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 30,1997
-----------------
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
-------- --------
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
------ ------
BOSTON CAPITAL TAX CREDIT FUND III L.P.
--------------------------------------------------
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 1997
-----------------------------------------------
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........................................
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
September 30,
March 31,
1997
1997
(Unaudited)
(Audited)
ASSETS ------------
- ------------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $127,883,324
$134,386,913
OTHER ASSETS
Cash and cash equivalents 3,437,958
3,925,706
Investments 1,536,277
1,393,309
Notes receivable 2,081,333
2,081,333
Deferred acquisition costs,
net of accumulated amortization (Note B) 1,723,360
1,757,808
Organization costs, net of
accumulated amortization (Note B) 143,720
220,083
Other assets 2,089,079
2,080,483
-----------
- -----------
$138,895,051
$145,845,635
===========
===========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 4,552 $
4,681
Accounts payable affiliates 7,879,058
6,579,726
Capital contributions payable (Note D) 3,421,913
3,765,854
-----------
- -----------
11,305,523
10,350,261
-----------
- -----------
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, 1997 128,205,752
136,032,541
General Partner (613,738)
(534,681)
Unrealized gain (loss)
on securities available for sale, net (2,486)
(2,486)
-----------
- -----------
127,589,528
135,495,374
-----------
- -----------
$138,895,051
$145,845,635
===========
===========
The accompanying notes are an integral part of these
statements.
1
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
SERIES 15
- ----------------------------
September 30,
March 31,
1997
1997
(Unaudited)
(Audited)
ASSETS -----------
- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $17,260,580
$18,675,081
OTHER ASSETS
Cash and cash equivalents 72,317
246,845
Investments -
- -
Notes receivable 135,000
135,000
Deferred acquisition costs,
net of accumulated amortization (Note B) 262,791
268,047
Organization costs, net of
accumulated amortization (Note B) -
- -
Other assets 476,479
475,563
----------
- ----------
$18,207,167
$19,800,536
==========
==========
LIABILITIES
Accounts payable and accrued
expenses (Note C) $ 1,145 $
1,144
Accounts payable affiliates 2,086,719
1,812,693
Capital contributions payable (Note D) 34,528
178,680
----------
- ----------
2,122,392
1,992,517
----------
- ----------
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, 1997 16,256,598
17,962,610
General Partner (171,823)
(154,591)
Unrealized gain (loss) on securities
available for sale, net -
- -
----------
- ----------
16,084,775
17,808,019
----------
- ----------
$18,207,167
$19,800,536
==========
==========
The accompanying notes are an integral part of these
statements.
2
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
SERIES 16
- ----------------------------
September 30,
March 31,
1997
1997
(Unaudited)
(Audited)
ASSETS -----------
- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $32,424,196
$33,987,844
OTHER ASSETS
Cash and cash equivalents 1,104,196
1,183,424
Investments 312,799
283,537
Notes receivable -
- -
Deferred acquisition costs
net of accumulated amortization (Note B) 421,296
429,721
Organization costs, net of
accumulated amortization (Note B) 22,315
44,630
Other assets 9,576
8,790
----------
- ----------
$34,294,378
$35,937,946
==========
==========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ - $
- -
Accounts payable affiliates 2,089,101
1,743,106
Capital contributions payable (Note D) 145,311
155,225
----------
- ----------
2,234,412
1,898,331
----------
- ----------
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, 1997 32,206,596
34,166,449
General Partner (146,002)
(126,206)
Unrealized gain (loss) on securities
available for sale, net (628)
(628)
----------
- ----------
32,059,966
34,039,615
----------
- ----------
$34,294,378
$35,937,946
==========
==========
The accompanying notes are an integral part of these
statements.
3
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
SERIES 17
- ----------------------------
September 30,
March 31,
1997
1997
(Unaudited)
(Audited)
ASSETS -----------
- ---------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $29,555,825
$30,804,793
OTHER ASSETS
Cash and cash equivalents 508,246
539,185
Investments -
- -
Notes receivable 1,409,982
1,409,982
Deferred acquisition costs
net of accumulated amortization (Note B) 388,747
396,522
Organization costs, net of
accumulated amortization (Note B) 30,668
50,533
Other assets 1,333,493
1,329,684
----------
- ----------
$33,226,961
$34,530,699
==========
==========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ - $
- -
Accounts payable affiliates 1,876,616
1,593,932
Capital contributions payable (Note D) 1,840,259
1,844,259
----------
- ----------
3,716,875
3,438,191
----------
- ----------
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, 1997 29,644,664
31,211,262
General Partner (134,578)
(118,754)
Unrealized gain (loss) on securities
available for sale, net -
- -
----------
- ----------
29,510,086
31,092,508
----------
- ----------
$33,226,961
$34,530,699
==========
==========
The accompanying notes are an integral part of these
statements.
4
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
SERIES 18
- ----------------------------
September 30,
March 31,
1997
1997
(Unaudited)
(Audited)
ASSETS ------------
- ----------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $22,377,480
$23,513,680
OTHER ASSETS
Cash and cash equivalents 694,776
766,409
Investments 189,035
173,619
Notes receivable 536,351
536,351
Deferred acquisition costs,
new of accumulated amortization (Note B) 286,276
291,983
Organization costs, net of
accumulated amortization (Note B) 34,149
49,526
Other assets 41,931
41,564
----------
- ----------
$24,159,998
$25,373,132
==========
==========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ - $
129
Accounts payable affiliates 932,067
741,114
Capital contributions payable (Note D) 717,635
755,887
----------
- ----------
1,649,702
1,497,130
----------
- ----------
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, 1997 22,595,796
23,947,845
General Partner (85,120)
(71,463)
Unrealized gain (loss) on securities
available for sale, net (380)
(380)
----------
- ----------
22,510,296
23,876,002
----------
- ----------
$24,159,998
$25,373,132
==========
==========
The accompanying notes are an integral part of these
statements.
5
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
SERIES 19
- ----------------------------
September 30,
March 31,
1997
1997
(Unaudited)
(Audited)
ASSETS ------------
- ----------
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D) $26,265,243
$27,405,515
OTHER ASSETS
Cash and cash equivalents 1,058,423
1,189,843
Investments 1,034,443
936,153
Notes receivables -
- -
Deferred acquisition costs,
net of accumulated amortization (Note B) 364,250
371,535
Organization costs, net of
accumulated amortization (Note B) 56,588
75,394
Other assets 227,600
224,882
----------
- ----------
$29,006,547
$30,203,322
==========
==========
LIABILITIES
Accounts payable & accrued
expenses (Note C) $ 3,407 $
3,408
Accounts payable affiliates 894,555
688,881
Capital contributions payable (Note D) 684,180
831,803
----------
- ----------
1,582,142
1,524,092
----------
- ----------
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, 1997 27,502,098
28,744,375
General Partner (76,215)
(63,667)
Unrealized gain (loss) on securities
available for sale, net (1,478)
(1,478)
----------
- ----------
27,424,405
28,679,230
----------
- ----------
$29,006,547
$30,203,322
==========
==========
The accompanying notes are an integral part of these
statements.
6
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
1997 1996
---- ----
Income
Interest income $ 51,860 $ 82,820
---------- ----------
Share of loss from Operating
Partnerships (Note D) (2,953,785)
(3,406,060)
---------- ----------
Expenses
Professional fees 181,326 171,115
Fund management fee (Note C) 537,585 558,446
Amortization 55,405 61,575
General and administrative expenses 71,869 70,524
---------- ----------
846,185 861,660
---------- ----------
NET LOSS $(3,748,110)
$(4,184,900)
========== ==========
Net loss allocated to limited
partners $(3,710,629)
$(4,143,051)
========== ==========
Net loss allocated general
partner $ (37,481) $
(41,849)
========== ==========
Net loss per BAC $ (.85) $ (
.93)
========== ==========
The accompanying notes are an integral part of these
statements.
7
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
SERIES 15
- -----------------------
1997
1996
----
- ----
Income
Interest income $ 630 $
1,120
--------
- --------
Share of loss from Operating
Partnerships (662,215)
(708,211)
--------
- --------
Expenses
Professional fees 46,746
37,105
Fund management fee (Note C) 110,595
125,913
Amortization 2,628
9,186
General and administrative expenses 12,262
8,582
--------
- --------
172,231
180,786
--------
- --------
NET LOSS $(833,816)
$(887,877)
========
========
Net loss allocated to limited
partners $(825,478)
$(878,998)
========
========
Net loss allocated to general
partner $ (8,338) $
(8,879)
========
========
Net loss per BAC $ (.21) $
(.22)
========
========
The accompanying notes are an integral part of these
statements.
8
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
SERIES 16
- ------------------------
1997
1996
----
- ----
Income
Interest income $ 15,685 $
14,142
--------
- --------
Share of loss from Operating
Partnerships (595,713)
(645,998)
--------
- --------
Expenses
Professional fees 47,673
33,908
Fund management fee (Note C) 152,486
131,130
Amortization 15,370
15,372
General and administrative expenses 18,349
16,582
--------
- --------
233,878
196,992
--------
- --------
NET LOSS $(813,906)
$(828,848)
========
========
Net loss allocated to limited
partners $(805,767)
$(820,560)
========
========
Net loss allocated to general
partner $ (8,139) $
(8,288)
========
========
Net loss per BAC $ (.14) $
(.15)
========
========
The accompanying notes are an integral part of these
statements.
9
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
SERIES 17
- ------------------------
1997
1996
----
- ----
Income
Interest income $ 3,594 $
4,710
-------- --
- --------
Share of loss from Operating
Partnerships (718,001)
(1,082,278)
--------
- ----------
Expenses
Professional fees 33,229
41,418
Fund management fee (Note C) 114,981
116,959
Amortization 13,820
13,820
General and administrative expenses 14,416
10,190
--------
- ----------
176,446
182,387
--------
- ----------
NET LOSS $(890,853)
$(1,259,955)
========
==========
Net loss allocated to limited
partners $(881,944)
$(1,247,355)
========
==========
Net loss allocated to general
partner $ (8,909) $
(12,600)
========
==========
Net loss per BAC $ (.18) $
(.25)
========
==========
The accompanying notes are an integral part of these
statements.
10
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
SERIES 18
- ----------------------
1997
1996
----
- ----
Income
Interest income $ 8,310 $
9,297
--------
- --------
Share of loss from Operating
Partnerships (519,526)
(618,443)
--------
- --------
Expenses
Professional fees 28,026
19,874
Fund management fee (Note C) 78,936
88,144
Amortization 10,542
10,542
General and administrative expenses 11,764
8,713
--------
- --------
129,268
127,273
--------
- --------
NET LOSS $(640,484)
$(736,419)
========
========
Net loss allocated to limited
partners $(634,079)
$(729,055)
========
========
Net loss allocated to general
partner $ (6,405) $
(7,364)
========
========
Net loss per BAC $ (.18) $
(.20)
========
========
The accompanying notes are an integral part of these
statements.
11
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
SERIES 19
- ----------------------
1997
1996
----
- ----
Income
Interest income $ 23,641 $
53,551
--------
- --------
Share of loss from Operating
Partnerships (458,330)
(351,130)
--------
- --------
Expenses
Professional fees 25,652
38,810
Fund management fee (Note C) 80,587
96,300
Amortization 13,045
12,655
General and administrative expenses 15,078
26,457
--------
- --------
134,362
174,222
--------
- --------
NET LOSS $(569,051)
$(471,801)
========
========
Net loss allocated to limited
partners $(563,361)
$(467,083)
========
========
Net loss allocated to general
partner $ (5,690) $
(4,718)
========
========
Net loss per BAC $ (.14) $
(.11)
========
========
The accompanying notes are an integral part of these
statements.
12
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
1997 1996
---- ----
Income
Interest income $ 91,928 $ 224,955
---------- ----------
Share of loss from Operating
Partnerships (Note D) (6,486,219)
(7,267,504)
---------- ----------
Expenses
Professional fees 197,664 260,940
Fund management fee (Note C) 1,065,349 1,105,911
Amortization 110,810 123,103
General and administrative expenses 137,732 143,572
---------- ----------
1,511,555 1,633,526
---------- ----------
NET LOSS $(7,905,846)
$(8,676,075)
========== ==========
Net loss allocated to limited
partners $(7,826,789)
$(8,589,314)
========== ==========
Net loss allocated general
partner $ (79,057) $
(86,761)
========== ==========
Net loss per BAC $ (1.78) $
(1.95)
========== ==========
The accompanying notes are an integral part of these
statements.
13
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 15
- -----------------------
1997
1996
----
- ----
Income
Interest income $ 2,223 $
3,883
---------- --
- --------
Share of loss from Operating
Partnerships (1,411,484)
(1,508,293)
---------- --
- --------
Expenses
Professional fees 49,708
58,793
Fund management fee (Note C) 235,983
245,074
Amortization 5,256
18,371
General and administrative expenses 23,036
16,734
---------- --
- --------
313,983
338,972
---------- --
- --------
NET LOSS $(1,723,244)
$(1,843,382)
==========
==========
Net loss allocated to limited
partners $(1,706,012)
$(1,824,948)
==========
==========
Net loss allocated to general
partner $ (17,232) $
(18,434)
==========
==========
Net loss per BAC $ (.44) $
(.47)
==========
==========
The accompanying notes are an integral part of these
statements.
14
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 16
- ------------------------
1997
1996
----
- ----
Income
Interest income $ 24,547 $
32,107
---------- --
- --------
Share of loss from Operating
Partnerships (1,560,995)
(1,576,905)
---------- --
- --------
Expenses
Professional fees 55,750
50,327
Fund management fee (Note C) 321,831
261,755
Amortization 30,740
30,698
General and administrative expenses 34,880
30,640
---------- --
- --------
443,201
373,420
---------- --
- --------
NET LOSS $(1,979,649)
$(1,918,218)
==========
==========
Net loss allocated to limited
partners $(1,959,853)
$(1,899,036)
==========
==========
Net loss allocated to general
partner $ (19,796) $
(19,182)
==========
==========
Net loss per BAC $ (.36) $
(.35)
==========
==========
The accompanying notes are an integral part of these
statements.
15
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 17
- ------------------------
1997
1996
----
- ----
Income
Interest income $ 7,753 $
23,852
----------
- ----------
Share of loss from Operating
Partnerships (1,243,397)
(1,968,570)
----------
- ----------
Expenses
Professional fees 34,967
69,088
Fund management fee (Note C) 256,824
264,939
Amortization 27,639
27,639
General and administrative expenses 27,348
20,154
----------
- ----------
346,778
381,820
----------
- ----------
NET LOSS $(1,582,422)
$(2,326,538)
==========
==========
Net loss allocated to limited
partners $(1,566,598)
$(2,303,273)
==========
==========
Net loss allocated to general
partner $ (15,824) $
(23,265)
==========
==========
Net loss per BAC $ (.31) $
(.46)
==========
==========
The accompanying notes are an integral part of these
statements.
16
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 18
- ----------------------
1997
1996
----
- ----
Income
Interest income $ 15,552 $
23,801
---------- --
- --------
Share of loss from Operating
Partnerships (1,135,136)
(1,283,112)
---------- --
- --------
Expenses
Professional fees 29,565
29,225
Fund management fee (Note C) 173,568
174,970
Amortization 21,084
21,084
General and administrative expenses 21,905
18,223
---------- ------
- ----
246,122
243,502
---------- -
- ---------
NET LOSS $(1,365,706)
$(1,502,813)
==========
==========
Net loss allocated to limited
partners $(1,352,049)
$(1,487,785)
==========
==========
Net loss allocated to general
partner $ (13,657) $
(15,028)
==========
==========
Net loss per BAC $ (.37) $
(.41)
==========
==========
The accompanying notes are an integral part of these
statements.
17
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
SERIES 19
- ----------------------
1997
1996
----
- ----
Income
Interest income $ 41,853 $
141,312
---------- --
- --------
Share of loss from Operating
Partnerships (1,135,207)
(930,624)
---------- --
- --------
Expenses
Professional fees 27,674
53,507
Fund management fee (Note C) 77,143
159,173
Amortization 26,091
25,311
General and administrative expenses 30,563
57,821
---------- --
- --------
161,471
295,812
---------- --
- --------
NET LOSS $(1,254,825)
$(1,085,124)
==========
==========
Net loss allocated to limited
partners $(1,242,277)
$(1,074,273)
==========
==========
Net loss allocated to general
partner $ (12,548) $
(10,851)
==========
==========
Net loss per BAC $ (.30) $
(.26)
==========
==========
The accompanying notes are an integral part of these
statements.
18
Boston Capital Tax Credit Fund III L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Six Months Ended September 30, 1997
(Unaudited)
Unrealized
gain (loss) on
securities
available
General for
Assignees Partner sale, net
Total
--------- ------- ---------
- -----
Partners' capital
(deficit)
April 1, 1997 $136,032,541 $(534,681) $ (2,486)
$135,495,374
Net change in
unrealized gain
(loss) on secur-
ities available
for sale - - -
- -
Net income (loss) (7,826,789) (79,057) -
(7,905,846)
----------- -------- ---------
- -----------
Partners' capital
(deficit),
September 30, 1997 $128,205,752 $(613,738) $ (2,486)
$127,589,528
=========== ======== ==========
===========
The accompanying notes are an integral part of these
statements.
19
Boston Capital Tax Credit Fund III L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Six Months Ended September 30, 1997
(Unaudited)
Unrealized
gain (loss) on
securities
available
General for
Assignees Partner sale,net
Total
--------- ------- --------
- -----
Series 15
- ---------
Partners' capital
(deficit),
April 1, 1997 $17,962,610 $ (154,591) $ -
$17,808,019
Net change in
unrealized gain
(loss) on secur-
ities available
for sale - - -
- -
Net income (loss) (1,706,012) (17,232) -
(1,723,244)
---------- -------- ----------
- ----------
Partners' capital
(deficit),
September 30, 1997 $16,256,598 $ (171,823) $ -
$16,084,775
========== ======== ==========
==========
Series 16
- ---------
Partners' capital
(deficit),
April 1, 1997 $34,166,449 $ (126,206) $ (628)
$34,039,615
Net change in
unrealized gain
(loss) on secur-
ities available
for sale - - -
- -
Net income (loss) (1,959,853) (19,796) -
(1,979,649)
---------- -------- ---------
- ----------
Partners' capital
(deficit),
September 30, 1997 $32,206,596 $(146,002) $ (628)
$32,059,966
========== ======== =========
==========
The accompanying notes are an integral part of these
statements.
20
Boston Capital Tax Credit Fund III L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Six Months Ended September 30, 1997
(Unaudited)
Unrealized
gain (loss) on
securities
available
General for
Assignees Partner sale,net
Total
--------- ------- --------
- -----
Series 17
- ---------
Partners' capital
(deficit),
April 1, 1997 $31,211,262 $(118,754) $ -
$31,092,508
Net change in
unrealized gain
(loss) on secur-
ities available
for sale - - -
- -
Net income (loss) (1,566,598) (15,824) -
(1,582,422)
---------- -------- ---------
- ----------
Partners' capital
(deficit),
September 30, 1997 $29,644,664 $(134,578) $ -
$29,510,086
========== ======== =========
==========
Series 18
- ---------
Partners' capital
(deficit),
April 1, 1997 $23,947,845 $ (71,463) $ (380)
$23,876,002
Net change in
unrealized gain
(loss) on secur-
ities available
for sale - - -
- -
Net income (loss) (1,352,049) (13,657) -
(1,365,706)
---------- ------- ---------
- ----------
Partners' capital
(deficit),
September 30, 1997 $22,595,796 $(85,120) $ (380)
$22,510,296
========== ======= =========
==========
The accompanying notes are an integral part of these
statements.
21
Boston Capital Tax Credit Fund III L.P.
STATEMENT OF CHANGES IN PARTNERS' CAPITAL
Six Months Ended September 30, 1997
(Unaudited)
Unrealized
gain (loss) on
securities
available
General for
Assignees Partner sale,net
Total
--------- ------- --------
- -----
Series 19
- ---------
Partners' capital
(deficit),
April 1, 1997 $28,744,375 $ (63,667) $ (1,478)
$28,679,230
Net change in
unrealized gain
(loss) on secur-
ities available
for sale - - -
- -
Net income (loss) (1,242,277) (12,548) -
(1,254,825)
---------- -------- ----------
- ----------
Partners' capital
(deficit),
September 30, 1997 $27,502,098 $ (76,215) $ (1,478)
$27,424,405
========== ======== ==========
==========
22
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30, 1997
(Unaudited)
1997
1996
----
- ----
Cash flows from operating activities:
Net loss $ (7,905,846) $
(8,676,075)
Adjustments
Distributions from Operating
Partnerships 17,436
5,412
Amortization 110,810
123,103
Share of loss from Operating
Partnerships 6,486,219 7,267,504
Changes in assets and liabilities
(Decrease) Increase in accounts
payable and accrued expenses (129)
(69,153)
Decrease (Increase) in accounts
receivable (7,677)
555,176
Decrease (Increase) in accounts
payable affiliates 1,299,332
1,289,233
----------
- ----------
Net cash (used in) provided by
operating activities 145
495,200
----------
- ----------
Cash flows from investing activities:
Acquisition costs repaid (paid) for
Operating Partnerships acquired or
to acquire -
15,000
Capital contributions paid to
Operating Partnerships (344,925)
(5,930,833)
Advances to Operating Partnerships -
2,597,334
Investments (142,968)
1,710,839
----------
- -----------
Net cash (used in) provided by
investing activities (487,893)
(1,607,660)
----------
- ----------
23
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
1997
1996
----
- ----
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 (487,748)
(1,111,667)
----------
- ----------
Cash and cash equivalents, beginning 3,925,706
4,958,860
----------
- ----------
Cash and cash equivalents, ending $ 3,437,958 $
3,847,193
==========
==========
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
==========
==========
The accompanying notes are an integral part of these
statements.
24
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 15
- -------------------------
1997
1996
----
- ----
Cash flows from operating activities:
Net loss $(1,723,244)
$(1,843,382)
Adjustments
Distributions from Operating
Partnerships 3,017
1,096
Amortization 5,256
18,371
Share of loss from Operating
Partnerships 1,411,484
1,508,293
Changes in assets and liabilities
(Decrease) increase in accounts
payable and accrued expenses 1
(67,711)
Decrease (Increase) in accounts
receivable -
(44,215)
Decrease (Increase) in accounts
payable affiliates 274,026
274,020
-------- -
- --------
Net cash (used in) provided by
operating activities (29,460)
(153,528)
-------- -
- --------
Cash flows from investing activities:
Acquisition costs repaid (paid) for
Operating Partnerships acquired or
to acquire -
2,640
Capital contributions paid to Operating
Partnerships (145,068)
(14,705)
Advances to Operating Partnerships -
- -
Investments -
151,594
-------- -
- --------
Net cash (used in) provided by
investing activities (145,068)
139,529
-------- -
- --------
25
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 15
- ----------------------
1997
1996
----
- ----
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 (174,528)
(13,999)
Cash and cash equivalents, beginning 246,845
163,428
--------
- --------
Cash and cash equivalents, ending $ 72,317 $
149,429
========
========
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
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 16
- -------------------------
1997
1996
----
- ----
Cash flows from operating activities:
Net loss $(1,979,649)
$(1,918,218)
Adjustments
Distributions from Operating
Partnerships 2,653
678
Amortization 30,740
30,698
Share of loss from Operating
Partnerships 1,560,995
1,576,905
Changes in assets and liabilities
(Decrease) increase in accounts
payable and accrued expenses -
(100)
Decrease (Increase) in accounts
receivable (786)
24,182
Decrease (Increase) in accounts
payable affiliates 345,995
345,952
----------
- ----------
Net cash (used in) provided by
operating activities (40,052)
60,097
----------
- ----------
Cash flows from investing activities:
Acquisition costs repaid (paid) for
Operating Partnerships acquired or
to acquire -
3,700
Capital contributions paid to Operating
Partnerships (9,914)
(712,752)
Advances to Operating Partnerships -
483,464
Investments (29,262)
79,065
----------
- ----------
Net cash (used in) provided by
investing activities (39,176)
(146,523)
----------
- ----------
27
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 16
- -----------------------
1997 1996
----
- -----
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 (79,228)
(86,426)
Cash and cash equivalents, beginning 1,183,424
1,429,491
----------
- ----------
Cash and cash equivalents, ending $ 1,104,196 $
1,343,065
==========
==========
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
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 17
- -------------------------
1997
1996
----
- ----
Cash flows from operating activities:
Net loss $(1,582,422)
$(2,326,538)
Adjustments
Distributions from Operating
Partnerships 5,570
1,166
Amortization 27,639
27,639
Share of loss from Operating
Partnerships 1,243,397
1,968,570
Changes in assets and liabilities
(Decrease) increase in accounts
payable and accrued expenses -
- -
Decrease (Increase) in accounts
receivable (3,807)
(6,058)
Decrease (Increase) in accounts
payable affiliates 282,684
289,578
----------
- ----------
Net cash (used in) provided by
operating activities (26,939)
(45,643)
----------
- ----------
Cash flows from investing activities:
Acquisition costs repaid (paid) for
Operating Partnerships acquired or
to acquire -
3,410
Capital contributions paid to Operating
Partnerships (4,000)
(217,177)
Advances to Operating Partnerships -
15,000
Investments -
628,486
----------
- ----------
Net cash (used in) provided by
investing activates (4,000)
429,719
----------
- ----------
29
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 17
- ------------------------
1997 1996
---- ----
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 (30,939)
384,076
Cash and cash equivalents, beginning 539,185
285,417
----------
- ----------
Cash and cash equivalents, ending $ 508,246 $
669,493
==========
==========
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
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 18
- -------------------------
1997
1996
----
- ----
Cash flows from operating activities:
Net loss $(1,365,706)
$(1,502,813)
Adjustments
Distributions from Operating
Partnerships 1,132
2,472
Amortization 21,084
21,084
Share of loss from Operating
Partnerships 1,135,136
1,283,112
Changes in assets and liabilities
(Decrease) increase in accounts
payable and accrued expenses (129)
(1,621)
Decrease (Increase) in accounts
receivable (367)
6,336
Decrease (Increase) in accounts
payable affiliates 190,953
190,848
----------
- ----------
Net cash (used in) provided by
operating activities (17,897)
(582)
----------
- ----------
Cash flows from investing activities:
Acquisition costs repaid (paid) for
Operating Partnerships acquired or
to acquire -
2,465
Capital contributions paid to Operating
Partnerships (38,320)
(155,948)
Advances to Operating Partnerships -
- -
Investments (15,416)
453,992
----------
- ----------
Net cash (used in) provided by
investing activities (53,736)
300,509
----------
- ----------
31
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 18
- -----------------------
1997 1996
---- ----
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 (71,633)
299,927
Cash and cash equivalents, beginning 766,409
529,400
---------
- ----------
Cash and cash equivalents, ending $ 694,776 $
829,327
=========
==========
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
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 19
- -------------------------
1997
1996
----
- ----
Cash flows from operating activities:
Net loss $(1,254,825)
$(1,085,124)
Adjustments
Distributions from Operating
Partnerships 5,064
- -
Amortization 26,091
25,311
Share of loss from Operating
Partnerships 1,135,207
930,624
Changes in assets and liabilities
(Decrease) increase in accounts
payable and accrued expenses (1)
279
Decrease (Increase) in accounts
receivable (2,717)
574,931
Decrease (Increase) in accounts
payable affiliates 205,674
188,835
----------
- ----------
Net cash (used in) provided by
operating activities 114,493
634,856
----------
- ----------
Cash flows from investing activities:
Acquisition costs repaid (paid) for
Operating Partnerships acquired or
to acquire -
2,785
Capital contributions paid to Operating
Partnerships (147,623)
(4,830,251)
Advances to Operating Partnerships -
2,098,870
Investments (98,290)
397,702
----------
- ----------
Net cash (used in) provided by
investing activities (245,913)
(2,330,894)
----------
- ---------
33
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 19
- ------------------------
1997 1996
---- ----
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 (131,420)
(1,695,245)
Cash and cash equivalents, beginning 1,189,843
2,551,124
----------
- ----------
Cash and cash equivalents, ending $ 1,058,423 $
855,879
==========
==========
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
==========
==========
The accompanying notes are an integral part of these
statements.
34
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
(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
Fund issued
the last BACs in Series 19 on December 17, 1993. This concluded
the Public
Offering of the Fund.
35
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(Unaudited)
NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES
The condensed financial statements included herein as of
September 30, 1997
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, 1997
by contractual maturity are as follows:
Amortized
Cost
-----------
Due in one year or less $1,538,763
Due after one year -
---------
Total $1,538,763
=========
The fair market value of the securities is $1,536,277. The
difference being
an unrealized loss on securities available for sale of $2,486, as
of
September 30, 1997.
36
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(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,
1997 and 1996 the Fund has accumulated organization amortization
totaling
$790,707 and $624,866 respectively. The breakdown of accumulated
organization
amortization within the Fund as of September 30, 1997 and 1996 is
as follows:
1997 1996
---- ----
Series 15 $167,077 $153,961
Series 16 205,594 160,964
Series 17 175,219 135,490
Series 18 116,147 85,392
Series 19 126,670 89,059
------- -------
$790,707 $624,866
======= =======
On July 1, 1995, the Fund began amortizing unallocated
acquisition costs over
330 months from April 1, 1995. As of September 30, 1997 the Fund
has
accumulated unallocated acquisition amortization totaling
$169,973. The
breakdown of accumulated unallocated acquisition amortization
within the fund
as of September 30, 1997 for Series 15, Series 16, Series 17,
Series 18, and
Series 19 is $26,379, $42,133, $39,003, $28,664 and $33,799,
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, 1997 all series had completed payment of all
acquisition
fees due to Boston Capital Partners, Inc.
37
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(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, 1997 and 1996 are as follows:
1997 1996
---- ----
Series 15 $137,013 $137,013
Series 16 172,995 172,968
Series 17 142,488 141,348
Series 18 95,487 95,424
Series 19 102,837 96,300
------- -------
$650,820 $643,053
======= =======
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS
At September 30, 1997 and 1996, the Fund had limited partnership
interests in
241 Operating Partnerships which own or are constructing
apartment complexes.
The breakdown of Operating Partnerships within the Fund at
September 30, 1997
and 1996 is as follows:
1997 1996
---- ----
Series 15 68 68
Series 16 64 64
Series 17 49 49
Series 18 34 34
Series 19 26 26
--- ---
241 241
=== ===
38
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(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, 1997 and
1996 are as
follows:
1997 1996
---- ----
Series 15 $ 34,528 $ 189,312
Series 16 145,311 155,255
Series 17 1,840,259 2,090,611
Series 18 717,635 756,295
Series 19 684,180 2,577,367
--------- ----------
$3,421,913 $ 5,768,840
========= ==========
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, 1997.
39
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
Series 15
- ---------------------------
1997 1996
---- ----
Revenues
Rental $ 4,675,328 $
4,513,330
Interest and other 218,980
252,380
---------
- ---------
4,894,308
4,765,710
---------
- ---------
Expenses
Interest 1,508,149
1,593,940
Depreciation and amortization 2,034,327
2,018,829
Operating expenses 2,871,634
2,703,877
---------
- ---------
6,414,110
6,316,646
---------
- ---------
NET LOSS $(1,519,802)
$(1,550,936)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
III L.P. $(1,411,484)
$(1,508,293)
=========
=========
Net loss allocated to other
partners $ (15,198) $
(15,510)
=========
=========
Net loss suspended $ (93,120) $
(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
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
Series 16
- --------------------------
1997 1996
---- ----
Revenues
Rental $ 6,076,922 $
5,926,919
Interest and other 492,341
464,389
----------
- ----------
6,569,263
6,391,308
----------
- ----------
Expenses
Interest 2,140,469
2,022,957
Depreciation and amortization 2,257,796
2,463,062
Operating expenses 3,747,760
3,498,891
----------
- ----------
8,146,025
7,984,910
----------
- ----------
NET LOSS $(1,576,762)
$(1,593,602)
==========
==========
Net loss allocated to Boston
Capital Tax Credit Fund
III L.P. $(1,560,995)
$(1,577,666)
==========
==========
Net loss allocated to other
partners $ (15,767) $
(15,936)
==========
==========
41
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months ended June 30,
(Unaudited)
Series 17
- --------------------------
1997 1996
Revenues ---- ----
Rental $ 6,125,371 $
5,408,971
Interest and other 251,581
195,250
----------
- ---------
6,376,952
5,604,221
----------
- ---------
Expenses
Interest 2,296,620
2,370,100
Depreciation and amortization 1,993,456
1,892,667
Operating expenses 3,342,831
3,329,909
----------
- ---------
7,632,907
7,592,676
----------
- ---------
NET LOSS $(1,255,955)
$(1,988,455)
==========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
III L.P. $(1,243,397)
$(1,968,570)
==========
=========
Net loss allocated to other
partners $ (12,558) $
(19,885)
==========
=========
42
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
Series 18
- ----------------------------
1997 1996
Revenues ---- ----
Rental $ 3,052,863
$2,880,998
Interest and other 151,299
116,979
---------
- ---------
3,204,162
2,997,977
---------
- ---------
Expenses
Interest 1,116,578
1,022,766
Depreciation and amortization 1,426,453
1,484,915
Operating expenses 1,807,734
1,786,368
---------
- ---------
4,350,765
4,294,049
---------
- ---------
NET LOSS $(1,146,603)
$(1,296,072)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
III L.P. $(1,135,136)
$(1,283,112)
=========
=========
Net loss allocated to other
partners $ (11,467) $
(12,960)
=========
=========
43
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
Series 19
- --------------------------
1997 1996
Revenues ---- ----
Rental $ 4,338,435 $
4,002,983
Interest and other 148,618
123,221
---------
- ---------
4,487,053
4,126,204
---------
- ---------
Expenses
Interest 1,815,802
1,463,473
Depreciation and amortization 1,488,051
1,151,242
Operating expenses 2,329,874
2,451,513
---------
- ---------
5,633,727
5,066,228
---------
- ---------
NET LOSS $(1,146,674) $
(940,024)
=========
=========
Net loss allocated to Boston
Capital Tax Credit Fund
III L.P. $(1,135,207) $
(930,624)
=========
=========
Net loss allocated to other
partners $ (11,467) $
(9,400)
=========
=========
44
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 1997
(Unaudited)
NOTE D - INVESTMENT IN OPERATING PARTNERSHIPS-CONTINUED
When comparing the results of operations from the operating
partnerships for
the six months ended June 30, 1997 and June 30, 1996 for Series
17 and 19,
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 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, 1998
is expected
to differ from its loss for financial reporting purposes. This
is primarily
due to accounting differences in depreciation incurred by the
Operating
Partnerships and also differences between the equity method of
accounting
and the IRS accounting methods. 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
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, 1997, none of Series 15
net
offering proceeds had been used to pay capital contributions.
Series 15
net offering proceeds in the amount of $34,528 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,
1997.
(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
During the quarter ended September 30, 1997, $1,500 of Series 16
net
offering proceeds had been used to pay capital contributions.
Series 16 net
offering proceeds in the amount of $145,311 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, 1997.
(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
$36,538,204.
During the quarter ended September 30, 1997, none of Series 17
net offering
proceeds had been used to pay capital contributions. Series 17
net offering
proceeds in the amount of $508,246 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, 1997.
(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, 1997 none of Series 18 net
offering
proceeds had been used to pay capital contributions. Series 18
net offering
proceeds in the amount of $717,635 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, 1997.
(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 $29,614,506.
During the quarter ended September 30, 1997 none of Series 19 net
offering proceeds had been used to pay capital contributions.
Series 19 net
offering proceeds in the amount of $684,180 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, 1997.
Results of Operations
- ---------------------
As of September 30, 1997 and 1996 the Fund held limited
partnership interests
in 241 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
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, 1997. 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 by the
Operating
Partnerships. The fund management fees incurred for the quarter
ended
September 30, 1997 for Series 15, Series 16, Series 17, Series 18
and Series
19 were $110,595, $152,486, $114,981, $78,936, and $80,587
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, 1997 and 1996, the average
qualified
occupancy for the series was 100% and 100%, respectively. The
series had a
total of 68 properties at September 30, 1997 all of which were at
100%
qualified occupancy.
For the six months being reported Series 15 reflects a net loss
from
Operating Partnerships of $1,519,802. When adjusted for
depreciation,
which is a non-cash item, the Operating Partnerships reflect
positive
operations of $514,525. This is an interim period estimate; it
is not
necessarily indicative of the final year end results.
48
California Investors VII Limited Partnership was operating at a
deficit due
to higher than projected operating expenses and a competitive
rental market.
Operating shortfalls caused the accrual of accounts payable. The
Operating
Partnership closed on a debt refinancing in the fourth quarter of
1996. The
favorable interest rate enabled the Operating Partnership to
payoff the
accrued accounts payable and reduced the monthly debt payment.
The
refinancing should also create increased operating stability for
the Operating
Partnership.
The new management company at Hidden Cove continues to make
improvements to
the tenant base and occupancy, which stands at 93% at September 30,
1997, however
the property is still generating operating deficits. As such,
the management
company is implementing cost saving measures to mitigate these
deficits and stabilize the property.
(Series 16) As of September 30, 1997 and 1996, the average
qualified
occupancy for the series was 99.6% and 100%, respectively. The
series had a
total of 64 properties at September 30, 1997. Out of the total
62 had 100%
qualified occupancy.
For the six months being reported Series 16 reflects a net loss
from
Operating Partnerships of $1,576,762. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect positive
operations of
$681,034. This is an interim period estimate; it is not
necessarily
indicative of the final year end results.
The Operating General Partner of Mariner's Pointe Limited
Partnership I and
Mariner's Pointe Limited Partnership II pledged his general
partnership
interest to an unaffiliated lending institution. As this was a
violation of the terms of the partnership agreement, the
Operating General Partner was removed and replaced. The
properties are operating at a slightly negative cash flow. The
deficits are being funded by the new General Partner.
(Series 17) As of September 30, 1997 and 1996, the average
qualified
occupancy for the series was 99.7% and 99.6%, respectively. The
series had a
total of 49 properties at September 30, 1997. Out of the total
48 had 100%
qualified occupancy.
For the six months being reported Series 17 reflects a net loss
from
Operating Partnerships of $1,255,955. When adjusted for
depreciation, which,
is a non-cash item, the Operating Partnerships reflect positive
operations of $737,501. This is an interim period estimate; it is
not necessarily indicative of the final year end results.
Annadale Housing Partners has reported net losses due to
operational issues
associated with the property. The Operating Partnership has
stabilized
since the completion of rehabilitation and occupancy has shown
steady
improvement. Occupancy is at 95% as of September 30, 1997.
49
California Investors VII Limited Partnership was operating at a
deficit due
to higher than projected operating expenses and a competitive
rental market.
Operating shortfalls caused the accrual of accounts payable. The
Operating
Partnership closed on a debt refinancing in the fourth quarter of
1996. The
favorable interest rate enabled the Operating Partnership to
payoff the
accrued accounts payable and reduced the monthly debt payment.
The
refinancing should also create increased operating stability for
the Operating
Partnership.
The property owned by California Investors VI L.P. has
experienced a reduction
in occupancy, which stands at 92% at September 30, 1997. The
management company is increasing their marketing efforts, as well
as implementing capital
improvements to the property to attract tenants. These efforts
should improve
occupancy and stabilize the property.
(Series 18) As of September 30, 1997 and 1996 the average
qualified occupancy
for the series was 100% and 100% respectively. The series had a
total of 34
properties at September 30, 1997 all of which were at 100%
qualified
occupancy.
For the six months being reported Series 18 reflects a net loss
from
Operating Partnerships of $1,146,603. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect positive
operations of
$279,850. 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.
Efforts by the Operating General Partner to settle the complaint
have been unsuccessful. At this time, the Investment Limited
Partner is examining the possibility of Operating General Partner
removal and the pursuit of a separate settlement on behalf of the
Operating Partnership.
(Series 19) As of September 30, 1997 and 1996 the average
qualified occupancy
for the series was 100% and 99.9% respectively. The series had a
total of 26
properties at September 30, 1997. All of which were at 100%
qualified
occupancy.
For the six months being reported Series 19 reflects a net loss
from
Operating Partnerships of $1,146,674. When adjusted for
depreciation, which
is a non-cash item, the Operating Partnerships reflect positive
operations of
$341,377. This is an interim period estimate; it is not
necessarily indicative
of the final year end results.
50
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
51
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 17, 1997 By: /s/ John P. Manning
-------------------
John P. Manning,
Partner & Principal
Financial
Officer
52
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<ARTICLE> CT
<CIK> 0000879555
<NAME> BOSTON CAPITAL TAX CREDIT FUND III LP
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> SEP-30-1997
<TOTAL-ASSETS> 138,895,051
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 138,895,051
<TOTAL-REVENUES> 91,928
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