1
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 December 31, 1999
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 Identification No.)
organization)
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 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 DECEMBER 31, 1999
TABLE OF CONTENTS
FOR THE QUARTER ENDED DECEMBER 31, 1999 2
BALANCE SHEETS 4
SERIES 15 5
SERIES 16 6
SERIES 17 7
SERIES 18 8
SERIES 19 9
STATEMENTS OF OPERATIONS 10
THREE MONTHS ENDED DECEMBER 31, 10
SERIES 15 11
SERIES 16 12
SERIES 17 13
SERIES 18 14
SERIES 19 15
NINE MONTHS ENDED DECEMBER 31, 16
SERIES 15 17
SERIES 16 18
SERIES 17 19
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
NINE MONTHS ENDED DECEMBER 31, 26
SERIES 15 28
SERIES 16 30
SERIES 17 32
SERIES 18 34
SERIES 19 36
NOTES TO FINANCIAL STATEMENTS 38
NOTE A - ORGANIZATION 38
NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES 39
INVESTMENT SECURITIES 39
COST ERROR! BOOKMARK NOT DEFINED.
NOTE C - RELATED PARTY TRANSACTIONS 40
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 47
LIQUIDITY 49
CAPITAL RESOURCES 49
RESULTS OF OPERATIONS 50
YEAR 2000 COMPLIANCE 54
PART II - OTHER INFORMATION 55
SIGNATURES 56
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
December 31, March 31,
1999 1999
(Audited) (Audited)
ASSETS
INVESTMENTS IN OPERATING $100,346,022 $108,418,478
PARTNERSHIPS (Note D)
OTHER ASSETS
Cash and cash equivalents 2,511,540 1,693,799
Investments 1,510,884 2,237,166
Notes receivable 1,364,322 1,364,322
Deferred acquisition costs, net
of accumulated amortization (Note
B)
1,560,572 1,612,244
Organization costs, net of
accumulated amortization (Note B)
- 170
Other assets 2,852,066 2,459,125
$110,145,406 $117,785,304
LIABILITIES
Accounts payable & accrued
expenses
(Note C) $ 4,553 $ 4,553
Accounts payable affiliates
13,729,214 11,385,333
Capital contributions payable
1,592,677 1,595,177
15,326,444 12,985,063
PARTNERS' CAPITAL
Limited Partners
Units of limited partnership
interest, $10 stated value per
BAC;
22,000,000 authorized BACs;
21,996,102 issued and 105,641,899
outstanding, 95,760,433
as of December 31, 1999
General Partner (941,471) (841,658)
94,818,962 104,800,241
$110,145,406 $117,785,304
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
Series 15
December 31, March 31,
1999 1999
(Audited) (Audited)
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS(Note D)
$12,784,228 $14,142,163
OTHER ASSETS
Cash and cash equivalents
301,698 306,884
Investments 135,167 128,028
Notes receivable 32,170 32,170
Deferred acquisition costs,
net of accumulated
amortization
(Note B) 239,140 247,024
Organization costs, net of
accumulated amortization (Note
B) - -
Other assets 851,347 807,527
$14,343,750 $15,663,796
LIABILITIES
Accounts payable & accrued
expenses
(Note C) $ 1,146 $ 1,145
Accounts payable affiliates
3,597,400 3,155,784
Capital contributions payable
32,922 32,922
3,631,468 3,189,851
PARTNERS' CAPITAL
Limited Partners
Units of limited partnership
interest, $10 stated value per
BAC; 22,000,000 authorized
BACs;
3,870,500 issued and 10,937,831 12,681,877
outstanding,
as of December 31, 1999
General Partner (225,549) (207,932)
10,712,282 12,473,945
$14,343,750 $15,663,796
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
Series 16
December 31, March 31,
1999 1999
(Audited) (Audited)
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D)
$24,636,301 $27,165,227
OTHER ASSETS
Cash and cash equivalents
470,851 213,451
Investments 640,088 884,449
Notes receivable - -
Deferred acquisition costs,
net of accumulated
amortization
(Note B) 383,383 396,021
Organization costs, net of
accumulated
amortization (Note B) - -
Other assets 135,592 133,695
$26,266,215 $28,792,843
LIABILITIES
Accounts payable & accrued
expenses
(Note C) $ - $ -
Accounts payable affiliates
3,246,051 2,727,066
Capital contributions payable
140,006 142,506
3,386,057 2,869,572
PARTNERS' CAPITAL
Limited Partners
Units of limited
partnership
Interest, $10 stated value per
BAC; 22,000,000 authorized
BACs; 23,117,965 26,130,647
5,429,402 issued and
outstanding,
as of December 31, 1999
General Partner (237,807) (207,376)
22,880,158 25,923,271
$26,266,215 $28,792,843
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
Series 17
December 31, March 31,
1999 1999
(Audited) (Audited)
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (Note D)
$23,026,216 $24,774,196
OTHER ASSETS
Cash and cash equivalents
445,854 349,189
Investments - 100,000
Notes receivable 1,332,152 1,332,152
Deferred acquisition costs,
net of accumulated
amortization
(Note B) 345,985 357,648
Organization costs, net of
accumulated
Amortization (Note B) - -
Other assets 1,782,324 1,425,347
$26,932,531 $28,338,532
LIABILITIES
Accounts payable & accrued
expenses
(Note C) $ - $ -
Accounts payable affiliates
3,824,226 3,035,918
Capital contributions payable
1,367,195 1,367,195
5,191,421 4,403,113
PARTNERS' CAPITAL
Limited Partners
Units of limited
partnership
Interest, $10 stated value per
BAC; 22,000,000 authorized
BACs; 21,953,378 24,125,744
5,000,000 issued and
outstanding,
as of December 31, 1999
General Partner (212,268) (190,325)
21,741,110 23,935,419
$26,932,531 $28,338,532
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
Series 18
December 31, March 31,
1999 1999
(Audited) (Audited)
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (NOTE D)
$ 17,638,507 $ 18,832,106
OTHER ASSETS
Cash and cash equivalents
435,352 306,065
Investments 102,771 230,531
Notes receivable - -
Deferred acquisition costs, net
of
accumulated amortization(Note
B) 260,596 269,156
Organization costs, net of
accumulated
amortization (Note B) - -
Other assets 60,736 56,099
$ 18,497,962 $ 19,693,957
LIABILITIES
Accounts payable & accrued
expenses
(Note C) $ - $ -
Accounts payable affiliates
1,641,450 1,354,989
Capital contributions payable
18,554 18,554
1,660,004 1,373,543
PARTNERS' CAPITAL
Limited Partners
Units of limited
partnership
Interest, $10 stated value per
BAC; 22,000,000 authorized
BACs; 16,979,806 18,447,437
3,616,200 issued and
outstanding,
as of December 31, 1999
General Partner (141,848) (127,023)
16,837,958 18,320,414
$ 18,497,962 $ 19,693,957
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
BALANCE SHEETS
Series 19
December 31, March 31,
1999 1999
(Audited) (Audited)
ASSETS
INVESTMENTS IN OPERATING
PARTNERSHIPS (NOTE D)
$22,260,770 $ 23,504,786
OTHER ASSETS
Cash and cash equivalents
857,785 518,210
Investments 632,858 894,158
Notes receivable - -
Deferred acquisition costs,
net of accumulated
amortization
(Note B) 331,468 342,395
Organization costs, net of
accumulated
amortization (Note B) - 170
Other assets 22,067 36,457
$24,104,948 $ 25,296,176
LIABILITIES
Accounts payable & accrued
expenses
(Note C) $ 3,407 $ 3,408
Accounts payable affiliates
1,420,087 1,111,576
Capital contributions payable
34,000 34,000
1,457,494 1,148,984
PARTNERS' CAPITAL
Limited Partners
Units of limited
partnership
Interest, $10 stated value per
BAC; 22,000,000 authorized
BACs; 22,771,453 24,256,194
4,080,000 issued and
outstanding,
as of December 31, 1999
General Partner (123,999) (109,002)
22,647,454 24,147,192
$24,104,948 $ 25,296,176
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
1999 1998
Income
Interest income $ 42,383 $ 53,901
Other income 13,040 -
55,423 53,901
Share of loss from Operating
Partnerships(Note D) (2,488,170) (2,889,612)
Expenses
Professional fees 21,357 14,922
Fund management fee (Note C) 578,028 587,164
Amortization 17,224 37,796
General and administrative 41,721 32,300
expenses
658,330 672,182
NET LOSS $(3,091,077) $(3,507,893)
Net loss allocated to limited $(3,060,166) $(3,472,814)
partners
Net loss allocated general partner $ (30,911) $ (35,079)
Net loss per BAC $ (.66) $ (.76)
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 15
1999 1998
Income
Interest income $ 7,381 $ 171,668
Other income - -
7,381 171,668
Share of loss from Operating
Partnerships(Note D) (453,642) (614,979)
Expenses
Professional fees 283 10,966
Fund management fee 118,637 121,266
Amortization 2,628 2,628
General and administrative 8,061 5,483
expenses
129,609 140,343
NET LOSS $ (575,870) $ (583,654)
Net loss allocated to limited $ (570,111) $ (577,817)
partners
Net loss allocated general partner $ (5,759) $ (5,837)
Net loss per BAC $ (.14) $ (.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 December 31,
(Unaudited)
Series 16
1999 1998
Income
Interest income $ 11,149 $ (9,618)
Other income 7,790 -
(9,618)
18,939
Share of loss from Operating
Partnerships(Note D) (769,098) (727,184)
Expenses
Professional fees 283 632
Fund management fee 154,922 170,151
Amortization 4,213 4,213
General and administrative 10,768 9,444
expenses
170,186 184,440
NET LOSS $ (920,345) $ (921,242)
Net loss allocated to limited $ (911,142) $ (912,030)
partners
Net loss allocated general partner $ (9,203) $ (9,212)
Net loss per BAC $ (.16) $ (.16)
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 17
1999 1998
Income
Interest income $ 3,045 $ (50,809)
Other income 300 -
3,345 (50,809)
Share of loss from Operating
Partnerships(Note D) (513,121) (838,567)
Expenses
Professional fees 1,432 2,444
Fund management fee 138,451 126,864
Amortization 3,887 11,662
General and administrative 9,153 6,345
expenses
152,923 147,315
NET LOSS $ (662,699) $(1,036,691)
Net loss allocated to limited $ (656,072) $(1,026,324)
partners
Net loss allocated general partner $ (6,627) $ (10,367)
Net loss per BAC $ (.13) $ (.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 December 31,
(Unaudited)
Series 18
1999 1998
Income
Interest Income $ 6,589 $ (38,108)
-
-
6,589 (38,108)
Share of loss from Operating
Partnerships(Note D) (375,912) -
Expenses
Professional fees 4,376 412
Fund management fee 86,189 73,119
Amortization 2,853 6,248
General and administrative 6,419 5,709
expenses
99,837 85,488
NET LOSS $ (469,160) $ (123,596)
Net loss allocated to limited $ (464,468) $ (122,360)
partners
Net loss allocated general partner $ (4,692) $ (1,236)
Net loss per BAC $ (.12) $ (.03)
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 19
1999 1998
Income
Interest income $ 14,219 $ (19,232)
Other income 4,950
-
19,169 (19,232)
Share of loss from Operating
Partnerships(Note D) (376,397) (708,882)
Expenses
Professional fees 14,983 468
Fund management fee 79,829 95,764
Amortization 3,643 13,045
General and administrative 7,320 5,319
expenses
105,775 114,596
NET LOSS $ (463,003) $ (842,710)
Net loss allocated to limited $ (458,373) $ (834,283)
partners
Net loss allocated general partner $ (4,630) $ (8,427)
Net loss per BAC $ (.11) $ (.21)
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
1999 1998
Income
Interest income $ 136,270 $ 183,145
Other income 36,156 -
172,426 183,145
Share of loss from Operating
Partnerships(Note D) (8,033,909) (10,020,693)
Expenses
Professional fees 185,093 191,599
Fund management fee 1,747,980 1,761,133
Amortization 51,842 132,781
General and administrative 134,881 123,520
expenses
2,119,796 2,209,033
NET LOSS $ (9,981,279) $(12,046,581)
Net loss allocated to limited $ (9,881,466) $(11,926,115)
partners
Net loss allocated general partner $ (99,813) $ (120,466)
Net loss per BAC $ (2.19) $ (2.67)
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 15
1999 1998
Income
Interest income $ 27,221 $ 176,643
Other income - -
27,221 176,643
Share of loss from Operating
Partnerships(Note D) (1,358,664) (1,753,429)
Expenses
Professional fees 42,000 57,272
Fund management fee 354,111 369,967
Amortization 7,884 7,884
General and administrative 26,225 23,098
expenses
430,220 458,221
NET LOSS $ (1,761,663) $(2,035,007)
Net loss allocated to limited $ (1,744,046) $(2,014,657)
partners
Net loss allocated general partner $ (17,617) $ (20,350)
Net loss per BAC $ (.44) $ (.52)
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 16
1999 1998
Income
Interest Income $ 35,892 $ 36,435
Other Income 8,090 -
43,982 36,435
Share of loss from Operating
Partnerships(Note D) (2,527,697) (2,553,171)
Expenses
Professional fees 42,413 44,670
Fund management fee 470,299 468,845
Amortization 12,638 12,638
General and administrative 34,048 32,637
expenses
559,398 558,790
NET LOSS $(3,043,113) $(3,075,526)
Net loss allocated to limited $(3,012,682) $(3,044,771)
partners
Net loss allocated general partner $ (30,431) $ (30,755)
Net loss per BAC $ (.56) $ (.56)
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 17
1999 1998
Income
Interest income $ 10,964 $ (47,254)
Other income 12,300 -
23,264 (47,254)
Share of loss from Operating
Partnerships(Note D) (1,743,841) (2,499,080)
Expenses 34,363 38,153
Professional fees 396,884 383,373
Fund management fee 11,662 45,791
Amortization 30,823 26,584
General and administrative 473,732 493,901
expenses
NET LOSS $(2,194,309) $(3,040,235)
Net loss allocated to limited $(2,172,366) $(3,009,833)
partners
Net loss allocated general partner $ (21,943) $ (30,402)
Net loss per BAC $ (.44) $ (.60)
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 18
1999 1998
Income
Interest income $ 15,626 $ (12,574)
Other income - -
15,626 (12,574)
Share of loss from Operating
Partnerships(Note D) (1,191,132) (1,040,838)
Expenses 30,619 26,761
Professional fees 247,133 242,260
Fund management fee 8,560 27,332
Amortization 20,638 18,529
General and administrative 306,950 314,882
expenses
NET LOSS $(1,482,456) $(1,368,294)
Net loss allocated to limited $(1,467,631) $(1,354,611)
partners
Net loss allocated general partner $ (14,825) $ (13,683)
Net loss per BAC $ (.39) $ (.37)
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 19
1999 1998
Income
Interest income $ 46,567 $ 29,895
Other income 15,766 -
62,333 29,895
Share of loss from Operating
Partnerships(Note D) (1,212,575) (2,174,175)
Expenses
Professional fees 35,698 24,743
Fund management fee 279,553 296,688
Amortization 11,098 39,136
General and administrative 23,147 22,672
expenses
349,496 383,239
NET LOSS $(1,499,738) $(2,527,519)
Net loss allocated to limited $(1,484,741) $(2,502,244)
partners
Net loss allocated general partner $ (14,997) $ (25,275)
Net loss per BAC $ (.36) $ (.62)
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
Nine Months Ended December 31,
(Unaudited)
General
Partner
Assignees Total
Partners' Capital
(deficit)
April 1, 1999 $105,641,89 $ (841,658) $104,800,241
9
Net income (loss) (9,881,466) (99,813) (9,981,279)
Partners' capital
(deficit),
December 31, 1999 $ $ (941,471) $ 94,818,962
95,760,433
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
Nine Months Ended December 31,
(Unaudited)
Assignees General Total
Partner
Series 15
Partners' Capital
(deficit)
April 1, 1999 $12,681,877 $ (207,932) $12,473,945
Net income (loss) (1,744,046) (17,617) (1,761,663)
Partners' capital
(deficit),
December 31, 1999 $10,937,831 $ (225,549) $10,712,282
Series 16
Partners' Capital
(deficit)
April 1, 1999 $26,130,647 $ (207,376) $25,923,271
Net income (loss) (3,012,682) (30,431) (3,043,113)
Partners' capital
(deficit),
December 31, 1999 $ $ (237,807) $ 22,880,158
23,117,965
The accompanying notes are an integral part of these statements.
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
Nine Months Ended December 31,
(Unaudited)
Assignees General Total
Partner
Series 17
Partners' Capital
(deficit)
April 1, 1999 $24,125,744 $ (190,325) $23,935,419
Net income (loss) (2,172,366) (21,943) (2,194,309)
Partners' capital
(deficit),
December 31, 1999 $ $ (212,268) $ 21,741,110
21,953,378
Series 18
Partners' Capital
(deficit)
April 1, 1998 $ $ (127,023) $ 18,320,414
18,447,437
Net income (loss) (1,467,631) (14,825) (1,482,456)
Partners' capital
(deficit),
December 31, 1999 $ $ (141,848) $ 16,837,958
16,979,806
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
Nine Months Ended December 31,
(Unaudited)
Assignees General Total
Partner
Series 19
Partners' Capital
(deficit)
April 1, 1999 $24,256,194 $ (109,002) $24,147,192
Net income (loss) (1,484,741) (14,997) (1,499,738)
Partners' capital
(deficit),
December 31, 1999 $ $ (123,999) $ 22,647,454
22,771,453
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
1999 1998
Cash Flows from operating
activities:
Net Loss $(9,981,279) $(12,046,581)
Adjustments
Distributions from Operating
Partnerships 40,155 17,273
Amortization 51,842 97,794
Share of Loss from Operating
Partnerships 8,033,909 10,020,693
Changes in assets and
liabilities
(Decrease) Increase in
accounts - 108,208
payable and accrued
expenses
Decrease (Increase) in
accounts (394,551) (527,502)
Receivable
Decrease (Increase) in
accounts 2,343,883 2,255,716
payable affiliates
Net cash (used in) provided
by 93,959 (74,399)
operating activities
Cash Flows from investing
activities:
Acquisition cost repaid (paid)
for
Operating Partnerships - 34,987
acquired or
to acquire
Capital contributions paid to
Operating Partnerships (2,500) (692,564)
Advances in Operating - 692,011
Partnerships
Investments 726,282 549,404
Net cash (used in) provided by
investing activities 723,782 583,838
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
1999 1998
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 817,741 509,439
CASH EQUIVALENTS
Cash and cash equivalents, 1,693,799 1,653,522
beginning
Cash and cash equivalents, ending $ 2,511,540 $2,162,961
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 15
1999 1998
Cash Flows from operating
activities:
Net Loss $ (1,761,663) $ (2,035,007)
Adjustments
Distributions from Operating
Partnerships 882 874
Amortization 7,884 7,884
Share of Loss from Operating
Partnerships 1,358,664 1,753,429
Changes in assets and
liabilities
(Decrease) Increase in
accounts - -
payable and accrued
expenses
Decrease (Increase) in
accounts (45,430) (241,878)
Receivable
Decrease (Increase) in
accounts 441,616 632,362
payable affiliates
Net cash (used in) provided
by 1,953 117,664
operating activities
Cash Flows from investing
activities:
Acquisition cost repaid (paid)
for
Operating Partnerships - -
acquired or
to acquire
Capital contributions paid to
Operating Partnerships - -
Advances in Operating - 77,830
Partnerships
Investments (7,139) (3,028)
Net cash (used in) provided by
investing activities (7,139) 74,802
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 15
1999 1998
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 (5,186) 192,466
CASH EQUIVALENTS
Cash and cash equivalents, 306,884 156,717
beginning
Cash and cash equivalents, ending $ 301,698 $ 349,183
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 16
1999 1998
Cash Flows from operating
activities:
Net Loss $(3,043,113) $(3,075,526)
Adjustments
Distributions from Operating
Partnerships 1,229 1,064
Amortization 12,638 12,638
Share of Loss from Operating
Partnerships 2,527,697 2,553,171
Changes in assets and
liabilities
(Decrease) Increase in
accounts - -
payable and accrued
expenses
Decrease (Increase) in
accounts (1,897) (53,221)
Receivable
Decrease (Increase) in
accounts 518,986
payable affiliates 518,985
Net cash (used in) provided
by 15,539 (42,888)
operating activities
Cash Flows from investing
activities:
Acquisition cost repaid (paid)
for
Operating Partnerships - -
acquired or
to acquire
Capital contributions paid to
Operating Partnerships (2,500) (1,500)
Advances in Operating - -
Partnerships
Investments 244,361 104,793
Net cash (used in) provided by
investing activities 241,861 103,293
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 16
1999 1998
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 257,400 60,405
CASH EQUIVALENTS
Cash and cash equivalents, 213,451 199,558
beginning
Cash and cash equivalents, ending $ 470,851 $ 259,963
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 17
1999 1998
Cash Flows from operating
activities:
Net Loss $(2,194,309) $(3,040,235)
Adjustments
Distributions from Operating
Partnerships 4,140 7,804
Amortization 11,662 10,804
Share of Loss from Operating
Partnerships 1,743,841 2,499,080
Changes in assets and
liabilities
(Decrease) Increase in
accounts - 108,208
payable and accrued
expenses
(Decrease) Increase in
accounts (356,977) (192,949)
receivable
Decrease (Increase) in
accounts 788,308 509,395
payable affiliates
Net cash (used in) provided
by (3,335) (97,893)
operating activities
Cash Flows from investing
activities:
Acquisition cost repaid (paid)
for
Operating Partnerships - 34,987
acquired or
to acquire
Capital contributions paid to
Operating Partnerships - -
Advances in Operating - 77,830
Partnerships
Investments 100,000 -
Net cash (used in) provided by
Investing activities 100,000 112,817
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 17
1999 1998
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 96,665 14,924
CASH EQUIVALENTS
Cash and cash equivalents, 349,189 388,024
beginning
Cash and cash equivalents, ending $ 445,854 $ 402,948
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 18
1999 1998
Cash Flows from operating
activities:
Net Loss $(1,482,456) $(1,368,294)
Adjustments
Distributions from Operating
Partnerships 2,466 7,466
Amortization 8,560 27,332
Share of Loss from Operating
Partnerships 1,191,132 1,040,838
Changes in assets and
liabilities
(Decrease) Increase in
accounts - -
payable and accrued
expenses
Decrease (Increase) in
accounts (4,637) (9,121)
Receivable
Decrease (Increase) in
accounts 286,462 286,462
payable affiliates
Net cash (used in) provided
by 1,527 (15,317)
operating activities
Cash Flows from investing
activities:
Acquisition cost repaid (paid)
for
Operating Partnerships - -
acquired or
to acquire
Capital contributions paid to
Operating Partnerships - (691,064)
Advances in Operating - 536,351
Partnerships
Investments 127,760 343,469
Net cash (used in) provided by
investing activities 127,760 188,756
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
1999 1998
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 129,287 173,439
CASH EQUIVALENTS
Cash and cash equivalents, 306,065 301,444
beginning
Cash and cash equivalents, ending $ 435,352 $ 474,883
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 19
1999 1998
Cash Flows from operating
activities:
Net Loss (1,499,738) $(2,527,519)
Adjustments
Distributions from Operating
Partnerships 31,438 65
Amortization 11,098 39,136
Share of Loss from Operating
Partnerships 1,212,575 2,174,175
Changes in assets and
liabilities
(Decrease) Increase in
accounts - -
payable and accrued
expenses
(Decrease) Increase in
accounts 14,390 (30,333)
receivable/ other assets
Decrease (Increase) in
accounts 308,512 308,511
payable affiliates
Net cash (used in) provided
by 78,275 (35,965)
operating activities
Cash Flows from investing
activities:
Acquisition cost repaid (paid)
for
Operating Partnerships - -
acquired or
to acquire
Capital contributions paid to
Operating Partnerships - -
Advances in Operating - -
Partnerships
Investments 261,300 104,170
Net cash (used in) provided by
investing activities 261,300 104,170
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 19
1999 1998
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 339,575 68,205
CASH EQUIVALENTS
Cash and cash equivalents, 518,210 607,779
beginning
Cash and cash equivalents, ending $ 857,785 $ 675,984
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
(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 through19 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
$4,080,000. 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
December 31, 1999
(Unaudited)
NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES
The condensed financial statements included herein as of
December 31, 1999 and for the three and nine 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.
Bston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 1999
(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 amortized organizational costs over 60 months. As
of December 31, 1999 and 1998 the Fund had accumulated
organization amortization totaling
$934,428 and $924,855 respectively. As of December 31, 1999 all
costs had been fully amortized. The breakdown of accumulated
organization
amortization within the Fund as of December 31, 1999 and 1998 is
as follows:
1999 1998
Series 15 $167,077 $167,077
Series 16 227,909 227,909
Series 17 205,888 205,888
Series 18 150,296 150,296
Series 19 183,258 173,685
$934,428 $924,855
On July 1, 1995, the Fund began amortizing unallocated
acquisition costs over 330 months from April 1, 1995. As of
December 31, 1999 the Fund has accumulated unallocated
acquisition amortization totaling $332,766. The
breakdown of accumulated unallocated acquisition amortization
within the fund
as of December 31, 1999 for Series 15, Series 16, Series 17,
Series 18, and
Series 19 is $50,030, $80,046, $81,765, $54,344 and $66,581,
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 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 December 31, 1999 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
December 31, 1999
(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 December 31, 1999 and 1998 are as follows:
1999 1998
Series 15 $137,013 $137,013
Series 16 172,995 172,995
Series 17 141,342 141,342
Series 18 95,487 95,487
Series 19 102,837 102,837
$649,674 $649,674
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS
At December 31, 1999 and 1998, 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 December 31, 1999 and 1998 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
December 31, 1999
(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 December 31, 1999 and
1998 are as follows:
1999 1998
Series 15 $ 32,922 $ 32,922
Series 16 140,006 143,811
Series 17 1,367,195 1,367,195
Series 18 18,554 18,554
Series 19 34,000 463,000
$1,592,677 $2,025,482
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 nine months ended
September 30, 1999.
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)
Series 15
1999 1998
Revenues
Rental $ 7,302,945 $ 7,129,846
Interest and other 258,165 360,905
7,561,110 7,490,751
Expenses
Interest 2,060,724 2,125,796
Depreciation and 2,843,706 2,815,661
amortization
Operating expenses 4,519,367 4,562,959
9,423,797 9,504,416
NET LOSS $(1,862,687) $(2,013,665)
Net loss allocation to
Boston
Capital Tax Credit Fund $(1,358,664) $(1,753,429)
III L.P.
Net loss allocated to other
Partners $ (18,627) $ (20,137)
Net loss suspended $ (485,396) $ (240,099)
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)
Series 16
1999 1998
Revenues
Rental $ 9,172,061 $ 9,194,077
Interest and other 424,262 713,264
9,596,323 9,907,341
Expenses
Interest 2,801,642 3,153,195
Depreciation and 3,568,883 3,396,748
amortization
Operating expenses 6,116,299 5,982,373
12,486,824 12,532,316
NET LOSS $(2,890,501) $(2,624,975)
Net loss allocation to
Boston
Capital Tax Credit Fund $(2,527,697) $(2,553,171)
III L.P.
Net loss allocated to other
Partners $ (28,905) $ (26,250)
Net loss suspended $ (333,899) $ (45,554)
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)
Series 17
1999 1998
Revenues
Rental $ 8,193,157 $ 8,198,413
Interest and other 355,221 423,235
8,548,378 8,621,648
Expenses
Interest 2,720,696 3,046,408
Depreciation and 2,831,561 3,203,030
amortization
Operating expenses 4,757,578 4,896,534
10,309,835 11,145,972
NET LOSS $(1,761,457) $(2,524,324)
Net loss allocation to
Boston
Capital Tax Credit Fund $(1,743,842) $(2,499,080)
III L.P.
Net loss allocated to other
Partners $ (17,615) $ (25,244)
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)
Series 18
1999 1998
Revenues
Rental $ 4,816,803 $ 4,598,802
Interest and other 250,981 175,593
5,067,784 4,774,395
Expenses
Interest 1,627,954 1,661,453
Depreciation and 1,877,451 2,058,573
amortization
Operating expenses 2,815,808 2,679,420
6,321,213 6,399,446
NET LOSS $(1,253,429) $(1,625,051)
Net loss allocation to
Boston
Capital Tax Credit Fund $(1,191,132) $(1,563,941)
III L.P.
Net loss allocated to other
Partners $ (12,534) $ (16,251)
Net loss suspended $ (49,763) $ (44,859)
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)
Series 19
1999 1998
Revenues
Rental $ 6,821,870 $ 6,674,217
Interest and other 257,471 235,939
7,079,341 6,910,156
Expenses
Interest 2,497,461 2,632,402
Depreciation and 2,158,694 2,937,007
amortization
Operating expenses 3,648,009 3,536,884
8,304,164 9,106,293
NET LOSS $(1,224,823) $(2,196,137)
Net loss allocation to
Boston
Capital Tax Credit Fund $(1,212,575) $(2,174,175)
III L.P.
Net loss allocated to other
Partners $ (12,248) $ (21,962)
Boston Capital Tax Credit Fund III L.P.
NOTES TO FINANCIAL STATEMENTS
December 31, 1999
(Unaudited)
NOTE D - INVESTMENT IN OPERATING PARTNERSHIPS-CONTINUED
When comparing the results of operations from the operating
partnerships for the nine months ended September 30, 1999 and
September 30, 1998 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 year ended December 31, 1999 is
expected to differ from its loss for financial reporting purposes
for the year end March 31, 2000. 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 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 December 31, 1999, 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 December 31, 1999.
(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 December 31, 1999, 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 December 31, 1999.
(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 December 31, 1999, none of Series
17 net offering proceeds had been used to pay capital
contributions. Series 17 net offering proceeds in the amount of
$445,854 remain to be used by the Fund to pay remaining capital
contributions to the Operating Partnerships that Series 17 has
invested in as of December 31, 1999.
(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 December 31, 1999, 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 December 31, 1999.
(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 December 31, 1999, none of Series
19 net offering proceeds had been used to pay capital
contributions. Series 19 net offering proceeds in the amount of
$34,000 remain to be used by the Fund to pay remaining capital
contributions to the Operating Partnerships that Series 19 has
invested in as of December 31, 1999.
Results of Operations
As of December 31, 1999 and 1998 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 results of operations for future periods are likely to
vary from those for the period ended December 31, 1999. 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 December 31, 1998 for Series 15, Series 16, Series 17,
Series 18 and Series 19 were $118,637, $154,922, $138,451,
$86,189, and $79,829 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 made principally
with a view towards realization of Federal Housing Tax Credits
for allocation to its partners and BAC holders.
(Series 15) As of December 31, 1999 and 1998, the average
qualified occupancy for the series was 100%. The series had a
total of 68 properties at December 31, 1999, all of which were at
100% qualified occupancy.
For the nine months being reported Series 15 reflects a net
loss from Operating Partnerships of $1,862,687. When adjusted
for depreciation, which is a non-cash item, the Operating
Partnerships reflect positive operations of $981,019. This is an
interim period estimate; it is not necessarily indicative of the
final year end results.
Hidden Cove Apartments (Hidden Cove) continues to incur
operating deficits due to significant turnover
expenditures. While the new management company has been
successful in reducing the deficits by reducing expenses and
increasing occupancy, the property remains unable to operate
above break-even. The property has been able to fund operating
expenses and current debt service, but due to high turnover
costs, cannot support required capital improvements and the
funding of the security deposit account, although major capital
improvements items identified by the management company have been
completed. Average physical occupancy at the property remains at
98%. To date the Operating General Partner has been unsuccessful
in securing refinancing through local lenders. Refinancing will
be attempted again in 2000 once the property has maintained
stabilized occupancy greater than 90% for a significant period of
time.
As part of the January 1999 debt restructure of School
Street I LP, the lender instituted a capital improvements project
to be completed by December 1999. At year end most of the
required improvements were completed. The lender has agreed to
extend the deadline for the remaining items. In an effort to
further improve operations at the property the Operating General
Partner hired a new management company in September 1999. The
new management company has been pursuing evictions of delinquent
tenants, and as a result the average occupancy of the property
declined to 50% in the fourth quarter of 1999. The Operating
General Partner is continuing to actively participate with the
new management company in the partnership's operations in order
to achieve stabile high occupancy and positive cash flow at the
property.
(Series 16) As of December 31, 1999 and 1998, the average
qualified occupancy for the series was 99.7% for both years. The
series had a total of 64 properties at December 31, 1999. Out of
the total, 62 had 100% qualified occupancy.
For the nine months being reported Series 16 reflects a net
loss from Operating Partnerships of $2,890,501. When adjusted
for depreciation, which is a non-cash item, the Operating
Partnerships reflect positive operations of $678,382. This is an
interim period estimate; it is not necessarily indicative of the
final year end results.
The management company assumed the role of Operating General
Partner of Mariner's Pointe Limited Partnership I and Mariner's
Pointe Limited Partnership II (Mariner's Pointe Apartments and
Mariner's Pointe Apartments II) effective January 1, 1999. The
new Operating General Partner continues to focus on reducing the
property's operating expenses. The Operating General Partner
completed a loan restructure reducing the interest rate on the
mortgage to 8%. In addition, a second mortgage at a 5.5%
interest rate was closed. The second mortgage was used to fund
capital improvement needs at the property. These capital
improvements are now complete and have greatly improved curb
appeal. The fourth quarter average occupancy was 95%.
Cass Partners, L.P. (Fitzgerald Apartments) operated below
breakeven in 1999 as a result of low occupancy. An increasing
supply of affordable housing in the area has hampered marketing
efforts and made tenant retention difficult. At this time, the
Operating General Partner is examining market strategies and
outreach efforts and continues to provide financial support to
the operating partnership.
(Series 17) As of December 31, 1999 and 1998, the average
qualified occupancy for the series was 99.7% for both years. The
series had a total of 49 properties at December 31, 1999. Out of
the total 48 had 100% qualified occupancy.
For the nine months being reported Series 17 reflects a net
loss from Operating Partnerships of $1,761,457. When adjusted
for depreciation, which, is a non-cash item, the Operating
Partnerships reflect positive operations of $1,070,104. This is
an interim period estimate; it is not necessarily indicative of
the final year end results.
Annadale Housing Partners (Kingsview Manor & Estates) has
reported net losses due to operational issues associated with the
property. In order to address these issues, the Operating
General Partner has hired a consultant to assist management in
aggressively marketing the property. In addition, the management
agent has hired a new on-site manager and leasing agent. As a
result of these changes, occupancy reached 92% as of December 31,
1999. The rental rates at the property were increased. In a
step to cut costs even further the Operating General Partner has
initiated loan restructure discussions with the first lender for
more favorable terms. The loan restructure was finalized with
more favorable terms. In exchange for payment by the Operating
General Partner of $620,457, monthly mortgage payments were
reduced by 79%, thereby alleviating the property of a large
monthly cash obligation. With the additional cash available,
property operations are anticipated to improve significantly over
prior years. The Investment General Partner continues to monitor
this situation closely.
The property owned by California Investors VI LP (Orchard
Park) has sustained a physical occupancy of 92% in December
1999. The increased occupancy is 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. In addition, the property's surrounding area is
experiencing economic growth. A major public sports park,
currently being developed next to Orchard Park is scheduled to be
completed in the fall of 2000. Once this park is opened, it is
expected to further enhance the appeal of Orchard Park
Apartments.
(Series 18) As of December 31, 1999 and 1998 the average
qualified occupancy for the series was 100% for both years. The
series had a total of 34 properties at December 31, 1999, out of
the total all had 100% qualified occupancy.
For the nine months being reported Series 18 reflects a net
loss from Operating Partnerships of $1,253,429. When adjusted
for depreciation, which is a non-cash item, the Operating
Partnerships reflect positive operations of $624,022. This is an
interim period estimate; it is not necessarily indicative of the
final year end results.
In August 1996 the Investment General Partner was notified
that Virginia Avenue Affordable Limited Partnership (Kristine
Apartments) was named as defendant in a land encroachment
complaint. A judgment was issued which will remove any
uncertainty as to the Operating Partnership's possession of the
land. The appropriate executed title information has been
received. At the request of the Investment General Partner, a new
management company began at the site in August, 1999. As of
December 31, 1999, occupancy has risen to 98% and tenant
collections and retention have improved. Periodic cash
shortfalls are anticipated until the occupancy stabilizes and
maintenance expenses are reduced.
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's 18 non-transitional
housing units operate with a strong occupancy, however, the six
transitional units incur significant turnover, which results in
increased operating expense. The Operating General Partner has
taken a more active role in the leasing and day to day management
of the six transitional units. It was previously reported that
the Operating General Partner was successful in removing the six
transitional units from the program and that as of 1/1/00, all
six units would be available to non-transitional qualified
residence. However, the Investment Limited Partner was recently
informed that two units will remain in the Transitional Housing
program. As of 12/31/99, the occupancy at the property has
improved to 96%. Now that the occupancy has begun to stabilize
the Operating General Partner and the management company are
reviewing the property's expenses, including real estate taxes
and debt service, in an effort to reduce the expenses.
Series 19) As of December 31, 1999 and 1998 the average
qualified occupancy for the series was 100% and 99.8%,
respectively. The series had a total of 26 properties at
December 31, 1999, all of which were at 100% qualified occupancy.
For the nine months being reported Series 19 reflects a net
loss from Operating Partnerships of $1,224,823. When adjusted
for depreciation, which is a non-cash item, the Operating
Partnerships reflect positive operations of $933,871. This is an
interim period estimate; it is not necessarily indicative of the
final year end results.
Year 2000 Compliance
As previously stated in the Partnership's 10-K, Boston
Capital and its management have reviewed the potential computer
problems that may arise from the century date change known as the
"Year 2000" or "Y2K" problem. We are happy to announce that we
did not experience any computer-related problems as a result of
this date change and therefore, there was no impact on our
investors.
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: February 22, 2000 By: /s/ John P. Manning
-------------------
John P. Manning,
Partner & Principal
Financial
Officer
<TABLE> <S> <C>
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<CIK> 0000879555
<NAME> BOSTON CAPITAL TAX CREDIT FUND III LP
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-START> APR-01-1999
<PERIOD-END> DEC-31-1999
<TOTAL-ASSETS> 110,145,406
0
0
<COMMON> 0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 110,145,406
<TOTAL-REVENUES> 172,426
<INCOME-TAX> 0
<INCOME-CONTINUING> (10,153,705)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (9,981,279)
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