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, 1999
--------------------
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, 1999
-----------------------------------------------
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,
1999
1999
(Unaudited)
(Audited)
------------
- ------------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $11,623,281
$12,964,520
OTHER ASSETS
Cash and cash equivalents 140,322
160,135
Other assets 744,533
721,229
----------
- ----------
$12,508,136
$13,845,884
==========
==========
LIABILITIES
Accounts payable $ -
$ -
Accounts payable - affiliates (Note C) 7,533,826
6,969,091
----------
- ----------
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 5,774,478
7,657,936
outstanding
General Partner (800,168)
(781,143)
----------
- ----------
4,974,310
6,876,793
----------
- ----------
$12,508,136
$13,845,884
==========
==========
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,
1999
1999
(Unaudited)
(Audited)
----------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 14,752 $
22,969
OTHER ASSETS
Cash and cash equivalents 3,265
6,640
Other assets 68,113
68,113
--------- -
- --------
$ 86,130 $
97,722
=========
=========
LIABILITIES
Accounts payable $ - $
- -
Accounts payable - affiliates (Note C) 1,605,139
1,497,650
--------- --
- -------
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 (1,390,595)
(1,272,705)
outstanding
General Partner (128,414)
(127,223)
- --------- ---------
(1,519,009)
(1,399,928)
--------- -
- --------
$ 86,130 $
97,722
=========
=========
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,
1999
1999
ASSETS (Unaudited)
(Audited)
-----------
- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 649,687 $
731,325
OTHER ASSETS
Cash and cash equivalents 6,920
5,497
Other assets 360,285
360,285
---------
- ---------
$1,016,892
$1,097,107
=========
=========
LIABILITIES
Accounts payable $ - $
- -
Accounts payable - affiliates (Note C) 526,130
479,154
---------
- ---------
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 555,197
681,116
General Partner (64,435)
(63,163)
---------
- ---------
490,762
617,953
---------
- ---------
$1,016,892
$1,097,107
=========
=========
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,
1999
1999
ASSETS (Unaudited)
(Audited)
-----------
- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 730,435
$1,289,310
OTHER ASSETS
Cash and cash equivalents 1,515
2,331 Other assets 41,661
41,861
---------
- ---------
$ 773,611
$1,333,502
=========
=========
LIABILITIES
Accounts payable $ - $
- -
Accounts payable - affiliates (Note C) 2,052,662
1,898,749
---------
- ---------
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 (1,014,347)
(307,681)
General Partner (264,704)
(257,566)
---------
- ---------
(1,279,051)
(565,247)
- --------- ---------
$ 773,611
$1,333,502
=========
=========
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,
1999
1999
(Unaudited)
(Audited)
------------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 6,124,307 $
6,648,529
OTHER ASSETS
Cash and cash equivalents 1,191
10,320 Other assets
241,361 217,857
---------- -
- ---------
$ 6,366,859 $
6,876,706
==========
==========
LIABILITIES
Accounts payable $ - $
- -
Accounts payable - affiliates (Note C) 1,964,648
1,801,996
---------- -
- ---------
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 4,618,293
5,284,067
General Partner (216,082)
(209,357)
---------- -
- ---------
4,402,211
5,074,710 ---
- ------- ----------
$ 6,366,859 $
6,876,706
==========
==========
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,
1999
1999
(Unaudited)
(Audited)
------------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 563,541 $
598,143
OTHER ASSETS
Cash and cash equivalents 109,589
118,832
Other assets 33,113
33,113
---------
- ---------
$ 706,243 $
750,088
=========
=========
LIABILITIES
Accounts payable $ - $
- -
Accounts payable - affiliates (Note C) 166,464
146,736
---------
- ---------
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 576,132
639,069
General Partner (36,353)
(35,717)
---------
- ---------
539,779
603,352
---------
- ---------
$ 706,243 $
750,088
========= =========
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,
1999
1999
(Unaudited)
(Audited)
------------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $3,540,559
$3,674,244
OTHER ASSETS
Cash and cash equivalents 17,842
16,515
Other assets -
- -
---------
- ---------
$3,558,401
$3,690,759
=========
=========
LIABILITIES
Accounts payable $ - $
- -
Accounts payable - affiliates (Note C) 1,218,783
1,144,806
- --------- ---------
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 2,429,798
2,634,070
General Partner (90,180)
(88,117)
---------
- ---------
2,339,618
2,545,953
---------
- ---------
$3,558,401
$3,690,759
=========
=========
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)
1999 1998
---- ----
Income
Interest income $ 1,009 $ 1,193
Miscellaneous income 10 -
---------- ----------
1,019 1,193
---------- ----------
Share of loss from Operating
Partnerships (Note D) (541,113)
(768,033)
---------- ----------
Expenses
Professional fees 72,050 -
Partnership management fees (Note C) 238,677 232,070
General and administrative expenses 14,472 104,085
---------- ----------
325,199 336,155
---------- ----------
NET LOSS $ (865,293)
$(1,102,995)
========== ==========
Net loss allocated to assignees $ (856,640)
$(1,091,966)
========== ==========
Net loss allocated to general partner $ (8,653) $
(11,029)
========== ==========
Net loss per BAC $ (.47) $
(.56)
========== ==========
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
- -----------------------
1999
1998
----
- ----
Income
Interest income $ 65 $
85
Miscellaneous income -
- -
--------
- --------
65
85
--------
- --------
Share of loss from Operating
Partnerships (Note D) (8,070)
- -
--------
- --------
Expenses
Professional fees 12,560
- -
Partnership management fees (Note C) 45,216
45,216
General and administrative expenses 1,841
18,700
--------
- --------
59,617
63,916
--------
- --------
NET LOSS $ (67,622) $
(63,831)
========
========
Net loss allocated to assignees $ (66,946) $
(63,193)
========
========
Net loss allocated to general partner $ (676) $
(638)
========
========
Net loss per BAC $ (.05) $
(.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 September 30,
(Unaudited)
SERIES 2
- ----------------------
1999
1998
----
- ----
Income
Interest income $ 73 $
34
Miscellaneous income -
- -
--------
- --------
73
34
--------
- --------
Share of loss from Operating
Partnerships (Note D) (30,480)
(36,523)
--------
- --------
Expenses
Professional fees 9,075
- -
Partnership management fees (Note C) 17,310
15,432
General and administrative expenses 1,829
13,070
--------
- --------
28,214
28,502
--------
- --------
NET LOSS $ (58,621) $
(64,991)
========
========
Net loss allocated to assignees $ (58,035) $
(64,341)
========
========
Net loss allocated to general partner $ (586) $
(650)
========
========
Net loss per BAC $ (.06) $
(.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 September 30,
(Unaudited)
SERIES 3
- ----------------------
1999
1998
----
- ----
Income
Interest income $ 79 $
72
Miscellaneous income -
- -
--------
- --------
79
72
--------
- --------
Share of loss from Operating
Partnerships (Note D) (131,952)
(377,805)
--------
- --------
Expenses
Professional Fees 15,700
- -
Partnership management fees (Note C) 67,497
63,040
General and administrative expenses 4,159
22,866
--------
- --------
87,356
85,906
--------
- --------
NET LOSS $(219,229)
$(463,639)
========
========
Net loss allocated to assignees $(217,037)
$(459,003)
========
========
Net loss allocated to general partner $ (2,192) $
(4,636)
========
========
Net loss per BAC $ (.07) $
(.16)
========
========
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
- ----------------------
1999
1998
----
- ----
Income
Interest income $ 80 $
27
Miscellaneous income -
- -
--------
- --------
80
27
--------
- --------
Share of loss from Operating
Partnerships (Note D) (251,364)
(251,731)
--------
- --------
Expenses
Professional fees 15,380
- -
Partnership management fees (Note C) 62,721
62,721
General and administrative expenses 3,805
23,471
--------
- --------
81,906
86,192
--------
- --------
NET LOSS $(333,190)
$(337,896)
========
========
Net loss allocated to assignees $(329,858)
$(334,517)
========
========
Net loss allocated to general partner $ (3,332) $
(3,379)
========
========
Net loss per BAC $ (.11) $
(.11)
========
========
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
- ----------------------
1999
1998
----
- ----
Income
Interest income $ 576 $
808
Miscellaneous income -
- -
- -------- --------
576
808
--------
- --------
Share of loss from Operating
Partnerships (Note D) (31,620)
(26,414)
--------
- --------
Expenses
Professional fees 7,600
- -
Partnership management fees (Note C) 9,864
9,592
General and administrative expenses 1,200
10,444
--------
- --------
18,664
20,036
--------
- --------
NET LOSS $ (49,708) $
(45,642)
========
========
Net loss allocated to assignees $ (49,211) $
(45,186)
========
========
Net loss allocated to general partner $ (497) $
(456)
========
========
Net loss per BAC $ (.09) $
(.09)
========
========
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
- ----------------------
1999
1998
----
- ----
Income
Interest income $ 136 $
167
Miscellaneous income 10
- -
--------
- --------
146
167
--------
- --------
Share of loss from Operating
Partnerships (Note D) (87,627)
(75,560)
--------
- --------
Expenses
Professional fees 11,735
- -
Partnership management fees (Note C) 36,069
36,069
General and administrative expenses 1,638
15,534
--------
- --------
49,442
51,603
--------
- --------
NET LOSS $(136,923)
$(126,996)
========
========
Net loss allocated to assignees $(135,554)
$(125,726)
========
========
Net loss allocated to general partner $ (1,369) $
(1,270)
========
========
Net loss per BAC $ (.09) $
(.09)
========
========
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)
1999 1998
---- ----
Income
Interest income $ 1,863 $ 2,447
Miscellaneous income 10 11
---------- ----------
1,873 2,458
---------- ----------
Share of loss from Operating
Partnerships (Note D) (1,338,050)
(1,558,621)
---------- ----------
Expenses
Professional fees 72,050 -
Partnership management fees (Note C) 456,027 451,247
General and administrative expenses 38,229 122,805
---------- ----------
566,306 574,052
---------- ----------
NET LOSS $(1,902,483)
$(2,130,215)
========== ==========
Net loss allocated to assignees $(1,883,458)
$(2,108,913)
========== ==========
Net loss allocated to general partner $ (19,025) $
(21,302)
========== ==========
Net loss per BAC $ (.94) $
(1.14)
========== ==========
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
- -----------------------
1999
1998
----
- ----
Income
Interest income $ 85 $
194
Miscellaneous income -
- -
--------
- --------
85
194
--------
- --------
Share of loss from Operating
Partnerships (Note D) (9,614)
- -
--------
- --------
Expenses
Professional fees 12,560
- -
Partnership management fees (Note C) 91,432
86,432
General and administrative expenses 5,560
20,911
--------
- --------
109,552
107,343
--------
- --------
NET LOSS $ (119,081)
$(107,149)
========
========
Net loss allocated to assignees $ (117,890)
$(106,078)
========
========
Net loss allocated to general partner $ (1,191) $
(1,071)
========
========
Net loss per BAC $ (.09) $
(.08)
========
========
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
- ----------------------
1999
1998
----
- ----
Income
Interest income $ 97 $
53
Miscellaneous income -
- -
--------
- --------
97
53
--------
- --------
Share of loss from Operating
Partnerships (Note D) (80,839)
(89,562)
--------
- --------
Expenses
Professional fees 9,075
- -
Partnership management fees (Note C) 32,742
32,742
General and administrative expenses 4,632
15,220
--------
- --------
46,449
47,961
--------
- --------
NET LOSS $(127,191)
$(137,471)
========
========
Net loss allocated to assignees $(125,919)
$(136,096)
========
========
Net loss allocated to general partner $ (1,272) $
(1,375)
========
========
Net loss per BAC $ (.13) $
(.16)
========
========
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
- ----------------------
1999
1998
----
- ----
Income
Interest income $ 94 $
172
Miscellaneous income -
11
--------
- --------
94
183
--------
- --------
Share of loss from Operating
Partnerships (Note D) (557,847)
(732,858)
--------
- --------
Expenses
Professional Fees 15,700
- -
Partnership management fees (Note C) 129,944
127,537
General and administrative expenses 10,407
28,761
--------
- --------
156,051
156,298
--------
- --------
NET LOSS $(713,804)
$(888,973)
========
========
Net loss allocated to assignees $(706,666)
$(880,083)
========
========
Net loss allocated to general partner $ (7,138) $
(8,890)
========
========
Net loss per BAC $ (.24) $
(.31)
========
========
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
- ----------------------
1999
1998
----
- ----
Income
Interest income $ 131 $
34
Miscellaneous income -
- -
--------
- --------
131
34
--------
- --------
Share of loss from Operating
Partnerships (Note D) (524,220)
(477,600)
--------
- --------
Expenses
Professional fees 15,380
- -
Partnership management fees (Note C) 122,815
125,442
General and administrative expenses 10,215
27,941
--------
- --------
148,410
153,383
--------
- --------
NET LOSS $(672,499)
$(630,949)
========
========
Net loss allocated to assignees $(665,774)
$(624,640)
========
========
Net loss allocated to general partner $ (6,725) $
(6,309)
========
========
Net loss per BAC $ (.22) $
(.21)
========
========
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
- ----------------------
1999
1998
----
- ----
Income
Interest income $ 1,216 $
1,696
Miscellaneous income -
- -
- -------- --------
1,216
1,696
--------
- --------
Share of loss from Operating
Partnerships (Note D) (34,602)
(57,539)
--------
- --------
Expenses
Professional fees 7,600
- -
Partnership management fees (Note C) 19,456
19,456
General and administrative expenses 3,131
12,653
--------
- --------
30,187
32,109
--------
- --------
NET LOSS $ (63,573) $
(87,952)
========
========
Net loss allocated to assignees $ (62,937) $
(87,072)
========
========
Net loss allocated to general partner $ (636) $
(880)
========
========
Net loss per BAC $ (.12) $
(.17)
========
========
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
- ----------------------
1999
1998
----
- ----
Income
Interest income $ 240 $
298
Miscellaneous income 10
- -
--------
- --------
250
298
--------
- --------
Share of loss from Operating
Partnerships (Note D) (130,928)
(201,062)
--------
- --------
Expenses
Professional fees 11,735
- -
Partnership management fees (Note C) 59,638
59,638
General and administrative expenses 4,284
17,319
--------
- --------
75,657
76,957
--------
- --------
NET LOSS $(206,335)
$(277,721)
========
========
Net loss allocated to assignees $(204,272)
$(274,944)
========
========
Net loss allocated to general partner $ (2,063) $
(2,777)
========
========
Net loss per BAC $ (.14) $
(.21)
========
========
The accompanying notes are an integral part of these
statements.
21
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Six Months Ended September 30, 1999
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Partners' capital (deficit),
April 1, 1999 $ 7,657,936 $(781,143) $
6,876,793
Net loss (1,883,458) (19,025)
(1,902,483)
---------- --------
- ----------
Partners' capital (deficit),
September 30, 1999 $ 5,774,478 $(800,168) $
4,974,310
========== ========
==========
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, 1999
(Unaudited)
General
Assignees Partner
Total
--------- -------
- -----
Series 1
- --------
Partners' capital (deficit),
April 1, 1999 $(1,272,705) $(127,223)
$(1,399,928)
Net loss (117,890) (1,191)
(119,081)
--------- -------- --
- --------
Partners' capital (deficit),
September 30, 1999 $(1,390,595) $(128,414)
$(1,519,009)
========= ========
==========
Series 2
- --------
Partners' capital (deficit),
April 1, 1999 $ 681,116 $ (63,163) $
617,953
Net loss (125,919) (1,272)
(127,191)
--------- -------
- ---------
Partners' capital (deficit),
September 30, 1999 $ 555,197 $ (64,435) $
490,762
========= =======
=========
Series 3
- --------
Partners' capital (deficit),
April 1, 1999 $ (307,681) $(257,566) $
(565,247)
Net loss (706,666) (7,138)
(713,804)
---------- --------
- ----------
Partners' capital (deficit),
September 30, 1999 $(1,014,347) $(264,704)
$(1,279,051)
========== ========
==========
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, 1999
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Series 4
- --------
Partners' capital (deficit),
April 1, 1999 $ 5,284,067 $(209,357) $
5,074,710
Net loss (665,774) (6,725)
(672,499)
---------- --------
- ----------
Partners' capital (deficit),
September 30, 1999 $ 4,618,293 $(216,082) $
4,402,211
========== ========
=========
Series 5
- --------
Partners' capital (deficit),
April 1, 1999 $ 639,069 $ (35,717) $
603,352
Net loss , (62,937) (636)
(63,573)
--------- -------
- ---------
Partners' capital (deficit),
September 30, 1999 $ 576,132 $ (36,353) $
539,779
========= =======
=========
Series 6
- --------
Partners' capital (deficit),
April 1, 1999 $2,634,070 $ (88,117) $
2,545,953
Net loss (204,272) (2,063)
(206,335)
--------- ------ -----
- ----
Partners' capital (deficit),
September 30, 1999 $2,429,798 $ (90,180)
$2,339,618
========= =======
=========
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)
1999
1998
----
- ----
Cash flows from operating activities:
Net loss $(1,902,483)
$(2,130,215)
Adjustments
Distributions from Operating
Partnerships 3,192
9,786
Amortization -
- -
Share of loss from Operating
Partnerships 1,338,050
1,558,621
Changes in assets and liabilities
Increase (Decrease) in accounts,
payable 564,732
592,894
Decrease (Increase) in other
assets (23,304)
(40,790)
----------
- ----------
Net cash provided by (used in)
operating activities (19,813)
(9,704)
----------
- ----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (19,813)
(9,704)
Cash and cash equivalents, beginning 160,135
176,885
----------
- ----------
Cash and cash equivalents, ending $ 140,322 $
167,181
==========
==========
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
- -------------------------
1999
1998
----
- ----
Cash flows from operating activities:
Net loss $ (119,081) $
(107,149) Adjustmets
Distributions from Operating
Partnerships (1,397)
- -
Amortization -
- -
Share of loss from Operating
Partnerships 9,614
- -
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 107,489
99,273
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities (3,375)
(7,876)
----------
- ----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (3,375)
(7,876)
Cash and cash equivalents, beginning 6,640
15,351
----------
- ----------
Cash and cash equivalents, ending $ 3,265 $
7,475
==========
==========
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
- -------------------------
1999
1998
----
- ----
Cash flows from operating activities:
Net loss $ (127,191) $
(137,471)
Adjustments
Distributions from Operating
Partnerships 800
- -
Amortization -
- -
Share of loss from Operating
Partnerships 80,839
89,562
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 46,975
50,943
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities 1,423
3,034
----------
- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 1,423
3,034
Cash and cash equivalents, beginning 5,497
3,977
----------
- ----------
Cash and cash equivalents, ending $ 6,920 $
7,011
==========
==========
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
- -------------------------
1999
1998
----
- ----
Cash flows from operating activities:
Net loss $ (713,804) $
(888,973)
Adjustments
Distributions from Operating
Partnerships 1,029
- -
Amortization -
- -
Share of loss from Operating
Partnerships 557,847
732,858
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 153,912
146,063
Decrease (Increase) in other
assets 200
- -
----------
- ----------
Net cash provided by (used in)
operating activities (816)
(10,052)
----------
- ----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (816)
(10,052)
Cash and cash equivalents, beginning 2,331
14,333
----------
- ----------
Cash and cash equivalents, ending $ 1,515 $
4,281
==========
=========
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
- -------------------------
1999
1998
----
- ----
Cash flows from operating activities:
Net loss $ (672,499) $
(630,949)
Adjustments
Distributions from Operating
Partnerships -
- -
Amortization -
- -
Share of loss from Operating
Partnerships 524,220
477,600
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 162,654
203,939
Decrease (Increase) in other
assets (23,504)
(40,790)
---------
- ----------
Net cash provided by (used in)
operating activities (9,129)
9,800
---------
- ----------
DECREASE IN CASH AND CASH
EQUIVALENTS (9,129)
9,800
Cash and cash equivalents, beginning 10,320
1,955
---------
- ----------
Cash and cash equivalents, ending $ 1,191 $
11,755
=========
==========
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
- -------------------------
1999
1998
----
- ----
Cash flows from operating activities:
Net loss $ (63,573) $
(87,952)
Adjustments
Distributions from Operating
Partnerships -
- -
Amortization -
- -
Share of loss from Operating
Partnerships 34,602
57,539
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 19,728
19,777
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities (9,243)
(10,636)
----------
- ----------
DECREASE IN CASH AND CASH
EQUIVALENTS (9,243)
(10,636)
Cash and cash equivalents, beginning 118,832
130,957
----------
- ----------
Cash and cash equivalents, ending $ 109,589 $
120,321
==========
==========
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
- -------------------------
1999
1998
----
- ----
Cash flows from operating activities:
Net loss $ (206,335) $
(277,721)
Adjustments
Distributions from Operating
Partnerships 2,760
9,786
Amortization -
- -
Share of loss from Operating
Partnerships 130,928
201,062
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 73,974
72,899
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities 1,327
6,026
----------
- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 1,327
6,026
Cash and cash equivalents, beginning 16,515
10,312
----------
- ----------
Cash and cash equivalents, ending $ 17,842 $
16,338
==========
==========
The accompanying notes are an integral part of these
statements.
31
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS
September 30, 1999
(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,
1999 and for the three months then ended have been prepared by
the
Partnership, without audit, pursuant to the rules and regulations
of the
Securities and Exchange Commission. The Partnership accounts for
its
investments in Operating Partnerships using the equity method,
whereby the
Partnership adjusts its investment cost for its share of each
Operating
Partnership's results of operations and for any distributions
received or
accrued. Costs incurred by the Partnership in acquiring the
investments in
Operating Partnerships are capitalized to the investment account.
The
Partnership's accounting and financial reporting policies are in
conformity
with generally accepted accounting principles and include
adjustments in
interim periods considered necessary for a fair presentation of
the results of
operations. Such adjustments are of a normal recurring nature.
Certain
information and footnote disclosures normally included in
financial statements
prepared in accordance with generally accepted accounting
principles have been
condensed 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, 1999
(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.
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, 1999 and 1998 as follows:
1999 1998
----- -----
Series 1 $ 1,841 $ 2,211
Series 2 1,829 2,149
Series 3 4,159 5,896
Series 4 3,805 4,470
Series 5 1,200 2,210
Series 6 1,638 1,785
------ ------
$14,472 $18,721
====== ======
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. The partnership management fee accrued for the
quarters ended September 30, 1999 and 1998 are as follows:
1999 1998
---- ----
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, 1999 and
1998 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.
33
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1999
(Unaudited)
NOTE C - RELATED PARTY TRANSACTIONS (continued)
As of September 30, 1999, an affiliate of the general
partner advanced a
total of $549,629 to the Partnership to pay certain operating
expenses of the Partnership, and make advances and/or loans to
Operating Partnerships. $51,000 of the funds were advanced
during the quarter ended September 30, 1999. Below is a table
that breaks down by series the advances made to date.
1999
-------
Series 1 $ 68,113
Series 2 55,000
Series 3 118,250
Series 4 299,569
-------
$549,629
=======
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.
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS
At September 30, 1999 and 1998, 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, 1999 and
1998, all
capital contributions had been paid.
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, 1999.
The combined unaudited summarized statements of operations
of the
Operating Partnerships for the six months ended June 30, 1999 and
1998
are as follows:
34
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 1
- ---------------------------
1999 1998
---- ----
Revenues
Rental $ 2,570,501 $
2,483,885
Interest and other 122,339
151,708
--------- -
- --------
2,692,840
2,635,593
--------- -
- --------
Expenses
Interest 585,096
603,947
Depreciation and amortization 945,741
856,626
Operating expenses 2,089,753
2,041,875
--------- --
- -------
3,620,590
3,502,448
--------- -
- --------
NET LOSS $ (927,751) $
(866,855)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (9,614) $
- -
=========
=========
Net loss allocated to other partners $ (9,278) $
(8,669)
=========
=========
Net loss suspended $ (908,859) $
(858,186)
=========
=========
The variance in allowable loss from the Operating Partnerships
for the three months ended June 30, 1999 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.
35
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 2
- --------------------------
1999 1998
---- ----
Revenues
Rental $ 680,029 $ 672,823
Interest and other 36,513
31,108
---------
- ---------
716,541
703,931
---------
- ---------
Expenses
Interest 212,364
212,556
Depreciation and amortization 215,973
180,512
Operating expenses 539,730
509,098
---------
- ---------
968,067
902,166
---------
- ---------
NET LOSS $ (251,526) $
(198,235)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (80,839) $
(89,562)
=========
=========
Net loss allocated to other partners $ (2,515) $
(1,982)
=========
=========
Net loss suspended $ (168,172) $
(106,691)
=========
=========
The variance in allowable loss from the Operating Partnerships
for the six
months ended June 30, 1999 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 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, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 3
- --------------------------
1999 1998
Revenues ---- ----
Rental $ 3,340,174 $
3,130,624
Interest and other 179,639
244,493
---------
- ---------
3,519,812
3,375,117
---------
- ---------
Expenses
Interest 1,111,732
1,112,003
Depreciation and amortization 1,210,829
1,239,471
Operating expenses 2,458,177
2,282,117
---------
- ---------
4,780,738
4,633,591
---------
- ---------
NET LOSS $(1,260,925)
$(1,258,474)
==========
==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (557,847) $
(732,858)
==========
==========
Net loss allocated to other partners $ (12,609) $
(12,585)
==========
==========
Net loss suspended $ (690,469) $
(513,031)
==========
==========
The variance in allowable loss from the Operating Partnerships
for the six
months ended June 30, 1999 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.
37
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 4
- ----------------------------
1999 1998
Revenues ---- ----
Rental $ 3,263,256 $
3,285,481
Interest and other 148,369
135,818
----------
- ----------
3,411,625
3,421,299
----------
- ----------
Expenses
Interest 1,312,083
1,298,893
Depreciation and amortization 1,122,081
1,148,953
Operating expenses 2,207,865
2,035,076
----------
- ----------
4,642,029
4,482,922
----------
- ----------
NET LOSS $(1,230,404)
$(1,061,623)
==========
==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (524,220) $
(477,600)
==========
==========
Net loss allocated to other partners $ (12,304) $
(10,616)
==========
==========
Net loss suspended $ (693,880) $
(573,407)
==========
==========
The variance in allowable loss from the Operating Partnerships
for the six
months ended June 30, 1999 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.
38
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 5
- --------------------------
1999 1998
Revenues ---- ----
Rental $ 332,680 $
331,780
Interest and other 33,009
33,718
-------
- --------
365,689
365,498
-------
- --------
Expenses
Interest 114,681
128,780
Depreciation and amortization 114,067
119,960
Operating expenses 249,519
239,126
-------
- --------
478,267
487,866
-------
- --------
NET LOSS $(112,578)
$(122,368)
========
========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (34,602) $
(57,539)
========
========
Net loss allocated to other partners $ (1,126) $
(1,224)
========
========
Net loss suspended $ (76,850) $
(63,605)
========
========
The variance in allowable loss from the Operating Partnerships
for the six
months ended June 30, 1999 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, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 6
- --------------------------
1999 1998
Revenues ---- ----
Rental $2,205,423
$2,091,735
Interest and other 112,826
158,656
---------
- ---------
2,318,249
2,250,391
---------
- ---------
Expenses
Interest 803,834
596,857
Depreciation and amortization 620,606
708,084
Operating expenses 1,243,852
1,311,130
---------
- ---------
2,668,292
2,616,071
---------
- ---------
NET LOSS $ (350,043) $
(365,680)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (130,928) $
(201,062)
=========
=========
Net loss allocated to other partners $ (3,500) $
(3,657)
=========
=========
Net loss suspended $ (215,615) $
(160,961)
=========
=========
The variance in allowable loss from the Operating Partnerships
for the six
months ended June 30, 1999 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.
40
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1999
(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, 2000.
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, 1999 were $238,677 and total partnership
management fees accrued as of
September 30, 1999 were $6,922,828. Pursuant to the Partnership
Agreement,
such liabilities will be deferred until the Partnership receives
sales or
refinancing proceeds from Operating Partnerships, which will be
used to
satisfy such liabilities.
The Partnership has recorded $610,998 as payable to
affiliates. This represents advances to pay certain third party
operating expenses of the Partnership, make advances and/or loans
to Operating Partnerships, and accrued overhead allocations. The
breakout between series are: $82,902 in series 1, $70,300 in
series 2, $140,341 in series 3, $312,995 in series 4, none in
series 5, and $4,460 in series 6. These and any future advances
or accruals will be paid, without interest, from available cash
flow, reporting fees, or proceeds of sales or refinancing of the
Partnership's interest in Operating Partnerships.
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
9,740,300
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, 1999 and
1998 the
Partnership had limited partnership equity interests in 105
Operating
Partnerships.
42
Capital Resources (continued)
- -----------------
As of September 30, 1999 the Partnership had $140,322 in
remaining net offering proceeds. Below is a table, which
provides, by series, the equity raised, number of BAC's sold,
final date BAC's were offered, number of properties invested in,
and remaining proceeds.
Final Number of
Proceeds Series Equity BAC's Close Date
Properties Remaining
- ------ ----------- --------- ---------- ----------
- ---------
1 $12,999,000 1,299,900 12/18/88 19
$ 3,265
2 $ 8,303,000 830,000 03/30/89 8
$ 6,920
3 $28,822,000 2,822,200 03/14/89 33
$ 1,515
4 $29,788,160 2,995,300 07/07/89 25
$ 1,191
5 $ 4,899,000 489,900 08/22/89 5
$109,589
6 $12,935,780 1,303,000 09/29/89 15
$ 17,842
----------- --------- ---
- -------
$97,746,940 9,740,300 105
$140,322
=========== ========= ===
=======
43
Results of Operations
- ---------------------
At September 30, 1999 and 1998 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
fee will be repaid from sale or refinancing proceeds. The annual
partnership management fee charged to operations for the quarters
ended September 30, 1999 and 1998 were $238,677 and $232,070,
respectively.
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, 1999 and 1998, the average
Qualified
Occupancy for the series was 100%. The series had a total of 19
properties at September 30, 1999, all of which were at 100%
Qualified Occupancy.
For the six months being reported, the series reflects a net
loss from
Operating Partnerships of $927,751. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect a positive
operations of $17,990. While overall operations are being
reported, there are a few properties that are generating net
losses. Substantially all of the net loss 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. At the current time only Genesse
Commons, with an average occupancy of 91% for the first quarter
of 1999, has begun making partial mortgage payments. All three
properties have received loans
44
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.
Although the repairs have had a positive financial impact on both
Kingston and Genesee Commons, Unity Park Associates remains
unable to support itself without substantial loans from the
general partner. As a result, the Operating General Partner is
considering deeding the property back to the New York State
Housing Finance Agency. The Investment General Partner is
working to find developers in the area who may have an interest
in stepping in and assuming the General Partnership interest.
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. All of the exterior
items at each property have been completed and the remaining
maintenance items will be completed as units turnover. 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, 1999 and 1998, the average
Qualified
Occupancy for the series was 100% for both years. The series had
a total of eight properties at September 30, 1999 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 $251,526. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflect a
net loss of
$35,553.
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 compared to operating income. In an
attempt to reduce operating expenses a not-for-profit company is
being sought to provide tenant services, coordinate leasing and
community outreach, and also reduce the real estate tax burden.
As a result of repairs to unit interiors, occupancy levels have
improved. At September 30, 1999 physical occupancy at Haven Park
III was 100%. Occupancy at Haven Park IV was 92%, with the only
vacant unit prepared for occupancy, it is anticipated the unit
should be rented in November 1999. Additional deferred
maintenance issues are budgeted for completion in this years
business plan. The scope of work includes exterior painting,
limited siding replacement, and fence repairs. The work will not
effect occupancy, but will prevent further physical
deterioration, and help preserve the asset.
Annadale Housing Partners (Kingsview Manor & Estates) has
reported net losses due to operational issues associated with the
property. In order to address these issues, the Operating
General Partner has hired a consultant to assist management in
aggressively marketing the property. In addition, the management
agent has hired a new on-site manager and leasing agent. As a
result of these changes, occupancy reached 97% as of September
30, 1999.
45
The rental rates at the property were increased during the
quarter. 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. These talks are
currently ongoing and the outcome cannot be determined at this
time. The Investment General Partner continues to monitor this
situation closely.
Series 3.
--------- As of September 30, 1999 and 1998, the average
Qualified
Occupancy for the series was 99.7% for both years. The series
had a total of 33 properties at September 30, 1999 of which 31
were at 100% Qualified Occupancy.
For the six months being reported series reflects a net loss
from the
Operating Partnerships of $1,260,925. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect a net loss
of $50,096.
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 has assisted in attracting new
tenants. As of September 30, 1999 the overall physical occupancy
of the property was 90%. The management company, with the
assistance of area housing agencies and
more thorough screening process, has greatly improved occupancy
rates. The improved occupancy along with expense reductions
resulted in a net income for the nine month period ended
September 30, 1999 of $48,825 as compared to the net loss of
$83,748 recorded for the same period of 1998. The property's net
cash flow for the nine month period of 1999 was $20,955 as
compared to the loss of $100,740 recorded for the same period of
1998.
The property owned by California Investors VI LP (Orchard
Park) reached physical occupancy of 94% as of September 1999.
The increased occupancy is the result of the management company's
aggressive marketing efforts and the many capital improvements
completed at the property, including office renovations and the
addition of an activity center. These improvements have been
successful in attracting and retaining tenants. 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 further enhance the appeal of Orchard Park Apartments
to families.
Hidden Cove Apartments (Hidden Cove) continues to incur
operating deficits due to high operating expenses. While the new
management company has been successful in reducing the deficits
by reducing expenses and increasing occupancy, the property
remains unable to operate above break-even. Major capital
improvement items identified by the management company have been
completed. The remaining items are to be completed as units
turnover and it is anticipated that all of the items will be
complete by year end. Average occupancy at the property remains
at 98%. To date the Operating General Partner has been
unsuccessful in securing refinancing through local lenders.
Refinancing will be attempted again in 2000 once the property has
maintained stabilized occupancy greater than 90% for a
significant period of time.
46
Central Parkway Towers (Central Parkway Towers), continues
to experience occupancy problems. Physical occupancy for the
third quarter of 1999 averaged 61%. The low occupancy continues
to result in operating deficits, accrued liabilities, 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. The property
continues to receive monthly income from the county mental health
board, although the contract has not been formally renewed since
it expired in 1996. The Operating General Partner has been
advancing funds to cover operating deficits.
Series 4.
- --------- As of September 30, 1999 and 1998, the average
Qualified
Occupancy for the series was 100% for both years. The series had
a
total of 25 properties at September 30, 1999, all of which were
at 100%
Qualified Occupancy.
For the six months being reported series reflects a net loss
from
the Operating Partnerships of $1,230,404. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflect a
net loss of $108,323.
Unity Park Associates (Unity Park Phase II) reflects a net
loss, which is attributable to accrued mortgage interest and low
occupancy. 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 was being used to complete
rehabilitation work. The rehabilitation work has not had the
anticipated positive effect on occupancy and the property remains
unable to support itself without substantial loans from the
general partner. As a result, the Operating General Partner is
considering deeding the property back to the New York State
Housing Finance Agency. The Investment General Partner is
working to find developers in the area who may have an interest
in stepping in and assuming the General Partnership interest.
The Operating Partnership, Van Dyck Estates XVI-A (Van Dyck
Estates XVI-A) has completed the payments required to cure its
delinquent real estate taxes. A recent reduction in real estate
taxes has allowed the property to operate close to break-even.
The property continues to operate at nearly 100% occupancy every
month.
Central Parkway Towers (Central Parkway Towers) continues
to experience occupancy problems. Physical occupancy for the
third quarter of 1999 averaged 61%. The low occupancy continues
to result in operating deficits, accrued liabilities, 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. The property
continues to receive monthly income from the county mental health
board, although the contract has not been formally renewed since
it expired in 1996. The Operating General Partner has been
advancing funds to cover operating deficits.
47
The property owned by Haven Park Partners, A California L.P.
(Glenhaven Park II) continues to suffer from excessive operating
expenses compared to operating income. In an attempt to reduce
operating expenses a not-
for-profit company is being sought to provide tenant services,
coordinate leasing and community development, and also reduce the
real estate tax burden. As a result of repairs to unit interiors,
occupancy levels have improved. At September 30, 1999 physical
occupancy at Haven Park II was 93%. The remaining vacant unit
has been prepared for occupancy and should be rented in November
1999. Additional deferred maintenance issues are budgeted for
completion in this year's business plan. The scope of work
includes exterior painting, limited siding replacement, and fence
repairs. The work will not effect occupancy, but will prevent
further physical deterioration, and help preserve the asset.
Series 5.
--------- As of September 30, 1999 and 1998, the average
Qualified
Occupancy for the series was 100% for both years. The series had
a
total of five properties at September 30, 1999, 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 $112,578. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflect
positive operations of $1,489.
Annadale Housing Partners (Kingsview Manor & Estates) has
reported net losses due to operational issues associated with the
property. In order to address these issues, the Operating General
Partner has hired a consultant to assist management in
aggressively marketing the property. In addition, the management
agent has hired a new on-site manager and leasing agent. As a
result of these changes, occupancy reached 97% as of September
30, 1999. The rental rates at the property were increased during
the quarter. 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. These talks are
currently ongoing and the outcome cannot be determined at this
time. The Investment General Partner continues to monitor this
situation closely.
The property owned by Glenhaven Park Partners, A California
L.P. (Glenhaven Estates) continues to suffer from excessive
operating expenses compared to operating income. In an attempt
to reduce operating expenses a not-for-profit company is being
sought to provide tenant services, coordinate leasing and
community outreach, and also reduce the real estate tax expense.
As a result of repairs to unit interiors, occupancy is
anticipated to improve in the fourth quarter. Occupancy as of
September 30, 1999 is 86%. The vacant units have been prepared
for occupancy and should be rented in November 1999. Additional
deferred maintenance issues are budgeted for completion in this
year's business plan. The scope of work includes exterior
painting, limited siding replacement, and fence repairs. The
work will not effect occupancy, but will prevent further physical
deterioration, and help preserve the asset.
48
Series 6.
--------- As of September 30, 1999, the average Qualified
Occupancy for the series was 100% and 99.7%, respectively. The
series had a total of 15 properties at September 30, 1999, 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 $350,043. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect positive
operations of
$270,563.
Year 2000 Compliance
- --------------------
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 are working with the vendors to make the
necessary upgrades and replacements. Boston Capital believes
that all of its systems will be fully compliant before the year
2000 and 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: November 17, 1998 By:
---------------------------
John P. Manning, Partner
Partner & Principal Financial
Officer
51
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<NAME> BOSTON CAPITAL TAX CREDIT FUND LIMITED PARTNERSHIP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-START> APR-01-1999
<PERIOD-END> SEP-30-1999
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