February 12, 1997
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 December 31, 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/Veronica J. Curioso
Veronica J. Curioso
Assistant Controller
TCP-10Q3.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 December 31, 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 December 31, 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 - December 31, 1996 (Unaudited)
and March 31, 1996 1
Combined Statements of Operations (Unaudited) - For the
Three and Nine Months Ended December 31, 1996 and 1995 2
Combined Statement of Changes in Partners' Equity (Deficiency)
(Unaudited) - For the Nine Months Ended December 31, 1996 3
Combined Statements of Cash Flows (Unaudited) -
For the Nine Months Ended December 31, 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>
December 31, March 31,
1996 1996
(Unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 340,712 $ 489,191
Accounts receivable 5,754 22,188
Mortgagee escrow deposits 10,153 -
Tenant security deposits 3,489 -
Other current assets 11,780 13,080
-------------- -------------
Total current assets 371,888 524,459
Investments in Local Limited Partnerships, net of reserve
for valuation of $41,381 at March 31, 1996 (Note 2) 20,783,842 22,289,712
Marketable securities, at fair value (Note 1) 997,260 795,099
Other investments (Note 3) 1,300,636 1,227,001
Organization costs, net of accumulated amortization of
$48,333 and $40,833, respectively 1,667 9,167
Rental property at cost, net of accumulated depreciation 524,962 537,457
-------------- -------------
Total Assets $ 23,980,255 $ 25,382,895
============== =============
Liabilities and Partners' Equity (Deficiency)
Current liabilities:
Accounts payable to affiliates $ 817,187 $ 685,821
Accounts payable and accrued expenses 39,938 43,908
Accrued interest 3,622 3,622
Current portion of mortgage notes payable 3,944 2,181
Security deposits payable 3,576 2,025
-------------- -------------
Total current liabilities 868,267 737,557
Long term portion of mortgage notes payable 506,036 507,799
-------------- -------------
Total Liabilities 1,374,303 1,245,356
-------------- -------------
Minority interest in Local Limited Partnership (247) 21
-------------- -------------
Commitments (Note 4)
General, Initial and Investor Limited Partners' Equity (Deficiency) 22,603,118 24,135,483
Net unrealized gains on marketable securities 3,081 2,035
-------------- -------------
Total Partners' Equity (Deficiency) 22,606,199 24,137,518
-------------- -------------
Total Liabilities and Partners' Equity (Deficiency) $ 23,980,255 $ 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 and Nine Months Ended December 31, 1996 and 1995
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
December 31, December 31, December 31, December 31,
1996 1995 1996 1995
------------- ------------- ------------ ---------
<S> <C> <C> <C> <C>
Revenue:
Rental $ 32,894 $ 74,985 $ 67,543 $ 181,417
Investment 29,269 16,259 60,979 32,291
Other 3,449 20,066 46,605 72,348
----------- ------------ ------------ -------------
Total Revenue 65,612 111,310 175,127 286,056
----------- ------------ ------------ -------------
Expenses:
Asset management fees, related party 44,359 44,769 137,056 134,307
General and administrative (includes
reimbursements to an affiliate in the
in the amounts of $63,566 and
$64,793 in 1996 and 1995,
respectively) 29,090 77,268 145,911 193,473
Rental operations, exclusive of
depreciation 18,702 46,010 62,759 149,122
Property management fees, related party 2,730 - 6,115 -
Interest 5,222 47,529 11,803 138,446
Provision for valuation of investment
in Local Limited Partnership - 18 - 18
Depreciation 5,394 27,086 16,184 45,595
Amortization 10,948 14,360 32,653 32,395
----------- ------------ ------------ -------------
Total Expenses 116,445 257,040 412,481 693,356
----------- ------------ ------------ -------------
Net loss before minority interest
and equity in losses of Local
Limited Partnerships (50,833) (145,730) (237,354) (407,300)
Equity in losses of Local
Limited Partnerships (133,861) (564,261) (1,368,914) (1,358,658)
Minority interest in (income) losses
of Local Limited Partnerships (16) 267 268 934
----------- ------------ ------------ -------------
Net Loss before accretion of
Original Issue Discount (184,710) (709,724) (1,606,000) (1,765,024)
Accretion of Original Issue
Discount 25,119 23,243 73,635 68,133
----------- ------------ ------------ -------------
Net Loss $ (159,591) $ (686,481) $ (1,532,365) $ (1,696,891)
=========== ============ ============ =============
Net Income (Loss) per Limited
Partnership Unit:
Class A Unit (34,643 Units) $ (4.94) $ (18.98) $ (42.96) $ (47.21)
=========== ============ ============= =============
Class B Unit (3,290 Units) $ 4.08 $ (6.60) $ (8.55) $ (13.28)
============ ============ ============= =============
</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 Nine Months Ended December 31, 1996
<TABLE>
<CAPTION>
Investor Investor
Initial Limited Limited Net
General Limited Partners, Partners, Unrealized
Partners Partner Class A Class B Gains 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 (16,060) - (1,488,184) (101,756) - (1,606,000)
Accretion of Original
Issue Discount - - - 73,635 - 73,635
Net change in unrealized
gains on marketable
securities available
for sale (Note 1) - - - - 1,046 1,046
---------- -------- ------------ ----------- ---------- --------------
Balance at
December 31, 1996 $ (103,870) $ 5,000 $ 20,032,704 $ 2,669,284 $ 3,081 $ 22,606,199
========== ======== ============ =========== ========== ==============
</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 Nine Months Ended December 31, 1996 and 1995
<TABLE>
<CAPTION>
1996 1995
------------- ---------
<S> <C> <C>
Net cash used for operating activities $ (105,676) $ (123,468)
-------------- ------------
Cash flows from investing activities:
Investments in Local Limited Partnerships 18,929 (194,999)
Purchases of marketable securities (520,890) (1,212,358)
Proceeds from sales and maturities of marketable securities 369,973 1,635,612
Payment of acquisition fees and expenses (15,990) (1,805)
Cash distributions received from Local Limited Partnerships 108,864 95,232
Purchase of rental property and equipment (3,689) (39,532)
------------- ------------
Net cash provided by (used for) investing activities (42,803) 282,150
-------------- ------------
Net increase (decrease) in cash and cash equivalents (148,479) 158,682
Cash and cash equivalents, beginning 489,191 373,535
------------- ------------
Cash and cash equivalents, ending $ 340,712 $ 532,217
============= ============
Supplemental disclosure of cash flow activity:
Cash paid for interest $ 11,803 $ 53,337
============= ============
</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 $ 881,019 $ 5,294 $ (551) $ 885,762
Mortgage backed securities 75,476 - (1,508) 73,968
Other debt securities 37,684 6 (160) 37,530
----------- --------- ---------- -----------
Marketable securities
at December 31, 1996 $ 994,179 $ 5,300 $ (2,219) $ 997,260
=========== ========= ========== ===========
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 December 31, 1996 are as follows:
<TABLE>
<CAPTION>
Fair
Cost Value
<S> <C> <C>
Due in less than one year $ 647,908 $ 651,192
Due in one year to five years 270,795 272,100
Mortgage backed securities 75,476 73,968
----------- -----------
$ 994,179 $ 997,260
=========== ===========
</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 $370,000 and $1,636,000 for the nine
months ended December 31, 1996 and 1995, respectively. Included in investment
income are gross gains of $50,412 and gross losses of $214 which were realized
on these sales during the nine months ended December 31, 1996 and gross gains of
$480 and gross losses of $19,367 which were realized on these sales during the
nine months ended December 31, 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 December 31, 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 (8,211,256)
Cash distributions received from Local Limited Partnerships (243,546)
-------------
Investments in Local Limited Partnerships before adjustments 19,738,076
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,168,545
Accumulated amortization of acquisition fees and expenses (122,779)
-------------
Investments in Local Limited Partnerships $ 20,783,842
=============
</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 December 31, 1996 is as follows:
Summarized Balance Sheets - September 30, 1996 (Unaudited)
<TABLE>
<CAPTION>
<S> <C>
Assets:
Investment property, net $ 77,393,458
Current assets 2,432,325
Other assets 5,490,193
-------------
Total Assets $ 85,315,976
=============
Liabilities and Partners' Equity:
Long-term debt $ 56,833,778
Current liabilities 3,411,694
Other debt 3,189,976
-------------
Total Liabilities 63,435,448
Partners' Equity 21,880,528
-------------
Total Liabilities and Partners' Equity $ 85,315,976
=============
Summarized Income Statements - For the nine
months ended September 30, 1996 (Unaudited)
Rental and other revenue $ 8,149,909
-------------
Expenses:
Operating 4,384,849
Interest 2,928,287
Depreciation and amortization 2,283,896
-------------
Total Expenses 9,597,032
Net Loss $ (1,447,123)
=============
Fund's share of net loss $ (1,368,914)
=============
Other Partners' share of net loss $ (78,209)
=============
</TABLE>
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Notes to Combined Financial Statements (continued)
(Unaudited)
3. 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 December 31, 1996 is composed of the
following:
<TABLE>
<CAPTION>
<S> <C>
Aggregate cost of Treasury STRIPS $ 918,397
Accumulated accretion of Original Issue Discount 382,239
-----------
$ 1,300,636
</TABLE>
Maturity dates for the STRIPS held at December 31, 1996 range from February 15,
2007 to May 15, 2010 with a final maturity value of $3,290,000.
4. Commitments
At December 31, 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.
5. 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 is working to sell the general partner
interest in the remaining Texas Partnership (Leatherwood) to an unaffiliated
buyer. In the meantime, 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)
6. 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 $ 319,297 $ 21,415 $ - $ 340,712
Accounts receivable 8,492 5,754 (8,492) 5,754
Mortgagee escrow deposits - 10,153 - 10,153
Tenant security deposits - 3,489 - 3,489
Other current assets 11,474 306 - 11,780
-------------- ------------ ------------ -------------
Total current assets 339,263 41,117 (8,492) 371,888
Investments in Local Limited
Partnerships 20,804,207 - (20,365) 20,783,842
Marketable securities, at fair value 997,260 - - 997,260
Other investments 1,300,636 - - 1,300,636
Organization costs, net 1,667 - - 1,667
Rental property at cost, net of
accumulated depreciation - 524,962 - 524,962
-------------- ------------ ------------ -------------
Total Assets $ 23,443,033 $ 566,079 $ (28,857) $ 23,980,255
============== ============ ============= =============
Liabilities and Partners' Equity (Deficiency)
Current liabilities:
Accounts payable to affiliates $ 816,173 $ 9,506 $ (8,492) $ 817,187
Accounts payable and accrued
expenses 20,661 19,277 - 39,938
Accrued interest - 3,622 - 3,622
Current portion of mortgage
notes payable - 3,944 - 3,944
Security deposits payable - 3,576 - 3,576
-------------- ------------ ------------ -------------
Total current liabilities 836,834 39,925 (8,492) 868,267
Long term portion of mortgage
notes payable - 506,036 - 506,036
-------------- ------------ ------------ -------------
Total Liabilities 836,834 545,961 (8,492) 1,374,303
-------------- ------------ ------------ -------------
Minority interest in Local Limited
Partnership - - (247) (247)
-------------- ------------ ------------ -------------
General, Initial and Investor
Limited Partners' Equity (Deficiency) 22,603,118 20,118 (20,118) 22,603,118
Net unrealized gains on
marketable securities 3,081 - - 3,081
-------------- ------------ ------------ -------------
Total Partners' Equity (Deficiency) 22,606,199 20,118 (20,118) 22,606,199
-------------- ------------ ------------ -------------
Total Liabilities and
Partners' Equity (Deficiency) $ 23,443,033 $ 566,079 $ (28,857) $ 23,980,255
============== ============ ============ =============
</TABLE>
(A) As of December 31, 1996
(B) As of September 30, 1996
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Notes to Combined Financial Statements (continued)
(Unaudited)
6. Supplemental Combining Schedules (continued)
Statements of Operations
For the Three Months Ended December 31, 1996
<TABLE>
<CAPTION>
Boston Financial
Tax Credit Combined
Fund Plus (A) Entity (B) Eliminations Combined
<S> <C> <C> <C> <C>
Revenue:
Rental $ - $ 32,894 $ - $ 32,894
Investment 29,269 - - 29,269
Other 2,707 742 - 3,449
------------ ----------- ------------ -------------
Total Revenue 31,976 33,636 - 65,612
------------ ----------- ------------ -------------
Expenses:
Asset management fees, related party 44,359 - - 44,359
General and administrative 29,090 - - 29,090
Rental operations, exclusive of
depreciation - 18,702 - 18,702
Property management fees,
related party - 2,730 - 2,730
Interest - 5,222 - 5,222
Depreciation - 5,394 - 5,394
Amortization 10,948 - - 10,948
------------ ----------- ------------ -------------
Total Expenses 84,397 32,048 - 116,445
------------ ----------- ------------ -------------
Net income (loss) before equity in losses of
Local Limited Partnerships and
accretion of Original Issue Discount (52,421) 1,588 - (50,833)
Equity in losses of
Local Limited Partnerships (132,289) - (1,572) (133,861)
Minority interest in income of
Local Limited Partnership - - (16) (16)
------------ ----------- ------------- --------------
Net Income (Loss) before accretion of
Original Issue Discount (184,710) 1,588 (1,588) (184,710)
Accretion of Original Issue Discount 25,119 - - 25,119
------------ ----------- ------------ -------------
Net Income (Loss) $ (159,591) $ 1,588 $ (1,588) $ (159,591)
============ =========== ============ =============
</TABLE>
(A) For the three months ended December 31, 1996.
(B) For the three months ended September 30, 1996.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Notes to Combined Financial Statements (continued)
(Unaudited)
6. Supplemental Combining Schedules (continued)
Statements of Operations
For the Nine Months Ended December 31, 1996
<TABLE>
<CAPTION>
Boston Financial
Tax Credit Combined
Fund Plus (A) Entity (B) Eliminations Combined
<S> <C> <C> <C> <C>
Revenue:
Rental $ - $ 67,543 $ - $ 67,543
Investment 60,979 - - 60,979
Other 44,126 2,479 - 46,605
------------ ----------- ------------ -------------
Total Revenue 105,105 70,022 - 175,127
------------ ----------- ------------ -------------
Expenses:
Asset management fees, related party 137,056 - - 137,056
General and administrative 145,911 - - 145,911
Rental operations, exclusive of
depreciation - 62,759 - 62,759
Property management fees,
related party - 6,115 - 6,115
Interest - 11,803 - 11,803
Depreciation - 16,184 - 16,184
Amortization 32,653 - - 32,653
------------ ----------- ------------ -------------
Total Expenses 315,620 96,861 - 412,481
------------ ----------- ------------ -------------
Net loss before equity in losses of
Local Limited Partnerships and
accretion of Original Issue Discount (210,515) (26,839) - (237,354)
Equity in losses of
Local Limited Partnerships (1,395,485) - 26,571 (1,368,914)
Minority interest in losses of
Local Limited Partnership - - 268 268
------------ ----------- ------------ -------------
Net Loss before accretion
of Original Issue Discount (1,606,000) (26,839) 26,839 (1,606,000)
Accretion of Original Issue Discount 73,635 - - 73,635
------------ ----------- ------------ -------------
Net Loss $ (1,532,365) $ (26,839) $ 26,839 $ (1,532,365)
============ =========== ============ =============
</TABLE>
(A) For the nine months ended December 31, 1996.
(B) For the nine months ended September 30, 1996.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Notes to Combined Financial Statements (continued)
(Unaudited)
6. 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 $ (107,778) $ 2,102 $ - $ (105,676)
------------ ------------ -------------- ----------------
Cash flows from investing activities:
Investment in Local Limited
Partnership 18,929 - - 18,929
Purchases of marketable securities (520,890) - - (520,890)
Proceeds from sales and maturities
of marketable securities 369,973 - - 369,973
Payment of acquisition fees
and expenses (15,990) - - (15,990)
Cash distributions received from
Local Limited Partnerships 108,864 - - 108,864
Purchase of rental property
and equipment - (3,689) - (3,689)
------------ ------------ -------------- -----------------
Net cash used for investing activities (39,114) (3,689) - (42,803)
------------ ------------ -------------- ----------------
Net decrease in cash and cash equivalents (146,892) (1,587) - (148,479)
Cash and cash equivalents, beginning 466,189 23,002 - 489,191
------------ ------------ -------------- ----------------
Cash and cash equivalents, ending $ 319,297 $ 21,415 $ - $ 340,712
============ ============ ============== ================
</TABLE>
(A) For the nine months ended December 31, 1996.
(B) For the nine months ended September 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 December 31, 1996, the Fund, including the Combined Entity, had cash and cash
equivalents of $340,712, 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 $267,000 have been withdrawn from the
Reserve Account to pay legal and other fees relating to various property issues.
This amount includes approximately $264,000 relating to the Texas Partnerships.
At December 31, 1996, approximately $896,000 of cash, cash equivalents and
marketable securities has 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 December 31, 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 December 31, 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 $264,000 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 nine months ended December 31, 1996.
Results of Operations
The Fund's results of operations for the three and nine months ended December
31, 1996 resulted in net losses of $159,591 and $1,532,365, respectively, as
compared to net losses of $686,481 and $1,696,891 for the respective periods in
1995. The decreases in net loss for the three and nine month periods were
primarily attributable to decreases in general and administrative, interest and
rental operations expenses, coupled with an increase in investment revenue.
These decreases to net loss were slightly offset by a decrease in rental
revenue. The decrease in general and administrative expenses was due to a
decrease in expenses paid on behalf of the Texas Partnerships. The decreases in
interest and rental operations expenses and rental revenue were due to the
exclusion of two of the Texas Partnership's operations which were previously
combined. Please refer to the section entitled "Property Discussions" for
additional information. The increase in investment interest was attributable to
favorable market conditions for the sale of marketable securities.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Results of Operations (continued)
In addition to the aforementioned factors, the three month period experienced a
decrease in equity in losses of Local Limited Partnerships. This decrease was
the result of the capitalization of extensive repair expenditures during the
third quarter, which were previously expensed, which were made by one Local
Limited Partnership during 1996.
Property Discussions
All of the properties owned by the Local Limited Partnerships in which the Fund
has invested have been completed and achieved initial lease-up. Operations at
most properties are stable and a majority of the properties are operating at
break-even or generating operating cash flow. However, a few properties are
experiencing significant issues. In most cases, 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
service in order to improve property 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 is working to sell the
general partner interest in the remaining Texas Partnership (Leatherwood) to an
unaffiliated buyer. In the meantime, 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 for the partners, most
of which will be reported in 1996. In addition, the transfer of ownership will
result in a nominal amount of tax credit recapture because the Texas
Partnerships represent only 2% of the Partnership's tax credits.
Operating difficulties continue at Capitol Park, located in Oklahoma City,
Oklahoma, as a result of low occupancy, deferred maintenance and security
issues. Deficits are currently being funded by the management agent. Meanwhile,
an affiliate of the Managing General Partner is negotiating with the Local
General Partner and lender to resolve the significant problems at the property
and to identify additional capital resources. Pending the outcome of these
negotiations, it appears unlikely that the Partnership will be able to retain
its interest in the property through 1997. Such an event would trigger recapture
of one third of the tax credit benefits, plus interest, investors have received
to date.
Broadway Tower, located in Revere, Massachusetts, continues to suffer from
operating deficits resulting from low occupancy. Recently, the Local General
Partner successfully negotiated with the local housing authority for Section 8
rent increases, and has begun implementing plans to decrease expenses associated
with tenant turnover and maintenance contracts. Deficits are currently being
funded by the management agent.
Despite a 1994 debt restructure, Bancroft Street Apartments, located in Toledo,
Ohio, is experiencing operating deficits primarily due to occupancy issues and
deteriorating market conditions. The management agent, which is currently
funding the deficits, is addressing these problems by enhancing tenant screening
and marketing efforts, as well as implementing on-site tenant social programs.
<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 December 31, 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: February 12, 1997 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> 9-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> DEC-31-1996
<CASH> 340,712
<SECURITIES> 997,260
<RECEIVABLES> 5,754
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 25,422<F1>
<PP&E> 524,962
<DEPRECIATION> 000
<TOTAL-ASSETS> 23,980,255<F2>
<CURRENT-LIABILITIES> 868,267<F3>
<BONDS> 000
000
000
<COMMON> 000
<OTHER-SE> 22,606,199
<TOTAL-LIABILITY-AND-EQUITY> 23,980,255<F4>
<SALES> 000
<TOTAL-REVENUES> 175,127<F5>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 400,678<F6>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 11,803
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (1,532,365)<F7>
<EPS-PRIMARY> (42.96)
<EPS-DILUTED> 000
<FN>
<F1>Included in current assets: Tenant security deposits $3,489, Other
current assets $11,780 and Mortgagee escrow deposits $10,153.
<F2>Included in total assets: Investments in Local Limited Partnerships
$20,783,842, Other investments $1,300,636, Organization costs $1,667.
<F3>Current liabilities includes: Accounts payable to affiliates $817,187,
Accounts payable and accrued expenses $39,938, Accrued interest $3,622, Current
portion of mortgage notes payable $3,944 and Security deposits payable $3,576.
<F4>Included in Total Liabilities and Equity: $506,036 of long-term debt and
Minority interest in Local Limited Partnerships $(247)
<F5>Total revenue includes: Rental $67,543, Investment $60,979 and Other
$46,605.
<F6>Included in Other Expenses: Asset Management Fees $137,056, General and
Administrative $145,911, Property Management Fees $6,115,Rental operations,
exclusive of depreciation $62,759, Depreciation $16,184 and Amortization
$32,653.
<F7>Net loss reflects: Equity in losses of Local Limited Partnerships of
$(1,368,914), and minority interest in loss of Local Limited Partnerships
$268 and Accretion of Original Issue Discount $73,635.
</FN>
</TABLE>
