November 14, 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 September 30, 1997
File No. 0-22104
Gentlemen:
Pursuant to the requirements of Section 15(d) of the Securities Exchange Act of
1934, there is filed herewith one copy of subject report.
Very truly yours,
/s/Patricia Olsen-Goldberg
Patricia Olsen-Goldberg
Controller
QH2-10Q2.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, 1997
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, 1997 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, 1997 (Unaudited)
and March 31, 1997 1
Combined Statements of Operations (Unaudited) -
For the Six Months Ended September 30, 1997 and 1996 2
Combined Statement of Changes in Partners' Equity (Deficiency)
(Unaudited) - For the Six Months Ended September 30, 1997 3
Combined Statements of Cash Flows (Unaudited) -
For the Six Months Ended September 30, 1997 and 1996 4
Notes to Combined Financial Statements (Unaudited) 6
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
<TABLE>
COMBINED BALANCE SHEETS
<CAPTION>
September 30, March 31,
1997 1997
(Unaudited)
Assets
<S> <C> <C>
Cash and cash equivalents $ 321,040 $ 381,519
Restricted cash (Note 1) 152,799 -
Marketable securities, at fair value 1,270,086 998,695
Other investments (Note 2) 1,378,157 1,325,714
Accounts receivable - 7,943
Mortgagee escrow deposits - 13,345
Tenant security deposits - 3,639
Investments in Local Limited Partnerships (Note 1) 18,700,324 19,511,417
Rental property at cost, net of accumulated depreciation - 727,397
Other assets 26,044 19,505
-------------- -------------
Total Assets $ 21,848,450 $ 22,989,174
============== =============
Liabilities and Partners' Equity
Accounts payable to affiliates $ 953,946 $ 881,741
Accounts payable and accrued expenses 14,508 51,702
Accrued interest - 1,743
Mortgage notes payable - 739,994
Security deposits payable - 3,639
-------------- -------------
Total Liabilities 968,454 1,678,819
-------------- -------------
Minority interest in Local Limited Partnership - (685)
-------------- -------------
Commitments (Note 3)
General, Initial and Investor Limited Partners' Equity 20,873,312 21,312,631
Net unrealized gain (loss) on marketable securities 6,684 (1,591)
-------------- -------------
Total Partners' Equity 20,879,996 21,311,040
-------------- -------------
Total Liabilities and Partners' Equity $ 21,848,450 $ 22,989,174
============== =============
</TABLE>
The accompanying notes are an integral part of these combined
financial statements.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
COMBINED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three and Six Months Ended September 30, 1997 and 1996
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
September 30, September 30, September 30, September 30,
1997 1996 1997 1996
------------- ------------- ------------ ---------
Revenue:
<S> <C> <C> <C> <C>
Rental $ 29,231 $ 12,251 $ 57,876 $ 34,649
Investment 24,243 16,348 45,494 31,710
Accretion of Original Issue Discount 26,618 24,615 52,443 48,516
Other (65,914) 11,422 18,276 43,156
----------- ------------ ------------ -------------
Total Revenue 14,178 64,636 174,089 158,031
----------- ------------ ------------ -------------
Expenses:
Asset management fees, related party 42,663 48,338 85,325 92,697
General and administrative (includes
reimbursements to an affiliate in the
in the amounts of $49,225 and
$48,648 in 1997 and 1996,
respectively) 41,150 46,753 96,575 116,821
Rental operations, exclusive of
depreciation 19,819 21,385 42,535 44,057
Property management
fees, related party 2,782 1,586 5,538 3,385
Interest 6,265 3,361 13,320 6,581
Bad debt expense 32,465 - 32,465 -
Depreciation 23,394 228 35,790 10,790
Amortization 8,051 10,852 16,102 21,705
----------- ------------ ------------ -------------
Total Expenses 176,589 132,503 327,650 296,036
----------- ------------ ------------ -------------
Loss before equity in losses
of Local Limited Partnerships,
minority interest,
loss on liquidation of interest
in Local Limited Partnership and
extraordinary item (162,411) (67,867) (153,561) (138,005)
Equity in losses of Local
Limited Partnerships (279,971) (620,430) (340,253) (1,235,053)
Minority interest in loss of
Local Limited Partnership (822) 135 (685) 284
Loss on liquidation of interest in
Local Limited Partnership (Note 4) (4,182) - (4,182) -
----------- ------------ ------------ -------------
Net Loss before extraordinary item (447,386) (688,162) (498,681) (1,372,774)
Extraordinary gain on cancellation
of indebtedness (Note 4) 59,362 - 59,362 -
----------- ------------ ------------ -------------
Net Loss $ (388,024) $ (688,162) $ (439,319) $ (1,372,774)
=========== ============ ============ =============
</TABLE>
The accompanying notes are an integral part of these combined
financial statements.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
COMBINED STATEMENTS OF OPERATIONS(continued)
(Unaudited)
For the Three and Six Months Ended September 30, 1997 and 1996
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
September 30, September 30, September 30, September 30,
1997 1996 1997 1996
------------- ------------- ------------ ---------
Net Loss before extraordinary item per
Limited Partnership Unit:
<S> <C> <C> <C> <C>
Class A Unit (34,643 Units) $ (12.68) $ (19.07) $ (14.74) $ (38.02)
============= ============ =========== ============
Class B Unit (3,290 Units) $ (1.03) $ (6.25) $ 5.33 $ (12.63)
============= ============ =========== ============
Extraordinary item per Limited
Partnership Unit :
Class A Unit (34,643 Units) $ 1.59 $ - $ 1.59 $ -
============= ============= ============ =============
Class B Unit (3,290 Units) $ 1.14 $ - $ 1.14 $ -
============= ============= ============ =============
Net Loss per Limited Partnership Unit:
Class A Unit (34,643 Units) $ (11.09) $ (19.07) $ (13.15) $ (38.02)
============= ============ =========== ============
Class B Unit (3,290 Units) $ 0.11 $ (6.25) $ 6.47 $ (12.63)
============= ============ =========== ============
</TABLE>
The accompanying notes are an integral part of these combined
financial statements.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
COMBINED STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
For the Six Months Ended September 30, 1997
(Unaudited)
<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, 1997 $(117,026) $ 5,000 $ 18,813,649 $ 2,611,008 $ (1,591) $ 21,311,040
Net Income (Loss) (4,918) - (455,686) 21,285 - (439,319)
Net change in net unrealized losses
on marketable securities
available for sale - - - - 8,275 8,275
---------- -------- ------------ ----------- ----------- ------------
Balance at September 30, 1997 $ (121,944) $ 5,000 $ 18,357,963 $ 2,632,293 $ 6,684 $ 20,879,996
========== ======== ============ =========== =========== ============
</TABLE>
The accompanying notes are an integral part of these combined
financial statements.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
<TABLE>
COMBINED STATEMENTS OF CASH FLOWS
For the Six Months Ended September 30, 1997 and 1996
(Unaudited)
<CAPTION>
1997 1996
------------- ---------
<S> <C> <C>
Net cash used for operating activities $ (82,899) $ (80,537)
------------- -------------
Cash flows from investing activities:
Investment in Local Limited Partnership (59,640) 18,929
Return of investment in Local Limited Partnership 463,864 -
Advances to affiliate (23,973) -
Purchases of marketable securities (946,626) (421,444)
Proceeds from sales and maturities of marketable securities 684,464 95,093
Restricted cash (152,799) -
Payment of acquisition fees and expenses - (11,790)
Cash distributions received from Local
Limited Partnerships 57,130 104,665
Purchase of rental property and equipment - (3,689)
------------- -------------
Net cash provided by (used for) investing activities 22,420 (218,236)
------------- -------------
Net decrease in cash and cash equivalents (60,479) (298,773)
Cash and cash equivalents, beginning 381,519 489,191
------------- -------------
Cash and cash equivalents, ending $ 321,040 $ 190,418
============= =============
Supplemental disclosure of cash flow activity:
Cash paid for interest $ 13,320 $ 6,581
============= =============
</TABLE>
The accompanying notes are an integral part of these combined
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 Partnership's 10-K for the year
ended March 31, 1997. In the opinion of management, these financial statements
include all adjustments, consisting only of normal recurring adjustments,
necessary to present fairly the Partnership's financial position and results of
operations. The results of operations for the periods may not be indicative of
the results to be expected for the year. Certain reclassifications have been
made to the prior period financial statements to conform to the current period
classifications.
1. 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%, 98.75% and 97.9% interest in Livingston
Arms, Metropolitan and New Garden Place, respectively. 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, 1997:
<TABLE>
<CAPTION>
<S> <C>
Capital contributions paid to Local Limited Partnerships and purchase price paid
to withdrawing partners of Local Limited
Partnerships $ 27,788,654
Cumulative equity in losses of Local Limited Partnerships (excluding
cumulative unrecognized losses of $1,773,103) (9,718,203)
Cash distributions received from Local Limited Partnerships (388,414)
-------------
Investments in Local Limited Partnerships before adjustments 17,682,037
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,163,661
Accumulated amortization of acquisition fees and expenses (145,374)
-------------
Investments in Local Limited Partnerships $ 18,700,324
=============
</TABLE>
The Fund's share of the net losses of the Local Limited Partnerships, excluding
the Combined Entity, for the six months ended September 30, 1997 is $988,259.
For the six months ended September 30, 1997, the Fund has not recognized
$658,804 of equity in losses relating to a Local Limited Partnership in which
cumulative equity in losses and cumulative distributions have exceeded its total
investment.
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. On September 23, 1997, the Managing General Partner
transferred all of the assets of the Combined Entity, Leatherwood, subject to
its liabilities, to an unaffiliated entity.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Notes to Combined Financial Statements (continued)
(Unaudited)
1. Investments in Local Limited Partnerships (continued)
The Fund has restricted cash in an escrow account to be used for future capital
contributions related to its investment in one Local Limited Partnership.
Interest earned on this deposit is payable to the Local General Partner. At
September 30, 1997, $3,444 is included in accounts payable to an affiliate.
2. 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, 1997 is composed of the
following:
Aggregate cost of Treasury STRIPS $ 918,397
Accumulated accretion of
Original Issue Discount 459,760
--------
$ 1,378,157
Maturity dates for the STRIPS held at September 30, 1997 range from
February 15, 2007 to May 15, 2010 with a
final maturity value of $3,290,000.
3. Commitments
At September 30, 1997, 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 approximately $804,000.
4. 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. On September 23, 1997, the Managing General Partner finalized the
transfer of the remaining property, Leatherwood. For financial reporting
purposes, loss on liquidation of interest in Local Limited Partnership of $4,182
and extraordinary gain on cancellation of indebtedness of $59,362 were
recognized in the period ended September 30, 1997 as a result of this transfer.
For tax purposes, this event will result in both Section 1231 Gain and
cancellation of indebtedness income for the partners, which will be reported on
the 1997 Schedule K-1 (filed in 1998). In addition, the transfer of ownership
will result in a nominal amount of tax credit recapture because Leatherwood
represents less than 1% of the Fund's tax credits.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Notes to Combined Financial Statements (continued)
(Unaudited)
5. Supplemental Combining Schedules
<TABLE>
Balance Sheets
<CAPTION>
Boston Financial
Tax Credit Combined
Fund Plus (A) Entity (B) Eliminations Combined
Assets
<S> <C> <C> <C> <C>
Cash and cash equivalents $ 321,040 $ - $ - $ 321,040
Restricted cash 152,799 - - 152,799
Marketable securities, at fair value 1,270,086 - - 1,270,086
Other investments 1,378,157 - - 1,378,157
Investments in Local Limited
Partnerships 18,700,324 - - 18,700,324
Other assets 26,044 - - 26,044
-------------- ------------ ------------ -------------
Total Assets $ 21,848,450 $ - $ - $ 21,848,450
============== ============ ============ =============
Liabilities and Partners' Equity
Accounts payable to affiliates $ 953,946 $ - $ - $ 953,946
Accounts payable and accrued
expenses 14,508 - - 14,508
-------------- ------------ ------------ -------------
Total Liabilities 968,454 - - 968,454
-------------- ------------ ------------ -------------
General, Initial and Investor
Limited Partners' Equity 20,873,312 - - 20,873,312
Net unrealized gain on
marketable securities 6,684 - - 6,684
-------------- ------------ ------------ -------------
Total Partners' Equity 20,879,996 - - 20,879,996
-------------- ------------ ------------ -------------
Total Liabilities and
Partners' Equity $ 21,848,450 $ - $ - $ 21,848,450
============== ============ ============ =============
</TABLE>
(A) As of September 30, 1997 (B) As of June 30, 1997
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Notes to Combined Financial Statements (continued)
(Unaudited)
5. Supplemental Combining Schedules (continued)
<TABLE>
Statements of Operations
For the Three Months Ended September 30, 1997
<CAPTION>
Boston Financial
Tax Credit Combined
Fund Plus (A) Entity (B) Eliminations Combined
Revenue:
<S> <C> <C> <C> <C>
Rental $ - $ 29,231 $ - $ 29,231
Investment 24,243 - - 24,243
Accretion of Original Issue Discount 26,618 - - 26,618
Other (66,938) 1,024 - (65,914)
------------ ----------- ------------ -------------
Total Revenue (16,077) 30,255 - 14,178
------------ ----------- ------------ -------------
Expenses:
Asset management fees, related party 42,663 - - 42,663
General and administrative 41,150 - - 41,150
Rental operations, exclusive of
depreciation - 19,819 - 19,819
Property management fees,
related party - 2,782 - 2,782
Interest - 6,265 - 6,265
Bad debt expense 32,465 - - 32,465
Depreciation - 23,394 - 23,394
Amortization 8,051 - - 8,051
------------ ----------- ------------ -------------
Total Expenses 124,329 52,260 - 176,589
------------ ----------- ------------ -------------
Loss before equity in losses of Local
Limited Partnerships, minority interest,
loss on liquidation of interest in Local
Limited Partnership and
extraordinary item (140,406) (22,005) - (162,411)
Equity in losses of Local
Limited Partnerships (243,436) - (36,535) (279,971)
Minority interest in loss of
Local Limited Partnership - - (822) (822)
Loss on liquidation of interest in Local
Limited Partnership (4,182) - - (4,182)
------------ ----------- ------------ -------------
Net Loss before extraordinary item (388,024) (22,005) (37,357) (447,386)
Extraordinary gain on cancellation
of indebtedness - 59,362 - 59,362
------------ ----------- ------------ -------------
Net Income (Loss) $ (388,024) $ 37,357 $ (37,357) $ (388,024)
============ =========== ============ =============
</TABLE>
(A) For the three months ended September 30, 1997. (B) For the three months
ended June 30, 1997.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Notes to Combined Financial Statements (continued)
(Unaudited)
5. Supplemental Combining Schedules (continued)
<TABLE>
Statements of Operations
For the Six Months Ended September 30, 1997
<CAPTION>
Boston Financial
Tax Credit Combined
Fund Plus (A) Entity (B) Eliminations Combined
Revenue:
<S> <C> <C> <C> <C>
Rental $ - $ 57,876 $ - $ 57,876
Investment 45,494 - - 45,494
Accretion of Original Issue Discount 52,443 - - 52,443
Other 14,643 3,633 - 18,276
------------ ----------- ------------ -------------
Total Revenue 112,580 61,509 - 174,089
------------ ----------- ------------ -------------
Expenses:
Asset management fees, related party 85,325 - - 85,325
General and administrative 96,575 - - 96,575
Rental operations, exclusive of
depreciation - 42,535 - 42,535
Property management fees,
related party - 5,538 - 5,538
Interest - 13,320 - 13,320
Bad debt expense 32,465 - - 32,465
Depreciation - 35,790 - 35,790
Amortization 16,102 - - 16,102
------------ ----------- ------------ -------------
Total Expenses 230,467 97,183 - 327,650
------------ ----------- ------------ -------------
Loss before equity in losses of Local
Limited Partnerships, minority interest,
loss on liquidation of interest in Local
Limited Partnership and
extraordinary item (117,887) (35,674) - (153,561)
Equity in losses of Local
Limited Partnerships (317,250) - (23,003) (340,253)
Minority interest in loss of
Local Limited Partnership - - (685) (685)
Loss on liquidation of interest in Local
Limited Partnership (4,182) - - (4,182)
------------ ----------- ------------ -------------
Net Loss before extraordinary item (439,319) (35,674) (23,688) (498,681)
Extraordinary gain on cancellation
of indebtedness - 59,362 - 59,362
------------ ----------- ------------ -------------
Net Income (Loss) $ (439,319) $ 23,688 $ (23,688) $ (439,319)
============ =========== ============ =============
</TABLE>
(A) For the six months ended September 30, 1997. (B) For the six months ended
June 30, 1997.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
Notes to Combined Financial Statements (continued)
(Unaudited)
5. Supplemental Combining Schedules (continued)
<TABLE>
Statements of Cash Flows
<CAPTION>
Boston Financial
Tax Credit Combined
Fund Plus (A) Entity (B) Eliminations Combined
Net cash used for
<S> <C> <C> <C> <C>
operating activities $ (82,567) $ (332) $ - $ (82,899)
-------------- ------------ -------------- ----------------
Cash flows from investing activities:
Investment in Local Limited Partnership (59,640) - - (59,640)
Return of investment in
Local Limited Partnership 463,864 - - 463,864
Advances to affiliate (23,973) - - (23,973)
Purchases of marketable securities (946,626) - - (946,626)
Proceeds from sales and maturities
of marketable securities 684,464 - - 684,464
Restricted cash (152,799) - - (152,799)
Cash distributions received from
Local Limited Partnerships 57,130 - - 57,130
-------------- ------------ -------------- ----------------
Net cash provided by investing
activities 22,420 - - 22,420
-------------- ------------ -------------- ----------------
Net decrease in cash and
cash equivalents (60,147) (332) - (60,479)
Cash and cash equivalents, beginning 381,187 332 - 381,519
-------------- ------------ -------------- ----------------
Cash and cash equivalents, ending $ 321,040 $ - $ - $ 321,040
============== ============ ============== ================
</TABLE>
(A) For the six months ended September 30, 1997. (B) For the six months ended
June 30, 1997.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
At September 30, 1997, the Fund had cash and cash equivalents of $321,040,
compared with $381,519 at March 31, 1997. The decrease is attributable to
purchases of marketable securities in excess of proceeds from sales and
maturities of marketable securities and cash used for operating activities.
These decreases are offset by a return of investment in a Local Limited
Partnership, net of restricted cash held in escrow and investments made in a
Local Limited Partnership, and 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 $300,000 have been withdrawn from the
Reserve Account to pay legal and other fees relating to various property issues.
This amount includes approximately $294,000 relating to the Texas Partnerships.
At September 30, 1997, approximately $913,000 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, 1997, 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 approximately $804,000.
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, 1997, 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 $294,000 noted above, the Fund has also advanced
approximately $62,000 to the Texas Partnerships to fund operating deficits.
Cash Distributions
No cash distributions were made during the six months ended September 30, 1997.
Results of Operations
The Fund's result of operations for the three and six months ended September 30,
1997 resulted in net losses of $388,024 and $439,319, respectively, as compared
to net losses of $688,162 and $1,372,774 for the respective periods in 1996. The
decrease in net loss is primarily attributable to a decrease in equity in losses
of Local Limited Partnerships and extraordinary gain on cancellation of
indebtedness for the remaining Texas Partnership. The decrease in equity in
losses of Local Limited Partnerships is the result of an increase in
unrecognized losses relating to a Local Limited Partnership. During the six
months ended September 30, 1997, losses relating to prior years have been
unrecognized for this Local Limited Partnership. This change is due to a return
of investment from this Local Limited Partnership during the six months ended
September 30, 1997. The extraordinary gain on cancellation of indebtedness for
the remaining Texas Partnership (Leatherwood), net of a loss on liquidation of
interest in the Local Limited Partnership, is associated with the transfer of
Leatherwood which occurred on September 23, 1997. Please refer to the section
"Property Discussions" for additional information.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND PLUS, A LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS
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 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 in
order to improve property cash flow.
Due to the Managing General Partner's concerns regarding the long-term viabilty
of Phoenix (Moorhead, Minnesota), Primrose (Grand Forks, North Dakota), and
Sycamore (Sioux Falls, South Dakota), negotiations are underway with the Local
General Partner to develop a plan that will ultimately transfer ownership of the
properties to the Local General Partner. The plan includes provisions to
maximize the Fund's ability to retain tax credits going forward while minimizing
the risk of recapture.
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 finalized the sale of the remaining
property, Leatherwood, on September 23, 1997. For tax purposes, this event will
result in both Section 1231 Gain and cancellation of indebtedness income for the
partners, which will be reported on the 1997 Schedule K-1 (filed in 1998). In
addition, the transfer of ownership will result in a nominal amount of tax
credit recapture because Leatherwood represents less than 1% of the Fund's tax
credits.
The Local General Partner of Capitol Park in Oklahoma City, Oklahoma filed a
Chapter 7 liquidation plan for the property during the second quarter. The
Chapter 7 filing was dismissed by the Bankruptcy Court after its review. It
appears likely that the lender will foreclose on the property in 1997.
Accordingly, the Fund has begun the process of withdrawing from this Local
Limited Partnership. Such an event will trigger tax credit recapture, plus
interest, and the allocation of taxable income to the Fund. The Fund's carrying
value of this investment is zero.
Operations at Broadway Tower, located in Revere, Massachusetts, have improved
resulting from stabilized occupancy, currently at 100%. 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. The property is
currently covering its operating expenses and debt service with funds from
operations.
As previously reported, despite the 1994 debt restructure, Bancroft Street
Apartments, located in Toledo, Ohio, continues to experience 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.
Despite initial construction issues in 1994, all apartments units of
Metropolitan Apartments in Chicago, Illnois were brought to code and inhabitable
status by fall of 1996. Strict leasing policies have been implemented and
occupancy as of September 30, 1997 has improved to 74%. Successful occupancy
levels at the property depend upon locating tenants which meet these strict
leasing policies. The Local General Partner contributed in excess of $750,000
for the construction rehabilitation and operating deficits which exceeds its
obligations. It is possible that Fund reserves may be required to fund operating
deficits if the Local General Partner is unwilling to fund future deficits. To
help mitigate some of these deficits, the Local and Managing General Partners
are working with the lender to substitute fixed rate debt for the variable rate
mortgage currently on the property.
<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, 1997.
<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 14, 1997 BOSTON FINANCIAL TAX CREDIT FUND PLUS,
A LIMITED PARTNERSHIP
By: Arch Street VI, Inc.,
its Managing General Partner
/s/William E.Haynsworth
William E. Haynsworth
Managing Director, Vice President and
Chief Operating Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1997
<CASH> 321,040
<SECURITIES> 1,270,086
<RECEIVABLES> 000
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 000
<PP&E> 000
<DEPRECIATION> 000
<TOTAL-ASSETS> 21,848,450<F1>
<CURRENT-LIABILITIES> 000
<BONDS> 000
000
000
<COMMON> 000
<OTHER-SE> 20,879,996
<TOTAL-LIABILITY-AND-EQUITY> 21,848,450<F2>
<SALES> 000
<TOTAL-REVENUES> 174,089<F3>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 314,330<F4>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 13,320
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 59,362
<CHANGES> 000
<NET-INCOME> (439,319)<F5>
<EPS-PRIMARY> (13.15)
<EPS-DILUTED> 000
<FN>
<F1>Included in total assets is Restricted cash of $152,799, Other assets
$26,044, Investments in Local Limited Partnerships $18,700,324 and Other
investments $1,378,157. <F2>Included in Total Liability and Equity is Accounts
payable to affiliates $953,946 and Accounts payable and accrued expenses
$14,508. <F3>Total revenues includes Rental $57,876, Investment $45,494,
Accretion of Orginal Issue Discount $52,443 and Other $18,276. <F4>Included in
Other Expenses is Asset Management fees $85,325, General and Administrative
$96,575, Bad debt expense $32,465, Property Management fees $5,538, Rental
operations, exclusive of depreciation $42,535, Depreciation $35,790 and
Amortization $16,102. <F5>Net Loss reflects: Equity in losses of Local Limited
Partnerships of $(340,253), loss on liquidation of interest in Local Limited
Partnership of $(4,182), extraordinary gain on cancellation of indebtedness of
$59,362 and minority interest in loss of Local Limited Partnership $(685). </FN>
</TABLE>
