FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 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 December 31, 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
December 31, March 31,
1999 1999
(Unaudited) (Audited)
------------ ------------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $11,128,808 $12,964,520
OTHER ASSETS
Cash and cash equivalents 150,446 160,135
Other assets 744,825 721,229
---------- ----------
$12,024,079 $13,845,884
========== ==========
LIABILITIES
Accounts payable $ - $ -
Accounts payable - affiliates (Note C) 7,786,701 6,969,091
---------- ----------
PARTNERS' CAPITAL
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $10 stated
value per BAC, 9,800,600 issued and 5,044,914 7,657,936
outstanding
General Partner (807,536) (781,143)
---------- ----------
4,237,378 6,876,793
---------- ----------
$12,024,079 $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
---------------------------
December 31, March 31,
1999 1999
(Unaudited) (Audited)
---------- ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 15,104 $ 22,969
OTHER ASSETS
Cash and cash equivalents 11,278 6,640
Other assets 68,113 68,113
--------- ---------
$ 94,495 $ 97,722
========= =========
LIABILITIES
Accounts payable $ - $ -
Accounts payable - affiliates (Note C) 1,650,572 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 (1,427,293) (1,272,705)
outstanding
General Partner (128,784) (127,223)
--------- ---------
(1,556,077) (1,399,928)
--------- ---------
$ 94,495 $ 97,722
========= =========
The accompanying notes are an integral part of these statements.
2
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 2
----------------------------
December 31, March 31,
1999 1999
ASSETS (Unaudited) (Audited)
----------- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 611,263 $ 731,325
OTHER ASSETS
Cash and cash equivalents 5,572 5,497
Other assets 360,285 360,285
--------- ---------
$ 977,120 $1,097,107
========= =========
LIABILITIES
Accounts payable $ - $ -
Accounts payable - affiliates (Note C) 543,975 479,154
--------- ---------
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 498,156 681,116
General Partner (65,011) (63,163)
--------- ---------
433,145 617,953
--------- ---------
$ 977,120 $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
----------------------------
December 31, March 31,
1999 1999
ASSETS (Unaudited) (Audited)
----------- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 569,782 $1,289,310
OTHER ASSETS
Cash and cash equivalents 4,499 2,331
Other assets 41,661 41,861
--------- ---------
$ 615,942 $1,333,502
========= =========
LIABILITIES
Accounts payable $ - $ -
Accounts payable - affiliates (Note C) 2,125,737 1,898,749
--------- ---------
PARTNERS' CAPITAL
Assignees
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $10 stated
value per BAC, 2,882,200 issued and
outstanding (1,242,784) (307,681)
General Partner (267,011) (257,566)
--------- ---------
(1,509,795) (565,247)
--------- ---------
$ 615,942 $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
----------------------------
December 31, March 31,
1999 1999
(Unaudited) (Audited)
------------ ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 5,916,823 $ 6,648,529
OTHER ASSETS
Cash and cash equivalents 4,580 10,320
Other assets 241,361 217,857
---------- ----------
$ 6,162,764 $ 6,876,706
========== ==========
LIABILITIES
Accounts payable $ - $ -
Accounts payable - affiliates (Note C) 2,035,020 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 4,346,571 5,284,067
General Partner (218,827) (209,357)
---------- ----------
4,127,744 5,074,710
---------- ----------
$ 6,162,764 $ 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
----------------------------
December 31, March 31,
1999 1999
(Unaudited) (Audited)
------------ ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $ 549,710 $ 598,143
OTHER ASSETS
Cash and cash equivalents 108,142 118,832
Other assets 33,405 33,113
--------- ---------
$ 691,257 $ 750,088
========= =========
LIABILITIES
Accounts payable $ - $ -
Accounts payable - affiliates (Note C) 176,328 146,736
--------- ---------
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 551,530 639,069
General Partner (36,601) (35,717)
--------- ---------
514,929 603,352
--------- ---------
$ 691,257 $ 750,088
========= =========
The accompanying notes are an integral part of these statements.
6
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
SERIES 6
----------------------------
December 31, March 31,
1999 1999
(Unaudited) (Audited)
------------ ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $3,466,126 $3,674,244
OTHER ASSETS
Cash and cash equivalents 16,375 16,515
Other assets - -
--------- ---------
$3,482,501 $3,690,759
========= =========
LIABILITIES
Accounts payable $ - $ -
Accounts payable - affiliates (Note C) 1,255,069 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 2,318,734 2,634,070
General Partner (91,302) (88,117)
--------- ---------
2,227,432 2,545,953
--------- ---------
$3,482,501 $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 December 31,
(Unaudited)
1999 1998
---- ----
Income
Interest income $ 744 $ 1,046
Miscellaneous income 843 -
---------- ----------
1,587 1,046
---------- ----------
Share of loss from Operating
Partnerships (Note D) (494,471) (728,530)
---------- ----------
Expenses
Professional fees 1,056 2,174
Partnership management fees (Note C) 227,677 233,677
General and administrative expenses 15,163 6,690
---------- ----------
243,896 242,541
---------- ----------
NET LOSS $ (736,780) $ (970,025)
========== ==========
Net loss allocated to assignees $ (729,412) $ (960,325)
========== ==========
Net loss allocated to general partner $ (7,368) $ (9,700)
========== ==========
Net loss per BAC $ (.36) $ (.50)
========== ==========
The accompanying notes are an integral part of these statements.
8
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
SERIES 1
-----------------------
1999 1998
---- ----
Income
Interest income $ 46 $ 40
Miscellaneous income 843 -
-------- --------
889 40
-------- --------
Share of gain (loss) from Operating
Partnerships (Note D) 351 -
-------- --------
Expenses
Professional fees 176 309
Partnership management fees (Note C) 36,216 45,216
General and administrative expenses 1,916 873
-------- --------
38,308 46,398
-------- --------
NET LOSS $ (37,068) $ (46,358)
======== ========
Net loss allocated to assignees $ (36,697) $ (45,894)
======== ========
Net loss allocated to general partner $ (371) $ (464)
======== ========
Net loss per BAC $ (.02) $ (.04)
======== ========
The accompanying notes are an integral part of these statements.
9
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
SERIES 2
----------------------
1999 1998
---- ----
Income
Interest income $ 31 $ 38
Miscellaneous income - -
-------- --------
31 38
-------- --------
Share of loss from Operating
Partnerships (Note D) (38,424) (57,315)
-------- --------
Expenses
Professional fees 176 232
Partnership management fees (Note C) 17,310 17,310
General and administrative expenses 1,738 906
-------- --------
19,224 18,448
-------- --------
NET LOSS $ (57,617) $ (75,725)
======== ========
Net loss allocated to assignees $ (57,041) $ (74,968)
======== ========
Net loss allocated to general partner $ (576) $ (757)
======== ========
Net loss per BAC $ (.06) $ (.09)
======== ========
The accompanying notes are an integral part of these statements.
10
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
SERIES 3
----------------------
1999 1998
---- ----
Income
Interest income $ 15 $ 37
Miscellaneous income - -
-------- --------
15 37
-------- --------
Share of loss from Operating
Partnerships (Note D) (160,652) (304,820)
-------- --------
Expenses
Professional Fees 176 646
Partnership management fees (Note C) 65,497 65,497
General and administrative expenses 4,433 1,564
-------- --------
70,106 67,707
-------- --------
NET LOSS $(230,743) $(372,490)
======== ========
Net loss allocated to assignees $(228,436) $(368,765)
======== ========
Net loss allocated to general partner $ (2,307) $ (3,725)
======== ========
Net loss per BAC $ (.08) $ (.12)
======== ========
The accompanying notes are an integral part of these statements.
11
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
SERIES 4
----------------------
1999 1998
---- ----
Income
Interest income $ 9 $ 91
Miscellaneous income - -
-------- --------
9 91
-------- --------
Share of loss from Operating
Partnerships (Note D) (207,484) (274,137)
-------- --------
Expenses
Professional fees 176 582
Partnership management fees (Note C) 62,721 59,721
General and administrative expenses 4,095 1,497
-------- --------
66,992 61,800
-------- --------
NET LOSS $(274,467) $(335,846)
======== ========
Net loss allocated to assignees $(271,722) $(332,488)
======== ========
Net loss allocated to general partner $ (2,745) $ (3,358)
======== ========
Net loss per BAC $ (.09) $ (.11)
======== ========
The accompanying notes are an integral part of these statements.
12
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
SERIES 5
----------------------
1999 1998
---- ----
Income
Interest income $ 566 $ 744
Miscellaneous income - -
-------- --------
566 744
-------- --------
Share of loss from Operating
Partnerships (Note D) (13,830) (25,990)
-------- --------
Expenses
Professional fees 176 146
Partnership management fees (Note C) 9,864 9,864
General and administrative expenses 1,395 1,052
-------- --------
11,435 11,062
-------- --------
NET LOSS $ (24,699) $ (36,308)
======== ========
Net loss allocated to assignees $ (24,452) $ (35,945)
======== ========
Net loss allocated to general partner $ (247) $ (363)
======== ========
Net loss per BAC $ (.04) $ (.07)
======== ========
The accompanying notes are an integral part of these statements.
13
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
SERIES 6
----------------------
1999 1998
---- ----
Income
Interest income $ 77 $ 96
Miscellaneous income - -
-------- --------
77 96
-------- --------
Share of loss from Operating
Partnerships (Note D) (74,432) (66,268)
-------- --------
Expenses
Professional fees 176 259
Partnership management fees (Note C) 36,069 36,069
General and administrative expenses 1,586 798
-------- --------
37,831 37,126
-------- --------
NET LOSS $(112,186) $(103,298)
======== ========
Net loss allocated to assignees $(111,064) $(102,265)
======== ========
Net loss allocated to general partner $ (1,122) $ (1,033)
======== ========
Net loss per BAC $ (.07) $ (.07)
======== ========
The accompanying notes are an integral part of these statements.
1
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
1999 1998
---- ----
Income
Interest income $ 2,615 $ 3,501
Miscellaneous income 843 -
---------- ----------
3,458 3,501
---------- ----------
Share of loss from Operating
Partnerships (Note D) (1,832,521) (2,287,150)
---------- ----------
Expenses
Professional fees 73,106 86,476
Partnership management fees (Note C) 683,704 684,925
General and administrative expenses 53,542 44,273
---------- ----------
810,352 815,674
---------- ----------
NET LOSS $(2,639,415) $(3,099,323)
========== ==========
Net loss allocated to assignees $(2,613,022) $(3,068,330)
========== ==========
Net loss allocated to general partner $ (26,393) $ (30,993)
========== ==========
Net loss per BAC $ (1.37) $ (1.65)
========== ==========
The accompanying notes are an integral part of these statements.
15
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 1
-----------------------
1999 1998
---- ----
Income
Interest income $ 130 $ 234
Miscellaneous income 843 -
-------- --------
973 234
-------- --------
Share of loss from Operating
Partnerships (Note D) (9,263) -
-------- --------
Expenses
Professional fees 12,736 16,361
Partnership management fees (Note C) 127,648 131,648
General and administrative expenses 7,475 5,603
-------- --------
147,859 153,612
-------- --------
NET LOSS $ (156,149) $(153,378)
======== ========
Net loss allocated to assignees $ (154,588) $(151,844)
======== ========
Net loss allocated to general partner $ (1,561) $ (1,534)
======== ========
Net loss per BAC $ (.12) $ (.11)
======== ========
The accompanying notes are an integral part of these statements.
16
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 2
----------------------
1999 1998
---- ----
Income
Interest income $ 128 $ 90
Miscellaneous income - -
-------- --------
128 90
-------- --------
Share of loss from Operating
Partnerships (Note D) (119,263) (146,877)
-------- --------
Expenses
Professional fees 9,251 10,699
Partnership management fees (Note C) 50,052 50,053
General and administrative expenses 6,370 5,568
-------- --------
65,673 66,320
-------- --------
NET LOSS $(184,808) $(213,107)
======== ========
Net loss allocated to assignees $(182,960) $(210,976)
======== ========
Net loss allocated to general partner $ (1,848) $ (2,131)
======== ========
Net loss per BAC $ (.21) $ (.25)
======== ========
The accompanying notes are an integral part of these statements.
17
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 3
----------------------
1999 1998
---- ----
Income
Interest income $ 108 $ 220
Miscellaneous income - -
-------- --------
108 220
-------- --------
Share of loss from Operating
Partnerships (Note D) (718,499) (1,037,678)
-------- ---------
Expenses
Professional Fees 15,876 18,438
Partnership management fees (Note C) 195,441 193,034
General and administrative expenses 14,840 12,244
-------- ---------
226,157 223,716
-------- ---------
NET LOSS $(944,548) $(1,261,174)
======== =========
Net loss allocated to assignees $(935,103) $(1,248,562)
======== =========
Net loss allocated to general partner $ (9,445) $ (12,612)
======== =========
Net loss per BAC $ (.32) $ (.43)
======== =========
The accompanying notes are an integral part of these statements.
1
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 4
----------------------
1999 1998
---- ----
Income
Interest income $ 140 $ 124
Miscellaneous income - -
-------- --------
140 124
-------- --------
Share of loss from Operating
Partnerships (Note D) (731,704) (751,737)
-------- --------
Expenses
Professional fees 15,556 18,354
Partnership management fees (Note C) 185,536 185,163
General and administrative expenses 14,310 11,407
-------- --------
215,402 214,924
-------- --------
NET LOSS $(946,966) $(966,537)
======== ========
Net loss allocated to assignees $(937,496) $(956,872)
======== ========
Net loss allocated to general partner $ (9,470) $ (9,665)
======== ========
Net loss per BAC $ (.31) $ (.32)
======== ========
The accompanying notes are an integral part of these statements.
1
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 5
----------------------
1999 1998
---- ----
Income
Interest income $ 1,782 $ 2,440
Miscellaneous income - -
-------- --------
1,782 2,440
-------- --------
Share of loss from Operating
Partnerships (Note D) (48,432) (83,528)
-------- --------
Expenses
Professional fees 7,776 9,138
Partnership management fees (Note C) 29,320 29,320
General and administrative expenses 4,677 4,665
-------- --------
41,773 43,123
-------- --------
NET LOSS $ (88,423) $(124,211)
======== ========
Net loss allocated to assignees $ (87,539) $(122,969)
======== ========
Net loss allocated to general partner $ (884) $ (1,242)
======== ========
Net loss per BAC $ (.17) $ (.25)
======== ========
The accompanying notes are an integral part of these statements.
20
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
SERIES 6
----------------------
1999 1998
---- ----
Income
Interest income $ 327 $ 393
Miscellaneous income - -
-------- --------
327 393
-------- --------
Share of loss from Operating
Partnerships (Note D) (205,360) (267,330)
-------- --------
Expenses
Professional fees 11,911 13,486
Partnership management fees (Note C) 95,707 95,707
General and administrative expenses 5,870 4,786
-------- --------
113,488 113,979
-------- --------
NET LOSS $(318,521) $(380,916)
======== ========
Net loss allocated to assignees $(315,336) $(377,107)
======== ========
Net loss allocated to general partner $ (3,185) $ (3,809)
======== ========
Net loss per BAC $ (.24) $ (.29)
======== ========
The accompanying notes are an integral part of these statements.
2
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Nine Months Ended December 31, 1999
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Partners' capital (deficit),
April 1, 1999 $ 7,657,936 $(781,143) $ 6,876,793
Net loss (2,613,022) (26,393) (2,639,415)
---------- -------- ----------
Partners' capital (deficit),
December 31, 1999 $ 5,044,914 $(807,536) $ 4,237,378
========== ======== ==========
The accompanying notes are an integral part of these statements.
22
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Nine Months Ended December 31, 1999
(Unaudated)
General
Assignees Partner Total
--------- ------- -----
Series 1
- --------
Partners' capital (deficit),
April 1, 1999 $(1,272,705) $(127,223) $(1,399,928)
Net loss (154,588) (1,561) (156,149)
--------- -------- ----------
Partners' capital (deficit),
December 31, 1999 $(1,427,293) $(128,784) $(1,556,077)
========= ======== ==========
Series 2
- --------
Partners' capital (deficit),
April 1, 1999 $ 681,116 $ (63,163) $ 617,953
Net loss (182,960) (1,848) (184,808)
--------- ------- ---------
Partners' capital (deficit),
December 31, 1999 $ 498,156 $ (65,011) $ 433,145
========= ======= =========
Series 3
- --------
Partners' capital (deficit),
April 1, 1999 $ (307,681) $(257,566) $ (565,247)
Net loss (935,103) (9,445) (944,548)
---------- -------- ----------
Partners' capital (deficit),
December 31, 1999 $(1,242,784) $(267,011) $(1,509,795)
========== ======== ==========
The accompanying notes are an integral part of these statements.
2
Boston Capital Tax Credit Fund Limited Partnership
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Nine Months Ended December 31, 1999
(Unaudited)
General
Assignees Partner Total
--------- ------- -----
Series 4
- --------
Partners' capital (deficit),
April 1, 1999 $ 5,284,067 $(209,357) $ 5,074,710
Net loss (937,496) (9,470) (946,966)
---------- -------- ----------
Partners' capital (deficit),
December 31, 1999 $ 4,346,571 $(218,827) $ 4,127,744
========== ======== =========
Series 5
- --------
Partners' capital (deficit),
April 1, 1999 $ 639,069 $ (35,717) $ 603,352
Net loss , (87,539) (884) (88,423)
--------- ------- ---------
Partners' capital (deficit),
December 31, 1999 $ 551,530 $ (36,601) $ 514,929
========= ======= =========
Series 6
- --------
Partners' capital (deficit),
April 1, 1999 $2,634,070 $ (88,117) $ 2,545,953
Net loss (315,336) (3,185) (318,521)
--------- ------ ---------
Partners' capital (deficit),
December 31, 1999 $2,318,734 $ (91,302) $2,227,432
========= ======= =========
The accompanying notes are an integral part of these statements.
2
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
1999 1998
---- ----
Cash flows from operating activities:
Net loss $(2,639,415) $(3,099,323)
Adjustments
Distributions from Operating
Partnerships 3,194 9,788
Amortization - -
Share of loss from Operating
Partnerships 1,832,521 2,287,150
Changes in assets and liabilities
Increase (Decrease) in accounts,
payable 817,608 837,694
Decrease (Increase) in other
assets (23,597) (44,990)
---------- ----------
Net cash provided by (used in)
operating activities (9,689) (9,681)
---------- ----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS (9,689) (9,681)
Cash and cash equivalents, beginning 160,135 176,885
---------- ----------
Cash and cash equivalents, ending $ 150,446 $ 167,204
========== ==========
The accompanying notes are an integral part of these statements.
25
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 1
-------------------------
1999 1998
---- ----
Cash flows from operating activities:
Net loss $ (156,149) $ (153,378)
Adjustments
Distributions received from
(refunded to)Operating Partnerships (1,398) -
Amortization - -
Share of loss from Operating
Partnerships 9,263 -
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 152,922 144,825
Decrease (Increase) in other
assets - -
---------- ----------
Net cash provided by (used in)
operating activities 4,638 (8,553)
---------- ----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 4,638 (8,553)
Cash and cash equivalents, beginning 6,640 15,351
---------- ----------
Cash and cash equivalents, ending $ 11,278 $ 6,798
========== ==========
The accompanying notes are an integral part of these statements.
2
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 2
-------------------------
1999 1998
---- ----
Cash flows from operating activities:
Net loss $ (184,808) $ (213,107)
Adjustments
Distributions from Operating
Partnerships 800 -
Amortization - -
Share of loss from Operating
Partnerships 119,263 146,877
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 64,820 68,777
Decrease (Increase) in other
assets - -
---------- ----------
Net cash provided by (used in)
operating activities 75 2,547
---------- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 75 2,547
Cash and cash equivalents, beginning 5,497 3,977
---------- ----------
Cash and cash equivalents, ending $ 5,572 $ 6,524
========== ==========
The accompanying notes are an integral part of these statements.
2
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 3
-------------------------
1999 1998
---- ----
Cash flows from operating activities:
Net loss $ (944,548) $(1,261,174)
Adjustments
Distributions from Operating
Partnerships 1,029 -
Amortization - -
Share of loss from Operating
Partnerships 718,499 1,037,678
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 226,988 213,905
Decrease (Increase) in other
assets 200 -
---------- ----------
Net cash provided by (used in)
operating activities 2,168 (9,591)
---------- ----------
INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 2,168 (9,591)
Cash and cash equivalents, beginning 2,331 14,333
---------- ----------
Cash and cash equivalents, ending $ 4,499 $ 4,742
========== =========
The accompanying notes are an integral part of these statements.
28
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 4
-------------------------
1999 1998
---- ----
Cash flows from operating activities:
Net loss $ (946,966) $ (966,537)
Adjustments
Distributions from Operating
Partnerships 3 -
Amortization - -
Share of loss from Operating
Partnerships 731,704 751,737
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 233,024 271,268
Decrease (Increase) in other
assets (23,505) (44,990)
--------- ----------
Net cash provided by (used in)
operating activities (5,740) 11,478
--------- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (5,740) 11,478
Cash and cash equivalents, beginning 10,320 1,955
--------- ----------
Cash and cash equivalents, ending $ 4,580 $ 13,433
========= ==========
The accompanying notes are an integral part of these statements.
2
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 5
-------------------------
1999 1998
---- ----
Cash flows from operating activities:
Net loss $ (88,423) $ (124,211)
Adjustments
Distributions from Operating
Partnerships - -
Amortization - -
Share of loss from Operating
Partnerships 48,432 83,528
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 29,593 29,592
Decrease (Increase) in other
assets (292) -
---------- ----------
Net cash provided by (used in)
operating activities (10,690) (11,091)
---------- ----------
DECREASE IN CASH AND CASH
EQUIVALENTS (10,690) (11,091)
Cash and cash equivalents, beginning 118,832 130,957
---------- ----------
Cash and cash equivalents, ending $ 108,142 $ 119,866
========== ==========
The accompanying notes are an integral part of these statements.
3
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 6
-------------------------
1999 1998
---- ----
Cash flows from operating activities:
Net loss $ (318,521) $ (380,916)
Adjustments
Distributions from Operating
Partnerships 2,760 9,788
Amortization - -
Share of loss from Operating
Partnerships 205,360 267,330
Changes in assets and liabilities
Increase (Decrease) in accounts
payable 110,261 109,327
Decrease (Increase) in other
assets - -
---------- ----------
Net cash provided by (used in)
operating activities (140) 5,529
---------- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (140) 5,529
Cash and cash equivalents, beginning 16,515 10,312
---------- ----------
Cash and cash equivalents, ending $ 16,375 $ 15,841
========== ==========
The accompanying notes are an integral part of these statements.
3
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS
December 31, 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 December 31,
1999 and for the three and nine months then ended have been prepared by the
Partnership, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. The Partnership accounts for its
investments in Operating Partnerships using the equity method, whereby the
Partnership adjusts its investment cost for its share of each Operating
Partnership's results of operations and for any distributions received or
accrued. Costs incurred by the Partnership in acquiring the investments in
Operating Partnerships are capitalized to the investment account. The
Partnership's accounting and financial reporting policies are in conformity
with generally accepted accounting principles and include adjustments in
interim periods considered necessary for a fair presentation of the results of
operations. Such adjustments are of a normal recurring nature. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations. It is suggested
3
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 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 December 31, 1999 and 1998 as follows:
1999 1998
----- -----
Series 1 $ 217 $ 873
Series 2 535 906
Series 3 578 1,564
Series 4 651 1,497
Series 5 361 1,052
Series 6 217 798
------ ------
$ 2,559 $ 6,690
====== ======
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 December 31, 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 December 31, 1999 and 1998 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.
3
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1999
(Unaudited)
NOTE C - RELATED PARTY TRANSACTIONS (continued)
As of December 31, 1999, an affiliate of the general partner advanced a
total of $561,629 to the Partnership to pay certain operating expenses of the
Partnership, and to make advances and/or loans to Operating Partnerships.
$12,000 of the total was advanced during the quarter ended December 31, 1999.
Below is a summary, by series, of the advances made to date.
1999
-------
Series 1 $ 76,810
Series 2 55,000
Series 3 123,250
Series 4 306,569
-------
$561,629
=======
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 December 31, 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 December 31, 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 nine months ended September 30, 1999.
The combined unaudited summarized statements of operations of the
Operating Partnerships for the nine months ended September 30, 1999 and 1998
are as follows:
3
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 1
---------------------------
1999 1998
---- ----
Revenues
Rental $ 3,858,377 $ 3,743,681
Interest and other 174,614 204,759
--------- ---------
4,032,991 3,948,440
--------- ---------
Expenses
Interest 864,990 882,421
Depreciation and amortization 1,414,434 1,273,520
Operating expenses 3,075,683 3,036,220
--------- ---------
5,355,107 5,192,161
--------- ---------
NET LOSS $(1,322,116) $(1,243,721)
========= =========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (9,263) $ -
========= =========
Net loss allocated to other partners $ (13,221) $ (12,437)
========= =========
Net loss suspended $(1,299,632) $(1,231,284)
========= =========
The variance in allowable loss from the Operating Partnerships for the nine
months ended September 30, 1999 and 1998 is mainly a result of the way the
Partnership accounts for its investment in Operating Partnerships. The
Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
35
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 2
--------------------------
1999 1998
---- ----
Revenues
Rental $ 1,023,514 $ 1,007,293
Interest and other 58,490 51,548
--------- ---------
1,082,004 1,058,841
--------- ---------
Expenses
Interest 318,684 318,197
Depreciation and amortization 319,735 289,651
Operating expenses 835,621 781,176
--------- ---------
1,474,040 1,389,024
--------- ---------
NET LOSS $ (392,036) $ (330,183)
========= =========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (119,263) $ (146,877)
========= =========
Net loss allocated to other partners $ (3,920) $ (3,302)
========= =========
Net loss suspended $ (268,853) $ (180,004)
========= =========
The variance in allowable loss from the Operating Partnerships for the nine
months ended September 30, 1999 and 1998 is mainly a result of the way the
Partnership accounts for its investment in Operating Partnerships. The
Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for an distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
3
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 3
--------------------------
1999 1998
Revenues ---- ----
Rental $ 5,008,225 $ 4,725,112
Interest and other 268,309 354,234
--------- ---------
5,276,534 5,079,346
--------- ---------
Expenses
Interest 1,638,669 1,775,719
Depreciation and amortization 1,811,911 1,854,350
Operating expenses 3,598,447 3,332,434
--------- ---------
7,049,027 6,962,503
--------- ---------
NET LOSS $(1,772,493) $(1,883,157)
========== ==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (718,499) $(1,037,678)
========== ==========
Net loss allocated to other partners $ (17,725) $ (18,832)
========== ==========
Net loss suspended $(1,036,269) $ (826,647)
========== ==========
The variance in allowable loss from the Operating Partnerships for the nine
months ended September 30, 1999 and 1998 is mainly a result of the way the
Partnership accounts for its investment in Operating Partnerships. The
Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
37
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 4
----------------------------
1999 1998
Revenues ---- ----
Rental $ 4,961,810 $ 4,881,294
Interest and other 212,087 205,532
---------- ----------
5,173,897 5,086,826
---------- ----------
Expenses
Interest 1,984,464 1,997,669
Depreciation and amortization 1,692,487 1,725,521
Operating expenses 3,208,122 3,050,801
---------- ----------
6,885,073 6,773,991
---------- ----------
NET LOSS $(1,711,176) $(1,687,165)
========== ==========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (731,704) $ (751,737)
========== ==========
Net loss allocated to other partners $ (17,112) $ (16,872)
========== ==========
Net loss suspended $ (962,360) $ (918,556)
========== ==========
The variance in allowable loss from the Operating Partnerships for the nine
months ended September 30, 1999 and 1998 is mainly a result of the way the
Partnership accounts for its investment in Operating Partnerships. The
Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
3
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 5
--------------------------
1999 1998
Revenues ---- ----
Rental $ 497,211 $ 493,991
Interest and other 44,228 50,457
------- --------
541,439 544,448
------- --------
Expenses
Interest 174,047 192,991
Depreciation and amortization 172,379 179,939
Operating expenses 374,256 361,326
------- --------
720,682 734,256
------- --------
NET LOSS $(179,243) $(189,808)
======== ========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (48,432) $ (83,528)
======== ========
Net loss allocated to other partners $ (1,792) $ (1,898)
======== ========
Net loss suspended $(129,019) $(104,382)
======== ========
The variance in allowable loss from the Operating Partnerships for the nine
months ended September 30, 1999 and 1998 is mainly a result of the way the
Partnership accounts for its investment in Operating Partnerships. The
Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
39
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 6
--------------------------
1999 1998
Revenues ---- ----
Rental $3,249,975 $3,140,413
Interest and other 152,977 199,914
--------- ---------
3,402,952 3,340,327
--------- ---------
Expenses
Interest 1,212,338 890,423
Depreciation and amortization 916,267 1,019,185
Operating expenses 1,843,364 1,932,019
--------- ---------
3,971,969 3,841,627
--------- ---------
NET LOSS $ (569,017) $ (501,300)
========= =========
Net loss allocated to Boston
Capital Tax Credit Fund
Limited Partnership $ (205,360) $ (267,330)
========= =========
Net loss allocated to other partners $ (5,690) $ (5,013)
========= =========
Net loss suspended $ (357,967) $ (228,957)
========= =========
The variance in allowable loss from the Operating Partnerships for the nine
months ended September 30, 1999 and 1998 is mainly a result of the way the
Partnership accounts for its investment in Operating Partnerships. The
Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
40
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 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.
4
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity
- ---------
The Partnership's primary source of funds was the proceeds of its
Public Offering. Other sources of liquidity include (i) interest earned on
working capital reserves, and (ii) cash distributions from the Operating
Partnerships in which the Partnership has invested. These sources of
liquidity are available to meet the obligations of the Partnership.
The Partnership is currently accruing the annual partnership management
fee. Partnership management fees accrued during the quarter ended December
31, 1999 were $238,677 and total partnership management fees accrued as of
December 31, 1999 were $7,161,505. 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 $625,195 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 are: $83,118 in
series 1, $70,835 in series 2, $145,919 in series 3, $320,646 in series 4,
none in series 5, and $4,677 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 December 31, 1999 and 1998 the
Partnership had limited partnership equity interests in 105 Operating
Partnerships.
4
Capital Resources (continued)
- -----------------
As of December 31, 1999 the Partnership had $150,446 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 $ 11,278
2 8,303,000 830,300 03/30/89 8 5,572
3 28,822,000 2,882,200 03/14/89 33 4,499
4 29,788,160 2,995,300 07/07/89 25 4,580
5 4,899,000 489,900 08/22/89 5 108,142
6 12,935,780 1,303,000 09/29/89 15 16,375
----------- --------- --- -------
$97,746,940 9,800,600 105 $150,446
=========== ========= === =======
4
Results of Operations
- ---------------------
At December 31, 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 outstanding fees will be
repaid from sale or refinancing proceeds. The annual partnership management
fee charged to operations for the quarters ended December 31, 1999 and 1998
were $227,677 and $233,677, 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 December 31, 1999 and 1998, the average Qualified
Occupancy for the series was 100%. The series had a total of 19 properties at
December 31, 1999, all of which were at 100% Qualified Occupancy.
For the nine months being reported, the series reflects a net loss from
Operating Partnerships of $1,322,116. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect a positive operations
of $92,318. While overall positive operations are being reported, there are a
few properties that are generating net losses. Substantially all of the net
loss is attributable to accrued mortgage interest not currently payable by
Kingston Property Associates (Broadway East Townhomes), Genesee Commons
Associates (River Park Commons), and Unity Park Associates (Unity Park Phase
II). All three Operating Partnerships have forbearance agreements in place
allowing the property to pay minimal mortgage payments while the property
continues to accrue all interest payments due. Both Genesse and Kingston
appear to be improving and are making partial mortgage payments. All three
properties have received loans from the state housing agency, which are being
used to complete rehabilitation work. This rehab is ongoing and loan proceeds
4
will continue to fund repairs until the monies are exhausted. Although the
repairs have had a positive financial impact on both Kingston and Genesee
Commons, due to economic conditions in Niagara, NY, Unity Park Associates
remains unable to support itself without substantial loans from the operating
general partner. The Operating General Partner is seeking additional
financial support from NYS Housing Finance Agency to help stabilize the
property. If additional financing is unavailable, the Operating General
Partner is considering transferring the deed back to the state of New York.
If a transfer takes place, the partnership would incur recapture and interest
penalties.
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. 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 December 31, 1999 and 1998, the average Qualified
Occupancy for the series was 100% for both years. The series had a total of
eight properties at December 31, 1999 all of which were at 100% Qualified
Occupancy.
For the nine months being reported the series reflects a net loss
from the Operating Partnerships of $392,036. When adjusted for depreciation,
which is a non-cash item, the Operating Partnerships reflect a net loss of
$72,301.
The properties owned by Haven Park Partners III, A California L.P.
(Glenhaven Park III) and Haven Park Partners IV, A California L.P. (Glenhaven
Park IV) continue to suffer from high operating expenses compared to operating
income. In an attempt to reduce operating expenses the Operating General
Partner is initiating negotiations with a not-for-profit general partner to
provide tenant services, coordinate leasing and community outreach. As a
result of repairs to unit interiors, occupancy levels have stabilized. At
December 31, 1999 physical occupancy at Haven Park III was 93% and at Haven
Park IV was 92%. Additional deferred maintenance issues are budgeted for
completion in this year's business plan. The scope of work includes exterior
painting, limited siding replacement, and fence repairs. The work will not
affect occupancy, but will prevent further physical deterioration, and help
preserve the asset.
Annadale Housing Partners (Kingsview Manor & Estates) has reported net
losses due to operational issues associated with the property. In order to
address these issues, the Operating General Partner 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.
Rental rates at the property were increased. In an effort to reduce operating
costs the Operating General Partner initiated loan restructure discussions
4
with the first lender for more favorable terms. The loan restructure was
finalized with more favorable terms. In exchange for payment by the Operating
General Partner of $620,457, monthly mortgage payments were reduced by 79%,
thereby alleviating the property of a large monthly cash obligation. With the
additional cash available, property operations are anticipated to improve
significantly over prior years. The Investment General Partner continues to
monitor this situation closely.
Series 3.
- --------- As of December 31, 1999 and 1998, the average Qualified
Occupancy for the series was 99.7% and 99.3% respectively. The series had a
total of 33 properties at December 31, 1999 of which 31 were at 100% Qualified
Occupancy.
For the nine months being reported series reflects a net loss from the
Operating Partnerships of $1,772,493. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect a net loss of $39,418.
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. As of December 31, 1999 the
overall physical occupancy of the property was 95%. 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 twelve month
period ended December 31, 1999 of $51,012. The property's net cash flow for
the twelve month period of 1999 was a deficit of $2,095.
The property owned by California Investors VI LP (Orchard Park)
sustained a physical occupancy of 92% in December of 1999. The increased
occupancy is the result of the management company's aggressive marketing
efforts and the many capital improvements completed at the property, including
office renovations and the addition of an activity center. These improvements
have been successful in attracting and retaining tenants. In addition, the
property's surrounding area is experiencing economic growth. A major public
sports park, currently being developed next to Orchard Park is scheduled to be
completed in the fall of 2000. Once this park is opened, it is expected to
further enhance the appeal of Orchard Park Apartments.
Hidden Cove Apartments (Hidden Cove) continues to incur operating
deficits due to significant turnover expenditures. While the new management
company has been successful in reducing the deficits by reducing expenses and
increasing occupancy, the property remains unable to operate above break-even.
The property has been able to fund operating expenses and current debt
service, but due to high turnover costs, cannot support required capital
improvements and the funding of the security deposit account, although major
capital improvement items identified by the management company have been
completed. Average occupancy at the property remains at 98%. To date the
Operating General Partner has been unsuccessful in securing refinancing
through local lenders. Refinancing will be attempted again in 2000 once the
property has maintained stabilized occupancy greater than 90% for a
significant period of time.
Central Parkway Towers (Central Parkway Towers), continues to experience
occupancy problems. Overall physical occupancy at the property in the fourth
4
quarter of 1999 was 60%, a slight drop from the third quarter figure of 61%.
Management reports that the low occupancy results from residents having more
housing options available to them in recent years than they did in previous
years. The low occupancy continues to result in operating deficits, accrued
liabilities, and deferred maintenance. 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. Management is also attempting to renegotiate
a contract with the County Mental Health Board to increase the County's
commitment beyond 15 units. Management continues to work with city, state,
and federal agencies to expand referrals and contracts. It has also
accelerated and streamlined its resident application process, and has
undertaken advertising in an attempt to locate potential residents. Also, the
Operating General Partner plans to meet with the lessor of the building to try
to negotiate a reduction in its monthly lease payment. The Operating General
Partner continues to advance funds to cover operating deficits as they occur.
Series 4.
- --------- As of December 31, 1999 and 1998, the average Qualified
Occupancy for the series was 100% for both years. The series had a
total of 25 properties at December 31, 1999, all of which were at 100%
Qualified Occupancy.
For the nine months being reported the series reflects a net loss from
the Operating Partnerships of $1,711,176. When adjusted for depreciation,
which is a non-cash item, the Operating Partnerships reflect a net loss of
$18,689.
During 1999, Unity Park Associates (Unity Park Phase II) again operated
with a net loss. Despite a forbearance agreement with the first mortgage
holder, which allows the property to accrue mortgage interest instead of
making debt service payments, the property is still unable to operate above
breakeven. A poor local economy, low occupancy and high expenses continue to
hinder operations. The property has received loans from the state housing
agency and completed deferred maintenance improvements during 1998 and 1999.
However, due to a lack of rental assistance at the property and the poor local
economy, the rehabilitation work has had little effect on improving the
occupancy. The Operating General Partner has recently expressed an
unwillingness to continue funding the operating deficits at the property. The
Operating General Partner is currently seeking additional financial support
from the New York State Housing Finance Agency to help stabilize the property.
The Investment General Partner does not believe the New York State Housing
Finance Agency is willing to provide additional funding sufficient to improve
and stabilize the operations. Without additional financing, the Operating
General Partner will likely transfer the deed back to the State of New York.
If a transfer takes place, the investment partnership will incur recapture and
interest penalties. The Investment General Partner is closely monitoring the
situation and will provide an estimated impact of recapture on the credit
yield when it becomes feasible.
The Operating Partnership, Van Dyck Estates XVI-A (Van Dyck Estates XVI-
A) has completed the payments required to cure its delinquent real estate
taxes. A recent reduction in real estate taxes has allowed the property to
operate close to break-even, but the property remains unable to fund the
replacement reserve account. Future capital improvements may require funding
from the Operating General Partner. The property continues to operate at
nearly 100% occupancy every month.
4
Central Parkway Towers (Central Parkway Towers) continues to experience
occupancy problems. Overall physical occupancy at the property in the fourth
quarter of 1999 was 60%, a slight drop from the third quarter figure of 61%.
Management reports that the low occupancy results from residents having more
housing options available to them in recent years than they did in the
previous years. The low occupancy continues to result in operating deficits,
accrued liabilities, and deferred maintenance. 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. Management is also attempting to
renegotiate a contract with the County Mental Health Board to increase the
County's commitment beyond 15 units. Management continues to work with city,
state, and federal agencies to expand referrals and contracts. It has also
accelerated and streamlined its resident application process, and has
undertaken advertising in an attempt to locate potential residents. Also, the
Operating General Partner plans to meet with the lessor of the building to try
to negotiate a reduction in its monthly lease payment. The Operating General
Partner has been advancing funds to cover operating deficits as they occur.
The property owned by Haven Park Partners, A California L.P. (Glenhaven
Park II) continues to suffer from excessive operating expenses compared to
operating income. In an attempt to reduce operating expenses the Operating
General Partner is negotiating with a not-for-profit to provide tenant
services, coordinate leasing and community development. As a result of repairs
to unit interiors, occupancy levels have stabilized. At December 31, 1999
physical occupancy at Haven Park II was 100%. Additional deferred maintenance
issues are budgeted for completion in this year's business plan. The scope of
work includes exterior painting, limited siding replacement, and fence
repairs. The work will not affect occupancy, but will prevent further
physical deterioration, and help preserve the asset.
Series 5.
- --------- As of December 31, 1999 and 1998, the average Qualified
Occupancy for the series was 100% for both years. The series had a
total of five properties at December 31, 1999, all of which were at 100%
Qualified Occupancy.
For the nine months being reported the series reflects a net loss
from the Operating Partnerships of $179,243. When adjusted for depreciation,
which is a non-cash item, the Operating Partnerships reflect a net loss of
$6,864.
Annadale Housing Partners (Kingsview Manor & Estates) has reported net
losses due to operational issues associated with the property. In order to
address these issues, the Operating General Partner 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.
Rental rates at the property were increased. In an effort to reduce operating
costs the Operating General Partner initiated loan restructure discussions
with the first lender for more favorable terms. The loan restructure was
finalized with a more favorable terms. In exchange for payment by the
Operating General Partner of $620,457.20, monthly mortgage payments were
reduced by 79%, thereby alleviating the property of a large monthly cash
obligation. With the additional cash available, property operations are
anticipated to improve significantly over prior years. The Investment General
Partner continues to monitor this situation closely.
4
The property owned by Glenhaven Park Partners, A California L.P.
(Glenhaven Estates) continues to suffer from excessive operating expenses
compared to operating income. In an attempt to reduce operating expenses, the
Operating General Partner is initiating negotiations with a not-for-profit to
provide tenant services, coordinate leasing and community outreach. As a
result of repairs to unit interiors, occupancy is anticipated to stabilize.
Occupancy as of December 31, 1999 is 83%. Additional deferred maintenance
issues are budgeted for completion in this year's business plan. The scope of
work includes exterior painting, limited siding replacement, and fence
repairs. The work will not affect occupancy, but will prevent further
physical deterioration, and help preserve the asset.
Series 6.
- --------- As of December 31, 1999 and 1998, the average Qualified Occupancy
for the series was 100% for both years. The series had a total of 15
properties at December 31, 1999, all of which were at 100% Qualified
Occupancy.
For the nine months being reported the series reflects a net loss from
the Operating Partnerships of $569,017. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$347,250.
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.
49
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(b) Reports on Form 8-K
There were no reports on Form 8-K filed during the period
covered by this report.
5
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
BOSTON CAPITAL TAX CREDIT
FUND LIMITED PARTNERSHIP
By: Boston Capital Associates Limited
Partnership, General Partner
By: C&M Associates, d/b/a
Boston Capital Associates
Date: February 18, 2000 By:
---------------------------
John P. Manning,
Partner & Principal Financial
Officer
51
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<NAME> BOSTON CAPITAL TAX CREDIT FUND LIMITED PARTNERSHIP
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<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-START> APR-01-1999
<PERIOD-END> DEC-31-1999
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