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, 1998
--------------------
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, 1998
-----------------------------------------------
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,
1998
1998
(Unaudited)
(Audited)
------------
- ------------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $19,679,424
$21,247,830
OTHER ASSETS
Cash and cash equivalents 167,181
176,885
Other assets 713,229
672,439
----------
- ----------
$20,559,834
$22,097,154
==========
==========
LIABILITIES
Accounts payable $ 1,919
$ -
Accounts payable - affiliates (Note C) 6,470,749
5,879,773
----------
- ----------
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 14,796,206
16,905,119
outstanding
General Partner (709,040)
(687,738)
----------
- ----------
14,087,166
16,217,381
----------
- ----------
$20,559,834
$ 22,097,154
==========
==========
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,
1998
1998
(Unaudited)
(Audited)
----------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 39,010 $
39,010
OTHER ASSETS
Cash and cash equivalents 7,475
15,351
Other assets 68,113
68,113
--------- -
- --------
$ 114,598 $
122,474
=========
=========
LIABILITIES
Accounts payable $ 128 $
- -
Accounts payable - affiliates (Note C) 1,405,662
1,306,517
--------- --
- -------
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 (1,165,057)
(1,058,979)
outstanding
General Partner (126,135)
(125,064)
- --------- ---------
(1,291,192)
(1,184,043)
--------- -
- --------
$ 114,598 $
122,474
=========
=========
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,
1998
1998
ASSETS (Unaudited)
(Audited)
-----------
- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $1,799,585
$1,889,149
OTHER ASSETS
Cash and cash equivalents 7,011
3,977
Other assets 360,285
360,285
---------
- ---------
$2,166,881
$2,253,411
=========
=========
LIABILITIES
Accounts payable $ 89 $
- -
Accounts payable - affiliates (Note C) 441,776
390,924
---------
- ---------
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 1,777,109
1,913,205
General Partner (52,093)
(50,718)
---------
- ---------
1,725,016
1,862,487
---------
- ---------
$2,166,881
$2,253,411
=========
=========
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,
1998
1998
ASSETS (Unaudited)
(Audited)
-----------
- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $4,125,457
$4,858,313
OTHER ASSETS
Cash and cash equivalents 4,281
14,333 Other assets
41,861 41,861
---------
- ---------
$4,171,599
$4,914,507
=========
=========
LIABILITIES
Accounts payable $ 1,290 $
- -
Accounts payable - affiliates (Note C) 1,759,833
1,615,058
---------
- ---------
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 2,638,285
3,518,368
General Partner (227,809)
(218,919)
---------
- ---------
2,410,476
3,299,449
- --------- ---------
$4,171,599
$4,914,507
=========
=========
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,
1998
1998
(Unaudited)
(Audited)
------------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 8,274,904 $
8,752,503
OTHER ASSETS
Cash and cash equivalents 11,755
1,955 Other assets
209,857 169,067
---------- -
- ---------
$ 8,496,516 $
8,923,525
==========
==========
LIABILITIES
Accounts payable $ 259 $
- -
Accounts payable - affiliates (Note C) 1,665,359
1,461,678
---------- -
- ---------
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 7,022,693
7,647,333
General Partner (191,795)
(185,486)
---------- -
- ---------
6,830,898
7,461,847 ---
- ------- ----------
$ 8,496,516 $
8,923,525
==========
==========
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,
1998
1998
(Unaudited)
(Audited)
------------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $1,115,614
$1,173,153
OTHER ASSETS
Cash and cash equivalents 120,321
130,957
Other assets 33,113
33,113
---------
- ---------
$1,269,048
$1,337,223
=========
=========
LIABILITIES
Accounts payable $ 49 $
- -
Accounts payable - affiliates (Note C) 127,008
107,280
---------
- ---------
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 1,172,322
1,259,394
General Partner (30,331)
(29,451)
---------
- ---------
1,141,991
1,229,943
---------
- ---------
$1,269,048
$1,337,223
=========
=========
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,
1998
1998
(Unaudited)
(Audited)
------------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $4,324,854
$4,535,702
OTHER ASSETS
Cash and cash equivalents 16,338
10,312
Other assets -
- -
---------
- ---------
$4,341,192
$4,546,014
=========
=========
LIABILITIES
Accounts payable $ 104 $
- -
Accounts payable - affiliates (Note C) 1,071,111
998,316
- --------- ---------
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 3,350,854
3,625,798
General Partner (80,877)
(78,100)
---------
- ---------
3,269,977
3,547,698
---------
- ---------
$4,341,192
$4,546,014
=========
=========
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)
1998 1997
---- ----
Income
Interest income $ 1,193 $ 1,443
Miscellaneous income - 472
---------- ----------
1,193 1,915
---------- ----------
Share of loss from Operating
Partnerships (Note D) (768,033)
(1,249,825)
---------- ----------
Expenses
Partnership management fees 232,070 231,758
General and administrative expenses 104,085 28,154
---------- ----------
336,155 259,912
---------- ----------
NET LOSS $(1,102,995)
$(1,507,822)
========== ==========
Net loss allocated to assignees $(1,091,966)
$(1,492,744)
========== ==========
Net loss allocated to general partner $ (11,029) $
(15,078)
========== ==========
Net loss per BAC $ (.56) $
(.83)
========== ==========
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
- -----------------------
1998
1997
----
- ----
Income
Interest income $ 85 $
265
Miscellaneous income -
1
--------
- --------
85
266
--------
- --------
Share of loss from Operating
Partnerships (Note D) -
(50,003)
--------
- --------
Expenses
Partnership management fees 45,216
39,216
General and administrative expenses 18,700
19,079
--------
- --------
63,916
58,295
--------
- --------
NET LOSS $ (63,193)
$(108,032)
========
========
Net loss allocated to assignees $ (63,831)
$(106,952)
========
========
Net loss allocated to general partner $ (638) $
(1,080)
========
========
Net loss per BAC $ (.04) $
(.08)
========
========
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
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 34 $
14
Miscellaneous income -
- -
--------
- --------
34
14
--------
- --------
Share of loss from Operating
Partnerships (Note D) (36,523)
(66,887)
--------
- --------
Expenses
Partnership management fees 15,432
14,432
General and administrative expenses 13,070
14,326
--------
- --------
28,502
28,758
--------
- --------
NET LOSS $ (64,991) $
(95,631)
========
========
Net loss allocated to assignees $ (64,341) $
(94,675)
========
========
Net loss allocated to general partner $ (650) $
(956)
========
========
Net loss per BAC $ (.07) $
(.11)
========
========
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
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 72 $
86
Miscellaneous income -
88
--------
- --------
72
174
--------
- --------
Share of loss from Operating
Partnerships (Note D) (377,805)
(483,371)
--------
- --------
Expenses
Partnership management fees 63,040
61,897
General and administrative expenses 22,866
22,964
--------
- --------
85,906
84,861
--------
- --------
NET LOSS $(463,639)
$(568,058)
========
========
Net loss allocated to assignees $(459,003)
$(562,377)
========
========
Net loss allocated to general partner $ (4,636) $
(5,681)
========
========
Net loss per BAC $ (.16) $
(.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
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 27 $
24
Miscellaneous income -
- -
--------
- --------
27
24
--------
- --------
Share of loss from Operating
Partnerships (Note D) (251,731)
(158,660)
--------
- --------
Expenses
Partnership management fees 62,721
62,721
General and administrative expenses 23,471
24,973
--------
- --------
86,192
87,694
--------
- --------
NET LOSS $(337,896)
$(246,330)
========
========
Net loss allocated to assignees $(334,517)
$(243,867)
========
========
Net loss allocated to general partner $ (3,379) $
(2,463)
========
========
Net loss per BAC $ (.11) $
(.08)
========
========
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
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 808 $
866
Miscellaneous income -
- -
--------
- --------
808
866
--------
- --------
Share of loss from Operating
Partnerships (Note D) (26,414)
(38,823)
--------
- --------
Expenses
Partnership management fees 9,592
9,592
General and administrative expenses 10,444
11,916
--------
- --------
20,036
21,508
--------
- --------
NET LOSS $ (45,642) $
(59,465)
========
========
Net loss allocated to assignees $ (45,186) $
(58,870)
========
========
Net loss allocated to general partner $ (456) $
(595)
========
========
Net loss per BAC $ (.09) $
(.12)
========
========
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
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 167 $
171
Miscellaneous income -
- -
--------
- --------
167
171
--------
- --------
Share of loss from Operating
Partnerships (Note D) (75,560)
(12,093)
--------
- --------
Expenses
Partnership management fees 36,069
36,069
General and administrative expenses 15,534
16,500
--------
- --------
51,603
52,569
--------
- --------
NET LOSS $(126,996) $
(64,491)
========
========
Net loss allocated to assignees $(125,726) $
(63,846)
========
========
Net loss allocated to general partner $ (1,270) $
(645)
========
========
Net loss per BAC $ (.09) $
(.05)
========
========
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)
1998 1997
---- ----
Income
Interest income $ 2,447 $ 1,443
Miscellaneous income 11 472
---------- ----------
2,458 1,915
---------- ----------
Share of loss from Operating
Partnerships (Note D) (1,558,621)
(1,249,825)
---------- ----------
Expenses
Partnership management fees 451,247 231,758
General and administrative expenses 122,805 28,154
---------- ----------
574,052 259,912
---------- ----------
NET LOSS $(2,130,215)
$(1,507,822)
========== ==========
Net loss allocated to assignees $(2,108,913)
$(1,492,744)
========== ==========
Net loss allocated to general partner $ (21,302) $
(15,078)
========== ==========
Net loss per BAC $ (1.14) $
(.83)
========== ==========
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
- -----------------------
1998
1997
----
- ----
Income
Interest income $ 194 $
415
Miscellaneous income -
1
--------
- --------
194
416
--------
- --------
Share of loss from Operating
Partnerships (Note D) -
(117,749)
--------
- --------
Expenses
Partnership management fees 86,432
84,432
General and administrative expenses 20,911
23,402
--------
- --------
107,343
107,834
--------
- --------
NET LOSS $ (107,149)
$(225,167)
========
========
Net loss allocated to assignees $ (106,078)
$(222,915)
========
========
Net loss allocated to general partner $ (1,071) $
(2,252)
========
========
Net loss per BAC $ (.08) $
(.17)
========
========
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
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 53 $
31
Miscellaneous income -
- -
--------
- --------
53
31
--------
- --------
Share of loss from Operating
Partnerships (Note D) (89,562)
(127,273)
--------
- --------
Expenses
Partnership management fees 32,742
31,742
General and administrative expenses 15,220
17,680
--------
- --------
47,961
49,422
--------
- --------
NET LOSS $(137,471)
$(176,664)
========
========
Net loss allocated to assignees $(136,096)
$(174,897)
========
========
Net loss allocated to general partner $ (1,375) $
(1,767)
========
========
Net loss per BAC $ (.16) $
(.21)
========
========
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
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 172 $
90
Miscellaneous income 11
560
--------
- --------
183
650
--------
- --------
Share of loss from Operating
Partnerships (Note D) (732,858)
(978,676)
--------
- --------
Expenses
Partnership management fees 127,537
127,394
General and administrative expenses 28,761
31,192
--------
- --------
156,298
158,586
--------
- --------
NET LOSS $(888,973)
$(1,136,612)
========
========
Net loss allocated to assignees $(880,083)
$(1,125,246)
========
========
Net loss allocated to general partner $ (8,890) $
(11,366)
========
========
Net loss per BAC $ (.31) $
(.39)
========
========
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
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 34 $
81
Miscellaneous income -
- -
--------
- --------
34
81
--------
- --------
Share of loss from Operating
Partnerships (Note D) (477,600)
(523,905)
--------
- --------
Expenses
Partnership management fees 125,442
125,442
General and administrative expenses 27,941
32,330
--------
- --------
153,383
157,772
--------
- --------
NET LOSS $(630,949)
$(681,596)
========
========
Net loss allocated to assignees $(624,640)
$(674,780)
========
========
Net loss allocated to general partner $ (6,309) $
(6,816)
========
========
Net loss per BAC $ (.21) $
(.22)
========
========
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
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 1,696 $
1,875
Miscellaneous income -
- -
--------
- --------
1,696
1,875
--------
- --------
Share of loss from Operating
Partnerships (Note D) (57,539)
(60,024)
--------
- --------
Expenses
Partnership management fees 19,456
19,456
General and administrative expenses 12,653
13,844
--------
- --------
32,109
33,300
--------
- --------
NET LOSS $ (87,952) $
(91,449)
========
========
Net loss allocated to assignees $ (87,072) $
(90,535)
========
========
Net loss allocated to general partner $ (880) $
(914)
========
========
Net loss per BAC $ (.17) $
(.18)
========
========
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
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 298 $
377
Miscellaneous income -
- -
--------
- --------
298
377
--------
- --------
Share of loss from Operating
Partnerships (Note D) (201,062)
(252,035)
--------
- --------
Expenses
Partnership management fees 59,638
67,138
General and administrative expenses 17,319
19,542
--------
- --------
76,957
86,680
--------
- --------
NET LOSS $(277,721)
$(338,338)
========
========
Net loss allocated to assignees $(274,944)
$(334,955)
========
========
Net loss allocated to general partner $ (2,777) $
(3,383)
========
========
Net loss per BAC $ (.21) $
(.26)
========
========
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, 1998
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Partners' capital (deficit),
April 1, 1998 $16,905,119 $(687,738)
$16,217,381
Net loss (2,108,913) (21,302)
(2,130,215)
---------- --------
- ----------
Partners' capital (deficit),
September 30, 1998 $14,796,206 $(709,040)
$14,087,166
========== ========
==========
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, 1998
(Unaudited)
General
Assignees Partner
Total
--------- -------
- -----
Series 1
- --------
Partners' capital (deficit),
April 1, 1998 $(1,058,979) $(125,064)
$(1,184,043)
Net loss (106,078) (1,071)
(107,149)
--------- -------- --
- --------
Partners' capital (deficit),
September 30, 1998 $(1,165,057) $(126,135)
$(1,291,192)
========= ========
==========
Series 2
- --------
Partners' capital (deficit),
April 1, 1998 $ 1,913,205 $ (50,718)
$1,862,487
Net loss (136,096) (1,375)
(137,471)
--------- -------
- ---------
Partners' capital (deficit),
September 30, 1998 $ 1,777,109 $ (52,093)
$1,725,016
========= =======
=========
Series 3
- --------
Partners' capital (deficit),
April 1, 1998 $ 3,518,368 $(218,919) $
3,299,449
Net loss (880,083) (8,890)
(888,973)
---------- --------
- ----------
Partners' capital (deficit),
September 30, 1998 $ 2,638,285 $(227,809) $
2,410,476
========== ========
==========
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, 1998
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Series 4
- --------
Partners' capital (deficit),
April 1, 1998 $ 7,647,333 $(185,486) $
7,461,847
Net loss (624,640) (6,309)
(630,949)
---------- --------
- ----------
Partners' capital (deficit),
September 30, 1998 $ 7,022,693 $(191,795) $
6,830,898
========== ========
==========
Series 5
- --------
Partners' capital (deficit),
April 1, 1998 $1,259,394 $ (29,451) $
1,229,943
Net loss , (87,072) (880)
(87,952)
--------- -------
- ---------
Partners' capital (deficit),
September 30, 1998 $1,172,322 $ (30,331) $
1,141,991
========= =======
=========
Series 6
- --------
Partners' capital (deficit),
April 1, 1998 $3,625,798 $(78,100)
$3,547,698
Net loss (274,944) (2,777)
(277,721)
--------- --------
- --------
Partners' capital (deficit),
September 30, 1998 $3,350,854 $(80,877)
$3,269,977
========= =======
=========
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)
1998
1997
----
- ----
Cash flows from operating activities:
Net loss $(2,130,215)
$(1,507,822)
Adjustments
Distributions from Operating
Partnerships 9,786
- -
Amortization -
- -
Share of loss from Operating
Partnerships 1,558,621
1,249,825
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 592,894
329,601
Decrease (Increase) in other
assets (40,790)
(78,301)
----------
- ----------
Net cash provided by (used in)
operating activities (9,704)
(6,697)
----------
- ----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (9,704)
(6,697)
Cash and cash equivalents, beginning 176,885
224,629
----------
- ----------
Cash and cash equivalents, ending $ 167,181 $
217,932
==========
==========
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
- -------------------------
1998
1997
----
- ----
Cash flows from operating activities:
Net loss $ (107,149) $
(225,167)
Adjustments
Distributions from Operating
Partnerships -
- -
Amortization -
- -
Share of loss from Operating
Partnerships -
117,749
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 99,273
91,255
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities (7,876)
(16,163)
----------
- ----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (7,876)
(16,163)
Cash and cash equivalents, beginning 15,351
33,374
----------
- ----------
Cash and cash equivalents, ending $ 7,475 $
17,211
==========
==========
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
- -------------------------
1998
1997
----
- ----
Cash flows from operating activities:
Net loss $ (137,471) $
(176,664)
Adjustments
Distributions from Operating
Partnerships -
- -
Amortization -
- -
Share of loss from Operating
Partnerships 89,562
127,273
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 50,943
47,521
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities 3,034
(1,870)
----------
- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 3,034
(1,870)
Cash and cash equivalents, beginning 3,977
3,205
----------
- ----------
Cash and cash equivalents, ending $ 7,011 $
1,335
==========
==========
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
- -------------------------
1998
1997
----
- ----
Cash flows from operating activities:
Net loss $ (888,973)
$(1,136,612)
Adjustments
Distributions from Operating
Partnerships -
2,677
Amortization -
- -
Share of loss from Operating
Partnerships 732,858
978,676
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 146,063
158,110
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities (10,052)
2,851
----------
- ----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (10,052)
2,851
Cash and cash equivalents, beginning 14,333
1,832
----------
- ----------
Cash and cash equivalents, ending $ 4,281 $
4,683
==========
=========
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
- -------------------------
1998
1997
----
- ----
Cash flows from operating activities:
Net loss $ (630,949) $
(681,596)
Adjustments
Distributions from Operating
Partnerships -
- -
Amortization -
- -
Share of loss from Operating
Partnerships 477,600
523,905
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 203,939
228,221
Decrease (Increase) in other
assets (40,790)
(82,501)
---------
- ----------
Net cash provided by (used in)
operating activities 9,800
(11,971)
---------
- ----------
DECREASE IN CASH AND CASH
EQUIVALENTS 9,800
(11,971)
Cash and cash equivalents, beginning 1,955
12,708
---------
- ----------
Cash and cash equivalents, ending $ 11,755 $
737
=========
==========
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
- -------------------------
1998
1997
----
- ----
Cash flows from operating activities:
Net loss $ (87,952) $
(91,449)
Adjustments
Distributions from Operating
Partnerships -
- -
Amortization -
- -
Share of loss from Operating
Partnerships 57,539
60,024
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 19,777
19,728
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities (10,636)
(11,697)
----------
- ----------
DECREASE IN CASH AND CASH
EQUIVALENTS (10,636)
(11,697)
Cash and cash equivalents, beginning 130,957
146,095
----------
- ----------
Cash and cash equivalents, ending $ 120,321 $
134,398
==========
==========
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
- -------------------------
1998
1997
----
- ----
Cash flows from operating activities:
Net loss $ (277,721) $
(338,338)
Adjustments
Distributions from Operating
Partnerships 9,786
- -
Amortization -
- -
Share of loss from Operating
Partnerships 201,062
252,035
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 72,899
72,138
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities 6,026
(14,165)
----------
- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 6,026
(14,165)
Cash and cash equivalents, beginning 10,312
27,415
----------
- ----------
Cash and cash equivalents, ending $ 16,338 $
13,250
==========
==========
The accompanying notes are an integral part of these
statements.
31
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS
September 30, 1998
(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,
1998 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, 1998
(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, 1998 and 1997 as follows:
1998 1997
----- -----
Series 1 $ 416 $ 823
Series 2 1,026 1,846
Series 3 1,109 1,860
Series 4 1,248 1,870
Series 5 501 1,498
Series 6 416 949
------ ------
$ 4,716 $ 8,848
====== ======
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, 1998
and 1997 are
as follows:
1998 1997
---- ----
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, 1998 and
1997 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, 1998
(Unaudited)
NOTE C - RELATED PARTY TRANSACTIONS (continued)
As of September 30, 1998, an affiliate of the general
partner advanced a
total of $258,250 to the Partnership to pay certain operating
expenses of some
of the series. $66,000 of the funds were advanced during the
quarter ended
September 30, 1998. 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, 1998, an affiliate of the general
partner funded
$208,875, interest free, to the Partnership (Series 1 and 4) so
that it could
make three separate loans to the Operating Partnerships Virginia
Circle, Townhomes of Minnehaha, and Van Dyck Estates in the
amounts of $10,419, $3,391, and $195,065, respectively. $3,887
of the funds were advanced during the quarter ended September 30,
1998. The loans to all three Operating Partnerships are being
made to fund operating expenses of the Operating Partnership.
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, 1998 and 1997, 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, 1998 and
1997, 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, 1998.
The combined unaudited summarized statements of operations
of the
Operating Partnerships for the six months ended June 30, 1998 and
1997
are as follows:
34
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 1
- ---------------------------
1998 1997
---- ----
Revenues
Rental $ 2,483,885 $
2,470,980
Interest and other 151,708
110,678
--------- -
- --------
2,635,593
2,581,658
--------- -
- --------
Expenses
Interest 603,947
602,519
Depreciation and amortization 856,626
853,215
Operating expenses 2,041,875
2,147,298
--------- --
- -------
3,502,448
3,603,032
--------- -
- --------
NET LOSS $ (866,855)
$(1,021,374)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ - $
(117,749)
=========
=========
Net loss allocated to other partners $ (8,669) $
(10,214)
=========
=========
Net loss suspended $ (858,186) $
(893,411)
=========
=========
The variance in allowable loss from the Operating Partnerships
for the three months ended September 30, 1998 and 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.
35
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 2
- --------------------------
1998 1997
---- ----
Revenues
Rental $ 672,823 $
654,505
Interest and other 31,108
26,930
---------
- ---------
703,931
681,435
---------
- ---------
Expenses
Interest 212,556
274,618
Depreciation and amortization 180,512
191,202
Operating expenses 509,098
492,075
---------
- ---------
902,166 $
957,895
---------
- ---------
NET LOSS $ (198,235) $
(276,460)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ ( 89,562) $
(127,273)
=========
=========
Net loss allocated to other partners $ (1,982) $
(2,765)
=========
=========
Net loss suspended $ (106,691) $
(146,422)
=========
=========
The variance in allowable loss from the Operating Partnerships
for the six
months ended September 30, 1998 and 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 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, 1998
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 3
- --------------------------
1998 1997
Revenues ---- ----
Rental $ 3,130,624 $
3,095,989
Interest and other 244,493
160,428
---------
- ---------
3,375,117
3,256,417
---------
- ---------
Expenses
Interest 1,112,003
1,213,548
Depreciation and amortization 1,239,471
1,271,375
Operating expenses 2,282,117
2,189,678
---------
- ---------
4,633,591
4,674,601
---------
- ---------
NET LOSS $(1,258,474)
$(1,418,184)
==========
==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (732,858) $
(978,676)
==========
==========
Net loss allocated to other partners $ (12,585) $
(14,182)
==========
==========
Net loss suspended $ (513,031) $
(425,326)
==========
==========
The variance in allowable loss from the Operating Partnerships
for the six
months ended September 30, 1998 and 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.
37
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 4
- ----------------------------
1998 1997
Revenues ---- ----
Rental $ 3,285,481 $
3,212,185
Interest and other 135,818
134,133
----------
- ----------
3,421,299
3,346,318
----------
- ----------
Expenses
Interest 1,298,893
1,287,728
Depreciation and amortization 1,148,953
1,178,973
Operating expenses 2,035,076
1,852,653
----------
- ----------
4,482,922
4,319,354
----------
- ----------
NET LOSS $(1,061,623) $
(973,036)
==========
==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (477,600) $
(523,905)
==========
==========
Net loss allocated to other partners $ (10,616) $
(9,730)
==========
==========
Net loss suspended $ (573,407) $
(439,401)
==========
==========
The variance in allowable loss from the Operating Partnerships
for the six
months ended September 30, 1998 and 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.
38
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 5
- --------------------------
1998 1997
Revenues ---- ----
Rental $ 331,780 $
313,822
Interest and other 33,718
31,924
-------
- --------
365,498
345,746
-------
- --------
Expenses
Interest 128,780
128,523
Depreciation and amortization 119,960
97,685
Operating expenses 239,126
228,970
-------
- --------
487,866
455,178
-------
- --------
NET LOSS $(122,368)
$(109,432)
========
========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (57,539) $
(60,024)
========
========
Net loss allocated to other partners $ (1,224) $
(1,094)
========
========
Net loss suspended $ (63,605) $
(48,314)
========
========
The variance in allowable loss from the Operating Partnerships
for the six
months ended September 30, 1998 and 1998 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, 1998
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 6
- --------------------------
1998 1997
Revenues ---- ----
Rental $2,091,735
$2,000,294
Interest and other 158,656
148,428
---------
- ---------
2,250,391
2,148,722
---------
- ---------
Expenses
Interest 596,857
594,627
Depreciation and amortization 708,084
603,442
Operating expenses 1,311,130
1,217,769
---------
- ---------
2,616,071
2,415,838
---------
- ---------
NET LOSS $ (365,680) $
(267,116)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (201,062) $
(252,035)
=========
=========
Net loss allocated to other partners $ (3,657) $
(2,671)
=========
=========
Net loss suspended $ (160,961) $
(12,410)
=========
=========
The variance in allowable loss from the Operating Partnerships
for the six
months ended September 30, 1998 and 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.
40
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1998
(Unaudited)
NOTE E - TAXABLE LOSS
The Partnership's taxable loss for the fiscal year ended
March
31, 1999 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, 1998 were $238,677 and total partnership management fees
accrued as of
September 30, 1998 were $5,968,121. 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 $258,250 to
the
Partnership to pay certain third party operating expenses.
$66,000 of the funds were advanced in the quarter ended September
30, 1998. The amounts
advanced to four of the six series as are as follows: $61,810 to
Series 1;
$45,000 to Series 2; $102,250 to Series 3; and $258,065 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, 1998 and
1997 the
Partnership had limited partnership equity interests in 105
Operating
Partnerships.
42
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, 1998 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 $7,475 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, 1998 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 $7,011 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, 1998, 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 $4,281 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, 1998 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 $11,755 remains in Working
Capital.
43
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, 1998 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 $120,321 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, 1998 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 $16,338 remains in Working Capital.
Results of Operations
- ---------------------
At September 30, 1998 and 1997 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
44
will be repaid from the sale or refinancing proceeds. The annual
partnership
management fee charged to operations for the quarters ended
September 30, 1998 and 1997 were $232,070 and $231,758,
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, 1998 and 1997, the average
Qualified
Occupancy for the series was 100% and 99.2%, respectively. The
series had a total of 19 properties at September 30, 1998. Out
of the total, 19 were at 100% Qualified Occupancy.
For the six months being reported, the series reflects a net
loss from
Operating Partnerships of $866,855. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflects a net
loss of $10,229. Substantially all of the net loss for both years
is attributable to accrued mortgage interest not payable
currently by Kingston Property Associates (Broadway East
Townhomes), Genesee Commons Associates (River Park Commons), and
Unity Park Associates (Unity Park Phase II). All three Operating
Partnerships have forbearance agreements in place allowing the
property to pay minimal mortgage payments while the property
continues to accrue all interest payments due. Occupancy remains
low due to a lack of rental assistance and a poor local economy.
The properties have received loans from the state housing agency,
which are being used to complete rehabilitation work. The work
is expected to be completed during 1998 and the management
company feels this should have a positive effect on occupancy.
The properties owned by Townhomes of Minnehaha Court
(Minnehaha Court Apartments) and Virginia Circle (Virginia Circle
Townhomes) continued to incur high operating expenses, which have
resulted in operating losses. Minnesota Housing Finance Agency
has continued their commitment to support improved operations by
granting interest free mortgage loans to Townhomes of Minnehaha
(Minnehaha Court Apartments) and Virginia Circle (Virginia Circle
Townhomes) to correct deferred maintenance issues. The
management company has solicited bids to complete the necessary
repairs and the work is ongoing. It is anticipated that the
improvements will allow for a reduction of operating expenses in
the future, which is essential for continued improvement in the
properties' performance.
Series 2.
--------- As of September 30, 1998 and 1997, the average
Qualified
Occupancy for the series was 100% for both years. The series had
a total of eight properties at September 30, 1998 all of which
were at 100% Qualified Occupancy.
45
For the six months being reported the series reflects a net
loss
from the Operating Partnerships of $198,235. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflect a
net loss of
$17,723.
The property owned by Haven Park Partners III, A California
L.P. (Glenhaven Park III) suffers from high operating expenses
and occupancy issues. The management company has said that the
rental market is soft with an over supply of housing. As of
September 30, 1998 physical occupancy was 87%. The management
company will continue to actively conduct outreach to generate
new interest in the property along with working towards reducing
the operating expenses.
The property owned by Haven Park Partners IV, A California
L.P. (Glenhaven Park) continues to suffer from high operating
expenses and occupancy issues. The management company has said
that the rental market is soft with an over supply of housing.
As of September 30, 1998, physical occupancy was 92%. The
management company will continue to actively conduct outreach to
generate new interest in the property along with working towards
reducing the operating expenses.
Annadale Housing Partners (Annadale Apartments) has reported
net losses due to operational issues associated with the
property. Although occupancy has stabilized, economic factors
relevant to the marketplace prevent the necessary rental income
from being generated to cover the operational expenses. The
Operating General Partner has initiated loan restructure
discussions with the first lender. The Investment General
Partner continues to monitor this situation closely. Occupancy
is at 95% as of September 30, 1998.
Series 3.
--------- As of September 30, 1998 and 1997, 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, 1998 of
which 31 were at 100% Qualified Occupancy.
For the six months being reported series reflects a net loss
from the
Operating Partnerships of $1,258,474. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect a net loss
of $19,003.
The Investment General Partner continues to monitor the
operations of Lincoln Hotel Associates (Lincoln Apartments) in an
effort to improve the overall results of operations of the
series. The rehabilitation of the property has been completed.
Winn Management continues to screen prospective tenants. As of
September 30, 1998 the overall physical occupancy of the property
was 83%. The Management Company, with the assistance of area
housing agencies, expects the property to reach 100% occupancy by
year-end. The improvement in occupancy is anticipated to have a
positive effect on net income.
46
The property owned by California Investors VI L.P. (Orchard
Park) continues to suffer from physical occupancy issues.
Occupancy at September 30, 1998 was at 85%. The occupancy
problem appears to be related to the
marketplace, but the management company has replaced the site
manager in hopes that changes in personnel will stimulate new
interest in the property. The management company continues to be
aggressive with marketing the property and conducting active
outreach. The Operating General Partner, with the assistance of
a consultant, is developing a new marketing campaign, which will
be implemented during November of 1998. The curb appeal of the
property has improved with capital repairs completed at the
property in 1997.
The Operating General Partner of Hidden Cove Apartments
(Hidden Cove) is funding the capital improvements plan
established by the new management company. As of the end of
September occupancy had reached 95% Once the repairs are
completed and operations have stabilized the Operating General
Partner will approach the first mortgage holder with a
refinancing plan.
Central Parkway Tower (Central Parkway Towers), has been
experiencing occupancy problems. As of September 30, 1998 the
physical occupancy is at 64%. The low occupancy has resulted in
operating losses, accrued payables, and deferred maintenance.
The property manager is currently trying to increase occupancy by
working with city, state, and federal agencies to expand
referrals and contracts, and restructuring existing subsidies.
Series 4.
--------- As of September 30, 1998 and 1997, the average
Qualified
Occupancy for the series was 100% for both years. The series had
a
total of 25 properties at September 30, 1998, all of which were
at 100%
Qualified Occupancy.
For the six months being reported series reflects a net loss
from
the Operating Partnerships of $1,061,623. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflects
positive operations of $87,330.
Unity Park Associates (Unity Park Phase II) reflects a net
loss, which is attributable to accrued mortgage interest. The
Operating Partnership has a forbearance agreement in place
allowing the property to pay minimal mortgage
payments while the property continues to accrue all interest
payments
due. Occupancy remains low due to a lack of rental assistance
and a
poor local economy. The property has received loans from the
state
housing agency, which are being used to complete rehabilitation
work.
The work is expected to be completed during 1998 and the
management company feels this should have a positive effect on
occupancy.
The Operating Partnership, Van Dyck Estates XVI-A (Van Dyck
Estates XVI-A) continues to pay its delinquent real estate taxes
in accordance with the repayment plan. The Operating General
Partner believes that once these taxes have been paid operating
deficits should be minimal.
47
Central Parkway Tower (Central Parkway Towers), has been
experiencing occupancy problems. As of September 30, 1998 the
physical occupancy is at 64%. The low occupancy has resulted in
operating losses, accrued payables, and deferred maintenance.
The property manager is currently trying to increase occupancy by
working with city, state, and federal agencies to expand
referrals and contracts, and restructuring existing subsidies.
The property owned by Haven Park Partners, A California L.P.
(Glenhaven Park II) continues to suffer from high operating
expenses and occupancy issues. The management company has said
that the rental market is soft with on over supply of housing.
As of September 30, 1998, physical occupancy was 93%. The
management company will continue to actively conduct outreach to
generate new interest in the property along with working towards
reducing the operating expenses.
Series 5.
--------- As of September 30, 1998 and 1997, the average
Qualified
Occupancy for the series was 100% for both years. The series had
a
total of five properties at September 30, 1998, 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 $122,368. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflect a
net loss operations of $2,408.
Annadale Housing Partners (Annadale Apartments) has reported
net losses due to operational issues associated with the
property. Although occupancy has stabilized, economic factors
relevant to the marketplace prevent
the necessary rental income to be generated to cover the
operational expenses. The Operating General Partner has initiated
loan restructure discussions with the first lender. The
Investment General Partner continues to monitor this situation
closely. Occupancy is at 95% as of September 30, 1998.
The property owned by Glenhaven Park Partners, A California
L.P. (Glenhaven Estates) continues to suffer from high operating
expenses and occupancy issues. The management company has said
that the rental market is soft with on over supply of housing.
As of September 30, 1998, physical occupancy was 92%. The
management company will continue to actively conduct outreach to
generate new interest in the property along with working towards
reducing the operating expenses.
Series 6.
--------- As of September 30, 1998 and 1997, the average
Qualified
Occupancy for the series was 99.7% for both years. The series
had a total of 15 properties at September 30, 1998 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 $365,680. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect positive
operations of
$342,404
48
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.
49
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of
1934, the registrant has duly caused this report to be signed on
its
behalf by the undersigned hereunto duly authorized.
BOSTON CAPITAL TAX CREDIT
FUND LIMITED PARTNERSHIP
By: Boston Capital Associates Limited
Partnership, General Partner
By: C&M Associates, d/b/a
Boston Capital Associates
Date: November 9, 1998 By: /s/JOHN P. MANNING
---------------------------
John P. Manning, Partner
Partner & Principal Financial
Officer
50
<TABLE> <S> <C>
<ARTICLE> CT
<CIK> 0000835095
<NAME> BOSTON CAPITAL TAX CREDIT FUND LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-START> APR-01-1998
<PERIOD-END> SEP-30-1998
<TOTAL-ASSETS> 20,559,834
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 20,559,834
<TOTAL-REVENUES> 2,458
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,132,673)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,130,215)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
