FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 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 December 31, 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
December 31,
March 31,
1998
1998
(Unaudited)
(Audited)
------------
- ------------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $18,950,894
$21,247,830
OTHER ASSETS
Cash and cash equivalents 167,204
176,885
Other assets 717,429
672,439
----------
- ----------
$19,835,527
$22,097,154
==========
==========
LIABILITIES
Accounts payable $ 1,000
$ -
Accounts payable - affiliates (Note C) 6,716,469
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 13,836,789
16,905,119
outstanding
General Partner (718,731)
(687,738)
----------
- ----------
13,118,058
16,217,381
----------
- ----------
$19,835,527
$ 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
- ---------------------------
December 31,
March 31,
1998
1998
(Unaudited)
(Audited)
----------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 39,010 $
39,010
OTHER ASSETS
Cash and cash equivalents 6,798
15,351
Other assets 68,113
68,113
--------- -
- --------
$ 113,921 $
122,474
=========
=========
LIABILITIES
Accounts payable $ - $
- -
Accounts payable - affiliates (Note C) 1,451,342
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 (1,210,823)
(1,058,979)
outstanding
General Partner (126,598)
(125,064)
- --------- ---------
(1,337,421)
(1,184,043)
--------- -
- --------
$ 113,921 $
122,474
=========
=========
The accompanying notes are an integral part of these
statements.
2
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 2
- ----------------------------
December 31,
March 31,
1998
1998
ASSETS (Unaudited)
(Audited)
-----------
- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $1,742,270
$1,889,149
OTHER ASSETS
Cash and cash equivalents 6,524
3,977
Other assets 360,285
360,285
---------
- ---------
$2,109,079
$2,253,411
=========
=========
LIABILITIES
Accounts payable $ - $
- -
Accounts payable - affiliates (Note C) 459,699
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 1,702,229
1,913,205
General Partner (52,849)
(50,718)
---------
- ---------
1,649,380
1,862,487
---------
- ---------
$2,109,079
$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
- ----------------------------
December 31,
March 31,
1998
1998
ASSETS (Unaudited)
(Audited)
-----------
- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $3,820,636
$4,858,313
OTHER ASSETS
Cash and cash equivalents 4,742
14,333 Other assets
41,861 41,861
---------
- ---------
$3,867,239
$4,914,507
=========
=========
LIABILITIES
Accounts payable $ 1,000 $
- -
Accounts payable - affiliates (Note C) 1,827,964
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 2,269,806
3,518,368
General Partner (231,531)
(218,919)
---------
- ---------
2,038,275
3,299,449
- --------- ---------
$3,867,239
$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
- ----------------------------
December 31,
March 31,
1998
1998
(Unaudited)
(Audited)
------------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 8,000,768 $
8,752,503
OTHER ASSETS
Cash and cash equivalents 13,433
1,955 Other assets
214,057 169,067
---------- -
- ---------
$ 8,228,258 $
8,923,525
==========
==========
LIABILITIES
Accounts payable $ - $
- -
Accounts payable - affiliates (Note C) 1,732,948
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 6,690,461
7,647,333
General Partner (195,151)
(185,486)
---------- -
- ---------
6,495,310
7,461,847 ---
- ------- ----------
$ 8,228,258 $
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
- ----------------------------
December 31 ,
March 31,
1998
1998
(Unaudited)
(Audited)
------------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $1,089,625
$1,173,153
OTHER ASSETS
Cash and cash equivalents 119,866
130,957
Other assets 33,113
33,113
---------
- ---------
$1,242,604
$1,337,223
=========
=========
LIABILITIES
Accounts payable $ - $
- -
Accounts payable - affiliates (Note C) 136,872
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 1,136,425
1,259,394
General Partner (30,693)
(29,451)
---------
- ---------
1,105,732
1,229,943
---------
- ---------
$1,242,604
$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
- ----------------------------
December 31,
March 31,
1998
1998
(Unaudited)
(Audited)
------------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $4,258,585
$4,535,702
OTHER ASSETS
Cash and cash equivalents 15,841
10,312
Other assets -
- -
---------
- ---------
$4,274,426
$4,546,014
=========
=========
LIABILITIES
Accounts payable $ - $
- -
Accounts payable - affiliates (Note C) 1,107,644
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 3,248,691
3,625,798
General Partner (81,909)
(78,100)
---------
- ---------
3,166,782
3,547,698
---------
- ---------
$4,274,426
$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 December 31,
(Unaudited)
1998 1997
---- ----
Income
Interest income $ 1,046 $ 1,146
Miscellaneous income - -
---------- ----------
1,046 1,146
---------- ----------
Share of loss from Operating
Partnerships (Note D) (728,530)
(1,138,689)
---------- ----------
Expenses
Professional fees 2,174 -
Partnership management fees 233,677 233,203
General and administrative expenses 6,690 18,508
---------- ----------
242,541 251,711
---------- ----------
NET LOSS $ (970,025)
$(1,389,254)
========== ==========
Net loss allocated to assignees $ (960,325)
$(1,375,361)
========== ==========
Net loss allocated to general partner $ (9,700) $
(13,893)
========== ==========
Net loss per BAC $ (.50) $
(.70)
========== ==========
The accompanying notes are an integral part of these
statements.
8
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
SERIES 1
- -----------------------
1998
1997
----
- ----
Income
Interest income $ 40 $
113
Miscellaneous income -
- -
--------
- --------
40
113
--------
- --------
Share of loss from Operating
Partnerships (Note D) -
- -
--------
- --------
Expenses
Professional fees 309
- -
Partnership management fees 45,216
45,216
General and administrative expenses 873
2,161
--------
- --------
46,398
47,377
--------
- --------
NET LOSS $ (46,358) $
(47,264)
========
========
Net loss allocated to assignees $ (45,894) $
(46,791)
========
========
Net loss allocated to general partner $ (464) $
(473)
========
========
Net loss per BAC $ (.04) $
(.04)
========
========
The accompanying notes are an integral part of these
statements.
9
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
SERIES 2
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 38 $
5
Miscellaneous income -
- -
--------
- --------
38
5
--------
- --------
Share of loss from Operating
Partnerships (Note D) (57,315)
(40,521)
--------
- --------
Expenses
Professional fees 232
- -
Partnership management fees 17,310
17,310
General and administrative expenses 906
2,286
--------
- --------
18,448
19,596
--------
- --------
NET LOSS $ (75,725) $
(60,112)
========
========
Net loss allocated to assignees $ (74,968) $
(59,511)
========
========
Net loss allocated to general partner $ (757) $
(601)
========
========
Net loss per BAC $ (.09) $
(.07)
========
========
The accompanying notes are an integral part of these
statements.
10
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
SERIES 3
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 37 $
26
Miscellaneous income -
- -
--------
- --------
37
26
--------
- --------
Share of loss from Operating
Partnerships (Note D) (304,820)
(443,807)
--------
- --------
Expenses
Professional Fees 646
- -
Partnership management fees 65,497
65,023
General and administrative expenses 1,564
4,681
--------
- --------
67,707
69,704
--------
- --------
NET LOSS $(372,490)
$(513,485)
========
========
Net loss allocated to assignees $(368,765)
$(508,350)
========
========
Net loss allocated to general partner $ (3,725) $
(5,135)
========
========
Net loss per BAC $ (.12) $
(.18)
========
========
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 $ 91 $
- -
Miscellaneous income -
- -
--------
- --------
91
- -
--------
- --------
Share of loss from Operating
Partnerships (Note D) (274,137)
(521,090)
--------
- --------
Expenses
Professional fees 582
- -
Partnership management fees 59,721
59,721
General and administrative expenses 1,497
4,442
--------
- --------
61,800
64,163
--------
- --------
NET LOSS $(335,846)
$(585,253)
========
========
Net loss allocated to assignees $(332,488)
$(579,400)
========
========
Net loss allocated to general partner $ (3,358) $
(5,853)
========
========
Net loss per BAC $ (.11) $
(.20)
========
========
The accompanying notes are an integral part of these
statements.
12
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
SERIES 5
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 744 $
916
Miscellaneous income -
- -
--------
- --------
744
916
--------
- --------
Share of loss from Operating
Partnerships (Note D) (25,990)
(39,214)
--------
- --------
Expenses
Professional fees 146
- -
Partnership management fees 9,864
9,864
General and administrative expenses 1,052
3,318
--------
- --------
11,062
13,182
--------
- --------
NET LOSS $ (36,308) $
(51,480)
========
========
Net loss allocated to assignees $ (35,945) $
(50,965)
========
========
Net loss allocated to general partner $ (363) $
(515)
========
========
Net loss per BAC $ (.07) $
(.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 December 31,
(Unaudited)
SERIES 6
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 96 $
86
Miscellaneous income -
- -
--------
- --------
96
86
--------
- --------
Share of loss from Operating
Partnerships (Note D) (66,268)
(94,057)
--------
- --------
Expenses
Professional fees 259
- -
Partnership management fees 36,069
36,069
General and administrative expenses 798
1,620
--------
- --------
37,126
37,689
--------
- --------
NET LOSS $(103,298)
$(131,660)
========
========
Net loss allocated to assignees $(102,265)
$(130,343)
========
========
Net loss allocated to general partner $ (1,033) $
(1,317)
========
========
Net loss per BAC $ (.07) $
(.10)
========
========
The accompanying notes are an integral part of these
statements.
14
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
1998 1997
---- ----
Income
Interest income $ 3,501 $ 4,019
Miscellaneous income - 560
---------- ----------
3,501 4,579
---------- ----------
Share of loss from Operating
Partnerships (Note D) (2,287,150)
(3,198,351)
---------- ----------
Expenses
Professional Fees 86,476 -
Partnership management fees 684,925 688,807
General and administrative expenses 44,273 156,503
---------- ----------
815,674
(845,310)
---------- ----------
NET LOSS $(3,099,323)
$(4,039,082)
========== ==========
Net loss allocated to assignees $(3,068,330)
$(3,998,692)
========== ==========
Net loss allocated to general partner $ (30,993) $
(40,390)
========== ==========
Net loss per BAC $ (1.65) $
(2.14)
========== ==========
The accompanying notes are an integral part of these
statements.
15
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 1
- -----------------------
1998
1997
----
- ----
Income
Interest income $ 234 $
529
Miscellaneous income -
- -
--------
- --------
234
529
--------
- --------
Share of loss from Operating
Partnerships (Note D) -
(117,749)
--------
- --------
Expenses
Professional Fees 16,361
- -
Partnership management fees 131,648
129,648
General and administrative expenses 5,603
25,564
--------
- --------
153,612
155,212
--------
- --------
NET LOSS $ (153,378) $
(272,432)
========
==========
Net loss allocated to assignees $ (151,844) $
(269,708)
========
==========
Net loss allocated to general partner $ (1,534) $
(2,724)
========
==========
Net loss per BAC $ (.11) $
(.21)
========
==========
The accompanying notes are an integral part of these
statements.
16
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 2
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 90 $
37
Miscellaneous income -
- -
--------
- --------
90
37
--------
- --------
Share of loss from Operating
Partnerships (Note D) (146,877)
(167,794)
--------
- --------
Expenses
Professional fees 10,699
- -
Partnership management fees 50,053
49,052
General and administrative expenses 5,568
19,968
--------
- --------
66,320
69,020
--------
- --------
NET LOSS $(213,107)
$(236,777)
========
========
Net loss allocated to assignees $(210,976)
$(234,409)
========
========
Net loss allocated to general partner $ (2,131) $
(2,368)
========
========
Net loss per BAC $ (.25) $
(.29)
========
========
The accompanying notes are an integral part of these
statements.
17
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 3
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 220 $
117
Miscellaneous income -
560
--------
- --------
220
677
--------
- --------
Share of loss from Operating
Partnerships (Note D) (1,037,678)
(1,422,483)
--------
- --------
Expenses
Professional Fees 18,438
- -
Partnership management fees 193,034
192,417
General and administrative expenses 12,244
35,874
--------
- --------
223,716
228,291
--------
- --------
NET LOSS $(1,261,174)
$(1,650,097)
==========
==========
Net loss allocated to assignees $(1,248,562)
$(1,633,596)
==========
==========
Net loss allocated to general partner $ (12,612) $
(16,501)
==========
==========
Net loss per BAC $ (.43) $
(.57)
==========
==========
The accompanying notes are an integral part of these
statements.
18
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 4
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 124 $
81
Miscellaneous income -
- -
--------
- --------
124
81
--------
- --------
Share of loss from Operating
Partnerships (Note D) (751,737)
(1,044,995)
--------
- --------
Expenses
Professional fees 18,354
- -
Partnership management fees 185,163
185,163
General and administrative expenses 11,407
36,772
--------
- --------
214,924
221,935
--------
- --------
NET LOSS $(966,537)
$(1,266,849)
========
==========
Net loss allocated to assignees $(956,872)
$(1,254,181)
========
==========
Net loss allocated to general partner $ (9,665) $
(12,668)
========
==========
Net loss per BAC $ (.32) $
(.42)
========
==========
The accompanying notes are an integral part of these
statements.
19
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 5
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 2,440 $
2,791
Miscellaneous income -
- -
--------
- --------
2,440
2,791
--------
- --------
Share of loss from Operating
Partnerships (Note D) (83,528)
(99,238)
--------
- --------
Expenses
Professional fees 9,138
- -
Partnership management fees 29,320
29,320
General and administrative expenses 4,665
17,162
--------
- --------
43,123
46,482
--------
- --------
NET LOSS $(124,211)
$(142,929)
========
========
Net loss allocated to assignees $(122,969)
$(141,500)
========
========
Net loss allocated to general partner $ (1,242) $
(1,429)
========
========
Net loss per BAC $ (.25) $
(.29)
========
========
The accompanying notes are an integral part of these
statements.
20
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 6
- ----------------------
1998
1997
----
- ----
Income
Interest income $ 393 $
464
Miscellaneous income -
- -
--------
- --------
393
464
--------
- --------
Share of loss from Operating
Partnerships (Note D) (267,330)
(346,092)
--------
- --------
Expenses
Professional fees 13,486
- -
Partnership management fees 95,707
103,207
General and administrative expenses 4,786
21,163
--------
- --------
113,979
124,370
--------
- --------
NET LOSS $(380,916)
$(469,998)
========
========
Net loss allocated to assignees $(377,107)
$(465,298)
========
========
Net loss allocated to general partner $ (3,809) $
(4,700)
========
========
Net loss per BAC $ (.29) $
(.36)
========
========
The accompanying notes are an integral part of these
statements.
21
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Nine Months Ended December 31, 1998
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Partners' capital (deficit),
April 1, 1998 $16,905,119 $(687,738)
$16,217,381
Net loss (3,068,330) (30,993)
(3,099,323)
---------- --------
- ----------
Partners' capital (deficit),
December 31, 1998 $13,836,789 $(718,731)
$13,118,058
========== ========
==========
The accompanying notes are an integral part of these
statements.
22
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Nine Months Ended December 31, 1998
(Unaudited)
General
Assignees Partner
Total
--------- -------
- -----
Series 1
- --------
Partners' capital (deficit),
April 1, 1998 $(1,058,979) $(125,064)
$(1,184,043)
Net loss (151,844) (1,534)
(153,378)
--------- -------- --
- --------
Partners' capital (deficit),
December 31, 1998 $(1,210,823) $(126,598)
$(1,337,421)
========= ========
==========
Series 2
- --------
Partners' capital (deficit),
April 1, 1998 $ 1,913,205 $ (50,718)
$1,862,487
Net loss (210,976) (2,131)
(213,107)
--------- -------
- ---------
Partners' capital (deficit),
December 31, 1998 $ 1,702,229 $ (52,849)
$1,649,380
========= =======
=========
Series 3
- --------
Partners' capital (deficit),
April 1, 1998 $ 3,518,368 $(218,919) $
3,299,449
Net loss (1,248,562) (12,612)
(1,261,174)
---------- --------
- ----------
Partners' capital (deficit),
December 31, 1998 $ 2,269,806 $(231,531) $
2,038,275
========== ========
==========
The accompanying notes are an integral part of these
statements.
23
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Nine Months Ended December 31, 1998
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Series 4
- --------
Partners' capital (deficit),
April 1, 1998 $ 7,647,333 $(185,486) $
7,461,847
Net loss (956,872) (9,665)
(966,537)
---------- --------
- ----------
Partners' capital (deficit),
December 31, 1998 $ 6,690,461 $(195,151) $
6,495,310
========== ========
=========
Series 5
- --------
Partners' capital (deficit),
April 1, 1998 $1,259,394 $ (29,451) $
1,229,943
Net loss , (122,969) (1,242)
(124,211)
--------- -------
- ---------
Partners' capital (deficit),
December 31, 1998 $1,136,425 $ (30,693) $
1,105,732
========= =======
=========
Series 6
- --------
Partners' capital (deficit),
April 1, 1998 $3,625,798 $(78,100)
$3,547,698
Net loss (377,107) (3,809)
(380,916)
--------- ------ ------
- ---
Partners' capital (deficit),
December 31, 1998 $3,248,691 $(81,909)
$3,166,782
========= =======
=========
The accompanying notes are an integral part of these
statements.
24
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
1998
1997
----
- ----
Cash flows from operating activities:
Net loss $(3,099,323)
$(4,039,082)
Adjustments
Distributions from Operating
Partnerships 9,788
3,056
Amortization -
- -
Share of loss from Operating
Partnerships 2,287,150
3,198,351
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 837,694
885,148
Decrease (Increase) in other
assets (44,990)
(108,110)
----------
- ----------
Net cash provided by (used in)
operating activities (9,681)
(60,637)
----------
- ----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (9,681)
(60,637)
Cash and cash equivalents, beginning 176,885
224,629
----------
- ----------
Cash and cash equivalents, ending $ 167,204 $
163,992
==========
==========
The accompanying notes are an integral part of these
statements.
25
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 1
- -------------------------
1998
1997
----
- ----
Cash flows from operating activities:
Net loss $ (153,378) $
(272,432)
Adjustments
Distributions from Operating
Partnerships -
- -
Amortization -
- -
Share of loss from Operating
Partnerships -
117,749
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 144,825
150,658
Decrease (Increase) in other
assets -
(13,809)
----------
- ----------
Net cash provided by (used in)
operating activities (8,553)
(17,834)
----------
- ----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (8,553)
(17,834)
Cash and cash equivalents, beginning 15,351
33,374
----------
- ----------
Cash and cash equivalents, ending $ 6,798 $
15,540
==========
==========
The accompanying notes are an integral part of these
statements.
26
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 2
- -------------------------
1998
1997
----
- ----
Cash flows from operating activities:
Net loss $ (213,107) $
(236,777)
Adjustments
Distributions from Operating
Partnerships -
- -
Amortization -
- -
Share of loss from Operating
Partnerships 146,877
167,794
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 68,777
65,909
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities 2,547
(3,074)
----------
- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 2,547
(3,074)
Cash and cash equivalents, beginning 3,977
3,205
----------
- ----------
Cash and cash equivalents, ending $ 6,524 $
131
==========
==========
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 $(1,261,174)
$(1,650,097)
Adjustments
Distributions from Operating
Partnerships -
3,056
Amortization -
- -
Share of loss from Operating
Partnerships 1,037,678
1,422,483
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 213,905
226,761
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities (9,591)
2,203
----------
- ----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (9,591)
2,203
Cash and cash equivalents, beginning 14,333
1,832
----------
- ----------
Cash and cash equivalents, ending $ 4,742 $
4,035
==========
=========
The accompanying notes are an integral part of these
statements.
28
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 4
- -------------------------
1998
1997
----
- ----
Cash flows from operating activities:
Net loss $ (966,537)
$(1,266,849)
Adjustments
Distributions from Operating
Partnerships -
- -
Amortization -
- -
Share of loss from Operating
Partnerships 751,737
1,044,995
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 271,268
304,021
Decrease (Increase) in other
assets (44,990)
(94,301)
---------
- ----------
Net cash provided by (used in)
operating activities 11,478
(12,134)
---------
- ----------
DECREASE IN CASH AND CASH
EQUIVALENTS 11,478
(12,134)
Cash and cash equivalents, beginning 1,955
12,708
---------
- ----------
Cash and cash equivalents, ending $ 13,433 $
574
=========
==========
The accompanying notes are an integral part of these
statements.
29
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 5
- -------------------------
1998
1997
----
- ----
Cash flows from operating activities:
Net loss $ (124,211) $
(142,929)
Adjustments
Distributions from Operating
Partnerships -
- -
Amortization -
- -
Share of loss from Operating
Partnerships 83,528
99,238
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 29,592
29,592
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities (11,091)
(14,099)
----------
- ----------
DECREASE IN CASH AND CASH
EQUIVALENTS (11,091)
(14,099)
Cash and cash equivalents, beginning 130,957
146,095
----------
- ----------
Cash and cash equivalents, ending $ 119,866 $
131,996
==========
==========
The accompanying notes are an integral part of these
statements.
30
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 6
- -------------------------
1998
1997
----
- ----
Cash flows from operating activities:
Net loss $ (380,916) $
(469,998)
Adjustments
Distributions from Operating
Partnerships 9,788
- -
Amortization -
- -
Share of loss from Operating
Partnerships 267,330
346,092
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 109,327
108,207
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities 5,529
(15,699)
----------
- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 5,529
(15,699)
Cash and cash equivalents, beginning 10,312
27,415
----------
- ----------
Cash and cash equivalents, ending $ 15,841 $
11,716
==========
==========
The accompanying notes are an integral part of these
statements.
31
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS
December 31, 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
December 31,
1998 and for the nine months then ended have been prepared by the
Partnership, without audit, pursuant to the rules and regulations
of the
Securities and Exchange Commission. The Partnership accounts for
its
investments in Operating Partnerships using the equity method,
whereby the
Partnership adjusts its investment cost for its share of each
Operating
Partnership's results of operations and for any distributions
received or
accrued. Costs incurred by the Partnership in acquiring the
investments in
Operating Partnerships are capitalized to the investment account.
The
Partnership's accounting and financial reporting policies are in
conformity
with generally accepted accounting principles and include
adjustments in
interim periods considered necessary for a fair presentation of
the results of
operations. Such adjustments are of a normal recurring nature.
Certain
information and footnote disclosures normally included in
financial statements
prepared in accordance with generally accepted accounting
principles have been
condensed or omitted pursuant to such rules and regulations. It
is suggested
32
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 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 December 31, 1998 and 1997 as follows:
1998 1997
----- -----
Series 1 $ 873 $ 579
Series 2 906 1,116
Series 3 1,564 446
Series 4 1,497 483
Series 5 1,052 334
Series 6 798 260
------ ------
$ 6,690 $ 3,218
====== ======
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 Decembr 31, 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 December 31, 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
December 31, 1998
(Unaudited)
NOTE C - RELATED PARTY TRANSACTIONS (continued)
As of December 31, 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. None of the funds were advanced during the
quarter ended
December 31, 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 December 31, 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 $199,265, respectively. $4,200
of the funds were advanced during the quarter ended December 31,
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 December 31, 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 December 31, 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 nine months ended December 31, 1998.
The combined unaudited summarized statements of operations
of the
Operating Partnerships for the nine months ended December 31,
1998 and 1997
are as follows:
34
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1998
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 1
- ---------------------------
1998 1997
---- ----
Revenues
Rental $ 3,743,681 $
3,706,249
Interest and other 204,759
136,604
--------- -
- --------
3,948,440
3,842,853
--------- -
- --------
Expenses
Interest 882,421
894,584
Depreciation and amortization 1,273,520
1,283,508
Operating expenses 3,036,220
3,079,050
--------- --
- -------
5,192,161
5,257,142
--------- -
- --------
NET LOSS $(1,243,721)
$(1,414,289)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ 0 $
(117,749)
=========
=========
Net loss allocated to other partners $ (12,437) $
(14,143)
=========
=========
Net loss suspended $(1,231,284)
$(1,282,397)
=========
=========
The variance in allowable loss from the Operating Partnerships
for the nine months ended December 31, 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
December 31, 1998
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 2
- --------------------------
1998 1997
---- ----
Revenues
Rental $ 1,007,293 $
978,445
Interest and other 51,548
48,281
---------
- ---------
1,058,841
1,026,726
---------
- ---------
Expenses
Interest 318,197
467,014
Depreciation and amortization 289,651
269,831
Operating expenses 781,177
737,832
---------
- ---------
1,389,024 $
1,474,677
---------
- ---------
NET LOSS $ (330,183) $
(447,951)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (146,877) $
(167,794)
=========
=========
Net loss allocated to other partners $ (3,302) $
(4,480)
=========
=========
Net loss suspended $ (180,004) $
(275,677)
=========
=========
The variance in allowable loss from the Operating Partnerships
for the nine
months ended December 31, 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
December 31, 1998
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 3
- --------------------------
1998 1997
Revenues ---- ----
Rental $ 4,725,112 $
4,595,895
Interest and other 354,234
235,989
---------
- ---------
5,079,346
4,831,884
---------
- ---------
Expenses
Interest 1,775,719
1,831,570
Depreciation and amortization 1,854,350
1,904,502
Operating expenses 3,332,434
3,199,362
---------
- ---------
6,962,503
6,935,434
---------
- ---------
NET LOSS $(1,883,157)
$(2,103,550)
==========
==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $(1,037,678)
$(1,422,483)
==========
==========
Net loss allocated to other partners $ (18,832) $
(21,036)
==========
==========
Net loss suspended $ (826,647) $
(660,031)
==========
==========
The variance in allowable loss from the Operating Partnerships
for the nine
months ended December 31, 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
December 31, 1998
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 4
- ----------------------------
1998 1997
Revenues ---- ----
Rental $ 4,881,294 $
4,603,630
Interest and other 205,532
203,886
----------
- ----------
5,086,826
4,807,516
----------
- ----------
Expenses
Interest 1,997,669
1,925,643
Depreciation and amortization 1,725,521
1,770,242
Operating expenses 3,050,801
2,785,947
----------
- ----------
6,773,991
6,481,832
----------
- ----------
NET LOSS $(1,687,165)
$(1,674,316)
==========
==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (751,737)
$(1,044,995)
==========
==========
Net loss allocated to other partners $ (16,872) $
(16,743)
==========
==========
Net loss suspended $ (918,556) $
(612,578)
==========
==========
The variance in allowable loss from the Operating Partnerships
for the nine
months ended December 31, 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
December 31, 1998
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 5
- --------------------------
1998 1997
Revenues ---- ----
Rental $ 493,991 $
474,229
Interest and other 50,457
44,190
-------
- --------
544,448
518,419
-------
- --------
Expenses
Interest 192,991
190,405
Depreciation and amortization 179,939
137,088
Operating expenses 361,326
361,190
-------
- --------
734,256
688,683
-------
- --------
NET LOSS $(189,808)
$(170,264)
========
========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (83,528) $
(99,238)
========
========
Net loss allocated to other partners $ (1,898) $
(1,703)
========
========
Net loss suspended $(104,382) $
(69,323)
========
========
The variance in allowable loss from the Operating Partnerships
for the nine
months ended December 31, 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
December 31, 1998
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 6
- --------------------------
1998 1997
Revenues ---- ----
Rental $3,140,413
$3,042,708
Interest and other 199,914
197,270
---------
- ---------
3,340,327
3,239,978
---------
- ---------
Expenses
Interest 890,423
878,362
Depreciation and amortization 1,019,185
909,268
Operating expenses 1,932,019
1,816,852
---------
- ---------
3,841,627
3,604,482
---------
- ---------
NET LOSS $ (501,300) $
(364,504)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (267,330) $
(346,092)
=========
=========
Net loss allocated to other partners $ (5,013) $
(3,645)
=========
=========
Net loss suspended $ (228,957) $
(14,767)
=========
=========
The variance in allowable loss from the Operating Partnerships
for the nine
months ended December 31, 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
December 31, 1998
(Unaudited)
NOTE E - TAXABLE LOSS
The Partnership's taxable loss for the year ended
December 31, 1999 is expected to differ from its loss for
financial reporting purposes for the year ended March 31, 1999.
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 December 31, 1998 were $238,677 and total partnership
management fees accrued as of
December 31, 1998 were $6,206,797. 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. None
of the funds were advanced in the quarter ended December 31,
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 $262,265 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 December 31, 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 December 31, 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 $6,798 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 December 31, 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 $6,524 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 December 31, 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 $4,742 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 December 31, 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
43
Partnerships in an aggregate amount of $21,868,519, and the
Partnership had
completed payment of all its capital contributions. Series 4 net
offering proceeds in the amount of $13,433 remains in Working
Capital.
Series 5.
--------- The Partnership received and accepted
subscriptions for
$4,899,000, representing 489,900 from investors admitted as BAC
Holders in
Series 5. Offers and sales of BACs in Series 5 were completed and
the last of
the BACs in Series 5 were issued by the Partnership on August 22,
1989.
Proceeds from the sale of BACs in Series 5 were invested in
Operating
Partnerships owning apartment complexes located in California
only, which
generate both California and Federal Housing Tax Credits. Offers
and sales of
BACs in Series 5 were completed and the last of the BACs in
Series 5 were
issued by the Partnership on August 22, 1989.
As of December 31, 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 $119,866 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 December 31, 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 $15,841 remains in Working Capital.
Results of Operations
- ---------------------
At December 31, 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
44
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
fee will be repaid from the sale or refinancing proceeds. The
annual partnership
management fee charged to operations for the quarters ended
December 31, 1998 and 1997 were $233,677 and $223,203,
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 December 31, 1998 and 1997, the average
Qualified
Occupancy for the series was 100% and 99.7%, respectively. The
series had a total of 19 properties at December 31, 1998. Out of
the total, 19 were at 100% Qualified Occupancy.
For the nine months being reported, the series reflects a net
loss from
Operating Partnerships of $1,243,721. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflects a net
loss of $29,799. Substantially all of the net loss for both years
is attributable to accrued mortgage interest not currently
payable 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. This rehab
is ongoing and loan proceeds will continue to fund repairs until
the moneys are exhausted. The management company feels these
repairs should have a positive effect on occupancy.
The properties owned by Townhomes of Minnehaha Court
(Minnehaha Court Apartments) and Virginia Circle (Virginia Circle
Townhomes) have shown improved operating results but continue to
incur high operating expenses, which have resulted in operating
deficits. Minnesota Housing Finance Agency has continued their
commitment to support improved operations by granting interest
free mortgage loans to Townhomes of Minnehaha and Virginia Circle
to correct deferred maintenance issues. Work on most of the
deferred maintenance items has been performed. The management
company continues to complete the remaining list of
repairs/improvements as weather permits. 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.
45
Series 2.
--------- As of December 31, 1998 and 1997, the average
Qualified
Occupancy for the series was 100% for both years. The series had
a total of eight properties at December 31, 1998 all of which
were at 100% Qualified Occupancy.
For the nine months being reported the series reflects a net
loss
from the Operating Partnerships of $330,183. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflect a
net loss of
$40,532.
The properties owned by Haven Park Partners III, A
California L.P. (Glenhaven Park III) and Haven Park Partners IV,
A California L.P. (Glenhaven Park IV) continue to suffer from
high operating expenses and occupancy issues. The management
company has said that the rental market is poor with an over
supply of housing. As of December 31, 1998 physical occupancy at
the two properties were 80% and 75%, respectively. The
management company will continue to actively conduct outreach to
generate new interest in the properties along with working
towards reducing the operating expenses. The Investment General
Partner is also working with the Operating General Partner in
developing a capital needs plan to assess what can be done to the
properties in hopes of improving occupancy levels.
Annadale Housing Partners (Kingsview Manor & Estates) 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
rental rates at the property were increased during the last
quarter of 1998, the Operating General Partner anticipates that
this will have a positive effect on overall cash flow for the
property. In a step to cut costs even further the Operating
General Partner has initiated loan restructure discussions with
the first lender for more favorable terms. The Investment
General Partner continues to monitor this situation closely.
Occupancy is at 92% as of December 31, 1998.
Series 3.
--------- As of December 31, 1998 and 1997, the average
Qualified
Occupancy for the series was 99.3% and 99.8%, respectively. The
series had a total of 33 properties at December 31, 1998 of which
31 were at 100% Qualified Occupancy.
For the nine months being reported series reflects a net
loss from the
Operating Partnerships of $1,883,157. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect a net loss
of $28,807.
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. A recent rehabilitation of the property has been
completed and should assist in attracting new tenants. As of
December 31, 1998 the overall physical occupancy of the property
was 96%. The management company, with the assistance of area
housing agencies and a
46
more thorough screening process, has greatly improved occupancy
rates. The improvement in occupancy is anticipated to have a
positive effect on net income.
The property owned by California Investors VI L.P. (Orchard
Park) continues to suffer from physical occupancy issues.
Occupancy at December 31, 1998 was at 88%. 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 a
better approach to renting units at 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, has developed a new
marketing campaign, which was implemented during the last quarter
of 1998. In addition, a large recreation facility is expected to
be built adjacent to the property at the end of 1999. Once this
park is opened, it is expected to enhance the appeal of Orchard
Park Apartments to families.
The Operating General Partner of Hidden Cove Apartments
(Hidden Cove) continues to incur operating deficits due to high
operating expenses. The Operating General Partner is funding a
capital improvement plan established by the new management
company in hopes of improving the property's appeal. Average
occupancy at the property remains at 95%. At this time, the
Operating General Partner is working with the management company
to develop the 1999 budget and an updated capital improvement
plan. In addition, the Operating General Partner has begun to
approach several local lenders regarding refinancing the
properties permanent loan.
Central Parkway Tower (Central Parkway Towers), continues
to experience occupancy problems. As of December 31, 1998 the
physical occupancy is at 61%. The low occupancy continues to
result in operating deficits, 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 December 31, 1998 and 1997, the average
Qualified
Occupancy for the series was 100% for both years. The series had
a
total of 25 properties at December 31, 1998, all of which were at
100%
Qualified Occupancy.
For the nine months being reported series reflects a net loss
from
the Operating Partnerships of $1,687,165. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflects
positive operations of $38,356.
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. This rehab is ongoing and proceeds will continue to fund
repairs until the moneys
47
are exhausted. The management company feels these repairs 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 final installment of
delinquent real estate taxes will be due in April. The Operating
General Partner believes that once these taxes have been paid
operating deficits should be minimal. The property continues to
operate at nearly 100% occupancy every month.
Central Parkway Tower (Central Parkway Towers), continues
to experience occupancy problems. As of December 31, 1998 the
physical occupancy is at 61%. The low occupancy continues to
result in operating deficits, 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) continue to suffer from high operating
expenses and occupancy issues. The management company has said
that the rental market is poor with on over supply of housing.
As of December 31, 1998, physical occupancy was 78%. 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 Investment General Partner
is also working with the Operating General Partner in developing
a capital needs plan to assess what can be done to the property
in hopes of improving occupancy levels.
Series 5.
--------- As of December 31, 1998 and 1997, the average
Qualified
Occupancy for the series was 100% for both years. The series had
a
total of five properties at December 31, 1998, all of which were
at 100%
Qualified Occupancy.
For the nine months being reported the series reflects a net
loss
from the Operating Partnerships of $189,808. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflect a
net loss operations of $9,869.
Annadale Housing Partners (Kingsview Manor & Estates) 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 rental rates at the property were
increased during the last quarter of 1998, the Operating General
Partner anticipates that this will have a positive effect on
overall cash flow for the property. In a step to cut costs even
further the Operating General Partner has initiated loan
restructure discussions with the first lender for more favorable
terms. The Investment General Partner continues to monitor this
situation closely. Occupancy is at 92% as of December 31, 1998.
48
The property owned by Glenhaven Park Partners, A California
L.P. (Glenhaven Estates) continue to suffer from high operating
expenses and occupancy issues. The management company has said
that the rental market is poor with on over supply of housing.
As of December 31, 1998, physical occupancy was 83%. 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 Investment General Partner
is also working with the Operating General Partner to develop a
capital needs plan to assess what can be done to the property in
hopes of improving occupancy levels.
Series 6.
--------- As of December 31, 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 December 31, 1998 of which 14
were at 100% Qualified Occupancy.
For the nine months being reported the series reflects a net
loss from
the Operating Partnerships of $501,300. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect positive
operations of
$517,885.
Year 2000
---------
As previously stated in the Fund's 10-k, Boston Capital and
its management have reviewed the potential computer problems that
may arise from the century date change known as the "Year 2000"
or "Y2K" problem. We are currently in the process of taking the
necessary precautions to minimize any disruptions. The majority
of Boston Capital's systems are "Y2K" compliant. For all
remaining systems we have contacted the vendors to provide us
with the necessary upgrades and replacements. Boston Capital is
committed to ensuring that the "Y2K" issue will have no impact on
our investors.
49
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.
50
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of
1934, the registrant has duly caused this report to be signed on
its
behalf by the undersigned hereunto duly authorized.
BOSTON CAPITAL TAX CREDIT
FUND LIMITED PARTNERSHIP
By: Boston Capital Associates Limited
Partnership, General Partner
By: C&M Associates, d/b/a
Boston Capital Associates
Date: February 18, 1998 By: /s/JOHN P. MANNING
---------------------------
John P. Manning, Partner
Partner & Principal Financial
Officer
51
<TABLE> <S> <C>
<ARTICLE> CT
<CIK> 0000835095
<NAME> BOSTON CAPITAL TAX CREDIT FUND LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-START> APR-01-1998
<PERIOD-END> DEC-31-1998
<TOTAL-ASSETS> 19835527
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 19835527
<TOTAL-REVENUES> 3501
<INCOME-TAX> 0
<INCOME-CONTINUING> (3102824)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (3099323)
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
