February 11, 1999
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, 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/Stephen Guilmette
Steven Guilmette
Assistant Controller
TC8-Q3.DOC
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(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, 1998
-------------------------------------
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
------------- ------------------
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, 1998 (Unaudited)
and March 31, 1998 1
Statements of Operations (Unaudited) - For the Three and Nine
Months Ended December 31, 1998 and 1997 2
Statement of Changes in Partners' Equity (Deficiency)
(Unaudited) - For the Nine Months Ended December 31, 1998 3
Statements of Cash Flows (Unaudited) - For the Nine
Months Ended December 31, 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>
December 31, March 31,
1998 1998
(Unaudited)
Assets ------------- -------------
<S> <C> <C>
Cash and cash equivalents $ 213,538 $ 213,966
Investments in Local Limited Partnerships (Note 1) 23,619,828 25,099,334
Marketable securities, at fair value 1,562,948 1,486,224
Organization costs, net of accumulated
amortization of $48,333 and $40,833, respectively 1,667 9,167
Other assets 19,150 19,275
------------- -------------
Total Assets $ 25,417,131 $ 26,827,966
============= =============
Liabilities and Partners' Equity
Liabilities
Accounts payable to affiliates $ 414,435 $ 268,817
Accrued expenses 41,525 39,747
------------- -------------
Total Liabilities 455,960 308,564
------------- -------------
Commitments
General, Initial and Investor Limited Partners' Equity 24,951,638 26,519,501
Net unrealized gains (losses) on marketable securities 9,533 (99)
------------- -------------
Total Partners' Equity 24,961,171 26,519,402
------------- -------------
Total Liabilities and Partners' Equity $ 25,417,131 $ 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 and Nine Months Ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
December 31, December 31, December 31, December 31,
1998 1997 1998 1997
------------- ------------- -------------- -------------
Revenue:
<S> <C> <C> <C> <C>
Investment $ 25,890 $ 25,654 $ 74,207 $ 79,099
Other 6,115 3,360 7,565 4,685
----------- ----------- ------------ ------------
Total Revenue 32,005 29,014 81,772 83,784
----------- ----------- ------------ ------------
Expenses:
Asset management fees,
related party 50,765 49,609 152,295 148,827
General and administrative
expenses (includes
reimbursements to affiliates
in the amounts of $55,836
and $68,329 in 1998 and
1997, respectively) 39,111 40,250 96,988 123,056
Amortization 9,986 9,986 29,958 29,958
----------- ----------- ------------ ------------
Total Expenses 99,862 99,845 279,241 301,841
----------- ----------- ------------ ------------
Loss before equity in losses
of Local Limited Partnership (67,857) (70,831) (197,469) (218,057)
Equity in losses of Local
Limited Partnerships (Note 1) (440,055) (526,592) (1,370,394) (1,461,531)
----------- ----------- ------------ ------------
Net Loss $ (507,912) $ (597,423) $ (1,567,863) $ (1,679,588)
=========== =========== ============ ============
Net Loss allocated:
To General Partners $ (5,079) $ (5,974) $ (15,679) $ (16,796)
To Limited Partners (502,833) (591,449) (1,552,184) (1,662,792)
----------- ----------- ------------ ------------
$ (507,912) $ (597,423) $ (1,567,863) $ (1,679,588)
=========== =========== ============ ============
Net Loss per Limited
Partnership Unit (36,497 Units) $ (13.78) $ (16.21) $ (42.53) $ (45.56)
=========== =========== =========== ============
</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 Nine Months Ended December 31, 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
------------- ----------- ------------- ---------- -------------
Comprehensive Loss:
Net Loss (15,679) - (1,552,184) - (1,567,863)
Change in net unrealized
losses on marketable securities
available for sale - - - 9,632 9,632
------------- ----------- ------------- ---------- -------------
Comprehensive Loss (15,679) - (1,552,184) 9,632 (1,558,231)
------------- ----------- ------------- ---------- -------------
Balance at
December 31, 1998 $ (66,831) $ 100 $ 25,018,369 $ 9,533 $ 24,961,171
============= =========== ============= ========== =============
</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 Nine Months Ended December 31, 1998 and 1997
<TABLE>
<CAPTION>
1998 1997
------------- -------------
<S> <C> <C>
Net cash used for operating activities $ (23,210) $ (114,786)
------------- -------------
Cash flows from investing activities:
Investment in Local Limited Partnerships - (451,360)
Restricted cash - 503,031
Cash distributions received from
Local Limited Partnerships 86,654 51,702
Purchases of marketable securities (975,941) (672,711)
Proceeds from sales and maturities of
marketable securities 912,069 732,262
------------- -------------
Net cash provided by investing activities 22,782 162,924
------------- -------------
Net increase (decrease) in cash and cash equivalents (428) 48,138
Cash and cash equivalents, beginning of period 213,966 273,412
------------- -------------
Cash and cash equivalents, end of period $ 213,538 $ 321,550
============= =============
</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 of the Local Limited Partnerships that is included in the
accompanying financial statements is as of September 30, 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 interests 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, 1998:
<TABLE>
<CAPTION>
Capital Contributions paid to Local Limited
<S> <C>
Partnerships $ 29,264,859
Cumulative equity in losses of Local Limited Partnerships (6,419,283)
Cumulative cash distributions received from Local
Limited Partnerships (170,354)
-------------
Investment in Local Limited Partnerships before adjustment 22,675,222
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,048,010
Accumulated amortization of acquisition fees and expenses (103,404)
-------------
Investments in Local Limited Partnerships $ 23,619,828
=============
</TABLE>
The Fund's share of net losses of the Local Limited Partnerships for the nine
months ended December 31, 1998 is $1,370,394.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII
(A Limited Partnership)
NOTES TO FINANCIAL STATEMENTS (continued)
(Unaudited)
2. Effect of Recently Issued Accounting Standard
In June 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 130, "Reporting Comprehensive Income". The
Statement, which is effective for fiscal years beginning after December 15,
1997, requires that the Fund display an amount representing total comprehensive
income for the period in its financial statements. The Fund adopted the new
standard effective April 1, 1998.
<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, 1998, the Fund had cash and cash equivalents of $213,538 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 December 31, 1998, approximately $1,321,000 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 December 31, 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 December 31, 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
The Fund's results of operations for the three and nine months ended December
31, 1998 resulted in a net loss of $507,912 and $1,567,863, as compared to a net
loss of $597,423 and $1,679,588 for the same period in 1997. The decrease in net
loss is primarily attributable to a decrease in general and administrative
expenses and equity in losses of the Local Limited Partnerships. The decrease of
the equity in losses of the Local Limited Partnerships is due to increased
occupancy in two of the Local Partnerships during the period ended December 31,
1998.
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.
Impact of Year 2000
The Managing General Partner has assessed the Fund's exposure to date sensitive
computer software programs that may not be operative subsequent to 1999 and has
executed a requisite course of action to minimize Year 2000 risk and ensure that
neither significant costs nor disruption of normal business operations are
encountered. However, due to the inherent uncertainty that all systems of
outside vendors or other companies on which the Fund and/or Local Limited
Partnerships rely will be compliant, the Fund remains susceptible to
consequences of the Year 2000 issue.
<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, 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: February 11, 1999 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> 9-MOS
<FISCAL-YEAR-END> MAR-31-1999
<PERIOD-END> DEC-31-1998
<CASH> 213,538
<SECURITIES> 1,562,948
<RECEIVABLES> 000
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 000
<PP&E> 000
<DEPRECIATION> 000
<TOTAL-ASSETS> 25,417,131<F1>
<CURRENT-LIABILITIES> 000
<BONDS> 000
000
000
<COMMON> 000
<OTHER-SE> 24,961,171
<TOTAL-LIABILITY-AND-EQUITY> 25,417,131<F2>
<SALES> 000
<TOTAL-REVENUES> 81,772<F3>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 279,241<F4>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 000
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (1,567,863)<F5>
<EPS-PRIMARY> (42.53)
<EPS-DILUTED> 000
<FN>
<F1>Total assets include Investments in Local Limited Partnerships of
$23,619,828, Organizational costs, net of $1,667 and Other assets of $19,150
<F2>Total liability and equity includes Accounts payable to affiliates of
$414,435 and Accrued expenses of $41,525 <F3>Total revenue includes Investment
of $74,207 and Other of $7,565 <F4>Other Expenses include Asset Management fees,
related party of $152,295, General and administrative of $96,988 and
Amortization of $29,958. <F5>Net loss includes Equity in losses of Local Limited
Partnerships of $1,370,394.
</FN>
</TABLE>
