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, 1997
--------------------
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
------ ------
BOSTON CAPITAL TAX CREDIT FUND LIMITED PARTNERSHIP
--------------------------------------------------
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED September 30, 1997
-----------------------------------------------
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........................................
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
September 30,
March 31,
1997
1997
(Unaudited)
(Audited)
------------
- ------------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $24,677,679
$25,927,506
OTHER ASSETS
Cash and cash equivalents 217,932
224,629
Other assets 637,029
558,728
----------
- ----------
$25,532,640
$26,710,863
==========
==========
LIABILITIES
Accounts payable - affiliates (Note C) $ 5,067,104
$ 4,737,505
----------
- ----------
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 21,110,793
22,603,537
outstanding
General Partner (645,257)
(630,179)
----------
- ----------
20,465,536
21,973,358
----------
- ----------
$25,532,640
$26,710,863
==========
==========
The accompanying notes are an integral part of these
statements.
1
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 1
- ----------------------------
September 30,
March 31,
1997
1997
(Unaudited)
(Audited)
-----------
- ---------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ - $
117,749
OTHER ASSETS
Cash and cash equivalents 17,211
33,374
Other assets 54,303
54,303
--------- -
- --------
$ 71,514 $
205,426
=========
=========
LIABILITIES
Accounts payable - affiliates (Note C) $1,201,333
$1,110,078
--------- --
- -------
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 (1,005,297)
(782,382)
outstanding
General Partner (124,522)
(122,270)
--------- -
- --------
(1,129,819)
(904,652)
--------- -
- --------
$ 71,514 $
205,426
=========
=========
The accompanying notes are an integral part of these
statements.
2
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 2
- ----------------------------
September 30,
March 31,
1997
1997
ASSETS (Unaudited)
(Audited)
-----------
- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $2,025,159
$2,152,434
OTHER ASSETS
Cash and cash equivalents 1,335
3,205
Other assets 360,285
360,285
---------
- ---------
$2,386,779
$2,515,924
=========
=========
LIABILITIES
Accounts payable - affiliates (Note C) $ 349,209 $
301,690
---------
- ---------
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 2,086,538
2,261,435
General Partner (48,968)
(47,201)
---------
- ---------
2,037,570
2,214,234
---------
- ---------
$2,386,779
$2,515,924
=========
=========
The accompanying notes are an integral part of these
statements.
3
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 3
- ----------------------------
September 30,
March 31,
1997
1997
ASSETS (Unaudited)
(Audited)
-----------
- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $6,499,844
$7,481,197
OTHER ASSETS
Cash and cash equivalents 4,683
1,832
Other assets 41,861
41,861
---------
- ---------
$6,546,388
$7,524,890
=========
=========
LIABILITIES
Accounts payable - affiliates (Note C) $1,477,834
$1,319,724
---------
- ---------
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 5,269,782
6,395,028
General Partner (201,228)
(189,862)
---------
- ---------
5,068,554
6,205,166
---------
- ---------
$6,546,388
$7,524,890
=========
=========
The accompanying notes are an integral part of these
statements.
4
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 4
- ----------------------------
September 30,
March 31,
1997
1997
(Unaudited)
(Audited)
------------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 9,277,510 $
9,801,415
OTHER ASSETS
Cash and cash equivalents 737
12,708
Other assets 151,667
69,166
---------- -
- ---------
$ 9,429,914 $
9,883,289
==========
==========
LIABILITIES
Accounts payable - affiliates (Note C) $ 1,312,777 $
1,084,556
---------- -
- ---------
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 8,296,070
8,970,850
General Partner (178,933)
(172,117)
---------- -
- ---------
8,117,137
8,798,733
---------- -
- ---------
$ 9,429,914 $
9,883,289
==========
==========
The accompanying notes are an integral part of these
statements.
5
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 5
- ----------------------------
September 30,
March 31,
1997
1997
(Unaudited)
(Audited)
------------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $1,248,147
$1,308,171
OTHER ASSETS
Cash and cash equivalents 134,398
146,095
Other assets 33,113
33,113
---------
- ---------
$1,415,658
$1,487,379
=========
=========
LIABILITIES
Accounts payable - affiliates (Note C) $ 87,552 $
67,824
---------
- ---------
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 1,356,575
1,447,110
General Partner (28,469)
(27,555)
---------
- ---------
1,328,106
1,419,555
---------
- ---------
$1,415,658
$1,487,379
=========
=========
The accompanying notes are an integral part of these
statements.
6
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 6
- ----------------------------
September 30,
March 31,
1997
1997
(Unaudited)
(Audited)
------------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $4,814,505
$5,066,540
OTHER ASSETS
Cash and cash equivalents 13,250
27,415
Other assets -
- -
---------
- ---------
$4,827,755
$5,093,955
=========
=========
LIABILITIES
Accounts payable - affiliates (Note C) $ 925,771 $
853,633
---------
- ---------
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 3,976,541
4,311,496
General Partner (74,557)
(71,174)
---------
- ---------
3,901,984
4,240,322
---------
- ---------
$4,827,755
$5,093,955
=========
=========
The accompanying notes are an integral part of these
statements.
7
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
1997 1996
---- ----
Income
Interest income $ 1,443 $ 1,874
Miscellaneous income 472 2,637
---------- ----------
1,915 4,511
---------- ----------
Share of loss from Operating
Partnerships (Note D) (1,249,825)
(1,105,022)
---------- ----------
Expenses
Partnership management fees 231,758 231,176
General and administrative expenses 28,154 89,105
---------- ----------
259,912 320,281
---------- ----------
NET LOSS $(1,507,822)
$(1,420,792)
========== ==========
Net loss allocated to assignees $(1,492,744)
$(1,406,584)
========== ==========
Net loss allocated to general partner $ (15,078) $
(14,208)
========== ==========
Net loss per BAC $ (.83) $
(.71)
========== ==========
The accompanying notes are an integral part of these
statements.
8
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
SERIES 1
- -----------------------
1997
1996
----
- ----
Income
Interest income $ 265 $
345
Miscellaneous income 1
1,333
--------
- --------
266
1,678
--------
- --------
Share of loss from Operating
Partnerships (Note D) (50,003)
(81,099)
--------
- --------
Expenses
Partnership management fees 39,216
39,216
General and administrative expenses 19,079
17,842
--------
- --------
58,295
57,058
--------
- --------
NET LOSS $ (108,032)
$(136,479)
========
========
Net loss allocated to assignees $ (106,952)
$(135,114)
========
========
Net loss allocated to general partner $ (1,080) $
(1,365)
========
========
Net loss per BAC $ (.08) $
(.10)
========
========
The accompanying notes are an integral part of these
statements.
9
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
SERIES 2
- ----------------------
1997
1996
----
- ----
Income
Interest income $ 14
6
Miscellaneous income -
- -
--------
- --------
14
6
--------
- --------
Share of loss from Operating
Partnerships (Note D) (66,887)
(37,286)
--------
- --------
Expenses
Partnership management fees 14,432
17,310
General and administrative expenses 14,326
10,898
--------
- --------
28,758
28,208
--------
- --------
NET LOSS $ (95,631) $
(65,488)
========
========
Net loss allocated to assignees $ (94,675) $
(64,833)
========
========
Net loss allocated to general partner $ (956) $
(655)
========
========
Net loss per BAC $ (.11) $
(.08)
========
========
The accompanying notes are an integral part of these
statements.
10
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
SERIES 3
- ----------------------
1997
1996
----
- ----
Income
Interest income $ 86 $
31
Miscellaneous income 88
1,304
--------
- --------
174
1,335
--------
- --------
Share of loss from Operating
Partnerships (Note D) (483,371)
(468,821)
--------
- --------
Expenses
Partnership management fees 61,897
65,497
General and administrative expenses 22,964
19,780
--------
- --------
84,861
85,277
--------
- --------
NET LOSS $(568,058)
$(552,763)
========
========
Net loss allocated to assignees $(562,377)
$(547,235)
========
========
Net loss allocated to general partner $ (5,681) $
(5,528)
========
========
Net loss per BAC $ (.19) $
(.19)
========
========
The accompanying notes are an integral part of these
statements.
11
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
SERIES 4
- ----------------------
1997
1996
----
- ----
Income
Interest income $ 24 $
154
Miscellaneous income -
- -
--------
- --------
24
154
--------
- --------
Share of loss from Operating
Partnerships (Note D) (158,660)
(394,574)
--------
- --------
Expenses
Partnership management fees 62,721
63,220
General and administrative expenses 24,973
19,948
--------
- --------
87,694
83,168
--------
- --------
NET LOSS $(246,330)
$(477,588)
========
========
Net loss allocated to assignees $(243,867)
$(472,812)
========
========
Net loss allocated to general partner $ (2,463) $
(4,776)
========
========
Net loss per BAC $ (.08) $
(.16)
========
========
The accompanying notes are an integral part of these
statements.
12
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
SERIES 5
- ----------------------
1997
1996
----
- ----
Income
Interest income $ 866 $
1,058
Miscellaneous income -
- -
--------
- --------
866
1,058
--------
- --------
Share of loss from Operating
Partnerships (Note D) (38,823)
(38,344)
--------
- --------
Expenses
Partnership management fees 9,592
9,864
General and administrative expenses 11,916
8,919
--------
- --------
21,508
18,783
--------
- --------
NET LOSS $ (59,465) $
(56,069)
========
========
Net loss allocated to assignees $ (58,870) $
(55,508)
========
========
Net loss allocated to general partner $ (595) $
(561)
========
========
Net loss per BAC $ (.12) $
(.11)
========
========
The accompanying notes are an integral part of these
statements.
13
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
SERIES 6
- ----------------------
1997
1996
----
- ----
Income
Interest income $ 171 $
280
Miscellaneous income -
- -
--------
- --------
171
280
--------
- --------
Share of loss from Operating
Partnerships (Note D) (12,093)
(84,898)
--------
- --------
Expenses
Partnership management fees 36,069
36,069
General and administrative expenses 16,500
11,718
--------
- --------
52,569
47,787
--------
- --------
NET LOSS $ (64,491)
$(132,405)
========
========
Net loss allocated to assignees $ (63,846)
$(131,081)
========
========
Net loss allocated to general partner $ (645) $
(1,327)
========
========
Net loss per BAC $ (.05) $
(.10)
========
========
The accompanying notes are an integral part of these
statements.
14
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
1997 1996
---- ----
Income
Interest income $ 1,443 $ 3,853
Miscellaneous income 472 2,657
---------- ----------
1,915 6,510
---------- ----------
Share of loss from Operating
Partnerships (Note D) (1,249,825)
(2,550,435)
---------- ----------
Expenses
Partnership management fees 231,758 455,120
General and administrative expenses 28,154 130,559
---------- ----------
259,912 585,679
---------- ----------
NET LOSS $(1,507,822)
$(3,129,604)
========== ==========
Net loss allocated to assignees $(1,492,744)
$(3,098,308)
========== ==========
Net loss allocated to general partner $ (15,078) $
(31,296)
========== ==========
Net loss per BAC $ (.83) $
(1.66)
========== ==========
The accompanying notes are an integral part of these
statements.
15
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 1
- -----------------------
1997
1996
----
- ----
Income
Interest income $ 415 $
712
Miscellaneous income 1
1,353
--------
- --------
416
2,065
--------
- --------
Share of loss from Operating
Partnerships (Note D) (117,749)
(178,762)
--------
- --------
Expenses
Partnership management fees 84,432
83,692
General and administrative expenses 23,402
25,025
--------
- --------
107,834
108,717
--------
- --------
NET LOSS $ (225,167)
$(285,414)
========
========
Net loss allocated to assignees $ (222,915)
$(282,560)
========
========
Net loss allocated to general partner $ (2,252) $
(2,854)
========
========
Net loss per BAC $ (.17) $
(.21)
========
========
The accompanying notes are an integral part of these
statements.
16
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 2
- ----------------------
1997
1996
----
- ----
Income
Interest income $ 31 $
15
Miscellaneous income -
- -
--------
- --------
31
15
--------
- --------
Share of loss from Operating
Partnerships (Note D) (127,273)
(207,478)
--------
- --------
Expenses
Partnership management fees 31,742
31,256
General and administrative expenses 17,680
15,688
--------
- --------
49,422
46,944
--------
- --------
NET LOSS $(176,664)
$(254,407)
========
========
Net loss allocated to assignees $(174,897)
$(251,863)
========
========
Net loss allocated to general partner $ (1,767) $
(2,544)
========
========
Net loss per BAC $ (.21) $
(.30)
========
========
The accompanying notes are an integral part of these
statements.
17
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 3
- ----------------------
1997
1996
----
- ----
Income
Interest income $ 90 $
68
Miscellaneous income 560
1,304
-------- -
- --------
650
1,372
-------- -
- --------
Share of loss from Operating
Partnerships (Note D) (978,676)
(928,109)
-------- -
- --------
Expenses
Partnership management fees 127,394
131,194
General and administrative expenses 31,192
30,777
-------- -
- --------
158,586
161,971
-------- -
- --------
NET LOSS $(1,136,612)
$(1,088,708)
========
=========
Net loss allocated to assignees $(1,125,246)
$(1,077,821)
========
=========
Net loss allocated to general partner $ (11,366) $
(10,887)
========
=========
Net loss per BAC $ (.39) $
(.38)
========
=========
The accompanying notes are an integral part of these
statements.
18
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 4
- ----------------------
1997
1996
----
- ----
Income
Interest income $ 81 $
335
Miscellaneous income -
- -
-------- -
- --------
81
335
-------- -
- --------
Share of loss from Operating
Partnerships (Note D) (523,905)
(982,610)
-------- -
- --------
Expenses
Partnership management fees 125,442
125,442
General and administrative expenses 32,330
29,464
-------- -
- --------
157,772
154,906
-------- -
- --------
NET LOSS $(681,596)
$(1,137,181)
========
=========
Net loss allocated to assignees $(674,780)
$(1,125,809)
========
=========
Net loss allocated to general partner $ (6,816) $
(11,372)
========
=========
Net loss per BAC $ (.22) $
(.37)
========
=========
The accompanying notes are an integral part of these
statements.
19
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 5
- ----------------------
1997
1996
----
- ----
Income
Interest income $ 1,875 $
2,165
Miscellaneous income -
- -
--------
- --------
1,875
2,165
--------
- --------
Share of loss from Operating
Partnerships (Note D) (60,024)
(64,716)
--------
- --------
Expenses
Partnership management fees 19,456
18,772
General and administrative expenses 13,844
12,449
--------
- --------
33,300
31,221
--------
- --------
NET LOSS $ (91,449) $
(93,772)
========
========
Net loss allocated to assignees $ (90,535) $
(92,834)
========
========
Net loss allocated to general partner $ (914) $
(938)
========
========
Net loss per BAC $ (.18) $
(.19)
========
========
The accompanying notes are an integral part of these
statements.
20
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 6
- ----------------------
1997
1996
----
- ----
Income
Interest income $ 377 $
558
Miscellaneous income -
- -
--------
- --------
377
558
--------
- --------
Share of loss from Operating
Partnerships (Note D) (252,035)
(188,760)
--------
- --------
Expenses
Partnership management fees 67,138
64,764
General and administrative expenses 19,542
17,156
--------
- --------
86,680
81,920
--------
- --------
NET LOSS $(338,338)
$(270,122)
========
========
Net loss allocated to assignees $(334,955)
$(267,421)
========
========
Net loss allocated to general partner $ (3,383) $
(2,701)
========
========
Net loss per BAC $ (.26) $
(.21)
========
========
The accompanying notes are an integral part of these
statements.
21
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Six Months Ended September 30, 1997
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Partners' capital (deficit),
April 1, 1997 $22,603,537 $(630,179)
$21,973,358
Net loss (1,492,744) (15,078)
(1,507,822)
---------- --------
- ----------
Partners' capital (deficit),
September 30, 1997 $21,110,793 $(645,257)
$20,465,536
========== ========
==========
The accompanying notes are an integral part of these
statements.
22
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Six Months Ended September 30, 1997
(Unaudited)
General
Assignees Partner
Total
--------- -------
- -----
Series 1
- --------
Partners' capital (deficit),
April 1, 1997 $ (782,382) $(122,270) $
(904,652)
Net loss (222,915) (2,252)
(225,167)
--------- -------- --
- --------
Partners' capital (deficit),
September 30, 1997 $(1,005,297) $(124,522)
$(1,129,819)
========= ========
==========
Series 2
- --------
Partners' capital (deficit),
April 1, 1997 $ 2,261,435 $(47,201)
$2,214,234
Net loss (174,897) (1,767)
(176,664)
--------- -------
- ---------
Partners' capital (deficit),
September 30, 1997 $ 2,086,538 $(48,968)
$2,037,570
========= =======
=========
Series 3
- --------
Partners' capital (deficit),
April 1, 1997 $ 6,395,028 $(189,862) $
6,205,166
Net loss (1,125,246) (11,366)
(1,136,612)
---------- --------
- ----------
Partners' capital (deficit),
September 30, 1997 $ 5,269,782 $(201,228) $
5,068,554
========== ========
==========
The accompanying notes are an integral part of these
statements.
23
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Six Months Ended September 30, 1997
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Series 4
- --------
Partners' capital (deficit),
April 1, 1997 $ 8,970,850 $(172,117) $
8,798,733
Net loss (674,780) (6,816)
(681,596)
---------- --------
- ----------
Partners' capital (deficit),
September 30, 1997 $ 8,296,070 $(178,933) $
8,117,137
========== ========
==========
Series 5
- --------
Partners' capital (deficit),
April 1, 1997 $1,447,110 $(27,555)
$1,419,555
Net loss (90,535) (914)
(91,449)
--------- -------
- ---------
Partners' capital (deficit),
September 30, 1997 $1,356,575 $(28,469)
$1,328,106
========= =======
=========
Series 6
- --------
Partners' capital (deficit),
April 1, 1997 $4,311,496 $(71,174)
$4,240,322
Net loss (334,955) (3,383)
(338,338)
--------- --------
- --------
Partners' capital (deficit),
September 30, 1997 $3,976,541 $(74,557)
$3,901,984
========= =======
=========
The accompanying notes are an integral part of these
statements.
24
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
1997
1996
----
- ----
Cash flows from operating activities:
Net loss $(1,507,822)
$(3,129,605)
Adjustments
Distributions from Operating
Partnerships -
14,703
Amortization -
- -
Share of loss from Operating
Partnerships 1,249,825
2,550,435
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 329,601
620,180
Decrease (Increase) in other
assets (78,301)
(101,348)
----------
- ----------
Net cash provided by (used in)
operating activities (6,697)
(45,635)
----------
- ----------
DECREASE IN CASH AND CASH
EQUIVALENTS (6,697)
(45,635)
Cash and cash equivalents, beginning 224,629
280,931
----------
- ----------
Cash and cash equivalents, ending $ 217,932 $
235,296
==========
==========
The accompanying notes are an integral part of these
statements.
25
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 1
- -------------------------
1997
1996
----
- ----
Cash flows from operating activities:
Net loss $ (225,167) $
(285,414)
Adjustments
Distributions from Operating
Partnerships -
- -
Amortization -
- -
Share of loss from Operating
Partnerships 117,749
178,762
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 91,255
90,432
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities (16,163)
(16,220)
----------
- ----------
DECREASE IN CASH AND CASH
EQUIVALENTS (16,163)
(16,220)
Cash and cash equivalents, beginning 33,374
52,334
----------
- ----------
Cash and cash equivalents, ending $ 17,211 $
36,114
==========
==========
The accompanying notes are an integral part of these
statements.
26
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 2
- -------------------------
1997
1996
----
- ----
Cash flows from operating activities:
Net loss $ (176,664) $
(254,408)
Adjustments
Distributions from Operating
Partnerships -
- -
Amortization -
- -
Share of loss from Operating
Partnerships 127,273
207,478
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 47,521
51,174
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities (1,870)
4,244
----------
- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (1,870)
4,244
Cash and cash equivalents, beginning 3,205
1,262
----------
- ----------
Cash and cash equivalents, ending $ 1,335 $
5,506
==========
==========
The accompanying notes are an integral part of these
statements.
27
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 3
- -------------------------
1997
1996
----
- ----
Cash flows from operating activities:
Net loss $(1,136,612)
$(1,088,708)
Adjustments
Distributions from Operating
Partnerships 2,677
2,659
Amortization -
- -
Share of loss from Operating
Partnerships 978,676
928,109
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 158,110
154,916
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities 2,851
(3,024)
----------
- ----------
INCREASE IN CASH AND CASH
EQUIVALENTS 2,851
(3,024)
Cash and cash equivalents, beginning 1,832
5,460
----------
- ----------
Cash and cash equivalents, ending $ 4,683 $
2,436
==========
==========
The accompanying notes are an integral part of these
statements.
28
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 4
- -------------------------
1997
1996
----
- ----
Cash flows from operating activities:
Net loss $ (681,596)
$(1,137,181)
Adjustments
Distributions from Operating
Partnerships -
12,044
Amortization -
- -
Share of loss from Operating
Partnerships 523,905
982,610
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 228,221
231,791
Decrease (Increase) in other
assets (82,501)
(101,348)
----------
- ----------
Net cash provided by (used in)
operating activities (11,971)
(12,084)
----------
- ----------
DECREASE IN CASH AND CASH
EQUIVALENTS (11,971)
(12,084)
Cash and cash equivalents, beginning 12,708
25,928
----------
- ----------
Cash and cash equivalents, ending $ 737 $
13,844
==========
==========
The accompanying notes are an integral part of these
statements.
29
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 5
- -------------------------
1997
1996
----
- ----
Cash flows from operating activities:
Net loss $ (91,449) $
(93,772)
Adjustments
Distributions from Operating
Partnerships -
- -
Amortization -
- -
Share of loss from Operating
Partnerships 60,024
64,716
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 19,728
19,729
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities (11,697)
(9,327)
----------
- ----------
DECREASE IN CASH AND CASH
EQUIVALENTS (11,697)
(9,327)
Cash and cash equivalents, beginning 146,095
156,816
----------
- ----------
Cash and cash equivalents, ending $ 134,398 $
147,489
==========
==========
The accompanying notes are an integral part of these
statements.
30
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 6
- -------------------------
1997
1996
----
- ----
Cash flows from operating activities:
Net loss $ (338,338) $
(270,122)
Adjustments
Distributions from Operating
Partnerships -
- -
Amortization -
- -
Share of loss from Operating
Partnerships 252,035
188,760
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 72,138
72,138
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities (14,165)
(9,224)
----------
- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (14,165)
(9,224)
Cash and cash equivalents, beginning 27,415
39,131
----------
- ----------
Cash and cash equivalents, ending $ 13,250 $
29,907
==========
==========
The accompanying notes are an integral part of these
statements.
31
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
(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,
1997 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 or omitted pursuant to such rules and regulations. It
is suggested
32
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(Unaudited)
NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES (continued)
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 its affiliates were charged to each series'
operations for
the quarters ended September 30, 1997 and 1996 as follows:
1997 1996
----- -----
Series 1 $ 823 $ 642
Series 2 1,846 -
Series 3 1,860 -
Series 4 1,870 1,639
Series 5 1,498 975
Series 6 949 642
------ ------
$ 8,848 $ 3,898
====== ======
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, 1997
and 1996 are
as follows:
1997 1996
---- ----
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, 1997 and
1996 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
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(Unaudited)
NOTE C - RELATED PARTY TRANSACTIONS (continued)
As of September 30, 1997, an affiliate of the general
partner advanced a
total of $182,250 to the Partnership to pay certain operating
expenses of some
of the series. Of this amount, $38,000 was advanced during the
quarter ended
September 30, 1997. 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, 1997, an affiliate of the general
partner funded
$151,297, interest free, to the Partnership (Series 1 and 4) so
that it could
make three separate loans to the Operating Partnerships Virginia
Circle, Van
Dyck Estates and New Grand Hotel in the amounts of $10,130,
$121,275 and
$19,892, respectively. The loans to Operating Partnerships
Virginia Circle
and Van Dyck Estates are being made to fund operating expenses of
the
operating partnership. The loan to Operating Partnership New
Grand Hotel
enabled the operating 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.
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS
At September 30, 1997 and 1996, 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, 1997 and
1996, 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, 1997.
The combined unaudited summarized statements of operations
of the
Operating Partnerships for the six months ended June 30, 1997 and
1996
are as follows: 34
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 1
- ---------------------------
1997 1996
---- ----
Revenues
Rental $ 2,470,980 $
2,493,647
Interest and other 110,678
78,012
---------- -
- ---------
2,581,658
2,571,659
---------- -
- ---------
Expenses
Interest 602,519
608,051
Depreciation and amortization 853,215
902,849
Operating expenses 2,147,298
2,228,657
---------- --
- --------
3,603,032
3,739,557
---------- -
- ---------
NET LOSS $(1,021,374)
$(1,167,898)
==========
==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (117,749) $
(178,762)
==========
==========
Net loss allocated to other partners $ (10,214) $
(11,679)
==========
==========
Net loss suspended $ (893,411) $
(977,457)
==========
==========
The variance in allowable loss from the Operating Partnerships
for the six months ended June 30, 1997 and 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.
35
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 2
- --------------------------
1997 1996
---- ----
Revenues
Rental $ 654,505 $
650,784
Interest and other 26,930
30,544
---------
- ---------
681,435
681,328
---------
- ---------
Expenses
Interest 274,618
445,307
Depreciation and amortization 191,202
224,130
Operating expenses 492,075
437,647
---------
- ---------
957,895 $
1,107,084
---------
- ---------
NET LOSS $ (276,460) $
(425,756)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (127,273) $
(207,478)
=========
=========
Net loss allocated to other partners $ (2,765) $
(4,258)
=========
=========
Net loss suspended $ (146,423) $
(214,020)
=========
=========
The variance in allowable loss from the Operating Partnerships
for the six
months ended June 30, 1997 and 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 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
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 3
- --------------------------
1997 1996
Revenues ---- ----
Rental $ 3,095,989 $
2,816,091
Interest and other 160,428
238,633
---------
- ---------
3,256,417
3,054,724
---------
- ---------
Expenses
Interest 1,213,548
1,450,305
Depreciation and amortization 1,271,375
1,203,092
Operating expenses 2,189,678
1,944,262
---------
- ---------
4,674,601
4,597,659
---------
- ---------
NET LOSS $(1,418,184)
$(1,542,935)
==========
==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (978,676) $
(928,109)
==========
==========
Net loss allocated to other partners $ (14,182) $
(15,429)
==========
==========
Net loss suspended $ (425,326) $
(599,397)
==========
==========
The variance in allowable loss from the Operating Partnerships
for the six
months ended June 30, 1997 and 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.
37
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 4
- ----------------------------
1997 1996
Revenues ---- ----
Rental $ 3,212,185 $
2,765,942
Interest and other 134,133
155,061
----------
- ----------
3,346,318
2,921,003
----------
- ----------
Expenses
Interest 1,287,728
1,232,939
Depreciation and amortization 1,178,973
1,174,352
Operating expenses 1,852,653
1,821,539
----------
- ----------
4,319,354
4,228,830
----------
- ----------
NET LOSS $ (973,036)
$(1,307,827)
==========
==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (523,905) $
(982,610)
==========
==========
Net loss allocated to other partners $ (9,730) $
(13,078)
==========
==========
Net loss suspended $ (439,401) $
(312,139)
==========
==========
The variance in allowable loss from the Operating Partnerships
for the six
months ended June 30, 1997 and 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.
38
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 5
- --------------------------
1997 1996
Revenues ---- ----
Rental $ 313,822 $
288,308
Interest and other 31,924
28,709
-------
- --------
345,746
317,017
-------
- --------
Expenses
Interest 128,523
80,534
Depreciation and amortization 97,685
96,277
Operating expenses 228,970
225,145
-------
- --------
455,178
401,956
-------
- --------
NET LOSS $(109,432) $
(84,939)
========
========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (60,024) $
(64,716)
========
========
Net loss allocated to other partners $ (1,094) $
(849)
========
========
Net loss suspended $ (48,313) $
(19,374)
========
========
The variance in allowable loss from the Operating Partnerships
for the six
months ended June 30, 1997 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
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 6
- --------------------------
1997 1996
Revenues ---- ----
Rental $2,000,294
$2,083,923
Interest and other 148,428
121,826
---------
- ---------
2,148,722
2,205,749
---------
- ---------
Expenses
Interest 594,627
659,690
Depreciation and amortization 603,442
602,713
Operating expenses 1,217,769
1,164,720
---------
- ---------
2,415,838
2,427,123
---------
- ---------
NET LOSS $ (267,116) $
(221,374)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (252,035) $
(188,760)
=========
=========
Net loss allocated to other partners $ (2,671) $
(2,214)
=========
=========
Net loss suspended $ (12,410) $
(30,400)
=========
=========
The variance in allowable loss from the Operating Partnerships
for the six
months ended June 30, 1997 and 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.
40
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(Unaudited)
NOTE E - TAXABLE LOSS
The Partnership's taxable loss for the fiscal year ended
March
31, 1998 is expected to differ from its loss for financial
reporting
purposes. This is primarily due to accounting differences in
depreciation
incurred by the Operating Partnerships and also differences
between the equity
method of accounting and the IRS accounting methods. 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
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, 1997 were $238,677 and total partnership management fees
accrued as of
September 30, 1997 were $5,013,412. 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.
An affiliate of the general partner has advanced $182,250 to
the
Partnership to pay certain third party operating expenses. Of
this amount,
$38,000 was advanced in the quarter ended September 30, 1997. The
amounts
advanced to four of the six series as are as follows: $40,000 to
Series 1;
$25,000 to Series 2; $94,250 to Series 3; and $23,000 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 expenses.
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, 1997 and
1996 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.
42
As of September 30, 1997, 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 $17,211 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.
As of September 30, 1997, 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 $1,335 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, 1997, 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 $20,872,509 and the Partnership had
completed payment
of all its capital contributions. Series 3 net offering proceeds
in the
amount of $4,683 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, 1997, 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 $737 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.
43
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, 1997, 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 $134,398 remains in Working
Capital.
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, 1997 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 $13,250 remains in Working Capital.
Results of Operations
- ---------------------
At September 30, 1997 and 1996 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 charged to operations for the quarters ended
September 30, 1997 and 1996 were $223,758 and $231,176,
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.
44
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, 1997 and 1996, the average
Qualified
Occupancy for the series was 99.2% and 99.4%, respectively. The
series had a
total of 19 properties at September 30, 1997. Out of the total,
17 were at
100% Qualified Occupancy.
For the six months being reported, the series reflects a net
loss from
Operating Partnerships of $1,021,374. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect a net loss
of $168,159.
Substantially all of the net loss for both years is attributable
to accrued
mortgage interest not payable currently by Kingston Property
Associates,
Genesee Commons Associates, and Unity Park Associates. All three
partnerships have closed on mortgages which require minimum debt
service
payments, the funds from which are being utilized exclusively for
completing structural repairs and upgrades. The Operating
General Partners
have continued to fund the majority of the balance of the net
loss.
The properties owned by Townhomes of Minnehaha Court and
Virginia
Circle are experiencing high operating expenses which are
resulting in
operating deficits. The respective management companies are
implementing
cost saving measures to mitigate these deficits and stabilize the
properties operations.
Series 2.
--------- As of September 30, 1997 and 1996, the average
Qualified
Occupancy for the series was 100% and 98.8%, respectively. The
series had a
total of eight properties at June 30, 1997, all of which were at
100%
Qualified Occupancy.
For the six months being reported the series reflects a net
loss
from the Operating Partnerships of $276,460. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflect a
net loss of
$85,258.
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 and occupancy
has shown
steady improvement. Occupancy is at 95% as of September 30,
1997.
45
Series 3.
--------- As of September 30, 1997 and 1996, the average
Qualified
Occupancy for the series was 99.6% and 99.7%, respectively. The
series had a
total of 33 properties at September 30, 1997, of which 31 were at
100%
Qualified Occupancy.
For the six months being reported series reflects a net loss
from the
Operating Partnerships of $1,418,184. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect a net loss
of $146,809.
The General Partner is continuing to monitor the operations
of Lincoln
Hotel Associates in an effort to improve the overall results of
operations
of the series. The new management company of Lincoln Hotel has
secured a
100% project based subsidy and housing stabilization funds from
the
Massachusetts Department of Housing and Community Development.
The
increased income afforded under the favorable subsidy contract
should
allow for a stabilization of the project's net operating income.
The
subsidy will also increase affordability for prospective tenants
thereby
increasing occupancy percentages. The Housing Stabilization
Funds will
be used to rehabilitate the property.
The property owned by California Investors VI, L.P. has
experienced
a reduction in occupancy, which stands at 92% at September 30,
1997. The
management company is increasing their marketing efforts, as well
as
implementing capital improvements to the property to attract
tenants.
These efforts should improve occupancy and stabilize the
property.
The new management company at Hidden Cove continues to make
improvements to the tenant base and occupancy which stands at 93%
at
September 30, 1997, however, the property is still generating
operating
deficits. As such, the management company is implementing cost
saving
measures to mitigate these deficits and stabilize the property.
Series 4.
--------- As of September 30, 1997 and 1996, the average
Qualified
Occupancy for the series was 100% and 100%, respectively. The
series had a
total of 25 properties at September, 30, 1997, all of which were
at 100%
Qualified Occupancy.
For the six months being reported series reflects a net loss
from
the Operating Partnerships of $973,036. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflects
positive operations of $205,937.
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. Unity Park Associates has closed on a second
mortgage, the
funds from which are being utilized exclusively for completing
structural
repairs and upgrades. The Operating General Partners have
continued to fund
the majority of the balance of the net loss.
46
The new Operating General Partner has discovered that there
are
delinquent real estate taxes on the property owned by Van Dyke
Estates
XVI. These taxes are being paid resulting in operating deficits.
The
new Operating General Partner believes that once these taxes have
been
paid operating deficits will be minimal.
Series 5.
--------- As of September 30, 1997 and 1996, the average
Qualified
Occupancy for the series was 100% and 99.6%, respectively. The
series had a
total of five properties at September 30, 1997, all of which were
at 100%
Qualified Occupancy.
For the six months being reported the series reflects a net
loss
from the Operating Partnerships of $109,432. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflect
positive
operations of $11,747.
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 and occupancy
has
shown steady improvement. Occupancy is at 95% as of September
30, 1997. The
property owned by Glenhaven Park Partners is experiencing high
operating
expenses which are resulting in operating deficits. The
management
company is implementing cost saving measures to mitigate these
deficits
and stabilize the property's operations.
Series 6.
--------- As of September 30, 1997 and 1996, the average
Qualified
Occupancy for the series was 99.7% and 99.5% respectively. The
series had a total of 15 properties at September 30, 1997, 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 $267,116. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect positive
operations of
$336,326.
47
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(b) Reports on Form 8-K
There were no reports on Form 8-K filed during the
period
covered by this report.
48
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 14, 1997 By: /s/JOHN P. MANNING
---------------------------
John P. Manning, Partner
Partner & Principal Financial
Officer
49
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<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
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