June 28, 1996
Securities and Exchange Commission
Filer Support, Edgar
Operation Center, Stop 0-7
6432 General Green Way
Alexandria, VA 22312
Boston Financial Qualified Housing Tax Credits L.P. III
Form 10-K Annual Report for Year Ended March 31, 1996
File Number 01-18462
Filing Fee Account Number 0000839345
Gentlemen:
Pursuant to the requirements of Rule 901(d) of Regulation S-T, enclosed is one
copy of subject report. A check in the amount of $250 in payment of the filing
fee has been deposited to your account, number 9108739, at Mellon Bank.
Very truly yours,
/s/ Marie D. Reynolds
Marie D. Reynolds
Assistant Controller
QH310K-K
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
Annual Report Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
For the fiscal year ended Commission file number
March 31, 1996 01-18462
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(Exact name of registrant as specified in its charter)
Delaware 04-3032106
(State of organization) (I.R.S. Employer
Identification No.)
101 Arch Street, 16th Floor
Boston, Massachusetts 02110-1106
(Address of Principal executive office) (Zip Code)
Registrant's telephone number, including area code 617/439-3911
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange on
Title of each class which registered
None None
Securities registered pursuant to Section 12(g) of the Act:
UNITS OF LIMITED PARTNERSHIP INTEREST
(Title of Class)
100,000
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
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (Subsection 229.405 of this chapter) is not contained herein,
and will not be contained, to the best of registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this
Form 10-K or any amendment to this Form 10-K. [ X ]
State the aggregate sales price of partnership units held by nonaffiliates
of the registrant.
$99,610,000 as of March 31, 1996
<PAGE>
DOCUMENTS INCORPORATED BY REFERENCE: LIST THE FOLLOWING DOCUMENTS IF
INCORPORATED BY REFERENCE AND THE PART OF THE FORM 10-K INTO WHICH THE DOCUMENT
IS INCORPORATED: (1) ANY ANNUAL REPORT TO SECURITY HOLDERS: (2) ANY PROXY OR
INFORMATION STATEMENT: AND (3) ANY PROSPECTUS FILED PURSUANT TO RULE 424(b) OR
(c) UNDER THE SECURITIES ACT OF 1933.
Part of Report on
Form 10-K into
Which the Document
Documents incorporated by reference is Incorporated
Post-effective Amendment No. 1 to the Form S-11
Registration Statement, File # 33-24175 Part I, Item 1
Supplement No. 4 to the Prospectus, dated May 9, 1989 Part I, Item 1
Report on Form 8-K dated November 21, 1989 Part I, Item 1
Prospectus - Sections Entitled:
"Investment Objectives and Policies -
Principal Investment Policies Part I, Item 1
"Estimated Use of Proceeds" Part III, Item 13
"Management Compensation and Fees" Part III, Item 13
"Profits and Losses for Tax Purposes, Tax
Credits and Cash Distributions" Part III, Item 13
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(a Limited Partnership)
ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED MARCH 31, 1996
TABLE OF CONTENTS
PART I Page No.
Item 1 Business K-3
Item 2 Properties K-7
Item 3 Legal Proceedings K-19
Item 4 Submission of Matters to a
Vote of Security Holders K-19
PART II
Item 5 Market for the Registrant's Units
and Related Security Holder Matters K-19
Item 6 Selected Financial Data K-20
Item 7 Management's Discussion and Analysis of
Financial Condition and Results of Operations K-21
Item 8 Financial Statements and Supplementary Data K-25
Item 9 Changes in and Disagreements with
accountants on Accounting and Financial
Disclosure K-25
PART III
Item 10 Directors and Executive Officers
of the Registrant K-26
Item 11 Management Remuneration K-27
Item 12 Security Ownership of Certain Beneficial
Owners and Management K-28
Item 13 Certain Relationships and Related
Transactions K-28
PART IV
Item 14 Exhibits, Financial Statement Schedule
and Reports on Form 8-K K-31
SIGNATURES K-32
<PAGE>
PART I
Item 1. Business
Boston Financial Qualified Housing Tax Credits L.P. III (the "Partnership") is a
limited partnership formed on August 9, 1988 under the Uniform Limited
Partnership Act of the State of Delaware. The Certificate and Agreement of
Limited Partnership ("Partnership Agreement") authorized the sale of up to
100,000 units of Limited Partnership Interest ("Units") at $1,000 per Unit,
adjusted for certain discounts. The Partnership raised $99,610,000, ("Gross
Proceeds") net of discounts of $390,000, through the sale of 100,000 Units. Such
amounts exclude five unregistered Units previously acquired for $5,000 by the
Initial Limited Partner, which is also one of the General Partners. The offering
of Units terminated on May 30, 1989. No further sale of Units is expected.
As described more fully under Item 7 - Management's Discussion and Analysis of
Financial Condition and Results of Operations, affiliates of the Managing
General Partner assumed the Local General Partner interest in several Local
Limited Partnerships in which the Partnership has invested: 1) BF Harbour View,
Inc., assumed the Local General Partner interest in 241 Pine Street Associates
L.P. ("241 Pine Street"); 2) BF Willow Lake, Inc., assumed the Local General
Partner interest in Willow Lake Partners II, L.P. ("Willow Lake"); 3) BF Texas
Limited Partnership was admitted as an additional Local General Partner to
thirteen Local Limited Partnerships ("Texas Partnerships") and the Temple Kyle,
L.P., Ltd. (the "Kyle"). As a result, the Partnership is deemed to have control
over 241 Pine Street, Willow Lake, the Texas Partnerships and the Kyle (the
"Combined Entities") and the accompanying financial statements are presented in
combined form to conform with the required accounting treatment under generally
accepted accounting principles. However, this change only affects the
presentation of the Partnership's operating results, not the business of the
Partnership. Accordingly, a presentation of information about industry segments
is not applicable and would not be material to an understanding of the
Partnership's business taken as a whole. As described more fully in Item 7 -
Management's Discussion and Analysis of Financial Condition and Results of
Operations, the Managing General Partner has transferred or is in the process of
transferring all of the assets of six of the Texas Partnerships subject to their
liabilities to unaffiliated entities.
The Partnership has invested as a limited partner in fifty-three other limited
partnerships ("Local Limited Partnerships") which own and operate residential
apartment complexes ("Properties"), some of which benefit from some form of
federal, state or local assistance programs and all of which qualify for the
low-income housing tax credits ("Tax Credits") that were added to the Internal
Revenue Code by the Tax Reform Act of 1986 (the "Code"). The investment
objectives of the Partnership include the following: (i) to provide current tax
benefits in the form of Tax Credits which qualified limited partners may use to
offset their federal income tax liability; (ii) to preserve and protect the
Partnership's capital; (iii) to provide limited cash distributions from property
operations which are not expected to constitute taxable income during the
expected duration of the Partnership's operations; and (iv) to provide cash
distributions from sale or refinancing transactions. There cannot be any
assurance that the Partnership will attain any or all of these investment
objectives.
A more detailed discussion of these investment objectives, along with the risks
in achieving them is contained in the section of the prospectus entitled
"Investment Objectives and Policies - Principal Investment Policies" which is
herein incorporate by this reference.
Table A on the following pages lists the Properties owned by Local Limited
Partnerships in which the Partnership has invested. Item 7 of this Report
contains other significant information with respect to such Local Limited
Partnerships. As required by applicable rules, the terms of the acquisition of
Local Limited Partnership interests have been described in supplements to the
Prospectus and collected in one post-effective amendment to the Registration
Statement, in another supplement to the Prospectus and in a report on Form 8-K
listed in Part IV of this Report (collectively, the "Acquisition Reports"); such
descriptions are incorporated herein by this reference.
<PAGE>
Properties Owned by Date
Local Limited Interest
Partnerships* Location Acquired
West Dade Miami, FL 12/31/88
West Dade II Miami, FL 12/31/88
Regency Square Dayton, OH 03/13/89
Westwood Manor Flint, MI 02/21/89
Rolling Hills Dayton, OH 03/13/89
Boulevard Commons II Chicago, IL 04/04/89
Boulevard Commons IIA Chicago, IL 04/04/89
Fox Run Housing Victoria, TX 04/07/89
Waterfront Buffalo, NY 04/28/89
Shoreline Buffalo, NY 04/28/89
Colony Apartments* Columbia, SC 05/19/89
Admiral Court Philadelphia, PA 06/07/89
Crestwood** Bridgeport, TX 06/05/89
Elmwood Aurora, CO 05/16/89
El Jardin Davie, FL 06/14/89
Ashley Place Orlando, FL 06/23/89
Willowick** Gainesville, TX 06/30/89
Kirkendall Heights Ellsworth, KS 07/19/89
Bentley Hill Syracuse, KS 06/30/89
Columbia Townhouses Burlington, IA 07/28/89
Quartermill Richmond, VA 08/02/89
Ponca Manor Satanta, KS 07/28/89
Pearl Place Rossville, KS 07/28/89
Crown Point** Venus, TX 08/22/89
Godley Arms** Godley, TX 08/25/89
Pilot Point** Pilot Point, TX 08/22/89
Sherwood Arms** Keene, TX 08/22/89
South Holyoke Holyoke, MA 08/29/89
Walker Woods Dover, DE 08/30/89
Lakeway Colony** Lake Dallas, TX 08/30/89
One Main Place** Little Elm, TX 08/22/89
Eaglewood Covington, TN 09/06/89
Harbour View* Staten Island, NY 09/29/89
Georgetown II Georgetown, DE 09/28/89
Granite* Boston, MA 09/29/89
Garden Plain Garden Plain, KS 08/09/89
Fulton Fulton, KY 10/05/89
Lone Oak** Graham, TX 10/06/89
Hallet West** Hallettsville, TX 11/20/89
<PAGE>
Properties Owned by Date
Local Limited Interest
Partnerships* Location Acquired
Glenbrook** St. Jo, TX 10/06/89
Eagles Nest Decatur, TN 10/06/89
Billings Family Billings, MO 08/09/89
Brownsville Brownsville, TN 08/09/89
Sunnyhill Villa Wayne, NE 08/09/89
Longview Humboldt, KS 10/13/89
Horseshoe Bend Horseshoe Bend, AR 08/09/89
Briarwood II Lake Havasua, AZ 10/04/89
Quail Run** Iowa Park, TX 10/06/89
Smithville Smithville, MO 08/09/89
Aurora East Denver, CO 11/06/89
Elver Park II Madison, WI 11/09/89
Elver Park III Madison, WI 11/09/89
Tucson Trails I Madison, WI 11/22/89
Tucson Trails II Madison, WI 11/23/89
Pleasant Plaza Malden, MA 12/01/89
241 Pine Street Manchester, NH 12/04/89
Heather Oaks Oak Grove, MO 11/24/89
Riverfront Sunbury, PA 12/26/89
Susquehanna View Camp Hill, PA 12/26/89
Breckenridge Duluth, GA 12/19/89
Wood Creek Calcium, NY 12/15/89
Willow Lake* Kansas City, MO 12/20/89
Ashton Heights Bolivar, MO 12/15/89
Fouche Valley Perryville, AR 05/01/90
Altheimer Altheimer, AR 04/18/90
Kyle Hotel Temple, TX 06/12/90
Diversey Square Chicago, IL 12/01/90
Poplar Village Cumberland, KY 12/30/90
Lexington Lexington, TN 12/29/90
* The Partnership's interest in profits and losses of each Local Limited
Partnership arising from normal operations is 99% with the exception of
four Local Limited Partnerships in which the Partnership acquired a 98%
interest (Willow Lake), 97% interest (Granite), 49% interest (Colony
Apartments) and a 48.96% interest (Harbour View). Profits and losses
arising from sale or refinancing transactions are allocated in accordance
with the respective Local Limited Partnership Agreements.
** As of March 31, 1996, the Managing General Partner has transferred or is in
the process of transferring all of the assets of six of the Texas
Partnerships subject to their liabilities to unaffiliated entities.
Glenbrook Apartments' transfer was effective June 6, 1996. Five of the
Texas Partnerships (Crown Point, Godley Arms, Sherwood Arms, Quail Run
Apartments and Loan Oak Apartments) are being transferred to new owners
effective after March 31, 1996. The Managing General Partner has executed
an agreement to sell the general partner interests in the seven remaining
Texas Partnerships (Crestwood Place, Eagle Nest Apartments, Hallet-West
Apartments, One Main Place, Pilot Point Apartments, Shady Shore Apartments
and Willowick Apartments) to an unaffiliated buyer. The Partnership will
retain a limited partner interest in these seven Texas Partnerships.
Although the Partnership's investments in Local Limited Partnerships are not
subject to seasonal fluctuations, the Partnership's equity in losses of Local
Limited Partnerships and rental operating revenues and expenses, to the
<PAGE>
extent they reflect the operations of individual Properties, may vary from
quarter to quarter based upon changes in occupancy and operating expenses as a
result of seasonal factors.
Under the terms of the Partnership Agreement, the Partnership initially
designated 3% of the Gross Proceeds from the sale of Units as a reserve for
working capital of the Partnership and contingencies related to ownership of
Local Limited Partnership interests. The Managing General Partner may increase
or decrease such reserves from time to time, as it deems appropriate. During the
year ended March 31, 1993, the Managing General Partner decided to increase the
reserve level to 3.75%. To date reserves have been used to pay legal and other
costs related to the Section 8 Moderate Rehabilitation Program ("Mod Rehab
Program") issue. Additionally, legal fees relating to various property issues
and additional capital contributions to two Local Limited Partnerships have been
paid from reserves. If reserves are not adequate to cover the Partnership's
operations, the Partnership will seek other financing sources including, but not
limited to, the deferral of Asset Management Fees paid to an affiliate of the
Managing General Partner or working with Local Limited Partnerships to increase
cash distributions. At March 31, 1996, the Managing General Partner has
designated approximately $257,000 of cash, cash equivalents and marketable
securities as such reserve.
With the exception of the Combined Entities, each Local Limited Partnership has,
as its general partners ("Local General Partners"), one or more individuals or
entities not affiliated with the Partnership or its General Partners. In
accordance with the partnership agreements under which such entities are
organized ("Local Limited Partnership Agreements"), the Partnership depends on
the Local General Partners for the management of each Local Limited Partnership.
As of March 31, 1996, the following Local Limited Partnerships have a common
Local General Partner or affiliated group of Local General Partners accounting
for the specified percentage of the original investment in Local Limited
Partnerships: (i) Regency Square and Rolling Hills, representing 7.6%, have
Folkers Associates as Local General Partner; (ii) Boulevard Commons II and
Boulevard Commons IIA, representing 2.24%, have Carroll Properties, Inc. and
Robert King as Local General Partners; (iii) Ellsworth, Syracuse, Satanta,
Rossville, Humbolt, Smithville, Brownsville, Briarwood, Billings, Garden Plain,
Wayne, Horseshoe Bend, Bolivar, Oak Grove, Westgate and Altheimer, representing
2.16%, have The Lockwood Group as Local General Partner; (iv) Elver Park II,
Elver Park III, Tucson Trails I and Tucson Trails II, representing 5.9%, have
Gorman Associates as Local General Partner; (v) Riverfront Apartments and
Susquehanna View, representing 5.51%, at have NCHP as Local General Partner;
(vi) West Dade and West Dade II, representing 6.01%, have Romat, Inc. and Arbor,
Inc. respectively, both of which have Aristedes Martinez as principal, as Local
General Partner; (vii) Elmwood and Fox Run, representing 3.57%, have Delwood
Ventures, Inc. and R.S.F. Ventures, Inc. as Local General Partners respectively,
both of which have Raymond Baker as principal; (viii) Eaglewood, Lexington, and
Fulton, representing .70%, have Tommy Harper, Jerry Blurt, and Chris Turskey as
Local General Partners; and (ix) Waterfront and Shoreline, representing 6.17%,
have M.B. Associates as Local General Partner. The Local General Partners of the
remaining Local Limited Partnerships are identified in the Acquisition Reports,
which are incorporated herein by reference.
The Properties owned by Local Limited Partnerships in which the Partnership has
invested are and will continue to be subject to competition from existing and
future properties in the same areas. The continued success of the Partnership
will depend on many factors, most of which are beyond the control of the
Partnership and which cannot be predicted at this time. Such factors include
general economic and real estate market conditions, both on a national basis and
in those areas where the Properties are located, the availability and cost of
borrowed funds, real estate tax rates, operating expenses, energy costs and
government regulations. In addition, other risks inherent in real estate
investment may influence the ultimate success of the Partnership, including; (i)
possible reduction in rental income due to an inability to maintain high
occupancy levels or adequate rental levels, (ii) possible adverse changes in
general economic conditions and adverse local conditions, such as competitive
overbuilding, or a decrease in employment rates or adverse changes in real
estate laws, including building codes, and (iii) the possible future adoption of
rent control legislation which would not permit increased costs to be passed on
to the tenants in the form of rent increases, or which would suppress the
ability of the Local Limited Partnership to generate operating cash flow. Since
most of the Properties benefit from some form of government assistance, the
Partnership is subject to the risks inherent in that area including decreased
subsidies, difficulties in finding suitable tenants and obtaining permission for
rent increases. In addition, any Tax Credits allocated to investors with respect
to a
<PAGE>
Property are subject to recapture to the extent that the Property or any
portion thereof ceases to qualify for the Tax Credits. Other future changes in
Federal and state income tax laws affecting real estate ownership or limited
partnerships could have a material and adverse affect on the business of the
Partnership.
The Partnership is managed by Arch Street III, Inc., the Managing General
Partner of the Partnership. The other General Partner of the Partnership is Arch
Street III Limited Partnership. To economize on direct and indirect payroll
costs, the Partnership, which does not have any employees, reimburses The Boston
Financial Group Limited Partnership ("Boston Financial"), an affiliate of the
General Partners, for certain expenses and overhead costs. A complete discussion
of the management of the Partnership is set forth in Item 10 of this Report.
Item 2. Properties
The Partnership owns limited partnership interests in sixty-nine Local Limited
Partnerships which own and operate Properties, some of which benefit from some
form of federal, state or local assistance programs and all of which qualify for
the Tax Credits added to the Code by the Tax Reform Act of 1986. The
Partnership's ownership interest in each Local Limited Partnership is generally
99%, except for Willow Lake, Granite, Colony Apartments and Harbour View, where
the Partnership's ownership interest is 98%, 97%, 49% and 48.96%, respectively.
Each of the Local Limited Partnerships has received an allocation of Tax Credits
by its relevant state tax credit agency. In general, the Tax Credit runs for ten
years from the date the Property is placed in service. The required holding
period (the "Compliance Period") of the Properties is fifteen years. During
these fifteen years, the Properties must satisfy rent restrictions, tenant
income limitations and other requirements, as promulgated by the Internal
Revenue Code, in order to maintain eligibility for the Tax Credit at all times
during the Compliance Period. Once a Local Limited Partnership has become
eligible for the Tax Credits, it may lose such eligibility and suffer an event
of recapture if its Property fails to remain in compliance with the
requirements. To date, none of the Local Limited Partnerships have suffered an
event of recapture of Tax Credits.
In addition, some of the Local Limited Partnerships have obtained one or a
combination of different types of loans such as: i) below market rate interest
loans; ii) loans provided by a redevelopment agency of the town or city in which
the property is located at favorable terms; and iii) have repayment terms that
are based on a percentage of cash flow.
The schedules on the following pages provide certain key information on the
Local Limited Partnership interests acquired by the Partnership.
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Local Limited Partnership Total Total Mtge. Loans payable Occupancy
Property Name Number of Committed at Paid through at December Type of at March
Property Location Apt. Units March 31, 1996 March 31, 1996 31, 1995 Subsidy* 31, 1996
- -------------------------------------------- -------------------- -------------------- ------------------- ------ ---------
<S> <C> <C> <C> <C> <C> <C>
West Dade LTD, A Limited Partnership
West Dade
Miami, FL 122 $1,513,936 $1,513,936 $4,103,757 Section 8 99%
West Dade LTD II, A Limited Partnership
West Dade II
Miami, FL 209 3,039,442 3,039,442 8,408,834 Section 8 99%
Westwood Manor Limited Dividend
Housing Association L.P.
Westwood Manor
Flint, MI 144 1,165,925 1,165,925 3,424,812 Section 8 99%
Rolling Hills Associates L.P.
Rolling Hills
Dayton, OH 150 2,883,000 2,883,000 3,107,682 Section 8 50%
Regency Square Limited Partnership
Regency Square
Dayton, OH 140 2,772,000 2,772,000 3,301,775 Section 8 31%
Shoreline Limited Partnership
Shoreline
Buffalo, NY 142 1,079,318 1,079,318 6,178,090 None 63%
Waterfront Limited Partnership
Waterfront
Buffalo, NY 472 3,597,307 3,597,307 22,121,373 None 70%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Local Limited Partnership Total Total Mtge. Loans
Property Name Number of Committed at Paid through payable at
Property Location Apt. Units March 31, 1996 March 31, 1996 December 31, Type of Occupancy at
1995 Subsidy* March 31, 1996
<S> <C> <C> <C> <C> <C> <C>
Fox Run Housing
Fox Run
Victoria, TX 150 1,605,775 1,605,775 4,144,226 Section 8 95%
Boulevard Commons Limited
Partnership II
Boulevard Commons II
Chicago, IL 61 517,175 517,175 729,029 Section 8 95%
The Colony Apartments, L.P.
A Limited Partnership
Colony Apartments
Columbia, SC 300 1,762,500 1,762,500 8,678,335 Section 8 93%
Boulevard Commons Limited
Partnership IIA
Boulevard Commons IIA
Chicago, IL 42 1,179,812 1,179,812 1,603,351 Section 8 81%
Ashley Place, LTD
A Florida Limited Partnership
Ashley Place
Orlando, FL 96 2,002,560 2,002,560 2,841,522 None 97%
Admiral Housing Limited Partnership
Admiral Court
Philadelphia, PA 46 1,900,000 1,900,000 2,383,364 Section 8 99%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Local Limited Partnership Total Total Mtge. Loans
Property Name Number of Committed at Paid through payable at
Property Location Apt. Units March 31, 1996 March 31, December 31, Type of Occupancy at
1996 1995 Subsidy* March 31, 1996
- -------------------------------------------- -------------- -------------------- ----------------- --------------------
<S> <C> <C> <C> <C> <C> <C>
Prarieland Property of Syracuse, L.P.
Bentley Hill
Syracuse, KS 8 52,150 52,150 241,823 FmHA 100%
El Jardin of Davie, Ltd.
El Jardin
Davie, FL 236 2,022,100 2,022,100 7,000,257 Section 8 100%
EDM Housing Associates LTD
A Limited Partnership
Elmwood Delmar
Aurora, CO 95 1,102,025 1,102,025 3,153,787 Section 8 100%
Bridgeport Housing Associates, LTD**
Crestwood
Bridgeport, TX 24 95,367 95,367 380,272 FmHA 50%
Willowick Housing Associates, LTD**
Willowick
Gainesville, FL 60 311,761 311,761 1,173,756 FmHA 50%
Ellsworth Senior Housing, L.P.
Kirkendall Heights
Ellsworth, KS 12 69,658 69,658 330,049 FmHA 75%
Prairieland Properties of Satanta, L.P.
Ponca Manor
Satanta, KS 8 49,915 49,915 224,573 FmHA 100%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Local Limited Partnership Total Total Mtge. Loans
Property Name Number of Committed at March Paid through payable at
Property Location Apt. Units 31, 1996 March 31, 1996 December Type of Occupancy at
31,1995 Subsidy* March 31,
1996
- -------------------------------------------- -------------- --------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Rossville Senior Housing L.P.
Pearl Place
Rossville, KS 10 58,855 58,855 280,550 FmHA 90%
Columbia Townhouse Associates, L.P.
Columbia Townhouses
Burlington, IA 56 752,450 752,450 1,401,445 Section 8 93%
Quartermill Associates, L.P.
A Virginia Limited Partnership
Quartermill
Richmond, VA 266 7,705,500 7,705,500 7,215,496 None 94%
One Main Place Housing
Associates, LTD**
One Main Place
Little Elm, TX 24 80,374 80,374 371,846 FmHA 58%
Pilot Point Housing Associates, LTD**
Pilot Point
Pilot Point, TX 40 113,980 113,980 560,757 FmHA 70%
Sherwood Arms Housing
Associates, LTD (A)
Sherwood Arms
Keene, TX
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Local Limited Partnership Total Total Mtge. Loans payable
Property Name Number of Committed at March Paid through at December Type of Occupancy at
Property Location Apt. Units 31, 1996 March 31, 1996 31, 1995 Subsidy* March 31, 1996
- -------------------------------------------- -------------- -------------------- ---------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Crown Point Housing
Associates, LTD (A)
A Texas Limited Partnership
Crown Point
Venus, TX
Godley Arms Housing
Associates, LTD (A)
Godley Arms
Godley, TX
South Holyoke Limited Partnership
South Holyoke
Holyoke, MA 48 1,119,330 1,119,330 2,791,972 None 99%
Harbour View
A Limited Partnership
Harbour View
Staten Island, NY 122 1,350,000 1,350,000 9,549,824 None 100%
Walker Woods Partners, L.P.
Walker Woods
Dover, DE 51 1,452,380 1,452,380 2,377,870 None 100%
Boston Financial Texas Properties
Limited Partnership III**
Lakeway Colony
Lake Dallas, TX 40 179,358 179,358 506,396 FmHA 82%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Local Limited Partnership Total Total Mtge. Loans
Property Name Number of Committed at Paid through payable at
Property Location Apt. Units March 31, 1996 March 31, December 31, Type of Occupancy at
1996 1995 Subsidy* March 31, 1996
- -------------------------------------------- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Eaglewood VIII, L.P.
A Limited Partnership
Eaglewood
Covington, TN 40 255,000 255,000 1,118,719 FmHA 100%
Georgetown Associates II, L.P.
Georgetown II
Georgetown, DE 50 1,200,000 1,200,000 1,757,575 None 98%
Blue Mountain Associates, L.P.
A Massachusetts Limited Partnership
Granite V
Boston, MA 217 5,774,113 5,774,113 9,992,836 Section 8 95%
Garden Plain Senior Apts., LTD
Garden Plain
Garden Plain, KS 12 70,030 70,030 304,443 FmHA 100%
Fulton Associates I, L.P.
A Limited Partnership
Fulton, KY 24 180,000 180,000 803,264 FmHA 100%
Lone Oak Housing Associates, LTD (A)
Lone Oak
Graham, TX
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Local Limited Partnership Total Total Mtge. Loans
Property Name Number of Committed at March Paid through payable at Occupancy
Property Location Apt. Units 31, 1996 March 31, December 31, Type of at March
1996 1995 Subsidy* 31, 1996
- -------------------------------------------- -------------- --------------------------------------- ------------------------
<S> <C> <C> <C> <C> <C> <C>
West Hallettsville Housing
Associates, LTD**
Hallet-West
Hallettsville, TX 24 66,426 66,426 298,696 FmHA 54%
Glenbrook Housing Associates, LTD (A)
Glenbrook
St. Jo, TX
Eagles Nest Housing
Associates, LTD**
Eagles Nest
Decatur, TX 90 234,376 234,376 936,849 FmHA 43%
Billings Family Housing, L.P.
Cedar Tree
Billings, MO 12 58,855 58,855 284,638 FmHA 100%
Brownsville Associates, L.P.
Brownsville
Brownsville, TN 28 161,665 161,665 789,717 FmHA 100%
Wayne Senior Housing, L.P.
Sunnyhill Villa
Wayne, NE 15 81,205 81,205 431,020 FmHA 100%
Longview Apartments, L.P.
Longview
Humbolt, KS 14 91,635 91,635 400,350 FmHA 92%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Local Limited Partnership Total Total Mtge. Loanse
Property Name Number of Committed at Paid through payable at
Property Location Apt. Units March 31, March 31, December 31, Type of Occupancy at
1996 1996 1995 Subsidy* March 31, 1996
- -------------------------------------------- -------------------------------------------------- -------------------------------
<S> <C> <C> <C> <C> <C> <C>
Horseshoe Bend Associates I, L.P.
Horseshoe Bend
Horseshoe Bend, AR 24 143,785 143,785 653,056 FmHA 100%
Briarwood Associates II, L.P.
Briarwood II
Lake Havasua, AZ 32 219,030 219,030 1,116,416 FmHA 94%
North Quail Run Housing
Associates, LTD (A)
Quail Run
Iowa Park, TX
Smithville Rural Housing
A Limited Partnership
Smithville
Smithville, MO 24 108,025 108,025 549,441 FmHA 100%
Aurora Properties, LTD
A Limited Partnership
Aurora East Apartments
Denver, CO 125 765,000 765,000 4,069,410 Section 8 96%
Elver Park Limited Partnership II
Elver Park II
Madison, WI 56 1,246,385 1,246,385 1,712,115 None 91%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Local Limited Partnership Total Total Mtge. Loans
Property Name Number of Committed at Paid through payable at
Property Location Apt. Units March 31, 1996 March 31, December 31, Type of Occupancy at
1996 1995 Subsidy* March 31, 1996
- -------------------------------------------- -------------- -------------------- ---------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Elver Park Limited Partnership III
Elver Park III
Madison, WI 48 1,047,470 1,047,470 1,485,336 None 88%
Tuscon Trails Limited Partnership I
Tuscon Trails I
Madison, WI 48 1,047,470 1,047,470 1,447,785 None 94%
Tuscon Trails Limited Partnership II
Tuscon Trails II
Madison, WI 48 1,047,470 1,047,470 1,454,623 None 98%
Pleasant Plaza Housing L.P.
Pleasant Plaza
Malden, MA 125 3,340,138 3,340,138 15,633,537 Section 8 99%
241 Pine Street Associates, L.P.**
241 Pine Street
Manchester, NH 50 1,374,298 1,374,298 0 None 78%
Missouri Rural Housing of
Oak Grove, L.P.
Heather Oaks
Oak Grove, MO 24 118,828 118,828 564,122 FmHA 100%
Wood Creek Associates
A New York Limited Partnership
Wood Creek
Calcium, NY 104 1,850,000 1,850,000 3,456,957 None 100%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Local Limited Partnership Total Total Mtge. Loans
Property Name Number of Committed at Paid through payable at
Property Location Apt. Units March 31, 1996 March 31, 1996 December 31, Type of Occupancy at
1995 Subsidy* March 31, 1996
- -------------------------------------------- -------------------------------- --------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Breckenridge Creste Apartments, L.P.
Breckenridge
Duluth, GA 164 3,520,000 3,520,000 4,864,270 None 90%
Willow Lake Partners II, L.P.**
A Limited Partnership
Willow Lake
Kansas City, MO 132 2,130,700 2,130,700 2,764,469 None 94%
Bolivar Senior Housing, L.P.
Ashton Heights
Bolivar, MO 20 95,360 95,360 469,010 FmHA 100%
Lexington Associates I L.P.
A Limited Partnership
Lexington Civic
Lexington, TN 24 95,000 95,000 453,662 FmHA 58%
Riverfront Apartments, L.P.
Riverfront
Sunbury, PA 200 1,984,908 1,984,908 7,945,975 Section 8 100%
Susquehanna View L.P.
Susquehanna View
Camp Hill, PA 201 2,194,314 2,194,314 9,222,525 Section 8 100%
Westgate Associates I, L.P.
Fouche Valley
Perryville, AR 20 131,865 131,865 641,414 FmHA 100%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Local Limited Partnership Total Total Mtge. Loans
Property Name Number of Committed at Paid through March payable at Occupancy at
Property Location Apt. Units March 31, 1996 31, 1996 December 31, Type of March
1995 Subsidy* 31, 1996
- -------------------------------------------- ------------------------------- ---------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Altheimer Associates I, L.P.
Altheimer
Altheimer, AR 20 130,375 130,375 600,829 FmHA 100%
The Temple-Kyle L.P.**
Kyle Hotel
Temple, TX 64 1,624,100 1,624,100 1,454,127 Section 8 98%
Diversey Square Associates II
Diversey Square II
Chicago, IL 48 1,031,825 1,031,825 2,581,192 Section 8 100%
Poplar Village, LTD
Poplar Village
Cumberland, KY 36 283,945 283,945 1,207,297 FmHA 97%
------------ ------------ ----------- ------------
5,337 75,237,549 75,237,549 190,052,498
============
Less: **Combined Entities 6,210,740 6,210,740 8,447,168
------------ ----------- ------------
$ 69,026,809 $69,026,809 $181,635,330
============ =========== ============
</TABLE>
*FmHA This subsidy, which is authorized under Section 515 of the Housing
Act of 1949, can be one or a combination of different types of financing. For
instance, FmHA may provide; 1) direct below-market-rate mortgage loans for rural
rental housing; 2) mortgage interest subsidies which effectively lower the
interest rate of the loan to 1%; 3) a rental assistance subsidy to tenants which
allows them to pay no more than 30% of their monthly income as rent with the
balance paid by the federal government; or 4) a combination of any of the above.
Section 8 This subsidy, which is authorized under Section 8 of Title II of
the Housing and Community Development Act of 1974, allows qualified low- income
tenants to pay 30% of their monthly income as rent with the balance paid by the
federal government.
(A) As of March 31, 1996, the Managing General Partner has transferred or
is in the process of transferring all of the assets of six of the
Texas Partnerships subject to their liabilities to unaffiliated
entities. The six Texas Partnerships had total capital contributions
and mortgage payable amounts of $579,230 and $2,326,548,
respectively, as of the above dates.
<PAGE>
One Local Limited Partnership, Quarter Mill Associates L.P., invested in by the
Partnership represents more than 10% of the total capital contributions to be
made to Local Limited Partnerships by the Partnership. Quarter Mill is a
266-unit construction apartment complex located in Richmond, Virginia.
Quarter Mill is financed by a combination of private and public sources. The
first mortgage is at 8.75% interest, a 40-year term, and is insured by HUD. The
apartment project is pledged as collateral for the note. In addition to this,
there is a subordinated nonrecourse note payable that is payable each year only
to the extent of 15% of the property's net cash flow, as defined by the note
agreement.
Additional information required under this item, as it pertains to the
Partnership, is contained in Items 1, 7 and 8 of this report.
Item 3. Legal Proceedings
There are currently no legal proceedings pending or threatened against the
Partnership, except as disclosed in Note 12 to the Financial Statements.
Item 4. Submission of Matters to a Vote of Security Holders
None.
PART II
Item 5. Market for the Registrant's Units and Related Security Holder Matters
There is no public market for the Units, and it is not expected that a public
market will develop. If a Limited Partner desires to sell Units, the buyer of
those Units will be required to comply with the minimum purchase and retention
requirements and investor suitability standards imposed by applicable federal or
state securities laws and the minimum purchase and retention requirements
imposed by the Partnership. The price to be paid for the Units, as well as the
commissions to be received by any participating broker-dealers, will be subject
to negotiation by the Limited Partner seeking to sell his Units. Units will not
be redeemed or repurchased by the Partnership.
The Partnership Agreement does not impose on the Partnership or its General
Partners any obligation to obtain periodic appraisals of assets or to provide
Limited Partners with any estimates of the current value of Units.
As of March 31, 1996, there were 6,284 record holders of Units of the
Partnership.
Cash distributions, when made, are paid annually. No cash distribution was paid
in the years ended March 31, 1996, 1995 and 1994.
<PAGE>
Item 6. Selected Financial Data
The following table sets forth selected financial information regarding the
Partnership's financial position and operating results. This information should
be read in conjunction with Management's Discussion and Analysis of Financial
Condition and Results of Operations and the Financial Statements and Notes
thereto, which are included in Items 7 and 8 of this Report.
<TABLE>
<CAPTION>
March 31, March 31, March 31, March 31, March 31,
1996 1995 1994 1993 1992
------------- ------------ ------------- ------------ ---------
<S> <C> <C> <C> <C> <C>
Revenue (C) $ 2,380,294 $ 1,926,504 $ 1,200,399 $ 383,610 $ 482,403
Equity in losses of Local
Limited Partnerships (C) (4,670,063) (5,818,976) (5,887,566) (6,729,079) (8,981,105)
Extraordinary gain on
forgiveness of indebtedness 1,279,618 -- -- -- --
Per Limited Partnership Unit 12.67 -- -- -- --
Net loss (5,440,551) (9,002,539) (7,684,561) (7,245,217) (10,437,676)
Per Limited Partnership
Unit (53.86) (89.13) (76.08) (71.73) (103.33)
Cash, cash equivalents and
marketable securities 427,007 2,356,402 3,532,293 4,075,605 4,807,621
Investment in Local Limited
Partnerships, at original cost (D) 82,971,102 82,943,526 82,943,526 82,925,507 82,984,227
Total Assets (A) 44,371,622 52,653,124 61,386,839 58,154,344 65,168,705
Long term liabilities 3,717,871 4,261,945 10,576,185 1,105,380 885,126
Other Data:
Passive loss (B) (11,654,006) (12,660,771) (12,568,468) (10,159,103) (11,402,610)
Per Limited Partnership
Unit (B) (115.37) (125.34) (124.43) (100.58) (112.89)
Portfolio Income (B) 529,521 470,018 706,189 837,920 867,202
Per Limited Partnership
Unit (B) 5.24 4.65 6.99 8.30 8.59
Low-Income Housing
Tax Credits (B) 14,056,981 14,088,559 14,056,340 13,949,374 13,619,855
Per Limited Partnership
Unit (B) 138.47 138.78 138.50 137.41 134.15
Historic Rehabilitation Credits (B) -- -- -- -- 693,710
Per Limited Partnership Unit (B) -- -- -- -- 6.87
Local Limited Partnership interests
owned at end of period (E) 69 69 69 69 69
</TABLE>
(A) Total assets include the net investment Local Limited Partnerships.
(B) Income tax information is as of December 31, the year end of the
Partnership for income tax purposes. The Low-Income Housing Tax Credit per
Limited Partnership Unit for 1995, 1994, 1993, 1992 and 1991 represents the
amount allocated to individual investors. Corporate investors were
allocated $144.62, $144.95, $144.67, $143.57 and $140.28 per Unit in 1995,
1994, 1993, 1992 and 1991, respectively.
<PAGE>
Item 6. Selected Financial Data (continued)
(C) Revenue for the years ended March 31, 1996, 1995, 1994 and 1993 includes
$2,224,273, $1,792,997, $828,978 and $51,030, respectively of rental and
other revenues from the Combined Entities that is included in the combined
revenue on the Combined Statement of Operations. Equity in losses of Local
Limited Partnerships in the years ended March 31, 1996, 1995, 1994 and 1993
does not include $608,681, ($857,248), ($549,275), and ($46,575),
respectively, of income (losses) from the Combined Entities that have been
combined with the Partnership's loss on the Combined Statement of
Operations.
(D) Investment in Local Limited Partnerships includes capital contributions to
Local Limited Partnerships that have been combined for financial reporting
purposes.
(E) At March 31, 1996, the Managing General Partner has transferred or is in
the process of transferring all of the assets of six the Texas Partnerships
subject to their liabilities to unaffiliated entities.
Item 7. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Liquidity and Capital Resources
The Partnership (including the Combined Entities) had an increase in cash and
cash equivalents of $112,584 for the year ended March 31, 1996. This increase is
attributable to net proceeds received from sales and maturities of marketable
securities and cash distributions received from Local Limited Partnerships.
These are partially offset by the repayment of the Kyle's mortgage, purchases of
marketable securities and cash used for operations.
The Managing General Partner initially designated 3% of the Gross Proceeds to
reserves. The reserves were established to be used for working capital of the
Partnership and contingencies related to the ownership of Local Limited
Partnership interests. The Managing General Partner may increase or decrease
such reserves from time to time, as it deems appropriate. During the year ended
March 31, 1993, the Managing General Partner decided to increase the reserve
level to 3.75%. Funds approximating $195,000 have been withdrawn from the
reserves to pay legal and other costs related to the Mod Rehab Issue as
previously discussed. Additionally, professional fees relating to various
property issues totaling approximately $1,289,000 have been paid from reserves.
This amount includes approximately $1,052,000 for the Texas Partnerships. To
date, reserve funds in the amount of approximately $349,000 have also been used
to make additional capital contributions to two Local Limited Partnerships and
the Partnership has paid approximately $1,417,000 (net of paydowns) to purchase
the mortgage of a Local Limited Partnership. To date, the Partnership has used
approximately $457,000 of operating funds to replenish reserves. At March 31,
1996, approximately $257,000 of cash, cash equivalents and marketable securities
have been designated as reserves. Reserves may be used to fund Partnership
operating deficits, if the Managing General Partner deems funding appropriate.
If reserves are not adequate to cover the Partnership's operations, the
Partnership will seek other financing sources including, but not limited to, the
deferral of Asset Management Fees paid to an affiliate of the Managing General
Partner or working with Local Limited Partnerships to increase cash
distributions.
In the event a Local Limited Partnership encounters operating difficulties
requiring additional funds, the Partnership might deem it in its best interests
to provide such funds, voluntarily, in order to protect its investment. To date,
in addition to the $1,052,000 noted above, the Partnership has also advanced
approximately $526,000 to the Texas Partnerships and $174,000 to one Local
Limited Partnership to fund operating deficits.
Since the Partnership invests as a limited partner, the Partnership has no
contractual duty to provide additional funds to Local Limited Partnerships
beyond its specified investment. Thus, at March 31, 1996, the Partnership had no
contractual or other obligation to any Local Limited Partnership which had not
been paid or provided for.
<PAGE>
Cash Distributions
No cash distributions were made in the three years ended March 31, 1996. As of
March 31, 1996, all required capital contributions have been made to Local
Limited Partnerships. Based on the results of 1995 operations, the Local Limited
Partnerships are not expected to distribute significant amounts of cash to the
Partnership because such amounts will be needed to fund Property operating
costs. In addition, many of the Properties benefit from some type of federal or
state subsidy, and as a consequence, are subject to restrictions on cash
distributions. Therefore, it is expected that only a limited amount of cash will
be distributed to investors from this source in the future.
Results of Operations
1996 versus 1995
For the year ended March 31, 1996, Partnership operations resulted in a net loss
of $5,440,551 as compared to a net loss of $9,002,539 for the year ended 1995.
The decrease in net loss is primarily attributable to a decrease in equity in
losses, lower general and administrative expenses, and cancellation of
indebtedness income. In addition, for the year ended March 31, 1996 there was no
adjustment to the provision for valuation of investments.
The decrease in equity in losses of Local Limited Partnerships is a result of an
increase in unrecognized losses relating to certain Local Limited Partnerships
which cumulative equity in losses and distributions exceeded the Partnership's
total investments in these Local Limited Partnerships during the comparable
periods. In addition, three of the Combining Entities had forgiveness of
indebtedness income as a result of refinancing and restructuring. The
Partnership also liquidated its interests in six Local Limited Partnerships.
The decline in general and administrative expenses is primarily attributable to
a reclassification of legal expenses paid out of reserves on behalf of a
Combined Entity now deemed collectible. In addition, overall expenses are lower
due to no provision for valuation of investments in Local Limited Partnerships.
1995 versus 1994
The Partnership's results of operations for the year ended March 31, 1995
resulted in a net loss of $9,002,359 as compared to a net loss of $7,684,561 for
the same period in 1994. The increase in net loss is primarily attributable to
an increase in the provision for valuation of investments in Local Limited
Partnerships, a decline in investment income and an increase in general and
administrative and operation expenses. Partially offsetting these increases to
net loss is a decrease in equity in losses of Local Limited Partnerships and an
increase in rental revenue. The increase in the provision for valuation is a
result of the Partnership recognizing a non-temporary decline in the carrying
value of its investments in certain Local Limited Partnerships. The decrease in
investment income is due to a decrease in the average balance of funds held for
investment which is partially due to losses realized by the Partnership on sales
and maturities of marketable securities. In calendar year 1993, the losses of
Local Limited Partnerships included the Texas Partnerships for a partial year
while in calendar 1994 they were excluded, causing a decrease in losses of Local
Limited Partnerships. The increase in rental revenue and rental operation
expenses are due to a full year of operations recorded in the Combined Financial
Statements for the Texas Partnerships for calendar 1994 as compared to a partial
year in calendar 1993. The increase in general and administrative expenses is
due to an increase in expenses paid on behalf of the Texas Partnerships.
Effect of recently issued Accounting Standard
The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standards No. 121, Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to Be Disposed Of, which is effective for fiscal years
beginning after December 15, 1995. This standard requires that the carrying
values of long-lived assets be reviewed for recoverability. Impairment losses
are recognized when future cash flows or other benefits are less than the
carrying amount of the asset. The Partnership plans to adopt the new standard
for its year
<PAGE>
ending March 31, 1997, however, it is not expected to have a significant effect
on financial position or results of operations.
Low-Income Housing Tax Credits
The 1995, 1994 and 1993 Tax Credits per Unit for individuals were $138.47,
$138.78 and $138.50, respectively. The 1995, 1994 and 1993 Tax Credits per Unit
for corporations were $144.62, $144.95 and $144.67, respectively. The credits,
which have stabilized, are expected to remain stable for the next five years and
then they are expected to decrease as certain properties reach the end of the
ten-year credit period. The transfer of ownership of the six Texas Partnerships
will result in nominal recapture of tax credits since the Texas Partnerships
represent only 2% of the Partnership's tax credits.
The Tax Credits per Unit for corporate investors will be slightly higher for the
remaining years of the credit period than that for individual investors because
certain of the Properties took advantage of 1990 federal legislation that
allowed the acceleration of future tax credits to individuals in the tax year
ended December 31, 1990. For those Properties that elected to accelerate the
individual credit, the accelerated portion is being amortized over the remainder
of the credit period, thereby causing a reduction of this and future year's tax
credits passed through by those Properties. In total, both individual and
corporate investors will be allocated equal amounts of Tax Credits.
Property Discussions
Prior to the transfer of six of the Texas Partnerships, Limited Partnership
interests had been acquired in sixty-nine Local Limited Partnerships which own
and operate rental properties located in twenty-four states. Forty-two of the
properties, totaling 3,935 units, were rehabilitated and twenty-seven
properties, consisting of 1,614 units, were newly constructed. All of the
properties have completed construction or rehabilitation and initial rent-up.
Most of the sixty-nine Local Limited Partnerships in which the Partnership has
invested have stable operations. The majority of these properties are operating
at break-even or above.
A few properties are experiencing operating difficulties and cash flow deficits
due to a variety of reasons. The Local General Partners of those properties have
funded operating deficits through project expense loans, subordinated loans or
payments from operating escrows. In instances where the Local General Partners
have stopped funding deficits because their obligation to do so has expired or
otherwise, the Managing General Partner is working with the Local General
Partner to increase operating income, reduce expenses or refinance the debt at
lower interest rates in order to improve cash flow.
Willow Lake, located in Kansas City, Missouri, continues to improve operations
despite a soft local market and a high mortgage interest rate. The new Local
General Partner, an affiliate of the Partnership, executed final workout
documents in February 1994. An amended workout agreement became effective May
31, 1996, which expires March 31, 1997 with an option for a twelve month
extension.
The Temple-Kyle Limited Partnership located in Temple, Texas, experienced
financial difficulties which resulted in a default on its mortgage. The lender
placed the property into involuntary bankruptcy in May 1993, as a protective
measure. In January 1994, a bankruptcy trustee was appointed to oversee the
Local Limited Partnership's affairs during the bankruptcy proceedings. During
1995, affiliates of the Managing General Partner reached an agreement with the
lender on a Joint Disclosure Statement and Plan of Reorganization. The plan
called for the Partnership to purchase the mortgage from the current lender for
$850,000 (paid from Partnership reserves) plus a non-recourse note of
approximately $612,000. The note was collateralized by a letter of credit from
the Partnership. The note was paid in full as of March 1996 with Partnership
reserves. Affiliates of the Managing General Partner replaced the Local General
Partner and the management agent. The Bankruptcy Court approved the Joint
Disclosure Statement on July 12, 1995 and confirmed the Plan of Reorganization
on September 13, 1995. The loan closing
<PAGE>
was held on September 29, 1995. An affiliate of the Managing General Partner is
currently working to refinance the mortgage, subject to approval by the local
housing authority.
Since June 1993, affiliates of the Managing General Partner have been involved
in intensive workout negotiations with the federal governmental lender to the
Texas Partnerships, the Rural Economic and Community Development Services
(RECDS) (formerly called the Farmers Home Administration of the U.S. Department
of Agriculture, FmHA). Affiliates of the Managing General Partner reached an
agreement with RECDS for a comprehensive workout of the Texas Partnerships. The
workout provided for additional loans and rental assistance from RECDS, a debt
service moratorium through July 1995, and additional equity from the
Partnership.
Completion of the workout agreement proved to be difficult. As a result, the
Managing General Partner has transferred or is in the process of transferring
all of the assets of six of the Texas Partnerships subject to their liabilities
to unaffiliated entities. Glenbrook Apartments' transfer was effective June 6,
1996. Five of the properties (Crown Point, Godley Arms, Sherwood Arms, Quail Run
Apartments, and Lone Oak Apartments) are being transferred to new owners
effective after March 31, 1996.
The Managing General Partner of the Partnership has executed an agreement to
sell the general partner interests in the seven remaining Texas Partnerships
(Crestwood Place, Eagle Nest Apartments, Hallet-West Apartments, One Main Place,
Pilot Point Apartments, Shady Shores Apartments and Willowick Apartments) to an
unaffiliated buyer. These properties will be restructured into a new partnership
in which the Partnership will retain a limited partner interest for a period of
time expected to be about twelve months. During this period, investors will
continue to receive tax credits from these properties.
For tax purposes, these events will result in both Section 1231 Gain and
Cancellation of Indebtedness income. In addition, the transfer of ownership will
result in nominal recapture of tax credits, since the Texas Partnerships
represent only 2% of the Partnership's tax credits.
It was previously reported that Harbour View Associates, located in Staten
Island, New York, had defaulted on its HUD-insured loan and the lender assigned
the loan to HUD. A workout proposal was submitted in December 1992 and was
initially approved by HUD on March 23, 1995. The Local General Partner is
working with HUD on the final terms. HUD has a program to sell all performing
and non-performing mortgages in a public auctions that are scheduled to take
place on a region-to-region basis over the next few years. Harbour View's
mortgage was not included in the auctions scheduled for April, 1996, but may be
included in a future auction. If the property's mortgage were assigned to a new
lender, the property's continued feasibility will depend on the ability of the
Local General Partner or the Partnership or their respective affiliates to
purchase the mortgages or to negotiate a satisfactory arrangement with the
buyer.
As previously reported, Regency Square and Rolling Hills, both located in
Dayton, Ohio, have experienced low levels of occupancy and rental rates due to
the deterioration of the local economy and the neighborhoods in which they are
located. The mortgages of both properties have been assigned to HUD and workout
plans were submitted to the agency but were rejected. In 1993, the Local General
Partner engaged a new management company and occupancy has been improving,
although still below satisfactory levels. Operating deficits have been funded by
accruing interest expense. In February 1995, HUD notified the Local General
Partner of its intention to foreclose upon Rolling Hills and Regency Square. An
affiliate of the Managing General Partner became actively involved in the
discussions with HUD to achieve work outs for these properties. Recently, HUD
issued a written approval on three-year workout proposals on these properties
which include the termination of any foreclosure action in exchange for
additional capital to fund capital improvements. The workout terms were agreed
upon in November 1995, however, the agreements were not officially approved
until late December 1995. The workout called for construction rehabilitation
work. Occupancy levels were expected to increase significantly within six
months. These results have not yet materialized and the properties are slated
for inclusion in HUD's non-performing loan auction in August 1996.
<PAGE>
The Massachusetts Housing Finance Agency ("MHFA") approved a restructuring plan
for Pleasant Plaza, located in Malden, Massachusetts, in December 1995. The
workout includes increased subsidy, the availability of $1.3 million from the
Local General Partner's letter of credit to fund operating deficits, and the
option to commit, at the maturity of the debt, 25% of the units towards low
income use in perpetuity. The property has been operating at a deficit due to
its debt structure; however, the deficits are covered by operating deficit
escrows of the Local General Partner and by the workout plan. As previously
reported, affiliates and a principal of the sole owner of the Local General
Partner of Pleasant Plaza filed for reorganization under Chapter 11 of the
Bankruptcy Code in 1992. A preliminary Plan of Reorganization was recently to be
submitted to the court.
Breckenridge Creste, located in Duluth, GA, has been experiencing financial
difficulties. Increased vacancies and a weak rental market and deferred
maintenance are major factors. An agreement was reached to allow admission of an
affiliate of the Partnership as General Partner under certain circumstances. The
Managing General Partner is actively working with the Local General Partner to
replace the management agent and to develop a plan to stabilize property
operations. Any change in the management agent will be subject to the lender's
approval.
Shoreline and Waterfront, Buffalo, New York properties which share a common
Local General Partner, have been experiencing occupancy problems due to the soft
rental market. The Local General Partner is increasing marketing efforts to
improve occupancy. Both properties have received approval for state grants to
improve security systems. The properties carry cash flow mortgages from the
State.
The original General Partner of Admiral Court, located in Philadelphia,
Pennsylvania, was recently replaced by a new Local General Partner, Friends
Rehabilitation Program, Inc., a leading non-profit manager and developer of
affordable housing in Philadelphia. The new Local General Partner refinanced the
property's mortgage which resulted in lower debt service payments.
Inflation and Other Economic Factors
Inflation had no material impact on the Partnerships operations or financial
condition for the years ended March 31, 1996, 1995 and 1994.
As some Properties benefit from some form of government assistance, the
Partnership is subject to the risks inherent in that area including decreased
subsidies, difficulties in finding suitable tenants and obtaining permission for
rent increases. In addition, and Tax Credits allocated to investors with respect
to a Property are subject to recapture to the extent that a Property or any
portion thereof ceases to qualify for Tax Credits.
Some of the properties listed in this report are located in areas suffering from
poor economic conditions. Such conditions could have an adverse effect on the
rent or occupancy levels at such Properties. Nevertheless, the Managing General
Partner believes that the generally high demand for below market rate housing
will tend to negate such factors. However, no assurance can be given in this
regard.
Item 8. Financial Statements and Supplementary Data
Information required under this Item is submitted as a separate section of this
Report. See Index on page F-1 hereof.
Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure
None.
<PAGE>
PART III
Item 10. Directors and Executive Officers of the Registrant
The Managing General Partner of the Partnership is Arch Street III, Inc., a
Massachusetts corporation (the "Managing General Partner" or "Arch Street III,
Inc."), an affiliate of The Boston Financial Group Limited Partnership ("Boston
Financial"), a Massachusetts limited partnership. George Fantini, Jr., a Vice
President of the Managing General Partner resigned his position effective June
30, 1995.
The Managing General Partner was incorporated in August 1988. William E.
Haynsworth is the Chief Operating Officer of the Managing General Partner, and
had the primary responsibility for evaluating, selecting and negotiating
investments for the Partnership. The Investment Committee of the Managing
General Partner approved all investments. The names and positions of the
principal officers and the directors of the Managing General Partner are set
forth below.
Name Position
Georgia Murray Managing Director, Treasurer and
Chief Financial Officer
Fred N. Pratt, Jr. Managing Director
William E. Haynsworth Managing Director, Vice President and
Chief Operating Officer
Paul F. Coughlan Vice President
Peter G. Fallon, Jr. Vice President
Donna C. Gibson Vice President
Randolph G. Hawthorne Vice President
A. Harold Howell Vice President
The other General Partner of the Partnership is Arch Street III Limited
Partnership, a Massachusetts Limited Partnership ("Arch Street III L.P.") that
was organized in August 1988. The General Partners of Arch Street III L.P. are
Messrs. Howell, Haynsworth, and Hawthorne.
The Managing General Partner provides day-to-day management of the Partnership.
Compensation is discussed in Item 11 of this report. Such day-to-day management
does not include the management of the Properties.
The business experience of each of the persons listed above is described below.
There is no family relationship between any of the persons listed in this
section.
Georgia Murray, age 45, is a graduate of Newton College of the Sacred Heart
(B.A., 1972). She joined Boston Financial Management Company in 1973 and is
currently a Senior Vice President of Boston Financial. Ms. Murray currently
serves on the firm's senior leadership team, and oversees the firm's efforts in
structuring tax credit investments for corporate investors. Previously she
managed Boston Financial's Investment Real Estate, Asset Management, and
Property Management divisions. She is a member of the Board of Directors of the
General Partner of Boston Financial. She also serves as a director of Atlantic
Bank and Trust Company.
Fred N. Pratt, Jr., age 51, graduated from Tufts University and the Amos Tuck
School of Business Administration at Dartmouth College. Mr. Pratt was one of the
original employees of Boston Financial when it was founded in late 1969. He
currently serves as Boston Financial's Chief Executive Officer, and Chairman of
the Board of Directors of the General Partner of Boston Financial.
William E. Haynsworth, age 56, graduated from Dartmouth College and Harvard Law
School. Mr. Haynsworth was Acting Executive Director of the Massachusetts
Housing Finance Agency, where he was also General Counsel, prior to becoming a
Vice President of Boston Financial in 1977 and a Senior Vice President in 1986.
He has also
<PAGE>
served as Director of Non-Residential Development of the Boston Redevelopment
Authority and as an associate of the law firm of Goodwin, Procter & Hoar in
Boston. Mr. Haynsworth is a member of the Board of Directors of the General
Partner of Boston Financial and Senior Leadership Team, participating in the
structuring of real estate investments and the development of new business
opportunities.
Paul F. Coughlan, age 52, is a graduate of Brown University (A.B., 1965) and
served in the United States Navy before entering the securities business in
1969. He was employed as an investment broker by Bache & Company until 1972, and
then by Reynolds Securities Inc. He joined Boston Financial in 1975 as a Vice
President in the Real Estate Investment Marketing area and was named a Senior
Vice President in 1986. He currently participates in marketing the firm's
Institutional Tax Credit product.
Peter G. Fallon, Jr., age 57, graduated from the College of the Holy Cross
(B.S., 1960) and Babson College (M.B.A., 1965). He joined Boston Financial in
1970, shortly after its formation, and is currently a Senior Vice President with
responsibility for the marketing of the firm's Institutional Tax Credit
products.
Donna C. Gibson, age 54, who previously served as Chairman of the Commonwealth
of Massachusetts Board of Registration for Real Estate Brokers and Salesmen, and
as President of Community Workshop, Inc., joined Boston Financial Property
Management in 1978. She was a Vice President of Hunneman & Company, Inc., a
Boston real estate firm, for fifteen years, and from 1976 to 1978 she was a
Senior Management Analyst for the Massachusetts Housing Finance Agency. She is a
member of the Firm's Senior Leadership Team and was formerly responsible for the
administration and financial control of Boston Financial's Property Management
Division. She is a member of the Board of Directors of the General Partner of
Boston Financial.
Randolph G. Hawthorne, age 46, is a graduate of Massachusetts Institute of
Technology and Harvard Graduate School of Business. He has been associated with
Boston Financial since 1973 and has served as the Treasurer of Boston Financial.
Currently, a Senior Vice President of Boston Financial and a member of the Board
of Directors of the General Partner of Boston Financial, Mr. Hawthorne's primary
responsibility is the structuring and marketing of real estate investments and
the development of new business opportunities. He serves as Vice Chairman of the
National Multi-Family Housing Council and was a former president of the National
Housing and Rehabilitation Association.
A. Harold Howell, age 55, graduated from Harvard College and the Amos Tuck
School of Business Administration at Dartmouth College. He has been employed by
Boston Financial since 1970. For most of this time, he has been active in the
overall administration of Boston Financial and its affiliates but has also been
involved in other areas of its business. Mr. Howell has served as head of Boston
Financial's Property Management Division and also as its Chief Financial Officer
and Chief Executive Officer. He currently is a Senior Vice President and a
member of the Board of Directors of the General Partner of Boston Financial,
involved in the overall management of the Firm. Mr. Howell recently spent a
two-year sabbatical from Boston Financial as a Visiting Professor at the
Instituto de Estudios Superiores de la Empresa, a highly regarded international
M.B.A. program in Barcelona, Spain. While there he taught courses in business
strategy and real estate finance.
Item 11. Management Remuneration
Neither the directors or officers of Arch Street III, Inc., nor the partners of
Arch Street III L.P., nor any other individual with significant involvement in
the business of the Partnership receives any current or proposed remuneration
from the Partnership.
<PAGE>
Item 12. Security Ownership of Certain Beneficial Owners and Management
As of March 31, 1996, the following is the only entity known to the Partnership
to be the beneficial owner of more than 5% of the total number of Units
outstanding:
Amount
Title of Name and Address of Beneficially Percent
Class Beneficial Owner Owned of Class
Limited AMP, Incorporated 10,000 Units 10%
Partner P.O. Box 3608
Harrisburg, PA
The equity securities registered by the Partnership under Section 12(g) of the
Act consist of 100,000 Units, all of which have been sold to the public as of
March 31, 1996. Holders of Units are permitted to vote on matters affecting the
Partnership only in certain unusual circumstances and do not generally have the
right to vote on the operation or management of the Partnership.
As of March 31, 1996, Arch Street III L.P. owns five (unregistered) Units not
included in the 100,000 units sold to the public.
Except as described in the preceding paragraph, neither Arch Street III, Inc.,
Arch Street III L.P., Boston Financial, nor any of their executive officers,
directors, partners or affiliates is the beneficial owner of any Units. None of
the foregoing persons possesses a right to acquire beneficial ownership of
Units.
The Partnership does not know of any existing arrangement that might at a later
date result in a change in control of the Partnership.
Item 13. Certain Relationships and Related Transactions
Information required under this Item is contained in Note 6 to the Combined
Financial Statements presented in Item 14.
The Partnership was required to pay certain fees to and reimburse certain
expenses of the Managing General Partner or its affiliates (including Boston
Financial) in connection with the organization of the Partnership and the
offering of Units. The Partnership was also required to pay certain fees to and
reimburse certain expenses of the Managing General Partner or its affiliates
(including Boston Financial) in connection with the administration of the
Partnership and its acquisition and disposition of investments in Local Limited
Partnerships. In addition, the General Partners are entitled to certain
Partnership distributions under the terms of the Partnership Agreement. Also, an
affiliate of the General Partners will receive up to $10,000 from the sale or
refinancing proceeds of each Local Limited Partnership, if it is still a limited
partner at the time of such transaction. All such fees and distributions are
more fully described in the sections entitled "Estimated Use of Proceeds",
"Management Compensation and Fees" and "Profits and Losses for Tax Purposes, Tax
Credits and Cash Distributions" of the Prospectus. Such sections are
incorporated herein by reference.
Boston Financial Property Management ("BFPM"), an affiliate of the Managing
General Partner, currently manages Harbour View, a property in which the
Partnership has invested. The property management fee charged is equal to 5% of
properties' gross revenues. Included in operating expenses in the summarized
income statements in Note 5 to the Combined Financial Statements is $46,915,
$45,845 and $43,656 of fees earned by BFPM during 1995, 1994 and 1993,
respectively.
<PAGE>
On April 2, 1993, BFPM became the management agent of Willow Lake. In August of
1993, BFPM became the management agent for the Texas Partnerships. On September
29, 1995, BFPM became the management agent of The Kyle. The property management
fee charged is equal to 5% of the properties' gross revenue. Included in the
Combined Statements of Operations is $70,315, $177,185 and $47,448 of property
management fees charged by BFPM during 1995, 1994 and 1993, respectively.
Payables to affiliates includes $71,113 and $113,008 of property management fees
at December 31, 1995 and 1994, respectively.
During 1995, an affiliate of the Managing General Partner advanced the
Partnership $22,279 to cover operating deficits. A non-interest bearing note was
executed.
The Partnership is permitted to enter into transactions involving affiliates of
the Managing General Partner, subject to certain limitations established in the
Partnership Agreement.
Information regarding the fees paid and expense reimbursements made in the three
years ending March 31, 1996 is presented below.
Organizational fees and expenses
In accordance with the Partnership Agreement, Boston Financial is to be
reimbursed by the Partnership for organizational, offering and selling expenses
advanced on behalf of the Partnership by Boston Financial or its affiliates, and
for salaries and direct expenses of certain employees of the Managing General
Partner and its affiliates in connection with the registration and organization
of the Partnership. Such expenses include printing expenses and legal,
accounting, escrow agent and depository fees and expenses. Such expenses also
include a non-accountable expense allowance for marketing expenses equal to 1%
of gross offering proceeds. As of March 31, 1996, $11,832,395 of organization
fees and expenses and selling expenses incurred on behalf of the Partnership
were paid and reimbursed or, to an affiliate of the Managing General Partner.
Total organization and offering expenses did not exceed 5.5% of the gross
offering proceeds.
Acquisition fees and expenses
In accordance with the Partnership Agreement, the Partnership is required to pay
acquisition fees to and reimburse acquisition expenses of the Managing General
Partner or its affiliates for selecting, evaluating, structuring, negotiating,
and closing the Partnership's investments in Local Limited Partnerships.
Acquisition fees total 7.5% of the gross offering proceeds. Acquisition
expenses, which include such expenses as legal fees and expenses, travel and
communications expenses, costs of appraisals, accounting fees and expenses, were
estimated to total 2% of the gross offering proceeds. As of March 31, 1996,
acquisition fees totaling $7,500,000 for the closing of the Partnership's Local
Limited Partnership Investments have been paid to an affiliate of the Managing
General Partner. Acquisition expenses totaling $1,587,834 at March 31, 1996 were
incurred and have been reimbursed to an affiliate of the Managing General
Partner. In accordance with the Partnership Agreement, 15% of the acquisition
fees payable to an affiliate of the Managing General Partner is the "Deferred
Acquisition Fees". The Deferred Acquisition Fees have been deposited in an
interest bearing account and is paid annually, with interest, at the rate of 10%
per year over 10 years. Installments began on the second anniversary of the
Prospectus, November 23, 1990. As of March 31, 1996 and 1995, deferred
acquisition fees payable amounted to $450,000 and $562,506 respectively.
Payments made and expenses reimbursed in each of the three years ended March 31,
1996 are as follows:
1996 1995 1994
---------- ---------- -------
Acquisition fees and expenses - $ - $ 5,000
Deferred acquisition fees 112,500 $112,500 $112,500
<PAGE>
Asset Management Fees
In accordance with the Partnership Agreement, an affiliate of the Managing
General Partner is paid an annual fee for services in connection with the
administration of the affairs of the Partnership. The affiliate currently
receives $6,601 (as adjusted by the CPI factor) per Local Limited Partnership
annually as the Asset Management Fee.
Asset Management Fees incurred made in each of the three years ended March 31,
1996 are as follows:
1996 1995 1994
---------- ---------- -------
Asset management fees $447,110 $435,572 $ 424,120
Property Management Fees
An affiliate of the Managing General Partner is currently the management agent
of Willow Lake, The Kyle and the Texas Partnerships. The property management fee
charged is equal to 5% of the properties' gross revenue. Fees charged in each of
the three years ended December 31, 1995 are as follows:
1995 1994 1993
---------- --------- -------
Property management fees $70,315 $177,185 $47,448
Salaries and benefits expense reimbursements
An affiliate of the Managing General Partner is reimbursed for the cost of the
Partnership's salaries and benefits expenses. The reimbursements are based upon
the size and complexity of the Partnership's operations. Reimbursements made in
each of the three years ended March 31, 1996 are as follows:
1996 1995 1994
---------- ---------- -------
Salaries and benefits expense
reimbursements $182,482 $155,236 $ 145,946
Cash distributions paid to the General Partners
In accordance with the Partnership Agreement, the General Partners of the
Partnership, Arch Street III, Inc. and Arch Street III Limited Partnership,
receive 1% of cash distributions made to partners. No cash distributions were
made to the General Partners in any of the three years ended March 31, 1996.
<PAGE>
PART IV
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K
(a) (1) and (a) (2) Documents filed as a part of this Report.
In response to this portion of Item 14, the combined financial statements,
financial statement schedules and the auditors' report relating thereto, are
submitted as a separate section of this Report. See Index to the Combined
Financial Statements and Schedules on page F-1 hereof.
The reports of auditors of the Local Limited Partnership relating to the audits
of the financial statements of such Local Limited Partnerships appear in Exhibit
(28)(1) of this report.
Other schedules have been omitted as they are either not required or the
information required to be presented therein is available elsewhere in the
combined financial statements or the accompanying notes and schedules.
(a)(3) See Exhibit Index contained herein.
(a)(3)(b) None.
(a)(3)(c) Exhibits
Page Number or
Number and Description in Accordance with Incorporation
Item 601 of Regulation S-K by Reference to
- -------------------------- ---------------
28. Additional Exhibits
(a) 28.1 Reports of Other Independent Auditors
(b) Audited financial statements of
Local Limited Partnerships
1. None
(a)(3)(d) None
<PAGE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this Report to be signed on its
behalf by the undersigned, thereunto duly authorized.
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
By: Arch Street III, Inc.
its Managing General Partner
By: /s/ William E. Haynsworth Date: June 28, 1996
William E. Haynsworth,
Managing Director, Vice President and
Chief Operating Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed by the following persons on behalf of the Managing General
Partner of the Partnership and in the capacities and on the dates indicated:
By: /s/ William E. Haynsworth Date: June 28, 1996
William E. Haynsworth,
Managing Director, Vice President and
Chief Operating Officer
By: /s/ Fred N. Pratt, Jr. Date: June 28, 1996
Fred N. Pratt, Jr.,
A Managing Director
<PAGE>
Item 8. Financial Statements and Supplementary Data
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Annual Report on Form 10-K for the Year Ended March 31, 1996
Index
Page No.
------------
Report of Independent Accountants F-2
Financial Statements
Combined Balance Sheets - March 31, 1996 and 1995 F-3
Combined Statements of Operations - For the Years Ended
March 31, 1996, 1995 and 1994 F-4
Combined Statements of Changes in Partners' Equity
(Deficiency) - For the Years Ended March 31, 1996,
1995 and 1994 F-5
Combined Statements of Cash Flows - For the Years Ended
March 31, 1996, 1995 and 1994 F-6
Notes to Combined Financial Statements F-8
Financial Statement Schedule:
Schedule III - Real Estate and Accumulated Depreciation F-26
See also Index to Exhibits on Page K-31 for the financial statements of the
Local Limited Partnerships included as a separate exhibit in this Annual Report
on Form 10-K.
Other schedules have been omitted as they are either not required or the
information required to be presented therein is available elsewhere in the
financial statements and the accompanying notes and schedules.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of
Boston Financial Qualified Housing Tax Credits L.P. III
(A Limited Partnership)
We have audited the combined balance sheets of Boston Financial
Qualified Housing Tax Credits L.P. III (A Limited Partnership) ("BFQHIII") as of
March 31, 1996 and 1995 and the related combined statements of operations,
changes in partners' equity, and cash flows and the financial statement schedule
listed in Item 14(a) of this Report on Form 10-K for the each of the three years
in the period ended March 31, 1996. These financial statements and financial
statement schedules are the responsibility of BFQHIII's management. Our
responsibility is to express an opinion on these financial statements and
financial statement schedules based on our audits. In 1996 and 1995, 84% and 60%
of total assets, respectively, and in 1996, 1995 and 1994, 69%, 52% and 74% of
net loss, respectively, reflected in the combined financial statements of
BFQHIII, relate to investments in Local Limited Partnerships for which we did
not audit the financial statements. The financial statements of those Local
Limited Partnerships were audited by other auditors whose reports have been
furnished to us, and our opinion, insofar as it relates to those investments in
Local Limited Partnerships, is based solely upon the reports of the other
auditors.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the combined financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the combined financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, based on our audits and the reports of other auditors, the
combined financial statements referred to above present fairly, in all material
respects, the financial position of BFQHIII at March 31, 1996 and 1995, and the
results of its operations and its cash flows for each of the three years in the
period ended March 31, 1996 in conformity with generally accepted accounting
principles. In addition, in our opinion the financial statement schedule
referred to above, when considered in relation to the basic combined financial
statements taken as a whole, present fairly, in all material respects, the
information required to be included therein.
Coopers & Lybrand L.L.P.
Boston, Massachusetts
June 25, 1996
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
<TABLE>
<CAPTION>
COMBINED BALANCE SHEETS - MARCH 31, 1996 AND 1995
1996 1995
--------- ---------
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 268,040 $ 155,456
Accounts receivable, net 40,757 160,409
Interest receivable 740 18,704
Prepaid expenses 35,930 35,819
Tenant security deposits 67,011 66,473
Other current assets 53,656 78,059
------------ ------------
Total current assets 466,134 514,920
Investments in Local Limited Partnerships, net
of reserve for valuation of $1,635,000
in 1996 and 1995 (Note 4) 30,216,554 36,694,357
Marketable securities, at fair value (Notes 1 and 3) 158,967 2,200,946
Replacement reserves 168,335 67,995
Rental property at cost, net of accumulated
depreciation (Note 6) 12,818,153 12,508,437
Deferred acquisition fees escrow (Note 5) 450,000 562,506
Deferred expenses, net of $31,836 and $21,352
accumulated amortization in 1996 and 1995 93,479 103,963
------------ ------------
Total Assets $ 44,371,622 $ 52,653,124
============ ============
Liabilities and Partners' Equity
Current Liabilities:
Accounts payable to affiliates (Note 5) $ 755,244 $ 356,743
Accounts payable and accrued expenses 471,328 343,277
Current portion of mortgage notes payable (Note 7) 4,261,276 6,816,613
Interest payable 186,550 226,147
Note payable - affiliate (Note 5) 22,279 --
Security deposits payable 60,229 85,719
------------ ------------
Total current liabilities 5,756,906 7,828,499
Due to affiliate (Note 8) 323,046 323,046
Deferred acquisition fees payable (Note 5) 450,000 562,506
Former general partner advances (Note 9) 200,000 611,909
Mortgage notes payable (Note 7) 2,744,825 2,764,484
------------ ------------
Total Liabilities 9,474,777 12,090,444
------------ ------------
Minority interest in Local Limited Partnerships 341,952 602,393
------------ ------------
Commitments and Contingency (Notes 9 and 12) -- --
General, Initial and Investor Limited Partners' Equity 34,554,881 39,995,432
Net unrealized gains (losses) on marketable securities 12 (35,145)
------------ ------------
Total Partners' Equity 34,554,893 39,960,287
------------ ------------
Total Liabilities and Partners' Equity $ 44,371,622 $ 52,653,124
============ ============
</TABLE>
The accompanying notes are an integral part of these combined financial
statements.
<PAGE>
<TABLE>
<CAPTION>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
COMBINED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED MARCH 31, 1996, 1995 AND 1994
1996 1995 1994
----------- ------------ -------
<S> <C> <C> <C>
Revenue:
Rental $ 2,143,530 $ 1,727,982 $ 767,587
Investment 85,858 56,496 142,655
Other 150,906 142,026 290,157
----------- ----------- -----------
Total Revenue 2,380,294 1,926,504 1,200,399
----------- ----------- -----------
Expenses:
Asset management fees (Note 5) 447,110 435,572 424,120
General and administrative (includes reimbursements
to affiliates of $182,482, $155,236, and $145,946,
respectively) (Note 5) 841,989 1,167,244 573,519
Bad debt expense 54,351 -- --
Property management fees, related party (Note 5) 84,715 177,185 47,448
Rental operations, exclusive of depreciation 1,488,464 1,549,436 742,393
Interest expense (Note 7) 754,480 431,389 283,296
Provision for valuation of investments
in Local Limited Partnerships (Note 4) -- 675,000 421,815
Depreciation 573,735 490,410 310,664
Amortization 179,003 192,490 199,687
----------- ----------- -----------
Total Expenses 4,423,847 5,118,726 3,002,942
----------- ----------- -----------
Loss before equity in losses of Local Limited
Partnerships and extraordinary item (2,043,553) (3,192,222) (1,802,543)
Equity in losses of Local Limited
Partnerships (Note 4) (4,670,063) (5,818,976) (5,887,566)
Minority interest in (income) losses of
Local Limited Partnerships (6,553) 8,659 5,548
----------- ----------- -----------
Net Loss before extraordinary item (6,720,169) (9,002,539) (7,684,561)
Extraordinary gain on forgiveness
of indebtedness (Note 11) 1,279,618 -- --
----------- ----------- -----------
Net Loss $(5,440,551) $(9,002,539) $(7,684,561)
=========== =========== ===========
Net Loss Allocated:
To General Partners $ (54,406) $ (90,025) $ (76,846)
To Limited Partners (5,386,145) (8,912,514) (7,607,715)
----------- ----------- -----------
$(5,440,551) $(9,002,539) $(7,684,561)
=========== =========== ===========
Net Loss before extraordinary item
per Limited Partnership Unit (100,000 Units) $ (66.53) $ (89.13) $ (76.08)
=========== =========== ===========
Extraordinary item per Limited
Partnership Unit (100,000 Units) $ 12.67 $ -- $ --
=========== =========== ===========
Net loss per Limited
Partnership Unit (100,000 Units) $ (53.86) $ (89.13) $ (76.08)
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these combined financial
statements.
<PAGE>
<TABLE>
<CAPTION>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
COMBINED STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
FOR THE YEARS ENDED MARCH 31, 1996, 1995 AND 1994
Net
Initial Investor Unrealized
General Limited Limited Gains
Partners Partners Partners (Losses) Total
<S> <C> <C> <C> <C> <C>
Balance at March 31, 1993 $ (309,020) $ 5,000 $ 56,986,552 $ -- $ 56,682,532
Net change in unrealized losses
on marketable securities
available for sale -- -- -- (46,080) (46,080)
Net Loss (76,846) -- (7,607,715) -- (7,684,561)
------------ ------------ ------------ ------------ ------------
Balance at March 31, 1994 (385,866) 5,000 49,378,837 (46,080) 48,951,891
Net change in unrealized losses
on marketable securities
available for sale -- -- -- 10,935 10,935
Net Loss (90,025) -- (8,912,514) -- (9,002,539)
------------ ------------ ------------ ------------ ------------
Balance at March 31, 1995 (475,891) 5,000 40,466,323 (35,145) 39,960,287
Net change in unrealized losses
on marketable securities
available for sale -- -- -- 35,157 35,157
Net Loss (54,406) -- (5,386,145) -- (5,440,551)
------------ ------------ ------------ ------------ ------------
Balance at March 31, 1996 $ (530,297) $ 5,000 $ 35,080,178 $ 12 $ 34,554,893
============ ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these combined financial
statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
<TABLE>
<CAPTION>
COMBINED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31, 1996, 1995 AND 1994
1996 1995 1994
------------ ------------ -------
<S> <C> <C> <C>
Net loss $(5,440,551) $(9,002,539) $(7,684,561)
Adjustments to reconcile net loss to net
cash used for operating activities:
Equity in losses of Local Limited Partnerships 4,670,063 5,818,976 5,887,566
Bad debt expense 54,351 -- --
Provision for valuation of investments
in Local Limited Partnerships -- 675,000 421,815
Cancellation of indebtedness income (1,279,618) -- --
Cash distribution included in net loss (13,456) (8,577) --
Replacement reserves (66,521) (11,503) --
Amortization and depreciation 752,738 682,900 510,351
(Gain) loss on sale of marketable securities (4,555) 66,613 --
Minority interest in income (loss) of Local
Limited Partnerships 6,553 (8,659) (5,548)
Increase (decrease) in cash arising from changes
in operating assets and liabilities:
Other current assets 104,653 (187,669) (22,784)
Accounts payable to affiliates 408,603 407,029 175,641
Accounts payable and accrued expenses 376,480 (174,147) (240,777)
----------- ----------- -----------
Net cash used for operating activities (431,260) (1,742,576) (958,297)
----------- ----------- -----------
Cash flows from investing activities:
Investments in Local Limited Partnerships -- -- 89,647
Purchases of marketable securities (1,700,979) (2,799,575) --
Proceeds from sales and maturities of
marketable securities 3,782,670 3,822,762 --
Decrease in marketable securities -- -- 686,452
Cash distributions received from Local
Limited Partnerships 345,051 415,959 243,329
Cash received upon assumption of General Partners
interest in the Combined Entity 43,646 -- --
Decrease in deferred acquisition fee escrow 112,506 112,500 112,500
Payment of deferred acquisition fees (112,506) (112,500) (112,500)
Payment of acquisition fees and expenses -- -- (5,000)
Purchase of fixed assets (245,961) (161,889) (160,942)
Cash received in assumption of General Partner's
interest in the Combined Entities -- -- 52,502
----------- ----------- -----------
Net cash provided by investing activities 2,224,427 1,277,257 905,988
----------- ----------- -----------
</TABLE>
The accompanying notes are an integral part of these combined financial
statements.
<PAGE>
<TABLE>
<CAPTION>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
COMBINED STATEMENTS OF CASH FLOWS (continued)
FOR THE YEARS ENDED MARCH 31, 1996, 1995 AND 1994
1996 1995 1994
------------ ------------ -------
<S> <C> <C> <C>
Cash flows from financing activities:
Repayment of General Partner advances -- -- (7,787)
Advances from developer -- 5,172 --
Advances from general partner 50,397 216,039 --
Payments to general partner (173,500) -- --
Advances from mortgages payable -- 179,500 256,008
Repayment of mortgage notes payable (158,404) (32,418) (6,692)
Advances from affiliate 22,279 -- --
Advances from (payments to) developer 13,756 -- --
Capital contributions received 14,522 -- --
Repayment of Local Limited Partnership's mortgage (1,462,693) -- --
Repayment of notes receivable affiliate 13,060 -- --
----------- ----------- -----------
Net cash provided by (used for) financing activities (1,680,583) 368,293 241,529
----------- ----------- -----------
Net increase (decrease) in cash and
cash equivalents 112,584 (97,026) 189,220
Cash and cash equivalents, beginning of year 155,456 252,482 63,262
----------- ----------- -----------
Cash and cash equivalents, end of year $ 268,040 $ 155,456 $ 252,482
=========== =========== ===========
Supplemental Disclosure:
Cash paid for interest $ 646,380 $ 463,131 $ 56,166
=========== =========== ===========
</TABLE>
Non-cash disclosure:
See Note 10 for discussion of the change in control of certain Texas
Partnerships.
See Note 11 for discussion of cancellation of indebtedness income.
The accompanying notes are an integral part of these combined financial
statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Notes to the Combined Financial Statements
1. Organization
Boston Financial Qualified Housing Tax Credits L.P. III (the "Partnership") was
formed on August 9, 1988 under the laws of the State of Delaware for the primary
purpose of investing, as a limited partner, in other limited partnerships
("Local Limited Partnerships"), most of which own and operate apartment
complexes, most of which benefit from some form of federal, state or local
assistance program and each of which qualify for low-income housing tax credits.
The Partnership's objectives are to (i) provide current tax benefits in the form
of tax credits which qualified investors may use to offset their federal income
tax liability, ii) preserve and protect the Partnership's capital, iii) provide
limited cash distributions which are not expected to constitute taxable income
during Partnership operations, and iv) provide cash distributions from sale or
refinancing transactions. The General Partners of the Partnership are Arch
Street III, Inc., which serves as the Managing General Partner, and Arch Street
III L.P. which also serves as the Initial Limited Partner. Both of the General
Partners are affiliates of The Boston Financial Group Limited Partnership
("Boston Financial"). The fiscal year of the Partnership ends on March 31.
The Certificate and Agreement of Limited Partnership ("Partnership Agreement")
authorized the sale of up to 100,000 units of Limited Partnership Interest
("Units") at $1,000 per Unit, adjusted for certain discounts. The Partnership
raised $99,610,000, ("Gross Proceeds") net of discounts of $390,000, through the
sale of 100,000 Units. Such amounts exclude five unregistered Units previously
acquired for $5,000 by the Initial Limited Partner, which is also one of the
General Partners. The offering of Units terminated on May 30, 1989. No further
sale of Units is expected.
Generally, profits, losses, tax credits, and cash flow from operations are
allocated 99% to the Limited Partners and 1% to the General Partners. Net
proceeds from a sale or refinancing will be allocated 95% to the Limited
Partners and 5% to the General Partners, after certain priority payments.
Under the terms of the Partnership Agreement, the Partnership initially
designated 3% of the Gross Proceeds from the sale of Units as a reserve for
working capital of the Partnership and contingencies related to ownership of
Local Limited Partnership interests. During the year ended March 31, 1993, the
Managing General Partner decided to increase the reserve level to 3.75%. At
March 31, 1996, the Managing General Partner has designated approximately
$257,000 of cash, cash equivalents and marketable securities as such reserve.
2. Significant Accounting Policies
Basis of Presentation and Combination
The Partnership accounts for its investments in Local Limited Partnerships, with
the exception of the Combined Entities, using the equity method of accounting.
Under the equity method, the investment is carried at cost, adjusted for the
Partnership's share of net income or loss and for cash distributions from the
Local Limited Partnerships; equity in income or loss of the Local Limited
Partnerships is included currently in the Partnership's operations. Under the
equity method, a Local Limited Partnership investment will not be carried below
zero. To the extent that equity losses are incurred or distributions received
when the Partnership's carrying value of the Local Limited Partnership
investment has been reduced to a zero balance, the losses will be suspended and
offset against future income, and distributions received will be recorded as
income. For the years ended March 31, 1996, 1995 and 1994, the Partnership did
not recognize $5,122,569, $4,088,341 and $3,851,903, respectively, of equity
losses relating to Local Limited Partnerships whose cumulative equity in losses
and distributions exceeded their total investments.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
2. Significant Accounting Policies (continued)
The Partnership recognizes a decline in the carrying value of its investment in
Local Limited Partnerships when there is evidence of a non-temporary decline in
the recoverable amount of the investment.
The Partnership, as a limited partner in the Local Limited Partnerships, is
subject to risks inherent in the ownership of property which are beyond its
control, such as fluctuations in occupancy rates and operating expenses,
variations in rental schedules, proper maintenance of facilities and continued
eligibility of tax credits. If the cost of operating a property exceeds the
rental income earned thereon, the Partnership may deem it in its best interest
to voluntarily provide funds in order to protect its investment. There is the
possibility that the estimates relating to reserves for non-temporary declines
in the carrying value of investments in Local Limited Partnerships may be
subject to material near term adjustments.
The Managing General Partner has elected to report results of the Local Limited
Partnerships on a 90-day lag basis. Accordingly, the financial information about
the Local Limited Partnerships that is included in the accompanying combined
financial statements is as of December 31, 1995, 1994 and 1993.
On August 26, 1992, an affiliate of the Partnership's Managing General Partner,
BF Harbour View, Inc., became the Local General Partner of 241 Pine Street
Associates, L.P. ("241 Pine Street"), a Local Limited Partnership in which the
Partnership has invested. Since the Local General Partner of 241 Pine Street is
now an affiliate of the Partnership, these combined financial statements include
the detailed financial activity of 241 Pine Street for the years ended December
31, 1993, 1994, and 1995. All significant intercompany balances and transactions
have been eliminated.
On April 2, 1993, an affiliate of the Managing General Partner, BF Willow Lake,
Inc., became the Local General Partner of Willow Lake Partners II, L.P. ("Willow
Lake"). BF Willow Lake, Inc. replaced the previous management agent with Boston
Financial Property Management, an affiliate of the Managing General Partner.
Since the Local General Partner of Willow Lake is now an affiliate of the
Partnership, these combined financial statements include the financial activity
of Willow Lake for the period from April 2, 1993 through December 31, 1993, and
for the years ended December 31, 1994 and 1995. All significant intercompany
balances and transactions have been eliminated.
On October 6, 1993, an affiliate of the Partnership's Managing General Partner,
BF Texas Limited Partnership, became an additional Local General Partner
responsible for all management decisions in thirteen Local Limited Partnerships
(the "Texas Partnerships") in which the Partnership has invested. Since the
Local General Partner of the Texas Partnerships is now an affiliate of the
Partnership, these combined financial statements include the financial activity
of the Texas Partnerships from November 1, 1993 through December 31, 1993 and
for the years ended December 31, 1994 and 1995. All significant intercompany
balances and transactions have been eliminated. However, prior to March 31,
1996, control of certain of these Texas Partnerships were transferred to
unrelated parties, and as such, as of that date, these partnerships were
accounted for on the equity method (see Note 10).
On September 29, 1995, an affiliate of the Managing General Partner, BF Texas
Limited Partnership, became the local General Partner responsible for all
management decisions in The Temple-Kyle L.P. ("The Kyle"). Since the Local
General Partner of The Kyle is now an affiliate of the Partnership, these
combined financial statements include the financial activity of The Kyle from
October 1, 1995 through December 31, 1995. All significant intercompany balances
and transactions have been eliminated.
The Partnership has elected to report the results of 241 Pine Street, Willow
Lake, The Kyle and the Texas Partnerships on a 90-day lag basis, consistent with
the presentation of the financial information of all Local Limited Partnerships.
As used herein, the ("Combined Entities") refers to 241 Pine Street, Willow
Lake, The Kyle and the Texas Partnerships prior to the transfer of control
described above.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
2. Significant Accounting Policies (continued)
Excess investment costs over the underlying net assets acquired have arisen from
acquisition fees paid and expenses reimbursed to an affiliate of the
Partnership. These fees and costs, which are included in the Partnership's
"Investment in Local Limited Partnerships", are being amortized on a
straight-line basis over 35 years.
Cash Equivalents
Cash equivalents consist of short-term money market instruments with maturities
when purchased of ninety days or less and approximate fair value.
Marketable Securities
Marketable securities consist primarily of U.S. Treasury instruments and various
asset-backed investment vehicles. On March 31, 1994, the Partnership adopted
Statement of Financial Accounting Standards Number 115 - Accounting for Certain
Investments in Debt and Equity Securities. In accordance with this statement,
prior period financial statements have not been restated to reflect the change
in accounting principle. Under this statement, the Partnership's marketable
securities are classified as "Available for Sale" securities and reported at
fair value as reported by the brokerage firm at which the securities are held.
All marketable securities have fixed maturities. Realized gains and losses from
the sales of securities are based on the specific identification method.
Unrealized gains and losses are excluded from earnings and reported as a
separate component of partners' equity.
Effect of recently issued Accounting Standard
The Financial Accounting Standards Board has issued Statement of Financial
Accounting Standards No. 121, Accounting for the Impairment of Long-Lived Assets
and for Long-Lived Assets to Be Disposed Of, which is effective for fiscal years
beginning after December 15, 1995. This standard requires that the carrying
values of long-lived assets be reviewed for recoverability. Impairment losses
are recognized when future cash flows or other benefits are less than the
carrying amount of the asset. The Partnership plans to adopt the new standard
for its year ending March 31, 1997, however, it is not expected to have a
significant effect on financial position or results of operations.
Rental Property
Real estate and personal property of the Combined Entities are recorded at the
lower of depreciated cost or net realizable value. Valuation allowances are
established when the carrying value of such assets exceeds their estimated
recoverable amounts. The Combined Entities provide for depreciation using
primarily the straight-line method over their estimated useful lives of 3 to 40
years.
Deferred Fees
Willow Lake's deferred financing fees are amortized over 180 months, the term of
the related debt, using the straight-line method.
Rental Income
Rental income, principally from short-term leases on the Combined Entities'
apartment units, is recognized as income under the accrual method as the rents
become due.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
2. Significant Accounting Policies (continued)
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosures of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Fair Value of Financial Instruments
Statements of Financial Accounting Standards No. 107 ("SFAS No. 107"),
Disclosures About Fair Value of Financial Instruments, requires disclosure for
the fair value of most on- and off-balance sheet financial instruments for which
it is practicable to estimate that value. The scope of SFAS No. 107 excludes
certain financial instruments, such as trade receivables and payables when the
carrying value approximates the fair value and investments accounted for under
the equity method, and all nonfinancial assets, such as real property. Unless
otherwise described, the fair values of the Partnership's assets and liabilities
which qualify as financial instruments under SFAS No. 107 approximate their
carrying amounts in the accompanying balance sheets.
Income Taxes
No provision for income taxes has been made as the liability for such taxes is
the obligation of the partners of the Partnership.
Reclassifications
Certain reclassifications have been made to prior year financial statements to
conform to the current year presentation.
3. Marketable Securities
A summary of marketable securities is as follows:
<TABLE>
<CAPTION>
Gross Gross
Unrealized Unrealized Fair
Cost Gains Losses Value
<S> <C> <C> <C> <C>
Debt securities issued by
the US Treasury $ 39,392 $ -- $ (167) $ 39,225
Mortgage backed securities 56,715 583 -- 57,298
Other debt securities 62,848 -- (404) 62,444
---------- ---------- ---------- ----------
Marketable Securities
at March 31, 1996 $ 158,955 $ 583 $ (571) $ 158,967
========== ========== ========== ==========
Debt securities issued by
the US Treasury $1,540,330 $ -- $ (13,264) $1,527,066
Mortgage backed securities 501,041 2,878 (22,027) 481,892
Other debt securities 194,720 -- (2,732) 191,988
---------- ---------- ---------- ----------
Marketable Securities
at March 31, 1995 $2,236,091 $ 2,878 $ (38,023) $2,200,946
========== ========== ========== ==========
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
3. Marketable Securities (continued)
The contractual maturities at March 31, 1996 are as follows:
<TABLE>
<CAPTION>
Fair
Cost Value
<S> <C> <C>
Due in one to five years $102,240 $101,669
Mortgage backed securities 56,715 57,298
-------- --------
$158,955 $158,967
======== ========
</TABLE>
Actual maturities may differ from contractual maturities because some borrowers
have the right to call or prepay obligations. Proceeds from the sales and
maturities were approximately $3,783,000 and $3,823,000 for the years ended
March 31, 1996 and 1995, respectively. Included in investment income are gross
gains of $24,504 and gross losses of $19,949 which were realized on the sales
during the year ended March 31, 1996 and gross gains of $3,167 and gross losses
of $69,780 which were realized on the sales during the year ended March 31,
1995.
4. Investments in Local Limited Partnerships
The Partnership uses the equity method to account for its limited partner
interests in fifty-nine Local Limited Partnerships (excluding the Combined
Entities) which own and operate multi-family housing complexes, most of which
are government-assisted. The Partnership, as Investor Limited Partner pursuant
to the various Local Limited Partnership Agreements which contain certain
operating and distribution restrictions, has generally acquired a 99% interest
in the profits, losses, tax credits and cash flows from operations of each of
the Local Limited Partnerships, except for Granite Colony Apartments and Harbour
View, where the Partnership's ownership interest is 97%, 49% and 48.96%,
respectively. Upon dissolution, proceeds will be distributed according to each
respective partnership agreement.
<TABLE>
<CAPTION>
The following is a summary of Investments in Local Limited Partnerships,
excluding the Combined Entities, in the years ended March 31:
1996 1995 1994
<S> <C> <C> <C>
Capital contributions to Local Limited Partnerships
and purchase price paid to withdrawing partners
of Local Limited Partnerships $ 69,606,039 $ 70,650,910 $ 70,650,910
Cumulative equity in loss of Local Limited Partnerships (excluding cumulative
unrecognized losses of $16,806,562 $11,683,993, and $7,595,652 at March 31,
1996, 1995 and 1994, respectively) (42,375,049) (37,465,458) (31,646,482)
Cumulative cash distributions received from
Local Limited Partnerships (1,328,471) (974,843) (567,461)
------------ ------------ ------------
Investments in Local Limited Partnerships before adjustment 25,902,519 32,210,609 38,436,967
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 7,154,323 7,154,323 7,154,323
Accumulated amortization of acquisition fees and expenses (1,205,288) (1,035,575) (853,569)
------------ ------------ ------------
Investments in Local Limited Partnerships 31,851,554 38,329,357 44,737,721
Reserve for valuation of investments in
Local Limited Partnerships (1,635,000) (1,635,000) (960,000)
------------ ------------ ------------
$ 30,216,554 $ 36,694,357 $ 43,777,721
============ ============ ============
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
4. Investments in Local Limited Partnerships (continued)
Summarized financial information from the financial statements of all Local
Limited Partnerships accounted for on the equity method (excluding the Combined
Entities beginning on the date of combination) in which the Partnership has
invested is as follows:
Summarized Balance Sheets - December 31,
<TABLE>
<CAPTION>
1995 1994 1993
-------------- ------------- ---------
<S> <C> <C> <C>
Assets:
Investment property, net $193,889,556 $201,412,775 $209,490,192
Other assets, net 14,776,669 14,739,376 17,746,804
Current assets 6,462,299 6,424,091 6,482,361
------------ ------------ ------------
Total assets $215,128,524 $222,576,242 $233,719,357
============ ============ ============
Liabilities and Partners' Equity:
Mortgages payable, net of current portion $164,854,884 $174,825,236 $179,510,721
Other liabilities 14,753,253 16,879,186 16,691,228
Current liabilities (includes current
portion of mortgages payable) 26,612,722 12,135,895 8,296,138
------------ ------------ ------------
Total liabilities 206,220,859 203,840,317 204,498,087
------------ ------------ ------------
Partners' Equity:
Partnership's equity 8,820,206 17,418,308 28,330,302
Other partners' equity 87,459 1,317,617 890,968
------------ ------------ ------------
Total partners' equity 8,907,665 18,735,925 29,221,270
------------ ------------ ------------
Total liabilities and partners' equity $215,128,524 $222,576,242 $233,719,357
============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Summarized Income Statements - For
the year ended December 31,
<S> <C> <C> <C>
Rental and other income $ 32,565,287 $ 31,203,382 $ 30,752,721
------------ ------------ ------------
Expenses:
Operating expenses 18,500,899 17,206,372 17,168,855
Interest expense 16,243,002 15,805,646 14,916,188
Depreciation and amortization 8,593,392 8,707,622 8,915,723
------------ ------------ ------------
Total expenses 43,337,293 41,719,640 41,000,766
------------ ------------ ------------
Net Loss $(10,772,006) $(10,516,258) $(10,248,045)
============ ============ ============
Partnership's share of net loss $ (9,778,580) $ (9,898,740) $ (9,739,469)
============ ============ ============
Other partners' share of net loss $ (993,426) $ (617,518) $ (508,576)
============ ============ ============
</TABLE>
For the years ended March 31, 1996, 1995 and 1994, the Partnership has not
recognized $5,122,569, $4,088,341, and $3,851,903, respectively, of equity in
losses relating to certain Local Limited Partnerships in which cumulative equity
in losses and distributions exceeded its total investments in these Local
Limited Partnerships.
The summarized financial information of the Local Limited Partnerships above
does not include 241 Pine Street for the years ended December 31, 1995, 1994 and
1993. Willow Lake is excluded for the years ended December 31, 1995 and 1994 and
for the period April 2, 1993 through December 31, 1993. The Texas Partnerships
are excluded for the year ended December 31, 1995, 1994 and for the period
November 1, 1993 through December 31,
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
4. Investments in Local Limited Partnerships (continued)
1993 and The Kyle is excluded for the period October 1, 1995 through December
31, 1995. The balance sheets and statements of operations of these Local Limited
Partnerships are combined with the Partnership's financial statements through
the date that these partnerships were controlled (see Note 10). As a result,
this summarized information is not comparable from year to year.
The Partnership's equity as reflected by the Local Limited Partnerships of
$8,820,206 differs from the Partnership's Investments in Local Limited
Partnerships before adjustment of $25,902,519 principally because: the
Partnership has not recognized $16,806,562 of equity losses relating to Local
Limited Partnerships whose cumulative equity in losses exceeded their total
investments; and purchase prices paid to original Limited Partners by the
Partnership have not been reflected in the balance sheets of certain Local
Limited Partnerships.
5. Transactions with Affiliates
In accordance with the Partnership Agreement, the Partnership was required to
pay certain fees to and reimburse expenses of the Managing General Partner and
others in connection with the organization of the Partnership and the offering
of its Limited Partnership Units. As of March 31, 1996, selling commissions and
other issuance expenses aggregating $11,832,395 have been charged directly to
Limited Partners' equity. Total organizational and offering expenses exclusive
of selling commissions did not exceed 5.5% of the Gross Proceeds, and
organizational and offering expenses inclusive of selling commissions did not
exceed 13% of the Gross Proceeds.
In accordance with the Partnership Agreement, the Partnership was required to
pay acquisition fees to and reimburse acquisition expenses of the Managing
General Partner or its affiliates for selecting, evaluating, structuring,
negotiating and closing the Partnership's investments in Local Limited
Partnerships. Acquisition fees total 7.5% of the Gross Proceeds, and acquisition
expenses were estimated to total 2% of the Gross Proceeds. Acquisition fees
totaling $7,500,000 have been paid to an affiliate of the Managing General
Partner for the closing of the Partnership's Local Limited Partnership
Investments. Approximately $1,934,000 of these fees are classified as capital
contributions to Local Limited Partnerships in the summary of Investments in
Local Limited Partnerships in Note 4 to the Combined Financial Statements.
Acquisition expenses totaling $1,587,834 were incurred through March 31, 1996
and have been reimbursed to an affiliate of the Managing General Partner.
In accordance with the Partnership Agreement, 15% of the acquisition fees
payable to an affiliate of the Managing General Partner is the "Deferred
Acquisition Fees". The Deferred Acquisition Fees have been deposited in an
interest bearing account and are paid annually, with interest, at the rate of
10% per year over 10 years. Installments began on the second anniversary of the
Prospectus, November 23, 1990. As of March 31, 1996 and 1995, deferred
acquisition fees payable amounted to $450,000 and $562,506, respectively.
An affiliate of the Managing General Partner currently receives $6,601 (as
adjusted by the CPI factor) per Local Limited Partnership annually as the Asset
Management Fee for administering the affairs of the Partnership. Included in the
Combined Statements of Operations are Asset Management Fees of $447,110,
$435,572 and $424,120, for the years ended March 31, 1996, 1995 and 1994,
respectively. Payables to affiliates of the Managing General Partner relating to
the aforementioned fees and expenses aggregate $690,845 and $243,735 at March
31, 1996 and 1995, respectively.
An affiliate of the Managing General Partner is reimbursed for the actual cost
of the Partnership's operating expenses. Included in general and administrative
expenses for the years ended March 31, 1996, 1995 and 1994, is $182,482,
$155,236 and $145,946, respectively, that the Partnership has paid or will pay
as reimbursement for salaries and benefits.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
5. Transactions with Affiliates (continued)
Boston Financial Property Management ("BFPM"), an affiliate of the Managing
General Partner, currently manages Harbour View, a property in which the
Partnership has invested. The property management fee charged is equal to 5% of
properties' gross revenues. Included in operating expenses in the summarized
income statements in Note 4 to the Combined Financial Statements is $46,915,
$45,845 and $43,656 of fees earned by BFPM during 1995, 1994 and 1993,
respectively.
On April 2, 1993, BFPM became the management agent of Willow Lake. In August of
1993, BFPM became the management agent for the Texas Partnerships. On September
29, 1995, BFPM became the management agent of The Kyle. The property management
fee charged is equal to 5% of the properties' gross revenue. Included in the
Combined Statements of Operations is $70,315, $177,185 and $47,448 of property
management fees charged by BFPM during 1995, 1994 and 1993, respectively.
Payables to affiliates includes $71,113 and $113,008 of property management fees
at December 31, 1995 and 1994, respectively.
During 1995, an affiliate of the Managing General Partner advanced the
Partnership $22,279 to cover operating deficits. A non-interest bearing note was
executed.
6. Rental Property
Real estate and personal property belonging to the Combined Entities are
recorded at cost, the components of which are as follows at December 31:
1995 1994
----------- -----------
Land $ 492,599 $ 529,609
Building and improvements 14,816,483 14,117,676
Equipment 543,316 514,651
----------- -----------
15,852,398 15,161,936
Less accumulated depreciation 3,034,245 2,653,499
----------- -----------
Total $12,818,153 $12,508,437
=========== ===========
7. Mortgage Notes Payable
Willow Lake
The original mortgage note payable consists of a 9.25% per annum note due in
monthly principal and interest installments of $22,878, maturing on February 1,
2005. The original loan is collateralized by a first deed of trust covering all
real and personal property. The loan was also collateralized by an operating
deficit escrow of $58,387 provided by the Local General Partners as security for
the lender in the event of certain defaults under the mortgage loan agreement.
At December 31, 1993 Willow Lake was in default of its principal and interest
payments due under the mortgage agreement, however, the lender and Willow Lake
executed a workout commitment letter in June of 1993 designed to address the
default. On February 17, 1994, the parties closed the final workout agreement.
The terms of the workout agreement which were effective June 1, 1993, include a
reduction in the interest rates payable to 7.25% for the period from June 1,
1993 through May 1, 1995 and a reduction in the interest rates payable to 8.25%
plus 95% of all net cash flows, as defined by the workout agreement, for the
period from June 1, 1995 through May 1, 1996. Thereafter, Willow Lake will
resume payments at the original contract rate of 9.25%. Under the terms of the
workout agreement, the difference in the interest payments at the original
contract rate of 9.25% and the
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
7. Mortgage Notes Payable (continued)
reduced payment rates, required over the term of the workout period shall be
payable upon expiration of the workout period over the remaining term of the
note.
All delinquent amounts under the original mortgage were paid by Willow Lake on
February 17, 1994 upon closing of the final workout agreement. The delinquencies
were paid out of funds released from an escrow deposit of $244,000, which have
been held by an escrow agent pursuant to an operating reserve escrow agreement
requiring deposits be made to fund certain of the obligations of the Local
General Partners under Willow Lake's partnership agreement, including the
payment of operating deficits.
Principal payments required under the above mortgage note which has a balance at
December 31, 1996 and 1995 of $2,764,469 and $2,782,384, respectively, for each
of the next five years are as follows:
Years Ending
December 31,
1996 $19,644
1997 21,540
1998 23,619
1999 25,899
2000 28,399
The terms of the mortgage note and other contract documents require the
establishment of restricted deposits and funded reserves to be held and invested
by the mortgagee. These financial instruments potentially subject Willow Lake to
a concentration of credit risk. Due to the unavailability of similar loans, it
is not practicable to determine the fair value of this note at March 31, 1996.
Texas Partnerships
The Texas Partnerships and RECD, have entered into an Interest Credit and Rental
Assistance Agreement that have stated interest rates ranging from 9.5% to 7.25%
and provide for an effective interest rate on the notes payable to FmHA of 1
percent, plus all rental income over basic rents as determined by the government
(overages) with maturities ranging from 2016 to 2030. All notes are
collateralized by the respective properties. The principal balances of the Texas
Partnerships' mortgages at December 31, 1995 and 1994 in the amount of
$4,228,562 and $6,816,613, respectively, has been included in current
liabilities due to the defaults. Due to the unavailability of similar loans, it
is not practicable to determine the fair value of this note at March 31, 1996.
The Kyle
The original mortgage note payable provided for interest at the NationsBank cost
of funds rate plus 2% through July 1, 1997, then prime plus 1% from July 1, 1997
to maturity in June 2005. Monthly principal and interest payments of $13,800 are
due through July 1, 1997, then $17,600 until maturity in 2005. The original loan
is secured by a Deed of Trust, Assignment, Security Agreement and Financing
Statement covering certain real property. The Kyle experienced financial
difficulties which resulted in a default on its mortgage. The lender placed the
property into involuntary bankruptcy in May 1993, as a protective measure. In
January 1994, a bankruptcy trustee was appointed to oversee the Kyle's affairs
during the bankruptcy proceedings. Affiliates of the Managing General Partner
reached an agreement with the lender on a Joint Disclosure Statement and Plan of
Reorganization. The plan called for the Partnership to purchase the mortgage
from the current lender for $850,000 plus a non-recourse note for $612,693,
collateralized by a letter of credit from the Partnership. This note was repaid
on March 8, 1996. The debt restructure resulted in a $846,088 gain on the
cancellation of the old debt. The Bankruptcy Court approved the
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
7. Mortgage Notes Payable (continued)
Joint Disclosure Statement on July 12, 1995, and confirmed the Plan of
Reorganization on September 13, 1995. The loan closing was held on September 29,
1995. An affiliate of the Managing General Partner is currently working to
refinance the mortgage, subject to approval by the local housing authority. The
current value of this note approximates its fair value.
8. Due to affiliate
Under the terms of 241 Pine Street's development agreement, the Developer agreed
to advance to the property such funds as may be required to pay certain
operating expenses. Any funds so advanced are to be repaid by 241 Pine Street
only in certain circumstances. The amount due to affiliate at December 31, 1995
and 1994 represents the net amount advanced to 241 Pine Street under this
agreement. In connection with these events the Original General Partner was
replaced by an affiliated entity of the Partnership . Therefore, the amount
previously reported as due to developer has been reclassified as a due to
affiliate. Due to the unavailability of similar loans, it is not practicable to
determine the fair value of this note at March 31, 1996.
9. Former general partner advances
Prior to 1995, Willow Lake incurred debt of $662,306 payable to the former
general partners and their affiliates for developer fees, Partnership advances,
and management fees. As a result of the settlement litigation in 1995, Willow
Lake agreed to pay $173,500 and issued two promissory notes in the amount of
$100,000 each. Both notes have an annual interest rate of 6%. Principal and
interest on these notes are due and payable out of cash flow commencing June
1996. If, in the event Willow Lake is unable to make a cash flow payment, the
Partnership has guaranteed one note. The guarantee of the Partnership is an
interest payment of $500 per month. The remaining debt ($288,806) was forgiven.
10. Liquidation of Interests in Local Limited Partnerships
Since June 1993, affiliates of the Managing General Partner have been involved
in intensive workout negotiations with the federal governmental lender to the
Texas Partnerships, the Rural Economic and Community Development Services
(RECDS) (formerly called the Farmers Home Administration of the U.S. Department
of Agriculture, FmHA). Affiliates of the Managing General Partner reached an
agreement with RECDS for a comprehensive workout of the Texas Partnerships. The
workout provided for additional loans and rental assistance from RECDS, a debt
service moratorium through July 1995, and additional equity from the
Partnership.
Completion of the workout agreement proved to be difficult. As a result, the
Managing General Partner has transferred or is in the process of transferring
all of the assets of six of the Texas Partnerships subject to their liabilities
to unaffiliated entities. Glenbrook Apartments' transfer was effective June 6,
1996. Five of the properties (Crown Point, Godley Arms, Sherwood Arms, Quail Run
Apartments, and Lone Oak Apartments) are being transferred to new owners
effective after March 31, 1996. Since the new general partners had assumed the
risks of ownership, including funding operating deficits prior to March 31,
1996, the Partnership's investment in these six partnerships has been changed to
the equity method, effective on the date that control of these partnerships was
assumed by the unaffiliated entities. There is no anticipated loss on the
transfer.
The Managing General Partner of the Partnership has executed an agreement to
sell the general partner interests in the seven remaining Texas Partnerships
(Crestwood Place, Eagle Nest Apartments, Hallet-West Apartments, One Main Place,
Pilot Point Apartments, Shady Shores Apartments and Willowick Apartments) to an
unaffiliated buyer. These properties will be restructured into a new partnership
in which the Partnership will retain a limited partner interest for a period of
time expected to be about twelve months. During this period, investors will
continue to receive tax credits from these properties.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
10. Liquidation of Interests in Local Limited Partnerships (continued)
For tax purposes, these events will result in both Section 1231 Gain and
Cancellation of Indebtedness income. In addition, the transfer of ownership will
result in nominal recapture of tax credits, since the Texas Partnerships
represent only 2% of the Partnership's tax credits.
11. Extraordinary Item
For the year ended March 31, 1996, the Partnership recognized $1,297,618 of
cancellation of indebtedness income. This is attributed to three combining
entities. The gain on Willow Lake was the result of a settlement with the
original general partner. The settlement involved a cash payment, assumption of
two notes and relief of the remaining debt to the former general partner as
discussed in Note 9. The gains on both The Kyle (Note 7) and Lakeway Colony were
the result of debt restructuring.
12. Contingency
Lone Oak Housing Associates, Ltd. (one of the Texas Partnerships which is being
transferred), is the defendant in a lawsuit in which the plaintiff has alleged
negligence and deceptive Trade Act violations. The plaintiff's settlement demand
is $500,000. In the opinion of management, this case will not have a material
adverse effect on Lone Oak Housing Associates, Ltd. or the Partnership.
13. Federal Income Taxes
A reconciliation of the loss reported in the Combined Statements of Operations
for the years ended March 31, 1996, 1995 and 1994 to the loss reported for
federal income tax purposes is as follows:
<TABLE>
<CAPTION>
1996 1995 1994
-------------- ------------- ---------
<S> <C> <C> <C>
Net loss per Combined Statement of Operations $ (5,440,551) $ (9,002,539) $ (7,684,561)
Provision for valuation of Investments in
Local Limited Partnerships not taxable or
deductible for tax purposes -- 675,000 421,815
Operating expenses not deductible in
current year for tax purposes 452,028 132,652 105,319
Other loss recognized for tax purposes but
not recognized for book purposes (106,755) -- --
Operating expenses paid in current year but
expensed for financial reporting purposes
in prior year -- (105,319) --
Amortization of acquisition fees and expenses
not deductible for tax purposes 168,519 182,006 192,187
Adjustment to reflect March 31 fiscal year-
end to December 31 tax year-end 27,286 263,928 19,217
Adjustment for equity in loss of Local Limited
Partnerships for financial reporting purposes
under equity in loss for tax purposes (1,091,105) (242,083) (1,064,353)
Adjustment for equity in loss of Local
Limited Partnerships not recognized for
financial reporting purposes (5,122,569) (4,088,341) (3,851,903)
Cash distribution included in loss for financial
reporting purposes (11,338) (6,057) --
------------ ------------ ------------
Net loss for federal income tax purposes $(11,124,485) $(12,190,753) $(11,862,279)
============ ============ ============
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
NOTES TO THE COMBINED FINANCIAL STATEMENTS (continued)
13. Federal Income Taxes (continued)
The differences of the assets and liabilities of the Partnership for financial
reporting purposes and tax reporting purposes for the year ended March 31, 1996
are as follows:
<TABLE>
<CAPTION>
Financial Tax
Reporting Reporting
Purposes Purposes Differences
<S> <C> <C> <C>
Investments in Local Limited Partnerships $ 30,216,554 $ 16,690,093 $ 13,526,461
Other assets 14,155,068 15,229,455 (1,074,387)
Liabilities 9,474,777 1,197,076 8,277,701
</TABLE>
The differences in the assets and liabilities of the Partnership for financial
reporting purposes are primarily attributable to i) for financial reporting
purposes the Partnership combines the financial statements of sixteen Local
Limited Partnerships with its financial statements; for tax purposes, these
entities are carried on the equity method; ii) the cumulative equity in loss
from Local Limited Partnerships, including the Combined Entities, for tax
reporting purposes is approximately $20,334,000 greater than for financial
reporting purposes, including approximately $16,807,000 of losses the
Partnership has not recognized relating to seventeen Local Limited Partnerships
whose cumulative equity in losses exceeded their total investments; iii) the
Partnership has provided a provision for valuation of $1,635,000 against three
of its investments in Local Limited Partnerships for financial reporting
purposes; and iv) organizational and offering costs of approximately $11,832,000
that have been capitalized for tax reporting purposes, are charged to Limited
Partners' equity for financial reporting purposes.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
14. Supplemental Combining Schedules
<TABLE>
<CAPTION>
Balance Sheets
Boston Financial
Qualified Housing
Tax Credits Combined Eliminations Combined
L.P. III (A) Entities (B) (A) (A)
<S> <C> <C> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 94,632 $ 173,408 $ -- $ 268,040
Accounts receivable, net 481,483 41,863 (482,589) 40,757
Interest receivable 740 -- -- 740
Notes receivable 1,441,067 -- (1,441,067) --
Prepaid expenses 14,155 21,775 -- 35,930
Tenant security deposits -- 67,011 -- 67,011
Other current assets -- 53,656 -- 53,656
----------- ----------- ----------- -----------
Total current assets 2,032,077 357,713 (1,923,656) 466,134
Investments in Local Limited
Partnerships, net of reserve
for valuation 33,246,690 -- (3,030,136) 30,216,554
Marketable securities, at fair value 158,967 -- -- 158,967
Replacement reserves -- 168,335 -- 168,335
Rental property at cost, net of
accumulated depreciation -- 12,818,153 -- 12,818,153
Deferred acquisition fees escrow 450,000 -- -- 450,000
Deferred expenses, net -- 93,479 -- 93,479
----------- ----------- ----------- -----------
Total assets $35,887,734 $13,437,680 $(4,953,792) $44,371,622
=========== =========== =========== ===========
Liabilities and Partners' Equity
Current liabilities:
Accounts payable to affiliates $ 711,702 $ 526,131 $ (482,589) $ 755,244
Accounts payable and accrued
expenses 148,860 322,468 -- 471,328
Current portion of mortgage
notes payable -- 4,302,369 (41,093) 4,261,276
Interest payable -- 186,550 -- 186,550
Notes payable, affiliate 22,279 -- -- 22,279
Security deposits payable -- 60,229 -- 60,229
----------- ----------- ----------- -----------
Total current liabilities 882,841 5,397,747 (523,682) 5,756,906
Due to affiliate -- 323,046 -- 323,046
Deferred acquisition fees payable 450,000 -- -- 450,000
General partner advances -- 200,000 -- 200,000
Mortgage notes payable -- 4,144,799 (1,399,974) 2,744,825
----------- ----------- ----------- -----------
Total liabilities 1,332,841 10,065,592 (1,923,656) 9,474,777
----------- ----------- ----------- -----------
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
14. Supplemental Combining Schedules (continued)
<TABLE>
<CAPTION>
Balance Sheets (continued)
Boston Financial
Qualified Housing
Tax Credits Combined Eliminations Combined
L.P. III (A) Entities (B) (A) (A)
<S> <C> <C> <C> <C>
Minority interest in Local
Limited Partnerships - - 341,952 341,952
------------ ------------- ------------ ------------
General, Initial and Investor Limited
Partners' Equity 34,554,881 3,372,088 (3,372,088) 34,554,881
Net unrealized gains on marketable
securities 12 - - 12
------------ ------------- ------------ ------------
Total Partners' Equity 34,554,893 3,372,088 (3,372,088) 34,554,893
------------ ------------- ------------ ------------
Total Liabilities and
Partners' Equity $ 35,887,734 $ 13,437,680 $ (4,953,792) $ 44,371,622
============ ============= ============= ============
</TABLE>
(A) As of March 31, 1996.
(B) As of December 31, 1995. See Note 2
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
14. Supplemental Combining Schedules (continued)
<TABLE>
<CAPTION>
Statements of Operations
Boston Financial
Qualified Housing
Tax Credits Combined Eliminations Combined
L.P. III (A) Entities (B) (A) (A)
<S> <C> <C> <C> <C>
Revenue:
Rental $ - $ 2,143,530 $ - $ 2,143,530
Investment 78,706 7,152 - 85,858
Other 77,315 73,591 - 150,906
------------ ----------- ---------- ------------
Total Revenue 156,021 2,224,273 - 2,380,294
------------ ----------- ---------- ------------
Expenses:
Asset management fees 447,110 - - 447,110
General and administrative 841,989 - - 841,989
Bad debt expense 54,351 - - 54,351
Property management fees,
related party - 84,715 - 84,715
Rental operations, exclusive
of depreciation - 1,488,464 - 1,488,464
Interest 23,221 731,259 - 754,480
Depreciation - 573,735 - 573,735
Amortization 168,519 10,484 - 179,003
------------ ----------- ---------- ------------
Total Expenses 1,535,190 2,888,657 - 4,423,847
------------ ----------- ---------- ------------
Loss before equity in losses of Local
Limited Partnerships and
extraordinary item (1,379,169) (664,384) - (2,043,553)
Equity in losses of Local Limited
Partnerships (4,061,382) - (608,681) (4,670,063)
Minority interest in income of Local
Limited Partnerships - - (6,553) (6,553)
------------ ----------- ---------- ------------
Net loss before extraordinary item (5,440,551) (664,384) (615,234) (6,720,169)
Extraordinary gain on
forgiveness of indebtedness - 1,279,618 - 1,279,618
------------ ----------- ---------- ------------
Net Income (Loss) $ (5,440,551) $ 615,234 $ (615,234) $ (5,440,551)
============ =========== ========== ============
</TABLE>
(A) For the year ended March 31, 1996.
(B) For the year ended December 31, 1995- see Note 2.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
14. Supplemental Combining Schedules (continued)
<TABLE>
<CAPTION>
Statements of Operations (continued)
Boston Financial
Qualified Housing
Tax Credits Combined Eliminations Combined
L.P. III (A) Entities (B) (A) (A)
<S> <C> <C> <C> <C>
Extraordinary gain on
forgiveness of indebtedness - 1,279,618 - 1,279,618
------------ ----------- ---------- ------------
Net Income (Loss) $ (5,440,551) $ 615,234 $ (615,234) $ (5,440,551)
============ =========== ========== ============
(A) For the year ended March 31, 1996.
(B) For the year ended December 31, 1995- see Note 2.
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
14. Supplemental Combining Schedules (continued)
<TABLE>
<CAPTION>
Statements of Cash Flows
Boston Financial
Qualified Housing
Tax Credits Combined Eliminations Combined
L.P. III (A) Entities (B) (A) (A)
<S> <C> <C> <C> <C>
Net income (loss) $ (5,440,551) $ 615,234 $ (615,234) $ (5,440,551)
Adjustments to reconcile net income
(loss) to net cash provided by
(used for) operating activities:
Equity in losses of Local
Limited Partnerships 4,061,382 - 608,681 4,670,063
Bad debt expense 54,351 - - 54,351
Cancellation of indebtedness
income - (1,279,618) - (1,279,618)
Cash distribution included in
net loss (13,456) - - (13,456)
Replacement reserves - (66,521) - (66,521)
Amortization and depreciation 168,519 584,219 - 752,738
Gain on sale of marketable securities (4,555) - - (4,555)
Minority interest in income
of Local Limited Partnerships - - 6,553 6,553
Increase (decrease) in cash
arising from changes in operating
assets and liabilities:
Other current assets 10,859 93,794 - 104,653
Accounts payable to affiliates 467,967 (59,364) - 408,603
Accounts payable and accrued
expenses 7,073 369,407 - 376,480
-------------- ------------- ------------ -------------
Net cash provided by (used for)
operating activities (688,411) 257,151 - (431,260)
-------------- ------------- ------------ -------------
Cash flows from investing activities:
Purchases of marketable securities (1,700,979) - - (1,700,979)
Proceeds from sales and maturities
of marketable securities 3,782,670 - - 3,782,670
Cash distributions received from
Local Limited Partnerships 345,051 - - 345,051
Capital contributions paid to Local
Limited Partnerships (27,576) - 27,576 -
Cash received upon assumption of
General Partners interest in the
Combined Entity - 43,646 - 43,646
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
14. Supplemental Combining Schedules (continued)
<TABLE>
<CAPTION>
Statements of Cash Flows (continued)
Boston Financial
Qualified Housing
Tax Credits Combined Eliminations Combined
L.P. III (A) Entities (B) (A) (A)
<S> <C> <C> <C> <C>
Decrease in deferred acquisition fee
escrow 112,506 - - 112,506
Payment of deferred acquisition fee (112,506) - - (112,506)
Purchase of fixed assets - (245,961) - (245,961)
-------------- ------------- ------------ -------------
Net cash provided by (used for)
investing activities 2,399,166 (202,315) 27,576 2,224,427
-------------- ------------- ------------ -------------
Cash flows from financing activities:
Advances from general partner - 50,397 - 50,397
Payments to general partner (173,500) - (173,500)
Repayment of mortgage notes
payable - (166,970) 8,566 (158,404)
Advances from affiliate 22,279 - - 22,279
Advances from (payments to)
developer (272,700) 286,456 - 13,756
Capital contributions received - 42,098 (27,576) 14,522
Repayment of Local Limited
Partnership's mortgage (1,462,693) - - (1,462,693)
Repayment of notes
receivable, affiliate 21,626 - (8,566) 13,060
-------------- ------------- ------------ -------------
Net cash provided by (used for)
financing activities (1,691,488) 38,481 (27,576) (1,680,583)
-------------- ------------- ------------ -------------
Net increase in
cash and cash equivalents 19,267 93,317 - 112,584
Cash and cash equivalents,
beginning 75,365 80,091 - 155,456
-------------- ------------- ------------- --------------
Cash and cash equivalents,
ending $ 94,632 $ 173,408 $ - $ 268,040
============== ============= ============= ==============
(A) For the year ended March 31, 1996.
(B) For the year ended December 31, 1995- see Note 2.
</TABLE>
<PAGE>
Boston Financial Qualified Housing Tax Credits L.P. III
Schedule III - Real Estate and Accumulated Depreciation
of Property owned by Local Limited Partnerships in
which Registrant has invested at March 31, 1996
<TABLE>
<CAPTION>
COST OF INTEREST NET IMPROVEMENTS
NUMBER TOTAL AT ACQUISTION DATE CAPTIALIZED GROSS AMOUNT AT WHICH CARRIED AT MARCH 31, 1996
--------------------------- ----------------------------------------------
OF ENCUM- BUILDINGS AND SUBSEQUENT TO LAND AND BUIILDING AND
DESCRIPTION UNITS BRANCES * LAND IMPROVEMENTS ACQUISITON IMPROVEMENTS IMPROVEMENTS TOTAL
- ------------------------------------------------------------------------------------------------------------------------------------
Multi-family residential property:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Harbour View 122 9,549,824 $406,704 $11,193,508 $522,754 $ 406,704 11,716,262 12,122,966
Staten Island, NY
Willow Lake Apts** 132 2,764,469 100,000 5,143,801 (100,041) 114,862 5,028,898 5,143,760
Kansas City, MO
West Dade I 122 4,103,757 626,698 4,572,095 597,462 626,698 5,169,557 5,796,255
Miami, FL
West Dade II 209 8,408,834 1,213,707 8,416,939 2,527,205 1,118,822 11,039,029 12,157,851
Miami, FL
Westwood Manor 144 3,424,812 191,987 4,091,974 86,253 191,987 4,178,227 4,370,214
Flint, MI
Rolling Hills 150 3,107,682 10,000 6,791,690 26,155 57,315 6,770,530 6,827,845
Dayton, OH
Regency Square 140 3,301,775 150,000 6,777,207 31,232 185,201 6,773,238 6,958,439
Dayton, OH
Buffalo Shoreline 142 6,178,090 153,588 5,106,986 752,878 153,588 5,859,864 6,013,452
Buffalo, NY
Buffalo Waterfront 472 22,121,373 202,452 17,775,357 2,315,401 202,452 20,090,758 20,293,210
Buffalo, NY
Fox Run 150 4,144,226 452,610 5,039,028 86,637 484,554 5,093,721 5,578,275
Victoria, TX
Boulevard II 19 729,029 0 965,670 384,682 15,600 1,334,752 1,350,352
Chicago, IL
The Colony 300 8,678,335 1,298,638 8,814,688 96,226 745,200 9,464,352 10,209,552
Columbia, SC
Boulevard IIA (1) 42 1,603,351 11,786 2,467,433 621,660 34,400 3,066,479 3,100,879
Chicago, IL
Ashley Place (1) 96 2,841,522 10 3,951,009 860,765 10 4,811,774 4,811,784
Orlando, FL
Admiral Court 46 2,383,364 60,637 4,751,321 314,692 60,637 5,066,013 5,126,650
Philadelphia, PA
Syracuse Apartments 8 241,823 17,669 289,821 0 17,669 289,821 307,490
Syracuse, KS
El Jardin 236 7,000,257 742,000 8,480,839 200,862 742,000 8,681,701 9,423,701
Davie, FL
Elmwood Delmar 95 3,153,787 67,097 4,111,291 46,417 74,221 4,150,584 4,224,805
Aurora, CO
Crestwood Place** 24 380,272 5,000 458,287 24,091 5,000 482,378 487,378
Bridgeport, TX
Willowick Apts** 60 1,173,756 10,956 1,455,934 142,902 10,956 1,598,836 1,609,792
Gainesville, TX
Ellsworth Apartments 12 330,049 18,000 390,835 0 18,000 390,835 408,835
Ellsworth, KS
Satanta Apartments 8 224,573 23,593 264,336 0 7,500 280,429 287,929
Satanta, KS
Rossville Apartments 10 280,550 23,950 259,486 68,583 23,950 328,069 352,019
Rossville, KS
Columbia Town House 56 1,401,445 167,000 885,042 1,073,710 168,303 1,957,449 2,125,752
Burlington, IA
Quarter Mill 266 7,215,496 1,139,508 2,530,458 12,658,555 5,551,917 10,776,604 16,328,521
Richmond, VA
One Main Place** 24 371,846 19,458 414,803 44,690 19,458 459,493 478,951
Little Elm, TX
Pilot Point** 40 560,757 24,805 575,107 111,241 24,805 686,348 711,153
Pilot Point, TX
Sherwood Arms (a) 0 0 32,439 658,300 (600,739) 0 0 0
Keene, TX
Crown Point (a) 0 0 13,642 371,717 (385,359) 0 0 0
Venus, TX
Godley Arms (a) 0 0 26,156 250,345 (276,501) 0 0 0
Godley, TX
South Holyoke 48 2,791,972 105,250 4,095,471 (160,695) 105,250 3,934,776 4,040,026
South Holyoke, MA
Walker Woods 51 2,377,870 159,104 2,954,196 1,008,619 159,104 3,962,815 4,121,919
Dover, DE
Shady Shores** 40 506,396 30,778 723,316 50,549 30,778 773,865 804,643
Lake Dallas, TX
Eagle Wood Apts. 40 1,118,719 0 1,382,855 52,491 45,510 1,389,836 1,435,346
Covington, TN
Georgetown II 50 1,757,575 0 1,079,160 1,726,090 0 2,805,250 2,805,250
Georgetown, DE
Blue Mountain Apts. 217 9,992,836 618,994 14,308,698 154,034 618,994 14,462,732 15,081,726
Boston, MA
Garden Plain 12 304,443 15,849 362,584 54 15,932 362,555 378,487
Garden Plain, KS
Fulton Apartments 24 803,264 0 985,000 35,000 28,000 992,000 1,020,000
Fulton, KY
Lone Oak (a) 0 0 34,437 803,419 (837,856) 0 0 0
Graham, TX
Hallett-West Apts.** 24 298,696 18,500 322,596 42,930 18,500 365,526 384,026
Hallettsville, TX
Glenbrook (a) 0 0 13,636 310,294 (323,930) 0 0 0
St. Jo, TX
Eagles Nest** 90 936,849 49,340 1,153,573 90,462 49,340 1,244,035 1,293,375
Decatur, TX
Billings Family 12 284,638 14,032 327,478 2,856 14,070 330,296 344,366
Billings, MO
Brownsville 28 789,717 31,000 980,353 3,680 31,000 984,033 1,015,033
Brownsville, TN
Wayne Senior 15 431,020 30,949 494,381 (1,229) 31,281 492,820 524,101
Wayne, NE
Longview 14 400,350 29,710 461,233 0 29,710 461,233 490,943
Humboldt, KS
Horseshoe Bend 24 653,056 21,780 816,289 0 21,780 816,289 838,069
Horseshoe Bend, AR
Briarwood II 32 1,116,416 105,000 1,331,661 4,587 105,000 1,336,248 1,441,248
Lake Havasua, AZ
Quail Run (a) 0 0 8,158 458,464 (466,622) 0 0 0
Iowa Park, TX
Smithville 24 549,441 28,840 585,285 957 28,840 586,242 615,082
Smithville, MO
Aurora East 125 4,069,410 308,324 4,402,417 141,465 308,324 4,543,882 4,852,206
Denver, CO
Elver Park II 56 1,712,115 348,138 2,509,630 15,617 348,138 2,525,247 2,873,385
Madison, WI
Elver Park III 48 1,485,336 135,465 582,652 1,804,381 217,507 2,304,991 2,522,498
Madison, WI
Tucson Trails 48 1,447,785 138,240 588,915 1,795,470 193,866 2,328,759 2,522,625
Madison, WI
Tucson Trails II 48 1,454,623 138,240 281,704 2,104,333 194,388 2,329,889 2,524,277
Madison, WI
Pleasant Plaza 125 15,633,537 303,775 15,691,150 52,295 303,775 15,743,445 16,047,220
Malden, MA
241 Pine Street** 50 0 130,900 2,564,381 (1,451,679) 130,900 1,112,702 1,243,602
Manchester, NH
Oak Grove 24 564,122 35,000 169,708 508,464 62,586 650,586 713,172
Oak Grove, MO
Wood Creek 104 3,456,957 475,000 4,203,585 1,398,056 842,496 5,234,145 6,076,641
Calcium, NY
Brekenridge Creste 164 4,864,270 845,000 811,111 7,479,926 790,200 8,345,837 9,136,037
Duluth, GA
Bolivar Apartments 20 469,010 30,000 190,970 360,983 30,000 551,953 581,953
Boliver, MO
Lexington Civic 24 453,662 15,000 650,260 (72,375) 15,000 577,885 592,885
Lexington, TN
Riverfront Apartments 200 7,945,975 140,333 9,845,838 468,237 140,333 10,314,075 10,454,408
Sunbury, PA
Susquehanna View 201 9,222,525 373,702 10,743,951 564,403 373,702 11,308,354 11,682,056
Camp Hill, PA
Westgate Associated 20 641,414 45,500 750,700 0 20,000 776,200 796,200
Perryville, AR
Altheimer Associates 20 600,829 10,000 725,429 2,346 10,000 727,775 737,775
Altheirmer, AR
The Temple-Kyle ** 64 1,454,127 93,564 931,860 2,670,294 88,000 3,607,718 3,695,718
Temple, TX
Diversey Square 48 2,581,192 50,000 3,253,496 50,398 50,000 3,303,894 3,353,894
Chicago, IL
Poplar Village 36 1,207,297 60,000 1,427,725 0 60,000 1,427,725 1,487,725
Cumberland, KY
------------------------------------------------------------------------------------------------------
190,052,498 12,201,628 211,517,095 41,507,004 16,574,113 248,561,614 265,135,727
Less: Combined Entities ** (8,447,168) (611,769) (16,596,197) 1,265,568 (492,599) (15,359,799)(15,852,398)
======================================================================================================
181,605,330 $11,589,859 $194,920,898 $42,772,572 $16,081,514 $233,201,815 $249,283,329
======================================================================================================
</TABLE>
<TABLE>
<CAPTION>
LIFE ON WHICH
DEPRECTIATION
ACCUMULATED DATE Date IS COMPUTED DATE
DEPRECIATON BUILT Acquired (YEARS) ACQUIRED
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Multi-family residential property:
Harbour View $ 2,175,625 1990 09/01/89 5-40 09/29/89
Staten Island, NY
Willow Lake Apts** 1,283,975 1989 12/20/89 5-40 12/20/89
Kansas City, MO
West Dade I 1,361,105 Various 12/31/88 5-40 12/31/88
Miami, FL
West Dade II 2,735,022 Various 12/31/88 5-40 12/31/88
Miami, FL
Westwood Manor 1,290,626 Various 02/21/89 5-40 02/21/89
Flint, MI
Rolling Hills 1,797,835 1969 3/13/89 5-40 03/13/89
Dayton, OH
Regency Square 1,737,304 1963 3/13/89 5-40 03/13/89
Dayton, OH
Buffalo Shoreline 1,663,971 Various 04/28/89 5-40 04/28/89
Buffalo, NY
Buffalo Waterfront 5,714,795 Various 04/27/89 5-40 04/28/89
Buffalo, NY
Fox Run 1,180,986 1975 04/10/89 5-40 04/07/89
Victoria, TX
Boulevard II 286,366 1920 4/4/89 5-40 04/04/89
Chicago, IL
The Colony 3,333,384 1950 05/17/89 5-40 05/19/89
Columbia, SC
Boulevard IIA (1) 610,826 Various 4/4/89 5-40 04/04/89
Chicago, IL
Ashley Place (1) 1,121,727 1989 6/23/89 5-40 06/23/89
Orlando, FL
Admiral Court 776,789 1920 3/31/89 5-40 06/07/89
Philadelphia, PA
Syracuse Apartments 79,805 1989 06/01/89 5-40 06/30/89
Syracuse, KS
El Jardin 2,017,172 1973 6/15/89 5-40 06/14/89
Davie, FL
Elmwood Delmar 949,985 1957 06/05/89 5-40 05/16/89
Aurora, CO
Crestwood Place** 80,990 1975 06/05/89 5-40 06/05/89
Bridgeport, TX
Willowick Apts** 261,605 1975 06/15/89 5-40 06/30/89
Gainesville, TX
Ellsworth Apartments 95,378 1975 07/01/89 5-40 07/19/89
Ellsworth, KS
Satanta Apartments 70,206 1989 07/28/89 5-40 07/28/89
Satanta, KS
Rossville Apartments 75,971 1990 07/01/89 5-40 07/28/89
Rossville, KS
Columbia Town House 477,904 1990 08/01/89 5-40 07/28/89
Burlington, IA
Quarter Mill 3,031,919 1990 07/01/89 5-40 08/02/89
Richmond, VA
One Main Place** 78,424 1989 08/22/89 5-40 08/22/89
Little Elm, TX
Pilot Point** 128,772 1989 08/25/89 5-40 08/22/89
Pilot Point, TX
Sherwood Arms (a) 0 1989 08/22/89 N/A 08/22/89
Keene, TX
Crown Point (a) 0 1989 08/25/89 N/A 08/22/89
Venus, TX
Godley Arms (a) 0 1989 08/21/89 N/A 08/25/89
Godley, TX
South Holyoke 735,410 1988 08/29/89 5-40 08/29/89
South Holyoke, MA
Walker Woods 562,276 1990 08/01/89 5-40 08/30/89
Dover, DE
Shady Shores** 130,965 1989 08/29/89 5-40 08/30/89
Lake Dallas, TX
Eagle Wood Apts. 297,648 1990 09/06/89 5-40 09/06/89
Covington, TN
Georgetown II 447,302 1990 08/28/89 5-40 09/28/89
Georgetown, DE
Blue Mountain Apts. 3,504,147 Various 09/29/89 5-40 09/29/89
Boston, MA
Garden Plain 97,176 1990 10/01/89 5-40 08/09/89
Garden Plain, KS
Fulton Apartments 209,505 1990 10/05/89 5-40 10/05/89
Fulton, KY
Lone Oak (a) 0 1990 10/10/89 N/A 10/06/89
Graham, TX
Hallett-West Apts.** 59,675 1989 10/13/89 5-40 11/20/89
Hallettsville, TX
Glenbrook (a) 0 1989 10/02/89 N/A 10/06/89
St. Jo, TX
Eagles Nest** 195,700 1989 10/02/89 5-40 10/06/89
Decatur, TX
Billings Family 84,233 1989 10/01/89 5-40 08/09/89
Billings, MO
Brownsville 308,086 1989 10/01/89 5-40 08/09/89
Brownsville, TN
Wayne Senior 117,290 1988 10/01/89 5-40 08/09/89
Wayne, NE
Longview 99,249 1988 10/01/89 5-40 10/13/89
Humboldt, KS
Horseshoe Bend 256,699 1988 10/01/89 5-40 08/09/89
Horseshoe Bend, AR
Briarwood II 391,846 1989 10/01/89 5-40 10/04/89
Lake Havasua, AZ
Quail Run (a) 0 1989 10/10/89 N/A 10/06/89
Iowa Park, TX
Smithville 119,672 1987 10/01/89 5-40 08/09/89
Smithville, MO
Aurora East 1,822,062 1972 10/31/89 5-40 11/06/89
Denver, CO
Elver Park II 531,659 1989 11/10/89 5-40 11/09/89
Madison, WI
Elver Park III 406,317 1990 11/10/89 5-40 11/09/89
Madison, WI
Tucson Trails 408,682 1990 11/22/89 5-40 11/22/89
Madison, WI
Tucson Trails II 396,334 1990 11/22/89 5-40 11/23/89
Madison, WI
Pleasant Plaza 3,816,214 1989 11/01/89 5-40 12/01/89
Malden, MA
241 Pine Street** 430,206 1988 11/30/89 5-40 12/04/89
Manchester, NH
Oak Grove 104,858 1991 11/01/89 5-40 11/24/89
Oak Grove, MO
Wood Creek 1,351,559 1990 12/15/89 5-40 12/15/89
Calcium, NY
Brekenridge Creste 1,582,703 1990 12/19/89 5-40 12/19/89
Duluth, GA
Bolivar Apartments 119,394 1990 12/01/89 5-40 12/15/90
Boliver, MO
Lexington Civic 148,263 1990 02/26/90 5-40 12/29/90
Lexington, TN
Riverfront Apartments 1,694,034 1990 12/27/89 5-40 12/26/89
Sunbury, PA
Susquehanna View 1,926,500 1988 12/27/89 5-40 12/26/89
Camp Hill, PA
Westgate Associated 163,448 1990 04/01/90 5-40 05/01/90
Perryville, AR
Altheimer Associates 153,146 1990 04/01/90 5-40 04/18/90
Altheirmer, AR
The Temple-Kyle ** 383,933 1991 06/12/90 5-40 06/12/90
Temple, TX
Diversey Square 728,726 1990 12/01/90 5-40 12/01/90
Chicago, IL
Poplar Village 224,634 1991 12/01/90 5-40 12/30/90
Cumberland, KY
------------
58,428,018
Less: Combined Entities ** (3,034,245)
============
$55,393,773
============
</TABLE>
(1) The aggregate cost for Federal Income Tax purposes is approximately
$265,135,727.
* Mortgage notes payable generally represent non-recourse financing of
low-income housing projects payable with terms of up to 40 years with
interest payable at rates ranging from 9.75% to 12%. The Partnership has
not guaranteed any of these mortgage notes payable.
(a) As of March 31, 1996, the Partnership has transferrred or is in the process
of transferring all of the assets of six of the Texas Partnerships subject to
their liabilities to unaffiliated entities.
<PAGE>
<TABLE>
<CAPTION>
Summary of property owned and accumulated depreciation:
Propety Owned December 31, 1995 Accumulated Depreciation December 31, 1995
---------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Balance at beginning of period $248,571,597 Balance at beginning of period$47,158,822
Additions during period: Additions during period:
Acquisitions through foreclosure $0 Eliminations - 1994 2,653,279
Other acquisitions 77,498 Eliminations - 1995 (3,034,245)
Improvements etc. 4,576,477 Eliminations -
Properties disposed of (549,867)
--------------
4,653,975 Depreciation 9,165,784
--------------
Deductions during period: Balance at close of period $55,393,773
==============
Cost of real estate and fixed assets (1,408)
Eliminations - 1994 Combined ent 15,161,716
Eliminations - Combined Entitie (15,852,398)
Fixed assets of properties dispo (3,250,153)
-------------
(3,942,243)
-------------------
Balance at close of period $249,283,329
===================
Propety Owned December 31, 1994 Accumulated Depreciation December 31, 1994
---------------------------------------------------------------------------------------------------------------
Balance at beginning of period $248,131,413 Balance at beginning of period $38,641,221
Additions during period: Additions during period:
Acquisitions through foreclosure $0 Eliminations - 1993 Combined Ent 2,163,088
Other acquisitions 139,171 Eliminations - Combined Ent (2,653,279)
Improvements etc. 544,589 epreciation 9,007,792
-------------- --------------
683,760 Balance at close of period $47,158,822
==============
Deductions during period:
Cost of real estate and fixed asset (81,907)
Eliminations - 1993 Combined ent 15,000,047
Eliminations - Combined Entitie (15,161,716)
Reclassification to intangible assets 0
-------- ------
(243,576)
-------------------
Balance at close of period $248,571,597
===================
Property Owned December 31, 1993 Accumulated Depreciation December 31, 1993
---------------------------------------------------------------------------------------------------------------
Balance at beginning of period $265,188,733 Balance at beginning of period $31,694,393
Additions during period: Additions during period:
Acquisitions through foreclosure $0 Eliminations - 1992 241 Pine 307,225
Other acquisitions 151,561 Eliminations - Combined ent (2,163,088)
Improvements etc. 249,824 Depreciation 8,802,691
-------------- -------------
401,385 Balance at close of period $38,641,221
=============
Deductions during period:
Cost of real estate sold 0
Eliminations - 1992 241 Pine 1,237,302
</TABLE>
<PAGE>
Annual Report on Form 10-K
For The Year Ended March 31, 1996
Audited Financial Statements of
Local Limited Partnerships
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. III
(A Limited Partnership)
Annual Report on form 10-K
For The Year Ended March 31, 1996
Reports of Independent Auditors
<PAGE>
[Letterhead]
FRIDUSS, LUKEE, SCHIFF & CO., P.C.
CERTIFIED PUBLIC ACCOUNTANTS
4747 WEST PETERSON AVENUE
CHICAGO, ILLINIOS 60646
(312) 777-4445
FAX (312) 777-6557
INDEPENDENT AUDITOR'S REPORT
To the Partners of HUD Field Office Director
DIVERSEY SQUARE ASSOCIATES II Chicago, Illinois
Chicago, Illinois
We have audited the accompanying balance sheets of DIVERSEY SQUARE ASSOCIATES II
(An Illinois Limited Partnership), Project No. 071-35573, as of December 31,
1995 and 1994 and the related statements of profit and loss, partners' equity
and cash flows for the years then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audit in accordance with generally accepted auditing standards
and generally accepted Government Auditing, issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audits
to obtain reasonable assurance about whether the financial statements are free
of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provided a reasonable basis
for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of DIVERSEY SQUARE ASSOCIATES II as of
December 31, 1995 and 1994, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.
In accordance with Government Auditing Standards, we have also issued a report
dated February 1, 1996 on our consideration of DIVERSEY SQUARE ASSOCIATES II's
internal control structure and a report dated February 1, 1996 on its compliance
with laws and regulations.
The supporting data in this report shown on pages 19 through 24 is
presented for purposes of additional analysis and is not a required part of the
basic financial statements. Such information has been subjected to the same
auditing procedures applied in the audit of the basic financial statements, and
in our opinion, are presented fairly in all material respects in relation to the
basic financial statements taken as a whole.
/s/FRIDUSS, LUKEE, SCHIFF & CO., P.C.
FRIDUSS, LUKEE, SCHIFF & CO., P.C. 36-3087225
Certified Public Accountants Mr. Bruce C. Schiff
(312) 777-4445
Chicago, Illinois
February 1, 1996
<PAGE>
[Letterhead]
FRIDUSS, LUKEE, SCHIFF & CO., P.C.
CERTIFIED PUBLIC ACCOUNTANTS
4747 WEST PETERSON AVENUE
CHICAGO, ILLINIOS 60646
(312) 777-4445
FAX (312) 777-6557
INDEPENDENT AUDITOR'S REPORT
To the Partners of HUD Field Office Director
DIVERSEY SQUARE ASSOCIATES II Chicago, Illinois
Chicago, Illinois
We have audited the accompanying balance sheets of DIVERSEY SQUARE ASSOCIATES
II, Project No. 071-35573, (An Illinois Limited Partnership), as of December 31,
1994 and 1993 and the related statements of profit and loss, partners' equity
and cash flows for the years then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards and generally accepted Government Auditing, issued by the Comptroller
General of the United States. Those standards require that we plan and perform
the audits to obtain reasonable assurance about whether the financial statements
are free of material misstatements. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of DIVERSEY SQUARE ASSOCIATES II as of
December 31, 1994 and 1993, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles. The supporting data included in this report shown on pages 18
through 23 have been subjected to the same auditing procedures applied in the
audit of the basic financial statements, and in our opinion, are presented
fairly in all material respects in relation to the basic financial statements
taken as a whole.
/s/FRIDUSS, LUKEE, SCHIFF & CO., P.C.
FRIDUSS, LUKEE, SCHIFF & CO., P.C. 36-3087225
Certified Public Accountants Mr. Bruce C. Schiff
(312) 777-4445
Chicago, Illinois
January 31, 1995
<PAGE>
[Letterhead]
[LOGO]
Habif, Arogeti & Wynne, P.C.
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Partners
Breckenridge Creste Apartments, L.P.
We have audited the accompanying balance sheet of Breckenridge Creste
Apartments, L.P., (a Georgia Limited Partnership), as of December 31, 1995 and
the related statements of changes in partners' equity, operations, and cash
flows for the years then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
These standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provided a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Breckenridge Creste Apartments,
L.P. as of December 31, 1995, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The accompanying supplemental information is
presented for purposes of additional analysis and is not a required part of the
basic financial statements. Such information has been subjected to the same
auditing procedures applied in the audit of the basic financial statements.
/s/Habif, Arogeti & Wynne, P.C.
Atlanta, Georgia
January 31, 1996
<PAGE>
[Letterhead]
[LOGO]
Habif, Arogeti & Wynne, P.C.
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Partners
Breckenridge Creste Apartments, L.P.
We have audited the accompanying balance sheet of Breckenridge Creste
Apartments, L.P., (a Georgia Limited Partnership), as of December 31, 1994 and
the related statements of changes in partners' equity, operations, and cash
flows for the year then ended. These financial statements are the responsibility
of the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Breckenridge Creste Apartments,
L.P. as of December 31, 1994, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The accompanying supplemental information is
presented for purpose of additional analysis and is not a required part of the
basic financial statements. Such information has been subjected to the same
auditing procedures applied in the audit of the basic financial statements.
/s/Habif, Arogeti & Wynne, P.C.
Atlanta, Georgia
January 31, 1995
<PAGE>
[Letterhead]
[LOGO]
Habif, Arogeti & Wynne, P.C.
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Partners
Breckenridge Creste Apartments, L.P.
We have audited the accompanying balance sheet of Breckenridge Creste
Apartments, L.P., (a Georgia Limited Partnership), as of December 31, 1993 and
the related statements of changes in partners' equity, operations, and cash
flows for the year then ended. These financial statements are the responsibility
of the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Breckenridge Creste Apartments,
L.P. as of December 31, 1993, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.
The accompanying financial statements have been prepared assuming that the
Partnership will continue as a going concern. The Partnership has not obtained
long-term financing and the construction note matures during the current year,
which raises doubt about its ability to continue as a going concern. The
financial statements do not include any adjustments that might result from the
outsome of this uncertainty.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The accompanying supplemental information is
presented for purposes of additional analysis and is not a required part of the
basic financial statements. Such information has been subjected to the same
auditing procedures applied in the audit of the basic financial statements.
/s/Habif, Arogeti & Wynne, P.C.
Atlanta, Georgia
February 1, 1994
<PAGE>
[Letterhead]
[LOGO]
STARK TINTER & ASSOCIATES, LLC
INDEPENDENT AUDITOR'S REPORT
To the Partners of
EDM Housing Associates, Ltd.
Englewood, Colorado
We have audited the accompanying balance sheet of EDM Housing Associates, Ltd.
(a limited partnership), HUD Project No. 101-94007, as of December 31, 1995 and
the related statements of profit and loss, changes in partners' equity
(deficiency) and cash flows for the year then ended. These financial statements
are the responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. These standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provided a reasonable basis
for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of EDM Housing Associates, Ltd., HUD
Project No. 101-94007, as of December 31, 1995, and the results of its
operations and the changes in partners' equity (deficiency) and its cash flows
for the year then ended, in conformity with generally accepted accounting
principles.
/s/STARK TINTER & ASSOCIATES
January 30, 1996
<PAGE>
[Letterhead]
[LOGO]
STARK TINTER & ASSOCIATES, LLC
INDEPENDENT AUDITOR'S REPORT
To the Partners of
EDM Housing Associates, Ltd.
Englewood, Colorado
We have audited the accompanying balance sheet of EDM Housing Associates, Ltd.
(a limited partnership), HUD Project No. 101-94007, as of December 31, 1994 and
the related statements of profit and loss, changes in partners' equity and cash
flows for the year then ended. These financial statements are the responsibility
of the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of EDM Housing Associates, Ltd., HUD
Project No. 101-94007, as of December 31, 1994, and the results of its
operations and the changes in partners' equity and its cash flows for the year
then ended, in conformity with generally accepted accounting principles.
/s/STARK TINTER & ASSOCIATES
February 5, 1995
<PAGE>
[Letterhead]
[LOGO]
GELFOND HOCHSTADT PANGBURN STARK & CO.
INDEPENDENT AUDITOR'S REPORT
To the Partners of
EDM Housing Associates, Ltd.
Englewood, Colorado
We have audited the accompanying balance sheet of EDM Housing Associates, Ltd.
(a limited partnership), HUD Project No. 101-94007, as of December 31, 1993, and
the related statements of profit and loss, changes in partners' equity and cash
flows for the year then ended. These financial statements are the responsibility
of the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of EDM Housing Associates, Ltd., HUD
Project No. 101-94007, as of December 31, 1993, and the results of its
operations and the changes in partners' equity and its cash flows for the year
then ended, in conformity with generally accepted accounting principles.
/s/ GELFOND HOCHSTADT PANGBURN STARK & CO.
February 8, 1994
<PAGE>
[Letterhead]
[LOGO]
STARK TINTER & ASSOCIATES, LLC
INDEPENDENT AUDITOR'S REPORT
To the Partners of
Fox Run Housing Associates, Ltd.
Englewood, Colorado
We have audited the accompanying balance sheet of Fox Run Housing Associates,
Ltd. (a limited partnership), HUD Project No. 115-94018, as of December 31, 1995
and the related statements of profit and loss, changes in partners' equity
(deficiency) and cash flows for the year then ended. These financial statements
are the responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. These standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provided a reasonable basis
for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Fox Run Housing Associates, Ltd.,
HUD Project No. 115-94018, as of December 31, 1995, and the results of its
operations and the changes in partners' equity (deficiency) and its cash flows
for the year then ended, in conformity with generally accepted accounting
principles.
/s/STARK TINTER & ASSOCIATES
January 30, 1996
<PAGE>
[Letterhead]
[LOGO]
STARK TINTER & ASSOCIATES, LLC
INDEPENDENT AUDITOR'S REPORT
To the Partners of
Fox Run Housing Associates, Ltd.
Englewood, Colorado
We have audited the accompanying balance sheet of Fox Run Housing Associates,
Ltd. (a limited partnership), HUD Project No. 115-94018, as of December 31,
1994, and the related statements of profit and loss, changes in partners' equity
and cash flows for the year then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Fox Run Housing Associates, Ltd.,
HUD Project No. 115-94018, as of December 31, 1994, and the results of its
operations and the changes in partners' equity and its cash flows for the year
then ended, in conformity with generally accepted accounting principles.
/s/STARK TINTER & ASSOCIATES
February 5, 1995
<PAGE>
[Letterhead]
[LOGO]
GELFOND, HOCHSTADT PANGBURN STARK & CO.
INDEPENDENT AUDITOR'S REPORT
To the Partners of
Fox Run Housing Associates, Ltd.
Englewood, Colorado
We have audited the accompanying balance sheet of Fox Run Housing Associates,
Ltd. (a limited partnership), HUD Project No. 115-94018, as of December 31,
1993, and the related statements of profit and loss, changes in partners' equity
and cash flows for the year then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Fox Run Housing Associates, Ltd.,
HUD Project No. 115-94018, as of December 31, 1993, and the results of its
operations and the changes in partners' equity and its cash flows for the year
then ended, in conformity with generally accepted accounting principles.
/s/ GELFOND, HOCHSTADT PANGBURN STARK & CO.
February 8, 1994
<PAGE>
[Letterhead]
[LOGO]
Dauby O'Conner & Zaleski
A Limited Liability Company
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Partners
241 Pine Street Associates, L.P.
Manchester, New Hampshire
We have audited the accompanying balance sheet of 241 Pine Street Associates,
L.P., (a New Hampshire Limited Partnership), as of December 31, 1995 and the
related statements of income (loss), partners' capital and cash flows for the
years then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provided a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of 241 Pine Street Associates, L.P. as
of December 31, 1995, and the results of its' operations for the year then ended
in conformity with generally accepted accounting principles.
/s/Dauby O'Conner & Zaleski
January 4, 1996 Dauby O'Conner & Zaleski
Indianapolis, Indiana Certified Public Accountants
<PAGE>
[Letterhead]
[LOGO]
BRAYMAN, TEEL & COMPANY
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Partners
241 Pine Street Associates, L.P.
Manchester, New Hampshire
We have audited the accompanying balance sheet of 241 Pine Street Associates
Limited Partnership, (a New Hampshire Limited Partnership), as of December 31,
1994 and the related statements of (loss), partners' capital, and cash flows for
the year then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of 241 Pine Street Associates
Limited Partnership as of December 31, 1994 and the results of its' operations
for the year then ended in conformity with generally accepted accounting
principles.
/s/Brayman, Teel & Company
February 10, 1995
<PAGE>
[Letterhead]
[LOGO]
BRAYMAN, TEEL & COMPANY
Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Partners
241 Pine Street Associates, L.P.
Manchester, New Hampshire
We have audited the accompanying balance sheet of 241 Pine Street Associates
Limited Partnership, (a New Hampshire Limited Partnership), as of December 31,
1993 and the related statements of revenue and expenses, and changes in
partners' capital for the year then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of 241 Pine Street Associates
Limited Partnership as of December 31, 1993 and the results of its operations
for the year then ended in conformity with generally accepted accounting
principles.
/s/Brayman, Teel & Company
April 4, 1994
<PAGE>
[Letterhead]
[LOGO]
BCC
Braunsdorf, Carlson and Clinkinbeard
CERTIFIED PUBLIC ACCOUNTANTS
A PROFESSIONAL ASSOCIATION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Partners
Brownsville Associates, L.P.
Brownsville, Tennessee
We have audited the accompanying balance sheets of Brownsville Associates, L.P.,
(a Missouri limited partnership), RECD Case No.: 48-038-431399553, as of
December 31, 1995 and 1994 and the related statements of loss, partners' equity
and cash flows for the years then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards and with Government Auditing Standards issued by the Comptroller
General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatements. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provided a
reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Brownsville Associates, L.P. as of
December 31, 1995 and 1994, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.
/s/Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
Braunsdorf, Carlson and Clinkinbeard
TOPEKA, KANSAS
February 2, 1996
<PAGE>
[Letterhead]
[LOGO]
BCC
Braunsdorf, Carlson and Clinkinbeard
CERTIFIED PUBLIC ACCOUNTANTS
A PROFESSIONAL ASSOCIATION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Partners
Brownsville Associates, L.P.
Brownsville, Tennessee
We have audited the accompanying balance sheets of Brownsville Associates, L.P.,
(a Missouri limited partnership), FMHA Case No.: 48-038-431399553, as of
December 31, 1994 and 1993 and the related statements of loss, partners' equity
and cash flows for the years then ended. These financial statements are the
responsibility of the partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards and with Government Auditing Standards issued by the Comptroller
General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatements. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Brownsville Associates, L.P. as of
December 31, 1994 and 1993, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.
/s/Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
Braunsdorf, Carlson and Clinkinbeard
TOPEKA, KANSAS
February 27, 1995
<PAGE>
[Letterhead]
[LOGO]
BCC
Braunsdorf, Carlson and Clinkinbeard
CERTIFIED PUBLIC ACCOUNTANTS
A PROFESSIONAL ASSOCIATION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Partners
Briarwood Associates II, L.P.
We have audited the accompanying balance sheets of Briarwood Associates II,
L.P., (a Missouri limited Partnership), RECD Case No.: 02-027-431303694, as of
December 31, 1995 and 1994 and the related statements of loss, partners' equity
and cash flows for the years then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audit in accordance with generally accepted auditing
standards and with Government Auditing Standards issued by the Comptroller
General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatements. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provided a
reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Briarwood Associates II, L.P. as of
December 31, 1995 and 1994, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary on pages 8-9 is presented for
purposes of additional analysis and is not a required part of the basic
financial statements. Such information has been subjected to the same auditing
procedures applied in the audit of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
/s/Braunsdorf, Carlson and Clinkinbeard
Braunsdorf, Carlson and Clinkinbeard
TOPEKA, KANSAS
February 13, 1996
<PAGE>
[Letterhead]
[LOGO]
BCC
Braunsdorf, Carlson and Clinkinbeard
CERTIFIED PUBLIC ACCOUNTANTS
A PROFESSIONAL ASSOCIATION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Partners
Briarwood Associates II, L.P.
We have audited the accompanying balance sheets of Briarwood Associates II,
L.P., (a Missouri limited partnership), FMHA Case No.: 02-027-431303694, as of
December 31, 1994 and 1993 and the related statements of loss, partners' equity
and cash flows for the years then ended. These financial statements are the
responsibility of the partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audit in accordance with generally accepted auditing
standards and with Government Auditing Standards issued by the Comptroller
General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatements. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Briarwood Associates II, L.P. as of
December 31, 1994 and 1993, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental on pages 10, 11 and 12
is presented for purposes of additional analysis and is not a required part of
the basic financial statements. Such information has been subjected to the same
auditing procedures applied in the audit of the basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
/s/Braunsdorf, Carlson and Clinkinbeard
Braunsdorf, Carlson and Clinkinbeard
TOPEKA, KANSAS
February 24, 1995
<PAGE>
[Letterhead]
[LOGO]
BCC
Braunsdorf, Carlson and Clinkinbeard
CERTIFIED PUBLIC ACCOUNTANTS
A PROFESSIONAL ASSOCIATION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Partners
Altheimer Associates I, L.P.
Altheimer, Arkansas
We have audited the accompanying balance sheets of Altheimer Associates I, L.P.,
(a Missouri limited Partnership), FmHA Case No.: 03-035-431479737, as of
December 31, 1995 and the related statements of loss, partners' equity and cash
flows for the year ended December 31, 1995. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provided a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Altheimer Associates I, L.P. as of
December 31, 1995, and the results of its operations and its cash flows for the
year then ended in conformity with generally accepted accounting principles.
/s/Braunsdorf, Carlson and Clinkinbeard
Braunsdorf, Carlson and Clinkinbeard
TOPEKA, KANSAS
February 3, 1996
<PAGE>
[Letterhead]
[LOGO]
BCC
Braunsdorf, Carlson and Clinkinbeard
CERTIFIED PUBLIC ACCOUNTANTS
A PROFESSIONAL ASSOCIATION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Partners
Altheimer Associates I, L.P.
Altheimer, Arkansas
We have audited the accompanying balance sheet of Altheimer Associates I, L.P.,
(a Missouri limited partnership), as of December 31, 1993 and the related
statements of loss, partners' equity and cash flows for the year then ended.
These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Altheimer Associates I, L.P. as of
December 31, 1993, and the results of its operations and its cash flows for the
year then ended in conformity with generally accepted accounting principles.
/s/Braunsdorf, Carlson and Clinkinbeard
Braunsdorf, Carlson and Clinkinbeard
TOPEKA, KANSAS
January 29, 1994
<PAGE>
[Letterhead]
[LOGO]
BCC
Braunsdorf, Carlson and Clinkinbeard
CERTIFIED PUBLIC ACCOUNTANTS
A PROFESSIONAL ASSOCIATION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Partners
Bolivar Senior Housing, L.P.
Wayne, Nebraska
We have audited the accompanying balance sheet of Bolivar Senior Housing, L.P.,
(a Missouri limited Partnership), RECD Case No.: 29-084-481063570, as of
December 31, 1995 and the related statements of loss, partners' equity and cash
flows for the year ended December 31, 1995. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provided a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Bolivar Senior Housing, L.P. as of
December 31, 1995, and the results of its operations and its cash flows for the
year then ended in conformity with generally accepted accounting principles.
/s/Braunsdorf, Carlson and Clinkinbeard
Braunsdorf, Carlson and Clinkinbeard
TOPEKA, KANSAS
January 31, 1996
<PAGE>
[Letterhead]
[LOGO]
BCC
Braunsdorf, Carlson and Clinkinbeard
CERTIFIED PUBLIC ACCOUNTANTS
A PROFESSIONAL ASSOCIATION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Partners
Bolivar Senior Housing, L.P.
We have audited the accompanying balance sheet of Bolivar Senior Housing, L.P.,
(a Missouri limited partnership), as of December 31, 1993 and the related
statements of loss, partners' equity and cash flows for the year then ended.
These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards.Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Bolivar Senior Housing, L.P. as of
December 31, 1993 and the results of its operations and its cash flows for the
year then ended in conformity with generally accepted accounting principles.
/s/Braunsdorf, Carlson and Clinkinbeard
Braunsdorf, Carlson and Clinkinbeard
TOPEKA, KANSAS
February 2, 1994
<PAGE>
[Letterhead]
[LOGO]
CRAIN
& COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners
Fulton Associates I LP
(A Limited Partnership)
We have audited the accompanying balance sheets of Fulton Associates I LP (A
Limited Partnership), a FmHA Project, as of December 31, 1995 and 1994 and the
related statements of operations, changes in partners' capital and cash flows
for the years then ended. These financial statements are the responsibility of
the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. These standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Fulton Associates I LP (A Limited
Partnership) as of December 31, 1995 and 1994, and the results of its operations
and its cash flows for the years then ended in conformity with generally
accepted accounting principles.
Our audits were for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary information as listed in the
table of contents is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information has been
subjected to the same auditing procedures applied in the audit of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/Crain & Company
CRAIN & COMPANY
Certified Public Accountants
Jackson, Tennessee
February 3, 1996
<PAGE>
[Letterhead]
[LOGO]
CRAIN
& COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners
Fulton Associates I LP
(A Limited Partnership)
We have audited the accompanying balance sheets of Fulton Associates I LP (A
Limited Partnership), a FmHA Project, as of December 31, 1994 and 1993 and the
related statements of operations, changes in partners' capital and cash flows
for the years then ended. These financial statements are the responsibility of
the partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. These standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatements. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Fulton Associates I LP (A
Limited Partnership) as of December 31, 1994 and 1993 and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
Our audits were for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary information on pages 10-17 is
presented for purposes of additional analysis and is not a required part of the
basic financial statements. Such information has been subjected to the audit
procedures applied in the audits of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
/s/Crain & Company
CRAIN & COMPANY
Certified Public Accountants
Jackson, Tennessee
February 10, 1995
<PAGE>
[Letterhead]
[LOGO]
CRAIN
& COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners
Eaglewood VIII LP
(A Limited Partnership)
We have audited the accompanying balance sheets of Eaglewood VIII LP (A Limited
Partnership), a FmHA Project, as of December 31, 1995 and 1994 and the related
statements of operations, changes in partners' capital and cash flows for the
years then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatements. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Eaglewood VIII LP (A Limited
Partnership) as of December 31, 1995 and 1994, and the results of its operations
and its cash flows for the years then ended in conformity with generally
accepted accounting principles.
Our audits were for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary information as listed in the
table of contents is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information has been
subjected to the same auditing procedures applied in the audit of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued a report
dated February 9, 1996 on our consideration of the limited partnership's
itnernal control structure and a report dated February 9, 1996 on its compliance
with laws and regulations
/s/Crain & Company
CRAIN & COMPANY
Certified Public Accountants
Jackson, Tennessee
February 9, 1996
<PAGE>
[Letterhead]
[LOGO]
CRAIN
& COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners
Eaglewood VIII LP
(A Limited Partnership)
We have audited the accompanying balance sheets of Eaglewood VIII LP (A Limited
Partnership), a FmHA Project, as of December 31, 1994 and 1993, and the related
statements of operations, changes in partners' capital and cash flows for the
years then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatements. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Eaglewood VIII LP (A Limited
Partnership) as of December 31, 1994 and 1993, and the results of its operations
and its cash flows for the years then ended in conformity with generally
accepted accounting principles.
Our audits were for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary information on pages 11-16 is
presented for purposes of additional analysis and is not a required part of the
basic financial statements. Such information has been subjected to the audit
procedures applied in the audit of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
/s/Crain & Company
CRAIN & COMPANY
Certified Public Accountants
Jackson, Tennessee
February 14, 1995
<PAGE>
[Letterhead]
[LOGO]
Suby, Von Haden
& Associates, S.C.
CERTIFIED PUBLIC ACCOUNTANTS
Business and Management Consultants
INDEPENDENT AUDITOR'S REPORT
To the Partners
Elver Park Limited Partnership III
Madison, Wisconsin
We have audited the accompanying balance sheets of Elver Park Limited
Partnership III, as of December 31, 1995 and 1994 and the related statements of
loss, partners' equity and cash flows for the years then ended. These financial
statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred above present fairly, in all
material respects, the financial position of Elver Park Limited Partnership III
as of December 31, 1995 and 1994, and the results of its operations, changes in
partners' equity, and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
/s/Suby, Von Haden & Associates, S.C.
January 15, 1996
<PAGE>
[Letterhead]
[LOGO]
Suby, Von Haden
& Associates, S.C.
CERTIFIED PUBLIC ACCOUNTANTS
Business and Management Consultants
INDEPENDENT AUDITOR'S REPORT
To the Partners
Elver Park Limited Partnership III
Madison, Wisconsin
We have audited the accompanying balance sheets of Elver Park Limited
Partnership III, as of December 31, 1994 and 1993 and the related statements of
loss, partners' equity and cash flows for the years then ended. These financial
statements are the responsibility of the partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Elver Park Limited Partnership
III as of December 31, 1994 and 1993, and the results of its operations, changes
in partners' equity, and its cash flows for the years then ended in conformity
with generally accepted accounting principles.
/s/Suby, Von Haden & Associates, S.C.
January 25, 1995
<PAGE>
[Letterhead]
[LOGO]
Suby, Von Haden
& Associates, S.C.
CERTIFIED PUBLIC ACCOUNTANTS
Business and Management Consultants
INDEPENDENT AUDITOR'S REPORT
To the Partners
Elver Park Limited Partnership II
Madison, Wisconsin
We have audited the accompanying balance sheets of Elver Park Limited
Partnership II, as of December 31, 1995 and 1994 and the related statements of
loss, partners' equity and cash flows for the years then ended. These financial
statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred above present fairly, in all
material respects, the financial position of Elver Park Limited Partnership II
as of December 31, 1995 and 1994, and the results of its operations, changes in
partners' equity, and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
/s/Suby, Von Haden & Associates, S.C.
January 15, 1996
<PAGE>
[Letterhead]
[LOGO]
Suby, Von Haden
& Associates, S.C.
CERTIFIED PUBLIC ACCOUNTANTS
Business and Management Consultants
INDEPENDENT AUDITOR'S REPORT
To the Partners
Elver Park Limited Partnership II
Madison, Wisconsin
We have audited the accompanying balance sheets of Elver Park Limited
Partnership II, as of December 31, 1994 and 1993 and the related statements of
loss, partners' equity and cash flows for the years then ended. These financial
statements are the responsibility of the partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred above present fairly, in all
material respects, the financial position of Elver Park Limited Partnership II
as of December 31, 1994 and 1993, and the results of its operations, changes in
partners' equity, and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
/s/Suby, Von Haden & Associates, S.C.
January 25, 1995
<PAGE>
[Letterhead]
[LOGO]
Robert Ercolini & Company
Certified Public Accountants
Fifty-Five Summer Street
Boston, Massachusetts 02110-1007
Telephone (617) 482-5511
Telecoper (617) 426-5252
INDEPENDENT AUDITOR'S REPORT
To the Partners of
Blue Mountain Associates Limited Partnership HUD Area Office
Boston, Massachusetts Boston, Massachusetts
We have audited the accompanying balance sheet of Blue Mountain Associates
Limited Partnership., (A Massachusetts Limited Partnership), HUD Project No.
023-36609, as of December 31, 1995 and the related statements of profit and
loss, partners' capital and cash flows for the years then ended. These financial
statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing
standards and generally accepted Government Auditing Standards issued by the
Comptroller General of the United States.
These standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Blue Mountain Associates Limited
Partnership as of December 31, 1995, and its results of operations, changes in
partners' capital, and its cash flows for the year then ended in conformity with
generally accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report
dated January 26, 1996 on our consideration of Blue Mountain Associates Limited
Partnership's internal control structure, a reports dated January 26, 1996 on
its compliance with laws and regulations, and reports dated January 26, 1996 on
its compliance with specific requirements applicable to HUD Programs.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The additional information included in this report
(shown on pages 14 through 18) is presented for purposes of additional analysis
and is not a required part of the basic financial statements. Such information
has been subjected to the same auditing procedures applied in the audit of the
basic financial statements and, in our opinion, are presented fairly in all
material respects in relation to the basic financial statements taken as a
whole.
Robert Ercolini & Company
January 26, 1996
<PAGE>
[Letterhead]
[LOGO]
Robert Ercolini & Company
Certified Public Accountants
Fifty-Five Summer Street
Boston, Massachusetts 02110-1007
Telephone (617) 482-5511
Telecoper (617) 426-5252
INDEPENDENT AUDITOR'S REPORT
To the Partners of
Blue Mountain Associates Limited Partnership HUD Area Office
Boston, Massachusetts Boston, Massachusetts
We have audited the accompanying balance sheet of Blue Mountain Associates
Limited Partnership., (A Massachusetts Limited Partnership), HUD Project No.
023-36609 as of December 31, 1994 and the related statements of profit and loss
(on HUD Form No. 92410), partners' capital, and cash flows for the years then
ended. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and generally accepted Government Auditing Standards issued by the
Comptroller General of the United States. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Blue Mountain Associates Limited
Partnership as of December 31, 1994, and the results of its operations, changes
in partners' capital, and its cash flows for the year then ended in conformity
with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The additional information included in this report
(shown on pages 13 through 17) is presented for the purpose of additional
analysis and is not a required part of the basic financial statements. Such
information has been subjected to the same auditing procedures applied in the
audit of the basic financial statements and, in our opinion, are presented
fairly in all material respects in relation to the basic financial statements
taken as a whole.
/s/Robert Ercolini & Company
January 31, 1995
<PAGE>
[Letterhead]
[LOGO]
Robert Ercolini & Company
Certified Public Accountants
Fifty-Five Summer Street
Boston, Massachusetts 02110-1007
Telephone (617) 482-5511
Telecoper (617) 426-5252
INDEPENDENT AUDITOR'S REPORT
To the Partners of
Blue Mountain Associates Limited Partnership HUD Area Office
Boston, Massachusetts Boston, Massachusetts
We have audited the accompanying balance sheet of Blue Mountain Associates
Limited Partnership., (A Massachusetts Limited Partnership), HUD Project No.
023-36609 as of December 31, 1993 and the related statements of profit and loss
(on HUD Form No. 92410), partners' capital, and cash flows for the years then
ended. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and generally accepted Government Auditing Standards issued by the
Comptroller General of the United States. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatements. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Blue Mountain Associates Limited
Partnership as of December 31, 1993, and the results of its operations, changes
in partners' capital, and its cash flows for the year then ended in conformity
with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The additional information included in this report
(shown on pages 13 through 17) is presented for the purpose of additional
analysis and is not a required part of the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and, in our opinion, are presented fairly in
all material respects in relation to the basic financial statements taken as a
whole.
/s/Robert Ercolini & Company
February 6, 1994
<PAGE>
[Letterhead]
[LOGO]
Haran & Associates Ltd
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
To the Partners
Boulevard Commons Limited Partnership IIA
Chicago, Illinois
We have audited the accompanying statement of assets, liabilities, and partners'
equity-income tax basis of Boulevard Commons Limited Partnership IIA., (a
Limited Partnership) as of December 31, 1995 and the related statements of
operations-income tax basis, changes in partners' equity-income tax basis and
statement of cash flows-income tax basis for the year then ended. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards
and generally accepted Government Auditing Standards for financial and
compliance audits issued by the Comptroller General of the United States. These
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provided a reasonable basis for our opinion.
As described in the notes to the financial statements, the Partnership's policy
is to prepare its financial statements on the basis of accounting used for
income tax purposes and are not intended to be presented in conformity with
generally accepted accountants principles.
In our opinion the financial statements referred to above present fairly, in all
material respects, the assets, liabilities and partners' equity of BOULEVARD
COMMONS LIMITED Partnership IIA at December 31, 1995, and its operations,
changes in partners' equity, and its cash flows for the year then ended on the
basis of accounting described in the notes to the financial statements.
/s/Haran & Associates LTD
HARAN & ASSOCIATES LTD.
Certified Public Accountants
Wimette, Illinois
Illinois Certificate No. 060-002892
January 17, 1996
<PAGE>
[Letterhead]
[LOGO]
Haran & Associates Ltd
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
To the Partners
BOULEVARD COMMONS LIMITED PARTNERSHIP IIA
Chicago, Illinois
We have audited the accompanying statement of assets, liabilities, and partners'
equity-income tax basis of BOULEVARD COMMONS LIMITED PARTNERSHIP IIA., (a
Limited Partnership) as of December 31, 1994 and the related statements of
operations-income tax basis, changes in partners' equity-income tax basis and
statement of cash flows-income tax basis for the year then ended. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards
and generally accepted Government Auditing Standards for financial and
compliance audits issued by the Comptroller General of the United States. These
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provided a reasonable basis for our opinion.
As described in the notes to the financial statements, the Partnership's policy
is to prepare its financial statements on the basis of accounting used for
income tax purposes and are not intended to be presented in conformity with
generally accepted accountants principles.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets, liabilities and partners' equity of BOULEVARD
COMMONS LIMITED PARTNERSHIP IIA at December 31, 1994, and its operations,
changes in partners' equity, and its cash flows for the year then ended on the
basis of accounting described in the notes to the financial statements.
/s/Haran & Associates LTD
HARAN & ASSOCIATES LTD.
Certified Public Accountants
Wimette, Illinois
Illinois Certificate No. 060-002892
January 25, 1995
<PAGE>
[Letterhead]
[LOGO]
Haran & Associates Ltd
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
To the Partners
BOULEVARD COMMONS LIMITED PARTNERSHIP IIA
Chicago, Illinois
We have audited the accompanying statement of assets, liabilities, and partners'
equity-income tax basis of BOULEVARD COMMONS LIMITED PARTNERSHIP IIA., (a
Limited Partnership) as of December 31, 1993 and the related statements of
operations-income tax basis, changes in partners' equity-income tax basis and
statement of cash flows-income tax basis for the year then ended. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards
and generally accepted Government Auditing Standards for financial and
compliance audits issued by the Comptroller General of the United States. These
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provided a reasonable basis for our opinion.
As described in the notes to the financial statements, the Partnership's policy
is to prepare its financial statements on the basis of accounting used for
income tax purposes and are not intended to be presented in conformity with
generally accepted accountants principles.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets, liabilities and partners' equity of BOULEVARD
COMMONS LIMITED PARTNERSHIP IIA at December 31, 1993, and its operations,
changes in partners' equity, and its cash flows for the year then ended on the
basis of accounting described in the notes to the financial statements.
/s/Haran & Associates LTD
HARAN & ASSOCIATES LTD.
Certified Public Accountants
Wimette, Illinois
Illinois Certificate No. 060-002892
January 25, 1994
<PAGE>
[Letterhead]
[LOGO]
Coopers
& Lybrand
INDEPENDENT AUDITOR'S REPORT
To the Partners of
El Jardin of Davie, Ltd.
We have audited the accompanying statement of assets, liabilities, and partners'
capital of El Jardin of Davie, Ltd. (the "Partnership"), as of December 31, 1995
and the related statements of revenues and expenses, changes in partners'
capital and cash flows for the years then ended. These financial statements are
the responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller General of
the United States. These standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatements. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion the financial statements referred above present fairly, in all
material respects, the financial position of El Jardin of Davie, Ltd.as of
December 31, 1995, and the results of its operations and its cash flows for the
year then ended in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supporting information included in
this report (shown on pages 11 through 18) is presented for purposes of
additional analysis and is not a required part of the basic financial
statements. Such information has been subjected to the same auditing procedures
applied in the audit of the basic financial statements and, in our opinion, are
presented fairly in all material respects in relation to the basic financial
statements taken as a whole.
/s/Coopers & Lybrand L.L.P
Miami, Florida
February 23, 1996
<PAGE>
[Letterhead]
[LOGO]
Coopers
& Lybrand
INDEPENDENT AUDITOR'S REPORT
To the Partners of
El Jardin of Davie, Ltd.
We have audited the accompanying statement of assets, liabilities, and partners'
capital of El Jardin of Davie, Ltd. (the "Partnership"), as of December 31,
1994, and the related statements of revenues and expenses, changes in partners'
capital and cash flows for the years then ended. These financial statements are
the responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller General of
the United States. These standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatements. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion the financial statements referred above present fairly, in all
material respects, the financial position of El Jardin of Davie, Ltd.as of
December 31, 1994, and the results of its operations and its cash flows for the
year then ended in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supporting information included in
this report (shown on pages 11 through 18) is presented for purposes of
additional analysis and is not a required part of the basic financial
statements. Such information has been subjected to the same auditing procedures
applied in the audit of the basic financial statements and, in our opinion, are
presented fairly in all material respects in relation to the basic financial
statements taken as a whole.
/s/Coopers & Lybrand L.L.P.
Miami, Florida
February 21, 1995
<PAGE>
[Letterhead]
[LOGO]
Coopers
& Lybrand
INDEPENDENT AUDITOR'S REPORT
To the Partners of
El Jardin of Davie, Ltd.
We have audited the accompanying statement of assets, liabilities, and partners'
capital of El Jardin of Davie, Ltd. (the "Partnership"), as of December 31,
1993, and the related statements of revenues and expenses, changes in partners'
capital and cash flows for the years then ended. These financial statements are
the responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller General of
the United States. These standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatements. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion the financial statements referred above present fairly, in all
material respects, the financial position of the Partnership as of December 31,
1993, and the results of its operations and its cash flows for the year then
ended in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supporting information included in
this report (shown on pages 11 through 18) is presented for purposes of
additional analysis and is not a required part of the basic financial
statements. Such information has been subjected to the same auditing procedures
applied in the audit of the basic financial statements and, in our opinion, are
presented fairly in all material respects in relation to the basic financial
statements taken as a whole.
/s/Coopers & Lybrand
Miami, Florida
February 21, 1994
<PAGE>
[Letterhead]
[LOGO]
Deloitte & Certified Public Accountants
Touche LLP Suite 1800
200 South Orange Avenue
Orlando, Florida 32801
Telephone: (407) 246-8200
Fascimile: (407) 422-0936
INDEPENDENT AUDITOR'S REPORT
To the General Partner and Limited Partners of
Ashley Place, Ltd.:
We have audited the accompanying balance sheet of Ashley Place, Ltd. (a Florida
Limited Partnership), as of December 31, 1995 and the related statements
operations, partners' equity and cash flows for the year then ended. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing . Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred above present fairly, in all
material respects, the financial position of Ashley Place, Ltd. (a Florida
Limited Partnership) as of December 31, 1995, and the results of its operations
and its cash flows for the year then ended in conformity with generally accepted
accounting principles.
/s/Deloite & Touche LLP
February 2, 1996
<PAGE>
[Letterhead]
[LOGO]
Deloitte & Certified Public Accountants
Touche LLP Suite 1800
200 South Orange Avenue
Orlando, Florida 32801
Telephone: (407) 246-8200
Fascimile: (407) 422-0936
INDEPENDENT AUDITOR'S REPORT
To the General Partner and Limited Partners of
Ashley Place, Ltd.:
We have audited the accompanying balance sheet of Ashley Place, Ltd. (a Florida
Limited Partnership), as of December 31, 1994 and the related statements
operations, partners' equity and cash flows for the year then ended. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing . Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred above present fairly, in all
material respects, the financial position of Ashley Place, Ltd. (a Florida
Limited Partnership) as of December 31, 1994, and the results of its operations
and its cash flows for the year then ended in conformity with generally accepted
accounting principles.
/s/Deloite & Touche LLP
February 10, 1995
<PAGE>
[Letterhead]
[LOGO]
Deloitte & Certified Public Accountants
Touche LLP Suite 1800
200 South Orange Avenue
Orlando, Florida 32801
Telephone: (407) 246-8200
Fascimile: (407) 422-0936
INDEPENDENT AUDITOR'S REPORT
To the General Partner and Limited Partners of
Ashley Place, Ltd.:
We have audited the accompanying balance sheet of Ashley Place, Ltd. (a Florida
Limited Partnership), as of December 31, 1993 and the related statements
operations, partners' equity and cash flows for the year then ended. These
financial statements are the responsibility of the partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing . Those
standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred above present fairly, in all
material respects, the financial position of Ashley Place, Ltd. (a Florida
Limited Partnership) as of December 31, 1993, and the results of its operations
and its cash flows for the year then ended in conformity with generally accepted
accounting principles.
/s/Deloite & Touche
February 24, 1994
<PAGE>
[Letterhead]
[LOGO]
Purkey, Carter, Compton, Swann & Carter
Certified Public Accountants
2335 W. Andrew Johnson Highway
P.O. Box 727
Morriston, Tennessee 37815
Telephone (423) 586-4850
Fax (423) 581-8873
INDEPENDENT AUDITOR'S REPORT
General Partners Mr. Choice Edward, State Coordinator
Partners U.S. Department of Housing and
The Colony Apartments, L.P. Urban Development
1504 Riverview Tower Strom Thurmond Federal Building
900 S. Gay Street 1835-45 Assembly Street. 11th Floor
Knoxville, Tennessee Columbia, South Carolina 29201
We have audited the accompanying balance sheet of The Colony Apartments, L.P.,
FHA Project No. 054-94002-OMC (a limited partnership), as of December 31, 1995
and the related statements income, changes in partners' equity and cash flows
for the year then ended. These financial statements are the responsibility of
the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards, Government Auditing Standards issued by the Comptroller General of
the United States and the July 1993 Consolidated Audit Guide for Audits of HUD
Programs (the "Guide"), issued by the U.S. Department of Housing and Urban
Development, Office of the Inspector General. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred above present fairly, in all
material respects, the financial position of The Colony Apartments, L.P as of
December 31, 1995, and the results of its operations and the changes in
partners' equity and cash flows for the year then ended in conformity with
generally accepted accounting principles.
<PAGE>
General Partners
The Colony Apartments, L.P. Page 2
In accordance with Government Auditing Standards and the Consolidated Audit
Guide for Audits of HUD Programs (the "Guide"), issued by the U.S. Department of
Housing and Urban Development, we have also issued a report dated January 22,
1996 on our consideration of The Colony Apartments, L.P.'s internal control
structure and reports dated January 22, 1996 on its compliance with specific
requirements applicable to major HUD Programs and specific requirements
applicable to Affirmative Fair Housing.
Our audit was conducted for the purpose of forming an opinion on the financial
statements taken as a whole. The supplementary information included in this
report (shown on pages 26 to 35) is presented for purposes of additional
analysis and is not a required part of the financial statements of The Colony
Apartments, L.P. Such information has been subjected to the same auditing
procedures applied in the audit of the financial statements and, in our opinion,
is fairly stated in all material respects in relation to the financial
statements taken as a whole.
We attest that our firm, Purkey, Carter, Compton, Swann & Carter meets any legal
requirements concerning registration by the State of South Carolina.
/s/Purkey, Carter, Compton, Swann & Carter
Purkey, Carter, Compton, Swann & Carter
January 22, 1996
<PAGE>
[Letterhead]
[LOGO]
Purkey, Carter, Compton, Swann & Carter
Certified Public Accountants
2335 W. Andrew Johnson Highway
P.O. Box 727
Morriston, Tennessee 37815
Telephone (423) 586-4850
Fax (423) 581-8873
INDEPENDENT AUDITOR'S REPORT
General Partners Mr. Choice Edward, State Coordinator
Partners U.S. Department of Housing and
The Colony Apartments, L.P. Urban Development
1504 Riverview Tower Strom Thurmond Federal Building
900 S. Gay Street 1835-45 Assembly Street. 11th Floor
Knoxville, Tennessee Columbia, South Carolina 29201
We have audited the accompanying balance sheet of The Colony Apartments, L.P.,
FHA Project No. 054-94002-OMC (a limited partnership), as of December 31, 1994
and the related statements income, changes in partners' equity and cash flows
for the year then ended. These financial statements are the responsibility of
the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards, Government Auditing Standards issued by the Comptroller General of
the United States and the July 1993 Consolidated Audit Guide for Audits of HUD
Programs (the "Guide"), issued by the U.S. Department of Housing and Urban
Development, Office of the Inspector General. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred above present fairly, in all
material respects, the financial position of The Colony Apartments, L.P as of
December 31, 1993, and the results of its operations and the changes in
partners' equity and cash flows for the year then ended in conformity with
generally accepted accounting principles.
<PAGE>
General Partners
The Colony Apartments, L.P. Page 2
Our audit was conducted for the purpose of forming an opinion on the financial
statements taken as a whole. The supplementary information included in this
report (shown on pages 26 to 34) is presented for purposes of additional
analysis and is not a required part of the financial statements of The Colony
Apartments, L.P. Such information has been subjected to the same auditing
procedures applied in the audit of the financial statements and, in our opinion,
is fairly stated in all material respects in relation to the financial
statements taken as a whole.
We attest that our firm, Purkey, Carter, Compton, Swann & Carter meets any legal
requirements concerning registration by the State of South Carolina.
/s/Purkey, Carter, Compton, Swann & Carter
Purkey, Carter, Compton, Swann & Carter
January 21, 1995
<PAGE>
[Letterhead]
[LOGO]
Purkey, Carter, Compton, Swann & Carter
Certified Public Accountants
2335 W. Andrew Johnson Highway
P.O. Box 727
Morriston, Tennessee 37815
Telephone (423) 586-4850
Fax (423) 581-8873
INDEPENDENT AUDITOR'S REPORT
General Partners Mr. Choice Edward, State Coordinator
Partners U.S. Department of Housing and
The Colony Apartments, L.P. Urban Development
1504 Riverview Tower Strom Thurmond Federal Building
900 S. Gay Street 1835-45 Assembly Street. 11th Floor
Knoxville, Tennessee Columbia, South Carolina 29201
We have audited the accompanying balance sheet of The Colony Apartments, L.P.,
FHA Project No. 054-94002-OMC (a limited partnership), as of December 31, 1993
and the related statements income, changes in partners' equity and cash flows
for the year then ended. These financial statements are the responsibility of
the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards, Government Auditing Standards issued by the Comptroller General of
the United States and the July 1993 Consolidated Audit Guide for Audits of HUD
Programs (the "Guide"), issued by the U.S. Department of Housing and Urban
Development, Office of the Inspector General. Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatements. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred above present fairly, in all
material respects, the financial position of The Colony Apartments, L.P as of
December 31, 1993, and the results of its operations and the changes in
partners' equity and cash flows for the year then ended in conformity with
generally accepted accounting principles.
<PAGE>
General Partners
The Colony Apartments, L.P. Page 2
Our audit was conducted for the purpose of forming an opinion on the financial
statements taken as a whole. The supplementary information included in this
report (shown on pages 26 to 34) is presented for purposes of additional
analysis and is not a required part of the financial statements of The Colony
Apartments, L.P. Such information has been subjected to the same auditing
procedures applied in the audit of the financial statements and, in our opinion,
is fairly stated in all material respects in relation to the financial
statements taken as a whole.
We attest that our firm, Purkey, Carter, Compton, Swann & Carter meets any legal
requirements concerning registration by the State of South Carolina.
/s/Purkey, Carter, Compton, Swann & Carter
Purkey, Carter, Compton, Swann & Carter
January 31, 1994
<PAGE>
[Letterhead]
[LOGO]
LARRY O'DONNELL, CPA, P.C.
Office 745-4545
Partners
Aurora Properties, Ltd.
d/b/a Aurora East Apartments
Aurora, Colorado
INDEPENDENT AUDITOR'S REPORT
I have audited the accompanying balance sheets of Aurora Properties, Ltd., d/b/a
Aurora East Apartments, Project No. 101-10522 (a Limited Partnership), as of
December 31, 1995 and 1994 and the related statements of profit and loss, net
worth, and cash flows for the years then ended. These financial statements are
the
responsibility of the Company's management. My responsibility is to
express an opinion on these financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards,
Government Auditing Standards, issued by the Comptroller General of the United
States and the Consolidated Audit Guide for Audits of HUD Programs, issued by
the U.S. Department of Housing and Urban Development, Office of the Inspector
General in July 1993. Those standards require that I plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. I believe that my audit provides a reasonable basis for
opinion.
In my opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Aurora Properties, Ltd., d/b/a
Aurora East Apartments as of December 31, 1995 and 1994, and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
In accordance with Government Auditing Standards, I have also issued a report
dated February 7, 1996 on my consideration of Aurora Properties, Ltd., d/b/a
Aurora East Apartments, internal control structure and reports dated February 7,
1996 on its compliance with laws and regulations applicable to the basic
financial statements and the major HUD program.
Larry O'Donnell, CPA, PC
February 7, 1996
Federal Identification Number 84-1075467
<PAGE>
[Letterhead]
[LOGO]
LARRY O'DONNELL, CPA, P.C.
Office 745-4545
Partners
Aurora Properties, Ltd.
d/b/a Aurora East Apartments
Aurora, Colorado
INDEPENDENT AUDITOR'S REPORT
I have audited the accompanying balance sheets of Aurora Properties, Ltd., d/b/a
Aurora East Apartments, Project No. 101-10522 (a Limited Partnership), as of
December 31, 1994 and 1993, and the related statements of profit and loss, net
worth, and cash flows for the years then ended. These financial statements are
the responsibility of the Company's management. My responsibility is to express
an opinion on these financial statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards,
Government Auditing Standards, issued by the Comptroller General of the United
States and the Consolidated Audit Guide for Audits of HUD Programs, issued by
the U.S. Department of Housing and Urban Development, Office of the Inspector
General in July 1993. Those standards require that I plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. I believe that my audit provides a reasonable basis for
opinion.
In my opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Aurora Properties, Ltd., d/b/a
Aurora East Apartments as of December 31, 1994 and 1993, and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
My audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying information shown on
pages 8 through 18 is presented for purposes of additional analysis and is not a
required part of the basic financial statements and, in my opinion, is fairly
stated in all material respects in relation to the basic financial statements
taken as a whole.
Larry O'Donnell, CPA, PC
February 10, 1995
<PAGE>
[Letterhead]
[LOGO]
VMCHC&S Vroman, McGowen, Hurst, Clark & Smith, P.C.
Certified Public Accountants and Business Advisors
INDEPENDENT AUDITOR'S REPORT
To the Partners
Columbia Townhouse Associates Limited Partnership
Des Moines, Iowa
We have audited the accompanying balance sheets of Columbia Townhouse Associates
Limited Partnership, HUD Project No. 074-35189, as of December 31, 1995 and 1994
and the related statements of profit and loss, partners' capital (deficit) and
cash flows for the years then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion the financial statements referred to in the first paragraph
present fairly, in all material respects, the financial position of
Columbia Townhouse Associates Limited Partnership as of December 31, 1995 and
1994, and the results of its operations, changes in partners' capital (deficit),
and cash flows for the years then ended in conformity with generally accepted
accounting principles.
In accordance with Government Auditing Standards and the Consolidated Audit
Guide for Audits of HUD Programs issued by the U.S. Department of Housing and
Urban Development, we have also issued a report dated January 31, 1996 on our
consideration of Partnership's internal control structure and reports dated
January 31, 1996 on its compliance with specific requirements applicable to
major HUD Programs and specific requirements applicable to Affirmative Fair
Housing.
As discussed in Note A, the accompanying financial statements have been prepared
assuming that the Partnership will continue as a going concern. As shown in the
financial statements, the Partnership has incurred substantial losses before
depreciation for each of the passed two years. The financial statements do not
include any adjustments relating to the recoverability and classification of
recorded assets, or the amounts of classifications of liabilities that might be
necessary in the event the Partnership cannot continue in existence.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental information
(shown in Section II) is presented for the purpose of additional analysis and is
not a required part of the basic financial statements of Columbia Townhouse
Associates Limited Partnership. Such information has been subjected to the same
auditing procedures applied in the audits of the basic financial statements and,
in our opinion, are presented fairly in all material respects in relation to the
basic financial statements taken as a whole.
/s/Vroman, McGowen, Hurst, Clark & Smith, P.C.
Des Moines, Iowa
January 31, 1996
Other auditor information:
Lead Auditor - Michael W. McNichols
Federal ID Number- 42-1104473
<PAGE>
[Letterhead]
[LOGO]
VMCHC&S Vroman, McGowen, Hurst, Clark & Smith, P.C.
Certified Public Accountants and Business Advisors
INDEPENDENT AUDITOR'S REPORT
To the Partners
Columbia Townhouse Associates Limited Partnership
Des Moines, Iowa
We have audited the accompanying balance sheets of Columbia Townhouse Associates
Limited Partnership, HUD Project No. 074-35189, as of December 31, 1994 and 1993
and the related statements of operations, partners' capital and cash flows for
the years then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Columbia Townhouse Associates
Limited Partnership as of December 31, 1994 and 1993, and the results of its
operations, changes in partners' capital, and cash flows for the years then
ended, in conformity with generally accepted accounting principles.
As discussed in Note A, the accompanying financial statements have been prepared
assuming that the Partnership will continue as a going concern. As shown in the
financial statements, the Partnership has incurred substantial losses before
depreciation for each of the passed two years. The financial statements do not
include any adjustments relating to the recoverability and classification of
recorded assets, or the amounts of classifications of liabilities that might be
necessary in the event the Partnership cannot continue in existence.
<PAGE>
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental information
(shown on pages 15-21) is presented for the purpose of additional analysis and
is not a required part of the basic financial statements of Columbia Townhouse
Associates Limited Partnership. Such information has been subjected to the same
auditing procedures applied in the audits of the basic financial statements and,
in our opinion, are presented fairly in all material respects in relation to the
basic financial statements taken as a whole.
/s/Vroman, McGowen, Hurst, Clark & Smith, P.C.
Des Moines, Iowa
February 17, 1995
Other auditor information:
Lead Auditor - Michael W. McNichols
Federal ID Number- 42-1104473
<PAGE>
[Letterhead]
[LOGO]
FEGLEY & ASSOCIATES A PROFESSIONAL CORPORATION CERTIFIED PUBLIC ACCOUNTANTS 2250
Hickory Road, Suite 20 Plymouth Meeting, PA 19462 Phone (610) 825-7400 Fax (610)
825-1297
INDEPENDENT AUDITOR'S REPORT
To the Partners
Admiral Housing Limited Partnership
We have audited the accompanying balance sheets of Admiral Housing Limited
Partnership, as of December 31, 1995 and 1994 and the related statements
operations, partners' equity and cash flows for the years then ended. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Admiral Housing Limited Partnership
as of December 31, 1995 and 1994, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.
/s/Fegley & Associates
February 2, 1996
<PAGE>
[Letterhead]
[LOGO]
FEGLEY & ASSOCIATES A PROFESSIONAL CORPORATION CERTIFIED PUBLIC ACCOUNTANTS 2250
Hickory Road, Suite 20 Plymouth Meeting, PA 19462 Phone (610) 825-7400 Fax (610)
825-1297
INDEPENDENT AUDITOR'S REPORT
To the Partners
Admiral Housing Limited Partnership
We have audited the accompanying balance sheets of Admiral Housing Limited
Partnership, as of December 31, 1994 and 1993 and the related statements
operations, partners' equity and cash flows for the years then ended. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Admiral Housing Limited Partnership
as of December 31, 1994 and 1993, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.
The accompanying financial statements have been prepared assuming that the
company will continueas a going concern. As discussed in Note 12 to the
financial statements, existing circumstances raise substantial doubt as to the
ability of Admiral Housing Limited Partnership to continue as a going concern.
The accompanying financial statements do not include any adjustments that might
result from this uncertainty.
/s/Fegley & Associates
February 27, 1995
<PAGE>
[Letterhead]
[LOGO]
HALBERT, KATZ & CO., P.C.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
To the Partners
Georgetown Associates II, L.P.
Wimington, Delaware
We have audited the accompanying balance sheets of Georgetown Associates II,
L.P. as of December 31, 1995 and December 31, 1994 and the related statements of
loss, partners' capital (capital deficiency) and cash flows for the years then
ended. These financial statements are the responsibility of the project's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards
and Government Auditing, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audits to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Georgetown Associates II, L.P. as
of December 31, 1995 and December 31, 1994, and the results of its operations
and its cash flows for the years then ended in conformity with generally
accepted accounting principles.
In accordance with Government Auditing Standards, we have also issued a report
dated January 30, 1996 on our consideration of Georgetown Associates II, L.P.'s,
internal control structure.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supporting information included in
the report (shown on pages 14 through 16) is presented for the purposes of
additional analysis and is not a required part of the basic financial
statements. Such information has been subjected to the same auditing procedures
applied in the audits of the basic financial statements and in our opinion, is
fairly stated in all material respects in relation to the financial statements
taken as a whole.
/s/Halbert, Katz & Co., P.C.
January 30, 1996
<PAGE>
[Letterhead]
[LOGO]
HALBERT, KATZ & CO., P.C.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
To the Partners
Georgetown Associates II, L.P.
Wimington, Delaware
We have audited the accompanying balance sheets of Georgetown Associates II,
L.P. as of December 31, 1994 and December 31, 1993 and the related statements of
loss, partners' capital (capital deficiency) and cash flows for the years then
ended. These financial statements are the responsibility of the project's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards
and Government Auditing, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audits to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Georgetown Associates II, L.P. as
of December 31, 1994 and December 31, 1993, and the results of its operations
and its cash flows for the years then ended in conformity with generally
accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supporting information included in
the report (shown on pages 12 through 14) is presented for the purposes of
additional analysis and is not a required part of the basic financial statements
of Georgetown Associates II, L.P. Such information has been subjected to the
same auditing procedures applied in the audits of the basic financial statements
and in our opinion, is fairly stated in all material respects in relation to the
financial statements taken as a whole.
/s/Halbert, Katz & Co., P.C.
January 31, 1995
<PAGE>
[Letterhead]
[LOGO]
CRAIN
& COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners
Lexington Associates, I LP
(A Limited Partnership)
We have audited the accompanying balance sheets of Lexington Associates, I LP (A
Limited Partnership), a FmHA Project, as of December 31, 1995 and 1994 and the
related statements of operations, changes in partners' capital and cash flows
for the years then ended. These financial statements are the responsibility of
the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Lexington Associates, I LP (A
Limited Partnership) as of December 31, 1995 and 1994, and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
Our audits were for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary information as listed in the
table of contents is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information has been
subjected to the same auditing procedures applied in the audit of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued a report
dated February 3, 1996 on our consideration of the limited partnership's
internal control structure and a report dated February 3, 1996 on its compliance
with laws and regulations
/s/Crain & Company
CRAIN & COMPANY
Certified Public Accountants
Jackson, Tennessee
February 3, 1996
<PAGE>
[Letterhead]
[LOGO]
CRAIN
& COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners
Lexington Associates, I LP
(A Limited Partnership)
We have audited the accompanying balance sheets of Lexington Associates, I LP (A
Limited Partnership), a FmHA Project, as of December 31, 1994 and 1993 and the
related statements of operations, changes in partners' capital and cash flows
for the years then ended. These financial statements are the responsibility of
the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards
and Government Auditing Standards issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatements. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Lexington Associates, I LP (A
Limited Partnership) as of December 31, 1994 and 1993, and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
Our audits were for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplementary information on pages 11-16 is
presented for purposes of additional analysis and is not a required part of the
basic financial statements. Such information has been subjected to the same
auditing procedures applied in the audit of the basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
/s/Crain & Company
CRAIN & COMPANY
Certified Public Accountants
Jackson, Tennessee
February 15, 1995
<PAGE>
[Letterhead]
[LOGO]
BCC
Braunsdorf, Carlson and Clinkinbeard
CERTIFIED PUBLIC ACCOUNTANTS
A PROFESSIONAL ASSOCIATION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Partners
Longview Apartments, L.P.
Humboldt, Kansas
We have audited the accompanying balance sheet of Longview Apartments, L.P. (a
Kansas limited partnership), RECD Case No.: 18-001-431454412, as of December 31,
1995 and the related statements of loss, partners' equity and cash flows for the
year then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Longview Apartments, L.P. as of
December 31, 1995, and the results of its operations and its cash flows for the
year then ended in conformity with generally accepted accounting principles.
/s/Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
TOPEKA, KANSAS
January 31, 1996
<PAGE>
[Letterhead]
[LOGO]
BCC
Braunsdorf, Carlson and Clinkinbeard
CERTIFIED PUBLIC ACCOUNTANTS
A PROFESSIONAL ASSOCIATION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Partners
Longview Apartments, L.P.
Humboldt, Kansas
We have audited the accompanying balance sheet of Longview Apartments, L.P. (a
Kansas limited partnership) as of December 31, 1993 and the related statements
of loss, partners' equity and cash flows for the year then ended. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Longview Apartments, L.P. as of
December 31, 1993, and the results of its operations and its cash flows for the
year then ended in conformity with generally accepted accounting principles.
/s/Braunsdorf, Carlson and Clinkinbeard
Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
TOPEKA, KANSAS
January 29, 1994
<PAGE>
[Letterhead]
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BCC
Braunsdorf, Carlson and Clinkinbeard
CERTIFIED PUBLIC ACCOUNTANTS
A PROFESSIONAL ASSOCIATION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Partners
Missouri Rural Housing of Oak Grove, L.P.
Oak Grove, Missouri
We have audited the accompanying balance sheet of Missouri Rural Housing of Oak
Grove, L.P. (a Missouri limited partnership), as of December 31, 1995 and the
related statements of loss, partners' equity and cash flows for the year then
ended. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Missouri Rural Housing of Oak
Grove, L.P. as of December 31, 1995, and the results of its operations and its
cash flows for the year then ended in conformity with generally accepted
accounting principles.
/s/Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
TOPEKA, KANSAS
February 9, 1996
<PAGE>
[Letterhead]
[LOGO]
BCC
Braunsdorf, Carlson and Clinkinbeard
CERTIFIED PUBLIC ACCOUNTANTS
A PROFESSIONAL ASSOCIATION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Partners
Missouri Rural Housing of Oak Grove, L.P.
Oak Grove, Missouri
We have audited the accompanying balance sheet of Missouri Rural Housing of Oak
Grove, L.P. (a Missouri limited partnership), as of December 31, 1993 and the
related statements of loss, partners' equity and cash flows for the year then
ended. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Missouri Rural Housing of Oak
Grove, L.P. as of December 31, 1993, and the results of its operations and its
cash flows for the year then ended in conformity with generally accepted
accounting principles.
/s/Braunsdorf, Carlson and Clinkinbeard
Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
TOPEKA, KANSAS
February 11, 1994
<PAGE>
[Letterhead]
[LOGO]
BCC
Braunsdorf, Carlson and Clinkinbeard
CERTIFIED PUBLIC ACCOUNTANTS
A PROFESSIONAL ASSOCIATION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Partners
Smithville Rural Housing, A Limited Partnership
Wayne, Nebraska
We have audited the accompanying balance sheet of Smithville Rural Housing, A
Limited Partnership (a Missouri limited partnership), RECD Case No:
29-024-480975973 as of December 31, 1995 and the related statements of loss,
partners' equity and cash flows for the year then ended. These financial
statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Smithville Rural Housing, A Limited
Partnership as of December 31, 1995, and the results of its operations and its
cash flows for the year then ended in conformity with generally accepted
accounting principles.
/s/Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
TOPEKA, KANSAS
February 7, 1996
<PAGE>
[Letterhead]
[LOGO]
BCC
Braunsdorf, Carlson and Clinkinbeard
CERTIFIED PUBLIC ACCOUNTANTS
A PROFESSIONAL ASSOCIATION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Partners
Smithville Rural Housing, A Limited Partnership
Wayne, Nebraska
We have audited the accompanying balance sheet of Smithville Rural Housing, A
Limited Partnership (a Missouri limited partnership), as of December 31, 1993,
and the related statements of loss, partners' equity and cash flows for the year
then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Smithville Rural Housing, A Limited
Partnership as of December 31, 1993, and the results of its operations and its
cash flows for the year then ended in conformity with generally accepted
accounting principles.
/s/Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
TOPEKA, KANSAS
February 12, 1994
<PAGE>
[Letterhead]
[LOGO]
BCC
Braunsdorf, Carlson and Clinkinbeard
CERTIFIED PUBLIC ACCOUNTANTS
A PROFESSIONAL ASSOCIATION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Partners
Westgate Associates I, L.P.
Perryville, Arkansas
We have audited the accompanying balance sheet of Westgate Associates I, L.P. (a
Missouri limited partnership), FmHA Case No: 03-053-431477863 as of December 31,
1995 and the related statements of loss, partners' equity and cash flows for the
year then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Westgate Associates I, L.P. as of
December 31, 1995, and the results of its operations and its cash flows for the
year then ended in conformity with generally accepted accounting principles.
/s/Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
TOPEKA, KANSAS
February 6, 1996
<PAGE>
[Letterhead]
[LOGO]
BCC
Braunsdorf, Carlson and Clinkinbeard
CERTIFIED PUBLIC ACCOUNTANTS
A PROFESSIONAL ASSOCIATION
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Partners
Westgate Associates I, L.P.
Perryville, Arkansas
We have audited the accompanying balance sheet of Westgate Associates I, L.P. (a
Missouri limited partnership), as of December 31, 1993 and the related
statements of loss, partners' equity and cash flows for the year then ended.
These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position of Westgate Associates I, L.P. as of
December 31, 1993, and the results of its operations and its cash flows for the
year then ended in conformity with generally accepted accounting principles.
/s/Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
TOPEKA, KANSAS
January 29, 1994
<PAGE>
[Letterhead]
[LOGO]
Suby, Von Haden
& Associates, S.C.
CERTIFIED PUBLIC ACCOUNTANTS
Business and Management Consultants
INDEPENDENT AUDITOR'S REPORT
To the Partners
Tucson Trails Limited Partnership I
Madison, Wisconsin
We have audited the accompanying balance sheets of Tucson Trails Limited
Partnership I, as of December 31, 1995 and 1994 and the related statements of
loss, partners' equity and cash flows for the years then ended. These financial
statements are the responsibility of the partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred above present fairly, in all
material respects, the financial position of Tucson Trails Limited Partnership I
as of December 31, 1995 and 1994, and the results of its operations, changes in
partners' equity, and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
/s/Suby, Von Haden & Associates, S.C.
January 15, 1996
<PAGE>
[Letterhead]
[LOGO]
Suby, Von Haden
& Associates, S.C.
CERTIFIED PUBLIC ACCOUNTANTS
Business and Management Consultants
INDEPENDENT AUDITOR'S REPORT
To the Partners
Tucson Trails Limited Partnership I
Madison, Wisconsin
We have audited the accompanying balance sheets of Tucson Trails Limited
Partnership I, as of December 31, 1994 and 1993, and the related statements of
loss, partners' equity and cash flows for the years then ended. These financial
statements are the responsibility of the partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred above present fairly, in all
material respects, the financial position of Tucson Trails Limited Partnership I
as of December 31, 1994 and 1993, and the results of its operations, changes in
partners' equity, and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
/s/Suby, Von Haden & Associates, S.C.
January 25, 1995
<PAGE>
[Letterhead]
[LOGO]
Suby, Von Haden
& Associates, S.C.
CERTIFIED PUBLIC ACCOUNTANTS
Business and Management Consultants
INDEPENDENT AUDITOR'S REPORT
To the Partners
Tucson Trails Limited Partnership II
Madison, Wisconsin
We have audited the accompanying balance sheets of Tucson Trails Limited
Partnership II, as of December 31, 1995 and 1994 and the related statements of
loss, partners' equity and cash flows for the years then ended. These financial
statements are the responsibility of the partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred above present fairly, in all
material respects, the financial position of Tucson Trails Limited Partnership
II as of December 31, 1995 and 1994, and the results of its operations, changes
in partners' equity, and its cash flows for the years then ended in conformity
with generally accepted accounting principles.
/s/Suby, Von Haden & Associates, S.C.
January 15, 1996
<PAGE>
[Letterhead]
[LOGO]
Suby, Von Haden
& Associates, S.C.
CERTIFIED PUBLIC ACCOUNTANTS
Business and Management Consultants
INDEPENDENT AUDITOR'S REPORT
To the Partners
Tucson Trails Limited Partnership II
Madison, Wisconsin
We have audited the accompanying balance sheets of Tucson Trails Limited
Partnership II, as of December 31, 1994 and 1993, and the related statements of
loss, partners' equity and cash flows for the years then ended. These financial
statements are the responsibility of the partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred above present fairly, in all
material respects, the financial position of Tucson Trails Limited Partnership
II as of December 31, 1994 and 1993, and the results of its operations, changes
in partners' equity, and its cash flows for the years then ended in conformity
with generally accepted accounting principles.
/s/Suby, Von Haden & Associates, S.C.
January 25, 1995
<PAGE>
[Letterhead]
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PATTERSON & WINNINGTON
PROFESSIONAL ASSOCIATION
CERTIFIED PUBLIC ACCOUNTANTS
To the Partners of
Walker Woods Partners, L.P.
Dover, Delware 19901
INDEPENDENT AUDITOR'S REPORT
We have audited the accompanying balance sheets of Walker Woods Partners, L.P.
as of December 31, 1995 and 1994 and the statements of income, cash flows and
owners' equity and for the years then ended. These financial statements are the
responsibility of the company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred above present fairly, in all
material respects, the financial position of Walker Woods Partners, L.P. as of
December 31, 1995 and 1994, and the results of its operations and its cash flows
and owners' equity for the years then ended in conformity with generally
accepted accounting principles.
/s/Patterson & Winnington, P.A.
Patterson & Winnington, P.A.
Dover, Delaware
February 15, 1996
<PAGE>
[Letterhead]
[LOGO]
PATTERSON & WINNINGTON
PROFESSIONAL ASSOCIATION
CERTIFIED PUBLIC ACCOUNTANTS
To the Partners of
Walker Woods Partners, L.P.
Dover, Delware 19901
INDEPENDENT AUDITOR'S REPORT
We have audited the accompanying balance sheets of Walker Woods Partners, L.P.
as of December 31, 1994 and 1993 and the statements of income, cash flows and
owners' equity and for the years then ended. These financial statements are the
responsibility of the company's management. Our responsibility is to express an
opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred above present fairly, in all
material respects, the financial position of Walker Woods Partners, L.P. as of
December 31, 1994 and 1993, and the results of its operations and its cash flows
and owners' equity for the years then ended in conformity with generally
accepted accounting principles.
/s/Patterson & Winnington, P.A.
Patterson & Winnington, P.A.
Dover, Delaware
February 24, 1995
<PAGE>
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Coopers
& Lybrand
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of
Waterfront Limited Partnership:
We have audited the accompanying balance sheet (on DHCR Form No.: HAA-77.2) of
Waterfront Limited Partnership, DHCR No.: UDC-13 as of December 31, 1995 and the
related statements of income and expenses (on DHCR Form No. HAA-77-3a),
partners' (deficiency) and cash flows as of December 31, 1995. These financial
statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit. The financial statements of Waterfront Limited Partnership, DHCR No.:
UDC-13 as of December 31, 1994 were audited by other auditors whose report
thereon dated January 31, 1995 expressed an unqualified opinion on those
financial statements.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provide a reasonable basis for
our opinion.
In our opinion, the 1995 financial statements referred to above present fairly,
in all material respects, the financial position of Waterfront Limited
Partnership, DHCR No.: UDC-13, as of December 31, 1995, and the results of its
operations, changes in partners' (deficiency) and cash flows for the year then
ended in conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the
Partnership will continue as a going concern. As discussed in Note 7 to the
financial statements, the Partnership has experienced recurring operating losses
and working capital deficiencies that raise substantial doubt about its ability
to continue as a going concern. Management's plan in regard to these matters are
also described in Note 7. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.
In accordance with Government Auditing Standards, we have also issued a report
dated February 6, 1996 on our consideration of Waterfront Limited Partnership's
internal control structure and a report dated February 6, 1996 on its compliance
with laws and regulations.
/s/Coopers & Lybrand L.L.P
Boston, Massachusetts
February 6, 1996
<PAGE>
[Letterhead]
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Reznick Fedder & Silverman
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Partners of
Waterfront Limited Partnership:
We have audited the accompanying balance sheets (on DHCR Form No.: HAA-77.2) of
Waterfront Limited Partnership, as of December 31, 1994 and 1993 and the related
statements of income and expenses (on DHCR Form No. HAA-77-3), partners' deficit
and cash flows for the year ended December 31, 1994. These financial statements
are the responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Waterfront Limited Partnership,
as of December 31, 1994 and 1993, and the results of its operations, changes in
partners' deficit and cash flows for the year ended December 31, 1994, in
conformity with generally accepted accounting principles.
Our 1994 audit was made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary information on pages 19
through 42 is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information has been
subjected to the same auditing procedures applied in the audit of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/Reznick Fedder & Silverman
Boston, Massachusetts Federal Employer
February 6, 1996 Identification Number:
52-1088612
Audit Principal: Richard H. Chamberlain
<PAGE>
[Letterhead]
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BDO Seidman, LLP
Accountants and Consultants
Independent Auditors' Report
West Dade, Ltd.
(A Limited Partnership)
Miami, Florida
We have audited the accompanying balance sheet of West Dade, Ltd. (A Limited
Partnership) (FHA Project No. 066-94021) as of December 31, 1995, and the
related statements of profit and loss (HUD Form 92410), changes in partners'
capital accounts, and cash flows for the year then ended. These financial
statements are the responsibility of the management of the partnership. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position West Dade, Ltd. (FHA Project No.
066-94021) as of December 31, 1995, and the results of its operations and its
cash flows for the year then ended, in conformity with generally accepted
accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supporting schedules and data shown on pages 15
through 29 are presented for the purposes of additional analysis and is not a
required part of the basic financial statements of West Dade, Ltd. (FHA Project
No. 066-94021). Such information has been subjected to the auditing procedures
applied in the audits of the basic financial statements and, in our opinion, is
fairly stated in all material respects in relation to the financial statements
taken as a whole.
/s/BDO Seidman, LLP
Certified Public Accountants
Miami, Florida
January 26, 1996
<PAGE>
[Letterhead]
[LOGO]
BDO Seidman, LLP
Accountants and Consultants
Independent Auditors' Report
West Dade, Ltd.
(A Limited Partnership)
Miami, Florida
We have audited the accompanying balance sheet of West Dade, Ltd. (A Limited
Partnership) (FHA Project No. 066-94021) as of December 31, 1994, and the
related statements of profit and loss (HUD Form 92410), changes in partners'
capital accounts, and cash flows for the year then ended. These financial
statements are the responsibility of the management of the partnership. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position West Dade, Ltd. (FHA Project No.
066-94021) as of December 31, 1994, and the results of its operations and its
cash flows for the year then ended, in conformity with generally accepted
accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supporting schedules and data shown on pages 15
through 28 are presented for the purpose of additional analysis and is not a
required part of the basic financial statements of West Dade, Ltd. (FHA Project
No. 066-94021). Such information has been subjected to the auditing procedures
applied in the audits of the basic financial statements and, in our opinion, is
fairly stated in all material respects in relation to the financial statements
taken as a whole.
/s/BDO Seidman, LLP
Certified Public Accountants
Miami, Florida
February 13, 1995
<PAGE>
[Letterhead]
[LOGO]
BDO Seidman, LLP
Accountants and Consultants
Independent Auditors' Report
West Dade, Ltd.
(A Limited Partnership)
Miami, Florida
We have audited the accompanying balance sheet of West Dade, Ltd. (A Limited
Partnership) (FHA Project No. 066-94021) as of December 31, 1993, and the
related statements of profit and loss (HUD Form 92410), partnership capital, and
cash flows for the year then ended. These financial statements are the
responsibility of the management of the partnership. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position West Dade, Ltd. (FHA Project No.
066-94021) as of December 31, 1993, and the results of its operations and its
cash flows for the year then ended, in conformity with generally accepted
accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supporting data included in this report (shown
on pages 16 through 29) are presented for the purpose of additional analysis and
are not a required part of the basic financial statements of West Dade, Ltd.
(FHA Project No. 066-94021). Such information has been subjected to the auditing
procedures applied in the audits of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
/s/BDO Seidman, LLP
Certified Public Accountants
Miami, Florida
February 11, 1994
<PAGE>
[Letterhead]
[LOGO]
BDO Seidman, LLP
Accountants and Consultants
Independent Auditors' Report
West Dade, Ltd. II
(A Limited Partnership)
Miami, Florida
We have audited the accompanying balance sheet of West Dade, Ltd. II (A Limited
Partnership) (FHA Project No. 066-94022) as of December 31, 1995, and the
related statements of profit and loss (HUD Form 92410), changes in partners'
capital accounts, and cash flows for the year then ended. These financial
statements are the responsibility of the management of the partnership. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position West Dade, Ltd. II (FHA Project No.
066-94022) as of December 31, 1995, and the results of its operations and its
cash flows for the year then ended, in conformity with generally accepted
accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supporting schedules and data shown on pages 16
through 30 are presented for the purposes of additional analysis and is not a
required part of the basic financial statements of West Dade, Ltd. II (FHA
Project No. 066-94022). Such information has been subjected to the auditing
procedures applied in the audits of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
/s/BDO Seidman, LLP
Certified Public Accountants
Miami, Florida
January 26, 1996
<PAGE>
[Letterhead]
[LOGO]
BDO Seidman, LLP
Accountants and Consultants
Independent Auditors' Report
West Dade, Ltd. II
(A Limited Partnership)
Miami, Florida
We have audited the accompanying balance sheet of West Dade, Ltd. II (A Limited
Partnership) (FHA Project No. 066-94022) as of December 31, 1994, and the
related statements of profit and loss (HUD Form 92410), changes in partners'
capital accounts, and cash flows for the year then ended. These financial
statements are the responsibility of the management of the partnership. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position West Dade, Ltd. II (FHA Project No.
066-94022) as of December 31, 1994, and the results of its operations and its
cash flows for the year then ended, in conformity with generally accepted
accounting principles.
Our audit was made for the purpose of forming an opinion on the financial
statements taken as a whole. The supporting schedules and data shown on pages 16
to 29 are presented for the purpose of additional analysis and are not a
required part of the basic financial statements of West Dade, Ltd. II (FHA
Project No. 066-94022). Such information has been subjected to the auditing
procedures applied in the audits of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
/s/BDO Seidman, LLP
Certified Public Accountants
Miami, Florida
February 13, 1995
<PAGE>
[Letterhead]
[LOGO]
BDO Seidman, LLP
Accountants and Consultants
Independent Auditors' Report
West Dade, Ltd. II
(A Limited Partnership)
Miami, Florida
We have audited the accompanying balance sheet of West Dade, Ltd. II (A Limited
Partnership) (FHA Project No. 066-94022) as of December 31, 1993, and the
related statements of profit and loss (HUD Form 92410), changes in partners'
capital accounts, and cash flows for the year then ended. These financial
statements are the responsibility of the management of the partnership. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position West Dade, Ltd. II (FHA Project No.
066-94022) as of December 31, 1993, and the results of its operations and its
cash flows for the year then ended, in conformity with generally accepted
accounting principles.
Our audit was made for the purpose of forming an opinion on the financial
statements taken as a whole. The supporting data included in the report (shown
on pages 16 to 29) are presented for the purpose of additional analysis and are
not a required part of the basic financial statements of West Dade, Ltd. II (FHA
Project No. 066-94022). Such information has been subjected to the auditing
procedures applied in the audits of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
/s/BDO Seidman, LLP
Certified Public Accountants
Miami, Florida
February 11, 1994
<PAGE>
[Letterhead]
[LOGO]
CHAPMAN, COLLINS, AGOSTINELLI & SHAW, P.C. A Professional Corporation
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of
Wood Creek Associates
We have audited the balance sheets of Wood Creek Associates (A New York Limited
Partnership) as of December 31, 1995 and 1994, and the related statements of
operations, changes in partners' capital, and cash flows for the years then
ended. These financial statements are the responsibility of Wood Creek
Associates' management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position Wood Creek Associates as of December
31, 1995 and 1994, and the results of its operations and its cash flows for the
year then ended, in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information is presented
for the purposes of additional analysis and is not a required part of the basic
financial statements. Such information has been subjected to the auditing
procedures applied in the audits of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
/s/CHAPMAN, COLLINS, AGOSTINELLI & SHAW, P.C.
January 11, 1996
<PAGE>
[Letterhead]
[LOGO]
CHAPMAN, COLLINS, AGOSTINELLI & SHAW, P.C. A Professional Corporation
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of
Wood Creek Associates
We have audited the balance sheets of Wood Creek Associates (A New York Limited
Partnership) as of December 31, 1994 and 1993, and the related statements of
operations, changes in partners' capital, and cash flows for the years then
ended. These financial statements are the responsibility of Wood Creek
Associates' management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position Wood Creek Associates as of
December 31, 1994 and 1993, and the results of its operations and its cash flows
for the year then ended, in conformity with generally accepted accounting
principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information is presented
for the purposes of additional analysis and is not a required part of the basic
financial statements. Such information has been subjected to the auditing
procedures applied in the audits of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
/s/CHAPMAN, COLLINS, AGOSTINELLI & SHAW, P.C
January 14, 1995
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
Certified Public Accountants, Business Consultants
A Professional Corporation
INDEPENDENT AUDITORS' REPORT
To the Partners
Westwood Manor Limited Dividend Housing
Association Limited Partnership
We have audited the accompanying balance sheet of Westwood Manor Limited
Dividend Housing Association Limited Partnership as of December 31, 1995, and
the related statements of profit and loss (on HUD Form No. 92410), partners'
equity and cash flows for the year then ended. These financial statements are
the responsibility of the partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position Westwood Manor Limited Dividend
Housing Association Limited Partnership as of December 31, 1995, and the results
of its operations, the changes in partners' equity and its cash flows for the
year then ended, in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 19 though 24
is presented for the purposes of additional analysis and is not a required part
of the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the
financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued reports
dated February 2, 1996 on our consideration of Westwood Manor Limited Dividend
Housing Association Limited Partnership's internal control structure and on its
compliance with specific requirements applicable to major HUD Programs,
affirmative fair housing, and laws and regulations applicable to the financial
statements.
/s/Reznick Fedder & Silverman
Bethesda, Maryland Federal Employer
February 2, 1996 Indentification Number:
52-1088612
Audit Principal: Renee G. Scruggs
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
Certified Public Accountants, Business Consultants
A Professional Corporation
INDEPENDENT AUDITORS' REPORT
To the Partners
Westwood Manor Limited Dividend Housing
Association Limited Partnership
We have audited the accompanying balance sheet of Westwood Manor Limited
Dividend Housing Association Limited Partnership as of December 31, 1994, and
the related statements of profit and loss (on HUD Form No. 92410), partners'
equity and cash flows for the year then ended. These financial statements are
the responsibility of partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position Westwood Manor Limited Dividend
Housing Association Limited Partnership as of December 31, 1994, and the results
of its operations, the changes in partners' equity and cash flows for the year
then ended, in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 18 though 23
is presented for the purposes of additional analysis and is not a required part
of the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the
financial statements taken as a whole.
/s/Reznick Fedder & Silverman
Bethesda, Maryland Federal Employer
February 13, 1995 Indentification Number:
52-1088612
Audit Principal: Renee G. Scruggs
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
Certified Public Accountants, Business Consultants
A Professional Corporation
INDEPENDENT AUDITORS' REPORT
To the Partners
Westwood Manor Limited Dividend Housing
Association Limited Partnership
We have audited the accompanying balance sheet of Westwood Manor Limited
Dividend Housing Association Limited Partnership as of December 31, 1993, and
the related statements of profit and loss (on HUD Form No. 92410), partners'
equity and cash flows for the year then ended. These financial statements are
the responsibility of partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position Westwood Manor Limited Dividend
Housing Association Limited Partnership as of December 31, 1993, and the results
of its operations, the changes in partners' equity and cash flows for the year
then ended, in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 17 though 22
is presented for the purposes of additional analysis and is not a required part
of the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and,
in our opinion, is fairly stated in all material respects in relation to the
financial statements taken as a whole.
/s/Reznick Fedder & Silverman
Bethesda, Maryland Federal Employer
February 11, 1994 Indentification Number:
52-1088612
Audit Principal: Renee G. Scruggs
<PAGE>
[Letterhead]
[LOGO]
Pannell Kerr Forster PC
Certified Public Accountants
Independent Auditors' Report
To the Partners
Pleasant Plaza Housing Limited Partnership
We have audited the accompanying balance sheet of Pleasant Plaza Housing Limited
Partnership, MHFA Project No: 85-004-5, as of December 31, 1995, and the related
statements of loss, changes in partners' equity (deficiency) and cash flows for
the year then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position Pleasant Plaza Housing Limited
Partnership at December 31, 1995, and the results of its operations and its cash
flows for the year then ended, in conformity with generally accepted accounting
principles.
In accordance with Government Auditing Standards, we have also issued reports
dated February 9, 1996 on our consideration of Pleasant Plaza Housing Limited
Partnership's internal control structure, and a report dated February 9, 1996 on
its compliance with laws and regulations.
/s/Pannell Kerr Forster PC
February 9, 1996
<PAGE>
[Letterhead]
[LOGO]
Pannell Kerr Forster PC
Certified Public Accountants
Independent Auditors' Report
To the Partners
Pleasant Plaza Housing Limited Partnership
We have audited the accompanying balance sheet of Pleasant Plaza Housing Limited
Partnership, MHFA Project No: 85-004-5, as of December 31, 1994, and the related
statements of loss, changes in partners' equity (deficiency) and cash flows for
the year then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion the financial statements referred to above present fairly, in all
material respects, the financial position Pleasant Plaza Housing Limited
Partnership at December 31, 1994, and the results of its operations and its cash
flows for the year then ended, in conformity with generally accepted accounting
principles.
/s/Pannell Kerr Forster PC
February 10, 1995
<PAGE>
[Letterhead]
[LOGO]
Pannell Kerr Forster PC
Certified Public Accountants
Independent Auditors' Report
To the Partners
Pleasant Plaza Housing Limited Partnership
We have audited the accompanying balance sheet of Pleasant Plaza Housing Limited
Partnership, MHFA Project No: 85-004-5, as of December 31, 1993 and the related
statements of loss, changes in partners' equity (deficiency) and cash flows for
the year then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position Pleasant Plaza Housing Limited
Partnership at December 31, 1993, and the results of its operations and its cash
flows for the year then ended, in conformity with generally accepted accounting
principles.
/s/Pannell Kerr Forster PC
February 1, 1994
<PAGE>
[Letterhead]
[LOGO]
Coopers
& Lybrand
REPORT OF INDEPENDENT ACCOUNANTS
To the Partners of Shoreline Limited Partnership:
We have audited the accompanying balance sheet (on DHCR Form No.: HAA-77.2) of
Shoreline Limited Partnership, DHCR No.: UDC-03 as of December 31, 1995 and the
related statements of income and expenses (on DHCR Form No. HAA-77-3a),
partners' capital deficit and cash flows for the year then ended December 31,
1995. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit. The financial statements of Shoreline Limited
Partnership, DHCR No.: UDC-03 as of December 31, 1994 were audited by other
auditors whose report thereon dated January 28, 1995 expressed an unqualified
opinion on those financial statements.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the 1995 financial statements referred to above present fairly,
in all material respects, the financial position of Shoreline Limited
Partnership, DHCR No.: UDC-03, as of December 31, 1995, and the results of its
operations, changes in partners' capital deficit and cash flows for the year
then ended in conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the
Partnership will continue as a going concern. As discussed in Note 7 to the
financial statements, the Partnership has experienced recurring operating losses
and working capital deficiencies that raise substantial doubt about its ability
to continue as a going concern. Management's plan in regard to these matters are
also described in Note 7. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.
In accordance with Government Auditing Standards, we have also issued a report
dated February 6, 1996 on our consideration of Shoreline Limited Partnership's
internal control structure and a report dated February 6, 1996 on its compliance
with laws and regulations.
/s/Coopers & Lybrand L.L.P
Boston, Massachusetts
February 6, 1996
[LOGO]
Reznick Fedder & Silverman
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
To the Partners of
Shoreline Limited Partnership:
We have audited the accompanying balance sheets (on DHCR Form No.: HAA-77.2) of
Shoreline Limited Partnership, as of December 31, 1994 and 1993 and the related
statements of income and expenses (on DHCR Form No. HAA-77-3), partners' deficit
and cash flows for the year ended December 31, 1994. These financial statements
are the responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatements. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Shoreline Limited Partnership,
as of December 31, 1994 and 1993, and the results of its operations, changes in
partners' deficit, and its cash flows for the year ended December 31, 1994, in
conformity with generally accepted accounting principles.
Our 1994 audit was made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information on pages 18
through 41 is presented for purposes of additional analysis and is not a
required part of the basic financial statements. Such information has been
subjected to the same auditing procedures applied in the audit of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/Reznick Fedder & Silverman
Boston, Massachusetts Federal Employer
January 31, 1995 Identification Number:
52-1088612
Audit Principal: Richard H. Chamberlain
<PAGE>
[Letterhead]
[LOGO]
MILLER, MAYER, SULLIVAN & STEVENS LLP
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners Farmers Home Administration
Poplar Village, Ltd. London, Kentucky
We have audited the accompanying balance sheets of Poplar Village Ltd., (a
limited partnership) Case No. 20-048-611170806, as of December 31, 1995 and 1994
and the related statements of operations, changes in partners' equity (deficit),
and cash flows for the year then ended. These financial statements are the
responsibility of the partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Poplar Village Ltd. as of
December 31, 1995 and 1994, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.
In accordance with Government Auditing Standards, we have also issued a report
dated January 31, 1996 on our consideration of Poplar Village Ltd. 's internal
control structure and compliance with laws and regulations.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental data included in this
report is presented for purposes of additional analysis and is not a required
part of the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audits of the basic financial statements
and, in our opinion, is fairly stated in all material respects in relation to
the financial statements taken as a whole.
/s/Miller, Mayer, Sullivan, & Stevens
Lexington, Kentucky
January 31, 1996
<PAGE>
[Letterhead]
[LOGO]
MILLER, MAYER, SULLIVAN & STEVENS LLP
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners Farmers Home Administration
Poplar Village, Ltd. London, Kentucky
We have audited the accompanying balance sheet of Poplar Village Ltd., (a
limited partnership) Case No. 20-048-611170806, as of December 31, 1994 and 1993
and the related statements of operations, changes in partners' equity (deficit),
and cash flows for the years ended December 31, 1994 and 1993. These financial
statements are the responsibility of the partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the
audits to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit also includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Poplar Village Ltd. as of
December 31, 1994 and 1993, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.
The accompanying financial statements have been prepared in conformance with
instructions issued by the U.S. Department of Agriculture, Farmers Home
Administration, for borrowers and grantees.
/s/Miller, Mayer, Sullivan, & Stevens
Lexington, Kentucky
February 1, 1995
<PAGE>
[Letterhead]
[LOGO]
JOSEPH B. COHAN
& ASSOCIATES, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of
South Holyoke Housing Limited Partnership
We have audited the accompanying balance sheet of South Holyoke Housing Limited
Partnership as of December 31, 1995 and the related statements of income,
changes in partners' equity (deficiency), and cash flows for the year then
ended. These financial statements are the responsibility of the partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of South Holyoke Housing Limited
Partnership as of December 31, 1995, and the results of its operations, changes
in partners equity and its cash flows for the years then ended in conformity
with generally accepted accounting principles.
In accordance with Government Auditing Standards and the Consolidated Audit
Guide for Audits of HUD Programs, issued by the U.S. Department of Housing and
Urban Development, we have also issued a report dated February 7, 1996 on our
consideration of South Holyoke Housing Limited Partnership's internal control,
and reports dated February 7, 1996 on its compliance with laws and regulations
and specific requirements applicable to nonmajor HUD program transactions.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplementary
information shown on pages 11 to 21 is presented for purposes of additional
analysis and is not a required part of the basic financial statements. Such
information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and, in our opinion, is fairly stated in all
material respects in relation to the financial statements taken as a whole.
/s/Joseph B. Cohan & Assoc PC
Worcester, Massachusetts
February 7, 1996
<PAGE>
[Letterhead]
[LOGO]
JOSEPH B. COHAN
& ASSOCIATES, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of
South Holyoke Housing Limited Partnership
We have audited the accompanying balance sheet of South Holyoke Housing Limited
Partnership as of December 31, 1994 and the related statements of income,
changes in partners' equity (deficiency), and cash flows for the year then ended
(presented in a format required by the Massachusetts Housing Finance Agency).
These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of South Holyoke Housing Limited
Partnership as of December 31, 1994, and the results of its operations, changes
in partners equity (deficiency) and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that South
Holyoke Housing Limited Partnership will continue as a going concern. As
discussed in Note 4 to the financial statements, the Partnership has had
recurrent operating losses and has significant unmet liabilities. There is
substantial doubt about the Partnership's ability to continue as a going
concern. The financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
/s/Joseph B. Cohan & Assoc PC
Worcester, Massachusetts
February 7, 1995
<PAGE>
[Letterhead]
[LOGO]
JOSEPH B. COHAN
& ASSOCIATES, P.C.
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
To the Partners of
South Holyoke Housing Limited Partnership
We have audited the accompanying balance sheet of South Holyoke Housing Limited
Partnership as of December 31, 1993 and the related statements of income,
changes in partners' equity (deficiency), and cash flows for the year then ended
(presented in a format required by the Massachusetts Housing Finance Agency).
These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of South Holyoke Housing Limited
Partnership as of December 31, 1993, and the results of its operations, changes
in partners equity (deficiency) and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that South
Holyoke Housing Limited Partnership will continue as a going concern. As
discussed in Note 4 to the financial statements, the Partnership has had
recurrent operating losses and has significant unmet liabilities. There is
substantial doubt about the Partnership's ability to continue as a going
concern. The financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
/s/Joseph B. Cohan & Assoc PC
Worcester, Massachusetts
January 20, 1994
<PAGE>
[Letterhead]
[LOGO]
SPAETH & BATTERBERRY, Ltd. CPAs and Advisors
Report of Independent Certified Public Accountants
To the Partners of
Rolling Hills Associates Limited Partnership
(A Limited Partnership)
We have audited the accompanying balance sheet of Rolling Hills Associates
Limited Partnership (A Limited Partnership), HUD Project No. 046-94006-MNA, as
of December 31, 1995 and the related statements of income,partners' deficit and
cash flows for the year then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States, and the Consolidated Audit Guide for Audits of HUD
Programs ("the Guide"), issued by the U.S. Department of Housing and Urban
Development, Office of Inspector General in July, 1993. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit also
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audit provides a reasonable basis for our opinion.
As described in Note 2 to the financial statements, management has not
calculated a fair market value to support the carrying value of property and
equipment. In our opinion, generally accepted accounting principals require
management to maintain support for the carrying value of the property and
equipment or to recognize a loss on impairment of long-lived assets if the fair
value is less than the carrying value. Because of the lack of the calculation of
fair market value by management, we were unable to form an opinion regarding the
carrying value of property and equipment at December 31, 1995 (stated at
$5,030,010).
In our opinion, except for the effect on the financial statements of the
determination of any impairment of the carrying value of property and equipment
as discussed in the preceeding paragraph, such financial statements referred to
above present fairly, in all material respects, the financial position of
Rolling Hills Associates Limited Partnership (A Limited Partnership) as of
December 31, 1995, and the results of its operations and its cash flows for the
year then ended in conformity with generally accepted accounting principles.
<PAGE>
The accompanying financial statements have been prepared assuming that the
Partnership will continue as a going concern. As discussed in Note 1 to the
financial statements, the Partnership has suffered recurring losses from
operations and has a net Partnership deficit, that raises substantial doubt
about its ability to continue as a going concern. Management's plans regarding
those matters also are described in Note 1. The financial statements do not
include any adjustments that might result from the outcome of this uncertainty.
In accordance with Government Auditing Standards, we have also issued reports
dated January 26, 1996, on our consideration of the Partnership's internal
control structure and on its compliance with laws and regulations.
/s/Spaeth & Batterberry, Ltd.
Certified Public Accountants
January 26, 1996
<PAGE>
[Letterhead]
[LOGO]
Deloitte & Touche LLP
Independent Auditors' Report
To the Partners of
Rolling Hills Associates Limited Partnership
We have audited the accompanying financial statements of Rolling Hills
Associates Limited Partnership, (HUD Project No. 046-94006-MNA) (the
"Partnership"), listed in the accompanying Table of Contents, as of and for the
year ended December 31, 1994. These financial statements are the responsibility
of the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
As described in Note 2 to the financial statements, management has not obtained
a current appraisal to support the recorded amount of property and equipment. In
our opinion, generally accepted accounting principals require management to
maintain support for the recorded amount of the property and equipment or to
recognize a loss on impairment of long-lived assets if the fair value is less
than the recorded amount. The information needed to quantify the effects of this
item on the financial position and the results of operations of the Partnership
is not reasonably determinable from the information provided by management.
In our opinion, except for the effect on the financial statements of the
determination of any impairment of the recorded amount of property and equipment
as discussed in the preceeding paragraph, such financial statements referred to
above present fairly, in all material respects, the financial position of
Rolling Hills Associates Limited Partnership (HUD Project No. 046-94006-MNA) as
of December 31, 1994, and the results of its operations, its partners' equity
and its cash flows for the year then ended in conformity with generally accepted
accounting principles.
The accompanying financial statements have been prepared assuming that the
Partnership will continue as a going concern. As discussed in Note 1 to the
financial statements, the Partnership's recurring losses and mortgage default
raises substantial doubt about its ability to continue as a going concern.
Management's plans regarding those matters also are described in Note 1. The
financial statements do not include any adjustments that might result from the
outcome of this uncertainty.
<PAGE>
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in the
Table of Contents, which are the responsibility of the Partnership's management,
are presented for purposes of additional analysis and are not a required part of
the basic financial statements of Rolling Hills Associates Limited Partnership
(HUD Project No. 046-94006-MNA). Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and,
in our opinion, except for the effects on such schedules of not obtaining
support for the recorded value of property and equipment as discussed in the
third preceding paragraph, are fairly stated in all material respects in
relation to the financial statements taken as a whole.
/s/Deloitte & Touche LLP
January 13, 1995
<PAGE>
[Letterhead]
[LOGO]
Deloitte & Touche LLP
Independent Auditors' Report
To the Partners of
Rolling Hills Associates Limited Partnership
We have audited the accompanying financial statements of Rolling Hills
Associates Limited Partnership, (HUD Project No. 046-94006-MNA) (the
"Partnership"), listed in the accompanying Table of Contents, as of and for the
year ended December 31, 1993. These financial statements are the responsibility
of the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of Rolling Hills Associates Limited Partnership
(HUD Project No. 046-94006-MNA) as of December 31, 1993, and the results of its
operations, its partners' equity and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the
Partnership will continue as a going concern. As discussed in Note 1 to the
financial statements, the Partnership's recurring losses and mortgage default
raise substantial doubt about its ability to continue as a going concern.
Management's plans regarding those matters also are described in Note 1. The
financial statements do not include any adjustments that might result from the
outcome of this uncertainty. <PAGE>
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in the
Table of Contents, which are the responsibility of the Partnership's management,
are presented for purposes of additional analysis and are not a required part of
the basic financial statements of Rolling Hills Associates Limited Partnership
(HUD Project No. 046-94006-MNA). Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and,
in our opinion, are fairly stated in all material respects in relation to the
financial statements taken as a whole.
/s/Deloitte & Touche LLP
January 14, 1994
<PAGE>
[Letterhead]
[LOGO]
Coopers
& Lybrand
Report of Independent Accountants
To the Partners of Quarter Mill Associates L.P.:
We have audited the accompanying balance sheet of Quarter Mill Associates L.P.,
a Virginia Limited Partnership (the "Partnership"), FHA Project No. 051-35404,
as of December 31, 1995 and the related statements of changes in partners'
capital accounts, profit and loss, and cash flows for the year then ended. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatements. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Quarter Mill Associates L.P. as
of December 31, 1995, and the results of its operations and its cash flows for
the year then ended, in conformity with generally accepted accounting
principles.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary information included in
this report is presented for the purpose of additional analysis and is not a
required part of the basic financial statements of Quarter Mill Associates L.P.
Such information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, is fairly stated in
all material respects in relation to the financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued a report
dated January 30, 1996, on our consideration of the Partnership's internal
control structure, a report dated January 30, 1996 on its compliance with
specific requirements applicable to its major Housing and Urban Development
program and a report dated January 30, 1996 on compliance with specific
requirements applicable to affirmative fair housing.
/s/Coopers & Lybrand L.L.P
Richmond, Virginia
January 30, 1996
<PAGE>
[Letterhead]
[LOGO]
Coopers
& Lybrand
Report of Independent Accountants
To the Partners of Quarter Mill Associates L.P.:
We have audited the accompanying balance sheet of Quarter Mill Associates L.P.,
a Virginia Limited Partnership (the "Partnership"), FHA Project No. 051-35404,
as of December 31, 1994, and the related statements of changes in partners'
capital accounts, profit and loss, and cash flows for the year then ended. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatements. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Quarter Mill Associates L.P. as
of December 31, 1994, and the results of its operations and its cash flows for
the year then ended, in conformity with generally accepted accounting
principles.
/s/Coopers & Lybrand L.L.P
Richmond, Virginia
January 30, 1995
<PAGE>
[Letterhead]
[LOGO]
Coopers
& Lybrand
Report of Independent Accountants
To the Partners of Quarter Mill Associates L.P.:
We have audited the accompanying balance sheet of Quarter Mill Associates L.P.,
a Virginia Limited Partnership (the "Partnership"), FHA Project No. 051-35404,
as of December 31, 1993, and the related statements of changes in partners'
capital accounts, profit and loss, and cash flows for the year then ended. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatements. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Quarter Mill Associates L.P. as
of December 31, 1993, and the results of its operations and its cash flows for
the year then ended, in conformity with generally accepted accounting
principles.
/s/Coopers & Lybrand
Richmond, Virginia
February 2, 1994
<PAGE>
[Letterhead]
[LOGO]
MUELLER & WALLA, P.C.
Certified Public Accountants
ACCOUNTANTS' COMPILATION REPORT
The Partners
Horseshoe Bend Associates I, L.P.
St. Louis, Missouri
We have compiled the accompanying balance sheet of Horseshoe Bend Associates I,
L.P. (a limited partnership) as of December 31, 1995, and the related statements
of operations, partners' capital, and cash flows for the year then ended, in
accordance with Statements on Standards for Accounting and Review Services
issued by the American Institute of Certified Public Accountants.
A compilation is limited to presenting in the form of financial statements
information that is the representation of management. We have not audited or
reviewed the accompanying financial statements, and, accordingly, do not express
an opinion or any other form of assurance on them.
The financial statements for the year ended December 31, 1994, were audited by
us, and we expressed an unqualified opinion on them in our report dated February
6, 1995, but we have not performed any auditing procedures since that date.
/s/Mueller & Walla, P.C.
Mueller & Walla, P.C.
Certified Public Accountants
February 6, 1996
<PAGE>
[Letterhead]
[LOGO]
MUELLER & WALLA, P.C.
Certified Public Accountants
ACCOUNTANTS' COMPILATION REPORT
The Partners
Horseshoe Bend Associates I, L.P.
St. Louis, Missouri
We have compiled the accompanying balance sheet of Horseshoe Bend Associates I,
L.P. (a limited partnership) as of December 31, 1994, and the related statements
of operations, partners' capital, and cash flows for the year then ended. These
financial statements are the responsibility if the partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatements. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the 1994 financial statements referred to above present fairly,
in all material respects, the financial position of Horseshoe Bend Associates I,
L.P. as of December 31, 1994, and the results of its operations, changes in
partnerss capital and its cash flows for the year then ended, in conformity with
generally accepted accounting principles.
The 1993 financial statements were compiled by us and our report thereon, dated
January 19, 1994, stated that we did not audit or review those financial
statements and, accordingly, expressed no opinion or other form of assurance on
them
/s/Mueller & Walla, P.C.
Mueller & Walla, P.C.
Certified Public Accountants
February 6, 1995
<PAGE>
[Letterhead]
[LOGO]
MUELLER & WALLA, P.C.
Certified Public Accountants
ACCOUNTANTS' COMPILATION REPORT
The Partners
Horseshoe Bend Associates I, L.P.
St. Louis, Missouri
We have compiled the accompanying balance sheet of Horseshoe Bend Associates I,
L.P. (a limited partnership) as of December 31, 1993, and the related statements
of operations, partners' capital, and cash flows for the year then ended, in
accordance with Statements on Standards for Accounting and Review Services
issued by the American Institute of Certified Public Accountants.
A compilation is limited to presenting in the form of financial statements
information that is the representation of management. We have not audited or
reviewed the accompanying financial statements, and, accordingly, do not express
an opinion or any other form of assurance on them.
The financial statements for the year ended December 31, 1992, were audited by
other accounants, and they expressed an unqualified opinion on them in our
report dated January 21, 1993, but they have not performed any auditing
procedures since that date.
/s/Mueller & Walla, P.C.
Mueller & Walla, P.C.
Certified Public Accountants
January 19, 1994
<PAGE>
[Letterhead]
[LOGO]
Haran & Associates Ltd
CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditor's Report
BOULEVARD COMMONS LIMITED PARTNERSHIP II
Chicago, Illinois
We have audited the accompanying statement of assets, liabilities, and partners'
equity-income tax basis of BOULEVARD COMMONS LIMITED PARTNERSHIP II (a Limited
Partnership), as of December 31, 1995, and the related statements of
operations-income tax basis, changes in partners' equity-income tax basis and
cash flows-income tax basis for the year then ended. These financial statements
are the responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and generally accepted Government Auditing Standards for financial and
compliance audits issued by the Comptroller General of the United States.
These standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
As described in the notes to the financial statements, the Partnership's policy
is to prepare its financial statements on the basis of accounting used for
income tax purposes and are not intended to be presented in conformity with
generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets, liabilities, and partners' equity of
BOULEVARD COMMONS LIMITED PARTNERSHIP II at December 31, 1995, and its results
of its operations, changes in partners' equity and its cash flows for the year
then ended, on the basis of accounting described in the notes to the financial
statements.
/s/Haran & Associates Ltd
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate No. 060-002892
January 17, 1996
<PAGE>
[Letterhead]
[LOGO]
Haran & Associates Ltd
CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditor's Report
BOULEVARD COMMONS LIMITED PARTNERSHIP II
Chicago, Illinois
We have audited the accompanying statement of assets, liabilities, and partners'
equity-income tax basis of BOULEVARD COMMONS LIMITED PARTNERSHIP II (a Limited
Partnership), as of December 31, 1994, and the related statements of
operations-income tax basis, changes in partners' equity-income tax basis and
cash flows-income tax basis for the year then ended. These financial statements
are the responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and generally accepted Government Auditing Standards for financial and
compliance audits issued by the Comptroller General of the United States.
These standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provided a reasonable basis for our
opinion.
As described in the notes to the financial statements, the Partnership's policy
is to prepare its financial statements on the basis of accounting used for
income tax purposes and are not intended to be presented in conformity with
generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets, liabilities, and partners' equity of
BOULEVARD COMMONS LIMITED PARTNERSHIP II at December 31, 1994, and its
operations, changes in partners' equity and its cash flows for the year then
ended, on the basis of accounting described in the notes to the financial
statements.
/s/Haran & Associates Ltd
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate No. 060-002892
January 23, 1995
<PAGE>
[Letterhead]
[LOGO]
Haran & Associates Ltd
CERTIFIED PUBLIC ACCOUNTANTS
Independent Auditor's Report
BOULEVARD COMMONS LIMITED PARTNERSHIP II
Chicago, Illinois
We have audited the accompanying statement of assets, liabilities, and partners'
equity-income tax basis of BOULEVARD COMMONS LIMITED PARTNERSHIP II (a Limited
Partnership), as of December 31, 1993, and the related statements of
operations-income tax basis, changes in partners' equity-income tax basis and
cash flows-income tax basis for the year then ended. These financial statements
are the responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and generally accepted Government Auditing Standards for financial and
compliance audits issued by the Comptroller General of the United States.
These standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provided a reasonable basis for our
opinion.
As described in the notes to the financial statements, the Partnership's policy
is to prepare its financial statements on the basis of accounting used for
income tax purposes and are not intended to be presented in conformity with
generally accepted accounting principles.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the assets, liabilities, and partners' equity of
BOULEVARD COMMONS LIMITED PARTNERSHIP II at December 31, 1993, and its
operations, changes in partners' equity and its cash flows for the year then
ended, on the basis of accounting described in the notes to the financial
statements.
/s/Haran & Associates Ltd
HARAN & ASSOCIATES LTD
Certified Public Accountants
Wilmette, Illinois
Illinois Certificate No. 060-002892
January 25, 1994
<PAGE>
[Letterhead]
[LOGO]
SPAETH & BATTERBERRY, Ltd. CPAs and Advisors
Report of Independent Certified Public Accountants
To the Partners of
Regency Square Limited Partnership
(A Limited Partnership)
We have audited the accompanying balance sheet of Regency Square Limited
Partnership (A Limited Partnership), HUD Project No. 046-94005-MNA, as of
December 31, 1995 and the related statements of operations, partners' deficit
and cash flows for the year then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards issued by the Comptroller General of the
United States, and the Consolidated Audit Guide for Audits of HUD Programs,
issued by the U.S. Department of Housing and Urban Development, Office of
Inspector General in July, 1993. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit also includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit provides a
reasonable basis for our opinion.
As described in Note 2 to the financial statements, management has not
calculated a fair market value to support the carrying value of property and
equipment. In our opinion, generally accepted accounting principals require
management to maintain support for the carrying value of the property and
equipment or to recognize a loss on impairment of long-lived assets if the fair
value is less than the carrying value. Because of the lack of the calculation of
fair market value by management, we were unable to form an opinion regarding the
carrying value of property and equipment at December 31, 1995 (stated at
$5,221,135).
In our opinion, except for the effect on the financial statements of the
determination of any impairment of the carrying value of property and equipment
as discussed in the preceding paragraph, such financial statements referred to
above present fairly in all material respects, the financial position Regency
Square Limited Partnership (A Limited Partnership), as of December 31, 1995, and
the results of its operations and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
<PAGE>
The accompanying financial statements have been prepared assuming that the
Partnership will continue as a going concern. As discussed in Note 1 to the
financial statements, the Partnership has suffered recurring losses from
operations and has a net Partnership deficit, that raises substantial doubt
about its ability to continue as a going concern. Management's plans regarding
those matters also are described in Note 1. The financial statements do not
include any adjustments that might result from the outcome of this uncertainty.
In accordance with Government Auditing Standards, we have also issued reports
dated January 26, 1996, on our consideration of the Partnership's internal
control structure and on its compliance with laws and regulations.
/s/Spaeth & Batterberry, Ltd.
Certified Public Accountants
January 26, 1996
<PAGE>
[Letterhead]
[LOGO]
Deloitte & Touche LLP
INDEPENDENT AUDITORS' REPORT
To the Partners of
Regency Square Limited Partnership:
We have audited the accompanying financial statements of Regency Square Limited
Partnership, (HUD Project No. 046-94005-MNA) (the "Partnership"), listed in the
Table of Contents, as of and for the year ended December 31, 1994. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
As described in Note 2 to the financial statements, management has not obtained
a current appraisal to support the recorded amount of property and equipment. In
our opinion, generally accepted accounting principals require management to
maintain support for the recorded amount of the property and equipment or to
recognize a loss on impairment of long-lived assets if the fair value is less
than the recorded amounts. The information needed to quantify the effects of
this item on the financial position and results of operations of the Partnership
is not reasonably determinable from the information provided by management.
In our opinion, except for the effect on the financial statements of the
determination of any impairment of the recorded amount of property and equipment
as discussed in the preceding paragraph, such financial statements referred to
above present fairly in all material respects, the financial position Regency
Square Limited Partnership(HUD Project No. 046-94005-MNA), as of December 31,
1994, and the results of its operations and its cash flows for the year then
ended in conformity with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the
Partnership will continue as a going concern. As discussed in Note 1 to the
financial statements, the Partnership's recurring losses and default on the
mortgage raise substantial doubt about its ability to continue as a going
concern. Management's plans concerning these matters also are described in Note
1. The financial statements do not include any adjustments that might result
from the outcome of this uncertainty.
<PAGE>
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplementary schedules listed in the
Table of Contents, which are also the responsibility of the Partnership's
management, are presented for the purpose of additional analysis and is not a
required part of the basic financial statements of Regency Square Limited
Partnership(HUD Project No. 046-94005-MNA). Such information has been subjected
to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, except for the effects on such schedules of not
obtaining support for the recorded value of property and equipment as discussed
in the third preceding paragaph, are fairly stated in all material respects in
relation to the financial statements taken as a whole.
/s/Deloitte & Touche LLP
January 13, 1995
<PAGE>
[Letterhead]
[LOGO]
Deloitte & Touche LLP
INDEPENDENT AUDITORS' REPORT
To the Partners of
Regency Square Limited Partnership:
We have audited the accompanying financial statements of Regency Square Limited
Partnership, (HUD Project No. 046-94005-MNA) (the "Partnership"), listed in the
Table of Contents, as of and for the year ended December 31, 1993. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, such financial statements present fairly in all material
respects, the financial position Regency Square Limited Partnership(HUD Project
No. 046-94005-MNA), as of December 31, 1993, and the results of its operations
and its cash flows for the year then ended in conformity with generally accepted
accounting principles.
The accompanying financial statements have been prepared assuming that the
Partnership will continue as a going concern. As discussed in Note 1 to the
financial statements, the Partnership's recurring losses and default on the
mortgage raise substantial doubt about its ability to continue as a going
concern. Management's plans concerning these matters also are described in Note
1. The financial statements do not include any adjustments that might result
from the outcome of this uncertainty.
<PAGE>
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in the
Table of Contents, which are also the responsibility of the Partnership's
management, are presented for the purpose of additional analysis and is not a
required part of the basic financial statements of Regency Square Limited
Partnership(HUD Project No. 046-94005-MNA). Such information has been subjected
to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the financial statements taken as a whole.
/s/Deloitte & Touche LLP
January 14, 1994
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
Certified Public Accountants, Business Consultants
A Professional Corporation
INDEPENDENT AUDITORS' REPORT
To the Partners
Harbour View Associates (a Limited Partnership)
We have audited the accompanying balance sheet of Harbour View Associates (a
Limited Partnership), HUD Project No.: 012-36601-PM, as of December 31, 1995,
and the related statements of profit and loss (on HUD Form No. 92410), partners'
equity (deficit) and cash flows for the year then ended. These financial
statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit. The financial statements of Harbour View Associates (a Limited
Partnership) HUD project No.: 101-36601-PM as of and for the year ended December
31, 1994 were audited by other auditors whose report thereon dated February 8,
1995 expressed a qualified opinion on those statements.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
As more fully described in Note C to the financial statements, the Partnership
has not recorded certain accrued interest on the mortgage payable in the
accompanying balance sheets, statements of profit and loss and partners'
deficit, that, in our opinion, should be accrued in order to conform with
generally accepted accounting principles. If this interest were recorded,
accrued interest payable would be increased by $122,803 and partners' deficit
would be increased by $122,803, as of December 31, 1995. Additionally, the
Partnership's net loss for the year ended December 31, 1995 would be increased
by $122,803.
<PAGE>
In our opinion, except for the effects of not accruing
certain interest on the mortgage as discussed in the preceding paragraph, the
financial statements referred to above present fairly, in all material respects,
the financial position Harbour View Associates (a Limited Partnership) as of
December 31, 1995, and the results of its operations, partners' equity (deficit)
and its cash flows for the year then ended, in conformity with generally
accepted accounting principles.
The accompanying financial statements have been prepared assuming the
Partnership will continue as a going concern. As discussed in Note B to the
financial statements, the Partnership is in default of its mortgage due to
substantial losses from operations and the unauthorized withdrawal of funds by
the former managing general partner and the former managing agent of the
Partnership's property. These events raise substantial doubt about the
Partnership's ability to continue as a going concern. The General Partners' plan
regarding this matter is also described in Note B. The financial statements do
not include any adjustments that might result from the outcome of this
uncertainty.
Our audit was made for the purpose of forming an opinion on the basic financial
statements for 1995 taken as a whole. The supplemental information on pages 22
though 28 is presented for the purposes of additional analysis and is not a
required part of the basic financial statements. Such information for 1995 has
been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the financial statements taken as a whole. The
supplemental information for 1994 was audited by other auditors whose report
thereon dated February 8, 1995 express a qualified opinion.
In accordance with Government Auditing Standards, we have also issued reports
dated January 30, 1996 on our consideration of Harbour View Associates' (a
Limited Partnership) internal control structure and on its compliance with
specific requirements applicable to major HUD Programs, affirmative fair
housing, and laws and regulations applicable to the financial statements.
/s/Reznick Fedder & Silverman
Boston, Massachusetts Federal Employer
January 30, 1996 Identification Number:
52-1088612
Audit Principal: Phillip A. Weitzel
<PAGE>
[Letterhead]
[LOGO]
Coopers
& Lybrand
a professional services firm
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners
Harbour View Associates (a Limited Partnership)
We have audited the accompanying balance sheets of Harbour View Associates (the
"Partnership"), HUD Project No.: 012-36601-PM, as of December 31, 1994 and 1993,
and the related statements of profit and loss, partners' equity (deficiency) and
cash flows for the years then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
As more fully described in Note 2 to the financial statements, the Partnership
has not recorded certain accrued interest on the mortgage note payable in the
accompanying balance sheets, statements of profit and loss and partners' equity
(deficiency), that, in our opinion, should be accrued in order to conform with
generally accepted accounting principles. If this interest were recorded,
accrued interest payable would be increased by $166,857 and partners' equity
would be decreased by $166,857, as of December 31, 1994. Additionally, the
Partnership's net loss for the year ended December 31, 1994 would be increased
by $166,857.
In our opinion, except for the effects of not accruing certain interest on the
mortgage note as discussed in the preceding paragraph, the financial statements
referred to above present fairly, in all material respects, the financial
position Harbour View Associates (a Limited Partnership), HUD Project No.:
012-36601-PM, as of December 31, 1994 and 1993, and the results of its
operations and its cash flows for the years then ended, in conformity with
generally accepted accounting principles.
The accompanying financial statements have been prepared assuming the
Partnership will continue as a going concern. As discussed in Note 1 to the
financial statements, the Partnership is in default of its mortgage due to
substantial losses from operations and the unauthorized withdrawal of funds by
the former managing general partner and the former managing agent of the
Partnership's property. These events raise substantial doubt about the
Partnership's ability to continue as a going concern. The General Partners' plan
regarding this matter is also described in Note 1. The financial statements do
not include any adjustments that might result from the outcome of this
uncertainty.
/s/Coppers & Lybrand L.L.P.
Boston, Massachusetts
February 8, 1995
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN
Independent Auditor's Report
To the Partners
Bridgeport Housing Associates, Ltd.
(d/b/a Crestewood Place Apartments)
We have audited the accompanying balance sheet of Bridgeport Housing Associates,
Ltd. (a Texas Limited partnership) (d/b/a Crestwood Place Apartments), as of
December 31, 1993, and the related statements operations, partners' equity , and
cash flows for the year then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audit. The financial
statements of Bridgeport Housing Associates, Ltd. (d/b/a Crestwood Place
Apartments) as of December 31, 1992, were audited by other auditors whose report
dated January 29, 1993, expressed an unqualified opinion on those statements.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the 1993 financial statements referred to above present fairly,
in all material respects, the financial position Bridgeport Housing Associates,
Ltd. (d/b/a Crestwood Place Apartments), as of December 31, 1993, and the
results of its operations, changes in partners' equity (deficit) and its cash
flows for the year then ended, in conformity with generally accepted accounting
principles.
As described in Note 6 to the financial statements, the Partnership is in
noncompliance with FmHA loan covenants and FmHA regulations.
/s/Plante & Moran
January 12, 1994
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN
Independent Auditor's Report
To the Partners
Crown Point Housing Associates, Ltd.
We have audited the accompanying balance sheet of Crown Point Housing
Associates, Ltd. (a Texas Limited partnership), as of December 31, 1993, and the
related statements operations, partners' equity , and cash flows for the year
then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit. The financial statements of Crown Point
Housing Associates, Ltd. as of December 31, 1992, were audited by other auditors
whose report dated January 29, 1993, expressed an unqualified opinion on those
statements.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the 1993 financial statements referred to above present fairly,
in all material respects, the financial position Crown Point Housing Associates,
Ltd. at December 31, 1993, and the results of its operations, changes in
partners' equity and its cash flows for the year then ended, in conformity with
generally accepted accounting principles.
As described in Note 6 to the financial statements, the Partnership is in
noncompliance with FmHA loan covenants and FmHA regulations.
/s/Plante & Moran
January 18, 1994
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN
Independent Auditor's Report
To the Partners
Glenbrook Housing Associates, Ltd.
We have audited the accompanying balance sheet of Glenbrook Housing Associates,
Ltd. (a Texas Limited partnership), as of December 31, 1993, and the related
statements operations, partners' equity , and cash flows for the year then
ended. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit. The financial statements of Glenbrook Housing
Associates, Ltd. as of December 31, 1992, were audited by other auditors whose
report dated January 29, 1993, expressed an unqualified opinion on those
statements.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the 1993 financial statements referred to above present fairly,
in all material respects, the financial position Glenbrook Housing Associates,
Ltd. at December 31, 1993, and the results of its operations, changes in
partners' equity and its cash flows for the year then ended, in conformity with
generally accepted accounting principles.
As described in Note 6 to the financial statements, the Partnership is in
noncompliance with FmHA loan covenants and FmHA regulations.
/s/Plante & Moran
February 4, 1994
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN
Independent Auditor's Report
To the Partners
Godley Arms Housing Associates, Ltd.
We have audited the accompanying balance sheet of Godley Arms Housing
Associates, Ltd. (a Texas Limited partnership), as of December 31, 1993, and the
related statements operations, partners' equity , and cash flows for the year
then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit. The financial statements of Godley Arms
Housing Associates, Ltd. as of December 31, 1992, were audited by other auditors
whose report dated January 29, 1993, expressed an unqualified opinion on those
statements.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the 1993 financial statements referred to above present fairly,
in all material respects, the financial position Godley Arms Housing Associates,
Ltd. at December 31, 1993, and the results of its operations, changes in
partners' equity and its cash flows for the year then ended, in conformity with
generally accepted accounting principles.
As described in Note 6 to the financial statements, the Partnership is in
noncompliance with FmHA loan covenants and FmHA regulations.
/s/Plante & Moran
January 14, 1994
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN
Independent Auditor's Report
To the Partners
North Quail Run Housing Associates, Ltd.
We have audited the accompanying balance sheet of North Quail Run Housing
Associates, Ltd. (a Texas limited partnership), as of December 31, 1993, and the
related statements operations, partners' equity , and cash flows for the year
then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit. The financial statements of North Quail
Run Housing Associates, Ltd. as of December 31, 1992, were audited by other
auditors whose report dated January 29, 1993, expressed an unqualified opinion
on those statements.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the 1993 financial statements referred to above present fairly,
in all material respects, the financial position North Quail Run Housing
Associates, Ltd. at December 31, 1993, and the results of its operations,
changes in partners' equity and its cash flows for the year then ended, in
conformity with generally accepted accounting principles.
As described in Note 6 to the financial statements, the Partnership is in
noncompliance with FmHA loan covenants and FmHA regulations.
/s/Plante & Moran
January 21, 1994
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN
Independent Auditor's Report
To the Partners
Lake Dallas Housing Associates, Ltd.
(d/b/a Shady Shores Apartments)
We have audited the accompanying balance sheet of Lake Dallas Housing
Associates, Ltd. (a Texas limited partnership) (d/b/a Shady Shores Apartments),
as of December 31, 1993, and the related statements operations, partners' equity
, and cash flows for the year then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audit. The financial
statements of Lake Dallas Housing Associates, Ltd. (d/b/a Shady Shores
Apartments) as of December 31, 1992, were audited by other auditors whose report
dated January 29, 1993, expressed an unqualified opinion on those statements.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the 1993 financial statements referred to above present fairly,
in all material respects, the financial position Lake Dallas Housing Associates,
Ltd. (d/b/a Shady Shores Apartments) at December 31, 1993, and the results of
its operations, changes in partners' equity and its cash flows for the year then
ended, in conformity with generally accepted accounting principles.
As described in Note 6 to the financial statements, the Partnership is in
noncompliance with FmHA loan covenants and FmHA regulations.
/s/Plante & Moran
January 20, 1994
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN
Independent Auditor's Report
To the Partners
Eagles Nest Housing Associates, Ltd.
We have audited the accompanying balance sheet of Eagles Nest Housing
Associates, Ltd. (a Texas limited partnership), RECD Project No.
51-049-0752266596, as of December 31, 1995, and the related statements
operations, partners' equity (deficit), and cash flows for the year then ended.
These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position Eagles Nest Housing Associates,
Ltd. as of December 31, 1995, and the results of its operations, changes in
partners' equity (deficit) and its cash flows for the year then ended, in
conformity with generally accepted accounting principles.
As discussed in Note 4 to the financial statements, the Partnership has entered
into an option with a prospective purchaser for the sale of assets and transfer
of certain liabilities of the Partnership. It is presently not determinable
whether the amounts realizable from the disposition of the assets or the amounts
that RECD agrees to accept in settlement of the obligations due it will differ
materially from the amounts shown in the accompanying financial statements.
As described in Note 3 to the financial statements, the Partnership is in
noncompliance with RECD loan covenants and RECD regulations.
In accordance with Government Auditing Standards, we have also issued a report
dated January 26, 1996 on our consideration of the Partnership's internal
control structure and a report dated January 26, 1996 on its compliance with
laws and regulations.
/s/Plante & Moran LLP
January 26, 1996
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN
Independent Auditor's Report
To the Partners
Eagles Nest Housing Associates, Ltd.
We have audited the accompanying balance sheet of Eagles Nest Housing
Associates, Ltd. (a Texas limited partnership), as of December 31, 1993, and the
related statements operations, partners' equity , and cash flows for the year
then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit. The financial statements of Eagles Nest
Housing Associates, Ltd. as of December 31, 1992, were audited by other auditors
whose report dated January 29, 1993, expressed an unqualified opinion on those
statements.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the 1993 financial statements referred to above present fairly,
in all material respects, the financial position Eagles Nest Housing Associates,
Ltd. at December 31, 1993, and the results of its operations, changes in
partners' equity and its cash flows for the year then ended, in conformity with
generally accepted accounting principles.
As described in Note 6 to the financial statements, the Partnership is in
noncompliance with FmHA loan covenants and FmHA regulations.
/s/Plante & Moran
January 25, 1994
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN, LLP
Independent Auditor's Report
To the Partners
Loan Oak Housing Associates, Ltd.
We have audited the accompanying balance sheet of Loan Oak Housing Associates,
Ltd. (a Texas Limited partnership), RECD Project No. 51-052-752266417, as of
December 31, 1995, and the related statements operations, partners' equity
(deficit), and cash flows for the year then ended. These financial statements
are the responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position Loan Oak Housing Associates, Ltd.
at December 31, 1995, and the results of its operations, changes in partners'
equity (deficit), and its cash flows for the year then ended, in conformity with
generally accepted accounting principles.
Subsequent to December 31, 1995, as discussed in Note 4 to the financial
statements, the Partnership has entered into an option with a prospective
purchaser for the sale of assets and transfer of certain liabilities of the
Partnership. It is presently not determinable whether the amounts realizable
from the disposition of the assets or the amounts that RECD agrees to accept in
settlement of the obligations due it will differ materially from the amounts
shown in the accompanying financial statements.
As described in Note 3 to the financial statements, the Partnership is in
noncompliance with RECD loan covenants and RECD regulations.
In accordance with Government Auditing Standards, we have also issued a report
dated January 30, 1996 on our consideration of the Partnership's internal
control structure and a report dated January 30, 1996 on its compliance with
laws and regulations.
/s/Plante & Moran LLP
January 30, 1996
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN
Independent Auditor's Report
To the Partners
Lone Oak Housing Associates, Ltd.
We have audited the accompanying balance sheet of Lone Oak Housing Associates,
Ltd. (a Texas limited partnership), as of December 31, 1993, and the related
statements operations, partners' equity , and cash flows for the year then
ended. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit. The financial statements of Lone Oak Housing
Associates, Ltd. as of December 31, 1992, were audited by other auditors whose
report dated January 29, 1993, expressed an unqualified opinion on those
statements.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the 1993 financial statements referred to above present fairly,
in all material respects, the financial position Lone Oak Housing Associates,
Ltd. at December 31, 1993, and the results of its operations, changes in
partners' equity and its cash flows for the year then ended, in conformity with
generally accepted accounting principles.
As described in Note 6 to the financial statements, the Partnership is in
noncompliance with FmHA loan covenants and FmHA regulations.
/s/Plante & Moran
January 26, 1994
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN, LLP
Independent Auditor's Report
To the Partners
Sherwood Arms Housing Associates, Ltd.
We have audited the accompanying balance sheet of Sherwood Arms Housing
Associates, Ltd. (a Texas Limited partnership), RECD Project No.
50-026-752266412, as of December 31, 1995, and the related statements
operations, partners' equity (deficit), and cash flows for the year then ended.
These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position Sherwood Arms Housing Associates,
Ltd. at December 31, 1995, and the results of its operations, changes in
partners' equity (deficit), and its cash flows for the year then ended, in
conformity with generally accepted accounting principles.
Subsequent to December 31, 1995, as discussed in Note 4 to the financial
statements, the Partnership has entered into an option with a prospective
purchaser for the sale of assets and transfer of certain liabilities of the
Partnership. It is presently not determinable whether the amounts realizable
from the disposition of the assets or the amounts that RECD agrees to accept in
settlement of the obligations due it will differ materially from the amounts
shown in the accompanying financial statements.
As described in Note 3 to the financial statements, the Partnership is in
noncompliance with RECD loan covenants and RECD regulations.
In accordance with Government Auditing Standards, we have also issued a report
dated February 6, 1996 on our consideration of the Partnership's internal
control structure and a report dated February 6, 1996 on its compliance with
laws and regulations.
/s/Plante & Moran LLP
February 6, 1996
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN, LLP
Independent Auditor's Report
To the Partners
Pilot Point Housing Associates, Ltd.
We have audited the accompanying balance sheet of Pilot Point Housing
Associates, Ltd. (a Texas Limited partnership), as of December 31, 1995, and the
related statements operations, partners' equity (deficit), and cash flows for
the year then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position Pilot Point Housing Associates,
Ltd. at December 31, 1995, and the results of its operations, changes in
partners' equity (deficit), and its cash flows for the year then ended, in
conformity with generally accepted accounting principles.
As discussed in Note 4 to the financial statements, the Partnership has entered
into an option with a prospective purchaser for the sale of assets and transfer
of certain liabilities of the Partnership. It is presently not determinable
whether the amounts realizable from the disposition of the assets or the amounts
that RECD agrees to accept in settlement of the obligations due it will differ
materially from the amounts shown in the accompanying financial statements.
As described in Note 3 to the financial statements, the Partnership is in
noncompliance with RECD loan covenants and RECD regulations.
In accordance with Government Auditing Standards, we have also issued a report
dated January 30, 1996 on our consideration of the Partnership's internal
control structure and a report dated January 30, 1996 on its compliance with
laws and regulations.
/s/Plante & Moran LLP
January 30, 1996
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN
Independent Auditor's Report
To the Partners
Pilot Point Housing Associates, Ltd.
We have audited the accompanying balance sheet of Pilot Point Housing
Associates, Ltd. (a Texas limited partnership), as of December 31, 1993, and the
related statements operations, partners' equity , and cash flows for the year
then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit. The financial statements of Pilot Point
Housing Associates, Ltd. as of December 31, 1992, were audited by other auditors
whose report dated January 29, 1993, expressed an unqualified opinion on those
statements.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the 1993 financial statements referred to above present fairly,
in all material respects, the financial position Pilot Point Housing Associates,
Ltd. at December 31, 1993, and the results of its operations, changes in
partners' equity and its cash flows for the year then ended, in conformity with
generally accepted accounting principles.
As described in Note 6 to the financial statements, the Partnership is in
noncompliance with FmHA loan covenants and FmHA regulations.
/s/Plante & Moran
January 18, 1994
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN, LLP
Independent Auditor's Report
To the Partners
Willowick Housing Associates, Ltd.
We have audited the accompanying balance sheet of Willowick Housing Associates,
Ltd. (a Texas Limited partnership), RECD Project No. 49-049-75227086, as of
December 31, 1995, and the related statements operations, partners' equity
(deficit), and cash flows for the year then ended. These financial statements
are the responsibility of the Partnership's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position Willowick Housing Associates, Ltd.
at December 31, 1995, and the results of its operations, changes in partners'
equity (deficit), and its cash flows for the year then ended, in conformity with
generally accepted accounting principles.
As discussed in Note 5 to the financial statements, the Partnership has entered
into an option with a prospective purchaser for the sale of assets and transfer
of certain liabilities of the Partnership. It is presently not determinable
whether the amounts realizable from the disposition of the assets or the amounts
that RECD agrees to accept in settlement of the obligations due it will differ
materially from the amounts shown in the accompanying financial statements.
As described in Note 4 to the financial statements, the Partnership is in
noncompliance with RECD loan covenants and RECD regulations.
In accordance with Government Auditing Standards, we have also issued a report
dated February 8, 1996 on our consideration of the Partnership's internal
control structure and a report dated February 8, 1996 on its compliance with
laws and regulations.
/s/Plante & Moran LLP
February 8, 1996
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN
Independent Auditor's Report
To the Partners
Willowick Housing Associates, Ltd.
We have audited the accompanying balance sheet of Willowick Housing Associates,
Ltd. (a Texas limited partnership), as of December 31, 1993, and the related
statements operations, partners' equity , and cash flows for the year then
ended. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit. The financial statements of Willowick Housing
Associates, Ltd. as of December 31, 1992, were audited by other auditors whose
report dated January 29, 1993, expressed an unqualified opinion on those
statements.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the 1993 financial statements referred to above present fairly,
in all material respects, the financial position Willowick Housing Associates,
Ltd. at December 31, 1993, and the results of its operations, changes in
partners' equity and its cash flows for the year then ended, in conformity with
generally accepted accounting principles.
As described in Note 6 to the financial statements, the Partnership is in
noncompliance with FmHA loan covenants and FmHA regulations.
/s/Plante & Moran
January 13, 1994
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN
Independent Auditor's Report
To the Partners
West Hallettsville Housing Associates, Ltd.
We have audited the accompanying balance sheet of West Hallettsville Housing
Associates, Ltd. (a Texas limited partnership), as of December 31, 1993, and the
related statements operations, partners' equity , and cash flows for the year
then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit. The financial statements of West
Hallettsville Housing Associates, Ltd. as of December 31, 1992, were audited by
other auditors whose report dated January 29, 1993, expressed an unqualified
opinion on those statements.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the 1993 financial statements referred to above present fairly,
in all material respects, the financial position West Hallettsville Housing
Associates, Ltd. at December 31, 1993, and the results of its operations,
changes in partners' equity and its cash flows for the year then ended, in
conformity with generally accepted accounting principles.
As described in Note 6 to the financial statements, the Partnership is in
noncompliance with FmHA loan covenants and FmHA regulations.
/s/Plante & Moran
January 28, 1994
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN, LLP
Independent Auditor's Report
To the Partners
One Main Place Housing Associates, Ltd.
We have audited the accompanying balance sheet of One Main Place Housing
Associates, Ltd. (a Texas limited partnership), as of December 31, 1993, and the
related statements operations, partners' equity , and cash flows for the year
then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit. The financial statements of One Main
Place Housing Associates, Ltd. as of December 31, 1992, were audited by other
auditors whose report dated January 29, 1993, expressed an unqualified opinion
on those statements.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the 1993 financial statements referred to above present fairly,
in all material respects, the financial position One Main Place Housing
Associates, Ltd. at December 31, 1993, and the results of its operations,
changes in partners' equity and its cash flows for the year then ended, in
conformity with generally accepted accounting principles.
As described in Note 6 to the financial statements, the Partnership is in
noncompliance with FmHA loan covenants and FmHA regulations.
/s/Plante & Moran
January 13, 1994
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN
Independent Auditor's Report
To the Partners
Sherwood Arms Housing Associates, Ltd.
We have audited the accompanying balance sheet of Sherwood Arms Housing
Associates, Ltd. (a Texas limited partnership), as of December 31, 1993, and the
related statements operations, partners' equity , and cash flows for the year
then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit. The financial statements of Sherwood
Arms Housing Associates, Ltd. as of December 31, 1992, were audited by other
auditors whose report dated January 29, 1993, expressed an unqualified opinion
on those statements.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the 1993 financial statements referred to above present fairly,
in all material respects, the financial position Sherwood Arms Housing
Associates, Ltd. at December 31, 1993, and the results of its operations,
changes in partners' equity and its cash flows for the year then ended, in
conformity with generally accepted accounting principles.
As described in Note 6 to the financial statements, the Partnership is in
noncompliance with FmHA loan covenants and FmHA regulations.
/s/Plante & Moran
January 15, 1994
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN, LLP
Independent Auditor's Report
To the Partners
Division of Boston Financial
Texas Properties Limited Partnership III
(d/b/a Lakeway Colony)
We have audited the accompanying balance sheet of Division of Boston Financial
Texas Properties Limited Partnership III (a Massachusetts limited Partnership)
(d/b/a Lakeway Colony), RECD Project No. 49-061-0043253081, as of December 31,
1995, and the related statements operations, partners' equity (deficit), and
cash flows for the year then ended. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller General
of the United States. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free
of material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position Division of Boston Financial Texas
Properties Limited Partnership III (a Massachusetts limited Partnership) (d/b/a
Lakeway Colony) at December 31, 1995, and the results of its operations, changes
in partners' equity, and cash flows for the year then ended, in conformity with
generally accepted accounting principles.
As discussed in Note 5 to the financial statements, the Partnership has entered
into an option with a prospective purchaser for the sale of assets and transfer
of certain liabilities of the Partnership. It is presently not determinable
whether the amounts realizable from the disposition of the assets or the amounts
that RECD agrees to accept in settlement of the obligations due it will differ
materially from the amounts shown in the accompanying financial statements.
In accordance with Government Auditing Standards, we have also issued a report
dated March 14, 1996 on our consideration of the Partnership's internal control
structure and a report dated March 14, 1996 on its compliance with laws and
regulations.
/s/Plante & Moran LLP
March 14, 1996
<PAGE>
[Letterhead]
[LOGO]
Braunsdorf, Carlson and Clinkinbeard
Certified Public Accountants
A Professional Association
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
To the Partners
Wayne Senior Housing, A Limited Partnership
Wayne, Nebraska
We have audited the accompanying balance sheet of Wayne Senior Housing, A
Limited Partnership (a Kansas limited Partnership) FmHA Case No.
32-090-481008237, as of December 31, 1994, and the related statements of loss,
partners' equity and cash flows for the year ended December 31, 1994. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position Wayne Senior Housing, A Limited
Partnership as of December 31, 1994, and the results of its operations, changes
in partners' equity, and cash flows for the year then ended, in conformity with
generally accepted accounting principles.
/s/Braunsdorf, Carlson, and Clinkinbeard
Braunsdorf, Carlson, and Clinkinbeard, CPA's, P.A.
Topeka, Kansas
February 13, 1995
<PAGE>
[Letterhead]
[LOGO]
Coopers & Lybrand
Certified Public Accountants
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of
Willow Lake Partners II, L.P.
(a Limited Partnershhip)
We have audited the accompanying balance sheet of Willow Lake Partners II, L.P.
(a Limited Partnershhip), as of December 31, 1993, and the related statements of
operations, partners' capital and cash flows for the year then ended. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position Willow Lake Partners II, L.P. (a
Limited Partnershhip) as of December 31, 1993, and the results of its operations
and its cash flows for the year then ended, in conformity with generally
accepted accounting principles.
/s/Coopers & Lybrand
Boston, Massachusetts
February 17, 1994
<PAGE>
[Letterhead]
[LOGO]
Deloitte & Touche LLP
INDEPENDENT AUDITORS' REPORT
To the Partners of Pennsylvania Housing Finance Agency
River Front Apartments Limited 2101 North Front Street
Partnership P.O. Box 8029
Washington, D.C. Harrisburg, PA
We have audited the accompanying statements of financial position of River Front
Apartments Limited Partnership, A Limited Partnership, PHFA Project No. R458-8E
as of December 31, 1995 and 1994, and the related statements of profit and loss
(on HUD Form No. 92410), partners' equity (deficit), and cash flows for the
years then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of River Front Apartments Limited Partnership
at December 31, 1995 and 1994, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.
/s/Deloitte & Touche LLP
January 31, 1996
<PAGE>
[Letterhead]
[LOGO]
Deloitte & Touche LLP
INDEPENDENT AUDITORS' REPORT
To the Partners of Pennsylvania Housing Finance Agency
River Front Apartments Limited 2101 North Front Street
Partnership P.O. Box 8029
Washington, D.C. Harrisburg, PA
We have audited the accompanying statements of financial position of River Front
Apartments Limited Partnership, A Limited Partnership, PHFA Project No. R458-8E
as of December 31, 1994 and 1993, and the related statements of profit and loss
(on HUD Form No. 92410), partners' equity (deficit), and cash flows for the
years then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements present fairly in all material
respects, the financial position River Front Apartments Limited Partnership, as
of December 31, 1994 and 1993, and the results of its operations and its cash
flows for the years then ended in conformity with generally accepted accounting
principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information, as referred
to in the Table of Contents, is presented for the purposes of additional
analysis and is not a required part of the basic financial statements. This
additional information is the responsibility of the Partnership's management.
Such information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in our opinion, the additional
information is fairly stated in all material respects in relation to the
financial statements taken as a whole.
/s/Deloitte & Touche LLP
January 11, 1995
<PAGE>
[Letterhead]
[LOGO]
Deloitte & Touche LLP
INDEPENDENT AUDITORS' REPORT
To the Partners of Pennsylvania Housing Finance Agency
Susquehanna View Limited 2101 North Front Street
Partnership P.O. Box 8029
Washington, D.C. Harrisburg, PA
We have audited the accompanying statements of financial position of Susquehanna
View Limited Partnership, A Limited Partnership, PHFA Project No. R451-8E as of
December 31, 1995 and 1994, and the related statements of profit and loss (on
HUD Form No. 92410), partners' equity (deficit), and cash flows for the years
then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit also includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements present fairly in all material
respects, the financial position of Susquehanna View Limited Partnership, as of
December 31, 1995 and 1994, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.
/s/Deloitte & Touche LLP
January 17, 1996
<PAGE>
[Letterhead]
[LOGO]
Deloitte & Touche LLP
INDEPENDENT AUDITORS' REPORT
To the Partners of Pennsylvania Housing Finance Agency
Susquehanna View Limited 2101 North Front Street
Partnership P.O. Box 8029
Washington, D.C. Harrisburg, PA
We have audited the accompanying statements of financial position of Susquehanna
View Limited Partnership, A Limited Partnership, PHFA Project No. R451-8E as of
December 31, 1994 and 1993, and the related statements of profit and loss (on
HUD Form No. 92410), partners' equity (deficit), and cash flows for the years
then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards and Government Auditing Standards issued by the Comptroller General of
the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements present fairly in all material
respects, the financial Susquehanna View Limited Partnership, as of December 31,
1994 and 1993, and the results of its operations and its cash flows for the
years then ended in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information, as referred
to in the Table of Contents, is presented for the purposes of additional
analysis and is not a required part of the basic financial statements. This
additional information is the responsibility of the Partnership's management.
Such information has been subjected to the
<PAGE>
Susquehanna View Limited
Partnership Page 2
auditing procedures applied in the audit of the basic financial statements and,
in our opinion, the additional information is fairly stated in all material
respects in relation to the financial statements taken as a whole.
/s/Deloitte & Touche LLP
January 16, 1995
<PAGE>
[Letterhead]
[LOGO]
Braunsdorf, Carlson and Clinkinbeard
Certified Public Accountants
A Professional Association
INDEPENDENT ACCOUNTANTS' COMPILATION REPORT
We are enclosing the following compiled financial statements for the attached
list of properties
1. Balance sheet as of December 31, 1995.
2. Statement of income for the current period ending December 31, 1995 and the
twelve months ending December 31, 1995.
These statements have been compiled by us in accordance with Statements on
Standards for Accounting and Review Services issued by the American Institute of
Certified Public Accountants. A compilation is limited to presenting in the form
of financial statements information that is the representation of management. We
have not audited or reviewed the accompanying financial statements and,
accordingly do not express an opinion or any other form of assurance on them.
Management has elected to omit substantially all of the disclosures and the
statement of cash flows required by generally accepted accounting principals. If
the omitted disclosures were included in the financial statements, they might
influence the user's conclusions about the company's financial position, results
of operations, and cash flows. Accordingly, these financial statements are not
designed for those who are not informed of such matters.
Sincerely,
/s/Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
Topeka, Kansas
February 28, 1996
<PAGE>
Billings Family Housing
Ellsworth Senior Housing
Garden Plain Senior Housing
Rossville Senior Housing
Prairieland of Satanta
Prairieland of Syracuse
Wayne Senior Housing
<PAGE>
[Letterhead]
[LOGO]
Braunsdorf, Carlson and Clinkinbeard
Certified Public Accountants
A Professional Association
INDEPENDENT ACCOUNTANTS' COMPILATION REPORT
We are enclosing the following compiled financial statements for the attached
list of properties
1. Balance sheet as of December 31, 1994.
2. Statement of income for the current period ending December 31, 1994 and the
twelve months ending December 31, 1994.
These statements have been compiled by us in accordance with Statements on
Standards for Accounting and Review Services issued by the American Institute of
Certified Public Accountants. A compilation is limited to presenting in the form
of financial statements information that is the representation of management. We
have not audited or reviewed the accompanying financial statements and,
accordingly do not express an opinion or any other form of assurance on them.
Management has elected to omit substantially all of the disclosures and the
statement of cash flows required by generally accepted accounting principals. If
the omitted disclosures were included in the financial statements, they might
influence the user's conclusions about the company's financial position, results
of operations, and cash flows. Accordingly, these financial statements are not
designed for those who are not informed of such matters.
Sincerely,
/s/Braunsdorf, Carlson and Clinkinbeard
Braunsdorf, Carlson and Clinkinbeard, CPA's, P.A.
Topeka, Kansas
February 28, 1995
<PAGE>
Altheimer Associates I, L.P
Billings Family Housing
Blair Senior Housing
Bolivar Senior Housing, L.P.
Ellsworth Senior
Garden Plain Senior
La Center Associates, L.P.
Lamar Associates, L.P.
Longview Apartments, L.P.
Missouri Rural Housing of Oak Grove, L.P.
Mulburry Associates I, L.P.
Prairieland of Satanta
Prairieland of Syracuse
Rossville Senior
Smithsville Senior
Strafford II Rural
Westgate Associates I, L.P. Winona Associates I, L.P.
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1996
<PERIOD-END> MAR-31-1996
<CASH> 268,040
<SECURITIES> 158,967
<RECEIVABLES> 41,497<F1>
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 156,597<F2>
<PP&E> 12,818,153
<DEPRECIATION> 000
<TOTAL-ASSETS> 44,371,622<F3>
<CURRENT-LIABILITIES> 5,756,906
<BONDS> 000
000
000
<COMMON> 000
<OTHER-SE> 34,554,893
<TOTAL-LIABILITY-AND-EQUITY> 44,371,622<F4>
<SALES> 000
<TOTAL-REVENUES> 2,380,294<F5>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 3,669,367<F6>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 754,480
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 1,279,618
<CHANGES> 000
<NET-INCOME> (5,440,551)<F7>
<EPS-PRIMARY> ($53.86)
<EPS-DILUTED> 000
<FN>
<F1>Included in receivables: Accounts receivable $40,757, Interest receivable
$740
<F2>Included in current assets: Prepaid insurance $35,930, Tenant security
deposits $67,011, Other current assets $53,656
<F3>Included in total assets: Investments in Local Limited Partnerships
$30,216,554, Replacement reserves $168,335, Deferred escrow $450,000, Deferred
expenses, net $93,479
<F4>Included in Total Liabilities and Equity: Due to
affiliate $323,046, Deferred acquisition fees payable $450,000, General Partner
Advances $200,000, $2,744,825 of long-term debt, Minority interest in Local
Limited Partnerships $341,952.
<F5>Total revenue includes: Rental $2,143,530,
Investment $85,858, Other $150,906.
<F6>Included in Other Expenses: Asset
Management fees $447,110, General and Administrative $841,989, Bad debts
$54,351, Property Management fees $84,715, Rental operations, exclusive of
depreciation $1,488,464, $754,480, Depreciation $573,735 and Amortization
$179,003.
<F7>Net loss reflects: equity in losses of Local Limited Partnerships
of $4,771,769, loss on liquidation of interests in Local Limited Partnerships
$12,349, Loss on transfer of real estate $286,672, a gain on liquidation of real
estate $123,971 and minority interest in loss of Local Limited Partnerships
$270,203.
</FN>
</TABLE>
