November 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 the Quarter Ended September 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 GuilmetteAssistant Controller
TC8-Q2.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 September 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 - September 30, 2000 (Unaudited) 1
Statements of Operations (Unaudited) - For the Three and Six
Months Ended September 30, 2000 and 1999 2
Statement of Changes in Partners' Equity (Deficiency) (Unaudited) -
For the Six Months Ended September 30, 2000 3
Statements of Cash Flows (Unaudited) - For the Six
Months Ended September 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
September 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Assets
<S> <C>
Cash and cash equivalents $ 151,708
Investments in Local Limited Partnerships, net (Note 1) 20,062,441
Marketable securities, at fair value 1,613,068
Other assets 30,056
-------------
Total Assets $ 21,857,273
=============
Liabilities and Partners' Equity
--------------------------------
Liabilities
Accounts payable to affiliate $ 639,121
Accrued expenses 35,106
-------------
Total Liabilities 674,227
-------------
General, Initial and Investor Limited Partners' Equity 21,192,179
Net unrealized losses on marketable securities (9,133)
-------------
Total Partners' Equity 21,183,046
-------------
Total Liabilities and Partners' Equity $ 21,857,273
=============
</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 and Six Months Ended September 30, 2000 and 1999
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
September 30, September 30, September 30, September 30,
2000 1999 2000 1999
------------- ------------- -------------- ----------
Revenue:
<S> <C> <C> <C> <C>
Investment $ 25,662 $ 21,534 $ 49,430 $ 44,273
Other 195 350 980 1,150
------------- ------------- -------------- ---------------
Total Revenue 25,857 21,884 50,410 45,423
------------- ------------- -------------- ---------------
Expenses:
Asset management fees,
related party 52,679 51,555 105,358 103,110
General and administrative
expenses (includes
reimbursements to affiliates
in the amounts of $54,735
and $36,901 in 2000 and
1999, respectively) 39,855 31,358 81,652 67,044
Amortization 7,486 7,485 14,972 14,971
------------- ------------- -------------- ---------------
Total Expenses 100,020 90,398 201,982 185,125
------------- ------------- -------------- ---------------
Loss before equity in losses
of Local Limited Partnerships (74,163) (68,514) (151,572) (139,702)
Equity in losses of Local
Limited Partnerships (Note 1) (477,316) (563,373) (951,980) (1,049,627)
------------- ------------- -------------- ---------------
Net Loss $ (551,479) $ (631,887) $ (1,103,552) $ (1,189,329)
============= ============= ============== ===============
Net Loss allocated
To General Partner $ (5,515) $ (6,319) $ (11,036) $ (11,893)
To Limited Partners (545,964) (625,568) (1,092,516) (1,177,436)
------------- ------------- -------------- ---------------
$ (551,479) $ (631,887) $ 1,103,552 $ (1,189,329)
============= ============= ============== ===============
Net Loss per Limited
Partnership Unit (36,497 Units) $ (14.95) $ (17.14) $ (29.93) $ (32.26)
============= ============= ============== ==============
</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)
For the Six Months Ended September 30, 2000
(Unaudited)
<TABLE>
<CAPTION>
Initial Investor Net
General Limited Limited Unrealized
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 - - - 13,196 13,196
Net Loss (11,036) - (1,092,516) - (1,103,552)
------------ --------- -------------- ----------- -----------
Comprehensive Income (Loss) (11,036) - (1,092,516) 13,196 (1,090,356)
----------- --------- -------------- ----------- -----------
Balance at September 30, 2000 $ (104,426) $ 100 $ 21,296,505 $ (9,133) $ 21,183,046
=========== ========= ============== =========== =============
</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
For the Six Months Ended September 30, 2000 and 1999
(Unaudited)
<TABLE>
<CAPTION>
2000 1999
------------- -----------
<S> <C> <C>
Net cash provided by (used for) operating activities $ 10,077 $ (148,102)
Net cash provided by (used for) investing activities (47,014) 25,665
------------- ------------
Net decrease in cash and cash equivalents (36,937) (122,437)
Cash and cash equivalents, beginning of period 188,645 180,030
------------- -------------
Cash and cash equivalents, end of period $ 151,708 $ 57,593
============= =============
</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-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 Funds 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 June 30, 2000 and 1999.
1. Investments in Local Limited Partnerships
The Fund uses the equity method to account for its limited partnership 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,
where 79.20%, 77%, 90% and 90% interests were acquired, 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
September 30, 2000:
<TABLE>
<CAPTION>
Capital Contributions paid to Local
<S> <C>
Limited Partnerships $ 29,264,859
Cumulative equity in losses of Local
Limited Partnerships (9,632,789)
Cumulative cash distributions received
from Local Limited Partnerships (461,836)
-------------
Investments in Local Limited Partnerships
before adjustments 19,170,234
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,048,010
Accumulated amortization of acquisition
fees and expenses (155,803)
-------------
Investments in Local Limited Partnerships $ 20,062,441
=============
</TABLE>
The Fund's share of net losses of the Local Limited Partnerships for the six
months ended September 30, 2000 is $951,980.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII
(A Limited Partnership)
MANAGEMENTS 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 September 30, 2000, the Fund had cash and cash equivalents of $151,708, as
compared, to $188,645 at March 31, 2000. This decrease is primarily
attributable to purchases of marketable securities in excess of proceeds from
sales and maturities of marketable securities. This decrease is partially offset
by cash distributions received from Local Limited Partnerships.
At September 30, 2000, approximately $1,091,000 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 September 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.
Cash Distributions
No cash distributions were made during the six months ended September 30, 2000.
Results of Operations
For the three and six months ended September 30, 2000, the Fund's operations
resulted in a net loss of $551,479 and $1,103,552, respectively, as
compared to a net loss of $631,887 and $1,189,329 for the same periods in 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 of
Local Limited Partnerships, partially offset by an increase in Local Limited
Partnership operating expenses. The decrease in equity losses is partially
offset by an increase in general and administrative expenses.
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII
(A Limited Partnership)
MANAGEMENTS 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. During October
2000, the Local General Partner indicated a desire to transfer his interest
in the property to a replacement Local General Partner. The Managing
General Partner believes that it would be in the best interests of the property
to replace the Local General Partner. Accordingly, the Managing General will
proceed to work with the Local General Partner to identify an acceptable
replacement.
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 September 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: November 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
<PAGE>
