February 13, 1998
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 December 31, 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/George Fondulis
George Fondulis
Assistant Controller
TC8-Q3.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 December 31, 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 December 31, 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 - December 31, 1997 (Unaudited)
and March 31, 1997 1
Statements of Operations (Unaudited) - For the Three and Nine
Months Ended December 31, 1997 and 1996 2
Statement of Changes in Partners' Equity (Deficiency) (Unaudited) -
For the Nine Months Ended December 31, 1997 3
Statements of Cash Flows (Unaudited) - For the Nine
Months Ended December 31, 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
<TABLE>
BALANCE SHEETS
<CAPTION>
December 31, March 31,
1997 1997
(Unaudited)
Assets
<S> <C> <C>
Cash and cash equivalents $ 321,550 $ 273,412
Investments in Local Limited Partnerships (Note 1) 25,728,914 26,813,245
Restricted cash - 503,031
Marketable securities, at fair value 1,391,210 1,442,676
Organization costs, net of accumulated
amortization of $38,333 and $30,833, respectively 11,667 19,167
Other assets 26,625 26,727
-------------- ---------------
Total Assets $ 27,479,966 $ 29,078,258
============== ===============
Liabilities and Partners' Equity
Accounts payable to affiliates $ 211,247 $ 128,791
Accrued expenses 30,054 38,729
-------------- ---------------
Total Liabilities 241,301 167,520
-------------- ---------------
Commitments
General, Initial and Investor Limited Partners' Equity 27,247,990 28,927,578
Net unrealized losses on marketable securities (9,325) (16,840)
-------------- ---------------
Total Partners' Equity 27,238,665 28,910,738
-------------- ---------------
Total Liabilities and Partners' Equity $ 27,479,966 $ 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
<TABLE>
STATEMENTS OF OPERATIONS
(Unaudited)
For the Three and Nine Months Ended December 31, 1997 and 1996
<CAPTION>
Three Months Ended Nine Months Ended
December 31, December 31, December 31, December 31,
1997 1996 1997 1996
------------- ------------- -------------- ----------
Revenue:
<S> <C> <C> <C> <C>
Investment $ 25,654 $ (1,407) $ 79,099 $ 40,245
Other 3,360 19,011 4,685 17,142
----------- ----------- ------------ ------------
Total Revenue 29,014 17,604 83,784 57,387
----------- ----------- ------------ ------------
Expenses:
Asset management fees,
related party 49,609 48,024 148,827 144,026
General and administrative
expenses (includes
reimbursements to affiliates
in the amounts of $68,329
and $76,868 in 1997 and
1996, respectively) 40,250 29,776 123,056 139,015
Amortization 9,986 7,974 29,958 23,928
----------- ----------- ------------ ------------
Total Expenses 99,845 85,774 301,841 306,969
----------- ----------- ------------ ------------
Loss before equity in losses
of Local Limited Partnership (70,831) (68,170) (218,057) (249,582)
Equity in losses of Local
Limited Partnerships (Note 1) (526,592) (292,406) (1,461,531) (1,139,110)
----------- ----------- ------------ ------------
Net Loss $ (597,423) $ (360,576) $ (1,679,588) $ (1,388,692)
=========== =========== ============ ============
Net Loss allocated
To General Partners $ (5,974) $ (3,606) $ (16,796) $ (13,887)
To Limited Partners (591,449) (356,970) (1,662,792) (1,374,805)
----------- ----------- ------------ ------------
$ (597,423) $ (360,576) $ (1,679,588) $ (1,388,692)
=========== =========== ============ ============
Net Loss per Limited
Partnership Unit (36,497 Units) $ (16.21) $ (9.79) $ (45.56) $ (37.67)
=========== =========== ============ ============
</TABLE>
The accompanying notes are an integral part of these
financial statements.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
<TABLE>
STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
(Unaudited)
For the Nine Months Ended December 31, 1997
<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 - - - 7,515 7,515
Net Loss (16,796) - (1,662,792) - (1,679,588)
-------- -------- ------------- --------- -------------
Balance at December 31, 1997 $(43,867) $ 100 $ 27,291,757 $ (9,325) $ 27,238,665
======== ======== ============= ========= =============
</TABLE>
The accompanying notes are an integral part of these
financial statements.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
<TABLE>
STATEMENTS OF CASH FLOWS
(Unaudited)
For the Nine Months Ended December 31, 1997 and 1996
<CAPTION>
1997 1996
-------------- ----------
<S> <C> <C>
Net cash used for operating activities $ (114,786) $ (146,204)
------------ ------------
Cash flows from investing activities:
Investment in Local Limited Partnerships (451,360) (2,716,626)
Restricted cash 503,031 873,975
Cash distributions received from
Local Limited Partnerships 51,702 4,409
Purchases of marketable securities (672,711) (3,953,712)
Proceeds from sales and maturities of
marketable securities 732,262 6,293,428
Payment of acquisition expenses - (888)
------------ ------------
Net cash provided by investing activities 162,924 500,586
------------ ------------
Net increase in cash and cash equivalents 48,138 354,382
Cash and cash equivalents, beginning of period 273,412 71,715
------------ ------------
Cash and cash equivalents, end of period $ 321,550 $ 426,097
============ ============
</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 year
financial statements to conform to current year classifications.
The Managing General Partner has elected to report results of the Local Limited
Partnerships on a 90 day lag basis, because the Local Limited Partnerships
report their results on a calendar year basis. Accordingly, the financial
information about the Local Limited Partnerships that is included in the
accompanying financial statements is as of September 30, 1997 and 1996.
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
December 31, 1997:
<TABLE>
<CAPTION>
Capital Contributions paid to Local Limited
<S> <C>
Partnerships $ 29,264,859
Cumulative equity in losses of Local Limited Partnerships (4,426,795)
Cumulative cash distributions received from Local
Limited Partnerships (83,700)
------------
Investment in Local Limited Partnership before adjustment 24,754,364
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,048,010
Accumulated amortization of acquisition fees and expenses (73,460)
-------------
Investment in Local Limited Partnerships $ 25,728,914
=============
</TABLE>
The Partnership's share of net losses of the Local Limited Partnerships for the
nine months ended December 31, 1997 is $1,461,531.
<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 December 31, 1997, the Fund had cash and cash equivalents of $321,550 as
compared to $273,412 at March 31, 1997. This increase is primarily attributable
to proceeds from the sale of marketable securities in excess of purchases of
marketable securities and cash distributions received from Local Limited
Partnerships. These increases are partially offset by net cash used for
operations.
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 December 31, 1997, approximately $1,471,000 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 December 31, 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 nine months ended December 31, 1997.
Results of Operations
For the three and nine months ended December 31, 1997, the Fund's operations
resulted in a net loss of $597,423 and $1,679,588, as compared to $360,576 and
$1,388,692 for the three and nine months ended December 31, 1996, respectively.
The increase in net loss is primarily attributable to an increase in equity in
losses of Local Limited Partnerships. The increase in equity in losses of Local
Limited Partnerships for the nine months ended December 31, 1997, as compared to
the same period in 1996, is primarily attributable to the timing of construction
completion. Since many of the properties completed construction late in 1995,
the results of operations for the nine months ended December 31, 1996 were not
indicative of the results to be expected for the future, nor are they
comparable.
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 December 31, 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: February 13, 1998 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> 9-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-END> DEC-31-1997
<CASH> 321,550
<SECURITIES> 1,391,210
<RECEIVABLES> 000
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 000
<PP&E> 000
<DEPRECIATION> 000
<TOTAL-ASSETS> 27,479,966<F1>
<CURRENT-LIABILITIES> 000
<BONDS> 000
000
000
<COMMON> 000
<OTHER-SE> 27,238,665
<TOTAL-LIABILITY-AND-EQUITY> 27,479,966<F2>
<SALES> 000
<TOTAL-REVENUES> 83,784<F3>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 301,841<F4>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 000
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (1,679,588)<F5>
<EPS-PRIMARY> (45.56)
<EPS-DILUTED> 000
<FN>
<F1>Included in total assets is Investments in Local Limited Partnerships of
$25,728,914, Organizational costs, net of $11,667 and Other assets of $26,625.
<F2>Total liability and equity includes Accounts payable to affiliate of
$211,247 and Accrued expenses of $30,054.
<F3>Total revenue includes Investment of $79,099 and Other of $4,685.
<F4>Included in Other Expenses is Asset Management fees, related party of
$148,827, General and administrative of $123,056, and Amortization of $29,958.
<F5>Net loss includes Equity in losses of Local Limited Partnerships of
$1,461,531.
</FN>
</TABLE>
