August 14, 2000
Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C. 20549
Re: Boston Financial Tax Credit Fund VIII, A Limited Partnership
Report on Form 10-QSB for Quarter Ended June 30, 2000
File Number 0-26522
Dear Sir/Madam:
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
Stephen Guilmette
Assistant Controller
TC8-Q1.DOC
<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(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, 2000
------------------------------------
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 Sheet (Unaudited) - June 30, 2000 1
Statements of Operations (Unaudited) - For the Three
Months Ended June 30, 2000 and 1999 2
Statement of Changes in Partners' Equity (Deficiency)(Unaudited) -
For the Three Months Ended June 30, 2000 3
Statements of Cash Flows (Unaudited) - For the Three
Months Ended June 30, 2000 and 1999 4
Notes to the 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 8
SIGNATURE 9
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII
(A Limited Partnership)
BALANCE SHEET
June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Assets
<S> <C>
Cash and cash equivalents $ 170,425
Investments in Local Limited Partnerships, net (Note 1) 20,587,243
Marketable securities, at fair value 1,539,683
Other assets 18,585
---------------
Total Assets $ 22,315,936
===============
Liabilities and Partners' Equity
Accounts payable to affiliate $ 559,074
Accrued expenses 31,566
---------------
Total Liabilities 590,640
General, Initial and Investor Limited Partners' Equity 21,743,658
Net unrealized losses on marketable securities (18,362)
Total Partners' Equity 21,725,296
---------------
Total Liabilities and Partners' Equity $ 22,315,936
===============
</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
For the Three Months Ended June 30, 2000 and 1999
(Unaudited)
<TABLE>
<CAPTION>
2000 1999
------------- -------------
Revenue:
<S> <C> <C>
Investment $ 23,768 $ 22,739
Other 785 800
------------- -------------
Total Revenue 24,553 23,539
------------- -------------
Expenses:
Asset management fees, related party 52,679 51,555
General and administrative (includes reimbursements
to an affiliate in the amounts of $27,367 and
$20,190 in 2000 and 1999, respectively) 41,797 35,686
Amortization 7,486 7,486
------------- -------------
Total Expenses 101,962 94,727
------------- -------------
Loss before equity in losses
of Local Limited Partnerships (77,409) (71,188)
Equity in losses of Local Limited Partnerships (Note 1) (474,664) (486,254)
------------- -------------
Net Loss $ (552,073) $ (557,442)
============= =============
Net Loss allocated:
To General Partners $ (5,521) $ (5,574)
To Limited Partners (546,552) (551,868)
------------- -------------
$ (552,073) $ (557,442)
============= =============
Net Loss per Limited Partnership Unit
(36,497 Units) $ (14.98) $ (15.12)
============= =============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII
(A Limited Partnership)
STATEMENT OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
For the Three Months Ended June 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Net
Initial Investor Unrealized
General Limited Limited Gains
Partner Partner Partners (Losses) Total
<S> <C> <C> <C> <C> <C>
Balance at March 31, 2000 $ (93,390) $ 100 $ 22,389,021 $ (22,329) $ 22,273,402
----------- --------- -------------- ----------- -------------
Comprehensive Income (Loss):
Change in net unrealized losses
on marketable securities
available for sale - - - 3,967 3,967
Net Loss (5,521) - (546,552) - (552,073)
----------- --------- -------------- ----------- -------------
Comprehensive Income (Loss) (5,521) - (546,552) 3,967 (548,106)
----------- --------- -------------- ----------- -------------
Balance at June 30, 2000 $ (98,911) $ 100 $ 21,842,469 $ (18,362) $ 21,725,296
=========== ========= ============== =========== =============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
For the Three Months Ended June 30, 2000 and 1999
(Unaudited)
<TABLE>
2000 1999
------------- -------------
<S> <C> <C>
Net cash provided by (used for) operating activities $ 5,421 $ (30,707)
Net cash provided by (used for) investing activities (23,641) 9,224
------------- -------------
Net decrease in cash and cash equivalents (18,220) (21,483)
Cash and cash equivalents, beginning 188,645 180,030
------------- -------------
Cash and cash equivalents, ending $ 170,425 $ 158,547
============= =============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<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-QSB 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 Form10-KSB for the year
ended March 31, 2000. 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, 2000 and 1999.
1. Investments in Local Limited Partnerships
The Fund uses the equity method to account for its limited partner interests 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, which contain certain operating and distribution
restrictions, has 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 Partnership
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, 2000:
<TABLE>
<CAPTION>
Capital Contributions paid to Local
<S> <C>
Limited Partnerships $ 29,264,859
Cumulative equity in losses of Local
Limited Partnerships (9,155,473)
Cumulative cash distributions received
from Local Limited Partnerships (421,836)
----------
Investments in Local Limited Partnerships
before adjustments 19,687,550
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,048,010
Accumulated amortization of acquisition
fees and expenses (148,317)
-------------
Investments in Local Limited Partnerships $ 20,587,243
=============
</TABLE>
The Fund's share of net losses of the Local Limited Partnerships for the three
months ended June 30, 2000 is $474,664.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Certain matters discussed herein constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. The Fund
intends such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements and is including this statement for
purposes of complying with these safe harbor provisions. Although the Fund
believes the forward-looking statements are based on reasonable assumptions, the
Fund can give no assurance that their expectations will be attained. Actual
results and timing of certain events could differ materially from those
projected in or contemplated by the forward-looking statements due to a number
of factors, including, without limitation, general economic and real estate
conditions and interest rates.
Liquidity and Capital Resources
At June 30, 2000, the Fund had cash and cash equivalents of $170,425 as compared
to $188,645 at March 31, 2000. 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.
At June 30, 2000, approximately $1,119,000 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, 2000, 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 interests 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 three months ended June 30, 2000.
Results of Operations
For the three months ended June 30, 2000, the Fund's operations resulted in a
net loss of $552,073, as compared to $557,442 for the three months ended June
30, 1999. The decrease in net loss is primarily attributable to a decrease in
equity in losses of Local Limited Partnerships due to an increase in total
income and a decrease in depreciation and amortization of Local Limited
Partnerships. The decrease in depreciation and amortization is partially offset
by an increase in operating expenses.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII
(A Limited Partnership)
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
Property Discussions
Live Oaks Plantation (West Palm Beach, Florida) continues to experience
operating deficits due primarily to difficulty in attracting and retaining
quality tenants. In addition, the property's curb appeal has diminished due to
the deferral of certain maintenance and repair projects. Accordingly, the
Managing General Partner continues to work closely with the Local General
Partner to develop a strategy to stabilize operations, improve the tenant
profile and monitor site management.
The Fund has implemented policies and practices for assessing potential
impairment of its investments in Local Limited Partnerships. The investments are
analyzed by real estate experts to determine if impairment indicators exist. If
so, the carrying value is compared to the undiscounted future cash flows
expected to be derived from the asset. If there is a significant impairment in
carrying value, a provision to write down the asset to fair value will be
recorded in the Fund's financial statements.
<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, 2000.
<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 14, 2000 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
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