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 June 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 June 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
June 30,
March 31,
1999
1999
(Unaudited)
(Audited)
------------
- ------------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $12,164,391
$12,964,520
OTHER ASSETS
Cash and cash equivalents 171,616
160,135
Other assets 744,733
721,229
----------
- ----------
$13,080,740
$13,845,884
==========
==========
LIABILITIES
Accounts payable $ 1,000
$ -
Accounts payable - affiliates (Note C) 7,240,137
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 6,631,119
7,657,936
outstanding
General Partner (791,516)
(781,143)
----------
- ----------
5,839,603
6,876,793
----------
- ----------
$13,080,740
$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
- ---------------------------
June 30,
March 31,
1999
1999
(Unaudited)
(Audited)
----------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 22,823 $
22,969
OTHER ASSETS
Cash and cash equivalents 2,090
6,640
Other assets 68,113
68,113
--------- -
- --------
$ 93,026 $
97,722
=========
=========
LIABILITIES
Accounts payable $ - $
- -
Accounts payable - affiliates (Note C) 1,544,412
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 (1,323,648)
(1,272,705)
outstanding
General Partner (127,738)
(127,223)
- --------- ---------
(1,451,386)
(1,399,928)
--------- -
- --------
$ 93,026 $
97,722
=========
=========
The accompanying notes are an integral part of these
statements.
2
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 2
- ----------------------------
June 30,
March 31,
1999
1999
ASSETS (Unaudited)
(Audited)
-----------
- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 680,166 $
731,325
OTHER ASSETS
Cash and cash equivalents 6,826
5,497
Other assets 360,285
360,285
---------
- ---------
$1,047,277
$1,097,107
=========
=========
LIABILITIES
Accounts payable $ - $
- -
Accounts payable - affiliates (Note C) 497,893
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 613,233
681,116
General Partner (63,849)
(63,163)
---------
- ---------
549,384
617,953
---------
- ---------
$1,047,277
$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
- ----------------------------
June 30,
March 31,
1999
1999
ASSETS (Unaudited)
(Audited)
-----------
- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 862,386
$1,289,310
OTHER ASSETS
Cash and cash equivalents 5,111
2,331 Other assets 41,861
41,861
---------
- ---------
$ 909,358
$1,333,502
=========
=========
LIABILITIES
Accounts payable $ 1,000 $
- -
Accounts payable - affiliates (Note C) 1,968,181
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 (797,311)
(307,681)
General Partner (262,512)
(257,566)
---------
- ---------
(1,059,823)
(565,247)
- --------- ---------
$ 909,358
$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
- ----------------------------
June 30,
March 31,
1999
1999
(Unaudited)
(Audited)
------------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 6,375,673 $
6,648,529
OTHER ASSETS
Cash and cash equivalents 9,216
10,320 Other assets
241,361 217,857
---------- -
- ---------
$ 6,626,250 $
6,876,706
==========
==========
LIABILITIES
Accounts payable $ - $
- -
Accounts payable - affiliates (Note C) 1,890,849
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 4,948,151
5,284,067
General Partner (212,750)
(209,357)
---------- -
- ---------
4,735,401
5,074,710 ---
- ------- ----------
$ 6,626,250 $
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
- ----------------------------
June 30,
March 31,
1999
1999
(Unaudited)
(Audited)
------------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 595,160 $
598,143
OTHER ASSETS
Cash and cash equivalents 117,814
118,832
Other assets 33,113
33,113
---------
- ---------
$ 746,087 $
750,088
=========
=========
LIABILITIES
Accounts payable $ - $
- -
Accounts payable - affiliates (Note C) 156,600
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 625,343
639,069
General Partner (35,856)
(35,717)
---------
- ---------
589,487
603,352
---------
- ---------
$ 746,087 $
750,088
========= =========
The accompanying notes are an integral part of these
statements.
6
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 6
- ----------------------------
June 30,
March 31,
1999
1999
(Unaudited)
(Audited)
------------
- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $3,628,183
$3,674,244
OTHER ASSETS
Cash and cash equivalents 30,559
16,515
Other assets -
- -
---------
- ---------
$3,658,742
$3,690,759
=========
=========
LIABILITIES
Accounts payable $ - $
- -
Accounts payable - affiliates (Note C) 1,182,202
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 2,565,351
2,634,070
General Partner (88,811)
(88,117)
---------
- ---------
2,476,540
2,545,953
---------
- ---------
$3,658,742
$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 June 30,
(Unaudited)
1999 1998
---- ----
Income
Interest income $ 856 $ 1,263
Miscellaneous income - -
---------- ----------
856 1,263
---------- ----------
Share of loss from Operating
Partnerships (Note D) (796,937)
(790,588)
---------- ----------
Expenses
Professional fees - -
Partnership management fees 217,350 219,178
General and administrative expenses 23,757 18,721
---------- ----------
241,107 237,899
---------- ----------
NET LOSS $(1,037,188)
$(1,027,224)
========== ==========
Net loss allocated to assignees $(1,026,816)
$(1,016,952)
========== ==========
Net loss allocated to general partner $ (10,372) $
(10,272)
========== ==========
Net loss per BAC $ (.48) $
(.55)
========== ==========
The accompanying notes are an integral part of these
statements.
8
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
SERIES 1
- -----------------------
1999
1998
----
- ----
Income
Interest income $ 20 $
109
Miscellaneous income -
- -
--------
- --------
20
109
--------
- --------
Share of loss from Operating
Partnerships (Note D) (1,544)
- -
--------
- --------
Expenses
Professional fees -
- -
Partnership management fees 46,216
41,216
General and administrative expenses 3,718
2,211
--------
- --------
49,934
43,427
--------
- --------
NET LOSS $ (51,458) $
(43,318)
========
========
Net loss allocated to assignees $ (50,943) $
(42,885)
========
========
Net loss allocated to general partner $ (515) $
(433)
========
========
Net loss per BAC $ (.04) $
(.03)
========
========
The accompanying notes are an integral part of these
statements.
9
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
SERIES 2
- ----------------------
1999
1998
----
- ----
Income
Interest income $ 25 $
18
Miscellaneous income -
- -
--------
- --------
25
18
--------
- --------
Share of loss from Operating
Partnerships (Note D) (50,359)
(53,039)
--------
- --------
Expenses
Professional fees -
- -
Partnership management fees 15,432
17,310
General and administrative expenses 2,803
2,149
--------
- --------
18,235
19,459
--------
- --------
NET LOSS $ (68,569) $
(72,480)
========
========
Net loss allocated to assignees $ (67,883) $
(71,755)
========
========
Net loss allocated to general partner $ (686) $
(725)
========
========
Net loss per BAC $ (.08) $
(.08)
========
========
The accompanying notes are an integral part of these
statements.
10
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
SERIES 3
- ----------------------
1999
1998
----
- ----
Income
Interest income $ 14 $
111
Miscellaneous income -
- -
--------
- --------
14
111
--------
- --------
Share of loss from Operating
Partnerships (Note D) (425,895)
(355,053)
--------
- --------
Expenses
Professional Fees -
- -
Partnership management fees 62,447
64,497
General and administrative expenses 6,248
5,896
--------
- --------
68,695
70,393
--------
- --------
NET LOSS $(494,576)
$(425,335)
========
========
Net loss allocated to assignees $(489,630)
$(421,082)
========
========
Net loss allocated to general partner $ (4,946) $
(4,253)
========
========
Net loss per BAC $ (.17) $
(.15)
========
========
The accompanying notes are an integral part of these
statements.
11
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
SERIES 4
- ----------------------
1999
1998
----
- ----
Income
Interest income $ 52 $
7
Miscellaneous income -
- -
--------
- --------
52
7
--------
- --------
Share of loss from Operating
Partnerships (Note D) (272,856)
(225,869)
--------
- --------
Expenses
Professional fees -
- -
Partnership management fees 60,094
62,722
General and administrative expenses 6,411
4,470
--------
- --------
66,505
67,192
--------
- --------
NET LOSS $(339,309)
$(293,054)
========
========
Net loss allocated to assignees $(335,916)
$(290,123)
========
========
Net loss allocated to general partner $ (3,393) $
(2,931)
========
========
Net loss per BAC $ (.12) $
(.10)
========
========
The accompanying notes are an integral part of these
statements.
12
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
SERIES 5
- ----------------------
1999
1998
----
- ----
Income
Interest income $ 640 $
888
Miscellaneous income -
- -
- -------- --------
640
888
--------
- --------
Share of loss from Operating
Partnerships (Note D) (2,982)
(31,125)
--------
- --------
Expenses
Professional fees -
- -
Partnership management fees 9,592
9,864
General and administrative expenses 1,931
2,210
--------
- --------
11,523
12,074
--------
- --------
NET LOSS $ (13,865) $
(42,311)
========
========
Net loss allocated to assignees $ (13,726) $
(41,888)
========
========
Net loss allocated to general partner $ (139) $
(423)
========
========
Net loss per BAC $ (.02) $
(.08)
========
========
The accompanying notes are an integral part of these
statements.
13
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
SERIES 6
- ----------------------
1999
1998
----
- ----
Income
Interest income $ 105 $
130
Miscellaneous income -
- -
--------
- --------
105
130
--------
- --------
Share of loss from Operating
Partnerships (Note D) (43,301)
(125,502)
--------
- --------
Expenses
Professional fees -
- -
Partnership management fees 23,569
23,569
General and administrative expenses 2,648
1,785
--------
- --------
26,217
25,354
--------
- --------
NET LOSS $ (69,413)
$(150,726)
========
========
Net loss allocated to assignees $ (68,719)
$(149,219)
========
========
Net loss allocated to general partner $ (694) $
(1,507)
========
========
Net loss per BAC $ (.05) $
(.11)
========
========
The accompanying notes are an integral part of these
statements.
14
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Three Months Ended June 30, 1999
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Partners' capital (deficit),
April 1, 1999 $ 7,657,936 $(781,143) $
6,876,793
Net loss (1,026,817) (10,373)
(1,037,190)
---------- --------
- ----------
Partners' capital (deficit),
June 30, 1999 $ 6,631,119 $(791,516) $
5,839,603
========== ========
==========
The accompanying notes are an integral part of these
statements.
15
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Three Months Ended June 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 (50,943) (515)
(51,458)
--------- -------- --
- --------
Partners' capital (deficit),
June 30, 1999 $(1,323,648) $(127,738)
$(1,451,386)
========= ========
==========
Series 2
- --------
Partners' capital (deficit),
April 1, 1999 $ 681,116 $ (63,163) $
617,953
Net loss (67,883) (686)
(68,569)
--------- -------
- ---------
Partners' capital (deficit),
June 30, 1999 $ 613,233 $ (63,849) $
549,384
========= =======
=========
Series 3
- --------
Partners' capital (deficit),
April 1, 1999 $ (307,681) $(257,566) $
(565,247)
Net loss (489,630) (4,946)
(494,576)
---------- --------
- ----------
Partners' capital (deficit),
June 30, 1999 $ (797,311) $(262,512)
$(1,059,823)
========== ========
==========
The accompanying notes are an integral part of these
statements.
16
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Three Months Ended June 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 (335,916) (3,393)
(339,309)
---------- --------
- ----------
Partners' capital (deficit),
June 30, 1999 $ 4,948,151 $(212,750) $
4,735,401
========== ========
=========
Series 5
- --------
Partners' capital (deficit),
April 1, 1999 $ 639,069 $ (35,717) $
603,352
Net loss , (13,726) (139)
(13,865)
--------- -------
- ---------
Partners' capital (deficit),
June 30, 1999 $ 625,343 $ (35,856) $
589,487
========= =======
=========
Series 6
- --------
Partners' capital (deficit),
April 1, 1999 $2,634,070 $ (88,117) $
2,545,953
Net loss (68,719) (694)
(69,413)
--------- ------ -----
- ----
Partners' capital (deficit),
June 30, 1999 $2,565,351 $ (88,811)
$2,476,540
========= =======
=========
The accompanying notes are an integral part of these
statements.
17
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
1999
1998
----
- ----
Cash flows from operating activities:
Net loss $(1,037,190)
$(1,027,224)
Adjustments
Distributions from Operating
Partnerships 3,191
9,788
Amortization -
- -
Share of loss from Operating
Partnerships 796,937
790,588
Changes in assets and liabilities
Increase (Decrease) in accounts,
payable 272,047
281,165
Decrease (Increase) in other
assets (23,504)
(37,903)
----------
- ----------
Net cash provided by (used in)
operating activities 11,481
16,414
----------
- ----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 11,481
16,414
Cash and cash equivalents, beginning 160,135
176,885
----------
- ----------
Cash and cash equivalents, ending $ 171,616 $
193,299
==========
==========
The accompanying notes are an integral part of these
statements.
18
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 1
- -------------------------
1999
1998
----
- ----
Cash flows from operating activities:
Net loss $ (51,458) $
(43,318) Adjustments
Distributions from Operating
Partnerships (1,398)
- -
Amortization 1,544
- -
Share of loss from Operating
Partnerships -
- -
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 46,762
45,641
Decrease (Increase) in other
assets -
(1,000)
----------
- ----------
Net cash provided by (used in)
operating activities (4,550)
1,323
----------
- ----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (4,550)
1,323
Cash and cash equivalents, beginning 6,640
15,351
----------
- ----------
Cash and cash equivalents, ending $ 2,090 $
16,674
==========
==========
The accompanying notes are an integral part of these
statements.
19
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 2
- -------------------------
1999
1998
----
- ----
Cash flows from operating activities:
Net loss $ (68,569) $
(72,480)
Adjustments
Distributions from Operating
Partnerships 800
- -
Amortization -
- -
Share of loss from Operating
Partnerships 50,359
53,039
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 18,739
17,607
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities 1,329
(1,834)
----------
- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 1,329
(1,834)
Cash and cash equivalents, beginning 5,497
3,977
----------
- ----------
Cash and cash equivalents, ending $ 6,826 $
2,143
==========
==========
The accompanying notes are an integral part of these
statements.
20
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Three Months Ended December 31,
(Unaudited)
Series 3
- -------------------------
1999
1998
----
- ----
Cash flows from operating activities:
Net loss $ (494,576) $
(425,335)
Adjustments
Distributions from Operating
Partnerships 1,029
- -
Amortization -
- -
Share of loss from Operating
Partnerships 425,895
355,053
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 70,432
69,457
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities 2,780
(825)
----------
- ----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 2,780
(825)
Cash and cash equivalents, beginning 2,331
14,333
----------
- ----------
Cash and cash equivalents, ending $ 5,111 $
13,508
==========
=========
The accompanying notes are an integral part of these
statements.
21
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 4
- -------------------------
1999
1998
----
- ----
Cash flows from operating activities:
Net loss $ (339,309) $
(293,054)
Adjustments
Distributions from Operating
Partnerships -
- -
Amortization -
- -
Share of loss from Operating
Partnerships 272,856
225,869
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 88,853
102,133
Decrease (Increase) in other
assets (23,504)
(36,903)
---------
- ----------
Net cash provided by (used in)
operating activities (1,104)
(1,955)
---------
- ----------
DECREASE IN CASH AND CASH
EQUIVALENTS (1,104)
(1,955)
Cash and cash equivalents, beginning 10,320
1,955
---------
- ----------
Cash and cash equivalents, ending $ 9,216 $
- -
=========
==========
The accompanying notes are an integral part of these
statements.
22
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 5
- -------------------------
1999
1998
----
- ----
Cash flows from operating activities:
Net loss $ (13,865) $
(42,311)
Adjustments
Distributions from Operating
Partnerships -
- -
Amortization -
- -
Share of loss from Operating
Partnerships 2,982
31,125
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 9,865
9,914
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities (1,018)
(1,272)
----------
- ----------
DECREASE IN CASH AND CASH
EQUIVALENTS (1,018)
(1,272)
Cash and cash equivalents, beginning 118,832
130,957
----------
- ----------
Cash and cash equivalents, ending $ 117,814 $
129,685
==========
==========
The accompanying notes are an integral part of these
statements.
23
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 6
- -------------------------
1999
1998
----
- ----
Cash flows from operating activities:
Net loss $ (69,413) $
(150,726)
Adjustments
Distributions from Operating
Partnerships 2,760
9,788
Amortization -
- -
Share of loss from Operating
Partnerships 43,301
125,502
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 37,396
36,413
Decrease (Increase) in other
assets -
- -
----------
- ----------
Net cash provided by (used in)
operating activities 14,044
20,977
----------
- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 14,044
20,977
Cash and cash equivalents, beginning 16,515
10,312
----------
- ----------
Cash and cash equivalents, ending $ 30,559 $
31,289
==========
==========
The accompanying notes are an integral part of these
statements.
24
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS
June 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
June 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
25
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 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 June 30, 1999 and 1998 as follows:
1999 1998
----- -----
Series 1 $ 3,718 $ 2,211
Series 2 2,802 2,149
Series 3 6,248 5,896
Series 4 6,411 4,470
Series 5 1,931 2,210
Series 6 2,647 1,785
------ ------
$23,757 $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 June 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 June 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.
26
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1999
(Unaudited)
NOTE C - RELATED PARTY TRANSACTIONS (continued)
As of June 30, 1999, an affiliate of the general partner
advanced a
total of $498,629 to the Partnership to pay certain operating
expenses of the Partnership, and make advances and/or loans to
Operating Partnerships. $23,504 of the funds were advanced
during the quarter ended June 30, 1999. Below is a table that
breaks down by series the advances made to date.
1999
-------
Series 1 $ 61,810
Series 2 45,000
Series 3 102,250
Series 4 289,569
-------
$498,629
=======
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 June 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 June 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 three months ended March 31, 1999.
The combined unaudited summarized statements of operations
of the
Operating Partnerships for the three months ended March 31, 1999
and 1998
are as follows:
27
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)
Series 1
- ---------------------------
1999 1998
---- ----
Revenues
Rental $ 1,278,692 $
1,227,924
Interest and other 74,351
84,821
--------- -
- --------
1,353,043
1,312,745
--------- -
- --------
Expenses
Interest 304,880
305,500
Depreciation and amortization 470,060
431,051
Operating expenses 1,046,710
1,006,315
--------- --
- -------
1,821,650
1,742,866
--------- -
- --------
NET LOSS $ (468,607) $
(430,121)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (1,544) $
- -
=========
=========
Net loss allocated to other partners $ (4,686) $
(4,301)
=========
=========
Net loss suspended $ (462,377) $
(425,820)
=========
=========
The variance in allowable loss from the Operating Partnerships
for the three months ended March 31, 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.
28
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)
Series 2
- --------------------------
1999 1998
---- ----
Revenues
Rental $ 338,724 $
336,363
Interest and other 19,957
15,454
---------
- ---------
358,681
351,817
---------
- ---------
Expenses
Interest 106,389
106,548
Depreciation and amortization 110,529
90,256
Operating expenses 275,884
261,688
---------
- ---------
492,802
458,492
---------
- ---------
NET LOSS $ (134,121) $
(106,675)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (50,359) $
(53,039)
=========
=========
Net loss allocated to other partners $ (1,341) $
(1,066)
=========
=========
Net loss suspended $ (82,421) $
(52,570)
=========
=========
The variance in allowable loss from the Operating Partnerships
for the three
months ended March 31, 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.
29
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)
Series 3
- --------------------------
1999 1998
Revenues ---- ----
Rental $ 1,656,021 $
1,588,512
Interest and other 88,021
96,982
---------
- ---------
1,744,042
1,655,494
---------
- ---------
Expenses
Interest 577,450
557,134
Depreciation and amortization 621,907
605,927
Operating expenses 1,325,316
1,131,162
---------
- ---------
2,524,673
2,294,223
---------
- ---------
NET LOSS $ (780,631) $
(638,729)
==========
==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (425,895) $
(355,053)
==========
==========
Net loss allocated to other partners $ (7,806) $
(6,387)
==========
==========
Net loss suspended $ (346,930) $
(277,289)
==========
==========
The variance in allowable loss from the Operating Partnerships
for the three
months ended March 31, 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.
30
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)
Series 4
- ----------------------------
1999 1998
Revenues ---- ----
Rental $ 1,625,460 $
1,655,913
Interest and other 68,452
61,617
----------
- ----------
1,693,912
1,717,530
----------
- ----------
Expenses
Interest 661,123
667,629
Depreciation and amortization 567,629
575,816
Operating expenses 1,158,614
1,005,419
----------
- ----------
2,387,366
2,248,864
----------
- ----------
NET LOSS $ (693,454) $
(531,334)
==========
==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (272,856) $
(225,869)
==========
==========
Net loss allocated to other partners $ (6,935) $
(5,313)
==========
==========
Net loss suspended $ (413,663) $
(300,152)
==========
==========
The variance in allowable loss from the Operating Partnerships
for the three
months ended March 31, 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.
31
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)
Series 5
- --------------------------
1999 1998
Revenues ---- ----
Rental $ 166,530 $
164,505
Interest and other 16,916
16,968
-------
- --------
183,446
181,473
-------
- --------
Expenses
Interest 54,046
64,563
Depreciation and amortization 55,753
59,980
Operating expenses 116,971
122,213
-------
- --------
226,770
246,756
-------
- --------
NET LOSS $ (43,324) $
(65,283)
========
========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (2,982) $
(31,125)
========
========
Net loss allocated to other partners $ (433) $
(653)
========
========
Net loss suspended $ (39,909) $
(33,505)
========
========
The variance in allowable loss from the Operating Partnerships
for the three
months ended March 31, 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.
32
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)
Series 6
- --------------------------
1999 1998
Revenues ---- ----
Rental $1,050,824
$1,050,111
Interest and other 59,769
78,356
---------
- ---------
1,110,593
1,128,467
---------
- ---------
Expenses
Interest 333,401
308,992
Depreciation and amortization 305,245
372,459
Operating expenses 588,290
641,509
---------
- ---------
1,226,936
1,322,960
---------
- ---------
NET LOSS $ (116,343) $
(194,493)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (43,301) $
(125,502)
=========
=========
Net loss allocated to other partners $ (1,163) $
(1,945)
=========
=========
Net loss suspended $ (71,879) $
(67,046)
=========
=========
The variance in allowable loss from the Operating Partnerships
for the three
months ended March 31, 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.
33
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 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.
34
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 June 30, 1999 were $232,101 and total partnership
management fees accrued as of
June 30, 1999 were $6,684,151. 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 $555,986 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: $67,391 in series 1, $59,373 in
series 2, $123,357 in series 3, $301,917 in series 4, none in
series 5, and $3,948 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 June 30, 1999 and 1998
the
Partnership had limited partnership equity interests in 105
Operating
Partnerships.
35
Capital Resources (continued)
- -----------------
As of June 30, 1999 the Partnership had $171,616 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
$ 2,090
2 $ 8,303,000 830,000 03/30/89 8
$ 6,826
3 $28,822,000 2,822,200 03/14/89 33
$ 5,111
4 $29,788,160 2,995,300 07/07/89 25
$ 9,216
5 $ 4,899,000 489,900 08/22/89 5
$117,814
6 $12,935,780 1,303,000 09/29/89 15
$ 30,559
----------- --------- ---
- -------
$97,746,940 9,740,300 105
$171,616
=========== ========= ===
=======
36
Results of Operations
- ---------------------
At June 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 June 30, 1999 and 1998 were $217,350 and $219,178,
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 June 30, 1999 and 1998, the average
Qualified
Occupancy for the series was 100%. The series had a total of 19
properties at June 30, 1999. Out of the total, 19 were at 100%
Qualified Occupancy.
For the three months being reported, the series reflects a
net loss from
Operating Partnerships of $468,607. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect a net loss
of $1,453. 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. Occupancy remains low at Unity Park
Associates, (Unity Park Phase II), and
Kingston Property Associates (Broadway East Townhomes), but
Genesee Commons (River Park Commons) has improved to average 91%
occupancy for the first half of 1999 and has begun making partial
mortgage Payments. The properties have
37
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 as they did at Genesee
Commons (River Park Commons).
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 many of these
issues has been completed. The management company is working on
completing the remaining items as weather, vacancies and time
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.
Series 2.
--------- As of June 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 June 30, 1999 all of which were at
100% Qualified Occupancy.
For the three months being reported the series reflects a
net loss
from the Operating Partnerships of $134,121. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflect a
net loss of
$23,592.
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. As of May 31, 1999
physical occupancy at the two properties was 86% and 92%,
respectively. The properties suffer from excessive expenses
compared to operating income. There are few ways of further
reducing expenses. A not-for-profit company is being sought to
serve as General Partner to reduce the real estate expenses. The
Operating General Partner has developed a capital needs plan to
address what can be done to the properties in hopes of improving
occupancy levels. Deferred maintenance issues are budgeted for
completion in this year's business plan and the manager is
currently bidding the work. Deferred Maintenance issues related
to two vacant units have been completed and the units are being
prepared for occupancy and should be occupied in September or
October 1999.
Annadale Housing Partners (Kingsview Manor & Estates) has
reported net losses due to operational issues associated with the
property. Decreasing occupancy during the quarter and economic
factors relevant to the marketplace prevent the necessary rental
income from being generated to cover the operational expenses.
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. The rental rates at the property were
increased
38
during the last quarter of 1998. 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. Occupancy is 89% as
of June 30, 1999.
Series 3.
--------- As of June 30, 1999 and 1998, the average
Qualified
Occupancy for the series was 99.7% and 99.5%, respectively. The
series had a total of 33 properties at June 30, 1999 of which 31
were at 100% Qualified Occupancy.
For the three months being reported series reflects a net
loss from the
Operating Partnerships of $780,631. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect a net loss
of $158,724.
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 June 30, 1999 the overall physical occupancy of
the property was 87%. The management company, with the
assistance of area housing agencies and
more thorough screening process, has greatly improved occupancy
rates. The improved occupancy and expense reduction resulted in
a 1999 first quarter net income of $32,416 as compared to the net
loss of $74,273 recorded for the first quarter of 1998. For the
first half of 1999, the property recorded net income of $36,031
as compared to the net loss of $117,392 recorded in the same
period of 1998.
The property owned by California Investors VI L.P. (Orchard
Park) has increased its physical occupancy from 91% as of March
31, 1999 to 99% as of June 30, 1999. The increased occupancy is
the result of the management company's aggressive marketing
efforts. The Operating General Partner, with the assistance of a
consultant, developed a new marketing campaign, which was
implemented during the last quarter of 1998. In addition, the
management company replaced the site manager and leasing agent.
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.
The Operating General Partner of 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, the
property remains unable to operate above break-even. The
Operating General Partner has been 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 98%. To date the Operating General Partner
has been unsuccessful in securing refinancing through local
lenders. During the completion of the 1998 audit, the Operating
General Partner was notified by the lender that mortgage interest
had not been accruing at the proper rate. As such, an adjustment
was made to correct the outstanding principal and interest
balances.
39
Central Parkway Tower (Central Parkway Towers), continues
to experience occupancy problems. Physical occupancy as of June
30, 1999 was 63%. 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. 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.
Series 4.
--------- As of June 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 June 30, 1999, all of which were at
100%
Qualified Occupancy.
For the three months being reported series reflects a net
loss from
the Operating Partnerships of $272,856. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflects
positive operations of $294,773.
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 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. A recent reduction in
real estate taxes has allowed the property to operated close to
break-even. The property continues to operate at nearly 100%
occupancy every month.
Central Parkway Tower (Central Parkway Towers), continues to
experience occupancy problems. Physical occupancy as of June 30,
1999 was 63%. 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. 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 property owned by Haven Park Partners, A California L.P.
(Glenhaven Park II) continue to suffer from high operating
expenses and occupancy issues. As of May 31, 1999, physical
occupancy was 86%. The property suffers from excessive expenses
compared to operating income. There are few ways of further
reducing expenses. A not-for-profit company is being sought to
serve as General Partner to reduce the real estate tax expense.
The Operating General Partner has developed a capital needs plan
to address what can be done
40
to the property in hopes of improving occupancy levels. Deferred
maintenance issues are budgeted for completion in this year's
business plan and the manager is currently bidding the work.
Deferred Maintenance issues related to two vacant units have been
completed and the units are being prepared for occupancy and
should be occupied in September or October 1999.
Series 5.
--------- As of June 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 June 30, 1999, all of which were at
100%
Qualified Occupancy.
For the three months being reported the series reflects a
net loss
from the Operating Partnerships of $43,324. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflect a
positive operations of $12,429.
Annadale Housing Partners (Kingsview Manor & Estates) has
reported net losses due to operational issues associated with the
property. Decreasing occupancy during the quarter and economic
factors relevant to the marketplace prevent the necessary rental
income from being generated to cover the operational expenses.
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. The rental rates
at the property were increased during the last quarter of 1998.
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.
Occupancy is 89% as of June 30, 1999.
The property owned by Glenhaven Park Partners, A California
L.P. (Glenhaven Estates) continue to suffer from high operating
expenses and occupancy issues. As of June 30, 1999, physical
occupancy was 92%. The property suffers from excessive expenses
compared to operating income. There are few ways of further
reducing expenses. A not-for-profit company is being sought to
serve as General Partner to reduce the real estate tax expense.
The Operating General Partner has developed a capital needs plan
to address what can be done to the property in hopes of improving
occupancy levels. Deferred maintenance issues are budgeted for
completion in this year's business plan and the manager is
currently bidding the work. Deferred maintenance issues related
to two units have been completed and the units are being prepared
for occupancy and should be occupied in September or October
1999.
41
Series 6.
--------- As of June 30, 1999, the average Qualified
Occupancy for the series was 100% and 99.7%, respectively. The
series had a total of 15 properties at June 30, 1999 of which 14
were at 100% Qualified Occupancy.
For the three months being reported the series reflects a
net loss from
the Operating Partnerships of $116,343. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect positive
operations of
$188,902.
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.
42
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.
43
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: August 16, 1998 By: /s/JOHN P. MANNING
---------------------------
John P. Manning, Partner
Partner & Principal Financial
Officer
44
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<FISCAL-YEAR-END> MAR-31-2000
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