FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
------------------
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
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Commission file number 0-21718
-------
BOSTON CAPITAL TAX CREDIT FUND III L.P.
- -----------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 52-1749505
- -------------------------------- -----------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
One Boston Place, Suite 2100, Boston, Massachusetts 02108
- -----------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 624-8900
--------------
- -----------------------------------------------------------------
(Former name, former address and former fiscal year, if changed
since last report)
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 CAPITAL TAX CREDIT FUND III L.P.
--------------------------------------------------
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 1996
-----------------------------------------------
TABLE OF CONTENTS
-----------------
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements..............................
Balance Sheets....................................
Statements of Operations..........................
Statement of Changes in Partners' Capital.........
Statements of Cash Flows..........................
Notes to Financial Statements.....................
Item 2. Management's Discussion and Analysis of
Financial Condition and Results
of Operations.....................................
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K..................
Signatures........................................
<PAGE>
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
September 30, March 31,
1996 1996
(Unaudited) (Audited)
ASSETS ------------ ------------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $142,458,729 $147,259,013
OTHER ASSETS
Cash and cash equivalents 3,847,193 4,958,860
Investments 3,429,115 5,141,767
Notes receivable 2,364,826 4,962,160
Deferred acquisition costs,
net of accumulated amortization (Note B) 1,791,865 2,144,343
Organization costs, net of
accumulated amortization (Note B) 309,562 399,040
Other assets 1,855,337 2,420,327
----------- -----------
$156,056,627 $167,285,510
=========== ===========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 6,054 $ 75,208
Accounts payable affiliates 5,743,638 4,454,405
Capital contributions payable (Note D) 5,768,810 9,539,884
----------- -----------
11,518,502 14,069,497
----------- -----------
PARTNERS' CAPITAL
Limited Partners
Units of limited partnership interest,
$10 stated value per BAC; 22,000,000
authorized BACs; 21,996,102 issued and
outstanding, as of September 30, 1996 144,972,387 153,561,702
General Partner (444,379) (357,619)
Unrealized gain (loss)
on securities available for sale, net 10,117 11,930
----------- -----------
144,538,125 153,216,013
----------- -----------
$156,056,627 $167,285,510
=========== ===========
The accompanying notes are an integral part of these statements.
1 <PAGE>
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
SERIES 15
----------------------------
September 30, March 31,
1996 1996
(Unaudited) (Audited)
ASSETS ----------- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $20,209,949 $21,718,070
OTHER ASSETS
Cash and cash equivalents 149,429 163,428
Investments - 151,943
Notes receivable 185,000 185,000
Deferred acquisition costs,
net of accumulated amortization (Note B) 273,303 281,199
Organization costs, net of
accumulated amortization (Note B) 13,116 26,232
Other assets 336,379 292,164
---------- ----------
$21,167,176 $22,818,036
========== ==========
LIABILITIES
Accounts payable and accrued
expenses (Note C) $ 1,145 $ 68,856
Accounts payable affiliates 1,538,661 1,264,641
Capital contributions payable (Note D) 189,312 202,750
---------- ----------
1,729,118 1,536,247
---------- ----------
PARTNERS' CAPITAL
Limited Partners
Units of limited partnership interest,
$10 stated value per BAC; 22,000,000
authorized BACs; 3,870,500 issued and
outstanding, as of September 30, 1996 19,576,349 21,401,297
General Partner (138,291) (119,857)
Unrealized gain (loss) on securities
available for sale, net - 349
---------- ----------
19,438,058 21,281,789
---------- ----------
$21,167,176 $22,818,036
========== ==========
The accompanying notes are an integral part of these statements.
2 <PAGE>
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
SERIES 16
----------------------------
September 30, March 31,
1996 1996
(Unaudited) (Audited)
ASSETS ----------- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $35,465,009 $37,074,575
OTHER ASSETS
Cash and cash equivalents 1,343,065 1,429,491
Investments 315,771 394,836
Notes receivable - 483,464
Deferred acquisition costs
net of accumulated amortization (Note B) 438,146 445,554
Organization costs, net of
accumulated amortization (Note B) 66,946 89,261
Other assets 8,819 38,197
---------- ----------
$37,637,756 $39,955,378
========== ==========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ - $ 100
Accounts payable affiliates 1,597,070 1,251,118
Capital contributions payable (Note D) 155,225 900,481
---------- ----------
1,752,295 2,151,699
---------- ----------
PARTNERS' CAPITAL
Limited Partners
Units of limited partnership interest,
$10 stated value per BAC; 22,000,000
authorized BACs; 5,429,402 issued and
outstanding, as of September 30, 1996 35,992,307 37,891,343
General Partner (107,763) (88,581)
Unrealized gain (loss) on securities
available for sale, net 917 917
---------- ----------
35,885,461 37,803,679
---------- ----------
$37,637,756 $39,955,378
========== ==========
The accompanying notes are an integral part of these statements.
3<PAGE>
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
SERIES 17
----------------------------
September 30, March 31,
1996 1996
(Unaudited) (Audited)
ASSETS ----------- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $32,348,043 $34,318,721
OTHER ASSETS
Cash and cash equivalents 669,493 285,417
Investments - 629,950
Notes receivable 1,643,475 1,658,475
Deferred acquisition costs
net of accumulated amortization (Note B) 404,297 415,482
Organization costs, net of
accumulated amortization (Note B) 70,397 90,262
Other assets 1,247,908 1,245,840
---------- ----------
$36,383,613 $38,644,147
========== ==========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ - $ -
Accounts payable affiliates 1,311,264 1,021,686
Capital contributions payable (Note D) 2,090,611 2,312,721
---------- ----------
3,401,875 3,334,407
---------- ----------
PARTNERS' CAPITAL
Limited Partners
Units of limited partnership interest,
$10 stated value per BAC; 22,000,000
authorized BACs; 5,000,000 issued and
outstanding, as of September 30, 1996 33,081,599 35,384,872
General Partner (99,861) ( 76,596)
Unrealized gain (loss) on securities
available for sale, net - 1,464
---------- ----------
32,981,738 35,309,740
---------- ----------
$36,383,613 $38,644,147
========== ==========
The accompanying notes are an integral part of these statements.
4 <PAGE>
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
SERIES 18
----------------------------
September 30, March 31,
1996 1996
(Unaudited) (Audited)
ASSETS ------------ ----------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $24,868,298 $26,102,954
OTHER ASSETS
Cash and cash equivalents 829,327 529,400
Investments 193,938 647,930
Notes receivable 536,351 536,351
Deferred acquisition costs,
new of accumulated amortization (Note B) 297,689 305,861
Organization costs, net of
accumulated amortization (Note B) 64,903 80,280
Other assets 1,716 8,052
---------- ----------
$26,792,222 $28,210,828
========== ==========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 130 $ 1,751
Accounts payable affiliates 625,011 434,163
Capital contributions payable (Note D) 756,295 861,315
---------- ----------
1,381,436 1,297,229
---------- ----------
PARTNERS' CAPITAL
Limited Partners
Units of limited partnership interest,
$10 stated value per BAC; 22,000,000
authorized BACs; 3,616,200 issued and
outstanding, as of September 30, 1996 25,465,419 26,953,204
General Partner (56,134) (41,106)
Unrealized gain (loss) on securities
available for sale, net 1,501 1,501
---------- ----------
25,410,786 26,913,599
---------- ----------
$26,792,222 $28,210,828
========== ==========
The accompanying notes are an integral part of these statements.
5 <PAGE>
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
SERIES 19
----------------------------
September 30, March 31,
1996 1996
(Unaudited) (Audited)
ASSETS ------------ ----------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $29,567,430 $28,044,693
OTHER ASSETS
Cash and cash equivalents 855,879 2,551,124
Investments 2,919,406 3,317,108
Notes receivables - 2,098,870
Deferred acquisition costs,
net of accumulated amortization (Note B) 378,430 696,247
Organization costs, net of
accumulated amortization (Note B) 94,200 113,005
Other assets 260,515 836,074
---------- ----------
$34,075,860 $37,657,121
========== ==========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 4,779 $ 4,501
Accounts payable affiliates 671,632 482,797
Capital contributions payable (Note D) 2,577,367 5,262,617
---------- ----------
3,253,778 5,749,915
---------- ----------
PARTNERS' CAPITAL
Limited Partners
Units of limited partnership interest,
$10 stated value per BAC; 22,000,000
authorized BACs; 4,080,000 issued and
outstanding, as of September 30, 1995 30,856,713 31,930,986
General Partner (42,330) (31,479)
Unrealized gain (loss) on securities
available for sale, net 7,699 7,699
---------- ----------
30,822,082 31,907,206
---------- ----------
$34,075,860 $37,657,121
========== =========
The accompanying notes are an integral part of these statements.
6<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
1996 1995
---- ----
Income
Interest income $ 82,820 $ 257,904
---------- ----------
Share of loss from Operating
Partnerships (Note D) (3,406,060) (2,861,502)
---------- ----------
Expenses
Professional fees 171,115 183,392
Fund management fee (Note C) 558,446 609,863
Amortization 61,575 78,640
General and administrative expenses 70,524 60,541
---------- ----------
861,660 932,436
---------- ----------
NET LOSS $(4,184,900) $(3,536,034)
========== ==========
Net loss allocated to limited
partners $(4,143,051) $(3,500,674)
========== ==========
Net loss allocated general
partner $ (41,849) $ (35,360)
========== ==========
Net loss per BAC $ (.93) $ ( .66)
========== ==========
The accompanying notes are an integral part of these statements.
7 <PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
SERIES 15
-----------------------
1996 1995
---- ----
Income
Interest income $ 1,120 $ 10,531
-------- --------
Share of loss from Operating
Partnerships (708,211) (719,819)
-------- --------
Expenses
Professional fees 37,105 42,673
Fund management fee (Note C) 125,913 126,173
Amortization 9,186 11,863
General and administrative expenses 8,582 6,190
-------- --------
180,786 186,899
-------- --------
NET LOSS $(887,877) $(896,187)
======== ========
Net loss allocated to limited
partners $(878,998) $(887,225)
======== ========
Net loss allocated to general
partner $ (8,879) $ (8,962)
======== ========
Net loss per BAC $ (.22) $ (.23)
======== ========
The accompanying notes are an integral part of these statements.
8 <PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
SERIES 16
------------------------
1996 1995
---- ----
Income
Interest income $ 14,142 $ 24,164
-------- --------
Share of loss from Operating
Partnerships (645,998) (700,127)
-------- --------
Expenses
Professional fees 33,908 54,372
Fund management fee (Note C) 131,130 162,195
Amortization 15,372 19,651
General and administrative expenses 16,582 9,161
-------- --------
196,992 245,379
-------- --------
NET LOSS $(828,848) $(921,342)
======== ========
Net loss allocated to limited
partners $(820,560) $(912,129)
======== ========
Net loss allocated to general
partner $ (8,288) $ (9,213)
======== ========
Net loss per BAC $ (.15) $ (.17)
======== ========
The accompanying notes are an integral part of these statements.
9<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
SERIES 17
------------------------
1996 1995
---- ----
Income
Interest income $ 4,710 $ 54,601
---------- --------
Share of loss from Operating
Partnerships (1,082,278) (644,895)
---------- --------
Expenses
Professional fees 41,418 35,380
Fund management fee (Note C) 116,959 128,618
Amortization 13,820 17,706
General and administrative expenses 10,190 13,162
---------- --------
182,387 194,866
---------- --------
NET LOSS $(1,259,955) $(785,160)
========== ========
Net loss allocated to limited
partners $(1,247,355) $(777,308)
========== ========
Net loss allocated to general
partner $ (12,600) $ (7,852)
========== ========
Net loss per BAC $ (.25) $ (.02)
========== ========
The accompanying notes are an integral part of these statements.
10<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
SERIES 18
----------------------
1996 1995
---- ----
Income
Interest income $ 9,297 $ 66,411
-------- --------
Share of loss from Operating
Partnerships (618,443) (391,052)
-------- --------
Expenses
Professional fees 19,874 28,146
Fund management fee (Note C) 88,144 92,424
Amortization 10,542 13,460
General and administrative expenses 8,713 11,490
-------- --------
127,273 145,520
-------- --------
NET LOSS $(736,419) $(470,161)
======== ========
Net loss allocated to limited
partners $(729,055) $(465,459)
======== ========
Net loss allocated to general
partner $ (7,364) $ (4,702)
======== ========
Net loss per BAC $ (.20) $ (.13)
======== ========
The accompanying notes are an integral part of these statements.
11<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
SERIES 19
----------------------
1996 1995
---- ----
Income
Interest income $ 53,551 $ 102,197
-------- --------
Share of loss from Operating
Partnerships (351,130) (405,609)
-------- --------
Expenses
Professional fees 38,810 22,821
Fund management fee (Note C) 96,300 100,453
Amortization 12,655 15,960
General and administrative expenses 26,457 20,538
-------- --------
174,222 159,772
-------- --------
NET LOSS $(471,801) $(463,184)
======== ========
Net loss allocated to limited
partners $(467,083) $(458,552)
======== ========
Net loss allocated to general
partner $ (4,718) $ (4,632)
======== ========
Net loss per BAC $ (.11) $ (.11)
======== ========
The accompanying notes are an integral part of these statements.
12<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
1996 1995
---- ----
Income
Interest income $ 224,955 $ 473,386
---------- ----------
Share of loss from Operating
Partnerships (Note D) (7,267,504) (6,057,255)
---------- ----------
Expenses
Professional fees 260,940 207,226
Fund management fee (Note C) 1,105,911 1,228,713
Amortization 123,103 123,379
General and administrative expenses 143,572 164,392
---------- ----------
1,633,526 1,723,710
---------- ----------
NET LOSS $(8,676,075) $(7,307,579)
========== ==========
Net loss allocated to limited
partners $(8,589,314) $(7,234,502)
========== ==========
Net loss allocated general
partner $ (86,761) $ (73,077)
========== ==========
Net loss per BAC $ (1.95) $ (1.34)
========== ==========
The accompanying notes are an integral part of these statements.
13 <PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 15
-----------------------
1996 1995
---- ----
Income
Interest income $ 3,883 $ 17,876
--------- ---------
Share of loss from Operating
Partnerships (1,508,293) $(1,494,582)
--------- ---------
Expenses
Professional fees 58,793 44,540
Fund management fee (Note c) 245,074 253,056
Amortization 18,371 18,421
General and administrative expenses 16,734 19,441
--------- ---------
338,972 335,458
--------- ---------
NET LOSS $(1,843,382) $(1,812,164)
========= =========
Net loss allocated to limited
partners $(1,824,948) $(1,794,042)
========= =========
Net loss allocated to general
partner $ (18,434) $ (18,122)
========= =========
Net loss per BAC $ (.47) $ (.46)
========= =========
The accompanying notes are an integral part of these statements.
14<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 16
------------------------
1996 1995
---- ----
Income
Interest income $ 32,107 $ 45,523
---------- ----------
Share of loss from Operating
Partnerships (1,576,905) (1,574,321)
---------- ----------
Expenses
Professional fees 50,327 57,426
Fund management fee (Note C) 261,755 320,843
Amortization 30,698 30,808
General and administrative expenses 30,640 26,059
---------- ----------
373,420 435,136
---------- ----------
NET LOSS $(1,918,218) $(1,963,934)
========= ==========
Net loss allocated to limited
partners $(1,899,036) $(1,944,294)
========== ==========
Net loss allocated to general
partner $ (19,182) $ (19,640)
========== ==========
Net loss per BAC $ (.35) $ (.36)
========== ==========
The accompanying notes are an integral part of these statements.
15<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 17
------------------------
1996 1995
---- ----
Income
Interest income $ 23,852 $ 100,595
---------- ---------
Share of loss from Operating
Partnerships (1,968,570) (1,400,424)
---------- ---------
Expenses
Professional fees 69,088 41,197
Fund management fee (Note C) 264,939 263,465
Amortization 27,639 27,639
General and administrative expenses 20,154 33,629
---------- ---------
381,820 365,930
---------- ---------
NET LOSS $(2,326,538) $(1,665,759)
========== =========
Net loss allocated to limited
partners $(2,303,273) $(1,649,101)
========== =========
Net loss allocated to general
partner $ (23,265) $ (16,658)
========== =========
Net loss per BAC $ (.46) $ (.03)
========== =========
The accompanying notes are an integral part of these statements.
16<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 18
----------------------
1996 1995
---- ----
Income
Interest income $ 23,801 $ 125,925
---------- --------
Share of loss from Operating
Partnerships (1,283,112) (778,568)
---------- --------
Expenses
Professional fees 29,225 34,957
Fund management fee (Note C) 174,970 185,443
Amortization 21,084 21,148
General and administrative expenses 18,223 32,234
---------- --------
243,502 273,782
---------- --------
NET LOSS $(1,502,813) $(926,425)
========== ========
Net loss allocated to limited
partners $(1,487,785) $(917,161)
========== ========
Net loss allocated to general
partner $ (15,028) $ (9,264)
========== ========
Net loss per BAC $ (.41) $ (.26)
========== ========
The accompanying notes are an integral part of these statements.
17<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 19
----------------------
1996 1995
---- ----
Income
Interest income $ 141,312 $ 183,467
---------- --------
Share of loss from Operating
Partnerships (930,624) (809,360)
---------- --------
Expenses
Professional fees 53,507 29,106
Fund management fee (Note C) 159,173 205,906
Amortization 25,311 25,363
General and administrative expenses 57,821 53,029
---------- --------
295,812 313,404
---------- --------
NET LOSS $(1,085,124) $(939,297)
========== ========
Net loss allocated to limited
partners $(1,074,273) $(929,904)
========== ========
Net loss allocated to general
partner $ (10,851) $ (9,393)
========== ========
Net loss per BAC $ (.26) $ (.23)
========== ========
The accompanying notes are an integral part of these statements.
18<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Six Months Ended September 30, 1996
(Unaudited)
Unrealized
gain (loss) on
securities
available
General for
Assignees Partner sale, net Total
--------- ------- --------- -----
Partners' capital
(deficit)
April 1, 1996 $153,561,702 $(357,619) $ 11,930 $153,216,013
Net change in
unrealized gain
(loss) on secur-
ities available
for sale - - (1,813) (1,813)
Net income (loss) (8,589,315) (86,760) - (8,676,075)
----------- -------- --------- -----------
Partners' capital
(deficit),
September 30, 1996 $144,972,387 $(444,379) $ 10,117 $144,538,125
=========== ======== ========== ===========
The accompanying notes are an integral part of these statements.
19 <PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Six Months Ended September 30, 1996
(Unaudited)
Unrealized
gain (loss) on
securities
available
General for
Assignees Partner sale,net Total
--------- ------- -------- -----
Series 15
- ---------
Partners' capital
(deficit),
April 1, 1996 $21,401,297 $ (119,857) $ 349 $21,281,789
Net change in
unrealized gain
(loss) on secur-
ities available
for sale - - (349) (349)
Net income (loss) (1,824,948) (18,434) - (1,843,382)
---------- -------- ---------- ----------
Partners' capital
(deficit),
September 30, 1996 $19,576,349 $ (138,291) $ - $19,438,058
========== ======== ========== ==========
Series 16
- ---------
Partners' capital
(deficit),
April 1, 1996 $37,891,343 $ (88,581) $ 917 $37,803,679
Net change in
unrealized gain
(loss) on secur-
ities available
for sale - - - -
Net income (loss) (1,899,036) (19,182) - $(1,918,218)
---------- -------- --------- ----------
Partners' capital
(deficit),
September 30, 1996 $35,992,307 $(107,763) $ 917 $35,885,461
========== ======== ========= ==========
The accompanying notes are an integral part of these statements.
20 <PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Six Months Ended September 30, 1996
(Unaudited)
Unrealized
gain (loss) on
securities
available
General for
Assignees Partner sale,net Total
--------- ------- -------- -----
Series 17
- ---------
Partners' capital
(deficit),
April 1, 1996 $35,384,872 $ (76,596) $ 1,464 $35,309,740
Net change in
unrealized gain
(loss) on secur-
ities available
for sale - - (1,464) (1,464)
Net income (loss) (2,303,273) (23,265) - (2,326,538)
---------- -------- --------- ----------
Partners' capital
(deficit),
September 30, 1996 $33,081,599 $ (99,861) $ - $32,981,738
========== ======== ========= ==========
Series 18
- ---------
Partners' capital
(deficit),
April 1, 1996 $26,953,204 $ (41,106) $ 1,501 $26,913,599
Net change in
unrealized gain
(loss) on secur-
ities available
for sale - - - -
Net income (loss) (1,487,785) (15,028) - (1,502,813)
--------- ------- --------- ----------
Partners' capital
(deficit),
September 30, 1996 $25,465,419 $(56,134) $ 1,501 $25,410,786
========== ======= ========= ==========
The accompanying notes are an integral part of these statements.
21<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Six Months Ended September 30, 1996
(Unaudited)
Unrealized
gain (loss) on
securities
available
General for
Assignees Partner sale,net Total
--------- ------- -------- -----
Series 19
- ---------
Partners' capital
(deficit),
April 1, 1996 $31,930,986 $ (31,479) $ 7,699 $31,907,206
Net change in
unrealized gain
(loss) on secur-
ities available
for sale - - - -
Net income (loss) (1,074,273) (10,851) - (1,085,124)
---------- -------- ---------- ----------
Partners' capital
(deficit),
September 30, 1996 $30,856,713 $ (42,330) $ 7,699 $30,822,082
========== ======== ========== ==========
22 <PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30, 1996
(Unaudited)
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(8,676,075) $(7,307,579)
Adjustments
Distributions from Operating
Partnerships 5,412 11,265
Amortization 123,103 123,379
Share of loss from Operating
Partnerships 7,267,504 6,057,255
Changes in assets and liabilities
(Decrease) Increase in accounts
payable and accrued expenses (69,153) 1,958
Decrease (Increase) in accounts
receivable 555,176 1,794,884
Decrease (Increase) in accounts
payable affiliates 1,289,233 1,491,018
---------- ----------
Net cash (used in) provided by
operating activities 495,200 2,172,180
---------- ----------
Cash flows from investing activities:
Acquisition costs repaid (paid) for
Operating Partnerships acquired or
to acquire 15,000 (66,545)
Capital contributions paid to
Operating Partnerships (5,930,833) (14,790,626)
Advances to Operating Partnerships 2,597,334 787,423
Investments 1,710,839 7,818,394
---------- -----------
Net cash (used in) provided by
investing activities 1,607,660 (6,251,354)
---------- ----------
23<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
1996 1995
---- ----
Continued
- ---------
Cash flows from financing activity:
Credit adjusters received from
Operating Partnerships 793 -
---------- ----------
Net cash (used in) provided by
financing activity 793 -
---------- ----------
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 1,111,667 (4,079,174)
---------- ----------
Cash and cash equivalents, beginning 4,958,860 10,181,096
---------- ----------
Cash and cash equivalents, ending $ 3,847,193 $ 6,101,922
========== ==========
Supplemental schedule of noncash
investing and financing activates:
The fund has increased its investments
for unpaid capital contributions due to
the Operating Partnerships $ 429,000 $ 169,780
========== ==========
The accompanying notes are an integral part of these statements.
24<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 15
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(1,843,382) $(1,812,164)
Adjustments
Distributions from Operating
Partnerships 1,096 6,329
Amortization 18,371 18,421
Share of loss from Operating
Partnerships 1,508,293 1,494,582
Changes in assets and liabilities
(Decrease) increase in accounts
payable and accrued expenses (67,711) 236
Decrease (Increase) in accounts
receivable (44,215) 223,767
Decrease (Increase) in accounts
payable affiliates 274,020 274,008
-------- --------
Net cash (used in) provided by
operating activities (153,528) 205,179
-------- --------
Cash flows from investing activities:
Acquisition costs repaid (paid) for
Operating Partnerships acquired or
to acquire 2,640 92,539
Capital contributions paid to Operating
Partnerships (14,705) (808,463)
Advances to Operating Partnerships - 67,500
Investments 151,594 (426)
-------- --------
Net cash (used in) provided by
investing activities 139,529 (648,850)
-------- --------
25<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 15
----------------------
1996 1995
---- ----
Continued
- ---------
Cash flows from financing activity:
Credit adjusters received from
Operating Partnerships - -
-------- --------
Net cash (used in) provided by
financing activity - -
-------- --------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (13,999) (446,671)
Cash and cash equivalents, beginning 163,428 976,876
-------- --------
Cash and cash equivalents, ending $ 149,429 $ 530,205
======== ========
Supplemental schedule of noncash investing
and financing activities
The Fund has increased its investments
for unpaid capital contributions due to
the Operating Partnerships $ - $ -
======== =========
The accompanying notes are an integral part of these statements.
26<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 16
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(1,918,218) $(1,963,934)
Adjustments
Distributions from Operating
Partnerships 678 2,349
Amortization 30,698 30,808
Share of loss from Operating
Partnerships 1,576,905 1,574,321
Changes in assets and liabilities
(Decrease) increase in accounts
payable and accrued expenses (100) 1,559
Decrease (Increase) in accounts
receivable 24,182 44,752
Decrease (Increase) in accounts
payable affiliates 345,952 345,765
---------- ----------
Net cash (used in) provided by
operating activities 60,097 35,620
---------- ----------
Cash flows from investing activities:
Acquisition costs repaid (paid) for
Operating Partnerships acquired or
to acquire 3,700 110,222
Capital contributions paid to Operating
Partnerships (712,752) (1,911,839)
Advances to Operating Partnerships 483,464 -
Investments 79,065 910,075
---------- ----------
Net cash (used in) provided by
investing activities (146,523) (891,542)
---------- ----------
27<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 16
-----------------------
1996 1995
---- -----
Continued
- ---------
Cash flows from financing activity:
Credit adjusters received from
Operating Partnerships - -
--------- ----------
Net cash (used in) provided by
financing activity - -
--------- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (86,426) (855,922)
Cash and cash equivalents, beginning 1,429,491 2,757,494
---------- ----------
Cash and cash equivalents, ending $ 1,343,065 $ 1,901,572
========== ==========
Supplemental schedule of noncash investing
and financing activities:
The Fund has increased its investments
for unpaid capital contributions due to
the Operating Partnerships $ - $ 107,000
========== ==========
The accompanying notes are an integral part of these statements.
28<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 17
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(2,326,538) $(1,665,759)
Adjustments
Distributions from Operating
Partnerships 1,166 189
Amortization 27,639 27,639
Share of loss from Operating
Partnerships 1,968,570 1,400,424
Changes in assets and liabilities
(Decrease) increase in accounts
payable and accrued expenses - (115)
Decrease (Increase) in accounts
receivable (6,058) (221,333)
Decrease (Increase) in accounts
payable affiliates 289,578 469,491
---------- ----------
Net cash (used in) provided by
operating activities (45,643) 10,536
---------- ----------
Cash flows from investing activities:
Acquisition costs repaid (paid) for
Operating Partnerships acquired or
to acquire 3,410 77,262
Capital contributions paid to Operating
Partnerships (217,177) (2,510,990)
Advances to Operating Partnerships 15,000 781,328
Investments 628,486 327,390
---------- ----------
Net cash (used in) provided by
investing activates 429,719 (1,325,010)
---------- ----------
29<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 17
------------------------
1996 1995
---- ----
Continued
- ---------
Cash flows from financing activity:
Credit adjusters received from
Operating Partnerships - -
---------- ----------
Net cash (used in) provided by
financing activity - -
---------- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 384,076 (1,314,474)
Cash and cash equivalents, beginning 285,417 1,690,922
---------- ----------
Cash and cash equivalents, ending $ 669,493 $ 376,448
========== ==========
Supplemental schedule of noncash investing
and financing activities:
The Fund has increased its investments
for unpaid capital contributions due to
the Operating Partnerships $ - $ -
========== ==========
The accompanying notes are an integral part of these statements.
30<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 18
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(1,502,813) $ (926,425)
Adjustments
Distributions from Operating
Partnerships 2,472 2,398
Amortization 21,084 21,148
Share of loss from Operating
Partnerships 1,283,112 778,568
Changes in assets and liabilities
(Decrease) increase in accounts
payable and accrued expenses (1,621) 278
Decrease (Increase) in accounts
receivable 6,336 1,494,898
Decrease (Increase) in accounts
payable affiliates 190,848 190,848
---------- ----------
Net cash (used in) provided by
operating activities (582) 1,561,713
---------- ----------
Cash flows from investing activities:
Acquisition costs repaid (paid) for
Operating Partnerships acquired or
to acquire 2,465 (60,600)
Capital contributions paid to Operating
Partnerships (155,948) (5,443,645)
Advances to Operating Partnerships - 78,595
Investments 453,992 2,814,142
---------- ----------
Net cash (used in) provided by
investing activities 300,509 (2,611,508)
---------- ----------
31<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 18
-----------------------
1996 1995
---- ----
Continued
- ---------
Cash flows from financing activity:
Credit adjusters received from
Operating Partnerships - -
--------- ----------
Net cash (used in) provided by
financing activity - -
--------- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 299,927 (1,049,795)
Cash and cash equivalents, beginning 529,400 1,813,653
--------- ----------
Cash and cash equivalents, ending $ 829,327 $ 763,858
========= ==========
Supplemental schedule of noncash investing
and financing activities:
The Fund has increased its investments
for unpaid capital contributions due to
the Operating Partnerships $ - $ -
========= =========
The accompanying notes are an integral part of these statements.
32<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 19
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(1,085,124) $ (939,297)
Adjustments
Distributions from Operating
Partnerships - -
Amortization 25,311 25,363
Share of loss from Operating
Partnerships 930,624 809,360
Changes in assets and liabilities
(Decrease) increase in accounts
payable and accrued expenses 279 -
Decrease (Increase) in accounts
receivable 574,931 252,800
Decrease (Increase) in accounts
payable affiliates 188,835 210,906
---------- ----------
Net cash (used in) provided by
operating activities 634,856 359,132
---------- ----------
Cash flows from investing activities:
Acquisition costs repaid (paid) for
Operating Partnerships acquired or
to acquire 2,785 (285,968)
Capital contributions paid to Operating
Partnerships (4,830,251) (4,115,689)
Advances to Operating Partnerships 2,098,870 (140,000)
Investments 397,702 3,767,213
---------- ----------
Net cash (used in) provided by
investing activities (2,330,894) (774,444)
---------- ---------
33<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 19
------------------------
1996 1995
---- ----
Continued
- ---------
Cash flows from financing activity:
Credit adjusters received from
Operating Partnerships 793 -
---------- ----------
Net cash (used in) provided by
financing activity 793 -
---------- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS (1,695,245) (415,312)
Cash and cash equivalents, beginning 2,551,124 2,942,151
---------- ----------
Cash and cash equivalents, ending $ 855,879 $ 2,526,839
========== ==========
Supplemental schedule of noncash investing
and financing activities:
The Fund has increased its investments
for unpaid capital contributions due to
the Operating Partnerships $ 429,000 $ 62,780
========== ==========
The accompanying notes are an integral part of these statements.
34<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS
September 30, 1996
(Unaudited)
NOTE A - ORGANIZATION
Boston Capital Tax Credit Fund III L.P. (the "Fund") was formed under the laws
of the State of Delaware as of September 19, 1991 for the purpose of
acquiring, holding, and disposing of limited partnership interests in
Operating Partnerships which will acquire, develop, rehabilitate, operate and
own newly constructed, existing or rehabilitated low-income apartment
complexes ("Operating Partnerships"). The general partner of the Fund is
Boston Capital Associates III L.P., a Delaware limited partnership. Boston
Capital Associates, a Massachusetts general partnership, whose only two
partners are Herbert F. Collins and John P. Manning, the principals of Boston
Capital Partners, Inc., is the sole general partner of the general partner.
The limited partner of the general partner is Capital Investment Holdings, a
general partnership whose partners are certain officers and employees of
Boston Capital Partners, Inc., and its affiliates. The Assignor Limited
Partner is BCTC III Assignor Corp., a Delaware corporation which is
wholly-owned by Herbert F. Collins and John P. Manning.
Pursuant to the Securities Act of 1933, the Fund filed a Form S-11
Registration Statement with the Securities and Exchange Commission, effective
January 24, 1992 which covered the offering (the "Public Offering") of the
Fund's beneficial assignee certificates ("BACs") representing assignments of
units of the beneficial interest of the limited partnership interest of the
Assignor Limited Partner. The Fund registered 20,000,000 BACs at $10 per BAC
for sale to the public in one or more series. On September 4, 1993 the Fund
filed an amendment to Form S-11 with the Securities and Exchange Commission
which registered an additional 2,000,000 BACs at $10 per BAC for sale to the
public in one or more series. The registration for the additional BACs became
effective on October 6, 1993. Offers and sales of BACs in Series 15 through
19 of the Fund were completed and the last of the BACs in Series 15, 16, 17,
18 and 19 were issued by the Fund on June 26, 1992, December 28, 1992, June
17, 1993, September 22, 1993, and December 17, 1993, respectively. The Fund
sold 3,870,500 of Series 15 BACs, for a total of $38,705,000; 5,429,402 of
Series 16 BACs, for a total of $54,293,000; 5,000,000 of Series 17 BACs, for a
total of $50,000,000; 3,616,200 of Series 18 BACs, for a total of $36,162,000;
and 4,080,000 of Series 19 BACs, for a total of $40,800,000. The partnership
issued the last BACs in Series 19 on December 17, 1993. This concluded the
Public Offering of the Fund.
35<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1996
(Unaudited)
NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES
The condensed financial statements included herein as of September 30, 1996
and for the three and six months then ended have been prepared by the Fund,
without audit. The Fund accounts for its investments in Operating
Partnerships using the equity method, whereby the Fund adjusts its investment
cost for its share of each Operating Partnership's results of operations and
for any distributions received or accrued. Costs incurred by the Fund in
acquiring the investments in the Operating Partnerships are capitalized to
the investment account. The Fund's accounting and financial reporting
policies are in conformity with generally accepted accounting principles and
include adjustments in interim periods considered necessary for a fair
presentation of the results of operations. Such adjustments are of a normal
recurring nature.
Investment Securities
- ---------------------
The Fund has determined that all of it's investment securities are to be
categorized as securities available for sale. Securities classified as
available for sale are those debt securities that the Fund purchased that may
be liquidated prior to the maturity date should the need arise. These
securities are carried at approximate fair market value. All of the
investments held by the Fund are tax-exempt municipal bonds.
The amortized cost of securities available for sale as of September 30, 1996
by contractual maturity are as follows:
Amortized
Cost
-----------
Due in one year or less $3,418,998
Due after one year -
---------
Total $3,418,998
=========
The fair market value of the securities is $3,429,115. The difference being
an unrealized gain on securities available for sale of $10,117, as of
September 30, 1996.
36<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1996
(Unaudited)
NOTE - B ACCOUNTING AND FINANCIAL REPORTING POLICIES - CONTINUED
Amortized cost is the face value of the securities and any unamortized premium
or discount. The balance sheet reflects the fair market value under
investments.
Amortization
- ------------
The Fund amortizes organizational costs over 60 months. As of September 30,
1996 and 1995 the Fund has accumulated organization amortization totalling
$624,866 and $445,909 respectively. The breakdown of accumulated organization
amortization within the Fund as of September 30, 1996 and 1995 is as follows:
1996 1995
---- ----
Series 15 $153,961 $127,730
Series 16 160,964 116,333
Series 17 135,490 95,761
Series 18 85,392 54,638
Series 19 89,059 51,447
------- -------
$624,866 $445,909
======= =======
On July 1, 1995, the Fund began amortizing unallocated acquisition costs over
330 months from April 1, 1995. As of September 30, 1996 the Fund has
accumulated unallocated acquisition amortization totalling $101,473. The
breakdown of accumulated unallocated acquisition amortization within the fund
as of September 30, 1996 for Series 15, Series 16, Series 17, Series 18, and
Series 19 is $15,867, $25,283, $23,453, $17,251 and $19,619, respectively.
NOTE C - RELATED PARTY TRANSACTIONS
The Fund has entered into several transactions with various affiliates of the
general partner, including Boston Capital Partners, Inc., and Boston Capital
Asset Management Limited Partnership (formerly Boston Capital Communications
Limited Partnership) as follows:
Boston Capital Partners, Inc. is entitled to asset acquisition fees for
selecting, evaluating, structuring, negotiating, and closing the Fund's
acquisition of interests in the Operating Partnerships. Prior to the quarter
ended September 30, 1996 all series had completed payment of all acquisition
fees due to Boston Capital Partners, Inc.
37<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1996
(Unaudited)
NOTE C - RELATED PARTY TRANSACTIONS - CONTINUED
An annual fund management fee based on .5 percent of the aggregate cost of all
apartment complexes owned by the Operating Partnerships, has been accrued to
Boston Capital Asset Management Limited Partnership (formerly Boston Capital
Communications Limited Partnership). The fund management fees accrued for the
quarter ended September 30, 1996 and 1995 are as follows:
1996 1995
---- ----
Series 15 $137,013 $126,173
Series 16 172,968 162,195
Series 17 141,348 128,618
Series 18 95,424 92,424
Series 19 96,300 100,453
------- -------
$643,053 $609,863
======= =======
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS
At September 30, 1996 and 1995, the Fund had limited partnership interests in
241 and 240 Operating Partnerships, respectively, which own or are
constructing apartment complexes. The breakdown of Operating Partnerships
within the Fund at September 30, 1996 and 1995 is as follows:
1996 1995
---- ----
Series 15 68 68
Series 16 64 64
Series 17 49 48
Series 18 34 34
Series 19 26 26
--- ---
241 240
=== ===
38<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS - CONTINUED
Under the terms of the Fund's investment in each Operating Partnership, the
Fund is required to make capital contributions to the Operating Partnerships.
These contributions are payable in installments over several years upon each
Operating Partnership achieving specified levels of construction and/or
operations. The contributions payable at September 30, 1996 and 1995 are as
follows:
1996 1995
---- ----
Series 15 $ 189,312 $ 666,188
Series 16 155,255 1,764,662
Series 17 2,090,611 2,051,745
Series 18 756,295 1,996,134
Series 19 2,577,367 9,569,265
--------- ----------
$5,768,840 $16,047,994
========= ==========
The Fund's fiscal year ends March 31st of each year, while all the Operating
Partnerships' fiscal years are the calendar year. Pursuant to the provisions
of each Operating Partnership Agreement, financial results for each of the
Operating Partnerships are provided to the Fund within 45 days after the close
of each Operating Partnership's quarterly period. Accordingly, the current
financial results available for the Operating Partnerships are for the six
months ended June 30, 1996.
39<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
Series 15
---------------------------
1996 1995
---- ----
Revenues
Rental $ 4,513,330 $ 4,320,492
Interest and other 252,380 192,728
--------- ---------
4,765,710 4,513,220
--------- ---------
Expenses
Interest 1,593,940 1,532,865
Depreciation and amortization 2,018,829 1,937,034
Operating expenses 2,703,877 2,553,000
--------- ---------
$ 6,316,646 6,022,899
--------- ---------
NET LOSS $(1,550,936) $(1,509,679)
========= =========
Net loss allocated to Boston
Capital Tax Credit Fund
III L.P. $(1,508,293) $(1,494,582)
========= =========
Net loss allocated to other
partners $ (15,510) $ (15,097)
========= =========
Net loss suspended $ (27,133) $ -
========= =========
The Fund accounts for its investments using the equity method of accounting.
Under the equity method of accounting, the partnership adjusts its investment
cost for its share of each Operating Partnership's results of operations and
for any distributions received or accrued. However, the Partnership
recognizes individual operating losses only to the extent of capital
contributions. Excess losses are suspended for use in future years to offset
excess income.
40<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
Series 16
--------------------------
1996 1995
---- ----
Revenues
Rental $ 5,926,919 $ 5,627,312
Interest and other 464,389 350,392
--------- ---------
6,391,308 5,977,704
--------- ---------
Expenses
Interest 2,022,957 1,949,971
Depreciation and amortization 2,463,062 2,423,304
Operating expenses 3,498,891 3,194,652
--------- ---------
7,984,910 7,567,927
--------- ---------
NET LOSS $(1,593,602) $(1,590,223)
========= =========
Net loss allocated to Boston
Capital Tax Credit Fund
III L.P. $(1,577,666) $(1,574,321)
========= =========
Net loss allocated to other
partners $ (15,936) $ (15,902)
========= =========
41<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months ended June 30,
(Unaudited)
Series 17
--------------------------
1996 1995
Revenues ---- ----
Rental $ 5,408,971 $ 4,677,370
Interest and other 195,250 517,411
--------- ---------
5,604,221 5,194,781
--------- ---------
Expenses
Interest 2,370,100 2,064,687
Depreciation and amortization 1,892,667 1,603,652
Operating expenses 3,329,909 2,941,012
--------- ---------
7,592,676 6,609,351
--------- ---------
NET LOSS $(1,988,455) $(1,414,570)
========= =========
Net loss allocated to Boston
Capital Tax Credit Fund
III L.P. $(1,968,570) $(1,400,424)
========= =========
Net loss allocated to other
partners $ (19,885) $ (14,146)
========= =========
42<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
Series 18
----------------------------
1996 1995
Revenues ---- ----
Rental $ 2,880,998 $2,266,492
Interest and other 116,979 143,350
--------- ---------
2,997,977 2,409,842
--------- ---------
Expenses
Interest 1,022,766 680,921
Depreciation and amortization 1,484,915 1,190,733
Operating expenses 1,786,368 1,324,621
--------- ---------
4,294,049 3,196,275
--------- ---------
NET LOSS $(1,296,072) $ (786,433)
========= =========
Net loss allocated to Boston
Capital Tax Credit Fund
III L.P. $(1,283,112) $ (778,568)
========= =========
Net loss allocated to other
partners $ (12,960) $ (7,865)
========= =========
43<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
Series 19
--------------------------
1996 1995
Revenues ---- ----
Rental $4,002,983 $1,645,262
Interest and other 123,221 80,537
--------- ---------
4,126,204 1,725,799
--------- ---------
Expenses
Interest 1,463,473 811,952
Depreciation and amortization 1,151,242 336,470
Operating expenses 2,451,513 1,394,912
--------- ---------
5,066,228 2,543,334
--------- ---------
NET LOSS $ (940,024) $(817,535)
========= ========
Net loss allocated to Boston
Capital Tax Credit Fund
III L.P. $ (930,624) $(809,360)
========= ========
Net loss allocated to other
partners $ (9,400) $ (8,175)
========= ========
44<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1996
(Unaudited)
NOTE D - INVESTMENT IN OPERATING PARTNERSHIPS-CONTINUED
In a prior quarter an Operating Partnership was admitted to Series 16 without
an initial outlay of capital. This short form admission was an agreement
between the Operating Partnership's General Partner and the General Partner,
that upon further due diligence, the Fund had the option to purchase the
Operating Partnership if it was in the best interest of the Fund. Subsequent
studies indicated that the Operating Partnership would not generate the
originally anticipated amount of credits, and the General Partner elected to
have the Fund's interest repurchased. As a result the number of Operating
Partnerships has decreased by one for Series 16 from the quarter ended June
30, 1996.
When comparing the results of operations from the operating partnerships for
the six months ended June 30, 1996 and June 30, 1995 numerous variances,
some material in nature, exist. The variances are the result of a number of
factors including an increase in the number of Operating Partnerships owned,
an increase in the number which have completed construction, and an increase
in the number which have completed the lease-up phase. Smaller variances are
anticipated in future years since the Fund has finished acquiring Operating
Partnerships, construction is complete on all of the Operating Partnerships
and most have completed the lease-up phase.
NOTE E - TAXABLE LOSS
The Fund's taxable loss for the fiscal year ended March 31, 1997 is expected
to differ from its loss for financial reporting purposes primarily due to
accounting differences in depreciation incurred by the Operating Partnerships.
No provision or benefit for income taxes has been included in these financial
statements since taxable income or loss passes through to, and is reportable
by, the partners and assignees individually.
45 <PAGE>
Item 2. Management's Discussions and Analysis of Financial Condition and
Results of Operations
Liquidity
- ---------
The Fund's primary source of funds is the proceeds of its Public Offering.
Other sources of liquidity will include (i) interest earned on capital
contributions held pending investment and on Working Capital Reserves and (ii)
cash distributions from operations of the operating Partnerships in which the
Fund has and will invest. Interest income is expected to decrease over the
life of the Fund as capital contributions are paid to the Operating
Partnerships and Working Capital Reserves are expended. The Fund does not
anticipate significant cash distributions from operations of the Operating
Partnerships.
The Fund is currently accruing the fund management fee. Pursuant to the
Partnership Agreement, such liabilities will be deferred until the Fund
receives sales of refinancing proceeds from Operating Partnerships which will
be used to satisfy such liabilities. The Fund's working capital and sources
of liquidity coupled with affiliated party liability accruals allow sufficient
levels of liquidity to meet the third party obligations of the Fund. The
Fund is currently unaware of any trends which would create insufficient
liquidity to meet future third party obligations.
Capital Resources
- -----------------
The Fund offered BACs in a Public Offering declared effective by the
Securities and Exchange Commission on January 24, 1992. The Fund received
$38,705,000, $54,293,000, $50,000,000, $36,162,000 and $40,800,000
representing 3,870,500, 5,429,402, 5,000,000, 3,616,200 and 4,080,000 BACs
from investors admitted as BAC Holders in Series 15, Series 16, Series 17,
Series 18, and Series 19, respectively. The Public Offering was completed on
December 17, 1993.
(Series 15) The Fund commenced offering BACs in Series 15 on January 24,
1992. Offers and sales of BACs in Series 15 were completed on June 26, 1992.
The Fund has committed proceeds to pay initial and additional installments of
capital contributions to 68 Operating Partnerships in the amount of
$28,257,701.
During the quarter ended September 30, 1996, $1,267 of Series 15 net offering
proceeds had been used to pay capital contributions. Series 15 net offering
proceeds in the amount of $149,429 remain to be used by the Fund to pay
remaining capital contributions to the Operating Partnerships that Series 15
has invested in as of September 30, 1996.
(Series 16) The Fund commenced offering BACs in Series 16 on July 13, 1992.
Offers and sales of BACs in Series 16 were completed on December 28, 1992.
The Fund has committed proceeds to pay initial and additional installments of
capital contributions to 64 Operating Partnerships in the amount of
$39,579,774.
46 <PAGE>
During the quarter ended September 30, 1996, $142,150 of Series 16 net
offering proceeds had been used to pay capital contributions. Series 16 net
offering proceeds in the amount of $155,225 remain to be used by the Fund to
pay remaining capital contributions to the Operating Partnerships that Series
16 has invested in as of September 30, 1996.
(Series 17) The Fund commenced offering BACs in Series 17 on January 24,
1993. Offers and sales of BACs in Series 17 were completed on June 17, 1993.
The Fund has committed proceeds to pay initial and additional installments of
capital contributions to 49 Operating Partnerships in the amount of
$36,543,773.
During the quarter ended September 30, 1996, $66,807 of Series 17 net
offering proceeds had been used to pay capital contributions. Series 17 net
offering proceeds in the amount of $669,493 remain to be used by the Fund to
pay remaining capital contributions to the Operating Partnerships that Series
17 has invested in as of September 30, 1996.
(Series 18) The Fund commenced offering BACs in Series 18 on June 17, 1993.
Offers and sales of BACs in Series 18 were completed on September 22, 1993.
The Fund has committed proceeds to pay initial and additional installments of
capital contributions to 34 operating Partnerships in the amount of
$26,442,202.
During the quarter ended September 30, 1996 $81,579 of Series 18 net offering
proceeds had been used to pay capital contributions. Series 18 net offering
proceeds in the amount of $756,295 remain to be used by the Fund to pay
remaining capital contributions to the Operating Partnerships that Series 18
has invested in as of September 30, 1996.
(Series 19). The Fund commenced offering BACs in Series 19 on October 8,
1993. Offers and sales of BACs in Series 19 were completed on December 17,
1993. The Fund has committed proceeds to pay initial and additional
installments of capital contributions to 26 Operating Partnerships in the
amount of $29,563,370.
During the quarter ended September 30, 1996 $2,957,365 of Series 19 net
offering proceeds had been used to pay capital contributions. Series 19 net
offering proceeds in the amount of $2,577,367 remain to be used by the Fund to
pay remaining capital contributions to the Operating Partnerships that Series
19 has invested in as of September 30, 1996.
Results of Operations
- ---------------------
As of September 30, 1996 and 1995 the Fund held limited partnership interests
in 241 and 240 Operating Partnerships. In each instance the Apartment Complex
owned by the applicable Operating Partnership is eligible for the Federal
Housing Tax Credit. Occupancy of a unit in each Apartment Complex which
initially complied with the Minimum Set-Aside Test (i.e., occupancy by tenants
47<PAGE>
with incomes equal to no more than a certain percentage of area median income)
and the Rent Restriction Test (i.e., gross rent charged tenants does not
exceed 30% of the applicable income standards) is referred to hereinafter as
"Qualified Occupancy." Each of the Operating Partnerships and each of the
respective Apartment Complexes are described more fully in the Prospectus or
applicable report on Form 8-K. The General Partner believes that there is
adequate casualty insurance on the properties.
The results of operations for future periods are likely to vary from those
for the period ended September 30, 1996. The losses from Operating
Partnerships reported for this interim period are not necessarily indicative
of the results anticipated for future periods as some of these Operating
Partnerships are in the lease-up phase.
The Fund incurred a fund management fee to Boston Capital Asset Management
Limited Partnerships (formerly Boston Capital Communications Limited
Partnership) in an amount equal to .5 percent of the aggregate cost of
the apartment complexes owned by the Operating Partnerships, less the amount
of certain asset management and reporting fees paid or payable by the
Operating Partnerships. The fund management fees incurred for the quarter
ended September 30, 1996 for Series 15, Series 16, Series 17, Series 18 and
Series 19 were $125,913, $131,130, $116,959, $88,144, and $96,300,
respectively.
The Fund's investment objectives do not include receipt of significant cash
distributions from the Operating Partnerships in which it has invested or
intends to invest. The Fund's investments in Operating Partnerships have been
and will be made principally with a view towards realization of Federal
Housing Tax Credits for allocation to its partners and BAC holders.
(Series 15) As of September 30, 1996 and 1995, the average qualified
occupancy for the series was 100% and 97.8%, respectively. The series had a
total of 68 properties at September 30, 1996 all of which were at 100%
qualified occupancy.
For the six months being reported Series 15 reflects a net loss from
Operating Partnerships of $1,508,293. When adjusted for depreciation,
which is a non-cash item, the Operating Partnerships reflect positive
operations of $510,536. This is an interim period estimate; it is not
necessarily indicative of the final year end results.
California Investors VII Limited Partnership has completed a debt
refinancing. The Operating Partnership was operating at a deficit due to
higher than projected operating expenses. Operating shortfalls caused the
acccrual of accounts payable. The Operating General Partner has been working
with the first mortgage lender to obtain a waiver of the prepayment penalty to
allow for a refinancing. The first mortgagee recently agreed to this waiver.
The current interest rate climate enabled the Operating Partnership to obtain
a refinancing rate that allowed for the payoff of the accrued accounts payable
and reduced the monthly debt payment.
48
The General Partner is closely monitoring the operations of Hidden Cove
Associates in an effort to improve its operations. The Operating General
Partner recently completed the process of hiring a new management company.
The new management company is concentrating on completing its
capitalimprovement program and improving the tenant base. The goal of the
new management company, through improved tenant screening and strong on site
management is to improve and stabilize occupancy.
(Series 16) As of September 30, 1996 and 1995, the average qualified
occupancy for the series was 100% and 99.6%, respectively. The series had a
total of 65 properties at September 30, 1996 all of which were at 100%
qualified occupancy.
For the six months being reported Series 16 reflects a net loss from
Operating Partnerships of $1,508,293. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$885,396. This is an interim period estimate; it is not necessarily
indicative of the final year end results.
(Series 17) As of September 30, 1996 and 1995, the average qualified
occupancy for the series was 99.6% and 98.5%, respectively. The series had a
total of 49 properties at September 30, 1996. Out of the total 47 had 100%
qualified occupancy.
For the six months being reported Series 17 reflects a net loss from
Operating Partnerships of $1,968,570. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect a net loss of $75,903.
This is an interim period estimate; it is not necessarily indicative of the
final year end results.
California Investors VII Limited Partnership has negotiated a debt
refinancing. The Operating Partnership was operating at a deficit due to
higher than projected operating expenses. Operating shortfalls caused the
acccrual of accounts payable. The Operating General Partner has been working
with the first mortgage lender to obtain a waiver of the prepayment penalty to
allow for a refinancing. The first mortgagee recently agreed to this waiver.
The current interest rate climate enabled the Operating Partnership to obtain
a refinancing rate that allowed for the payoff
of the accrued accounts payable and reduced the monthly debt payment.
Annadale Housing Partners has reported net losses due to operational issues
associated with the property. The Partnership continues to stabilize since
the completion of rehabilitation and occupancy has continued its steady
improvement. Operations have recently funded the purchase of furniture and
equipment for the common area lounges and outside seating area. While the
initial impact of these expenses will be to delay breakeven operations, the
long term effect on tenant retention and occupancy should be positive. The
Operating General Partner anticipates full stabilization in the first quarter
of 1997.
49
<PAGE>
(Series 18) As of September 30, 1996 and 1995 the average qualified occupancy
for the series was 100% and 95.4% respectively. The series had a total of 34
properties at September 30, 1996 all of which were at 100% qualified
occupancy.
For the six months being reported Series 18 reflects a net loss from
Operating Partnerships of $1,296,073. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$188,842. This is an interim period estimate; it is not necessarily
indicative of the final year end results.
In August 1996 the General Partner was notified that Virginia Avenue Housing
Limited Partnership was named as defendant in a land encroachment complaint.
The Operating General Partner and its council are confident that the
partnership owns a clean title to all property in question, however, research
is being conducted into the title and title insurance.
(Series 19) As of September 30, 1996 and 1995 the average qualified occupancy
for the series was 99.9% and 86.7% respectively. The series had a total of 26
properties at September 30, 1996. Out of the total 25 had 100% qualified
occupancy.
For the six months being reported Series 19 reflects a net loss from
Operating Partnerships of $940,024. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect a gain of $211,218.
This is an interim period estimate; it is not necessarily indicative of the
final year end results.
50<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
None
Item 2. Changes in Securities
None
Item 3. Defaults upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None
Item 5. Other Information
None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
None
(b) Reports on Form 8-K
None
51<PAGE>
SIGNATURES
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 hereunto duly authorized.
BOSTON CAPITAL TAX CREDIT
FUND III L.P.
By: Boston Capital Associates III L.P.
By: C&M Associates d/b/a
Boston Capital Associates
Date: November 14, 1996 By: /s/ John P. Manning
-------------------
John P. Manning,
Partner & Principal Financial
Officer
52
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<CIK> 0000879555
<NAME> BOSTON CAPITAL TAX CREIT FUND III L.P.
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> APR-01-1996
<PERIOD-END> SEP-30-1996
<TOTAL-ASSETS> 156,056,627
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<COMMON> 0
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