August 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 June 30, 1998
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/Dianne Groark
Dianne Groark
Assistant Controller
TC8-Q1.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 June 30, 1998
---------------------------------
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 June 30, 1998 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
incorporation or organization) Identification No.)
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 - June 30, 1998 (Unaudited)
and March 31, 1998 1
Statements of Operations (Unaudited) - For the Three
Months Ended June 30, 1998 and 1997 2
Statement of Changes in Partners' Equity (Deficiency) (Unaudited) -
For the Three Months Ended June 30, 1998 3
Statements of Cash Flows (Unaudited) - For the Three
Months Ended June 30, 1998 and 1997 4
Notes to Financial Statements (Unaudited) 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II - OTHER INFORMATION
Items 1-6 8
SIGNATURE 9
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII
(A Limited Partnership)
BALANCE SHEETS
<TABLE>
<CAPTION>
June 30, March 31,
1998 1998
(Unaudited)
Assets
<S> <C> <C>
Cash and cash equivalents $ 197,660 $ 213,966
Investments in Local Limited Partnerships (Note 1) 24,556,732 25,099,334
Marketable securities, at fair value 1,567,301 1,486,224
Organization costs, net of accumulated amortization
of $43,333 and $40,833, respectively 6,667 9,167
Other assets 24,349 19,275
------------- -------------
Total Assets $ 26,352,709 $ 26,827,966
============= =============
Liabilities and Partners' Equity
Liabilities
Accounts payable to affiliate $ 312,252 $ 268,817
Accrued expenses 37,526 39,747
------------- -------------
Total Liabilities 349,778 308,564
------------- -------------
General, Initial and Investor Limited Partners' Equity 26,000,059 26,519,501
Net unrealized gains (losses) on marketable securities 2,872 (99)
------------- -------------
Total Partners' Equity 26,002,931 26,519,402
------------- -------------
Total Liabilities and Partners' Equity $ 26,352,709 $ 26,827,966
============= =============
</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 Months Ended June 30, 1998 and 1997
<TABLE>
<CAPTION>
1998 1997
------------- ---------
Revenue:
<S> <C> <C>
Investment $ 23,208 $ 26,319
Other 750 725
------------- -------------
Total Revenue 23,958 27,044
------------- -------------
Expenses:
Asset management fees, related party 50,765 49,609
General and administrative (includes reimbursements
to an affiliate in the amounts of $ 18,073 and
$29,402 in 1998 and 1997, respectively) 42,814 46,904
Amortization 9,986 9,984
------------- -------------
Total Expenses 103,565 106,497
------------- -------------
Loss before equity in losses
of Local Limited Partnerships (79,607) (79,453)
Equity in losses of Local Limited Partnerships (439,835) (492,117)
------------- -------------
Net Loss $ (519,442) $ (571,570)
============= =============
Net Loss allocated:
To General Partners $ (5,194) $ (5,716)
To Limited Partners (514,248) (565,854)
------------- --------------
$ (519,442) $ (571,570)
============= =============
Net Loss per Limited Partnership Unit
(36,497 Units) $ (14.09) $ (15.50)
============= =============
</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 Three Months Ended June 30, 1998
<TABLE>
<CAPTION>
Net
Initial Investor Unrealized
General Limited Limited Gains
Partner Partner Partners (Losses) Total
Balance at
<S> <C> <C> <C> <C> <C>
March 31, 1998 $ (51,152) $ 100 $ 26,570,553 $ (99) $ 26,519,402
Net change in net unrealized
losses on marketable
securities available for
sale - - - 2,971 2,971
Net Loss (5,194) - (514,248) - (519,442)
------------- ----------- ------------- ---------- -------------
Balance at
June 30, 1998 $ (56,346) $ 100 $ 26,056,305 $ 2,872 $ 26,002,931
============= =========== ============= ========== =============
</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 Three Months Ended June 30, 1998 and 1997
<TABLE>
<CAPTION>
1998 1997
------------- ---------
<S> <C> <C>
Net cash used for operating activities $ (33,164) $ (38,185)
------------- -------------
Cash flows from investing activities:
Restricted cash - (6,062)
Cash distributions received from
Local Limited Partnerships 95,281 40,311
Purchases of marketable securities (450,825) (99,875)
Proceeds from sales and maturities of
marketable securities 372,402 160,836
------------- -------------
Net cash provided by investing activities 16,858 95,210
------------- -------------
Net increase (decrease) in cash and cash equivalents (16,306) 57,025
Cash and cash equivalents, beginning of period 213,966 273,412
------------- -------------
Cash and cash equivalents, end of period $ 197,660 $ 330,437
============= =============
</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, 1998. 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.
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 March 31, 1998 and 1997.
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 June
30, 1998:
<TABLE>
<CAPTION>
<S> <C>
Capital Contributions paid to Local Limited
Partnerships $ 29,264,859
Cumulative equity in losses of Local Limited Partnerships (5,488,724)
Cumulative cash distributions received from Local
Limited Partnerships (178,981)
Investment in Local Limited Partnerships before adjustment 23,597,154
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,048,010
Accumulated amortization of acquisition fees and expenses (88,432)
-------------
Investment in Local Limited Partnerships $ 24,556,732
=============
</TABLE>
The Partnership's share of net losses of the Local Limited Partnerships
for the three months ended June 30, 1998 is $439,835.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS(Continued)
(Unaudited)
2. Effect of Recently Issued Accounting Standard
The Financial Accounting Standards Board recently issued Statement of Financial
Accounting Standards No. 130, Reporting Comprehensive Income. The Partnership
has adopted the new standard effective April 1, 1998. The adoption of this
standard had no effect on the Partnership's net income or partner's equity.
Comprehensive loss was $516,471 and $565,276 for the quarters ended June 30,
1998 and 1997, respectively. Comprehensive loss includes the change in net
unrealized gains and losses on marketable securities available for sale of
$2,971 and $6,294 for the quarters ended June 30, 1998 and 1997, respectively.
<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 June 30, 1998, the Fund had cash and cash equivalents of $197,660 as compared
to $213,966 at March 31, 1998. This decrease is attributable to purchases of
marketable securities in excess of proceeds from sales and maturities of
marketable securities and cash used for operations. These decreases are offset
by cash distributions received from Local Limited Partnerships.
As of June 30, 1998, approximately $1,415,000 of 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
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 June 30, 1998, 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 period ended June 30, 1998. It is
expected that cash available for distribution, if any, will not be significant
in fiscal year 1999. As funds from temporary investments are paid to Local
Limited Partnerships, interest earnings on those funds decrease. In addition,
some of the properties benefit from some type of federal or state subsidy, and
as a consequence, are subject to restrictions on cash distributions.
Results of Operations
For the three months ended June 30, 1998, the Fund's operations resulted in a
net loss of $519,442, as compared to $571,570 for the three months ended June
30, 1997. The decrease in net loss is primarily attributable to a decrease in
equity in losses of Local Limited Partnerships, due to an increase in rental
income at some properties where occupancy has increased.
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 June 30, 1998.
<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: August 13, 1998 BOSTON FINANCIAL TAX CREDIT FUND VIII,
A LIMITED PARTNERSHIP
By: Arch Street VIII Limited Partnership,
its General Partner
/s/Randolph G. Hawthorne
Randolph G. Hawthorne
Managing Director, Vice President
and Chief Operating Officer
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> JUN-30-1998
<CASH> 197,660
<SECURITIES> 1,567,301
<RECEIVABLES> 000
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 000
<PP&E> 000
<DEPRECIATION> 000
<TOTAL-ASSETS> 26,352,709<F1>
<CURRENT-LIABILITIES> 000
<BONDS> 000
000
000
<COMMON> 000
<OTHER-SE> 26,002,931
<TOTAL-LIABILITY-AND-EQUITY> 26,352,709<F2>
<SALES> 000
<TOTAL-REVENUES> 23,958<F3>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 103,565<F4>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 000
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (519,442)<F5>
<EPS-PRIMARY> (14.09)
<EPS-DILUTED> 000
<FN>
<F1>Included in total assets is Investments in Local Limited Partnerships of $24,556,732, Organizational costs,
net of $6,667 and Other assets of $24,349.
<F2>Total liability and equity includes Accounts payable to affiliate of $312,252 and Accrued expenses of
$37,526.
<F3>Total revenue includes Investment of $23,208 and Other of $750.
<F4>Included in Other Expenses is Asset Management fees, related party of $50,765, General and administrative of
$42,814 and Amortization of $9,986.
<F5>Net loss includes Equity in losses of Local Limited Partnerships of $439,835.
</FN>
</TABLE>
