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, 2000
-------------
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, 2000
-----------------------------------------------
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,
2000
2000
(Unaudited)
(Audited)
------------
------------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $10,489,477
$10,837,526
OTHER ASSETS
Cash and cash equivalents 157,532
149,652
Other assets 1,085,619
1,070,618
----------
----------
$11,732,628
$12,057,796
==========
==========
LIABILITIES
Accounts payable $ -
$ -
Accounts payable - affiliates (Note C) 8,294,850
8,033,544
----------
----------
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 4,253,311
4,833,921
outstanding
General Partner (815,533)
(809,669)
----------
----------
3,437,778
4,024,252
----------
----------
$11,732,628
$12,057,796
==========
==========
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,
2000
2000
(Unaudited)
(Audited)
----------
----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ - $
-
OTHER ASSETS
Cash and cash equivalents 8,946
11,172
Other assets 68,113
68,113
--------- -
--------
$ 77,059 $
79,285
=========
=========
LIABILITIES
Accounts payable $ - $
-
Accounts payable - affiliates (Note C) 1,742,222
1,696,505
--------- --
-------
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 (1,535,288)
(1,487,824)
outstanding
General Partner (129,875)
(129,396)
--------- ---------
(1,665,163)
(1,617,220)
--------- -
--------
$ 77,059 $
79,285
=========
=========
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,
2000
2000
ASSETS (Unaudited)
(Audited)
-----------
---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 452,163 $
494,972
OTHER ASSETS
Cash and cash equivalents 4,938
4,403
Other assets 569,584
569,584
---------
---------
$1,026,685
$1,068,959
=========
=========
LIABILITIES
Accounts payable $ - $
-
Accounts payable - affiliates (Note C) 580,053
562,376
---------
---------
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 511,509
570,860
General Partner (64,877)
(64,277)
---------
---------
446,632
506,583
---------
---------
$1,026,685
$1,068,959
=========
=========
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,
2000
2000
ASSETS (Unaudited)
(Audited)
-----------
---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 470,703 $
582,673
OTHER ASSETS
Cash and cash equivalents 4,642
7,782 Other assets 53,961
41,661
---------
---------
$ 529,306 $
632,116
=========
=========
LIABILITIES
Accounts payable $ - $
-
Accounts payable - affiliates (Note C) 2,275,118
2,197,590
---------
---------
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 (1,476,441)
(1,297,906)
General Partner (269,371)
(267,568)
---------
---------
(1,745,812)
(1,565,474)
--------- ---------
$ 529,306 $
632,116
=========
=========
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,
2000
2000
(Unaudited)
(Audited)
------------
----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 5,485,659 $
5,684,221
OTHER ASSETS
Cash and cash equivalents 3,365
5,558 Other assets
244,062 241,361
---------- -
---------
$ 5,733,086 $
5,931,140
==========
==========
LIABILITIES
Accounts payable $ - $
-
Accounts payable - affiliates (Note C) 2,173,396
2,099,012
---------- -
---------
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 3,784,197
4,053,911
General Partner (224,507)
(221,783)
---------- -
---------
3,559,690
3,832,128 ---
------- ----------
$ 5,733,086 $
5,931,140
==========
==========
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,
2000
2000
(Unaudited)
(Audited)
------------
----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 471,975 $
500,661
OTHER ASSETS
Cash and cash equivalents 104,106
105,507
Other assets 149,899
149,899
---------
---------
$ 725,980 $
756,067
=========
=========
LIABILITIES
Accounts payable $ - $
-
Accounts payable - affiliates (Note C) 195,621
186,192
---------
---------
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 566,806
605,927
General Partner (36,447)
(36,052)
---------
---------
530,359
569,875
---------
---------
$ 725,980 $
756,067
========= =========
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,
2000
2000
(Unaudited)
(Audited)
------------
----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $3,608,977
$3,574,999
OTHER ASSETS
Cash and cash equivalents 31,535
15,230
Other assets -
-
---------
---------
$3,640,512
$3,590,229
=========
=========
LIABILITIES
Accounts payable $ - $
-
Accounts payable - affiliates (Note C) 1,328,440
1,291,869
--------- ---------
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 2,402,528
2,388,953
General Partner (90,456)
(90,593)
---------
---------
2,312,072
2,298,360
---------
---------
$3,640,512
$3,590,229
=========
=========
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)
2000 1999
---- ----
Income
Interest income $ 851 $ 856
Miscellaneous income - -
---------- ----------
851 856
---------- ----------
Share of loss from Operating
Partnerships (Note D) (335,644)
(796,937)
---------- ----------
Expenses
Professional fees 23,130 -
Partnership management fees (Note C) 206,637 217,350
General and administrative expenses 21,914 23,757
---------- ----------
251,681 241,107
---------- ----------
NET LOSS $ (586,474)
$(1,037,188)
========== ==========
Net loss allocated to assignees $ (580,610)
$(1,026,816)
========== ==========
Net loss allocated to general partner $ (5,864) $
(10,372)
========== ==========
Net loss per BAC $ (.30) $
(.48)
========== ==========
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
-----------------------
2000
1999
----
----
Income
Interest income $ 77 $
20
Miscellaneous income -
-
--------
--------
77
20
--------
--------
Share of loss from Operating
Partnerships (Note D) -
(1,544)
--------
--------
Expenses
Professional fees 4,490
-
Partnership management fees (Note C) 40,543
46,216
General and administrative expenses 2,987
3,718
--------
--------
48,020
49,934
--------
--------
NET LOSS $ (47,943) $
(51,458)
========
========
Net loss allocated to assignees $ (47,464) $
(50,943)
========
========
Net loss allocated to general partner $ (479) $
(515)
========
========
Net loss per BAC $ (.04) $
(.04)
========
========
The accompanying notes are an integral part of these
statements.
9
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended June 30,
(Unaudited)
SERIES 2
----------------------
2000
1999
----
----
Income
Interest income $ 23 $
25
Miscellaneous income -
-
--------
--------
23
25
--------
--------
Share of loss from Operating
Partnerships (Note D) (42,809)
(50,359)
--------
--------
Expenses
Professional fees 2,505
-
Partnership management fees (Note C) 11,938
15,432
General and administrative expenses 2,722
2,803
--------
--------
17,165
18,235
--------
--------
NET LOSS $ (59,951) $
(68,569)
========
========
Net loss allocated to assignees $ (59,351) $
(67,883)
========
========
Net loss allocated to general partner $ (600) $
(686)
========
========
Net loss per BAC $ (.06) $
(.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
----------------------
2000
1999
----
----
Income
Interest income $ 48 $
14
Miscellaneous income -
-
--------
--------
48
14
--------
--------
Share of loss from Operating
Partnerships (Note D) (111,970)
(425,895)
-------- -
--------
Expenses
Professional Fees 6,630
-
Partnership management fees (Note C) 55,497
62,447
General and administrative expenses 6,289
6,248
-------- -
--------
68,416
68,695
-------- -
--------
NET LOSS $(180,338) $
(494,576)
========
=========
Net loss allocated to assignees $(178,535) $
(489,630)
========
=========
Net loss allocated to general partner $ (1,803) $
(4,946)
========
=========
Net loss per BAC $ (.06) $
(.17)
========
=========
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
----------------------
2000
1999
----
----
Income
Interest income $ 26 $
52
Miscellaneous income -
-
--------
--------
26
52
--------
--------
Share of loss from Operating
Partnerships (Note D) (198,560)
(272,856)
--------
--------
Expenses
Professional fees 5,310
-
Partnership management fees (Note C) 62,721
60,094
General and administrative expenses 5,873
6,411
--------
--------
73,904
66,505
--------
--------
NET LOSS $(272,438)
$(339,309)
========
========
Net loss allocated to assignees $(269,714)
$(335,916)
========
========
Net loss allocated to general partner $ (2,724) $
(3,393)
========
========
Net loss per BAC $ (.09) $
(.12)
========
========
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
----------------------
2000
1999
----
----
Income
Interest income $ 550 $
640
Miscellaneous income -
-
--------
--------
550
640
--------
--------
Share of loss from Operating
Partnerships (Note D) (28,686)
(2,982)
--------
--------
Expenses
Professional fees 530
-
Partnership management fees (Note C) 9,369
9,592
General and administrative expenses 1,481
1,931
--------
--------
11,380
11,523
--------
--------
NET LOSS $ (39,516) $
(13,865)
========
========
Net loss allocated to assignees $ (39,121) $
(13,726)
========
========
Net loss allocated to general partner $ (395) $
(139)
========
========
Net loss per BAC $ (.05) $
(.02)
========
========
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
----------------------
2000
1999
----
----
Income
Interest income $ 127 $
105
Miscellaneous income -
-
--------
--------
127
105
--------
--------
Share of Income (loss) from Operating
Operating Partnerships (Note D) 46,381
(43,301)
--------
--------
Expenses
Professional fees 3,665
-
Partnership management fees (Note C) 26,569
23,569
General and administrative expenses 2,562
2,648
--------
--------
32,796
26,217
--------
--------
NET LOSS $ 13,712 $
(69,413)
========
========
Net loss allocated to assignees $ 13,575 $
(68,719)
========
========
Net loss allocated to general partner $ 137 $
(694)
========
========
Net loss per BAC $ .00 $
(.05)
========
========
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, 2000
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Partners' capital (deficit),
April 1, 2000 $ 4,833,921 $(809,669) $
4,024,252
Net loss (580,610) (5,864)
(586,474)
---------- --------
----------
Partners' capital (deficit),
June 30, 2000 $ 4,253,311 $(815,533) $
3,437,778
========== ========
==========
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, 2000
(Unaudated)
General
Assignees Partner
Total
--------- -------
-----
Series 1
--------
Partners' capital (deficit),
April 1, 2000 $(1,487,824) $(129,396)
$(1,617,220)
Net loss (47,464) (479)
(47,943)
--------- -------- --
--------
Partners' capital (deficit),
June 30, 2000 $(1,535,288) $(129,875)
$(1,665,163)
========= ========
==========
Series 2
--------
Partners' capital (deficit),
April 1, 2000 $ 570,860 $ (64,277) $
506,583
Net loss (59,351) (600)
(59,951)
--------- -------
---------
Partners' capital (deficit),
June 30, 2000 $ 511,509 $ (64,877) $
446,632
========= =======
=========
Series 3
--------
Partners' capital (deficit),
April 1, 2000 $(1,297,906) $(267,568)
$(1,565,474)
Net loss (178,535) (1,803)
(180,338)
---------- --------
----------
Partners' capital (deficit),
June 30, 2000 $(1,476,441) $(269,371)
$(1,745,812)
========== ========
==========
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, 2000
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Series 4
--------
Partners' capital (deficit),
April 1, 2000 $ 4,053,911 $(221,783) $
3,832,128
Net loss (269,714) (2,724)
(272,438)
---------- --------
----------
Partners' capital (deficit),
June 30, 2000 $ 3,784,197 $(224,507) $
3,559,690
========== ========
=========
Series 5
--------
Partners' capital (deficit),
April 1, 2000 $ 605,927 $ (36,052) $
569,875
Net loss (39,121) (395)
(39,516)
--------- -------
---------
Partners' capital (deficit),
June 30, 2000 $ 566,806 $ (36,447) $
530,359
========= =======
=========
Series 6
--------
Partners' capital (deficit),
April 1, 2000 $2,388,953 $ (90,593) $
2,298,360
Net loss 13,575 137
13,712
--------- ------ -----
----
Partners' capital (deficit),
June 30, 2000 $2,402,528 $ (90,456)
$2,312,072
========= =======
=========
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)
2000
1999
----
----
Cash flows from operating activities:
Net loss $ (586,474)
$(1,037,190)
Adjustments
Distributions from Operating
Partnerships 12,405
3,191
Amortization -
-
Share of loss from Operating
Partnerships 335,644
796,937
Changes in assets and liabilities
Increase (Decrease) in accounts,
payable 261,306
272,047
Decrease (Increase) in other
assets (15,001)
(23,504)
----------
----------
Net cash provided by (used in)
operating activities 7,880
11,481
----------
----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 7,880
11,481
Cash and cash equivalents, beginning 149,652
160,135
----------
----------
Cash and cash equivalents, ending $ 157,532 $
171,616
==========
==========
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
-------------------------
2000
1999
----
----
Cash flows from operating activities:
Net loss $ (47,943) $
(51,458) Adjustments
Distributions received from
(refunded to)Operating Partnerships -
(1,398)
Amortization -
-
Share of loss from Operating
Partnerships -
1,544
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 45,717
46,762
Decrease (Increase) in other
assets -
-
----------
----------
Net cash provided by (used in)
operating activities (2,226)
(4,550)
----------
----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (2,226)
(4,550)
Cash and cash equivalents, beginning 11,172
6,640
----------
----------
Cash and cash equivalents, ending $ 8,946 $
2,090
==========
==========
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
-------------------------
2000
1999
----
----
Cash flows from operating activities:
Net loss $ (59,951) $
(68,569)
Adjustments
Distributions from Operating
Partnerships -
800
Amortization -
-
Share of loss from Operating
Partnerships 42,809
50,359
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 17,677
18,739
Decrease (Increase) in other
assets -
-
----------
----------
Net cash provided by (used in)
operating activities 535
1,329
----------
----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 535
1,329
Cash and cash equivalents, beginning 4,403
5,497
----------
----------
Cash and cash equivalents, ending $ 4,938 $
6,826
==========
==========
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 June 30,
(Unaudited)
Series 3
-------------------------
2000
1999
----
----
Cash flows from operating activities:
Net loss $ (180,338) $
(494,576)
Adjustments
Distributions from Operating
Partnerships -
1,029
Amortization -
-
Share of loss from Operating
Partnerships 111,970
425,895
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 77,528
70,432
Decrease (Increase) in other
assets (12,300)
-
----------
----------
Net cash provided by (used in)
operating activities (3,140)
2,780
----------
----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (3,140)
2,780
Cash and cash equivalents, beginning 7,782
2,331
----------
----------
Cash and cash equivalents, ending $ 4,642 $
5,111
==========
=========
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
-------------------------
2000
1999
----
----
Cash flows from operating activities:
Net loss $ (272,438) $
(339,309)
Adjustments
Distributions from Operating
Partnerships 2
-
Amortization -
-
Share of loss from Operating
Partnerships 198,560
272,856
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 74,384
88,853
Decrease (Increase) in other
assets (2,701)
(23,504)
---------
----------
Net cash provided by (used in)
operating activities (2,193)
(1,104)
---------
----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (2,193)
(1,104)
Cash and cash equivalents, beginning 5,558
10,320
---------
----------
Cash and cash equivalents, ending $ 3,365 $
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
-------------------------
2000
1999
----
----
Cash flows from operating activities:
Net loss $ (39,516) $
(13,865)
Adjustments
Distributions from Operating
Partnerships -
-
Amortization -
-
Share of loss from Operating
Partnerships 28,686
2,982
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 9,429
9,865
Decrease (Increase) in other
assets -
-
----------
----------
Net cash provided by (used in)
operating activities (1,401)
(1,018)
----------
----------
DECREASE IN CASH AND CASH
EQUIVALENTS (1,401)
(1,018)
Cash and cash equivalents, beginning 105,507
118,832
----------
----------
Cash and cash equivalents, ending $ 104,106 $
117,814
==========
==========
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
-------------------------
2000
1999
----
----
Cash flows from operating activities:
Net loss $ 13,712 $
(69,413)
Adjustments
Distributions from Operating
Partnerships 12,403
2,760
Amortization -
-
Share of loss (Income)from
Operating Partnerships (46,381)
43,301
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 36,571
37,396
Decrease (Increase) in other
assets -
-
----------
----------
Net cash provided by (used in)
operating activities 16,305
14,044
----------
----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 16,305
14,044
Cash and cash equivalents, beginning 15,230
16,515
----------
----------
Cash and cash equivalents, ending $ 31,535 $
30,559
==========
==========
The accompanying notes are an integral part of these
statements.
24
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS
June 30, 2000
(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,
2000 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, 2000
(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, 2000 and 1999 as follows:
2000 1999
----- -----
Series 1 $ 501 $ 1,324
Series 2 841 1,272
Series 3 887 2,433
Series 4 965 2,179
Series 5 386 904
Series 6 501 1,147
------ ------
$ 4,081 $ 9,259
====== ======
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, 2000 and 1999 are as follows:
2000 1999
---- ----
Series 1 $ 45,216 $ 45,216
Series 2 16,836 17,310
Series 3 67,497 67,497
Series 4 62,721 62,721
Series 5 9,429 9,864
Series 6 36,069 36,069
------- -------
$237,768 $238,677
======= =======
Accounts payable - affiliates at June 30, 2000 and 1999
represents
accrued general and administrative expenses, 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, 2000
(Unaudited)
NOTE C - RELATED PARTY TRANSACTIONS (continued)
As of June 30, 2000, an affiliate of the general partner
advanced a
total of $584,629 to the Partnership to pay certain operating
expenses of the Partnership, and to make advances and/or loans to
Operating Partnerships. $23,000 of the total was advanced during
the quarter ended June 30, 2000. Below is a summary, by series,
of the advances made to date.
2000
-------
Series 1 $ 76,810
Series 2 55,000
Series 3 135,550
Series 4 317,269
-------
$584,629
=======
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, 2000 and 1999, 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, 2000 and 1999,
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, 2000.
The combined unaudited summarized statements of operations
of the
Operating Partnerships for the three months ended March 31, 2000
and 1999
are as follows:
27
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2000
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)
Series 1
---------------------------
2000 1999
---- ----
Revenues
Rental $ 1,351,377 $
1,278,692
Interest and other 44,400
74,351
--------- -
--------
1,395,777
1,353,043
--------- -
--------
Expenses
Interest 348,587
304,880
Depreciation and amortization 529,536
470,060
Operating expenses 1,256,023
1,046,710
--------- --
-------
2,134,146
1,821,650
--------- -
--------
NET LOSS $ (738,369) $
(468,607)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ - $
(1,544)
=========
=========
Net loss allocated to other partners $ (7,384) $
(4,686)
=========
=========
Net loss suspended $ (730,985) $
(462,377)
=========
=========
The variance in allowable loss from the Operating Partnerships
for the three months ended March 31, 2000 and 1999 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, 2000
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)
Series 2
--------------------------
2000 1999
---- ----
Revenues
Rental $ 354,983 $
338,724
Interest and other 16,513
19,957
---------
---------
371,496
358,681
---------
---------
Expenses
Interest 71,145
106,389
Depreciation and amortization 103,220
110,529
Operating expenses 291,670
275,884
---------
---------
466,035
492,802
---------
---------
NET LOSS $ (94,539) $
(134,121)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (42,809) $
(50,359)
=========
=========
Net loss allocated to other partners $ (945) $
(1,341)
=========
=========
Net loss suspended $ (50,784) $
(82,421)
=========
=========
The variance in allowable loss from the Operating Partnerships
for the three
months ended March 31, 2000 and 1999 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, 2000
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)
Series 3
--------------------------
2000 1999
Revenues ---- ----
Rental $ 1,822,878 $
1,656,021
Interest and other 107,640
88,021
---------
---------
1,930,518
1,744,042
---------
---------
Expenses
Interest 569,298
577,450
Depreciation and amortization 642,085
621,907
Operating expenses 1,259,311
1,325,316
---------
---------
2,470,694
2,524,673
--------- ---------
NET LOSS $ (540,176) $
(780,631)
==========
==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (111,970) $
(425,895)
==========
==========
Net loss allocated to other partners $ (5,402) $
(7,806)
==========
==========
Net loss suspended $ (422,804) $
(346,930)
==========
==========
The variance in allowable loss from the Operating Partnerships
for the three
months ended March 31, 2000 and 1999 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, 2000
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)
Series 4
----------------------------
2000 1999
Revenues ---- ----
Rental $ 1,705,030 $
1,625,460
Interest and other 88,825
68,452
----------
----------
1,793,855
1,693,912
----------
----------
Expenses
Interest 628,057
661,123
Depreciation and amortization 684,657
567,629
Operating expenses 1,139,160
1,158,614
----------
----------
2,451,874
2,387,366
----------
----------
NET LOSS $ (658,019) $
(693,454)
==========
==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (198,560) $
(272,856)
==========
==========
Net loss allocated to other partners $ (6,580) $
(6,935)
==========
==========
Net loss suspended $ (452,879) $
(413,663)
==========
==========
The variance in allowable loss from the Operating Partnerships
for the three
months ended March 31, 2000 and 1999 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, 2000
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)
Series 5
--------------------------
2000 1999
Revenues ---- ----
Rental $ 170,335 $
166,530
Interest and other 14,587
16,916
-------
--------
184,922
183,446
-------
--------
Expenses
Interest 22,167
54,046
Depreciation and amortization 58,140
55,753
Operating expenses 156,043
116,971
-------
--------
236,350
226,770
-------
--------
NET LOSS $ (51,428) $
(43,324)
========
========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (28,686) $
(2,982)
========
========
Net loss allocated to other partners $ (514) $
(433)
========
========
Net loss suspended $ (22,228) $
(39,909)
========
========
The variance in allowable loss from the Operating Partnerships
for the three
months ended March 31, 2000 and 1999 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, 2000
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)
Series 6
--------------------------
2000 1999
Revenues ---- ----
Rental $1,087,304
$1,050,824
Interest and other 67,705
59,769
---------
---------
1,155,009
1,110,593
---------
---------
Expenses
Interest 291,604
333,401
Depreciation and amortization 368,160
305,245
Operating expenses 602,430
588,290
---------
---------
1,262,194
1,226,936
---------
---------
NET LOSS $ (107,185) $
(116,343)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ 46,381 $
(43,301)
=========
=========
Net loss allocated to other partners $ (1,072) $
(1,163)
=========
=========
Net loss suspended $ (152,494) $
(71,879)
=========
=========
The variance in allowable loss from the Operating Partnerships
for the three
months ended March 31, 2000 and 1999 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, 2000
(Unaudited)
NOTE E - TAXABLE LOSS
The Partnership's taxable loss for the year ended
December 31, 2000 is expected to differ from its loss for
financial reporting purposes for the year ended March 31, 2001.
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, 2000 were $237,768 and total partnership
management fees accrued as of
June 30, 2000 were $7,637,950. 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 $656,898 as payable to
affiliates. This represents advances to pay certain third party
operating expenses of the Partnership, and to make advances
and/or loans to Operating Partnerships, and accrued overhead
allocations. The breakout between series is: $84,336 in series
1, $72,767 in series 2, $160,306 in series 3, $333,580 in series
4, none in series 5, and $5,909 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
9,800,600
BACs from investors admitted as BAC Holders in Series 1 through
Series 6 of
the Partnership. Offers and sales of BACs in Series 1 through
Series 6 of the
Partnership were completed and the last of the BACs in Series 6
were issued by
the Partnership on September 29, 1989. At June 30, 2000 and 1999
the
Partnership had limited partnership equity interests in 105
Operating
Partnerships.
35
Capital Resources (continued)
-----------------
As of June 30, 2000 the Partnership had $157,532 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
$ 8,946
2 8,303,000 830,300 03/30/89 8
4,938
3 28,822,000 2,882,200 03/14/89 33
4,642
4 29,788,160 2,995,300 07/07/89 25
3,365
5 4,899,000 489,900 08/22/89 5
104,106
6 12,935,780 1,303,000 09/29/89 15
31,535
----------- --------- ---
-------
$97,746,940 9,800,600 105
$157,532
=========== ========= ===
=======
36
Results of Operations
---------------------
At June 30, 2000 and 1999 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 outstanding fees
will be repaid from sale or refinancing proceeds. The annual
partnership management fee charged to operations for the quarters
ended June 30, 2000 and 1999, net of reporting fees were $206,637
and $217,350, 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, 2000 and 1999, the average Qualified
Occupancy for the series was 100%. The series had a total of 19
properties at June 30, 2000, all of which were at 100% Qualified
Occupancy.
For the three months being reported, the series reflects a
net loss from
Operating Partnerships of $738,369. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect a net loss
of $208,833.
Substantially all of the adjusted net loss is attributable
to accrued mortgage interest not payable currently by Genesee
Commons Associates (River Park Commons), Kingston Property
Associates (Broadway East Townhomes), and Unity Park Associates
(Unity Park Phase II). All three partnerships have forbearance
agreements in place allowing the properties to pay minimal
mortgage payments while the properties continue to accrue all
interest payments due. All three properties also received
loans from the state housing agency, which were used to complete
rehabilitation work. Operations at both Genesse Commons
Associates and Kingston Property Associates appear to
37
be improving and the properties are making partial mortgage
payments.
Although the repairs have had a positive financial impact on
Genesse Commons Associates and Kingston Property Associates, due
to economic conditions in Niagra, NY, Unity Park Associates
remains unable to support itself without substantial loans from
the Operating General Partner. At this time the Operating
General Partner is negotiating a Deed-in-lieu transfer of
ownership with the State of New York. It is anticipated the
Unity Park Phase II property will be transferred to the State of
New York in August or September 2000. When the transfer occurs,
the partnership will incur recapture and interest penalties. The
Investment General Partner has estimated the overall credit yield
for 2000 to decrease by 1.0% to 1.5% as a result of the recapture
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. During 1999, the properties were
able to operate without financial assistance from the Operating
General Partner and generated positive cash flow. This
improvement in operations is expected to continue. 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.
Series 2.
--------- As of June 30, 2000 and 1999, the average Qualified
Occupancy for the series was 100% for both years. The series had
a total of eight properties at June 30, 2000 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 $94,539. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflect a
positive operations of $8,681.
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
effort to operate the properties in a more cost effective manner,
the Investment General Partner has commenced discussions with a
local third party management company to assume the role of both
Operating General Partner and Property Manager. If an agreement
can be reached, it is anticipated that they will take over
management of the properties within 30 to 45 days. Occupancy at
both Haven Park III and Haven Park IV has stabilized as a result
of repairs to unit interiors. At June 30, 2000 physical
occupancy at the properties was 100%.
Annadale Housing Partners (Kingsview Manor & Estates)
reported net losses due to operational issues associated with the
property. In order to address these issues, the Operating
General Partner hired a consultant to assist management in
aggressively marketing the property. In addition, the managing
agent hired a new on-site manager and leasing agent. As a result
of the aforementioned
38
changes, occupancy reached 92% as of December 31, 1999, 93.7% as
of March 31,
2000, and 92.3% as of June 30, 2000. In order to reduce
operating costs, a loan restructure was finalized with the first
mortgage lender. In exchange for a payment of $620,457, the
monthly mortgage payments were reduced by 79%, thereby
alleviating the property of a large monthly cash obligation. The
payment to the first mortgage holder was funded through the sale
of a portion of the Operating Partnership's future credit stream.
With the additional cash available from a lower monthly debt
service payment and increased rental rates, property operations
are anticipated to improve significantly over prior years. As
of June 30, 2000, the property has been successful in maintaining
break-even operations, and the Investment General Partner
continues to monitor this situation closely.
Series 3.
--------- As of June 30, 2000 and 1999, the average Qualified
Occupancy for the series was 99.1% and 99.7% respectively. The
series had a total of 33 properties at June 30, 2000 of which 30
were at 100% Qualified Occupancy.
For the three months being reported series reflects a net
loss from the
Operating Partnerships of $540,176. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect a positive
operation of $101,909.
Lakewood Terrace Limited Partnership (Lakewood Terrace
Apartments) operated with a net loss during 1999 primarily as a
result of the extensive amount of capital improvements that were
made during the year. A portion of the expense was reimbursed
from the replacement reserve account but the property funded the
balance of the costs through operations. Capital improvements of
this magnitude are not anticipated in 2000. Despite the fact
that occupancy averaged 97.5% during 1999, the property could not
sustain the expenses it incurred and closed the year with high
payables on their balance sheet. Occupancy continues to be
strong throughout the first six months of 2000 as evidenced by an
average of 99.6%. The Operating General Partner has been
successful in securing a four (4) year contract with HUD and has
also been granted a 2.2% rental increase. The increase in rents
and continued high occupancy should financially assist the
partnership.
The Investment General Partner continues to monitor the
operations of Lincoln Hotel Associates (Lincoln Apartments) in an
effort to improve the overall operations of the series. As of
June 30, 2000 the physical occupancy of the property was 94%.
The management company, with the assistance of area housing
agencies and a more thorough screening process, has greatly
improved the occupancy. The improved occupancy, along with
expense reductions, has resulted in a net income for the six-
month period ended June 30, 2000 of $55,352.
The property owned by California Investors VI LP (Orchard
Park) sustained a physical occupancy of 94.6% for the first six
months of 2000. This stability has been 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
39
improvements have been successful in attracting and retaining
tenants. The
property's surrounding area is experiencing economic growth which
includes a major public sports park, currently being developed
next to Orchard Park and scheduled to be completed in the fall of
2000. In addition to the park, a high school is in the process
of construction. It is however, progressing slowly and its
completion date is unknown as of this time. These types of
public development in the area should increase the quantity of
automobile traffic around Orchard Park and in turn should
continue to assist with marketing efforts. Currently, the
Investment Limited Partnership is negotiating with a third party
to assume the management of the partnership along with the
general partner interest.
Operations continue to improve at Hidden Cove Apartments
(Hidden Cove) as evidenced by stabilized occupancy and increased
rental collections. To date the property has been able to
complete minor capital improvements and fund its replacement
reserve account without financial assistance. It is anticipated
that the property will be able to operate at breakeven, barring
any significant unforeseen repairs. At this time, the Operating
General Partner has commenced negotiations with the property's
management company aimed at transferring the Operating General
Partnership interest to that entity. It is anticipated that the
addition of a local Operating General Partner will enhance the
property's ability to refinance its permanent mortgage.
Central Parkway Towers (Central Parkway Towers), continues
to experience occupancy problems. Overall physical occupancy at
the property in the second quarter of 2000 was 64%, a 6% increase
from the first quarter figure of 58%. Management reports that the
low occupancy results from residents having more housing options
available to them. The low occupancy continues to result in
operating deficits, accrued liabilities, and deferred
maintenance. The Operating General Partner notified the
Investment General Partner in January 2000 of its intention not
to fund further operating shortfalls as its required
obligation of $600,000 had been fulfilled. Since that time the
Operating General Partner has become more willing to be a part of
the turnaround solution. Management recently signed a contract
with the city for a 15 unit set aside - this represented an
increase over its previous commitment of 10 units. The increased
city funding was retroactive to January 1, 2000, and management
is continuing its efforts towards renegotiating a final contract
with the County Mental Health Board to increase the County's
commitment beyond 15 units. Management has also initiated
discussions with the Hamilton County Corrections Board regarding
its interest in utilizing a portion of the property's units.
Management continues to work with city, state, and federal
agencies to expand referrals and contracts. In June, the
Investment General Partner met with the lessor to further explore
options for dealing with the financial problems at the property.
The lessor would not agree to an outright reduction of the lease
payment. However, it will consider restructuring the property's
lease payment to one that is based on the greater of cash flow or
a yet to be decided set minimum dollar amount. The lessor also
indicated a willingness to work together with the Investment
General Partner to jointly seek additional housing support
agencies who would be willing to commit to blocks of units and to
jointly seek operating deficit support from various agency
sources.
40
The Operating General Partner of Rainbow Housing
Associates (Rainbow Apartments) has notified the Investment
General Partner that the State Housing Credit Agency has filed
Form 8823 with the Internal Revenue Service indicating certain
instances of non-compliance with IRS Section 42 code and
regulations. The Operating General Partner engaged legal counsel
to respond to the content of Form 8823 and as of this date, that
response was in the final stages of completion. At this time,
the Operating General Partner and its counsel do not anticipate
an outcome that would have a material effect on the Partnership.
Series 4.
--------- As of June 30, 2000 and 1999, the average Qualified
Occupancy for the series was 100% for both years. The series had
a
total of 25 properties at June 30, 2000, 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 $658,019. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflect
positive operations of $26,638.
While overall positive operations are being reported, Unity
Park Associates (Unity Park Phase II) continues to operate at a
loss. 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.
In addition, Unity Park Associates received loans from the state
housing agency, which were used to complete rehabilitation work.
However, due to economic conditions in Niagra, NY, the property
remains unable to support itself without substantial loans from
the Operating General Partner. The Operating General Partner is
negotiating a Deed-in-lieu transfer of ownership with the State
of New York. It is anticipated the Unity Park Phase II property
will be transferred to the State of New York in August or
September 2000. When the transfer occurs, the partnership will
incur recapture and interest penalties. The Investment General
Partner has estimated the overall credit yield for 2000 to
decrease by 3.0% to 3.5% as a result of the recapture.
Central Parkway Towers (Central Parkway Towers), continues
to experience occupancy problems. Overall physical occupancy at
the property in the second quarter of 2000 was 64%, a 6% increase
from the first quarter figure of 58%. Management reports that the
low occupancy results from residents having more housing options
available to them. The low occupancy continues to result in
operating deficits, accrued liabilities, and deferred
maintenance. The Operating General Partner notified the
Investment General Partner in January 2000 of its intention not
to fund further operating shortfalls as its required obligation
of $600,000 had been fulfilled. Since that time the Operating
General Partner has become more willing to be a part of the
turnaround solution. Management recently signed a contract with
the city for a 15 unit set aside - this represented an increase
over its previous commitment of 10 units. The increased city
funding was retroactive to January 1, 2000, and management is
continuing its efforts towards renegotiating a final contract
with the County Mental Health Board to increase the County's
commitment beyond
41
15 units. Management has also initiated discussions with the
Hamilton County Corrections Board regarding its interest in
utilizing a portion of the property's units. Management
continues to work with city, state, and federal agencies to
expand referrals and contracts. In June, the Investment General
Partner met with the lessor to further explore options for
dealing with the financial problems at the property. The lessor
would not agree to an outright reduction of the lease payment.
However, it will consider restructuring the property's lease
payment to one that is based on the greater of cash flow or a yet
to be decided set minimum dollar amount. The lessor also
indicated a willingness to work together with the Investment
General Partner to jointly seek additional housing support
agencies who would be willing to commit to blocks of units and to
jointly seek operating deficit support from various agency
sources.
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 effort to
operate the properties in a more cost effective manner, the
Investment General Partner has commenced discussions with a local
third party management company to assume the role of both
Operating General Partner and Property Manager. If an agreement
can be reached it is anticipated that they will take over
management of the properties within 30 to 45 days. As a result
of repairs to unit interiors, occupancy levels have stabilized.
At June 30, 2000 physical occupancy at Haven Park II was 93%.
Series 5.
--------- As of June 30, and 1999, the average Qualified
Occupancy for the series was 100% for both years. The series had
a total of five properties at June 30, 2000, 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 $51,428. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflect a
positive operation of $6,712.
Annadale Housing Partners (Kingsview Manor & Estates)
reported net losses due to operational issues associated with the
property. In order to address these issues, the Operating
General Partner hired a consultant to assist management in
aggressively marketing the property. In addition, the managing
agent hired a new on-site manager and leasing agent. As a result
of the aforementioned changes, occupancy reached 92% as of
December 31, 1999, 93.7% as of March 31, 2000, and 92.3% as of
June 30, 2000. In order to reduce operating costs, a loan
restructure was finalized with the first mortgage lender. In
exchange for a payment of $620,457, the monthly mortgage payments
were reduced by 79%, thereby alleviating the property of a large
monthly cash obligation. The payment to the first mortgage
holder was funded through the sale of a portion of the Operating
Partnership's future credit stream. With the additional cash
available from a lower monthly debt service payment and increased
rental rates, property operations are anticipated to improve
significantly from prior years. As of June 30, 2000, the
property has been successful in maintaining break-even
operations. The Investment General Partner continues to monitor
this situation closely.
42
The property owned by Glenhaven Part Partners, A
California L.P. (Glenhaven Estates) continues to suffer from
excessive operating expenses compared to operating income. In an
effort to operate the properties in a more cost effective manner,
the Investment General Partner has commenced discussions with a
local third party management company to assume the role of both
Operating General Partner and Property Manager. If an agreement
can be reached it is anticipated that they will take over
management of the properties within 30 to 45 days. As a result
of repairs to unit interiors, occupancy was expected to
stabilize, however due largely to tenant evictions, the property
has experienced high turnover. Occupancy as of June 30, 2000 was
83%.
Series 6.
--------- As of June 30, 2000 and 1999, the average Qualified
Occupancy for the series was 100% for both years. The series had
a total of 15 properties at June 30, 2000, 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 $107,185. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect positive
operations of
$260,975.
Year 2000 Compliance
--------------------
As previously stated in the Partnership'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 happy to announce that we did not
experience any computer-related problems as a result of this date
change and therefore, there was no impact on our investors.
43
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.
44
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: June 15, 2000 By: /S/ John P. Manning
---------------------------
John P. Manning,
Partner & Principal Financial
Officer
45
