August 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 June 30, 1996
File No. 0-22104
Gentlemen:
Pursuant to the requirements of Rule 901(d) of Regulation S-T, enclosed is one
copy of subject report.
Very truly yours,
/s/ Marie D. Reynolds
Marie D. Reynolds
Assistant Controller
QH2-10Q1.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 June 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 June 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 - June 30, 1996 (Unaudited)
and March 31, 1996 1
Combined Statements of Operations (Unaudited) -
For the Three Months Ended June 30, 1996 and 1995 2
Combined Statement of Changes in Partners' Equity (Deficiency)
(Unaudited) - For the Three Months Ended June 30, 1996 3
Combined Statements of Cash Flows (Unaudited) -
For the Three Months Ended June 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 12
PART II - OTHER INFORMATION
Items 1-6 14
SIGNATURE 15
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
COMBINED BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, March 31,
1996 1996
(Unaudited)
Assets
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 585,276 $ 489,191
Accounts receivable, net 6,611 22,188
Mortgagee escrow deposits 6,836 -
Tenant security deposits 1,677 -
Other current assets 12,634 13,080
-------------- -------------
Total current assets 613,034 524,459
Investments in Local Limited Partnerships, net of reserve
for valuation of $41,381 at March 31, 1996 (Note 2) 21,597,724 22,289,712
Marketable securities, at fair value (Note 1) 751,713 795,099
Other investments (Note 4) 1,250,902 1,227,001
Organization costs, net of accumulated amortization of
$43,333 and $40,833, respectively 6,667 9,167
Rental property at cost, net of accumulated depreciation 528,424 537,457
-------------- -------------
Total Assets $ 24,748,464 $ 25,382,895
============== =============
Liabilities and Partners' Equity (Deficiency)
Current liabilities:
Accounts payable to affiliates $ 740,415 $ 685,821
Accounts payable and accrued expenses 42,971 43,908
Accrued interest 3,622 3,622
Current portion of mortgage notes payable 2,769 2,181
Security deposits payable 1,677 2,025
-------------- -------------
Total current liabilities 791,454 737,557
Long term portion of mortgage notes payable 507,211 507,799
-------------- -------------
Total Liabilities 1,298,665 1,245,356
-------------- -------------
Minority interest in Local Limited Partnership (128) 21
-------------- -------------
Commitments (Note 5)
General, Initial and Investor Limited Partners' Equity (Deficiency) 23,450,871 24,135,483
Net unrealized gains (losses) on marketable securities (944) 2,035
-------------- -------------
Total Partners' Equity (Deficiency) 23,449,927 24,137,518
-------------- -------------
Total Liabilities and Partners' Equity (Deficiency) $ 24,748,464 $ 25,382,895
============== =============
</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 OPERATIONS
(Unaudited)
For the Three Months Ended June 30, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
------------- ---------
<S> <C> <C>
Revenue:
Rental $ 22,398 $ 58,359
Investment 15,362 12,039
Other 31,734 7,728
------------- -------------
Total Revenue 69,494 78,126
------------- -------------
Expenses:
Asset management fees, related party 44,359 44,769
General and administrative (includes reimbursements
to an affiliate in the amounts of $26,028 and
$22,317, respectively) 70,068 68,672
Rental operations, exclusive of depreciation 22,672 41,505
Property management fees, related party 1,799 1,810
Interest 3,220 28,407
Depreciation 10,562 9,254
Amortization 10,853 9,012
------------- -------------
Total Expenses 163,533 203,429
------------- -------------
Net loss before minority interest and equity in losses
of Local Limited Partnerships (94,039) (125,303)
Equity in losses of Local Limited Partnerships (614,623) (526,848)
Minority interest in loss of Local Limited Partnership 149 205
------------- -------------
Net loss before accretion of Original Issue Discount (708,513) (651,946)
Accretion of Original Issue Discount 23,901 22,115
------------- -------------
Net Loss $ (684,612) $ (629,831)
============= =============
Net Loss per Limited Partnership Unit:
Class A Unit (34,643 Units) $ (18.95) $ (17.44)
============= ==============
Class B Unit (3,290 Units) $ (6.38) $ (5.83)
============= ==============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
COMBINED STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
(Unaudited)
For the Three Months Ended June 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 (7,085) - (656,537) (44,891) - (708,513)
Accretion of Original
Issue Discount - - - 23,901 - 23,901
Net change in unrealized gains
on marketable securities
available for sale - - - - (2,979) (2,979)
--------- -------- ------------ ----------- ----------- ------------
Balance at June 30, 1996 $ (94,895) $ 5,000 $ 20,864,351 $ 2,676,415 $ (944) $ 23,449,927
========= ======== ============ =========== =========== ============
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 CASH FLOWS
(Unaudited)
For the Three Months Ended June 30, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
------------- ---------
<S> <C> <C>
Net cash used for operating activities $ (20,498) $ (19,875)
------------- ------------
Cash flows from investing activities:
Investments in Local Limited Partnerships - (107,000)
Purchases of marketable securities - (196,270)
Proceeds from sales and maturities of marketable securities 49,101 98,255
Payment of acquisition fees and expenses (11,790) -
Cash distributions received from Local
Limited Partnerships 80,801 74,680
Purchase of rental property and equipment (1,529) -
------------- ------------
Net cash provided by (used for) investing activities 116,583 (130,335)
------------- ------------
Net increase (decrease) in cash and cash equivalents 96,085 (150,210)
Cash and cash equivalents, beginning 489,191 373,535
------------- ------------
Cash and cash equivalents, ending $ 585,276 $ 223,325
============= ============
Supplemental disclosure of cash flow activity:
Cash paid for interest $ 3,220 $ -
============= ============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<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 $ 609,683 $ 1,830 $ (618) $ 610,895
Mortgage backed securities 28,722 - (1,033) 27,689
Other debt securities 114,252 - (1,123) 113,129
----------- --------- ---------- -----------
Marketable securities
at June 30, 1996 $ 752,657 $ 1,830 $ (2,774) $ 751,713
=========== ========= ========== ===========
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 June 30, 1996 are as follows:
<TABLE>
<CAPTION>
Fair
Cost Value
<S> <C> <C>
Due in less than one year $ 125,830 $ 125,761
Due in one year to five years 598,105 598,263
Mortgage backed securities 28,722 27,689
----------- -----------
$ 752,657 $ 751,713
=========== ===========
</TABLE>
<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 $49,000 and $98,000 for the three months
ended June 30, 1996 and 1995, respectively. Included in investment income are
gross gains of $8,790 and gross losses of $96 which were realized on these sales
in the three months ended June 30, 1996 and gross gains of $100 and gross losses
of $650 which were realized on these sales during the three months ended June
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 June 30, 1996:
<TABLE>
<CAPTION>
<S> <C>
Capital contributions paid to Local Limited Partnerships and purchase price paid
to withdrawing partners of Local Limited
Partnerships $ 28,211,807
Cumulative equity in losses of Local Limited Partnerships (7,456,965)
Cash distributions received from Local Limited Partnerships (215,483)
-------------
Investments in Local Limited Partnerships before adjustments 20,539,359
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,164,344
Accumulated amortization of acquisition fees and expenses (105,979)
-------------
Investments in Local Limited Partnerships $ 21,597,724
=============
</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 Local
Limited Partnerships, excluding the Combined Entity, in which the Fund had
invested as of June 30, 1996 is as follows:
<TABLE>
<CAPTION>
Summarized Balance Sheets - March 31, 1996 (Unaudited)
<S> <C>
Assets:
Investment property, net $ 79,011,613
Current assets 2,267,999
Other assets 5,655,065
-------------
Total Assets $ 86,934,677
=============
Liabilities and Partners' Equity:
Current liabilities $ 5,113,320
Long-term debt 55,761,511
Other debt 2,602,785
-------------
Total Liabilities 63,477,616
Partners' Equity 23,457,061
-------------
Total Liabilities and Partners' Equity $ 86,934,677
=============
Summarized Income Statements - For the three
months ended March 31, 1996 (Unaudited)
Rental and other revenue $ 2,586,226
-------------
Expenses:
Operating 1,504,634
Interest 957,176
Depreciation and amortization 748,797
-------------
Total Expenses 3,210,607
Net Loss $ (624,381)
=============
Fund's share of net loss $ (614,623)
=============
Other Partners' share of net loss $ (9,758)
=============
</TABLE>
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 $14,566 of fees
earned by BFPM for the three months ended March 31, 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 $11,280 of fees earned by LMC for the
three months ended March 31, 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 June 30, 1996 is composed of the
following:
Aggregate cost of Treasury STRIPS $ 918,397
Accumulated accretion of
Original Issue Discount 332,505
$ 1,250,902
Maturity dates for the STRIPS held at June 30, 1996 range from February 15, 2007
to May 15, 2010 with a final maturity value of $3,290,000.
5. Commitments
At June 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
<S> <C> <C> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 561,820 $ 23,456 $ - $ 585,276
Accounts receivable, net 8,492 6,611 (8,492) 6,611
Mortgagee escrow deposits - 6,836 - 6,836
Tenant security deposits - 1,677 - 1,677
Other current assets 12,634 - - 12,634
-------------- ------------ ------------ -------------
Total current assets 582,946 38,580 (8,492) 613,034
Investments in Local Limited
Partnerships 21,629,925 - (32,201) 21,597,724
Marketable securities, at fair value 751,713 - - 751,713
Other investments 1,250,902 - - 1,250,902
Organization costs, net 6,667 - - 6,667
Rental property at cost, net of
accumulated depreciation - 528,424 - 528,424
-------------- ------------ ------------ -------------
Total Assets $ 24,222,153 $ 567,004 $ (40,693) $ 24,748,464
============== ============ ============= =============
Liabilities and Partners' Equity (Deficiency)
Current liabilities:
Accounts payable to affiliates $ 738,616 $ 10,291 $ (8,492) $ 740,415
Accounts payable and accrued
expenses 33,610 9,361 - 42,971
Accrued interest - 3,622 - 3,622
Current portion of mortgage
notes payable - 2,769 - 2,769
Security deposits payable - 1,677 - 1,677
-------------- ------------ ------------ -------------
Total current liabilities 772,226 27,720 (8,492) 791,454
Long term portion of mortgage
notes payable - 507,211 - 507,211
-------------- ------------ ------------ -------------
Total Liabilities 772,226 534,931 (8,492) 1,298,665
-------------- ------------ ------------- -------------
Minority interest in Local Limited
Partnership - - (128) (128)
-------------- ------------ ------------ -------------
General, Initial and Investor
Limited Partners' Equity (Deficiency) 23,450,871 32,073 (32,073) 23,450,871
Net unrealized losses on
marketable securities (944) - - (944)
-------------- ------------ ------------ -------------
Total Partners' Equity (Deficiency) 23,449,927 32,073 (32,073) 23,449,927
-------------- ------------ ------------ -------------
Total Liabilities and
Partners' Equity (Deficiency) $ 24,222,153 $ 567,004 $ (40,693) $ 24,748,464
============== ============ ============ =============
(A) As of June 30, 1996
(B) As of March 31, 1996
</TABLE>
<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
<TABLE>
<CAPTION>
Boston Financial
Tax Credit Combined
Fund Plus (A) Entity (B) Eliminations Combined
<S> <C> <C> <C> <C>
Revenue:
Rental $ - $ 22,398 $ - $ 22,398
Investment 15,362 - - 15,362
Other 30,763 971 - 31,734
------------ ----------- ------------ -------------
Total Revenue 46,125 23,369 - 69,494
------------ ----------- ------------ -------------
Expenses:
Asset management fees, related party 44,359 - - 44,359
General and administrative 70,068 - - 70,068
Rental operations, exclusive of
depreciation - 22,672 - 22,672
Property management fees,
related party - 1,799 - 1,799
Interest - 3,220 - 3,220
Depreciation - 10,562 - 10,562
Amortization 10,853 - - 10,853
------------ ----------- ------------ -------------
Total Expenses 125,280 38,253 - 163,533
------------ ----------- ------------ -------------
Net loss before equity in losses of
Local Limited Partnerships and
accretion of original issue discount (79,155) (14,884) - (94,039)
Equity in losses of
Local Limited Partnerships (629,358) - 14,735 (614,623)
Minority interest in loss of
Local Limited Partnership - - 149 149
------------ ----------- ------------ -------------
Net Loss before accretion of
original issue discount (708,513) (14,884) 14,884 (708,513)
Accretion of original issue discount 23,901 - - 23,901
------------ ----------- ------------ -------------
Net loss $ (684,612) $ (14,884) $ 14,884 $ (684,612)
============ =========== ============ =============
(A) For the three months ended June 30, 1996.
(B) For the three months ended March 31, 1996.
</TABLE>
<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 $ (22,481) $ 1,983 $ - $ (20,498)
-------------- ------------ -------------- ----------------
Cash flows from investing activities:
Proceeds from sales and maturities
of marketable securities 49,101 - - 49,101
Payment of acquisition fees
and expenses (11,790) - - (11,790)
Cash distributions received from
Local Limited Partnerships 80,801 - - 80,801
Purchase of rental property
and equipment - (1,529) - (1,529)
-------------- ------------ -------------- -----------------
Net cash provided by (used for)
investing activities 118,112 (1,529) - 116,583
-------------- ------------ -------------- ----------------
Net increase in cash and
cash equivalents 95,631 454 - 96,085
Cash and cash equivalents, beginning 466,189 23,002 - 489,191
-------------- ------------ -------------- ----------------
Cash and cash equivalents, ending $ 561,820 $ 23,456 $ - $ 585,276
============== ============ ============== ================
(A) For the three months ended June 30, 1996.
(B) For the three months ended March 31, 1996.
</TABLE>
<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 June 30, 1996, the Fund, including the Combined Entity, had cash and cash
equivalents of $585,276, compared with $489,191 at March 31, 1996. The increase
is primarily attributable to proceeds received from sales of marketable
securities and cash distributions received from Local Limited Partnerships.
These inflows were offset by net cash used for operating activities and payment
of acquisition fees and expenses.
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 $256,000 have been withdrawn from the
Reserve Account to pay legal and other fees relating to various property issues.
This amount includes $253,000 relating to the Texas Partnerships. At June 30,
1996, approximately $865,000 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 June 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 June 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 $253,000 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 three months ended June 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 months ended June 30, 1996
resulted in a net loss of $684,612 as compared to a net loss of $629,831 for the
same period in 1995. The increase in net loss is primarily attributable to an
increase in equity in losses of Local Limited Partnerships and a decrease in
rental revenue. These increases were 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. 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 of time
expected to be at least 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 recapture of tax credits, since 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 and high security costs. To fund the deficits, the
management agent has been deferring its fees and reimbursement of other costs.
The Managing General Partner has been working with the Local General Partner on
a plan to help stabilize the property's operations and/or refinance the
property's underlying debt.
<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 June 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: August 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
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> JUN-30-1996
<CASH> 585,276
<SECURITIES> 751,713
<RECEIVABLES> 6,611
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 21,147<F1>
<PP&E> 528,424
<DEPRECIATION> 000
<TOTAL-ASSETS> 24,748,464<F2>
<CURRENT-LIABILITIES> 791,454<F3>
<BONDS> 000
000
000
<COMMON> 000
<OTHER-SE> 23,449,927
<TOTAL-LIABILITY-AND-EQUITY> 24,748,464<F4>
<SALES> 000
<TOTAL-REVENUES> 69,494<F5>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 160,313<F6>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 3,220
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (684,612)<F7>
<EPS-PRIMARY> (18.95)
<EPS-DILUTED> 000
<FN>
<F1>Included in current assets: Tenant security deposits $1,677, Other current
assets $12,634 and Mortgagee escrow deposits $6,836
<F2>Included in total assets: Investments in Local Limited Partnerships
$21,597,724, Other investments $1,250,902, Organization costs $6,667.
<F3>Current liabilities includes: Accounts payable to affiliates $740,415,
Accounts payable and accrued expenses $42,971, Accrued interest $3,622,
Current portion of mortgage notes payable $2,769 and Security deposits payable
$1,677.
<F4>Included in Total Liabilities and Equity: $507,211 of long-term debt and
Minority interest in Local Limited Partnerships $(128)
<F5>Total revenue includes: Rental $22,398, Investment $15,362 and
Other $31,734.
<F6>Included in Other Expenses: Asset Management fees $44,359, General and
Administrative $70,068, Property Management fees $1,799, Rental operations,
exclusive of depreciation $22,672, Depreciation $10,562 and Amortization
$10,853.
<F7>Net loss reflects: Equity in losses of Local Limited Partnerships of
$(614,623), and minority interest in loss of Local Limited Partnerships
$149 and Accretion of Original Issue Discount $23,901.
</FN>
</TABLE>
