June 29, 1998
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Boston Financial Qualified Housing Tax Credits L.P. V
Annual Report on Form 10-K for the Year Ended March 31, 1998
Commission File Number 0-19706
Dear Sir / Madam:
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/Dianne Groark
Dianne Groark
Assistant Controller
QH510K-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, 1998 0-19706
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(Exact name of registrant as specified in its charter)
Massachusetts 04-3054464
(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 non-affiliates of
the registrant.
$60,904,650 as of March 31, 1998
<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 - 5 to the
Form S-11 Registration Statement, File # 33-29935 Part I, Item 1
Acquisition Reports Part I, Item 1
Post-effective amendment No. 6 to the Registration
Statement on Form S-11, File # 33-29935 Part III, Item 12
Prospectus - Sections Entitled:
"Estimated Use of Proceeds" Part III, Item 13
"Management Compensations 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. V
(A Limited Partnership)
ANNUAL REPORT ON FORM 10-K
FOR THE YEAR ENDED MARCH 31, 1998
TABLE OF CONTENTS
Page No.
PART I
Item 1 Business K-3
Item 2 Properties K-6
Item 3 Legal Proceedings K-12
Item 4 Submission of Matters to a Vote of
Security Holders K-12
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-17
Item 9 Changes in and Disagreements with Accountants
on Accounting and Financial Disclosure K-17
PART III
Item 10 Directors and Executive Officers
of the Registrant K-18
Item 11 Management Remuneration K-19
Item 12 Security Ownership of Certain Beneficial
Owners and Management K-20
Item 13 Certain Relationships and Related Transactions K-20
PART IV
Item 14 Exhibits, Financial Statement Schedules and
Reports on Form 8-K K-23
SIGNATURES K-24
<PAGE>
PART I
Item 1. Business
Boston Financial Qualified Housing Tax Credits L.P. V (the "Partnership") is a
Massachusetts limited partnership formed on June 16, 1989 under the laws of the
State 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 $68,928,650 ("Gross Proceeds"), net of discounts of $350,
through the sale of 68,929 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 August 31, 1991. No
further sale of Units is expected.
The Partnership is engaged solely in the business of real estate investment. On
March 1, 1997, an affiliate of the Partnership's Managing General Partner,
Boston Financial GP1-LLC, became the Local General Partner of Burbank Limited
Partnership I ("Burbank"). As a result, the Partnership was deemed to have
control over Burbank (the "Combined Entity") 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, 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.
The Partnership has invested as a limited partner in other limited partnerships
("Local Limited Partnerships") which own and operate residential apartment
complexes ("Properties") some of which benefit from some form of federal, state
or local assistance programs and all of which qualify for the low-income housing
tax credits ("Tax Credits") 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
each Local Limited Partnership interest have been described in supplements to
the Prospectus and collected in the 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 A
SELECTED LOCAL LIMITED
PARTNERSHIP DATA
<TABLE>
<CAPTION>
Date
Properties Owned by Local Interest
Limited Partnerships* Location Acquired
- -------------------------------- ---------------------- --------------
<S> <C> <C>
Strathern Park/Lorne Park (1) Los Angeles, CA 07/05/90
Park Caton Catonsville, MD 08/17/90
Cedar Lane I London, KY 09/10/90
Silver Creek II Berea, KY 08/15/90
Rosecliff Sanford, FL 09/18/90
Brookwood Ypsilanti, MI 10/01/90
Oaks of Dunlop Colonial Heights, VA 01/01/91
Water Oak Orange City, FL 01/01/91
Yester Oaks Lafayette, GA 01/01/91
Ocean View Fernandina Beach, FL 01/01/91
Wheeler House Nashua, NH 01/01/91
Archer Village Archer, FL 01/01/91
Timothy House Towson, MD 03/05/91
Westover Station Newport News, VA 03/30/91
Carib III St. Croix, VI 03/21/91
Carib II St. Croix, VI 03/01/91
Whispering Trace Woodstock, GA 05/01/91
New Center Detroit, MI 06/27/91
Huguenot Park New Paltz, NY 06/26/91
Hillwood Pointe Jacksonville, FL 07/19/91
Pinewood Pointe Jacksonville, FL 07/31/91
Westgate Bismark, ND 07/25/91
Woodlake Hills Pontiac, MI 08/01/91
Bixel House Los Angeles, CA 07/31/91
Magnolia Villas North Hollywood, CA 07/31/91
Schumaker Place Salisbury, MD 09/20/91
Circle Terrace Lansdowne, MD 12/06/91
</TABLE>
* The Partnership's interest in profits and losses of each Local Limited
Partnership arising from normal operations is approximately 99% except for
a 95% interest in Strathern Park/Lorne Park Apartments and an 88.6%
interest in Huguenot Park. Profits and losses arising from sale or
refinancing transactions are allocated in accordance with the respective
Local Limited Partnership Agreements.
(1) On January 1, 1994, Lorne Park merged into Strathern Park in a business
combination accounted for as a pooling of interests. Lorne Park's total
assets, liabilities and partners' equity were combined with Strathern Park
at their existing book value, and neither partnership recognized a gain or
loss on the merger.
<PAGE>
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, to the extent it reflects 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.
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, 1998, 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 capital contributions to Local Limited Partnerships: (i)
Timothy House and Maidens Choice, representing 10.05%, have Shelter Development
Corp. as Local General Partner; (ii) Hillwood Pointe, Pinewood Pointe and
Whispering Trace, representing 11.89%, have Flournoy Development Co. as Local
General Partner; (iii) Silver Creek and Cedar Lane, representing .87%, have
Robinson A. Williams as Local General Partner; (iv) Water Oak, Yester Oaks and
Ocean View, representing 1.71%, have Seals & Associates, Inc. & E. Lamar Seals
as Local General Partners; (v) Bixel House and Harmony Apartments, representing
7.05%, have Julian Weinstock Construction Co., Inc. as Local General Partner;
and (vi) Carib Villas II and Carib Villas III, representing 1.21%, have First
Centrum Corp. as Local General Partner (BF Lansing Limited Partnership, an
affiliate of the Managing General Partner, became the Administrative General
Partner in Carib Villas II and Carib Villas III on January 31, 1993). The Local
General Partners of the remaining Local Limited Partnerships are identified in
the Acquisition Reports, which are incorporated herein by this reference.
The Properties owned by the 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 local conditions,
such as competitive over-building, 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
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 V, Inc., the Managing General Partner
of the Partnership. The other General Partner of the Partnership is Arch Street
V 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, an affiliate of the General Partners, for certain
expenses and overhead costs. A complete discussion of the management of the
Partnership is set forth in Item 10 of this Report.
<PAGE>
Item 2. Properties
The Partnership owns limited partnership interests in twenty-seven Local Limited
Partnerships which own and operate Properties, some of which benefit from some
form of federal, state or local assistance programs and all of which qualify for
the Tax Credits added to the Code by the Tax Reform Act of 1986. The
Partnership's ownership interest in each Local Limited Partnership is generally
99%, except for Strathern Park/Lorne Park, Westgate and Huguenot Park, where the
Partnership's ownership interest is 95%, 49.5% and 88.6%, respectively.
Each of the Local Limited Partnerships has received an allocation of Tax Credits
from 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. To date, none of the Local Limited Partnerships have suffered an
event of recapture of Tax Credits.
In addition, some of the Local Limited Partnerships have obtained one or a
combination of different types of loans such as: i) below market rate interest
loans; ii) loans provided by a redevelopment agency of the town or city in which
the property is located at favorable terms; and iii) loans that 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 Paid Mortgage loans Occupancy
Local Limited Partnership Number Committed at through payable at Type at
Property Name of March 31, March 31, December 31, of March 31,
Property Location Apt. Units 1998 1998 1997 Subsidy* 1998
- ------------------------- ----------- -------------- -------------- --------------- ------------- ----------
<S> <C> <C> <C> <C> <C> <C>
Strathern Park/Lorne Park, a
California Limited Partnership (1)
Strathern Park/Lorne Park
Los Angeles, CA 241 $8,418,667 $8,418,667 $17,482,959 None 99%
Maiden Choice Limited
Partnership
Park Caton
Catonsville, MD 101 2,513,300 2,513,300 4,036,347 None 96%
Cedar Lane I, Ltd.
Cedar Lane I
London, KY 36 288,587 288,587 1,115,791 None 100%
Silver Creek II, Ltd.
Silver Creek II
Berea, KY 24 193,278 193,278 770,058 None 100%
Tompkins/Rosecliff, Ltd.
Rosecliff
Sanford, FL 168 3,604,720 3,604,720 5,591,237 None 98%
Brookwood L.D.H.A.
Brookwood
Ypsilanti, MI 81 2,373,295 2,373,295 3,040,777 None 96%
Water Oak Apartment, L.P.
Water Oak
Orange City, FL 40 293,519 293,519 1,258,505 None 100%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Total Paid Mortgage loans Occupancy
Local Limited Partnership Number Committed at through payable at Type at
Property Name of March 31, March 31, December 31, of March 31,
Property Location Apt. Units 1998 1998 1997 Subsidy* 1998
- ---------------------------- ------------ -------------- ------------ --------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
Yester Oaks, L.P.
Yester Oaks
Lafayette, GA 44 319,254 319,254 1,289,338 FmHA 95%
Ocean View Apartments, L.P.
Ocean View
Fernandina Beach, FL 42 334,177 334,177 1,369,108 None 97%
Burbank Limited Partnership I
Wheeler House
Nashua, NH 17 300,531 300,531 707,659 Section 8 99%
Archer Village, Ltd.
Archer Village
Archer, FL 24 171,380 171,380 710,331 FmHA 92%
The Oaks of Dunlop Farms, L.P.
Oaks of Dunlop
Colonial Heights, VA 144 2,791,280 2,791,280 4,441,748 None 100%
Timothy House Limited
Partnership
Timothy House
Towson, MD 112 3,064,250 3,064,250 2,537,465 None 100%
Westover Station Associates, L.P.
Westover Station
Newport News, VA 108 1,972,947 1,972,947 2,668,441 None 99%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Total Paid Mortgage loans Occupancy
Local Limited Partnership Number Committed at through payable at Type at
Property Name of March 31, March 31, December 31, of March 31,
Property Location Apt. Units 1998 1998 1997 Subsidy* 1998
- ---------------------------- -------------- ----------- ------------- ----------------- --------- -------------
<S> <C> <C> <C> <C> <C> <C>
Christiansted Limited Dividend
Housing Association
Carib III
St. Croix, VI 24 322,260 322,260 1,485,819 FmHA 92%
St. Croix II Limited Partnership
Carib II
St. Croix, VI 20 347,680 347,680 1,405,035 FmHA 95%
Whispering Trace Apartments,
A Limited Partnership
Whispering Trace
Woodstock, GA 40 1,093,330 1,093,330 1,393,392 None 92%
Historic New Center Apartments
Limited Partnership
New Center
Detroit, MI 104 2,899,000 2,899,000 3,504,633 Section 8 93%
Huguenot Park Associates, L.P.
Huguenot Park
New Paltz, NY 24 982,358 982,358 1,400,000 None 100%
Cobblestone Place Townhomes,
A Limited Partnership
Hillwood Pointe
Jacksonville, FL 100 2,356,133 2,356,133 2,961,816 None 97%
Kensington Place Townhomes,
A Limited Partnership
Pinewood Pointe
Jacksonville, FL 136 3,153,173 3,153,173 4,010,215 None 97%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Capital Contributions
Total Paid Mortgage loans Occupancy
Local Limited Partnership Number Committed at through payable at Type at
Property Name of March 31, March 31, December 31, of March 31,
Property Location Apt. Units 1998 1998 1997 Subsidy* 1998
- -------------------------- ----------- -------------- ----------- ---------------- ---------- -------------
<S> <C> <C> <C> <C> <C> <C>
Westgate Apartments Limited
Partnership
Westgate
Bismark, ND 60 935,893 935,893 1,378,233 None 90%
Woodlake Hills Limited
Partnership
Woodlake Hills
Pontiac, MI 144 4,154,670 4,154,670 3,845,347 None 98%
Bixel House, a California
Limited Partnership
Bixel House
Los Angeles, CA 76 710,677 710,677 1,376,019 Section 8 97%
Harmony Apartments, a California
Limited Partnership
Magnolia Villas
North Hollywood, CA 65 3,203,996 3,203,996 3,097,554 None 97%
Schumaker Place Associates, L.P.
Schumaker Place
Salisbury, MD 96 2,910,453 2,910,453 2,928,084 None 79%
Circle Terrace Associates Limited
Partnership
Circle Terrace
Lansdowne, MD 303 5,811,234 5,811,234 9,822,423 Section 8 100%
------- ------------ ------------ -------------
2,374 $ 55,520,042 $ 55,520,042 $ 85,628,334
======= ============ ============ =============
</TABLE>
<PAGE>
* FmHA This subsidy, which is authorized under Section 515 of
the Housing Act of 1949, can be one or a combination of
different types of financing. For instance, FmHA may provide:
1) direct below-market-rate mortgage loans for rural rental
housing; 2) mortgage interest subsidies which effectively
lower the interest rate of the loan to 1%; 3) a rental
assistance subsidy to tenants which allows them to pay no
more than 30% of their monthly income as rent with the balance
paid by the federal government; or 4) a combination of any of
the above.
Section 8 This subsidy, which is authorized under Section 8 of Title
II of the Housing and Community Development Act of 1974,
allows qualified low-income tenants to pay 30% of their
monthly income as rent with the balance paid by the federal
government.
(1) On January 1, 1994, Lorne Park merged into Strathern Park
in a business combination accounted for as a pooling of
interests. Lorne Park's total assets, liabilities and
partners' equity were combined with Strathern Park at their
existing book value, and neither partnership recognized a gain
or loss on the merger. The combined Partnerships constructed a
241 Unit apartment project (Lorne Park: 72 Units, Strathern
Park: 169 Units) for tenants whose income is very low to
moderate.
<PAGE>
Two Local Limited Partnerships invested in by the Partnership each represent
more than 10% of the total capital contributions to be made to Local Limited
Partnerships by the Partnership. The first is Strathern Park/Lorne Park, a
California Limited Partnership. Strathern Park/Lorne Park, representing 15.16%
of the total capital contributions to Local Limited Partnerships, is a 241-unit
apartment complex located in Los Angeles, California.
Strathern Park/Lorne Park is financed by a combination of private and public
sources, including a first mortgage at 9.41% interest and 30 year term with
California Community Reinvestment Corporation, a consortium of private lenders.
Secondary financing has a term of 40 years and is provided by the Community
Redevelopment Agency of the City of Los Angeles and a U.S. Housing and Urban
Development Action Grant, with payments made from the residual receipts of the
project.
The other Local Limited Partnership which represents more than 10% of the total
capital contributions made to Local Limited Partnerships is Circle Terrace
Associates Limited Partnership. Circle Terrace, representing 10.47% of the total
capital contributions to Local Limited Partnerships, is a substantially
renovated 303-unit apartment complex located in Lansdowne, Maryland with 23
garden-style buildings and a newly-constructed community building.
All of the units at Circle Terrace benefit from Section 8 Loan Management Set
Aside Program. Additionally, Circle Terrace assumed a HUD Section 236 mortgage
and financing by Crestar of Richmond Virginia, Inc. and by Maryland's Department
of Housing and Community Rental Housing Program. The Property also has a loan
financed by Baltimore County's Community Development Block Grant program, and it
received weatherization funds from the U.S. Department of Energy.
The duration of the leases for occupancy in the Properties described above are
six to twelve months. The Managing General Partner believes the Properties
described herein are adequately covered by insurance.
Additional information required under this Item, as it pertains to the
Partnership, is contained in Items 1, 7 and 8 of this Report.
Item 3. Legal Proceedings
The Partnership is not a party to any pending legal or administrative
proceeding. However, Tompkins/Rosecliff, Ltd. which owns a property in Sanford,
Florida, is involved in certain litigation with an entity formerly affiliated
with this Partnership and its previous local general partner. It is possible
that the Partnership will be named as a defendant in this litigation. It does
not currently appear that this matter presents a material risk to the
Partnership. However, in the opinion of management, there is currently a remote
possibility that this litigation could ultimately result in a loss of this
property and its credits. The Partnership will vigorously pursue its legal
rights if this becomes a material risk in the future. The Partnership has
retained counsel to represent its interest in this matter.
Item 4. Submission of Matters to a Vote of Security Holders
None.
<PAGE>
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 June 15, 1998, there were 3,293 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, 1998, 1997 and 1996. In the Partnership's
early years, cash available for distribution was derived from the interest
earned on the temporary investment of funds held by the Partnership prior to
paying capital contributions to Local Limited Partnerships. All cash
distributions made to date have constituted a return of capital for generally
accepted accounting principles.
<PAGE>
Item 6. Selected Financial Data
The following table sets forth selected financial information regarding the
Partnership's financial position and operating results. This information should
be read in conjunction with Management's Discussion and Analysis of Financial
Condition and Results of Operations and the Financial Statements and Notes
thereto, which are included in Items 7 and 8 of this Report.
<TABLE>
<CAPTION>
March 31, March 31, March 31, March 31, March 31,
1998 1997 1996 1995 1994
------------ ------------ ------------ ------------- ------------
<S> <C> <C> <C> <C> <C>
Revenue (E) $ 321,439 $ 204,683 $ 224,012 $ 171,863 $ 232,489
Equity in losses of Local Limited
Partnerships (E) (4,777,460) (4,044,413) (4,695,617) (4,747,136) (4,698,334)
Net loss (5,838,302) (4,337,761) (4,952,448) (5,110,677) (4,982,538)
Per Limited Partnership Unit (A) (83.85) (62.30) (71.13) (73.40) (71.56)
Cash and cash equivalents (E) 239,932 449,567 243,644 72,535 92,522
Marketable securities 3,064,717 2,840,127 3,099,255 3,196,496 3,512,954
Investment in Local Limited
Partnerships 24,775,767 30,531,768 34,878,562 39,667,730 44,417,695
Total assets (B) 28,905,668 33,871,495 38,246,869 42,985,386 48,069,381
Long-term debt (E) 707,659 - - - -
Total liabilities (E) 1,002,330 298,276 318,728 149,379 114,131
Cash Distributions - - - - -
Other data:
Passive loss (C) (5,324,956) (5,154,301) (5,187,774) (5,204,384) (5,177,324)
Per Limited Partnership Unit (A,C) (76.48) (74.03) (74.51) (74.75) (74.36)
Portfolio income (C) 361,519 281,707 350,417 233,083 379,338
Per Limited Partnership Unit (A,C) 5.19 4.05 5.03 3.35 5.45
Low-Income Housing Tax Credit (C) 10,512,076 10,512,996 10,506,229 10,519,636 10,447,764
Per Limited Partnership Unit (A,C) 150.98 150.99 150.90 151.09 150.06
Local Limited Partnership interests
owned at end of period (D) 27 27 27 27 28
</TABLE>
(A) Per Limited Partnership Unit data is based upon 68,929 outstanding Units.
(B) Total assets include the net investment in Local Limited Partnerships.
(C) Income tax information is as of December 31, the year end of the Partnership
for income tax purposes.
(D) On January 1, 1994, Strathern Park and Lorne Park merged.
(E) Revenue for the year ended March 31, 1998 includes $99,367 of rental and
other revenues from the Combined Entity that is included in the combined revenue
on the Combined Statement of Operations. Equity in losses of Local Limited
Partnerships in the year ended March 31, 1998 does not include $188,247 of
losses from the Combined Entity that has been combined with the Partnership's
loss on the Combined Statement of Operations. Cash and cash equivalents at March
31, 1998 include $224 of cash and cash equivalents from the Combined Entity that
has been combined with the Partnership in the Combined Balance Sheet. The
long-term debt at March 31, 1998 is related to the Combined Entity. Total
liabilities includes $715,968 that has been combined with the Partnership in the
Combined Balance Sheet.
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
At March 31, 1998, the Partnership (including the Combined Entity) had cash and
cash equivalents of $239,932, compared with $449,567 at March 31, 1997. The
decrease is attributable to net cash used for operations and purchases of
marketable securities, partially offset by proceeds from sales and maturities of
marketable securities and cash distributions received from Local Limited
Partnerships.
Approximately $2,732,000 of marketable securities has been designated as
Reserves by the Managing General Partner. The Reserves were established to be
used for working capital of the Partnership and contingencies related to the
ownership of Local Limited Partnership interests. 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 and any contingencies that may arise.
Reserves may be used to fund Partnership operating deficits, if the Managing
General Partner deems funding appropriate.
Since the Partnership invests as a limited partner, the Partnership has no
contractual duty to provide additional funds to Local Limited Partnerships
beyond its specified investment. Thus, at March 31, 1998, the Partnership had no
contractual or other obligation to any Local Limited Partnership which had not
been paid or provided for.
In the event a Local Limited Partnership encounters operating difficulties
requiring additional funds, the Partnership might deem it in its best interests
to provide such funds, voluntarily, in order to protect its investment. No such
event has occurred to date.
Cash Distributions
No cash distributions were made during the year ended March 31, 1998. In prior
years, cash available for distribution was derived from the interest earned on
the temporary investment of the Partnership's funds, at money market rates,
prior to the funds being contributed to the Partnership's Local Limited
Partnership investments. Based on the results of 1997 operations, the Local
Limited Partnerships are not expected to distribute significant amounts of cash
to the Partnership because such amounts will be needed to fund Property
operating costs. In addition, many of the Properties benefit from some type of
federal or state subsidy and, as a consequence, are subject to restrictions on
cash distributions. Therefore, it is expected that only a limited amount of cash
will be distributed to investors from this source in the future.
Results of Operations
1998 versus 1997
The Partnership's results of operations for the year ended March 31, 1998
resulted in a net loss of $5,838,302 as compared to a net loss of $4,337,761 for
the same period in 1997. The increase in net loss is primarily attributable to
an increase in equity in losses of Local Limited Partnerships, provision for
valuation of rental property and a provision for valuation of Investment in
Local Limited Partnership. Equity in losses of Local Limited Partnerships
increased due to a general increase in operating expenses for the Local
Limited Partnerships. Other revenue increased due to an increase in
distributions received by the Partnership from the Local Limited Partnerships.
<PAGE>
1997 versus 1996
The Partnership's results of operations for the year ended March 31, 1997
resulted in a net loss of $4,337,761 as compared to a net loss of $4,952,448 for
the same period in 1996. This improved net loss position is primarily
attributable to a decrease in equity in losses of Local Limited Partnerships and
an increase in investment revenue, offset by a decrease in other revenue. The
decrease in equity in losses of Local Limited Partnerships is due to rental
subsidy receipts in 1996 which were reserved for in the prior year. Investment
revenue increased because of improved returns earned on investments in
securities during fiscal year 1997.
Effect of recently issued Accounting Standard
The Financial Accounting Standards Board recently issued Statement of Financial
Accounting Standards No. 130, Reporting Comprehensive Income. The standard
requires that changes in comprehensive income be shown in a financial statement
that is displayed with the same prominence as other financial statements. The
standard is effective for fiscal years beginning after December 15, 1997. The
Partnership will adopt the new standard beginning in the first quarter of the
fiscal year ending March 31, 1999, but it is not expected to have a significant
effect on the Partnership's financial position or results of operations.
Low-Income Housing Tax Credits
The 1997, 1996 and 1995 Tax Credits per Unit were $150.98, $150.99 and $150.90,
respectively. The Tax Credit per Limited Partnership Unit stabilized in 1993 at
approximately $151.00 per Unit. The credits are expected to remain stable
through the year 2000 and then they are expected to decrease as certain
properties reach the end of the ten year credit period.
On November 10, 1997, the Partnership transferred 50% of its interest in capital
and profits of Westgate Apartments to the local general partner in order to
protect the Partnership in the event of a foreclosure-induced recapture of
these tax credits.
Property Discussions
Limited Partnership interests have been acquired in twenty-seven Local Limited
Partnerships which are located in ten states and the Virgin Islands. Five of the
properties, totaling 612 units, were existing and underwent rehabilitation;
twenty-two properties, consisting of 1,762 units, were new construction. All
properties have completed construction or rehabilitation and initial lease-up.
Historic New Center in Detroit, Michigan is generating operating deficits due to
low occupancy and collection problems. The Managing General Partner, Local
General Partner and property manager are working to improve collections. In
October 1997, a new site manager was hired to focus on marketing and collections
as well as improvements to the appearance of the property. As previously
reported, the Managing General Partner and the Local General Partner have been
in negotiations with the lender to obtain debt service relief through a loan
modification. In April 1998, an agreement was reached in order to restructure
the mortgage with a reduction in debt service by a paydown of the mortgage and
an interest rate reduction. This restructure should enable the property to cover
the debt service and provide capital for physical improvements. Occupancy
continues to fluctuate due to volatility of the tenant profile, however,
occupancy at December 31, 1997 was 94%. The Managing General Partner will
continue to closely monitor the property operations.
As previously reported, the Local General Partner for Wheeler House in Nashua,
New Hampshire was replaced by an affiliate of the Managing General Partner with
the approval of the lender after the Local General Partner filed for protection
under the provisions of the Chapter 7 bankruptcy laws. The Managing General
Partner has replaced the Local General Partner as management agent of the
property with an unaffiliated management agent. The Local General Partner's
bankruptcy status has not affected the property. Operations remain stable and
occupancy is at 100%.
Westgate, located in North Dakota, has been performing satisfactorily. However,
affiliates of the Managing General Partner have been working with the local
general partner who has raised some concerns over the long-term financial health
of the property. In an effort to reduce possible future risk, the Managing
General Partner consummated the transfer of 50% of the Partnership's interest in
capital and profits in Westgate to the local general partner. The Managing
General Partner has the right to transfer the Partnership's remaining interest
to the local general partner any time after one year has elapsed. The
Partnership will retain its full share of tax credits until such time as the
remaining interest is put to the local general partner. For financial reporting
purposes, the remaining carrying value of the Partnership's investment in this
Local Limited Partnership has been fully reserved.
In accordance with Financial Accounting Standard 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, the
Partnership has implemented policies and practices for assessing impairment of
its real estate assets and investments in local limited partnerships. Each asset
is analyzed by real estate experts to determine if an impairment indicator
exists. If so, the current value is compared to the fair value and if there is a
significant impairment in value, a provision to write down the asset to fair
value will be charged against income.
Inflation and Other Economic Factors
Inflation had no material impact on the operations or financial condition of the
Partnerships for the years ended March 31, 1998, 1997 and 1996.
Since some 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 of 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 in which the Partnership invests may be 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 V, Inc., a
Massachusetts corporation (the "Managing General Partner" or "Arch Street,
Inc."), an affiliate of The Boston Financial Group Limited Partnership ("Boston
Financial"), a Massachusetts limited partnership. George Fantini, Jr., a Vice
President of the Managing General Partner, resigned his position effective June
30, 1995. Donna Gibson, a Vice President of the Managing General Partner,
resigned from her position on September 13, 1996. Georgia Murray resigned as
Managing Director, Treasurer and Chief Financial Officer of the General Partner
on May 25, 1997. Fred N. Pratt, Jr. resigned as Managing Director of the General
Partner on May 28, 1997. William E. Haynsworth resigned as Managing Director
and Chief Operating Officer of the General Partner on March 23, 1998.
The Managing General Partner was incorporated in June 1989. Randolph G.
Hawthorne 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
Jenny Netzer Managing Director and President
Michael H. Gladstone Managing Director, Vice President and Clerk
Randolph G. Hawthorne Managing Director, Vice President and
Chief Operating Officer
James D. Hart Chief Financial Officer and Treasurer
Paul F. Coughlan Vice President
Peter G. Fallon, Jr. Vice President
William E. Haynsworth Vice President
The other General Partner of the Partnership is Arch Street V Limited
Partnership, a Massachusetts limited partnership ("Arch Street L.P.") that was
organized in June 1989. Arch Street, Inc. is the managing general partner of
Arch Street L.P.
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.
Jenny Netzer, age 42, graduated from Harvard University (B.A., 1976) and
received a Master's in Public Policy from Harvard's Kennedy School of Government
in 1982. She joined Boston Financial in 1987 and is a Senior Vice President
leading the Institutional Tax Credit Team. She is also a member of the Senior
Leadership Team. Previously, Ms. Netzer led Boston Financial's new business
initiatives and managed the firm's Asset Management division, which is
responsible for the performance of 750 properties and providing service to
35,000 investors. Before joining Boston Financial, she was Deputy Budget
Director for the Commonwealth of Massachusetts where she was responsible for
the Commonwealth's health care and public pension programs' budgets. Ms. Netzer
was also Assistant Controller at Yale University and has been a member of the
Watertown Zoning Board of Appeals.
Michael H. Gladstone, age 41, graduated from Emory University (B.A. 1978) and
Cornell University (J.D., MBA, 1982). He joined Boston Financial in 1985 and
currently serves as Vice President and as the company's General Counsel. Prior
to joining Boston Financial, Mr. Gladstone was associated with the law firm of
Herrick & Smith. Mr. Gladstone is a member of the National Realty Committee and
has served on the advisory board to the Housing and Development Reporter, a
national publication on housing issues.
Randolph G. Hawthorne, age 48, is a graduate of Massachusetts Institute of
Technology (B.S., 1971) and Harvard Graduate School of Business (M.B.A., 1973).
He has been associated with Boston Financial since 1973 and has served as the
Treasurer of Boston Financial. Currently a Senior Vice President of the firm,
Mr. Hawthorne's primary responsibility is structuring and acquiring real estate
investments. Mr. Hawthorne is Past Chairman of the Board of the National Multi
Housing Council, having served on the board since 1989. He is a past president
of the National Housing and Rehabilitation Association, is 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. In addition to speaking at industry conferences, he is on the
Editorial Advisory Boards of the Tax Credit Advisor and Multi-Housing News.
James D. Hart, age 40, earned his Bachelor of Arts degree from Trinity College
and his Masters of Business Administration from the Amos Tuck School at
Dartmouth College. Mr. Hart serves as Chief Financial Officer and is a member of
the Senior Leadership Team. Prior to joining Boston Financial, Mr. Hart was
engaged in venture capital management on behalf of institutional investors,
including the negotiation and structuring of private equity and mezzanine
transactions as a Vice President of Interfid Ltd., and later in the operational
management of a venture-backed software company, as Managing Director and Chief
Financial Officer of Bitstream Inc. Mr. Hart has also served on the Board of
Directors of several investee companies, including those that went on to
complete initial public offerings.
Paul F. Coughlan, age 54, is a graduate of Brown University (B.A., 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.
Peter G. Fallon, Jr., age 59, 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, to raise capital for the firm's investments.
He is currently a Senior Vice President and a member of the Institutional Tax
Credits Team with responsibility for marketing institutional investments.
Previously, he has served as president of BFG Securities, as a director of
Boston Financial and as marketing director for public and corporate funds. Mr.
Fallon has also served as Chairman of the Board of Directors for Boston College
High School as well as a director of a local bank.
William E. Haynsworth, age 58, is a graduate of Dartmouth College (B.A., 1961)
and Harvard Law School (L.L.B., 1964; L.L.M., 1969). Prior to joining Boston
Financial in 1977, Mr. Haynsworth was Acting Executive Director and General
Counsel of the Massachusetts Housing Finance Agency. He was also the Director of
Non-Residential Development of the Boston Redevelopment Authority and an
associate of the law firm of Goodwin, Procter & Hoar. Appointed Senior Vice
President in 1986, Mr. Haynsworth brings over 25 years of experience structuring
real estate investments. Mr. Haynsworth is a member of the Executive Committee
and the Board of Directors of the Affordable Housing Tax Credit Coalition. He is
a member of the Senior Leadership Team, the firm's Executive Committee and the
Board of Directors of Boston Financial.
Item 11. Management Remuneration
Neither the directors or officers of Arch Street, Inc., the partners of Arch
Street L.P. nor any other individual with significant involvement in the
business of the Partnership receives any current or proposed remuneration from
the Partnership.
<PAGE>
Item 12. Security Ownership of Certain Beneficial Owners and Management
As of March 31, 1998, the following is the only entity known to the
Partnership to be the beneficial owner of more than 5% of the total number of
Units outstanding:
Amount
Title of Name and Address Beneficially Percent of
Class of Beneficial Owner Owned Class
Limited Oldham Institutional Tax Credits LLC 8,024 Units 11.64%
Partner 101 Arch Street
Boston, MA
Oldham Institutional Tax Credits LLC is an affiliate of Arch Street V, Inc., the
Managing General Partner.
The equity securities registered by the Partnership under Section 12(g) of the
Act consist of 100,000 Units, 68,929 of which had been sold to the public as of
March 31, 1998. The remaining Units were deregistered in Post-Effective
Amendment No. 6, dated January 21, 1992, herein incorporated by this reference.
Holders of Units are permitted to vote on matters affecting the Partnership only
in certain unusual circumstances and do not generally have the right to vote on
the operation or management of the Partnership.
As of March 31, 1998, Arch Street L.P. owns five (unregistered) Units not
included in the 68,929 Units sold to the public. Additionally, five registered
Units were sold to an employee of an affiliate of the Managing General Partner
of the Registrant. Such Units were sold at a discount of 7% of the Unit price
for a total discount of $350 and a total purchase price of $4,650.
Except as described in the preceding paragraphs, neither Arch Street, Inc., Arch
Street L.P., Boston Financial nor any of their executive officers, directors,
partners or affiliates is the beneficial owner of any Units. None of the
foregoing persons possesses a right to acquire beneficial ownership of Units.
The Partnership does not know of any existing arrangement that might at a later
date result in a change in control of the Partnership.
Item 13. Certain Relationships and Related Transactions
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 a transaction. All such fees, expenses and distributions paid in the three
years ending March 31, 1998 are described below and in the sections of the
Prospectus entitled "Estimated Use of Proceeds", "Management Compensation and
Fees" and "Profits and Losses for Tax Purposes, Tax Credits and Cash
Distributions". Such sections are incorporated herein by reference.
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 required under this item is contained in Note 5 to the financial
statements presented as a separate section of this Report. The affiliates of the
Managing General Partner which have received fee payments and expense
reimbursements from the Partnership are as follows:
Organizational fees and expenses and selling expenses
In accordance with the Partnership Agreement, the Partnership was required to
pay certain fees to and reimburse expenses of the General Partners and others in
connection with the organization of the Partnership and the offering of its
Limited Partnership Units. Selling commissions, fees and accountable expenses
related to the sale of the Units totaling $9,499,984 have been charged directly
to Limited Partners' equity. In connection therewith, $5,858,935 of selling
expenses and $3,641,049 of offering expenses incurred on behalf of the
Partnership have been paid to an affiliate of the General Partners. The
Partnership was required to pay a non-accountable expense allowance for
marketing expense equal to a maximum of 1% of Gross Proceeds; this is included
in total offering expenses. The Partnership has capitalized an additional
$50,000 which was reimbursed to an affiliate of the General Partners. Total
organization and offering expenses exclusive of selling commissions did not
exceed 5.5% of the Gross Proceeds and organizational and offering expenses,
inclusive of selling commissions did not exceed 14.0% of the Gross Proceeds. No
organizational fees and expenses and selling expenses were paid during the three
years ended March 31, 1998.
Acquisition fees and expenses
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 totaled 7% of the gross offering proceeds.
Acquisition expenses, which include such expenses as legal fees and expenses,
travel and communications expenses, costs of appraisals, accounting fees and
expenses, were expected to total 1.5% of the gross offering proceeds. As of
March 31, 1998, acquisition fees totaling $4,825,005 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
$899,430 at March 31, 1998 were incurred and have been reimbursed to an
affiliate of the Managing General Partner. No acquisition fees or expenses were
paid during the three years ended March 31, 1998.
Asset Management Fees
In accordance with the Partnership Agreement, an affiliate of the Managing
General Partner is paid an Asset Management Fee for services in connection with
the administration of the affairs of the Partnership. The affiliate currently
receives the base amount of .351% (as adjusted by the CPI factor) of Gross
Proceeds annually as the Asset Management Fee. Asset Management Fees incurred in
each of the three years ended March 31, 1998 are as follows:
1998 1997 1996
---------- ---------- ----------
Asset Management Fees $ 238,087 $ 231,035 $ 224,953
Salaries and benefits expense reimbursements
An affiliate of the Managing General Partner is reimbursed for the cost of the
Partnership's salaries and benefits expenses. The reimbursements are based upon
the size and complexity of the Partnership's operations. Reimbursements made in
each of the three years ended March 31, 1998 are as follows:
1998 1997 1996
---------- ---------- ---------
Salaries and benefits
expense reimbursements $ 127,926 $ 117,763 $ 115,696
<PAGE>
Cash distributions paid to the General Partners
In accordance with the Partnership Agreement, the General Partners of the
Partnership, Arch Street V, Inc. and Arch Street V Limited Partnership, receive
1% of cash distributions made to partners. No cash distributions were paid to
the General Partners in each of the three years ended March 31, 1998.
<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 schedule 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 Partnerships relating to the audits
of the financial statements of such Local Limited Partnerships appear in Exhibit
(28)(1) of this Report.
All other financial statement schedules and exhibits for which provision is made
in the applicable accounting regulations of the Securities and Exchange
Commission are not required under related instructions or are inapplicable, and
therefore have been omitted.
(a)(3) See Exhibit Index contained herein.
(a)(3)(b) Reports on Form 8-K:
No reports on Form 8-K were filed during the quarter ended March 31,
1998.
(a)(3)(c) Exhibits
Number and Description in Accordance with
Item 601 of Regulation S-K
27. Financial Data Schedule
28. Additional Exhibits
(a) 28.1 Reports of Other Independent Auditors
(b) Audited financial statements of Local Limited Partnership
Strathern Park/Lorne Park
(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. V
By: Arch Street V, Inc.
its Managing General Partner
By: /s/Randolph G. Hawthorne Date: June 29, 1998
Randolph G. Hawthorne,
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 G. Haynsworth Date: June 29, 1998
William G. Haynsworth,
Managing Director, Vice President and
Chief Operating Officer
By: /s/Michael H. Gladstone Date: June 29, 1998
Michael H. Gladstone,
A Managing Director
Item 8. Financial Statements and Supplementary Data
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Annual Report on Form 10-K
For The Year Ended March 31, 1998
Index
Page No.
Report of Independent Accountants
For the years ended March 31, 1998, 1997 and 1996 F-2
Combined Financial Statements
Combined Balance Sheets - March 31, 1998 and 1997 F-3
Combined Statements of Operations - Years Ended
March 31, 1998, 1997 and 1996 F-4
Combined Statements of Changes in Partners' Equity (Deficiency) -
Years Ended March 31, 1998, 1997 and 1996 F-5
Combined Statements of Cash Flows - Years Ended
March 31, 1998, 1997 and 1996 F-6
Notes to the Combined Financial Statements F-7
Financial Statement Schedule
Schedule III - Real Estate and Accumulated Depreciation F-21
See also Index to Exhibits on Page K-22 for the financial statement of the
Local Limited Partnership included as a separate exhibit in this Annual Report
on Form 10-K.
Other schedules have been omitted as they are either not required or the
information required to be presented therein is available elsewhere in the
financial statements and the accompanying notes and schedules.
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Partners
Boston Financial Qualified Housing Tax Credits L.P. V:
We have audited the accompanying combined balance sheets of Boston Financial
Qualified Housing Tax Credits L.P. V as of March 31, 1998 and 1997, and the
related combined statements of operations, changes in partners' equity
(deficiency) 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, 1998. These financial statements and the financial statement
schedule are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements and the
financial statement schedule based on our audits. As of March 31, 1998 and 1997,
85% and 88%, respectively, of total assets, and for the years ended March 31,
1998, 1997 and 1996, 90%, 93% and 95% of net loss, respectively, reflected in
the combined financial statements of the Partnership, relate to Local Limited
Partnerships for which we did not audit the financial statements. The financial
statements of these 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 on the
reports of 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 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 and the reports of other auditors 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 Boston Financial Qualified Housing Tax
Credits L.P. V, as of March 31, 1998 and 1997 and the results of its operations
and its cash flows for each of the three years in the period ended March 31,
1998, in conformity with generally accepted accounting principles. In addition,
in our opinion, the financial statement schedule referred to above, when
considered in relation to the basic combined financial statements taken as a
whole, presents fairly, in all material respects, the information required
to be included therein.
Coopers & Lybrand L.L.P.
Boston, Massachusetts
June 22, 1998
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
COMBINED BALANCE SHEETS
March 31, 1998 and 1997
<TABLE>
<CAPTION>
1998 1997
--------------- ---------
<S> <C> <C>
Assets
Cash and cash equivalents $ 239,932 $ 449,567
Mortgagee escrow deposits 382 -
Tenant security deposit escrow 3,017 -
Investments in Local Limited Partnerships,
net of reserve for valuation of $590,197 in 1998 (Note 4) 24,775,767 30,531,768
Marketable securities, at fair value (Notes 1 and 3) 3,064,717 2,840,127
Rental property at cost, net of accumulated
depreciation (Note 5) 778,924 -
Replacement reserve escrow 2,888 -
Other assets 40,041 50,033
--------------- ---------------
Total Assets $ 28,905,668 $ 33,871,495
=============== ===============
Liabilities and Partners' Equity
Accounts payable to affiliates (Note 6) $ 79,210 $ 88,227
Accounts payable and accrued expenses 72,983 35,692
Mortgage note payable (Note 7) 707,659 -
Tenant security deposits payable 3,017 -
Deferred revenue (Note 8) 139,461 174,357
--------------- ---------------
Total Liabilities 1,002,330 298,276
--------------- ---------------
Minority interest in Local Limited Partnership 140,554 -
General, Initial and Investor Limited Partners' Equity 27,777,237 33,615,539
Net unrealized losses on marketable securities (14,453) (42,320)
--------------- ---------------
Total Partners' Equity 27,762,784 33,573,219
--------------- ---------------
Total Liabilities and Partners' Equity $ 28,905,668 $ 33,871,495
=============== ===============
</TABLE>
The accompanying notes are an integral part of these combined financial
statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
COMBINED STATEMENTS OF OPERATIONS
For the Years Ended March 31, 1998, 1997 and 1996
<TABLE>
<CAPTION>
1998 1997 1996
------------ ------------ --------
<S> <C> <C> <C>
Revenue:
Rental $ 98,473 $ - $ -
Investment (Note 3) 179,999 191,349 146,575
Other 42,967 13,334 77,437
------------ ------------ ------------
Total Revenue 321,439 204,683 224,012
------------ ------------ ------------
Expenses:
General and administrative
(includes reimbursements to an affiliate
in the amounts of $127,926, $117,763
and $115,696) (Note 6) 237,092 237,545 225,369
Asset management fees, related party (Note 6) 238,087 231,035 224,953
Provision for valuation of Investment in
Local Limited Partnership 590,197 - -
Rental operations, exclusive of depreciation 30,067 - -
Provision for valuation of rental property 160,000 - -
Interest 64,148 - -
Depreciation 35,299 - -
Amortization 29,291 29,451 30,521
------------ ------------ ------------
Total Expenses 1,384,181 498,031 480,843
------------ ------------ ------------
Loss before minority interest in losses of
Local Limited Partnership and equity in
losses of Local Limited Partnerships (1,062,742) (293,348) (256,831)
Minority interest in losses of
Local Limited Partnership 1,900 - -
Equity in losses of Local Limited
Partnerships (Note 4) (4,777,460) (4,044,413) (4,695,617)
----------- ----------- -----------
Net Loss $ (5,838,302) $ (4,337,761) $(4,952,448)
============ ============ ===========
Net Loss allocated:
General Partners $ (58,383) $ (43,378) $ (49,524)
Limited Partners (5,779,919) (4,294,383) (4,902,924)
------------ ------------ ------------
$ (5,838,302) $(4,337,761) $(4,952,448)
============= ============= ============
Net Loss per Limited Partnership
Unit (68,929 Units) $ (83.85) $ (62.30) $ (71.13)
============ ============ ============
</TABLE>
The accompanying notes are an integral part of these combined financial
statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
For the Years Ended March 31, 1998, 1997 and 1996
<TABLE>
<CAPTION>
Net
Initial Investor Unrealized
General Limited Limited Gains
Partners Partner Partners (Losses) Total
<S> <C> <C> <C> <C> <C>
Balance at March 31, 1995 $ (163,049) $ 5,000 $ 43,063,797 $ (69,741) $ 42,836,007
Net change in net unrealized
loss on marketable securities
available for sale - - - 44,582 44,582
Net Loss (49,524) - (4,902,924) - (4,952,448)
------------ ------------ ------------ ------------ ------------
Balance at March 31, 1996 (212,573) 5,000 38,160,873 (25,159) 37,928,141
Net change in net unrealized
loss on marketable securities
available for sale - - - (17,161) (17,161)
Net Loss (43,378) - (4,294,383) - (4,337,761)
------------ ------------ ------------ ------------ ------------
Balance at March 31, 1997 (255,951) 5,000 33,866,490 (42,320) 33,573,219
Net change in net unrealized
loss on marketable securities
available for sale - - - 27,867 27,867
Net Loss (58,383) - (5,779,919) - (5,838,302)
------------ ------------ ------------ ------------ ------------
Balance at March 31, 1998 $ (314,334) $ 5,000 $ 28,086,571 $ (14,453) $ 27,762,784
============ ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these combined financial
statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
COMBINED STATEMENTS OF CASH FLOWS
For the Years Ended March 31, 1998, 1997 and 1996
<TABLE>
<CAPTION>
1998 1997 1996
------------ ------------ --------
<S> <C> <C> <C>
Cash flows from operating activities:
Net loss $(5,838,302) $(4,337,761) $(4,952,448)
Adjustments to reconcile net loss to net
cash used for operating activities:
Equity in losses of Local Limited Partnerships 4,777,460 4,044,413 4,695,617
Provision for valuation of Investment in Local
Limited Partnership 590,197 - -
Provision for valuation of rental property 160,000 - -
Depreciation and amortization 64,590 29,451 30,521
Gain on sale of marketable securities (1,154) (1,560) (1,027)
Minority interest in losses of Local Limited
Partnership (1,900) - -
Increase (decrease) in cash arising from changes
in operating assets and liabilities:
Tenant security deposits (131) - -
Mortgagee escrow deposits 3,990 - -
Other assets 10,992 (24,625) 23,217
Accounts payable to affiliate (25,605) 16,700 6,016
Accounts payable and accrued expenses 21,457 (32,191) (15,985)
Tenant security deposits payable 131 - -
Deferred revenue (34,896) (4,961) 179,318
------------ ------------ ------------
Net cash used for operating activities (273,171) (310,534) (34,771)
------------ ------------ ------------
Cash flows from investing activities:
Investments in Local Limited Partnerships - - (213,500)
Purchases of marketable securities (2,889,608) (755,442) (2,462,289)
Proceeds from sales and maturities of
marketable securities 2,694,039 998,969 2,605,139
Cash distributions received from Local Limited
Partnerships 241,893 272,930 276,530
Advance to affiliate (1,000) - -
Replacement reserve deposits (739) - -
Cash received upon assumption of General Partner
interest in a Combined Entity 937 - -
------------ ------------ ------------
Net cash provided by investing activities 45,522 516,457 205,880
------------ ------------ ------------
Cash flows from financing activities:
General Partner contribution 23,462 - -
Payment of mortgage principal (5,448) - -
------------ ------------ ------------
Net cash provided by financing activities 18,014 - -
------------ ------------ ------------
Net increase (decrease) in cash and
cash equivalents (209,635) 205,923 171,109
Cash and cash equivalents, beginning 449,567 243,644 72,535
------------ ------------ ------------
Cash and cash equivalents, ending $ 239,932 $ 449,567 $ 243,644
============ ============ ============
</TABLE>
The accompanying notes are an integral part of these combined financial
statements.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to the Combined Financial Statements
1. Organization
Boston Financial Qualified Housing Tax Credits L.P. V ("the Partnership") was
formed on June 16, 1989 under the laws of the State of Massachusetts for the
primary purpose of investing, as a limited partner, in other limited
partnerships ("Local Limited Partnerships"), some of which own and operate
apartment complexes benefiting from some form of federal, state or local
assistance, and each of which qualifies 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 from property operations 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 V, Inc., a Massachusetts corporation, which serves
as the Managing General Partner, and Arch Street V Limited Partnership, a
Massachusetts Limited Partnership whose general partner consists of Arch Street
V, Inc., 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 (the "Partnership Agreement") authorized
the sale of up to 100,000 units of limited partnership interests ("Units") at
$1,000 per Unit, adjusted for certain discounts. On August 31, 1991, the
Partnership held its final investor closing. In total, the Partnership received
$68,928,650 of capital contributions, net of discounts, from investors admitted
as Limited Partners for 68,929 Units.
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 Reserves from time to time, as it deems appropriate. At March
31, 1998, the Managing General Partner has designated approximately $2,732,000
of marketable securities as such Reserves.
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 Entity (defined below), 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 income or loss of the Local Limited
Partnerships, additional investments and 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 Partnerships beyond its
investment, therefore, a Local Limited Partnership's investment will not be
carried below zero. To the extent that equity losses are incurred when a Local
Limited Partnership's respective investment balance has been reduced to zero,
the losses will be suspended to be used against future income. Distributions
received from Local Limited Partnerships whose respective investment balance has
been reduced to zero are included in income.
Excess investment cost 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. V
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
2. Significant Accounting Policies (continued)
Basis of Presentation and Combination (continued)
The Partnership recognizes a decline in 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.
On March 1, 1997, an affiliate of the Partnership's Managing General Partner,
Boston Financial GP1-LLC, became the Local General Partner of Burbank Limited
Partnership ("Burbank"), a Local Limited Partnership in which the Partnership
has invested. Since the Local General Partner of Burbank is an affiliate of the
Partnership and has a controlling financial interest in Burbank, as set forth in
paragraph 22 of ARB 51, these combined financial statements include all activity
at Burbank beginning on March 1, 1997. All significant intercompany balances and
transactions have been eliminated. As used herein, the "Combined Entity" refers
to Burbank.
The General Partners have decided to report the results of the Local Limited
Partnerships, including the Combined Entity, on a 90-day lag basis because the
Local Limited Partnerships report their results on a calendar year basis.
Accordingly, the financial information of the Local Limited Partnerships that is
included in the accompanying combined financial statements is as of December 31,
1997, 1996 and 1995.
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.
Cash Equivalents
Cash equivalents consist of short-term money market instruments with original
maturities of 90 days or less at acquisition and approximate fair value.
Marketable Securities
Marketable securities consists 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 are reported at
fair value as reported by the brokerage firm at which the securities are held.
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.
Income Taxes
No provision for income taxes has been made as the liability for such taxes is
an obligation of the partners of the Partnership.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
2. Significant Accounting Policies (continued)
Effect of recently issued Accounting Standards
The Financial Accounting Standards Board recently issued Statement of Financial
Accounting Standards No. 130, Reporting Comprehensive Income. The standard
requires that changes in comprehensive income be shown in a financial statement
that is displayed with the same prominence as other financial statements. The
standard is effective for fiscal years beginning after December 15, 1997. The
Partnership will adopt the new standard beginning in the first quarter of the
fiscal year ending March 31, 1999, but it is not expected to have a significant
effect on the Partnership's financial position or results of operations.
Rental Property
Real estate and personal property of the Combined Entity is recorded in
accordance with SFAS 121. The Combined Entity provides for depreciation using
primarily the straight-line method over its estimated useful lives.
Rental Income
Rental income, principally from short-term leases on the Combined Entity's
apartment units, is recognized as income under the accrual method as the rents
become due.
Fair Value of Financial Instruments
Statements of Financial Accounting Standards No. 107 ("SFAS No. 107"),
Disclosures About Fair Value of Financial Instruments, requires disclosure for
the fair value of most on- and off-balance sheet financial instruments for which
it is practicable to estimate that value. The scope of SFAS No. 107 excludes
certain financial instruments, such as trade receivables and payables when the
carrying value approximates the fair value and investments accounted for under
the equity method, and all nonfinancial assets, such as real property. Unless
otherwise described, the fair values of the Partnership's assets and liabilities
which qualify as financial instruments under SFAS No. 107 approximate their
carrying amounts in the accompanying balance sheets.
Reclassifications
Certain reclassifications have been made to prior years' financial statements to
conform to the current year presentation.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(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 $ 2,934,294 $ 5,308 $ (21,353) $ 2,918,249
Mortgage backed securities 144,876 1,592 - 146,468
------------ ----------- ---------- ------------
Marketable securities at March 31, 1998 $ 3,079,170 $ 6,900 $ (21,353) $ 3,064,717
============ =========== ========== ============
Debt securities issued by the US
Treasury $ 2,646,693 $ 492 $ (42,951) $ 2,604,234
Mortgage backed securities 235,754 1,938 (1,799) 235,893
------------ ----------- ---------- ------------
Marketable securities at March 31, 1997 $ 2,882,447 $ 2,430 $ (44,750) $ 2,840,127
============ =========== ========== ============
</TABLE>
The contractual maturities at March 31, 1998 are as follows:
Fair
Cost Value
Due in one year or less $1,786,173 $1,767,834
Due in one year to five years 1,148,121 1,150,415
Mortgage backed securities 144,876 146,468
----------- -----------
$ 3,079,170 $ 3,064,717
=========== ===========
Actual maturities may differ from contractual maturities because some borrowers
have the right to call or prepay obligations. Proceeds from sales and maturities
of marketable securities were approximately $2,694,000, $999,000 and $2,605,000
for the years ended March 31, 1998, 1997 and 1996, respectively. Included in
investment income are gross gains of $7,205 and gross losses of $6,051 which
were realized on the sales during the year ended March 31, 1998, gross gains of
$2,951 and gross losses of $1,391 which were realized on the sales during the
year ended March 31, 1997 and gross gains of $13,257 and gross losses of $12,230
which were realized on the sales during the year ended March 31, 1996.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(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 partner
interest in twenty six Local Limited Partnerships, excluding the Combined Entity
in 1998. Each of these Local Limited Partnerships owns and operates multi-family
housing complexes, most of which are government-assisted. The Partnership, as
Investor Limited Partner pursuant to the various Local Limited Partnership
Agreements, has generally acquired a 99% interest in the profits, losses, tax
credits and cash flows from operations of each of the Local Limited
Partnerships, with the exception of Strathern Park/Lorne Park Apartments and
Huguenot Park, which are 95% and 88.6%, respectively. 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 Entity in 1998, at March 31, 1998, 1997 and 1996:
<TABLE>
<CAPTION>
1998 1997 1996
------------ ------------ --------
<S> <C> <C> <C>
Capital contributions paid to Local Limited
Partnerships and purchase price paid to
withdrawing partners of Local Limited
Partnerships $55,219,511 $55,520,042 $55,491,515
Cumulative equity in losses of Local
Limited Partnerships (excluding
unrecognized losses of $133,567 and $2,143
in 1998 and 1997, respectively) (29,735,570) (25,141,481) (21,097,068)
Cumulative cash distributions received
from Local Limited Partnerships (973,056) (731,163) (458,233)
------------ ------------ ------------
Investments in Local Limited Partnerships
before adjustment 24,510,885 29,647,398 33,936,214
Excess of investment cost over the underlying net assets
acquired:
Acquisition fees and expenses 1,039,751 1,039,751 1,068,278
Accumulated amortization of acquisition
fees and expenses (184,672) (155,381) (125,930)
------------ ------------ ------------
Investments in Local Limited Partnerships 25,365,964 30,531,768 34,878,562
Reserve for valuation of Investment in Local
Limited Partnership (590,197) - -
------------ ------------ ------------
$ 24,775,767 $ 30,531,768 $ 34,878,562
============ ============ ==============
</TABLE>
The Partnership has provided a reserve for valuation for one of its investments
in Local Limited Partnerships, Westgate Apartments, because there is evidence of
a non-temporary decline in the recoverable amount of the investment.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
4. Investments in Local Limited Partnerships (continued)
Summarized financial information, as of December 31, 1997, 1996 and 1995 (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 accounted for on the equity method (excluding the Combined Entity
beginning on the date of combination) in which the Partnership has invested as
of that date is as follows:
Summarized Balance Sheets - as of December 31,
<TABLE>
<CAPTION>
1997 1996 1995
-------------- -------------- --------
<S> <C> <C> <C>
Assets:
Investment property, net $ 113,022,632 $ 119,404,292 $ 124,034,671
Current assets 3,319,977 3,109,145 3,233,198
Other assets 5,949,514 5,944,574 6,000,099
-------------- -------------- --------------
Total Assets $ 122,292,123 $ 128,458,011 $ 133,267,968
============== ============== ==============
Liabilities and Partners' Equity:
Long-term debt $ 84,044,067 $ 85,520,204 $ 86,578,579
Current liabilities (including current portion
of long-term debt) 8,060,589 7,168,891 6,037,081
Other liabilities 1,456,872 1,389,432 1,553,129
-------------- -------------- --------------
Total Liabilities 93,561,528 94,078,527 94,168,789
Partnership's Equity 23,844,561 29,509,002 33,857,070
Other Partners' Equity 4,886,034 4,870,482 5,242,109
-------------- -------------- --------------
Total Liabilities and Partners' Equity $ 122,292,123 $ 128,458,011 $ 133,267,968
============== ============== ==============
Summarized Income Statements - for the years ended December 31,
Rental and other income: $ 14,309,317 $ 14,377,262 $ 14,078,555
-------------- -------------- --------------
Expenses:
Operating 7,622,343 7,389,143 7,301,056
Interest 5,919,806 6,159,027 6,683,070
Depreciation and amortization 5,786,902 4,970,595 4,896,252
-------------- -------------- --------------
Total Expenses 19,329,051 18,518,765 18,880,378
-------------- -------------- --------------
Net Loss $ (5,019,734) $ (4,141,503) $ (4,801,823)
============== ============== ==============
Partnership's share of Net Loss $ (4,908,884) $ (4,046,556) $ (4,695,617)
============== ============== ==============
Other partners' share of Net Loss $ (110,850) $ (94,947) $ (106,206)
============== ============== ==============
</TABLE>
For the years ended March 31, 1998 and 1997, the Partnership has not recognized
$131,424 and $2,143, respectively, of equity in losses of Local Limited
Partnerships relating to two Local Limited Partnerships where cumulative equity
in losses exceeded its total investments in these Local Limited Partnerships.
The Partnership's equity as reflected by the Local Limited Partnerships of
$23,844,561 differs from the Partnership's Investments in Local Limited
Partnerships before adjustment of $24,510,885 principally because: a) the
Partnership has not recognized $133,567 of equity in losses of two Local Limited
Partnerships whose equity in losses exceeded its total investment; b)
distributions made by Local Limited Partnerships during the quarter ended March
31, 1998 are not reflected in the December 31, 1997 balance sheets of the Local
Limited Partnerships; and c) syndication costs charged to equity by a Local
Limited Partnership are not reflected in the Partnership's investment in the
Local Limited Partnership.
Notes to the Combined Financial Statements (continued)
5. Rental Property
Real estate and personal property belonging to the Combined Entity at December
31, 1997 is as follows:
Land $ 42,000
Building and improvements 1,004,939
-----------
1,046,939
Less: Accumulated depreciation (268,015)
Total $ 778,924
===========
During the year ended December 31, 1997, an impairment loss of $160,000 was
recognized on the real estate in the Combined Entity, which decreased the
carrying value to $1,046,939.
6. Transactions with Affiliates
An affiliate of the Managing General Partner currently receives the base amount
of .351% (as adjusted by the CPI factor) of Gross Proceeds annually as the Asset
Management Fee for administering the affairs of the Partnership. Asset
Management Fees of $238,087, $231,035 and $224,953 for the years ended March 31,
1998, 1997 and 1996, respectively, have been included in expenses. Included in
accounts payable to affiliate at March 31, 1998 and 1997 are $60,556 and
$59,177, respectively, of asset management fees due to an affiliate of the
Managing General Partner.
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, 1998, 1997 and 1996 are $127,926,
$117,763 and $115,696, respectively, that the Partnership has paid or is payable
as reimbursement for salaries and benefits expenses. The amounts payable for
salaries and benefits at March 31, 1998 and 1997 are $18,654 and $29,050,
respectively.
BF Lansing Limited Partnership ("BF Lansing"), an affiliate of the Managing
General Partner, is the Administrative General Partner in two Local Limited
Partnerships in which the Partnership has invested, St. Croix II, Limited
Partnership ("Carib Villas II") and Christiansted Limited Partnership ("Carib
Villas III"). BF Lansing's only responsibility in relation to the two Local
Limited Partnerships is the selection of a management agent. BF Lansing selected
Lansing Management Company ("LMC"), an affiliate of the Managing General
Partner, as the management agent for Carib Villas II and III. The management fee
charged to each property is equal to 5% of property gross revenues. Included in
operating expenses in the summarized income statements in Note 4 to the
financial statements are $21,120, $15,305 and $11,837, respectively, of fees
paid to LMC for the years ended December 31, 1997, 1996 and 1995.
LMC is also the management agent for Historic New Center, another Local Limited
Partnership in which the Partnership invested. Included in operating expenses in
the summarized income statements in Note 4 to the financial statements are
$21,986, $24,561 and $21,336, respectively, of fees earned by LMC for the years
ended December 31, 1997, 1996 and 1995.
Boston Financial Property Management ("BFPM"), an affiliate of the Managing
General Partner, is the management agent for Woodlake Hills, a Local Limited
Partnership in which the Partnership is invested. The management fee charged to
the property is 4% of property gross revenues. Included in operating expenses in
the summarized income statements in Note 4 to the financial statements are
$34,752, $37,497 and $42,852, respectively, of fees earned by BFPM for the years
ended December 31, 1997, 1996 and 1995.
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
7. Mortgage Notes Payable
The Combined Entity has a mortgage note payable of $750,000 amortized over 30
years at a rate of 11.5%. On December 27, 1997, the mortgage holder of the note
reduced the interest rate to 10% for a period of one year; this reduction
changed the monthly payment from $7,427 to $6,143. It is anticipated that by the
end of the one year, the Combined Entity will have negotiated a new financing
agreement with another lending institution. As of December 31, 1997, the
remaining balance on this note is $707,659. As the terms of this note have been
negotiated under current conditions, the fair value of the note approximates its
carrying value as of December 31, 1997.
8. Deferred Revenue
Under the terms of a Local Limited Partnership Agreement, the Partnership was
required to fund a Supplemental Reserve in the amount of $196,000. The original
purpose of the contribution was to fund the development expenses of the Local
Limited Partnership. In lieu of transferring the Supplemental Reserve to the
Local Limited Partnership, the Partnership designated $196,000 of its cash and
cash equivalents for this purpose. Since the funds were not needed, the Local
Limited Partnership Agreement allows that the established Supplemental Reserve,
along with the interest earned, are available to pay the Partnership its annual
priority distribution. As of March 31, 1998, $99,000 has been released to the
Partnership. The balance of the Supplemental Reserve is included in cash and
cash equivalents. This balance, along with the accrued interest thereon, has
also been accounted for as deferred revenue, as it represents the future annual
priority distributions to be released to the Partnership from this Reserve.
9. Litigation
The Partnership is not a party to any pending legal or administrative
proceeding. However, Tompkins/Rosecliff, Ltd. which owns a property in Sanford,
Florida, is involved in certain litigation with an entity formerly affiliated
with this partnership and its previous local general partner. It is possible
that the Partnership will be named as a defendant in this litigation. It does
not currently appear that this matter presents a material risk to the
Partnership. However, in the opinion of management, there is currently a remote
possibility that this litigation could ultimately result in a loss of this
property and its credits. The Partnership will vigorously pursue its legal
rights if this becomes a material risk in the future. The Partnership has
retained counsel to represent its interest in this matter.
10. Transfer of Interest in Local Limited Partnership
On November 10, 1997, the Managing General Partner transferred 50% of its
interest in capital and profits of Westgate to the local general partner.
Included in this transfer is a put option. The put option grants the Managing
General Partner the right to put the Partnership's remaining interest to the
local general partner any time after one year has elapsed. For financial
reporting purposes, the Partnership has written down the remaining
carrying value of this investment to zero, because it is unknown as to whether
the Partnership will be able to recover its invested balances. The Partnership
will retain its full share of tax credits until such time as the remaining
interest is put to the local general partner.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
11. Federal Income Taxes
A reconciliation of the loss reported in the Combined Statements of
Operations for the years ended March 31, 1998, 1997 and 1996 to the loss
reported for federal income tax purposes for the years ended December 31, 1997,
1996 and 1995 is as follows:
<TABLE>
<CAPTION>
1998 1997 1996
------------ ------------ --------
<S> <C> <C> <C>
Net Loss per Statement of Operations $ (5,838,302) $(4,337,761) $(4,952,448)
Adjustment for equity in losses of Local Limited
Partnerships for financial reporting purposes
over (under) equity in losses for tax purposes (1,419,314) (555,803) 115,395
Equity in losses of Local Limited Partnerships not
recognized for financial reporting purposes (131,424) (2,143) -
Adjustment to reflect March 31, fiscal year-end
to December 31, tax year-end 31,986 (46,742) 28,653
Adjustment for expenses not currently deductible for
tax purposes - 114,572 55,889
Related party expenses paid in current year but
expensed for book purposes in prior year (114,572) (55,889) (54,420)
Adjustment for accelerated amortization
for tax purposes over amortization
for financial reporting purposes (8,383) (10,828) (8,426)
Provision for valuation of Investment in Local
Limited Partnership not deductible for
tax purposes 590,197 - -
Other - 22,000 (22,000)
------------ ------------ ------------
Net Loss for federal income tax
purposes $ (6,889,812) $ (4,872,594) $ (4,837,357)
============ ============ ============
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
11. Federal Income Taxes (continued)
The differences of the assets and liabilities of the Partnership for financial
reporting purposes and tax reporting purposes for the year ended March 31, 1998
are as follows:
<TABLE>
<CAPTION>
Financial Tax
Reporting Reporting
Purposes Purposes Differences
<S> <C> <C> <C>
Investments in Local Limited Partnerships $ 24,775,767 $ 23,114,290 $ 1,661,477
============= ============= ============
Other assets $ 4,129,901 $ 13,054,826 $ (8,924,925)
============= ============= ===========
Liabilities $ 1,002,330 $ 217,179 $ 785,151
============= ============= ============
</TABLE>
The differences in 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 one Local Limited
Partnership with its financial statements; for tax reporting purposes, this
entity is carried on the equity method; (ii) the Partnership has provided a
reserve for valuation of approximately $590,000 against one of its investments
in Local Limited Partnerships for financial reporting purposes; (iii) the
cumulative equity in loss from Local Limited Partnerships, including the
Combined Entity, for tax reporting purposes is approximately $2,163,000
greater than for financial reporting purposes, including approximately
$134,000 of losses the Partnership has not recognized relating to two Local
Limited Partnerships whose cumulative equity in losses exceeded its total
investment; (iv) the amortization of acquisition fees for tax reporting purposes
exceeds financial reporting purposes by approximately $51,000;
(v) approximately $34,000 of cash distributions received from Local Limited
Partnerships during the quarter ended March 31, 1998 are not included in the
Partnership's Investments in Local Limited Partnerships for tax reporting
purposes at December 31, 1997; and (vi) organizational and offering costs of
approximately $9,500,000 that have been capitalized for tax reporting purposes,
are charged to Limited Partners' equity for financial reporting purposes.
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 $ 30,531,768 $29,997,313 $ 534,455
============ =========== ============
Other assets $ 3,339,727 $13,071,499 $ (9,731,772)
============ =========== ============
Liabilities $ 298,276 $ 227,063 $ 71,213
============ =========== ==============
</TABLE>
The differences in assets and liabilities of the Partnership for financial
reporting purposes are primarily attributable to (i) the cumulative equity in
losses of the Local Limited Partnerships is approximately $612,000 greater for
tax reporting purposes; (ii) the amortization of acquisition fees for tax
reporting purposes exceeds financial reporting purposes by approximately
$43,000; (iii) approximately $121,000 of cash distributions received from
Local Limited Partnerships during the quarter ended March 31, 1997 are not
included in the Partnership's Investments in Local Limited Partnerships for tax
reporting purposes at December 31, 1996; and (iv) organizational and
offering costs of approximately $9,500,000 that have been capitalized for tax
reporting purposes, are charged to Limited Partners' equity for financial
reporting purposes.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
12. Supplemental Combining Schedules
<TABLE>
<CAPTION>
Balance Sheets
Boston Financial
Qualified Housing Wheeler
Tax Credits House
L.P V (A) (Burbank) (B) Eliminations Combined
<S> <C> <C> <C> <C>
Assets
Cash and cash equivalents $ 239,708 $ 224 $ - $ 239,932
Mortgagee escrow deposits - 382 - 382
Tenant security deposit escrow - 3,017 - 3,017
Investments in Local
Limited Partnerships, net 24,704,680 - 71,087 24,775,767
Marketable securities, at fair value 3,064,717 - - 3,064,717
Rental property at cost, net of
accumulated depreciation - 778,924 - 778,924
Replacement reserve escrow - 2,888 - 2,888
Other assets 40,041 - - 40,041
--------------- --------------- ------------- --------------
Total Assets $ 28,049,146 $ 785,435 $ 71,087 $ 28,905,668
=============== =============== ============= ==============
Liabilities and Partners' Equity
Accounts payable to affiliates $ 79,210 $ - $ - $ 79,210
Accounts payable and accrued expenses 67,691 5,292 - 72,983
Mortgage note payable - 707,659 - 707,659
Tenant security deposits payable - 3,017 - 3,017
Deferred revenue 139,461 - - 139,461
--------------- --------------- ------------- --------------
Total Liabilities 286,362 715,968 - 1,002,330
--------------- --------------- ------------- --------------
Minority interest in Local Limited
Partnership - - 140,554 140,554
--------------- --------------- ------------- --------------
General, Initial and Investor
Limited Partners' Equity 27,777,237 69,467 (69,467) 27,777,237
Net unrealized losses on
marketable securities (14,453) - - (14,453)
--------------- --------------- ------------- --------------
Total Partners' Equity 27,762,784 69,467 (69,467) 27,762,784
--------------- --------------- ------------- --------------
Total Liabilities and Partners' Equity$ 28,049,146 $ 785,435 $ 71,087 $ 28,905,668
=============== =============== ============= ==============
</TABLE>
(A) As of March 31, 1998.
(B) As of December 31, 1997.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
12. Supplemental Combining Schedules (continued)
<TABLE>
<CAPTION>
Statements of Operations
For the Year Ended March 31, 1998
Boston Financial
Qualified Housing Wheeler
Tax Credits House
L.P. V (A) (Burbank) (B) Eliminations Combined
<S> <C> <C> <C> <C>
Revenue:
Rental $ - $ 98,473 $ - $ 98,473
Investment 179,908 91 - 179,999
Other 42,164 803 - 42,967
--------------- --------------- ------------- ------------
Total Revenue 222,072 99,367 - 321,439
--------------- --------------- ------------- ------------
Expenses:
General and administrative 237,092 - - 237,092
Asset management fees, related party 238,087 - - 238,087
Provision for valuation of Investment in
Local Limited Partnership 590,197 - - 590,197
Rental operations, exclusive of depreciation - 30,067 - 30,067
Provision for valuation of rental property - 160,000 - 160,000
Interest - 64,148 - 64,148
Depreciation - 35,299 - 35,299
Amortization 29,291 - - 29,291
--------------- --------------- ------------- ------------
Total Expenses 1,094,667 289,514 - 1,384,181
--------------- --------------- ------------- ------------
Loss before minority interest in
losses of Local Limited Partnership and
equity in losses of Local Limited
Partnerships (872,595) (190,147) - (1,062,742)
Minority interest in losses of
Local Limited Partnership - - 1,900 1,900
Equity in losses of Local Limited
Partnerships (4,965,707) - 188,247 (4,777,460)
--------------- --------------- ------------- ------------
Net Loss $ (5,838,302) $ (190,147) $ 190,147 $ (5,838,302)
=============== =============== ============= ============
</TABLE>
(A) For the year ended March 31, 1998.
(B) For the period March 1, 1997 through December 31, 1997.
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to Combined Financial Statements (continued)
12. Supplemental Combining Schedules (continued)
<TABLE>
<CAPTION>
Statements of Cash Flows
Boston Financial
Qualified Housing Wheeler
Tax Credits House
L.P. V (A) (Burbank) (B) Eliminations Combined
<S> <C> <C> <C> <C>
Cash flows from operating activities:
Net Loss $ (5,838,302) $ (190,147) $ 190,147 $ (5,838,302)
Adjustments to reconcile net loss to
net cash used for operating activities:
Equity in losses of Local
Limited Partnerships 4,965,707 (188,247) 4,777,460
Provision for valuation of Investment
in Local Limited Partnership 590,197 - - 590,197
Provision for valuation of rental property - 160,000 - 160,000
Depreciation and amortization 29,291 35,299 - 64,590
Gain on sale of marketable securities (1,154) - - (1,154)
Minority interest in losses of
Local Limited Partnership - - (1,900) (1,900)
Increase (decrease) in cash arising from
changes in operating assets and liabilities:
Tenant security deposits - (131) - (131)
Mortgagee escrow deposits - 3,990 - 3,990
Other assets 10,992 - - 10,992
Accounts payable to affiliates (9,017) (16,588) - (25,605)
Accounts payable and
accrued expenses 31,999 (10,542) - 21,457
Tenant security deposits payable - 131 - 131
Deferred revenue (34,896) - - (34,896)
--------------- --------------- ------------- ------------
Net cash used for operating activities (255,183) (17,988) - (273,171)
--------------- --------------- ------------- ------------
Cash flows from investing activities:
Purchases of marketable securities (2,889,608) - - (2,889,608)
Proceeds from sales and maturities
of marketable securities 2,694,039 - - 2,694,039
Cash distributions received from
Local Limited Partnerships 241,893 - - 241,893
Advance to affiliate (1,000) - - (1,000)
Replacement reserve deposits - (739) - (739)
Cash received upon assumption
of General Partner interest
in a Combined Entity - 937 - 937
--------------- ------------- ------------ ------------
Net cash provided by investing activities 45,324 198 - 45,522
--------------- ------------- ------------ ------------
</TABLE>
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS L.P. V
(A Limited Partnership)
Notes to the Combined Financial Statements (continued)
12. Supplemental Combining Schedules (continued)
<TABLE>
<CAPTION>
Statements of Cash Flows (continued)
Boston Financial
Qualified Housing Wheeler
Tax Credits House
L.P. V (A) (Burbank) (B) Eliminations Combined
<S> <C> <C> <C> <C>
Cash flows from financing activities:
General Partner contribution - 23,462 - 23,462
Payment of mortgage principal - (5,448) - (5,448)
--------------- ------------- ------------ ------------
Net cash provided by financing activities 18,014 - 18,014
--------------- ------------- ------------ ------------
Net increase (decrease) in cash
and cash equivalents (209,859) 224 - (209,635)
Cash and cash equivalents, beginning 449,567 - - 449,567
--------------- ------------- ------------ ------------
Cash and cash equivalents, ending $ 239,708 $ 224 $ - $ 239,932
=============== ============= ============ ============
</TABLE>
(A) For the year ended March 31, 1998.
(B) For the period March 1, 1997 through December 31, 1997.
<PAGE>
Boston Financial Qualified Housing Tax Credits L. P. V
Schedule III - Real Estate and Accumulated Depreciation of Property Owned by
Local Limited Partnerships in which Registrant has invested at March 31, 1998
COST AT INTEREST ACQUISITION DATE
-------------------------------------
<TABLE>
<CAPTION>
NET IMPROVEMENTS
NUMBER TOTAL CAPITALIZED
OF ENCUM- BUILDING AND SUBSEQUENT TO
DESCRIPTION UNITS BRANCES * LAND IMPROVEMENTS ACQUISITION
<S> <C> <C> <C> <C> <C>
Low and Moderate
Income Apartment Complexes
Strathern Park/Lorne Park 241 $17,482,959 $4,369,500 $10,513,639 $10,997,952
Los Angeles, CA
Maidens Choice 101 4,036,347 807,791 2,013,769 3,414,899
Baltimore, MD
Cedar Lane 36 1,115,791 40,000 1,375,512 11,854
London, KY
Silver Creek 24 770,058 20,000 946,812 0
Berea, KY
Rosecliff 168 5,591,237 1,200,000 3,304,950 4,578,797
Orlando, FL
Brookwood 81 3,040,777 91,470 344,580 4,533,211
Ypsilanti Township, MI
Water Oak 40 1,258,505 98,058 1,467,944 5,638
Orange City, FL
Yester Oaks 44 1,289,338 47,105 1,574,145 2,489
Lafayette, GA
Ocean View 42 1,369,108 112,620 1,600,421 7,347
Ferandina Beach, FL
Wheeler House 17 707,659 42,000 1,139,412 (134,473)
Nashua, NH
Archer Village 24 710,331 40,000 861,288 38,869
Archer, FL
Oaks of Dunlop 144 4,441,748 631,959 6,492,444 135,225
Colonial Heights, VA
Timothy House 112 2,537,465 11,638 6,344,664 412,666
Towson, MD
Westover Station 108 2,668,441 305,645 4,299,613 4,489
Newport News, VA
Carib Villas III 24 1,485,819 107,582 1,802,466 2,764
St. Croix, VI
Carib Villas II 20 1,405,035 57,720 1,787,528 2,764
St. Croix, VI
Whispering Trace 40 1,393,392 218,000 2,413,145 (485,934)
Woodstock, GA
New Center 104 3,504,633 79,652 3,534,776 2,932,510
Detroit, MI
Huguenot Park 24 1,400,000 83,000 2,088,664 0
New Paltz, NY
Hillwood Pointe 100 2,961,816 454,185 5,103,711 11,854
Jacksonville, FL
Pinewood Pointe 136 4,010,215 555,093 6,809,808 486,038
Jacksonville, FL
</TABLE>
<PAGE>
Boston Financial Qualified Housing Tax Credits L. P. V
Schedule III - Real Estate and Accumulated Depreciation of Property Owned by
Local Limited Partnerships in which Registrant has invested at March 31, 1998
<TABLE>
<CAPTION>
COST AT INTEREST ACQUISITION DATE
-------------------------------------
NET IMPROVEMENTS
NUMBER TOTAL CAPITALIZED
OF ENCUM- BUILDING AND SUBSEQUENT TO
DESCRIPTION UNITS BRANCES * LAND IMPROVEMENTS ACQUISITION
<S> <C> <C> <C> <C> <C>
Low and Moderate
Income Apartment Complexes
Westgate 60 $ 1,378,233 $ 215,168 $ 2,152,519 $ 24,702
Bismark, ND
Woodlake Hills 144 3,845,347 233,690 6,481,250 2,386,284
Pontiac, MI
Bixel House 76 1,376,019 190,746 2,294,879 50,061
Los Angeles, CA
Harmony 65 3,097,554 0 7,020,696 117,826
North Hollywood, CA
Schumaker Place 96 2,928,084 531,776 1,627,716 3,603,531
Salisbury, MD
Circle Terrace 303 9,822,423 0 7,884,733 8,513,503
Lansdown, MD
---------------------------------------------------------------------------------
SUBTOTAL 2,374 85,628,334 10,544,398 93,281,084 41,654,866
LESS: Combined Entity 17 707,659 42,000 1,139,412 (134,473)
---------------------------------------------------------------------------------
TOTAL 2,357 $84,920,675 $10,502,398 $92,141,672 $41,789,339
=================================================================================
(1) The aggregate cost for Federal Income Tax purposes is approximately $
145,640,000.
* 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 8.25% to 11%.
The Partnership has not guaranteed any of these
mortgage notes payable.
</TABLE>
<PAGE>
Boston Financial Qualified Housing Tax Credits L. P. V
Schedule III - Real Estate and Accumulated Depreciation of Property Owned by
Local Limited Partnerships in which Registrant has invested at March 31, 1998
<TABLE>
<CAPTION>
GROSS AMOUNT AT WHICH CARRIED AT DECEMBER 31, 1997 LIFE ON
----------------------------------------------------------- WHICH
DEPRECIATION
BUILDING AND ACCUMULATED DATE IS COMPUTED DATE
DESCRIPTION LAND IMPROVEMENTS TOTAL DEPRECIATION BUILT (YEARS) ACQUIRED
----------- ---- ------------ ----- ------------ ----- ------- --------
<S> <C> <C> <C> <C> <C> <C>
Low and Moderate
Income Apartment Complexes
Strathern Park/Lorne Park $5,889,320 $19,991,771 $25,881,091 $5,213,507 1991 various 07/05/90
Los Angeles, CA
Maidens Choice 807,791 5,428,668 6,236,459 1,584,762 1991 various 08/17/90
Baltimore, MD
Cedar Lane 40,000 1,387,366 1,427,366 302,494 1991 various 09/10/90
London, KY
Silver Creek 20,000 946,812 966,812 212,528 1990 various 08/15/90
Berea, KY
Rosecliff 1,120,000 7,963,747 9,083,747 2,132,914 1991 various 09/18/90
Orlando, FL
Brookwood 522,673 4,446,588 4,969,261 974,213 1992 various 10/01/90
Ypsilanti Township, MI
Water Oak 98,058 1,473,582 1,571,640 368,126 1991 various 01/01/91
Orange City, FL
Yester Oaks 47,105 1,576,634 1,623,739 408,270 1991 various 01/01/91
Lafayette, GA
Ocean View 112,620 1,607,768 1,720,388 429,002 1991 various 01/01/91
Ferandina Beach, FL
Wheeler House 42,000 1,004,939 1,046,939 268,015 1991 various 01/01/91
Nashua, NH
Archer Village 40,000 900,157 940,157 240,973 1991 various 01/01/91
Archer, FL
Oaks of Dunlop 631,959 6,627,669 7,259,628 1,985,033 1991 various 01/01/91
Colonial Heights, VA
Timothy House 11,638 6,757,330 6,768,968 1,148,952 1992 various 03/05/91
Towson, MD
Westover Station 305,645 4,304,102 4,609,747 868,023 1991 various 03/30/91
Newport News, VA
Carib Villas III 239,009 1,673,803 1,912,812 474,009 1992 various 03/21/91
St. Croix, VI
Carib Villas II 197,195 1,650,817 1,848,012 456,959 1991 various 03/01/91
St. Croix, VI
Whispering Trace 218,000 1,927,211 2,145,211 638,586 1990 various 05/01/91
Woodstock, GA
New Center 96,116 6,450,822 6,546,938 1,402,574 1992 various 06/27/91
Detroit, MI
Huguenot Park 83,000 2,088,664 2,171,664 512,659 1991 various 06/26/91
New Paltz, NY
Hillwood Pointe 454,185 5,115,565 5,569,750 1,327,798 1991 various 07/19/91
Jacksonville, FL
Pinewood Pointe 555,093 7,295,846 7,850,939 1,865,409 1991 various 07/31/91
Jacksonville, FL
</TABLE>
<PAGE>
Boston Financial Qualified Housing Tax Credits L. P. V
Schedule III - Real Estate and Accumulated Depreciation of Property Owned by
Local Limited Partnerships in which Registrant has invested at March 31, 1998
<TABLE>
<CAPTION>
GROSS AMOUNT AT WHICH CARRIED AT DECEMBER 31, 1997 LIFE ON
------------------------------------------------------------ WHICH
DEPRECIATION
BUILDING AND ACCUMULATED DATE IS COMPUTED DATE
DESCRIPTION LAND IMPROVEMENTS TOTAL DEPRECIATION BUILT (YEARS) ACQUIRED
----------- ---- ------------ ----- ------------ ----- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Low and Moderate
Income Apartment Complexes
Westgate $ 238,920 $ 2,153,469 $ 2,392,389 $ 505,340 1991 various 07/25/91
Bismark, ND
Woodlake Hills 187,588 8,913,636 9,101,224 1,857,807 1992 various 08/01/91
Pontiac, MI
Bixel House 190,746 2,344,940 2,535,686 776,557 1991 various 07/31/91
Los Angeles, CA
Harmony 0 7,138,522 7,138,522 1,854,304 1991 various 07/31/91
North Hollywood, CA
Schumaker Place 1,023,027 4,739,996 5,763,023 940,251 1992 various 09/20/91
Salisbury, MD
Circle Terrace 1,104,269 15,293,967 16,398,236 2,929,726 1993 various 12/06/91
Lansdown, MD
------------------------------------------------------------
SUBTOTAL 14,275,957 131,204,391 145,480,348 31,678,791
LESS: Combined Entity 42,000 1,004,939 1,046,939 268,015
------------------------------------------------------------
TOTAL $14,233,957 $130,199,452 $144,433,409 $31,410,776
============================================================
</TABLE>
<PAGE>
Summary of property owned and accumulated depreciation:
Property Owned December 31, 1997
- --------------------------------------------------------------------------------
Balance at beginning of period $145,480,438
Additions during period:
Less current year Wheeler House (1,046,939)
Other acquisitions 125,851
Improvements etc. 34,059
--------------------
(887,029)
Deductions during period:
Cost of real estate sold 0
Impairment of Assets (1) (160,000)
--------------------
(160,000)
---------------------
Balance at close of period $144,433,409
=====================
Property Owned December 31, 1996
- --------------------------------------------------------------------------------
Balance at beginning of period $145,304,421
Additions during period:
Other acquisitions 13,520
Improvements etc. 162,497
--------------------
176,017
Deductions during Period:
Cost of real estate sold 0
Reclassification to intangible assets 0
--------------------
0
---------------------
Balance at close of period $145,480,438
=====================
Property Owned December 31, 1995
- --------------------------------------------------------------------------------
Balance at beginning of period $145,215,379
Additions during period:
Other acquisitions 27,195
Improvements etc. 131,065
--------------------
158,260
Deductions during period:
Cost of real estate sold (69,218)
Reclassification to intangible assets 0
--------------------
(69,218)
---------------------
Balance at close of period $145,304,421
=====================
(1) During the year ended December 31, 1997, Wheeler House recognized an
impairment loss on its rental property in the net amount of $160,000 as a result
of applying FASB 121,
Accounting for the Impairment of Long Lived Assets and for Long Lived
Assets to be Disposed of.
<PAGE>
Accumulated Depreciation December 31, 1997
- ---------------------------------------------------
Balance at beginning of period 26,076,146
Additions during period:
Less current year Wheeler House (268,015)
Depreciation 5,602,645
----------------
Balance at close of period $31,410,776
================
Accumulated Depreciation December 31, 1996
- ---------------------------------------------------
Balance at beginning of period 21,269,750
Additions during period:
Depreciation 4,806,396
----------------
Balance at close of period $26,076,146
================
Accumulated Depreciation December 31, 1995
- ---------------------------------------------------
Balance at beginning of period 16,571,920
Additions during period:
Depreciation 4,697,830
----------------
Balance at close of period $21,269,750
================
<PAGE>
BOSTON FINANCIAL QUALIFIED HOUSING TAX CREDITS V
(A Limited Partnership)
Annual Report on form 10-K
For The Year Ended March 31, 1998
Reports of Independent Auditors
<PAGE>
[Letterhead]
[LOGO]
JOHN J. LEHOTAN, C.P.A.
4385 W. Main Street
Brown City, MI 48416
To The Partners of Woodlake Hills
Limited Partnership
Detroit, Michigan
Independent Auditor's Report
I have audited the accompanying balance sheet of Woodlake Hills Limited
Partnership, a Michigan limited partnership as of December 31, 1997 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 our 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 Woodlake Hills Limited Partnership
as of December 31, 1997 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 Accountant, C.P.A.
February 5, 1998
<PAGE>
[Letterhead]
[LOGO]
JOHN J. LEHOTAN, C.P.A.
Brown City, MI
To The Partners of Woodlake Hills
Limited Partnership
Detroit, Michigan
Independent Auditor's Report
I have audited the accompanying balance sheet of Woodlake Hills 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 our 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 Woodlake Hills 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 5, 1997
<PAGE>
[Letterhead]
[LOGO]
JOHN J. LEHOTAN, C.P.A.
4385 W. Main Street
Brown City, MI 48416
To The Partners of Woodlake Hills
Limited Partnership
Detroit, Michigan
Independent Auditor's Report
I have audited the accompanying balance sheet of Woodlake Hills 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 Woodlake Hills 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 11, 1996
<PAGE>
[Letterhead]
[LOGO]
NANAS, STERN, BIERS, NEINSTEIN AND CO.LLP 9454 Wilshire Boulevard Beverly Hills,
California 90212-2907
Independent Auditors' Report
The Partners
Strathern Park
Los Angeles, California
We have audited the accompanying balance sheet of Strathern Park (a California
limited partnership), as of December 31, 1997 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 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 Strathern Park as of December
31, 1997, 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 additional information on Schedules I, II and
III is presented for the purposes of additional analysis and is not a required
part of the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements
and, in our opinion, is fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
/s/Nanas, Stern, Biers, Neinstein and Co., LLP
NANAS, STERN, BIERS, NEINSTEIN AND CO.
January 28, 1998
<PAGE>
[Letterhead]
[LOGO]
NANAS, STERN, BIERS, NEINSTEIN AND CO. , LLP
9454 Wilshire Boulevard
Beverly Hills, California 90212-2907
Independent Auditors' Report
The Partners
Strathern Park
Los Angeles, California
We have audited the accompanying balance sheet of Strathern Park (a California
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 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 Strathern Park 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 additional information on Schedules I, II and
III is presented for the purposes of additional analysis and is not a required
part of the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements
and, in our opinion, is fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
/s/Nanas, Stern, Biers, Neinstein and Co.
NANAS, STERN, BIERS, NEINSTEIN AND CO.
January 14, 1997
<PAGE>
[Letterhead]
[LOGO]
NANAS, STERN, BIERS, NEINSTEIN AND CO.
9454 Wilshire Boulevard
Beverly Hills, California 90212-2907
Independent Auditors' Report
The Partners
Strathern Park
Los Angeles, California
We have audited the accompanying balance sheet of Strathern Park (a California
limited partnership), 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.
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 Strathern Park as of December
31, 1995, and the results of its operations and its cash flows for the year then
ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The additional information on Schedules I, II and
III is presented for the purposes of additional analysis and is not a required
part of the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements
and, in our opinion, is fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
/s/Nanas, Stern, Biers, Neinstein and Co.
NANAS, STERN, BIERS, NEINSTEIN AND CO.
January 23, 1996
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS' REPORT
To the Partners
Maiden Choice Limited Partnership
We have audited the accompanying balance sheet of Maiden Choice Limited
Partnership as of December 31, 1997, and the related statements of profit and
loss (on HUD Form No. 92410), partners' equity and cash flows for the year then
ended. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit 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 Maiden Choice Limited
Partnership as of December 31, 1997, and the results of its operations, changes
in partners' equity and its cash flows for the year then ended, in conformity
with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 21 through 33
is presented for purposes of additional analysis and is not a required part of
the basic financial statements. Such information, except for that portion marked
"unaudited," on which we express no opinion, 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.
<PAGE>
In accordance with Government Auditing Standards and the Consolidated Audit
Guide for Audits of HUD Programs, we have also issued reports dated January 6,
1998, on our consideration of Maiden Choice Limited Partnership's internal
control and on its compliance with specific requirements applicable to CDA
programs, fair housing and non-discrimination, and laws and regulations
applicable to the financial statements.
/s/Reznick Fedder & Silverman
Baltimore, Maryland Federal Employer Identification Number:
52-1088612
Audit Principal: William T. Riley, Jr.
January 6, 1998
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS' REPORT
To the Partners
Maiden Choice Limited Partnership
We have audited the accompanying balance sheet of Maiden Choice Limited
Partnership as of December 31, 1996, and the related statements of profit and
loss (on HUD Form No. 92410), partners' equity and cash flows for the year then
ended. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit 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 Maiden Choice Limited
Partnership as of December 31, 1996, and the results of its operations, changes
in partners' equity and its cash flows for the year then ended, in conformity
with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 20 through 34
is presented for purposes of additional analysis and is not a required part of
the basic financial statements. Such information, except for that portion marked
"unaudited," on which we express no opinion, 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.
<PAGE>
In accordance with Government Auditing Standards and the Consolidated Audit
Guide for Audits of HUD Programs, we have also issued reports dated January 6,
1997, on our consideration of Maiden Choice Limited Partnership's internal
control structure and on its compliance with specific requirements applicable to
CDA programs, affirmative fair housing, and laws and regulations applicable to
the financial statements.
/s/Reznick Fedder & Silverman
Baltimore, Maryland Federal Employer Identification Number:
52-1088612
Audit Principal: William T. Riley
January 6, 1997
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS' REPORT
To the Partners
Maiden Choice Limited Partnership
We have audited the accompanying balance sheet of Maiden Choice Limited
Partnership as of December 31, 1995, and the related statements of profit and
loss (on HUD Form No. 92410), partners' equity and cash flows for the year then
ended. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit 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 Maiden Choice Limited
Partnership as of December 31, 1995, and the results of its operations, changes
in partners' equity and its cash flows for the year then ended, in conformity
with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 20 trough 29
is presented for purposes of additional analysis and is not a required part of
the basic financial statements. Such information, except for that portion marked
"unaudited," on which we express no opinion, 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.
In accordance with Government Auditing Standards, we have also issued reports
dated January 18, 1996, on our consideration of Maiden Choice Limited
Partnership's internal control structure and on its compliance with specific
requirements applicable to CDA programs, affirmative fair housing, and laws and
regulations applicable to the financial statements.
/s/Reznick Fedder & Silverman
Baltimore, Maryland Federal Employer Identification Number:
52-1088612
Audit Principal: William T. Riley, Jr.
January 18, 1996
<PAGE>
[Letterhead]
[LOGO]
Miller, Mayer, Sullivan & Stevens LLP
INDEPENDENT AUDITORS' REPORT
To the Partners Rural Development
Cedar Lane I, Ltd. London, Kentucky
We have audited the accompanying balance sheets of Cedar Lane I, Ltd., (a
limited partnership) Case No. 20-063-621358072, as of December 31, 1997 and 1996
and the related statements of operations, changes in partners' equity (deficit),
and cash flows for the years then ended. These financial statements are the
responsibility of the partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards
and the standards for financial audits contained in 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 Cedar Lane I, Ltd. as of
December 31, 1997 and 1996, and the results of its operations and its cash flows
for the years then ended in conformity with generally accepted accounting
principles.
In accordance with Government Auditing Standards, we have also issued a report
dated February 2, 1998 on our consideration of Cedar Lane I, Lts.'s internal
control over financial reporting and our tests of its compliance with certain
provisions of laws, regulations, contracts and grants.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental data included in this
report is presented for purposes of additional analysis and is not a required
part of the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audits of the basic financial statements,
and in our opinion, is presented fairly, in all material respects, in relation
to the basic financial statements taken as a whole.
/s/Miller, Mayerm Sullivan & Stevens
Lexington, Kentucky
February 2, 1998
<PAGE>
[Letterhead]
[LOGO]
Miller, Mayer, Sullivan & Stevens LLP
INDEPENDENT AUDITORS' REPORT
To the Partners Rural Development
Cedar Lane I, Ltd. London, Kentucky
We have audited the accompanying balance sheets of Cedar Lane I, Ltd., (a
limited partnership) Case No. 20-063-621358072, as of December 31, 1996 and 1995
and the related statements of operations, changes in 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
and the standards for financial audits contained in 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 Cedar Lane I, Ltd. 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 27, 1997 on our consideration of Cedar Lane I, Lts.'s internal
control structure and compliance with laws and regulations.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental data included in this
report is presented for purposes of additional analysis and is not a required
part of the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audits of the basic financial statements,
and in our opinion, is presented fairly, in all material respects, in relation
to the basic financial statements taken as a whole.
/s/Miller, Mayerm Sullivan & Stevens
Lexington, Kentucky
January 27, 1997
<PAGE>
Letterhead]
[LOGO]
Miller, Mayer, Sullivan & Stevens LLP
INDEPENDENT AUDITORS' REPORT
To the Partners
Silver Creek II, Ltd.
We have audited the accompanying balance sheets of Silver Creek II, Ltd., (a
limited partnership), as of December 31, 1997 and 1996, and the related
statements of operations, changes in 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 Silver Creek II, Ltd. as of
December 31, 1997 and 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 was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental data included in this
report is presented for purposes of additional analysis and is not a required
part of the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audits of the basic financial statements,
and in our opinion, is presented fairly in all material respects, in relation to
the basic financial statements taken as a whole.
/s/Miller, Mayerm Sullivan & Stevens
Lexington, Kentucky
January 27, 1998
<PAGE>
[Letterhead]
[LOGO]
Miller, Mayer, Sullivan & Stevens LLP
INDEPENDENT AUDITORS' REPORT
To the Partners
Silver Creek II, Ltd.
We have audited the accompanying balance sheets of Silver Creek II, Ltd., (a
limited partnership), as of December 31, 1996 and 1995, and the related
statements of operations, changes in 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
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 positions of Silver Creek II, Ltd. 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 audits was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental data included in this
report is presented for purposes of additional analysis and is not a required
part of the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audits of the basic financial statements,
and in our opinion, is presented fairly in all material respects, in relation to
the basic financial statements taken as a whole.
/s/Miller, Mayerm Sullivan & Stevens
Lexington, Kentucky
January 28, 1997
<PAGE>
[Letterhead]
[LOGO]
Deloitte & Touche LLP
Suite 1800
200 South Orange Avenue
Orlando, Florida 32801
INDEPENDENT AUDITORS' REPORT
To the General Partner and Limited Partners of
Tomkins/Rosecliff, Ltd.:
We have audited the accompanying balance sheet of Tomkins/Rosecliff, Ltd. (a
Florida Limited Partnership) as of December 31, 1997, 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 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 Tomkins/Rosecliff, Ltd. (a
Florida Limited Partnership) as of December 31, 1997, and the results of its
operations and its cash flows for the year then ended in conformity with
generally accepted accounting principles.
/s/Deloitte & Touche LLP
February 6, 1998
<PAGE>
[Letterhead]
[LOGO]
Deloitte & Touche LLP
Suite 1800
200 South Orange Avenue
Orlando, Florida 32801
INDEPENDENT AUDITORS' REPORT
To the General Partner and Limited Partners of
Tomkins/Rosecliff, Ltd.:
We have audited the accompanying balance sheet of Tomkins/Rosecliff, Ltd. (a
Florida 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 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 Tomkins/Rosecliff, Ltd. (a
Florida 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/Deloitte & Touche LLP
January 24, 1997
<PAGE>
[Letterhead]
[LOGO]
Deloitte & Touche LLP
Suite 1800
200 South Orange Avenue
Orlando, Florida 32801
INDEPENDENT AUDITORS' REPORT
To the General Partner and Limited Partners of
Tomkins/Rosecliff, Ltd.:
We have audited the accompanying balance sheet of Tomkins/Rosecliff, Ltd. (a
Florida Limited Partnership) 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.
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 Tomkins/Rosecliff, Ltd. (a
Florida 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/Deloitte & Touche LLP
February 2, 1996
<PAGE>
[Letterhead]
[LOGO]
Follmer, Rudzewicz & Co., P.C.
January 22, 1998
INDEPENDENT AUDITORS' REPORT
To the Partners of:
Brookwood L.D.H.A. Limited Partnership
28388 Franklin Road
Southfield, Michigan 48034
We have audited the accompanying Balance sheet of Brookwood L.D.H.A. Limited
Partnership (a Michigan limited partnership), MSHDA Development No. 832 as of
December 31, 1997 and the related Statement of Profit and Loss, changes in in
accumulated earnings and cash flows for the year then ended. These financial
statements are the responsibility of the partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, such financial statements present fairly, in all material
respects, the financial position of Brookwood L.D.H.A. Limited Partnership,
MSHDA No. 832 as of December 31, 1997, and the results of its operations, the
changes in its cumulative income and its cash flows for the year then ended in
conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information of Brookwood
L.D.H.A. Limited Partnership, MSHDA No. 832 on pages 11 through 14 is presented
for the purpose of additional analysis and is not a required part of the basic
financial statements. This additional information is the responsibility of the
partnership's management. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued a report
dated January 22, 1998 on our consideration of the partnership's internal
control structure and a report dated January 22, 1998 on its compliance with
laws and regulations.
/s/Follmer, Rudzewicz & Co., P.C.
Follmer,Rudzewicz & Co. P.C.
Certified Public Accountants
Southfield, Michigan
38-1910111
<PAGE>
[Letterhead]
[LOGO]
Follmer, Rudzewicz & Co., P.C.
January 30, 1997
INDEPENDENT AUDITORS' REPORT
To the Partners
Brookwood L.D.H.A. Limited Partnership
28388 Franklin Road
Southfield, Michigan 48034
We have audited the accompanying Balance sheet of Brookwood L.D.H.A. Limited
Partnership (a Michigan limited partnership), MSHDA Development No. 832 as of
December 31, 1996 and the related Statement of Profit and Loss, changes in in
accumulated earnings and cash flows for the year then ended. These financial
statements are the responsibility of the partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit 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 positions of Brookwood L.D.H.A. Limited
Partnership, MSHDA No. 832 as of December 31, 1996, and the results of its
operations, the changes in its cumulative income and its cash flows for the year
then ended in conformity with generally accepted accounting principles.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The additional information of Brookwood
L.D.H.A. Limited Partnership, MSHDA No. 832 on pages 11 through 14 is presented
for the purpose of additional analysis and is not a required part of the basic
financial statements. This additional information is the responsibility of the
partnership's management. Such information has been subjected to the auditing
procedures applied in the audit of the basic financial statements and, in our
opinion, is fairly stated in all material respects in relation to the basic
financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued a report
dated January 30, 1997 on our consideration of the partnership's internal
control structure and a report dated January 30, 1997 on its compliance with
laws and regulations.
/s/Follmer, Rudzewicz & Co., P.C.
Follmer,Rudzewicz & Co. P.C.
Certified Public Accountants
Southfield, Michigan
38-1910111
<PAGE>
[Letterhead]
[LOGO]
Follmer, Rudzewicz & Co., P.C.
January 24, 1996
INDEPENDENT AUDITOR'S REPORT
To the Partners
Brookswood L.D.H.A. Limited Partnership
28388 Franklin Road
Southfield, Michigan 48034
We have audited the accompanying balance sheet of Brookswood L.D.H.A. Limited
Partnership (a Michigan Limited Partnership), MSHDA Development No. 832, 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
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 positions of Brookswood L.D.H.A. Limited
Partnership at December 31, 1995 and the results of its operations and cash
flows for the year then ended, in conformity with generally accepted accounting
principles.
Our audit was conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental data on pages 11 through
13 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/Follmer, Rudzewicz & Co., P.C.
Follmer,Rudzewicz & Co. P.C.
Certified Public Accountants
Southfield, Michigan
38-1910111
<PAGE>
[Letterhead]
BILLIE J. BURNETT,CPA
5 Benton Drive
Nashua, NH 03060
(603) 883-4230
To The Partners
Burbank Limited Partnership I
I have audited the accompanying balance sheets of Burbank Limited
Partnership I as of December 31, 1997 and 1996, and the related statements of
income, partners' equity and cash flows for the years then ended. The 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
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 statements presentation.
I believe that my audits, provide a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Burbank Limited Partnership
I as of December 31, 1997 and 1996, and the results of its operations and its
cash flows for the years then ended in conformity with generally accepted
accounting principles.
/s/Billie J. Burnett
Billie J. Burnett
January 12, 1998
<PAGE>
[Letterhead]
BILLIE J. BURNETT,CPA
5 Benton Drive
Nashua, NH 03060
(603) 883-4230
To The Partners
Burbank Limited Partnership I
I have audited the accompanying balance sheets of Burbank Limited
Partnership I as of December 31, 1996 and 1995, and the related statements of
income, partners' equity and cash flows for the years then ended. The 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
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 statements presentation.
I believe that my audits, provide a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Burbank Limited Partnership
I 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/Billie J. Burnett
Billie J. Burnett
January 8, 1997
<PAGE>
[Letterhead]
[LOGO]
Wall Einchorn & Chernitzer., P.C.
Certified Public Accountants
First Virginia Bank Towers
555 Main Street
Suite 1500
Post Office Box 3610
Norfolk, Virginia 23514
Alvin A. Wall, CPA Telephone (757)625-4700
Martin A. Einhorn, CPA Telephone (757)625-0527
Jeffrey S. Chernitzer, CPA
INDEPENDENT AUDITORS' REPORT
To the Partners Virginia Housing Development Authority
The Oaks of Dunlop Farms, L. P. 601 South Belvidere Street
(A Limited Partnership) Richmond, Virginia 23220
Norfolk, Virginia
We have audited the accompanying balance sheets of The Oaks of Dunlop Farms,
L.P. (A Limited Partnership), VHDA Project Number 90-0300-C, as of December 31,
1997 and 1996, and the related statements of operations , partners' equity, and
cash flows for the years then ended. These financial statements are the
responsibility of the projects 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 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 VHDA Project Number 90-0300-C
as of December 31, 1997 and 1996, and the results of its operations, changes in
partners' equity, and cash flows for the years then ended in conformity with
generally accepted accounting principles.
The accompanying supplementary information (shown on pages 10 to 17) is
presented for the purposes of additional analysis and is not a required part of
the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audits of the basic financial statements and
in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
/s/Wall, Einhorn & Chernitzer, P.C.
Norfolk, Virginia
January 25, 1998
<PAGE>
[Letterhead]
[LOGO]
Wall Einchorn & Chernitzer., P.C.
Certified Public Accountants
First Virginia Bank Towers
555 Main Street
Suite 1500
Post Office Box 3610
Norfolk, Virginia 23514
Alvin A. Wall, CPA Telephone (757)625-4700
Martin A. Einhorn, CPA Telephone (757)625-0527
Jeffrey S. Chernitzer, CPA
INDEPENDENT AUDITORS' REPORT
To the Partners Virginia Housing Development Authority
The Oaks of Dunlop Farms, L. P. 601 South Belvidere Street
(A Limited Partnership) Richmond, Virginia 23220
Norfolk, Virginia
We have audited the accompanying balance sheets of The Oaks of Dunlop Farms,
L.P. (A. Limited Partnership), VHDA Project Number 90-0300-C, 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 VHDA Project Number 90-0300-C
as of December 31, 1996 and 1995, and the results of its operations, changes in
partners' equity, and cash flows for the years then ended in conformity with
generally accepted accounting principles.
The accompanying supplementary information (shown on pages 9 to 12) is
presented for the purposes of additional analysis and is not a required part of
the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and
in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
/s/Wall, Einhorn & Chernitzer, P.C.
Norfolk, Virginia
January 22, 1997
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS' REPORT
To the Partners
Timothy House Limited Partnership
We have audited the accompanying balance sheet of Timothy House Limited
Partnership as of December 31, 1997 and the related statements of profit and
loss (on HUD Form No. 92410), partners' equity and cash flows for the year then
ended. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit 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 Timothy House Limited
Partnership as of December 31, 1997, and the results of its operations, changes
in partners' equity and its cash flows for the year then ended, in conformity
with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 21 through 33
is presented for purposes of additional analysis and is not a required part of
the basic financial statements. Such information, except for that portion marked
"unaudited," on which we express no opinion, 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.
<PAGE>
In accordance with Government Auditing Standards and the Consolidated Audit
Guide for Audits of HUD Programs, we have also issued reports dated January 10,
1998, on our consideration of Timothy House Limited Partnership's internal
control structure and on its compliance with requirements applicable to CDA
programs, fair housing, and laws and regulations applicable to the financial
statements.
/s/Reznick Fedder & Silverman
Baltimore, Maryland Federal Employer
January 10, 1998 Identification Number:
52-1088612
Audit Principal: William T. Riley, Jr.
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS' REPORT
To the Partners
Timothy House Limited Partnership
We have audited the accompanying balance sheet of Timothy House Limited
Partnership as of December 31, 1996, and the related statements of profit and
loss (on HUD Form No. 92410), partners' equity and cash flows for the year then
ended. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit 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 Timothy House Limited
Partnership as of December 31, 1996, and the results of its operations, changes
in partners' equity and its cash flows for the year then ended, in conformity
with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 20 through 34
is presented for purposes of additional analysis and is not a required part of
the basic financial statements. Such information, except for that portion marked
"unaudited," on which we express no opinion, 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.
<PAGE>
In accordance with Government Auditing Standards and the Consolidated Audit
Guide for Audits of HUD Programs, we have also issued reports dated January 14,
1997, on our consideration of Timothy House Limited Partnership's internal
control structure and on its compliance with specific requirements applicable to
CDA programs, affirmative fair housing, and laws and regulations applicable to
the financial statements.
/s/Reznick Fedder & Silverman
Baltimore, Maryland Federal Employer
January 14, 1997 Identification Number:
52-1088612
Audit Principal: William T. Riley, Jr.
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS REPORT
To the Partners
Timothy House Limited Partnership
We have audited the accompanying balance sheet of Timothy House Limited
Partnership as of December 31, 1995 and the related statements of profit and
loss (on HUD Form No. 92410), partners' equity and cash flows for the year then
ended. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit 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 positions of Timothy House Limited
Partnership as of December 31, 1995 and the results of its operations, changes
in partners' equity and its cash flow 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 supplemental information on pages 20 through 28
is presented for the purposes of additional analysis and is not a required part
of the basic financial statements. Such information, except for that portion
marked "unaudited," on which we express no opinion, 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.
In accordance with Government Auditing Standards, we have also issued reports
dated January 16, 1996, on our consideration of Timothy House Limited
Partnership's internal control structure and on its compliance with specific
requirements applicable to CDA programs, affirmative fair housing, and laws and
regulations applicable to the financial statements.
/s/Reznick Fedder & Silverman
Baltimore, Maryland Federal Employer
January 16, 1996 Identification Number:
52-1088612
Audit Principal: William T. Riley, Jr.
<PAGE>
[Letterhead]
Wilfore & Wynn
A Professional Corporation
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
The Partners
Westover Station Associates, L.P.
(A Limited Partnership)
Newport News, Virginia
We have audited the accompanying balance sheets of Westover Station Associates,
L.P., VHDA Project Number 90,0303-C, as of December 31, 1997 and 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 audits in accordance with generally accepted auditing standards
and the Virginia Housing Development Authority's Mortgagor/Grantee's Audit
Guide.
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 Westover Station Associates,
L.P. at December 31, 1997 and 1996, 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 basic
financial statements taken as a whole. The supplemental schedules included in
the report are presented for purposes of additional analysis and are not a
required part of the basic financial statements of Westover Station Associates,
L.P. Such information has been subjected to the auditing procedures applied in
the audit of the basis financial statements and, in our opinion, is fairly
stated in all material respects in relation to the financial statements taken as
a whole.
/s/Wilfore & Wynn
Wilfore & Wynn
Virginia Beach, Virginia
February 5, 1998
4530 Professional Circle Virginia Beach, Virginia 23455-6498
Telephone (804)456-0111 Fax (804)473-1095
<PAGE>
[Letterhead]
Wilfore & Wynn
A Professional Corporation
Certified Public Accountants
INDEPENDENT AUDITORS' REPORT
The Partners
Westover Station Associates, L.P.
(A Limited Partnership)
Newport News, Virginia
We have audited the accompanying balance sheets of Westover Station Associates,
L.P. as of December 31, 1996 and 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 Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
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 Westover Station Associates,
L.P. 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.
<PAGE>
The supplemental schedules and supporting data required by VHDA are prepared in
accordance with VHDA requirements and have been tested by us as part of our
auditing procedures followed in the examinantion of the financial statements
mentioned above and, in our opinion, they are fairly stated in all material
respects in relation to the financial statements taken as a whole.
/s/Wilfore & Wynn
Wilfore & Wynn
Virginia Beach, Virginia
February 10, 1997 (2)
4530 Professional Circle Virginia Beach, Virginia 23455-6498
Telephone (804)456-0111 Fax (804)473-1095
<PAGE>
[Letterhead]
Kirschner Hutton Perlin, P.C.
Certified Public Accountants
26913 Northwestern Hwy. Suite 510
Southfield, Michigan 48034-8444
Telephone: (810) 356-3880
Facsimile: (810) 356-3885
Independent Auditors' Report
Partners January 19, 1998
Christiansted Limited Dividend Housing
Association Limited Partnership
We have audited the accompanying balance sheet of Christiansted Limited Dividend
Housing Association Limited Partnership as of December 31, 1997 and 1996, 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 audits 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 Christiansted Limited Dividend
Housing Association Limited Partnership as of December 31, 1997 and 1996, and
the results of its operations and its cash flows for the years then ended in
conformity with generally accepted accounting principles.
/s/Kirshner Huton Perlin, P.C.
<PAGE>
[Letterhead]
Kirschner Hutton Perlin, P.C.
Certified Public Accountants
26913 Northwestern Hwy. Suite 510
Southfield, Michigan 48034-8444
Telephone: (810) 356-3880
Facsimile: (810) 356-3885
Independent Auditors' Report
Partners January 22, 1997
Christiansted Limited Dividend Housing
Association Limited Partnership
We have audited the accompanying balance sheet of Christiansted Limited Dividend
Housing Association 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 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 Christiansted 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/Kirshner Huton Perlin, P.C.
<PAGE>
Kirschner Hutton Perlin, P.C.
Certified Public Accountants
26913 Northwestern Hwy. Suite 510
Southfield, Michigan 48034-8444
Telephone: (810) 356-3880
Facsimile: (810) 356-3885
Independent Auditors' Report
Partners January 17, 1998
St. Croix II. Limited Partnership
We have audited the accompanying balance sheet of St. Croix II, Limited
Partnership as of December 31, 1997 and 1996, 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 St. Croix II, Limited
Partnership as of December 31, 1997 and 1996, and the results of its operations
and its cash flows for the years then ended in conformity with generally
accepted accounting principles.
/s/Kirshner Huton Perlin, P.C.
<PAGE>
[Letterhead]
Kirschner Hutton Perlin, P.C.
Certified Public Accountants
26913 Northwestern Hwy. Suite 510
Southfield, Michigan 48034-8444
Telephone: (810) 356-3880
Facsimile: (810) 356-3885
Independent Auditors' Report
Partners January 22, 1997
St. Croix II. Limited Partnership
We have audited the accompanying balance sheet of St. Croix II, 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 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 St. Croix II, 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/Kirshner Huton Perlin, P.C.
<PAGE>
[Letterhead]
[LOGO]
KPMG Peat Marwick LLP 303 Peachtree Street, N.E.
Suite 2000
Atlanta, GA 30308
Independent Auditors' Report
The Partners
Kensignton Place Townhomes,
A Limited Partnership:
We have audited the accompanying balance sheets of Kensignton Place Townhomes, A
Limited Partnership as of December 31, 1997 and 1996, and the related statements
of loss, partners' capital, and cash flows for the years then ended. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our 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 statements 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 Kensignton Place Townhomes, A
Limited Partnership as of December 31, 1997 and 1996, and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
/s/ KPMG Peat Marwick LLP
February 16, 1998
<PAGE>
[Letterhead]
[LOGO]
KPMG Peat Marwick LLP 303 Peachtree Street, N.E.
Suite 2000
Atlanta, GA 30308
Independent Auditors' Report
The Partners
Kensignton Place Townhomes,
A Limited Partnership:
We have audited the accompanying balance sheets of Kensignton Place Townhomes, A
Limited Partnership as of December 31, 1996 and 1995, and the related statements
of loss, partners' capital, and cash flows for the years then ended. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our 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 statements 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 Kensignton Place Townhomes, A
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/ KPMG Peat Marwick LLP
February 5, 1997
<PAGE>
[Letterhead]
[LOGO]
KPMG Peat Marwick LLP 303 Peachtree Street, N.E.
Suite 2000
Atlanta, GA 30308
Independent Auditors' Report
The Partners
Cobblestone Place Townhomes,
A Limited Partnership:
We have audited the accompanying balance sheets of Cobblestone Place Townhomes,
A Limited Partnership as of December 31, 1997 and 1996, and the related
statements of loss, partners' capital, and cash flows for the years then ended.
These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our 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 statements 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 Cobblestone Place Townhomes, A
Limited Partnership as of December 31, 1997 and 1996, and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
/s/ KPMG Peat Marwick LLP
February 16, 1998
<PAGE>
[Letterhead]
[LOGO]
KPMG Peat Marwick LLP 303 Peachtree Street, N.E.
Suite 2000
Atlanta, GA 30308
Independent Auditors' Report
The Partners
Cobblestone Place Townhomes,
A Limited Partnership:
We have audited the accompanying balance sheets of Cobblestone Place Townhomes,
A Limited Partnership as of December 31, 1996 and 1995, and the related
statements of loss, partners' capital, and cash flows for the years then ended.
These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our 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 statements 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 Cobblestone Place Townhomes, A
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/ KPMG Peat Marwick LLP
January 20, 1997
<PAGE>
[Letterhead]
[LOGO]
KPMG Peat Marwick LLP 303 Peachtree Street, N.E.
Suite 2000
Atlanta, GA 30308
Independent Auditors' Report
The Partners
Whispering Trace Apartments,
A Limited Partnership:
We have audited the accompanying balance sheets of Whispering Trace Apartments,
A Limited Partnership as of December 31, 1997 and 1996, and the related
statements of loss, partners' capital (deficit), and cash flows for the years
then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our 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 statements 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 Whispering Trace Apartments, A
Limited Partnership as of December 31, 1997 and 1996, and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
/s/ KPMG Peat Marwick LLP
February 16, 1998
<PAGE>
[Letterhead]
[LOGO]
KPMG Peat Marwick LLP 303 Peachtree Street, N.E.
Suite 2000
Atlanta, GA 30308
Independent Auditors' Report
The Partners
Whispering Trace Apartments,
A Limited Partnership:
We have audited the accompanying balance sheets of Whispering Trace Apartments,
A Limited Partnership as of December 31, 1996 and 1995, and the related
statements of loss, partners' capital (deficit), and cash flows for the years
then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our 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 statements 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 Whispering Trace Apartments, A
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/ KPMG Peat Marwick LLP
February 10, 1997
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[letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS REPORT
To the Partners
Huguenot Park Associates, L.P.
We have audited the accompanying balance sheet of Huguenot Park Associates, L.P.
as of December 31, 1997 and 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 Huguenot Park Associates, L.P.
as of December 31, 1997 and 1996, and the results of its operations, the changes
in partners' capital and cash flows for the year then ended, in conformity with
generally accepted accounting principles.
/s/Reznick Fedder & Silverman
Bethesda, Maryland
January 20, 1998
<PAGE>
[letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS REPORT
To the Partners
Huguenot Park Associates, L.P.
We have audited the accompanying balance sheet of Huguenot Park Associates, L.P.
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 Huguenot Park Associates, L.P.
as of December 31, 1996, and the results of its operations, the changes in
partners' capital and cash flows for the year then ended, in conformity with
generally accepted accounting principles.
/s/Reznick Fedder & Silverman
Bethesda, Maryland
January 18, 1997
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS REPORT
To the Partners
Huguenot Park Associates, L.P.
We have audited the accompanying balance sheet of Huguenot Park Associates L.P.
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 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 positions of Huguenot Park Associates, L.P.
as of December 31, 1995 and the results of its operations, changes in partners'
equity and its cash flow for the year then ended in conformity with generally
accepted accounting principles.
/s/Reznick Fedder & Silverman
Bethesda, Maryland
January 22, 1996
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[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
INDEPENDENT AUDITOR'S REPORT
The Partners
Westgate Apartments Limited Partnesrhip
Wahpeton, North Dakota
We have audited the accompanying balance sheets of Westagate Apartments Limited
Partnership as of December 31, 1997 and 1996, 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 provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Westgate Apartments Limited
Partnership as of December 31, 1997 and 1996, and the results of its operations,
and its cash flows for the years then ended in conformity with generally
accepted accounting principles.
/s/Charles Bailly & Company P.L.L.P.
Fargo, North Dakota
January 21, 1998
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
INDEPENDENT AUDITOR'S REPORT
The Partners
Westgate Apartments Limited Partnesrhip
Wahpeton, North Dakota
We have audited the accompanying balance sheets of Westagate 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 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 Westgate 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.
/s/Charles Bailly & Company P.L.L.P.
Fargo, North Dakota
January 18, 1997
<PAGE>
[Letterhead]
[LOGO]
Charles Bailly & Company P.L.L.P.
INDEPENDENT AUDITORS REPORT
The Partners
Westgate Apartments Limited Partnesrhip
Wahpeton, North Dakota
We have audited the accompanying balance sheets of Westagate 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 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 positions of Westgate Apartments Limited
Partnership as of December 31, 1995 and 1994 and the results of its operations,
changes in partners' equity and its cash flow for the year then ended in
conformity with generally accepted accounting principles.
/s/Charles Bailly & Company P.L.L.P.
Fargo, North Dakota
January 22, 1996
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[Letterhead]
SUAREZ ACCOUNTANCY CORPORATION
150 W. Seventh Street Suite 100
San Pedro, CA 900731 Richard Suarez
Telephone (310) 832-7887
Fax (310) 832-6563
Independent Auditor's Report
To The Partners of
Bixel House
Los Angeles, California
I have audited the accompanying balance sheet of Bixel House as of
December 31, 1997, and the related statements of operations, changes in
partners' capital, and cash flows 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 statements 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 position of Bixel House at December 31,
1997, and the results of its operations and cash flows for the year then ended,
in conformity with generally accepted accounting principles.
/s/Suarez Accountancy Corporation
San Pedro, California
January 15, 1998
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[Letterhead]
SUAREZ ACCOUNTANCY CORPORATION
150 W. Seventh Street Suite 100
San Pedro, CA 900731 Richard Suarez
Telephone (310) 832-7887
Fax (310) 832-6563
Independent Auditor's Report
To The Partners of
Bixel House
Los Angeles, California
I have audited the accompanying balance sheet of Bixel House as of
December 31, 1996, and the related statements of operations, changes in
partners' capital, and cash flows for the year then ended. The 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 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 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 statements presentation. I believe that my
audits provide a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Bixel House at 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/Suarez Accountancy Corporation
Certified Public Accountant
San Pedro, California
February 14, 1997
<PAGE>
[Letterhead]
SUAREZ ACCOUNTANCY CORPORATION
150 W. Seventh Street Suite 100
San Pedro, CA 900731 Richard Suarez
Telephone (310) 832-7887
Fax (310) 832-6563
Independent Auditor's Report
To The Partners of
Bixel House
Los Angeles, California
I have audited the accompanying balance sheet of Bixel House as of
December 31, 1995, and the related statements of operations, changes in
partners, capital, and cash flows for the years then ended. The 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 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 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 statements presentation. I believe that my
audits, provide a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Bixel House as of December
31, 1995, and the results of its operations and its cash flows for the years
then ended in conformity with generally accepted accounting principles.
/s/Suarez Accountancy Corporation
Certified Public Accountant
San Pedro, California
February 9, 1996
<PAGE>
[Letterhead]
SUAREZ ACCOUNTANCY CORPORATION
150 W. Seventh Street Suite 100
San Pedro, CA 900731 Richard Suarez
Telephone (310) 832-7887
Fax (310) 832-6563
Independent Auditor's Report
To The Partners of
Harmony Apartments
Los Angeles, California
I have audited the accompanying balance sheet of Harmony Apartments as of
December 31, 1997, and the related statements of operations, changes in
partners' capital, and cash flows for the year ended December 31, 1997. 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 statements presentation.
I believe that my audit provide a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Harmony Apartments at
December 31, 1997, and the results of its operations and cash flows for the year
ended December 31, 1997 in conformity with generally accepted accounting
principles.
/s/Suarez Accountancy Corporation
San Pedro, California
February 11, 1998
<PAGE>
[Letterhead]
SUAREZ ACCOUNTANCY CORPORATION
150 W. Seventh Street Suite 100
San Pedro, CA 900731 Richard Suarez
Telephone (310) 832-7887
Fax (310) 832-6563
Independent Auditor's Report
To The Partners of
Harmony Apartments
Los Angeles, California
I have audited the accompanying balance sheet of Harmony Apartments as of
December 31, 1996, and the related statements of operations, changes in
partners' capital, and cash flows for the year ended December 31, 1996. The
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 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 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 statements presentation. I believe that my
audits provide a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Harmony Apartments at
December 31, 1996, and the results of its operations and cash flows for the year
ended December 31, 1996 in conformity with generally accepted accounting
principles.
/s/Suarez Accountancy Corporation
Certified Public Accountant
San Pedro, California
February 14, 1997
<PAGE>
[Letterhead]
SUAREZ ACCOUNTANCY CORPORATION
150 W. Seventh Street Suite 100
San Pedro, CA 900731 Richard Suarez
Telephone (310) 832-7887
Fax (310) 832-6563
Independent Auditor's Report
To The Partners of
Harmony Apartments
Los Angeles, California
I have audited the accompanying balance sheet of Harmony Apartments as of
December 31, 1995, and the related statements of operations, changes in
partners, capital, and cash flows for the year ended December 31, 1995. The
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 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 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 statements presentation. I believe that my
audits, provide a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly,
in all material respects, the financial position of Harmony Apartments as of
December 31, 1995, and the results of its operations and its cash flows for the
year ended December 31, 1995 in conformity with generally accepted accounting
principles.
/s/Suarez Accountancy Corporation
Certified Public Accountant
San Pedro, California
February 13, 1996
<PAGE>
[Letterhead]
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Halbert, Katz & Co., P.C.
121 South Broad Street
Philadelphia, Pennsylvania 19107
INDEPENDENT AUDITORS' REPORT
To the Partners
Schumaker Place Associates, L.P.
Wilmington, Delaware
We have audited the accompanying balance sheets of Schumaker Place Associates,
L.P., as of December 31, 1997 and December 31, 1996, 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
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 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 Schumaker Place Associates,
L.P., as of December 31, 1997 and December 31, 1996, 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.
Our audit 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
Schumaker Place Associates, L.P. 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
basic financial statements taken as a whole.
/s/Halbert Katz &Co
January 30, 1998
<PAGE>
[Letterhead]
[LOGO]
Halbert, Katz & Co., P.C.
121 South Broad Street
Philadelphia, Pennsylvania 19107
INDEPENDENT AUDITORS' REPORT
To the Partners
Schumaker Place Associates, L.P.
Wilmington, Delaware
We have audited the accompanying balance sheets of Schumaker Place Associates,
L.P., 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
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
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 positions of Schumaker Place Associates,
L.P., as of December 31, 1996 and December 31, 1995, 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.
Our audit 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
Schumaker Place Associates, L.P. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and
in our opinion, is fairly stated in all material respects in relation to the
basic financial statements taken as a whole.
/s/Halbert Katz &Co
January 30, 1997
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS' REPORT
To the Partners
Circle Terrace Associates
Limited Partnership
We have audited the accompanying balance sheet of Circle Terrace Associates
Limited Partnership as of December 31, 1997, and the related statements of
profit and loss (on HUD Form No. 92410), partners' equity and cash flows for the
year then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit 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 Circle TerraceAssociates
Limited Partnership as of December 31, 1997, and the results of its operations,
the changes in partners' equity and cash flows for the year then ended, in
conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 25 through 37
is presented for purposes of additional analysis and is not a required part of
the basic financial statements. Such information, except for that portion marked
"unaudited," on which we express no opinion, 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.
<PAGE>
In accordance with Government Auditing Standards and the "Consolidated Audit
Guide for Audits of HUD Programs", we have also issued reports dated January 21,
1998, on our consideration of Circle Terrace Associates Limited Partnership's
internal control and on its compliance with specific requirements applicable to
Major HUD and CDA programs, fair housing and non-discrimination, and laws and
regulations applicable to the financial statements.
/s/Reznick Fedder & Silverman
Baltimore, Maryland Federal Employer
January 21, 1998 Identification Number:
52-1088612
Audit Principal: Lester A. Kanis
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS' REPORT
To the Partners
Circle Terrace Associates
Limited Partnership
We have audited the accompanying balance sheet of Circle Terrace Associates
Limited Partnership as of December 31, 1996, and the related statements of
profit and loss (on HUD Form No. 92410), partners' equity and cash flows for the
year then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit 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 Circle TerraceAssociates
Limited Partnership as of December 31, 1996, and the results of its operations,
the changes in partners' equity and cash flows for the year then ended, in
conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 26 trough 40
is presented for purposes of additional analysis and is not a required part of
the basic financial statements. Such information, except for that portion marked
"unaudited," on which we express no opinion, 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.
<PAGE>
In accordance with Government Auditing Standards and the "Consolidated Audit
Guide for Audits of HUD Programs", we have also issued reports dated January 18,
1997, on our consideration of Circle Terrace Associates Limited Partnership's
internal control structure and on its compliance with specific requirements
applicable to Major HUD and CDA programs, affirmative fair housing, and laws and
regulations applicable to the financial statements.
/s/Reznick Fedder & Silverman
Baltimore, Maryland Federal Employer
January 14, 1997 Identification Number:
52-1088612
Audit Principal: Lester A. Kanis
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS REPORT
To the Partners
Circle Terrace Associates
Limited Partnership
We have audited the accompanying balance sheet of Circle Terrace Associates
Limited Partnership as of December 31, 1995 and the related statements of profit
and loss (on HUD Form No. 92410), partners' equity and cash flows for the year
then ended. These financial statements are the responsibility of the
Partnership's management. Our responsibility is to express an opinion on these
financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit 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 positions of Circle TerraceAssociates
Limited Partnership as of December 31, 1995 and the results of its operations,
the changes in partners' equity and its cash flow for the year then ended in
conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The supplemental information on pages 26 trough 32
is presented for purposes of additional analysis and is not a required part of
the basic financial statements. Such information, except for that portion marked
"unaudited," on which we express no opinion, 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.
<PAGE>
In accordance with Government Auditing Standards and the "Consolidated Audit
Guide for Audits of HUD Programs", we have also issued reports dated January 29,
1996, on our consideration of Timothy House Limited Partnership's internal
control structure and on its compliance with specific requirements applicable to
CDA programs, affirmative fair housing, and laws and regulations applicable to
the financial statements.
/s/Reznick Fedder & Silverman
Baltimore, Maryland Federal Employer
January 29, 1996 Identification Number:
52-1088612
Audit Principal: Lester A. Kanis
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS REPORT
To the Partners
Water Oaks Apartments, Ltd.
We have audited the accompanying balance sheets of Water Oaks Apartments, L.P.,
RHS Project No. 09-64-581801555 as of December 31, 1997 and 1996 and the related
statements of operations, partners' deficit and cash flows for the years then
ended. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audits.
We conducted our audits in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the 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 Water Oaks Apartments, L.P.,
RECD Project No. 09-64-581801555 as of December 31, 1997 and 1996, and the
results of its operations, changes in partners' equity and its cash flows for
the years then ended in conformity with generally accepted accounting
principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information on pages 15
through 22 is presented for the purposes of additional analysis and is not a
required part of the basic financial statements. Such information, has been
subjected to the auditing procedures applied in the audit of the basic financial
statements, and, in our opinion, is fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
In accordance with Government Auditing Standards we have also issued reports
dated January 9, 1998, on our consideration of Water Oak Apartments L.P.'s
internal control and on its compliance with laws and regulations applicable to
the financial statements.
/s/Reznick Fedder & Silverman
Atalnta, Georgia
January 9, 1998
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS REPORT
To the Partners
Water Oaks Apartments, Ltd.
We have audited the accompanying balance sheet of Water Oaks Apartments,
Ltd.,RECD Project No. 09-64-581801555 as of December 31, 1995 and the related
statements of operations, partners' deficit and cash flows for the year then
ended. These financial statements are the responsibility of the Partnership's
management. Our responsibility is to express an opinion on these financial
statements based on our audit. The financial statements of Water Oaks Apartments
, Ltd. for the year ended December 31, 1994 were audited by other auditors whose
report dated February 1, 1996, expressed an unqualified opinion on those
statements.
We conducted our audit in accordance with generally accepted auditing standards
and Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit 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 positions of Water Oaks Apartments, Ltd.,
RECD Project No. 09-64-581801555 as of December 31, 1995 and the results of its
operations, changes in partners' deficit and its cash flow 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 supplemental information on pages 16 trough 18
is presented for the purposes of additional analysis and is not a required part
of the basic financial statements. Such information, except for that portion
marked "unaudited," on which we express no opinion, 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.
In accordance with Government Auditing Standards we have also issued reports
dated February 1, 1996, on our consideration of Water Oak Apartments L.P.'s
internal control structure and a report dated February 1, 1996 on its compliance
with laws and regulations.
/s/Reznick Fedder & Silverman
Atlanta, Georgia
February 1, 1996
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS' REPORT
To the Partners
Archer Village, Ltd.
We have audited the accompanying balance sheets of Archer Village, Ltd., RHS
Project No.: 09-001-267869575 as of December 31, 1997 and 1996, 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 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 Archer Village, Ltd., RHS
Project No.: 09-001-267869575 as of December 31, 1997 and 1996, and the results
of its operations, changes in partners' equity and its cash flows for the years
then ended, in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information on pages 16
through 22 is presented for the purposes of additional analysis and is not a
required part of the basic financial statements. Such information has been
subjected to the auditing procedures applied in the 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.
In accordance with Government Auditing Standards we have also issued reports
dated January 9, 1998, on our consideration of Archer Village, Ltd.'s internal
control structure and its compliance with laws and regulations applicable to the
financial statements.
/s/Reznick Fedder & Silverman
Atlanta, Georgia
January 9, 1998
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS' REPORT
To the Partners
Archer Village, Ltd.
We have audited the accompanying balance sheets of Archer Village, Ltd., RHS
Project No.: 09-001-267869575 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 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 positions of Archer Village, Ltd., RHS
Project No.: 09-001-267869575 as of December 31, 1996 and 1995, and the results
of its operations, changes in partners' equity and its cash flows for the years
then ended, in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information on pages 16
through 18 is presented for the purposes of additional analysis and is not a
required part of the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
In accordance with Government Auditing Standards we have also issued reports
dated January 24, 1997, on our consideration of Archer Village, Ltd.'s internal
control structure and on its compliance with laws and regulations.
/s/Reznick Fedder & Silverman
Atlanta, Georgia
January 24, 1997
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS' REPORT
To the Partners
Ocean View Apartments, L.P.
We have audited the accompanying balance sheets of Ocean View Apartments,
L.P.,RHS Project No.: 09-45-581801553, as of December 31, 1997 and 1996, 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 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 Ocean View Apartments, L.P.,
RHS Project No.: 09-45-581801553, as of December 31, 1997 and 1996, and the
results of its operations, the changes in partners' equity and cash flows for
the years then ended, in conformity with generally accepted accounting
principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information on pages 15
through 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
statements and, in our opinion, is fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
In accordance with Government Auditing Standards we have also issued reports
dated January 9, 1998 on our consideration of Ocean View Apartments, L.P.'s
internal control structure and on its compliance with laws and regulations
applicable to the financial statements.
/s/Reznick Fedder & Silverman
Atlanta, Georgia
January 9, 1998
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS' REPORT
To the Partners
Ocean View Apartments, L.P.
We have audited the accompanying balance sheets of Ocean View Apartments,
L.P.,RHS Project No.: 09-45-581801553, 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 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 Ocean View Apartments, L.P.,
RHS Project No.: 09-45-581801553, as of December 31, 1996 and 1995, and the
results of its operations, changes in partners' equity and its cash flows for
the years then ended, in conformity with generally accepted accounting
principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information on pages 16
through 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
statements and, in our opinion, is fairly stated in all material respects in
relation to the basic financial statements taken as a whole.
In accordance with Government Auditing Standards we have also issued reports
dated January 24, 1997 on our consideration of Ocean View Apartments, L.P.'s
internal control structure and on its compliance with laws and regulations.
/s/Reznick Fedder & Silverman
Atlanta, Georgia
January 24, 1997
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS' REPORT
To the Partners
Yester Oaks, L.P.
We have audited the accompanying balance sheets of Yester Oaks, L.P.,RHS Project
No.: 11-046-0581814319, as of December 31, 1997 and 1996, 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 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 Yester Oaks, L.P., RHS Project
No.: 11-046-0581814319 as of December 31, 1997 and 1996, and the results of its
operations, changes in partners' equity and its cash flows for the years then
ended in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information on pages
____ through ____ is presented for the purposes of additional analysis and is
not a required part of the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued reports
dated January 9, 1998, on our consideration of Yester Oaks L.P.'s internal
control and on its compliance with laws and regulations applicable to the
financial statements.
/s/Reznick Fedder & Silverman
Atlanta, Georgia
January 9, 1998
<PAGE>
[Letterhead]
[LOGO]
Reznick Fedder & Silverman
INDEPENDENT AUDITORS' REPORT
To the Partners
Yester Oaks, L.P.
We have audited the accompanying balance sheets of Yester Oaks, L.P.,RHS Project
No.: 11-046-0581814319, 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 audits to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Yester Oaks, L.P., RECD Project
No.: 11-046-0581814319 as of December 31, 1996 and 1995, and the results of its
operations, changes in partners' equity and its cash flows for the years then
ended in conformity with generally accepted accounting principles.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental information on pages 15
through 16 is presented for the purposes of additional analysis and is not a
required part of the basic financial statements. Such information has been
subjected to the 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 basic financial statements taken as a whole.
In accordance with Government Auditing Standards, we have also issued reports
dated January 24, 1997, on our consideration of Ocean View Apartments L.P.'s
internal control structure and on its compliance with laws and regulations.
/s/Reznick Fedder & Silverman
Atlanta, Georgia
January 24, 1997
<PAGE>
[letterhead]
Haran & Associates Ltd.
INDEPENDENT AUDITOR'S REPORT
To the Partners
HISTORIC NEW CENTER APARTMENTS LIMITED PARTNERSHIP
Detroit, Michigan
We have audited the accompanying balance sheet of HISTORIC NEW CENTER APARTMENTS
LIMITED PARTNERSHIP 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.
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 HISTORIC NEW CENTER APARTMENTS
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.
/s/Haran & Associates Ltd.
Certified Public Accountants
Wilmette, Illnois
Illnois Certificate No. 060-3097692
January 29, 1997
<PAGE>
[letterhead]
Haran & Associates Ltd.
INDEPENDENT AUDITORS REPORT
To the Partners
Historic New Center Apartments Limited Partnership
Detroit, Michigan
We have audited the accompanying statement of assets, liabilities and partners'
equity -income tax basis of Historic New Center Apartments Limited Partnership
(a limited partnership) as of December 31, 1995, and the related statements of
profit and loss- income tax basis, changes in partners' equity -income tax basis
and statement of cash flows- income tax basis for the year then ended. These
financial statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with generally accepted auditing standards.
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.
As described in the notes to the financial statements, the Partnership's policy
is to prepare its financial statements on the basis of accounting used for
income tax purposes and are not intended to be presented in conformity with
generally acepted accounting principles.
In our opinion, the financial statements referred to above present fairly in all
material respects, the assets, liabilities and partners' equity of Historic New
Center Apartments Limited Partnership as of December 31, 1994, and its
statements of income (loss), changes in partners' equity and its cash flows for
the year then ended, on the basis of accounting described in the notes to the
financial statements.
/s/Haran & Associates Ltd.
January 20, 1995
<PAGE>
STRATHERN PARK
DECEMBER 31, 1997
<PAGE>
Nanas, Stern, Biers, Neinstein & Co. LLP
Certified Public Accountants
9454 Wilshire Boulevard
Beverly Hills, California 90212-2901
Tel (310) 273-2501
Fax (310) 859-0374
INDEPENDENT AUDITORS' REPORT
The Partners
Strathern Park
Los Angeles, California
We have audited the accompanying balance sheet of Strathern Park (a California
limited partnership), as of December 31, 1997 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 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 Strathern Park as of December
31, 1997, 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 additional information on Schedules I, II and
III is presented for the purposes of additional analysis and is not a required
part of the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements
and, in our opinion, is fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
/s/Nanaa, Stern, Biers, Neinstein and Co. LLP
Nanas, Stern, Biers, Neinstein and Co. LLP
January 28, 1998
<PAGE>
STRATHERN PARK
BALANCE SHEET
DECEMBER 31, 1997
<TABLE>
<CAPTION>
ASSETS
<S> <C> <C>
Cash and cash equivalents (Note 5) $ 75,050
Receivables 28,003
Reserve for replacements (Note 5) 138,827
Tenant security deposits (Note 5) 120,342
Rental property - at cost (Note 2)
Land $ 5,889,320
Buildings 19,042,548
Equipment and furnishings 949,223
--------------
25,881,091
Less: accumulated depreciation (5,213,507) 20,667,584
--------------
Other assets
Syndication fee (Net of accumulated amortization
of $112,219) 606,448
------------------
TOTAL ASSETS $ 21,636,254
==================
LIABILITIES
Accounts payable and accrued expenses $ 72,821
Security deposits 106,609
Accrued interest payable (Note 2) 3,940,215
Long term debt (Notes 2 and 5) 17,482,959
------------------
TOTAL LIABILITIES 21,602,604
DEFERRED INCOME 20,604
PARTNERS' EQUITY (Note 3) 13,046
------------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 21,636,254
==================
</TABLE>
See accompanying auditors'
report. The notes are an integral part of
these financial statements.
<PAGE>
STRATHERN PARK
STATEMENT OF PARTNERS' EQUITY
YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
Profit Balance Net Distri- Balance
and Loss January Loss butions December
Percentage 1, 1997 for the year Paid 31, 1997
-------------- -------------- -------------- -------------- --------------
GENERAL PARTNER
<S> <C> <C> <C> <C> <C>
Safran Associates Investment
Partnership II, A California
Limited Partnership 1% $ (58,039) $ (13,443) $ (702) $ (72,184)
CLASS A LIMITED PARTNER
Safran Associates Investment
Partnership II, A California
Limited Partnership 4% (233,957) (53,774) (9,110) (296,841)
INVESTOR LIMITED PARTNER
Boston Financial Qualified
Housing Tax Credits L.P.V., A
Massachusetts Limited
Partnership 95% 1,745,523 (1,277,121) (86,331) 382,071
SPECIAL LIMITED PARTNER
S L P 90, Inc. --- --- --- --- ---
-------------- -------------- -------------- --------------
$ 1,453,527 $ (1,344,338) $ (96,143) $ 13,046
============== ============== ============== ==============
</TABLE>
See accompanying auditors'
report. The notes are an integral part of
these financial statements.
<PAGE>
STRATHERN PARK
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
INCOME
<S> <C> <C>
Gross potential - rents $ 1,547,419
(Vacancies) (12,686)
Interest 13,651
Miscellaneous 41,426
--------------
TOTAL INCOME $ 1,589,810
EXPENSES (Note 4)
Administrative expense 143,310
Management fees 123,995
Utilities 134,201
Operating and maintenance expense 321,412
Taxes and insurance 180,032
Interest expense - Mortgage note payable 552,976
Interest expense - Notes payable 684,796
Depreciation and amortization 793,426
--------------
2,934,148
---------------
NET LOSS $ (1,344,338)
===============
</TABLE>
See accompanying auditors'
report. The notes are an integral part of
these financial statements.
<PAGE>
STRATHERN PARK
STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 1997
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
<TABLE>
<CAPTION>
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net Loss $ (1,344,338)
Adjustments to reconcile net loss to net cash provided by operating
activities:
Depreciation and amortization $ 793,426
(Increase)/Decrease in -
Receivables 10,579
Tenant security deposits 1,673
(Decrease)/Increase in -
Accounts payable and accrued expenses (12,978)
Accrued interest payable 624,031
Security deposits (888)
Deferred income 366
------------
Total Adjustments 1,416,209
--------------
Net Cash Provided by Operating Activities 71,871
CASH FLOWS FROM INVESTING ACTIVITIES
Deposits to reserve for replacements (82,055)
Releases from reserve for replacements 39,880
Purchase of equipment (4,626)
------------
Net Cash Used in Investing Activities (46,801)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on mortgage (69,492)
Distributions paid (96,143)
------------
Net Cash Used in Financing Activities (165,635)
--------------
Net Decrease in Cash and Cash Equivalents (140,565)
Cash and cash equivalents at January 1, 1997 215,615
--------------
Cash and cash equivalents at December 31, 1997 $ 75,050
==============
SUPPLEMENTAL DISCLOSURE OF CASH FROM INFORMATION:
Cash paid during the year for interest $ 617,557
============
</TABLE>
See accompanying auditors'
report. The notes are an integral part of
these financial statements.
<PAGE>
STRATHERN PARK
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
Note 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICES
Organization -
Strathern Park (the partnership) was organized pursuant to a
limited partnership agreement dated March 28, 1989 as amended.
Effective June 1, 1990, the partnership agreement was amended
with the admission of a new limited partner who purchased a
95% limited partnership interest for a total capital
contribution of $5,963,067. On January 1, 1994 Lorne Park was
merged into Strathern Park. The combined partnerships
constructed a 241 unit apartment project (Lorne Park 72 units,
Strathern Park 169 units) located in Sun Valley, California
for tenants whose income is very low to moderate. The project
is regulated under the terms of certain of its loan
agreements. Such agreements contain certain restrictions
concerning rental charges, the number of units rented to
tenants in the very low, low and moderate income levels and
other matters. Those restrictions of rent and income shall
remain in effect for a minimum of 30 years.
Use of Estimates in the Preparation of Financial Statements -
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.
Significant Accounting Policies -
Method of Accounting - The partnership books are maintained
and its financial statements and tax returns are prepared on
the accrual basis.
Cash Equivalents - For purposes of the statement of cash
flows, the partnership considers all highly liquid debt
instruments purchased with a maturity date of three months or
less to be cash equivalents.
Rental Property - The partnership records property, equipment
and improvements at the cost of acquisition or construction.
The cost of maintenance and repairs is charged to operations
as incurred; significant renewals and betterments are
capitalized. Depreciation is computed using the straight line
method for financial statement purposes and accelerated
methods for tax purposes. Estimated useful lives for financial
statement purposes are as follows:
Classification Life
--------------------- ---------------
Buildings 27.5 Years
Equipment and furnishings 5-7 Years
Amortization - amortization of syndication costs is computed
using the straight line method over a period of 40 years.
STRATHERN PARK
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
Note 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (Cont.)
Income Taxes - The project receives low-income tax credits provided
under Section 42 of the Internal Revenue Code. Also, no provision
for income taxes has been included since the income or loss of the
partnership as well as the tax credits are required to be reported
by the respective partners on their separate income tax returns.
<TABLE>
<CAPTION>
Note 2 LONG TERM DEBT
<S> <C>
Mortgage note payable, secured by First Deed of Trust,
requiring monthly payments of $51,913, including interest
at 9.41% per annum, maturing February, 2022. $ 5,858,679
Note payable secured by Second Deed of Trust, payable to the
Community Redevelopment Agency of the City of Los Angeles with
interest at 7% per annum. Interest accrues from the date of
issuance of the first certificate of occupancy which is
December 26, 1991. Unpaid principal together with all accrued
and unpaid interest are due and payable in full upon the
maturity of the primary permanent loan, but not later than 40
years from date of issuance. Principal and interest payments
may be made in annual installments from the residual receipts
of the project, as the term residual receipts is defined in
the loan agreement. The note was funded by a Housing
Development Grant from the United States Department of Housing
and Urban Development. The terms of the Grant agreement impose
certain restrictions on the use of the Grant proceeds and
operating policies of the partnership. Accrued interest on
this note at
December 31, 1997 amounted to $2,128,864. 5,179,105
Note payable secured by Third Deed of Trust, payable to the
Community Redevelopment Agency of the City of Los Angeles,
with interest at 5% per annum. Interest accrues from the date
of issuance of the first certificate of occupancy which is
December 26, 1991. Unpaid principal together with all accrued
and unpaid interest are due and payable in full upon the
maturity of the primary permanent loan, but not later than 40
years from date of issuance. Principal and interest payments
may be made in annual installments from the residual receipts
of the project, as the term residual receipts is defined in
the loan agreement. Accrued interest on
this note at December 31, 1997 amounted to $1,811,351. 6,445,175
-----------------
$ 17,482,959
=================
</TABLE>
<PAGE>
STRATHERN PARK
NOTES TO FINANCIAL STATEMENTS
DECEMBR 31, 1997
Note 2 LONG TERM DEBT (Contd.)
Maturities of long term debt as of December 31, 1997 for the
succeeding five years are as follows:
Years ended December 31,
1998 65,779
1999 72,337
2000 77,942
2001 87,318
2002 96,023
Thereafter 17,083,560
---------------
$ 17,482,959
===============
Note 3 DISTRIBUTION TO PARTNERS
Pursuant to the terms of the partnership agreement, as amended, and
the loan agreement with the Community Redevelopment Agency of the
City of Los Angeles, distributions are payable only from residual
receipts, as defined in the agreements.
Distributions are apportioned as follows:
1) 40% to the Community Redevelopment Agency of the City of
Los Angeles (CRA)
2) The remaining 60% is allocated as follows:
a) The Investor Limited Partner (Boston) is
to receive any cumulative return
($60,000 annually) in arrears;
b) The next $63,158 is distributed 95% to
Boston, 4% to the Class A Limited Partner
(SAIP II) and 1% to the General Partner
(SAIP II);
c) Any additional cash is used to repay
any partner advances to the partnership;
d) The next $63,158 is distributed 5% to
Boston, 94% to SAIP II (Limited Partner)
and 1% to SAIP II (General Partner);
e) Thereafter, cash is distributed 50% to
Boston, 49% to SAIP II (Limited Partner)
and 1% to SAIP II (General Partner).
<PAGE>
STRATHERN PARK
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1997
Note 4 RELATED PARTY TRANSACTIONS
There were no direct compensation payments to the partners during
the year. However, there were related party transactions which
occurred which are set forth below:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
(Income) Receivable
Expense (Payable)
Account for the At December
Name Description No. Year 31, 1997
---------------------------------- --------------------- --------------- --------------- -----------------
Thomas Safran and
Associates, Inc.(TS&A, Inc.) Management fee 6320 $ 111,491 $ ---
=============== =================
</TABLE>
In addition, the project reimbursed TS&A, Inc. for allocated common
costs such as office supplies, salaries, payroll taxes, and
insurance. The aggregate total of such reimbursements was $92,671
for the year.
The general partner has a direct ownership interest in the
management company listed above.
Thomas Safran & Associates, Inc. (TS&A, Inc.) has subcontracted
certain accounting and supervisory functions to Insignia Residential
Group of California, Inc. (IRG) for a period of two years commencing
August 1, 1997. TS&A, Inc. will continue to be the managing agent
and IRG will report to them on a monthly basis. The agreement among
TS&A, Inc., IRG and the Project provides a portion of the approved
management fees to be paid to IRG for their services.
Note 5 DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS
Cash and Short Term Investments -
The carrying amount approximates fair value because of the
short maturity of those investments.
Long Term Debt (First Deed of Trust) -
The project does not have the right to prepay this debt during
the first ten years of the term of this note. Accordingly, the
carrying amount approximates its fair value.
Long Term Debt (Second & Third Deed of Trust) -
The carrying amount approximates fair value because there is
no ready market for such debt, repayment/refinancing is
severely restricted by the CRA and HUD.
<TABLE>
<CAPTION>
December 31, 1997
----------------------------------
Carrying Fair
Amount Value
<S> <C> <C>
Cash and Short Term Investments $ 334,219 $ 334,219
Long Term Debt (First Deed of Trust) (5,858,679) (5,858,679)
Long Term Debt (Second & Third Deed of Trust) (11,624,280) (11,624,280)
</TABLE>
<PAGE>
STRATHERN PARK
BOSTON FINANCIAL QUALIFIED HOUSING
BALANCE SHEET FORMAT
DECEMBER 31, 1997
<PAGE>
SCHEDULE I
Page 1 of 2
STRATHERN PARK
BOSTON FINANCIAL QUALIFIED HOUSING
BALANCE SHEET FORMAT
DECEMBER 31, 1997
<TABLE>
<CAPTION>
ASSETS
<S> <C> <C>
CURRENT ASSETS
1110 Petty cash $ 500
1120 Cash in bank 74,550
1130 Rent receivables 25,655
1140 Miscellaneous receivables 2,348
1191 Tenant security deposits 120,342
--------------
Total Current Assets $ 223,395
RESERVES AND DEPOSITS
1320 Reserve for replacements 138,827
FIXED ASSETS
1410 Land 5,889,320
1420 Buildings 19,042,548
1450 Equipment and furnishings 949,223
--------------
25,881,091
4100 Less: accumulated depreciation (5,213,507)
--------------
Total Fixed Assets 20,667,584
OTHER ASSETS
1820 Syndication fee (Net of accumulated amortization
of $112,219) 606,448
---------------
TOTAL ASSETS $ 21,636,254
===============
</TABLE>
<PAGE>
SCHEDULE I
Page 2 of 2
STRATHERN PARK
BOSTON FINANCIAL QUALIFIED HOUSING
BALANCE SHEET FORMAT
DECEMBER 31, 1997
LIABILITIES AND PARTNERS' EQUITY
<TABLE>
<CAPTION>
<S> <C> <C>
CURRENT LIABILITIES
2110 Accounts payable $ 25,256
Accrued interest payable - 1st mortgage 47,565
2191 Tenant security deposit liability 106,609
--------------
Total Current Liabilities $ 179,430
MORTGAGE NOTE PAYABLE CURRENT PORTION
1st mortgage note payable current portion 65,779
LONG TERM LIABILITIES
Accrued interest payable - notes
2nd mortgage note payable 2,128,864
3rd mortgage note payable 1,811,351
Mortgage notes payable
2321 1st mortgage note payable 5,792,900
2322 2nd mortgage note payable 5,179,105
2323 3rd mortgage note payable 6,445,175
2210 Deferred income 20,604
--------------
Total Long Term Liabilities 21,377,999
PARTNERS' EQUITY
3130 Limited partners' equity 85,230
3131 General partners' equity (72,184)
--------------
Total Owners' Equity 13,046
---------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 21,636,254
===============
</TABLE>
<PAGE>
SCHEDULE II
Page 1 of 4
STRATHERN PARK
BOSTON FINANCIAL QUALIFIED HOUSING -
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
REVENUE
<S> <C> <C>
Rent revenue
5120 Apartments $ 1,482,095
5121 Tenant assistance payments 52,472
5130 Furniture and equipment ---
5140 Stores and commercial 12,852
5170 Garage and parking spaces ---
5180 Flexible subsidy income ---
5190 Miscellaneous ---
--------------
Total rent revenue $ 1,547,419
Vacancies
5220 Apartments (12,686)
5240 Stores and commercial ---
5270 Garage and parking spaces ---
5290 Miscellaneous ---
--------------
Total Vacancies (12,686)
--------------
Net Rental Revenue 1,534,733
Financial Revenue
5410 Interest Income - operations 3,254
5430 Interest Income - residual receipts ---
5440 Interest income - reserve for replacements 4,692
5490 Interest income - miscellaneous 5,705
--------------
Total Financial Revenue 13,651
Other Revenue
5910 Laundry and vending 26,400
5920 NSF and late charges 6,725
5930 Damages and cleaning fees 2,782
5940 Forfeited tenant security deposits 2,129
5990 Other revenue 3,390
5991 Non-cash revenue ---
--------------
Total Other Revenue 41,426
--------------
NET REVENUE $ 1,589,810
==============
</TABLE>
<PAGE>
SCHEDULE II
Page 2 of 4
STRATHERN PARK
BOSTON FINANCIAL QUALIFIED HOUSING -
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
EXPENSES
<S> <C> <C>
Administrative Expenses
6210 Advertising $ 1,482
6250 Other renting expense ---
6310 Office salaries 15,299
6311 Office supplies 46,028
6320 Management fee 123,995
6330 Manager or superintendent salary 44,382
6331 Manager's rent free unit ---
6340 Legal expenses (project) 2,581
6350 Auditing expenses (project) 9,500
6351 Bookkeeping fees/accounting services ---
6360 Telephone and answering services 10,282
6370 Bad debts 13,756
6390 Miscellaneous administrative expenses ---
--------------
Total Administrative Expenses $ 267,305
Utilities Expenses
6420 Fuel oil/coal ---
6450 Electricity 38,537
6451 Water 56,476
6452 Gas 7,061
6453 Sewer 32,127
--------------
Total Utilities Expenses 134,201
Operating & Maintenance
6510 Janitor and cleaning payroll ---
6515 Janitor and cleaning supplies 5,449
6517 Janitor and cleaning contract ---
6519 Exterminating payroll/contract 1,527
6520 Exterminating supplies ---
6525 Garbage and trash removal 13,379
6530 Security payroll/contract 18,611
<PAGE>
SCHEDULE II
Page 3 of 4
STRATHERN PARK
BOSTON FINANCIAL QUALIFIED HOUSING -
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1997
EXPENSES (Cont.)
Operating & Maintenance (Cont.)
6535 Grounds payroll $ ---
6536 Grounds supplies 10,648
6537 Grounds contract 27,910
6540 Repairs payroll 71,622
6541 Repairs material 40,743
6542 Repairs contract 81,225
6545 Elevator maintenance/contract ---
6546 Heating/cooling repairs and maintenance 2,518
6547 Swimming pool maintenance/contract ---
6548 Snow removal ---
6560 Decorating payroll/contract 27,775
6561 Decorating supplies 20,005
6570 Other, gasoline ---
6590 Miscellaneous operating and maintenance ---
--------------
Total Operating and Maintenance $ 321,412
Taxes and Insurance
6710 Real estate taxes 124,522
6711 Payroll taxes (FICA) 13,155
6719 Miscellaneous taxes, licenses ---
6720 Property and liability insurance 21,402
6721 Fidelity bond insurance ---
6722 Workmen's compensation 8,563
6723 Health insurance and other benefits 8,281
6729 Other insurance ---
6790 Miscellaneous taxes and insurance ---
--------------
Total Taxes and Insurance 175,923
Interest on Mortgage Notes
6821 Interest on 1st mortgage 552,976
<PAGE>
SCHEDULE II
Page 4 of 4
STRATHERN PARK
BOSTON FINANCIAL QUALIFIED HOUSING -
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1997
EXPENSES (Cont.)
Other Financial Expenses
6690 Amortization $ 17,967
6830 Interest on notes payable (long term) 684,796
6850 Mortgage insurance premium ---
6890 Miscellaneous financial expenses 4,109
6895 Non-cash expense ---
--------------
Total Financial Expenses $ 706,872
--------------
TOTAL EXPENSES BEFORE DEPRECIATION 2,158,689
--------------
PROFIT (LOSS) BEFORE DEPRECIATION (568,879)
6600 Depreciation 775,459
--------------
OPERATING PROFIT (LOSS) (1,344,338)
Other Expenses Prior Period (Entity) ---
--------------
NET PROFIT (LOSS) $ (1,344,338)
==============
1st mortgage principal payment $ 69,492
2nd mortgage principal payment ---
3rd mortgage principal payment ---
--------------
Total mortgage principal payments $ 69,492
==============
Actual replacement reserve deposits $ 82,055
Replacement or painting reserve releases $ (39,880)
Cash subsidies ---
Capital improvements not expensed ---
Capital contribution or disbursement $ 96,143
</TABLE>
<PAGE>
SCHEDULE III
STRATHERN PARK
COMPUTATION OF RESIDUAL RECEIPTS
DECEMBER 31, 1997
<TABLE>
<CAPTION>
<S> <C> <C>
Net income (loss) as of December 31, 1997 $ (1,344,338)
ADD: Depreciation $ 775,459
Amortization 17,967
Community Redevelopment Agency loan interest 322,259
Housing Development Grant loan interest 362,537
Releases from reserve for replacements 39,880 1,518,102
-------------- ---------------
173,764
LESS: Principal payments on mortgage (69,492)
Deposits to reserve for replacements (82,055)
Payments for capital expenditures (4,626) (156,173)
-------------- ---------------
RESIDUAL RECEIPTS, as defined in the partnership agreement
at December 31, 1997 $ 17,591
===============
</TABLE>
STRATHERN PARK
DECEMBER 31, 1996
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Partners
Strathern Park
Los Angeles, California
We have audited the accompanying balance sheet of Strathern Park (a California
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 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 Strathern Park 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 additional information on Schedules I, II and
III is presented for the purposes of additional analysis and is not a required
part of the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements
and, in our opinion, is fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
/s/Nanas, Sterns, Biers, Neinstein and Co. LLP
NANAS, STERN, BIERS, NEINSTEIN AND CO. LLP
January 14, 1997
<PAGE>
STRATHERN PARK
BALANCE SHEET
DECEMBER 31, 1996
<TABLE>
<CAPTION>
ASSETS
<S> <C> <C>
Cash (Note 5) $215,615
Receivables 38,582
Reserve for replacements (Note 5) 96,652
Tenant security deposits (Note 5) 122,015
Rental property - at cost (Note 2)
Land 5,889,320
Buildings 19,042,548
Equipment and furnishings 944,597
--------------
25,876,465
Less: accumulated depreciation (4,438,048)
--------------
21,438,417
Other assets
Syndication fee (Net of accumulated
amortization
of $94,252) 624,415
--------------
TOTAL ASSETS $22,535,696
==============
LIABILITIES
Accounts payable and accrued expenses $85,799
Security deposits 107,497
Accrued interest payable (Note 2) 3,316,184
Long term debt (Notes 2 and 5) 17,552,451
--------------
TOTAL LIABILITIES 21,061,931
DEFERRED INCOME 20,238
PARTNERS' EQUITY (NOTE 3) 1,453,527
--------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $22,535,696
==============
</TABLE>
See accompanying auditors' report. The notes are an integral part of these
financial statements.
<PAGE>
STRATHERN PARK
STATEMENT OF PARTNERS' EQUITY
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
Profit Balance Net Distri- Balance
and Loss January Loss butions December
Percentage 1, 1996 for the year Paid 31, 1996
------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
GENERAL PARTNER
Safran Associates Investment
Partnership II, A California
Limited Partnership 1% $(44,808) $(12,443) $(788) $(58,039)
CLASS A LIMITED PARTNER
Safran Associates Investment
Partnership II, A California
Limited Partnership 4% (181,046) (49,771) (3,140) (233,957)
INVESTOR LIMITED PARTNER
Boston Financial Qualified
Housing Tax Credits L.P.V., A
Massachusetts Limited
Partnership 95% 3,002,218 (1,182,070) (74,625) 1,745,523
SPECIAL LIMITED PARTNER
S L P 90, Inc. --- --- --- --- ---
------------------------------------------------------------
$2,776,364 $(1,244,284) $(78,553) $1,453,527
============================================================
</TABLE>
See accompanying auditors' report. The notes are an integral part of these
financial statements.
<PAGE>
STRATHERN PARK
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
<S> <C> <C>
INCOME
Gross possible rents $1,524,672
(Vacancies) (7,097)
Interest 11,370
Miscellaneous 34,321
---------------
TOTAL INCOME $1,563,266
EXPENSES (Note 4)
Administrative expense 128,724
Management fees 118,048
Utilities 114,579
Operating and maintenance expense 227,504
Taxes and insurance 167,311
Interest expense - Mortgage note payable 569,657
Interest expense - Notes payable 684,796
Depreciation and amortization 796,931
---------------
2,807,550
---------------
NET LOSS $(1,244,284)
===============
</TABLE>
See accompanying auditors' report. The notes are an integral part of financial
statements.
<PAGE>
STRATHERN PARK
STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss $(1,244,284)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation and amortization $796,931
Increases in -
Miscellaneous receivables (4,079)
Rent receivable (28,375)
Accrued interest payable 684,796
Accounts payable and accrued expenses 4,781
Deferred income 20,238
Decreases in -
Tenant security deposits 3,445
Security deposits (5,643)
Total Adjustments 1,472,094
-----------------
Net Cash Provided by Operating Activities 227,810
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in reserve for replacements (24,336)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on mortgage (52,868)
Interest payments on notes payable from residual receipts (52,368)
Distributions paid (78,553)
------------
Net Cash Used in Financing Activities (183,789)
-----------------
Net Increase in Cash and Cash Equivalents 19,685
Cash and cash equivalents at Janaury 1, 1996 195,930
-----------------
Cash and cash equivalents at December 31, 1996 $215,615
=================
SUPPLEMENTAL DISCLOSURE OF CASH FROM INFORMATION:
Cash paid during the year for interest $622,453
============
Cash paid during the year for taxes $800
============
</TABLE>
See accompanying auditors' report. The notes are an integral part of these
financial statements.
<PAGE>
STRATHERN PARK
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
Note 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICES Organization
Strathern Park (the partnership) was organized pursuant to a limited partnership
agreement dated March 28, 1989 as amended. Effective June 1, 1990, the
partnership agreement was amended with the admission of a new limited partner
who purchased a 95% limited partnership interest for a total capital
contribution of $5,963,067. On January 1, 1994 Lorne Park was merged into
Strathern Park. The combined partnerships constructed a 241 unit apartment
project (Lorne Park 72 unites, Strathern Park 169 units) located in Sun Valley,
California for tenants whose income is very low to moderate. The project is
regulated under the terms of certain of its loan agreements. Such agreements
contain certain restrictions concerning rental charges, the number of units
rented to tenants in the very low, low and moderate income levels and other
matters.
Use of Estimates in the Preparation of Financial Statements 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.
Significant Accounting Policies -
Method of Accounting - The partnership books are maintained and its financial
statements and tax returns are prepared on the accrual basis.
Cash Equivalents - For purposes of the statement of cash flows, the partnership
considers all highly liquid debt instruments purchased with a maturity date of
three months or less to be cash equivalents.
Rental Property - The partnership records property, equipment and improvements
at the cost of acquisition or construction. The cost of maintenance and repairs
is charged to operations as incurred; significant renewals and betterments are
capitalized. Depreciation is computed using the straight line method for
financial statement purposes and accelerated methods for tax purposes. Estimated
useful lives for financial statement purposes are as follows:
<TABLE>
<CAPTION>
<S> <C>
Classification Life
- ---------------
Buildings 27.5 Years
Equipment and furnishings 7 Years
</TABLE>
Amortization - amortization of syndication costs is computed using the
straight line method over a period of 40 years.
Note 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (Cont.)
Income Taxes - The project receives low-income tax credits provided under
Section 42 of the Internal Revenue Code. Also, no provision for income taxes has
been included since the income or loss of the partnership as well as the tax
credits are required to be reported by the respective partners on their separate
income tax returns.
Note 2 LONG TERM DEBT
<TABLE>
<CAPTION>
<S> <C>
Mortgage note payable, secured by First Deed of Trust, requiring monthly
payments of $51,913, including interest at 9.41% per annum, maturing February,
2022. $5,928,171
Note payable secured by Second Deed of Trust, payable to the Community
Redevelopment Agency of the City of Los Angeles with interest at 7% per annum.
Interest accrues from the date of issuance of the first certificate of occupancy
which is December 26, 1991. Unpaid principal together with all accrued and
unpaid interest are due and payable in full upon the maturity of the primary
permanent loan, but not later than 40 years from date of issuance. Principal and
interest payments may be made in annual installments from the residual receipts
of the project, as the term residual receipts is defined in the loan agreement.
The note was funded by a Housing Development Grant from the United States
Department of Housing and Urban Development. The terms of the Grant agreement
impose certain restrictions on the use of the Grant proceeds and operating
policies of the partnership. Accrued interest on this note at
December 31, 1996 amounted to $1,774,998. 5,179,105
Note payable secured by Third Deed of Trust, payable to the Community
Redevelopment Agency of the City of Los Angeles, with interest at 5% per annum.
Interest accrues from the date of issuance of the first certificate of occupancy
which is December 26, 1991. Unpaid principal together with all accrued and
unpaid interest are due and payable in full upon the maturity of the primary
permanent loan, but not later than 40 years from date of issuance. Principal and
interest payments may be made in annual installments from the residual receipts
of the project, as the term residual receipts is defined in the loan agreement.
Accrued interest on
this note at December 31, 1996 amounted to $1,556,241. 6,445,175
-----------------
$17,552,451
=================
</TABLE>
Note 2 LONG TERM DEBT (Contd.)
Maturities of long term debt as of December 31, 1996 for the succeeding five
years are as follows:
<TABLE>
<CAPTION>
Years ended December 31,
<S> <C>
1997 $59,816
1998 65,779
1999 72,337
2000 77,942
2001 87,318
Thereafter 17,189,259
-----------------
$17,552,451
=================
</TABLE>
Note 3 DISTRIBUTION TO PARTNERS
Pursuant to the terms of the partnership agreement, as amended, and the loan
agreement with the Community Redevelopment Agency of the City of Los Angeles,
distributions are payable only from residual receipts, as defined in the
agreements.
Distributions are apportioned as follows:
1) 40% to the Community Redevelopment Agency of the City of
Los Angeles (CRA)
2) The remaining 60% is allocated as follows:
a) The Investor Limited Partner (Boston) is to receive any cumulative
return ($60,000 annually) in arrears;
b) The next $63,158 is distributed 95% to Boston, 4% to the Class A
Limited Partner (SAIP II) and 1% to the General Partner (SAIP II);
c) Any additional cash is used to repay any partner advances to the
partnership;
d) The next $63,158 is distributed 5% to Boston, 94% to SAIP II
(Limited Partner) and 1% to SAIP II (General Partner);
e) Thereafter, cash is distributed 50% to Boston, 49% to SAIP II
(Limited Partner) and 1% to SAIP II (General Partner).
Note 4 RELATED PARTY TRANSACTIONS
There were no direct compensation payments to the partners during the year.
However, there were related party transactions which occurred which are set
forth below:
<TABLE>
<CAPTION>
(Income) Receivable
Expense (Payable)
Account for the At December
Name Description No. Year 31, 1996
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Thomas Safran and
Associates, Inc. Management fee 6320 118,048 (73)
===========================
</TABLE>
In addition, the project reimbursed the management company for allocated common
costs such as office supplies and health insurance. The aggregate total of such
reimbursements
was $17,341 for the year.
The general partner has a direct ownership interest in the management company
listed above.
Note 5 DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS
Cash and Short Term Investments -
The carrying amount approximates fair value because of the short maturity of
those investments.
Long Term Debt (First Deed of Trust) -
The project does not have the right to prepay this debt during the first ten
years of the term of this note. Accordingly, the carrying amount approximates
its fair value.
Long Term Debt (Second & Third Deed of Trust) -
The carrying amount approximates fair value because there is no ready market for
such debt, repayment/refinancing is severely restricted by the CRA and HUD.
<TABLE>
<CAPTION>
December 31, 1996
-----------------------------------
Carrying Fair
Amount Value
<S> <C> <C>
Cash and Short Term Investments $434,282 $434,282
Long Term Debt (First Deed of Trust) (5,928,171) (5,928,171)
Long Term Debt (Second & Third Deed of Trust) (11,624,280) (11,624,280)
</TABLE>
<PAGE>
STRATHERN PARK SCHEDULE I
BOSTON FINANCIAL QUALIFIED HOUSING Page 1 of 2
BALANCE SHEET FORMAT
DECEMBER 31, 1996
<TABLE>
<CAPTION>
ASSETS
CURRENT ASSETS
<S> <C> <C>
Petty cash 500
Cash in bank 215,115
Rent receivables 35,940
Miscellaneous receivables 2,642
Tenant security deposits 122,015
----------------
Total Current Assets 376,212
RESERVES AND DEPOSITS
Reserve for replacements 96,652
FIXED ASSETS
Land 5,889,320
Buildings 19,042,548
Equipment and furnishings 944,597
----------------
25,876,465
Less: accumulated depreciation (4,438,048)
----------------
Total Fixed Assets 21,438,417
OTHER ASSETS
Syndication fee (Net of accumulated amortization
of $94,252) 624,415
----------------
TOTAL ASSETS 22,535,696
================
</TABLE>
<PAGE>
STRATHERN PARK SCHEDULE I
BOSTON FINANCIAL QUALIFIED HOUSING Page 2 of 2
BALANCE SHEET FORMAT
DECEMBER 31, 1996
<TABLE>
<CAPTION>
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES
<S> <C> <C>
Accounts payable 37,750
Accrued interest payable - 1st mortgage 48,049
Tenant security deposit liability 107,497
----------------
Total Current Liabilities 193,296
MORTGAGE NOTE PAYABLE CURRENT PORTION
1st mortgage note payable current portion 59,816
LONG TERM LIABILITIES
Accrued interest payable - notes
2nd mortgage note payable 1,818,646
3rd mortgage note payable 1,497,538
Mortgage notes payable
1st mortgage note payable 5,868,355
2nd mortgage note payable 5,179,105
3rd mortgage note payable 6,445,175
Deferred income 20,238
----------------
Total Long Term Liabilities 20,829,057
OWNERS' EQUITY
Limited partners' equity 1,511,566
General partners' equity (58,039)
----------------
Total Owners' Equity 1,453,527
----------------
TOTAL LIABILITIES AND PARTNERS' EQUITY 22,535,696
================
</TABLE>
<PAGE>
STRATHERN PARK SCHEDULE II
BOSTON FINANCIAL QUALIFIED HOUSING - Page 1 of 4
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
REVENUE
<S> <C> <C>
Rent revenue
Apartments 1,465,438
Tenant assistance payments 46,529
Furniture and equipment ---
Stores and commercial 12,705
Garage and parking spaces ---
Flexible subsidy income ---
Miscellaneous ---
-------------
Total rent revenue 1,524,672
Vacancies
Apartments (7,097)
Stores and commercial ---
Garage and parking spaces ---
Miscellaneous ---
-------------
Total Vacancies (7,097)
---------------
Net Rental Revenue 1,517,575
Financial Revenue
Interest Income - operations 2,973
Interest Income - residual receipts ---
Interest income - reserve for replacements 3,835
Interest income - miscellaneous 4,562
-------------
Total Financial Revenue 11,370
Other Revenue
Laundry and vending 21,534
NSF and late charges 2,848
Damages and cleaning fees 2,168
Forfeited tenant security deposits 2,486
Other revenue 5,285
Non-cash revenue ---
-------------
Total Other Revenue 34,321
---------------
NET REVENUE 1,563,266
===============
</TABLE>
<PAGE>
STRATHERN PARK SCHEDULE II
BOSTON FINANCIAL QUALIFIED HOUSING - Page 2 of 4
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
EXPENSES
<S> <C> <C>
Administrative Expenses
Advertising 469
Other renting expense ---
Office salaries 6,815
Office supplies 48,699
Management fee 118,048
Manager or superintendent salary 47,125
Manager's rent free unit ---
Legal expenses (project) 3,183
Auditing expenses (project) 9,500
Bookkeeping fees/accounting services ---
Telephone and answering services 6,159
Bad debts 6,774
Miscellaneous administrative expenses ---
-------------
Total Administrative Expenses 246,772
Utilities Expenses
Fuel oil/coal ---
Electricity 37,754
Water 43,777
Gas 5,686
Sewer 27,362
-------------
Total Utilities Expenses 114,579
Operating & Maintenance
Janitor and cleaning payroll ---
Janitor and cleaning supplies 8,164
Janitor and cleaning contract ---
Exterminating payroll/contract 1,484
Exterminating supplies ---
Garbage and trash removal 12,035
Security payroll/contract 4,295
</TABLE>
<PAGE>
STRATHERN PARK SCHEDULE II
BOSTON FINANCIAL QUALIFIED HOUSING - Page 3 of 4
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
EXPENSES (Cont.)
<S> <C> <C>
Operating & Maintenance (Cont.)
Grounds payroll ---
Grounds supplies 3,481
Grounds contract 27,060
Repairs payroll 59,020
Repairs material 23,635
Repairs contract 73,340
Elevator maintenance/contract ---
Heating/cooling repairs and maintenance 403
Swimming pool maintenance/contract ---
Snow removal ---
Decorating payroll/contract 2,804
Decorating supplies 11,783
Other, gasoline ---
Miscellaneous operating and maintenance ---
-------------
Total Operating and Maintenance 227,504
Taxes and Insurance
Real estate taxes 116,658
Payroll taxes (FICA) 11,306
Miscellaneous taxes, licenses 765
Property and liability insurance 22,635
Fidelity bond insurance 149
Workmen's compensation 5,698
Health insurance and other benefits 10,100
Other insurance ---
Miscellaneous taxes and insurance ---
-------------
Total Taxes and Insurance 167,311
Interest on Mortgage Notes
Interest on 1st mortgage 569,657
</TABLE>
<PAGE>
STRATHERN PARK SCHEDULE II
BOSTON FINANCIAL QUALIFIED HOUSING - Page 4 of 4
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
EXPENSES (Cont.)
<S> <C> <C>
Other Financial Expenses
Amortization 17,967
Interest on notes payable (long term) 684,796
Mortgage insurance premium ---
Miscellaneous financial expenses ---
Non-cash expense ---
-------------
Total Financial Expenses 702,763
---------------
TOTAL EXPENSES BEFORE DEPRECIATION 2,028,586
---------------
PROFIT (LOSS) BEFORE DEPRECIATION (465,320)
Depreciation 778,964
---------------
OPERATING PROFIT (LOSS) (1,244,284)
Other Expenses Prior Period (Entity) ---
---------------
NET PROFIT (LOSS) (1,244,284)
===============
1st mortgage principal payment 52,868
2nd mortgage principal payment ---
3rd mortgage principal payment ---
---------------
Total mortgage principal payments 52,868
===============
Actual replacement reserve deposits 75,836
Replacement or painting reserve releases (51,500)
Cash subsidies ---
Capital improvements not expensed ---
Capital contribution or disbursement 78,553
</TABLE>
<PAGE>
STRATHERN PARK SCHEDULE III
COMPUTATION OF RESIDUAL RECEIPTS
DECEMBER 31, 1996
<TABLE>
<CAPTION>
<S> <C> <C>
Net income (loss) as of December 31, 1996 (1,244,284)
ADD:
Depreciation 778,964
Amortization 17,967
Community Redevelopment Agency loan interest 322,259
Housing Development Grant loan interest 362,537
Releases from reserve for replacements 51,500 1,533,227
---------------- ----------------
288,943
LESS:
Principal payments on mortgage (52,868)
Deposits to reserve for replacements (75,836)
Payments for capital expenditures --- (128,704)
---------------- ----------------
RESIDUAL RECEIPTS, as defined in the partnership agreement
160,239
================
</TABLE>
STRATHERN PARK
DECEMBER 31, 1995
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Partners
Strathern Park
Los Angeles, California
We have audited the accompanying balance sheet of Strathern Park (a California
limited partnership), 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.
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 Strathern Park as of December
31, 1995, and the results of its operations and its cash flows for the year then
ended in conformity with generally accepted accounting principles.
Our audit was made for the purpose of forming an opinion on the basic financial
statements taken as a whole. The additional information on Schedules I, II and
III is presented for the purposes of additional analysis and is not a required
part of the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements
and, in our opinion, is fairly stated in all material respects in relation to
the basic financial statements taken as a whole.
/s/NANAS, STERN, BIERS, NEINSTEIN AND CO.
January 23, 1996
<PAGE>
STRATHERN PARK
BALANCE SHEET
DECEMBER 31, 1995
<TABLE>
<CAPTION>
ASSETS
<S> <C> <C>
Cash (Note 5) $ 195,930
Receivables 6,128
Reserve for replacements (Note 5) 72,316
Tenant security deposits (Note 5) 125,460
Rental property - at cost (Note 2)
Land 5,889,320
Buildings 19,042,548
Equipment and furnishings 944,597
--------------
25,876,465
Less: accumulated depreciation (3,659,084) 22,217,381
--------------
Other assets
Syndication fee (Net of accumulated amortization
of $76,285) 642,382
--------------
TOTAL ASSETS $ 23,259,597
==============
LIABILITIES
Accounts payable and accrued expenses $ 81,018
Security deposits 113,140
Accrued interest payable (Note 2) 2,683,756
Long term debt (Notes 2 and 5) 17,605,319
--------------
TOTAL LIABILITIES 20,483,233
PARTNERS' EQUITY (Note 3) 2,776,364
--------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 23,259,597
==============
</TABLE>
See accompanying
auditor's report. The notes
are an integral part of these
financial statements.
<PAGE>
STRATHERN PARK
STATEMENT OF PARTNERS' EQUITY
YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
Profit Balance Net Distri- Balance
and Loss January Loss butions December
Percentage 1, 1995 for the year Paid 31, 1995
-------------- -------------- -------------- -------------- --------------
GENERAL PARTNER
<S> <C> <C> <C> <C> <C>
Safran Associates Investment
Partnership II, A California
Limited Partnership 1% $ (31,654) $ (12,958) $ (196) $ (44,808)
CLASS A LIMITED PARTNER
Safran Associates Investment
Partnership II, A California
Limited Partnership 4% (128,429) (51,833) (784) (181,046)
INVESTOR LIMITED PARTNER
Boston Financial Qualified
Housing Tax Credits L.P.V., A
Massachusetts Limited
Partnership 95% 4,251,870 (1,231,028) (18,624) 3,002,218
SPECIAL LIMITED PARTNER
S L P 90, Inc. --- --- --- --- ---
-------------- -------------- -------------- --------------
$ 4,091,787 $ (1,295,819) $ (19,604) $ 2,776,364
============== ============== ============== ==============
</TABLE>
See accompanying
auditor's report. The notes
are an integral part of these
financial statements.
<PAGE>
STRATHERN PARK
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
INCOME
<S> <C> <C>
Gross possible rents $ 1,495,927
(Vacancies) (8,769)
Interest 9,231
Miscellaneous 36,631
--------------
TOTAL INCOME $ 1,533,020
EXPENSES (Note 4)
Administrative expense 128,069
Management fees 120,662
Utilities 116,167
Operating and maintenance expense 240,409
Taxes and insurance 164,707
Interest expense - Mortgage note payable 571,330
Interest expense - Notes payable 684,796
Depreciation and amortization 802,699 2,828,839
-------------- --------------
NET LOSS $ (1,295,819)
==============
</TABLE>
See accompanying
auditor's report. The notes
are an integral part of these
financial statements.
<PAGE>
STRATHERN PARK
STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
CASH FLOWS FROM OPERATING ACTIVITIES
<S> <C> <C>
Net Loss $ (1,295,819)
Adjustments to reconcile net loss to net cash provided by operating
activities:
Depreciation and amortization $ 802,699
Increases in -
Accrued interest payable 684,796
Tenant security deposits - funded (7,565)
Tenant security deposits 3,621
Decreases in -
Interest receivable 1,028
Rent receivable 3,019
Accounts payable and accrued expenses (23,154)
------------
Total Adjustments 1,464,444
--------------
Net Cash Provided by Operating Activities 168,625
CASH FLOWS FROM INVESTING ACTIVITIES
Increase in reserve for replacements (9,533)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on mortgage (51,222)
Interest payments on notes payable from residual receipts (13,070)
Distributions paid (19,604)
------------
Net Cash Used in Financing Activities (83,896)
--------------
Net Increase in Cash and Cash Equivalents 75,196
Cash and cash equivalents at Janaury 1, 1995 120,734
--------------
Cash and cash equivalents at December 31, 1995 $ 195,930
==============
SUPPLEMENTAL DISCLOSURE OF CASH FROM INFORMATION:
Cash paid during the year for interest $ 584,801
============
Cash paid during the year for taxes $ 800
============
</TABLE>
See accompanying
auditor's report. The notes
are an integral part of these
financial statements.
<PAGE>
STRATHERN PARK
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
Note 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICES
Organization -
Strathern Park (the partnership) was organized pursuant to a
limited partnership agreement dated March 28, 1989 as amended.
Effective June 1, 1990, the partnership agreement was amended
with the admission of a new limited partner who purchased a
95% limited partnership interest for a total capital
contribution of $5,963,067. On January 1, 1994 Lorne Park was
merged into Strathern Park. The combined partnerships
constructed a 241 unit apartment project (Lorne Park 72
unites, Strathern Park 169 units) located in Sun Valley,
California for tenants whose income is very low to moderate.
The project is regulated under the terms of certain of its
loan agreements. Such agreements contain certain restrictions
concerning rental charges, the number of units rented to
tenants in the very low, low and moderate income levels and
other matters.
Use of Estimates in the Preparation of Financial Statements -
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.
Significant Accounting Policies -
Method of Accounting - The partnership books are maintained
and its financial statements and tax returns are prepared on
the accrual basis.
Cash Equivalents - For purposes of the statement of cash
flows, the partnership considers all highly liquid debt
instruments purchased with a maturity date of three months or
less to be cash equivalents.
Rental Property - The partnership records property, equipment
and improvements at the cost of acquisition or construction.
The cost of maintenance and repairs is charged to operations
as incurred; significant renewals and betterments are
capitalized. Depreciation is computed using the straight line
method for financial statement purposes and accelerated
methods for tax purposes. Estimated useful lives for financial
statement purposes are as follows:
Classification Life
---------------- --------------
Buildings 27.5 Years
Equipment and furnishings 7 Years
Amortization - amortization of syndication costs is computed
using the straight line method over a period of 40 years.
<PAGE>
STRATHERN PARK
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
<S> <C>
Note 1 ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICES (Cont.)
Income Taxes - The project receives low-income tax credits provided
under Section 42 of the Internal Revenue Code. Also, no provision
for income taxes has been included since the income or loss of the
partnership as well as the tax credits are required to be reported
by the respective partners on their separate income tax returns.
Note 2 LONG TERM DEBT
Mortgage note payable, secured by First Deed of Trust,
requiring monthly payments of $35,875, including interest
at 9.41% per annum, maturing February, 2022. $ 5,981,039
Note payable secured by Second Deed of Trust, payable to the
Community Redevelopment Agency of the City of Los Angeles with
interest at 7% per annum. Interest accrues from the date of
issuance of the first certificate of occupancy which is
December 26, 1991. Unpaid principal together with all accrued
and unpaid interest are due and payable in full upon the
maturity of the primary permanent loan, but not later than 40
years from date of issuance. Principal and interest payments
may be made in annual installments from the residual receipts
of the project, as the term residual receipts is defined in
the loan agreement. The note was funded by a Housing
Development Grant from the United States Department of Housing
and Urban Development. The terms of the Grant agreement impose
certain restrictions on the use of the Grant proceeds and
operating policies of the partnership. Accrued interest on
this note at
December 31, 1995 amounted to $1,456,109. 5,179,105
Note payable secured by Third Deed of Trust, payable to the
Community Redevelopment Agency of the City of Los Angeles,
with interest at 5% per annum. Interest accrues from the date
of issuance of the first certificate of occupancy which is
December 26, 1991. Unpaid principal together with all accrued
and unpaid interest are due and payable in full upon the
maturity of the primary permanent loan, but not later than 40
years from date of issuance. Principal and interest payments
may be made in annual installments from the residual receipts
of the project, as the term residual receipts is defined in
the loan agreement. Accrued interest on
this note at December 31, 1995 amounted to $1,227,647. 6,445,175
-------------------
$ 17,605,319
===================
</TABLE>
<PAGE>
STRATHERN PARK
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
Note 2 LONG TERM DEBT (Cont.)
Maturities of long term debt as of December 31, 1995 for the
succeeding five years are as follows:
Years ended December 31,
1996 $ 52,868
1997 59,816
1998 65,779
1999 72,337
2000 77,942
Thereafter 17,276,577
---------------
$ 17,605,319
===============
Note 3 DISTRIBUTION TO PARTNERS
Pursuant to the terms of the partnership agreement, as amended, and
the loan agreement with the Community Redevelopment Agency of the
City of Los Angeles, distributions are payable only from residual
receipts, as defined in the agreements.
Distributions are apportioned as follows:
1) 40% to the Community Redevelopment Agency of the City of
Los Angeles (CRA)
2) The remaining 60% is allocated as follows:
a) The Investor Limited Partner (Boston) is to
receive any cumulative return ($60,000
annually) in arrears;
b) The next $63,158 is distributed 95% to
Boston, 4% to the Class A Limited Partner
(SAIP II) and 1% to the General Partner
(SAIP II);
c) Any additional cash is used to repay any
partner advances to the partnership;
d) The next $63,158 is distributed 5% to
Boston, 94% to SAIP II (Limited Partner)
and 1% to SAIP II (General Partner);
e) Thereafter, cash is distributed 50% to
Boston, 49% to SAIP II (Limited Partner)
and 1% to SAIP II (General Partner).
<PAGE>
STRATHERN PARK
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
Note 4 RELATED PARTY TRANSACTIONS
There were no direct compensation payments to the partners during
the year. However, there were related party transactions which
occurred which are set forth below:
(Income) Receivable
Expense (Payable)
Account for the At December
Name Description No. Year 31, 1995
--------------------------- -------------------- --------------- --------------- -------------------
<S> <C> <C> <C> <C> <C>
Thomas Safran and
Associates, Inc. Management fee 6320 120,662 (8,882)
=============== ===================
</TABLE>
In addition, the project reimbursed the management company for
allocated common costs such as office supplies, manager's salary,
administrative assistant's salary, payroll taxes and health
insurance. The aggregate total of such reimbursements was $88,752
for the year.
The general partner has a direct ownership interest in the
management company listed above.
Note 5 DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS
Cash and Short Term Investments -
The carrying amount approximates fair value because of the
short maturity of those investments.
Long Term Debt (First Deed of Trust) -
The project does not have the right to prepay this debt during
the first ten years of the term of this note. Accordingly, the
carrying amount approximates its fair value.
Long Term Debt (Second & Third Deed of Trust) -
The carrying amount approximates fair value because there is
no ready market for such debt, repayment/refinancing is
severely restricted by the CRA and HUD.
<TABLE>
<CAPTION>
December 31, 1995
------------------------------------
Carrying Fair
Amount Value
<S> <C> <C>
Cash and Short Term Investments $ 393,706 $ 393,706
Long Term Debt (First Deed of Trust) (5,981,039) (5,981,039)
Long Term Debt (Second & Third Deed of Trust) (11,624,280) (11,624,280)
</TABLE>
<PAGE>
STRATHERN PARK
BOSTON FINANCIAL QUALIFIED HOUSING
BALANCE SHEET FORMAT
DECEMBER 31, 1995
<PAGE>
STRATHERN PARK
BOSTON FINANCIAL QUALIFIED HOUSING
BALANCE SHEET FORMAT
DECEMBER 31, 1995
<TABLE>
<CAPTION>
ASSETS
<S> <C> <C>
CURRENT ASSETS
Cash in bank $ 195,930
Rent receivables 5,794
Accrued receivables 334
Tenant security deposits 125,460
--------------
Total Current Assets $ 327,518
RESERVES AND DEPOSITS
Reserve for replacements 72,316
FIXED ASSETS
Land 5,889,320
Buildings 19,042,548
Equipment and furnishings 944,597
--------------
25,876,465
Less: accumulated depreciation (3,659,084)
--------------
Total Fixed Assets 22,217,381
OTHER ASSETS
Syndication fee (Net of accumulated amortization
of $76,285) 642,382
--------------
TOTAL ASSETS $ 23,259,597
==============
</TABLE>
<PAGE>
SCHEDULE I
STRATHERN PARK
BOSTON FINANCIAL QUALIFIED HOUSING
BALANCE SHEET FORMAT
DECEMBER 31, 1995
<TABLE>
<CAPTION>
LIABILITIES AND PARTNERS' EQUITY
<S> <C> <C>
CURRENT LIABILITIES
Accounts payable $ 32,540
Accrued interest payable - 1st mortgage 48,478
Tenant security deposit liability 113,140
--------------
Total Current Liabilities $ 194,158
MORTGAGE NOTE PAYABLE CURRENT PORTION
1st mortgage note payable current portion 52,868
LONG TERM LIABILITIES
Accrued interest payable - notes
2nd mortgage note payable 1,456,109
3rd mortgage note payable 1,227,647
Mortgage notes payable
1st mortgage note payable 5,928,171
2nd mortgage note payable 5,179,105
3rd mortgage note payable 6,445,175
--------------
Total Long Term Liabailities 20,236,207
OWNERS' EQUITY
Limited partners' equity 2,821,172
General partners' equity (44,808)
--------------
Total Owners' Equity 2,776,364
--------------
TOTAL LIABILITIES AND PARTNERS' EQUITY $ 23,259,597
==============
</TABLE>
<PAGE>
SCHEDULE II
STRATHERN PARK
BOSTON FINANCIAL QUALIFIED HOUSING -
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
REVENUE
Rent revenue
Apartments $ 1,440,031
Tenant assistance payments 55,896
Furniture and equipment ---
Stores and commercial ---
Garage and parking spaces ---
Flexible subsidy income ---
Miscellaneous ---
-------------
Total rent revenue $ 1,495,927
Vacancies
Apartments (8,769)
Stores and commercial ---
Garage and parking spaces ---
Miscellaneous ---
-------------
Total Vacancies (8,769)
--------------
Net Rental Revenue 1,487,158
Financial Revenue
Interest Income - operations 1,992
Interest Income - residual receipts ---
Interest income - reserve for replacements 3,848
Interest income - miscellaneous 3,391
-------------
Total Financial Revenue 9,231
Other Revenue
Laundry and vending 24,233
NSF and late charges 4,096
Damages and cleaning fees 2,610
Forfeited tenant security deposits ---
Other revenue 5,692
Non-cash revenue ---
-------------
Total Other Revenue 36,631
--------------
NET REVENUE $ 1,533,020
==============
</TABLE>
<PAGE>
SCHEDULE II
STRATHERN PARK
BOSTON FINANCIAL QUALIFIED HOUSING -
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
EXPENSES
Administrative Expenses
Advertising $ ---
Other renting expense ---
Office salaries 13,526
Office supplies 45,223
Management fee 120,662
Manager or superintendent salary 44,473
Manager's rent free unit ---
Legal expenses (project) 5,131
Auditing expenses (project) 9,250
Bookkeeping fees/accounting services ---
Telephone and answering services 5,532
Bad debts 4,934
Miscellaneous administrative expenses ---
--------------
Total Administrative Expenses $ 248,731
Utilities Expenses
Fuel oil/coal ---
Electricity 31,594
Water 45,958
Gas 6,909
Sewer 31,706
--------------
Total Utilities Expenses 116,167
Operating & Maintenance
Janitor and cleaning payroll ---
Janitor and cleaning supplies 8,231
Janitor and cleaning contract ---
Exterminating payroll/contract 4,216
Exterminating supplies ---
Garbage and trash removal 15,067
Security payroll/contract 1,917
</TABLE>
<PAGE>
SCHEDULE II
STRATHERN PARK
BOSTON FINANCIAL QUALIFIED HOUSING -
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
EXPENSES (Cont.)
Operating & Maintenance (Cont.)
Grounds payroll $ 9,523
Grounds supplies 1,323
Grounds contract 37,241
Repairs payroll 43,951
Repairs material 67,376
Repairs contract 30,654
Elevator maintenance/contract ---
Heating/cooling repairs and maintenance 475
Swimming pool maintenance/contract ---
Snow removal ---
Decorating payroll/contract 6,880
Decorating supplies 13,555
Other, gasoline ---
Miscellaneous operating and maintenance ---
--------------
Total Operating and Maintenance $ 240,409
Taxes and Insurance
Real estate taxes 112,369
Payroll taxes (FICA) 9,271
Miscellaneous taxes, licenses 800
Property and liability insurance 26,512
Fidelity bond insurance ---
Workmen's compensation 4,866
Health insurance and other benefits 10,889
Other insurance ---
Miscellaneous taxes and insurance ---
--------------
Total Taxes and Insurance 164,707
Interest on Mortgage Notes
Interest on 1st mortgage 571,330
</TABLE>
<PAGE>
SCHEDULE II
STRATHERN PARK
BOSTON FINANCIAL QUALIFIED HOUSING -
STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
EXPENSES (Cont.)
Other Financial Expenses
Amortization $ 17,967
Interest on notes payable (long term) 684,796
Mortgage insurance premium ---
Miscellaneous financial expenses ---
Non-cash expense ---
--------------
Total Financial Expenses $ 702,763
--------------
TOTAL EXPENSES BEFORE DEPRECIATION 2,044,107
--------------
PROFIT (LOSS) BEFORE DEPRECIATION (511,087)
Depreciation 784,732
--------------
OPERATING PROFIT (LOSS) (1,295,819)
Other Expenses Prior Period (Entity) ---
--------------
NET PROFIT (LOSS) $ (1,295,819)
==============
1st mortgage principal payment $ 51,222
2nd mortgage principal payment ---
3rd mortgage principal payment ---
--------------
Total mortgage principal payments $ 51,222
==============
Actual replacement reserve deposits $ 79,732
Replacement or painting reserve releases $ (70,199)
Cash subsidies ---
Capital improvements not expensed ---
Capital contribution or disbursement $ 19,604
</TABLE>
<PAGE>
SCHEDULE III
STRATHERN PARK
COMPUTATION OF RESIDUAL RECEIPTS
DECEMBER 31, 1995
<TABLE>
<CAPTION>
<S> <C> <C>
Net income (loss) as of December 31, 1995 $ (1,295,819)
ADD: Depreciation $ 784,732
Amortization 17,967
Community Redevelopment Agency loan interest 322,259
Housing Development Grant loan interest 362,537
Releases from reserve for replacements 70,199 1,557,694
-------------- ---------------
261,875
LESS: Principal payments on mortgage (51,222)
Deposits to reserve for replacements (79,732)
Payments for capital expenditures --- (130,954)
-------------- ---------------
RESIDUAL RECEIPTS, as defined in the partnership agreement
at December 31, 1995 $ 130,921
===============
</TABLE>
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> MAR-31-1998
<CASH> 239,932
<SECURITIES> 3,064,717
<RECEIVABLES> 000
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 000
<PP&E> 000
<DEPRECIATION> 000
<TOTAL-ASSETS> 28,905,668<F1>
<CURRENT-LIABILITIES> 000
<BONDS> 000
<COMMON> 000
000
000
<OTHER-SE> 28,059,181
<TOTAL-LIABILITY-AND-EQUITY> 28,905,668<F2>
<SALES> 000
<TOTAL-REVENUES> 321,439<F3>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 1,320,033<F4>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 64,148
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> 5,838,302<F5>
<EPS-PRIMARY> (83.85)
<EPS-DILUTED> 000
<FN>
<F1>Included in total assets is mortgagee escrow deposits of $382, tenant
security deposit escrow of $3,017, investments in Local Limited Partnerships of
$24,775,767, rental property of $778,924, a replacement reserve escrow of $2,888
and other assets of $40,041. <F2>Included in total liabilities and equity is
deferred revenue of $139,461, accounts payable to affiliates of $79,210,
accounts payable and accrued expenses of $72,983, mortgage note payable of
$707,659, tenant security deposits payable of $3,017 and minority interest in
Local Limited Partnership of $140,554. <F3>Total revenue includes investment of
$179,999, rental of $98,473 and other revenue of $42,967. <F4>Included in other
expenses are general and administrative of $237,092, asset management fees of
$238,087, provision for valuation investment in Local Limited Partnership of
$590,197, rental operations of $24,105, provision for valuation of rental
property of $160,000, property management fee of $5,962, depreciation of $35,299
and amortization of $29,291. <F5>Net Loss includes minority interest in losses
of Local Limited Partnership of $1,900, and equity in losses of Local Limited
Partnerships of $4,777,460. </FN>
</TABLE>
