BOSTON CAPITAL TAX CREDIT FUND III L P
10-Q, 2000-11-20
OPERATORS OF APARTMENT BUILDINGS
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FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

(X)   QUARTERLY REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934.

      For the quarterly period ended September 30, 2000

                                              or

( )   TRANSITION REPORT PERSUANT 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

(I.R.S. Employer

of incorporation or organization)

Identification No.)

 

One Boston Place, Suite 2100, Boston, Massachusetts  02108
(Address of principal executive offices)           (Zip Code)

Registrants 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 preceeding 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, 2000

TABLE OF CONTENTS

FOR THE QUARTER ENDED SEPTEMBER 30, 2000 *

BALANCE SHEETS *

Series 15 *

Series 16 *

Series 17 *

Series 18 *

Series 19 *

STATEMENTS OF OPERATIONS *

Three Months Ended SEPTEMBER 30, *

Series 15 *

Series 16 *

Series 17 *

Series 18 *

Series 19 *

SIX Months Ended SEPTEMBER 30, 16

Series 15 17

Series 16 18

Series 17 *

Series 18 20

Series 19 21

STATEMENTS OF CHANGES IN PARTNERS CAPITAL 22

Series 15 23

Series 16 23

Series 17 24

Series 18 24

Series 19 25

STATEMENTS OF CASH FLOWS 26

SIX MONTHS Ended SEPTEMBER

Series 15 *

Series 16 30

Series 17 32

Series 18 34

Series 19 *

NOTES TO FINANCIAL STATEMENTS *

NOTE A - ORGANIZATION *

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES *

Investment Securities *

Cost

NOTE C - RELATED PARTY TRANSACTIONS 41

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS 41

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS 43

Series 15 43

Series 16 44

Series 17 45

Series 18 46

Series 19 *

Liquidity *

Capital Resources *

Results of Operations 50

PART II - OTHER INFORMATION 55

SIGNATURES 56

 

Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS

 

 

September 30,

2000

(Unaudited)

March 31,

2000

(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)

$ 91,739,178

$ 96,374,955
     

OTHER ASSETS

    

Cash and cash equivalents

1,717,309

1,754,063

Investments

1,574,301

1,538,967

Notes receivable

1,309,982

1,364,322

Deferred acquisition costs, net of accumulated amortization (Note B)

 

 

1,508,901

 

 

1,543,349

Other assets

3,021,745

2,940,636
 

$100,871,416

$105,516,292
     

LIABILITIES

    
     

Accounts payable & accrued expenses
(Note C)

 

$      4,551

 

$      4,553

Accounts payable affiliates

14,705,733

13,374,147

Capital contributions payable

1,422,250

1,432,250
 

16,132,534

14,810,950
     

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 March 31, 2000

 

 

 

 

 

 

85,781,154

 

 

 

 

 

91,687,950

General Partner

(1,042,272)

(982,608)
 

84,738,882

90,705,342
 

$100,871,416

$105,516,292

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS

Series 15

 

 

September 30,
2000
(Unaudited)

March 31,
2000
(Audited)

ASSETS

 

 

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

 

$11,451,111

 

$12,293,726
     

OTHER ASSETS

    

Cash and cash equivalents

332,986

   308,497

Investments

141,938

135,167

Notes receivable

-

32,170

Deferred acquisition costs,
   net of accumulated amortization
  (Note B)

 

 

231,256

 

 

236,512

Other assets

855,487

858,625
 

$13,012,778

$13,864,697
     

LIABILITIES

    
     

Accounts payable & accrued expenses
  (Note C)

 

$     1,145

 

$      1,145

Accounts payable affiliates

4,008,439

3,734,413

Capital contributions payable

32,922

32,922
 

4,042,506

3,768,480
     

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 March 31, 2000

 

 

 

 

 

9,213,240

 

 

 

 

 

10,327,926

General Partner

(242,968)

(231,709)
 

8,970,272

10,096,217
 

$13,012,778

$13,864,697







The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS

Series 16



September 30,
2000
(Unaudited)

March 31,
2000
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (Note D)

 

$22,435,599

 

$23,933,776
     

OTHER ASSETS

    

Cash and cash equivalents

288,981

   307,415

Investments

666,351

652,708

Notes receivable

-

-

Deferred acquisition costs,
   net of accumulated amortization
  (Note B)

 

 

370,746

 

 

379,171

Other assets

134,642

130,891
 

$23,896,319

$25,403,961
     

LIABILITIES

    
     

Accounts payable & accrued expenses
  (Note C)

 

$         -

 

$         -

Accounts payable affiliates

3,465,035

3,119,046

Capital contributions payable

140,006

140,006
 

3,605,041

3,259,052
     

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 March 31, 2000

 

 

 

 

 

20,554,974

  

 

 

 

 

 

22,390,069

General Partner

(263,696)

(245,160)

 

20,291,278

22,144,909
 

$23,896,319

$25,403,961


 



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS

Series 17



September 30,
2000
(Unaudited)

March 31,
2000
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (Note D)

 

$20,801,853

 

$21,661,017
     

OTHER ASSETS

    

Cash and cash equivalents

415,285

   404,005

Investments

-

-

Notes receivable

1,309,982

1,332,152

Deferred acquisition costs,
   net of accumulated amortization
  (Note B)

 

 

334,323

 

 

342,098

Other assets

1,919,943

1,874,478
 

$24,781,386

$25,613,750
     

LIABILITIES

    
     

Accounts payable & accrued expenses
  (Note C)

 

$         -  

 

$         -

Accounts payable affiliates

4,300,749

3,985,826

Capital contributions payable

1,206,768

1,206,768
 

5,507,517

5,192,594
     

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 March 31, 2000

 

 

 

 

 

19,510,810

 

 

 

 

 

20,646,624

General Partner

(236,941)

(225,468)
 

19,273,869

20,421,156
 

$24,781,386

$25,613,750






The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS

Series 18



September 30,
2000
(Unaudited)

March 31,
2000
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING  

   PARTNERSHIPS (NOTE D)

 

$ 15,886,146

 

$ 16,650,144
     

OTHER ASSETS

    

Cash and cash equivalents

360,375

  377,094

Investments

107,824

102,771

Notes receivable

-

-

Deferred acquisition costs, net of

   accumulated amortization(Note B)

 

 

252,036

 

 

257,743

Other assets

89,592

62,002
 

$16,695,973

$17,449,754
     

LIABILITIES

    
     

Accounts payable & accrued expenses

  (Note C)


$          -

 

$          -

Accounts payable affiliates

1,852,911

1,661,937

Capital contributions payable

18,554

18,554
 

1,871,465

1,680,491
     

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 March 31, 2000

 

 

 

 

 

14,986,491

 

 

 

 

 

15,921,798

General Partner

(161,983)

(152,535)
 

14,824,508

15,769,263
 

$16,695,973

$17,449,754





The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS

Series 19



September 30,
2000
(Unaudited)

March 31,
2000
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (NOTE D)    

 

$21,164,469

 

$ 21,836,292
     

OTHER ASSETS

    

Cash and cash equivalents

319,682

  357,052

Investments

658,188

648,321

Notes receivable

-

-

Deferred acquisition costs,
   net of accumulated amortization
   (Note B)

 

 

320,540

 

 

327,825

Other assets

22,081

14,640
 

$22,484,960

$23,184,130
     

LIABILITIES

    
     

Accounts payable & accrued expenses
   (Note C)

 

$     3,406

 

$      3,408

Accounts payable affiliates

1,078,599

872,925

Capital contributions payable

24,000

34,000
 

1,106,005

910,333
     

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 March 31, 2000

 

 

 

 

 

21,515,639

 

 

 

 

 

22,401,533

General Partner

(136,684)

(127,736)
 

21,378,955

22,273,797
 

$22,484,960

$23,184,130






The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)

 


2000


1999
     

Income

    

  Interest income

$     37,213

$     44,332

  Other income

-

     12,900
 

37,213

57,232

Share of loss from Operating
  Partnerships(Note D)

(2,124,298)

(2,831,342)
     

Expenses

    

  Professional fees

115,440

110,850

  Fund management fee (Note C)

629,550

574,925

  Amortization

17,224

17,224

  General and administrative expenses

     33,235

     33,074

  

795,449

   736,073
     

  NET LOSS

$(2,882,534)

$(3,510,183)
     

Net loss allocated to limited partners

$(2,853,709)

$(3,475,081)
     

Net loss allocated general partner

$   (28,825)

$   (35,102)
     

Net loss per BAC

$      (.64)

$      (.77)
     






















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended September 30,
(Unaudited)

Series 15


2000


1999
     

Income

    

  Interest income

$     4,881

$   6,346

Other income

-

-

4,881

6,346

Share of loss from Operating
  Partnerships(Note D)

(387,097)

(392,273)
     

Expenses

    

  Professional fees

27,000

27,120

  Fund management fee    

130,963

115,958

  Amortization

2,628

2,628

  General and administrative expenses

6,936

     7,553

  

167,527

   153,259
     

  NET LOSS

$ (549,743)

$ (539,186)
     

Net loss allocated to limited partners

$ (544,246)

$ (533,794)
     

Net loss allocated general partner

$   (5,497)

$   (5,392)
     

Net loss per BAC

$     (.14)

$     (.13)
     





















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended September 30,
(Unaudited)

Series 16


2000


1999
     

Income

    

  Interest income

$    10,715

$     12,421

  Other income

      -

       150
 

       10,715

12,571

Share of loss from Operating
  Partnerships(Note D)

  (674,182)

(928,850)
     

Expenses

    

  Professional fees

27,500

29,870

  Fund management fee    

170,359

162,551

  Amortization

4,213

     4,213

  General and administrative expenses

7,604

     10,241

  

209,676

   206,875
     

  NET LOSS

$  (873,143)

$(1,123,154)
     

Net loss allocated to limited partners

$  (864,412)

$(1,111,922)
     

Net loss allocated general partner

$    (8,731)

$   (11,232)
     

Net loss per BAC

$      (.16)

$      (.21)
     

















 

 


The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended September 30,
(Unaudited)

Series 17


2000


1999
     

Income

    

  Interest income

$      3,247

$    3,302

  Other income

        -

    11,850
 

3,247

15,152

Share of loss from Operating
  Partnerships(Note D)

(384,948)

(625,056)
     

Expenses

    

  Professional fees

22,000

22,120

  Fund management fee    

132,904

125,592

  Amortization

3,887

3,887

  General and administrative expenses

  7,972

 1,458

  

166,763

153,057
     

  NET LOSS

$ (548,464)

$ (762,961)
     

Net loss allocated to limited partners

$ (542,979)

$ (755,331)
     

Net loss allocated general partner

$    (5,485)

$   (7,630)
     

Net loss per BAC

$      (.11)

$      (.15)
     






















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended September 30,
(Unaudited)

Series 18


2000


1999
     

Income

    

  Interest Income

$      3,397

$    4,556

 

-

-
 

3,397

4,556

Share of loss from Operating
  Partnerships(Note D)

(340,994)

  (474,421)
     

Expenses

    

  Professional fees

18,066

17,120

  Fund management fee    

92,487

70,487

  Amortization

2,853

2,853

  General and administrative expenses

      5,014

      6,432

  

    118,420

  96,892

     

  NET LOSS

$ (456,017)

$ (566,757)
     

Net loss allocated to limited partners

$ (451,457)

$ (561,089)
     

Net loss allocated general partner

$    (4,560)

$   (5,668)
     

Net loss per BAC

$      (.12)

$      (.15)
     






















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended September 30,
(Unaudited)

Series 19


2000


1999
     

Income

    

  Interest income

$     14,973

$    17,707

  Other income

       -

900

 

14,973

18,607

Share of loss from Operating
  Partnerships(Note D)

  (337,077)

  (410,742)
     

Expenses

    

  Professional fees

20,874

14,620

  Fund management fee    

102,837

100,337

  Amortization

3,643

3,643

  General and administrative expenses

      5,709

      7,390

  

    133,063

125,990
     

  NET LOSS

$  (455,167)

$  (518,125)
     

Net loss allocated to limited partners

$  (450,615)

$  (512,944)
     

Net loss allocated general partner

$    (4,552)

$    (5,181)

Net loss per BAC

$      (.11)

$      (.13)
     






















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)


2000


1999
     

Income

    

  Interest income

$    65,392

$    93,885

  Other income

       999

23,117

 

66,391

117,002

Share of loss from Operating
  Partnerships(Note D)

(4,614,002)

(5,545,739)
     

Expenses

    

  Professional fees

128,812

163,737

  Fund management fee (Note C)

1,177,365

1,169,952

  Amortization

34,448

34,618

  General and administrative expenses

78,224

     93,160

  

  1,418,849

1,461,467
     

  NET LOSS

$(5,966,460)

$(6,890,204)
     

Net loss allocated to limited partners

$(5,906,796)

$(6,821,302)
     

Net loss allocated general partner

$ (59,664)

$   (68,902)

Net loss per BAC

$ (1.33)

$     (1.53)
     






















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)

Series 15


2000


1999
     

Income

    

  Interest income

$ 9,175

$    19,840

  Other income

9

-

 

9,184

19,840

Share of loss from Operating
  Partnerships(Note D)

(842,603)

 (905,022)
     

Expenses

    

  Professional fees

30,230

41,718

  Fund management fee    

241,854

235,474

  Amortization

5,256

5,256

  General and administrative expenses

15,186

     18,164

  

292,526

300,612
     

  NET LOSS

$(1,125,945)

$(1,185,794)
     

Net loss allocated to limited partners

$(1,114,686)

$(1,173,936)
     

Net loss allocated general partner

$ (11,259)

$  (11,858)

Net loss per BAC

$ (.29)

$     (.30)
     






















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)

Series 16


2000


1999
     

Income

    

  Interest income

$ 21,140

$   24,742

  Other income

436

300

 

21,576

25,042

Share of loss from Operating
  Partnerships(Note D)

(1,493,347)

(1,758,599)
     

Expenses

    

  Professional fees

31,783

42,130

  Fund management fee    

322,789

315,377

  Amortization

8,425

8,425

  General and administrative expenses

18,863

     23,279

  

381,860

389,211
     

  NET LOSS

$(1,853,631)

$(2,122,768)
     

Net loss allocated to limited partners

$(1,835,095)

$(2,101,540)
     

Net loss allocated general partner

$ (18,536)

$   (21,228)

Net loss per BAC

$ (.34)

$     (.39)
     






















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)

Series 17


2000


1999
     

Income

    

  Interest income

$ 6,245

$   7,919

  Other income

  554

12,000

 

6,799

19,919

Share of loss from Operating
  Partnerships(Note D)

(857,964)

(1,230,720)
     

Expenses

    

  Professional fees

24,446

32,931

  Fund management fee    

245,323

258,433

  Amortization

7,775

7,775

  General and administrative expenses

18,578

     21,670

  

296,122

320,809
     

  NET LOSS

$(1,147,287)

$(1,531,610)
     

Net loss allocated to limited partners

$(1,135,814)

$(1,516,294)
     

Net loss allocated general partner

$ (11,473)

$   (15,316)

Net loss per BAC

$ (.23)

$      (.30)
     






















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)

Series 18


2000


1999
     

Income

    

  Interest income

$ 6,707

$   9,037

  Other income

       -

-

 

6,707

9,037

Share of loss from Operating
  Partnerships(Note D)

(748,344)

  (815,220)
     

Expenses

    

  Professional fees

19,982

26,243

  Fund management fee    

165,403

160,944

  Amortization

5,707

5,707

  General and administrative expenses

     12,026

     14,220

  

    203,118

207,114
     

  NET LOSS

$  (944,755)

$(1,013,297)
     

Net loss allocated to limited partners

$  (935,307)

$(1,003,164)
     

Net loss allocated general partner

$    (9,448)

$   (10,133)

Net loss per BAC

$      (.26)

$     (.28)
     






















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Six Months Ended September 30,
(Unaudited)

Series 19


2000


1999
     

Income

    

  Interest income

$     22,125

$   32,347

  Other income

        -

10,817

 

22,125

43,164

Share of loss from Operating
  Partnerships(Note D)

  671,744)

  (836,178)
     

Expenses

    

  Professional fees

22,371

20,715

  Fund management fee    

201,996

199,724

  Amortization

7,285

7,455

  General and administrative expenses

13,571

     15,827

  

245,223

243,721
     

  NET LOSS

$ (894,842)

$(1,036,735)
     

Net loss allocated to limited partners

$  (885,894)

$(1,026,368)
     

Net loss allocated general partner

$    (8,948)

$   (10,367)

Net loss per BAC

$      (.22)

$      (.26)
     






















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS CAPITAL

Six Months Ended September 30,
(Unaudited)

 





Assignees



General
Partner





Total
       

Partners Capital
(deficit)
  April 1, 2000



$ 91,687,950



$ (982,608)



$ 90,705,342

    

      
       

Net income (loss)

(5,906,796)

(59,664)

(5,966,460)
       

Partners capital
(deficit),
  September 30, 2000



$ 85,781,154



$(1,042,272)



$ 84,738,882
       
































The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS CAPITAL

Six Months Ended September 30,
(Unaudited)

 

Assignees

General
Partner

Total

Series 15

      

Partners Capital
(deficit)
  April 1, 2000



$ 10,327,926



$ (231,709)



$ 10,096,217

    

      
       

Net income (loss)

(1,114,686)

   (11,259)

(1,125,945)
       

Partners capital
(deficit)
  September 30, 2000



$ 9,213,240



$  (242,968)



$ 8,970,272
       
       

Series 16

      

Partners Capital
(deficit)
  April 1, 2000



$ 22,390,069



$  (245,160)



$ 22,144,909
       
       

Net income (loss)

(1,835,095)

(18,536)

(1,853,631)
       

Partners capital
(deficit)
  September 30, 2000



$ 20,554,974



$ (263,696)



$ 20,291,278
       























The accompanying notes are an integral part of these statements.

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS CAPITAL

Six Months Ended September 30,
(Unaudited)

 

Assignees

General
Partner

Total

Series 17

      

Partners Capital
(deficit)
  April 1, 2000



$ 20,646,624



$  (225,468)



$ 20,421,156

    

      
       

Net income (loss)

(1,135,814)

   (11,473)

(1,147,287)
       

Partners capital
(deficit)
  September 30, 2000



$ 19,510,810



$ (236,941)



$ 19,273,869
       
       

Series 18

      

Partners Capital
(deficit)
  April 1, 2000



$ 15,921,798


$ (152,535)



$ 15,769,263
       
       

Net income (loss)

(935,307)

   (9,448)

(944,755)
       

Partners capital
(deficit),
  September 30, 2000



$ 14,986,491



$  (161,983)



$ 14,824,508
       























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS CAPITAL

Six Months Ended September 30,
(Unaudited)

 

Assignees

General
Partner

Total

Series 19

      

Partners Capital
(deficit)
  April 1, 2000



$ 22,401,533



$  (127,736)



$ 22,273,797

    

      
       

Net income (loss)

(885,894)

   (8,948)

(894,842)
       

Partners capital
(deficit),
  September 30, 2000



  $ 21,515,639



$  (136,684)



$ 21,378,955
       




































The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$(5,966,460)

$(6,890,204)

   Adjustments

    

      Distributions from Operating
        Partnerships


21,775


37,616

      Amortization

34,448

34,618

      Share of Loss from Operating
        Partnerships


4,614,002


5,545,739

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


(2)


4,490

      Decrease (Increase) in accounts
        Receivable


(81,109)


(306,694)

      Decrease (Increase) in accounts
        Payable affiliates


1,331,586


1,594,302
     

      Net cash (used in) provided by
        Operating activities


  (45,760)


19,867

     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships

(10,000)


(2,500)

   Advances in Operating Partnerships

54,340

 -

   Investments

   (35,334)

    115,509

     

   Net cash (used in) provided by
     investing activities


   9,006


  113,009

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

 

2000

1999
     

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

   (36,754)

   132,876
     

Cash and cash equivalents, beginning

1,754,063

1,693,799
     

Cash and cash equivalents, ending

$ 1,717,309

$ 1,826,675
     




























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 15

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$(1,125,945)

$ (1,185,794)

   Adjustments

    

      Distributions from Operating
        Partnerships


12


882

      Amortization

5,256

5,256

      Share of Loss from Operating
        Partnerships


842,603


905,022

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


-


783

      Decrease (Increase) in accounts
        Receivable


3,138


(30,716)

      Decrease (Increase) in accounts
        payable affiliates


   274,026


  294,603
     

      Net cash (used in) provided by
        operating activities


     (910)


  (9,964)
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-

-

   Advances in Operating Partnerships

         32,170

    -

   Investments

   (6,771)

  (7,139)
     

   Net cash (used in) provided by
     investing activities


    25,399


    (7,139)

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 15

 

2000

1999
     

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


24,489


(17,103)
     

Cash and cash equivalents, beginning

308,497

306,884
     

Cash and cash equivalents, ending

$   332,986

  $   289,781
     




























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 16

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$(1,853,631)

$(2,122,768)

   Adjustments

    

      Distributions from Operating
        Partnerships


4,830


25

      Amortization

8,425

8,425

      Share of Loss from Operating
        Partnerships


1,493,347


1,758,599

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


-


1,164

      Decrease (Increase) in accounts
        Receivable


(3,751)


(12,817)

      Decrease (Increase) in accounts
        payable affiliates


     345,989


   345,990
     

      Net cash (used in) provided by
        operating activities


    (4,791)


  (21,382)

   
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-


(2,500)

   Advances in Operating Partnerships

-

-

   Investments

  (13,643)

  (9,618)
     

   Net cash (used in) provided by
     investing activities


   (13,643)


  (12,118)

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)


Series 16

 

2000

1999
     

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


(18,434)


(33,500)
     

Cash and cash equivalents, beginning

  307,415

   213,451
     

Cash and cash equivalents, ending

$ 288,981

$  179,951
     



























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 17

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$ (1,147,287)

$(1,531,610)

   Adjustments

    

      Distributions from Operating
        Partnerships


1,200


4,139

      Amortization

7,775

7,775

      Share of Loss from Operating
        Partnerships


857,964


1,230,720

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


-


928

     (Decrease) Increase in accounts
        receivable


(45,465)


(267,071)

      Decrease (Increase) in accounts
        payable affiliates


   314,923


   557,060

     

      Net cash (used in) provided by
        operating activities


   (10,890)


   1,941

     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-


-

   Advances in Operating Partnerships

22,170

-

   Investments

    -

100,000
     

   Net cash (used in) provided by
     Investing activities


   22,170


100,000

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 17

 

2000

1999
     

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


11,280


101,941
     

Cash and cash equivalents, beginning

   404,005

   349,189
     

Cash and cash equivalents, ending

$ 415,285

$   451,130
     




























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 18

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$ (944,755)

$(1,013,297)

   Adjustments

    

      Distributions from Operating
        Partnerships


15,654


1,130

      Amortization

5,707

5,707

      Share of Loss from Operating
        Partnerships


748,344


815,220

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


-


856

      Decrease (Increase) in accounts
        Receivable


(27,590)


(4,930)

      Decrease (Increase) in accounts
        payable affiliates


   190,974


   190,974
     

      Net cash (used in) provided by
        operating activities


   (11,666)


(4,340)
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-


-

   Advances in Operating Partnerships

         -

-

   Investments

(5,053)

(2,771)

     

   Net cash (used in) provided by
     investing activities


  (5,053)


  (2,771)

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 18

 

2000

1999
     

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


  (16,719)


   (7,111)
     

Cash and cash equivalents, beginning

   377,094

   306,065
     

Cash and cash equivalents, ending

$   360,375

$   298,954
     




























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 19

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$ (894,842)

$(1,036,735)

   Adjustments

    

      Distributions from Operating
        Partnerships


79


31,440

      Amortization

7,285

7,455

      Share of Loss from Operating
        Partnerships


671,744


836,178

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


(2)


759

     (Decrease) Increase in accounts
        receivable/ other assets


(7,441)


8,840

      Decrease (Increase) in accounts
        payable affiliates


   205,674


   205,675
     

      Net cash (used in) provided by
        operating activities


  (17,503)


   53,612
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


(10,000)


-

   Advances in Operating Partnerships

-

-

   Investments

(9,867)

   35,037

     

   Net cash (used in) provided by
     investing activities


(19,867)


   35,037

















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Six Months Ended September 30,
(Unaudited)

Series 19
 

2000

1999
     

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


(37,370)


88,649

     

Cash and cash equivalents, beginning

   357,052

   518,210
     

Cash and cash equivalents, ending

$   319,682

$   606,859
     




























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2000

(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.














Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2000
(Unaudited)

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of September 30, 2000 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

The Fund has included in investments Certificates of Deposit with original
materities of one year or less. These investments are carried at costs.
































Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2000
(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

On July 1, 1995, the Fund began amortizing unallocated acquisition
costs over 330 months from April 1, 1995. As of September 30, 2000 the Fund has accumulated unallocated acquisition amortization totaling $384,437.  The
breakdown of accumulated unallocated acquisition amortization within the fund
as of September 30, 2000 and 1999 is as follows:

 

2000

1999
     

Series 15

$ 57,914

$ 47,402

Series 16

92,683

75,833

Series 17

93,428

77,878

Series 18

62,903

51,490

Series 19

77,509

62,939
 

$384,437

$315,542

 

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 as follows:

Boston Capital Partners, Inc. is entitled to asset acquisition fees for
selecting, evaluating, structuring, negotiating, and closing the Funds
acquisition of interests in the Operating Partnerships.   Prior to the quarter
ended September 30, 2000 all series had completed payment of all acquisition fees due to Boston Capital Partners, Inc.















Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2000
(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.  The fund
management fees accrued for the quarter ended September 30, 2000 and 1999 are as follows:

 

2000

1999
     

Series 15

$137,013

$137,013

Series 16

172,995

172,995

Series 17

140,925

141,342

Series 18

95,487

95,487

Series 19

102,837

102,837
 

$649,257

$649,674

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At September 30, 2000 and 1999, 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, 2000 and 1999 is as follows:

 

   

Series 15

68

Series 16

64

Series 17

49

Series 18

34

Series 19

26
 

241











 

 

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2000
(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, 2000 and 1999 are as follows:  

 

2000

1999
     

Series 15

$   32,922

$   32,922

Series 16

140,006

140,006

Series 17

1,206,768

1,367,195

Series 18

18,554

18,554

Series 19

24,000

34,000
 

$1,422,250

$1,592,677

 

The Funds 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 Partnerships quarterly period.  Accordingly, the current
financial results available for the Operating Partnerships are for the six
months ended June 30, 2000.
























 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)

Series 15

 

2000

1999
     

Revenues

    

   Rental

$  4,981,202

$ 4,867,033

   Interest and other

    186,280

  169,245
     
 

  5,167,482

5,036,278
     

Expenses

    

   Interest

1,405,186

1,381,481

   Depreciation and amortization

1,793,633

1,901,685

   Operating expenses

3,250,569

3,041,468
 

6,449,388

6,324,634
     

NET LOSS

$(1,281,906)

$(1,288,356)
     

Net loss allocation to Boston  
   Capital Tax Credit Fund
   III L.P.



$ (842,603)



$ (905,022)
     
     

Net loss allocated to other
   Partners


$  (12,819)


$  (12,884)
     

Net loss suspended

$  (426,484)

$  (370,450)

 

 

 

The Partnership 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 Partnerships 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.

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)

Series 16

 

2000

1999
     

Revenues

    

   Rental

$ 6,716,959

$ 6,136,645

   Interest and other

    298,631

   312,806
     
 

7,015,590

6,449,451
     

Expenses

    

   Interest

1,896,381

1,965,497

   Depreciation and amortization

2,476,924

2,391,922

   Operating expenses

4,361,258

4,112,999
 

8,734,563

8,470,418
     

NET LOSS

$(1,718,973)

$(2,020,967)
     

Net loss allocation to Boston  
   Capital Tax Credit Fund
   III L.P.



$(1,493,347)



$(1,758,599)
     
     

Net loss allocated to other
   Partners


$  (17,190)


$  (20,210)
     

Net loss suspended

$  (208,436)

$  (242,158)

 

 

 

The Partnership 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 Partnerships 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.

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)

Series 17
 

2000

1999
     

Revenues

    

   Rental

$ 5,885,099

$ 5,449,718

   Interest and other

   219,957

   215,841
     
 

6,105,056

5,665,559
     

Expenses

    

   Interest

1,837,794

1,821,772

   Depreciation and amortization

1,850,823

1,922,826

   Operating expenses

3,407,855

3,164,113
 

7,096,472

6,908,711
     

NET LOSS

$ (991,416)

$(1,243,152)
     

Net loss allocation to Boston  
   Capital Tax Credit Fund
   III L.P.



$ (857,964)



$(1,230,720)
     
     

Net loss allocated to other
   Partners


$  (9,914)


$   (12,432)
     

Net loss suspended

$  (123,538)

$   -

 

 

 

The Partnership 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 Partnerships 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.

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)

Series 18

 

2000

1999
     

Revenues

    

   Rental

$ 3,329,953

$ 3,222,312

   Interest and other

    195,964

  173,696
     
 

3,525,917

3,396,008
     

Expenses

    

   Interest

949,620

1,053,685

   Depreciation and amortization

1,259,597

1,285,615

   Operating expenses

2,103,943

1,908,227
 

4,313,160

4,247,527
     

NET LOSS

$ (787,243)

$ (851,519)
     

Net loss allocation to Boston  
   Capital Tax Credit Fund
   III L.P.



$ (748,344)



$ (815,220)
     
     

Net loss allocated to other
   Partners


$    (7,872)


$    (8,515)
     

Net loss suspended

$   (31,026)

$   (27,784)

 

 

 

The Partnership 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 Partnerships 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.

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)

Series 19
 

2000

1999
     

Revenues

    

   Rental

$ 4,738,188

$ 4,517,530

   Interest and other

  138,529

  160,447
     
 

4,876,717

4,677,977
     

Expenses

    

   Interest

1,617,009

1,672,668

   Depreciation and amortization

1,465,822

1,449,178

   Operating expenses

2,487,713

2,400,755
 

5,570,544

5,522,601
     

NET LOSS

$ (693,827)

$ (844,624)
     

Net loss allocation to Boston  

   Capital Tax Credit Fund
   III L.P.



$ (671,744)



$ (836,178)
     
     

Net loss allocated to other
   Partners


$   (6,938)


$   (8,446)
     

Net loss suspended

$ (15,145)

$ -

 

 

 

The Partnership 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 Partnerships 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.

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
September 30, 2000
(Unaudited)




NOTE E - TAXABLE LOSS

The Fund's taxable loss for the year ended March 31, 2001 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

Item 2.  Management's Discussions and Analysis of Financial Condition and
Results of Operations

Liquidity

The Funds 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.  Fund management
fees accrued during the quarter ended September 30, 2000 were $649,257 and total fund management fees accrued as of September 30, 2000 were $13,499,510. 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 Funds 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 of the Fund.

The Fund has recorded an additional $1,206,223 as payable to affiliates. This represents fundings to make advances and/or loans to certain Operating
Partnerships in Series 15 and Series 17 of the Fund of $277,567 and $928,656 respectively.

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, 2000, none of Series 15 net offering proceeds had been used to pay capital contributions. Series 15 net offering proceeds in the amount of $32,922 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, 2000.

(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.

     During the quarter ended September 30, 2000, none of Series 16 net offering proceeds had been used to pay capital contributions.  Series 16 net offering proceeds in the amount of $140,006 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, 2000.

(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, 2000, none of Series 17 net offering proceeds had been used to pay capital contributions.  Series 17 net offering proceeds in the amount of $415,285 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, 2000.

(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, 2000, none of Series 18 net offering proceeds had been used to pay capital contributions.  Series 18 net offering proceeds in the amount of $18,554 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, 2000.

(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, 2000, $10,000 of Series 19 net offering proceeds had been used to pay capital contributions.  Series 19 net offering proceeds in the amount of $24,000 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, 2000.

Results of Operations

As of September 30, 2000 and 1999 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 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 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, 2000 for Series 15, Series 16, Series 17, Series 18 and Series 19 were $130,963, $170,359, $132,904, $92,487, and $102,837 respectively.

The Funds investment objectives do not include receipt of significant
cash distributions from the Operating Partnerships in which it has invested or
intends to invest.  The Funds investments in Operating Partnerships have been
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, 2000 and 1999, the average qualified
occupancy for the series was 100% for both years.  The series had a total of
68 properties at September 30, 2000, all of which were at 100% qualified
occupancy.

For the six months being reported Series 15 reflects a net loss from
Operating Partnerships of $1,281,906.  When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of
$511,727.  This is an interim period estimate; it is not necessarily
indicative of the final year end results.

Operations continue to improve at Hidden Cove Apartments (Hidden Cove) as
evidenced by stabilized occupancy and increased rental collections. To date,
the property has been able to complete minor capital improvements and fund its
replacement reserve account without financial assistance. It is anticipated
that the property will be able to operate at breakeven, barring any
significant unforeseen repairs. At this time, the Operating General Partner
has commenced negotiations with the property's management company aimed at
transferring the Operating General Partnership interest to that entity. It is
anticipated that the addition of a local Operating General Partner will
enhance the property's ability to refinance its permanent mortgage.

As a result of the new Operating General Partner and property management
team assuming responsibility for School Street I LP, (School Street Apartments
- Phase I) and their completion of capital improvements, physical occupancy at
the property has improved. As of September 30, 2000 occupancy reached 96%.
Marshall School Street I, LLC, was inserted as the new Operating General
Partner in May of 2000. The property management team has evicted tenants with
delinquent rents, which resulted in higher maintenance and administrative
costs than budgeted for 2000. The improved occupancy and continued aggressive
marketing of the property should result in improved operations during the
fourth quarter of 2000 and into 2001. The Operating General Partner continues
to fund any operating cash deficits.

(Series 16)  As of September 30, 2000 and 1999, the average qualified
occupancy for the series was 99.9% and 99.7%, respectively. The series had a
total of 64 properties at September 30, 2000.  Out of the total, 63 had 100%
qualified occupancy.

For the six months being reported Series 16 reflects a net loss from
Operating Partnerships of $1,718,973.  When adjusted for depreciation, which
is a non-cash item, the Operating Partnerships reflect positive operations of
$757,951.  This is an interim period estimate; it is not necessarily
indicative of the final year end results.

Cass Partners, L.P. (Fitzgerald Apartments) continues to operate below
breakeven due to low occupancy. An increasing supply of affordable housing in
the area with superior amenities has hampered marketing efforts and made
tenant retention difficult. Average physical occupancy for the first nine
months of 2000 was 78%, down from an average of 85.4% in 1999. The Business
Plan for the year 2000 outlines the following programs to increase occupancy:
replace the building signage, improve the physical appearance of the
property's common areas, and negotiate parking agreements with an other
landlords to alleviate the issue of limited parking. The Operating General
Partner continues to support the property financially and is working to
refinance the partnership's second mortgage, which matures in August 2000.
The existing mortgage has been extended on a month to month basis while
negotiations continue regarding the terms of the proposed refinancing.

(Series 17)  As of September 30, 2000 and 1999, the average qualified
occupancy for the series was 99.7% for both years.  The series had a total of
49 properties at September 30, 2000.  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 $991,416.  When adjusted for depreciation, which, is
a non-cash item, the Operating Partnerships reflect positive operations of
$859,407. This is an interim period estimate; it is not necessarily indicative
of the final year end results.

Annadale Housing Partners (Kingsview Manor & Estates) reported net
losses due to operational issues associated with the property.  In order to
address these issues, the Operating General Partner hired a consultant to
assist management in aggressively marketing the property.  In addition, the
management agent hired a new on-site manager and leasing agent.  As a result
of these changes, occupancy reached 92% as of December 31, 1999, 93.7% as of
March 31, 2000 and 92.3% as of June 30, 2000.  Occupancy as of September 30,
2000 fell to 86% as a result of evicting tenants. Occupancy is expected to
increase to over 90% by year-end. In order to reduce operating costs, a loan
restructure was finalized with the first mortgage lender.  In exchange for
payment by the Operating General Partner of $620,457, the monthly mortgage
payments were reduced by 79%, thereby alleviating the property of a large
monthly cash obligation.  The payment to the first mortgage holder was funded
through the sale of a portion of the Operating Partnerships future credit
stream. With the additional cash available from a lower monthly debt service
payment and increased rental rates, property operations are anticipated to
improve significantly over prior years.  As of September 30, 2000, the
property has been successful in maintaining break-even operations. The
Investment General Partner continues to monitor this situation closely.

The property owned by California Investors VI LP (Orchard Park)
sustained a physical occupancy of 95.1% for the first eight months of 2000.
This stability has been the result of the management company's aggressive
marketing efforts and the many capital improvements completed at the property,
including office renovations and the addition of an activity center. These
improvements have been successful in attracting and retaining tenants. The
property's surrounding area is experiencing economic growth which includes a
major public sports park which opened in September of 2000. The park is
essentially a complex of ball fields and soccer fields with a central
concession area. Drive by traffic has been good since the park opened and is
expected to increase dramatically once leagues are formed for the children in
the community. In addition to the park, a high school is in the process of
construction. Work has continued on the new school that will be located
across the street from the front entrance to the development. A formal
groundbreaking has occurred and the construction is in the site preparation
phase of the development. These types of public development in the area
should continue to increase the quantity of automobile traffic around Orchard
Park and in turn should continue to assist with marketing efforts. Actually,
the community has experienced an increased level of interest over the last
several months from prospective new tenants. There is now a waiting list for
units and this has enabled the property management staff to be much more
aggressive in dealing with the problem tenants. Negotiations are on going
with a third party to have them assume General Partner responsibilities and
management for the partnership and it is hoped that this transition will be
completed by the end of the year.

Physical occupancy at Palmetto Properties Ltd. (Palmetto Villas) has
remained at an average of 78% through the third quarter of 2000. Occupancy at
the site began to drop early in 1999 due to poor on-site management and
significant deferred maintenance issues. As a result, the property management
company was replaced in January 2000. However, due to a lack of replacement
reserve funds to rehabilitate vacant units, occupancy continues to suffer. In
addition, the property is in arrears on its real estate tax payments for 1998
and 1999. At this time, the Investment General Partner is working with the
new management company to obtain low interest deferred maintenance loans to
complete necessary repairs, improve occupancy and cure the tax delinquency.
The Investment General Partner continues negotiations with the current
Operating General Partner aimed at removing him from the partnership. The new
management company has expressed interest in assuming the role of Operating
General Partner, and based on the management company's performance to date,
the partnership would benefit substantially from this arrangement.

(Series 18)  As of September 30, 2000 and 1999 the average qualified occupancy
for the series was 100% for both years.  The series had a total of 34
properties at September 30, 2000, out of the total all had 100% qualified
occupancy.

For the three months being reported Series 18 reflects a net loss from
Operating Partnerships of $787,243.  When adjusted for depreciation, which is
a non-cash item, the Operating Partnerships reflect positive operations of
$472,354.  This is an interim period estimate; it is not necessarily
indicative of the final year end results.

Harris Housing Limited Partnership (Harris Music Lofts) operated with a
net loss during 1999 primarily as a result of high operating expenses. The
Operating General Partner infused cash to fund operating deficits for the
year. Operating costs on this property are high particularly in
administration and maintenance. In addition to high expenses, the property
suffers from under-funded tax and insurance and security deposit escrows.
Despite the occupancy, which averaged at 97.8% during 1999, the property was
unable to fund these accounts. Average occupancy for the first eight months
of 2000 was 98%, a slight increase over the 1999 average. Unless expenses are
significantly reduced, the property will continue to operate at a deficit and
will be unable to fund the shortfall in the required accounts. It is the
intention of the Operating General Partner to streamline expenses by sharing
personnel and bulk ordering of supplies with another property that is only one
mile away. However, at this time, the referenced property has not completed
construction but is anticipated to be complete by year-end. In addition,
there was a rent increase effective May 1, 2000 which should generate some
additional revenue for the property.

Marengo Park Apartments, Limited Partnership is operating below
breakeven due to low occupancy levels. Occupancy averaged 76.7% in 1999.
Occupancy at September 30, 2000 was 83%. Management has attributed the
occupancy problem to the local economy. As a result of weak occupancy, the
property suffers from underfunded reserves, and a delinquent tax status. 1999
property taxes in the amount of $21,939 went unpaid, and were vouchered and
paid by Rural Development. The Investment General Partner negotiated a
workout plan with Rural Development which allowed the vouchered taxes to be
paid with the debt service over the remaining life of the loan, and restated
the replacement reserve account thereby bringing it current. Rural
Development has appproved Special Market Rate rents at the property in order
to improve occupancy.

Parvin's Limited Partnership (Parvin's Branch Townhomes) continues to
incur operating deficits due to higher than average operating expenses and
occupancy issues with its six transitional units.  The Operating General
Partner and the Management Company have been deferring their respective fees
to improve the property's cash flow.  In addition, the Operating General
Partner continues to fund deficits.  The property currently has an occupancy
rate of 100%. The management company continues to monitor operating expenses
and reports that expenses remain stable and within acceptable levels and
anticipates breakeven operations by year-end 2000.

On March 20, 2000 Glen Place Apartments Limited Partnership(Glen Place
Apartments) received a 60-Day letter from the IRS stating the Operating
Partnership had not met certain IRS Section 42 requirements. The Investment
Limited Partner was notified of this receipt shortly after the first quarter.
The IRS has proposed an adjustment that would disallow the Partnership from
utilizing certain past or future credits. The Investment General Partner
indicating the Operating General Partner counsel has filed a written protest
with the IRS. The Investment General Partner continues to closely monitor the
protest process.

(Series 19)  As of September 30, 2000 and 1999 the average qualified occupancy
for the series was 100% for both years.  The series had a total of 26
properties at September 30, 2000, all of which were at 100% qualified
occupancy.

For the six months being reported Series 19 reflects a net loss from
Operating Partnerships of $693,827.  When adjusted for depreciation, which is
a non-cash item, the Operating Partnerships reflect positive operations of
$771,995. This is an interim period estimate; it is not necessarily indicative
of the final year end results.

 

 

 

 

 

 

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

            

 

 

 

 

 

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 20, 2000      By: /s/ John P. Manning 
                                     -------------------

                                     John P. Manning,
                                     Partner & Principal Financial
                                     Officer

 

 



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