FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1995
------------------
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ________ to ________
Commission file number 0-17679
-----------------------------------------
BOSTON CAPITAL TAX CREDIT FUND LIMITED PARTNERSHIP
- -----------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 04-3006542
- -------------------------------- -----------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Boston Place, Suite 2100, Boston, Massachusetts 02108
- -----------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 624-8900
--------------
- -----------------------------------------------------------------
(Former name, former address and former fiscal year, if changed
since last report)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2)has been subject to such filing
requirements for the past 90 days.
Yes X No
------ ------
<PAGE>
BOSTON CAPITAL TAX CREDIT FUND LIMITED PARTNERSHIP
--------------------------------------------------
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 31, 1995
-----------------------------------------------
TABLE OF CONTENTS
-----------------
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements..............................
Balance Sheets....................................
Statements of Operations..........................
Statement of Changes in Partners' Capital.........
Statements of Cash Flows..........................
Notes to Financial Statements.....................
Item 2. Management's Discussion and Analysis of
Financial Condition and Results
of Operations.....................................
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K..................
Signatures........................................
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
December 31, March 31,
1995 1995
(Unaudited) (Audited)
------------ ------------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $27,335,732 $32,538,323
OTHER ASSETS
Cash and cash equivalents 279,070 409,285
Other assets 503,554 464,703
---------- ----------
$28,118,356 $33,412,311
========== ==========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 3,441,969 $ 2,716,873
---------- ----------
PARTNERS' CAPITAL
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $10 stated
value per BAC, 9,800,600 issued and 25,279,537 31,238,397
outstanding
General Partner (603,150) (542,959)
---------- ----------
24,676,387 30,695,438
---------- ----------
$28,118,356 $33,412,311
========== ==========
The accompanying notes are an integral part of these statements.
1
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 1
----------------------------
December 31, March 31,
1995 1995
(Unaudited) (Audited)
----------- ---------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 210,960 $ 760,753
OTHER ASSETS
Cash and cash equivalents 52,166 67,610
Other assets 54,303 15,450
-------- --------
$ 317,429 $ 843,813
======== ========
LIABILITIES
Accounts payable and accrued
expenses (Note C) $ 883,998 $ 708,350
-------- --------
PARTNERS' CAPITAL
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $10 stated
value per BAC, 1,299,900 issued and (447,680) 247,332
outstanding
General Partner (118,889) (111,869)
-------- --------
(566,569) 135,463
-------- --------
$ 317,429 $ 843,813
======== ========
The accompanying notes are an integral part of these statements.
2
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 2
----------------------------
December 31, March 31,
1995 1995
ASSETS (Unaudited) (Audited)
----------- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $2,259,891 $2,692,427
OTHER ASSETS
Cash and cash equivalents 4,041 23,531
Other assets 360,285 360,285
--------- ---------
$2,624,217 $3,076,243
========= =========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 196,180 $ 144,250
--------- ---------
PARTNERS' CAPITAL
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $10 stated
value per BAC, 830,300 issued and
outstanding 2,473,100 2,972,016
General Partner (45,063) (40,023)
--------- ---------
2,428,037 2,931,993
--------- ---------
$2,624,217 $3,076,243
========= =========
The accompanying notes are an integral part of these statements.
3
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 3
----------------------------
December 31, March 31,
1995 1995
ASSETS (Unaudited) (Audited)
----------- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $7,552,769 $9,411,087
OTHER ASSETS
Cash and cash equivalents 5,475 25,072
Other assets 41,861 41,861
--------- ---------
$7,600,105 $9,478,020
========= =========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 959,161 $ 747,606
--------- ---------
PARTNERS' CAPITAL
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $10 stated
value per BAC, 2,882,200 issued and
outstanding 6,826,449 8,895,024
General Partner (185,505) (164,610)
--------- ---------
6,640,944 8,730,414
--------- ---------
$7,600,105 $9,478,020
========= =========
The accompanying notes are an integral part of these statements.
4
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 4
----------------------------
December 31, March 31,
1995 1995
(Unaudited) (Audited)
------------ ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $9,992,500 $11,655,359
OTHER ASSETS
Cash and cash equivalents 25,757 59,115
Other assets 13,992 13,994
---------- ----------
$10,032,249 $11,728,468
========== ==========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 710,838 $ 522,675
---------- ----------
PARTNERS' CAPITAL
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $10 stated
value per BAC, 2,995,300 issued and
outstanding 9,488,302 11,353,840
General Partner (166,891) (148,047)
---------- ----------
9,321,411 11,205,793
---------- ----------
$10,032,249 $11,728,468
========== ==========
The accompanying notes are an integral part of these statements.
5
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 5
----------------------------
December 31, March 31,
1995 1995
(Unaudited) (Audited)
------------ ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $1,459,511 $1,665,945
OTHER ASSETS
Cash and cash equivalents 157,665 208,686
Other assets 33,113 33,113
--------- ---------
$1,650,289 $1,907,744
========= =========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 18,504 $ 28,913
--------- ---------
PARTNERS' CAPITAL
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $10 stated
value per BAC, 489,900 issued and
outstanding 1,657,217 1,901,793
General Partner (25,432) (22,962)
--------- ---------
1,631,785 1,878,831
--------- ---------
$1,650,289 $1,907,744
========= =========
The accompanying notes are an integral part of these statements.
6
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 6
----------------------------
December 31, March 31,
1995 1995
(Unaudited) (Audited)
------------ ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $5,860,101 $6,352,752
OTHER ASSETS
Cash and cash equivalents 33,966 25,271
Other assets - -
--------- ---------
$5,894,067 $6,378,023
========= =========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 673,288 $ 565,079
--------- ---------
PARTNERS' CAPITAL
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $10 stated
value per BAC, 1,303,000 issued and
outstanding 5,282,149 5,868,392
General Partner (61,370) (55,448)
--------- ---------
5,220,779 5,812,944
--------- ---------
$5,894,067 $6,378,023
========= =========
The accompanying notes are an integral part of these statements.
7
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
1995 1994
---- ----
Income
Interest income $ 1,789 $ 2,506
Miscellaneous income - 1,150
---------- ----------
1,789 3,656
---------- ----------
Share of loss from Operating
Partnerships (Note D) (1,592,398) (1,787,586)
---------- ----------
Expenses
Amortization - 14,613
Partnership management fees 209,831 236,162
General and administrative expenses 23,394 43,526
---------- ----------
233,225 294,301
---------- ----------
NET LOSS $(1,823,834) $(2,078,231)
========== ==========
Net loss allocated to assignees $(1,805,596) $(2,057,449)
========== ==========
Net loss allocated to general partner $ (18,238) $ (20,782)
========== ==========
Net loss per BAC $ (1.04) $ (1.10)
========== ==========
The accompanying notes are an integral part of these statements.
8
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
SERIES 1
-----------------------
1995 1994
---- ----
Income
Interest income $ 347 $ 402
Miscellaneous income - 275
-------- --------
347 677
-------- --------
Share of loss from Operating
Partnerships (Note D) (241,622) (220,975)
-------- --------
Expenses
Amortization - -
Partnership management fees 41,216 45,216
General office and professional
fee expenses 3,154 4,758
-------- --------
44,370 49,974
-------- --------
NET LOSS $(285,645) $(270,272)
======== ========
Net loss allocated to assignees $(282,789) $(267,569)
======== ========
Net loss allocated to general partner $ (2,856) $ (2,703)
======== ========
Net loss per BAC $ (.22) $ (.21)
======== ========
The accompanying notes are an integral part of these statements.
9
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
SERIES 2
----------------------
1995 1994
---- ----
Income
Interest income $ 39 192
Miscellaneous income - -
-------- --------
39 192
-------- --------
Share of loss from Operating
Partnerships (Note D) (131,619) (87,235)
-------- --------
Expenses
Amortization - -
Partnership management fees 17,310 17,160
General office and professional
fee expenses 4,106 7,477
-------- --------
21,416 24,637
-------- --------
NET LOSS $(152,996) $(111,680)
======== ========
Net loss allocated to assignees $(151,466) $(110,563)
======== ========
Net loss allocated to general partner $ (1,530) $ (1,117)
======== ========
Net loss per BAC $ (.18) $ (.13)
======== ========
The accompanying notes are an integral part of these statements.
10
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
SERIES 3
----------------------
1995 1994
---- ----
Income
Interest income $ 23 $ 186
Miscellaneous income - 200
-------- --------
23 386
-------- --------
Share of loss from Operating
Partnerships (Note D) (365,479) (603,391)
-------- --------
Expenses
Amortization - 4,914
Partnership management fees 66,697 65,132
General office and professional
fee expenses 5,516 7,930
-------- --------
72,213 77,976
-------- --------
NET LOSS $(437,669) $(680,981)
======== ========
Net loss allocated to assignees $(433,292) $(674,171)
======== ========
Net loss allocated to general partner $ (4,377) $ (6,810)
======== ========
Net loss per BAC $ (.15) $ (.23)
======== ========
The accompanying notes are an integral part of these statements.
11
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
SERIES 4
----------------------
1995 1994
---- ----
Income
Interest income $ 203 $ 390
Miscellaneous income - 375
-------- --------
203 765
-------- --------
Share of loss from Operating
Partnerships (Note D) (650,207) (653,161)
-------- --------
Expenses
Amortization - 5,079
Partnership management fees 62,721 62,721
General office and professional
fee expenses 6,899 11,625
-------- --------
69,620 79,425
-------- --------
NET LOSS $(719,624) $(731,821)
======== ========
Net loss allocated to assignees $(712,428) $(724,503)
======== ========
Net loss allocated to general partner $ (7,196) $ (7,318)
======== ========
Net loss per BAC $ (.24) $ (.24)
======== ========
The accompanying notes are an integral part of these statements.
12
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
SERIES 5
----------------------
1995 1994
---- ----
Income
Interest income $ 1,104 $ 1,198
Miscellaneous income - 100
-------- --------
1,104 1,298
-------- --------
Share of loss from Operating
Partnerships (Note D) (54,621) (41,505)
-------- --------
Expenses
Amortization - 2,885
Partnership management fees 9,864 9,864
General office and professional
fee expenses 2,850 8,109
-------- --------
12,714 20,858
-------- --------
NET LOSS $ (66,231) $ (61,065)
======== ========
Net loss allocated to assignees $ (65,569) $ (60,454)
======== ========
Net loss allocated to general partner $ (662) $ (611)
======== ========
Net loss per BAC $ (.13) $ (.12)
======== ========
The accompanying notes are an integral part of these statements.
13
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
SERIES 6
----------------------
1995 1994
---- ----
Income
Interest income $ 73 $ 138
Miscellaneous income - 200
-------- --------
73 338
-------- --------
Share of loss from Operating
Partnerships (Note D) (148,850) (181,319)
-------- --------
Expenses
Amortization - 1,735
Partnership management fees 12,023 36,069
General office and professional
fee expenses 869 3,627
-------- --------
12,892 41,431
-------- --------
NET LOSS $(161,669) $(222,412)
======== ========
Net loss allocated to assignees $(160,052) $(220,188)
======== ========
Net loss allocated to general partner $ (1,617) $ (2,224)
======== ========
Net loss per BAC $ (.12) $ (.17)
======== ========
The accompanying notes are an integral part of these statements.
14
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
1995 1994
Income ---- ----
Interest income $ 6,898 $ 8,434
Miscellaneous income 1,304 54,290
---------- ----------
8,202 62,724
---------- ----------
Share of loss from Operating
Partnerships (Note D) (5,201,029) (6,961,557)
---------- ----------
Expenses
Amortization - 89,927
Partnership management fees 670,483 697,489
General and administrative expenses 155,741 228,763
---------- ----------
826,224 1,016,179
---------- ----------
NET LOSS $(6,019,051) $(7,915,012)
========== ==========
Net loss allocated to assignees $(5,958,860) $(7,835,860)
========== ==========
Net loss allocated to general partner $ (60,191) $ (79,152)
========== ==========
Net loss per BAC $ (3.41) $ (4.96)
========== ==========
The accompanying notes are an integral part of these statements.
15
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 1
----------------------
1995 1994
---- ----
Income
Interest income $ 1,131 $ 1,355
Miscellaneous income - 975
-------- ----------
1,131 2,330
-------- ----------
Share of loss from Operating
Partnerships (Note D) (549,793) (1,302,391)
-------- ----------
Expenses
Amortization - 11,045
Partnership management fees 125,917 133,648
General office and professional
fee expenses 27,453 29,204
-------- ----------
153,370 173,897
-------- ----------
NET LOSS $(702,032) $(1,473,958)
======== ==========
Net loss allocated to assignees $(695,012) $(1,459,218)
======== ==========
Net loss allocated to general partner $ (7,020) $ (14,740)
======== ==========
Net loss per BAC $ (.53) $ (1.12)
======== ==========
The accompanying notes are an integral part of these statements.
16
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 2
----------------------
1995 1994
---- ----
Income
Interest income $ 267 $ 648
Miscellaneous income - 225
-------- --------
267 873
-------- --------
Share of loss from Operating
Partnerships (Note D) (432,536) (578,528)
-------- --------
Expenses
Amortization - 6,102
Partnership management fees 49,826 51,780
General office and professional
fee expenses 21,861 24,017
-------- --------
71,687 81,899
-------- --------
NET LOSS $(503,956) $(659,554)
======== ========
Net loss allocated to assignees $(498,916) $(652,958)
======== ========
Net loss allocated to general partner $ (5,040) $ (6,596)
======== ========
Net loss per BAC $ (.60) $ (.78)
======== ========
The accompanying notes are an integral part of these statements.
17
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 3
------------------------
1995 1994
---- ----
Income
Interest income $ 213 $ 483
Miscellaneous income 1,304 51,150
---------- ----------
1,517 51,633
---------- ----------
Share of loss from Operating
Partnerships (Note D) (1,856,755) (2,093,168)
---------- ----------
Expenses
Amortization - 20,196
Partnership management fees 197,521 197,430
General office and professional
fee expenses 36,711 39,621
---------- ----------
234,232 257,247
---------- ----------
NET LOSS $(2,089,470) $(2,298,782)
========== ==========
Net loss allocated to assignees $(2,068,575) $(2,275,794)
========== ==========
Net loss allocated to general partner $ (20,895) $ (22,988)
========== ==========
Net loss per BAC $ (.72) $ (.79)
========== ==========
The accompanying notes are an integral part of these statements.
18
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 4
------------------------
1995 1994
---- ----
Income
Interest income $ 837 $ 1,870
Miscellaneous income - 1,234
---------- ----------
837 3,104
---------- ----------
Share of loss from Operating
Partnerships (Note D) (1,662,861) (2,073,820)
---------- ----------
Expenses
Amortization - 27,936
Partnership management fees 188,163 177,982
General office and professional
fee expenses 34,195 42,727
---------- ----------
222,358 248,645
---------- ----------
NET LOSS $(1,884,382) $(2,319,361)
========== ==========
Net loss allocated to assignees $(1,865,538) $(2,296,167)
========== ==========
Net loss allocated to general partner $ (18,844) $ (23,194)
========== ==========
Net loss per BAC $ (.62) $ (.77)
========== ==========
The accompanying notes are an integral part of these statements.
19
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 5
---------------------
1995 1994
---- ----
Income
Interest income $ 3,684 $ 3,648
Miscellaneous income - 356
-------- --------
3,684 4,004
-------- --------
Share of loss from Operating
Partnerships (Note D) (206,433) (432,184)
-------- --------
Expenses
Amortization - 7,781
Partnership management fees 28,592 29,592
General office and professional
fee expenses 15,705 72,317
-------- --------
44,297 109,690
-------- --------
NET LOSS $(247,046) $(537,870)
======== ========
Net loss allocated to assignees $(244,576) $(532,491)
======== ========
Net loss allocated to general partner $ (2,470) $ (5,379)
======== ========
Net loss per BAC $ (.49) $ (1.10)
======= ========
The accompanying notes are an integral part of these statements.
20
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 6
----------------------
1995 1994
---- ----
Income
Interest income $ 766 $ 430
Miscellaneous income - 350
-------- --------
766 780
-------- --------
Share of loss from Operating
Partnerships (Note D) (492,651) (481,466)
-------- --------
Expenses
Amortization - 16,867
Partnership management fees 80,464 107,057
General office and professional
fee expenses 19,816 20,877
-------- --------
100,280 144,801
-------- --------
NET LOSS $(592,165) $(625,487)
======== ========
Net loss allocated to assignees $(586,243) $(619,232)
======== ========
Net loss allocated to general partner $ (5,922) $ (6,255)
======== ========
Net loss per BAC $ (.45) $ (.48)
======== ========
The accompanying notes are an integral part of these statements.
21
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Nine Months Ended December 31, 1995
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Partners' capital (deficit),
April 1, 1995 $31,238,397 $(542,959) $30,695,438
Net loss (5,958,860) (60,191) (6,019,051)
---------- -------- ----------
Partners' capital (deficit),
December 31, 1995 $25,279,537 $(603,150) $24,676,387
========== ======== ==========
The accompanying notes are an integral part of these statements.
22
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Nine Months Ended December 31, 1995
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Series 1
- --------
Partners' capital (deficit),
April 1, 1995 $ 247,332 $(111,869) $ 135,463
Net loss (695,012) (7,020) (702,032)
-------- -------- --------
Partners' capital (deficit),
December 31, 1995 $(447,680) $(118,889) $(566,569)
======== ======== ========
Series 2
- --------
Partners' capital (deficit),
April 1, 1995 $2,972,016 $(40,023) $2,931,993
Net loss (498,916) (5,040) (503,956)
--------- ------- ---------
Partners' capital (deficit),
December 31, 1995 $2,473,100 $(45,063) $2,428,037
========= ======= =========
Series 3
- --------
Partners' capital (deficit),
April 1, 1995 $ 8,895,024 $(164,610) $ 8,730,414
Net loss (2,068,575) (20,895) (2,089,470)
---------- -------- ----------
Partners' capital (deficit),
December 31, 1995 $ 6,826,449 $(185,505) $ 6,640,944
========== ======== ==========
The accompanying notes are an integral part of these statements.
23
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Nine Months Ended December 31, 1995
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Series 4
- --------
Partners' capital (deficit),
April 1, 1995 $11,353,840 $(148,047) $11,205,793
Net loss (1,865,538) (18,844) (1,884,382)
---------- -------- ----------
Partners' capital (deficit),
December 31, 1995 $ 9,488,302 $(166,891) $ 9,321,411
========== ======== ==========
Series 5
- --------
Partners' capital (deficit),
April 1, 1995 $1,901,793 $(22,962) $1,878,831
Net loss (244,576) (2,470) (247,046)
--------- ------- ---------
Partners' capital (deficit),
December 31, 1995 $1,657,217 $(25,432) $1,631,785
========= ======= =========
Series 6
- --------
Partners' capital (deficit),
April 1, 1995 $5,868,392 $(55,448) $5,812,944
Net loss (586,243) (5,922) (592,165)
--------- -------- --------
Partners' capital (deficit),
December 31, 1995 $5,282,149 $(61,370) $5,220,779
========= ======= =========
The accompanying notes are an integral part of these statements.
24
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
1995 1994
---- ----
Cash flows from operating activities:
Net loss $(6,019,051) $(7,915,012)
Adjustments
Distributions from Operating
Partnerships 1,563 2,843
Amortization - 89,927
Share of loss from Operating
Partnerships 5,201,029 6,961,557
Changes in assets and liabilities
Increase (Decrease) in accounts
payable and accrued expenses 725,097 732,341
Decrease (Increase) in other
assets (38,853) (2,907)
---------- ----------
Net cash used in operating
activities (130,215) (131,251)
---------- ----------
Cash flows from investing activity:
Purchase of Operating
Partnership interest - (13,623)
---------- ----------
Net cash used in investing
activity - (13,623)
---------- ----------
DECREASE IN CASH AND CASH
EQUIVALENTS (130,215) (144,874)
Cash and cash equivalents, beginning 409,285 567,323
---------- ----------
Cash and cash equivalents, ending $ 279,070 $ 422,449
========== ==========
The accompanying notes are an integral part of these statements.
25
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 1
-------------------------
1995 1994
---- ----
Cash flows from operating activities:
Net loss $(702,032) $(1,473,958)
Adjustments
Distributions from Operating
Partnerships - 1,334
Amortization - 11,045
Share of loss from Operating
Partnerships 549,793 1,302,391
Changes in assets and liabilities
Increase (Decrease) in accounts
payable and accrued expenses 175,648 137,788
Decrease (Increase) in other
assets (38,853) (15,449)
-------- ---------
Net cash provided by (used in)
operating activities (15,444) (36,849)
-------- ---------
Cash flows from investing activity:
Purchase of Operating
Partnership interest - -
-------- ---------
Net cash used in investing
activity - -
-------- ---------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (15,444) (36,849)
Cash and cash equivalents, beginning 67,610 100,237
-------- ---------
Cash and cash equivalents, ending $ 52,166 $ 63,388
======== =========
The accompanying notes are an integral part of these statements.
26
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 2
-------------------------
1995 1994
---- ----
Cash flows from operating activities:
Net loss $(503,956) $(659,554)
Adjustments
Distributions from Operating
Partnerships - -
Amortization - 6,102
Share of loss from Operating
Partnerships 432,536 578,528
Changes in assets and liabilities
Increase (Decrease) in accounts
payable and accrued expenses 51,930 54,154
Decrease (Increase) in other
assets - -
-------- --------
Net cash provided by (used in)
operating activities (19,490) (20,770)
-------- --------
Cash flows from investing activity:
Purchase of Operating
Partnership interest - -
-------- --------
Net cash used in investing
activity - -
-------- --------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (19,490) (20,770)
Cash and cash equivalents, beginning 23,531 51,300
-------- --------
Cash and cash equivalents, ending $ 4,041 $ 30,530
======== ========
The accompanying notes are an integral part of these statements.
27
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 3
-------------------------
1995 1994
---- ----
Cash flows from operating activities:
Net loss $(2,089,470) $(2,298,782)
Adjustments
Distributions from Operating
Partnerships 1,563 1,304
Amortization - 20,196
Share of loss from Operating
Partnerships 1,856,755 2,093,168
Changes in assets and liabilities
Increase (Decrease) in accounts
payable and accrued expenses 211,555 204,632
Decrease (Increase) in other
assets - -
--------- ---------
Net cash provided by (used in)
operating activities (19,597) 20,518
--------- ---------
Cash flows from investing activity:
Purchase of Operating
Partnership interest - (13,623)
--------- ---------
Net cash used in investing
activity - (13,623)
--------- ---------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (19,597) 6,895
Cash and cash equivalents, beginning 25,072 21,109
--------- ---------
Cash and cash equivalents, ending $ 5,475 $ 28,004
========= =========
The accompanying notes are an integral part of these statements.
28
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 4
-------------------------
1995 1994
---- ----
Cash flows from operating activities:
Net loss $(1,884,382) $(2,319,361)
Adjustments
Distributions from Operating
Partnerships - 205
Amortization - 27,936
Share of loss from Operating
Partnerships 1,662,861 2,073,820
Changes in assets and liabilities
Increase (Decrease) in accounts
payable and accrued expenses 188,163 192,688
Decrease (Increase) in other
assets - -
--------- ---------
Net cash provided by (used in)
operating activities (33,358) (24,712)
--------- ---------
Cash flows from investing activity:
Purchase of Operating
Partnership interest - -
--------- ---------
Net cash used in investing
activity - -
--------- ---------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (33,358) (24,712)
Cash and cash equivalents, beginning 59,115 89,291
--------- ---------
Cash and cash equivalents, ending $ 25,757 $ 64,579
========= =========
The accompanying notes are an integral part of these statements.
29
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 5
-------------------------
1995 1994
---- ----
Cash flows from operating activities:
Net loss $(247,046) $(537,870)
Adjustments
Distributions from Operating
Partnerships - -
Amortization - 7,781
Share of loss from Operating
Partnerships 206,433 432,184
Changes in assets and liabilities
Increase (Decrease) in accounts
payable and accrued expenses (10,408) 33,652
Decrease (Increase) in other
assets - -
------- --------
Net cash provided by (used in)
operating activities (51,021) (64,253)
------- --------
Cash flows from investing activity:
Purchase of Operating
Partnership interest - -
------- --------
Net cash used in investing
activity - -
------- --------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (51,021) (64,253)
Cash and cash equivalents, beginning 208,686 278,678
------- --------
Cash and cash equivalents, ending $157,665 $ 214,425
======= ========
The accompanying notes are an integral part of these statements.
30
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 6
-------------------------
1995 1994
---- ----
Cash flows from operating activities:
Net loss $(592,165) $(625,487)
Adjustments
Distributions from Operating
Partnerships - -
Amortization - 16,867
Share of loss from Operating
Partnerships 492,651 481,466
Changes in assets and liabilities
Increase (Decrease) in accounts
payable and accrued expenses 108,209 109,427
Decrease (Increase) in other
assets - 12,542
-------- --------
Net cash provided by (used in)
operating activities 8,695 (5,185)
-------- --------
Cash flows from investing activity:
Purchase of Operating
Partnership interest - -
-------- --------
Net cash used in investing
activity - -
-------- --------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 8,695 (5,185)
Cash and cash equivalents, beginning 25,271 26,708
-------- --------
Cash and cash equivalents, ending $ 33,966 $ 21,523
======== ========
The accompanying notes are an integral part of these statements.
31
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS
December 31, 1995
(Unaudited)
NOTE A - ORGANIZATION
Boston Capital Tax Credit Fund Limited Partnership ("the
Partnership") was formed under the laws of the State of Delaware
as of June 1, 1988, for the purpose of acquiring, holding, and
disposing of limited partnership interests in operating partnerships
which have acquired, developed, rehabilitated, operate and own newly
constructed, existing or rehabilitated low-income apartment complexes
("Operating Partnerships"). On August 22, 1988, American Affordable Housing
VI Limited Partnership changed its name to Boston Capital Tax Credit Fund
Limited Partnership. The general partner of the Partnership is Boston Capital
Associates Limited Partnership and the limited partner is BCTC Assignor Corp.
(the "Assignor Limited Partner").
Pursuant to the Securities Act of 1933, the Partnership filed a
Form S-11 Registration Statement with the Securities and Exchange
Commission, effective August 29, 1988, which covered the offering (the
"Public Offering") of the Partnership's beneficial assignee certificates
("BACs") representing assignments of units of the beneficial interest of the
limited partnership interest of the Assignor Limited Partner. The Partnership
registered 10,000,000 BACs at $10 per BAC for sale to the public in six
series. Offers and sales of BACs in Series 1 through Series 6 of the
Partnership were completed and the last of the BACs in Series 6 were issued by
the Partnership on September 29, 1989. The Partnership sold 1,299,900 of
Series 1 BACs, 830,300 of Series 2 BACs, 2,882,200 of Series 3 BACs,
2,995,300 of Series 4 BACs, 489,900 of Series 5 BACs and 1,303,000 of Series 6
BACs. The Partnership is no longer offering and does not intend to offer any
additional BACs.
NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES
The condensed financial statements included herein as of December 31,
1995 and for the nine months then ended have been prepared by the Partnership,
without audit, pursuant to the rules and regulations of the Securities and
Exchange Commission. The Partnership accounts for its investments in
Operating Partnerships using the equity method, whereby the Partnership
adjusts its investment cost for its share of each Operating Partnership's
results of operations and for any distributions received or accrued. Costs
incurred by the Partnership in acquiring the investments in Operating
Partnerships are capitalized to the investment account. The Partnership's
accounting and financial reporting policies are in conformity with generally
accepted accounting principles and include adjustments in interim periods
considered necessary for a fair presentation of the results of operations.
Such adjustments are of a normal recurring nature. Certain information and
footnote disclosures normally included in financial statements prepared in
accordance with generally accepted accounting principles have been condensed
32
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1995
(Unaudited)
NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES (continued)
or omitted pursuant to such rules and regulations. It is suggested that these
condensed financial statements be read in conjunction with the financial
statements and the notes thereto included in the Partnership's Annual Report
on Form 10-K.
NOTE C - RELATED PARTY TRANSACTIONS
The Partnership has entered into several transactions with various
affiliates of the general partner, including Boston Capital Partners, Inc. and
Boston Capital Communications Limited Partnership.
Administrative expenses were incurred by Boston Capital Partners, Inc.
and it's affiliates on behalf of the Partnership during the quarters ended
December 31, 1995 and 1994 as follows:
1995 1994
----- -----
Series 1 $ 971 $ 679
Series 2 2,040 955
Series 3 1,559 957
Series 4 2,428 1,127
Series 5 1,457 907
Series 6 971 546
----- -----
$9,426 $5,171
===== =====
An annual partnership management fee based on .375 percent of the
aggregate cost of all apartment complexes owned by the Operating Partnerships
has been accrued to Boston Capital Communications Limited Partnership. The
partnership management fee charged to operations, less the amount of certain
partnership management and reporting fees paid by the Operating Partnerships,
for the quarters ended December 31, 1995 and 1994 are as follows:
1995 1994
---- ----
Series 1 $ 41,216 $ 45,216
Series 2 17,310 17,160
Series 3 66,697 65,132
Series 4 62,721 62,721
Series 5 9,864 9,864
Series 6 12,023 36,069
------- -------
$209,831 $236,162
======= =======
33
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1995
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS
At December 31, 1995 and 1994, the Partnership had limited partnership
interests in one hundred and five Operating Partnerships which own operating
apartment complexes as follows: nineteen in Series 1; eight in Series 2;
thirty-three in Series 3; twenty-five in Series 4; five in Series 5; and
fifteen in Series 6.
Under the terms of the Partnership's investment in each Operating
Partnership, the Partnership was required to make capital contributions to
such Operating Partnerships. These contributions were payable in installments
over several years upon each Operating Partnership achieving specified levels
of construction and/or operations. At December 31, 1995 and 1994, all
capital contributions had been paid to the Operating Partnerships in all of
the Series.
The Partnership's fiscal year ends March 31 of each year, while all the
Operating Partnerships' fiscal years are the calendar year. Pursuant to the
provisions of each Operating Partnership Agreement, financial results for each
of the Operating Partnerships are provided to the Partnership within 45 days
after the close of each Operating Partnership's quarterly period.
Accordingly, the current financial results available for the Operating
Partnerships are for the nine months ended December 31, 1995.
The combined unaudited summarized statements of operations of the
Operating Partnerships for the nine months ended September 30, 1995 and 1994
are as follows:
34
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1995
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)
Series 1
---------------------------
1995 1994
---- ----
Revenues
Rental $ 3,975,473 $ 2,941,553
Interest and other 124,308 216,763
--------- ---------
4,099,781 3,158,316
--------- ---------
Expenses
Interest 947,928 814,566
Depreciation and amortization 1,438,184 1,032,237
Operating expenses 3,395,664 2,627,060
--------- ---------
5,781,776 4,473,863
--------- ---------
NET LOSS $(1,681,995) $(1,315,547)
========== ==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (549,793) $(1,302,391)
========== ==========
Net loss allocated to other partners $ (16,820) $ (13,156)
========== ==========
Net loss suspended $(1,115,382) $ -
========== ==========
The variance in allowable loss from the Operating Partnerships for the nine
months ended September 30, 1995 and 1994 is mainly a result of the way the
Partnership accounts for its investment in Operating Partnerships. The
Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the partnership adjusts its
investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
35
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1995
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)
Series 2
--------------------------
1995 1994
---- ----
Revenues
Rental $ 732,286 $ 920,504
Interest and other 26,760 45,812
--------- ---------
759,046 966,316
--------- ---------
Expenses
Interest 477,708 440,588
Depreciation and amortization 232,078 322,269
Operating expenses 541,168 787,830
--------- ---------
1,250,954 1,550,687
--------- ---------
NET LOSS $ (491,908) $ (584,371)
========= =========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (432,536) $ (578,528)
========= =========
Net loss allocated to other partners $ (4,913) $ (5,843)
========= =========
Net loss suspended $ (54,452) $ -
========= =========
The variance in allowable loss from the Operating Partnerships for the nine
months ended September 30, 1995 and 1994 is mainly a result of the way the
Partnership accounts for its investment in Operating Partnerships. The
Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for an distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
36
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1995
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months ended September 30,
(Unaudited)
Series 3
--------------------------
1995 1994
Revenues ---- ----
Rental $ 4,506,456 $ 4,603,166
Interest and other 436,749 419,453
--------- ---------
4,943,205 5,022,619
--------- ---------
Expenses
Interest 2,076,673 2,099,073
Depreciation and amortization 1,891,318 1,998,707
Operating expenses 3,118,761 3,039,150
--------- ---------
7,086,752 7,136,930
--------- ---------
NET LOSS $(2,143,547) $(2,114,311)
========== ==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $(1,856,755) $(2,093,168)
========== ==========
Net loss allocated to other partners $ (21,437) $ (21,143)
========== ==========
Net loss suspended $ (265,356) $ -
========== ==========
The variance in allowable loss from the Operating Partnerships for the nine
months ended September 30, 1995 and 1994 is mainly a result of the way the
Partnership accounts for its investment in Operating Partnerships. The
Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
37
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1995
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)
Series 4
----------------------------
1995 1994
Revenues ---- ----
Rental $ 4,968,111 $ 5,236,812
Interest and other 333,562 351,170
---------- ----------
5,301,673 5,587,982
---------- ----------
Expenses
Interest 2,341,324 2,271,648
Depreciation and amortization 1,970,967 2,011,955
Operating expenses 3,263,517 3,399,148
---------- ----------
7,575,807 7,682,751
---------- ----------
NET LOSS $(2,274,135) $(2,094,769)
========== ==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $(1,662,861) $(2,073,820)
========== ==========
Net loss allocated to other partners $ (22,741) $ (20,949)
========== ==========
Net loss suspended $ (588,532) $ -
========== ==========
The variance in allowable loss from the Operating Partnerships for the nine
months ended September 30, 1995 and 1994 is mainly a result of the way the
Partnership accounts for its investment in Operating Partnerships. The
Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
38
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1995
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)
Series 5
--------------------------
1995 1994
Revenues ---- ----
Rental $ 391,683 $ 456,527
Interest and other 42,895 40,020
------- --------
434,578 496,547
------- --------
Expenses
Interest 161,403 259,321
Depreciation and amortization 162,977 277,374
Operating expenses 318,715 396,402
------- --------
643,095 933,097
------- --------
NET LOSS $(208,517) $(436,550)
======== ========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $(206,433) $(432,184)
======== ========
Net loss allocated to other partners $ (2,084) $ (4,366)
======== ========
39
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1995
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)
Series 6
--------------------------
1995 1994
Revenues ---- ----
Rental $3,098,528 $2,905,047
Interest and other 202,493 190,976
--------- ---------
3,301,021 3,096,023
--------- ---------
Expenses
Interest 1,037,504 1,004,199
Depreciation and amortization 956,423 1,011,599
Operating expenses 1,818,491 1,566,554
--------- ---------
3,812,418 3,582,352
--------- ---------
NET LOSS $ (511,397) $ (486,329)
========= =========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (492,651) $ (481,466)
========= =========
Net loss allocated to other partners $ (5,114) $ (4,863)
========= =========
Net loss suspended $ (13,632) $ -
========= =========
The variance in allowable loss from the Operating Partnerships for the nine
months ended September 30, 1995 and 1994 is mainly a result of the way the
Partnership accounts for its investment in Operating Partnerships. The
Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
40
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1995
(Unaudited)
NOTE E - TAXABLE LOSS
The Partnership's taxable loss for the fiscal year ended March
31, 1996 is expected to differ from its loss for financial reporting
purposes primarily due to accounting differences in depreciation incurred by
the Operating Partnerships. No provision or benefit for income taxes has been
included in these financial statements since taxable income or loss passes
through to, and is reportable by, the partners and assignees individually.
41
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity
- ---------
The Partnership's primary source of funds was the proceeds of its
Public Offering. Other sources of liquidity include (i) interest earned on
working capital reserves, and (ii) cash distributions from the Operating
Partnerships in which the Partnership has invested. These sources of
liquidity are available to meet the obligations of the Partnership. The
Partnership is currently accruing the annual asset management fee. Pursuant
to the Partnership Agreement, such liabilities will be deferred until the
Partnership receives sales or refinancing proceeds from Operating
Partnerships, which will be used to satisfy such liabilities. The Partnership
anticipates that there will be sufficient cash to meet future third party
obligations.
Capital Resources
- -----------------
The Partnership offered BACs in a Public Offering declared effective by
the Securities and Exchange Commission on August 29, 1988. The Partnership
received and accepted subscriptions for $97,746,940 representing 9,800,600
BACs from investors admitted as BAC Holders in Series 1 through Series 6 of
the Partnership. Offers and sales of BACs in Series 1 through Series 6 of the
Partnership were completed and the last of the BACs in Series 6 were issued by
the Partnership on September 29, 1989. At December 31, 1995 and 1994 the
Partnership had limited partnership equity interests in 105 Operating
Partnerships.
Series 1.
--------- The Partnership received and accepted subscriptions for
$12,999,000, representing 1,299,900 BACs from investors admitted as BAC
Holders in Series 1. Offers and sales of BACs in Series 1 were completed and
the last of the BACs in Series 1 were issued on December 14, 1988.
As of December 31, 1995, the net proceeds from the offer and sale of BACs
in Series 1 had been used to invest in a total of 19 Operating Partnerships in
an aggregate amount of $9,069,266, and the Partnership had completed payment
of all its capital contributions. Series 1 net offering proceeds in the
amount of $52,166 remains in Working Capital Reserves.
Series 2.
--------- The Partnership received and accepted subscriptions for
$8,303,000, representing 830,000 BACs from investors admitted as BAC Holders
in Series 2. Proceeds from the sale of BACs in Series 2 were invested in
Operating Partnerships owning apartment complexes located in California only,
which generate both California and Federal Housing Tax Credits. Offers and
sales of BACs in Series 2 were completed and the last of the BACs in Series 2
were issued by the Partnership on March 30, 1989.
As of December 31, 1995, the net proceeds from the offer and sale of BACs
in Series 2 had been used to invest in a total of eight Operating Partnerships
in an aggregate amount of $6,411,018, and the Partnership had completed
payment of all its capital contributions. Series 2 net offering proceeds in
he amount of $4,041 remains in Working Capital Reserves.
42
<PAGE>
Series 3.
--------- The Partnership received and accepted subscriptions for
$28,822,000, representing 2,882,200 BACs from investors admitted as BAC
Holders in Series 3. Offers and sales of BACs in Series 3 were completed and
the last of the BACs in Series 3 were issued by the Partnership on March 14,
1989.
As of December 31, 1995, the net proceeds from the offer and sale of BACs
in Series 3 had been used to invest in a total of 33 Operating Partnerships in
an aggregate amount of $20,858,886 and the Partnership had completed payment
of all its capital contributions. Series 3 net offering proceeds in the
amount of $5,475 remains in Working Capital Reserves.
Series 4.
--------- The Partnership received and accepted subscriptions for
$29,788,160, representing 2,995,300 BACs from investors admitted as BAC
Holders in Series 4. Offers and sales of BACs in Series 4 were completed and
the last of the BACs in Series 4 were issued by the Partnership on July 7,
1989.
As of December 31, 1995 the net proceeds from the offer and sale of BACs
in Series 4 had been committed to invest in a total of 25 Operating
Partnerships in an aggregate amount of $21,868,519, and the Partnership had
completed payment of all its capital contributions. Series 4 net offering
proceeds in the amount of $25,757 remains in Working Capital Reserves.
Series 5.
--------- The Partnership received and accepted subscriptions for
$4,899,000, representing 489,900 from investors admitted as BAC Holders in
Series 5. Offers and sales of BACs in Series 5 were completed and the last of
the BACs in Series 5 were issued by the Partnership on August 22, 1989.
Proceeds from the sale of BACs in Series 5 were invested in Operating
Partnerships owning apartment complexes located in California only, which
generate both California and Federal Housing Tax Credits. Offers and sales of
BACs in Series 5 were completed and the last of the BACs in Series 5 were
issued by the Partnership on August 22, 1989.
As of December 31, 1995, the net proceeds from the offer and sale of BACs
in Series 5 had been used to invest in a total of five Operating Partnerships
in an aggregate amount of $3,431,044, and the Partnership had completed
payment of all installments of its capital contributions. Series 5 net
offering proceeds in the amount of $157,665 remains in Working Capital
Reserves.
Series 6.
--------- The Partnership received and accepted subscriptions for
$12,935,780, representing 1,303,000 BACs from investors admitted as BAC
Holders in Series 6. Offers and sales of BACs in Series 6 were completed and
the last of the BACs in Series 6 were issued on September 29, 1989.
As of December 31, 1995 the net proceeds from the offer and sale of BACs
in Series 6 had been used to invest in a total of 15 Operating Partnerships in
an aggregate amount of $9,359,053, and the Partnership had completed payment
of all its capital contributions. Series 6 net offering proceeds in the
amount of $33,966 remains in Working Capital Reserves.
43
<PAGE>
Results of Operations
- ---------------------
As of December 31, 1995 and 1994 the Partnership held limited
partnership interests in 105 Operating Partnerships. In each instance the
Apartment Complex owned by the applicable Operating Partnership is
eligible for the Federal Housing Tax Credit. Occupancy of a unit in each
Apartment Complex which initially complied with the Minimum Set-Aside Test
(i.e., occupancy by tenants with incomes equal to no more than a certain
percentage of area median income) and the Rent Restriction Test(i.e., gross
rent charged tenants does not exceed 30% of the applicable income standards)
is referred to hereinafter as "Qualified Occupancy." Each of the Operating
Partnerships and each of the respective Apartment Complexes are described more
fully in the Prospectus or applicable report on Form 8-K. The General Partner
believes that there is adequate casualty insurance on the properties.
The Partnership incurs an annual partnership management fee to the General
Partner and/or its affiliates in an amount equal to 0.375% of the aggregate
cost of the Apartment Complexes owned by the Operating Partnerships, less the
amount of certain partnership management and reporting fees paid or payable by
the Operating Partnerships. The annual partnership management fee is
currently being accrued. It is anticipated that all outstanding fees
will be repaid from the sale or refinancing proceeds. The annual partnership
management fee incurred for the quarters ended December 31, 1995 and 1994
were $209,831 and $236,162, respectively. This amount is anticipated to be
lower in subsequent fiscal years as more of the Operating Partnerships begin
to accrue and pay annual asset management fees and reporting fees.
The Partnership's investment objectives do not include receipt of
significant cash distributions from the Operating Partnerships in which it has
invested. The Partnership's investments in Operating Partnerships have been
made principally with a view towards realization of Federal Housing Tax
Credits for allocation to its partners and BAC holders. The Results of
Operations reported herein are interim period estimates that may not
necessarily be indicative of final year end results.
Series 1.
--------- As of December 31, 1995 and 1994, the average Qualified
Occupancy for the series was 99.4% and 99.2%, respectively. The series had a
total of 19 properties at December 31, 1995. Out of the total, 17 were at
100% Qualified Occupancy.
For the nine months being reported, the series reflects a net loss from
Operating Partnerships of $1,681,995. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect a net loss of $243,811.
Substantially all of the net loss is attributable to accrued mortgage interest
not payable currently by Genesee Commons Associates, Kingston Property
Associates, and Unity Park Associates. The mortgages owed by these Operating
Partnerships are held by a quasi-governmental state agency. The mortgages
provide for the partial payment of interest based on cash flow from
operations. Any unpaid balance is being accrued and will be paid from
future cash flow, or at maturity. The General Partners feel that continual
interest accruals could adversely affect the residual value of these three
properties.
44
<PAGE>
During 1995, Unity Park Associates and Genesee Commons Associates
secured approximately $1 million of additional funds for structural repairs
and upgrades which the General Partners feel will enhance operations and be
incorporated into the current loan balance. The Operating general partner and
the General Partner are reviewing further steps that can be taken to improve
operations and increase residual value thus minimizing any potential long-term
negative impact.
Series 2.
--------- As of December 31, 1995 and 1994, the average Qualified
Occupancy for the series was 99.8% and 97.5%, respectively. The series had a
total of eight properties at December 31, 1995, seven of which were at 100%
Qualified Occupancy.
For the nine months being reported the series reflects a net loss
from the Operating Partnerships of $491,908. When adjusted for depreciation,
which is a non-cash item, the Operating Partnerships reflect a net loss of
$259,829.
Annadale Housing Partners has reported net losses due to operational
issues associated with the property. The partnership has begun to stablize
since the completion of rehabilitation and the emergence from bankruptcy.
Occupancy has steadily improved and the Operating General Partner, Annadale
Housing Corporation, anticipates full stabilization by the second quarter of
1996.
Series 3.
--------- As of December 31, 1995 and 1994, the average Qualified
Occupancy for the series was 99.6% and 99.8%, respectively. The series had a
total of 33 properties at December 31, 1995, of which 31 were at 100%
Qualified Occupancy.
For the nine months being reported series reflects a net loss from the
Operating Partnerships of $2,143,547. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect a net loss of $252,229.
The General Partner is closely monitoring the operations of Hidden Cove,
Lincoln Hotel Associates, and California Investors VI in an effort to improve
the overall results of operations of the series. Hidden Cove Associates, which
had been experiencing fluctuating vacancies, is stabilizing through effective
tenant screening and management.
Lincoln Hotel Associates is currently negotiating debt restructure in
order to improve future operating results. The original Operating General
Partners have been removed and replaced by an Operating General Partner who is
not affiliated with the original Operating General Partners.
California Investors VI reached an agreement in September of 1995 with its
first mortgagor to restructure its mortgage with a reduced interest rate and a
30 year amortization period. A new management company took over at that time
and addressed occupancy fluctuation problems. Under the new management
company, occupancy initially dropped off as problem tenants were evicted.
45<PAGE>
The average physical occupancy for the fourth quarter of 1995 was 93%.
Series 4.
--------- As of December 31, 1995 and 1994, the average Qualified
Occupancy for the series was 100% and 99.9%, respectively. The series had a
total of 25 properties at December 31, 1995, all of which were at 100%
Qualified Occupancy.
For the nine months being reported series reflects a net loss from
the Operating Partnerships of $2,274,135. When adjusted for depreciation,
which is a non-cash item, the Operating Partnerships reflect a net loss of
$303,168.
Unity Park Associates reflects a net loss which is attributable to accrued
mortgage interest which is not payable currently under the terms of its
mortgage. The mortgage owed by this Operating Partnership is held by a
quasi-governmental state agency. The mortgage provides for the partial
payment of interest based on cash flow from operations. Any unpaid balance is
being accrued and will be paid from future cash flow, or at maturity. The
General Partner feels that continual interest accruals could adversely affect
the residual value of the property. During 1995, Unity Park Associates
secured additional funds for structural repairs and upgrades which the
General Partner feels will enhance operations and be incorporated into the
current loan balance. The Operating General Partners and the General Partner
are reviewing further steps that can be taken to improve operations and
increase residual value thus minimizing any potential long-term negative
impact. The Operating General Partners have funded the majority of the
balance of the net loss.
In October of 1995, the General Partner discovered that the Operating
General Partner of Van Dyck Estates XVI had collateralized the property in
violation of the partnership agreement. Though this property maintains 100%
occupancy, continues to operate profitably, and generates tax credits in line
with the Partnership's projections, an unaffiliated lending institution has
initiated foreclosure proceedings. The General Partner and their counsel feel
that the institution will not prevail. The General Partner has removed the
Operating General Partner and his affiliated management agent, and is moving
to protect the Partnership's limited partnership interest. The partnership is
in arrears on real estate taxes and the new Operating General Partner is in
the process of arranging a payment plan.
Series 5.
--------- As of December 31, 1995 and 1994, the average Qualified
Occupancy for the series was 99.6% and 100%, respectively. The series had a
total of five properties at December 31, 1995, four of which were at 100%
Qualified Occupancy.
For the nine months being reported the series reflects a net loss
from the Operating Partnerships of $208,517. When adjusted for depreciation,
which is a non-cash item, the Operating Partnerships reflect a net loss of
$45,540.
Annadale Housing Partners has reported net losses due to operational
issues associated with the property. The partnership has begun to stabilize
since the completion of rehabilitation and the emergence from bankruptcy.
Occupancy has steadily improved and the Operating General Partner, Annadale
Housing Corporation, anticipates full stabilization by the second quarter of
1996.
46
Series 6.
--------- As of December 31, 1995 and 1994, the average Qualified
Occupancy for the series was 99.5% for both years. The series had a
total of 15 properties at December 31, 1995, of which 14 were at 100%
Qualified Occupancy.
For the nine months being reported the series reflects a net loss from the
Operating Partnerships of $511,397. When adjusted for depreciation, which is
a non-cash item, the Operating Partnerships reflect positive operations of
$445,026.
47
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
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
(a) Exhibits
(b) Reports on Form 8-K
There were no reports on Form 8-K filed during the period
covered by this report.
48
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
BOSTON CAPITAL TAX CREDIT
FUND LIMITED PARTNERSHIP
By: Boston Capital Associates Limited
Partnership, General Partner
By: C&M Associates, d/b/a
Boston Capital Associates
Date: February 14, 1996 By: /s/JOHN P. MANNING
---------------------------
John P. Manning, Partner
Partner & Principal Financial
Officer
49
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
BOSTON CAPITAL TAX CREDIT
FUND LIMITED PARTNERSHIP
By: Boston Capital Associates Limited
Partnership
By: C&M Associates, d/b/a
Boston Capital Associates
Date: February 14, 1996 By:
------------------------------
John P. Manning, Partner
Partner & Principal Financial
Officer
50
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<PERIOD-END> DEC-31-1995
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