the outcome of this
uncertainty.
/s/ Ziner & Company, P.C.
Boston, MA
January 27, 1998
<PAGE>
<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.
Boston, MA
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.
Boston, MA
January 23, 1996
<PAGE>
[[LOGO]
ZINER & COMPANY, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of
Verdean Gardens Associates
Limited Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of
Verdean Gardens Associates Limited Partnership (a Massachusetts limited
partnership) (Project No. 84-082-S) as of December 31, 1997, 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, 1997, 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 G 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 G. The financial statements
do not include any adjustments that might result from the outcome of this
uncertainty.
/s/ Ziner & Company, P.C.
Boston, MA
January 28, 1998
<PAGE>
[[LOGO]
ZINER & COMPANY, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of
Verdean Gardens Associates
Limited Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of
Verdean Gardens Associates Limited Partnership (a Massachusetts limited
partnership) (Project No. 84-082-S) as of December 31, 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.
Boston, MA
January 27, 1997
<PAGE>
[LOGO]
ZINER & COMPANY, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of
Verdean Gardens Associates
Limited Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of
Verdean Gardens Associates Limited Partnership (a Massachusetts limited
partnership) (Project No. 84-082-S) as of December 31, 1995, and the related
statements of changes in partners' equity (deficiency) (MHFA Form F.C.-3C)
operations (MHFA Form F.C.-2A) and cash flows (MHFA Forms F.C.-4A, -4B & -4C)
for the year then ended. These financial statements are the responsibility of
the general partners. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by the
general partners, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Verdean Gardens Associates
Limited Partnership as of December 31, 1995, and the results of its operations,
its cash flows and its changes in partners' equity (deficiency) for the year
then ended in conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the
Partnership will continue as a going concern. As discussed in Note H to the
financial statements, the Partnership has suffered recurring losses from
operations and has a net working capital deficiency, which raises substantial
doubt about its ability to continue in existence. The general partners' plans
regarding these matters are also discussed in Note H. The financial statements
do not include any adjustments that might result from the outcome of this
uncertainty.
/s/ Ziner & Company, P.C.
Boston, MA
January 26, 1996
<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, 1997 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, 1997 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 19, 1998 on my consideration of Medford Hotel Associates Limited
Partnership's internal control structure and a report dated January 19, 1998 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 19, 1998
<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 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
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
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, 1997 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, 1997 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 20, 1998 on my consideration of Oregon Landmark-Three Limited
Partnership's internal control structure and a report dated January 20, 1998 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 20, 1998
<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>
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, 1997 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, 1997, 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 22, 1998, on our
consideration of Trenton Apartments, Ltd. (a limited partnership) (HUD Project
No. 105-94006) internal control structure and reports dated January 22, 1998, 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 23) 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 22, 1998
<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT
To the Partners of
Trenton Apartments, Ltd.
We have audited the accompanying balance sheet of Trenton Apartments, Ltd. (a
limited partnership) (HUD Project No. 105-94006) as of December 31, 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>
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>
<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT
To the Partners of
Lakeview Heights Apartments, Ltd.
We have audited the accompanying balance sheet of Lakeview Heights Apartments,
Ltd. (a limited partnership) (HUD Project No. 105-94007) as of December 31, 1997
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,
1997, 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 21, 1998, on our
consideration of Lakeview Heights Apartments, Ltd's. (a limited partnership)
(HUD Project No. 105-94007) internal control structure and reports dated January
21, 1998, 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 23) 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 21, 1998
<PAGE>
INDEPENDENT ACCOUNTANTS' REPORT
To the Partners of
Lakeview Heights Apartments, Ltd.
We have audited the accompanying balance sheet of Lakeview Heights Apartments,
Ltd. (a limited partnership) (HUD Project No. 105-94007) as of December 31, 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 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 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>
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 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 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>
<PAGE>
[LETTERHEAD]
[Logo]
Reznick Fedder & Silverman
Certified Public Accountants * A Professional Corporation
INDEPENDENT AUDITORS' REPORT
To the Partners
Windsor Court Housing Associates, Ltd.
We have audited the accompanying balance sheet of Windsor Court Housing
Associates, Ltd. as of December 31, 1997, 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. as of December 31, 1997, and the results of its operations, the
changes in partners' deficit and it's 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 and the "Consolidated Audit
Guide for Audits of HUD Programs, we have also issued reports dated January 26,
1998 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, fair housing and non-discrimination, and laws and
regulations applicable to the financial statements.
/s/ Reznick Fedder & Silverman
Boston, Massachusetts Federal Employer
January 26, 1998 Identification Number:
52-1088612
Audit Principal: Phillip A. Weitzel
<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. as of December 31, 1996, 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. as of December 31, 1996, 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 26
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 January 30, 1997, 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
January 30, 1997 Identification Number:
52-1088612
Audit Principal: Phillip A. Weitzel
<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]
Reznick Fedder & Silverman
Certified Public Accountants * A Professional Corporation
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, 1997, 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, 1997, 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 21 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 and the "Consolidated Audit
Guide for Audits of HUD Programs", we have also issued reports dated January 21,
1998, 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 non-discrimination, and laws
and regulations applicable to the financial statements.
/s/ Reznick Fedder & Silverman
Boston, Massachusetts Federal Employer
January 21, 1998 Identification Number:
52-1088612
Audit Principal: Phillip A. Weitzel
<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, 1996, 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, 1996, and the results of its operations, the changes in
partners' deficit and its 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 26
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 and the "Consolidated Audit
Guide for Audits of HUD Programs", we have also issued reports dated January 27,
1997, 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
January 27, 1997 Identification Number:
52-1088612
Audit Principal: Phillip A. Weitzel
<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]
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, 1997, 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, 1997, 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 26
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", 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 and the "Consolidated Audit
Guide for Audits of HUD Programs", we have also issued reports dated January 19,
1998, 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, fair housing and non-discrimination, and laws and
regulations applicable to the financial statements.
/s/ Reznick Fedder & Silverman
Boston, Massachusetts Federal Employer
January 19, 1998 Identification Number:
52-1088612
Audit Principal: Phillip A. Weitzel
<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, 1996, 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, 1996, 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 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.
In accordance with Government Auditing Standards and the "Consolidated Audit
Guide for Audits of HUD Programs", we have also issued reports dated January 27,
1997, 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
January 27, 1997 Identification Number:
52-1088612
Audit Principal: Phillip A. Weitzel
<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]
Michael Sczekan & Co., P.C.
Certified Public Accountants
7936 East Arapahoe Court, Suite 2800
Englewood, CO 80112
Telephone (303) 770-3356
Fax (303) 770-3357
INDEPENDENT AUDITORS' REPORT
To the Partners of HUD Field Office
Sierra Vista Housing Associates, Ltd. Denver, CO
Aurora, Colorado
We have audited the accompanying Balance Sheet of Siera Vista Housing Associates
Ltd., FHA Project Number 125-94004, as of December 31, 1997, 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 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, Ltd., as
of December 31, 1997, 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, we have also issued a report dated February 5,
1998, on our consideration of Sierra Vista Housing Associates, Ltd's internal
control structure and a report dated February 5, 1998, on its compliance with
laws and regulations and compliance with specific requirements applicable to
major HUD programs and specific requirements applicable to Fair Housing and
Non-discrimination.
The accompanying financial statements have been prepared assuming that the
Partnership will continue as a going concern. As noted in Note 2 to the
financial statements, the Partnership is in monetary default of mortgage
agreement. Continued operation is contingent on reducing vacancies or obtaining
a additional financing.
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
14 through 19 is presented for purposes of additional analysis and are not a
required part of the basic financial statements of Sierra Vista Housing
Associates, Ltd.. Such information has been subjected to the same auditing
procedures applied in the examination of 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.
Respectfully submitted,
/s/Michael Sczkan
Michael Sczekan Co., P.C.
Certified Public Accountants
Englewood, CO
February 5, 1998
<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, 1996, 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, 1996, 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 21 through 28
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, except for that portion marked "unaudited" on which we express
no 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 and the "Consolidated Audit
Guide for Audits of HUD Programs," we have also issued reports dated January 27,
1997, 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
January 27, 1997 Identification Number:
52-1088612
Audit Principal: Phillip A. Weitzel
<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] 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, as of December 31, 1997 and 1996, 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, 1997 and 1996, 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 issued a report dated February 3, 1998, on our
consideration of the Partnership's internal control structure and reports, also
dated February 3, 1998, on its compliance with specific requirements applicable
to major HUD programs, compliance with laws, regulations, contracts and grants,
and specific requirements applicable to Affirmative Fair Housing and Non-
Discrimination.
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 3, 1998
Other Auditor information:
Lead Auditor - Donald R. Smith
Federal I.D. Number
<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] 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, 1997, 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, 1997, 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.
The accompanying financial statements have been prepared assuming that the
Partnership will continue as a going concern. As discussed in Note 8 to the
financial statements, the Partnership has suffered recurring losses from
operations, working capital requirements exceed the estimated cash flows, which
raise substantial doubt about the Partnership's ability to continue as a going
concern. Management's plan regarding those matters also are described in Note 8.
The financial statements do not include any adjustments that might result from
the outcome of this uncertainly.
In accordance with Government Auditing Standards. we have also issued reports
dated February 12, 1998 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.
Wellesley, MA
February 12, 1998
<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.
Wellesley, MA
February 12, 1997
<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.
Wellesley, MA
February 13, 1996
<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, 1997 and 1996, 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, 1997 and 1996, 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 10 to the
financial statements, the Partnership has entered into a forbearance agreement
with its bond holders as a result of cash flow problems 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 2, 1998
<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
[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, 1997 and 1996, 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, 1997 and 1996, 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 21, 1998
<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
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, 1997, 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, FHA
Project Number 091-10505 REF, as of December 31, 1997, 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, we have also issued a report
dated January 21, 1998 on our consideration of Duluth Limited Partnership's
internal controls and a report dated January 21, 1998, on its compliance laws
and regulations.
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 21, 1998
<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
Barrington Manor Limited Partnership
Wahpeton, North Dakota
We have audited the accompanying balance sheets of Barrington Manor Limited
Partnership as of December 31, 1997 and 1996, 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, 1997 and 1996, 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 has suffered recurring vacancies and cash
deficiencies the raise substantial doubt about the Partnership's ability to
continue as a going concern. Management's plan regarding those matters are also
described in Note 9. The financial statements do not include any adjustments
that might result from the outcome of this uncertainly.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota
January 21, 1998
<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
Graver Inn Limited Partnership
Wahpeton, North Dakota
We have audited the accompanying balance sheets of Graver Inn Limited
Partnership as of December 31, 1997 and 1996, 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, 1997 and 1996, 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 11 to the
financial statements, the Partnership has suffered recurring vacancies and cash
deficiencies the raise substantial doubt about the Partnership's ability to
continue as a going concern. Management's plan regarding those matters are also
described in Note 11. The financial statements do not include any adjustments
that might result from the outcome of this uncertainly.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota
January 21, 1998
<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]
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, 1997 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.
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 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, 1997 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
Savannah, GA
February 28, 1998
<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
Savannah, GA
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, 1997 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.
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, 1997 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
Savannah, GA
/s/R. Doug Floyd
February 28, 1998
<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
Savannah, GA
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, 1997 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.
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, 1997 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
Savannah, GA
February 28, 1998
<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
Savannah, GA
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, 1997 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.
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, 1997 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
Savannah, GA
February 28, 1998
<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
Savannah, GA
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, 1997 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.
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, 1997 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
Savannah, GA
February 28, 1998
<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
Savannah, GA
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 5, 1998
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, 1997 and 1996, and the
related statements of profit and loss, 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 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 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, 1997 and 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.
Augusta, ME
Certified Public Accountants
<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
accounting principles.
/s/ Macdonald Page & Co.
Augusta, ME
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.
Augusta, ME
Certified Public Accountants
<PAGE>
[Letterhead]
[Logo] macdonaldpage
Independent Auditors' Report
February 5, 1998
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, 1997 and 1996, and the related
statements of profit and loss, 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 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 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, 1997 and 1996, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.
/s/ Macdonald Page & Co.
Augusta, ME
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.
Augusta, ME
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.
Augusta, ME
Certified Public Accountants
<PAGE>
[Letterhead]
[Logo] macdonaldpage
Independent Auditors' Report
February 5, 1998
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, 1997 and 1996, and the related
statements of profit and loss, 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 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 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, 1997 and 1996, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.
/s/ Macdonald Page & Co.
Augusta, ME
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.
Augusta, ME
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.
Augusta, ME
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, 1997 and 1996, 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, 1997 and 1996, 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 January 30, 1998, on our consideration of HAZEL-WINTHROP APARTMENTS
internal control structure and reports dated January 30, 1998, 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, 1998
<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>
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, 1997 and 1996, 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, 1997 and 1996, 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
Nashua, NH
Billie J. Burnett
January 2, 1998
<PAGE>
BILLIE J. BURNETT, CPA
5 Benton Drive
Nashua, NH 03060
(603) 883-4230
To The Partners
Michael J. Dobens Limited Partnership I
I have audited the accompanying balance sheets of Michael J. Dobens Limited
Partnership I as of December 31, 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
Nashua, NH
Billie J. Burnett
January 8, 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, 1997 and 1996, 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, 1997 and 1996, 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 , Office of Inspector General in July 1993, we have also
issued
reports dated January 15, 1998 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 Fair Housing and Non-Discrimination.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplementary
information shown on pages 14 to 21 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
New York, NY
January 15, 1998
<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 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 , 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
New York, NY
January 21, 1997
<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, 1997,
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, 1997 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 10, 1998, on our consideration of Delmar Housing Associates
Limited Partnership's internal control structure and a report dated February 10,
1998, 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
15 through 21 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 10, 1998
<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]
[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, 1997, 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, 1997, 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 21 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, 1998, on our consideration of Heritage Court Limited Partnership's
internal control structure and on its compliance with specific requirements
applicable to CDA programs, fair housing and non-discrimination, and laws and
regulations applicable to the financial statements.
/s/ Reznick Fedder & Silverman
Baltimore, Maryland Federal Employer
January 6, 1998 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, 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>
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, 1997 and 1996, and the related
statements of operations, 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 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 Perryville Associates, I, L.P.
as of December 31, 1997 and 1996, 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.
/s/Mueller, Walla & Albertson, P.C.
Kirkwood, Missouri
Mueller, Walla & Albertson, P.C.
Certified Public Accountants
February 9, 1998
MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
MISSOURI SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
<PAGE>
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 thereon, 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.
Kirkwood, Missouri
Mueller, Walla & Albertson, P.C.
Certified Public Accountants
January 21, 1997
MEMBERS AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS
MISSOURI SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS
<PAGE>
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.
Kirkwood, Missouri
Mueller, Walla & Albertson, P.C.
Certified Public Accountants
February 9, 1996
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
REPORT ON FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 1997
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
TABLE OF CONTENTS
PAGE
AUDITOR'S REPORT 2
FINANCIAL STATEMENTS
Balance Sheet 3-4
Statement of Profit and Loss (HUD-92410) 5-6
Supporting Schedule to Form HUD-92410 7
Statement of Changes in Partners' Equity 8
Statement of Cash Flows 9-10
Notes to Financial Statements 11-13
SUPPORTING DATA 14-17
AUDITOR'S COMMENTS ON COMPLIANCE
Major HUD Program 18-19
Schedule of Findings and Questioned Costs 20
Corrective Action Plan 21
AUDITOR'S COMMENTS ON INTERNAL CONTROL 22-23
AUDITOR'S COMMENTS ON AFFIRMATIVE FAIR HOUSING 24
CERTIFICATE OF GENERAL PARTNERS 25
CERTIFICATE OF MANAGEMENT AGENT 26
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the accompanying balance sheet of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of December 31, 1997, and the related
statements of profit and loss, changes in partners' equity and statement of cash
flows for the year then ended. These financial statements are the responsibility
of the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. These standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatements. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of BOULEVARD COMMONS LIMITED
PARTNERSHIP, as of December 31, 1997, 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 23, 1998 on our consideration of BOULEVARD COMMONS LIMITED
PARTNERSHIP's internal control structure and reports dated January 23, 1998 on
its compliance with specific requirements applicable to Major HUD Programs and
specific requirements applicable to Affirmative Fair Housing.
The accompanying supplementary information (shown on pages 14 to 17) is
presented for purposes of additional analysis and is not a required part of the
basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statement and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
/s/Haran & Associates LTD
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate No. 060-002892
Federal Certification No. 36-3097692
Audit Partner: James E. Haran (847)853-2580
January 23, 1998
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
BALANCE SHEET
DECEMBER 31, 1997
A S S E T S
<TABLE>
<CAPTION>
<S> <C>
CURRENT ASSETS
1120 Cash in bank $ 5,582
1130 Tenant accounts receivable 9,930
1135 Rent supplement receivable 56,959
-----------
Total current assets $ 72,471
-----------
DEPOSITS HELD IN TRUST - FUNDED
1191 Tenant security deposits - held in trust $ 24,457
-----------
PREPAID EXPENSES
1240 Property insurance $ 27,117
1250 Mortgage insurance 26,434
-----------
Total prepaid expenses $ 53,551
-----------
RESTRICTED DEPOSITS AND FUNDED RESERVES
1310 Mortgage escrow deposits $ 118,996
1320 Cash replacement reserve 129,581
-----------
Total restricted deposits and funded reserves $ 248,577
-----------
FIXED ASSETS
1410 Land $ 318,000
1420 Buildings 13,851,124
1440 Building equipment - portable 619,636
1470 Maintenance equipment 2,381
-----------
Total fixed assets $14,791,141
Less accumulated depreciation 4,758,502
Net book value $10,032,639
OTHER ASSETS
1840 Deferred loan fees (net of amortization) $ 196,077
-----------
TOTAL ASSETS $10,627,772
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
BALANCE SHEET (CONTINUED)
DECEMBER 31, 1997
LIABILITIES AND PARTNERS' EQUITY
<TABLE>
<CAPTION>
<S> <C>
CURRENT LIABILITIES
2110 Accounts payable $ 12,353
2116 Accrued property taxes 161,500
2130 Accrued mortgage interest 138,373
2320 Mortgage payable - current portion 36,967
-----------
Total current liabilities $ 349,193
-----------
DEPOSITS AND PREPAYMENT LIABILITIES
2191 Tenant security deposits - held in trust (contra) $ 24,068
2210 Prepaid rent 441
-----------
Total deposits and prepayment liabilities $ 24,509
-----------
LONG-TERM LIABILITIES
2320 Mortgage payable $ 9,761,770
2330 Junior mortgage payable - City of Chicago 693,500
-----------
Total $10,455,270
Less current portion 36,967
Total long-term liabilities $10,418,303
OTHER LIABILITIES
2400 Accrued interest - junior mortgage - City of Chicago $ 216,719
-----------
Total liabilities $11,008,724
PARTNERS' EQUITY
3130 Partners' equity (380,952)
------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $10,627,772
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
Statement of Profit U. S. Department of Housing
and Loss and Urban Development
Office Of Housing
Federal Housing Commissioner
OMB Approval No. 2502-0052(Exp 1/31/95)
Public Reporting Burden for this collection of information is estimated to
average 1.0 hours per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and
completing and reviewing the collection of information. Send comments regarding
this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to the Reports Management
Officer, Office of Information, Policies and Systems, U.S. Department of
Housing and Urban Development, Washington, D.C. 20410-3600 and to the Office
of Management and Budget, Paperwork Reduction Project (2502-0052), Washington,
D.C. 20503. Do not send this completed form to either of these addresses.
For Month/Period Project No. 071-35592 Project Name BOULEVARD COMMONS LIMITED
Beginning 1/01/97 Ending 12/31/97 PARTNERSHIP
<TABLE>
<CAPTION>
Part I Description of Account Acct No. Amount*
----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Rental Income - 5100
--------------------
Apartments or Member Carrying Charges(Coops) 5120 $ 488,304
------------------------------------------------------------------------------------------------
Tenant Assistance Payments 5121 $ 1,546,344
------------------------------------------------------------------------------------------------
Furniture and Equipment 5130 $
--------------------------------------------------------------------------------------
Stores and Commercial 5140 $
--------------------------------------------------------------------------------------
Garage and Parking Spaces 5170 $
--------------------------------------------------------------------------------------
Flexible Subsidy Income 5180 $
--------------------------------------------------------------------------------------
Miscellaneous RENTAL ASSISTANCE - PRIOR YEAR 5190 $
--------------------------------------------------------------------------------------
Total Rent Revenue Potential at 100% Occupancy $ 2,034,648
--------------------------------------------------------------------------------------------------------------------------
Vacancies - 5200
Apartments 5220 ( 178,771 )
---------------------------------------------------------------------------------------------------------
Furniture and Equipment 5230 ( )
---------------------------------------------------------------------------------------------------------
Stores and Commercial 5240 ( )
---------------------------------------------------------------------------------------------------------
Garage and Parking Spaces 5270 ( )
---------------------------------------------------------------------------------------------------------
Miscellaneous (specify) 5290 ( )
---------------------------------------------------------------------------------------------------------
Total Vacancies ( 178,771 )
--------------------------------------------------------------------------------------------------------------------------
Net Rental Revenue Rent Revenue Less Vacancies 1,855,877
--------------------------------------------------------------------------------------------------------------------------
Elderly and Congregate Services Income - 5300
Total Service Income (Schedule Attached) 5300 $ -0-
-------------------------------------------------------------------------------------------------------------------------
Financial Revenue - 5400
------------------------
Interest Income - Project Operations 5410 $ 2,632
------------------------------------------------------------------------------------------------
Income from Investments-Residual Receipts 5430 $
--------------------------------------------------------------------------------------
Income from Investments-Reserve for Replacement 5440 $ 3,353
------------------------------------------------------------------------------------------------
Income from Investments-Miscellaneous 5490 $
--------------------------------------------------------------------------------------
Total Financial Revenue $ 5,985
--------------------------------------------------------------------------------------------------------------------------
Other Revenue - 5900
Laundry and Vending 5910 $ 520
------------------------------------------------------------------------------------------------
NSF and Late Charges 5920 $ 3,671
------------------------------------------------------------------------------------------------
Damages and Cleaning Fees 5930 $ 5,436
------------------------------------------------------------------------------------------------
Forfeited Tenant Security Deposits 5940 $ 1,128
------------------------------------------------------------------------------------------------
Other Revenue (specify) 5990 $
--------------------------------------------------------------------------------------
Total Other Revenue $ 10,755
--------------------------------------------------------------------------------------------------------------------------
Total Revenue $ 1,872,617
--------------------------------------------------------------------------------------------------------------------------
Administrative Expenses - 6200-6300
Advertising 6210 $ 2,589
------------------------------------------------------------------------------------------------
Other Administrative Expenses 6250 $ 5,974
------------------------------------------------------------------------------------------------
Office Salaries 6310 $ 26,882
------------------------------------------------------------------------------------------------
Office Supplies 6311 $ 11,880
------------------------------------------------------------------------------------------------
Office or Model Apartment Rent 6312 $
--------------------------------------------------------------------------------------
Management 6320 $ 107,969
------------------------------------------------------------------------------------------------
Manager or Superintendent Salaries 6330 $ 30,231
------------------------------------------------------------------------------------------------
Manager or Superintendent Rent Free Unit 6331 $
--------------------------------------------------------------------------------------
Legal Expenses (Project) 6340 $ 46,707
------------------------------------------------------------------------------------------------
Auditing Expenses (Project) 6350 $ 6,575
------------------------------------------------------------------------------------------------
Bookkeeping Fees/Accounting Services 6351 $ 12,720
------------------------------------------------------------------------------------------------
Telephone and Answering Service 6360 $ 9,082
------------------------------------------------------------------------------------------------
Bad Debts 6370 $ 135,457
------------------------------------------------------------------------------------------------
Miscellaneous Administrative Expenses (specify) 6390 $
--------------------------------------------------------------------------------------
Total Administrative Expenses $ 396,066
--------------------------------------------------------------------------------------------------------------------------
Utility Expense - 6400
Fuel Oil/Coal 6420 $
--------------------------------------------------------------------------------------
Electricity 6450 $ 15,475
-----------------------------------------------------------------------------------------------
Water 6451 $ 58,709
------------------------------------------------------------------------------------------------
Gas 6452 $ 67,843
------------------------------------------------------------------------------------------------
Sewer 6453 $
--------------------------------------------------------------------------------------
Total Utilities Expense $ 142,027
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
The accompanying notes are an integral part of this statement.
Page 1 of 2
*All amounts must be rounded to the nearest dollar; $.50 and HUD-92410 (7/91)
over, round up - $.49 and below, round down. ref Handbook 4370.2
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Operating and Maintenance Expenses - 6500
Janitor and Cleaning Payroll 6510 $ 16,933
------------------------------------------------------------------------------------------------
Janitor and Cleaning Supplies 6515 $ 6,261
------------------------------------------------------------------------------------------------
Janitor and Cleaning Contract 6517 $
--------------------------------------------------------------------------------------
Exterminating Payroll/Contract 6519 $
--------------------------------------------------------------------------------------
Exterminating Supplies 6520 $ 11,715
------------------------------------------------------------------------------------------------
Garbage and Trash Removal 6525 $ 19,342
------------------------------------------------------------------------------------------------
Security Payroll/Contract 6530 $ 27,788
------------------------------------------------------------------------------------------------
Grounds Payroll 6535 $
--------------------------------------------------------------------------------------
Grounds Supplies 6536 $
--------------------------------------------------------------------------------------
Grounds Contract 6537 $ 180
------------------------------------------------------------------------------------------------
Repairs Payroll 6540 $ 114,098
------------------------------------------------------------------------------------------------
Repairs Material 6541 $ 90,639
------------------------------------------------------------------------------------------------
Repairs Contract 6542 $ 13,171
------------------------------------------------------------------------------------------------
Elevator Maintenance/Contract 6545 $
--------------------------------------------------------------------------------------
Heating/Cooling Repairs and Maintenance 6546 $ 2,298
------------------------------------------------------------------------------------------------
Swimming Pool Maintenance/Contract 6547 $
--------------------------------------------------------------------------------------
Snow Removal 6548 $
--------------------------------------------------------------------------------------
Decorating Payroll/Contract 6560 $ 12,946
------------------------------------------------------------------------------------------------
Decorating Supplies 6561 $
--------------------------------------------------------------------------------------
Other 6570 $
--------------------------------------------------------------------------------------
Miscellaneous Operating & Maintenance Expenses 6590 $
--------------------------------------------------------------------------------------
Total Operating & Maintenance Expenses $ 315,371
--------------------------------------------------------------------------------------------------------------------------
Taxes and Insurance - 6700
Real Estate Taxes 6710 $ 161,224
------------------------------------------------------------------------------------------------
Payroll Taxes (FICA) 6711 $ 18,426
------------------------------------------------------------------------------------------------
Miscellaneous Taxes, Licenses and Permits 6719 $
--------------------------------------------------------------------------------------
Property and Liability Insurance(Hazard) 6720 $ 57,632
------------------------------------------------------------------------------------------------
Fidelity Bond Insurance 6721 $ 961
------------------------------------------------------------------------------------------------
Workmen's Compensation 6722 $ 5,303
------------------------------------------------------------------------------------------------
Health Insurance and Other Employee Benefits 6723 $ 3,872
------------------------------------------------------------------------------------------------
Other Insurance (specify) 6729 $
--------------------------------------------------------------------------------------
Total Taxes and Insurance $ 247,418
--------------------------------------------------------------------------------------------------------------------------
Financial Expenses - 6800
Interest on Bonds Payable 6810 $
---------------------------------------------------------------------------------------
Interest on Mortgage Payable 6820 $ 867,411
------------------------------------------------------------------------------------------------
Interest on Notes Payable (Long-Term) 6830 $ 20,805
------------------------------------------------------------------------------------------------
Interest on Notes Payable (Short-Term) 6840 $
--------------------------------------------------------------------------------------
Mortgage Insurance Premium/Service Charge 6850 $ 48,886
------------------------------------------------------------------------------------------------
Miscellaneous Financial Expenses AMORTIZATION 6890 $ 7,126
------------------------------------------------------------------------------------------------
Total Financial Expenses $ 944,228
--------------------------------------------------------------------------------------------------------------------------
Elderly and Congregate Service Expenses - 6900
Total Service Expenses-Schedule Attached 6900 $ -0-
--------------------------------------------------------------------------------------------------------------------------
Total Cost of Operations Before Depreciation $ 2,045,110
--------------------------------------------------------------------------------------------------------------------------
Profit (Loss) Before Depreciation $ ( 172,493)
--------------------------------------------------------------------------------------------------------------------------
Depreciation (Total) - 6600 (specify) 6600 $ 515,391
--------------------------------------------------------------------------------------------------------------------------
Operating Profit or (Loss) $ ( 687,884 )
--------------------------------------------------------------------------------------------------------------------------
Corporate or Mortgagor Entity Expenses - 7100
Officer Salaries 7110 $
--------------------------------------------------------------------------------------
Legal Expenses (Entity) 7120 $
--------------------------------------------------------------------------------------
Taxes (Federal-State-Entity) 7130-32 $
--------------------------------------------------------------------------------------
Other Expenses (Entity) See Page 7 7190 $ 83,331
--------------------------------------------------------------------------------
Total Corporate Expenses $ 83,331
--------------------------------------------------------------------------------------------------------------------------
Net Profit or (Loss) $ ( 771,215)
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
Warning: HUD will prosecute false claims and statements. Conviction may result
in criminal and/ or Civil penalties. (U.S.C. 1001, 1010, 1012; 31 U.S.C.
3729,3802)
Miscellaneous or other income and expenses Sub-account Groups. If
miscellaneous or other income and/or expense sub-accounts
(5190,5290,5490,5990,6390,6590,6729,6890 and 7190) exceed the Account
Groupings by 10% or more, attach a separate schedule describing or
explaining the miscellaneous income or expense.
Part II
1. Total principal payments required under the mortgage, even if payments
under a Workout Agreement are less or more than those required under
the mortgage. $ 31,349
2. Replacement Reserve deposits required by the Regulatory Agreement or
Amendments thereto, even if payments may be temporarily suspended or
waived. $ 39,219
3. Replacement or Painting Reserve releases which are included as expense
items on this Profit and Loss statement. $ NONE
4. Project Improvement Reserve Releases under the Flexible Subsidy Program
that are included as expense items on this Profit and Loss Statement. $
NONE
The accompanying notes are an integral part of this statement.
Page 2 of 2
ref Handbook 4370.2
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPORTING SCHEDULE TO FORM HUD-92410
DECEMBER 31, 1997
CORPORATE OR MORTGAGOR ENTITY EXPENSES - 7100
Other expenses - 7190
Supervisory management fee $ 78,331
Partnership reporting fee 5,000
---------
$ 83,331
==========
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
STATEMENT OF CHANGES IN PARTNERS' EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
(Loss)
Equity for the Equity
Profit (Deficit) Year Ended (Deficit)
and Loss January 1, December 31, December 31,
Percentage 1997 Distributions Contributions 1997 1997
---------- ---------- ------------- ------------- ------------ --------
<S> <C> <C> <C> <C> <C> <C>
GENERAL
PARTNERS 1.00 $ ( 40,225) $ - $ - $ ( 7,712) $ ( 47,937)
INVESTOR
LIMITED
PARTNER 99.00 446,588 16,200 - (763,503) (333,115)
SPECIAL
LIMITED
PARTNER - 100 - - - 100
------ ---------- ---------- ----------- ---------- ----------
TOTALS 100.00 $ 406,463 $ 16,200 $ - $ (771,215) $ (380,952)
------- ---------- ---------- ----------- ----------- ----------
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from:
Rental $ 1,788,020
Interest 5,984
Other 10,753
-----------
Total cash receipts $ 1,804,757
-----------
Cash payments for:
Administrative $ 94,673
Management fees 121,641
Utilities 142,027
Salaries and wages 188,144
Operating and maintenance 194,823
Real estate taxes 150,925
Payroll taxes 18,426
Property insurance 54,485
Miscellaneous taxes and insurance 10,135
Interest on mortgage note 801,447
Mortgage insurance 48,801
Tenant security and other deposits ( 3,784)
Supervisory management fee 78,331
Partnership reporting fee 5,000
-----------
Total cash payments $ 1,905,074
-----------
Net cash used in operating activities $ (100,317)
-----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of depreciable assets $ ( 14,350)
Decrease (increase) in:
Reserve for replacement of depreciable assets 14,854
Reserve for taxes and insurance 20,452
Net cash provided by investing activities $ 20,956
-----------
CASH FLOWS FROM FINANCING ACTIVITIES
Mortgage principal payments $ ( 28,630)
Distributions ( 16,200)
-----------
Net cash used in financing activities $ ( 44,830)
-----------
NET (DECREASE) IN CASH $ (124,191)
CASH - BEGINNING OF YEAR 129,773
-----------
CASH - END OF YEAR $ 5,582
===========
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
<S> <C>
RECONCILIATION OF NET INCOME (LOSS) TO
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
Net (loss) $ (771,215)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation 515,391
Amortization 7,126
Decrease (increase) in:
Tenant accounts receivable ( 1,465)
Rent supplement receivable 72,773
Account receivable - other 200
Tenant security deposits - held in trust 7,684
Prepaid property insurance 3,147
Prepaid mortgage insurance 85
Increase (decrease) in:
Accounts payable ( 10,686)
Accrued mortgage interest 65,965
Accrued property taxes 10,299
Tenant security deposits - held in trust (contra) ( 3,898)
Accrued management fee ( 13,671)
Prepaid rent ( 2,857)
Accrued interest - junior mortgage - City of Chicago 20,805
-----------
Net cash used in operating activities $ (100,317)
===========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the year for:
Interest $ 801,447
===========
</TABLE>
DISCLOSURE OF ACCOUNTING POLICY
For purposes of the statement of cash flows, the Partnership considers all
highly liquid debt instruments purchased with a maturity of three months or
less to be cash equivalents.
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Partnership was organized as a limited partnership formed June 15, 1987 and
amended July 13, 1988. Its purpose is to acquire an interest in six buildings
located in Chicago, Illinois, and to renovate and operate thereon two
hundred-thirteen units of low income housing under Section 221(d)(4) of the
National Housing Act. Such projects are regulated by HUD as to rent charges and
operating methods. The regulatory agreement limits annual distributions of net
operating receipts to "surplus cash" available at the end of each year.
The following significant accounting policies have been followed in the
preparation of the financial statements:
Depreciation will be provided by using the modified accelerated cost recovery
method (MACRS) over the statutory useful lives of the assets.
Deferred loan costs consist of fees for obtaining the HUD Insured Mortgage
Loan and are being amortized on the straight-line method over the life of
the original mortgage loan.
No income tax provision has been included in the financial statements since
income or loss of the Partnership is required to be reported by the
respective partners on their income tax returns.
Management uses estimates and assumptions in preparing these financial
statements in accordance with generally accepted accounting principles. Those
estimates and assumptions affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities and the
reported revenues and expenses. Actual results could vary from the estimates
that were used.
The Partnership maintains cash balances at a bank where accounts are
insured by the F.D.I.C. for up to $100,000. There were no balances in excess
of insured limits at December 31, 1997.
MORTGAGE NOTES PAYABLE
The 8.875% mortgage note payable is insured by HUD and is payable in monthly
installments OF $74,916 (including interest) through May, 2035. The apartment
complex is pledged as collateral for the note.
Under agreements with the mortgage lender and HUD, the Partnership is required
to make monthly escrow deposits for taxes, insurance, and replacement of project
assets, and is subject to restrictions as to operating policies, rental charges
and operating expenditures.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
MORTGAGE NOTES PAYABLE (Cont'd)
At December 31, 1997, the following amounts were held in escrow:
Property tax escrow $ 63,621
Property insurance escrow 34,850
Mortgage insurance escrow 20,525
Cash replacement reserve 129,581
--------
Total $248,577
========
The annual principal reduction for each of the next five years is as follows:
1998 $ 36,967
1999 37,414
2000 40,873
2001 44,651
2002 48,780
The liability of the Partnership under the mortgage note is limited to the
under-lying value of the real estate collateral.
The junior mortgage payable to the City of Chicago bears interest at 3% per
annum and matures at the later of July 1, 2030 or retirement of the FHA insured
mortgage.
Interest and principal are due in a lump sum upon maturity.
MANAGEMENT AND RENTAL
The Partnership has entered into a management agreement with Prairie Management
Corporation for the year ending December 31, 1997. The management fee is equal
to 5.5% of gross monthly collections, plus an additional $3.60 per unit for
location in a high crime area, a high concentration of large units and units
that are considered scattered site.
A contract with the Department of Housing and Urban Development for Housing
Assistance Payments is currently in effect. Under terms of the contracts, a rent
subsidy is to be paid under Section 8 of the National Housing Act. Also under
the terms of the contracts, the annual rent charged to the tenants is limited to
30% of annual income.
CURRENT VULNERABILITY DUE TO CERTAIN CONCENTRATIONS
The Partnership's sole asset is its rental building. The Partnership's
operations are concentrated in the multifamily real estate market. In addition,
the Partnership operates in a heavily regulated environment. The operations of
the Partnership are subject to the administrative directives, rules and
regulations of federal, state and local regulatory agencies, including, but not
limited to, HUD. Such administrative directives, rules and regulations are
subject to change by an act of congress or an administrative change mandated by
HUD. Such changes may occur with little notice or inadequate funding to pay for
the related cost, including the additional administrative burden, to comply with
a change.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
SUPERVISORY MANAGEMENT FEE
Prairie Parc Corp., an affiliate of the General Partners, is the Supervisory
Management Agent. It shall be entitled to a non-cumulative Supervisory
Management Fee equal to the lessor of 4% of the gross revenue or 75% of any cash
flow after the priority distribution of $21,200 is paid to the Investor Limited
Partner. Both the Supervisory Management Fee and the priority distribution are
payable only out of surplus cash as defined by the Regulatory Agreement. In no
event shall the management fee and supervisory management fee exceed 11% of
gross revenues of the project in any fiscal year.
PARTNERSHIP REPORTING FEE
The Investor Limited Partner shall receive an annual $5,000 fee to reimburse
it for its cost of providing reports. The fee is payable only out of surplus
cash, capital contributions or project expense loans.
PRIORITY DISTRIBUTION
The priority distribution was amended effective with the refinancing under
which the Investor Limited Partner is to receive 99% of the surplus cash until
it has received an annual amount equal to $21,200.
CASH FLOW (DEFICIT)
The following is a summary of cash flow at December 31, 1997 as defined by the
Limited Partnership Agreement:
<TABLE>
<CAPTION>
<S> <C>
Net (loss) $ (771,215)
----------
Additions:
Depreciation $ 515,391
Amortization 7,126
Decrease in prepaid mortgage insurance 85
Decrease in prepaid insurance 3,147
Increase in accrued property tax 10,299
Decrease in tenant security deposits-held in trust 7,684
Decrease in escrow deposits 35,306
Increase in accrued interest payable 86,770
----------
Total additions $ 665,808
----------
Subtractions:
Decrease in tenant security deposits-held in trust $( 3,898)
Decrease in accounts payable ( 10,686)
Decrease in accrued management fee ( 13,671)
Mortgage principal payments ( 28,630)
Payments for depreciable assets ( 14,350)
Decrease in prepaid rents ( 2,857)
----------
Total subtractions $( 74,092)
----------
Project cash flow (deficit) $ (179,499)
==========
</TABLE>
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPORTING DATA REQUIRED BY HUD
FOR THE YEAR ENDED DECEMBER 31, 1997
DELINQUENT TENANT ACCOUNTS RECEIVABLE Number of Amount
Tenants Past Due
Delinquent 30 days or less 24 $ 4,273
Delinquent 31-60 days 19 1,955
Delinquent 61-90 days 12 844
Delinquent over 90 days 25 2,858
-- -----------
Total 80 $ 9,930
--- -----------
MORTGAGE ESCROW DEPOSITS
Estimated amount required as of December 31, 1997 for future payment of:
Property tax $ 50,308
Property insurance 29,398
Mortgage insurance 22,367
-----------
Total $ 102,073
Total confirmed by mortgagee 118,996
-----------
Amount on deposit in excess of estimated
requirements $ 16,923
-----------
TENANT SECURITY DEPOSITS
Tenant security deposits are held in a separate bank account in the name of
the Project.
CASH REPLACEMENT RESERVE
In accordance with the provisions of the regulatory agreement, restricted
cash is to be held by Heitman Financial Services, Inc. to be used for
replacement of property with the approval of HUD:
Balance, January 1, 1997 $ 144,435
Deposits 35,951
Interest 3,353
Withdrawals (54,158)
--------
Balance, December 31, 1997, confirmed by mortgagee $ 129,581
===========
ACCOUNTS PAYABLE
Due within 30 days $ 12,353
Due within 31-60 day -
Due in more than 60 days -
--------
Total $ 12,353
===========
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPORTING DATA REQUIRED BY HUD (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1997
ACCRUED TAXES
Period Date Amount
Description of Tax Basis for Accrual Covered Due Accrued
Property tax Prior year tax 1997 1998 $ 161,500
Cook County Collector
Parcel No. 16-08-415-016-0000
Parcel No. 16-09-318-001-0000
Parcel No. 16-09-314-032-0000
Parcel No. 16-08-413-016-0000
Parcel No. 16-09-320-001-0000
Parcel No. 16-26-106-005-0000
COMPENSATION OF PARTNERS
During the calendar year 1997, the partners of Boulevard Commons Limited
Partnership did not receive any compensation from rental activities.
SCHEDULE OF UNAUTHORIZED DISTRIBUTIONS
None
DISTRIBUTIONS PAID TO PARTNERS
Distributions to partners $ 16,200
===============
ACCOUNTS AND NOTES RECEIVABLE - OTHER
None
ACCOUNTS AND NOTES PAYABLE - OTHER
None
IDENTITY OF INTEREST COMPANIES
Company Name Type of Service Amount Received
------------ --------------- ---------------
Prairie Management Corporation Management $ 107,969
Prairie Management Corporation Bookkeeping $ 12,720
The General Partners of BOULEVARD COMMONS LIMITED PARTNERSHIP have no
identity of interest with any suppliers of the Project with the exception
that the Partnership entered into a management agreement with Prairie
Management Corporation, an affiliate of a general partner, for management
of the Project.
CHANGES IN OWNERSHIP INTEREST
None
The accompanying notes are an integral part of this statement.
<PAGE>
U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
HOUSING-FEDERAL HOUSING COMMISSIONER
OFFICE OF MULTIFAMILY HOUSING MANAGEMENT AND OCCUPANCY
COMPUTATION OF SURPLUS CASH, DISTRIBUTIONS AND
RESIDUAL RECEIPTS
PROJECT NAME: BOULEVARD COMMONS FISCAL PERIOD ENDED: PROJECT NUMBER: 071-35592
LIMITED PARTNERSHIP 12/ 31 / 97
PART A - COMPUTE SURPLUS CASH
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1. Cash (accounts 1110, 1120, 1191, 1192) $ 30,039
-------------------------------------------------------------------------------
C 2. Tenant subsidy vouchers due for period
A by financial statement $ 56,959
-------------------------------------------------------------------------------
S 3. Other (describe)
H $
(a) Total Cash (Add Line 1,2 and 3) $ 86,998
--------------------------------------------------------------------------------------------
C 4. Accrued mortgage interest payable $ 138,373
-------------------------------------------------------------------------------
U
R 5. Delinquent mortgage principal payments $
R
E 6. Delinquent deposits to reserve for replacements $
----------------------------------------------------------------------
N
T 7. Accounts payable (due within 30 days) $ 12,353
-------------------------------------------------------------------------------
8. Loans and notes payable--
O (due within 30 days) $
----------------------------------------------------------------------
B
L 9. Deficient Tax Insurance or MIP Escrow Deposits $
----------------------------------------------------------------------
I
G 10. Accrued expenses(not escrowed) $
A
T 11. Prepaid Rents (Account 2210) $ 441
--------------------------------------------------------------------------------
I
O 12. Tenant security deposits liability (Account 2191) $ 24,068
--------------------------------------------------------------------------------
N
S 13. Other (Describe) $
(b) Less Total Current Obligations(Add Lines 4 through 13) $ 175,235
------------------------------------------------------------------------------------------
(c) Surplus Cash (Deficiency)(Line (a) minus Line (b)) $ ( 88,237)
-------------------------------------------------------------------------------------------
PART B - COMPUTE DISTRIBUTIONS TO OWNERS AND REQUIRED DEPOSIT TO RESIDUAL RECEIPTS
1. Surplus Cash $ NONE
2a. Annual Distribution Earned During Fiscal Period
Covered by the Statement $
2b. Distribution Accrued and Unpaid as of the
End of the Prior Period $
2c. Distributions paid During Fiscal Period Covered by Statement $
3. Amount to be Carried on Balance Sheet as Distribution
Earned but Unpaid (Line 2a plus 2b minus 2c) $
-------------------------------------------------------------------------
4. Amount Available for Distribution During Next Fiscal Period
$ NONE
5. Deposit Due Residual Receipts
(Must be deposited with Mortgagee within 60 days after Fiscal Period ends) $
------------------------------------------------------------------------------------
</TABLE>
PREPARED BY REVIEWED BY
LOAN TECHNICIAN LOAN OFFICER
DATE DATE
The accompanying notes are an integral part of this statement. HUD-93486 12-80
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPORTING DATA REQUIRED BY HUD (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1997
CHANGES IN FIXED ASSETS
<TABLE>
<CAPTION>
A s s e t s Accumulated Depreciation Net
Balance, Balance, Balance, Balance, Book Value
January 1, December 31, January 1, Current December 31, December 31,
1997 Additions Deductions 1997 1997 Provisions Deductions 1997 1997
----------- ---------- ----------- ----------- ---------- ---------- ---------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Land $ 318,000 $ - $ - $ 318,000 $ - $ - $ - $ - $ 318,000
Buildings 13,836,774 + 14,350 - 13,851,124 3,638,609 510,059 - 4,148,668 9,702,456
Building
equipment
- portable 619,636 - - 619,636 602,121 5,332 - 607,453 12,183
Maintenance
equipment 2,381 - - 2,381 2,381 - - 2,381 -
----------- ---------- ------- ----------- ----------- ---------- ------- ----------- ------------
TOTALS $14,776,791 $ 14,350 $ - $14,791,141 $ 4,243,111 $ 515,391 $ - $ 4,758,502 $10,032,639
=========== ========== ===== =========== ========== ========== ======= ============ ===========
</TABLE>
+ New Doors & Iron Fence
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPLEMENTARY DATA
COMPLIANCE WITH SPECIFIC REQUIREMENTS
APPLICABLE TO MAJOR HUD PROGRAMS
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the financial statements of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of and for the year ended December 31,
1997 and have issued our report thereon dated January 23, 1998.
We have also audited BOULEVARD COMMONS LIMITED PARTNERSHIP's compliance with the
specific program requirements governing federal financial reporting, mortgage
status, replacement reserve, security deposits, cash receipts and disbursements,
distributions to owners, tenant applications, eligibility, and recertification,
and management functions that are applicable to its major HUD-assisted programs
for the year ended December 31, 1997. The management of BOULEVARD COMMONS
LIMITED PARTNERSHIP is responsible for compliance with those requirements. Our
responsibility is to express an opinion on compliance with those requirements
based on our audit.
We conducted our audits in accordance with generally accepted auditing
standards, Government Auditing Standards, issued by the Comptroller General of
the United States, and the Consolidated Audit Guide for Audits of HUD Programs
(the "Guide") issued by the U.S. Department of Housing and Urban Development,
Office of Inspector General in August 1997. Those standards and the Guide
require that we plan and perform the audit to obtain reasonable assurance about
whether material noncompliance with the requirements referred to above occurred.
An audit includes examining, on a test basis, evidence about BOULEVARD COMMONS
LIMITED PARTNERSHIP's compliance with those requirements. We believe that our
audit provides a reasonable basis for our opinion.
The results of our audit procedures disclosed immaterial instances of
noncompliance with the requirements referred to above, which are described in
the accompanying Schedule of Findings and Questioned Costs. We considered those
instances of noncompliance in forming our opinion on compliance, which is
expressed in the following paragraph.
In our opinion, BOULEVARD COMMONS LIMITED PARTNERSHIP complied, in all material
respects with the requirements described above that are applicable to its major
HUD assisted programs, for the year ended December 31, 1997.
This report is intended for the information of the audit committee, management,
and the Department of Housing and Urban Development. However, this report is a
matter of public record and its distribution is not limited.
/s/Haran & Associates
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate No. 060-002892
Federal Certification No. 36-3097692
Audit Partner: James E. Haran (847)853-2580
January 23, 1998
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
DECEMBER 31, 1997
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FINDING 1
The project is behind on its December 1997 mortgage payment by $92,072.
RECOMMENDATION
Payment of the balance of the December 1997 payment be made.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
20 North Wacker Drive
Suite 1625
Chicago, Illinois 60606
CORRECTIVE ACTION PLAN
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
YEAR ENDED DECEMBER 31, 1997
SECTION I - Compliance With Specific Requirements
Applicable to Major HUD Programs
A. Comments on Findings and Recommendation
We concur with Finding No. 1.
B. Action Planned
We will make the December 1997 mortgage payment in 1998.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPLEMENTARY DATA
INTERNAL CONTROL
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the financial statements of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of and for the year ended December 31,
1997 and have issued our report thereon dated January 23, 1998. We have also
audited BOULEVARD COMMONS LIMITED PARTNERSHIP's compliance with requirements
applicable to the major HUD-assisted programs and have issued our report thereon
dated January 23, 1998.
We conducted our audits in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States and the Consolidated Audit Guide for Audits of HUD Programs (the
"Guide"), issued by he U.S. Department of Housing and Urban Development, Office
of the Inspector General in August 1997. Those standards and the Guide require
that we plan and perform the audit to obtain reasonable assurance about whether
BOULEVARD COMMONS LIMITED PARTNERSHIP complied with laws and regulations,
noncompliance with which would be material to a major HUD-assisted programs.
The management of BOULEVARD COMMONS LIMITED PARTNERSHIP is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. The objectives of an internal control structure are to provide
management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit the preparation of financial statements in
accordance with generally accepted accounting principles and that HUD-assisted
programs are managed in compliance with applicable laws and regulations. Because
of inherent limitations in any internal control structure, errors,
irregularities or instances of noncompliance may nevertheless occur and not be
detected. Also, projection of any evaluation of the structure to future periods
is subject to the risk that procedures may become inadequate because of changes
in conditions or that the effectiveness of the design and operation of policies
and procedures may deteriorate.
In planning and performing our audits, we obtained an understanding of the
design of relevant internal control structure policies and procedures and
determined whether they had been placed in operation, and we assessed control
risk in order to determine our auditing procedures for the purpose of expressing
our opinions on the financial statements of BOULEVARD COMMONS LIMITED
PARTNERSHIP and on its compliance with specific requirements applicable to its
major HUD-assisted programs and to report on the internal control structure in
accordance with the provisions of the Guide and not to provide any assurance on
the internal control structure.
We performed tests of controls, as required by the Guide, to evaluate the
effectiveness of the design and operation of the internal control structure
policies and procedures that we considered relevant to preventing or detecting
material noncompliance with specific requirements applicable to BOULEVARD
COMMONS LIMITED PARTNERSHIP's major HUD-assisted programs. Our procedures were
less in scope than would be necessary to render an opinion on internal control
structure policies and procedures. Accordingly, we do not express such an
opinion.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPLEMENTARY DATA
INTERNAL CONTROL (Continued)
Our consideration of the internal control structure policies and procedures used
in administering major HUD-assisted programs would not necessarily disclose all
matters in the internal control structure that might constitute material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of one or more of the internal control structure elements does not
reduce to a relatively low level the risk that noncompliance with laws and
regulations that would be material to a major HUD-assisted program may occur and
not be detected within a timely period by employees in the normal course of
performing their assigned functions. We noted no matters involving the internal
control structure and its operations that we consider to be material weaknesses
as defined above.
This report is intended for the information of the audit committee, management,
and the Department of Housing and Urban Development. However, this report is a
matter of public record and its distribution is not limited.
/s/Haran & Associates LTD
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate NO. 060-002892
Federal Certification No. 36-3097692
Audit Partner: James E. Haran (847)853-2580
January 23, 1998
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPLEMENTARY DATA
AFFIRMATIVE FAIR HOUSING
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the financial statements of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of and for the year ended December 31,
1997 and have issued our report thereon dated January 23, 1998.
We have applied procedures to test BOULEVARD COMMONS LIMITED PARTNERSHIP's
compliance with the Affirmative Fair Housing requirements applicable to its
HUD-assisted programs, for the year ended December 31, 1997.
Our procedures were limited to the applicable compliance requirement described
in the Consolidated Audit Guide for Audits of HUD programs issued by the U.S.
Department of Housing and Urban Development, Office of Inspector general in
August 1997. Our procedures were substantially less in scope than an audit, the
objective of which would be the expression of an opinion on BOULEVARD COMMONS
LIMITED PARTNERSHIP's compliance with the Affirmative Fair Housing requirements.
Accordingly, we do not express such an opinion.
The results of the test disclosed no instances of noncompliance that are
required to be reported herein under the Guide.
This report is intended for the information of the audit committee, management,
and the Department of Housing and Urban Development. However, this report is a
matter of public record and its distribution is not limited.
/s/Haran & Associates LTD
HARAN & ASSOCIATES LTD
Certified Public Accountants
Illinois Certificate No. 060-002892
Federal Certification No. 36-3097692
Audit partner: James E. Haran (847)853-2580
January 23, 1998
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
CERTIFICATE OF GENERAL PARTNERS
We hereby certify that we have examined the accompanying
financial statements and supporting data for BOULEVARD
COMMONS LIMITED PARTNERSHIP and, to the best of our
knowledge and belief, the same is complete and accurate.
BOULEVARD COMMONS LIMITED PARTNERSHIP
FEDERAL EMPLOYER IDENTIFICATION NO. 36-3539155
By__________________________________________
Robert C. King
Title General Partner
Date January 23, 1998
By__________________________________________
Title General Partner
Date January 23, 1998
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
CERTIFICATE OF MANAGEMENT AGENT
I hereby certify that I have examined the accompanying
financial statements and supporting data for BOULEVARD
COMMONS LIMITED PARTNERSHIP and, to the best of my
knowledge and belief, the same is complete and accurate.
PRAIRIE MANAGEMENT CORPORATION
FEDERAL EMPLOYER IDENTIFICATION NO. 36-3520022
MANAGEMENT AGENT
By__________________________________________
Robert C. King
Title President
Date January 23, 1998
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
REPORT ON FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 1996
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
TABLE OF CONTENTS
PAGE
AUDITOR'S REPORT 2
FINANCIAL STATEMENTS
Balance Sheet 3-4
Statement of Profit and Loss (HUD-92410) 5-6
Statement of Changes in Partners' Equity 7
Statement of Cash Flows 8-9
Notes to Financial Statements 10-14
SUPPORTING DATA 15-19
AUDITOR'S COMMENTS ON COMPLIANCE
Major HUD Program 20
AUDITOR'S COMMENTS ON INTERNAL CONTROL 21-22
AUDITOR'S COMMENTS ON AFFIRMATIVE FAIR HOUSING 23
CERTIFICATE OF GENERAL PARTNERS 24
CERTIFICATE OF MANAGEMENT AGENT 25
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the accompanying balance sheet of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of December 31, 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 Government Auditing Standards, issued by the Comptroller General of the
United States. These standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatements. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of BOULEVARD COMMONS LIMITED
PARTNERSHIP, as of December 31, 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 17, 1997 on
its compliance with specific requirements applicable to Major HUD Programs and
specific requirements applicable to Affirmative Fair Housing.
The accompanying supplementary information (shown on pages 15 to 19) is
presented for purposes of additional analysis and is not a required part of the
basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statement and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
/s/Haran & Associates LTD
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate No. 060-002892
Federal Certification No. 36-3097692
Audit Partner: James E. Haran (847)853-2580
January 17, 1997
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
BALANCE SHEET
DECEMBER 31, 1996
<TABLE>
<CAPTION>
A S S E T S
<S> <C>
CURRENT ASSETS
1120 Cash in bank $ 129,773
1130 Tenant accounts receivable 8,467
1135 Rent supplement receivable 129,732
1142 Other accounts receivable 200
---------------
Total current assets $ 268,172
---------------
DEPOSITS HELD IN TRUST - FUNDED
1191 Tenant security deposits - held in trust $ 32,141
---------------
PREPAID EXPENSES
1240 Property insurance $ 30,263
1250 Mortgage insurance 26,519
---------------
Total prepaid expenses $ 56,782
---------------
RESTRICTED DEPOSITS AND FUNDED RESERVES
1310 Mortgage escrow deposits $ 139,448
1320 Cash replacement reserve 144,435
---------------
Total restricted deposits and funded reserves $ 283,883
---------------
FIXED ASSETS
1410 Land $ 318,000
1420 Buildings 13,836,774
1440 Building equipment - portable 619,636
1470 Maintenance equipment 2,381
---------------
Total fixed assets $ 14,776,791
Less accumulated depreciation 4,243,111
Net book value $ 10,533,680
OTHER ASSETS
1840 Deferred loan fees (net of amortization) $ 203,203
---------------
TOTAL ASSETS $ 11,377,861
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
BALANCE SHEET (CONTINUED)
DECEMBER 31, 1996
<TABLE>
<CAPTION>
LIABILITIES AND PARTNERS' EQUITY
<S> <C>
CURRENT LIABILITIES
2110 Accounts payable $ 23,041
2116 Accrued property taxes 151,201
2130 Accrued mortgage interest 72,408
2140 Accrued management fee 13,672
2320 Mortgage payable - current portion 31,349
---------------
Total current liabilities $ 291,671
---------------
DEPOSITS AND PREPAYMENT LIABILITIES
2191 Tenant security deposits - held in trust (contra) $ 27,967
2210 Prepaid rent 3,296
---------------
Total deposits and prepayment liabilities $ 31,263
---------------
LONG-TERM LIABILITIES
2320 Mortgage payable $ 9,790,399
2330 Junior mortgage payable - City of Chicago 693,500
---------------
Total $ 10,483,899
Less current portion 31,349
Total long-term liabilities $ 10,452,550
OTHER LIABILITIES
2400 Accrued interest - junior mortgage - City of Chicago $ 195,914
---------------
Total liabilities $ 10,971,398
PARTNERS' EQUITY
3130 Partners' equity 406,463
---------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 11,377,861
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
<TABLE>
<CAPTION>
Statement of Profit U. S. Department of Housing
and Loss and Urban Development
Office Of Housing
Federal Housing Commissioner OMB Approval No. 2502-0052(Exp 1/31/95)
Public Reporting Burden for this collection of information is estimated to
average 1.0 hours per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and
completing and reviewing the collection of information. Send comments regarding
this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to the Reports Management
Officer, Office of Information, Policies and Systems, U.S. Department of Housing
and Urban Development, Washington, D.C. 20410-3600 and to the Office of
Management and Budget, Paperwork Reduction Project (2502-0052), Washington, D.C.
20503. Do not send this completed form to either of these addresses.
For Month/Period Project No. 071-35592 Project Name BOULEVARD COMMONS LIMITED
Beginning 1/01/96 Ending 12/31/96 PARTNERSHIP
Part I Description of Account Acct No. Amount*
<S> <C> <C> <C>
Rental Income - 5100
Apartments or Member Carrying Charges(Coops) 5120 $ 295,844
Tenant Assistance Payments 5121 $ 1,738,804
Furniture and Equipment 5130 $
Stores and Commercial 5140 $
Garage and Parking Spaces 5170 $
Flexible Subsidy Income 5180 $
Miscellaneous RENTAL ASSISTANCE - PRIOR YEAR 5190 $
Total Rent Revenue Potential at 100% Occupancy $ 2,034,648
Vacancies - 5200
Apartments 5220 ( 87,564 )
Furniture and Equipment 5230 ( )
Stores and Commercial 5240 ( )
Garage and Parking Spaces 5270 ( )
Miscellaneous (specify) 5290 ( )
Total Vacancies ( 87,564 )
Net Rental Revenue Rent Revenue Less Vacancies 1,947,084
Elderly and Congregate Services Income - 5300
Total Service Income (Schedule Attached) 5300 $ -0-
Financial Revenue - 5400
Interest Income - Project Operations 5410 $ 5,334
Income from Investments-Residual Receipts 5430 $
Income from Investments-Reserve for Replacement 5440 $ 2,709
Income from Investments-Miscellaneous 5490 $
Total Financial Revenue $ 8,043
Other Revenue - 5900
Laundry and Vending 5910 $ 81
NSF and Late Charges 5920 $ 5,302
Damages and Cleaning Fees 5930 $ 1,537
Forfeited Tenant Security Deposits 5940 $ 180
Other Revenue (specify) 5990 $
Total Other Revenue $ 7,100
Total Revenue $ 1,962,227
Administrative Expenses - 6200-6300
Advertising 6210 $
Other Administrative Expenses 6250 $ 15,743
Office Salaries 6310 $ 19,804
Office Supplies 6311 $ 4,721
Office or Model Apartment Rent 6312 $
Management 6320 $ 117,175
Manager or Superintendent Salaries 6330 $ 27,806
Manager or Superintendent Rent Free Unit 6331 $
Legal Expenses (Project) 6340 $ 21,331
Auditing Expenses (Project) 6350 $ 8,000
Bookkeeping Fees/Accounting Services 6351 $ 12,720
Telephone and Answering Service 6360 $ 6,565
Bad Debts 6370 $ 12,567
Miscellaneous Administrative Expenses (specify) 6390 $
Total Administrative Expenses $ 246,432
Utility Expense - 6400
Fuel Oil/Coal 6420 $
Electricity 6450 $ 16,519
Water 6451 $ 41,072
Gas 6452 $ 52,278
Sewer 6453 $
Total Utilities Expense $ 109,869
</TABLE>
The accompanying notes are an integral part of this statement.
*All amounts must be rounded to the nearest dollar; $.50 and
over, round up - $.49 and below, round down.
Form HUD-92410 (7/91)
ref Handbook 4270.2
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Operating and Maintenance Expenses - 6500
Janitor and Cleaning Payroll 6510 $ 91,482
Janitor and Cleaning Supplies 6515 $ 7,069
Janitor and Cleaning Contract 6517 $
Exterminating Payroll/Contract 6519 $ 6,844
Exterminating Supplies 6520 $
Garbage and Trash Removal 6525 $ 20,191
Security Payroll/Contract 6530 $ 9,980
Grounds Payroll 6535 $
Grounds Supplies 6536 $
Grounds Contract 6537 $
Repairs Payroll 6540 $ 66,842
Repairs Material 6541 $ 28,389
Repairs Contract 6542 $ 17,506
Elevator Maintenance/Contract 6545 $
Heating/Cooling Repairs and Maintenance 6546 $ 152
Swimming Pool Maintenance/Contract 6547 $
Snow Removal 6548 $
Decorating Payroll/Contract 6560 $ 15,099
Decorating Supplies 6561 $
Other 6570 $
Miscellaneous Operating & Maintenance Expenses 6590 $
Total Operating & Maintenance Expenses $ 263,554
axes and Insurance - 6700
Real Estate Taxes 6710 $ 139,220
Payroll Taxes (FICA) 6711 $ 21,587
Miscellaneous Taxes, Licenses and Permits 6719 $
Property and Liability Insurance(Hazard) 6720 $ 60,396
Fidelity Bond Insurance 6721 $ 880
Workmen's Compensation 6722 $ 3,686
Health Insurance and Other Employee Benefits 6723 $ 2,800
Other Insurance (specify) 6729 $
Total Taxes and Insurance $ 228,569
inancial Expenses - 6800
Interest on Bonds Payable 6810 $
Interest on Mortgage Payable 6820 $ 870,084
Interest on Notes Payable (Long-Term) 6830 $ 20,805
Interest on Notes Payable (Short-Term) 6840 $
Mortgage Insurance Premium/Service Charge 6850 $ 49,074
Miscellaneous Financial Expenses AMORTIZATION 6890 $ 7,126
Total Financial Expenses $ 947,089
Elderly and Congregate Service Expenses - 6900
Total Service Expenses-Schedule Attached 6900 $ -0-
Total Cost of Operations Before Depreciation $ 1,795,513
Profit (Loss) Before Depreciation $ 166,714
Depreciation (Total) - 6600 (specify) 6600 $ 535,187
Operating Profit or (Loss) $ ( 368,473 )
Corporate or Mortgagor Entity Expenses - 7100
Officer Salaries 7110 $
Legal Expenses (Entity) 7120 $
Taxes (Federal-State-Entity) 7130-32 $
Other Expenses (Entity) See Page 7 7190 $
Total Corporate Expenses $
Net Profit or (Loss) $ ( 368,473 )
</TABLE>
Warning: HUD will prosecute false claims and statements.
Conviction may result in criminal and/or Civil
penalties. (U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729,3802)
Miscellaneous or other income and expenses Sub-account Groups. If
miscellaneous or other income and/or expense sub-accounts
(5190,5290,5490,5990,6390,6590,6729,6890 and 7190) exceed the Account
Groupings by 10% or more, attach a separate schedule describing or
explaining the miscellaneous income or expense.
Part II
1. Total principal payments required under the mortgage, even if payments
under a Workout Agreement are less or more than those required under
the mortgage. $ 28,696
2. Replacement Reserve deposits required by the Regulatory Agreement or
Amendments thereto, even if payments may be temporarily suspended or
waived. $ 50,075
3. Replacement or Painting Reserve releases which are included as expense
items on this Profit and Loss statement. $ NONE
4. Project Improvement Reserve Releases under the Flexible Subsidy Program
that are included as expense items on this Profit and Loss Statement. $
NONE
The accompanying notes are an integral part of this statement.
ref Handbook 4370.2
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
STATEMENT OF CHANGES IN PARTNERS' EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
(Loss)
Equity for the Equity
Profit (Deficit) Year Ended (Deficit)
and Loss January 1, December 31, December 31,
Percentage 1996 Distributions Contributions 1996 1996
---------- ---------- ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
GENERAL
PARTNERS 1.00 $ ( 36,540) $ - $ - $ ( 3,685) $ ( 40,225)
INVESTOR
LIMITED
PARTNER 99.00 811,376 - - (364,788) 446,588
SPECIAL
LIMITED
PARTNE - 100 - - - 100
------ ---------- ---------- ----------- ---------- ----------
TOTALS 100.00 $ 774,936 $ - $ - $ (368,473) $ 406,463
------- ---------- ---------- ----------- ----------- ----------
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from:
Rental $ 1,950,410
Interest 8,043
Other 7,100
Total cash receipts $ 1,965,553
-----------
Cash payments for:
Administrative $ 69,080
Management fees 118,693
Utilities 109,869
Salaries and wages 205,935
Operating and maintenance 98,232
Real estate taxes 147,301
Payroll taxes 21,587
Property insurance 60,679
Miscellaneous taxes and insurance 7,366
Interest on mortgage note 870,296
Mortgage insurance 48,958
Tenant security and other deposits 234
-----------
Total cash payments $ 1,758,230
-----------
Net cash provided by operating activities $ 207,323
-----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of depreciable assets $ ( 34,747)
Decrease (increase) in:
Reserve for replacement of depreciable assets ( 52,784)
Reserve for taxes and insurance ( 24,936)
-----------
Net cash used in investing activities $ (112,467)
-----------
CASH FLOWS FROM FINANCING ACTIVITIES
Mortgage principal payments $ ( 28,696)
Distributions ( 65,750)
-----------
Net cash used in financing activities $ ( 94,446)
-----------
NET (INCREASE) IN CASH $ 410
CASH - BEGINNING OF YEAR 129,363
-----------
CASH - END OF YEAR $ 129,773
===========
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
<S> <C>
RECONCILIATION OF NET INCOME (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Net (loss) $ (368,473)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation 535,187
Amortization 7,126
Decrease (increase) in:
Tenant accounts receivable 10,912
Rent supplement receivable 3,419
Tenant security deposits - held in trust (861)
Prepaid property insurance (283)
Prepaid mortgage insurance 117
Increase (decrease) in:
Accounts payable 6,996
Accrued mortgage interest (212)
Accrued property taxes (8,081)
Tenant security deposits - held in trust (contra) 627
Accrued management fee (1,518)
Prepaid rent 1,562
Accrued interest - junior mortgage - City of Chicago 20,805
-----------
Net cash provided by operating activities $ 207,323
===========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the year for:
Interest $ 807,296
===========
NONCASH INVESTING AND FINANCING TRANSACTIONS
A bank maintains an escrow account on behalf of the Project for the payment
of development fees and amounts due to a general partner. The transactions in
the accounts for the year were as follows:
Developer escrow deposit $ (587,518)
Developer fee payable 480,000
Accounts Payable - general partner 107,518
-----------
Total $ 0
===========
DISCLOSURE OF ACCOUNTING POLICY
For purposes of the statement of cash flows, the Partnership considers all
highly liquid debt instruments purchased with a maturity of three months or
less to be cash equivalents.
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Partnership was organized as a limited partnership formed June 15, 1987 and
amended July 13, 1988. Its purpose is to acquire an interest in six buildings
located in Chicago, Illinois, and to renovate and operate thereon two
hundred-twelve units of low income housing under Section 221(d)(4) of the
National Housing Act. Such projects are regulated by HUD as to rent charges and
operating methods. The regulatory agreement limits annual distributions of net
operating receipts to "surplus cash" available at the end of each year.
The following significant accounting policies have been followed in the
preparation of the financial statements:
Depreciation will be provided by using the modified accelerated cost recovery
method (MACRS) over the statutory useful lives of the assets.
Deferred loan costs consist of fees for obtaining the HUD Insured Mortgage
Loan and are being amortized on the straight-line method over the life of
the original mortgage loan.
No income tax provision has been included in the financial statements since
income or loss of the Partnership is required to be reported by the
respective partners on their income tax returns.
Management uses estimates and assumptions in preparing these financial
statements in accordance with generally accepted accounting principles. Those
estimates and assumptions affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities and the
reported revenues and expenses. Actual results could vary from the estimates
that were used.
The Partnership maintains cash balances at a bank where accounts are insured
by the F.D.I.C. for up to $100,000. Balances in excess of insured limits
totaled approximately $61,680 at December 31, 1996.
DEVELOPMENT AGREEMENT/ESCROW DEPOSITS
The Partnership has entered into a Development Agreement with Prairie Parc Corp.
(Developer) an affiliate of the General Partners.
For its services in connection with development of the Project and the
supervision of the construction and rehabilitation of the improvements, the
developer shall be entitled to receive the aggregate amount of $2,448,865
payable as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
To Be Deposited
Completion date Total in Escrow
----------------- ------------------
5417 West Washington Boulevard $ 534,546 $ 377,932
5500 West Washington Boulevard 342,893 240,684
5521 West Washington Boulevard 685,786 481,368
5716 West Washington Boulevard 220,360 154,654
5912 West Washington Boulevard 220,360 154,654
3635 West Cermak Road 440,920 309,508
----------------- ------------------
Total $ 2,448,865 $ 1,718,800
================= ==================
Payments received or deposited through
1994 $ 2,448,865 $ 1,718,800
================= ==================
</TABLE>
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
DEVELOPMENT AGREEMENT/ESCROW DEPOSITS (cont'd)
Of the $2,448,865 received by the developer, $1,718,800 was deposited by the
developer into escrow.
The scheduled source and (use) of funds to be deposited into escrow with
American National Bank is as follows:
Deposit required be developer $ 1,718,800
Payment to developer at the later of final closing or
determination of the annual low income housing credit (659,400)
Payment to developer at the later of break-even date or 95%
occupancy date (259,400)
Operating reserve (800,000)
Final closing and the determination of the low income housing credit have both
been achieved, thus $659,400 was disbursed to the developer during 1990.
The break-even date and 95% occupancy were achieved, thus $259,400 was disbursed
to the developer during 1991.
The operating reserve, if not required to fund a net deficit, will be maintained
on the following schedule:
Required
Year end Reserve
----------------- -------
December 31, 1990 $800,000
December 31, 1991 640,000
December 31, 1992 480,000
December 31, 1993 320,000
December 31, 1994 160,000
December 31, 1995 -
During 1994 $160,000 was disbursed to the developer from the operating reserve.
Consequently, $4,808,000 of additional reserve releases are available to the
developer as of December 31, 1995. During 1996 $480,000 was disbursed to the
developer form the operating reserve.
All interest after escrow fees are to be given to the developer.
MORTGAGE NOTES PAYABLE
The 8.875% mortgage note payable is insured by HUD and is payable in monthly
installments OF $74,916 (including interest) through May, 2035. The apartment
complex is pledged as collateral for the note.
Under agreements with the mortgage lender and HUD, the Partnership is required
to make monthly escrow deposits for taxes, insurance, and replacement of project
assets, and is subject to restrictions as to operating policies, rental charges
and operating expenditures.
At December 31, 1996, the following amounts were held in escrow:
Property tax escrow $ 82,949
Property insurance escrow 31,779
Mortgage insurance escrow 24,720
Cash replacement reserve 144,435
--------
Total $283,883
========
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1996
MORTGAGE NOTES PAYABLE (Cont'd)
The annual principal reduction for each of the next five years is as follows:
1997 $ 31,349
1998 34,248
1999 37,414
2000 40,873
2001 44,651
The liability of the Partnership under the mortgage note is limited to the
under-lying value of the real estate collateral.
The junior mortgage payable to the City of Chicago bears interest at 3% per
annum and matures at the later of July 1, 2030 or retirement of the FHA insured
mortgage. Interest and principal are due in a lump sum upon maturity.
MANAGEMENT AND RENTAL
The Partnership has entered into a management agreement with Prairie Management
Corporation for the year ending December 31, 1996. The management fee is equal
to 5.5% of gross monthly collections, plus an additional $3.60 per unit for
location in a high crime area, a high concentration of large units and units
that are considered scattered site.
A contract with the Department of Housing and Urban Development for Housing
Assistance Payments is currently in effect. Under terms of the contracts, a rent
subsidy is to be paid under Section 8 of the National Housing Act. Also under
the terms of the contracts, the annual rent charged to the tenants is limited to
30% of annual income.
SUPERVISORY MANAGEMENT FEE
Prairie Parc Corp., an affiliate of the General Partners, is the Supervisory
Management Agent. It shall be entitled to a non-cumulative Supervisory
Management Fee equal to the lessor of 4% of the gross revenue or 75% of any cash
flow after the priority distribution of $21,200 is paid to the Investor Limited
Partner. Both the Supervisory Management Fee and the priority distribution are
payable only out of surplus cash as defined by the Regulatory Agreement. In no
event shall the management fee and supervisory management fee exceed 11% of
gross revenues of the project in any fiscal year.
PARTNERSHIP REPORTING FEE
The Investor Limited Partner shall receive an annual $5,000 fee to reimburse it
for its cost of providing reports. The fee is payable only out of surplus cash,
capital contributions or project expense loans.
PRIORITY DISTRIBUTION
The priority distribution was amended effective with the refinancing under which
the Investor Limited Partner is to receive 99% of the surplus cash until it has
received an annual amount equal to $21,200.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1997
CASH FLOW (DEFICIT)
The following is a summary of cash flow at December 31, 1996 as defined by the
Limited Partnership Agreement:
<TABLE>
<CAPTION>
<S> <C>
Net (loss) $ (368,473)
----------
Additions:
Depreciation $ 535,187
Amortization 7,126
Interest in prepaid mortgage insurance 117
Increase in accounts payable 6,996
Increase in accrued property tax 10,299
Increase in tenant security
deposits-held in trust (contra) 627
Increase in prepaid rents 1,562
Increase in accrued interest payable 20,593
----------
Total additions $ 572,208
----------
Subtractions:
Decrease in prepaid insurance ( 283)
Decrease in tenant security
deposits - held in trust ( 861)
Decrease in accrued management fee ( 8,081)
Mortgage principal payments ( 28,696)
Payments or depreciable assets ( 34,747)
Payments to reserve accounts (net) ( 77,720)
----------
Total subtractions $( 151,906)
----------
Project cash flow $ 51,829
==========
</TABLE>
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPORTING DATA REQUIRED BY HUD
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
<S> <C> <C>
DELINQUENT TENANT ACCOUNTS RECEIVABLE Number of Amount
Tenants Past Due
Delinquent 30 days or less 25 $ 2,859
Delinquent 31-60 days 25 2,682
Delinquent 61-90 days 10 662
Delinquent over 90 days 24 2,264
-- -----------
Total 84 $ 8,467
--- -----------
MORTGAGE ESCROW DEPOSITS
Estimated amount required as of December 31, 1996 for future payment of:
Property tax $ 49,100
Property insurance 34,806
Mortgage insurance 22,438
-----------
Total $ 106,344
Total confirmed by mortgagee 139,448
-----------
Amount on deposit in excess of estimated requirements $ 33,104
-----------
TENANT SECURITY DEPOSITS
Tenant security deposits are held in a separate bank account in the name of
the Project.
CASH REPLACEMENT RESERVE
In accordance with the provisions of the regulatory agreement, restricted
cash is to be held by Heitman Financial Services, Inc. to be used for
replacement of property with the approval of HUD:
Balance, January 1, 1996 $ 91,651
Deposits 50,075
Interest 2,709
Withdrawals -
-----------
Balance, December 31, 1996, confirmed by mortgagee $ 144,435
===========
ACCOUNTS PAYABLE
Due within 30 days $ 23,041
Due within 31-60 days -
Due in more than 60 days -
-----------
Total $ 23,041
===========
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPORTING DATA REQUIRED BY HUD (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
ACCRUED TAXES
<S> <C> <C> <C> <C>
Period Date Amount
Description of Tax Basis for Accrual Covered Due Accrued
Property tax Prior year tax 1996 1997 $ 151,201
Cook County Collector
Parcel No. 16-08-415-016-0000
Parcel No. 16-09-318-001-0000
Parcel No. 16-09-314-032-0000
Parcel No. 16-08-413-016-0000
Parcel No. 16-09-320-001-0000
Parcel No. 16-26-106-005-0000
</TABLE>
COMPENSATION OF PARTNERS
During the calendar year 1996, the partners of Boulevard Commons Limited
Partnership did not receive any compensation from rental activities.
SCHEDULE OF UNAUTHORIZED DISTRIBUTIONS
None
DISTRIBUTIONS PAID TO PARTNERS
Distributions to partners $ None
ACCOUNTS AND NOTES RECEIVABLE - OTHER
None
ACCOUNTS AND NOTES PAYABLE - OTHER
None
IDENTITY OF INTEREST COMPANIES
Company Name Type of Service Amount Received
------------ --------------- ---------------
Prairie Management Corporation Management $ 117,175
Prairie Management Corporation Bookkeeping $ 12,720
The General Partners of BOULEVARD COMMONS LIMITED PARTNERSHIP have no
identity of interest with any suppliers of the Project with the exception
that the Partnership entered into a management agreement with Prairie
Management Corporation, an affiliate of a general partner, for management
of the Project.
CHANGES IN OWNERSHIP INTEREST
None
The accompanying notes are an integral part of this statement.
<PAGE>
U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
HOUSING-FEDERAL HOUSING COMMISSIONER
OFFICE OF MULTIFAMILY HOUSING MANAGEMENT AND OCCUPANCY
COMPUTATION OF SURPLUS CASH, DISTRIBUTIONS AND
RESIDUAL RECEIPTS
<TABLE>
<CAPTION>
PROJECT NAME: BOULEVARD COMMONS FISCAL PERIOD ENDED: PROJECT NUMBER: 071-35592
LIMITED PARTNERSHIP 12/ 31 / 96
PART A - COMPUTE SURPLUS CASH
<S> <C> <C> <C>
1. Cash (accounts 1110, 1120, 1191, 1192) $ 161,914
C 2. Tenant subsidy vouchers due for period
A by financial statement $ 129,732
S 3. Other (describe)
H $
(a) Total Cash (Add Line 1,2 and 3) $ 291,646
C 4. Accrued mortgage interest payable $ 72,408
U
R 5. Delinquent mortgage principal payments $
R
E 6. Delinquent deposits to reserve for replacements $
N
T 7. Accounts payable (due within 30 days) $ 23,041
8. Loans and notes payable--
O (due within 30 days) $
B
L 9. Deficient Tax Insurance or MIP Escrow Deposits $
I
G 10. Accrued expenses(not escrowed) $ 13,672
A
T 11. Prepaid Rents (Account 2210) $ 3,296
I
O 12. Tenant security deposits liability (Account 2191) $ 27,967
N
S 13. Other (Describe) $
(b) Less Total Current Obligations(Add Lines 4 through 13) $ 140,384
(c) Surplus Cash (Deficiency)(Line (a) minus Line (b)) $ 151,262
PART B - COMPUTE DISTRIBUTIONS TO OWNERS AND REQUIRED DEPOSIT TO RESIDUAL RECEIPTS
1. Surplus Cash $ 151,262
2a. Annual Distribution Earned During Fiscal Period
Covered by the Statement $
2b. Distribution Accrued and Unpaid as of the
End of the Prior Period $
2c. Distributions paid During Fiscal Period Covered by Statement $
3. Amount to be Carried on Balance Sheet as Distribution
Earned but Unpaid (Line 2a plus 2b minus 2c) $
4. Amount Available for Distribution During Next Fiscal Period
$ 151,262
5. Deposit Due Residual Receipts
(Must be deposited with Mortgagee within 60 days after Fiscal Period ends) $
PREPARED BY REVIEWED BY
LOAN TECHNICIAN LOAN OFFICER
DATE DATE
</TABLE>
The accompanying notes are an integral part of this statement HUD-93486 12-80
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPORTING DATA REQUIRED BY HUD (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
CHANGES IN FIXED ASSETS
A s s e t s
Accumulated Depreciation
Net
Balance, Balance, Balance, Balance, Book Value
January 1, December 31, January 1, Current December 31, December 31,
1996 Additions Deductions 1996 1996 Provisions Deductions 1996 1997
----------- ---------- ----------- ------------ ---------- ---------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Land $ 318,000 $ - $ - $ 318,000 $ - $ - $ - $ - $ 318,000
Buildings 13,805,309 + 31,465 - 13,836,774 3,135,340 503,269 - 3,638,609 10,198,165
Building
equipment-
portable 616,354 @ 3,282 - 619,636 570,203 31,918 602,121 17,515
Maintenance
equipment 2,381 - - 2,381 2,381 - - 2,381 -
----------- ---------- ---------- ----------- ---------- ---------- ---------- ------------ ------------
TOTALS $14,742,044 $ 34,747 $ - $14,776,791 $3,707,924 $ 535,187 $ - $ 4,243,111 $ 10,533,680
=========== ========== ======= =========== =========== ========== ======= ----------- ============
</TABLE>
+ New Doors & Iron Fence
@ Computer and Printer
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPORTING DATA REQUIRED BY HUD
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
SCHEDULE OF FUNDS IN FINANCIAL INSTITUTIONS
AS OF DECEMBER 31, 1996:
<S> <C> <C>
A. Funds Held by Mortgagor, Regular Operating Account:
1. American National Bank (Checking) * $ 28,995
2. American National Bank (Savings, 2.58%) * 544
3. American National Bank (Safekeeping) 100,000
---------------------
Operating Account $ 129,539
B. Funds held by Mortgagor in Trust, Tenant Security Deposit:
1. American National Bank (Savings, 2.58%) 32,141
---------------------
Total Funds Held by Mortgagor $ 161,680
---------------------
C. Fund Held by Mortgagee:
1. Mortgage escrow + $ 139,448
2. Replacement Reserve + 144,435
---------------------
Total Funds Held by Mortgagee $ 283,883
--------------------
TOTAL FUNDS IN FINANCIAL INSTITUTIONS $ 445,563
=====================
</TABLE>
* Balances confirmed by American National Bank and Trust Company of Chicago +
Balances confirmed by Heitman Financial Services, Inc.
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPLEMENTARY DATA
COMPLIANCE WITH SPECIFIC REQUIREMENTS
APPLICABLE TO MAJOR HUD PROGRAMS
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the financial statements of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of and for the year ended December 31,
1996 and have issued our report thereon dated January 17, 1997.
We have also audited BOULEVARD COMMONS LIMITED PARTNERSHIP's compliance with the
specific program requirements governing federal financial reporting, mortgage
status, replacement reserve, security deposits, cash receipts and disbursements,
distributions to owners, tenant applications, eligibility, and recertification,
and management functions that are applicable to its major HUD-assisted programs
for the year ended December 31, 1996. The management of BOULEVARD COMMONS
LIMITED PARTNERSHIP is responsible for compliance with those requirements. Our
responsibility is to express an opinion on compliance with those requirements
based on our audit.
We conducted our audits in accordance with generally accepted auditing
standards, Government Auditing Standards, issued by the Comptroller General of
the United States, and the Consolidated Audit Guide for Audits of HUD Programs
(the "Guide") issued by the U.S. Department of Housing and Urban Development,
Office of Inspector General in July 1993. Those standards and the Guide require
that we plan and perform the audit to obtain reasonable assurance about whether
material noncompliance with the requirements referred to above occurred. An
audit includes examining, on a test basis, evidence about BOULEVARD COMMONS
LIMITED PARTNERSHIP's compliance with those requirements. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, BOULEVARD COMMONS LIMITED PARTNERSHIP complied, in all material
respects with the requirements described above that are applicable to its major
HUD assisted programs, for the year ended December 31, 1996.
This report is intended for the information of the audit committee, management,
and the Department of Housing and Urban Development. However, this report is a
matter of public record and its distribution is not limited.
/s/Haran & Associates LTD
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate No. 060-002892
Federal Certification No. 36-3097692
Audit Partner: James E. Haran (847)853-2580
January 17, 1997
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPLEMENTARY DATA
INTERNAL CONTROL
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the financial statements of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of and for the year ended December 31,
1996 and have issued our report thereon dated January 17, 1997. We have also
audited BOULEVARD COMMONS LIMITED PARTNERSHIP's compliance with requirements
applicable to the major HUD-assisted programs and have issued our report thereon
dated January 17, 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 he U.S. Department of Housing and Urban Development, Office
of the Inspector General in July 1993. Those standards and the Guide require
that we plan and perform the audit to obtain reasonable assurance about whether
BOULEVARD COMMONS LIMITED PARTNERSHIP complied with laws and regulations,
noncompliance with which would be material to a major HUD-assisted programs.
The management of BOULEVARD COMMONS LIMITED PARTNERSHIP is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. The objectives of an internal control structure are to provide
management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit the preparation of financial statements in
accordance with generally accepted accounting principles and that HUD-assisted
programs are managed in compliance with applicable laws and regulations. Because
of inherent limitations in any internal control structure, errors,
irregularities or instances of noncompliance may nevertheless occur and not be
detected. Also, projection of any evaluation of the structure to future periods
is subject to the risk that procedures may become inadequate because of changes
in conditions or that the effectiveness of the design and operation of policies
and procedures may deteriorate.
In planning and performing our audits, we obtained an understanding of the
design of relevant internal control structure policies and procedures and
determined whether they had been placed in operation, and we assessed control
risk in order to determine our auditing procedures for the purpose of expressing
our opinions on the financial statements of BOULEVARD COMMONS LIMITED
PARTNERSHIP and on its compliance with specific requirements applicable to its
major HUD-assisted programs and to report on the internal control structure in
accordance with the provisions of the Guide and not to provide any assurance on
the internal control structure.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPLEMENTARY DATA
INTERNAL CONTROL (Continued)
We performed tests of controls, as required by the Guide, to evaluate the
effectiveness of the design and operation of the internal control structure
policies and procedures that we considered relevant to preventing or detecting
material noncompliance with specific requirements applicable to BOULEVARD
COMMONS LIMITED PARTNERSHIP's major HUD-assisted programs. Our procedures were
less in scope than would be necessary to render an opinion on internal control
structure policies and procedures. Accordingly, we do not express such an
opinion.
Our consideration of the internal control structure policies and procedures used
in administering major HUD-assisted programs would not necessarily disclose all
matters in the internal control structure that might constitute material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of one or more of the internal control structure elements does not
reduce to a relatively low level the risk that noncompliance with laws and
regulations that would be material to a major HUD-assisted program may occur and
not be detected within a timely period by employees in the normal course of
performing their assigned functions. We noted no matters involving the internal
control structure and its operations that we consider to be material weaknesses
as defined above.
This report is intended for the information of the audit committee, management,
and the Department of Housing and Urban Development. However, this report is a
matter of public record and its distribution is not limited.
/s/Haran & Associates LTD
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate NO. 060-002892
Federal Certification No. 36-3097692
Audit Partner: James E. Haran (847)853-2580
January 17, 1997
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPLEMENTARY DATA
AFFIRMATIVE FAIR HOUSING
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the financial statements of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of and for the year ended December 31,
1996 and have issued our report thereon dated January 17, 1997.
We have applied procedures to test BOULEVARD COMMONS LIMITED PARTNERSHIP's
compliance with the Affirmative Fair Housing requirements applicable to its
HUD-assisted programs, for the year ended December 31, 1996.
Our procedures were limited to the applicable compliance requirement described
in the Consolidated Audit Guide for Audits of HUD programs issued by the U.S.
Department of Housing and Urban Development, Office of Inspector general in July
1993. Our procedures were substantially less in scope than an audit, the
objective of which would be the expression of an opinion on BOULEVARD COMMONS
LIMITED PARTNERSHIP's compliance with the Affirmative Fair Housing requirements.
Accordingly, we do not express such an opinion.
The results of the test disclosed no instances of noncompliance that are
required to be reported herein under the Guide.
This report is intended for the information of the audit committee, management,
and the Department of Housing and Urban Development. However, this report is a
matter of public record and its distribution is not limited.
/s/Haran & Associates LTD
HARAN & ASSOCIATES LTD
Certified Public Accountants
Illinois Certificate No. 060-002892
Federal Certification No. 36-3097692
Audit partner: James E. Haran (847)853-2580
January 17, 1997
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
EMPLOYER IDENTIFICATION NO. 36-3539155
CERTIFICATE OF GENERAL PARTNERS
We hereby certify that we have examined the accompanying
financial statements and supporting data for BOULEVARD
COMMONS LIMITED PARTNERSHIP and, to the best of our
knowledge and belief, the same is complete and accurate.
BOULEVARD COMMONS LIMITED PARTNERSHIP
By__________________________________________
Robert C. King
General Partner
Title_______________________________________
January 17, 1997
Date________________________________________
By__________________________________________
General Partner
Title_______________________________________
January 17, 1997
Date________________________________________
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
EMPLOYER IDENTIFICATION NO. 36-3539155
CERTIFICATE OF MANAGEMENT AGENT
I hereby certify that I have examined the accompanying
financial statements and supporting data for BOULEVARD
COMMONS LIMITED PARTNERSHIP and, to the best of my
knowledge and belief, the same is complete and accurate.
PRAIRIE MANAGEMENT CORPORATION
MANAGEMENT AGENT
By_________________________________________
Robert C. King
President
Title______________________________________
January 17, 1997
Date_______________________________________
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
REPORT ON FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 1995
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
TABLE OF CONTENTS
PAGE
AUDITOR'S REPORT 2
FINANCIAL STATEMENTS
Balance Sheet 3-4
Statement of Profit and Loss (HUD-92410) 5-6
Statement of Changes in Partners' Equity 7
Statement of Cash Flow 8-10
Notes to Financial Statements 11-15
SUPPORTING DATA 16-20
AUDITOR'S COMMENTS ON COMPLIANCE
Major HUD Program 21
AUDITOR'S COMMENTS ON INTERNAL CONTROL 22-23
AUDITOR'S COMMENTS ON AFFIRMATIVE FAIR HOUSING 24
CERTIFICATE OF GENERAL PARTNERS 25
CERTIFICATE OF MANAGEMENT AGENT 26
<PAGE>
INDEPENDENT AUDITOR'S REPORT
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the accompanying balance sheet of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of December 31, 1995, and the related
statements of profit and loss, changes in partners' equity and statement of cash
flows for the year then ended. These financial statements are the responsibility
of the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. These standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatements. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of BOULEVARD COMMONS LIMITED
PARTNERSHIP, as of December 31, 1995, and its profit or loss, changes in
partners' equity, and its cash flows for the year then ended in conformity with
generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report
dated January 19, 1996 on our consideration of BOULEVARD COMMONS LIMITED
PARTNERSHIP's internal control structure and reports dated January 19, 1996 on
its compliance with specific requirements applicable to Major HUD Programs and
specific requirements applicable to Affirmative Fair Housing.
The accompanying supplementary information (shown on pages 16 to 20) is
presented for purposes of additional analysis and is not a required part of the
basic financial statements. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statement and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
/s/Haran & Associates LTD
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate No. 060-002892
Federal Certification No. 36-3097692
Audit Partner: James E. Haran (847)853-2580
January 19, 1996
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
BALANCE SHEET
DECEMBER 31, 1995
<TABLE>
<CAPTION>
A S S E T S
<S> <C>
CURRENT ASSETS
1120 Cash in bank $ 129,363
1130 Tenant accounts receivable 17,646
1135 Rent supplement receivable 133,151
1142 Other accounts receivable 200
---------------
Total current assets $ 280,360
---------------
DEPOSITS HELD IN TRUST - FUNDED
1191 Tenant security deposits - held in trust $ 31,280
---------------
PREPAID EXPENSES
1240 Property insurance $ 29,981
1250 Mortgage insurance 26,635
---------------
Total prepaid expenses $ 56,616
---------------
RESTRICTED DEPOSITS AND FUNDED RESERVES
1310 Mortgage escrow deposits $ 114,512
1320 Cash replacement reserve 91,651
---------------
Total restricted deposits and funded reserves $ 206,163
---------------
FIXED ASSETS
1410 Land $ 318,000
1420 Buildings 13,805,309
1440 Building equipment - portable 616,354
1470 Maintenance equipment 2,381
---------------
Total fixed assets $ 14,742,044
Less accumulated depreciation 3,707,924
Net book value $ 11,034,120
OTHER ASSETS
1840 Deferred loan fees (net of amortization) $ 210,329
1860 Developer agreement escrow deposit 587,518
---------------
TOTAL OTHER ASSETS $ 797,847
===============
TOTAL ASSETS $ 12,406,386
===============
The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
BALANCE SHEET (CONTINUED)
DECEMBER 31, 1995
<TABLE>
<CAPTION>
LIABILITIES AND PARTNERS' EQUITY
<S> <C>
CURRENT LIABILITIES
2110 Accounts payable $ 15,408
2116 Accrued property taxes 159,282
2119 Due to management agent 65,750
2130 Accrued mortgage interest 247,729
2140 Accrued management fee 15,827
2320 Mortgage payable - current portion 28,696
---------------
Total current liabilities $ 532,692
---------------
DEPOSITS
2191 Tenant security deposits - held in trust (contra) $ 27,340
LONG-TERM LIABILITIES
2320 Mortgage payable $ 9,819,096
2330 Junior mortgage payable - City of Chicago 693,500
---------------
Total $ 10,512,596
Less current portion 28,696
---------------
Total long-term liabilities $ 10,483,900
===============
OTHER LIABILITIES
2390 Developer fee payable from escrow (contra) $ 480,000
2391 Due to general partner from escrow 107,518
---------------
Total other liabilities $ 587,518
---------------
Total liabilities $ 11,631,450
===============
PARTNERS' EQUITY
3130 Partners' equity 774,936
---------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 12,406,396
===============
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
<TABLE>
<CAPTION>
Statement of Profit U. S. Department of Housing
and Loss and Urban Development
Office Of Housing
Federal Housing Commissioner OMB Approval No. 2502-0052(Exp 1/31/95)
Public Reporting Burden for this collection of information is estimated to
average 1.0 hours per response, including the time for reviewing instructions,
searching existing data sources, gathering and maintaining the data needed, and
completing and reviewing the collection of information. Send comments regarding
this burden estimate or any other aspect of this collection of information,
including suggestions for reducing this burden, to the Reports Management
Officer, Office of Information, Policies and Systems, U.S. Department of Housing
and Urban Development, Washington, D.C. 20410-3600 and to the Office of
Management and Budget, Paperwork Reduction Project (2502-0052), Washington, D.C.
20503. Do not send this completed form to either of these addresses.
For Month/Period Project No. 071-35592 Project Name BOULEVARD COMMONS LIMITED
Beginning 1/01/95 Ending 12/31/95 PARTNERSHIP
Part I Description of Account Acct No. Amount*
<S> <C> <C> <C>
Rental Income - 5100
Apartments or Member Carrying Charges(Coops) 5120 $ 279,496
Tenant Assistance Payments 5121 $ 1,741,254
Furniture and Equipment 5130 $
Stores and Commercial 5140 $
Garage and Parking Spaces 5170 $
Flexible Subsidy Income 5180 $
Miscellaneous RENTAL ASSISTANCE - PRIOR YEAR 5190 $ 32,827
Total Rent Revenue Potential at 100% Occupancy $ 2,053,577
Vacancies - 5200
Apartments 5220 ( 89,611 )
Furniture and Equipment 5230 ( )
Stores and Commercial 5240 ( )
Garage and Parking Spaces 5270 ( )
Miscellaneous (specify) 5290 ( )
Total Vacancies ( 89,611 )
Net Rental Revenue Rent Revenue Less Vacancies 1,963,966
Elderly and Congregate Services Income - 5300
Total Service Income (Schedule Attached) 5300 $ -0-
Financial Revenue - 5400
Interest Income - Project Operations 5410 $ 5,650
Income from Investments-Residual Receipts 5430 $
Income from Investments-Reserve for Replacement 5440 $ 1,191
Income from Investments-Miscellaneous 5490 $
Total Financial Revenue $ 6,665
Other Revenue - 5900
Laundry and Vending 5910 $
NSF and Late Charges 5920 $ 5,474
Damages and Cleaning Fees 5930 $ 436
Forfeited Tenant Security Deposits 5940 $ 2,470
Other Revenue (specify) 5990 $ 3,667
Total Other Revenue $ 12,223
Total Revenue $ 1,982,854
Administrative Expenses - 6200-6300
Advertising 6210 $ 216
Other Administrative Expenses 6250 $ 1,211
Office Salaries 6310 $ 3,036
Office Supplies 6311 $ 27,564
Office or Model Apartment Rent 6312 $
Management 6320 $ 114,110
Manager or Superintendent Salaries 6330 $ 18,563
Manager or Superintendent Rent Free Unit 6331 $
Legal Expenses (Project) 6340 $ 11,345
Auditing Expenses (Project) 6350 $ 4,600
Bookkeeping Fees/Accounting Services 6351 $ 7,632
Telephone and Answering Service 6360 $ 10,679
Bad Debts 6370 $ 3,733
Miscellaneous Administrative Expenses (specify) 6390 $
Total Administrative Expenses $ 202,689
Utility Expense - 6400
Fuel Oil/Coal 6420 $
Electricity 6450 $ 13,636
Water 6451 $ 26,663
Gas 6452 $ 42,374
Sewer 6453 $
Total Utilities Expense $ 82,673
</TABLE>
The accompanying notes are an integral part of this statement.
*All amounts must be rounded to the nearest dollar; $.50 and
over, round up - $.49 and below, round down.
Form HUD-92410 (7/91
ref Handbook 4370.2
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Operating and Maintenance Expenses - 6500
Janitor and Cleaning Payroll 6510 $ 100,604
Janitor and Cleaning Supplies 6515 $ 15,722
Janitor and Cleaning Contract 6517 $
Exterminating Payroll/Contract 6519 $ 8,870
Exterminating Supplies 6520 $
Garbage and Trash Removal 6525 $ 19,664
Security Payroll/Contract 6530 $ 27,872
Grounds Payroll 6535 $
Grounds Supplies 6536 $
Grounds Contract 6537 $
Repairs Payroll 6540 $ 33,944
Repairs Material 6541 $ 10,646
Repairs Contract 6542 $ 2,797
Elevator Maintenance/Contract 6545 $
Heating/Cooling Repairs and Maintenance 6546 $ 3,198
Swimming Pool Maintenance/Contract 6547 $
Snow Removal 6548 $
Decorating Payroll/Contract 6560 $ 13,596
Decorating Supplies 6561 $ 130
Other 6570 $
Miscellaneous Operating & Maintenance Expenses 6590 $ 450
Total Operating & Maintenance Expenses $ 237,493
Taxes and Insurance - 6700
Real Estate Taxes 6710 $ 164,956
Payroll Taxes (FICA) 6711 $ 12,465
Miscellaneous Taxes, Licenses and Permits 6719 $
Property and Liability Insurance(Hazard) 6720 $ 60,083
Fidelity Bond Insurance 6721 $ 791
Workmen's Compensation 6722 $ 4,876
Health Insurance and Other Employee Benefits 6723 $ 4,403
Other Insurance (specify) 6729 $
Total Taxes and Insurance $ 247,574
Financial Expenses - 6800
Interest on Bonds Payable 6810 $
Interest on Mortgage Payable 6820 $ 901,140
Interest on Notes Payable (Long-Term) 6830 $ 20,805
Interest on Notes Payable (Short-Term) 6840 $ 3,477
Mortgage Insurance Premium/Service Charge 6850 $ 48,885
Miscellaneous Financial Expenses AMORTIZATION 6890 $ 475,739
Total Financial Expenses $ 1,450,046
Elderly and Congregate Service Expenses - 6900
Total Service Expenses-Schedule Attached 6900 $ -0-
Total Cost of Operations Before Depreciation $ 2,220,475
Profit (Loss) Before Depreciation $ (237,621)
Depreciation (Total) - 6600 (specify) 6600 $ 560,271
Operating Profit or (Loss) $ ( 797,892 )
Corporate or Mortgagor Entity Expenses - 7100
Officer Salaries 7110 $
Legal Expenses (Entity) 7120 $
Taxes (Federal-State-Entity) 7130-32 $
Other Expenses (Entity) See Page 7 7190 $
Total Corporate Expenses $ -0-
Net Profit or (Loss) $ ( 797,892 )
</TABLE>
Warning: HUD will prosecute false claims and statements.
Conviction may result in criminal and/or Civil
penalties. (U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729,3802)
Miscellaneous or other income and expenses Sub-account Groups. If
miscellaneous or other income and/or expense sub-accounts
(5190,5290,5490,5990,6390,6590,6729,6890 and 7190) exceed the Account
Groupings by 10% or more, attach a separate schedule describing or
explaining the miscellaneous income or expense.
Part II
1. Total principal payments required under the mortgage, even if payments
under a Workout Agreement are less or more than those required under
the mortgage. $ 22,907
2. Replacement Reserve deposits required by the Regulatory Agreement or
Amendments thereto, even if payments may be temporarily suspended or
waived. $ 47,880
3. Replacement or Painting Reserve releases which are included as expense
items on this Profit and Loss statement. $ NONE
4. Project Improvement Reserve Releases under the Flexible Subsidy Program
that are included as expense items on this Profit and Loss Statement. $
NONE
The accompanying notes are an integral part of this statement.
ref Handbook 4370.2
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
STATEMENT OF CHANGES IN PARTNERS' EQUITY
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
(Loss)
Equity for the Equity
Profit (Deficit) Year Ended (Deficit)
and Loss January 1, December 31, December 31,
Percentage 1995 Distributions Contributions 1995 1995
---------- ---------- ------------- ------------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C>
GENERAL
PARTNERS 1.00 $ ( 28,561) $ - $ - $ ( 7,979) $ ( 36,540)
INVESTOR
LIMITED
PARTNER 99.00 1,601,289 - - (789,913) 811,376
SPECIAL
LIMITED
PARTNER - 100 - - - 100
------ ---------- ---------- ----------- ---------- ----------
TOTALS 100.00 $1,572,828 $ - $ - $ (797,892) $ 774,936
------- ---------- ---------- ----------- ----------- ----------
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
<S> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Cash receipts from:
Rental $ 1,834,209
Interest 6,665
Other 12,223
Total cash receipts $ 1,853,097
-----------
Cash payments for:
Administrative $ 66,980
Management fees 98,283
Utilities 82,673
Salaries and wages 122,203
Operating and maintenance 155,440
Real estate taxes 143,764
Payroll taxes 12,465
Property insurance 59,139
Miscellaneous taxes and insurance 10,070
Interest on mortgage note 794,270
Mortgage insurance 41,883
Tenant security and other deposits 2,023
Interest on note 24,282
-----------
Total cash payments $ 1,613,385
-----------
Net cash used in operating activities $ 239,712
-----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of depreciable assets $ (51,886)
Decrease (increase) in:
Reserve for replacement of depreciable assets (49,071)
Reserve for taxes and insurance (9,937)
Payment or deferred loan fees (176,986)
-----------
Net cash provided by investing activities $ (287,880)
-----------
CASH FLOWS FROM FINANCING ACTIVITIES
Mortgage principal payments $ (22,907)
Advance from management agent 65,750
-----------
Net cash used in financing activities $ 42,843
NET (DECREASE) IN CASH $ (5,325)
CASH - BEGINNING OF YEAR 134,688
-----------
CASH - END OF YEAR $ 129,363
===========
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
<S> <C>
RECONCILIATION OF NET INCOME (LOSS) TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Net (loss) $ (797,892)
Adjustments to reconcile net income (loss) to net
cash provided by (used in) operating activities:
Depreciation 560,271
Amortization 475,739
Interest 94,542
Mortgage insurance 7,290
Decrease (increase) in:
Rent supplement receivable (116,952)
Tenant accounts receivable (12,805)
Prepaid property insurance 944
Prepaid mortgage insurance (288)
Tenant security deposits - held in trust (980)
Increase (decrease) in:
Accounts payable (18,551)
Accrued mortgage interest 12,328
Accrued property taxes 21,282
Tenant security deposits - held in trust (contra) (1,043)
Accrued management fee 15,827
-----------
Net cash used in operating activities $ 239,712
===========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the year for:
Interest $ 913,094
===========
</TABLE>
NONCASH INVESTING AND FINANCING TRANSACTIONS
A bank maintains an escrow account on behalf of the Project for the payment
of development fees and amounts due to a general partner. The transactions in
the accounts for the year were as follows:
Developer Developer Due to General
Agreement Fee Payable Partner from
Escrow Deposit From Escrow Escrow
Developer fees paid $ - $ - $ -
Gain on investments 56,996 - 56,996
-------------- ------------ --------------
Totals $ 56,996 $ - $ 56,996
============== ============ ==============
The Partnership refinanced its 10% mortgage on April 6, 1995 as follows:
Cash paid $ 227,487
Mortgage proceeds 9,834,700
Refund of real estate tax escrow 10,828
Refund of insurance escrow 47,258
Refund of mortgage insurance escrow 29,357
Mortgage payoff (9,724,302)
Interest (94,542)
Funding of real estate tax escrow (24,310)
Funding o insurance escrow (64,020)
Funding of mortgage insurance escrow (7,679)
Payment of mortgage insurance premium (49,173)
Payment of deferred mortgage fees (185,604)
------------------
$ -
==================
DISCLOSURE OF ACCOUNTING POLICY
For purposes of the statement of cash flows, the Partnership considers all
highly liquid debt instruments purchased with a maturity of three months or
less to be cash equivalents.
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Partnership was organized as a limited partnership formed June 15, 1987 and
amended July 13, 1988. Its purpose is to acquire an interest in six buildings
located in Chicago, Illinois, and to renovate and operate thereon two
hundred-thirteen units of low income housing under Section 221(d)(4) of the
National Housing Act. Such projects are regulated by HUD as to rent charges and
operating methods. The regulatory agreement limits annual distributions of net
operating receipts to "surplus cash" available at the end of each year.
The following significant accounting policies have been followed in the
preparation of the financial statements:
Deferred loan costs consist of fees for obtaining the HUD Insured Mortgage
Loan and are being amortized on the straight-line method over the life of the
original mortgage loan. Refinancing costs are being amortized over the life of
the new loan. Unamortized permanent loan fees applicable to the original
permanent loan were amortized in entirety in the current year. This resulted in
additional amortization expenses of $457,529 for the year.
Organization costs associated with the formation of the Partnership were
amortized using the straight-line method over five years.
No income tax provision has been included in the financial statements since
income or loss of the Partnership is required to be reported by the
respective partners on their income tax returns.
Management uses estimates and assumptions in preparing these financial
statements in accordance with generally accepted accounting principles. Those
estimates and assumptions affect the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities and the
reported revenues and expenses. Actual results could vary from the estimates
that were used.
The Partnership maintains cash balances at a bank where accounts are insured
by the F.D.I.C. for up to $100,000. Balances in excess of insured limits
totaled approximately $60,543 at December 31, 1995.
DEVELOPMENT AGREEMENT/ESCROW DEPOSITS
The Partnership has entered into a Development Agreement with Prairie Parc Corp.
(Developer) an affiliate of the General Partners.
For its services in connection with development of the Project and the
supervision of the construction and rehabilitation of the improvements, the
developer shall be entitled to receive the aggregate amount of $2,448,865
payable as follows:
To Be Deposited
Completion date Total in Escrow
----------------- -----------------
5417 West Washington Boulevard $ 534,546 $ 377,932
5500 West Washington Boulevard 342,893 240,684
5521 West Washington Boulevard 685,786 481,368
5716 West Washington Boulevard 220,360 154,654
5912 West Washington Boulevard 220,360 154,654
3635 West Cermak Road 444,920 309,508
----------------- ------------------
Total $ 2,448,865 $ 1,718,800
================= ==================
Payments received or deposited
through 1994 $ 2,448,865 $ 1,718,800
================= ==================
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
DEVELOPMENT AGREEMENT/ESCROW DEPOSITS (Cont'd)
Of the $2,448,865 received by he developer, $1,718,800 was deposited by the
developer into escrow.
The scheduled source and (use) of funds to be deposited into escrow with
American National Bank is as follows:
Deposit required be developer $ 1,718,800
Payment to developer at the later of final closing or
determination of the annual low income housing credit (659,400)
Payment to developer at the later of break-even date or 95%
occupancy date (259,400)
Operating reserve (800,000)
Final closing and the determination of the low income housing credit have both
been achieved, thus $659,400 was disbursed to the developer during 1990.
The break-even date and 95% occupancy were achieved, thus $259,400 was disbursed
to the developer during 1991.
The operating reserve, if not required to fund a net deficit, will be maintained
on the following schedule:
Required
Year end Reserve
----------------- -------
December 31, 1990 $800,000
December 31, 1991 640,000
December 31, 1992 480,000
December 31, 1993 320,000
December 31, 1994 160,000
December 31, 1995 -
During 1994 $160,000 was discussed to the developer from the operating reserve.
Consequently, $480,000 of additional reserve releases are available to the
developer as of December 31, 1995.
All interest after escrow fees are to be given to the developer.
MORTGAGE NOTES PAYABLE
The 10% mortgage was refinanced on April 6, 1995. The new 8.875% mortgage
payable is insured by HUD. The apartment project is pledged as collateral for
the note. Principal and interest payments of $74,916 commenced June 1, 1995 and
continue to May 1, 2035.
As part of the refinancing the remaining balance of the original permanent
mortgage placement fees were amortized in entirety in the year ended December
31, 1995. This resulted in an additional amortization expenses of $457,529.
Under agreements with the mortgage lender and HUD, the Partnership is required
to make monthly escrow deposits for taxes, insurance, and replacement of project
assets, and is subject to restrictions as to operating policies, rental charges
and operating expenditures.
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
DECEMBER 31, 1995
MORTGAGE NOTES PAYABLE (Cont'd)
At December 31, 1995, the following amounts were held in escrow:
Property tax escrow $ 47,005
Property insurance escrow 39,443
Mortgage insurance escrow 28,063
Cash replacement reserve 91,651
----------
Total $ 206,163
==========
The annual principal reduction for each of the next five years is as follows:
1996 $ 28,896
1997 31,349
1998 34,248
1999 37,414
2000 40,873
The liability of the Partnership under the mortgage note is limited to the
under-lying value of the real estate collateral.
The junior mortgage payable to the City of Chicago bears interest at 3% per
annum and matures at the later of July 1, 2030 or retirement of the FHA insured
mortgage. Interest and principal are due in a lump sum upon maturity.
MANAGEMENT AND RENTAL
The Partnership has entered into a management agreement with Prairie Management
Corporation for the year ending December 31, 1995. The management fee is equal
to 5.7% of gross monthly collections.
A contract with the Department of Housing and Urban Development for Housing
Assistance Payments is currently in effect. Under terms of the contracts, a rent
subsidy is to be paid under Section 8 of the National Housing Act. Also under
the terms of the contracts, the annual rent charged to the tenants is limited to
30% of annual income.
MANAGEMENT AGENT ADVANCES
In connection with the refinancing of the first mortgage, Prairie Management
Corporation advanced an initial loan of $319,364 which bears interest at 8.5%.
The principal balance has been paid down to $62,250 at December 31, 1995.
SUPERVISORY MANAGEMENT FEE
Prairie Parc Corp., an affiliate of the General Partners, is the Supervisory
Management Agent. It shall be entitled to a non-cumulative Supervisory
Management Fee equal to the lessor of 4% of the gross revenue or 75% of any cash
flow after the priority distribution of $21,200 is paid to the Investor Limited
Partner. Both the Supervisory Management Fee and the priority distribution are
payable only out of surplus cash as defined by the Regulatory Agreement. In no
event shall the management fee and supervisory management fee exceed 11% of
gross revenues of the project in any fiscal year.
PARTNERSHIP REPORTING FEE
The Investor Limited Partner shall receive an annual $5,000 fee to reimburse it
for its cost of providing reports. The fee is payable only out of surplus
cash, capital contributions or project expense loans.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
NOTES TO FINANCIAL STATEMENTS(CONTINUED)
DECEMBER 31, 1995
PRIORITY DISTRIBUTION
The priority distribution was amended effective with the refinancing under which
the Investor Limited Partner is to receive 99% of the surplus cash until it has
received an annual amount equal to $21,200.
CASH FLOW (DEFICIT)
The following is a summary of cash flow at December 31, 1995 as defined by the
Limited Partnership Agreement:
<TABLE>
<CAPTION>
<S> <C>
Net (loss) $ (797,892)
----------
Additions:
Depreciation $ 560,271
Amortization 475,739
Interest 94,542
Mortgage insurance 7,290
Increase in accrued property taxes 21,282
Increase in prepaid insurance 944
Increase in accrued interest payable 12,328
Interest in accrued management fee 15,827
----------
Total additions $1,188,223
Subtractions:
Payment for deferred loan fees $ ( 176,986)
Mortgage principal payments ( 22,907)
Payments to reserve accounts (net) ( 59,008)
Increase in mortgagee insurance ( 288)
Increase in tenant security
deposits - held in trust ( 980)
Payments for depreciable and
other assets ( 51,886)
Decrease in tenant security deposits -
held in trust (contra) ( 1,043)
Decrease in accounts payable ( 18,551)
Due to management agent ( 65,750)
-----------
Total subtractions $ ( 397,399)
-----------
Project cash flow $ (7,068)
===========
</TABLE>
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPORTING DATA REQUIRED BY HUD
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
DELINQUENT TENANT ACCOUNTS RECEIVABLE Number of Amount
Tenants Past Due
Delinquent 30 days or less 28 $ 7,212
Delinquent 31-60 days 5 5,822
Delinquent 61-90 days 8 2,659
Delinquent over 90 days 6 1,953
------ -----------
Total 47 $ 17,646
--- -----------
MORTGAGE ESCROW DEPOSITS
Estimated amount required as of December 31, 1995
for future payment of:
Property tax $ 48,427
Property insurance 30,821
Mortgage insurance 26,635
Total $ 105,883
Total confirmed by mortgagee 114,512
Amount on deposit in excess of estimated requirements $ 8,629
===========
TENANT SECURITY DEPOSITS
Tenant security deposits are held in a separate bank
account in the name of the Project.
CASH REPLACEMENT RESERVE
In accordance with the provisions of the regulatory agreement, restricted
cash is to be held by Heitman Financial Services, Inc. to be used for
replacement of property with the approval of HUD:
Balance, January 1, 1995 $ 42,580
Deposits 49,071
Withdrawals -
Balance, December 31, 1995, confirmed by mortgagee $ 91,651
===========
ACCOUNTS PAYABLE
Due within 30 days $ 15,408
Due within 31-60 days -
Due in more than 60 days -
-----------
Total $ 15,408
===========
</TABLE>
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPORTING DATA REQUIRED BY HUD (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
ACCRUED TAXES
<S> <C> <C> <C> <C>
Period Date Amount
Description of Tax Basis for Accrual Covered Due Accrued
Property tax Prior year tax 1995 1997 $ 159,282
Cook County Collector
Parcel No. 16-08-415-016-0000
Parcel No. 16-09-318-001-0000
Parcel No. 16-09-314-032-0000
Parcel No. 16-08-413-016-0000
Parcel No. 16-09-320-001-0000
Parcel No. 16-26-106-005-0000
</TABLE>
COMPENSATION OF PARTNERS
During the calendar year 1995, the partners of Boulevard Commons Limited
Partnership did not receive any compensation from rental activities.
SCHEDULE OF UNAUTHORIZED DISTRIBUTIONS
None
DISTRIBUTIONS PAID TO PARTNERS
Distributions to partners $ None
ACCOUNTS AND NOTES RECEIVABLE - OTHER
None
ACCOUNTS AND NOTES PAYABLE - OTHER
None
IDENTITY OF INTEREST COMPANIES
Company Name Type of Service Amount Received
------------ --------------- ---------------
Prairie Management Corporation Management $ 114,186
===========
Prairie Management Corporation Bookkeeping $ 6,996
===========
The General Partners of BOULEVARD COMMONS LIMITED PARTNERSHIP have no
identity of interest with any suppliers of the Project with the exception
that the Partnership entered into a management agreement with Prairie
Management Corporation, an affiliate of a general partner, for management
of the Project.
CHANGES IN OWNERSHIP INTEREST
None
The accompanying notes are an integral part of this statement.
<PAGE>
U.S DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
HOUSING-FEDERAL HOUSING COMMISSIONER
OFFICE OF MULTIFAMILY HOUSING MANAGEMENT AND OCCUPANCY
COMPUTATION OF SURPLUS CASH, DISTRIBUTIONS AND
RESIDUAL RECEIPTS
<TABLE>
<CAPTION>
PROJECT NAME: BOULEVARD COMMONS FISCAL PERIOD ENDED: PROJECT NUMBER: 071-35592
LIMITED PARTNERSHIP 12/ 31 / 95
PART A - COMPUTE SURPLUS CASH
<S> <C> <C>
1. Cash (accounts 1110, 1120, 1191, 1192) $ 160,643
C 2. Tenant subsidy vouchers due for period
A by financial statement $ 133,151
S 3. Other (describe)
H $
(a) Total Cash (Add Line 1,2 and 3) $ 293,794
C 4. Accrued mortgage interest payable $ 247,729
U
R 5. Delinquent mortgage principal payments $
R
E 6. Delinquent deposits to reserve for replacements $
N
T 7. Accounts payable (due within 30 days) $ 15,408
8. Loans and notes payable--
O (due within 30 days) $
B
L 9. Deficient Tax Insurance or MIP Escrow Deposits $
I
G 10. Accrued expenses(not escrowed) $ 15,827
A
T 11. Prepaid Rents (Account 2210) $
I
O 12. Tenant security deposits liability (Account 2191) $ 27,340
N
S 13. Other (Describe) ADVANCES FROM MANAGEMENT AGENT $ 65,750
(b) Less Total Current Obligations(Add Lines 4 through 13) $ 372,054
(c) Surplus Cash (Deficiency)(Line (a) minus Line (b)) $ ( 78,260)
PART B - COMPUTE DISTRIBUTIONS TO OWNERS AND REQUIRED DEPOSIT TO RESIDUAL RECEIPTS
1. Surplus Cash $ None
2a. Annual Distribution Earned During Fiscal Period
Covered by the Statement $
2b. Distribution Accrued and Unpaid as of the
End of the Prior Period $
2c. Distributions paid During Fiscal Period Covered by Statement $
3. Amount to be Carried on Balance Sheet as Distribution
Earned but Unpaid (Line 2a plus 2b minus 2c) $
4. Amount Available for Distribution During Next Fiscal Period
$ None
5. Deposit Due Residual Receipts
(Must be deposited with Mortgagee within 60 days after Fiscal Period ends) $
PREPARED BY REVIEWED BY
LOAN TECHNICIAN LOAN OFFICER
DATE DATE
</TABLE>
The accompanying notes are an integral part of this statement.
HUD-93486 12-80
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPORTING DATA REQUIRED BY HUD (CONTINUED)
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
CHANGES IN FIXED ASSETS
A s s e t s Accumulated Depreciation
Balance, Balance, Balance, Balance, Book Value
January 1, December 31, January 1, Current December 31, December 31,
1995 Additions Deductions 1995 1995 Provisions Deductions 1995 1995
----------- ---------- ----------- ------------ ----------- ---------- ---------- ------------ ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Land $ 318,000 $ - $ - $ 318,000 $ - $ - $ - $ - $ 318,000
Buildings 13,753,423 *51,886465 - 13,805,309 2,634,566 500,774 - 3,135,340 10,669,969
Building
equipment-
portable 616,354 - - 616,354 510,706 59,497 - 570,203 46,151
Maintenance
equipment 2,381 - - 2,381 2,381 - - 2,381 -
----------- ---------- ---------- ----------- ----------- ---------- ---------- ----------- ------------
TOTALS $14,690,158 $ 51,886 $ - $14,742,044 $3,7147,653 $ 560,271 $ - $ 3,707,924 $ 11,034,120
=========== ========== ========== =========== =========== ========== ========== =========== ============
</TABLE>
* Roof Repairs
The accompanying notes are an integral part of this statement.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPORTING DATA REQUIRED BY HUD
FOR THE YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
SCHEDULE OF FUNDS IN FINANCIAL INSTITUTIONS
AS OF DECEMBER 31, 1995:
<S> <C> <C>
A. Funds Held by Mortgagor, Regular Operating Account:
1. American National Bank (Checking) * $ 128,773
2. American National Bank (Savings, 3.15%) * 530
---------------------
Operating Account $ 129,263
B. Funds held by Mortgagor in Trust, Tenant Security Deposit:
1. American National Bank (Savings, 3.15%) 31,280
---------------------
Total Funds Held by Mortgagor $ 160,543
---------------------
C. Fund Held by Mortgagee:
1. Mortgage escrow + $ 114,512
2. Replacement Reserve + 91,651
---------------------
Total Funds Held by Mortgagee $ 206,163
--------------------
TOTAL FUNDS IN FINANCIAL INSTITUTIONS $ 366,706
=====================
</TABLE>
* Balances confirmed by American National Bank and Trust Company of Chicago
+ Balances confirmed by Heitman Financial Services, Inc.
The accompanying notes are an integral part of this statements.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPLEMENTARY DATA
COMPLIANCE WITH SPECIFIC REQUIREMENTS
APPLICABLE TO MAJOR HUD PROGRAMS
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the financial statements of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of and for the year ended December 31,
1995 and have issued our report thereon dated January 19, 1996.
We have also audited BOULEVARD COMMONS LIMITED PARTNERSHIP's compliance with the
specific program requirements governing federal financial reporting, mortgage
status, replacement reserve, security deposits, cash receipts and disbursements,
distributions to owners, tenant applications, eligibility, and recertification,
and management functions that are applicable to its major HUD-assisted programs
for the year ended December 31, 1995. The management of BOULEVARD COMMONS
LIMITED PARTNERSHIP is responsible for compliance with those requirements. Our
responsibility is to express an opinion on compliance with those requirements
based on our audit.
We conducted our audits in accordance with generally accepted auditing
standards, Government Auditing Standards, issued by the Comptroller General of
the United States, and the Consolidated Audit Guide for Audits of HUD Programs
(the "Guide") issued by the U.S. Department of Housing and Urban Development,
Office of Inspector General in July 1993. Those standards and the Guide require
that we plan and perform the audit to obtain reasonable assurance about whether
material noncompliance with the requirements referred to above occurred. An
audit includes examining, on a test basis, evidence about BOULEVARD COMMONS
LIMITED PARTNERSHIP's compliance with those requirements. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion, BOULEVARD COMMONS LIMITED PARTNERSHIP complied, in all material
respects with the requirements described above that are applicable to its major
HUD assisted programs, for the year ended December 31, 1995.
This report is intended for the information of the audit committee, management,
and the Department of Housing and Urban Development. However, this report is a
matter of public record and its distribution is not limited.
/s/Haran & Associates
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate No. 060-002892
Federal Certification No. 36-3097692
Audit Partner: James E. Haran (847)853-2580
January 19, 1996
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPLEMENTARY DATA
INTERNAL CONTROL
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the financial statements of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of and for the year ended December 31,
1995 and have issued our report thereon dated January 19, 1996. We have also
audited BOULEVARD COMMONS LIMITED PARTNERSHIP's compliance with requirements
applicable to the major HUD-assisted programs and have issued our report thereon
dated January 19, 1996.
We conducted our audits in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States and the Consolidated Audit Guide for Audits of HUD Programs (the
"Guide"), issued by he U.S. Department of Housing and Urban Development, Office
of the Inspector General in July 1993. Those standards and the Guide require
that we plan and perform the audit to obtain reasonable assurance about whether
BOULEVARD COMMONS LIMITED PARTNERSHIP complied with laws and regulations,
noncompliance with which would be material to a major HUD-assisted programs.
The management of BOULEVARD COMMONS LIMITED PARTNERSHIP is responsible for
establishing and maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to assess the
expected benefits and related costs of internal control structure policies and
procedures. The objectives of an internal control structure are to provide
management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition and that
transactions are executed in accordance with management's authorization and
recorded properly to permit the preparation of financial statements in
accordance with generally accepted accounting principles and that HUD-assisted
programs are managed in compliance with applicable laws and regulations. Because
of inherent limitations in any internal control structure, errors,
irregularities or instances of noncompliance may nevertheless occur and not be
detected. Also, projection of any evaluation of the structure to future periods
is subject to the risk that procedures may become inadequate because of changes
in conditions or that the effectiveness of the design and operation of policies
and procedures may deteriorate.
In planning and performing our audits, we obtained an understanding of the
design of relevant internal control structure policies and procedures and
determined whether they had been placed in operation, and we assessed control
risk in order to determine our auditing procedures for the purpose of expressing
our opinions on the financial statements of BOULEVARD COMMONS LIMITED
PARTNERSHIP and on its compliance with specific requirements applicable to its
major HUD-assisted programs and to report on the internal control structure in
accordance with the provisions of the Guide and not to provide any assurance on
the internal control structure.
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPLEMENTARY DATA
INTERNAL CONTROL (Continued)
We performed tests of controls, as required by the Guide, to evaluate the
effectiveness of the design and operation of the internal control structure
policies and procedures that we considered relevant to preventing or detecting
material noncompliance with specific requirements applicable to BOULEVARD
COMMONS LIMITED PARTNERSHIP's major HUD-assisted programs. Our procedures were
less in scope than would be necessary to render an opinion on internal control
structure policies and procedures. Accordingly, we do not express such an
opinion.
Our consideration of the internal control structure policies and procedures used
in administering major HUD-assisted programs would not necessarily disclose all
matters in the internal control structure that might constitute material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of one or more of the internal control structure elements does not
reduce to a relatively low level the risk that noncompliance with laws and
regulations that would be material to a major HUD-assisted program may occur and
not be detected within a timely period by employees in the normal course of
performing their assigned functions. We noted no matters involving the internal
control structure and its operations that we consider to be material weaknesses
as defined above.
This report is intended for the information of the audit committee, management,
and the Department of Housing and Urban Development. However, this report is a
matter of public record and its distribution is not limited.
/s/Haran & Associates LTD
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate NO. 060-002892
Federal Certification No. 36-3097692
Audit Partner: James E. Haran (847)853-2580
January 19, 1996
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
SUPPLEMENTARY DATA
AFFIRMATIVE FAIR HOUSING
To the Partners HUD Field Office Director
BOULEVARD COMMONS LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the financial statements of BOULEVARD COMMONS LIMITED
PARTNERSHIP, Project No. 071-35592, as of and for the year ended December 31,
1995 and have issued our report thereon dated January 19, 1996.
We have applied procedures to test BOULEVARD COMMONS LIMITED PARTNERSHIP's
compliance with the Affirmative Fair Housing requirements applicable to its
HUD-assisted programs, for the year ended December 31, 1995.
Our procedures were limited to the applicable compliance requirement described
in the Consolidated Audit Guide for Audits of HUD programs issued by the U.S.
Department of Housing and Urban Development, Office of Inspector general in July
1993. Our procedures were substantially less in scope than an audit, the
objective of which would be the expression of an opinion on BOULEVARD COMMONS
LIMITED PARTNERSHIP's compliance with the Affirmative Fair Housing requirements.
Accordingly, we do not express such an opinion.
The results of the test disclosed no instances of noncompliance that are
required to be reported herein under the Guide.
This report is intended for the information of the audit committee, management,
and the Department of Housing and Urban Development. However, this report is a
matter of public record and its distribution is not limited.
/s/Haran & Associates LTD
HARAN & ASSOCIATES LTD
Certified Public Accountants
Illinois Certificate No. 060-002892
Federal Certification No. 36-3097692
Audit partner: James E. Haran (847)853-2580
January 19, 1996
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
CERTIFICATE OF GENERAL PARTNERS
We hereby certify that we have examined the accompanying
financial statements and supporting data for BOULEVARD
COMMONS LIMITED PARTNERSHIP and, to the best of our
knowledge and belief, the same is complete and accurate.
BOULEVARD COMMONS LIMITED PARTNERSHIP
FEDERAL EMPLOYER IDENTIFICATION NO. 36-3539155
By__________________________________________
Robert C. King
General Partner
Title______________________________________
January 19, 1996
Date________________________________________
By__________________________________________
General Partner
Title_______________________________________
January 19, 1996
Date________________________________________
<PAGE>
BOULEVARD COMMONS LIMITED PARTNERSHIP
PROJECT NO. 071-35592
CERTIFICATE OF MANAGEMENT AGENT
I hereby certify that I have examined the accompanying
financial statements and supporting data for BOULEVARD
COMMONS LIMITED PARTNERSHIP and, to the best of my
knowledge and belief, the same is complete and accurate.
PRAIRIE MANAGEMENT CORPORATION
FEDERAL EMPLOYER IDENTIFICATION NO. 36-3520022
MANAGEMENT AGENT
By__________________________________________
Robert C. King
President
Title_______________________________________
January 19, 1996
Date________________________________________
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 243,723
<SECURITIES> 2,025,236
<RECEIVABLES> 000
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 000
<PP&E> 1,112,647
<DEPRECIATION> 000
<TOTAL-ASSETS> 5,428,937<F1>
<CURRENT-LIABILITIES> 000
<BONDS> 1,210,000
<COMMON> 000
000
000
<OTHER-SE> 4,036,448
<TOTAL-LIABILITY-AND-EQUITY> 5,428,937<F2>
<SALES> 000
<TOTAL-REVENUES> 414,211<F3>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 902,043<F4>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 118,057
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (2,927,278)<F5>
<EPS-PRIMARY> (57.96)
<EPS-DILUTED> 000
<FN>
<F1>Included in Total assets is $4,731 of Tenant security deposits, $1,842,272
of Investments in Local Limited Partnerships, $6,398 of Replacement reserve
escrow, $6,020 of Mortgagee escrow deposits, $107,572 in Bond trusts, $45,145 of
Deferred charges, Accounts receivable, net of $3,000 and $32,193 of Other
assets.
<F2>Included in Total liability and equity are $58,589 of Minority interest in
the Local Limited Partnership, Accounts payable and accrued expenses of
$27,577, Accounts payable to affiliate of $22,773, Accrued interest of $68,819
and Tenant security deposits payable of $4,731.
<F3>Total revenue includes $146,437 of Investment revenue, $228,680 of Rental
revenue and $39,094 of other revenue.
<F4>Included in Other expenses is Povision for valuation of investments in
Local Limited Partnerships of $356,398, $66,816 of Amortization, $276,279
of General and administrative expenses, $52,665 of Bad debt expenses, $45,459
of Depreciation and $104,426 of Rental operations.
<F5>Net income reflects Equity in losses of Local Limited Partnerships of
$2,321,647 and Minority interest of $258.
</FN>
</TABLE>
