SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- - --- EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- - --- EXCHANGE ACT OF 1934
Commission File Number 0-24660
LIBERTY TAX CREDIT PLUS II L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3458180
- - ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
625 Madison Avenue, New York, New York 10022
- - ---------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 421-5333
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No ____
---
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
LIBERTY TAX CREDIT PLUS II L.P.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS
<TABLE>
<CAPTION>
September 30, March 31,
1996 1996
------------- ---------
<S> <C> <C>
Property and equipment, net of accumulated depreciation
of $52,682,867 and $48,743,758, respectively $189,812,672 $192,479,831
Cash and cash equivalents 4,126,595 4,498,565
Cash held in escrow 6,349,805 6,382,851
Deferred costs, net of accumulated amortization of $2,959,918
and $2,877,861, respectively 4,422,770 4,479,818
Other assets 4,665,776 4,988,601
------------ ------------
Total assets $209,377,618 $212,829,666
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Mortgage notes payable $119,146,103 $119,895,307
Accounts payable and other liabilities 9,251,080 8,477,781
Due to local general partners and affiliates 11,034,240 10,632,221
Due to general partners and affiliates 1,320,969 1,216,964
Due to selling partners 3,662,414 3,658,664
------------ ------------
Total liabilities 144,414,806 143,880,937
------------ ------------
Minority interest 3,630,274 3,827,457
------------ ------------
Commitments and contingencies (Note 3)
Partners' capital
Limited partners (115,917.5 BACs issued and outstanding) 61,749,896 65,500,743
General partners (417,358) (379,471)
------------ ------------
Total partners' capital 61,332,538 65,121,272
------------ ------------
Total liabilities and partners' capital $209,377,618 $212,829,666
============ ============
</TABLE>
See accompanying notes to consolidated financial statements
-2-
<PAGE>
LIBERTY TAX CREDIT PLUS II L.P.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
September 30, September 30,
----------------------------- -----------------------------
1996 1995* 1996 1995*
<S> <C> <C> <C> <C>
Revenues
Rentals, net $6,007,567 $6,000,559 $12,103,990 $12,036,659
Other 145,626 138,113 311,172 273,258
----------- ----------- ----------- -----------
6,153,193 6,138,672 12,415,162 12,309,917
----------- ----------- ----------- -----------
Expenses
General and administrative 1,598,945 1,457,448 3,105,739 2,992,346
General and administrative-
related parties (Note 2) 235,475 291,079 482,309 560,093
Repairs and maintenance 998,871 952,308 1,815,403 1,616,998
Operating and other 615,681 597,283 1,539,235 1,402,038
Real estate taxes 282,665 292,951 534,510 544,789
Insurance 291,899 288,823 582,302 548,339
Interest 2,124,847 2,109,319 4,209,982 4,198,696
Depreciation and amortization 1,985,781 2,007,663 4,021,166 4,027,699
----------- ----------- ----------- -----------
8,134,164 7,996,874 16,290,646 15,890,998
----------- ----------- ----------- -----------
Minority interest in loss of subsidiaries 26,010 47,418 86,750 118,777
----------- ----------- ----------- -----------
Net loss $(1,954,961) $(1,810,784) $(3,788,734) $(3,462,304)
=========== =========== =========== ===========
Net loss - limited partners $(1,935,411) $(1,792,676) $(3,750,847) $(3,427,681)
=========== =========== =========== ===========
Number of BACs outstanding 115,917.50 115,917.50 115,917.50 115,917.50
=========== =========== =========== ===========
Net loss per BAC $ (16.70) $ (15.46) $ (32.36) $ (29.57)
=========== =========== =========== ===========
</TABLE>
* Reclassified for comparative purposes
See accompanying notes to consolidated financial statements.
-3-
<PAGE>
LIBERTY TAX CREDIT PLUS II L.P.
AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN PARTNERS' CAPITAL
(Unaudited)
<TABLE>
<CAPTION>
Total Limited Partners General Partners
----- ---------------- ----------------
<S> <C> <C> <C>
Partners' capital - April 1, 1996 $65,121,272 $65,500,743 $ (379,471)
Net loss (3,788,734) (3,750,847) (37,887)
----------- ----------- -----------
Partners' capital - September 30, 1996 $61,332,538 $61,749,896 $ (417,358)
=========== =========== ===========
</TABLE>
See accompanying notes to consolidated financial statements
-4-
<PAGE>
LIBERTY TAX CREDIT PLUS II L.P.
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended September 30
-----------------------------
1996 1995
------------- ----------
<S> <C> <C>
Cash flows provided by operating activities:
Net loss $(3,788,734) $(3,462,304)
----------- -----------
Adjustments to reconcile net loss to net cash provided by operating
activities:
Depreciation and amortization 4,021,166 4,027,699
Minority interest in loss of subsidiaries (86,750) (118,777)
Decrease in other assets 322,825 375,642
Decrease (increase) in cash held in escrow 14,772 (346,504)
Increase in accounts payable and other liabilities 773,299 1,142,006
Increase in due to general partners and affiliates 104,005 145,216
Increase in due to local general partners and affiliates 426,150 363,884
Decrease in due to local general partners and affiliates (24,131) (112,252)
----------- -----------
Total adjustments 5,551,336 5,476,914
----------- -----------
Net cash provided by operating activities 1,762,602 2,014,610
----------- -----------
Cash flows used in investing activities:
Acquisition of property and equipment (1,271,950) (736,797)
Decrease (increase) in cash held in escrow 18,274 (97,673)
----------- -----------
Net cash used in investing activities (1,253,676) (834,470)
----------- -----------
Cash flows used in financing activities:
Increase in deferred costs (25,009) 0
Repayments of mortgage notes (749,204) (645,770)
Increase in due to selling partners 3,750 3,750
Decrease in capitalization of consolidated subsidiaries attributable
to minority interest (110,433) (78,354)
----------- -----------
Net cash used in financing activities (880,896) (720,374)
----------- -----------
Net (decrease) increase in cash and cash equivalents (371,970) 459,766
Cash and cash equivalents at beginning of period 4,498,565 4,374,218
----------- -----------
Cash and cash equivalents at end of period $ 4,126,595 $ 4,833,984
=========== ===========
</TABLE>
See accompanying notes to consolidated financial statements
-5-
<PAGE>
LIBERTY TAX CREDIT PLUS II L.P.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
NOTE 1 - General
The consolidated financial statements include the accounts of
Liberty Tax Credit Plus II (the "Partnership") and 27 subsidiary partnerships
("subsidiary partnerships" or" Local Partnerships") in which the Partnership is
the limited partner. Through the rights of the Partnership and/or the General
Partner, which General Partner has a contractual obligation to act on behalf of
the Partnership, to remove the general partner of the subsidiary local
partnerships and to approve certain major operating and financial decisions, the
Partnership has a controlling financial interest in the subsidiary local
partnerships.
The Partnership's fiscal quarter ends September 30. All subsidiary
partnerships have fiscal quarters ending June 30. Accounts of the subsidiary
partnerships have been adjusted for intercompany transactions from July 1
through September 30.
All intercompany accounts and transactions have been eliminated in
consolidation.
Increases (decreases) in the capitalization of consolidated
subsidiary partnerships attributable to minority interest arises from cash
contributions and cash distributions to the minority interest partners.
Losses attributable to minority interests which exceed the
minority interests' investment in a subsidiary partnership have been charged to
the Partnership. Such losses aggregated $110,000 and $240,000 and $138,000 and
$265,000 for the three and six months ended September 30, 1996 and 1995,
respectively. The Partnership's investment in each subsidiary partnership is
equal to the respective subsidiary partnership's partners' equity less minority
interest capital, if any. In consolidation, all subsidiary partnership losses
are included in the Partnership's capital account except for losses allocated to
minority interest capital.
In March 1995, the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standards ("SFAS") No. 121, "Accounting
for the Impairment of Long-Lived Asset and for Long-Lived Assets to Be Disposed
Of". Under SFAS No. 121, the Partnership is required to review long-lived assets
and certain identifiable intangibles for impairment whenever events or changes
in circumstances indicate that the book value of an asset may not be
recoverable. An impairment loss should be recognized whenever the review
demonstrates that the book value of a long-lived asset is not recoverable.
Effective April 1, 1996, the Partnership adopted SFAS No. 121, consistent with
the required adoption period.
Property and equipment are carried at the lower of depreciated
cost or estimated amounts recoverable through future operations and ultimate
disposition of the property. Cost includes the purchase price, acquisition fees
and expenses, and any other costs incurred in acquiring the properties. As
required by SFAS 121, a provision for loss on impairment of assets is recorded
when estimated amounts recoverable through future operations and sale of the
property on an undiscounted basis are below depreciated cost. However,
depreciated cost, adjusted for such reductions in value, if any, may be greater
than the fair value. Property investments themselves are reduced to estimated
fair value (generally using discounted cash flows) when the property is
considered to be impaired and the depreciated cost exceeds estimate fair value.
Through September 30, 1996, the Partnership has not recorded any provisions for
loss on impairment of assets or reduction to estimated fair value.
The books and records of the Partnership are maintained on the
accrual basis in accordance with generally accepted accounting principles. In
the opinion of the general partners of the Partnership (the "General Partners"),
the accompanying unaudited financial statements contain all adjustments
(consisting only of normal
-6-
<PAGE>
LIBERTY TAX CREDIT PLUS II L.P.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
NOTE 1 - General (continued)
recurring adjustments) necessary to present fairly the financial position of the
Partnership as of September 30, 1996, the results of operations for three and
six months ended September 30, 1996 and 1995 and cash flows for the six months
ended September 30, 1996 and 1995. However, the operating results for the six
months ended September 30, 1996 may not be indicative of the results for the
year.
Certain information and note disclosures normally included in
financial statements prepared in accordance with generally accepted accounting
principles have been omitted or condensed. These consolidated financial
statements should be read in conjunction with the financial statements and notes
thereto included in the Partnership's Annual Report on Form 10-K for the year
ended March 31, 1996.
NOTE 2 - Related Party Transactions
One of the General Partners has a 1% interest as a special limited
partner in each of the subsidiary partnerships. An affiliate of the General
Partners also has a minority interest in certain subsidiary partnerships.
The General Partners and their affiliates perform services for the
Partnership. The costs incurred for the three and six months ended September 30,
1996 and 1995 are as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
September 30, September 30,
----------------------------- ------------------------------
1996 1995* 1996 1995*
----------- ----------- ----------- ------------
<S> <C> <C> <C> <C>
Partnership management
fees (a) $ 50,000 $ 83,000 $ 100,000 $ 166,000
Expense reimbursement (b) 21,937 31,562 53,815 53,897
Property management fees (c) 151,038 168,717 303,994 324,196
Local administrative fee (d) 12,500 7,800 24,500 16,000
----------- ----------- ----------- -----------
$ 235,475 $ 291,079 $ 482,309 $ 560,093
=========== =========== =========== ===========
</TABLE>
* Reclassified for comparative purposes
(a) The General Partners are entitled to receive a partnership
management fee, after payment of all Partnership expenses, which together with
the annual local administrative fees will not exceed a maximum of 0.5% per annum
of invested assets (as defined in the Partnership Agreement), for administering
the affairs of the Partnership. The partnership management fee, subject to the
foregoing limitation, will be determined by the General Partners in their sole
discretion based upon their review of the Partnership's investments. Partnership
management fees owed to the General Partners amounting to approximately $982,000
and $882,000 were accrued and unpaid as of September 30, 1996 and March 31,
1996, respectively.
(b) The Partnership reimburses the General Partners and their
affiliates for actual Partnership operating expenses incurred by the General
Partners and their affiliates on the Partnership's behalf. The amount of
reimbursement from the Partnership is limited by the provisions of the
Partnership Agreement. Another affiliate of the General Partners performs asset
monitoring for the Partnership. These services include site visits and
evaluations of the subsidiary partnerships' performance.
-7-
<PAGE>
LIBERTY TAX CREDIT PLUS II L.P.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 1996
(Unaudited)
NOTE 2 - Related Party Transactions (continued)
(c) Property management fees incurred by subsidiary
partnerships amounted to $387,760 and $761,452 and $370,150 and $726,057 for the
three and six months ended September 30, 1996 and 1995 respectively. Of these
fees $151,038 and $303,994 and $168,717 and $324,196 were incurred to affiliates
of the subsidiary partnerships' general partners. Included in amounts incurred
to affiliates of the subsidiary partnerships' general partners are $18,779 and
$37,178 and $31,212 and $61,358 for the three and six months ended September 30,
1996 and 1995, respectively, which were also incurred to affiliates of the
Partnership.
(d) Liberty Associates II L.P., a special limited partner of
the subsidiary partnerships, is entitled to receive a local administrative fee
of up to $2,500 per year from each subsidiary partnership.
NOTE 3 - Commitment and Contingencies
The following disclosures include changes and/or additions to
disclosures regarding the subsidiary partnerships which were included in the
Partnership's Annual Report on Form 10-K for the period ended March 31, 1996.
Santa Juanita II Limited Partnership
------------------------------------
A bank filed a suit against the Local Partnership Santa
Juanita II Limited Partnership ("Santa Juanita") for non-payment of the monthly
installments required by a second mortgage loan agreement. During February 1994,
the court issued a judgement against Santa Juanita demanding immediate payment
of the second mortgage note with an outstanding principal balance of $474,656,
plus accrued interest and legal expenses. A significant portion of Santa
Juanita's operating assets is pledged as collateral for this note and
foreclosure by the bank would seriously impair Santa Juanita's continued
existence. In May 1996, the special limited partner of Santa Juanita instituted
proceedings to formally remove the general partner of Santa Juanita and is in
the process of replacing such general partner. The special limited partner is
presently having discussions with the bank for purposes of settling this
judgement. In June 1996, the general partner of Santa Juanita filed a voluntary
petition under Chapter 11 of the United States Bankruptcy Code. It is
management's opinion that no accrual for potential losses is currently warranted
in the financial statements. The maximum loss which the Partnership would be
liable for is its net investment in Santa Juanita amounting to approximately
$523,000 at September 30, 1996. The Partnership's investment in Santa Juanita at
September 30, 1996 and March 31, 1996 was approximately $523,000 and $568,000
respectively, and the minority interest balance was zero at each date. Santa
Juanita's income (loss) after minority interest amounted to approximately
($22,000) and ($45,000) and $75,000 and ($42,000) for the three and six months
ended September 30, 1996 and 1995, respectively.
Rolling Green Limited Partnership
---------------------------------
Rolling Green Limited Partnership ("Rolling Green") operates and
is regulated by the United States Department of Housing and Urban Development
(HUD) under Section 221(d)(3) of the National Housing Act. Rents received by the
project are subsidized by Section 8 Housing Assistance Payments. Rental income
from such Assistance Payments totaled $1,143,607 and $968,241 in 1995 and 1994,
respectively. In September 1996, two of the three Section 8 contracts expired
and were renewed through September 1997 at which time the third contract will
also expire. However, uncertainties regarding the future of HUD Programs exist.
It is not practical to estimate the impact upon Rolling Green's operations if
the rents were to be respectively changed to market value.
-8-
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
- - -------------------------------
The Partnership's primary source of funds include (i) working
capital reserves, (ii) interest earned on the working capital reserves and (iii)
cash distributions from the operations of the Local Partnerships. All these
sources of funds are available to meet obligations of the Partnership.
As of September 30, 1996 the Partnership has invested all of the
net proceeds in twenty-seven Local Partnerships. Approximately $439,000 of the
purchase price remains to be paid (none of which is being held in escrow).
During the six months ended September 30, 1996, $294,250 was paid (all of which
was released from escrow).
During the six months ended September 30, 1996, cash and cash
equivalents of the Partnership and its 27 consolidated subsidiary partnerships
decreased approximately ($372,000). This decrease was primarily due to
acquisitions of property and equipment ($1,272,000), repayments of mortgage
notes ($749,000) and a decrease in capitalization of consolidated subsidiaries
attributable to minority interest ($110,000) which exceeded cash provided by
operating activities ($1,763,000).
The Partnership established a working capital reserve of
approximately $3,500,000 (3% of gross equity raised) of which approximately
$765,000 and $402,000 was unused at September 30,1996 and March 31, 1996,
respectively. The General Partners believe that these reserves, plus any cash
distributions received from the operations of the Local Partnerships are
sufficient to fund the Partnership's ongoing operations for the foreseeable
future. During the six months ended September 30, 1996 and 1995 respectively,
amounts received from operations of the Local Partnerships were $621,476 and
$7,046, respectively.
For discussion of contingencies affecting certain Local
Partnerships, see Note 3 to the financial statements. Since the maximum loss the
Partnership would be liable for is its net investment in the respective Local
Partnerships, the resolution of the existing contingencies is not anticipated to
impact future results of operations, liquidity or financial condition in a
material way. However, the Partnership's loss of its investment in a Local
Partnership will eliminate the ability to generate future tax credits from such
Local Partnership and may also result in recapture of tax credits if the
investment is lost before the expiration of the credit period.
Except as described above, management is not aware of any trends
or events, commitments or uncertainties which have not otherwise been disclosed,
or are likely to impact liquidity in a material way. Management believes the
only impact would be from laws that have not yet been adopted. The portfolio is
diversified by the location of the properties around the United States so that
if one area of the country is experiencing downturns in the economy, the
remaining properties in the portfolio may be experiencing upswings. However, the
geographic diversifications of the portfolio may not protect against a general
downturn in the national economy. The Partnership has fully invested the
proceeds of its offerings in 27 Local Partnerships, all of which fully have
their tax credits in place. The tax credits are attached to the project for a
period of ten years and are transferable with the property during the remainder
of the ten year period. If trends in the real estate market warranted the sale
of a property, the remaining tax credits would transfer to the new owner,
thereby adding significant value to the property on the market, which are not
included in the financial statement carrying amount.
Results of Operations
- - ---------------------
In March 1995, the Financial Accounting Standards Board ("FASB")
issued Statement of Financial Accounting Standards ("SFAS") No. 121, "Accounting
for the Impairment of Long-Lived Asset and for Long-Lived Assets to Be Disposed
Of". Under SFAS No. 121, the Partnership is required to review long-lived assets
and certain identifiable intangibles for impairment whenever events or changes
in circumstances indicate that the book value of an asset may not be
recoverable. An impairment loss should be recognized whenever the review
demonstrates that the book value of a long-lived asset is not recoverable.
Effective April 1, 1996, the Partnership adopted SFAS No. 121, consistent with
the required adoption period.
-9-
<PAGE>
Property and equipment are carried at the lower of depreciated
cost or estimated amounts recoverable through future operations and ultimate
disposition of the property. Cost includes the purchase price, acquisition fees
and expenses, and any other costs incurred in acquiring the properties. As
required by SFAS 121, a provision for loss on impairment of assets is recorded
when estimated amounts recoverable through future operations and sale of the
property on an undiscounted basis are below depreciated cost. However,
depreciated cost, adjusted for such reductions in value, if any, may be greater
than the fair value. Property investments themselves are reduced to estimated
fair value (generally using discounted cash flows) when the property is
considered to be impaired and the depreciated cost exceeds estimate fair value.
Through September 30, 1996, the Partnership has not recorded any provisions for
loss on impairment of assets or reduction to estimated fair value.
Results of operations for the three and six months ended September
30, 1996 consisted primarily of the results of the Partnership's investment in
twenty-seven Local Partnerships.
Rental income increased less than 1% during both the three and six
months ended September 30, 1996 as compared to the corresponding periods in 1995
primarily due to rental rate increases.
Other income increased approximately $38,000 for the six months
ended September 30, 1996 as compared to the corresponding period in 1995
primarily due to a real estate tax refund at one Local Partnership in the first
quarter.
Total expenses excluding general and administrative, general and
administrative-related parties, repairs and maintenance and operating and other
decreased and increased less than 1% for the three and six months ended
September 30, 1996, respectively, as compared to the corresponding periods one
year earlier.
General and administrative increased approximately $141,000 and
$113,000 for the three and six months ended September 30, 1996 as compared to
the corresponding periods in 1995. These increases were primarily due to an
increase in security expenses at two Local Partnerships and an increase in legal
expenses due to the filing of a voluntary petition under Chapter 11 of the
United States Bankruptcy Code by another Local Partnership.
General and administrative-related parties decreased approximately
$56,000 and $78,000 for the three and six months ended September 30, 1996 as
compared to the corresponding periods in 1995 primarily due to a decrease in
partnership management fees as well as a decrease in property management fees
primarily attributable to the management of one additional Local Partnership in
1995.
Repairs and maintenance increased approximately $198,000 for the
six months ended September 30, 1996 as compared to the corresponding period in
1995 primarily due to increases at five Local Partnerships. There was an
increase at one Local Partnership due to the replacement of leaking deck areas.
The increase at the second Local Partnership was due to plumbing repairs
necessary due to frozen pipes as well as an increase in painting expenses. The
increase at the third Local Partnership was due to repairs necessary to make
units ready to show and ultimately lease in order to increase occupancy. The
increase at the fourth Local Partnership was due to repairs to one unit which
was damaged by fire. The increase at the fifth Local Partnership was due to
intercom and fire alarm repairs along with an increase in painting expenses.
Operating and other increased approximately $137,000 for the six
months ended September 30, 1996 as compared to the corresponding period in 1995
primarily due to an increase in utilities at two Local Partnership's.
-10-
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings-The litigation described in the Partnership's
Annual Report on Form 10-K for the year ended March 31, 1996 is
incorporated herein by reference.
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K - None
(a) Exhibits
27 Financial Data Schedule (filed herewith)
(b) Reports on Form 8K - No reports of Form 8-K were filed during
the quarter.
-11-
<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.
LIBERTY TAX CREDIT PLUS II L.P.
(Registrant)
By: RELATED CREDIT PROPERTIES II L.P.,
a General Partner
By: RELATED CREDIT PROPERTIES II INC.,
a General Partner
Date: November 13, 1996 By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes,
Vice President
(Principal Financial Officer)
Date: November 13, 1996 By: /s/ Richard A. Palermo
----------------------
Richard A. Palermo,
Treasurer
(Principal Accounting Officer)
and
By: LIBERTY G.P. II INC.,
a General Partner
Date: November 13, 1996 By: /s/ Paul L. Abbott
------------------
Paul L. Abbott,
Chairman of the Board, President, Chief
Operating Officer and Director
-13-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial information
extracted from the financial statements for Liberty Tax
Credit Plus II L. P. and is qualified in its entirety by
reference to such financial statements
</LEGEND>
<CIK> 0000832141
<NAME> Liberty Tax Credit Plus II L.P.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> APR-01-1996
<PERIOD-END> SEP-30-1996
<CASH> 10,476,400
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 9,088,546
<PP&E> 242,495,539
<DEPRECIATION> 52,682,867
<TOTAL-ASSETS> 209,377,618
<CURRENT-LIABILITIES> 21,606,289
<BONDS> 122,808,517
0
0
<COMMON> 0
<OTHER-SE> 64,962,812
<TOTAL-LIABILITY-AND-EQUITY> 209,377,618
<SALES> 0
<TOTAL-REVENUES> 12,415,162
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 12,080,664
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,209,982
<INCOME-PRETAX> (3,875,484)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,875,484)
<EPS-PRIMARY> (32.36)
<EPS-DILUTED> 0
</TABLE>
