November 13, 1996
Securities and Exchange Commission
Filer Support, Edgar
Operation Center, Stop 0-7
6432 General Green Way
Alexandria, VA 22312
Re: Boston Financial Tax Credit Fund Plus, A Limited Partnership
Report on Form 10-Q for Quarter Ended September 30, 1996
File No. 0-22104
Dear Sir/Madam:
Pursuant to the requirements of Rule 901(d) of Regulation S-T, enclosed is one
copy of subject report.
Please stamp and return the enclosed copy of this letter in the enclosed
stamped, self-addressed envelope to acknowledge receipt of this filing.
Very truly yours,
/s/Marie D. Reynolds
Marie D. Reynolds
Assistant Controller
TCP-10Q2.DOC
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of the
Securities Exchange Act
of 1934
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
For Quarter Ended September 30, 1996 Commission file number 0-22104
Boston Financial Tax Credit Fund Plus, A Limited Partnership
(Exact name of registrant as specified in its charter)
Massachusetts 04-3105699
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
101 Arch Street, Boston, Massachusetts 02110-1106
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617)439-3911
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>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Combined Balance Sheets - September 30, 1996 (Unaudited)
and March 31, 1996 1
Combined Statements of Operations (Unaudited) - For the
Three and Six Months Ended September 30, 1996 and 1995 2
Combined Statement of Changes in Partners' Equity (Deficiency)
(Unaudited) - For the Six Months Ended September 30, 1996 3
Combined Statements of Cash Flows (Unaudited) -
For the Six Months Ended September 30, 1996 and 1995 4
Notes to Combined Financial Statements (Unaudited) 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 13
PART II - OTHER INFORMATION
Items 1-6 15
SIGNATURE 16
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
COMBINED BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, March 31,
1996 1996
(Unaudited)
Assets
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 190,418 $ 489,191
Accounts receivable 3,876 22,188
Mortgagee escrow deposits 6,818 -
Tenant security deposits 2,764 -
Other current assets 13,413 13,080
-------------- -------------
Total current assets 217,289 524,459
Investments in Local Limited Partnerships, net of reserve
for valuation of $41,381 at March 31, 1996 (Note 2) 20,926,150 22,289,712
Marketable securities, at fair value (Note 1) 1,142,118 795,099
Other investments (Note 4) 1,275,517 1,227,001
Organization costs, net of accumulated amortization of
$45,833 and $40,833, respectively 4,167 9,167
Rental property at cost, net of accumulated depreciation 530,356 537,457
-------------- -------------
Total Assets $ 24,095,597 $ 25,382,895
============== =============
Liabilities and Partners' Equity (Deficiency)
Current liabilities:
Accounts payable to affiliates $ 779,880 $ 685,821
Accounts payable and accrued expenses 36,695 43,908
Accrued interest 3,622 3,622
Current portion of mortgage notes payable 3,357 2,181
Security deposits payable 2,399 2,025
-------------- -------------
Total current liabilities 825,953 737,557
Long term portion of mortgage notes payable 506,623 507,799
-------------- -------------
Total Liabilities 1,332,576 1,245,356
-------------- -------------
Minority interest in Local Limited Partnership (263) 21
-------------- -------------
Commitments (Note 5)
General, Initial and Investor Limited Partners' Equity (Deficiency) 22,762,709 24,135,483
Net unrealized gains on marketable securities 575 2,035
-------------- -------------
Total Partners' Equity (Deficiency) 22,763,284 24,137,518
-------------- -------------
Total Liabilities and Partners' Equity (Deficiency) $ 24,095,597 $ 25,382,895
============== =============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
COMBINED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three and Six Months Ended September 30, 1996 and 1995
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
September 30, September 30, September 30, September 30,
1996 1995 1996 1995
----------- ----------- ----------- -----------
Revenue:
<S> <C> <C> <C> <C>
Rental $ 12,251 $ 48,073 $ 34,649 $ 106,432
Investment 16,348 3,993 31,710 16,032
Other 11,422 27,422 43,156 52,282
----------- ----------- ----------- -----------
Total Revenue 40,021 79,488 109,515 174,746
----------- ----------- ----------- -----------
Expenses:
Asset management fees, related party 48,338 44,769 92,697 89,538
General and administrative (includes
reimbursements to an affiliate in the
in the amounts of $48,648 and
$42,913 in 1996 and 1995,
respectively) 46,753 47,533 116,821 116,205
Rental operations, exclusive of
depreciation 21,385 61,607 44,057 103,112
Property management
fees, related party 1,586 (1,810) 3,385 --
Interest 3,361 45,378 6,581 90,917
Depreciation 228 9,255 10,790 18,509
Amortization 10,852 9,023 21,705 18,035
----------- ----------- ----------- -----------
Total Expenses 132,503 215,755 296,036 436,316
----------- ----------- ----------- -----------
Net loss before minority interest
and equity in losses of Local
Limited Partnership (92,482) (136,267) (186,521) (261,570)
Equity in losses of Local
Limited Partnerships (620,430) (267,549) (1,235,053) (794,397)
Minority interest in loss of
Local Limited Partnership 135 462 284 667
----------- ----------- ----------- -----------
Net Loss before accretion of
Original Issue Discount (712,777) (403,354) (1,421,290) (1,055,300)
Accretion of Original Issue
Discount 24,615 22,775 48,516 44,890
----------- ----------- ----------- -----------
Net Loss $ (688,162) $ (380,579) $(1,372,774) $(1,010,410)
=========== =========== =========== ===========
Net Loss per Limited Partnership Unit:
Class A Unit (34,643 Units) $ (19.07) $ (10.79) $ (38.02) $ (28.23)
=========== =========== =========== ===========
Class B Unit (3,290 Units) $ (6.25) $ (0.85) $ (12.63) $ (6.68)
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
COMBINED STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
(Unaudited)
For the Six Months Ended September 30, 1996
<TABLE>
<CAPTION>
Investor Investor Net
Initial Limited Limited Unrealized
General Limited Partners, Partners, Gains
Partners Partner Class A Class B (Losses) Totals
<S> <C> <C> <C> <C> <C> <C>
Balance at March 31, 1996 $ (87,810) $ 5,000 $ 21,520,888 $ 2,697,405 $ 2,035 $ 24,137,518
Net Loss before accretion
of Original Issue Discount (14,213) -- (1,317,024) (90,053) -- (1,421,290)
Accretion of Original
Issue Discount -- -- -- 48,516 -- 48,516
Net change in unrealized
gains on marketable
securities available
for sale -- -- -- -- (1,460) (1,460)
------------ ------------ ------------ ------------ ------------ ------------
Balance at
September 30, 1996 $ (102,023) $ 5,000 $ 20,203,864 $ 2,655,868 $ 575 $ 22,763,284
============ ============ ============ ============ ============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
COMBINED STATEMENTS OF CASH FLOWS
(Unaudited)
For the Six Months Ended September 30, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
------------- -------------
<S> <C> <C>
Net cash used for operating activities $ (80,537) $ (122,723)
------------- ------------
Cash flows from investing activities:
Investments in Local Limited Partnerships 18,929 (216,232)
Purchases of marketable securities (421,444) (1,212,343)
Proceeds from sales and maturities of marketable securities 95,093 1,203,361
Payment of acquisition fees and expenses (11,790) (1,805)
Cash distributions received from Local Limited Partnerships 104,665 93,964
Purchase of rental property and equipment (3,689) -
------------- ------------
Net cash used for investing activities (218,236) (133,055)
------------- ------------
Net decrease in cash and cash equivalents (298,773) (255,778)
Cash and cash equivalents, beginning 489,191 373,535
------------- ------------
Cash and cash equivalents, ending $ 190,418 $ 117,757
============= ============
Supplemental disclosure of cash flow activity:
Cash paid for interest $ 6,581 $ 31,188
============= ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Notes to Combined Financial Statements
(Unaudited)
The unaudited financial statements presented herein have been prepared in
accordance with the instructions to Form 10-Q and do not include all of the
information and note disclosures required by generally accepted accounting
principles. These statements should be read in conjunction with the financial
statements and notes thereto included with the Fund's 10-K for the year ended
March 31, 1996. In the opinion of management, these financial statements include
all adjustments, consisting only of normal recurring adjustments, necessary to
present fairly the Fund's financial position and results of operations. The
results of operations for the period may not be indicative of the results to be
expected for the year. Certain reclassifications have been made to prior period
financial statements to conform to current period classifications.
1. Marketable Securities
A summary of marketable securities is as follows:
<TABLE>
<CAPTION>
Gross Gross
Unrealized Unrealized Fair
Cost Gains Losses Value
<S> <C> <C> <C> <C>
Debt securities issued by
the US Treasury and
other US Government agencies $ 1,031,128 $ 2,907 $ (622) $ 1,033,413
Mortgage backed securities 26,988 - (922) 26,066
Other debt securities 83,427 - (788) 82,639
----------- --------- ---------- -----------
Marketable securities
at September 30, 1996 $ 1,141,543 $ 2,907 $ (2,332) $ 1,142,118
=========== ========= ========== ===========
Debt securities issued by
the US Treasury and
other US Government agencies $ 609,683 $ 4,055 $ (30) $ 613,708
Mortgage backed securities 31,122 - (783) 30,339
Other debt securities 152,259 - (1,207) 151,052
----------- --------- ---------- -----------
Marketable securities
at March 31, 1996 $ 793,064 $ 4,055 $ (2,020) $ 795,099
=========== ========= ========== ===========
</TABLE>
The contractual maturities at September 30, 1996 are as follows:
Fair
Cost Value
Due in less than one year $ 498,899 $ 499,100
Due in one year to five years 615,656 616,952
Mortgage backed securities 26,988 26,066
---------- ----------
$1,141,543 $1,142,118
========== ==========
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Notes to Combined Financial Statements (continued)
(Unaudited)
1. Marketable Securities (continued)
Actual maturities may differ from contractual maturities because some borrowers
have the right to call or prepay obligations. Proceeds from the sales of fixed
maturity securities were approximately $95,000 and $1,203,000 for the six months
ended September 30, 1996 and 1995, respectively. Included in investment income
are gross gains of $22,293 and gross losses of $165 which were realized on these
sales during the six months ended September 30, 1996 and gross gains of $417 and
gross losses of $19,322 which were realized on these sales during the six months
ended September 30, 1995.
2. Investments in Local Limited Partnerships
The Fund uses the equity method to account for its limited partner interests in
twenty-six Local Limited Partnerships, excluding the Combined Entity, which own
and operate multi-family housing complexes, most of which are government
assisted. The Fund, as Investor Limited Partner pursuant to the various Local
Limited Partnership Agreements, has generally acquired a 99% interest in the
profits, losses, tax credits and cash flows from operations of each of the Local
Limited Partnerships except for an 82% interest in Livingston Arms. Upon
dissolution, proceeds will be distributed according to each respective
partnership agreement.
The following is a summary of Investments in Local Limited Partnerships,
excluding the Combined Entity, at September 30, 1996:
<TABLE>
<CAPTION>
<S> <C>
Capital contributions paid to Local Limited Partnerships and purchase price paid
to withdrawing partners of Local Limited
Partnerships $ 28,192,878
Cumulative equity in losses of Local Limited Partnerships (8,077,395)
Cash distributions received from Local Limited Partnerships (239,347)
------------
Investments in Local Limited Partnerships before adjustments 19,876,136
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,164,345
Accumulated amortization of acquisition fees and expenses (114,331)
------------
Investments in Local Limited Partnerships $ 20,926,150
============
</TABLE>
On September 1, 1995, Village Oaks, a Texas Partnership, transferred its assets
and liabilities to Texas Properties Limited Partnership VI, a Massachusetts
Limited Partnership, also known as Leatherwood Terrace ("Leatherwood"), a
Partnership of which the managing general partner is affiliated with the Fund's
Managing General Partner. Leatherwood continues to be presented on a combined
basis with the Fund.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Notes to Combined Financial Statements (continued)
(Unaudited)
2. Investments in Local Limited Partnerships (continued)
Summarized financial information from the combined financial statements of the
Local Limited Partnerships, excluding the Combined Entity, in which the Fund had
invested as of September 30, 1996 is as follows:
Summarized Balance Sheets - June 30, 1996 (Unaudited)
Assets:
Investment property, net $ 78,500,120
Current assets 1,745,600
Other assets 5,455,826
------------
Total Assets $ 85,701,546
============
Liabilities and Partners' Equity:
Long-term debt $ 57,304,639
Current liabilities 3,169,861
Other debt 2,536,128
------------
Total Liabilities 63,010,628
Partners' Equity 22,690,918
------------
Total Liabilities and Partners' Equity $ 85,701,546
============
Summarized Income Statements - For the six
months ended June 30, 1996 (Unaudited)
Rental and other revenue $ 5,177,588
------------
Expenses:
Operating 3,009,526
Interest 1,914,160
Depreciation and amortization 1,507,613
------------
Total Expenses 6,431,299
Net Loss $ (1,253,711)
============
Fund's share of net loss $ (1,235,053)
============
Other Partners' share of net loss $ (18,658)
=============
3. Transactions with Affiliates
Boston Financial Property Management ("BFPM"), an affiliate of the Managing
General Partner, currently manages Pilot House and Preston Place, properties in
which the Fund has invested. Included in operating expenses in the summarized
income statements in Note 2 to the Financial Statements is $28,459 of fees
earned by BFPM for the six months ended June 30, 1996.
Lansing Management Company ("LMC"), an affiliate of the Managing General
Partner, currently manages Linden Square, a property in which the Fund has
invested. Included in operating expenses in the summarized income statements in
Note 2 to the financial statements is $16,720 of fees earned by LMC for the six
months ended June 30, 1996.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Notes to Combined Financial Statements (continued)
(Unaudited)
4. Other Investments
Other investments consists of the aggregate cost of the Treasury STRIPS
purchased by the Fund for the benefit of the Class B Limited Partners. The
amortized cost and current fair value at September 30, 1996 is composed of the
following:
Aggregate cost of Treasury STRIPS $ 918,397
Accumulated accretion of
Original Issue Discount 357,120
----------
$1,275,517
==========
Maturity dates for the STRIPS held at September 30, 1996 range from February 15,
2007 to May 15, 2010 with a final maturity value of $3,290,000.
5. Commitments
At September 30, 1996, the Fund has committed to make future capital
contributions and pay future purchase price installments on its investments in
Local Limited Partnerships. These future payments are contingent upon the
achievement of certain criteria as set forth in the Local Limited Partnership
Agreements and total $400,000.
6. Liquidation of Interests in Local Limited Partnerships
As previously reported, the Managing General Partner has transferred all of the
assets of two of the Texas Partnerships (Tamaric and Northwest) subject to their
liabilities to unaffiliated entities. The transfers were effective May 31, 1996.
The Managing General Partner of the Fund has executed an agreement to sell the
general partner interest in the remaining Texas Partnership (Leatherwood) to an
unaffiliated buyer. This property will be restructured into a new partnership in
which the Fund will retain a limited partner interest for a period of time
expected to be about twelve months. During this period, investors will continue
to receive tax credits from the property.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Notes to Combined Financial Statements (continued)
(Unaudited)
7. Supplemental Combining Schedules
Balance Sheets
<TABLE>
<CAPTION>
Boston Financial
Tax Credit Combined
Fund Plus (A) Entity (B) Eliminations Combined
Assets
Current assets:
<S> <C> <C> <C> <C>
Cash and cash equivalents $ 167,864 $ 22,554 $ -- $ 190,418
Accounts receivable 8,492 3,876 (8,492) 3,876
Mortgagee escrow deposits -- 6,818 -- 6,818
Tenant security deposits -- 2,764 -- 2,764
Other current assets 12,072 1,341 -- 13,413
------------ ------------ ------------ ------------
Total current assets 188,428 37,353 (8,492) 217,289
Investments in Local Limited
Partnerships 20,944,943 -- (18,793) 20,926,150
Marketable securities, at fair value 1,142,118 -- -- 1,142,118
Other investments 1,275,517 -- -- 1,275,517
Organization costs, net 4,167 -- -- 4,167
Rental property at cost, net of
accumulated depreciation -- 530,356 -- 530,356
------------ ------------ ------------ ------------
Total Assets $ 23,555,173 $ 567,709 $ (27,285) $ 24,095,597
============ ============ ============ ============
Liabilities and Partners' Equity (Deficiency)
Current liabilities:
Accounts payable to affiliates $ 779,308 $ 9,064 $ (8,492) $ 779,880
Accounts payable and accrued
expenses 12,581 24,114 -- 36,695
Accrued interest -- 3,622 -- 3,622
Current portion of mortgage
notes payable -- 3,357 -- 3,357
Security deposits payable -- 2,399 -- 2,399
------------ ------------ ------------ ------------
Total current liabilities 791,889 42,556 (8,492) 825,953
Long term portion of mortgage
notes payable -- 506,623 -- 506,623
------------ ------------ ------------ ------------
Total Liabilities 791,889 549,179 (8,492) 1,332,576
------------ ------------ ------------ ------------
Minority interest in Local Limited
Partnership -- -- (263) (263)
------------ ------------ ------------ ------------
General, Initial and Investor
Limited Partners' Equity (Deficiency) 22,762,709 18,530 (18,530) 22,762,709
Net unrealized gains on
marketable securities 575 -- -- 575
------------ ------------ ------------ ------------
Total Partners' Equity (Deficiency) 22,763,284 18,530 (18,530) 22,763,284
------------ ------------ ------------ ------------
Total Liabilities and
Partners' Equity (Deficiency) $ 23,555,173 $ 567,709 $ (27,285) $ 24,095,597
============ ============ ============ ============
</TABLE>
(A) As of September 30, 1996
(B) As of June 30, 1996
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Notes to Combined Financial Statements (continued)
(Unaudited)
7. Supplemental Combining Schedules (continued)
Statements of Operations
For the Three Months Ended September 30, 1996
<TABLE>
<CAPTION>
Boston Financial
Tax Credit Combined
Fund Plus (A) Entity (B) Eliminations Combined
Revenue:
<S> <C> <C> <C> <C>
Rental $ -- $ 12,251 $ -- $ 12,251
Investment 16,348 -- -- 16,348
Other 10,656 766 -- 11,422
--------- --------- --------- ---------
Total Revenue 27,004 13,017 -- 40,021
--------- --------- --------- ---------
Expenses:
Asset management fees, related party 48,338 -- -- 48,338
General and administrative 46,753 -- -- 46,753
Rental operations, exclusive of
depreciation -- 21,385 -- 21,385
Property management fees,
related party -- 1,586 -- 1,586
Interest -- 3,361 -- 3,361
Depreciation -- 228 -- 228
Amortization 10,852 -- -- 10,852
--------- --------- --------- ---------
Total Expenses 105,943 26,560 -- 132,503
--------- --------- --------- ---------
Net loss before equity in losses of
Local Limited Partnerships and
accretion of original issue discount (78,939) (13,543) -- (92,482)
Equity in losses of
Local Limited Partnerships (633,838) -- 13,408 (620,430)
Minority interest in loss of
Local Limited Partnership -- -- 135 135
--------- --------- --------- ---------
Net Loss before accretion of
Original Issue Discount (712,777) (13,543) 13,543 (712,777)
Accretion of Original Issue Discount 24,615 -- -- 24,615
--------- --------- --------- ---------
Net Loss $(688,162) $ (13,543) $ 13,543 $(688,162)
========= ========= ========= =========
</TABLE>
(A) For the three months ended September 30, 1996. (B) For the three months
ended June 30, 1996.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Notes to Combined Financial Statements (continued)
(Unaudited)
7. Supplemental Combining Schedules (continued)
Statements of Operations
For the Six Months Ended September 30, 1996
<TABLE>
<CAPTION>
Boston Financial
Tax Credit Combined
Fund Plus (A) Entity (B) Eliminations Combined
Revenue:
<S> <C> <C> <C> <C>
Rental $ -- $ 34,649 $ -- $ 34,649
Investment 31,710 -- -- 31,710
Other 41,419 1,737 -- 43,156
----------- ----------- ----------- -----------
Total Revenue 73,129 36,386 -- 109,515
----------- ----------- ----------- -----------
Expenses:
Asset management fees, related party 92,697 -- -- 92,697
General and administrative 116,821 -- -- 116,821
Rental operations, exclusive of
depreciation -- 44,057 -- 44,057
Property management fees,
related party -- 3,385 -- 3,385
Interest -- 6,581 -- 6,581
Depreciation -- 10,790 -- 10,790
Amortization 21,705 -- -- 21,705
----------- ----------- ----------- -----------
Total Expenses 231,223 64,813 -- 296,036
----------- ----------- ----------- -----------
Net loss before equity in losses of
Local Limited Partnerships and
accretion of original issue discount (158,094) (28,427) -- (186,521)
Equity in losses of
Local Limited Partnerships (1,263,196) -- 28,143 (1,235,053)
Minority interest in loss of
Local Limited Partnership -- -- 284 284
----------- ----------- ----------- -----------
Net Loss before accretion of
Original Issue Discount (1,421,290) (28,427) 28,427 (1,421,290)
Accretion of Original Issue Discount 48,516 -- -- 48,516
----------- ----------- ----------- -----------
Net Loss $(1,372,774) $ (28,427) $ 28,427 $(1,372,774)
=========== =========== =========== ===========
</TABLE>
(A) For the six months ended September 30, 1996. (B) For the six months ended
June 30, 1996.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Notes to Combined Financial Statements (continued)
(Unaudited)
7. Supplemental Combining Schedules (continued)
Statements of Cash Flows
<TABLE>
<CAPTION>
Boston Financial
Tax Credit Combined
Fund Plus (A) Entity (B) Eliminations Combined
<S> <C> <C> <C> <C>
Net cash provided by (used for)
operating activities $ (83,778) $ 3,241 $ -- $ (80,537)
--------- --------- --------------- ---------
Cash flows from investing activities:
Investment in Local Limited
Partnership 18,929 -- -- 18,929
Purchases of marketable securities (421,444) -- -- (421,444)
Proceeds from sales and maturities
of marketable securities 95,093 -- -- 95,093
Payment of acquisition fees
and expenses (11,790) -- -- (11,790)
Cash distributions received from
Local Limited Partnerships 104,665 -- -- 104,665
Purchase of rental property
and equipment -- (3,689) -- (3,689)
--------- --------- --------------- ---------
Net cash used for investing activities (214,547) (3,689) -- (218,236)
--------- --------- --------------- ---------
Net decrease in cash and cash equivalents (298,325) (448) -- (298,773)
Cash and cash equivalents, beginning 466,189 23,002 -- 489,191
--------- --------- --------------- ---------
Cash and cash equivalents, ending $ 167,864 $ 22,554 $ -- $ 190,418
========= ========= =============== =========
</TABLE>
(A) For the six months ended September 30, 1996. (B) For the six months ended
June 30, 1996.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
At September 30, 1996, the Fund, including the Combined Entity, had cash and
cash equivalents of $190,418, compared with $489,191 at March 31, 1996. The
decrease is primarily attributable to purchases of marketable securities in
excess of proceeds from sales and maturities of marketable securities and net
cash used for operating activities. These decreases are partially offset by cash
distributions received from Local Limited Partnerships.
Under the terms of the Partnership Agreement, the Fund initially designated 4%
of the Adjusted Gross Proceeds (which generally means Gross Proceeds minus the
amounts committed to the acquisition of Treasury STRIPS) from the sale of Units
as a reserve for working capital of the Fund and contingencies related to the
ownership of Local Limited Partnership interests. The Managing General Partner
may increase or decrease such Reserves from time to time, as it deems
appropriate. Funds totaling approximately $266,000 have been withdrawn from the
Reserve Account to pay legal and other fees relating to various property issues.
This amount includes $263,000 relating to the Texas Partnerships. At September
30, 1996, approximately $890,000 of cash, cash equivalents and marketable
securities have been designated as Reserves. Management believes that the
investment income earned on the Reserves, along with cash distributions received
from Local Limited Partnerships, to the extent available, will be sufficient to
fund the Fund's ongoing operations. Reserves may be used to fund operating
deficits, if the Managing General Partner deems funding appropriate. If Reserves
are not adequate to cover Fund operations, the Fund will seek other funding
sources including but not limited to, the deferral of Asset Management Fees to
an affiliate of the General Partner or working with Local Limited Partnerships
to increase cash distributions.
At September 30, 1996, the Fund has committed to make future capital
contributions and pay future purchase price installments on its investments in
Local Limited Partnerships. These future payments are contingent upon the
achievement of certain criteria as set forth in the Local Limited Partnership
Agreements and total $400,000.
Since the Fund invests as a limited partner, the Fund has no contractual duty to
provide additional funds to Local Limited Partnerships beyond its specified
investment. Thus, at September 30, 1996, the Fund had no contractual or other
obligation to any Local Limited Partnership which had not been paid or provided
for, except as noted above. In the event a Local Limited Partnership encounters
operating difficulties requiring additional funds, the Fund might deem it in its
best interest to provide such funds, voluntarily, in order to protect its
investment. In addition to the $263,000 noted above, the Fund has also advanced
approximately $38,000 to the Texas Partnerships to fund operating deficits.
Cash Distributions
No cash distributions were made during the six months ended September 30, 1996.
It is not expected that cash available for distribution, if any, will be
significant during the 1996 calendar year. As funds from temporary investments
are paid to Local Limited Partnerships, interest earnings on those funds
decrease. Additionally, it is not expected that the Local Limited Partnerships
will distribute significant amounts of cash to the Fund in 1996 because such
amounts will be needed to fund property operating costs. In addition, many of
the properties benefit from some type of federal or state subsidy, and as a
consequence, are subject to restrictions on cash distributions.
Results of Operations
The Fund's results of operations for the three and six months ended September
30, 1996 resulted in net losses of $688,162 and $1,372,774, as compared to net
losses of $380,579 and $1,010,410, for the respective periods in 1995. The
increases in net loss are primarily attributable to an increase in equity in
losses of Local Limited Partnerships and a decrease in rental revenue. These
increases are offset by decreases in rental operation and interest expense
items. The increase in equity in losses of Local Limited Partnerships is a
result of an increase in recognized losses relating to certain Local Limited
Partnerships and repair expenditures made by one Local Limited Partnership
during the first half of 1996 for extensive repairs to three of the property's
buildings. The decrease in rental revenue and rental operation and interest
expenses is due to the exclusion of two of the Texas Partnerships' operations
which were previously combined. Please refer to the section entitled "Property
Discussions" for additional information.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Property Discussions
All of the properties owned by the Local Limited Partnerships in which the Fund
has invested have been completed. Operations at most properties are stable and a
majority of the properties are operating at break-even or generating operating
cash flow. In properties operating below break-even, the Local General Partners
are funding operating deficits through project expense loans, subordinated loans
or payments from operating escrows. In instances where the Local General
Partners have stopped funding deficits because their obligation to do so has
expired or otherwise, the Managing General Partner is working with the Local
General Partner to increase operating income, reduce expenses or refinance the
debt at a lower interest rate in order to improve cash flow.
As previously reported, the Managing General Partner has transferred all of the
assets of two of the Texas Partnerships (Tamaric and Northwest) subject to their
liabilities to unaffiliated entities. The transfers were effective May 31, 1996.
The Managing General Partner of the Fund has executed an agreement to sell the
general partner interest in the remaining Texas Partnership (Leatherwood) to an
unaffiliated buyer. This property will be restructured into a new partnership in
which the Fund will retain a limited partner interest for a period expected to
be about twelve months. During this period, investors will continue to receive
tax credits from the property. For tax purposes, these events will result in
both Section 1231 Gain and Cancellation of Indebtedness income. In addition, the
transfer of ownership will result in nominal amount of recapture of tax credits,
because the Texas Partnerships represent only 2% of the Partnership's tax
credits.
Capitol Park, located in Oklahoma City, Oklahoma, has been generating deficits
mainly due to low occupancy, deferred maintenance and high security costs. To
fund the deficits, the management agent has been deferring its fees and
reimbursement of other costs. However, there is a significant amount of funding
needed to address the property's various issues. An affiliate of the Managing
General Partner is actively working with the local general partner and lender to
resolve this property's financial problems. Should these negotiations prove
unsuccessful, it is unlikely that the Partnership will be able to retain its
interest in the property through 1997. Such an event would trigger recapture of
tax credits related to Capital Park for investors.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
PART II OTHER INFORMATION
Items 1-5 Not applicable
Item 6 Exhibits and reports on Form 8-K
(a)Exhibits - None
(b)Reports on Form 8-K - No reports on Form 8-K were filed
during the quarter ended September 30, 1996.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
SIGNATURE
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, thereunto duly authorized.
DATED: November 13, 1996 BOSTON FINANCIAL TAX CREDIT FUND PLUS,
A LIMITED PARTNERSHIP
By: Arch Street VI, Inc.,
its Managing General Partner
/s/Georgia Murray
Georgia Murray
A Managing Director, Treasurer
and Chief Financial Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> SEP-30-1996
<CASH> 190,418
<SECURITIES> 1,142,118
<RECEIVABLES> 3,876
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 22,995<F1>
<PP&E> 530,356
<DEPRECIATION> 000
<TOTAL-ASSETS> 24,095,597<F2>
<CURRENT-LIABILITIES> 825,953<F3>
<BONDS> 000
000
000
<COMMON> 000
<OTHER-SE> 22,763,284
<TOTAL-LIABILITY-AND-EQUITY> 24,095,597<F4>
<SALES> 000
<TOTAL-REVENUES> 109,515<F5>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 289,455<F6>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 6,581
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (1,372,774)<F7>
<EPS-PRIMARY> (38.02)
<EPS-DILUTED> 000
<FN>
<F1>Included in current assets: Tenant security deposits $2,764, Other current
assets $13,413 and Mortgagee escrow deposits $6,818.
<F2>Included in total assets: Investments in Local Limited Partnerships
$20,926,150, Other investments $1,275,517, Organization costs $4,167.
<F3>Current liabilities includes: Accounts payable to affiliates $779,880,
Accounts payable and accrued expenses $36,695, Accrued interest $3,622, Current
portion of mortgage notes payable $3,357 and Security deposits payable $2,399.
<F4>Included in Total Liabilities and Equity: $506,623 of long-term debt and
Minority interest in Local Limited Partnerships $(263)
<F5>Total revenue includes: Rental $34,649, Investment $31,710 and Other
$43,156.
<F6>Included in Other Expenses: Asset Management Fees $92,697, General
and Administrative $116,821, Property Management Fees $3,385, Rental
operations, exclusive of depreciation $44,057, Depreciation $10,790 and
Amortization $21,705.
<F7>Net loss reflects: Equity in losses of Local Limited Partnerships of
$(186,521), and minority interest in loss of Local Limited Partnerships $284
and Accretion of Original Issue Discount $48,516.
</FN>
</TABLE>
