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 September 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 SEPTEMBER 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
September 30, March 31,
1996 1996
(Unaudited) (Audited)
------------ ------------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $24,830,465 $27,395,600
OTHER ASSETS
Cash and cash equivalents 235,296 280,931
Other assets 619,413 518,065
---------- ----------
$25,685,174 $28,194,596
========== ==========
LIABILITIES
Accounts payable - affiliates (Note C) $ 4,316,249 $ 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 22,005,148 25,103,457
outstanding
General Partner (636,223) (604,928)
---------- ----------
21,368,925 24,498,529
---------- ----------
$26,685,174 $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
----------------------------
September 30, March 31,
1996 1996
(Unaudited) (Audited)
----------- ---------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 199,295 $ 378,057
OTHER ASSETS
Cash and cash equivalents 36,114 52,334
Other assets 54,303 54,303
--------- --------
$ 289,712 $ 484,694
========= ========
LIABILITIES
Accounts payable - affiliates (Note C) $1,019,646 $ 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 (609,412) (326,851)
outstanding
General Partner (120,522) (117,669)
--------- --------
(729,934) (444,520)
--------- --------
$ 289,712 $ 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
----------------------------
September 30, March 31,
1996 1996
ASSETS (Unaudited) (Audited)
----------- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $2,237,687 $2,445,164
OTHER ASSETS
Cash and cash equivalents 5,506 1,262
Other assets 360,285 360,285
--------- ---------
$2,603,478 $2,806,711
========= =========
LIABILITIES
Accounts payable - affiliates (Note C) $ 264,663 $ 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 2,384,770 2,636,633
General Partner (45,955) (43,411)
--------- ---------
2,338,815 2,593,222
--------- ---------
$2,603,478 $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
----------------------------
September 30, March 31,
1996 1996
ASSETS (Unaudited) (Audited)
----------- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $6,570,192 $7,500,960
OTHER ASSETS
Cash and cash equivalents 2,436 5,460
Other assets 41,861 41,861
--------- ---------
$6,614,489 $7,548,281
========= =========
LIABILITIES
Accounts payable - affiliates (Note C) $1,182,489 $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 5,629,594 6,707,415
General Partner (197,594) (186,707)
--------- ---------
5,432,000 6,520,708
--------- ---------
$6,614,489 $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
----------------------------
September 30, March 31,
1996 1996
(Unaudited) (Audited)
------------ ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $8,939,061 $ 9,933,715
OTHER ASSETS
Cash and cash equivalents 13,844 25,928
Other assets 129,851 28,503
---------- ----------
$ 9,082,756 $ 9,988,146
========== ==========
LIABILITIES
Accounts payable - affiliates (Note C) $ 1,019,860 $ 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 8,242,372 9,368,181
General Partner (179,476) (168,104)
---------- ----------
8,062,896 9,200,077
---------- ----------
$ 9,082,756 $ 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
----------------------------
September 30, March 31,
1996 1996
(Unaudited) (Audited)
------------ ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $1,357,553 $1,422,271
OTHER ASSETS
Cash and cash equivalents 147,489 156,816
Other assets 33,113 33,113
--------- ---------
$1,538,155 $1,612,200
========= =========
LIABILITIES
Accounts payable - affiliates (Note C) $ 48,096 $ 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 1,516,909 1,609,743
General Partner (26,850) (25,912)
--------- ---------
1,490,059 1,583,831
--------- ---------
$1,538,155 $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
----------------------------
September 30, March 31,
1996 1996
(Unaudited) (Audited)
------------ ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $5,526,677 $5,715,433
OTHER ASSETS
Cash and cash equivalents 29,907 39,131
Other assets - -
--------- ---------
$5,556,584 $5,754,564
========= =========
LIABILITIES
Accounts payable - affiliates (Note C) $ 781,495 $ 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 4,840,915 5,108,336
General Partner (65,826) (63,125)
--------- ---------
4,775,089 5,045,211
--------- ---------
$5,556,584 $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 September 30,
(Unaudited)
1996 1995
---- ----
Income
Interest income $ 1,874 $ 2,291
Miscellaneous income 2,637 1,304
---------- ----------
4,511 3,595
---------- ----------
Share of loss from Operating
Partnerships (Note D) (1,105,022) (1,627,004)
---------- ----------
Expenses
Partnership management fees 231,176 226,833
General and administrative expenses 89,105 108,847
---------- ----------
320,281 335,680
---------- ----------
NET LOSS $(1,420,792) $(1,959,089)
========== ==========
Net loss allocated to assignees $(1,406,584) $(1,939,498)
========== ==========
Net loss allocated to general partner $ (14,208) $ (19,591)
========== ==========
Net loss per BAC $ (.71) $ (1.14)
========== ==========
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 September 30,
(Unaudited)
SERIES 1
-----------------------
1996 1995
---- ----
Income
Interest income $ 345 $ 330
Miscellaneous income 1,333 -
-------- --------
1,678 330
-------- --------
Share of loss from Operating
Partnerships (Note D) (81,099) (189,666)
-------- --------
Expenses
Partnership management fees 39,216 39,485
General and administrative expenses 17,842 21,516
-------- --------
57,058 61,001
-------- --------
NET LOSS $(136,479) $(250,337)
======== ========
Net loss allocated to assignees $(135,114) $(247,834)
======== ========
Net loss allocated to general partner $ (1,365) $ (2,503)
======== ========
Net loss per BAC $ (.10) $ (.19)
======== ========
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 September 30,
(Unaudited)
SERIES 2
----------------------
1996 1995
---- ----
Income
Interest income $ 6 81
Miscellaneous income - -
-------- --------
6 81
-------- --------
Share of loss from Operating
Partnerships (Note D) (37,286) (109,990)
-------- --------
Expenses
Partnership management fees 17,310 16,310
General and administrative expenses 10,898 14,689
-------- --------
28,208 30,999
-------- --------
NET LOSS $ (65,488) $(140,908)
======== ========
Net loss allocated to assignees $ (64,833) $(139,500)
======== ========
Net loss allocated to general partner $ (655) $ (1,408)
======== ========
Net loss per BAC $ (.08) $ (.17)
======== ========
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 September 30,
(Unaudited)
SERIES 3
----------------------
1996 1995
---- ----
Income
Interest income $ 31 $ 33
Miscellaneous income 1,304 1,304
-------- --------
1,335 1,337
-------- --------
Share of loss from Operating
Partnerships (Note D) (468,821) (565,553)
-------- --------
Expenses
Partnership management fees 65,497 65,127
General and administrative expenses 19,780 25,491
-------- --------
85,277 90,618
-------- --------
NET LOSS $(552,763) $(654,834)
======== ========
Net loss allocated to assignees $(547,235) $(648,286)
======== ========
Net loss allocated to general partner $ (5,528) $ (6,548)
======== ========
Net loss per BAC $ (.19) $ (.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 September 30,
(Unaudited)
SERIES 4
----------------------
1996 1995
---- ----
Income
Interest income $ 154 $ 251
Miscellaneous income - -
-------- --------
154 251
-------- --------
Share of loss from Operating
Partnerships (Note D) (394,574) (529,485)
-------- --------
Expenses
Partnership management fees 63,220 62,721
General and administrative expenses 19,948 21,992
-------- --------
83,168 84,713
-------- --------
NET LOSS $(477,588) $(613,947)
======== ========
Net loss allocated to assignees $(472,812) $(607,808)
======== ========
Net loss allocated to general partner $ (4,776) $ (6,139)
======== ========
Net loss per BAC $ (.16) $ (.20)
======== ========
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 September 30,
(Unaudited)
SERIES 5
----------------------
1996 1995
---- ----
Income
Interest income $ 1,058 $ 1,287
Miscellaneous income - -
-------- --------
1,058 1,287
-------- --------
Share of loss from Operating
Partnerships (Note D) (38,344) (83,093)
-------- --------
Expenses
Partnership management fees 9,864 8,864
General and administrative expenses 8,919 10,233
-------- --------
18,783 19,097
-------- --------
NET LOSS $ (56,069) $(100,903)
======== ========
Net loss allocated to assignees $ (55,508) $ (99,894)
======== ========
Net loss allocated to general partner $ (561) $ (1,009)
======== ========
Net loss per BAC $ (.11) $ (.20)
======== ========
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 September 30,
(Unaudited)
SERIES 6
----------------------
1996 1995
---- ----
Income
Interest income $ 280 $ 309
Miscellaneous income - -
-------- --------
280 309
-------- --------
Share of loss from Operating
Partnerships (Note D) (84,898) (149,217)
-------- --------
Expenses
Partnership management fees 36,069 34,326
General and administrative expenses 11,718 14,927
-------- --------
47,787 49,253
-------- --------
NET LOSS $(132,405) $(198,161)
======== ========
Net loss allocated to assignees $(131,081) $(196,179)
======== ========
Net loss allocated to general partner $ (1,324) $ (1,982)
======== ========
Net loss per BAC $ (.10) $ (.15)
======== ========
The accompanying notes are an integral part of these statements.
14 <PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
1996 1995
---- ----
Income
Interest income $ 3,853 $ 4,943
Miscellaneous income 2,657 1,304
---------- ----------
6,510 6,247
---------- ----------
Share of loss from Operating
Partnerships (Note D) (2,550,435) (3,608,631)
---------- ----------
Expenses
Partnership management fees 455,120 437,606
General and administrative expenses 130,559 130,750
---------- ----------
585,679 568,356
---------- ----------
NET LOSS $(3,129,604) $(4,170,740)
========== ==========
Net loss allocated to assignees $(3,098,308) $(4,129,032)
========== ==========
Net loss allocated to general partner $ (31,296) $ (41,708)
========== ==========
Net loss per BAC $ (1.66) $ (2.37)
========== ==========
The accompanying notes are an integral part of these statements.
15
<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 1
-----------------------
1996 1995
---- ----
Income
Interest income $ 712 $ 784
Miscellaneous income 1,353 -
-------- --------
2,065 784
-------- --------
Share of loss from Operating
Partnerships (Note D) (178,762) (308,171)
-------- --------
Expenses
Partnership management fees 83,692 84,701
General and administrative expenses 25,025 24,299
-------- --------
108,717 109,000
-------- --------
NET LOSS $(285,414) $(416,387)
======== ========
Net loss allocated to assignees $(282,560) $(412,223)
======== ========
Net loss allocated to general partner $ (2,854) $ (4,164)
======== ========
Net loss per BAC $ (.21) $ (.32)
======== ========
The accompanying notes are an integral part of these statements.
16<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 2
----------------------
1996 1995
---- ----
Income
Interest income $ 15 227
Miscellaneous income - -
-------- --------
15 227
-------- --------
Share of loss from Operating
Partnerships (Note D) (207,478) (300,917)
-------- --------
Expenses
Partnership management fees 31,256 32,516
General and administrative expenses 15,688 17,755
-------- --------
46,944 50,271
-------- --------
NET LOSS $(254,407) $(350,961)
======== ========
Net loss allocated to assignees $(251,863) $(347,451)
======== ========
Net loss allocated to general partner $ (2,544) $ (3,510)
======== ========
Net loss per BAC $ (.30) $ (.42)
======== ========
The accompanying notes are an integral part of these statements.
17 <PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 3
----------------------
1996 1995
---- ----
Income
Interest income $ 68 $ 190
Miscellaneous income 1,304 1,304
--------- ---------
1,372 1,494
--------- ---------
Share of loss from Operating
Partnerships (Note D) (928,109) (1,491,276)
--------- ---------
Expenses
Partnership management fees 131,194 130,824
General and administrative expenses 30,777 31,195
--------- ---------
161,971 162,019
--------- ---------
NET LOSS $(1,088,708) $(1,651,801)
========= =========
Net loss allocated to assignees $(1,077,821) $(1,635,283)
========= =========
Net loss allocated to general partner $ (10,887) $ (16,518)
========= =========
Net loss per BAC $ (.38) $ (.57)
========= =========
The accompanying notes are an integral part of these statements.
18 <PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 4
----------------------
1996 1995
---- ----
Income
Interest income $ 335 $ 634
Miscellaneous income - -
--------- ---------
335 634
--------- ---------
Share of loss from Operating
Partnerships (Note D) (982,610) (1,012,654)
--------- ---------
Expenses
Partnership management fees 125,442 125,442
General and administrative expenses 29,464 27,296
--------- ---------
154,906 152,738
--------- ---------
NET LOSS $(1,137,181) $(1,164,758)
========= =========
Net loss allocated to assignees $(1,125,809) $(1,153,110)
========= =========
Net loss allocated to general partner $ (11,372) $ (11,648)
========= =========
Net loss per BAC $ (.37) $ (.38)
======== =========
The accompanying notes are an integral part of these statements.
19 <PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 5
----------------------
1996 1995
---- ----
Income
Interest income $ 2,165 $ 2,579
Miscellaneous income - -
-------- --------
2,165 2,579
-------- --------
Share of loss from Operating
Partnerships (Note D) (64,716) (151,812)
-------- --------
Expenses
Partnership management fees 18,772 18,728
General and administrative expenses 12,449 12,855
-------- --------
31,221 31,583
-------- --------
NET LOSS $ (93,772) $(180,816)
======== ========
Net loss allocated to assignees $ (92,834) $(179,008)
======== ========
Net loss allocated to general partner $ (938) $ (1,808)
======== ========
Net loss per BAC $ (.19) $ (.37)
======== ========
The accompanying notes are an integral part of these statements.
20 <PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 6
----------------------
1996 1995
---- ----
Income
Interest income $ 558 $ 529
Miscellaneous income - -
-------- --------
558 529
-------- --------
Share of loss from Operating
Partnerships (Note D) (188,760) (343,801)
-------- --------
Expenses
Partnership management fees 64,764 45,395
General and administrative expenses 17,156 17,350
-------- --------
81,920 62,745
-------- --------
NET LOSS $(270,122) $(406,017)
======== ========
Net loss allocated to assignees $(267,421) $(401,957)
======== ========
Net loss allocated to general partner $ (2,701) $ (4,060)
======== ========
Net loss per BAC $ (.21) $ (.31)
======== ========
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
Six Months Ended September 30, 1996
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Partners' capital (deficit),
April 1, 1996 $25,103,457 $(604,928) $24,498,529
Net loss (3,098,308) (31,296) (3,129,604)
---------- -------- ----------
Partners' capital (deficit),
September 30, 1996 $22,005,149 $(636,224) $21,368,925
========== ======== ==========
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
Six Months Ended September 30, 1996
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Series 1
- --------
Partners' capital (deficit),
April 1, 1996 $(326,851) $(117,669) $(444,520)
Net loss (282,560) (2,854) (285,414)
-------- -------- --------
Partners' capital (deficit),
September 30, 1996 $(609,411) $(120,523) $(729,934)
======== ======== ========
Series 2
- --------
Partners' capital (deficit),
April 1, 1996 $2,636,633 $(43,411) $2,593,222
Net loss (251,863) (2,544) (254,407)
--------- ------- ---------
Partners' capital (deficit),
September 30, 1996 $2,384,770 $(45,955) $2,338,815
========= ======= =========
Series 3
- --------
Partners' capital (deficit),
April 1, 1996 $ 6,707,415 $(186,707) $ 6,520,708
Net loss (1,077,821) (10,887) (1,088,708)
---------- -------- ----------
Partners' capital (deficit),
September 30, 1996 $ 5,629,594 $(197,594) $ 5,432,000
========== ======== ==========
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
Six Months Ended September 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 (1,125,809) (11,372) (1,137,181)
---------- -------- ----------
Partners' capital (deficit),
September 30, 1996 $ 8,242,372 $(179,476) $ 8,062,896
========== ======== ==========
Series 5
- --------
Partners' capital (deficit),
April 1, 1996 $1,609,743 $(25,912) $1,583,831
Net loss (92,834) (938) (93,772)
--------- ------- ---------
Partners' capital (deficit),
September 30, 1996 $1,516,909 $(26,850) $1,490,059
========= ======= =========
Series 6
- --------
Partners' capital (deficit),
April 1, 1996 $5,108,336 $(63,125) $5,045,211
Net loss (267,421) (2,701) (270,122)
--------- -------- --------
Partners' capital (deficit),
September 30, 1996 $4,840,915 $(65,826) $4,775,089
========= ======= =========
The accompanying notes are an integral part of these statements.
24<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30, 1996
(Unaudited)
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(3,129,605) $(4,170,740)
Adjustments
Distributions from Operating
Partnerships 14,703 1,543
Share of loss from Operating
Partnerships 2,550,435 3,608,631
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 620,180 477,607
Decrease (Increase) in other
assets (101,348) (38,853)
---------- ----------
Net cash provided by (used in)
operating activities (45,635) (121,812)
---------- ----------
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS (45,635) (121,812)
Cash and cash equivalents, beginning 280,931 409,285
---------- ----------
Cash and cash equivalents, ending $ 235,296 $ 287,473
========== ==========
The accompanying notes are an integral part of these statements.
25<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30, 1996
(Unaudited)
Series 1
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(285,414) $ (416,387)
Adjustments
Distributions from Operating
Partnerships - -
Share of loss from Operating
Partnerships 178,762 308,171
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 90,432 130,431
Decrease (Increase) in other
assets - (38,853)
-------- ---------
Net cash provided by (used in)
operating activities (16,220) (16,638)
-------- ---------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (16,220) (16,638)
Cash and cash equivalents, beginning 52,334 67,610
-------- ---------
Cash and cash equivalents, ending $ 36,114 $ 50,972
======== =========
The accompanying notes are an integral part of these statements.
26<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30, 1996
(Unaudited)
Series 2
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(254,408) $(350,961)
Adjustments
Distributions from Operating
Partnerships - -
Share of loss from Operating
Partnerships 207,478 300,917
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 51,174 34,620
Decrease (Increase) in other
assets - -
-------- --------
Net cash provided by (used in)
operating activities 4,244 (15,424)
-------- --------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 4,244 (15,424)
Cash and cash equivalents, beginning 1,262 23,531
-------- --------
Cash and cash equivalents, ending $ 5,506 $ 8,107
======== ========
The accompanying notes are an integral part of these statements.
27<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 3
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(1,088,708) $(1,651,801)
Adjustments
Distributions from Operating
Partnerships 2,659 1,543
Share of loss from Operating
Partnerships 928,109 1,491,276
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 154,916 135,249
Decrease (Increase) in other
assets - -
--------- ---------
Net cash provided by (used in)
operating activities (3,024) (23,733)
--------- ---------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (3,024) (23,733)
Cash and cash equivalents, beginning 5,460 25,072
--------- ---------
Cash and cash equivalents, ending $ 2,436 $ 1,339
========= =========
The accompanying notes are an integral part of these statements.
28<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 4
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(1,137,181) $(1,164,758)
Adjustments
Distributions from Operating
Partnerships 12,044 -
Share of loss from Operating
Partnerships 982,610 1,012,654
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 231,791 125,442
Decrease (Increase) in other
assets (101,348) -
--------- ---------
Net cash provided by (used in)
operating activities (12,084) (26,662)
--------- ---------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (12,084) (26,662)
Cash and cash equivalents, beginning 25,928 59,115
--------- ---------
Cash and cash equivalents, ending $ 13,844 $ 32,453
========= =========
The accompanying notes are an integral part of these statements.
29<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 5
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $ (93,772) $(180,816)
Adjustments
Distributions from Operating
Partnerships - -
Share of loss from Operating
Partnerships 64,716 151,812
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 19,729 (20,271)
Decrease (Increase) in other
assets - -
------- --------
Net cash provided by (used in)
operating activities (9,327) (49,275)
------- --------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (9,327) (49,275)
Cash and cash equivalents, beginning 156,816 208,686
------- --------
Cash and cash equivalents, ending $147,489 $ 159,411
======= ========
The accompanying notes are an integral part of these statements.
30<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 6
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(270,122) $(406,017)
Adjustments
Distributions from Operating
Partnerships - -
Share of loss from Operating
Partnerships 188,760 343,801
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 72,138 72,136
Decrease (Increase) in other
assets - -
-------- --------
Net cash provided by (used in)
operating activities (9,224) 9,920
-------- --------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (9,224) 9,920
Cash and cash equivalents, beginning 39,131 25,271
-------- --------
Cash and cash equivalents, ending $ 29,907 $ 35,191
======== ========
The accompanying notes are an integral part of these statements.
31<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS
September 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 September 30,
1996 and for the six 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
September 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 Asset Management Limited Partnership (formerly Boston Capital
Communications Limited Partnership).
General and administrative expenses incurred by Boston Capital
Partners, Inc. and it's affiliates were charged to each series' operations for
the quarters ended September 30, 1996 and 1995 as follows:
1996 1995
----- -----
Series 1 $ 642 $ -
Series 2 - -
Series 3 - 461
Series 4 1,639 461
Series 5 975 461
Series 6 642 287
----- ------
$ 3,898 $ 1,670
====== ======
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 Asset Management Limited Partnership
(formerly Boston Capital Communications Limited Partnership). The partnership
management fee accrued for the quarters ended September 30, 1996 and 1995 are
as follows:
1996 1995
---- ----
Series 1 $ 45,216 $ 45,216
Series 2 17,310 17,310
Series 3 67,497 67,497
Series 4 62,721 62,721
Series 5 9,864 9,864
Series 6 36,069 36,069
------- -------
$238,677 $238,677
======= =======
Accounts payable - affiliates at September 30, 1996 and 1995 represents
accrued general and administrative expenses and partnership management fees,
and advances from an affiliate of the general partner, which are payable to
Boston Capital Partners, Inc., and Boston Capital Asset Management Limited
Partnership (formerly Boston Capital Communications Limited Partnership).
33<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1996
(Unaudited)
NOTE C - RELATED PARTY TRANSACTIONS (continued)
As of September 30, 1996, an affiliate of the general partner advanced a
total of $134,250 to the Partnership to pay certain operating expenses of some
of the series. Of this amount, $37,000 was advanced in the quarter ended
September 30, 1996 to Series 2, 3 and 4 in the amounts of $15,000, $17,000 and
$5,000, respectively. These advances are included in Accounts payable -
affiliates. These advances, and any additional advances, will be paid,
without interest, from available cash flow or the proceeds of sales or
refinancing of the Partnership's interests in Operating Partnerships.
As of September 30, 1996, an affiliate of the general partner funded
$115,859, interest free, to the Partnership (Series 4) so that it could make
two separate loans to the Operating Partnerships Van Dyck Estates and New
Grand Hotel in the amounts of $50,913 and $64,946, respectively. Of these
amounts, $68,996 was advanced in the quarter ended September 30, 1996. The
loans to Operating Partnership Van Dyck Estates are being made to fund
operating expenses of the partnership. The loan to Operating Partnership New
Grand Hotel enabled the partnership to refinance its mortgage at a more
favorable rate. These advances will be repaid to the Partnership by the
Operating Partnerships with surplus cash from operations. Subsequent to the
quarter ended September 30, 1996, New Grand Hotel paid the Partnership
$45,054, which was repaid to the affiliate in October 1996.
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS
At September 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 September 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 six months ended June 30, 1996.
The combined unaudited summarized statements of operations of the
Operating Partnerships for the six months ended June 30, 1996 and 1995
are as follows:
34<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
Series 1
---------------------------
1996 1995
---- ----
Revenues
Rental $ 2,493,647 $ 2,513,403
Interest and other 78,012 79,495
--------- ---------
2,571,659 2,592,898
--------- ---------
Expenses
Interest 608,051 602,410
Depreciation and amortization 902,849 921,371
Operating expenses 2,228,657 2,269,518
--------- ---------
3,739,557 3,793,299
--------- ---------
NET LOSS $(1,167,898) $(1,200,401)
========== ==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (178,762) $ (308,171)
========== ==========
Net loss allocated to other partners $ (11,679) $ (12,004)
========== ==========
Net loss suspended $ (977,457) $ (880,226)
========== ==========
The variance in allowable loss from the Operating Partnerships for the six
months ended June 30, 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.
35<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
Series 2
--------------------------
1996 1995
---- ----
Revenues
Rental $ 650,784 $ 496,780
Interest and other 30,544 19,661
--------- ---------
681,328 516,441
--------- ---------
Expenses
Interest 445,307 328,081
Depreciation and amortization 224,130 155,445
Operating expenses 437,647 388,546
--------- ---------
1,107,084 872,072
--------- ---------
NET LOSS $ (425,756) $ (355,631)
========= =========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (207,478) $ (300,917)
========= =========
Net loss allocated to other partners $ (4,258) $ (3,556)
========= =========
Net loss suspended $ (214,020) $ (51,158)
========= =========
The variance in allowable loss from the Operating Partnerships for the six
months ended June 30, 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.
36<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months ended June 30,
(Unaudited)
Series 3
--------------------------
1996 1995
Revenues ---- ----
Rental $ 2,816,091 $ 2,925,876
Interest and other 238,633 267,371
--------- ---------
3,054,724 3,193,247
--------- ---------
Expenses
Interest 1,450,305 1,461,603
Depreciation and amortization 1,203,092 1,269,825
Operating expenses 1,944,262 2,110,682
--------- ---------
4,597,659 4,842,110
--------- ---------
NET LOSS $(1,542,935) $(1,648,863)
========== ==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (928,109) $(1,491,276)
========== ==========
Net loss allocated to other partners $ (15,429) $ (16,489)
========== ==========
Net loss suspended $ (599,397) $ (141,098)
========== ==========
The variance in allowable loss from the Operating Partnerships for the six
months ended June 30, 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.
37<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
Series 4
----------------------------
1996 1995
Revenues ---- ----
Rental $ 2,765,942 $ 3,356,769
Interest and other 155,061 212,832
---------- ----------
2,921,003 3,569,601
---------- ----------
Expenses
Interest 1,232,939 1,493,005
Depreciation and amortization 1,174,352 1,306,084
Operating expenses 1,821,539 2,171,794
---------- ----------
4,228,830 4,970,883
---------- ----------
NET LOSS $(1,307,827) $(1,401,282)
========== ==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (982,610) $(1,012,654)
========== ==========
Net loss allocated to other partners $ (13,078) $ (14,013)
========== ==========
Net loss suspended $ (312,139) $ (374,615)
========== ==========
The variance in allowable loss from the Operating Partnerships for the six
months ended June 30, 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.
38<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
Series 5
--------------------------
1996 1995
Revenues ---- ----
Rental $ 288,308 $ 260,247
Interest and other 28,709 25,340
------- --------
317,017 285,587
------- --------
Expenses
Interest 80,534 104,059
Depreciation and amortization 96,277 108,651
Operating expenses 225,145 226,223
------- --------
401,956 438,933
------- --------
NET LOSS $ (84,939) $(153,346)
======== ========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (64,716) $(151,812)
======== ========
Net loss allocated to other partners $ (849) $ (1,534)
======== ========
Net loss suspended $ (19,374) $ -
======== ========
The variance in allowable loss from the Operating Partnerships for the six
months ended June 30, 1996 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.
39<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
Series 6
--------------------------
1996 1995
Revenues ---- ----
Rental $2,083,923 $2,059,852
Interest and other 121,826 147,236
--------- ---------
2,205,749 2,207,088
--------- ---------
Expenses
Interest 659,690 697,551
Depreciation and amortization 602,713 639,027
Operating expenses 1,164,720 1,227,932
--------- ---------
2,427,123 2,564,510
--------- ---------
NET LOSS $ (221,374) $ (357,422)
========= =========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (188,760) $ (343,801)
========= =========
Net loss allocated to other partners $ (2,214) $ (3,574)
========= =========
Net loss suspended $ (30,400) $ (10,047)
========= =========
The variance in allowable loss from the Operating Partnerships for the six
months ended June 30, 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.
40<PAGE>
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 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.
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 partnership management
fee. Partnership management fees accrued during the quarter ended September
30, 1996 were $238,677 and total partnership management fees accrued as of
September 30, 1996 were $4,058,704. 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.
An affiliate of the general partner has advanced $134,250 to the
Partnership to pay certain third party operating expenses. The amounts
advanced to four of the six series as are as follows: $40,000 to Series 1;
$15,000 to Series 2; $74,250 to Series 3; and $5,000 to Series 4. These and
any additional advances will be paid, without interest, from available cash
flow, reporting fees, or the proceeds of sales or refinancing of the
Partnership's interests in Operating Partnerships. The Partnership
anticipates that as the Operating Partnerships continue to mature, more cash
flow and reporting fees will be generated. Cash flow and reporting fees will
be added to the Partnership's working capital and will be available to meet
future third party obligation of the Partnership. The Partnership is
currently pursuing, and will continue to pursue, available cash flow and
reporting fees and anticipates that the amount collected will be sufficient to
cover third party operating expense.
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 September 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 September 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 $36,114 remains in Working Capital.
42
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 September 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 $5,506 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 September 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 $2,436 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 September 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 $13,844 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 September 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 $147,489 remains in Working Capital.
43<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 September 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 $29,907 remains in Working Capital.
Results of Operations
- ---------------------
At September 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 September 30, 1996 and 1995
were $207,130 and $226,833, 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 September 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 September 30, 1996. Out of the total, 17 were at
100% Qualified Occupancy.
44<PAGE>
For the six months being reported, the series reflects a net loss from
Operating Partnerships of $1,167,898. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect a net loss of $265,049.
Substantially all of the net loss is attributable to accrued mortgage interest
not payable currently by Kingston Property Associates, Genesee Commons
Associates, and Unity Park Associates. In 1995, Kingston Property Associates
received approval for a HUD loan. To date, significant capital improvements
have been completed using funds from this loan. In addition, Genesee Commons
Associates received approval in August 1996 for a second mortgage. Funds from
this mortgage will be used exclusively for completing structural repairs and
upgrades. Finally, Unity Park Associates is expected to receive a commitment
for a second mortgage by year end. This mortgage is being offered through the
same mortgage program as that was used by Genesee Commons Associates for its
second mortgage. Funds from this loan will be used exclusively for structural
repairs and upgrades. The Operating General Partners have continued to fund
the majority of the balance of the net loss.
Series 2.
--------- As of September 30, 1996 and 1995, the average Qualified
Occupancy for the series was 99.8% and 98.5%, respectively. The series had a
total of eight properties at September 30, 1996, seven of which were at 100%
Qualified Occupancy.
For the six months being reported the series reflects a net loss
from the Operating Partnerships of $425,756. When adjusted for depreciation,
which is a non-cash item, the Operating Partnerships reflect a net loss of
$201,626.
Annadale Housing Partners has reported net losses due to operational
issues associated with the property. The Operating Partnership has begun to
stabilize since the completion of rehabilitation. Occupancy has continued its
steady improvement. Operations have recently funded the purchase of furniture
and equipment for the common area lounges and outside seating area. While the
initial impact of these expenses will be to delay breakeven operations, the
long term effect on tenant retention and occupancy should be positive. The
Operating General Partner, Annadale Housing Corporation, anticipates full
stabilization in the first quarter of 1997.
Series 3.
--------- As of September 30, 1996 and 1995, the average Qualified
Occupancy for the series was 99.7% and 99.6%, respectively. The series had a
total of 33 properties at September 30, 1996, of which 31 were at 100%
Qualified Occupancy.
For the six months being reported series reflects a net loss from the
Operating Partnerships of $1,542,935. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect a net loss of $339,843.
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.
The Operating General Partner of Hidden Cove Associates recently
completed the process of hiring a new management company. The new management
company is concentrating on completing its capital improvement program and
improving the tenant base. The goal of the new management company, through
improved tenant screening and strong on-site management, is to improve and
stabilize occupancy.
45
The debt restructure for Lincoln Hotel Associates has been finalized.
The management company has been replaced. The new management company has an
excellent reputation in affordable housing management. They have been able
to secure additional, project based, rental subsidies that should steadily
improve occupancy over the next year.
Series 4.
--------- As of September 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 September 30, 1996, all of which were at 100%
Qualified Occupancy.
For the six months being reported series reflects a net loss from
the Operating Partnerships of $1,307,827. When adjusted for depreciation,
which is a non-cash item, the Operating Partnerships reflect a net loss of
$133,475.
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 partnership is expected to receive a commitment for a second
mortgage by year end. This mortgage is being offered through the same
mortgage program as that used by Genesee Commons Associates (in Series 1)
for its second mortgage. Funds from this loan will be used exclusively for
structural repairs and upgrades. The Operating General Partners have
continued to fund 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 has removed the
Operating General Partner and his affiliated management agent. The General
Partner and their counsel were successful in obtaining a preliminary ruling
preventing the lending institution from continuing with its foreclosure
proceedings. They feel that the institution will not prevail when this matter
is resolved in court early in 1997. The Operating General Partner has
arranged a payment plan to resolve the delinquent real estate taxes.
Rosenberg Building Associates' and New Grand Hotel Associates' most recent
principal payment due on the first mortgages created financial stress on these
partnerships. To resolve this, the Operating General Partners refinanced
the first mortgages. The refinancing resulted in lower debt service payments,
allowing the property to operate above breakeven.
Series 5.
--------- As of September 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 September 30, 1996, four of which were at 100%
Qualified Occupancy.
For the six months being reported the series reflects a net loss
from the Operating Partnerships of $84,939. When adjusted for depreciation,
which is a non-cash item, the Operating Partnerships reflect a net loss of
$68,662.
Annadale Housing Partners has reported net losses due to operational
issues associated with the property. The operating partnership continues
to stabilize since the completion of rehabilitation. Occupancy has continued
its steady improvement. Operations have recently funded the purchase of
46
furniture and equipment for the common area lounges and outside seating area.
While the initial impact of these expenses will be to delay breakeven
operations, the long term effect on tenant retention and occupancy should be
positive. The Operating General Partner, Annadale Housing Corporation,
anticipates full stabilization in the first quarter of 1997.
Series 6.
--------- As of September 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 September 30, 1996, of which 14 were at 100% Qualified
Occupancy.
For the six months being reported the series reflects a net loss from
the Operating Partnerships of $221,374. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$381,339.
Rosenberg Building Associates' most recent principal payment due on the
first mortgage created financial stress on the partnership. To resolve this,
the Operating General Partner refinanced the first mortgage. The refinancing
resulted in lower debt service payments, allowing the property to operate
above breakeven.
47<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.
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: November 15, 1996 By: /s/JOHN P. MANNING
---------------------------
John P. Manning, Partner
Partner & Principal Financial
Officer
49<PAGE>
<TABLE> <S> <C>
<ARTICLE> CT
<CIK> 0000835095
<NAME> BOSTON CAPITAL TAX CREDIT FUND LTD PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> APR-01-1996
<PERIOD-END> SEP-30-1996
<TOTAL-ASSETS> 25,685,174
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 26,685,174
<TOTAL-REVENUES> 6,510
<INCOME-TAX> 0
<INCOME-CONTINUING> (3,135,114)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3,129,604)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
