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 June 30, 1996
------------------
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 JUNE 30, 1996
-----------------------------------------------
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
June 30, March 31,
1996 1996
(Unaudited) (Audited)
------------ ------------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $25,947,528 $27,395,600
OTHER ASSETS
Cash and cash equivalents 284,558 280,931
Other assets 550,417 518,065
---------- ----------
$26,782,503 $28,194,596
========== ==========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 3,992,791 $ 3,696,067
---------- ----------
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 23,411,727 25,103,457
outstanding
General Partner (622,015) (604,928)
---------- ----------
22,789,712 24,498,529
---------- ----------
$26,782,503 $28,194,596
========== ==========
The accompanying notes are an integral part of these statements.
1<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 1
----------------------------
June 30, March 31,
1996 1996
(Unaudited) (Audited)
----------- ---------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 280,394 $ 378,057
OTHER ASSETS
Cash and cash equivalents 50,738 52,334
Other assets 54,303 54,303
-------- --------
$ 385,435 $ 484,694
======== ========
LIABILITIES
Accounts payable and accrued
expenses (Note C) $ 978,891 $ 929,214
-------- --------
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 (474,298) (326,851)
outstanding
General Partner (119,158) (117,669)
-------- --------
(593,456) (444,520)
-------- --------
$ 385,435 $ 484,694
======== ========
The accompanying notes are an integral part of these statements.
2<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 2
----------------------------
June 30, March 31,
1996 1996
ASSETS (Unaudited) (Audited)
----------- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $2,274,970 $2,445,164
OTHER ASSETS
Cash and cash equivalents 2,320 1,262
Other assets 360,285 360,285
--------- ---------
$2,637,575 $2,806,711
========= =========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 233,273 $ 213,489
--------- ---------
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 2,449,602 2,636,633
General Partner (45,300) (43,411)
--------- ---------
2,404,302 2,593,222
--------- ---------
$2,637,575 $2,806,711
========= =========
The accompanying notes are an integral part of these statements.
3 <PAGE>
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 3
----------------------------
June 30, March 31,
1996 1996
ASSETS (Unaudited) (Audited)
----------- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $7,039,015 $7,500,960
OTHER ASSETS
Cash and cash equivalents 6,801 5,460
Other assets 41,861 41,861
--------- ---------
$7,087,677 $7,548,281
========= =========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $1,102,915 $1,027,573
--------- ---------
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 6,176,828 6,707,415
General Partner (192,066) (186,707)
--------- ---------
5,984,762 6,520,708
--------- ---------
$7,087,677 $7,548,281
========= =========
The accompanying notes are an integral part of these statements.
4 <PAGE>
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 4
----------------------------
June 30, March 31,
1996 1996
(Unaudited) (Audited)
------------ ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $9,345,679 $ 9,933,715
OTHER ASSETS
Cash and cash equivalents 22,371 25,928
Other assets 60,855 28,503
---------- ----------
$ 9,428,905 $ 9,988,146
========== ==========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 888,421 $ 788,069
---------- ----------
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 8,715,184 9,368,181
General Partner (174,700) (168,104)
---------- ----------
8,540,484 9,200,077
---------- ----------
$ 9,428,905 $ 9,988,146
========== ==========
The accompanying notes are an integral part of these statements.
5 <PAGE>
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 5
----------------------------
June 30, March 31,
1996 1996
(Unaudited) (Audited)
------------ ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $1,395,899 $1,422,271
OTHER ASSETS
Cash and cash equivalents 157,349 156,816
Other assets 33,113 33,113
--------- ---------
$1,586,361 $1,612,200
========= =========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 40,234 $ 28,369
--------- ---------
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 1,572,416 1,609,743
General Partner (26,289) (25,912)
--------- ---------
1,546,127 1,583,831
--------- ---------
$1,586,361 $1,612,200
========= =========
The accompanying notes are an integral part of these statements.
6 <PAGE>
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 6
----------------------------
June 30, March 31,
1996 1996
(Unaudited) (Audited)
------------ ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $5,611,571 $5,715,433
OTHER ASSETS
Cash and cash equivalents 44,979 39,131
Other assets - -
--------- ---------
$5,656,550 $5,754,564
========= =========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 749,057 $ 709,353
--------- ---------
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 4,971,995 5,108,336
General Partner (64,502) (63,125)
--------- ---------
4,907,493 5,045,211
--------- ---------
$5,656,550 $5,754,564
========= =========
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 June 30,
(Unaudited)
1996 1995
---- ----
Income
Interest income $ 1,980 $ 2,654
Miscellaneous income 20 -
---------- ----------
2,000 2,654
---------- ----------
Share of loss from Operating
Partnerships (Note D) (1,445,413) (1,981,627)
---------- ----------
Expenses
Amortization - -
Partnership management fees 223,944 211,229
General and administrative expenses 41,460 21,447
---------- ----------
265,404 232,676
---------- ----------
NET LOSS $(1,708,817) $(2,211,649)
========== ==========
Net loss allocated to assignees $(1,691,729) $(2,189,532)
========== ==========
Net loss allocated to general partner $ (17,088) $ (22,117)
========== ==========
Net loss per BAC $ (.90) $ (1.21)
========== ==========
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 June 30,
(Unaudited)
SERIES 1
-----------------------
1996 1995
---- ----
Income
Interest income $ 367 $ 454
Miscellaneous income 20 -
-------- --------
387 454
-------- --------
Share of loss from Operating
Partnerships (Note D) (97,663) (118,505)
-------- --------
Expenses
Amortization - -
Partnership management fees 44,476 45,537
General and administrative expenses 7,184 2,462
-------- --------
51,660 47,999
-------- --------
NET LOSS $(148,936) $(166,050)
======== ========
Net loss allocated to assignees $(147,447) $(164,390)
======== ========
Net loss allocated to general partner $ (1,489) $ (1,660)
======== ========
Net loss per BAC $ (.11) $ (.12)
======== ========
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 June 30,
(Unaudited)
SERIES 2
----------------------
1996 1995
---- ----
Income
Interest income $ 9 147
Miscellaneous income - -
-------- --------
9 147
-------- --------
Share of loss from Operating
Partnerships (Note D) (170,192) (190,927)
-------- --------
Expenses
Amortization - -
Partnership management fees 13,946 16,341
General and administrative expenses 4,791 2,931
-------- --------
18,737 19,272
-------- --------
NET LOSS $(188,920) $(210,052)
======== ========
Net loss allocated to assignees $(187,031) $(207,951)
======== ========
Net loss allocated to general partner $ (1,889) $ (2,101)
======== ========
Net loss per BAC $ (.22) $ (.25)
======== ========
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 June 30,
(Unaudited)
SERIES 3
----------------------
1996 1995
---- ----
Income
Interest income $ 37 $ 157
Miscellaneous income - -
-------- --------
37 157
-------- --------
Share of loss from Operating
Partnerships (Note D) (459,288) (925,723)
-------- --------
Expenses
Amortization - -
Partnership management fees 65,697 65,697
General and administrative expenses 10,998 5,704
-------- --------
76,695 71,401
-------- --------
NET LOSS $(535,946) $(996,967)
======== ========
Net loss allocated to assignees $(530,587) $(986,997)
======== ========
Net loss allocated to general partner $ (5,359) $ (9,970)
======== ========
Net loss per BAC $ (.18) $ (.34)
======== ========
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 June 30,
(Unaudited)
SERIES 4
----------------------
1996 1995
---- ----
Income
Interest income $ 181 $ 383
Miscellaneous income - -
-------- --------
181 383
-------- --------
Share of loss from Operating
Partnerships (Note D) (588,036) (483,169)
-------- --------
Expenses
Amortization - -
Partnership management fees 62,222 62,721
General and administrative expenses 9,516 5,305
-------- --------
71,738 68,026
-------- --------
NET LOSS $(659,593) $(550,812)
======== ========
Net loss allocated to assignees $(652,997) $(545,304)
======== ========
Net loss allocated to general partner $ (6,596) $ (5,508)
======== ========
Net loss per BAC $ (.22) $ (.18)
======== ========
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 June 30,
(Unaudited)
SERIES 5
----------------------
1996 1995
---- ----
Income
Interest income $ 1,107 $ 1,293
Miscellaneous income - -
-------- --------
1,107 1,293
-------- --------
Share of loss from Operating
Partnerships (Note D) (26,372) (68,719)
-------- --------
Expenses
Amortization - -
Partnership management fees 8,908 9,864
General and administrative expenses 3,531 2,621
-------- --------
12,439 12,485
-------- --------
NET LOSS $ (37,704) $ (79,911)
======== ========
Net loss allocated to assignees $ (37,327) $ (79,112)
======== ========
Net loss allocated to general partner $ (377) $ (799)
======== ========
Net loss per BAC $ (.07) $ (.16)
======== ========
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 June 30,
(Unaudited)
SERIES 6
----------------------
1996 1995
---- ----
Income
Interest income $ 279 $ 220
Miscellaneous income - -
-------- --------
279 220
-------- --------
Share of loss from Operating
Partnerships (Note D) (103,862) (194,584)
-------- --------
Expenses
Amortization - -
Partnership management fees 28,695 11,069
General and administrative expenses 5,440 2,424
-------- --------
34,135 13,493
-------- --------
NET LOSS $(137,718) $(207,857)
======== ========
Net loss allocated to assignees $(136,341) $(205,778)
======== ========
Net loss allocated to general partner $ (1,377) $ (2,079)
======== ========
Net loss per BAC $ (.10) $ (.16)
======== ========
The accompanying notes are an integral part of these statements.
14 <PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Three Months Ended June 30, 1996
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Partners' capital (deficit),
April 1, 1996 $25,103,457 $(604,928) $24,498,529
Net loss (1,691,730) (17,087) (1,708,817)
---------- -------- ----------
Partners' capital (deficit),
June 30, 1996 $23,411,727 $(622,015) $22,789,712
========== ======== ==========
The accompanying notes are an integral part of these statements.
15<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Three Months Ended June 30, 1996
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Series 1
- --------
Partners' capital (deficit),
April 1, 1996 $(326,851) $(117,669) $(444,520)
Net loss (147,447) (1,489) (148,936)
-------- -------- --------
Partners' capital (deficit),
June 30, 1996 $(474,298) $(119,158) $(593,456)
======== ======== ========
Series 2
- --------
Partners' capital (deficit),
April 1, 1996 $2,636,633 $(43,411) $2,593,222
Net loss (187,031) (1,889) (188,820)
--------- ------- ---------
Partners' capital (deficit),
June 30, 1996 $2,449,602 $(45,300) $2,404,302
========= ======= =========
Series 3
- --------
Partners' capital (deficit),
April 1, 1996 $ 6,707,415 $(186,707) $ 6,520,708
Net loss (530,587) (5,359) (535,946)
---------- -------- ----------
Partners' capital (deficit),
June 30, 1996 $ 6,176,828 $(192,066) $ 5,984,762
========== ======== ==========
The accompanying notes are an integral part of these statements.
16<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Three Months Ended June 30, 1996
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Series 4
- --------
Partners' capital (deficit),
April 1, 1996 $ 9,368,181 $(168,104) $ 9,200,077
Net loss (652,997) (6,596) (659,593)
---------- -------- ----------
Partners' capital (deficit),
June 30, 1996 $ 8,715,184 $(174,700) $ 8,540,484
========== ======== ==========
Series 5
- --------
Partners' capital (deficit),
April 1, 1996 $1,609,743 $(25,912) $1,583,831
Net loss (37,327) (377) (37,704)
--------- ------- ---------
Partners' capital (deficit),
June 30, 1996 $1,572,416 $(26,289) $1,546,127
========= ======= =========
Series 6
- --------
Partners' capital (deficit),
April 1, 1996 $5,108,336 $(63,125) $5,045,211
Net loss (136,341) (1,377) (137,718)
--------- -------- --------
Partners' capital (deficit),
June 30, 1996 $4,971,995 $(64,502) $4,907,493
========= ======= =========
The accompanying notes are an integral part of these statements.
17<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Three Months Ended June 30, 1996
(Unaudited)
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(1,708,817) $(2,211,649)
Adjustments
Distributions from Operating
Partnerships 2,657 1,543
Amortization - -
Share of loss from Operating
Partnerships 1,445,413 1,981,627
Changes in assets and liabilities
Increase (Decrease) in accounts
payable and accrued expenses 296,726 241,003
Decrease (Increase) in other
assets (32,352) (39,853)
---------- ----------
Net cash used in operating
activities 3,627 (27,329)
---------- ----------
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 3,627 (27,329)
Cash and cash equivalents, beginning 280,931 409,285
---------- ----------
Cash and cash equivalents, ending $ 284,558 $ 391,956
========== ==========
The accompanying notes are an integral part of these statements.
18<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Three Months Ended June 30, 1996
(Unaudited)
Series 1
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(148,936) $ (166,050)
Adjustments
Distributions from Operating
Partnerships - -
Amortization - -
Share of loss from Operating
Partnerships 97,663 118,505
Changes in assets and liabilities
Increase (Decrease) in accounts
payable and accrued expenses 49,677 85,437
Decrease (Increase) in other
assets - (38,853)
-------- ---------
Net cash provided by (used in)
operating activities (1,596) (961)
-------- ---------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (1,596) (961)
Cash and cash equivalents, beginning 52,334 67,610
-------- ---------
Cash and cash equivalents, ending $ 50,738 $ 66,649
======== =========
The accompanying notes are an integral part of these statements.
19<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Three Months Ended June 30, 1996
(Unaudited)
Series 2
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(188,920) $(210,052)
Adjustments
Distributions from Operating
Partnerships - -
Amortization - -
Share of loss from Operating
Partnerships 170,192 190,927
Changes in assets and liabilities
Increase (Decrease) in accounts
payable and accrued expenses 19,786 17,531
Decrease (Increase) in other
assets - -
-------- --------
Net cash provided by (used in)
operating activities 1,058 (1,594)
-------- --------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 1,058 (1,594)
Cash and cash equivalents, beginning 1,262 23,531
-------- --------
Cash and cash equivalents, ending $ 2,320 $ 21,937
======== ========
The accompanying notes are an integral part of these statements.
20<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 3
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $ (535,946) $ (996,967)
Adjustments
Distributions from Operating
Partnerships 2,657 1,543
Amortization - -
Share of loss from Operating
Partnerships 459,288 925,723
Changes in assets and liabilities
Increase (Decrease) in accounts
payable and accrued expenses 75,342 67,718
Decrease (Increase) in other
assets - -
--------- ---------
Net cash provided by (used in)
operating activities 1,341 (1,983)
--------- ---------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 1,341 (1,983)
Cash and cash equivalents, beginning 5,460 25,072
--------- ---------
Cash and cash equivalents, ending $ 6,801 $ 23,089
========= =========
The accompanying notes are an integral part of these statements.
21<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 4
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $ (659,593) $ (550,812)
Adjustments
Distributions from Operating
Partnerships - -
Amortization - -
Share of loss from Operating
Partnerships 588,036 483,169
Changes in assets and liabilities
Increase (Decrease) in accounts
payable and accrued expenses 100,352 62,941
Decrease (Increase) in other
assets (32,352) 2
--------- ---------
Net cash provided by (used in)
operating activities (3,557) (4,700)
--------- ---------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (3,557) (4,700)
Cash and cash equivalents, beginning 25,928 59,115
--------- ---------
Cash and cash equivalents, ending $ 22,371 $ 54,415
========= =========
The accompanying notes are an integral part of these statements.
22<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 5
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $ (37,704) $ (79,911)
Adjustments
Distributions from Operating
Partnerships - -
Amortization - -
Share of loss from Operating
Partnerships 26,372 68,719
Changes in assets and liabilities
Increase (Decrease) in accounts
payable and accrued expenses 11,865 (28,913)
Decrease (Increase) in other
assets - (1,002)
------- --------
Net cash provided by (used in)
operating activities 533 (41,107)
------- --------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 533 (41,107)
Cash and cash equivalents, beginning 156,816 208,686
------- --------
Cash and cash equivalents, ending $157,349 $ 167,579
======= ========
The accompanying notes are an integral part of these statements.
23<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 6
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(137,718) $(207,857)
Adjustments
Distributions from Operating
Partnerships - -
Amortization - -
Share of loss from Operating
Partnerships 103,862 194,584
Changes in assets and liabilities
Increase (Decrease) in accounts
payable and accrued expenses 39,704 36,289
Decrease (Increase) in other
assets - -
-------- --------
Net cash provided by (used in)
operating activities 5,848 23,016
-------- --------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 5,848 23,016
Cash and cash equivalents, beginning 39,131 25,271
-------- --------
Cash and cash equivalents, ending $ 44,979 $ 48,287
======== ========
The accompanying notes are an integral part of these statements.
24<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS
June 30, 1996
(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 June 30, 1996
and for the three 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
25<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1996
(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
June 30, 1996 and 1995 as follows:
1996 1995
----- -----
Series 1 $ 2,671 $ 2,763
Series 2 2,263 2,646
Series 3 4,345 3,585
Series 4 4,183 3,476
Series 5 1,478 1,439
Series 6 1,752 1,584
----- ------
$16,692 $15,493
====== ======
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 June 30, 1996 and 1995 are as follows:
1996 1995
---- ----
Series 1 $ 44,476 $ 45,537
Series 2 13,946 16,341
Series 3 65,697 65,697
Series 4 62,222 62,721
Series 5 8,908 9,864
Series 6 28,695 11,069
------- -------
$223,944 $211,229
======= =======
26<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS
At June 30, 1996 and 1995, 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 June 30, 1996 and 1995, 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 three months ended March 31, 1996.
The combined unaudited summarized statements of operations of the
Operating Partnerships for the three months ended March 31, 1996 and 1995
are as follows:
27<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months ended March 31,
(Unaudited)
Series 1
---------------------------
1996 1995
---- ----
Revenues
Rental $ 1,254,513 $ 1,157,747
Interest and other 39,759 38,264
--------- ---------
1,294,272 1,196,011
--------- ---------
Expenses
Interest 339,448 290,693
Depreciation and amortization 463,079 409,959
Operating expenses 1,141,063 1,038,206
--------- ---------
1,943,590 1,738,858
--------- ---------
NET LOSS $ (649,318) $ (542,847)
========== ==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (97,663) $ (118,505)
========== ==========
Net loss allocated to other partners $ (6,493) $ (5,428)
========== ==========
Net loss suspended $ (549,162) $ (418,914)
========== ==========
The variance in allowable loss from the Operating Partnerships for the three
months ended March 31, 1996 and 1995 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.
28<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months ended March 31,
(Unaudited)
Series 2
--------------------------
1996 1995
---- ----
Revenues
Rental $ 330,154 $ 232,717
Interest and other 14,650 8,128
--------- ---------
344,804 240,845
--------- ---------
Expenses
Interest 269,407 176,122
Depreciation and amortization 112,070 74,447
Operating expenses 208,330 183,131
--------- ---------
589,807 433,700
--------- ---------
NET LOSS $ (245,003) $ (192,855)
========= =========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (170,192) $ (190,927)
========= =========
Net loss allocated to other partners $ (2,450) $ (1,928)
========= =========
Net loss suspended $ (72,361) $ -
========= =========
The variance in allowable loss from the Operating Partnerships for the three
months ended March 31, 1996 and 1995 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.
29<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months ended March 31,
(Unaudited)
Series 3
--------------------------
1996 1995
Revenues ---- ----
Rental $ 1,361,769 $ 1,341,151
Interest and other 136,460 131,608
--------- ---------
1,498,229 1,472,759
--------- ---------
Expenses
Interest 725,152 848,647
Depreciation and amortization 591,215 564,903
Operating expenses 965,435 994,283
--------- ---------
2,281,802 2,407,833
--------- ---------
NET LOSS $ (783,573) $ (935,074)
========== ==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (459,288) $ (925,723)
========== ==========
Net loss allocated to other partners $ (7,836) $ (9,351)
========== ==========
Net loss suspended $ (316,449) $ -
========== ==========
The variance in allowable loss from the Operating Partnerships for the three
months ended March 31, 1996 and 1995 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.
30<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months ended March 31,
(Unaudited)
Series 4
----------------------------
1996 1995
Revenues ---- ----
Rental $ 1,325,435 $ 1,559,527
Interest and other 101,715 98,035
---------- ----------
1,427,150 1,657,562
---------- ----------
Expenses
Interest 599,463 685,719
Depreciation and amortization 594,579 591,742
Operating expenses 928,091 982,483
---------- ----------
2,122,133 2,259,944
---------- ----------
NET LOSS $ (694,984) $ (602,382)
========== ==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (588,036) $ (483,169)
========== ==========
Net loss allocated to other partners $ (6,949) $ (6,024)
========== ==========
Net loss suspended $ (99,999) $ (113,189)
========== ==========
The variance in allowable loss from the Operating Partnerships for the three
months ended March 31, 1996 and 1995 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.
31<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months ended March 31,
(Unaudited)
Series 5
--------------------------
1996 1995
Revenues ---- ----
Rental $ 130,835 $ 120,436
Interest and other 15,212 12,159
------- --------
146,047 132,595
------- --------
Expenses
Interest 37,175 48,785
Depreciation and amortization 39,401 54,326
Operating expenses 97,157 98,897
------- --------
173,733 202,008
------- --------
NET LOSS $ (27,686) $ (69,413)
======== ========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (26,372) $ (68,719)
======== ========
Net loss allocated to other partners $ (277) $ (694)
======== ========
32<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months ended March 31,
(Unaudited)
Series 6
--------------------------
1996 1995
Revenues ---- ----
Rental $1,043,415 $1,015,446
Interest and other 68,762 76,041
--------- ---------
1,112,177 1,091,487
--------- ---------
Expenses
Interest 334,974 350,400
Depreciation and amortization 300,892 311,787
Operating expenses 595,844 625,850
--------- ---------
1,231,710 1,288,037
--------- ---------
NET LOSS $ (119,533) $ (196,550)
========= =========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (103,862) $ (194,584)
========= =========
Net loss allocated to other partners $ (1,195) $ (1,966)
========= =========
Net loss suspended $ (14,496) $ -
========= =========
The variance in allowable loss from the Operating Partnerships for the three
months ended March 31, 1996 and 1995 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.
33<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1996
(Unaudited)
NOTE E - TAXABLE LOSS
The Partnership's taxable loss for the fiscal year ended March
31, 1997 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.
34<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 partnership management fee to
enable each series the ability to meet current and future third party
obligations. 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 June 30, 1996 and 1995 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 June 30, 1996, 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 $50,738 remains in Working Capital.
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.
35<PAGE>
As of June 30, 1996, 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
the amount of $2,320 remains in Working Capital.
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 June 30, 1996, 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 $6,801 remains in Working Capital.
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 June 30, 1996, 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 $22,371 remains in Working Capital.
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 June 30, 1996, 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 $157,349 remains in Working Capital.
36<PAGE>
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 June 30, 1996 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 $44,979 remains in Working Capital.
Results of Operations
- ---------------------
At June 30, 1996 and 1995 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 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 June 30, 1996 and 1995
were $223,944 and $211,229, respectively. This amount is anticipated to be
lower in subsequent fiscal years as more of the Operating Partnerships begin
to pay annual asset management fees and reporting fees to the series.
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 June 30, 1996 and 1995, the average Qualified
Occupancy for the series was 99.4% and 99.4%, respectively. The series had a
total of 19 properties at June 30, 1996. Out of the total, 17 were at
100% Qualified Occupancy.
37<PAGE>
For the three months being reported, the series reflects a net loss from
Operating Partnerships of $649,318. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect a net loss of $186,239.
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. In 1995, Unity Park Associates and Genesee Commons Associates
secured additional funds which were incorporated into the current loan
balance. These funds were used for structural repairs and upgrades which the
General Partner feels will increase the Operating Partnerships' future
residual values. The General Partners of both the Operating and Investment
Partnerships 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.
Series 2.
--------- As of June 30, 1996 and 1995, the average Qualified
Occupancy for the series was 99.8% and 99.4%, respectively. The series had a
total of eight properties at June 30, 1996, seven of which were at 100%
Qualified Occupancy.
For the three months being reported the series reflects a net loss
from the Operating Partnerships of $245,003. When adjusted for depreciation,
which is a non-cash item, the Operating Partnerships reflect a net loss of
$132,933.
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.
Series 3.
--------- As of June 30, 1996 and 1995, the average Qualified
Occupancy for the series was 99.8% and 99.6%, respectively. The series had a
total of 33 properties at June 30, 1996, of which 32 were at 100%
Qualified Occupancy.
For the three months being reported series reflects a net loss from the
Operating Partnerships of $783,573. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect a net loss of $192,358.
38<PAGE>
The General Partner is closely monitoring the operations of Hidden Cove
Associates and Lincoln Hotel Associates 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.
The operating general partner is in the process of replacing the management
agency and implementing a capital improvement program.
Lincoln Hotel Associates has negotiated a 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.
Series 4.
--------- As of June 30, 1996 and 1995, the average Qualified
Occupancy for the series was 100% and 99.9%, respectively. The series had a
total of 25 properties at June 30, 1996, all of which were at 100%
Qualified Occupancy.
For the three months being reported series reflects a net loss from
the Operating Partnerships of $694,984. When adjusted for depreciation,
which is a non-cash item, the Operating Partnerships reflect a net loss of
$100,405.
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. In 1995, Unity Park Associates secured
additional funds which were incorporated into the current loan balance. These
funds were used for structural repairs and upgrades which the General Partner
feels will increase the future residual value. The Operating General Partners
and the General Partner are reviewing further steps that can be taken to
improve operations and increase residual value to minimize 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
39<PAGE>
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 June 30, 1996 and 1995, the average Qualified
Occupancy for the series was 99.6% and 99%, respectively. The series had a
total of five properties at June 30, 1996, four of which were at 100%
Qualified Occupancy.
For the three months being reported the series reflects a net loss
from the Operating Partnerships of $27,686. When adjusted for depreciation,
which is a non-cash item, the Operating Partnerships reflect a positive
operations of $11,715.
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. Occupancy has steadily improved and
the Operating General Partner, Annadale Housing Corporation, anticipates full
stabilization by the second quarter of 1996.
Series 6.
--------- As of June 30, 1996 and 1995, the average Qualified Occupancy
for the series was 99.5% for both years. The series had a total of 15
properties at June 30, 1996, of which 14 were at 100% Qualified Occupancy.
For the three months being reported the series reflects a net loss from
the Operating Partnerships of $119,533. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$181,359.
40<PAGE>
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.
41<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: August 13, 1996 By: /s/JOHN P. MANNING
---------------------------
John P. Manning, Partner
Partner & Principal Financial
Officer
42<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
By: C&M Associates, d/b/a
Boston Capital Associates
Date: August 13, 1996 By:
------------------------------
John P. Manning, Partner
Partner & Principal Financial
Officer
42<PAGE>
<TABLE> <S> <C>
<ARTICLE> CT
<CIK> 0000835095
<NAME> BOSTON CAPITAL TAX CREDIT FUND LTD PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> APR-01-1996
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0
0
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