SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ------ EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ------ EXCHANGE ACT OF 1934
Commission File Number 0-20476
INDEPENDENCE TAX CREDIT PLUS L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3589920
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
625 Madison Avenue, New York, New York 10022
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212)421-5333
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
--- ---
<PAGE>
PART I - Financial Information
Item 1. Financial Statements
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
============= =============
December 31, March 31,
1996 1996*
------------- -------------
ASSETS
Property and equipment at cost,
net of accumulated depreciation
of $19,765,315 and $15,437,715,
respectively $ 163,259,855 $ 167,478,231
Cash and cash equivalents 2,001,401 2,395,044
Cash held in escrow 9,355,839 8,730,403
Deferred costs, net of accumulated
amortization of $1,137,646 and
$882,061, respectively 2,998,468 3,254,053
Other assets 2,380,693 1,930,488
------------- -------------
Total assets $ 179,996,256 $ 183,788,219
============= =============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Mortgage notes payable $ 99,766,879 $ 100,916,832
Construction note payable 6,740,018 6,740,018
Accounts payable and other
liabilities 6,565,420 6,470,526
Due to local general partners and
affiliates 5,923,323 5,979,525
Due to general partner and
affiliates 694,990 595,999
------------- -------------
Total liabilities 119,690,630 120,702,900
------------- -------------
Minority interest 6,796,486 6,850,591
Partners' capital:
Limited partners (76,786 BACs
issued and outstanding) 53,656,923 56,355,255
General partner (147,783) (120,527)
------------- -------------
Total partners' capital 53,509,140 56,234,728
------------- -------------
Total liabilities and partners' capital $ 179,996,256 $ 183,788,219
============= =============
* Reclassified for comparative purposes
See Accompanying Notes to Consolidated Financial Statements
2
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Consolidated Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
============================ ============================
Three Months Ended Nine Months Ended
December 31, December 31,
---------------------------- ----------------------------
1996 1995* 1996 1995*
---------------------------- ----------------------------
<S> <C> <C> <C> <C>
Revenues
Rental income $ 4,848,493 $ 4,826,070 $ 14,550,082 $ 14,265,925
Other income 154,984 82,543 331,005 300,795
------------ ------------ ------------ ------------
5,003,477 4,908,613 14,881,087 14,566,720
------------ ------------ ------------ ------------
Expenses
General and
administrative 782,170 673,610 2,290,320 2,005,733
General and
administrative-
related parties
(Note 2) 276,611 479,069 837,032 1,458,405
Repairs and
maintenance 879,946 633,494 2,210,685 1,884,742
Operating and
other 608,182 531,212 1,892,784 1,796,487
Taxes 282,692 309,798 942,117 937,147
Insurance 200,664 170,402 594,058 606,296
Financial,
principally
interest 1,393,750 1,401,014 4,280,603 4,305,681
Depreciation and
amortization 1,497,811 1,501,320 4,583,185 4,521,020
------------ ------------ ------------ ------------
5,921,826 5,699,919 17,630,784 17,515,511
------------ ------------ ------------ ------------
Net loss before
minority interest (918,349) (791,306) (2,749,697) (2,948,791)
Minority interest in
loss of subsidiary
partnerships 8,807 4,144 24,109 20,481
------------ ------------ ------------ ------------
Net loss $ (909,542) $ (787,162) $ (2,725,588) $ (2,928,310)
============ ============ ============ ============
Net loss - limited
partners $ (900,446) $ (779,290) $ (2,698,332) $ (2,899,027)
============ ============ ============ ============
Net loss per
BAC $ (11.73) $ (10.15) $ (35.14) $ (37.75)
============ ============ ============ ============
</TABLE>
* Reclassified for comparative purposes
See Accompanying Notes to Consolidated Financial Statements
3
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Consolidated Statement of Changes in Partners' Capital
(Unaudited)
================================================
Limited General
Total Partners Partners
------------------------------------------------
Partners' capital-
April 1, 1996 $ 56,234,728 $ 56,355,255 $ (120,527)
Net loss (2,725,588) (2,698,332) (27,256)
------------ ------------ ------------
Partners' capital-
December 31,
1996 $ 53,509,140 $ 53,656,923 $ (147,783)
============ ============ ============
See Accompanying Notes to Consolidated Financial Statements
4
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Consolidated StatementS of Cash Flows
Decrease in Cash and Cash Equivalents
(Unaudited)
============================
Nine Months Ended
December 31,
----------------------------
1996 1995
----------------------------
Cash flows from operating activities:
Net loss $(2,725,588) $(2,928,310)
----------- -----------
Adjustments to reconcile net loss to
net cash provided by
operating activities:
Depreciation and amortization 4,583,185 4,521,020
Minority interest in loss of
subsidiaries (24,109) (20,481)
Increase in due to general
partner and affiliates 98,991 341,200
Decrease in due from local general
partner and affiliates 0 60,033
Decrease in due from general
partner and affiliates 0 283,371
Increase in accounts payable and
other liabilities 94,894 50,967
Increase in other assets (450,205) (390,562)
Increase in cash held in escrow (947,829) (484,154)
----------- -----------
Total adjustments 3,354,927 4,361,394
----------- -----------
Net cash provided by operating
activities 629,339 1,433,084
----------- -----------
Cash flows from investing activities:
Acquisition of property and
equipment (109,224) (228,162)
Decrease in cash held in escrow 322,393 346,250
Increase in due to local general
partners and affiliates 96,083 321
Decrease in due to local general
partners and affiliates (152,285) (2,252,130)
----------- -----------
Net cash provided by (used in)
investing activities 156,967 (2,133,721)
----------- -----------
Cash flows from financing activities:
Proceeds from mortgage notes
payable 0 85,744
Repayment of mortgage notes (1,149,953) (1,320,492)
Decrease in capitalization of
consolidated subsidiaries
attributable to minority interest (29,996) (48,507)
----------- -----------
Net cash used in financing
activities (1,179,949) (1,283,255)
----------- -----------
See Accompanying Notes to Consolidated Financial Statements
5
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Consolidated StatementS of Cash Flows
Decrease in Cash and Cash Equivalents
(Unaudited)
==============================
Nine Months Ended
December 31,
------------------------------
1996 1995
------------------------------
Net decrease in cash and cash
equivalents (393,643) (1,983,892)
Cash and cash equivalents at
beginning of period 2,395,044 4,827,649
----------- -----------
Cash and cash equivalents at
end of period $ 2,001,401 $ 2,843,757
=========== ===========
See Accompanying Notes to Consolidated Financial Statements
6
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 1996
(Unaudited)
Note 1 - General
Independence Tax Credit Plus L.P. (the "Partnership") was formed pursuant to the
laws of the State of Delaware on November 7, 1990 but had no activity until May
31, 1991, (which date is considered to be inception for financial accounting
purposes), and commenced its public offering on July 1, 1991. The Partnership's
business is to invest in other limited partnerships ("subsidiary partnerships",
"subsidiaries" or "Local Partnerships") owning affordable apartment complexes
that are eligible for the low-income housing tax credit. Some of such apartment
complexes may also be eligible for the rehabilitation investment credit for
certified historic structures. As of December 31, 1996 the Partnership has
acquired an interest in 28 Local Partnerships. The Partnership does not intend
to acquire additional properties. Through the rights of the Partnership and/or
an affiliate of the General Partner, which affiliate has a contractual
obligation to act on behalf of the Partnership, to remove the general partner of
the subsidiary local partnerships and to approve certain major operating and
financial decisions, the Partnership has a controlling financial interest in the
subsidiary local partnerships.
The Partnership's fiscal quarter ends December 31. All subsidiaries have fiscal
quarters ending September 30. Accounts of the subsidiaries have been adjusted
for intercompany transactions from October 1 through December 31.
All intercompany accounts and transactions with the subsidiary partnerships have
been eliminated in consolidation.
Increases (decreases) in the capitalization of consolidated subsidiaries
attributable to minority interest arise from cash contributions and cash
distributions to the minority interest partners.
Losses attributable to minority interests which exceed the minority interests'
investment in a subsidiary have been charged to the Partnership. Such losses
aggregated approximately $14,000 and $10,000 and $39,000 and $35,000 for the
three and nine months
7
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 1996
(Unaudited)
Note 1 - General (continued)
ended December 31, 1996 and 1995, respectively. The Partnership's investment in
each subsidiary is generally equal to the respective subsidiary's partners'
equity less minority interest capital, if any. In consolidation, all subsidiary
partnership losses are included in the Partnership's capital account except for
losses allocated to minority interest capital.
In March 1995, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 121, "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed
Of". Under SFAS No. 121, the Partnership is required to review long-lived assets
and certain identifiable intangibles for impairment whenever events or changes
in circumstances indicate that the book value of an asset may not be
recoverable. An impairment loss should be recognized whenever the review
demonstrates that the book value of a long-lived asset is not recoverable.
Effective April 1, 1996, the Partnership adopted SFAS No. 121, consistent with
the required adoption period.
Property and equipment are carried at the lower of depreciated cost or estimated
amounts recoverable through future operations and ultimate disposition of the
property. Cost includes the purchase price, acquisition fees and expenses, and
any other costs incurred in acquiring the properties. As required by SFAS No.
121, a provision for loss on impairment of assets is recorded when estimated
amounts recoverable through future operations and sale of the property on an
undiscounted basis are below depreciated cost. However, depreciated cost,
adjusted for such reductions in value, if any, may be greater than the fair
value. Property investments themselves are reduced to estimated fair value
(generally using discounted cash flows) when the property is considered to be
impaired and the depreciated cost exceeds estimate fair value. Through December
31, 1996, the Partnership has not recorded any provisions for loss on impairment
of assets or reduction to estimated fair value.
Certain information and note disclosure normally included in financial
statements prepared in accordance with generally accepted accounting principles
has been omitted or condensed. These condensed financial statements should be
read in conjunction with the financial statements and notes thereto included in
the Partnership's Annual Report on Form 10-K for the period ended March 31,
1996.
8
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 1996
(Unaudited)
Note 1 - General (continued)
The books and records of the Partnership are maintained on the accrual basis of
accounting in accordance with generally accepted accounting principles. In the
opinion of the General Partner, the accompanying unaudited financial statements
contain all adjustments (consisting only of normal recurring adjustments)
necessary to present fairly the financial position of the Partnership as of
December 31, 1996, the results of operations for the three and nine months ended
December 31, 1996 and 1995 and cash flows for the nine months ended December 31,
1996 and 1995. However, the operating results for the nine months ended December
31, 1996 may not be indicative of the results for the year.
Note 2 - Related Party Transactions
An affiliate of the General Partner, Independence SLP, L.P., has a 1% interest
as a special limited partner in each of the subsidiary partnerships. An
affiliate of the General Partner also has a minority interest in certain local
limited partnerships.
The General Partner and its affiliates perform services for the Partnership. The
costs incurred to related parties for the three and nine months ended December
31, 1996 and 1995 were as follows:
Three Months Ended Nine Months Ended
December 31, December 31,
------------------------ ------------------------
1996 1995 1996 1995
------------------------ ------------------------
Partnership
management
fees (a) $ 25,000 $ 220,055 $ 75,000 $ 660,165
Expense
reimburse-
ment (b) 28,096 24,368 77,581 67,412
Property manage-
ment fees (c) 205,515 219,646 630,451 685,828
Local adminis-
trative fee (d) 18,000 15,000 54,000 45,000
---------- ---------- ---------- ----------
$ 276,611 $ 479,069 $ 837,032 $1,458,405
========== ========== ========== ==========
(a) The General Partner is entitled to receive a partnership management fee,
after payment of all Partnership expenses, which together with the annual local
administrative fees will not exceed a maximum of 0.5% per annum of invested
assets (as defined in the Partnership Agreement), for administering the affairs
of the Partnership. Subject to the foregoing limitation, the partnership
management fee will be determined by the General Partner in its
9
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 1996
(Unaudited)
Note 2 - Related Party Transactions (continued)
sole discretion based upon its review of the Partnership's investments. Unpaid
partnership management fees for any year will be accrued without interest and
will be payable from working capital reserves or to the extent of available
funds after the Partnership has made distributions to the limited partners of
sale or refinancing proceeds equal to their original capital contributions plus
a 10% priority return thereon (to the extent not theretofore paid out of cash
flow). Partnership management fees owed to the General Partner amounting to
approximately $477,000 and $402,000 were accrued and unpaid as of December 31,
1996 and March 31, 1996, respectively.
(b) The Partnership reimburses the General Partner and its affiliates for actual
Partnership operating expenses incurred by the General Partner and its
affiliates on the Partnership's behalf. The amount of reimbursement from the
Partnership is limited by the provisions of the Partnership Agreement. Another
affiliate of the General Partner performs asset monitoring for the Partnership.
These services include site visits and evaluations of the subsidiary
partnerships' performance.
(c) Property management fees incurred to affiliates of the subsidiary
partnerships amounted to $205,515 and $219,646 and $630,451 and $685,828 for the
three and nine months ended December 31, 1996 and 1995, respectively. Included
in amounts incurred to affiliates of the subsidiary partnerships were $6,818 and
$16,168 and $38,363 and $49,754 for the three and nine months ended December 31,
1996 and 1995, respectively, which were also incurred to an affiliate of the
Related General Partner.
(d) Independence SLP, L.P. is entitled to receive a local administrative fee of
up to $2,500 per year from each subsidiary partnership.
Pursuant to the Partnership Agreement and the Local Partnership Agreements, the
General Partner and Independence SLP, L.P. received their pro-rata share of
profits, losses and tax credits.
Note 3 - Commitments and Contingencies
Rolling Green Associates, L.P. ("Rolling Green")
- -----------------------------------------------------
In October 1993, certain Federal Grand Jury subpoenas were served upon employees
of Rolling Green and upon Rolling Green's management agent as custodian of
records. The subpoenas are part of a United States Attorney and Federal Grand
Jury investigation
10
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P.
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
December 31, 1996
(Unaudited)
Note 3 - Commitments and Contingencies (continued)
into the propriety and accuracy of Section 8 Housing Assistance Payments ("HAP")
rent subsidies claimed by Rolling Green under its HAP Contract. The
investigation dates back to mid 1993. Upon receiving its subpoena, the
management agent promptly turned over the requested records. The management
agent conducted its own investigation which has resulted in the discovery of
tenancies which were incorrectly reported on earlier HAP subsidy vouchers. On
its December 1993 and January 1994 HAP subsidy vouchers, Rolling Green returned
to New York State Housing Finance Agency (the HAP contract administrator)
adjustments in the approximate net amount of $91,000 to correct the previously
incorrectly reported tenancies. Rolling Green believes the adjustments as filed
are accurate and complete. However, because the matter is ongoing, no estimate
can be made of any further adjustments deemed appropriate by the United States
Attorney or New York State Housing Finance Agency. The United States Attorney
for the Northern District of New York has pursued a civil action seeking
undetermined penalties and damages, however, such action was only against the
management company and not Rolling Green.
The Partnership's investment in this subsidiary partnership was approximately
$2,872,000 and $2,883,000 at December 31 and March 31, 1996, respectively. The
minority interest balance was $0 at December 31 and March 31, 1996. The net loss
after minority interest for this subsidiary partnership amounted to
approximately $73,000 and $3,000 and $11,000 and $77,000 for the three and nine
months ended December 31, 1996 and 1995, respectively.
11
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Liquidity and Capital Resources
- -------------------------------
The Partnership's primary source of funds include (i) working capital reserves
raised and interest earned thereon, and (ii) cash distributions from the
operations of the Local Partnerships. All these sources of funds are available
to meet obligations of the Partnership.
The Partnership received $76,786,000 in Gross Proceeds from the sale of BACs
pursuant to a public offering, resulting in net proceeds available for
investment, after volume discounts, establishment of a working capital reserve,
payment of sales commissions, acquisition fees and expenses, and offering
expenses of $61,400,000.
As of December 31, 1996, the Partnership has invested approximately $59,710,000
(not including acquisition fees of approximately $4,491,000) of net proceeds in
twenty-eight Local Partnerships of which approximately $987,000 remains to be
paid to the Local Partnerships (which is being held in escrow) as certain
benchmarks, such as occupancy level, must be attained prior to the release of
the funds. During the nine months ended December 31, 1996, approximately
$322,000 was paid from escrow. The Partnership does not intend to acquire
additional properties, however, the Partnership may be required to fund
potential purchase price adjustments based on tax credit adjustor clauses.
Cash and cash equivalents of the Partnership and its twenty-eight consolidated
subsidiary partnerships decreased approximately $394,000 during the nine months
ended December 31, 1996 primarily due to net repayments of mortgage notes
($1,150,000), acquisitions of property and equipment ($109,000) and a net
decrease in due to local general partners and affiliates ($56,000) which
exceeded cash provided by operating activities ($629,000) and a decrease in cash
held in escrow for investing activities ($322,000). Included in the adjustments
to reconcile the net loss to cash flow from operations is depreciation and
amortization of approximately $4,583,000.
An original working capital reserve of approximately $1,536,000 (2% of Gross
Proceeds raised) was established from the Partnership's funds available for
investment. The working capital reserve at December 31, 1996 and March 31, 1996
was approximately $203,000 and $365,000, respectively, which includes amounts
which may be required for the potential purchase price adjustments based on tax
credit adjustor clauses.
12
<PAGE>
Cash distributions received from the Local Partnerships remain relatively
immaterial. Distributions of approximately $52,000 and $58,000 were received
during the nine months ended December 31, 1996 and 1995, respectively. However,
management expects that the distributions received from the Local Partnerships
will increase, although not to a level sufficient to permit providing cash
distributions to BACs holders. These distributions as well as the working
capital reserves referred to in the above paragraph will be used to meet the
operating expenses of the Partnership.
HUD previously released the proposed American Community Partnerships Act (the
"ACPA"). The ACPA is HUD's blueprint for providing for the nation's housing
needs in an era of static or decreasing budget authority.
Two key proposals in the ACPA that could affect the Local Partnerships are: a
discontinuation of project based Section 8 subsidy payments and an attendant
reduction in debt on properties that were supported by the Section 8 payments.
The ACPA calls for a transition during which the project-based Section 8 would
be converted to a tenant-based voucher system. Any FHA insured debt would then
be "marked-to-market", that is revalued in light of the reduced income stream,
if any.
Several industry sources have already commented to HUD and Congress that in the
event the ACPA was fully enacted in its present form, the reduction in mortgage
indebtedness would be considered taxable income to limited partners in the
Partnership. Legislative relief has been proposed to exempt "marked-to-market"
debt from cancellation of indebtedness income treatment. Though HUD initially
backed away from the "marked-to-market" proposal, it has now been re-introduced
as "Portfolio Restructuring". Additionally, in the interim, HUD has agreed to
annual extensions of any expiring project based Section 8 contracts, but there
is no guarantee that such extension will be available in the future.
For a discussion of contingencies affecting certain Local Partnerships, see Note
3 to the financial statements. Since the maximum loss the Partnership would be
liable for is its net investment in the respective Local Partnerships, the
resolution of the existing contingency is not anticipated to impact future
results of operations, liquidity or financial condition in a material way.
However, the Partnership's loss of its investment in a Local Partnership will
eliminate the ability to generate future tax credits from such Local Partnership
and may also result in recapture of tax credits if the investment is lost before
the expiration of the credit period.
13
<PAGE>
Management is not aware of any trends or events, commitments or uncertainties,
which have not otherwise been disclosed, that will or are likely to impact
liquidity in a material way. Management believes the only impact would be from
laws that have not yet been adopted. The portfolio is diversified by the
location of the properties around the United States so that if one area of the
country is experiencing downturns in the economy, the remaining properties in
the portfolio may be experiencing upswings. However, the geographic
diversification of the portfolio may not protect against a general downturn in
the national economy. The Partnership has fully invested the proceeds of its
offering in 28 local partnerships, all of which fully have their tax credits in
place. The tax credits are attached to the project for a period of ten years,
and are transferable with the property during the remainder of the ten year
period. If trends in the real estate market warranted the sale of a property,
the remaining tax credits would transfer to the new owner; thereby adding
significant value to the property on the market, which are not included in the
financial statement carrying amount.
Results of Operations
- ---------------------
In March 1995, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards ("SFAS") No. 121, "Accounting for
the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed
Of". Under SFAS No. 121, the Partnership is required to review long-lived assets
and certain identifiable intangibles for impairment whenever events or changes
in circumstances indicate that the book value of an asset may not be
recoverable. An impairment loss should be recognized whenever the review
demonstrates that the book value of a long-lived asset is not recoverable.
Effective April 1, 1996, the Partnership adopted SFAS No. 121, consistent with
the required adoption period.
Property and equipment are carried at the lower of depreciated cost or estimated
amounts recoverable through future operations and ultimate disposition of the
property. Cost includes the purchase price, acquisition fees and expenses, and
any other costs incurred in acquiring the properties. As required by SFAS No.
121, a provision for loss on impairment of assets is recorded when estimated
amounts recoverable through future operations and sale of the property on an
undiscounted basis are below depreciated cost. However, depreciated cost,
adjusted for such reductions in value, if any, may be greater than the fair
value. Property investments themselves are reduced to estimated fair value
(generally using discounted cash flows) when the property is considered to be
impaired and the depreciated cost exceeds estimate fair value.
14
<PAGE>
Through December 31, 1996, the Partnership has not recorded any provisions for
loss on impairment of assets or reduction to estimated fair value.
The Partnership's results of operations for the three and nine months ended
December 31, 1996 and 1995 consisted primarily of the results of the
Partnership's investment in twenty-eight Local Partnerships. The majority of
Local Partnership income continues to be in the form of rental income with the
corresponding expenses being divided among operations, depreciation and mortgage
interest.
Rental income remained fairly consistent with increases of less than 1% and
approximately 2% for the three and nine months ending December 31, 1996,
respectively, as compared to the same periods in 1995 primarily due to rental
rate increases.
Other income increased approximately $72,000 and $30,000 for the three and nine
months ended December 31, 1996, respectively, as compared to the same periods in
1995 primarily due to the receipt of insurance proceeds for fire damages by two
Local Partnerships during the third quarter of 1996.
General and administrative increased approximately $109,000 and $285,000 for the
three and nine months ended December 31, 1996, respectively, as compared to the
same periods in 1995 primarily due to an increase in security expenses, at one
Local Partnership, an increase in bad debt expense at two other Local
Partnerships as well as small increases at four other Local Partnerships.
General and administrative-related parties decreased approximately $202,000 and
$621,000 for the three and nine months ended December 31, 1996, respectively, as
compared to the same periods in 1995 primarily due to a decrease in partnership
management fees payable to the General Partner.
Repairs and maintenance increased approximately $246,000 and $326,00 for the
three and nine months ended December 31, 1996, respectively, as compared to the
same periods in 1995. This was primarily due to increases at six Local
Partnerships. A new security system was installed at one Local Partnership. Two
other Local Partnerships made repairs which were necessary due to fire damage.
Increases at a fourth Local Partnership were the result of repainting
apartments, heating and plumbing repairs and the installation of new lighting. A
fifth Local Partnership replaced carpeting and made electrical repairs. A sixth
Local Partnership redecorated some apartments and had an increase in snow
removal due to the harsh winter.
15
<PAGE>
Operating and other increased approximately $77,000 for the three months ended
December 31, 1996 as compared to the same period in 1995 due to increases in
utilities at three Local Partnerships.
Insurance increased approximately $30,000 for the three months ended December
31, 1996 as compared to the same period in 1995 primarily due to an
overstatement of prepaid insurance at September 30, 1995 at one Local
Partnership which was corrected in the fourth quarter.
16
<PAGE>
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:
(27) Financial Data Schedule (filed herewith).
(b) Reports on Form 8-K - No reports on Form 8-K were filed during
the quarter.
17
<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.
INDEPENDENCE TAX CREDIT PLUS L.P.
---------------------------------
(Registrant)
By: RELATED INDEPENDENCE
ASSOCIATES L.P., a General Partner
By: RELATED INDEPENDENCE
ASSOCIATES INC., a General Partner
Date: February 13, 1997
By: /s/ Alan P. Hirmes
------------------------
Alan P. Hirmes,
Vice President
(principal financial officer)
Date: February 13, 1997
By: /s/ Richard A. Palermo
------------------------
Richard A. Palermo,
Treasurer
(principal accounting officer)
18
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial
information extracted from the financial
statements for Independence Tax Credit Plus L.P.
and is qualified in its entirety by reference to
such financial statements
</LEGEND>
<CIK> 0000869615
<NAME> Independence Tax Credit Plus L.P.
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> DEC-31-1996
<CASH> 11,357,240
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 5,379,161
<PP&E> 183,025,170
<DEPRECIATION> 19,765,315
<TOTAL-ASSETS> 179,996,256
<CURRENT-LIABILITIES> 13,183,733
<BONDS> 106,506,897
0
0
<COMMON> 0
<OTHER-SE> 60,305,626
<TOTAL-LIABILITY-AND-EQUITY> 179,996,256
<SALES> 0
<TOTAL-REVENUES> 14,881,087
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 13,350,181
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,280,603
<INCOME-PRETAX> (2,749,697)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,749,697)
<EPS-PRIMARY> (35.14)
<EPS-DILUTED> 0
</TABLE>
