June 27, 1997
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Boston Financial Qualified Housing Tax Credits L.P. IV
Form 10-K Annual Report for Year Ended March 31, 1997
File Number 0-19765
Gentlemen:
Pursuant to the requirements of Section 15(d) of the Securities Exchange Act of
1934, there is filed herewith one copy of the subject report.
Very truly yours,
\s\ Veronica Curioso
Veronica Curioso
Assistant Controller
QH410K-K
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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, 1997 0-19765
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(Exact name of registrant as specified in its charter)
Massachusetts 04-3044617
(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.
$67,653,000 as of March 31, 1997
<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 Amendments No. 1 through 3 to the
Registration Statement, File # 33-26394 Part I, Item 1
Acquisition Reports Part I, Item 1
Prospectus - Sections Entitled:
"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. IV
(A Limited Partnership)
ANNUAL REPORT ON FORM 10-K
FOR THE YEAR ENDED MARCH 31, 1997
TABLE OF CONTENTS
PART I Page No.
Item 1 Business K-3
Item 2 Properties K-6
Item 3 Legal Proceedings K-13
Item 4 Submission of Matters to a
Vote of Security Holders K-13
PART II
Item 5 Market for the Registrant's Units
and Related Security Holder Matters K-13
Item 6 Selected Financial Data K-14
Item 7 Management's Discussion and Analysis of
Financial Condition and Results
of Operations K-15
Item 8 Financial Statements and Supplementary Data K-18
Item 9 Changes in and Disagreements on Accounting
and Financial Disclosure K-18
PART III
Item 10 Directors and Executive Officers
of the Registrant K-19
Item 11 Management Remuneration K-21
Item 12 Security Ownership of Certain Beneficial
Owners and Management K-21
Item 13 Certain Relationships and Related
Transactions K-21
PART IV
Item 14 Exhibits, Financial Statement Schedules
and Reports on Form 8-K K-24
SIGNATURES K-25
<PAGE>
PART I
Item 1. Business
Boston Financial Qualified Housing Tax Credits L.P. IV (the "Partnership") is a
limited partnership formed on March 30, 1989 under the Revised Uniform Limited
Partnership Act of the Commonwealth of Massachusetts. The Partnership's
partnership agreement ("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 $67,653,000 ("Gross
Proceeds"), net of discounts of $390,000, through the sale of 68,043 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 January 31, 1990.
The Partnership is engaged solely in the business of real estate investment.
Affiliates of the Managing General Partner, BF Leawood, Inc. and BF Texas
Limited Partnership assumed the Local General Partner interests in Leawood Manor
Associates, L.P. ("Leawood") and twelve other Local Limited Partnerships in
which the Partnership invests (the "Texas Partnerships"), respectively. As a
result, the Partnership is deemed to have control over Leawood and the Texas
Partnerships 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 under Item 7 Management's
Discussion and Analysis of Financial Condition and Results of Operations, BF
Texas Limited Partnership has relinquished control of two of the Texas
Partnerships, and the Managing General Partner has transferred all of the assets
of five Texas Partnerships subject to their liabilities to unaffiliated
entities. Therefore, as of March 31, 1997, six of the Texas Partnerships are
presented in combined form. The Partnership will retain its interest in one of
the Texas Partnerships (Gateway Village).
The Partnership has invested as a limited partner in other limited partnerships
("Local Limited Partnerships") which own and operate residential apartment
complexes ("Properties"), most 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") added to the Internal Revenue Code (the "Code") by
the Tax Reform Act of 1986. 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.
Table A on the following page lists the properties owned by the 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 three post-effective amendments to the Registration
Statement) listed in Part IV of this Report (collectively, the "Acquisition
Reports"); such descriptions are incorporated herein by this reference.
<PAGE>
<TABLE>
TABLE A
SELECTED LOCAL LIMITED
PARTNERSHIP DATA
(Unaudited)
<CAPTION>
Properties Owned by Local
Limited Partnerships* Date Interest
Location Acquired
--------------------------- --------------------- ---------------
<S> <C> <C>
Brookscrossing Atlanta, GA 06/30/89
Dorsett Philadelphia, PA 10/20/89
Willow Ridge Prescott, AZ 08/28/89
Allentown Town House Allentown, PA 12/26/89
Prince Street Tower Lancaster, PA 03/13/89
Sencit Towne House Shillington, PA 12/26/89
Pinewood Terrace** Rusk, TX 12/27/89
Justin Place** Justin, TX 12/27/89
Grandview** Grandview, TX 12/27/89
Hampton Lane Buena Vista, GA 12/20/89
Audobon Boston, MA 12/22/89
Bent Tree** Jackson, TX 12/27/89
Royal Crest** Bowie, TX 12/27/89
Nocona Terrace** Nocona, TX 12/27/89
Pine Manor** Jacksboro, TX 12/27/89
Hilltop** Rhome, TX 12/27/89
Valley View** Valley View, TX 12/27/89
Bentley Court Columbia, SC 12/26/89
Orocovix IV Orocovix, PR 12/30/89
Leawood Manor Leawood, KS 12/29/89
Bryson Place** Bryson, TX 12/28/89
Carolina Woods Greensboro, NC 01/31/90
Mayfair Mansion Washington, DC 03/21/90
Oakview Square Chesterfield, MI 03/22/89
Whitehills II Howell, MI 04/21/90
Orchard View Gobles, MI 04/29/90
Lakeside Square Chicago, IL 05/17/90
Lincoln Green Old Town, ME 03/21/90
Brown Kaplan Boston, MA 07/01/90
Greentree Village Greenville, GA 07/06/90
Canfield Crossing Milan, MI 08/20/90
Findlay Market Cincinnati, OH 08/15/90
Seagraves** Seagraves, TX 11/28/90
West Pine Findlay, PA 12/31/90
BK Apartments Jamestown, ND 12/01/90
46th & Vincennes Chicago, IL 03/29/91
Gateway ** Azle, TX 06/24/91
</TABLE>
* The Partnership's interest in profits and losses of each Local Limited
Partnership arising from normal operations is 99%, with the exception of Leawood
Manor which is 89%. Profits and losses arising from sale or refinancing
transactions are allocated in accordance with the respective Local Limited
Partnership Agreements.
** As of March 31, 1997, the Managing General Partner has transferred all
of the assets of five of the Texas Partnerships subject to their liabilities to
unaffiliated entities. Seagraves Garden, Grandview Terrace, Pecan Hill
Apartments, Hilltop Apartments and Bent Tree Apartments were transferred prior
to March 31, 1997. Negotiations between the Managing General Partner, the Lender
and prospective buyers have continued through the past quarter resulting in a
revised disposition plan. The new plan will transfer title to six of the
remaining seven Texas Partnerships (Pinewood Terrace, Justin Place, Royal Crest,
<PAGE>
Nocona, Valley View and Pine Manor) to unaffiliated buyers. If negotiations
continue as expected, this transfer will occur during the second or third
quarter of calendar 1997. In the meantime, operating deficits continue to be
funded from Partnership Reserve. The Partnership will retain its interest in
Gateway Village.
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 operations revenues and expenses to the 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.
With the exception of Leawood Manor and the Texas Partnerships, 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, 1997, 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: Sencit Townhouse L.P., Allentown Townhouse L.P. and Prince
Street Ltd. representing 10.71%, have NCHP as Local General Partner; Greentree
Village L.P. and Buena Vista Properties L.P. representing .58%, have Norsouth
Corporation as Local General Partner; and Whitehills Apartments Co., L.P., Milan
Apartments Co., L.P., and Gobles LDHA, L.P. representing 1.07%, have First
Centrum 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 apartment complexes in the same areas. The continued success of the
Partnership will depend on many outside 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 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 Partnerships 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 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 IV, Inc., the Managing General Partner
of the Partnership. The other General Partner of the Partnership is Arch Street
IV 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
Partner, for certain expenses and overhead costs. A complete discussion of the
management of the Partnership is set forth in Item 10 of this Report.
<PAGE>
Item 2. Properties
The Partnership owns limited partnership interests in thirty-two 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 99% with
the exception of Leawood which is 89%.
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 Service, 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.
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
Total Total Paid Mtge. Loans
Local Limited Partnership Number of committed at through March payable at Occupancy at
Property Name Apt. Units March 31, 1997 31, 1997 December 31, Type of March 31,
Property Location 1996 Subsidy* 1997
- ---------------------------- ------------ ---------------- --------------- ----------------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Brookscrossing Apartments, L.P.
A Limited Partnership
Brookscrossing
Atlanta, GA 224 $3,363,776 $3,363,776 $5,546,557 None 95%
Willow Ridge Development Co.
Limited Partnership
Willow Ridge
Prescott, AZ 134 2,125,000 2,125,000 3,104,568 None 97%
Leawood Associates, L.P.**
A Limited Partnership
Leawood Manor
Leawood, KS 254 7,497,810 7,497,810 7,521,294 None 97%
Dorsett Limited Partnership
Dorsett Apartments
Philadelphia, PA 58 2,482,107 2,482,107 2,330,297 Section 8 86%
Allentown Towne House, L.P.
Towne House Apartments
Allentown, PA 160 1,589,403 1,589,403 6,643,518 Section 8 99%
Prince Street Towers L.P.
A Limited Partnership
Lancaster House North
Lancaster, PA 201 1,996,687 1,996,687 8,105,645 Section 8 100%
Sencit Towne House L.P.
Sencit Towne House
Shillington, PA 201 1,996,687 1,996,687 7,338,591 Section 8 99%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Total Total Paid Mtge. Loans
Local Limited Partnership Number of committed at through March payable at Occupancy at
Property Name Apt. Units March 31, 1997 31, 1997 December 31, Type of March 31,
Property Location 1996 Subsidy* 1997
- ---------------------------- ------------ ---------------- --------------- ----------------- ----------- ---------
<S> <C> <C> <C> <C> <C> <C>
East Rusk Housing Associates, LTD
Pinewood Terrace Apartments
Rusk, TX (A)** 84 269,515 269,515 1,043,248 FmHA 19%
Gateway Housing Associates, LTD
Gateway Village Garden Apts.
Azle, TX(A)** 50 251,326 251,326 1,133,081 FmHA 98%
Justin Housing Associates, LTD
Justin Place
Justin, TX(A)** 24 91,565 91,565 334,416 FmHA 33%
Grandview Housing Associates, LTD
Grandview
Grandview, TX(A)
Buena Vista Limited Partnership
Hampton Lane (Buena Vista)
Buena Vista, GA 24 153,474 153,474 718,754 FmHA 96%
Audobon Group, L.P. A
Massachusetts Limited
Partnership
Audobon
Boston, MA 37 2,640,419 2,640,419 3,161,989 Section 8 99%
Bent Tree Housing Associates (A)
Bent Tree
Jacksboro, TX
Bowie Housing Associates, LTD (A)
Royal Crest (Bowie)
Bowie, TX 48 174,657 174,657 686,283 FmHA 35%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Total Total Paid Mtge. Loans
Local Limited Partnership Number of committed at through March payable at Occupancy at
Property Name Apt. Units March 31, 1997 31, 1997 December 31, Type of March 31,
Property Location 1996 Subsidy* 1997
- --------------------------- ------------ ---------------- --------------- ----------------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Nocona Terrace Housing
Associates, LTD (A)
Nocona Terrace
Nocona, TX 36 141,629 141,629 546,756 FmHA 19%
Pine Manor Housing Associates
Pine Manor(A)**
Jacksboro, TX 36 97,536 97,536 575,167 FmHA 35%
Rhome Housing Associates, LTD (A)
Hilltop Apartments
Rhome, TX
Valley View Housing Associates,
LTD
Valley View (A)**
Valley View, TX 24 90,230 90,230 366,778 FmHA 21%
Bentley Court II Limited
Partnership
Bentley Court
Columbia, SC 273 5,000,000 5,000,000 6,960,496 None 95%
Bryson Housing Associates, LTD(A)
Pecan Hill Apartments
Bryson, TX
Orocovix Limited Dividend
Partnership, S.E.
Orocovix IV
Orocovix, PR 40 361,444 361,444 1,648,381 FmHA 100%
Carolina Woods Associates, L.P.
Carolina Woods
Greensboro, NC 48 1,000,000 1,000,000 1,163,956 None 96%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Total Total Paid Mtge. Loans
Local Limited Partnership Number of committed at through March payable at Occupancy at
Property Name Apt. Units March 31, 1997 31, 1997 December 31, Type of March 31,
Property Location 1996 Subsidy* 1997
- ---------------------------- ------------ ---------------- --------------- ----------------- -------- ------------
<S> <C> <C> <C> <C> <C> <C>
Kenilworth Associates LTD
A Limited Partnership
Mayfair Mansions
Washington, DC 569 4,250,000 4,250,000 21,481,995 Section 8 97%
Oakview Square Limited
Partnership
A Michigan Limited
Partnership
Oakview Square
Chesterfield, MI 192 5,299,652 5,299,652 6,075,155 None 95%
Whitehills II Apartments
Company
Limited Partnership
Whitehills II
Howell, MI 24 169,276 169,276 755,846 None 92%
Gobles Limited Dividend
Housing Associates
Orchard View
Gobles, MI 24 162,022 162,022 740,261 FmHA 96%
Lakeside Square Limited
Partnership
An Illinois Limited
Partnership
Lakeside Square
Chicago, IL 308 3,978,813 3,978,813 6,333,106 Section 8 99%
Lincoln Green Associates, A
Limited Partnership
Lincoln Green
Old Towne, ME 30 352,575 352,575 1,246,052 Section 8 100%
Brown Kaplan Limited
Partnership
Brown Kaplan
Boston, MA 60 3,024,663 3,024,663 7,687,075 Loans 95%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Total Total Paid Mtge. Loans
Local Limited Partnership Number of committed at through March payable at Occupancy at
Property Name Apt. Units March 31, 1997 31, 1997 December 31, Type of March 31,
Property Location 1996 Subsidy* 1997
- ------------------------ ------------ ---------------- --------------- ----------------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Green Tree Village Limited
Partnership
A Limited Partnership
Green Tree Village
Greenville, GA 24 145,437 145,437 659,724 FmHA 100%
Milan Apartments Company
Limited Partnership
Canfield Crossing
Milan, MI 32 230,500 230,500 1,019,473 FmHA 100%
Findlay Market Limited
Partnership
Findlay Market
Cincinnati, OH 49 1,313,595 1,313,595 1,709,250 Section 8 84%
Seagraves Housing Associates,
LTD. (A)
Seagraves
Seagraves, TX
West Pine Associates
West Pine
Findlay, PA 38 313,445 313,445 1,680,626 FmHA 95%
B-K Apartments Limited
Partnership
BK Apartments
Jamestowne, ND 48 290,000 290,000 920,000 Section 8 85%
46th and Vincennes Limited
Partnership
46th and Vincennes
Chicago, IL 28 751,120 751,120 1,314,127 Section 8 93%
------ ------------ ------------ ---------
3,382 51,604,363 51,604,363 110,552,465
======
Less: **Combined Entities 8,297,982 8,297,982 10,973,984
------------ ------------ ----------
$43,306,381 $43,306,381 $99,578,481
=========== ========== ===========
</TABLE>
* FmHA This subsidy, which is authorized under Section 515 of
the Housing Act of 1949, can be one or a combination of many
different types. 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, 1997, the Managing General Partner has
transferred all of the assets of five of the Texas
Partnerships subject to their liabilities. Six of the seven
remaining Texas Partnerships will be transferred after March
31, 1997. The Partnership will retain its interest in Gateway
Village. The five transferred Texas Partnerships had total
capital contributions and mortgage payable amounts of $453,665
and $1,989,223, respectively, as of the transfer dates.
<PAGE>
Two Local Limited Partnerships invested in by the Partnership each represent
more than 10% of the total capital contributions made to Local Limited
Partnerships by the Partnership. The first is Leawood Associates, L.P. ("Leawood
Manor"). Leawood Manor, representing 14.4% of the total original investment in
Local Limited Partnerships, is a 254-unit apartment complex located in Leawood,
Kansas. Leawood Manor is financed by a first mortgage at 8%, with an accrual
rate of 11.75% and monthly payments of $77,850 plus 95% of the net cash flows as
defined by the mortgage agreement. On July 10, 1999, the reduced payment rate is
scheduled to increase to 10%. The mortgage note matures in July 2006 and is
collateralized by the property.
The other Local Limited Partnership which represents more than 10.0% of the
total capital contributions to be made to Local Limited Partnerships is Oakview
Square Limited Partnership ("Oakview Square"). Oakview Square, representing
10.2% of the total original investment in Local Limited Partnerships, is a
192-unit apartment complex located in Chesterfield, Michigan. Oakview Square is
financed by a first mortgage loan at 9.75% interest and a 35 year term. The loan
matures in April 2010.
The duration of the leases for occupancy in the Properties described above is
six to twelve months. The Managing General Partner believes the Properties
described herein are adequately covered by insurance.
Item 3. Legal Proceedings
The Partnership is not a party to any pending legal or administrative
proceeding, and to the best of its knowledge, no legal or administrative
proceeding is threatened or contemplated against it.
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, 1997, there were 3,976 record holders of Units of the
Partnership.
Cash distributions, when made, are paid annually. No cash distributions were
paid for the years ended March 31, 1997, 1996 and 1995.
<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 Combined 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,
1997 1996 1995 1994 1993
<S> <C> <C> <C> <C> <C>
Revenue (C) $ 2,099,229 $ 2,633,694 $ 2,506,970 $ 1,765,316 $ 1,638,645
Equity in losses of Local Limited
Partnerships (C) (2,747,270) (2,957,339) (3,688,171) (4,055,382) (4,424,849)
Net loss (5,503,780) (5,046,594) (6,661,959) (5,954,828) (5,535,165)
Per Limited Partnership Unit (80.08) (73.43) (96.93) (86.64) (80.53)
Cash, cash equivalents and
marketable securities (C) 1,344,743 1,843,216 2,494,846 3,906,462 5,150,766
Investments in Local Limited
Partnerships, at original cost(E) 55,991,829 55,991,829 55,991,829 55,681,819 54,491,149
Total assets (A) 36,632,053 41,744,078 50,243,398 57,149,940 55,690,519
Total liabilities (C) 14,948,056 14,550,850 17,903,195 18,115,404 10,920,493
Cash Distribution - - - - -
Per Limited Partnership Unit - - - - -
Other Data:
Passive loss (6,118,380) (6,562,619) (6,695,703) (7,069,544) (6,424,623)
Per Limited Partnership Unit (B) (89.02) (95.48) (97.42) (102.86) (93.48)
Portfolio income 511,058 627,741 401,044 703,566 812,886
Per Limited Partnership Unit (B) 7.44 9.13 5.84 10.24 11.83
Low-Income Housing Tax Credit 9,364,677 9,536,996 9,432,363 9,467,376 9,434,164
Per Limited Partnership Unit (B) 135.81 138.31 136.78 137.30 136.81
Recapture of Low-Income Housing
Tax Credits (B) 179,372 - - - -
Per Limited Partnership Unit (B) 2.61 - - - -
Local Limited Partnership interests
owned at end of period (D) 32 34 37 37 37
</TABLE>
(A) Total assets include the net investment in 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 Credits per
Limited Partnership Unit for 1997, 1996, 1995, 1994 and 1993 represents the
amount allocated to individual investors. Corporate investors were allocated
$138.59, $141.11, $139.60, $140.08 and $139.63 per Unit in 1997, 1996, 1995,
1994 and 1993, respectively.
(C) Revenue for the years ended March 31, 1997, 1996, 1995, 1994 and 1993
includes $1,941,455, $2,522,643, $2,354,347, $1,621,789 and $1,298,589,
respectively, of total revenue from Leawood Manor and the Texas Partnerships.
Equity in losses of Local Limited Partnerships for the years ended March 31,
1997, 1996, 1995, 1994 and 1993 does not include $1,024,295, $1,165,223,
$1,199,409, $1,063,808 and $779,606, respectively, of losses from Leawood Manor
and the Texas Partnerships that have been combined with the Partnership's loss.
Cash, cash equivalents and marketable securities at March 31, 1997, 1996, 1995,
1994 and 1993 includes $71,426, $107,545, $250,751, 145,627 and $91,061,
respectively, of cash and cash equivalents from Leawood Manor and the Texas
Partnerships. Total liabilities for the years ended March 31, 1997, 1996, 1995,
1994 and 1993 includes $14,529,452, $14,368,374, $17,756,853, $18,051,535 and
$10,837,789, respectively, of liabilities from Leawood Manor and the Texas
Partnerships (other than the Texas Partnerships described in (D) below).
(D) As of March 31, 1997, the Managing General Partner has transferred all
of the assets of five of the Texas Partnerships, subject to their liabilities,
to unaffiliated entities. Six of the seven remaining Texas Partnerships will be
transferred after March 31, 1997.
(E) Investment in Local Limited Partnerships include capital contributions to
Local Limited Partnerships that have been combined for financial reporting
purposes, as well as capital contributions that have been made to Local Limited
Partnerships that have subsequently bee transferred.
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 a decrease in cash and
cash equivalents of $126,298 from $414,451 at March 31, 1996 to $288,153 at
March 31, 1997. This decrease is attributable to cash used for operations,
advances to Local Limited Partnerships, repayment of mortgage principal and
purchase of rental property and equipment by the Combined Entities. These
decreases were offset by proceeds from sales and maturities of marketable
securities in excess of purchases of marketable securities and cash
distributions received from Local Limited Partnerships.
The Managing General Partner initially designated 4% 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. Funds totaling approximately $1,084,000 have been
withdrawn from Reserves account to pay legal fees relating to various property
issues. This amount includes approximately $1,029,000 for the Texas
Partnerships. To date, Reserve funds in the amount of approximately $304,000
have been used to make additional capital contributions to a Local Limited
Partnership. To date, the Partnership has used approximately $886,000 of
operating funds to replenish Reserves. At March 31, 1997, approximately
$1,204,000 of cash, cash equivalents and marketable securities has been
designated as Reserves. Management believes that the investment income earned on
the Reserves, along with cash distributions received from Local Limited
Partnerships, to the extent available, will be sufficient to fund the
Partnership's ongoing operations. 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 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's management might deem
it in its best interests to voluntarily provide such funds in order to protect
its investment. To date, in addition to the $1,084,000 noted above, the
Partnership has also advanced approximately $657,000 to the Texas Partnerships
to fund operating deficits. Approximately $358,000 has also been advanced to two
other Local Limited Partnerships.
Since the Partnership invests as a limited partner, the Partnership has no
contractual obligation to provide additional funds to Local Limited Partnerships
beyond its specified investment. Thus, at March 31, 1997, the Partnership had no
contractual or other obligation to any Local Limited Partnership which had not
been paid or provided for.
Cash Distributions
No cash distributions were made in the years ended March 31, 1997, 1996 and
1995. In prior years, cash available for distribution was derived from the
interest earned on the temporary investment of the Partnership's funds prior to
the funds being contributed to the Partnership's Local Limited Partnership
investments. At March 31, 1997, all of the required capital contributions have
been made to Local Limited Partnerships. The interest that is earned on the
funds held in reserves, as well as any cash distributions received from Local
Limited Partnerships will first be used to fund operations of the Partnership.
Based on the results of 1996 operations, the Local Limited Partnerships will not
distribute significant amounts of cash to the Partnership because such amounts
may 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.
<PAGE>
Results of Operations
1997 versus 1996
The Partnership's results of operations for the fiscal year ended March 31, 1997
resulted in a net loss of $5,503,780 as compared to a net loss of $5,046,594 for
the same period in 1996. The increase in net loss is primarily attributable to
the recognition of a provision for valuation of rental property by certain Texas
Partnerships, a decrease in rental revenue and an increase in bad debt expense.
These increases to net loss are partially offset by a decrease in equity in
losses of Local Limited Partnerships, decreases in general and administrative,
rental operations, depreciation and interest expense items. The decrease in
equity in losses of Local Limited Partnerships is due to an increase in losses
not recognized by the Partnership for Local Limited Partnerships whose
cumulative equity in losses and cumulative distributions exceeded its total
investment in those partnerships. This decrease is partially offset by an
increase in equity in losses from one Local Limited Partnership due to a
cancellation of indebtedness income recognized during its year ended December
31, 1995 by this Local Limited Partnership which is included in equity in losses
of Local Limited Partnerships. The decrease in general and administrative
expenses is due to a decrease in expenses paid on behalf of the Texas
Partnerships. The decreases in rental revenue and rental operations,
depreciation and interest expenses were due to the exclusion of seven of the
Texas Partnership's operations which were previously combined. Please refer to
the section entitled "Property Discussions" included in this Item. The increase
in bad debt expense is the result of a reserve for advances made to one Local
Limited Partnership.
Low-Income Housing Tax Credits
The 1996, 1995 and 1994 Tax Credits per Unit were $135.81, $138.31 and $136.78,
respectively, for individual investors. The 1996, 1995 and 1994 Tax Credits per
Unit were $138.59, $141.11 and $139.60, respectively, for corporate investors.
Tax Credits are not available for a Property until the Property is placed in
service and its apartment units are occupied by qualified tenants. In the first
year the Tax Credits are claimed, the allowable credit amount is determined
using an averaging convention to reflect the number of months that apartment
units comprising the qualified basis were occupied by qualified tenants during
the year. To the extent that the full amount of the annual credit is not
allocated in the first year, an additional credit equal to the difference is
available in the 11th taxable year.
As of March 31, 1997, each of the thirty-two properties have been placed in
service and their apartment units are qualified. The credits, which have
stabilized, are expected to remain the same for the next two years and then they
are expected to decrease as properties reach the end of the ten year credit
period. The Partnership has transferred five of the Texas Partnerships and is in
the process of transferring six of the remaining seven Texas Partnerships. There
will be a nominal recapture of tax credits since the remaining Texas
Partnerships which will be transferred only represent 1.59% of the Partnerships'
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.
1996 versus 1995
The Partnership's results of operations for the fiscal year ended March 31, 1996
resulted in a net loss of $5,046,594 as compared to a net loss of $6,661,959 for
the same period in 1995. The decrease in net loss is primarily attributable to a
decrease in equity in losses of Local Limited Partnerships, an increase in
investment revenue and a decrease in general and administrative and property
management fee expenses. These changes are partially offset by $69,047, the
anticipated loss resulting from the transfer of seven of the Texas Partnerships.
This amount is included in the provision for valuation of investment in Local
Limited Partnerships. The increase in investment revenue is due to increased
returns earned on investments in securities during fiscal year 1996. The
decrease in general and administrative expenses is caused by a decrease in
expenses paid on behalf of the Texas Partnerships. The decrease in property
management fees is due to a provision in the Combined Entities' workout
agreements which prohibited this fee from being charged.
<PAGE>
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 events or changes in circumstances indicate that the
carrying amount may not be recoverable. The Partnership has adopted the new
standard for its year ending March 31, 1997, however, it has not had a
significant effect on the financial position or results of operations. The Texas
Partnerships had an impairment loss during the year ended December 31, 1996
because of the adoption of this new standard.
Property Discussions
Prior to the transfer of five of the Texas Partnerships, Limited Partnership
interests had been acquired in thirty-seven Local Limited Partnerships which are
located in thirteen states, Washington, D.C. and Puerto Rico. Fifteen of the
properties with 1,440 apartments were newly constructed, and twenty-two of the
properties with 2,061 apartments were rehabilitated. Most of the Local Limited
Partnerships have stable operations, operating at break-even or generating
operating cash flow.
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
Partners to increase operating income, reduce expenses or refinance the debt at
lower interest rates in order to improve cash flow.
Audobon Apartments, located in Massachusetts, is operating below break-even
primarily due to decreased rental subsidy assistance, increased operating
expenses and adverse market conditions. During the first quarter, the management
agent was replaced with a local unaffiliated firm. The Local General Partner has
also obtained preliminary approval for additional operating subsidies from the
state and released from lender escrows to fund certain cash deficits. The
Managing General Partner continues to work with the lender to develop a
satisfactory workout. It is likely that a workout would require an advance from
Partnership reserves.
Despite improving occupancy at BK Apartments, located in Jamestown, North
Dakota, the property continues to generate operating deficits. The lender
recently issued a default notice and is threatening to foreclose. Affiliates of
the Managing General Partner are negotiating with the Local General Partner and
lender to cure the mortgage default and complete required capital repairs. The
Managing General Partner made a proposal to the bondholder for its
consideration. If negotiations are not successful, it is likely that a
foreclosure will occur prior to the end of the second quarter which will result
in recapture and the allocation of taxable income to the Partnership.
Bentley Court, located in Columbia, South Carolina, continues to generate
significant deficits despite the July 1996 debt refinancing. As we previously
reported, an agreement was set up with the lender which enabled an affiliate of
the Managing General Partner to become an additional General Partner and a
substitute management agent, subject to lender approval, with the right to take
control of the property, if it becomes necessary. In addition, the agreement
stipulates that if the Local Limited Partnership defaults on the agreement, the
lender has the right to remove the management company. The Managing General
Partner will continue to monitor property operations closely. Operating deficits
are currently being funded by the Local General Partner.
At Findlay Market (Cincinnati, Ohio), reconstruction of the property units
damaged by fire was completed in December 1996, and lease-up is currently
underway. As previously reported, in order to reconstruct the units, the
Partnership agreed to advance up to $345,000 to help cover the funding shortfall
between the insurance proceeds, lender funding and a City grant. To date, the
Partnership has advanced approximately $294,000 of this amount. However, the
property continues to generate operating deficits which caused the default of
the first mortgage. At this juncture, the lender is not amenable to a cure of
the mortgage and is expected to exercise its rights to foreclose on the mortgage
during the second quarter 1997. Despite these indications, the Managing and
Local General Partners continue to negotiate with the lender in hopes of
averting the foreclosure. A foreclosure of this property will result in
recapture of tax credits and the allocation of taxable income to the
Partnership.
<PAGE>
The Managing General Partner has transferred all of the assets of five of the
Texas Partnerships, subject to their liabilities, to unaffiliated entities. The
transfers of Grandview Terrace Apartments, Pecan Hills Apartments, Seagraves
Garden Apartments, Hilltop Apartments and Bent Tree Housing were effective
February 21, 1996, February 29, 1996, March 8, 1996, June 6, 1996 and November
20, 1996, respectively. The transfers of the remaining 6 remaining properties
are expected to take place in 1997.
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 a nominal amount of recapture of tax credits, since the Texas
Partnerships represent only 3% of the Partnership's tax credits
Inflation and Other Economic Factors
Inflation had no material impact on the operations or financial condition of the
Partnership for the years ended March 31, 1997, 1996, and 1995.
Since some of the Properties benefit from some sort 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 Property are subject to recapture to the extent that
the Property or any portion thereof ceases to qualify for the Tax Credits.
Certain 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, management
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 IV, Inc., a
Massachusetts corporation (the "Managing General Partner"), an affiliate of The
Boston Financial Group Limited Partnership ("Boston Financial"), a Massachusetts
limited partnership. George Fantini, Jr. and Donna C. Gibson, Vice Presidents of
the Managing General Partner, resigned their positions effective June 30, 1995
and September 13, 1996, respectively.
The Managing General Partner was incorporated in December 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
Randolph G. Hawthorne Vice President
A. Harold Howell Vice President
The other General Partner of the Partnership is Arch Street IV Limited
Partnership, a Massachusetts Limited Partnership ("Arch Street IV L.P.") that
was organized in December 1988. Arch Street IV, Inc. is the managing general
partner of Arch Street IV L.P.. The individual general partners of Arch Street
IV 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 46, 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 is a member of
the Senior Leadership Team and Board of Directors, and leads the Property
Management division. Previously, she led the company's Institutional Tax Credit
Team and managed Boston Financial's Investment Real Estate and Asset Management
divisions. Ms. Murray currently serves as a director of Atlantic Bank and Trust
Company, President of the Institute for Multi-Family Housing, Director of the
Investment Program Association and member of the Direct Investment Committee of
the Securities Industry Association. Previously, she served as the Industry
Advisor to the Management Policy Review Committee of the Massachusetts Housing
Finance Agency and as a commissioner of the Boston Public Facilities Department.
Fred N. Pratt, Jr., age 52, 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 the General Partner of Boston Financial.
William E. Haynsworth, age 57, 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 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 firm's Senior Leadership
Team and participates in the structuring of real estate investments and the
development of new business opportunities.
Paul F. Coughlan, age 53, 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 Account Executive by Bache & Company until 1972, and
then by Reynolds Securities Inc. He joined Boston Financial in 1975 and is
currently a Senior Vice President on the Institutional Tax Credit Team.
<PAGE>
Peter G. Fallon, Jr., age 58, 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 and
a member of the Investment Real Estate Division with responsibility for the
marketing of the firm's Institutional Tax Credit product.
Randolph G. Hawthorne, age 47, is a graduate of Massachusetts Institute of
Technology (B.S., 1971) and Harvard Graduate School of Business (M.B.A., 1973).
He joined Boston Financial in 1973 and has served as Treasurer and managed the
firm's Investment Real Estate division. He is a Senior Vice President serving on
the Investment Acquisitions Team with 22 years of experience in property
acquisitions. Mr. Hawthorne has primary responsibility for structuring real
estate investments and developing new business opportunities. He is a member of
the Investment Committee. He is Chairman of the National Multi Housing Council,
a past president of the National Housing and Rehabilitation Association, a
member of the Residential Development Council of the Urban Land Institute as
well as a member of the Advisory Board of the Berkeley Real Estate Center at the
University of California. A speaker at industry conferences, he is also on the
Editorial Advisory Board of the Tax Credit Advisor.
A. Harold Howell, age 56, 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 is in
charge of a program being developed for properties managed by Boston Financial
whereby heads-of-households who want to further their education can enroll in a
program on-site which teaches economic self sufficiency, computer and internet
skills, problem solving skills and related real-world skills. 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.
<PAGE>
Item 11. Management Remuneration
Neither the directors or officers of Arch Street IV, Inc., nor the partners of
Arch Street IV L.P., nor any other individual with significant involvement in
the business of the Partnership receives any current or proposed remuneration
from the Partnership.
Item 12. Security Ownership of Certain Beneficial Owners and Management
As of March 31, 1997, the following is the only entity known to the Partnership
to be the beneficial owner of more than 5% of the Units outstanding:
Amount
Title of Class Name and Address of Beneficially
Beneficial Owner Owned Percent of Class
- --------------- ---------------------- --------------- ----------------
Limited AMP, Incorporated 10,000 Units 14.69%
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, of which 68,043 were sold to the public. The
remaining Units were deregistered in Post-Effective Amendment No. 3, dated
February 21, 1990. 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.
Arch Street IV L.P. owns five (unregistered)Units not included in the 68,043
Units sold to the public.
Except as described in the preceding paragraph, neither Arch Street IV, Inc.,
Arch Street IV 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 possess a right to acquire beneficial ownership of Units.
There is no arrangement in existence, to the Partnership's knowledge, that would
result in a change in control of the Partnership.
Item 13. Certain Relationships and Related Transactions
The Partnership paid certain fees to and reimbursed 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. In addition, Boston Financial Property Management ("BFPM"), an
affiliate of the Managing General Partner, serves as property management agent
for the properties owned by Leawood Associates, L.P., Oakview Square, L.P.,
Whitehills II Apartments Company, L.P., Gobles Limited Dividend Housing
Association and Milan Apartments Company, L.P. BFPM is also the Management agent
for the Texas Partnerships.
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, 1997, is presented as follows:
Organizational fees and expenses
In accordance with the Partnership Agreement, Boston Financial is to be
<PAGE>
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. From inception through March 31, 1997, $8,351,601 of
organization fees and expenses incurred on behalf of the Partnership were paid
and reimbursed 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 totaled 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, did
not exceed 1.75% of the gross offering proceeds. Acquisition fees totaling
$5,080,756 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 $974,240 were incurred and have been reimbursed to
an affiliate of the Managing General Partner. No payments were made or expenses
reimbursed in each of the three years ended March 31, 1997.
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 $7,185 (as adjusted by the CPI factor) per Local Limited Partnership
annually as the Asset Management Fee. Fees earned in each of the three years
ended March 31, 1997 are as follows:
1997 1996 1995
---------- ---------- -------
Asset management fees $250,509 $252,599 $246,085
<PAGE>
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 paid or
payable in each of the three years ended March 31, 1997 are as follows:
1997 1996 1995
---------- ---------- --------
Salaries and benefits
expense reimbursements $136,075 $155,984 $ 120,274
Property Management Fees
BFPM is the management agent of the Texas Partnerships and Leawood Manor,
properties in which the Partnership has invested. The property management fee
earned is 5% of properties' gross revenues. Fees earned by BFPM, which have been
included in the Combined Statements of Operations for each of the three years
ended March 31, 1997 are as follows:
1997 1996 1995
---------- ---------- -------
Property management fees $129,241 $101,364 $ 192,324
BFPM is the management agent for Oakview Square, Whitehills II Apartments,
Orchard View and Canfield Crossing, properties in which the Partnership
invested. The property management fee charged is 5% of properties' gross
revenues. Fees earned by BFPM, which have been included in operating expenses in
the summarized income statements in Note 4 to the Combined Financial Statements
in Part II, Item 8 for each of the three years ended March 31, 1997 are as
follows:
1997 1996 1995
---------- ---------- -------
Property management fees $65,926 $62,634 $51,137
Cash distributions paid to the General Partners
In accordance with the Partnership Agreement, the General Partners of the
Partnership, Arch Street IV, Inc. and Arch Street IV 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, 1997.
Additional information concerning cash distributions and other fees paid or
payable to the Managing General Partner and its affiliates and the reimbursement
of expenses paid or payable to Boston Financial and its affiliates during each
of the three years ended March 31, 1997 is presented in Note 5 to the Combined
Financial Statements in Part II Item 8.
<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 financial statements, financial
statement schedules and the auditors' report relating thereto, are submitted as
a separate section of this Report. See Index 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
financial statements and the accompanying notes and schedules.
(a)(3)(b) Reports on Form 8-K:
No reports on Form 8-K were filed during the year ended March 31,
1997.
(a)(3)(c) Exhibits
Number and Description in Accordance with
Item 601 of Regulation S-K
4. Instruments defining the rights of security
holders, including indentures
4.1 Amended and Restated Agreement Exhibit A to Prospectus contained in
and Certificate of Limited Form S-11 Registration Statement,
Partnership dated as of File # 33-26394
April 20, 1989
27. Financial Data Schedule
28. Additional Exhibits
28.1 (a) Reports of Other Independent Auditors
(b) Audited financial statements of
Local Limited Partnerships
N/A
(a)(3)(c) 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. IV
By: Arch Street IV, Inc.
its Managing General Partner
By: /s/William E. Haynsworth Date:
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:
William E. Haynsworth,
Managing Director, Vice President and
Chief Operating Officer
By: /s/Fred N. Pratt, Jr. Date:
Fred N Pratt, Jr.,
A Managing Director
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
Annual Report on Form 10-K
For the Year Ended March 31, 1997
Index
Page No.
Report of Independent Accountants F-2
Combined Financial Statements
Combined Balance Sheets - March 31, 1997 and 1996 F-3
Combined Statements of Operations - Years Ended
March 31, 1997, 1996 and 1995 F-4
Combined Statements of Changes in Partners' Equity
- Years Ended March 31, 1997, 1996 and 1995 F-5
Combined Statements of Cash Flows - Years Ended
March 31, 1997, 1996 and 1995 F-6
Notes to the Combined Financial Statements F-8
Financial Statement Schedule
Schedule III - Real Estate and Accumulated
Depreciation F-24
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.
See also Index to Exhibits on Page K-24 for the financial statements of the
Investor Local Limited Partnership included as a separate exhibit in this Annual
Report of Form 10-K.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners of
Boston Financial Qualified Housing Tax Credits L.P. IV
(A Limited Partnership)
We have audited the combined balance sheets of Boston Financial Qualified
Housing Tax Credits L.P. IV (A Limited Partnership) ("BFQH IV") as of March 31,
1997 and 1996 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 each of the three years in the period
ended March 31, 1997. These financial statements and financial statement
schedules are the responsibility of BFQH IV's management. Our responsibility is
to express an opinion on these financial statements and financial statement
schedules based on our audits. BFQH IV accounts for its investments in Local
Limited Partnerships as discussed in Note 2 of the notes to the financial
statements, using the equity method of accounting. In 1997 and 1996 77% and 78%t
of total assets, respectively, and in 1997, 1996 and 1995, 73%, 73% and 55% of
net loss, respectively, reflected in the combined financial statements of BFQH
IV, 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 BFQH IV at March 31, 1997 and 1996 and the
results of its operations and its cash flows for each of the three years in the
period ended March 31, 1997 in conformity with generally accepted accounting
principles. In addition, in our opinion, the financial statement schedules
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.
/s/ Coopers & Lybrand L.L.P.
Coopers & Lybrand L.L.P.
Boston, Massachusetts
June 25, 1997
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
<TABLE>
COMBINED BALANCE SHEETS - MARCH 31, 1997 AND 1996
<CAPTION>
1997 1996
----------- --------
<S> <C> <C>
Assets
Cash and cash equivalents $ 288,153 $ 414,451
Marketable securities, at fair value (Note 3) 1,056,590 1,428,765
Accounts receivable, net of allowance for bad debt of $337,793
and $41,046 in 1997 and 1996, respectively 23,778 39,646
Tenant security deposits 98,963 109,969
Investments in Local Limited Partnerships,
net of reserve for valuation of $945,277 in 1997 and
$913,047 in 1996 (Note 4) 19,593,420 22,748,929
Rental property at cost, net of
accumulated depreciation and reserve for valuation (Note 6) 15,217,196 16,628,572
Mortgagee escrow deposits 106,501 113,368
Deferred charges, net of $156,662 and $140,931 of
accumulated amortization in 1997 and 1996,
respectively 209,182 224,913
Other assets 38,270 35,465
------------- ------------
Total Assets $ 36,632,053 $41,744,078
============= ===========
Liabilities and Partners' Equity
Mortgage notes payable (Note 7) $ 11,111,888 $11,228,864
Accounts payable to affiliates (Note 5) 390,926 126,151
Accounts payable and accrued expenses 366,076 409,693
Interest payable (Note 7) 507,457 218,437
Tenant security deposits payable 89,709 85,705
Payable to affiliated Developer (Note 8) 2,482,000 2,482,000
------------- ------------
Total Liabilities 14,948,056 14,550,850
------------- ------------
Minority interest in Local Limited Partnerships 421,489 421,420
------------- ------------
General, Initial and Investor Limited Partners' Equity 21,267,760 26,771,540
Net unrealized gains (losses) on marketable securities (5,252) 268
------------- ------------
Total Partners' Equity 21,262,508 26,771,808
------------- ------------
Total Liabilities and Partners' Equity $ 36,632,053 $41,744,078
============= ===========
</TABLE>
The accompanying notes are an integral part of the combined
financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
<TABLE>
COMBINED STATEMENTS OF OPERATIONS
YEARS ENDED MARCH 31, 1997, 1996, AND 1995
<CAPTION>
1997 1996 1995
-------------- ------------ --------
<S> <C> <C> <C>
Revenue:
Rental $ 1,846,570 $ 2,422,830 $ 2,354,347
Investment 130,027 148,235 74,393
Other 122,632 62,629 78,230
------------ ------------ ------------
Total Revenue 2,099,229 2,633,694 2,506,970
------------ ------------ ------------
Expenses:
Asset management fees, related party (Note 5) 250,509 252,599 246,085
General and administrative (includes
reimbursement to affiliate in the amounts
of $136,075, $155,984 and $120,274,
respectively) (Note 5) 462,680 561,221 896,661
Bad debt expense 300,835 41,046 -
Rental operations, exclusive of depreciation 1,170,804 1,598,259 1,472,577
Property management fees, related party (Note 5) 129,241 101,364 192,324
Interest (Note 7) 987,379 1,130,490 1,125,354
Provision for valuation of rental property 791,830 - -
Provision for valuation of
investments in Local Limited
Partnerships (Note 4) - 69,047 599,000
Depreciation (Note 6) 746,829 917,812 853,500
Amortization 107,784 135,652 133,598
------------ ------------ ------------
Total Expenses 4,947,891 4,807,490 5,519,099
------------ ------------ ------------
Loss before equity in losses of Local Limited
Partnerships (2,848,662) (2,173,796) (3,012,129)
Equity in losses of Local Limited
Partnerships (Note 4) (2,747,270) (2,957,339) (3,688,171)
Minority interest in losses of
Local Limited Partnerships 92,152 84,541 38,341
------------ ------------ ------------
Net Loss $(5,503,780) $(5,046,594) $(6,661,959)
Net Loss allocated:
General Partners $ (55,038) $ (50,466) $ (66,620)
Limited Partners (5,448,742) (4,996,128) (6,595,339)
------------ ------------ ------------
$ (5,503,780) $(5,046,594) $(6,661,959)
============ =========== ===========
Net Loss per Limited Partnership
Unit (68,043 Units) $ (80.08) $ (73.43) $ (96.93)
=========== =========== ===========
</TABLE>
The accompanying notes are an integral part of the combined
financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
<TABLE>
COMBINED STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
YEARS ENDED MARCH 31, 1997, 1996 AND 1995
<CAPTION>
Net
Initial Investor Unrealized
General Limited Limited Gains
Partners Partners Partners (Losses) Total
<S> <C> <C> <C> <C> <C>
Balance at March 31, 1994 $ (206,284) $ 5,000 $ 38,681,377 $(43,565) $38,436,528
Net change in net unrealized losses
on marketable securities
available for sale - - - 5,967 5,967
Net Loss (66,620) - (6,595,339) - (6,661,959)
--------- ------- ------------ -------- ------------
Balance at March 31, 1995 (272,904) 5,000 32,086,038 (37,598) 31,780,536
Net change in net unrealized losses
on marketable securities
available for sale - - - 37,866 37,866
Net Loss (50,466) - (4,996,128) - (5,046,594)
--------- ------- ------------ -------- ------------
Balance at March 31, 1996 (323,370) 5,000 27,089,910 268 26,771,808
Net change in net unrealized gains
on marketable securities
available for sale - - - (5,520) (5,520)
Net Loss (55,038) - (5,448,742) - (5,503,780)
--------- ------- ------------ -------- ------------
Balance at March 31, 1997 $(378,408) $ 5,000 $ 21,641,168 $ (5,252) $ 21,262,508
========= ======= ============ ========= ============
</TABLE>
The accompanying notes are an integral part of the combined
financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
<TABLE>
COMBINED STATEMENTS OF CASH FLOWS
YEARS ENDED MARCH 31, 1997, 1996 AND 1995
<CAPTION>
1997 1996 1995
----------- ----------- -------
<S> <C> <C> <C>
Cash flows from operating activities
Net Loss $ (5,503,780) $(5,046,594) $(6,661,959)
Adjustments to reconcile net loss to net cash
used for operating activities:
Equity in losses of Local Limited Partnerships 2,747,270 2,957,339 3,688,171
Cash distribution income included in
cash distributions from Local Limited Partnerships (19,584) - -
Provision for valuation of
investments in Local Limited Partnerships - 69,047 599,000
Other - (3,642) -
Bad debt expense 300,835 41,046 -
Provision for valuation of rental property 791,830 - -
Depreciation and amortization 854,613 1,053,464 987,098
Loss on sale of marketable securities 1,310 3,775 52,387
Minority interest in losses of Local
Limited Partnerships (92,152) (84,541) (38,341)
Increase (decrease) in cash arising from
changes in operating assets and liabilities:
Accounts receivable, net 15,868 (25,807) (89,271)
Tenant security deposits 11,006 (34,621) -
Mortgagee escrow deposits 6,867 (17,497) -
Other assets (2,805) 4,671 20,213
Accounts payable to affiliates 300,715 100,588 27,469
Accounts payable and accrued expenses (43,617) 197,135 (74,833)
-
Interest payable 289,020 128,518 136,994
Tenant security deposits payable 4,004 (5,609) 14,336
------------ ----------- -----------
Net cash used for operating activities (338,600) (662,728) (1,338,736)
------------ ----------- -----------
Cash flows from investing activities:
Return of investment in Local Limited Partnership 3,331 - -
Purchases of marketable securities (487,098) (1,466,927) (2,759,939)
Proceeds from sales and maturities
of marketable securities 852,443 2,034,812 4,190,815
Cash distributions received from Local
Limited Partnerships 332,439 278,721 346,971
Advances to Local Limited Partnerships (336,775) - -
Purchase of rental property and equipment (127,283) (116,811) (129,547)
------------ ----------- -----------
Net cash provided by investing activities 237,057 729,795 1,648,300
------------ ----------- -----------
Cash flows from financing activities:
Repayment of General Partner loans - - (89)
Payment of deferred financing fees - - (10,000)
Capital contributions received 92,221 29,431 38,429
Repayment of note payable - - (237,000)
Payment of mortgage principal (116,976) (214,334) (35,224)
------------ ----------- -----------
Net cash used for financing activities (24,755) (184,903) (243,884)
------------ ----------- -----------
</TABLE>
The accompanying notes are an integral part of the combined
financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
<TABLE>
COMBINED STATEMENTS OF CASH FLOWS (Continued)
YEARS ENDED MARCH 31, 1997, 1996 AND 1995
<CAPTION>
1997 1996 1995
----------- ----------- -------
<S> <C> <C> <C>
Net increase (decrease) in cash and cash equivalents (126,298) (117,836) 65,680
Cash and cash equivalents, beginning 414,451 532,287 466,607
------------ ----------- ----------
Cash and cash equivalents, ending $ 288,153 $ 414,451 $ 532,287
============ =========== ==========
Supplemental disclosure:
Cash paid for interest $ 698,359 $1,001,972 $ 988,360
============ ========== ==========
</TABLE>
Non-cash disclosure:
See Note 9 for discussion on the change in control of certain Texas
Partnerships.
The accompanying notes are an integral part of the combined
financial statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
Notes to the Combined Financial Statements
1. Organization
Boston Financial Qualified Housing Tax Credits L.P. IV (the "Partnership") was
formed on March 30, 1989 under the laws of the Commonwealth of Massachusetts for
the primary purpose of investing, as a limited partner, in other limited
partnerships ("Local Limited Partnerships"), each 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 IV, Inc., which serves as the Managing General
Partner, and Arch Street IV 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 Partnership's partnership agreement ("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 $67,653,000
("Gross Proceeds"), net of discounts of $390,000, through the sale of 68,043
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 January 31, 1990.
Generally, profits, losses, tax credits, and cash flows 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 4% 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 amounts from time to time, as it deems appropriate. At March
31, 1997, the Managing General Partner has designated approximately $1,204,000
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,
because the Partnership does not have a majority control of the major operating
and financial policies of the Local Limited Partnerships in which it invests.
Under the equity method, the investment is carried at cost, adjusted for the
Partnership's share of net income or loss of the Local Limited Partnership,
additional investments 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. The Partnership has no
obligation to fund liabilities of the Local Limited Partnership beyond its
investment, therefore, the Local Limited Partnerships investment will not be
carried below zero. To the extent that equity losses are incurred or
distributions received when the Partnership's respective carrying value of the
Local Limited Partnership 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.
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 expenses are included in the Partnership's
Investments in Local Limited Partnerships and are being amortized on a
straight-line basis over 35 years.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
2. Significant Accounting Policies (continued)
Basis of Presentation and Combination (continued)
The Managing General Partner has elected to report results of the Local Limited
Partnerships on a 90 day lag basis, because the Local Limited Partnerships
report their results on a calendar year basis. Accordingly, the financial
information about the Local Limited Partnerships that is included in the
accompanying combined financial statements is as of December 31, 1996, 1995 and
1994.
On September 13, 1991, an affiliate of the Partnership's Managing General
Partner, BF Leawood, Inc., became the General Partner of Leawood Associates,
L.P. ("Leawood Manor"), a Local Limited Partnership in which the Partnership has
invested. BF Leawood, Inc. replaced the previous management agent with Boston
Financial Property Management, an affiliate of the Managing General Partner.
Since the Local General Partner of Leawood Manor is now an affiliate of the
Partnership, the Partnership is deemed to control Leawood Manor; consequently,
for financial reporting purposes, these combined financial statements include
all financial activity of Leawood Associates, L.P. for the years ended December
31, 1996, 1995 and 1994. All significant intercompany balances and transactions
have been eliminated.
On October 6, 1993, an affiliate of the Partnership's Managing General Partners,
BF Texas Limited Partnership, became an additional Local General Partner with
responsibility for all management decisions in twelve 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 twelve Texas Partnerships for the year ended December 31, 1994. Prior to
March 31, 1996, control of seven of these Texas Partnerships was transferred to
unrelated parties, and as such, as of that date, these partnerships were
accounted for on the equity method (see Note 9). During the year ended March 31,
1997, the Partnership relinquished its interest in five out of seven of these
Texas Partnerships. Therefore, as of March 31, 1997, two of the Texas
Partnerships are accounted for on the equity method, and these financial
statements include financial activity of five Texas Partnerships for the year
ended December 31, 1996.
All significant intercompany balances and transactions have been eliminated.
The Partnership has elected to report the results of Leawood Manor 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 Leawood Manor and the Texas Partnerships, prior to
the transfer of control referenced above.
Loans and operating advances to Local Limited Partnerships ($336,775 during the
year ended March 31, 1997) are reflected as receivables. Bad debts are provided
for such loans and advances deemed uncollectible ($309,835 at March 31, 1997).
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. There is a possibility that the
estimates relating to reserves for non-temporary declines in carrying value of
investments in Local Limited Partnerships may be subject to material near term
adjustments.
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 and continued eligibility for
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.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
2. Significant Accounting Policies (continued)
Cash Equivalents
Cash equivalents consist of short-term money market instruments with maturities
of ninety days or less at acquisition and approximate fair value.
Marketable Securities
Marketable securities consist primarily of U.S. Treasury instruments and various
asset-backed investment vehicles. 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 events or changes in circumstances indicate that the
carrying amount of an asset may not be recoverable. The Partnership has adopted
the new standard for its year ended March 31, 1997. The Texas Partnerships had
an impairment loss during the year ended December 31, 1996 because of the
adoption of this new standard. The Partnership recorded an impairment loss of
$791,830 during the year ended March 31, 1997 related to the carrying values of
the Texas Partnerships' properties (see Note 6).
Deferred Fees
Costs incurred in connection with the organization of the Partnership amounting
to $50,000 have been deferred and amortized on a straight-line basis over 60
months.
Leawood Manor's deferred charges consist of financing fees, which are being
amortized using the straight-line method over the term of the related debt.
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
various methods over their estimated useful lives of 3 to 40 years.
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 rentals
become due.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(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. Except as
discussed in Note 7, 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 amounts in prior years' financial statements have been reclassified
herein to conform to the current year presentation.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
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 and other US
Government agencies $ 754,966 $ 3,764 $ (7,169) $ 751,561
Mortgage backed securities 302,807 1,480 (3,328) 300,959
Other debt securities 4,069 1 - 4,070
----------- -------- -------- -----------
Marketable securities
at March 31, 1997 $ 1,061,842 $ 5,245 $(10,497) $ 1,056,590
=========== ======== ======== ===========
Debt securities issued by the
US Treasury and other US
Government agencies $ 945,321 $ 280 $ (4,773) $ 940,828
Mortgage backed securities 164,815 2,200 (1,046) 165,969
Other debt securities 318,361 3,979 (372) 321,968
----------- -------- -------- -----------
Marketable securities
at March 31, 1996 $ 1,428,497 $ 6,459 $ (6,191) $ 1,428,765
=========== ======== ======== ===========
</TABLE>
The contractual maturities at March 31, 1997 are as follows:
<TABLE>
<CAPTION>
Fair
Cost Value
<S> <C> <C>
Due in one year or less $ 125,313 $ 128,988
Due in one to five years 633,722 626,643
Mortgage backed securities 302,807 300,959
----------- -----------
$ 1,061,842 $ 1,056,590
=========== ===========
</TABLE>
Actual maturities may differ from contractual maturities because some borrowers
have the right to call or prepay obligations. Proceeds from sales and maturities
were approximately $852,000 and $2,035,000 during the fiscal years ended March
31, 1997 and 1996, respectively. Included in investment income are gross gains
of $4,471 and gross losses of $5,781 which were realized on these sales in
fiscal year 1997, and gross gains of $12,646 and gross losses of $16,421 which
were realized on these sales in fiscal year 1996.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
4. Investments in Local Limited Partnerships
The Partnership uses the equity method to account for its limited partnership
interests in twenty-six 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. Upon dissolution, proceeds will be distributed
according to each respective partnership agreement.
The following is a summary of investments in Local Limited Partnerships,
excluding the Combined Entities, at March 31:
<TABLE>
<CAPTION>
1997 1996 1995
------------ ------------ --------
<S> <C> <C> <C>
Capital contributions paid to Local Limited Partnerships
and purchase price paid
to withdrawing partners of Local
Limited Partnerships $ 43,318,237 $ 43,775,232 $43,005,281
Cumulative equity in losses of Local Limited
Partnerships (24,452,001) (22,227,131) (18,547,072)
Cash distributions received from Local
Limited Partnerships (1,490,279) (1,157,840) (879,119)
------------ ------------ ------------
Investments in Local Limited Partnerships
before adjustment 17,375,957 20,390,261 23,579,090
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 3,910,599 3,930,470 3,930,470
Accumulated amortization of acquisition
fees and expenses (747,859) (658,755) (547,585)
------------ ------------ ------------
Investments in Local Limited Partnerships 20,538,697 23,661,976 26,961,975
Reserve for valuation of investments
in Local Limited Partnerships (945,277) (913,047) (844,000)
------------ ------------ ------------
$ 19,593,420 $22,748,929 $26,117,975
============ =========== ===========
</TABLE>
Capital contributions to Leawood Manor during fiscal year ended March 31, 1995
totaled and $568,671. There were no capital contributions made to Leawood Manor
during fiscal years ended March 31, 1997 and 1996.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
4. Investments in Local Limited Partnerships (continued)
Summarized financial information for each of the three years ended December 31,
1996, 1995 and 1994 (due to the Partnership's policy of reporting the financial
information of its Local Limited Partnership interests on a 90 day lag basis) of
all Local Limited Partnerships in which the Partnership has invested as of that
date is as follows:
Summarized Balance Sheets - as of December 31,
<TABLE>
<CAPTION>
1996 1995 1994
------------- ------------ --------
<S> <C> <C> <C>
Assets:
Rental property, net $ 119,968,771 $121,655,134 $126,189,843
Current assets 4,512,930 5,285,738 5,628,644
Other assets, net 11,160,325 10,916,051 11,205,366
------------- ------------- --------------
Total Assets $ 135,642,026 $137,856,923 $143,023,853
============= ============ ============
Liabilities and Partners' Equity:
Mortgages payable, net of current portion $98,043,569 $98,589,771 $101,574,455
Other liabilities 9,238,211 9,230,947 8,790,083
Current liabilities (includes current
portion of mortgage payable) 7,371,825 4,912,957 5,198,634
------------- ------------- --------------
Total Liabilities 114,653,605 112,733,675 115,563,172
------------- ------------- --------------
Partners' Equity:
Partnership's equity 16,613,767 20,462,970 23,579,090
Other Partners' equity 4,374,654 4,660,278 3,881,591
------------- ------------- --------------
Total Partners' Equity 20,988,421 25,123,248 27,460,681
------------- ------------- --------------
Total Liabilities and Partners' Equity $ 135,642,026 $137,856,923 $143,023,853
============= ============ ============
Summarized Income Statements -
for the years ended December 31,
Rental and other revenue $ 19,632,293 $ 20,136,140 $ 19,465,968
------------- ------------- --------------
Expenses:
Operating expenses 10,458,548 10,493,595 9,966,093
Interest expense 7,621,226 7,412,019 7,990,214
Depreciation and amortization 4,847,371 4,933,894 4,950,983
------------- ------------- --------------
Total Expenses 22,927,145 22,839,508 22,907,290
------------- ------------- --------------
Net Loss $ (3,294,852) $ (2,703,368) $ (3,441,322)
============= ============= ===============
Partnership's share of net loss $ (3,606,691) $ (2,974,207) $ (3,688,171)
============= ============= ==============
Other Partners' share of net loss $ 311,839 $ 270,839 $ 246,849
============= ============= ==============
</TABLE>
The summarized financial information of the Local Limited Partnerships above
does not include Leawood Manor and the Texas Partnerships for the years ended
December 31, 1996, 1995 and 1994. 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 9).
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
4. Investments in Local Limited Partnerships (continued)
For the fiscal years ended March 31, 1997 and 1996 the Partnership has not
recognized $879,005 and $16,868, respectively, of equity in losses relating to
seven Local Limited Partnerships where cumulative equity in losses and
cumulative distributions exceeded its total investments in these Local Limited
Partnerships.
The Partnership's equity as reflected by the Local Limited Partnerships of
$16,613,747 differs from the Partnerships Investment in Local Limited
Partnerships before adjustment of $ 17,375,957 primarily because of a)
unrecognized losses as described above and b) distributions received by the
Partnership subsequent to December 31, 1996 which will not be recorded by the
Local Limited Partnerships until 1997.
On September 1, 1994, Leawood Manor's partnership agreement was amended to admit
an additional special limited partner to the Local Limited Partnership as part
of an extensive mortgage loan restructuring. As part of the provisions of the
amendment, the Partnership's interest in Leawood Manor was reduced from 99% to
89%. The Partnership made an additional capital contribution of approximately
$436,000 in October 1994. In October 1994, the Partnership also received
approximately $125,000 from an escrow account held on behalf of Leawood Manor.
The additional capital contribution paid by the Partnership was used by Leawood
Manor to pay off the funding fee note and reduce the principal balance of its
mortgage loan.
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 Limited Partnership Units. Selling commissions and other issuance expenses
aggregating $8,351,601 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 offering proceeds, and organizational and offering
expenses inclusive of selling commissions did not exceed 15% of the gross
offering 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 offering proceeds, and
acquisition expenses did not exceed 1.75% of the gross offering proceeds.
Acquisition fees totaling $5,080,756 have been paid to an affiliate of the
Managing General Partner for the closing of the Partnership's Local Limited
Partnership Investments. Approximately $2,125,000 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 $974,240 were incurred and have been
reimbursed to an affiliate of the Managing General Partner.
An affiliate of the Managing General Partner currently receives $7,185 (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 $250,509,
$252,599 and $246,085 for the years ended March 31, 1997, 1996 and 1995,
respectively. Payables to an affiliate of the Managing General Partner relating
to the aforementioned fees and expenses aggregate $314,852 and $64,343 at March
31, 1997 and 1996, 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, 1997, 1996 and 1995 is $136,075, $155,984
and, $120,274, respectively, that has been paid or is payable by the Partnership
as reimbursement for salaries and benefits. At March 31, 1997 and 1996, $34,094
and $16,596, respectively, is payable to an affiliate of the Managing General
Partner.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(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 is the management agent for Oakview Square, Whitehills II
Apartments, Orchard View, and Canfield Crossing, properties in which the
Partnership invested. The property management fee charged is 5% of properties'
gross revenues. Included in operating expenses in the summarized income
statements in Note 4 to the Combined Financial Statements is $65,926, $62,634
and $51,137 of fees earned by BFPM for the years ended December 31, 1996, 1995
and 1994.
Additionally, BFPM is the management agent of the Texas Partnerships and Leawood
Manor, properties in which the Partnership has invested. The property management
fee charged is 5% of the properties' gross revenues. Included in the Combined
Statements of Operations for the years ended March 31, 1997, 1996 and 1995 is
$129,241, $101,364 and $192,324 of fees earned by BFPM during the years ended
December 31, 1996, 1995 and 1994. Included in accounts payable to affiliates at
March 31, 1997 and 1996 is $17,243 and $34,747, respectively, of property
management fees due to an affiliate of the Managing General Partner.
6. Rental Property
Real estate and personal property belonging to the Combined Entities are
recorded at the lower of cost or net realizable value, the components of which
are as follows at December 31:
<TABLE>
<CAPTION>
1996 1995
------------ --------
<S> <C> <C>
Land $ 1,128,060 $ 1,128,060
Building and improvements, net of reserve for valuation 18,036,921 18,775,652
Equipment 930,975 856,791
------------ ------------
20,095,956 20,760,503
Less accumulated depreciation 4,878,760 4,131,931
------------ ------------
Total $ 15,217,196 $ 16,628,572
============ ============
</TABLE>
During the year ended December 31, 1996, an impairment loss of $791,830 was
recognized on the real estate in the Texas Partnerships, which decreased the
aggregate carrying value to $1,828,900. For the year ended December 31, 1996,
the net operating results of the Texas Partnerships increased the loss of the
Partnership (prior to the impairment loss) by $373,292. See Note 9 for further
details on the liquidation of the interests in the Texas Partnerships.
7. Mortgage Notes Payable
Leawood Manor
The amended and restated mortgage note as of December 31, 1996 and 1995 is
payable in the outstanding amount of $7,521,294 and $7,565,629, respectively, by
Leawood Manor in monthly installments of $77,850 for principal and interest in
arrears, with interest accrued at an annual rate of 11.75%. Interest is payable
monthly at the rate of 8% per annum plus 95% of the net cash flows as defined by
the mortgage agreement. Under the terms of the agreement, the difference in the
interest payments at the contract rate of 11.75% and the reduced payment rates,
will accrue interest at the rate of 8%, which will be payable from 95% of net
cash flows, if available, or upon maturity of the note. On July 10, 1999 the
reduced payment rate is scheduled to increase to 10%. The note matures in July
2006 and is collateralized by the property. 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 Leawood Manor to a concentration of credit risk.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
7. Mortgage Notes Payable (continued)
Aggregate annual maturities due on the mortgage note during each of the next
five years are as follows:
1997 $ 49,834
1998 56,015
1999 62,963
2000 70,813
2001 79,552
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' mortgage notes at December 31,
1996 and 1995 are $3,590,594 and $3,663,235, respectively.
The Partnership believes it is not practical to estimate the fair value of these
mortgage notes payable because loans with similar characteristics are not
currently available to the Partnership.
8. Payable to Developer
Under the terms of Leawood Manor's development agreement, the Developer has
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 Leawood Manor only
in certain circumstances. The amount payable to the Developer at December 31,
1996 represents the net amount advanced to Leawood Manor under this agreement,
the rights to which have been assigned to the general partner of Leawood Manor,
who is an affiliate of the Partnership.
9. Liquidation of Interests in Local Limited Partnerships
As previously reported, the Managing General Partner has transferred all of the
assets of five of the Texas Partnerships subject to their liabilities to
unaffiliated entities. Seagraves Garden, Grandview, Pecan Hill Apartments,
Hilltop Apartments and Bent Tree Apartments were transferred prior to March 31,
1997. Negotiations between the Managing General Partner, the lender and
prospective buyers have continued through the past quarter resulting in a
revised disposition plan. The new plan will transfer title to six of the
remaining properties to unaffiliated buyers. If negotiations continue as
expected, this transfer will occur during the second or third quarter in
calendar 1997. In the meantime, operating deficits continue to be funded from
Partnership reserves. The Partnership will retain Gateway Village. The
anticipated loss on the transfer has been included in the provision for
valuation of investment in Local Limited Partnerships.
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 3% of the Partnership's tax credits.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
10. Federal Income Taxes
A reconciliation of the net loss reported in the Combined Statements
of Operations for the years ended March 31, 1997, 1996 and 1995 to the net loss
reported for federal income tax purposes for the years ended December 31, 1996,
1995 and 1994 is as follows:
<TABLE>
<CAPTION>
1997 1996 1995
----------- ----------- -------
<S> <C> <C> <C>
Net Loss per Statement of Operations $ (5,503,780) $ (5,046,594) $ (6,661,959)
Amortization of acquisition fees and
expenses not deductible for tax
purposes 92,053 111,170 112,351
Adjustment for equity in losses of Local
Limited Partnerships for financial reporting
purposes under equity in losses for tax purposes 499,384 (266,381) (322,374)
Equity in losses of Local Limited Partnerships not
recognized for financial reporting purposes (879,005) (16,868) -
Provision for valuation of investment in Local Limited
Partnerships not deductible for tax purposes - - 599,000
Operating expenses not deductible in
current year for tax purposes 507,615 109,272 61,111
Operating expenses paid in current year but
expensed for financial reporting purposes in prior year (62,752) (61,111) (59,505)
Adjustment to reflect March 31 fiscal year
end to December 31 tax year end 40,206 (75,827) 142,154
Other (145,350) - -
------------- ------------ ------------
Net Loss for federal income tax purposes $ (5,451,629) $(5,246,339)$ (6,129,222)
============= =========== ===============
</TABLE>
The differences of the assets and liabilities of the Partnership for financial
reporting purposes and tax reporting purposes for the year ended March 31, 1997
are as follows:
<TABLE>
<CAPTION>
Financial Tax
Reporting Reporting
Purposes Purposes Differences
--------------- -------------- ----------------
<S> <C> <C> <C>
Investments in Local Limited Partnerships $ 19,593,420 $ 21,555,773 $ (1,962,353)
============== ============ =============
Other assets $ $ 17,038,633 $ 10,445,967 $ 6,592,666
============ ============== =============
Liabilities $ 14,948,056 $ 54,419 $ 14,893,637
============== ============ =============
</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 six Local Limited
Partnerships with its financial statements; for tax purposes, these entities are
carried on the equity method; (ii) the Partnership has provided a reserve for
valuation of approximately $945,000 against four of its investments in Local
Limited Partnerships for financial reporting purposes; (iii) approximately
$748,000 of amortization that has been deducted for financial reporting purposes
only and (iv) organizational and offering costs of approximately $8,352,000 that
have been capitalized for tax reporting purposes but are charged to Limited
Partners' equity for financial reporting purposes.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
11. Supplemental Combining Schedules
<TABLE>
Balance Sheets
<CAPTION>
Boston Financial
Qualified Housing
Tax Credits Combined Combined
L.P. IV (A) Entities (B) Eliminations (A)
<S> <C> <C> <C> <C>
Assets
Cash and cash equivalents $ 216,727 $ 71,426 $ - $ 288,153
Marketable securities, at fair value 1,056,590 - - 1,056,590
Accounts receivable, net 440,341 23,778 (440,341) 23,778
Tenant security deposits - 98,963 - 98,963
Investments in Local
Limited Partnerships, net 19,945,676 - (352,256) 19,593,420
Rental property at cost, net - 15,217,196 - 15,217,196
Mortgagee escrow deposits - 106,501 - 106,501
Deferred charges, net - 209,182 - 209,182
Other assets 21,778 16,492 - 38,270
--------------- --------------- ------------- ------------
Total Assets $ 21,681,112 $ 15,743,538 $ (792,597) $ 36,632,053
=============== =============== ============= ============
Liabilities and Partners' Equity
Mortgage notes payable $ - $ 11,111,888 $ - $ 11,111,888
Accounts payable to affiliates 348,946 482,321 (440,341) 390,926
Accounts payable and accrued expenses 69,658 296,418 - 366,076
Interest payable - 507,457 - 507,457
Tenant security deposits payable - 89,709 - 89,709
Payable to affiliated Developer - 2,482,000 - 2,482,000
--------------- --------------- ------------- ------------
Total Liabilities 418,604 14,969,793 (440,341) 14,948,056
Minority interest in Local Limited
Partnerships - - 421,489 421,489
General, Initial, and Investor
Limited Partners' Equity 21,267,760 773,745 (773,745) 21,267,760
Net unrealized losses on
marketable securities (5,252) - - (5,252)
--------------- --------------- ------------- ------------
Total Partners' Equity 21,262,508 773,745 (773,745) 21,262,508
--------------- --------------- ------------- ------------
Total Liabilities and Partners' Equity $ 21,681,112 $ 15,743,538 $ (792,597) $ 36,632,053
=============== =============== ============= ============
</TABLE>
(A) As of March 31, 1997. (B) As of December 31, 1996 - See Note 2.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
11. Supplemental Combining Schedules (continued)
<TABLE>
Statements of Operations
<CAPTION>
Boston Financial
Qualified Housing
Tax Credits Combined Combined
L.P. IV (A) Entities (B) Eliminations (A)
<S> <C> <C> <C> <C>
Revenue:
Rental $ - $ 1,846,570 $ - $ 1,846,570
Investment 87,759 42,268 - 130,027
Other 70,015 52,617 - 122,632
--------------- --------------- ------------- ------------
Total Revenue 157,774 1,941,455 - 2,099,229
--------------- --------------- ------------- ------------
Expenses:
Asset management fees, related party 250,509 - - 250,509
General and administrative 462,680 - - 462,680
Bad debt expense 300,835 - - 300,835
Rental operations, exclusive of depreciation - 1,170,804 - 1,170,804
Property management fees, related party - 129,241 - 129,241
Interest - 987,379 - 987,379
Provision for valuation of rental property - 791,830 -
791,830
Depreciation - 746,829 - 746,829
Amortization 92,053 15,731 - 107,784
--------------- --------------- ------------- ------------
Total Expenses 1,106,077 3,841,814 - 4,947,891
--------------- --------------- ------------- ------------
Loss before equity in losses of Local
Limited Partnerships (948,303) (1,900,359) - (2,848,662)
Equity in losses of Local Limited
Partnerships (4,555,477) - 1,808,207 (2,747,270)
Minority interest in losses of
Local Limited Partnerships - - 92,152 92,152
--------------- --------------- ------------- ------------
Net Loss $ (5,503,780) $ (1,900,359) $ 1,900,359 $ (5,503,780)
=============== =============== ============= ============
</TABLE>
(A) For the year ended March 31, 1997. (B) For the year ended December 31, 1996
- - See Note 2.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
11. Supplemental Combining Schedules (continued)
<TABLE>
Statements of Cash Flows
<CAPTION>
Boston Financial
Qualified Housing
Tax Credits Combined Combined
L.P. IV (A) Entities (B) Eliminations (A)
<S> <C> <C> <C> <C>
Cash flows from operating activities:
Net Loss $ (5,503,780) $ (1,900,359) $ 1,900,359 $ (5,503,780)
Adjustments to reconcile net loss to
net cash provided by (used for)
operating activities:
Equity in losses of Local
Limited Partnerships 4,555,477 - (1,808,207) 2,747,270
Cash distribution income included
in cash distributions from
Local Limited Partnerships (19,584) - - (19,584)
Bad debt expense 300,835 - - 300,835
Provision for valuation of rental property - 791,830 - 791,830
Depreciation and amortization 92,053 762,560 - 854,613
Loss on sale of marketable securities 1,310 - - 1,310
Minority interest in losses of
Local Limited Partnerships - - (92,152) (92,152)
Increase (decrease) in cash arising from
changes in operating assets and liabilities
Accounts receivable, net - 15,868 - 15,868
Tenant security deposits - 11,006 - 11,006
Mortgagee escrow deposits - 6,867 - 6,867
Other assets (2,615) (190) - (2,805)
Accounts payable to affiliates 268,007 147,051 (114,343) 300,715
Accounts payable and
accrued expenses (31,879) (11,738) - (43,617)
Interest payable - 289,020 - 289,020
Tenant security deposits payable - 4,004 - 4,004
--------------- --------------- ------------- ------------
Net cash provided by (used for)
operating activities (340,176) 115,919 (114,343) (338,600)
--------------- --------------- ------------- ------------
Cash flows from investing activities:
Return of investment in
Local Limited Partnership 3,331 - - 3,331
Purchases of marketable securities (487,098) - - (487,098)
Proceeds from sales and maturities
of marketable securities 852,443 - - 852,443
Cash distributions received from
Local Limited Partnerships 332,439 - - 332,439
Advances to Local Limited Partnerships (451,118) - 114,343 (336,775)
Purchase of rental property
and equipment - (127,283) - (127,283)
--------------- --------------- ------------- ------------
Net cash provided by (used for)
investing activities 249,997 (127,283) 114,343 237,057
--------------- --------------- ------------- ------------
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. IV
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
11. Supplemental Combining Schedules (continued)
<TABLE>
Statements of Cash Flows (continued)
<CAPTION>
Boston Financial
Qualified Housing
Tax Credits Combined Combined
L.P. IV (A) Entities (B) Eliminations (A)
<S> <C> <C> <C> <C> <C> <C>
Cash flows from financing activities:
Capital contributions received - 92,221 - 92,221
Payment of mortgage principal - (116,976) - (116,976)
--------------- --------------- ------------- ------------
Net cash used for financing activities - (24,755) (24,755)
--------------- --------------- ------------- ------------
Net decrease in cash
and cash equivalents (90,179) (36,119) - (126,298)
Cash and cash equivalents, beginning 306,906 107,545 - 414,451
--------------- --------------- ------------- ------------
Cash and cash equivalents, ending $ 216,727 $ 71,426 $ - $ 288,153
=============== =============== ============= ============
</TABLE>
(A) For the year ended March 31, 1997. (B) For the year ended December 31, 1996
- - See Note 2.
Boston Financial Qualified Housing Tax Credits L. P. IV
Schedule III - Real Estate and Accumulated Depreciation
of Property owned by Local Limited Partnerships in
which Registrant has invested at March 31, 1997
(continued)
<TABLE>
COST OF INTEREST
AT ACQUISITION DATE
-----------------------
<CAPTION>
NET IMPROVEMENTS
NUMBER TOTAL CAPITALIZED
OF ENCUM- BUILDING AND SUBSEQUENT TO
DESCRIPTION UNITS BRANCES * LAND IMPROVEMENTS ACQUISITION
Low and Moderate
Income Apartment Complexes
<S> <C> <C> <C> <C> <C>
Brooks Crossing Apartments 224 $5,546,557 $878,034 $4,468,624 $3,965,351
Atlanta, GA
Willow Ridge 134 3,104,568 345,600 4,722,160 (444,082)
Prescott, AZ
Dorsett Apartments 58 2,330,297 38,599 2,617,152 3,538,143
Philadelphia, PA
Hampton Lane Apartments 24 718,754 15,120 25,930 849,554
Buena Vista, GA
Audubon Apartments 37 3,161,989 0 1,714,176 3,969,553
Boston, MA
Sencit Towne House 201 7,338,591 371,854 9,716,234 608,147
Shillington, PA
Allentown Towne House 160 6,643,518 236,460 7,917,331 292,765
Allentown, PA
Prince Street Housing 201 8,105,645 371,734 9,788,527 525,572
Lancaster, PA
Hilltop Apartments (A) 0 0 8,683 389,661 (398,344)
Rhome, TX
Royal Crest Apartments (B) 48 686,283 13,985 906,750 (3,554)
Bowie, TX
Pine Manor Apart.** (C) 36 575,167 19,991 0 705,899
Jacksonboro, TX
Bryson Place (A) 0 0 1,200 0 (1,200)
Bryson, TX
Leawood Manor** 254 7,521,294 971,742 12,044,206 3,212,899
Kansas City, KS
Pinewood Terrace I** (C) 84 1,043,248 6,897 1,400,102 63,326
Rusk, TX
Valley View Apts** (C) 24 366,778 4,835 466,237 23,273
Valley View, TX
Grandview Apartments (A) 0 0 8,660 0 (8,660)
Grandview, TX
Bent Tree Apts (A) 0 0 14,533 0 (14,533)
Jacksonboro, TX
Bentley Court 272 6,960,496 0 0 13,347,865
Columbia, SC
Nocona Terrace (B) 36 546,756 7,050 741,550 15,204
Nocona, TX
Justin Place** (C) 24 334,416 5,485 0 464,463
Justin, TX
Orocovix IV 40 1,648,381 60,000 1,175,705 881,939
Orocovix, PR
Carolina Woods 48 1,163,956 121,710 2,160,614 5,108
Greensboro, NC
Mayfair Mansions 569 21,481,995 2,080,022 27,784,358 237,978
Washington, DC
</TABLE>
<PAGE>
<TABLE>
COST OF INTEREST
AT ACQUISITION DATE
-------------------------
<CAPTION>
NET IMPROVEMENTS
NUMBER TOTAL CAPITALIZED
OF ENCUM- BUILDING AND SUBSEQUENT TO
DESCRIPTION UNITS BRANCES * LAND IMPROVEMENTS ACQUISITION
Low and Moderate
Income Apartment Complexes
<S> <C> <C> <C> <C> <C>
Oakview Square 192 6,075,155 530,411 7,353,548 3,854,341
Chesterfield, MI
Whitehills 24 755,846 40,200 934,444 1,731
Howell, MI
Gobles Apts. 24 740,261 12,500 939,518 1,401
Gobles, MI
Brown Kaplan 60 7,687,075 0 7,096,932 1,974,211
Boston, MA
Green Tree 24 659,724 21,120 788,935 1,798
Greenville, GA
Milan Apartments 32 1,019,473 50,500 1,254,727 21,426
Milan, MI
Findlay 49 1,709,250 19,533 3,165,904 565,969
Cincinnati, OH
Seagraves (A) 0 0 20,000 634,518 (654,518)
Seagraves, TX
Lakeside 308 6,333,106 400,000 9,416,579 1,061,996
Chicago, IL
Lincoln Green 30 1,246,052 156,725 1,924,700 84,888
Old Town, ME
West Pine 38 1,680,626 74,800 944,818 1,086,747
Allegheny County, PA
BK Apartments 48 920,000 30,000 983,020 248,407
Jamestown, ND
46th & Vincennes 28 1,314,127 16,200 1,901,527 75,871
Chicago, IL
Gateway** 50 1,133,081 119,110 1,355,075 24,251
Azle, TX
-----------------------------------------------------------------------------
SUBTOTAL 3,381 110,552,465 7,073,293 126,733,562 40,185,185
LESS: Combined Entities ** 472 10,973,984 1,128,060 15,265,620 4,494,111
-----------------------------------------------------------------------------
TOTAL 2,909 $99,578,481 $5,945,233 $111,467,942 $35,691,074
=============================================================================
</TABLE>
(1) The aggregate cost for Federal Income Tax purposes is approximately
$ 173,992,000.
(A) During the year ended March 31, 1997, the Partnership has transferred all of
the assets of five of the Texas
Partnerships subject to their liabilities to unaffiliated entities.
(B) Balances at December 31, 1995 are restated to reflect that the properties
previously stated as having been transferred at March 31, 1996 were transferred
during the year ended March 31, 1997 and were
accounted for on the equity method of accounting at March 31, 1996.
* 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.
<PAGE>
<TABLE>
GROSS AMOUNT AT WHICH CARRIED AT DECEMBER 31, 1996
-------------------------------------------------------
<CAPTION>
LIFE ON WHICH
DEPRECIATION
BUILDING AND ACCUMULATED DATE IS COMPUTED DATE
DESCRIPTION LAND IMPROVEMENTS TOTAL DEPRECIATION BUILT (YEARS) ACQUIRED
- ----------- ---- ------------ ----- ------------ ----- ------- --------
Low and Moderate
Income Apartment Complexes
<S> <C> <C> <C> <C> <C> <C> <C>
Brooks Crossing $878,034 $8,433,975 $9,312,009 $2,172,079 1990 various 06/30/89
Apartments
Atlanta, GA
Willow Ridge 345,600 4,278,078 4,623,678 837,465 1989 various 8/28/89
Prescott, AZ
Dorsett Apartments 42,112 6,151,782 6,193,894 946,843 1990 various 10/20/89
Philadelphia, PA
Hampton Lane Apartments 33,397 857,207 890,604 231,662 1990 various 12/20/89
Buena Vista, GA
Audubon Apartments 0 5,683,729 5,683,729 1,010,429 1990 various 12/22/89
Boston, MA
Sencit Towne House 371,854 10,324,381 10,696,235 2,226,013 1989 various 12/26/89
Shillington, PA
Allentown Towne House 236,460 8,210,096 8,446,556 1,605,677 1989 various 12/26/89
Allentown, PA
Prince Street Housing 371,734 10,314,099 10,685,833 2,085,852 1989 various 12/26/89
Lancaster, PA
Hilltop Apartments (A) 0 0 0 0 1989 N/A 12/27/89
Rhome, TX
Royal Crest Apartments(B) 13,985 903,196 917,181 143,516 1989 various 12/27/89
Bowie, TX
Pine Manor Apart.** (C) 19,991 241,254 261,245 114,245 1989 various 12/27/89
Jacksonboro, TX
Bryson Place (A) 0 0 0 0 1990 N/A 12/28/89
Bryson, TX
Leawood Manor** 1,004,353 15,224,494 16,228,847 4,162,528 1989 various 12/29/89
Kansas City, KS
Pinewood Terrace I** (C) 14,147 1,422,466 1,436,613 251,613 1989 various 12/27/89
Rusk, TX
Valley View Apts** (C) 4,835 322,598 327,433 90,633 1989 various 12/27/89
Valley View, TX
Grandview Apartments (A) 0 0 0 0 1990 N/A 12/27/89
Grandview, TX
Bent Tree Apts (A) 0 0 0 0 1989 N/A 12/27/89
Jacksonboro, TX
Bentley Court 1,679,225 11,668,640 13,347,865 3,344,166 1990 various 12/26/89
Columbia, SC
Nocona Terrace (B) 7,050 756,754 763,804 121,399 1989 various 12/27/89
Nocona, TX
Justin Place** (C) 5,485 337,902 343,387 83,286 1990 various 12/27/89
Justin, TX
Orocovix IV 60,000 2,057,644 2,117,644 393,670 1990 various 12/30/89
Orocovix, PR
Carolina Woods 121,710 2,165,722 2,287,432 420,371 1990 various 01/31/90
Greensboro, NC
Mayfair Mansions 2,080,022 28,022,336 30,102,358 8,617,998 1990 various 3/21/90
Washington, DC
</TABLE>
<PAGE>
<TABLE>
GROSS AMOUNT AT WHICH CARRIED AT DECEMBER 31, 1996
-------------------------------------------------------
<CAPTION>
LIFE ON WHICH
DEPRECIATION
BUILDING AND ACCUMULATED DATE IS COMPUTED DATE
DESCRIPTION LAND IMPROVEMENTS TOTAL DEPRECIATION BUILT (YEARS) ACQUIRED
- ----------- ---- ------------ ----- ------------ ----- ------- --------
Low and Moderate
Income Apartment Complexes
<S> <C> <C> <C> <C> <C> <C> <C>
Oakview Square 530,411 11,207,889 11,738,300 1,623,815 1991 various 3/22/89
Chesterfield, MI
Whitehills 121,848 854,527 976,375 282,675 1990 various 4/21/90
Howell, MI
Gobles Apts. 51,736 901,683 953,419 267,331 1990 various 4/29/90
Gobles, MI
Brown Kaplan 104,800 8,966,343 9,071,143 1,696,696 1991 various 7/1/90
Boston, MA
Green Tree 21,120 790,733 811,853 203,225 1990 various 7/6/90
Greenville, GA
Milan Apartments 151,030 1,175,623 1,326,653 358,534 1990 various 8/20/90
Milan, MI
Findlay 19,533 3,731,873 3,751,406 427,987 1990 various 8/15/90
Cincinnati, OH
Seagraves (A) 0 0 0 0 1990 N/A 11/28/90
Seagraves, TX
Lakeside 400,000 10,478,575 10,878,575 2,630,431 1991 various 5/17/90
Chicago, IL
Lincoln Green 160,874 2,005,439 2,166,313 446,879 1989 various 3/21/90
Old Town, ME
West Pine 74,800 2,031,565 2,106,365 353,970 1991 various 12/31/90
Allegheny County, PA
BK Apartments 34,151 1,227,276 1,261,427 217,256 1991 various 12/1/90
Jamestown, ND
46th & Vincennes 16,200 1,977,398 1,993,598 469,538 1990 various 3/29/91
Chicago, IL
Gateway** 140,636 1,357,800 1,498,436 176,458 1991 various 6/24/91
Azle, TX
-------------------------------------------------------
SUBTOTAL 9,117,133 164,083,077 173,200,210 38,014,240
LESS: Combined Entities 1,189,447 18,906,514 20,095,961 4,878,763
**
-------------------------------------------------------
TOTAL $7,927,686$145,176,563 $153,104,249 $33,135,477
=======================================================
</TABLE>
<TABLE>
<CAPTION>
Summary of property owned and accumulated depreciation:
<S> <C>
Property Owned December 31, 1996 Accumulated Depreciation December 31, 1996
- -------------------------------------------------------------- ----------------------------------------------
Balance at beginning of period $153,974,533 Balance at beginning of period
Additions during period: before Combined Entities $28,735,999
Acquisitions through $0 Additions during period:
foreclosure
Other 62,414 Eliminations - 1995 4,131,931
acquisitions Combined Entities
Improvements 1,770,452 Eliminations - Combined (4,878,763)
etc. Entities**
------------
1,832,866 Properties disposed of (386,880)
(A)
Deductions during period: Depreciation 5,533,190
===============
Cost of real estate sold (4,622) Balance at close of period $33,135,477
===============
Write down of building resulting from
a non-temporary decline (791,830)
in
value (C)
Eliminations -1995 Combined 20,760,503
Entities
Eliminations - Combined (20,095,959)
Entities**
Disposals from transferred (2,571,242)
Properties (A)
------------
(2,703,150)
----------------
Balance at close of period $153,104,249
================
Accumulated Depreciation December 31, 1995
----------------------------------------------
Balance at beginning of period
before Combined Entities $23,272,301
Property Owned December 31, 1995 Additions during period:
- --------------------------------------------------------------
Balance at beginning of period $149,462,145 Eliminations - 1994 3,872,447
Combined Entities
Additions during period: Eliminations - Combined (4,131,931)
Entities
Acquisitions through $0 Depreciation 5,723,182
foreclosure
Other 88,018 Properties disposed of 0
acquisitions (B)
---------------
Improvements 308,211 Balance at close of period $28,735,999
etc.
------------ ===============
396,229
Deductions during period:
Cost of real estate sold (544)
Eliminations -1994 Combined 24,877,206
Entities
Eliminations - Combined (20,760,503)
Entities
Disposals from transferred 0
Properties (B)
------------
4,116,159
----------------
Balance at close of period $153,974,533
================
Property Owned December 31, 1994 Accumulated Depreciation December 31, 1994
- -------------------------------------------------------------- ----------------------------------------------
Balance at beginning of period $150,462,969 Balance at beginning of period
Additions during period: before Combined Entities $18,594,712
Acquisitions through $0 Additions during period:
foreclosure
Other 190,609 Eliminations - 1993 3,018,949
acquisitions Combined Entities
Improvements 261,940 Eliminations - Combined (3,872,447)
etc. Entities
------------
452,549 Depreciation 5,531,087
---------------
Deductions during period: Balance at close of period $23,272,301
===============
Cost of real estate and (1,323,828)
equipment sold
Eliminations - 1993 24,747,661
Combined Entities
Eliminations - Combined (24,877,206)
Entities
------------
(1,453,373)
----------------
Balance at close of period $149,462,145
================
</TABLE>
<PAGE>
[Letterhead]
[LOGO]
Kirschner Hutton Perlin, P.C.
INDEPENDENT AUDITORS REPORT
January 22, 1997
Gobles Limited Dividend Housing Association
Limited Partnership
We have audited the accompanying balance sheet of Gobles Limited Dividend
Housing Association Limited Partnership as of December 31, 1996 and 1995, and
the related statements of operations, 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 audit in accordance with generally accepted auditing standards.
Those standards require that we plan and performthe audit 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 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 Gobles Limited Dividend Housing
Association Limited Partnership as of December 31, 1996 and 1995, and the
results of its operations and its cash flows for the years then ended in
conformity with generally accepted accounting principles.
/s/ Kirschner Hutton Perlin, P.C.
<PAGE>
[Letterhead]
[LOGO]
Kirschner Hutton Perlin, P.C.
INDEPENDENT AUDITORS REPORT
January 11, 1996
To the Partners of
Gobles Limited Dividend Housing Association
Limited Partnership
We have audited the accompanying balance sheet of Gobles Limited Dividend
Housing Association Limited Partnership, as of December31, 1995 and 1994, and
the related statements of 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 audit in accordance with generally accepted auditing standards.
Those standards require that we plan and performthe 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 ofGobles Limited Dividend Housing
Association 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/ Kirschner Hutton Perlin, P.C.
<PAGE>
[Letterhead]
FLOYD & COMPANY
306 Commercial Drive, Suite 202 Post Office Box 14251
Savannah, Georgia 31406 Savannah, Georgia
Phone: (912) 355-9969
INDEPENDENT AUDITORS REPORT
To the General Partners of
Greentree Village Limited Partnership
We have audited the accompanying balance sheets of Greentree Village Limited
Partnership (a Georgia Limited Partnership), as of December 31, 1996 and the
related statements of 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 audits.
The financial statement information for the year ending December 31, 1995 was
audited by another independent certified public accountant who expressed an
opinion dated March 16, 1996.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS IV
(A Limited Partnership)
Annual Report on form 10-K
For The Year Ended March 31, 1997
Reports of Independent Auditors
<PAGE>
[Letterhead]
[LOGO]
Haran & Associates
INDEPENDENT AUDITORS REPORT
To the Partners HUD Field Office Director
46th & VINCENNES LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the accompanying balance sheet of 46th & VINCENNES LIMITED
PARTNERSHIP, Project No. 071-35594, as of December 31, 1996, and the related
statements of profit and loss, changes in partners' equity and statement of 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 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 46th & VINCENNES LIMITED
PARTNERSHIP, as of December 31, 1996, and its profit or loss, changes in
partners' equity, 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 21, 1997 on our consideration of 46th & VINCENNES LIMITED
PARTNERSHIP's internal control structure and reports dated January 21, 1997 on
its compliance with specific requirements applicable to Major HUD Programs,
specific requirements applicable to Affirmative Fair Housing, and specific
requirements applicable to Nonmajor HUD Programs.
The accompanying supplementary information (shown on pages 15 to 19) 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 statement and,
in our opinion, is fairly stated in all material respects in relation to the
financial statements taken as a whole.
/s/Haran & Associates Ltd.
Haran & Associates LTD
Certified Public Avccountants
Wilmette, Illinois
Illinois Certificate No. 060-002892
Federal Certification No. 36-3097692
Audit Partner: James E. Haran
January 21, 1997
<PAGE>
[Letterhead]
[LOGO]
Haran & Associates
INDEPENDENT AUDITORS REPORT
To the Partners HUD Field Office Director
46th & VINCENNES LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the accompanying balance sheet of 46th & VINCENNES LIMITED
PARTNERSHIP, Project No. 071-35594, as of December 31, 1995, and the related
statements of profit and loss, changes in partners' equity and statement of cash
flows for the year 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 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.
As more fully described in the notes to the financial statements, the
Partnership has expensed construction period interest and real estate taxes
associated with the building. In our opinion, construction period interest and
taxes should be capitalized and depreciated over the life of the building to
conform to generally accepted accounting principles. The effects on the
financial statements of the preceding practices are not reasonably determinable.
In our opinion, except for the effects of the matters discussed in the preceding
paragraph, the financial statements referred to in the first paragraph present
fairly, in all material respects, the financial position of 46th & VINCENNES
LIMITED PARTNERSHIP, as of December 31, 1995, and its profit and loss, changes
in partners' equity, 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 46th & VINCENNES LIMITED
PARTNERSHIP's internal control structure and reports dated January 26, 1996 on
its compliance with specific requirements applicable to Major HUD Programs,
specific requirements applicable to Affirmative Fair Housing, and specific
requirements applicable to Nonmajor HUD Programs. <PAGE>
[LETTERHEAD]
[LOGO]
Haran & Associates
INDEPENDENT AUDITORS REPORT (CONTINUED)
The accompanying supplementary information (shown on pages 16 to 20) 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 statement and,
in our opinion, is fairly stated in all material respects in relation to the
financial statements taken as a whole.
/s/Haran & Associates Ltd.
Haran & Associates LTD
January 26, 1996
<PAGE>
[Letterhead]
[LOGO]
Haran & Associates
INDEPENDENT AUDITORS REPORT
To the Partners HUD Field Office Director
46th & VINCENNES LIMITED PARTNERSHIP Chicago, Illinois
Chicago, Illinois
We have audited the accompanying balance sheet of 46th & VINCENNES LIMITED
PARTNERSHIP, Project No. 071-35594, as of December 31, 1994, and the related
statements of profit and loss, changes in partners' equity and statement of cash
flows for the year 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 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.
As more fully described in the notes to the financial statements, the
Partnership has expensed construction period interest and real estate taxes
associated with the building. In our opinion, construction period interest and
taxes should be capitalized and depreciated over the life of the building to
conform to generally accepted accounting principles. In addition, the Project
recognized depreciation for the building over a shorter useful life than would
be allowable under generally accepted accounting principles. The effects on the
financial statements of the preceding practices are not reasonably determinable.
In our opinion, except for the effects of the matters discussed in the preceding
paragraph, the financial statements referred to in the first paragraph present
fairly, in all material respects, the financial position of 46th & VINCENNES
LIMITED PARTNERSHIP, as of December 31, 1994, and its profit and loss, changes
in partners' equity, and its cash flows for the year then ended in conformity
with generally accepted accounting principles. The supporting data included in
this report (shown on pages 15 to 19) has been subjected to the same auditing
procedures applied in the audit of the basic financial statement and, in our
opinion, is fairly stated in all material respects in relation to the financial
statements taken as a whole.
/s/Haran & Associates Ltd.
Haran & Associates LTD
January 26, 1996
<PAGE>
[Letterhead]
[LOGO]
Ziner & Company, P.C.
INDEPENDENT AUDITORS REPORT
To the Partners of
Audobon Group Limited Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of
Audobon Group Limited Partnership (a Massachusetts limited partnership)(Project
No. 89-008-R) as of December 31, 1996, and the related statements changes in
partners' equity (deficiency) (MHFA Forms F.C.-3C), operations (MHFA Forms
F.C.-2A), cash flows (MHFA Forms F.C.-4A & -4C) for the year then ended. These
financial statements are the responsibility of the general partner. 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 Audobon Group Limited
Partnership, as of December 31, 1996, and the results of its operations, its
changes in 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 F to the
financial statements, the Partnership's significant operating losses raise
substantial doubt about its 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/Ziner & Company, P.C.
February 22, 1997
<PAGE>
[Letterhead]
[LOGO]
Ziner & Company, P.C.
INDEPENDENT AUDITORS REPORT
To the Partners of
Audobon Group Limited Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of
Audobon Group Limited Partnership (a Massachusetts limited partnership)(Project
No. 89-008-R) as of December 31, 1995, and the related statements changes in
partners' equity (deficiency) (MHFA Forms F.C.-3C), operations (MHFA Forms
F.C.-2A), cash flows (MHFA Forms F.C.-4A & -4C) for the year then ended. These
financial statements are the responsibility of the general partner. 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 Audobon Group Limited
Partnership, as of December 31, 1995, and the results of its operations, its
changes in partners' equity and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
/s/Ziner & Company, P.C.
January 26, 1996
<PAGE>
[Letterhead]
[LOGO]
Ziner & Company, P.C.
INDEPENDENT AUDITORS REPORT
To the Partners of
Audobon Group Limited Partnership
We have audited the accompanying balance sheet (MHFA Forms F.C.-3A & -3B) of
Audobon Group Limited Partnership (a Massachusetts limited partnership)(Project
No. 89-008-R) as of December 31, 1994, and the related statements changes in
partners' equity (deficiency) (MHFA Forms F.C.-3C), operations (MHFA Forms
F.C.-2A), cash flows (MHFA Forms F.C.-4A & -4C) for the year then ended. These
financial statements are the responsibility of the general partner. 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 Audobon Group Limited
Partnership, as of December 31, 1994, and the results of its operations, its
changes in partners' equity and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
/s/Ziner & Company, P.C.
January 18, 1995
<PAGE>
[Letterhead]
[LOGO]
Habif, Arogeti & Wynne, P.C.
INDEPENDENT AUDITORS REPORT
To the Partners
Bentley Court II, Limited Partnership
We have audited the accompanying balance sheet of Bentley Court II, Limited
Partnership (a South Carolina Limited Partnership), FHA Project No. 054-36622,
as of December 31, 1995, and the related statements of changes in partners'
equity, profit and loss, and cash flows for the year 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 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 Bentley Court II, Limited
Partnership as of December 31, 1995, and its changes in partners' equity, 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 a report
dated January 29, 1996 on our consideration of Bentley Court II, Limited
Partnership's internal control structure and a report dated January 29, 1996 on
its compliance with laws and regulations.
Our audit was made for the purpose of forming an opinion on the financial
statements taken as a whole. The supporting information included in the report
(shown on pages 12 - 16) is presented for the purpose of additional analysis and
is not a required part of the financial statements. Such information has been
subjected to the 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.
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note I to the
financial statements, the Company has suffered recurring losses from operations
and is in default under its mortgage agreement, which raises substantial doubt
about its ability to continue as a going concern.
/s/ Habif, Arogeti & Wynne, P.C.
January 29, 1996
<PAGE>
[Letterhead]
[LOGO]
Habif, Arogeti & Wynne, P.C.
INDEPENDENT AUDITORS REPORT
To the Partners
Bentley Court II, Limited Partnership
We have audited the accompanying balance sheet of Bentley Court II, Limited
Partnership (a South Carolina Limited Partnership), FHA Project No. 054-36622,
as of December 31, 1994, and the related statements of changes in partners'
equity, profit and loss, and cash flows for the year 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 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 Bentley Court II, Limited
Partnership as of December 31, 1994, and its changes in partners' equity, 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 a report
dated January 29, 1996 on our consideration of Bentley Court II, Limited
Partnership's internal control structure and a report dated January 29, 1996 on
its compliance with laws and regulations.
Our audit was made for the purpose of forming an opinion on the financial
statements taken as a whole. The supporting information included in the report
(shown on pages 12 - 16) is presented for the purpose of additional analysis and
is not a required part of the financial statements. Such information has been
subjected to the 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.
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note H to the
financial statements, the Company has suffered recurring losses from operations
and is in default under its mortgage agreement, which raises substantial doubt
about its ability to continue as a going concern.
/s/ Habif, Arogeti & Wynne, P.C.
January 25, 1995
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
INDEPENDENT AUDITORS REPORT
The Partners
B-K Apartments Limited Partnership
Wahpeton, North Dakota
We have audited the accompanying balance sheets of B-K Apartments Limited
Partnership as of December 31, 1996 and 1995, and the related statements of
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 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 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 B-K Apartments Limited
Partnership as of December 31, 1996 and 1995, 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. As discussed in Note 9 to the
financial statements, the Partnership has suffered recurring vacancies and cash
deficiencies that raise substantial doubt about its ability to continue as a
going concern. Management's plans in regard to these matters are also described
in Note 9. The financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota
February 18, 1997
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
INDEPENDENT AUDITORS REPORT
The Partners
B-K Apartments Limited Partnership
Wahpeton, North Dakota
We have audited the accompanying balance sheets of B-K Apartments Limited
Partnership, as of December 31, 1995 and 1994, and the related statements of
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 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 B-K Apartments 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.
The accompanying financial statements have been prepared assuming that the
Partnership will continue as a going concern. As discussed in Note 9 to the
financial statements, the Partnership has suffered recurring vacancies and cash
deficiencies that raise substantial doubt about its ability to continue as a
going concern. Management's plans in regard to these matters are also described
in Note 9. The financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
/s/ Charles Bailly & Company P.L.L.P.
Fargo, North Dakota
January 22, 1996
<PAGE>
[Letterhead]
[LOGO]
Mueller, Walla & Albertson, P.C.
INDEPENDENT AUDITORS REPORT
The Partners,
Brookscrossing Apartments, L.P.
St. Louis, Missouri
We have audited the accompanying balance sheets of Brookscrossing Apartments,
L.P. (a limited partnership) as of December 31, 1996, 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 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 Brookscrossing Apartments, L.P.
as of December 31, 1996, 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.
/s/ Mueller, Walla & Albertson, P.C.
Certified Public Accountants
February 11, 1997
<PAGE>
[Letterhead]
[LOGO]
Mueller, Walla & Albertson, P.C.
INDEPENDENT AUDITORS REPORT
The Partners,
Brookscrossing Apartments, L.P.
St. Louis, Missouri
We have audited the accompanying balance sheets of Brookscrossing Apartments,
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 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 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 Brookscrossing Apartments, L.P.
as of December 31, 1994, and the results of its operations, changes in partners'
capital and its cash flows for the years then ended in conformity with generally
accepted accounting principles.
/s/ Mueller,Walla & Albertson, P.C.
February 7, 1995
<PAGE>
[Letterhead]
[LOGO]
Mueller, Walla & Albertson, P.C.
INDEPENDENT AUDITORS REPORT
The Partners,
Brookscrossing Apartments, L.P.
St. Louis, Missouri
We have audited the accompanying balance sheets of Brookscrossing Apartments,
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. 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 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 Brookscrossing Apartments, L.P.
as of December 31, 1995, and the results of its operations, changes in partners'
capital and its cash flows for the years then ended in conformity with generally
accepted accounting principles.
/s/ Mueller, Walla & Albertson, P.C.
February 7, 1996
<PAGE>
[Letterhead]
[LOGO]
Ziner & Company, P.C.
INDEPENDENT AUDITORS REPORT
To the Partners of
Brown-Kaplan Limited Partnership
We have audited the accompanying balance sheet of Brown-Kaplan Limited
Partnership (a Massachusetts limited partnership) (MHFA Project No. 88-002) as
of December 31, 1996, and the related statements 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.
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 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 the
partnership's 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 Brown-Kaplan Limited
Partnership as of December 31, 1996, and the changes in partners' equity, the
results of its operations and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
/s/Ziner & Company, P.C.
February 7, 1997
<PAGE>
[Letterhead]
[LOGO]
Ziner & Company, P.C.
INDEPENDENT AUDITORS REPORT
To the Partners of
Brown-Kaplan Limited Partnership
We have audited the accompanying balance sheet of Brown-Kaplan Limited
Partnership (a Massachusetts limited partnership) (MHFA Project No. 88-002) as
of December 31, 1994, and the related statements 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.
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 Brown-Kaplan Limited
Partnership, as of December 31, 1994, and the changes in partners' equity, the
results in its operations and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
/s/Ziner & Company, P.C.
February 17, 1995
<PAGE>
[Letterhead]
[LOGO]
Ziner & Company, P.C.
INDEPENDENT AUDITORS REPORT
To the Partners of
Brown-Kaplan Limited Partnership
We have audited the accompanying balance sheet of Brown-Kaplan Limited
Partnership (a Massachusetts limited partnership) (MHFA Project No. 88-002) as
of December 31, 1995, and the related statements 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.
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 Brown-Kaplan Limited
Partnership, as of December 31, 1995, and the changes in partners' equity, the
results in its operations and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
/s/Ziner & Company, P.C.
January 20, 1996
<PAGE>
[Letterhead]
[LOGO]
David G. Pelliccione, C.P.A., P.C.
INDEPENDENT AUDITORS REPORT
To the Partners
Buena Vista Limited Partnership
We have audited the accompanying balance sheet of BUENA VISTA LIMITED
PARTNERSHIP (A Limited Partnership), as of December 31, 1996 and 1995, and the
related statement of operations, changes in 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 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 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 BUENA VISTA LIMITED PARTNERSHIP
as of December 31, 1996 and 1995, and the results in its operations and cash
flows for the year then ended in conformity with generally accepted accounting
principles.
/s/ David G. Pelliccione
Savannah, Georgia
February 25, 1997
<PAGE>
[Letterhead]
[LOGO]
David G. Pelliccione, C.P.A., P.C.
INDEPENDENT AUDITORS REPORT
To the Partners
Buena Vista Limited Partnership
We have audited the accompanying balance sheet of BUENA VISTA LIMITED
PARTNERSHIP (A Limited Partnership), as of December 31, 1995 and 1994, and the
related statement of operations, changes in 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 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 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 BUENA VISTA LIMITED PARTNERSHIP
as of December 31, 1995 and 1994, and the results in its operations and cash
flows for the year then ended in conformity with generally accepted accounting
principles.
/s/ David G. Pelliccione
Savannah, Georgia
March 1, 1996
<PAGE>
[Letterhead]
[LOGO]
Halbert, Katz & Co., P.C.
INDEPENDENT AUDITORS REPORT
To the Partners
Carolina Woods Associates, Limited Partnership
Wilmington, Delaware
We have audited the accompanying balance sheet of Carolina Woods Associates,
Limited Partnership, as of December 31, 1996 and December 31, 1995, 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 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 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 Carolina Woods Associates,
Limited Partnership, as of December 31, 1996 and December 31, 1995, 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.
Our audits were conducted 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 page 11) is presented for the purpose of additional
analysis and is not a required part of the basic financial statements of
Carolina Woods Associates, Limited Partnership. 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/Halbert, Katz & Co., P.C.
January 30, 1997
<PAGE>
[Letterhead]
[LOGO]
Halbert, Katz & Co., P.C.
INDEPENDENT AUDITORS REPORT
To the Partners
Carolina Woods Associates, Limited Partnership
Wilmington, Delaware
We have audited the accompanying balance sheet of Carolina Woods Associates,
Limited Partnership, 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 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 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 Carolina Woods Associates,
Limited Partnership, as of December 31, 1995 and December 31, 1994, and the
results of its operations, changes in partners' capital (capital deficiency),
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 Carolina Woods Associates,
Limited Partnership's internal control structure.
Our audits were conducted 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 page 12) is presented for the purpose of additional
analysis and is not a required part of the basic financial statements of
Carolina Woods Associates, Limited Partnership. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial
statement 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]
Fishbein & Company, P.C.
{Letterhead}
INDEPENDENT AUDITORS REPORT
January 31, 1997
Partners
Dorsett Limited Partnership
We have audited the accompanying balance sheets of DORSETT LIMITED PARTNERSHIP
as of December 31, 1996, and the related statements of 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 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 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 financial statements referred to above present fairly, in
all material respects, the financial position of Dorsett Limited Partnership as
of December 31, 1996, 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 supplemental information included in
this report (shown on pages 9 and 10) is presented for purposes of additional
analysis and is not a required part of the basic financial statements of the
Partnership . 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/Fishbein & Company P.C.
<PAGE>
[Letterhead]
[LOGO]
FEGLEY & ASSOCIATES
INDEPENDENT AUDITORS REPORT
To the Partners
Dorsett Limited Partnership
We have audited the accompanying balance sheets of Dorsett 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
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 Dorsett 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]
MISCHLER, NURRE, WAITE
INDEPENDENT AUDITORS REPORT
To the Partners of
Findlay Market Limited Partnership
Boston, Massachusetts
We have audited the accompanying balance sheet of Findlay Market Limited
Partnership, as of December 31, 1995, and the related statements of revenue and
expenses, changes in partners' capital and cash flows for the year 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 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 Findlay Market 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>
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 the report
shown on pages 13-14 is presented for the purposes of additional analysis and is
not a required part of the basic financial statements of Findlay Market Limited
Partnership. Such information has been subjected to the auditing procedures
applied in the audit of the basic financial statement and, in our opinion, is
fairly stated in all material respects in relation to the financial statements
taken as a whole.
/s/ MISCHLER, NURRE, WAITE, Ltd.
MISCHLER, NURRE, WAITE, Certified Public Accountants
Cincinnati, Ohio
February 23, 1996
<PAGE>
[Letterhead]
[LOGO]
MISCHLER, NURRE, WAITE
INDEPENDENT AUDITORS REPORT
To the Partners of
Findlay Market Limited Partnership
Boston, Massachusetts
We have audited the accompanying balance sheet of Findlay Market Limited
Partnership, as of December 31, 1994, and the related statements of revenue and
expenses, changes in partners' capital and cash flows for the year 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 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 Findlay Market 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. <PAGE>
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 the report
shown on pages 13-14 is presented for the purposes of additional analysis and is
not a required part of the basic financial statements of Findlay Market Limited
Partnership. Such information has been subjected to the auditing procedures
applied in the audit of the basic financial statement and, in our opinion, is
fairly stated in all material respects in relation to the financial statements
taken as a whole.
/s/ MISCHLER, NURRE, WAITE, Ltd.
MISCHLER, NURRE, WAITE, Certified Public Accountants
Cincinnati, Ohio
February 23, 1995
<PAGE>
[Letterhead]
[LOGO]
Kirschner Hutton Perlin, P.C.
INDEPENDENT AUDITORS REPORT
January 22, 1997
Gobles Limited Dividend Housing Association
Limited Partnership
We have audited the accompanying balance sheet of Gobles Limited Dividend
Housing Association Limited Partnership as of December 31, 1996 and 1995, and
the related statements of operations, 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 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 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 Gobles Limited Dividend Housing
Association Limited Partnership as of December 31, 1996 and 1995, and the
results of its operations and its cash flows for the years then ended in
conformity with generally accepted accounting principles.
/s/ Kirschner Hutton Perlin, P.C.
<PAGE>
[Letterhead]
[LOGO]
Kirschner Hutton Perlin, P.C.
INDEPENDENT AUDITORS REPORT
January 11, 1996
To the Partners of
Gobles Limited Dividend Housing Association
Limited Partnership
We have audited the accompanying balance sheet of Gobles Limited Dividend
Housing Association Limited Partnership, as of December 31, 1995 and 1994, and
the related statements of 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 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 Gobles Limited Dividend Housing
Association 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/ Kirschner Hutton Perlin, P.C.
<PAGE>
[Letterhead]
FLOYD & COMPANY
306 Commercial Drive, Suite 202 Post Office Box 14251
Savannah, Georgia 31406 Savannah, Georgia
Phone: (912) 355-9969
INDEPENDENT AUDITORS REPORT
To the General Partners of
Greentree Village Limited Partnership
We have audited the accompanying balance sheets of Greentree Village Limited
Partnership (a Georgia Limited Partnership), as of December 31, 1996 and the
related statements of 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 audits.
The financial statement information for the year ending December 31, 1995 was
audited by another independent certified public accountant who expressed an
opinion dated March 16, 1996.
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 Greentree Village Limited
Partnership (a Georgia Limited Partnership), as of December 31, 1996 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 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, except for
the portion market "unaudited", on which we express no opinion, has been
subjected to the 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.
Floyd & Company, C.P.A.
/s/R. Doug Floyd
February 28, 1997
<PAGE>
[Letterhead]
[LOGO]
David C. Moja, C.P.A., P.C.
INDEPENDENT AUDITORS REPORT
To the General Partners of
Greentree Village Limited Partnership
We have audited the accompanying balance sheets of Greentree Village Limited
Partnership (a Georgia Limited Partnership), as of December 31, 1995 and
December 31, 1994, and the related statements of operations, 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 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 Greentree Village Limited
Partnership (a Georgia Limited Partnership), 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.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information 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, except for
the portion market "unaudited", on which we express no opinion, has been
subjected to the 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/David C. Moja. C.P.A., P.C.
David C. Moja. C.P.A., P.C
March 11, 1996
Savannah, Georgia
<PAGE>
[Letterhead]
[LOGO]
VACEK, LANGE, & WESTERFIELD, P.C.
INDEPENDENT AUDITORS REPORT
To the Partners of
Lakeside Square Limited Partnership
We have audited the accompanying balance sheets of Lakeside Square Limited
Partnership, a limited partnership, (HUD Project No. IL06-E000-093), as of
December 31, 1996, and the related statements of profit and loss, changes in
partners' capital, and cash flows for the year then ended. These financial
statements are the responsibility of the Partnership's Managing general partner.
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 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 the managing general partner, 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 Lakeside Square Limited
Partnership as of December 31, 1996, 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.
In accordance with Government Auditing Standards, we have also issued reports
dated January 22 and January 24, 1997 on our consideration of Lakeside Square
Limited Partnership's (the "Partnership") internal control structure and the
Partnership's compliance with laws and regulations, respectively.
The supplementary data included in the report (shown on pages 13 to 20) are
presented for the purposes of additional analysis and are not a required part of
the basic financial statements of Lakeside Square Limited Partnership. Such
information has been subjected to the auditing procedures applied in the audit
of the basic financial statements and, in our opinion, is fairly presented in
all material respects, in relation to the financial statements taken as a whole.
/s/ VACEK, LANGE, & WESTERFIELD, P.C.
Houston, Texas
January 22, 1997
<PAGE>
[Letterhead]
[LOGO]
VACEK, LANGE, & WESTERFIELD, P.C.
INDEPENDENT AUDITORS REPORT
To the Partners of
Lakeside Square Limited Partnership
We have audited the accompanying balance sheets of Lakeside Square Limited
Partnership, a limited partnership (HUD Project No. IL06-E000-093), as of
December 31, 1995, and the related statements of profit and loss, partners'
capital, and cash flows for the year then ended. These financial statements are
the responsibility of the Partnership's general partner. 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 Lakeside Square Limited
Partnership, as of December 31, 1995, 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.
In accordance with Government Auditing Standards, we have also issued reports
dated January 26, 1996 on our consideration of Lakeside Square Limited
Partnership's (the "Partnership") internal control structure and the
Partnership's compliance with laws and regulations.
The supplementary data included in the report (shown on pages 13 to 20) are
presented for the purposes of additional analysis and are not a required part of
the basic financial statements of Lakeside Square Limited Partnership. 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 basic financial statements taken as a
whole.
/s/ VACEK, LANGE, & WESTERFIELD, P.C.
Houston, Texas
January 26, 1996
<PAGE>
[Letterhead]
[LOGO]
VACEK, LANGE, & WESTERFIELD, P.C.
INDEPENDENT AUDITORS REPORT
To the Partners of
Lakeside Square Limited Partnership
We have audited the accompanying balance sheets of Lakeside Square Limited
Partnership, a limited partnership (HUD Project No. IL06-E000-093), as of
December 31, 1994, and the related statements of profit and loss, changes in
partners' capital, and cash flows for the year then ended. These financial
statements are the responsibility of the Partnership's managing general partner.
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 Lakeside Square 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 conducted for the purpose of forming an opinion on the financial
statements taken as a whole. The supplementary data included in the report
(shown on pages 13 to 19) are presented for the purposes of additional analysis
and are not a required part of the basic financial statements of Lakeside Square
Limited Partnership. 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 basic
financial statements taken as a whole.
/s/ VACEK, LANGE, & WESTERFIELD, P.C.
Houston, Texas
January 25, 1995
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS REPORT
To the Partners
Leawood Associates, L.P.
We have audited the accompanying balance sheets of Leawood Associates, L.P., as
of December 31, 1996 and 1995, and the related statements of 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 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 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 Leawood Associates, L.P., as of
December 31, 1996 and 1995, and the results of its operations, changes in
partners' capital and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
/s/ Reznick Fedder & Silverman
Boston, Massachusetts
January 25, 1997
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS REPORT
To the Partners
Leawood Associates, L.P.
We have audited the accompanying balance sheets of Leawood Associates, L.P., as
of December 31, 1995, and the related statements of 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 Leawood Associates, L.P. as of and for the year ended
December 31, 1994 were audited by other auditors whose report thereon dated
February 1, 1995m expressed an unqualified opinion on those 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 financial statements referred to above present fairly, in
all material respects, the financial position of Leawood Associates, L.P., as of
December 31, 1995, 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.
/s/ Reznick Fedder & Silverman
Boston, Massachusetts
January 29, 1996
<PAGE>
[Letterhead]
[LOGO]
Coopers & Lybrand L.L.P.
INDEPENDENT AUDITORS REPORT
To the Partners of
Leawood Associates, L.P.
(a Limited Partnership):
We have audited the accompanying balance sheets of Leawood Associates, L.P. (a
Limited Partnership), 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.
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 Leawood Associates, L.P. (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.
/s/ Coopers & Lybrand L.L.P.
Boston, Massachusetts
February 1, 1995
<PAGE>
[Letterhead]
[LOGO]
OUELLETTE, LABONTE, ROBERGE & ALLEN, P.A.
INDEPENDENT AUDITORS REPORT
The Partners
Lincoln Green Associates
Limited Partnership
We have audited the accompanying balance sheets of Lincoln Green Associates
Limited Partnership, a limited partnership (HUD Project No. IL06-E000-093), as
of December 31, 1996 and 1995, and the related statements of income (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 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 Lincoln Green Associates
Limited Partnership, as of December 31, 1996 and 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 conducted for the purpose of forming an opinion on the financial
statements taken as a whole. The additional information included in the
Schedules 1 through 2 is presented for the purposes of additional analysis and
are 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 basic financial statements taken as a whole.
/s/ OUELLETTE, LABONTE, ROBERGE & ALLEN
February 4, 1997
Lewiston, Maine
<PAGE>
[Letterhead]
[LOGO]
OUELLETTE, LABONTE, ROBERGE & ALLEN, P.A.
INDEPENDENT AUDITORS REPORT
The Partners
Lincoln Green Associates
Limited Partnership
We have audited the accompanying balance sheets of Lincoln Green Associates
Limited Partnership, a limited partnership (HUD Project No. IL06-E000-093), as
of December 31, 1995 and 1994, and the related statements of income (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 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 Lincoln Green Associates
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 audit was conducted for the purpose of forming an opinion on the financial
statements taken as a whole. The additional information included in the
Schedules 1 through 3 is presented for the purposes of additional analysis and
are 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 basic financial statements taken as a whole.
/s/ OUELLETTE, LABONTE, ROBERGE & ALLEN
February 6, 1996
Lewiston, Maine
<PAGE>
[Letterhead]
[LOGO]
Ernst & Young LLP Suite 500 Phone 202-775-1880
1150 18th Street, N.W. Fax 202-833-2019
Washington D. C. 20036
INDEPENDENT AUDITORS REPORT
To the Partners
Kenilworth Associates Ltd.
We have audited the accompanying balance sheet of Kenilworth Associates Ltd., a
Limited Partnership, (the "Partnership"), as of December 31, 1996, and the
related statements of profit and 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
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 Kenilworth Associates Ltd., a
Limited Partnership, as of December 31, 1996, and the results of its operations
and cash flows for the years then ended in conformity with generally accepted
accounting principles.
/s/ Ernst & Young LLP
January 31, 1997
<PAGE>
[Letterhead]
[LOGO]
Kenneth Leventhal & Company
INDEPENDENT AUDITORS REPORT
To the Partners
Kenilworth Associates Ltd.
Washington, D.C.
We have audited the accompanying balance sheet of Kenilworth Associates Ltd., a
Limited Partnership, (the "Partnership") as of December 31, 1995, and the
related statements of profit and 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 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 Kenilworth Associates Ltd. a
Limited Partnership, as of December 31, 1995, and the results of its operations
and cash flows for the years then ended in conformity with generally accepted
accounting principles.
/s/ Ernst & Young LLP
January 26, 1996
<PAGE>
[Letterhead]
[LOGO]
Kenneth Leventhal & Company
INDEPENDENT AUDITORS REPORT
To the Partners HUD Field Office Director
Kenilworth Associates Ltd. HUD Building, Room 3158
Washington, D.C. 451 7th Street Southwest
Washington, D.C. 20410-5500
We have audited the accompanying balance sheets of Kenilworth Associates Ltd. A
Limited Partnership, FHA Project No. 000-44160/000-35349 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 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 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 Kenilworth Associates Ltd. A
Limited Partnership, FHA Project No. 000-44160/000-35349, as of December 31,
1994, and the results of its operations and cash flows for the years then ended
in conformity with generally accepted accounting principles.
<PAGE>
Kenilworth Associates Ltd.
FHA Project No. 000-44160/000-35349
Page Two
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information included in
the report, as referred to in the Table of Contents, is presented for the
purposes of additional analysis and are 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, unless
otherwise notes, and in our opinion, is fairly stated in all material respects
in relation to the basic financial statements taken as a whole.
/s/ Kenneth Leventhal & Company
Washington, D.C.
January 30, 1995
<PAGE>
[Letterhead]
[LOGO]
KIRSCHNER HUTTON PERLIN, P.C.
INDEPENDENT AUDITORS REPORT
January 14, 1997
Partners
Milan Apartments Company Limited Partnership
We have audited the accompanying balance sheet of Milan Apartments Company
Limited Partnership, RECD Project No. 26-58-382867000, as of December 31, 1996
and 1995, and the related statements of 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 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 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 Milan Apartments Company
Limited Partnership as of December 31, 1996 and 1995, 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 14, 1997, on our consideration of Milan Apartments Company Limited
Dividend Housing Association Limited Partnership's internal control structure
and a report dated January 14, 1997, on its compliance with laws and
regulations.
/s/ Kirschner Hutton Perlin, P.C.
<PAGE>
[Letterhead]
[LOGO]
KIRSCHNER HUTTON PERLIN, P.C.
INDEPENDENT AUDITORS REPORT
January 23, 1996
Partners
Milan Apartments Company Limited Partnership
We have audited the accompanying balance sheet of Milan Apartments Company
Limited Partnership, RECD Project No. 26-58-382867000, as of December 31, 1995
and 1994, and the related statements of 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 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 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 Milan Apartments Company
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.
In accordance with Government Auditing Standards, we have also issued a report
dated January 23, 1996, on our consideration of Milan Apartments Company Limited
Dividend Housing Association Limited Partnership's internal control structure
and a report dated January 23, 1996, on its compliance with laws and
regulations.
/s/ Kirschner Hutton Perlin, P.C.
<PAGE>
[Letterhead]
[LOGO]
JOHN J. LEHOTAN C.P.A.
To The Partners of Oakview Square
Limited Partnership
Detroit, Michigan
INDEPENDENT AUDITORS REPORT
I have audited the accompanying balance sheet of Oakview Square Limited
Partnership, a Michigan limited partnership, as of December 31, 1996, and the
related statements of profit and loss, partners' equity and cash flow for the
year then ended. These financial statements are the responsibility of the
Partnership'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.
Those standards require that I plan and perform the audit 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.
I believe that my audit provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all
material respects, the financial positions of Oakview Square Limited Partnership
as of December 31, 1996 and the results of its operations and its cash flow for
the year then ended in conformity with generally accepted accounting principles.
/s/John J. Lehotan
Certified Public Accountants
February 6, 1997
<PAGE>
[Letterhead]
[LOGO]
JOHN J. LEHOTAN C.P.A.
To The Partners of Oakview Square
Limited Partnership
Detroit, Michigan
INDEPENDENT AUDITORS REPORT
I have audited the accompanying balance sheet of Oakview Square Limited
Partnership, a Michigan limited partnership, as of December 31, 1995, and the
related statements of profit and loss, partners' equity and cash flow for the
year then ended. These financial statements are the responsibility of the
Partnership'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.
Those standards require that I plan and perform the audit 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.
I believe that my audit provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all
material respects, the financial positions of Oakview Square Limited Partnership
as of December 31, 1995 and the results of its operations and its cash flow for
the year then ended in conformity with generally accepted accounting principles.
/s/John J. Lehotan
Certified Public Accountants
February 14, 1996
<PAGE>
[Letterhead]
[LOGO]
JOHN J. LEHOTAN C.P.A.
To The Partners of Oakview Square
Limited Partnership
Detroit, Michigan
INDEPENDENT AUDITORS REPORT
I have audited the accompanying balance sheet of Oakview Square Limited
Partnership, a Michigan limited partnership, as of December 31, 1994, and the
related statements of profit and loss, partners' equity and cash flow for the
year then ended. These financial statements are the responsibility of the
Partnership'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.
Those standards require that I plan and perform the audit 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.
I believe that my audit provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all
material respects, the financial positions of Oakview Square Limited Partnership
as of December 31, 1994 and the results of its operations and its cash flow for
the year then ended in conformity with generally accepted accounting principles.
/s/John J. Lehotan
Certified Public Accountants
February 22, 1995
<PAGE>
[Letterhead]
[LOGO]
HORWATH VELEZ SEMPRIT NIEVES & CO.
INDEPENDENT AUDITORS' REPORT ON FINANCIAL STATEMENTS
Partners
Orocovix Limited Dividend Partnership, S.E.
San Juan, Puerto Rico
We have audited the accompanying balance sheets of Orocovix Limited Dividend
Partnership, S.E. as of December 31, 1996 and 1995, and the related statements
of operations, 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 audit.
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 Orocovix Limited Dividend
Partnership, S.E. as of December 31, 1996 and 1995, and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
/s/HORWATH VELEZ SEMPRIT NIEVES & CO.
February 4, 1997
<PAGE>
[Letterhead]
[LOGO]
HORWATH VELEZ SEMPRIT NIEVES & CO.
Partners
Orocovix Limited Dividend Partnership, S.E.
San Juan, Puerto Rico
INDEPENDENT AUDITORS REPORT ON FINANCIAL STATEMENTS
We have audited the accompanying balance sheets of Orocovix Limited Dividend
Partnership, S.E., as of December 31, 1995 and 1994, and the related statements
of operations, 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 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 Orocovix Limited Dividend
Partnership, S.E. 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/HORWATH VELEZ SEMPRIT NIEVES & CO.
February 2, 1996
<PAGE>
[Letterhead]
[LOGO]
J.A. PLUMER & CO., P.A.
INDEPENDENT AUDITOR'S REPORT
February 10, 1997
Partners
Prince Street Towers Limited Partnership
Washington, D.C.
We have audited the accompanying statements of financial position of Prince
Street Towers Limited Partnership, PHFA Project No. R-414-8E, A Limited
Partnership, as of December 31, 1996 and 1995, 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 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 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 Prince Street Towers Limited
Partnership at December 31, 1996 and 1995, and the results of its operations and
its cash flows for the years then ended in conformity with generally accepted
accounting principles.
/s/ J.A. PLUMER & CO., P.A.
Certified Public Accountants
<PAGE>
[Letterhead]
[LOGO]
J.A. PLUMER & CO., P.A.
INDEPENDENT AUDITOR'S REPORT
February 12, 1996
Partners
Prince Street Towers Limited Partnership
Washington, D.C.
We have audited the accompanying statements of financial position of Prince
Street Towers Limited Partnership, PHFA Project No. R-414-8E, A Limited
Partnership, 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 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 Prince Street Towers 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/ J.A. PLUMER & CO., P.A.
Certified Public Accountants
<PAGE>
[Letterhead]
[LOGO]
PLANTE & MORAN, LLP
To the Partners
East Rusk Housing Associates, Ltd.
(d/b/a Pinewood Terrace Apartments)
INDEPENDENT AUDITORS' REPORT
We have audited the accompanying balance sheets of East Rusk Housing Associates,
Ltd., (a Texas limited partnership) (d/b/a Pinewood Terrace Apartments), RECD
Project No. 49-037-752269877, as of December 31, 1995, and the related
statements of 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 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.
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 3, 1996, on our consideration of the Partnership's internal
control structure and a report dated February 3, 1996, on its compliance with
laws and regulations.
/s/Plante & Moran LLP
February 3, 1996
<PAGE>
[Letterhead]
[LOGO]
Deloitte & Touche LLP
INDEPENDENT AUDITORS' REPORT
To the Partners of
Sencit Towne House Limited Partnership
Washington, D.C.
We have audited the accompanying balance sheets of Sencit Towne House Limited
Partnership A Limited Partnership, PHFA Project No. R389-8E, 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 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, such financial statements present fairly, in all material
respects, the financial statements of Sencit Towne House 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 25, 1996
<PAGE>
[Letterhead]
[LOGO]
Deloitte & Touche LLP
INDEPENDENT AUDITORS' REPORT
To the Partners of
Allentown Towne House Limited Partnership
Washington, D.C.
We have audited the accompanying balance sheets of Allentown Towne House Limited
Partnership A Limited Partnership, PHFA Project No. R-187-8E, 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 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, such financial statements present fairly, in all material
respects, the financial statements of Allentown Towne House 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 25, 1996
<PAGE>
[Letterhead]
[LOGO]
Paul E. Campbell
INDEPENDENT AUDITORS' REPORT
To the Partners
of West Pine Associates
Huntington, West Virginia 25704
I have audited the accompanying balance sheets of West Pine Associates, as of
December 31, 1996 and 1995, and the related statements of income, partners'
capital, 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 audits.
I conducted my 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 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 audits provide a reasonable basis for my
opinion.
In my opinion, such financial statements present fairly, in all material
respects, the financial statements of West Pine Associates as of December 31,
1996 and 1995, 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 made for the purpose of forming an opinion on the basic financial
statements taken as a whole.
/s/Paul E. Campbell
January 16, 1997
<PAGE>
[Letterhead]
[LOGO]
Paul E. Campbell
INDEPENDENT AUDITORS' REPORT
To the Partners
of West Pine Associates
Huntington, West Virginia 25704
I have audited the accompanying balance sheets of West Pine Associates, as of
December 31, 1995 and 1994, and the related statements of income, partners'
capital, 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 audits.
I conducted my 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 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 audits provide a reasonable basis for my
opinion.
In my opinion, such financial statements present fairly, in all material
respects, the financial statements of West Pine Associates 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.
My audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole.
/s/Paul E. Campbell
January 23, 1996
<PAGE>
[Letterhead]
[LOGO]
Kirschner Hutton Perlin, P.C.
INDEPENDENT AUDITORS' REPORT
January 23, 1997
Partners
Whitehills II Apartments Company Limited Partnership
We have audited the accompanying balance sheet of Whitehills II Apartments
Company Limited Partnership as of December 31, 1996 and 1995, and the related
statements of operations, 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 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 referred to above present fairly, in
all material respects, the financial position of Whitehills II Apartments
Company Limited Partnership as of December 31, 1996 and 1995, and the results of
its operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
/s/ Kirschner Hutton Perlin, P.C.
<PAGE>
[Letterhead]
[LOGO]
Kirschner Hutton Perlin, P.C.
INDEPENDENT AUDITORS' REPORT
January 17, 1996
Partners
Whitehills II Apartments Company Limited Partnership
We have audited the accompanying balance sheet of Whitehills II Apartments
Company Limited Partnership as of December 31, 1995 and 1994, and the related
statements of 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 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, such financial statements present fairly, in all material
respects, the financial statements of Whitehills II Apartments Company 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/ Kirschner Hutton Perlin, P.C.
<PAGE>
[Letterhead]
[LOGO]
Cleveland & Company, P.C.
INDEPENDENT AUDITORS' REPORT
To the Partners of
Willow Ridge Development Company Limited Partnership
Prescott, Arizona
We have audited the accompanying balance sheet of Willow Ridge Development
Company Limited Partnership (FHA Project No. 123-94010, formerly Project No.
123-36610) as of December 31, 1996, and the related statements of operations,
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 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 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 Willow Ridge Development
Company Limited Partnership (FHA Project No. 123-94010 formerly Project No.
123-36610), as of December 31, 1996, and the results of its operations, and the
changes in partner's equity and cash flows for the year then ended in conformity
with generally accepted accounting principles.
In accordance with Government Auditing Standards, and the Consolidated Audit
Guide for Audits for HUD Programs issued by the U.S. Department of Housing and
Urban Development, we have also issued a report dated February 10, 1997, on our
consideration of Willow Ridge Development Company Limited Partnership's internal
control structure, and reports dated February 10, 1997, on its compliance with
specific requirements applicable to major HUD programs, and specific
requirements applicable to Affirmative Fair Housing.
The accompanying supplementary information (shown on pages 11-24) are 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 basic
financial statements taken as a whole.
/s/Cleveland & Company, P.C.
Certified Public Accountants
Federal Employer I.D. No. 86-0564541
February 10, 1997
<PAGE>
[Letterhead]
[LOGO]
Cleveland & Company, P.C.
INDEPENDENT AUDITORS' REPORT
To the Partners of
Willow Ridge Development Company Limited Partnership
Prescott, Arizona
We have audited the accompanying balance sheet of Willow Ridge Development
Company Limited Partnership (FHA Project No. 123-94010, formerly Project No.
123-36610), as of December 31, 1995, and the related statements of operations,
changes in 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
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, such financial statements present fairly, in all material
respects, the financial statements of Willow Ridge Development Company Limited
Partnership (FHA Project No. 123-94010, formerly Project No. 123-36610), as of
December 31, 1995, and the results of its operations, and the changes in
partner's equity and 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 24, 1996, on our consideration of Willow Ridge Development Company
Limited Partnership's internal control structure, and reports dated January 24,
1996, on its compliance with specific requirements applicable to major HUD
programs, and specific requirements applicable to Affirmative Fair Housing.
The accompanying supplementary information (shown on pages 11-24) are 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 basic
financial statements taken as a whole.
/s/Cleveland & Company, P.C.
January 24, 1996
<PAGE>
[Letterhead]
[LOGO]
Cleveland & Company, P.C.
INDEPENDENT AUDITORS' REPORT
To the Partners of
Willow Ridge Development Company Limited Partnership
Prescott, Arizona
We have audited the accompanying balance sheet of Willow Ridge Development
Company Limited Partnership (FHA Project No. 123-94010, formerly Project No.
123-36610) as of December 31, 1994, and the related statements of operations,
changes in 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
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 Willow Ridge Development
Company Limited Partnership (FHA Project No. 123-94010, formerly Project No.
123-36610) as of December 31, 1994, and the results of its operations, and the
changes in partner's 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 supplementary information (pages 11-32) are
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 basic
financial statements taken as a whole.
/s/Cleveland & Company, P.C.
Certified Public Accountants
Federal Employer ID No. 0564541
February 2, 1995
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 288,153
<SECURITIES> 1,056,590
<RECEIVABLES> 23,778
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 243,734<F1>
<PP&E> 15,217,196
<DEPRECIATION> 000
<TOTAL-ASSETS> 36,632,053<F2>
<CURRENT-LIABILITIES> 000
<BONDS> 000
000
000
<COMMON> 000
<OTHER-SE> 21,262,508
<TOTAL-LIABILITY-AND-EQUITY> 36,632,053<F3>
<SALES> 000
<TOTAL-REVENUES> 2,099,229<F4>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 3,960,512<F5>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 987,379
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (5,503,780)<F6>
<EPS-PRIMARY> (88.08)
<EPS-DILUTED> 000
<FN>
<F1>Included in current assets: Mortgagee escrow deposits $106,501, Tenant
security deposits $98,963 and Other current assets $38,270. <F2>Included in
total assets: Investments in Local Limited Partnerships $19,593,420, Deferred
charges, net $209,182.
<F3>Included in Total Liabilities and Equity: Accounts payable to affiliates
$390,926, Accounts payable and accrued expenses $366,076, Mortgage notes
payable $11,111,888, Interest payable of $507,457, Tenant
security deposits payable of $89,709, Payable to affiliated developer
$2,482,000 and Minority interest in Local Limited Partnerships $421,489.
<F4>Total revenue includes: Rental $1,846,570, Investment $130,027, Other
$122,632.
<F5>Included in Other Expenses: Asset management fees, related party $250,509,
General and administrative $462,680, Bad debt $300,835, Rental operations,
exclusive of depreciation $1,170,804, Property management fees $129,241,
Provision for valuation of investments in Local Limited Partnerships of
$791,830, Depreciation $746,829 and Amortization $107,784.
<F6>Net loss reflects: Equity in losses of Local Limited Partnerships of
$2,747,270 and Minority interest in losses of Local Limited Partnerships
$92,152.
</FN>
</TABLE>
