BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIP
10-Q, 2000-11-20
OPERATORS OF APARTMENT BUILDINGS
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FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

(X)   QUARTERLY REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934.

      For the quarterly period ended September 30, 2000

                                              or

( )   TRANSITION REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934

      For the transition period from _______ to _______
Commission file number        0-19443

BOSTON CAPITAL TAX CREDIT FUND II LIMITIED PARTNERSHIP
(Exact name of registrant as specified in its charter)

Delaware

04-3066791

(State or other jurisdiction

(I.R.S. Employer

of incorporation or organization)

Identification No.)

 

One Boston Place, Suite 2100, Boston, Massachusetts  02108
(Address of principal executive offices)           (Zip Code)

Registrants telephone number, including area code (617)624-8900

(Former name, former address and former fiscal year, if changed since last report)

      Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceeding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

X

  

No

_

 

 

 

 

BOSTON CAPITAL TAX CREDIT FUND II LIMITED PARTNERSHIP

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED September 30, 2000

TABLE OF CONTENTS

FOR THE QUARTER ENDED SEPTEMBER 30, 2000 *

BALANCE SHEETS *

Series 7 *

Series 9 *

Series 10 *

Series 11 *

Series 12 *

Series 14 *

STATEMENTS OF OPERATIONS *

Three Months Ended SEPTEMBER 30, *

Series 7 *

Series 9 *

Series 10 *

Series 11 *

Series 12 *

Series 14 *

STATEMENTS OF CHANGES IN PARTNERS CAPITAL 16

Series 7 17

Series 9 17

Series 10 18

Series 11 18

Series 12 19

Series 14 19

STATEMENTS OF CASH FLOWS 20

THREE Months Ended SEPTEMBER 30, 20

Series 7 *

Series 9 24

Series 10 26

Series 11 28

Series 12 *

Series 14 *

NOTES TO FINANCIAL STATEMENTS *

NOTE A - ORGANIZATION *

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES *

Investment Securities *

Cost

NOTE C - RELATED PARTY TRANSACTIONS 34

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS 35

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS 37

Series 7 37

Series 9 38

Series 10 39

Series 11 40

Series 12 *

Series 14 *

Liquidity 54

Capital Resources 54

Results of Operations 55

PART II - OTHER INFORMATION 60

SIGNATURES 61

 

Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS

 

 

September 30,

2000

(Unaudited)

March 31,

2000

(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)

$ 43,803,469

$ 46,636,873
     

OTHER ASSETS

    

Cash and cash equivalents

1,408,746

1,512,272
     

Notes receivable

543,584

543,584

Deferred acquisition costs (Note B)

 

 

1,068,356

 

 

1,092,637

Other assets

854,990

799,453
 

$47,679,145

$50,584,819
     

LIABILITIES

    
     

Accounts payable

 

$      1,380

 

$      1,380

Accounts payable affiliates (Note C)

20,743,636

19,467,919

Capital contributions payable (Note D)

261,103

261,103
 

21,006,119

19,730,402
     

PARTNERS' CAPITAL

    
     

Limited Partners

  

Units of limited partnership

Interest, $10 stated value per BAC;

20,000,000 authorized BACs;

18,679,738 issued and outstanding

 

 

 

 

 

 

28,023,009

 

 

 

 

 

32,162,586

General Partner

(1,349,983)

(1,308,169)
 

26,673,026

30,854,417
 

$47,679,145

$50,584,819

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS

Series 7

 

 

September 30,
2000
(Unaudited)

March 31,
2000
(Audited)

ASSETS

 

 

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

 

$604,512

 

$705,120
     

OTHER ASSETS

    

Cash and cash equivalents

6,270

   4,929
     

Notes receivable

-

-

Deferred acquisition costs (Note B)

 

 

-

 

 

-

Other assets

60,604

57,517
 

$671,386

$767,566
     

LIABILITIES

    
     

Accounts payable
  

 

$      -

 

$       -

Accounts payable affiliates (Note C)

1,228,539

1,155,639

Capital contributions payable (Note D)

-

-
 

1,228,539

1,155,639
     

PARTNERS' CAPITAL

    
     

Limited Partners
  

Units of limited partnership
interest, $10 stated value per
   BAC; 20,000,000 authorized BACs;
   1,036,100 issued and outstanding

 

 

 

 

 

(461,655)

 

 

 

 

 

(294,266)

General Partner

(95,498)

(93,807)
 

(557,153)

(388,073)
 

$671,386

$767,566







The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS

Series 9



September 30,
2000
(Unaudited)

March 31,
2000
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (Note D)

 

$6,948,146

 

$7,491,734
     

OTHER ASSETS

    

Cash and cash equivalents

341,756

   335,866
     

Notes receivable

-

-

Deferred acquisition costs (Note B)

 

 

19,138

 

 

19,572

Other assets

204,874

204,244
 

$7,513,914

$8,051,416
     

LIABILITIES

    
     

Accounts payable

 

$         -

 

$         -

Accounts payable affiliates (Note C)

4,896,625

4,608,729

Capital contributions payable (Note D)

-

-
 

4,896,625

4,608,729
     

PARTNERS' CAPITAL

    

Limited Partners
  

Units of limited partnership    
   Interest, $10 stated value per
   BAC; 20,000,000 authorized BACs;
   4,178,029 issued and outstanding

 

 

 

 

 

2,951,456

  

 

 

 

 

 

3,768,600

General Partner

(334,167)

(325,913)

 

2,617,289

3,442,687
 

$7,513,914

$8,051,416




The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS

Series 10



September 30,
2000
(Unaudited)

March 31,
2000
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (Note D)

 

$6,591,693

 

$6,885,117
     

OTHER ASSETS

    

Cash and cash equivalents

113,261

   121,866
   

Notes receivable

-

-

Deferred acquisition costs (Note B)

 

 

75,710

 

 

77,431

Other assets

40,091

42,154
 

$6,820,755

$7,126,568
     

LIABILITIES

    
     

Accounts payable

 

$     -

 

$         -

Accounts payable affiliates (Note C)

3,228,252

3,050,496

Capital contributions payable (Note D)

-

-
 

3,228,252

3,050,496
     

PARTNERS' CAPITAL

    
     

Limited Partners
  
Units of limited partnership    
   Interest, $10 stated value per
   BAC; 20,000,000 authorized BACs;
   2,428,925 issued and outstanding

 

 

 

 

 

3,767,391

 

 

 

 

 

4,246,124

General Partner

(174,888)

(170,052)
 

3,592,503

4,076,072
 

$6,820,755

$7,126,568






The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS

Series 11



September 30,
2000
(Unaudited)

March 31,
2000
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING  

   PARTNERSHIPS (NOTE D)

 

$ 7,653,981

 

$ 8,097,883
     

OTHER ASSETS

    

Cash and cash equivalents

374,403

  389,019
     

Notes receivable

-

-

Deferred acquisition costs (Note B)

 

 

38,374

 

 

39,247

Other assets

65,533

68,870
 

$8,132,291

$8,595,019
     

LIABILITIES

    
     

Accounts payable


$          -

 

$          -

Accounts payable affiliates (Note C)

2,440,354

2,277,513

Capital contributions payable (Note D)

22,528

22,528
 

2,462,882

2,300,041
     

PARTNERS' CAPITAL

    
     

Limited Partners
  
Units of limited partnership    
   Interest, $10 stated value per
   BAC; 20,000,000 authorized BACs;
   2,489,599 issued and outstanding

 

 

 

 

 

5,827,400

 

 

 

 

 

6,446,713

General Partner

(157,991)

(151,735)
 

5,669,409

6,294,978
 

$8,132,291

$8,595,019





The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS

Series 12



September 30,
2000
(Unaudited)

March 31,
2000
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (NOTE D)    

 

$ 7,738,006

 

$ 8,296,388
     

OTHER ASSETS

    

Cash and cash equivalents

46,459

  68,437
 

 

Notes receivable

-

-

Deferred acquisition costs (Note B)

 

 

292,970

 

 

299,628

Other assets

105,927

105,927
 

$8,183,362

$8,770,380
     

LIABILITIES

    
     

Accounts payable

 

$     -

 

$      -

Accounts payable affiliates (Note C)

3,064,113

2,868,059

Capital contributions payable (Note D)

11,405

11,405
 

3,075,518

2,879,464
     

PARTNERS' CAPITAL

    
     

Limited Partners
  
   Units of limited partnership    
   Interest, $10 stated value per
   BAC; 20,000,000 authorized BACs;
   2,972,795 issued and outstanding

 

 

 

 

 

5,314,025

 

 

 

 

 

6,089,266

General Partner

(206,181)

(198,350)
 

5,107,844

5,890,916
 

$8,183,362

$8,770,380






The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS

Series 14



September 30,
2000
(Unaudited)

March 31,
2000
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (NOTE D)    

 

$14,267,131

 

$ 15,160,631
     

OTHER ASSETS

    

Cash and cash equivalents

526,597

  592,155
     

Notes receivable

543,584

543,584

Deferred acquisition costs (Note B)

 

 

642,164

 

 

656,759

Other assets

377,961

320,741
 

$16,357,437

$17,273,870
     

LIABILITIES

    
     

Accounts payable

 

$     1,380

 

$      1,380

Accounts payable affiliates (Note C)

5,885,753

5,507,483

Capital contributions payable (Note D)

227,170

227,170
 

6,114,303

5,736,033
     

PARTNERS' CAPITAL

    
     

Limited Partners
  
   Units of limited partnership    
   Interest, $10 stated value per
   BAC; 20,000,000 authorized BACs;
   5,574,290 issued and outstanding

 

 

 

 

 

10,624,393

 

 

 

 

 

11,906,149

General Partner

(381,259)

(368,312)
 

10,243,134

11,537,837
 

$16,357,437

$17,273,870






The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

 


2000


1999
     

Income

    

  Interest income

$     13,112

$     14,169

  Other income

      -

      16,650
 

13,112

30,819

Share of loss from Operating
  Partnerships(Note D)

(1,093,345)

(1,423,204)
     

Expenses

    

  

    

  Fund management fee (Note C)

615,801

586,884

  Amortization

12,139

12,139

  General and administrative expenses

     154,076

     201,233

  

   782,016

   800,256
     

  NET LOSS

$(1,862,249)

$(2,192,641)
     

Net loss allocated to limited partners

$(1,843,627)

$(2,170,715)
     

Net loss allocated general partner

$   (18,622)

$   (21,926
     

Net loss per BAC

$      (.59)

$      (.69)
     






















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended September 30,
(Unaudited)

Series 7


2000


1999
     

Income

    

  Interest income

$     20

$   47

Other income

-

-

20

47

Share of loss from Operating
  Partnerships(Note D)

(50,914)

(53,170)
     

Expenses

    

  

    

  Fund management fee (Note C)   

28,287

25,287

  Amortization

-

-

  General and administrative expenses

     8,880

    12,755

  

   37,167

   38,042
     

  NET LOSS

$ (88,061)

$ (91,165)
     

Net loss allocated to limited partners

$ (87,180)

$ (90,253)
     

Net loss allocated general partner

$   (881)

$    (912)
     

Net loss per BAC

$     .08)

$    (.09)
     



















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended September 30,
(Unaudited)

Series 9


2000


1999
     

Income

    

  Interest income

$    2,810

$    2,363

  Other income

     -

     8,700
 

       2,810

11,063

Share of loss from Operating
  Partnerships(Note D)

 (245,687)

(327,261)
     

Expenses

    

  

    

  Fund management fee (Note C)   

140,446

139,170

  Amortization

217

     217

  General and administrative expenses

    22,686

    34,424

  

   163,349

   173,811
     

  NET LOSS

$ (406,226)

$  (490,009)
     

Net loss allocated to limited partners

$ (402,164)

$  (485,109)
     

Net loss allocated general partner

$   (4,062)

$   (4,900)
     

Net loss per BAC

$     (.10)

$     (.12)
     



















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended September 30,
(Unaudited)

Series 10


2000


1999
     

Income

    

  Interest income

$     1,370

$   1,397

  Other income

      -

     7,800
 

1,370

9,197

Share of loss from Operating
  Partnerships(Note D)

(89,466)

(123,703)
     

Expenses

    

  

    

  Fund management fee (Note C)   

81,694

83,242

  Amortization

860

860

  General and administrative expenses

  20,663

 30,621

  

103,217

114,723
     

  NET LOSS

$ (191,313)

$ (229,229)
     

Net loss allocated to limited partners

$ (189,400)

$ (226,937)
     

Net loss allocated general partner

$   (1,913)

$   (7,630)
     

Net loss per BAC

$     (.08)

$     (.15)
     




















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended September 30,
(Unaudited)

Series 11


2000


1999
     

Income

    

  Interest Income

$     2,929

$    3,396

 

-

-
 

2,929

3,396

Share of loss from Operating
  Partnerships(Note D)

(198,643)

 (285,381)
     

Expenses

    

  

    

  Fund management fee (Note C)   

81,420

80,670

  Amortization

436

436

  General and administrative expenses

    20,313

    29,354

  

    102,169

   110,460

     

  NET LOSS

$ (297,883)

$ (392,445)
     

Net loss allocated to limited partners

$ (294,904)

$ (388,521)
     

Net loss allocated general partner

$   (2,979)

$   (3,924)
     

Net loss per BAC

$     (.12)

$     (.16)
     



















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended September 30,
(Unaudited)

Series 12


2000


1999
     

Income

    

  Interest income

$      376

$   312

  Other income

         -

150

 

376

462

Share of loss from Operating
  Partnerships(Note D)

  (212,014)

 (214,428)
     

Expenses

    

  

    

  Fund management fee (Note C)    

95,817

93,817

  Amortization

3,329

3,329

  General and administrative expenses

     29,514

    40,246

  

    128,660

137,392
     

  NET LOSS

$  (340,298)

$ (351,358)
     

Net loss allocated to limited partners

$  (336,895)

$ (347,844)
     

Net loss allocated general partner

$    (3,403)

$   (3,514)

Net loss per BAC

$      (.11)

$     (.12)
     




















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended September 30,
(Unaudited)

Series 14


2000


1999
     

Income

    

  Interest income

$     5,607

$   6,654

  Other income

       -

-

 

5,607

6,654

Share of loss from Operating
  Partnerships(Note D)

  (296,621)

 (419,261)
     

Expenses

    

  

    

  Fund management fee (Note C)   

188,137

164,698

  Amortization

7,297

7,297

  General and administrative expenses

     52,020

    53,833

  

    247,454

225,828
     

  NET LOSS

$  (538,468)

$ (638,435)
     

Net loss allocated to limited partners

$  (533,083)

$ (632,051)
     

Net loss allocated general partner

$    (5,385)

$   (6,384)

Net loss per BAC

$      (.10)

$     (.11)
     




















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)


2000


1999
     

Income

    

  Interest income

$ 25,936

$   29,826

  Other income

3,613

20,390

 

29,549

50,216

Share of loss from Operating
  Partnerships(Note D)

(2,824,440)

3,422,713
     

Expenses

    

  

  Fund management fee (Note C)

1,144,322

1,143,986

  Amortization

24,281

24,281

  General and administrative expenses

217,897

     269,419

  

1,386,500

1,437,686
     

  NET LOSS

$ 4,181,391

$ (4,810,183)
     

Net loss allocated to limited partners

$ 4,139,577

$ (4,762,081)
     

Net loss allocated general partner

$ 41,814

$    (48,102)

Net loss per BAC

$ (1.31)

$      (1.45)
     




















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)

Series 7


2000


1999
     

Income

    

  Interest income

$ 60

$   96

  Other income

       -

-

 

60

96

Share of loss from Operating
  Partnerships(Note D)

(100,608)

  130,501
     

Expenses

    

  

  

  Fund management fee (Note C)   

53,574

53,574

  Amortization

-

-

  General and administrative expenses

14,958

    15,247

  

68,532

68,821
     

  NET LOSS

$ (169,080)

$ (199,226)
     

Net loss allocated to limited partners

$ (167,389)

$ (197,234)
     

Net loss allocated general partner

$ (1,691)

$ (1,992)

Net loss per BAC

$ (.16)

$    (.19)
     



















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)

Series 9


2000


1999
     

Income

    

  Interest income

$ 5,666

$   6,127

  Other income

2,329

11,190

 

7,995

17,317

Share of loss from Operating
  Partnerships(Note D)

(540,537)

  (712,009)
     

Expenses

    

  

  

  Fund management fee (Note C)   

260,006

267,000

  Amortization

435

435

  General and administrative expenses

32,415

      46,104

  

292,856

313,359
     

  NET LOSS

$ (825,398)

$ (1,008,231)
     

Net loss allocated to limited partners

$ (817,144)

$  (998,149)
     

Net loss allocated general partner

$ (8,254)

$  (10,082)

Net loss per BAC

$ (.20)

$      (.24)
     



















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)

Series 10


2000


1999
     

Income

    

  Interest income

$ 2,640

$    2,501

  Other income

-

7,950

 

2,640

10,451

Share of loss from Operating
  Partnerships(Note D)

(293,072)

 (214,962)
     

Expenses

    

  

    

  Fund management fee (Note C)   

163,229

168,620

  Amortization

1,721

1,721

  General and administrative expenses

28,187

    38,201

  

193,137

208,542
     

  NET LOSS

$(483,569)

$ (413,053)
     

Net loss allocated to limited partners

$(478,733)

$ (408,922)
     

Net loss allocated general partner

$ (4,836)

$   (4,131)

Net loss per BAC

$ (.20)

$     (.17)
     



















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)

Series 11


2000


1999
     

Income

    

  Interest income

$ 5,716

$  6,793

  Other income

-

916

 

5,716

7,709

Share of loss from Operating
  Partnerships(Note D)

(443,904)

  (506,121)
     

Expenses

    

  

  

  Fund management fee (Note C)    

159,540

156,000

  Amortization

872

872

  General and administrative expenses

26,969

     35,170

  

187,381

192,042
     

  NET LOSS

$ (625,569)

$ (690,454,)
     

Net loss allocated to limited partners

$ (619,313)

$  (683,549)
     

Net loss allocated general partner

$ (6,256)

$    (6,905)

Net loss per BAC

$ (.25)

$     (.28)
     



















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)

Series 12


2000


1999
     

Income

    

  Interest income

$   775

$   773

  Other income

-

300

 

775

1,073

Share of loss from Operating
  Partnerships(Note D)

(557,659)

 (528,259)
     

Expenses

    

  

    

  Fund management fee (Note C)    

172,909

182,019

  Amortization

6,658

6,658

  General and administrative expenses

46,621

    47,965

  

226,188

236,642
     

  NET LOSS

$ (783,072)

$ (763,828)
     

Net loss allocated to limited partners

$ (775,241)

$ (756,190)
     

Net loss allocated general partner

$ (7,831)

$   (7,638)

Net loss per BAC

$ (.26)

$    (.26)
     




















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)

Series 14


2000


1999
     

Income

    

  Interest income

$   11,079

$   13,536

  Other income

1,284

34

 

12,363

13,570

Share of loss from Operating
  Partnerships(Note D)

(888,660)

(1,330,861)
     

Expenses

    

  

    

  Fund management fee (Note C)    

335,064

316,773

  Amortization

14,595

14,595

  General and administrative expenses

68,747

    86,732

  

418,406

418,100
     

  NET LOSS

$(1,294,703)

$(1,735,391)
     

Net loss allocated to limited partners

$(1,281,756)

$(1,718,037)
     

Net loss allocated general partner

$ (12,947)

$   (17,354)

Net loss per BAC

$      (.23)

$      (.31)
     




















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Six Months Ended September 30,
(Unaudited)

 





Assignees



General
Partner





Total
       

Partners' capital
(deficit)
  April 1, 2000



$ 32,162,586


$ (1,308,169)



$ 30,854,417

    

      
       

Net income (loss)

(4,139,577)

(41,814)

(4,181,391)
       

Partners' capital
(deficit),
  September 30, 2000



$ 28,023,009



$ (1,349,983)



$ 26,673,026
       
































The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL


Six Months Ended September 30,
(Unaudited)

 

Assignees

General
Partner

Total

Series 7

      

Partners' capital
(deficit)
  April 1, 2000



$ (294,266)



$ (93,807)



$ (388,073)

    

      
       

Net income (loss)

(167,389)

   (1,691)

(169,080)
       

Partners' capital
(deficit)
  September 30, 2000



$ (461,655)



$  (95,498)



$ (557,153)
       
       

Series 9

      

Partners' capital
(deficit)
  April 1, 2000



$ 3,768,600



$ (325,913)



$ 3,442,687
       
       

Net income (loss)

(817,144)

(8,254)

(825,398)
       

Partners' capital
(deficit)
  September 30, 2000



$ 2,951,456



$ (334,167)



$ 2,617,289
       






















The accompanying notes are an integral part of these statements.

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL


Six Months Ended September 30,
(Unaudited)

 

Assignees

General
Partner

Total

Series 10

      

Partners' capital
(deficit)
  April 1, 2000



$ 4,246,124



$ (170,052)



$ 4,076,072

    

      
       

Net income (loss)

(478,733)

   (4,836)

(483,569)
       

Partners' capital
(deficit)
  September 30, 2000



$ 3,767,391



$ (174,888)



$ 3,592,503
       
       

Series 11

      

Partners' capital
(deficit)
  April 1, 2000



$ 6,446,713



$ (151,735)



$ 6,294,978
       
       

Net income (loss)

(619,313)

   (6,256)

(625,569)
       

Partners' capital
(deficit)
  September 30, 2000



$ 5,827,400



$ (157,991)



$ 5,669,409
       






















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Six Months Ended September 30,
(Unaudited)

 

Assignees

General
Partner

Total

Series 12

      

Partners' capital
(deficit)
  April 1, 2000



$ 6,089,266



$  (198,350)



$ 5,890,916

    

      
       

Net income (loss)

(775,241)

  (7,831)

(783,072)
       

Partners' capital
(deficit)
  September 30, 2000



  $ 5,314,025



$  (206,181)



$ 5,107,844

Series 14

      

Partners' capital
(deficit)
  April 1, 2000



$ 11,906,149



$   (368,312)



$ 11,537,837

    

      
       

Net income (loss)

(1,281,756)

   (12,947)

(1,294,703)
       

Partners' capital
(deficit)
  September 30, 2000



  $ 10,624,393



$   (381,259)



$ 10,243,134
       























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$(4,181,391)

$(4,810,183)

   Adjustments

    

      Distributions from Operating
        Partnerships


8,965


20,175

      Amortization

24,281

24,281

      Share of Loss from Operating
        Partnerships


2,824,440


3,422,713

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable

1,275,716


1,390,243

      Decrease (Increase) in other
        assets


(55,537)


(42,163)

      Decrease (Increase) in prepaid
        expenses


-


(117,602)
     

      Net cash (used in) provided by
        Operating activities


(103,526)


(112,536)

     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-


(104,590)

   Advances (made to) repaid from
Operating Partnerships

-

 -

     

   Net cash (used in) provided by
     investing activities


   -


  (104,590)
















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Six months Ended September 30,
(Unaudited)

 

2000

1999
     

Continued

    
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     (refunded to) Operating
Partnerships


         -

(6,743)
     

      Net cash (used in)provided by
        financing activity


         -


   (6,743)
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

  (103,526)

(223,869)
     

Cash and cash equivalents, beginning

1,512,272

1,590,545
     

Cash and cash equivalents, ending

$ 1,408,746

$ 1,366,676
     


























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 7

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$(169,080)

$ (199,226)

   Adjustments

    

      Distributions from Operating
        Partnerships


-


-

      Amortization

-

-

      Share of Loss from Operating
        Partnerships


100,608


130,501

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable


72,900


77,172

      Decrease (Increase) in other
        assets


(3,087)


(10,858)

      Decrease (Increase) in prepaid
        expenses


   -


  -
     

      Net cash (used in) provided by
        operating activities


1,341


  (2,411)
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-

-

   Advances (made to) repaid from
Operating Partnerships

        -

    -
     

   Net cash (used in) provided by
     investing activities


   -


-















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 7

 

2000

1999
     

Continued

    
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     (refunded to) Operating
Partnerships


-


-
     

      Net cash (used in)provided by
        financing activity


-


-
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


1,341


(2,411)
     

Cash and cash equivalents, beginning

4,929

8,529
     

Cash and cash equivalents, ending

$   6,270

$   6,118
     


























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 9

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$(825,398)

$(1,008,231)

   Adjustments

    

      Distributions from Operating
        Partnerships


3,050


1,046

      Amortization

435

435

      Share of Loss from Operating
        Partnerships


540,537


712,009

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable


287,896


287,892

      Decrease (Increase) in other
        assets


(630)


(33,738)

      Decrease (Increase) in prepaid
        expenses


         -


   -
     

      Net cash (used in) provided by
        operating activities


    5,890


  (40,587)

   
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-


(4,590)

   Advances (made to) repaid from
Operating Partnerships

-

-
     

   Net cash (used in) provided by
     investing activities


   -


(4,590)
















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)


Series 9

 

2000

1999
     

Continued

    
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     (refunded to)Operating
Partnerships


-


        -
     

      Net cash (used in)provided by
        financing activity


-


        -
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


5,890


(45,177)
     

Cash and cash equivalents, beginning

  335,866

  396,237
     

Cash and cash equivalents, ending

$ 341,756

$  351,060
     

























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 10

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$ (483,569)

$ (413,053)

   Adjustments

    

      Distributions from Operating
        Partnerships


352


683

      Amortization

1,721

1,721

      Share of Loss from Operating
        Partnerships


293,072


214,962

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable


177,756


177,756

     (Decrease) Increase in other
        assets


2,063


2,427

      Decrease (Increase) in prepaid
        expenses


-


   -

     

      Net cash (used in) provided by
        operating activities


    (8,605)


   15,504

     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-


-

   Advances (made to) repaid from
Operating Partnerships

-

-
     

   Net cash (used in) provided by
     Investing activities


   -


-















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 10

 

2000

1999
     

Continued

    
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     (refunded to) Operating
Partnerships


         -


   (7,350)
     

      Net cash (used in)provided by
        financing activity


         -


   (7,350)
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(8,605)


(22,854)
     

Cash and cash equivalents, beginning

   121,866

   118,099
     

Cash and cash equivalents, ending

$   113,261

$    95,245
     

























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 11

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$(625,569)

$(690,454)

   Adjustments

    

      Distributions from Operating
        Partnerships


-


35

      Amortization

872

872

      Share of Loss from Operating
        Partnerships


443,904


506,121

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable


162,840


162,840

      Decrease (Increase) in other
        assets


3,337


6

      Decrease (Increase) in prepaid
        expenses


   -


   -
     

      Net cash (used in) provided by
        operating activities


  (14,616)


(20,580)
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-


-

   Advances (made to) repaid from
Operating Partnerships

         -

-
     

   Net cash (used in) provided by
     investing activities


   -


    -
















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 11

 

2000

1999
     

Continued

    
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     (refunded to) Operating
Partnerships


         -


    -
     

      Net cash (used in)provided by
        financing activity


         -


-
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(14,616)


  (20,580)
     

Cash and cash equivalents, beginning

   389,019

   316,711
     

Cash and cash equivalents, ending

$   374,403

$   296,131
     


























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 12

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$ (783,072)

$ (763,828)

   Adjustments

    

      Distributions from Operating
        Partnerships


723

(5,579)

      Amortization

6,658

6,658

      Share of Loss from Operating
        Partnerships


557,659


528,259

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable


196,054


198,966

     (Decrease) Increase in other
assets


-


-

      Decrease (Increase) in prepaid
        expenses


    -


   -
     

      Net cash (used in) provided by
        operating activities


  (21,978)


  (35,524)
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-


-

   Advances (made to) repaid from
Operating Partnerships

-

-
     

   Net cash (used in) provided by
     investing activities


   -


   -
















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 12
 

2000

1999
     

Continued

    
     

Cash flows from financing activity:

    

   Credit adjusters received from
     (refunded to) Operating
Partnerships


         -


         -
     

      Net cash (used in)provided by
        financing activity


         -


         -
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(21,978)


(35,524)

     

Cash and cash equivalents, beginning

   68,437

   82,710
     

Cash and cash equivalents, ending

$  46,459

$   47,186
     


























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 14

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

(1,294,703)

$(1,735,391)

   Adjustments

    

      Distributions from Operating
        Partnerships


4,840


23,990

      Amortization

14,595

14,595

      Share of Loss from Operating
        Partnerships


888,660


1,330,861

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable


378,270


485,617

     (Decrease) Increase in other
assets


(57,220)


(117,602)

      Decrease (Increase) in prepaid
        expenses


   -


  -
     

      Net cash (used in) provided by
        operating activities


   (65,558)


  2,070
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-


(100,000)

   Advances (made to) repaid from
Operating Partnerships

-

-
     

   Net cash (used in) provided by
     investing activities


   -


  (100,000)
















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 14
 

2000

1999
     

Continued

    
     

Cash flows from financing activity:

    

   Credit adjusters received from
     (refunded to) Operating
Partnerships


         -


       607
     

      Net cash (used in)provided by
        financing activity


         -


       607
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(65,558)


(97,323)

     

Cash and cash equivalents, beginning

   592,155

   668,259
     

Cash and cash equivalents, ending

$   526,597

$   570,936
     


























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)

NOTE A - ORGANIZATION

Boston Capital Tax Credit Fund II Limited Partnership (the "Partnership") was
formed under the laws of the State of Delaware as of June 28, 1989, for the
purpose of acquiring, holding, and disposing of limited partnership interests
in operating partnerships which will acquire, develop, rehabilitate, operate
and own newly constructed, existing or rehabilitated low-income apartment
complexes ("Operating Limited Partnerships"). The general partner of the
Partnership is Boston Capital Associates II Limited Partnership and the
limited partner is BCTC II Assignor Corp. (the "Assignor Limited Partner").

Pursuant to the Securities Act of 1933, the Partnership filed a Form S-11
Registration Statement with the Securities and Exchange Commission, effective
October 25, 1989, which covered the offering (the "Public Offering") of the
Partnership's beneficial assignee certificates ("BACs") representing
assignments of units of the beneficial interest of the limited partnership
interest of the Assignor Limited Partner. The Partnership registered
20,000,000 BACs at $10 per BAC for sale to the public in six series. The
Partnership sold 1,036,100 of Series 7 BACs, 4,178,029 of Series 9 BACs,
2,428,925 of Series 10 BACs, 2,489,599 of Series 11 BACs, 2,972,795 of Series
12 BACs, and 5,574,290 of Series 14 BACs. The Partnership issued the
last BACs in Series 14 on January 27, 1992. This concluded the Public
Offering of the Partnership.

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of September 30, 2000
and for the three and six months then ended have been prepared by the Partnership, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. No BACs with respect to Series 8 and Series 13 were offered. The Partnership accounts for its investments in Operating Partnerships using the equity method, whereby the partnership adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued.





Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO FINANCIAL STATEMENTS (CONTINUED)

September 30, 2000
(Unaudited)

NOTE - B ACCOUNTING AND FINANCIAL REPORTING POLICIES - CONTINUED

Costs incurred by the Partnership in acquiring the investments in
Operating Partnerships are capitalized to the investment account. The
Partnership's accounting and financial reporting policies are in conformity with generally accepted accounting principles and include adjustments in interim periods considered necessary for a fair presentation of the results of
operations. Such adjustments are of a normal recurring nature. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations. It is suggested
that these condensed financial statements be read in conjunction with the
financial statements and the notes thereto included in the Partnership Annual
Report on Form 10-K.

On July 1, 1995, the Partnership began amortizing unallocated acquisition
costs over 330 months from April 1, 1995. As of September 30, 2000, the
Partnership has accumulated unallocated acquisition amortization totaling
$267,089. The breakdown of accumulated unallocated acquisition amortization
within the Partnership as of June 30, 2000 for Series 9, Series 10,
Series 11, Series 12, and Series 14 is $4,784, $18,928, $9,594, $73,242, and
$160,541, respectively.

NOTE C - RELATED PARTY TRANSACTIONS

The Partnership has entered into several transactions with various affiliates of the general partner, including Boston Capital Partners, Inc., and Boston Capital Asset Management Limited Partnership as follows:

An annual partnership management fee based on .5 percent of the aggregate
cost of all apartment complexes owned by the Operating Partnerships has been
accrued to Boston Capital Asset Management Limited Partnership. The
partnership management fee accrued for the quarters ended September 30, 2000 and 1999 are as follows:

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

September 30, 2000
(Unaudited)

NOTE C - RELATED PARTY TRANSACTIONS (CONTINUED):

 

2000

1999

Series 7

$28,287

$28,287

Series 9

143,946

143,946

Series 10

88,878

88,878

Series 11

81,420

81,420

Series 12

95,817

95,817

Series 14

189,135

189,135
     
 

$627,483

$627,483

Accounts payable - affiliates at September 30, 2000 and 1999 represents
accrued general and administrative expenses, partnership management fees,
and advances from an affiliate of the general partner, which are payable to
Boston Capital Partners, Inc., and Boston Capital Asset Management Limited
Partnership.

As of September 30, 2000, an affiliate of the general partner advanced a
total of $310,346 to the Partnership to pay certain operating expenses and
make advances and/or loans to Operating Partnerships. There was $15,101 of advances made to series 7 during the quarter ended September 30, 2000. Below is a table that breaks down by series the advances as of September 30, 2000.

 

2000

Series 7

$140,447

Series 12

62,550

Seires 14

107,349
   
 

$310,346

These advances are included in Accounts payable-affiliates. These advances, and any additional advances, will be paid, without interest, from available cash flow or the proceeds of sales or refinancing of the Partnership's interests in Operating Partnerships.

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

September 30, 2000
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS

At September 30, 2000 and 1999 the Partnership had limited partnership
interests in 309 Operating Partnerships which own apartment complexes. The
number of Operating Partnerships in which the Partnership had limited
partnership interests at September 30, 2000 and 1999 by series is as follows:

 

2000

1999

Series 7

15

15

Series 9

55

55

Series 10

45

45

Series 11

40

40

Series 12

53

53

Series 14

101

101
     
 

309

309
     

 

Under the terms of the Partnership's investment in each Operating
Partnership, the Partnership is required to make capital contributions to the
Operating Partnerships. These contributions are payable in installments over
several years upon each Operating Partnership achieving specified levels of
construction and/or operations.

The contributions payable at September 30, 2000 and 1999 by series are as
follows:
 

2000

1999

Series 7

$ -

$ -

Series 9

-

4,590

Series 10

-

-

Series 11

22,528

22,528

Series 12

11,405

11,405

Series 14

227,170

329,894
     
 

$261,103

$368,417
     

The Partnership's fiscal year ends March 31 of each year, while all the

Operating Partnerships' fiscal years are the calendar year. Pursuant to the provisions of each Operating Partnership Agreement, financial results for each of the Operating Partnerships are provided to the Partnership within 45 days after the close of each Operating Partnership's quarterly period Accordingly, he current financial results available for the Operating Partnerships are for the six months ended June 30, 2000.

 

 

 

 

 

 



Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,

(Unaudited)

Series 7

 

2000

1999
     

Revenues

    

   Rental

$  1,025,706

$ 1,017,594

   Interest and other

     65,784

   31,308
     
 

  1,091,490

1,048,902
     

Expenses

    

   Interest

374,480

337,308

   Depreciation and amortization

349,544

344,360

   Operating expenses

714,142

659,359
 

1,438,166

1,341,027
     

NET LOSS

$ (346,676)

$ (292,125)
     

Net loss allocation to Boston  
   Capital Tax Credit Fund
   II Limited Partnership



$ (100,608)



$ (130,501)
     
     

Net loss allocated to other
   Partners


$   (3,467)


$   (2,921)
     

Net loss suspended

$  (242,601)

$  (158,703)

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

Boston Capital Tax Credit Fund II L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)

Series 9

 

2000

1999
     

Revenues

    

   Rental

$ 5,218,243

$ 5,011,136

   Interest and other

    210,470

   196,973
     
 

5,428,713

5,208,109
     

Expenses

    

   Interest

1,507,123

1,525,381

   Depreciation and amortization

1,851,340

1,883,291

   Operating expenses

3,220,719

3,131,599
 

6,579,182

6,540,271
     

NET LOSS

$ (1,150,469)

$ (1,332,162)
     

Net loss allocation to Boston  
  Capital Tax Credit Fund
  II Limited Partnership



$ (540,537)



$ (712,009)
     
     

Net loss allocated to other
   Partners


$   (11,505)


$   (13,322)
     

Net loss suspended

$   (598,427)

$   (606,831)

 

 

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

Boston Capital Tax Credit Fund II L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)

Series 10
 

2000

1999
     

Revenues

    

   Rental

$ 3,825,300

$ 3,762,660

   Interest and other

   208,295

  134,801
     
 

4,033,595

3,897,461
     

Expenses

    

   Interest

990,529

1,039,425

   Depreciation and amortization

1,289,232

1,187,052

   Operating expenses

2,341,614

2,140,947
 

4,621,375

4,367,424
     

NET LOSS

$ (587,780)

$ (469,963)
     

Net loss allocation to Boston  
   Capital Tax Credit Fund
  II Limited Partnership



$ (293,072)



$ (214,962)
     
     

Net loss allocated to other
   Partners


$   (5,878)


$  (4,700)
     

Net loss suspended

$ (288,830)

$ (250,301)

 

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)

Series 11

 

2000

1999
     

Revenues

    

   Rental

$ 3,221,191

$ 3,205,233

   Interest and other

  188,353

  179,827
     
 

3,409,544

3,385,060
     

Expenses

    

   Interest

924,346

1,014,757

   Depreciation and amortization

1,228,933

1,187,009

   Operating expenses

2,150,526

2,027,086
 

4,303,805

4,228,852
     

NET LOSS

$ (894,261)

$ (843,792)
     

Net loss allocation to Boston  
   Capital Tax Credit Fund
  II Limited Partnership



$ (443,904)



$ (506,121)
     
     

Net loss allocated to other
   Partners


$    (8,943)


$    (8,438)
     

Net loss suspended

$  (441,414)

$  (329,233)

 

 

 

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)

Series 12
 

2000

1999
     

Revenues

    

   Rental

$ 3,636,068

$ 3,482,366

   Interest and other

  135,011

  151,988
     
 

3,771,079

3,634,354
     

Expenses

    

   Interest

964,970

998,698

   Depreciation and amortization

1,357,612

1,291,035

   Operating expenses

2,331,612

2,180,634
 

4,654,194

4,470,367
     

NET LOSS

$ (883,115)

$ (836,013)
     

Net loss allocation to Boston  

   Capital Tax Credit Fund
  II Limited Partnership



$ (557,569)



$ (528,259)
     
     

Net loss allocated to other
   Partners


$   (8,831)


$   (8,360)
     

Net loss suspended

$ (316,624)

$ (299,394)

 

 

 

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)

Series 14
 

2000

1999
     

Revenues

    

   Rental

$ 7,625,069

$ 7,468,987

   Interest and other

    383,600

312,578
     
 

8,008,669

7,781,565
     

Expenses

    

   Interest

2,188,316

2,236,187

   Depreciation and amortization

2,502,544

2,863,178

   Operating expenses

4,807,888

4,564,052
 

9,498,748

9,663,417
     

NET LOSS

$ (1,490,079)

$(1,881,852)
     

Net loss allocation to Boston  
   Capital Tax Credit Fund
  II Limited Partnership



$ (888,660)



$(1,330,861)
     
     

Net loss allocated to other
   Partners


$  (14,901)


$   (18,819)
     

Net loss suspended

$ (586,508)

$ (532,172)

 

 

 

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
September 30, 2000
(Unaudited)

NOTE E - TAXABLE LOSS

The taxable loss for the year ended March 31, 2001 is expected to differ from its loss for financial reporting purposes. This is primarily due to accounting differences in depreciation incurred by the Operating Partnerships and also differences between the equity method of accounting and the IRS accounting methods. No provision or benefit for income taxes has been included in these financial statements since taxable income or loss passes through to, and is reportable by, the partners and assignees individually.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations

Liquidity

The Partnership's primary source of funds was the proceeds of its Public
Offering. Other sources of liquidity include (i) interest earned on capital
contributions unpaid as of September 30, 2000 or on working capital reserves
and (ii) cash distributions from operations of the Operating Partnerships in
which the Partnership has invested in. These sources of liquidity, along with
the Partnerships working capital reserve, are available to meet the
obligations of the Partnership. The Partnership does not anticipate
significant cash distributions from operations of the Operating Partnerships.
The Partnership currently is accruing the annual partnership management fee to
enable each series to meet current and future third party obligations.
Pursuant to the Partnership Agreement, such liabilities will be deferred until
the Partnership receives sales or refinancing proceeds from Operating
Partnerships, and at that time proceeds from such sales or refinancing will be
used to satisfy such liabilities. The Partnership anticipates that there
will be sufficient cash to meet future third party obligations.

The Partnership has recognized other income as of September 30, 2000 in the amount of $3,613. This total represents distributions received from Operating
Partnerships which the Partnership normally records as a decrease in the
Investment in Operating Partnerships. Due to the equity method of accounting,
the Partnership has recorded these distributions as other income.

The Partnership has recorded $355,675 as payable to affiliates, which
represents advances to pay certain third party operating expenses, make
advances and/or loans to Operating Partnerships, and accrued overhead
allocations. The breakout between series is: $153,634 in series 7, none in
series 9 and 10, $401 in series 11, $94,291 in series 12, and $107,349 in series 14. These and any future advances or accruals will be paid, without interest, from available cash flow, reporting fees, or proceeds of sales or refinancing of the Partnership's interest in Operating Partnerships.

Capital Resources

The Partnership offered BACs in a Public offering declared effective by the
Securities and Exchange Commission on October 25, 1989. The Partnership
received and accepted subscriptions for $186,337,017 representing 18,679,738
BACs from investors admitted as BAC Holders in Series 7 through Series 14
of the Partnership.

 

 

 

 

Capital Resources (continued)

As of September 30, 2000 the Partnership had $722,390 in remaining net
offering proceeds. Below is a table, which provides, by series, the equity
raised, number of BAC's sold, final date BAC's were offered, of number of
properties invested in, and remaining proceeds. All capital contributions have
been paid by Series 7,9 and 10; proceeds remaining listed for these series
represent current cash balance.

Series

Equity

BAC's

Final Close Date

Number of Properties

Proceeds Remaining

7

$ 10,361,000

1,036,100

12/29/89

15

$ 6,270

9

41,574,018

4,178,029

05/04/90

55

341,756

10

24,288,997

2,428,925

08/24/90

45

113,261

11

24,735,002

2,489,599

12/27/90

40

22,528

12

29,710,003

2,972,795

04/30/91

53

11,405

14

55,728,997

5,574,290

01/27/92

101

227,170
           
 

$186,398,017

18,679,738

  

309

$722,390
           

(Series 8) No BAC's with respect to Series 8 were offered.

(Series 13) No BAC's with respect to Series 13 were offered.

Results of Operations

As of September 30, 2000 and 1999 the Partnership held limited partnership
interests in 309 Operating Partnerships. In each instance the Apartment
Complex owned by the applicable Operating Partnership is eligible for the
Federal Housing Tax Credit. Occupancy of a unit in each Apartment Complex
which initially complied with the Minimum Set-Aside Test (i.e., occupancy by
tenants with incomes equal to no more than a certain percentage of area median
income) and the Rent Restriction Test (i.e., gross rent charged tenants does
not exceed 30% of the applicable income standards) is referred to hereinafter
as "Qualified Occupancy." Each of the Operating Partnerships and each of the
respective Apartment Complexes are described more fully in the Prospectus or
adequate casualty insurance on the properties.

The Partnership incurs a partnership management fee to Boston Capital
Asset Management Limited Partnership in an amount equal to 0.5% of the
aggregate cost of the apartment complexes owned by the Operating Partnerships,
less the amount of certain asset management and reporting fees paid by the
Operating Partnerships. The annual partnership management fee is currently
being accrued. It is anticipated that all outstanding fees will be repaid
from sale or refinancing proceeds. The partnership management fees incurred for the quarters ended September 30, 2000 and 1999 were $615,801 and
$586,884, respectively.

 

 

The Partnership's investment objectives do not include receipt of significant
cash distributions from the Operating Partnerships in which it has invested.

The Partnership's investments in Operating Partnerships have been made
principally with a view towards realization of Federal Housing Tax
Credits for allocation to its partners and BAC holders.

The General Partner and its affiliate, Boston Capital Asset Management
Limited Partnership, monitor the operations of all the properties in the
Partnership. The Operating Partnerships that are mentioned in the following
discussion of each series' results of operations are being closely monitored
so as to improve the overall results of each series' operations.

(Series 7) As of September 30, 2000 and 1999, the average Qualified Occupancy
for the series was 100% for both years. The series had a total of 15
properties all of which were 100% at September 30, 2000.

For the six months being reported the series reflects a net loss from the
Operating Partnerships of $346,676. When adjusted for depreciation, which is
a non-cash item, the Operating Partnerships reflect positive operations of
$2,868. This is an interim period estimate; it is not necessarily indicative
of the final year end results.

As a result of poor occupancy at the property, the Operating Partnership, New
Holland Apartments Limited Partnership (New Holland Apartments.),suffers from
cash flow deficits and the senior mortgage is in default. In an effort to
address the delinquency, the Investment General Partner attempted to work with
the lender for more favorable terms, but to no avail. Due to the operating
deficits and the mortgagor's unwillingness to work with the Investment General
Partner or to accept a deed in lieu of foreclosure, the bank moved to
foreclose on the property. Due to a lack of perceived value in the vacant
property, the bank decided against continuing its foreclosure proceeding at
the present time. During this reprieve, the Investment General Partner is
working to locate a not-for-profit entity with the hope of convincing the
first mortgage holder to forgive the debt. The first mortgage holder is
examining all options available to it, including foreclosure. Due to the fact
that the property was vacant for most of 1999, and there are uncured health
and safety violations, The Investment Limited Partnership faced recapture of a
portion of the credits previously taken. As the property has remained vacant
to date in 2000 the partnership will be unable to take credits for this year
Unless the Investment General Partner is able to remain in the Partnership and
re-occupy the units with tax credit qualified tenants, future credits will
also be lost.

(Series 9) As of September 30, 2000 and 1999, the average Qualified Occupancy
for the series was 99.6% and 99.7%,respectively. The series had a total of 55
properties at September 30, 2000. Out of the total, 51 were at 100% Qualified
Occupancy.

For the six months being reported the series reflects a net loss from the
Operating Partnerships of $1,150,469. When adjusted for depreciation, which is
a non-cash item, the Operating Partnerships reflect positive operations of
$700,871. This is an interim period estimate; it is not necessarily
indicative of the final year end results.

As a result of the new Operating General Partner and property management team
assuming responsibility of School Street II Limited Partnership (School Street
Apts. II) and their completion of capital improvements, physical occupancy at
the property has improved. As of September 30, 2000 occupancy reached 80%.
Marshall School Street II, LLC, was inserted as the new Operating General
Partner in May of 2000. The property management team has evicted tenants with
delinquent rents, which resulted in higher maintenance and administrative
costs than budgeted for 2000. The improved occupancy and continued aggressive
marketing of the property should result in improved operations during the
fourth quarter of 2000 and into 2001. The Operating General Partner continues
to fund any operating cash deficits.

As a result of poor occupancy at the property, the Operating Partnership, New
Holland Apartments Limited Partnership (New Holland Apartments) suffers from
cash flow deficits and the mortgage is in default. In an effort to address the
delinquency, the Investment General Partner attempted to work with the lender
for more favorable terms, but to no avail. Due to operating deficits and the
mortgagor's unwillingness to work with the Investment General Partner or to
accept a deed in lieu of foreclosure, the bank moved to foreclose on the
property. Due to a lack of perceived value in the vacant property, the bank
has decided against continuing its foreclosure proceeding at the present time.
During this reprieve, the Investment General Partner is working to locate a
not-for-profit entity with the hope of convincing the first mortgage holder to
forgive the debt. The First mortgage holder is examining all options available
to it, including foreclosure. Due to the fact that the property was vacant for
most of 1999, and there are uncured health and safety violations, The
Investment Limited Partnership faced recapture of a portion of the credits
previously taken. As the property has remained vacant to date in 2000 the
partnership will be unable to take credits for this year Unless the Investment
General Partner is able to remain in the Partnership and re-occupy the units
with tax credit qualified tenants, future credits will also be lost.

The Operating Partnership Glennwood Hotel Investors (Glennwood Hotel)
continues to operate at an average occupancy of 63%. The area has and
oversupply of affordable rental housing and a poor local economy, which has
negatively impacted the property. Without significant structural improvements,
that are at this time physically and financial infeasible, the property will
not be able to compete effectively in the market. At the end of the first
quarter, the property's commercial tenant vacated its space. A new tenant has
leased the space as of July 1, at an increased rental rate which should help
to offset the residential vacancies. The Operating General Partner continues
to financially support the partnership. The Investment General Partner will
continue to monitor this situation.

(Series 10) As of September 30, 2000 and 1999, the average Qualified
Occupancy for the series was 99.8% and 99.7%, respectively. The series had a
total of 45 properties at September 30, 2000, Out of the total,43 were at 100%
Qualified Occupancy.

For the six months being reported the series reflects a net loss from the
Operating Partnerships of $587,780. When adjusted for depreciation which is
a non-cash item, the Operating Partnerships reflect positive operations of
$701,452. This is an interim period estimate; it is not necessarily
indicative of the final year end results.

The audited financial statements for Chuckatuck Square were prepared assuming
the partnership will continue as a Going Concern. Despite high occupancy, the
property suffers from excessive bad debt expenses due to the seasonal nature
of employment opportunities in the local economy. As a result, the property
has accumulating payables and is delinquent in funding its replacement
reserves. In January of 2000, the partnership entered a two-year workout plan
with Rural Development that allows for reduced debt service payments. The
reduced debt service requirement, improved rental collection and controlled
expenses have allowed the property to reduce the accounts payable from $12,383
as of December 31, 1999 to $7,732 as of July 15, 2000, and fund $9,000 into
the replacement reserve account. The tenant receivables have been reduced from
$7,305 as of December 31, 1999 to $3,289 as of July 15, 2000. The operating
general partner continues to attempt to obtain rental assistance from Rural
Development to alleviate the collection/bad debt problem.

(Series 11) As of September 30, 2000 and 1999 the average Qualified
Occupancy for the series was 100% for both years. The series had a
total of 40 properties at September 30, 2000, Out of the total,39 were at 100%
Qualified Occupancy.

For the six months being reported the series reflects a net loss from the
Operating Partnerships of $894,261. When adjusted for depreciation, which is a
non-cash item, the Operating Partnerships reflect positive operations of
$334,672. This is an interim period estimate; it is not necessarily
indicative of the final year end results.

Ivan Woods Limited Partnership(Ivan Woods Senior Apartments) received a Form
8823, Low Income Housing Credit Agencies Report of Non compliance, on
September 1, 1999. Presently, the partnership files are in good condition;
however, there were five units with non-eligibility issues that occurred
during the first eighteen months of the compliance of the building The non-
compliance of five units are being investigated by the present management
agent. The management agent is working with the state agency in attempt to
rectify the situation. At this point in time we are unable to determine if the
partnership will face recapture of tax credits on the five in questions

(Series 12) As of September 30, 2000 and 1999 the average Qualified
Occupancy for the series was 99.8% and 99.9%, respectively. The series had a
total of 53 properties at September 30, 2000, 51 of which were at 100%
qualified occupancy.

For the six months being reported the series reflects a net loss from the
Operating Partnerships of $883,115. When adjusted for depreciation, which is
a non-cash item, the Operating Partnerships reflect positive operations of
$474,497. This is an interim period estimate; it is not necessarily
indicative of the final year end results.

Ivan Woods Limited Partnership(Ivan Woods Senior Apartments) received a Form
8823, Low Income Housing Credit Agencies Report of Non compliance, on
September 1, 1999. Presently, the partnership files are in good condition;
however, there were five units with non-eligibility issues that occurred
during the first eighteen months of the compliance of the building The non-
compliance of five units are being investigated by the present management
agent. The management agent is working with the state agency in attempt to
rectify the situation. At this point in time we are unable to determine if the
partnership will face recapture of tax credits on the five in questions

(Series 14) As of September 30, 2000 and 1999 the average Qualified
Occupancy for the series was 99.8% and 99.7%, respectively. The series had a
total of 101 properties at September 30, 2000, 96 of which were at 100%
Qualified Occupancy.

For the six months being reported the series reflects a net loss from the
Operating Partnerships of $1,490,079. When adjusted for depreciation, which is
a non-cash item, the Operating Partnerships reflect positive operations of
$1,012,465. This is an interim period estimate; it is not necessarily
indicative of the final year end results.

Lakewood Terrace Limited Partnership (Lakewood Terrace Apartments) operated
with a net loss during 1999 primarily as a result of the extensive amount of
capital improvements that were made during the year. A portion of the expense
was reimbursed from the replacement reserve account but the property funded
the balance of the costs through operations. Capital improvements of this
magnitude are not anticipated in 2000. Despite the fact that occupancy
averaged 97.47% during 1999, the property could not sustain the expenses it
incurred and closed the year with high payables on their balance sheet.
Occupancy for the third quarter of 2000 continues to be strong at 100%. The
operating General Partner has been successful in securing a four (4) year
contract with HUD and has also been granted a 2.2% rental increase. It is
anticipated that the lease renewals for the last quarter of 2000 will be
affected by the rental increase. The increase in rents and continued high
occupancy should financially assist the partnership.

 

The properties owned by Glenhaven Park Partners, A California LP (Glenhaven
Estates), Haven Park Partners II, A California LP (Glenhaven Park II), Haven
Park Partners III, A California LP (Glenhaven Park III), and Haven Park
Partners IV, A California LP (Glenhaven Park) continue to suffer from
excessive operating expenses compared to operating income. In an effort to
operate the properties in a more cost effective manner, the Investment General
Partner has commenced discussions with a local third party management company
to assume the role of both Operating General Partners and property manager.
If an agreement can be reached it is anticipated that they will take over
management of the properties within 30 to 45 days. As a result of repairs to
unit interiors, occupancy levels have stabilized. At September 30, 2000
physical occupancy at Haven Park II was 93%. Occupancy at Haven Park III and Haven Park IV as of September 30, 2000 increased to 100%. Occupancy at
Glenhaven Park Partners continues to suffer, largely as a result of turnovers
associated with evictions. Occupancy as of September 30, 2000 was 83%.

On April 27, 1998 Woodfield Commons Limited Partnership (Rainbow Commons
Apartments) received a 60-Day letter issued by the IRS stating that the
Operating Partnership had not met certain IRC Section 42 requirements.

The IRS has additionally sent two 60 day letters for the tax years ending 1996
and 1997 dated August 23 1999 and August 8, 1999, respectively. The initial
60-Day letter which was issued in relation to the tax years ended December 31,
1993, 1994, and 1995, and the subsequent 1996 and 1997 60-day letter were the
result of an IRS audit of the Operating Partnership's tenant files. The IRS
has proposed an adjustment that would disallow the Partnership from utilizing
certain past or future credits. On June 23, 1998, the Operating General
Partner and its counsel filed a written protest with the IRS and requested
additional information from the IRS with regards to the legal and factual
basis upon which it has proposed its assessment. As of this date, the IRS has
not responded to this request nor has a conference with the Appeals Office
been scheduled.

The Operating General Partner and its counsel do not anticipate an outcome
that would have a material effect on the financial statements and accordingly,
no adjustment has been made in the accompanying financial statements. While
the Operating General Partner and its counsel are of this opinion, it is the
opinion of the Investment General Partner that the outcome could, in total, be
material. While no adjustments have been made to the accompanying financial
statements, the auditor's have included a contingency footnote in the annual
financial statement(Note H) which is a part of the most recently filed 10-K
dated March 31, 2000.

 

 

PART II - OTHER INFORMATION

 

 

Item 1. Legal Proceedings

None

Item 2. Changes in Securities

None

Item 3. Defaults upon Senior Securities

None

Item 4. Submission of Matters to a Vote of Security Holders

None

Item 5. Other Information

None

Item 6. Exhibits and Reports on Form 8-K

(a) Exhibits

None
(b) Reports on Form 8-K

None

 

 

 

 

 

 

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

BOSTON CAPITAL TAX CREDIT
FUND II LIMITED PARTNERSHIP

 

By: Boston Capital Associates II Limited
Partnership

 

By: C&M Associates d/b/a
Boston Capital Associates

 

Date: November 20, 2000 By: /S/ John P. Manning

________________________

John P. Manning,
Partner & Principal Financial
Officer

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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