November 14, 1997
Securities and Exchange Commission
Filer Support, Edgar
Operation Center, Stop 0-7
6432 General Green Way
Alexandria, VA 22312
Boston Financial Tax Credit Fund VIII, A Limited Partnership
Report on Form 10-Q for Quarter Ended September 30, 1997
File No. 0-26522
Gentlemen:
Pursuant to the requirements of Section 15(d) of the Securities Exchange Act of
1934, filed herewith is a copy of subject report.
Very truly yours,
/s/Patricia Olsen-Goldberg
Patricia Olsen-Goldberg
Controller
TC8-Q2.DOC
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of
1934
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
For Quarter Ended September 30, 1997 Commission file number 0-26522
-------------------- --------------
Boston Financial Tax Credit Fund VIII, A Limited Partnership
(Exact name of registrant as specified in its charter)
Massachusetts 04-3205879
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
101 Arch Street, Boston, Massachusetts 02110-1106
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617) 439-3911
----------------------------
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No .
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheets - September 30, 1997 (Unaudited)
and March 31, 1997 1
Statements of Operations (Unaudited) - For the Three and Six
Months Ended September 30, 1997 and 1996 2
Statement of Changes in Partners' Equity (Deficiency) (Unaudited) -
For the Six Months Ended September 30, 1997 3
Statements of Cash Flows (Unaudited) - For the Six
Months Ended September 30, 1997 and 1996 4
Notes to Financial Statements (Unaudited) 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
PART II - OTHER INFORMATION
Items 1-6 7
SIGNATURE 8
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
BALANCE SHEETS
<TABLE>
<CAPTION>
September 30, March 31,
1997 1997
(Unaudited)
Assets
<S> <C> <C>
Cash and cash equivalents $ 211,694 $ 273,412
Investments in Local Limited Partnerships (Note 1) 26,276,748 26,813,245
Restricted cash - 503,031
Marketable securities, at fair value 1,503,217 1,442,676
Organization costs, net of accumulated
amortization of $35,833 and $30,833, respectively 14,167 19,167
Other assets 22,789 26,727
------------ ------------
Total Assets $ 28,028,615 $ 29,078,258
============ ============
Liabilities and Partners' Equity
Accounts payable to affiliates $ 169,946 $ 128,791
Accrued expenses 21,617 38,729
------------ ------------
Total Liabilities 191,563 167,520
------------ ------------
Commitments
General, Initial and Investor Limited Partners' Equity 27,845,413 28,927,578
Net unrealized losses on marketable securities (8,361) (16,840)
------------ ------------
Total Partners' Equity 27,837,052 28,910,738
------------ ------------
Total Liabilities and Partners' Equity $ 28,028,615 $ 29,078,258
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS
(Unaudited)
For the Three and Six Months Ended September 30, 1997 and 1996
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
September 30, September 30, September 30, September 30,
1997 1996 1997 1996
------------- ------------- -------------- ----------
<S> <C> <C> <C> <C>
Revenue:
Investment $ 27,126 $ 39,766 $ 53,445 $ 41,652
Other 600 (18,603) 1,325 (1,869)
----------- ----------- ------------ -----------
Total Revenue 27,726 21,163 54,770 39,783
----------- ----------- ------------ -----------
Expenses:
Asset management fees,
related party 49,609 47,931 99,218 96,002
General and administrative
expenses (includes
reimbursements to affiliates
in the amounts of $48,442
and $58,937 in 1997 and
1996, respectively) 35,902 39,148 82,806 109,239
Amortization 9,988 5,967 19,972 15,954
----------- ----------- ------------ -----------
Total Expenses 95,499 93,046 201,996 221,195
----------- ----------- ------------ -----------
Loss before equity in losses
of Local Limited Partnership (67,773) (71,883) (147,226) (181,412)
Equity in losses of Local
Limited Partnerships (Note 1) (442,822) (672,494) (934,939) (846,704)
----------- ----------- ------------ -----------
Net Loss $ (510,595) $ (744,377) $ (1,082,165) $(1,028,116)
=========== =========== ============ ===========
Net Loss allocated
To General Partners $ (5,106) $ (7,444) $ (10,822) $ (10,281)
To Limited Partners (505,489) (736,933) (1,071,343) (1,017,835)
----------- ----------- ------------ ------------
$ (510,595) $ (744,377) $ (1,082,165) $ (1,028,116)
=========== =========== ============ ============
Net Loss per Limited
Partnership Unit (36,497 Units) $ (13.85) $ (20.19) $ (29.35) $ (27.88)
========== ========== =========== ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
(Unaudited)
For the Six Months Ended September 30, 1997
<TABLE>
<CAPTION>
Initial Investor Net
General Limited Limited Unrealized
Partners Partners Partners Losses Total
<S> <C> <C> <C> <C> <C>
Balance at March 31, 1997 $(27,071) $ 100 $ 28,954,549 $ (16,840) $ 28,910,738
Net change in unrealized losses
on marketable securities
available for sale - - - 8,479 8,479
Net Loss (10,822) - (1,071,343) - (1,082,165)
-------- -------- ------------- --------- -------------
Balance at September 30, 1997 $(37,893) $ 100 $ 27,883,206 $ (8,361) $ 27,837,052
======== ======== ============= ========= =============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS
(Unaudited)
For the Six Months Ended September 30, 1997 and 1996
<TABLE>
<CAPTION>
1997 1996
-------------- ----------
<S> <C> <C>
Net cash used for operating activities $ (99,867) $ (137,164)
------------ ------------
Cash flows from investing activities:
Investment in Local Limited Partnerships (456,550) (2,777,062)
Restricted cash 503,031 879,366
Cash distributions received from
Local Limited Partnerships 43,136 4,409
Purchases of marketable securities (573,539) (3,722,909)
Proceeds from sales and maturities of
marketable securities 522,071 6,194,511
Payment of acquisition expenses - (888)
------------ ------------
Net cash provided by investing activities 38,149 577,427
------------ ------------
Net increase (decrease) in cash and cash equivalents (61,718) 440,263
Cash and cash equivalents, beginning of period 273,412 71,715
------------ ------------
Cash and cash equivalents, end of period $ 211,694 $ 511,978
============ ============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
Notes to Financial Statements
(Unaudited)
The unaudited financial statements presented herein have been prepared in
accordance with the instructions to Form 10-Q and do not include all of the
information and note disclosures required by generally accepted accounting
principles. These statements should be read in conjunction with the financial
statements and notes thereto included with the Fund's 10-K for the year ended
March 31, 1997. In the opinion of management, these financial statements include
all adjustments, consisting only of normal recurring adjustments, necessary to
present fairly the Fund's financial position and results of operations. The
results of operations for the periods may not be indicative of the results to be
expected for the year. Certain reclassifications have been made to prior period
financial statements to conform to current period classifications.
1. Investments in Local Limited Partnerships
The Fund has acquired an interest in ten Local Limited Partnerships which own
and operate multi-family housing complexes. The Fund, as Investor Limited
Partner, pursuant to the Local Limited Partnership Agreements, has generally
acquired a 99% interest in the profits, losses, tax credits and cash flows from
operations of the Local Limited Partnerships, with the exception of Springwood,
Hemlock Ridge, Pike Place and West End Place, which are 79.20%, 77%, 90% and
90%, respectively. Another partnership sponsored by an affiliate of the General
Partner owns the remaining 19.80% Limited Partner interest in Springwood. Upon
dissolution, proceeds will be distributed according to the partnership
agreements.
The following is a summary of Investments in Local Limited Partnerships at
September 30, 1997:
<TABLE>
<S> <C>
Capital Contributions paid to Local Limited
Partnerships $ 29,270,049
Cumulative equity in losses of Local Limited Partnerships (3,900,203)
Cumulative cash distributions received from Local
Limited Partnerships (75,134)
-----------
Investment in Local Limited Partnership before adjustment 25,294,712
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,048,010
Accumulated amortization of acquisition fees and expenses (65,974)
-------------
Investment in Local Limited Partnerships $ 26,276,748
=============
</TABLE>
The Partnership's share of net losses of the Local Limited Partnerships for the
six months ended September 30, 1997 is $934,939.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Liquidity and Capital Resources
At September 30, 1997, the Fund had cash and cash equivalents of $211,694 as
compared to $273,412 at March 31, 1997. This decrease is primarily attributable
to purchases of marketable securities and net cash used for operations, offset
by proceeds from the sale of marketable securities and cash distributions
received from Local Limited Partnerships.
The Fund made the final release of restricted cash on August 5, 1997. These
funds were released as a capital contribution to one of the Local Limited
Partnerships in which the Fund has invested.
As of September 30, 1997, approximately $1,523,000 of cash and marketable
securities has been designated as Reserves. The Reserves are established to be
used for working capital of the Fund and contingencies related to the ownership
of Local Limited Partnership interests. Management believes that the interest
income earned on Reserves, along with cash distributions received from Local
Limited Partnerships, to the extent available, will be sufficient to fund the
Fund's ongoing operations. Reserves may be used to fund operating deficits, if
the Managing General Partner deems funding appropriate.
Since the Fund invests as a limited partner, the Fund has no contractual duty to
provide additional funds to Local Limited Partnerships beyond its specified
investment. Thus, as of September 30, 1997, the Fund had no contractual or other
obligation to any Local Limited Partnership, which had not been paid or provided
for, except as disclosed above.
In the event a Local Limited Partnership encounters operating difficulties
requiring additional funds, the Fund might deem it in its best interest to
voluntarily provide such funds, in order to protect its investment. No such
event has occurred to date.
Cash Distributions
No cash distributions were made during the six months ended September 30, 1997.
Results of Operations
For the three and six months ended September 30, 1997, the Fund's operations
resulted in a net loss of $510,595 and $1,082,165, respectively, as compared to
$744,377 and $1,028,116 for the three and six months ended September 30, 1996,
respectively. The changes in net loss for those periods are primarily
attributable to a fluctuation in equity in losses of Local Limited Partnerships.
Due to the Fund's policy of reporting financial information of its Local Limited
Partnership interests on a 90 day lag basis, this change in equity in losses is
for the three and six months ended June 30, 1997. Since many of the properties
completed construction late in 1995, lease-up occurred in the quarter ended
March 31, 1996. As a result, this three month period did not include a full
quarter of operations. Therefore, the results of operations for 1996 are not
indicative of future operations, and are not comparable to 1997. Results of
operations are now stable and are expected to continue.
Property Discussions
The Fund is invested in ten Local Limited Partnerships which own ten properties
located in eight states. Two properties, representing 356 units, underwent
rehabilitation, and eight properties, representing 1001 units, are new
construction. All of the ten properties are complete, through initial lease-up
and operating satisfactorily.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
PART II OTHER INFORMATION
Items 1-5 Not applicable
Item 6 Exhibits and reports on Form 8-K
(a) Exhibits - None
(b) Reports on Form 8-K - No reports on Form 8-K were filed
during the quarter ended September 30, 1997.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
SIGNATURE
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, thereunto duly authorized.
DATED: November 14, 1997 BOSTON FINANCIAL TAX CREDIT FUND VIII,
A LIMITED PARTNERSHIP
By: Arch Street VIII Limited Partnership,
its General Partner
/s/William E. Haynsworth
William E. Haynsworth
Managing Director, Vice President and
Chief Operating Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> SEP-30-1997
<CASH> 211,694
<SECURITIES> 1,503,217
<RECEIVABLES> 000
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 000
<PP&E> 000
<DEPRECIATION> 000
<TOTAL-ASSETS> 28,028,615<F1>
<CURRENT-LIABILITIES> 000
<BONDS> 000
000
000
<COMMON> 000
<OTHER-SE> 27,837,052
<TOTAL-LIABILITY-AND-EQUITY> 28,028,615<F2>
<SALES> 000
<TOTAL-REVENUES> 54,770<F3>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 201,996<F4>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 000
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (1,082,165)<F5>
<EPS-PRIMARY> (29.35)
<EPS-DILUTED> 000
<FN>
<F1>Included in total assets is Investments in Local Limited Partnerships of
$26,276,748, Organizational costs, net of $14,167 and Other assets of $22,789.
<F2>Total liability and equity includes Accounts payable to affiliate of
$169,946 and Accrued expenses of $21,617.
<F3>Total revenue includes Investment of $53,445 and Other of $1,325.
<F4>Included in Other Expenses is Asset Management fees, related party of
$99,218, General and administrative of $82,806, and Amortization of $19,972.
<F5>Net loss includes Equity in losses of Local Limited Partnerships of
$934,939.
</FN>
</TABLE>
