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 June 30, 1996
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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
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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 JUNE 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
June 30, March 31,
1996 1996
(Unaudited) (Audited)
------------ ------------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $145,684,363 $147,259,013
OTHER ASSETS
Cash and cash equivalents 6,063,420 4,958,860
Investments 3,431,304 5,141,767
Notes receivable 2,848,821 4,962,160
Deferred acquisition costs,
net of accumulated amortization (Note B) 1,827,042 2,144,343
Organization costs, net of
accumulated amortization (Note B) 354,302 399,040
Other assets 2,485,382 2,420,327
----------- -----------
$162,694,634 $167,285,510
=========== ===========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 8,050 $ 75,208
Accounts payable affiliates 5,099,835 4,454,405
Capital contributions payable (Note D) 8,863,726 9,539,884
----------- -----------
13,971,611 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 June 30, 1996 149,115,437 153,561,702
General Partner (402,531) (357,619)
Unrealized gain (loss)
on securities available for sale, net 10,117 11,930
----------- -----------
148,723,023 153,216,013
----------- -----------
$162,694,634 $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
----------------------------
June 30, March 31,
1996 1996
(Unaudited) (Audited)
----------- ---------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $20,916,892 $ 21,718,070
OTHER ASSETS
Cash and cash equivalents 197,601 163,428
Investments - 151,943
Notes receivable 185,000 185,000
Deferred acquisiton costs,
net of accumulated amortization (Note B) 275,931 281,199
Organization costs, net of
accumulated amortization (Note B) 19,674 26,232
Other assets 323,150 292,164
---------- ----------
$21,918,248 $ 22,818,036
========== ==========
LIABILITIES
Accounts payable and accrued
expenses (Note C) $ 1,355 $ 68,856
Accounts payable affiliates 1,401,648 1,264,641
Capital contributions payable (Note D) 189,312 202,750
---------- ----------
1,592,315 1,536,247
---------- ----------
PARTNERS' CAPITAL
Limited Partners
Units of limited partnership interest,
$10 stated value per BAC; 22,000,000
authorized BACs; 21,996,102 issued and
oustanding, as of June 30, 1996 20,455,345 21,401,297
General Partner (129,412) (119,857)
Unrealized gain (loss) on securities
available for sale, net - 349
---------- ----------
20,325,933 21,281,789
---------- --------
$21,918,248 $ 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
----------------------------
June 30, March 31,
1996 1996
ASSETS (Unaudited) (Audited)
----------- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $36,143,015 $37,074,575
OTHER ASSETS
Cash and cash equivalents 1,474,729 1,429,491
Investments 315,854 394,836
Notes receivable - 483,464
Deferred acquisition costs
net of accumulated amortization (Note B) 437,686 445,554
Organization costs, net of
accumulated amortization (Note B) 78,103 89,261
Other assets 19,003 38,197
---------- ----------
$38,468,390 $39,955,378
========== ==========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 100 $ 100
Accounts payable affiliates 1,424,102 1,251,118
Capital contributions payable (Note D) 329,879 900,481
---------- ---------
1,754,081 2,151,699
========== ==========
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 June 30, 1996 36,812,867 37,891,343
General Partner (99,475) (88,581)
Unrealized gain (loss) on securities
available for sale, net 917 917
---------- ----------
36,714,309 37,803,679
---------- ----------
$38,468,390 $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
----------------------------
June 30, March 31,
1996 1996
ASSETS (Unaudited) (Audited)
----------- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $33,427,494 $34,318,721
OTHER ASSETS
Cash and cash equivalents 740,006 285,417
Investments - 629,950
Notes receivable 1,643,475 1,658,475
Deferred acquisition costs
net of accumulated amortization (Note B) 408,184 415,482
Organization costs, net of
accumulated amortization (Note B) 80,330 90,262
Other assets 1,269,537 1,245,840
---------- ----------
$37,569,026 $38,644,147
========== ==========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ - $ -
Accounts payable affiliates 1,169,916 1,021,686
Capital contributions payable (Note D) 2,157,418 2,312,721
---------- ----------
3,327,334 3,334,407
---------- ----------
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 June 30, 1996 34,328,954 35,384,872
General Partner (87,262) ( 76,596)
Unrealized gain (loss) on securities
available for sale, net - 1,464
---------- ----------
34,241,692 35,309,740
---------- ----------
$37,569,026 $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
----------------------------
June 30, March 31,
1996 1996
(Unaudited) (Audited)
------------ ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $25,461,279 $26,102,954
OTHER ASSETS
Cash and cash equivalents 920,555 529,400
Investments 194,120 647,930
Notes receivable 536,351 536,351
Deferred acquisition costs,
new of accumulated amortization (Note B) 300,542 305,861
Organization costs, net of
accumulated amortization (Note B) 72,592 80,280
Other assets 5,514 8,052
---------- ----------
$27,490,953 $28,210,828
========== ==========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 1,750 $ 1,751
Accounts payable affiliates 529,587 434,163
Capital contributions payable (Note D) 812,411 861,315
---------- ----------
1,343,748 1,297,229
---------- ----------
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 June 30, 1996 26,194,474 26,953,204
General Partner (48,770) (41,106)
Unrealized gain (loss) on securities
available for sale, net 1,501 1,501
---------- ----------
26,147,205 26,913,599
---------- ----------
$27,490,953 $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
----------------------------
June 30 March 31,
1996 1996
(Unaudited) (Audited)
------------ ----------
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $29,735,683 $28,044,693
OTHER ASSETS
Cash and cash equivalents 2,730,529 2,551,124
Investments 2,921,330 3,317,108
Notes receivables 483,995 2,098,870
Deferred acquisition costs,
net of accumulated amortization (Note B) 404,699 696,247
Organization costs, net of
accumulated amortization (Note B) 103,603 113,005
Other assets 868,178 836,074
---------- ----------
$37,248,017 $37,657,121
========== ==========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 4,845 $ 4,501
Accounts payable affiliates 574,582 482,797
Capital contributions payable (Note D) 5,374,706 5,262,617
---------- ----------
5,954,133 5,749,915
---------- ----------
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 December 31, 1995 31,323,797 31,930,986
General Partner (37,612) (31,479)
Unrealized gain (loss) on securities
available for sale, net 7,699 7,699
---------- ----------
31,293,884 31,907,206
---------- ----------
$37,248,017 $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 June 30,
(Unaudited)
1996 1995
---- ----
Income
Interest income $ 142,134 $ 215,480
Miscellaneous income - -
---------- ----------
142,134 215,480
---------- ----------
Share of loss from Operating
Partnerships (Note D) (3,861,444) (3,195,753)
---------- ----------
Expenses
Professional fees 89,824 23,834
Fund management fee (Note C) 547,465 618,850
Amortization 61,529 44,740
General and administrative expenses 73,049 103,849
---------- ----------
771,867 791,273
---------- ----------
NET LOSS $(4,491,177) $(3,771,546)
========== ==========
Net loss allocated to limited
partners $(4,446,265) $(3,733,831)
========== ==========
Net loss allocated general
partner $ (44,912) $ (37,715)
========== ==========
Net loss per BAC $ (.99) $ ( .83)
========== ==========
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 June 30,
(Unaudited)
SERIES 15
-----------------------
1996 1995
---- ----
Income
Interest income $ 2,763 $ 7,344
Miscellaneous income - -
-------- --------
2,763 7,344
-------- --------
Share of loss from Operating
Partnerships (800,082) (774,763)
-------- --------
Expenses
Professional fees 21,689 1,866
Fund management fee (Note c) 119,161 126,883
Amortization 9,186 6,558
General and administrative expenses
(Note C) 8,152 13,251
-------- --------
158,188 148,558
-------- --------
NET LOSS $(955,507) $(915,977)
======== ========
Net loss allocated to limited
partners $(945,952) $(906,817)
======== ========
Net loss allocated to general
partner $ (9,555) $ (9,160)
======== ========
Net loss per BAC $ (.24) $ (.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 June 30,
(Unaudited)
SERIES 16
------------------------
1996 1995
---- ----
Income
Interest income $ 17,965 $ 21,359
Miscellaneous income - -
---------- ----------
17,965 21,359
---------- ----------
Share of loss from Operating
Partnerships (930,907) (874,194)
---------- ----------
Expenses
Professional fees 16,418 3,054
Fund management fee (Note C) 130,625 158,648
Amortization 15,326 16,897
General and administrative expenses (Note C) 14,059 11,158
---------- ----------
176,428 189,757
-------- ----------
NET LOSS $(1,089,370) $(1,042,592)
========= ==========
Net loss allocated to limited
partners $(1,078,476) $(1,032,167)
========== ==========
Net loss allocated to general
partner $ (10,894) $ (10,425)
========== ==========
Net loss per BAC $ (.19) $ (.19)
========== ==========
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 June 30,
(Unaudited)
SERIES 17
------------------------
1996 1995
---- ----
Income
Interest income $ 19,141 $ 45,993
Miscellaneous income - -
---------- --------
19,141 45,993
---------- --------
Share of loss from Operating
Partnerships (886,292) (755,529)
---------- --------
Expenses
Professional fees 27,669 5,817
Fund management fee (Note C) 147,980 134,847
Amortization 13,820 9,932
General and administrative expenses (Note C) 9,964 20,467
---------- --------
199,433 171,063
---------- --------
NET LOSS $(1,066,584) $(880,599)
========== ========
Net loss allocated to limited
partners $(1,055,918) $(871,793)
========== ========
Net loss allocated to general
partner $ (10,666) $ (8,806)
========== ========
Net loss per BAC $ (.21) $ (.17)
========== ========
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 June 30,
(Unaudited)
SERIES 18
----------------------
1996 1995
---- ----
Income
Interest income $ 14,504 $ 59,514
Miscellaneous income - -
-------- --------
14,504 59,514
-------- --------
Share of loss from Operating
Partnerships (664,669) (387,516)
-------- --------
Expenses
Professional fees 9,351 6,811
Fund management fee (Note C) 86,826 93,019
Amortization 10,542 7,689
General and administrative expenses (Note C) 9,510 20,743
-------- --------
116,229 128,262
-------- --------
NET LOSS $(766,394) $(456,264)
======== ========
Net loss allocated to limited
partners $(758,730) $(451,701)
======== ========
Net loss allocated to general
partner $ (7,664) $ (4,563)
======== ========
Net loss per BAC $ (.20) $ (.12)
======== ========
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 June 30,
(Unaudited)
SERIES 19
----------------------
1996 1995
---- ----
Income
Interest income $ 87,761 $ 81,270
Miscellaneous income - -
-------- --------
87,761 81,270
-------- --------
Share of loss from Operating
Partnerships (579,494) (403,751)
-------- --------
Expenses
Professional fees 14,697 6,286
Fund management fee (Note C) 62,873 105,453
Amortization 12,655 9,403
General and administrative expenses (Note C) 31,364 32,491
-------- --------
121,589 153,633
-------- --------
NET LOSS $(613,322) $(476,114)
======== ========
Net loss allocated to limited
partners $(607,189) $(471,353)
======== ========
Net loss allocated to general
partner $ (6,133) $ (4,761)
======== ========
Net loss per BAC $ (.15) $ (.12)
======== ========
The accompanying notes are an integral part of these statements.
12<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Three Months Ended June 30, 1996
(Unaudited)
Unrealized Capital
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) (4,446,265) (44,912) - (4,491,177)
----------- -------- --------- -----------
Partners' capital
(deficit),
June 30, 1996 $149,115,437 $(402,531) $ 10,117 $148,723,023
=========== ======== ========== ===========
The accompanying notes are an integral part of these statements.
13 <PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Three Months Ended June 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) (945,952) (9,555) - (955,507)
---------- -------- ---------- ----------
Partners' capital
(deficit),
June 30, 1996 $20,455,345 $(129,412) $ - $20,325,933
========== ======== ========== ==========
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) (1,078,476) (10,894) - $(1,089,370)
--------- ------- --------- ----------
Partners' capital
(deficit),
June 30, 1996 $36,812,867 $(99,475) $ 917 $36,714,309
========= ======= ========= ==========
The accompanying notes are an integral part of these statements.
14 <PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Three Months Ended June 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) (1,055,918) (10,666) - (1,066,584)
---------- -------- --------- ----------
Partners' capital
(deficit),
June 30, 1996 $34,328,954 $ (87,262) $ - $34,241,692
========== ======== ========= ==========
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) (758,730) (7,664) - (766,394)
--------- ------- --------- ----------
Partners' capital
(deficit),
June 30, 1996 $26,194,474 $(48,770) $ 1,501 $26,147,205
========= ======= ========= ==========
The accompanying notes are an integral part of these statements.
15<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Three Months Ended June 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) (607,189) (6,133) - (613,322)
---------- -------- ---------- ----------
Partners' capital
(deficit),
June 30, 1996 $31,323,797 $ (37,612) $ 7,699 $31,293,884
========== ======== ========== ==========
16 <PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(4,491,177) $(3,771,546)
Adjustments
Distributions from Operating
Partnerships 4,218 5,019
Amortization 61,529 44,740
Share of loss from Operating
Partnerships 3,861,444 3,195,753
Changes in assets and liabilities
(Decrease) Increase in accounts
payable and accrued expenses (67,156) 11,207
Decrease (Increase) in accounts
receivable 48,149 1,579,628
Decrease (Increase) in accounts
payable affiliates 645,430 645,588
---------- ----------
Net cash (used in) provided by
operating activities 62,437 1,710,389
---------- ----------
Cash flows from investing activities:
Acquisition costs repaid (paid) for
operating Partnerships acquired or
to acquire 15,000 (45,571)
Capital contributions paid to
Operating Partnerships (2,681,665) (10,501,309)
Advances to Operating Partnerships 1,982,839 105,095
Investments 1,708,650 4,671,801
---------- -----------
Net cash (used in) provided by
investing activities 1,024,824 (5,769,984)
---------- ----------
17<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
1996 1995
---- ----
Continued
- ---------
Cash flows from financing activity:
Credit adjusters received from
Operating Partnerships 17,299 742
---------- ----------
Net cash (used in) provided by
financing activity 17,299 742
---------- ----------
INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS 1,104,560 (4,058,853)
---------- ----------
Cash and cash equivalents, beginning 4,958,860 10,181,096
---------- ----------
Cash and cash equivalents, ending $ 6,063,420 $ 6,122,243
========== ==========
Supplemental schedule of noncash
investing and financing activites:
The fund has increased its investments
for unpaid capital contributions due to
the Operating Partnerships $ 1,984,974 $ -
========== ==========
The accompanying notes are an integral part of these statements.
18<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 15
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(955,507) $(915,977)
Adjustments
Distributions from Operating
Partnerships 1,096 2,670
Amortization 9,186 6,558
Share of loss from Operating
Partnerships 800,082 774,763
Changes in assets and liabilities
(Decrease) increase in accounts
payable and accrued expenses (67,501) 2,433
Decrease (Increase) in accounts
receivable 934 75,866
Decrease (Increase) in accounts
payable affiliates 137,007 137,004
-------- --------
Net cash provided by (used in)
operating activities (74,703) 83,317
-------- --------
Cash flows from investing activities:
Acquisiton costs repaid (paid) for
Operating Partnerships acquiared or
to acquire 2,640 (5,891)
Capital contributions paid to Operating
Partnerships (13,438) (510,895)
Advances to Operating Partnerships (31,920) 67,500
Investments 151,594 15,116
-------- --------
Net cash used in investing
activities 108,876 (434,170)
-------- --------
19<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 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 34,173 (350,853)
Cash and cash equivalents, beginning 163,428 976,876
-------- --------
Cash and cash equivalents, ending $ 197,601 $ 626,023
======== ========
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.
20<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 16
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(1,089,370) $(1,042,592)
Adjustments
Distributions from Operating
Partnerships 652 2,349
Amortization 15,326 11,158
Share of loss from Operating
Partnerships 930,907 874,194
Changes in assets and liabilities
(Decrease) increase in accounts
payable and accrued expenses - 1,893
Decrease (Increase) in accounts
receivable 1,895 (12,367)
Decrease (Increase) in accounts
payable affiliates 172,984 172,860
---------- ----------
Net cash provided by (used in)
operating activities 32,394 7,495
---------- ----------
Cash flows from investing activities:
Acquisiton costs repaid (paid) for
Operating Partnerships acquiared or
to acquire 3,700 (24,275)
Capital contributions paid to Operating
Partnerships (570,602) (1,023,950)
Advances to Operating Partnerships 483,465 (1,000)
Investments 78,982 294,080
---------- ----------
Net cash used in investing
activities 4,455 (755,145)
---------- ----------
21<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 16
-----------------------
1996 1995
---- -----
Continued
- ---------
Cash flows from financing activity:
Credit adjusters received from
Operating Partnerships 17,299 -
--------- ----------
Net cash (used in) provided by
financing activity 17,299 -
--------- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 45,238 (747,650)
Cash and cash equivalents, beginning 1,429,491 2,757,494
---------- ----------
Cash and cash equivalents, ending $ 1,474,729 $ 2,009,844
========== ==========
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.
22<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 17
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(1,066,584) $ (880,599)
Adjustments
Distributions from Operating
Partnerships - -
Amortization 13,820 9,932
Share of loss from Operating
Partnerships 886,292 755,529
Changes in assets and liabilities
(Decrease) increase in accounts
payable and accrued expenses - 2,016
Decrease (Increase) in accounts
receivable 26,886 15,367
Decrease (Increase) in accounts
payable affiliates 148,230 134,847
---------- ----------
Net cash provided by (used in)
operating activities 8,644 37,092
---------- ----------
Cash flows from investing activities:
Acquisiton costs repaid (paid) for
Operating Partnerships acquiared or
to acquire 3,410 (9,592)
Capital contributions paid to Operating
Partnerships (150,370) (1,037,360)
Advances to Operating Partnerships (35,581) -
Investments 628,486 209,870
---------- ----------
Net cash used in investing
activities 445,945 (837,082)
---------- ----------
23<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 17
------------------------
1996 1995
---- ----
Continued
- ---------
Cash flows from financing activity:
Credit adjusters received from
Operating Partnerships - 742
---------- ----------
Net cash (used in) provided by
financing activity - 742
---------- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 454,589 (799,248)
Cash and cash equivalents, beginning 285,417 1,690,922
---------- ----------
Cash and cash equivalents, ending $ 740,006 $ 891,674
========== ==========
Supplemental schedule of noncash investing
and financing activities:
The Fund has increased its investments
for unpaid capital contributions due to
the Operating Partnerships $ 1,984,974 $ -
========== ==========
The accompanying notes are an integral part of these statements.
24<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 18
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $(766,394) $ (456,264)
Adjustments
Distributions from Operating
Partnerships 2,470 -
Amortization 10,542 7,689
Share of loss from Operating
Partnerships 664,669 387,516
Changes in assets and liabilities
(Decrease) increase in accounts
payable and accrued expenses - 2,432
Decrease (Increase) in accounts
receivable 2,538 1,496,894
Decrease (Increase) in accounts
payable affiliates 95,424 95,424
-------- ----------
Net cash provided by (used in)
operating activities 9,249 1,533,691
-------- ----------
Cash flows from investing activities:
Acquisiton costs repaid (paid) for
Operating Partnerships acquiared or
to acquire 2,465 (1,603)
Capital contributions paid to Operating
Partnerships (74,369) (4,140,986)
Advances to Operating Partnerships - 178,595
Investments 453,810 918,744
-------- ----------
Net cash used in investing
activities 381,906 (3,045,250)
-------- ----------
25<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 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 391,155 (1,511,559)
Cash and cash equivalents, beginning 529,400 1,813,653
-------- ----------
Cash and cash equivalents, ending $ 920,555 $ 302,094
======== ==========
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
Three Months Ended June 30,
(Unaudited)
Series 19
-------------------------
1996 1995
---- ----
Cash flows from operating activities:
Net loss $ (613,322) $ (476,114)
Adjustments
Distributions from Operating
Partnerships - -
Amortization 12,655 9,403
Share of loss from Operating
Partnerships 579,494 403,751
Changes in assets and liabilities
(Decrease) increase in accounts
payable and accrued expenses 345 2,433
Decrease (Increase) in accounts
receivable 15,896 3,868
Decrease (Increase) in accounts
payable affiliates 91,785 105,453
---------- ----------
Net cash provided by (used in)
operating activities 86,853 48,794
---------- ----------
Cash flows from investing activities:
Acquisiton costs repaid (paid) for
Operating Partnerships acquiared or
to acquire 2,785 (4,210)
Capital contributions paid to Operating
Partnerships (1,872,886) (3,788,118)
Advances to Operating Partnerships 1,566,875 (140,000)
Investments 395,778 3,233,991
---------- ----------
Net cash used in investing
activities 92,552 (698,337)
-------- ---------
27<PAGE>
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)
Series 19
------------------------
1996 1995
---- ----
Continued
- ---------
Cash flows from financing activity:
Sales and registration costs paid - -
Credit adjusters received from
Operating Partnerships - -
---------- ----------
Net cash (used in) provided by
financing activity - -
---------- ----------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS 179,405 (649,543)
Cash and cash equivalents, beginning 2,551,124 2,942,151
---------- ----------
Cash and cash equivalents, ending $ 2,730,529 $ 2,292,608
========== ==========
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.
28<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS
June 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.
29<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1996
(Unaudited)
NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES
The condensed financial statements included herein as of June 30, 1996 and
for the three 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 June 30, 1996 by
contractual maturity are as follows:
Amortized
Cost
-----------
Due in one year or less $3,421,187
Due after one year -
---------
Total $3,421,187
=========
The fair market value of the securities is $3,431,304. The difference being
an unrealized gain on securities available for sale of $10,117, as of
June 30, 1996.
30<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 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 June 30, 1996
and 1995 the Fund has accumulated organization amortization totalling
$490,648 and $401,170 respectively. The breakdown of accumulated organization
amortization within the Fund as of June 30, 1996 and 1995 is as follows:
1996 1995
---- ----
Series 15 $147,403 $121,172
Series 16 149,806 105,176
Series 17 125,558 85,829
Series 18 77,704 46,949
Series 19 79,656 42,044
------- -------
$580,127 $401,170
======= =======
On July 1, 1995, the Fund began amortizing unallocated acquisiton costs over
330 months from April 1, 1995. As of June 30, 1996 the Fund has accumulated
unallocated acquisition amortization totalling $84,639. The breakdown of
accumulated unallocated acquisition amortization within the fund as of June
30, 1996 for Series 15, Series 16, Series 17, Series 18, and Series 19 is
$13,239, $21,070, $19,566, $14,397 and $16,367, 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
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 June 30, 1996 all series had completed payment of all acquisition
fees due to Boston Capital Partners, Inc.
31<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 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 Communications Limited Partnership. The fund management fees
accrued for the quarter ended June 30, 1996 and 1995 are as follows:
1996 1995
---- ----
Series 15 $138,004 $126,883
Series 16 172,968 158,648
Series 17 148,230 134,847
Series 18 95,424 93,019
Series 19 91,785 105,453
------- -------
$646,411 $618,850
======= =======
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS
At June 30, 1996 and 1995, the Fund had limited partnership interests in
242 and 239 Operating Partnerships, respectively, which own or are
constructing apartment complexes. The breakdown of Operating Partnerships
within the Fund at June 30, 1996 and 1995 is as follows:
1996 1995
---- ----
Series 15 68 68
Series 16 65 64
Series 17 49 48
Series 18 34 34
Series 19 26 25
--- ---
242 239
=== ===
32<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 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 June 30, 1996 and 1995 are as
follows:
1996 1995
---- ----
Series 15 $ 189,312 $ 967,412
Series 16 329,879 2,549,122
Series 17 2,157,418 3,544,092
Series 18 812,411 3,302,209
Series 19 5,374,706 9,841,044
---------- ----------
$ 8,863,726 $20,203,879
========== ==========
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 three
months ended March 31, 1996.
33<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months ended March 31,
(Unaudited)
Series 15
---------------------------
1996 1995
---- ----
Revenues
Rental $2,244,698 $2,071,181
Interest and other 117,134 152,873
--------- ---------
2,361,832 2,224,054
--------- ---------
Expenses
Interest 789,249 765,553
Depreciation and amortization 1,019,191 944,334
Operating expenses 1,376,981 1,296,756
--------- ---------
$3,185,421 3,006,643
--------- ---------
NET LOSS $ (823,589) $ (782,589)
========= =========
Net loss allocated to Boston
Capital Tax Credit Fund
III L.P. $ (800,082) $ (774,763)
========= =========
Net loss allocated to other
partners $ (8,236) $ (7,826)
========= =========
Net loss suspended $ (15,271) $ -
========= =========
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.
34<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months ended March 31,
(Unaudited)
Series 16
--------------------------
1996 1995
---- ----
Revenues
Rental $2,971,994 $2,721,019
Interest and other 228,830 198,549
--------- ---------
3,200,824 2,919,568
--------- ---------
Expenses
Interest 1,088,390 947,781
Depreciation and amortization 1,291,126 1,262,450
Operating expenses 1,761,618 1,592,361
--------- ---------
4,141,134 3,802,592
--------- ---------
NET LOSS $ (940,310) $ (883,024)
========= =========
Net loss allocated to Boston
Capital Tax Credit Fund
III L.P. $ (930,907) $ (874,194)
========= =========
Net loss allocated to other
partners $ (9,403) $ (8,830)
========= =========
35<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months ended March 31,
(Unaudited)
Series 17
--------------------------
1996 1995
Revenues ---- ----
Rental $2,671,852 $2,304,402
Interest and other 92,198 261,537
--------- ---------
2,764,050 2,565,939
--------- ---------
Expenses
Interest 1,126,590 1,051,962
Depreciation and amortization 955,759 822,382
Operating expenses 1,576,946 1,454,755
--------- ---------
3,659,295 3,329,099
--------- ---------
NET LOSS $ (895,245) $ (763,160)
========= =========
Net loss allocated to Boston
Capital Tax Credit Fund
III L.P. $ (886,292) $ (755,529)
========= =========
Net loss allocated to other
partners $ (8,953) $ (7,631)
========= =========
36<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months ended March 31,
(Unaudited)
Series 18
----------------------------
1996 1995
Revenues ---- ----
Rental $1,426,154 $1,009,808
Interest and other 54,444 71,326
--------- ---------
1,480,598 1,081,134
--------- ---------
Expenses
Interest 531,238 281,197
Depreciation and amortization 669,337 604,503
Operating expenses 951,406 586,864
--------- ---------
2,151,981 1,472,564
--------- ---------
NET LOSS $ (671,383) $ (391,430)
========= =========
Net loss allocated to Boston
Capital Tax Credut Fund
III L.P. $ (664,669) $ (387,516)
========= =========
Net loss allocated to other
partners $ (6,714) $ (3,914)
========= =========
37<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1996
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three months ended March 31,
(Unaudited)
Series 19
--------------------------
1996 1995
Revenues ---- ----
Rental $1,923,243 $ 614,555
Interest and other 52,937 26,157
--------- ---------
1,976,180 640,712
--------- ---------
Expenses
Interest 780,296 288,064
Depreciation and amortization 555,958 245,818
Operating expenses 1,225,273 514,660
--------- ---------
2,561,527 1,048,542
--------- ---------
NET LOSS $ (585,347) $(407,830)
========= ========
Net loss allocated to Boston
Capital Tax Credit Fund
III L.P. $ (579,494) $(403,751)
========= ========
Net loss allocated to other
partners $ (5,853) $ (4,079)
========= ========
38<PAGE>
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 1996
(Unaudited)
NOTE D - INVESTMENT IN OPERATING PARTNERSHIPS-CONTINUED
When comparing the results of operations from the operating partnerships for
the three months ended March 31, 1996 and March 31, 1995 numerous variances,
some material innature, 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 as the Fund becomes fully acquired and Operating
Partnerships experience stabilized operations.
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.
39 <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
$28,256,434.
During the quarter ended June 30, 1996, $31,920 of Series 15 net offering
proceeds had been used to pay capital contributions. Series 15 net offering
proceeds in the amount of $189,312 remain to be used by the Fund to pay
remaining capital contributions to the Operating Partnerships that Series 15
has invested in as of June 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 65 Operating Partnerships in the amount of
$39,612,278.
40 <PAGE>
During the quarter ended June 30, 1996, $570,602 of Series 16 net offering
proceeds had been used to pay capital contributions. Series 16 net offering
proceeds in the amount of $329,879 remain to be used by the Fund to pay
remaining capital contributions to the Operating Partnerships that Series 16
has invested in as of June 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 June 30, 1996, $150,370 of Series 17 net offering
proceeds had been used to pay capital contributions. Series 17 net offering
proceeds in the amount of $740,006 remain to be used by the Fund to pay
remaining capital contributions to the Operating Partnerships that Series 17
has invested in as of June 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
$26,416,739.
During the quarter ended June 30, 1996 $574,369 of Series 18 net offering
proceeds had been used to pay capital contributions. Series 18 net offering
proceeds in the amount of $812,411 remain to be used by the Fund to pay
remaining capital contributions to the Operating Partnerships that Series 18
has invested in as of June 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 $29,403,044.
During the quarter ended June 30, 1996 $1,872,886 of Series 19 net
offering proceeds had been used to pay capital contributions. Series 19 net
offering proceedsin the amount of $5,374,706 remain to be used by the Fund to
pay remaining capital contributions to the Operating Partnerships that Series
19 has invested in as of June 30, 1996.
Results of Operations
- ---------------------
As of June 30, 1996 and 1995 the Fund held limited partnership interests
in 242 and 239 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
41<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 Partnerbelieves 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 June 30, 1996 as one series continues to use the funds
raised to invest in partnership interests of additional Operating
Partnerships. 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
construction and/or lease-up phases.
The Fund incurred a fund management fee to 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 June 30, 1996 for Series 15, Series 16, Series 17, Series 18 and
Series 19 were $134,135, $164,995, $132,847, $96,396, and $105,453,
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 June 30, 1996 and 1995, the average qualified occupancy for
the series was 99.2% and 97.8%, respectively. The series had a total of 68
properties at June 30, 1996. Out of the total 67 were at 100% qualified
occupancy.
For the three months being reported Series 15 reflects a net loss from
Operating Partnerships of $800,082. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$219,109. This is an interim period estimate; it is not necessarily
indicative of the final year end results.
(Series 16) As of June 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 June 30, 1996 all of which were at 100% qualified occupancy.
For the three months being reported Series 16 reflects a net loss from
Operating Partnerships of $940,310. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$360,219. This is an interim period estimate; it is not necessarily
indicative of the final year end results.
42 <PAGE>
(Series 17) As of June 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 June 30, 1996. Out of the total 47 had 100% qualified
occupancy.
For the three months being reported Series 17 reflects a net loss from
Operating Partnerships of $886,292. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$69,467. This is an interim period estimate; it is not necessarily indicative
of the final year end results.
(Series 18) As of June 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 June 30, 1996 all of which were at 100% qualified occupancy.
For the three months being reported Series 18 reflects a net loss from
Operating Partnerships of $664,669. When adjusted for depreciation, which is
a non-cash item, the Operating Partnerships reflect positive operations of
$4,688. This is an interim period estimate; it is not necessarily indicative
of the final year end results.
(Series 19) As of June 30, 1996 and 1995 the average qualified occupancy for
the series was 98.3% and 86.7% respectively. The series had a total of 26
properties at June 30, 1996. Out of the total 23 had 100% qualified occupancy
and 2 were in initial lease-up. The series also had 1 property that was still
under construciton at June 30, 1996.
For the three months being reported Series 19 reflects a net loss from
Operating Partnerships of $585,347. When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect a net loss of $29,389.
This is an interim period estimate; it is not necessarily indicative of the
final year end results.
43<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
44<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: August 13, 1996 By: /s/ John P. Manning
-------------------
John P. Manning,
Partner & Principal Financial
Officer
45<PAGE>
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<NAME> BOSTON CAPITAL TAX CREDIT FUND III L.P.
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<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-START> APR-01-1996
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