February 11, 2000
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-QSB for Quarter Ended December 31, 1999
File No. 0-26522
Gentlemen:
Pursuant to the requirements of Section 15(d) of the Securities Exchange Act of
1934, filed herewith is one copy of subject report.
Very truly yours,
/s/Stephen Guilmette
Stephen 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, 1999
-------------------------------------
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
<TABLE>
<CAPTION>
<S> <C>
PART I. FINANCIAL INFORMATION Page No.
Item 1. Financial Statements
Balance Sheet - December 31, 1999 (Unaudited) 1
Statements of Operations (Unaudited) - For the Three and Nine
Months Ended December 31, 1999 and 1998 2
Statement of Changes in Partners' Equity (Deficiency) (Unaudited) -
For the Nine Months Ended December 31, 1999 3
Statements of Cash Flows (Unaudited) - For the Nine
Months Ended December 31, 1999 and 1998 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 8
SIGNATURE 9
</TABLE>
<PAGE>
BOSTON FINANCIAL TAX CREDIT FUND VIII
(A Limited Partnership)
BALANCE SHEET
December 31, 1999
(Unaudited)
<TABLE>
<CAPTION>
Assets
<S> <C>
Cash and cash equivalents $ 297,587
Investments in Local Limited Partnerships (Note 1) 21,515,686
Marketable securities, at fair value 1,354,928
Other assets 13,430
-------------
Total Assets $ 23,181,631
=============
Liabilities and Partners' Equity
Accounts payable to affiliates $ 400,898
Accrued expenses 39,659
-------------
Total Liabilities 440,557
General, Initial and Investor Limited Partners' Equity 22,761,811
Net unrealized losses on marketable securities (20,737)
Total Partners' Equity 22,741,074
-------------
Total Liabilities and Partners' Equity $ 23,181,631
=============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BOSTON FINANCIAL TAX CREDIT FUND VIII
(A Limited Partnership)
STATEMENTS OF OPERATIONS
For the Three and Nine Months Ended December 31, 1999 and 1998
(Unaudited)
Three Months Ended Nine Months Ended
December 31, December 31, December 31, December 31,
1999 1998 1999 1998
------------- ------------- -------------- ---------------
Revenue:
<S> <C> <C> <C> <C>
Investment $ 23,506 $ 25,890 $ 67,779 $ 74,207
Other 50 6,115 1,200 7,565
------------- ------------- -------------- ---------------
Total Revenue 23,556 32,005 68,979 81,772
------------- ------------- -------------- ---------------
Expenses:
Asset management fees,
related party 51,555 50,765 154,665 152,295
General and administrative
expenses (includes
reimbursements to affiliates
in the amounts of $57,340
and $55,836 in 1999 and
1998, respectively) 38,800 39,111 105,844 96,988
Amortization 7,486 9,986 22,457 29,958
------------- ------------- -------------- ---------------
Total Expenses 97,841 99,862 282,966 279,241
------------- ------------- -------------- ---------------
Loss before equity in losses
of Local Limited Partnerships (74,285) (67,857) (213,987) (197,469)
Equity in losses of Local
Limited Partnerships (Note 1) (466,111) (440,055) (1,515,738) (1,370,394)
------------- ------------- -------------- ---------------
Net Loss $ (540,396) $ (507,912) $ (1,729,725) $ (1,567,863)
============= ============= ============== ===============
Net Loss allocated:
To General Partners $ (5,404) $ (5,079) $ (17,297) $ (15,679)
To Limited Partners (534,992) (502,833) (1,712,428) (1,552,184)
------------- ------------- -------------- ---------------
$ (540,396) $ (507,912) $ (1,729,725) $ (1,567,863)
============= ============= ============== ===============
Net Loss per Limited
Partnership Unit (36,497 Units) $ (14.66) $ (13.78) $ (46.92) $ (42.53)
============= ============= ============== ===============
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 Nine Months Ended December 31, 1999
(Unaudited)
<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, 1999 $ (71,432) $ 100 $ 24,562,868 $ 1,053 $ 24,492,589
------------- ----------- ------------- ---------- -------------
Comprehensive Loss:
Net change in net unrealized
gains on marketable securities
available for sale - - - (21,790) (21,790)
Net Loss (17,297) - (1,712,428) - (1,729,725)
------------- ----------- ------------- ---------- -------------
Comprehensive Loss (17,297) - (1,712,428) (21,790) (1,751,515)
------------- ----------- ------------- ---------- -------------
Balance at
December 31, 1999 $ (88,729) $ 100 $ 22,850,440 $ (20,737) $ 22,741,074
============= =========== ============= ========== ============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
BOSTON FINANCIAL TAX CREDIT FUND VIII
(A Limited Partnership)
STATEMENTS OF CASH FLOWS
For the Nine Months Ended December 31, 1999 and 1998
(Unaudited)
1999 1998
------------- -------------
<S> <C> <C>
Net cash used for operating activities $ (142,923) $ (23,210)
------------- -------------
Net cash provided by investing activities 260,480 22,782
------------- -------------
Net increase (decrease) in cash and cash equivalents 117,557 (428)
Cash and cash equivalents, beginning of period 180,030 213,966
------------- -------------
Cash and cash equivalents, end of period $ 297,587 $ 213,538
============= =============
</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 Fund's Form 10-K for the year
ended March 31, 1999. 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, 1999 and 1998.
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 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, in which the Fund's 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.
<TABLE>
<CAPTION>
The following is a summary of Investments in Local Limited Partnerships at
December 31, 1999:
<S> <C>
Capital Contributions paid to Local Limited
Partnerships $ 29,264,859
Cumulative equity in losses of Local Limited Partnerships (8,310,517)
Cumulative cash distributions received from Local
Limited Partnerships (353,320)
Investment in Local Limited Partnerships before adjustment 20,601,022
Excess of investment cost over the underlying net assets acquired:
Acquisition fees and expenses 1,048,010
Accumulated amortization of acquisition fees and expenses (133,346)
-------------
Investments in Local Limited Partnerships $ 21,515,686
=============
</TABLE>
The Fund's share of net losses of the Local Limited Partnerships for the
nine months ended December 31, 1999 totaled $1,515,738.
<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
As of December 31, 1999, the Fund had cash and cash equivalents of $297,587 as
compared to $180,030 at March 31, 1999. This increase is primarily attributable
to proceeds from sales and maturities of marketable securities in excess of
purchases of marketable securities and cash distributions received from Local
Limited Partnerships. These increases are partially offset by cash used for
operations.
As of December 31, 1999, approximately $1,212,000 of marketable securities has
been designated as Reserves, as defined in the Partnership Agreement. 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, 1999, the Fund had no contractual or other
obligation to any Local Limited Partnership, which had not been paid or provided
for.
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, 1999. It is
expected that cash available for distribution, if any, will not be significant
in fiscal year 2000. 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 nine months ended December 31, 1999, the Fund's operations resulted in a
net loss of $1,729,725, as compared to a net loss of $1,567,863 for the same
period in 1998. The increase in net loss is primarily attributable to an
increase in equity in losses of the Local Limited Partnerships due to 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
Property Discussions
Live Oaks Plantation, located in West Palm Beach, Florida, is experiencing
operating deficits due primarily to occupancy fluctuations. The fluctuations in
occupancy are primarily due to the majority of first-year leases expiring and
management's decision not to renew all the leases due to tenant collection
problems. Further compounding the problem is competition from new affordable
housing complexes in the area. Accordingly, the Managing General Partner
continues to work closely with the Local General Partner and management agent to
monitor operations.
<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, 1999.
<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, 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>
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-2000
<PERIOD-END> DEC-31-1999
<CASH> 297,587
<SECURITIES> 1,354,928
<RECEIVABLES> 000
<ALLOWANCES> 000
<INVENTORY> 000
<CURRENT-ASSETS> 000
<PP&E> 000
<DEPRECIATION> 000
<TOTAL-ASSETS> 23,181,631<F1>
<CURRENT-LIABILITIES> 000
<BONDS> 000
000
000
<COMMON> 000
<OTHER-SE> 22,741,074
<TOTAL-LIABILITY-AND-EQUITY> 23,181,631<F2>
<SALES> 000
<TOTAL-REVENUES> 68,979<F3>
<CGS> 000
<TOTAL-COSTS> 000
<OTHER-EXPENSES> 282,966<F4>
<LOSS-PROVISION> 000
<INTEREST-EXPENSE> 000
<INCOME-PRETAX> 000
<INCOME-TAX> 000
<INCOME-CONTINUING> 000
<DISCONTINUED> 000
<EXTRAORDINARY> 000
<CHANGES> 000
<NET-INCOME> (1,729,725)<F5>
<EPS-BASIC> (46.92)
<EPS-DILUTED> 000
<FN>
<F1>Total assets include Investments in Local Limited Partnerships of
$21,515,686 and Other assets of $13,430. <F2>Total liability and equity includes
Accounts payable to affiliates of $400,898 and Accrued expenses of $39,659
<F3>Total revenue includes Investment of $67,779 and Other of $1,200. <F4>Other
Expenses include Asset Management fees, related party of $154,665, General and
administrative of $105,844 and Amortization of $22,457. <F5>Net loss includes
Equity in losses of Local Limited Partnerships of $1,515,738.
</FN>
</TABLE>
