Y
MAY 1, 1997
SUPPLEMENT NO. 6 TO PROSPECTUS FOR
BOSTON CAPITAL TAX CREDIT FUND IV L.P.
DATED
MAY 1, 1996
(SUPPLEMENT OFFERING BCTC IV SERIES 29 AND
IDENTIFYING CERTAIN ANTICIPATED INVESTMENTS
- --------------------------------------------------------------------------------
This Supplement is part of, and should be read in conjunction with, the
Prospectus of the Fund. Capitalized terms used herein but not defined have the
meanings ascribed to them in the Prospectus. This Supplement No. 6 supersedes
all previous supplements to the Prospectus.
Status of BCTC IV Series 28
The Fund received orders for a total of 4,000,000 BACs ($39,999,000) with
respect to Series 28, and issued the last of such Series 28 BACs on January 31,
1997. The aggregate fees paid as of January 31, 1997 to the General Partner and
Affiliates with respect to Series 28 were $4,719,882. No additional BACs will be
offered with respect to Series 28. The Fund has issued a total of 27,313,852
BACs, raised $273,114,000 and admitted 16,590 Investors with respect to Series
20 through 28. (See "Prior Performance of the General Partner and its
Affiliates" in the Prospectus.)
Offering of BCTC IV Series 29
The Fund is offering, effective February 10, 1997, the tenth series of BACs
("Series 29") consisting of 4,000,000 BACs, with a minimum required investment
of five hundred BACs at $10 per BAC ($5,000) per Investor, on the terms and
conditions as are set forth in the Prospectus. The offering of BACs in Series 29
will not exceed 12 months.
THE PURCHASE OF BACS IN SERIES 29 WILL NOT ENTITLE THE INVESTOR TO ANY
INTEREST IN ANY OTHER SERIES OF THE FUND NOR ANY INTEREST IN BOSTON CAPITAL TAX
CREDIT FUND LIMITED PARTNERSHIP, OR BOSTON CAPITAL TAX CREDIT FUND II LIMITED
PARTNERSHIP, OR BOSTON CAPITAL TAX CREDIT FUND III L.P.
The Fund anticipates acquiring, on behalf of Series 29, limited partnership
interests in the twenty-three (23) Operating Partnerships more fully described
hereinafter (the "Operating Partnerships") pursuant to the provisions of
"Investment Objectives and Acquisition Policies," as set forth in the
Prospectus. The Operating General Partners (or affiliates thereof) with respect
to certain of the Operating Partnerships described below are general partners of
other operating partnerships which have been invested in by the Fund on behalf
of other series and/or other partnerships affiliated with the General Partner.
(See "Conflicts of Interest" in the Prospectus). A significant portion of the
funds invested by the Fund in each Operating Partnership will be used to pay
fees and expenses to the Operating General Partners. (See the table entitled
"Terms of Investment in Operating Partnerships" in this Supplement.)
The following disclosure changes the tax credit investment objective from
the annual $1.20 to $1.40 per BAC which appears in the Prospectus and supersedes
any contrary disclosure in the Prospectus.
The Fund will endeavor to invest in Operating Partnerships with a goal of
generating tax credits for allocation to Investors, upon completion and
occupancy of all Apartment Complexes, averaging approximately $1.10 to $1.30 per
BAC annually in Series 29, which would be the equivalent of an approximate
11%-13% annual Tax Credit as a percentage of capital invested, for the ten year
credit period applicable to each Apartment Complex in which Series 29 invests.
(See "Investment Objectives and Acquisition Policies" in the Prospectus.) This
assumes: (a) the applicability of current tax laws and regulations and current
interpretations of such laws and regulations by the courts; (b) each of such
Apartment Complexes is occupied with qualifying individuals throughout the
15-year Federal Housing Tax Credit compliance period; and (c) BAC Holders are
unable to use any passive tax losses generated by the Fund. These investment
objectives do not represent yield or return on investment.
<PAGE>
Assuming: none of the Apartment Complexes invested in by a Series has any
value at the end of the 15-year Federal Housing Tax Credit compliance period
applicable to the investments of a Series and at such time if an Investor uses
the suspended passive losses equal to the unreturned Capital Contribution, the
equivalent tax-free internal rate of return would be approximately 5.2%-7.1% for
Investors with taxable income which is taxed at that time in the 15%-39.6% tax
brackets, respectively. (See "Federal Income Tax Matters--Passive Loss and Tax
Credit Limitations" for a discussion of offsetting an Investor's loss of Capital
Contribution against active income.) If the Apartment Complexes appreciate in
value, such increased value can be recognized through sales of Operating
Partnership Interests or the sale or refinancing of Apartment Complexes (even
though the restrictions and compliance requirements of the Federal Housing Tax
Credit program will continue to apply to such Apartment Complexes at that time),
and Investors receive distributions from such sales, the equivalent tax-free
internal rate of return will be greater.
The selection of an 11%-13% annual Tax Credit as a percentage of capital
invested, as an investment objective, has been made by the Fund after consulting
with the Dealer-Manager regarding tax-free returns currently available to
investors in other similar tax credit investments. Pursuant to the rules for the
allocation of Federal Housing Tax Credits, the Fund's investment goal is for the
following annual tax-free amounts (for each $10,000 investment in Series 29):
$300-$400 in 1997; $600-$800 in 1998; $1,100-$1,300 in 1999-2006; $800-$1,100 in
2007; and $200-$400 in 2008. This statement of Tax Credit investment goal does
not represent a forecast of anticipated Tax Credits to be obtained nor does it
represent a yield or return on investment. Rather it represents an investment
goal of the Fund under the rules for allocation of Tax Credits for the credit
period applicable to the Fund's anticipated Series 29 investments. As there is
no assurance that the value of the Fund's assets will equal such amount or that
such distributions will be made, there is no assurance that any particular
tax-free internal rate of return will be achieved. (See "Tax Credit
Programs--The Federal Housing Tax Credit," commencing at page 64 of the
Prospectus, for a discussion of the allocation of Federal Housing Tax Credits
during the applicable credit period.)
The Fund's investment in Operating Partnerships on behalf of Series 29 will
be consistent with the provisions of the Prospectus relating to the investment
in Operating Partnerships. (See, particularly, "Investment Objectives and
Acquisition Policies," "Investment in Operating Partnerships," and "Sharing
Arrangements: Profits, Credits, Losses, Net Cash Flow and Residuals.")
THE POTENTIAL OPERATING PARTNERSHIP INTERESTS IDENTIFIED BELOW RELATE ONLY
TO BCTC IV--SERIES 29.
While the General Partner believes that the Fund, on behalf of Series 29,
is reasonably likely to acquire interests in the Operating Partnerships which
are developing or will develop, as applicable, the Apartment Complexes described
hereinafter, the Fund may not be able to do so as a result of additional
information or changes in circumstances. Before any such acquisition is made,
the General Partner will continue and complete its due diligence review as to
the applicable Operating Partnership and the related Apartment Complex. This
process will include the review and analysis of information concerning, among
other matters, market competition and environmental factors; if any significant
adverse information is obtained by the General Partner, either action will be
taken to mitigate the adverse factor(s), or the acquisition will not be made. If
such interests are acquired, the terms may differ materially from those
described below. Accordingly, Investors should not rely on the ability of the
Fund to invest in these Apartment Complexes or under the described investment
terms in deciding whether to invest in the Fund. The anticipated acquisition of
the Operating Partnership Interests described hereinafter represents
approximately 76% of the total equity which the Fund currently expects to invest
in Operating Partnerships on behalf of Series 29.
S-2
<PAGE>
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Since Series 29 is currently in the offering phase it has no material
assets nor any operating history. The twenty-three (23) Operating Partnerships
in which Interests are currently expected to be acquired, and the respective
Operating General Partners, are as follows:
<TABLE>
<CAPTION>
Partnership General Partner(s)
- -------------------------------------------- -------------------------------
<S> <C> <C>
1. Arbor Park L.P. J. H. Thames, Jr.
(the "Arbor Park Partnership")
2. Barlee II L.P. ERC Properties, Inc.
(the "Barlee II Partnership")
3. Barrington Cove Partnership Gatehouse Group, Inc.
(the "Barrington Cove Partnership")
4. Bent Tree Apartments L.P. William S. Swan
(the "Bent Tree Partnership")
5. Collins L.P. Intervest Corporation
(the "Collins Partnership")
6. Crystal Lake L.P. Community Economic
(the "Crystal Lake Partnership") Redevelopment Corporation
7. Dogwood L.P. Humphrey-Stavrou & Associates
(the "Dogwood Partnership")
8. Emerald Trace L.P. Joyce Middleton
(the "Emerald Trace Partnership")
9. Forest Hill L.P. First Centrum Corporation
(the "Forest Hill Partnership")
10. Glenbrook Apartments L.P. William S. Swan
(the "Glenbrook Partnership")
11. Lake Hickory L.P. Intervest Corporation
(the "Lake Hickory Partnership")
12. Lincoln Hotel L.P. Barone, Galasso & Associates
(the "Lincoln Hotel Partnership")
13. Lutkin Bayou L.P. Intervest Corporation
(the "Lutkin Bayou Partnership")
14. Newton L.P. Intervest Corporation
(the "Newton Partnership")
15. Northway Drive L.P. Elaina D. Glockzin
(the "Northway Partnership")
16. Ozark L.P. Intervest Corporation
(the "Ozark Partnership")
17. Palmetto Place L.P. M. Riemer Calhoun, Jr.
(the "Palmetto Place Partnership")
</TABLE>
S-3
<PAGE>
<TABLE>
<CAPTION>
Partnership General Partner(s)
- ------------------------------------------ ------------------------
<S> <C> <C>
18. Pecan Hill Apartments L.P. William S. Swan
(the "Pecan Hill Partnership")
19. Poplarville Housing L.P. Intervest Corporation
(the "Poplarville Partnership")
20. Quail Run Apartments L.P. William S. Swan
(the "Quail Run Partnership")
21. Rhome Apartments L.P. William S. Swan
(the "Rhome Partnership")
22. Westfield Apartments L.P. M. Riemer Calhoun, Jr.
(the "Westfield Partnership")
23. Willow Point III L.P. J. H. Thames, Jr.
(the "Willow Point Partnership")
</TABLE>
Permanent Mortgage Loan financing for the Apartment Complexes described
herein is being or will be provided from a variety of sources, as described
below. It is anticipated that all of the dwelling units in the Apartment
Complexes identified herein will be eligible for Federal Housing Tax Credits.
The Apartment Complexes described in this Supplement are anticipated to complete
construction or rehabilitation, as applicable, during 1997 and 1998. Certain of
the Apartment Complexes, as described below, have not yet begun construction.
Delays in construction could occur with respect to Apartment Complexes currently
under construction or as to which construction has not yet commenced, which
could result in delay or reduction in achieving Tax Credits. (See "Risk
Factors--Tax Risks Associated with the Fund's Investments" in the Prospectus.)
The General Partner believes that each of the Apartment Complexes has or will
have adequate property insurance. The tables included in this Supplement
describe in greater detail information concerning the Apartment Complexes and
the anticipated terms of investment in each Operating Partnership.
The Priority Return Base for Series 29 is $1.20 per BAC (12%). (See
"Glossary" at page 163 of the Prospectus for the definition of the term
"Priority Return Base.") Investors should note that the "Priority Return Base"
is the level of return that must be provided to Investors before the General
Partner may receive a 5% share in the proceeds from the sale or refinancing of
Apartment Complexes or Operating Partnership Interests. (See "Liquidation Phase"
at page 49 of the Prospectus.) In establishing the Priority Return Base, the
General Partner is not representing that the Fund is expected to provide this
level of return to Investors. The General Partner will receive fees and
compensation for services prior to BAC Holders receiving the Priority Return.
S-4
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
<TABLE>
<CAPTION>
Basic Government
Location of Number Monthly(1) Assistance
Partnership Name Property of Units Rents Anticipated
------------------- --------------- ----------- ------------- ------------------
<S> <C> <C> <C> <C> <C>
1. Arbor Park Jackson, 160 $371 1BR Tax Exempt
Partnership Mississippi $437 2BR Bond
$494 3BR Financing
issued
through the
City of
Jackson,
Mississippi
(4)
2. Barlee II Van Buren, 20 $465 3BR Federal Housing
Partnership Arkansas $485 4BR Tax Credits
3. Barrington Cove Barrington, 60 $489 1BR Apartment
Partnership Rhode Island $584 2BR Capital
Investment
Program(a)
HOME Investment
Partnerships
Program(b)
(6)
4. Bent Tree Jacksboro, 18 $228 1BR FmHA Sec. 515
Partnership Texas with 100%
rental
assistance
5. Collins Collins, 36 $217 1BR FmHA Sec. 515
Partnership Mississippi with 100%
rental
assistance
6. Crystal Lake Urbana, 108 $350- Federal Housing
Partnership Illinos $465 2BR Tax Credits
410-
$480 2BR
7. Dogwood Appomattox, 48 $260 1BR FmHA Sec. 515
Partnership Virginia $290 2BR with 100%
$300 3BR rental
assistance
<CAPTION>
Permanent Mortgage Annual Annual
Mortgage Interest Reserve Management
Loan Rate Amount Management Agent Fee
---------------- ----------- ---------- ----------------------- ------------------
<S> <C> <C> <C> <C> <C>
1. Compass Bank, 7% $32,000 Park Development 5% of net rental
N.A. income
$5,700,000
(4)
2. First 9% $4,000 ERC Properties 6% of net rental
National Inc. income
Bank
$618,000(5)
3. Rhode Island 8% $12,000 Gatehouse 5% of net rental
Housing and Management, Inc. income
Mortgage
Finance
Corporation
$1,435,190(a) 0%
Rhode Island
Housing and
Mortgage
Finance
Corporation
$768,760(b)
(6)
4. $618,390 1% (2) $5,400 Swan Management $22 per occupied
unit per month
5. $981,456 1% (2) $9,900 Intervest Management $21 per occupied
unit per month
6. Indiana 9% $21,600 Bryson 6% of net rental
Federal Bank Management income
$2,157,000 Company
(7)
7. $1,524,476 1% (2) $13,200 Humphrey Management $18 per occupied
unit per month
</TABLE>
S-5
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
<TABLE>
<CAPTION>
Basic Government
Location of Number Monthly(1) Assistance
Partnership Name Property of Units Rents Anticipated
------------------- ---------------- ----------- ------------- ------------------
<S> <C> <C> <C> <C> <C>
8. Emerald Trace Ruston, 48 $244- HOME
Partnership Louisiana $304 1BR Investment
$285- Partnerships
$358 2BR Program(b)
$396 3BR (8)
9. Forest Hill Richmond, 85 $435- Federal
Partnership Virginia $528 1BR Housing Tax
$529- Credits
$640 2BR
10. Glenbrook Saint Joseph, 18 $219 1BR FmHA Sec. 515
Partnership Texas with 100%
rental
assistance
11. Lake Hickory Lake 24 $228 2BR FmHA Sec. 515
Partnership Hickory, with 100%
Mississippi rental
assistance
12. Lincoln Hotel San Diego, 41 $200 0BR Disposition
Partnership California Development
Loan Program(b)
(10)
13. Lutkin Bayou Drew, 32 $234 1BR FmHA Sec. 515
Partnership Mississippi with 100%
rental
assistance
<CAPTION>
Permanent Mortgage Annual Annual
Mortgage Interest Reserve Management
Loan Rate Amount Management Agent Fee
---------------- ----------- ---------- ----------------------- ------------------
<S> <C> <C> <C> <C> <C>
8. Premier 9.5% $9,600 Middleton 6% of net rental
Bank, N.A. Management, income
$744,800(a) Inc.
Louisiana 4%
Housing
Finance
Agency
$420,000(b)
(8)
9. Midland 9% $14,875 Elder Homes 5% of net rental
Affordable Corporation income
Housing
Group Trust
$2,755,000
(9)
10. $547,650 1% (2) $5,400 Swan Management $22 per occupied
unit per month
11. $838,642 1% (2) $6,600 Intervest Management $21 per occupied
unit per month
12. Savings 9.5% $5,000 Barone, Gelasso & 5% of net rental
Associations Associates income
Mortgage
Company
$205,000(a)
San Diego 3%
Redevelopment
Agency
$558,000(b)
(10)
13. $644,652 1% (2) $8,800 Intervest Management $21 per occupied
unit per month
</TABLE>
S-6
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
<TABLE>
<CAPTION>
Basic Government
Location of Number Monthly(1) Assistance
Partnership Name Property of Units Rents Anticipated
------------------- --------------- ----------- ------------- ----------------
<S> <C> <C> <C> <C> <C>
14. Newton Newton, 32 $219 1BR FmHA Sec. 515
Partnership Mississippi with 100%
rental
assistance
15. Northway Nacogdoches, 70 $265- Federal HOME
Partnership Texas $328 1BR Funds
$313- Program(b)
$389 2BR (10)
$350-
$437 3BR
16. Ozark Poplarville, 16 $224 1BR FmHA Sec. 515
Partnership Mississippi with 100%
rental
assistance
17. Palmetto Benton, 40 $243- HOME
Place Louisiana $300 2BR Investment
Partnership $345 3BR Partnerships
Program(b)
(11)
18. Pecan Hill Bryson, 16 $212 1BR FmHA Sec. 515
Partnership Texas with 100%
rental
assistance
19. Poplarville Poplarville, 16 $228 1BR FmHA Sec. 515
Partnership Mississippi with 100%
rental
assistance
20. Quail Run Iowa Park, 16 $223 1BR FmHA Sec. 515
Partnership Texas with 100%
rental
assistance
<CAPTION>
Permanent Mortgage Annual Annual
Mortgage Interest Reserve Management
Loan Rate Amount Management Agent Fee
---------------- ----------- ---------- ----------------------- ------------------
<S> <C> <C> <C> <C> <C>
14. $934,135 1% (2) $8,800 Intervest Management $21 per occupied
unit per month
15. First 9% $10,500 Summit Management 6% of net rental
National Corporation income
Bank
$1,262,000(a)
Texas 3%
Department of
Housing and
Community
Affairs
$391,000(b)
(11)
16. $384,448 1% (2) $4,400 Intervest Management $21 per occupied
unit per month
17. Premier 8% $8,000 TF Management, Inc. 5% of net rental
Bank, N.A. income
$350,000(a)
Louisiana 4%
Housing
Finance
Agency
$380,000(b)
(12)
18. $395,120 1% (2) $4,800 Swan Management $22 per occupied
unit per month
19. $410,574 1% (2) $4,400 Intervest Management $21 per occupied
unit per month
20. $362,793 1% (2) $4,800 Swan Management $22 per occupied
unit per month
</TABLE>
S-7
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
<TABLE>
<CAPTION>
Basic Government
Location of Number Monthly(1) Assistance
Partnership Name Property of Units Rents Anticipated
------------------- -------------- ----------- ------------- ----------------
<S> <C> <C> <C> <C> <C>
21. Rhome Rhome, 18 $228 1BR FmHA Sec. 515
Partnership Texas with 100%
rental
assistance
22. Westfield Welsh, 40 $256 2BR HOME
Partnership Louisiana $340 3BR Investment
Partnerships
Program(b)
(13)
23. Willow Point Jackson, 120 $371 1BR Tax Exempt
Partnership Mississippi $437 2BR Bond
$494 3BR Financing
issued
through the
City of
Jackson,
Mississippi
(14)
<CAPTION>
Permanent Mortgage Annual Annual
Mortgage Interest Reserve Management
Loan Rate Amount Management Agent Fee
---------------- ----------- ---------- ---------------------- ------------------
<S> <C> <C> <C> <C> <C>
21. $531,300 1% (2) $5,400 Swan Management $22 per occupied
unit per month
22. Premier 8% $8,000 TF Management, Inc. 5% of net rental
Bank, N.A. income
$330,000(a)
Louisiana 4%
Housing
Finance
Agency
$350,000(b)
(13)
23. Compass Bank, 7% $24,000 Park Development 5% of net rental
N.A. income
$4,300,000
(14)
</TABLE>
(1) Exclusive of utilities, unless indicated otherwise.
(2) FmHA 515 loan with a term of 50 years, a stated interest rate of between
7.5% and 9.5%; written down to an effective rate of 1% through an interest
credit subsidy, and payments of principal and interest on the basis of a 50
year amortization schedule.
(3) Except as and to the extent noted in the following footnote, the terms of
all permanent mortgage loans described in the following footnotes, which
have a term to maturity which is shorter than the term employed for the
amortization schedule, provide or are expected to provide that the entire
outstanding balance of principal of and interest on such permanent mortgage
loan shall be due and payable in full at the maturity of such mortgage
loan.
(4) The terms of the Arbor Park Partnership's anticipated permanent first
mortgage loan in the amount of $5,700,000 are expected to include a term of
5 years, an interest rate of 7% and payments of principal and interest on
the basis of a 30 year amortization schedule.
(5) The terms of the Barlee II Partnership's anticipated permanent first
mortgage loan in the amount of $618,000 are expected to include a term of
30 years, an interest rate of 9% and payments of principal and interest on
the basis of a 30 year amortization schedule.
(6) (a) The terms of the Barrington Cove Partnership's anticipated permanent
first mortgage loan in the amount of $1,435,190 are expected to include
a term of 30 years, an interest rate of 8% and payments of principal
and interest on the basis of a 30 year amortization schedule.
(b) The terms of the Barrington Cove Partnership's anticipated permanent
second mortgage loan in the amount of $768,760 are expected to include
a term of 30 years, an interest rate of 0% and payments in the amount
of 50% of cash flow available after payment of the first permanent
mortgage loan which will be applied toward principal repayment.
(7) The terms of the Crystal Lake Partnership's anticipated permanent first
mortgage loan in the amount of $2,157,000 are expected to include a term of
35 years, an interest rate of 9% and payments of principal and interest on
the basis of a 35 year amortization schedule.
(8) (a) The terms of the Emerald Trace Partnership's anticipated permanent
first mortgage loan in the amount of $744,800 are expected to include a
term of 40 years, an interest rate of 9.5% and payments of principal
and interest on the basis of a 40 year amortization schedule.
(b) The terms of the Emerald Trace Partnership's anticipated permanent
second mortgage loan in the amount of $420,000 are expected to include
a term of 20 years, an interest rate of 4% and payments of principal
and interest on the basis of a 20 year amortization schedule,
provided, however, that the terms of the permanent second mortgage
loan will provide for the deferral and accrual of payments of
principal and interest based on available cash flow, and for the
payment of the entire outstanding balance of principal and interest at
the end of the 20-year term.
S-8
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
(9) The terms of the Forest Hill Partnership's anticipated permanent first
mortgage loan in the amount of $2,755,000 are expected to include a term of
30 years, an interest rate of 9% and payments of principal and interest on
the basis of a 30 year amortization schedule.
(10) (a) The terms of the Lincoln Hotel Partnership's anticipated permanent
first mortgage loan in the amount of $205,000 are expected to include a
term of 30 years, an interest rate of 9.5%, which will adjust every 10
years with a maximum adjustment of 4%, and payments of principal and
interest on the basis of a 30 year amortization schedule to that amount
which is the yield on the 30 year U.S. Treasury bond plus 3%.
(b) The terms of the Lincoln Hotel Partnership's anticipated permanent
second mortgage loan in the amount of $558,000 are expected to include
a term of 30 years, an interest rate of 3% and payments of principal
and interest on the basis of a 30 year amortization schedule,
provided, however, that the terms of the permanent second mortgage
loan will provide for the deferral and accrual of payments of
principal and interest based on available cash flow, and for the
payment of the entire outstanding balance of principal and interest at
the end of the 30-year term.
(11) (a) The terms of the Northway Partnership's anticipated permanent first
mortgage loan in the amount of $1,262,000 are expected to include a
term of 15 years, an interest rate of 9% and payments of principal and
interest on the basis of a 30 year amortization schedule.
(b) The terms of the Northway Partnership's anticipated permanent second
mortgage loan in the amount of $391,000 are expected to include a term
of 30 years, an interest rate of 3% and payments of principal and
interest on the basis of a 30 year amortization schedule, provided,
however, that the terms of the permanent second mortgage loan will
provide for the deferral and accrual of payments of principal and
interest based on available cash flow, and for the payment of the
entire outstanding balance of principal and interest at the end of the
30-year term.
(12) (a) The terms of the Palmetto Place Partnership's anticipated permanent
first mortgage loan in the amount of $350,000 are expected to include a
term of 30 years, an interest rate of 8% and payments of principal and
interest on the basis of a 30 year amortization schedule.
(b) The terms of the Palmetto Place Partnership's anticipated permanent
second mortgage loan in the amount of $380,000 are expected to include
a term of 30 years, an interest rate of 4% and payments of principal
and interest on the basis of a 30 year amortization schedule,
provided, however, that the terms of the permanent second mortgage
loan will provide for the deferral and accrual of payments of
principal and interest based on available cash flow, and for the
payment of the entire outstanding balance of principal and interest at
the end of the 30-year term.
(13) (a) The terms of the Westfield Partnership's anticipated permanent first
mortgage loan in the amount of $330,000 are expected to include a term
of 30 years, an interest rate of 8% and payments of principal and
interest on the basis of a 30 year amortization schedule.
(b) The terms of the Westfield Partnership's anticipated permanent second
mortgage loan in the amount of $350,000 are expected to include a term
of 30 years, an interest rate of 4% and payments of principal and
interest on the basis of a 30 year amortization schedule, provided,
however, that the terms of the permanent second mortgage loan will
provide for the deferral and accrual of payments of principal and
interest based on available cash flow, and for the payment of the
entire outstanding balance of principal and interest at the end of the
30-year term.
(14) The terms of the Willow Point Partnership's anticipated permanent first
mortgage loan in the amount of $4,300,000 are expected to include a term of
5 years, an interest rate of 7% and payments of principal and interest on
the basis of a 30 year amortization schedule.
S-9
<PAGE>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS
<TABLE>
<CAPTION>
Ownership
Interest (%)
Profits,
Losses, Operating
BCTC IV Credit/Net General Operating
Partnership Capital Cash Partner Deficit
Name Contribution Flow/Backend Contribution Guarantee
------------------ --------------- --------------- --------------- -------------
<S> <C> <C> <C> <C> <C>
1. Arbor Park $2,792,272 99/50/50 $100 Unlimited
Partnership in time
and amount
2. Barlee II $684,993 99/50/50 $6,813 Unlimited
Partnership in amount
for 5 years
3. Barrington Cove $4,014,130 99/50/50 $550,000 Unlimited
Partnership in amount
for 5 years
4. Bent Tree $157,010 99/50/50 $11,432 Unlimited
Partnership in amount
for 15 years
5. Collins $282,025 99/50/50 $17,812 Unlimited
Partnership in amount
for 10 years
6. Crystal Lake $1,501,820 100/20/20 $100 Unlimited
Partnership in time
and amount
7. Dogwood $409,116 99/50/50 $7,200 Unlimited
Partnership in amount
for 5 years
8. Emerald $1,040,920 99/35/35 $100 Unlimited
Trace in time
Partnership and amount
9. Forest Hill $2,644,987 99/25/25 $100 Unlimited
Partnership in amount
for 5 years
10. Glenbrook $142,553 99/50/50 $10,812 Unlimited
Partnership in amount
for 15 years
11. Lake Hickory $185,079 99/50/50 $17,065 Unlimited
Partnership in amount
for 10 years
12. Lincoln $1,419,315 99/30/30 $100 Unlimited
Hotel in time
Partnership and amount
<CAPTION>
Fund's
Approximate
Average Development Annual
Annual Fee/Other Partnership Asset
Operating Anticipated Distributions Management Management
Partnership's Federal to Operating Fee to Fee to Boston
Credit Base Credit GP Operating GP Capital
---------------- -------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
1. $11,549,865 $423,072 $1,000,000 $10,000 $10,000
2. $1,229,000 $105,384 $200,000 $2,000 $2,000
3. $7,242,876 $583,092 $519,970 $10,000 $10,000
4. $682,222 $24,922 $88,746 $500 $500
5. $1,286,694 $47,004 $207,439 $500 $500
6. $2,752,738 $240,792 $501,000 $5,000 $5,000
7. $1,806,314 $65,986 $82,840 $750 $750
8. $2,066,498 $173,487 $290,000 $4,800 $3,000
9. $4,989,178 $419,839 $831,530 $10,000 $7,000
10. $619,404 $22,627 $83,474 $500 $500
11. $844,390 $30,846 $143,612 $500 $500
12. $1,416,922 $236,553 $130,000 $3,000 $3,000
</TABLE>
S-10
<PAGE>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS--(Continued)
<TABLE>
<CAPTION>
Ownership
Interest (%)
Profits,
Losses, Operating
BCTC IV Credit/Net General Operating
Partnership Capital Cash Partner Deficit
Name Contribution Flow/Backend Contribution Guarantee
--------------- --------------- --------------- --------------- ------------
<S> <C> <C> <C> <C> <C>
13. Lutkin Bayou $174,583 99/50/50 $13,548 Unlimited
Partnership in amount
for 10
years
14. Newton $229,136 99/50/50 $18,569 Unlimited
Partnership in amount
for 10
years
15. Northway $2,900,205 99/50/50 $100 Unlimited
Partnership in time
and amount
16. Ozark $93,888 99/50/50 $8,624 Unlimited
Partnership in amount
for 10
years
17. Palmetto $967,750 99/50/50 $100 Unlimited
Place in time
Partnership and amount
18. Pecan Hill $104,220 99/50/50 $9,212 Unlimited
Partnership in amount
for 15
years
19. Poplarville $78,628 99/50/50 $6,218 Unlimited
Partnership in amount
for 10
years
20. Quail Run $95,364 99/50/50 $8,743 Unlimited
Partnership in amount
for 15
years
21. Rhome $143,289 99/50/50 $11,364 Unlimited
Partnership in amount
for 15
years
22. Westfield $905,669 99/50/50 $100 Unlimited
Partnership in time
and amount
23. Willow Point $2,105,735 99/50/50 $100 Unlimited
Partnership in time
and amount
<CAPTION>
Fund's
Approximate
Average Development Annual
Annual Fee/Other Partnership Asset
Operating Anticipated Distributions Management Management
Partnership's Federal to Operating Fee to Fee to Boston
Credit Base Credit GP Operating GP Capital
---------------- -------------- ---------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
13. $796,504 $29,097 $132,596 $500 $500
14. $1,045,393 $38,189 $204,612 $500 $500
15. $5,524,000 $467,775 $554,000 $7,000 $7,000
16. $428,347 $15,648 $58,412 $500 $500
17. $1,863,372 $158,648 $160,000 $4,000 $4,000
18. $452,846 $16,543 $58,909 $500 $500
19. $358,726 $13,105 $42,135 $500 $500
20. $414,363 $15,137 $53,901 $500 $500
21. $622,602 $22,744 $80,988 $500 $500
22. $1,743,837 $148,470 $150,000 $4,000 $4,000
23. $8,710,094 $319,051 $675,000 $10,000 $10,000
</TABLE>
S-11
<PAGE>
THE ARBOR PARK PARTNERSHIP
(Arbor Park Apartments)
Arbor Park Apartments is a 160-unit apartment complex for families which
is to be constructed in Jackson, Mississippi. Arbor Park Apartments will consist
of 32 one-bedroom units, 80 two-bedroom units and 48 three-bedroom units
contained in 10 buildings. The complex will offer a pool, recreation room and
central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning, smoke detectors and a patio or porch.
Construction of Arbor Park Apartments began in March, 1997. The Operating
General Partner anticipates that construction completion and occupancy will
occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ----------------- ----------- -----------------
<S> <C> <C> <C>
40 January, 1998 8 February, 1998
40 February, 1998 8 March, 1998
40 March, 1998 8 April, 1998
40 April, 1998 16 May, 1998
16 June, 1998
16 July, 1998
16 August, 1998
16 September, 1998
16 October, 1998
20 November, 1998
20 December, 1998
</TABLE>
THE BARLEE II PARTNERSHIP
(Vinsett Place Apartments)
Vinsett Place Apartments is a 20-unit apartment complex for families
which is to be constructed in Van Buren, Arkansas. Vinsett Place Apartments will
consist of 18 three-bedroom units and 2 four-bedroom units contained in 20
buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning, smoke detectors, cable television hook-up and a
patio or porch.
Construction of Vinsett Place Apartments is anticipated to begin in
October, 1997. The Operating General Partner anticipates that construction
completion and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------- ----------- -----------------
<S> <C> <C> <C>
10 May, 1998 5 June, 1998
10 June, 1998 5 July, 1998
5 August, 1998
5 September, 1998
</TABLE>
THE BARRINGTON COVE PARTNERSHIP
(Barrington Cove Apartments)
Barrington Cove Apartments is an existing 60-unit apartment complex for
senior citizens which is being rehabilitated in Barrington, Rhode Island.
Barrington Cove Apartments will consist of 40 one-bedroom units and 20 two-
bedroom units contained in 1 building. The complex will offer a function room
and central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning and
smoke detectors.
Rehabilitation of Barrington Cove Apartments began in July, 1996. The
Operating General Partner anticipates that completion of rehabilitation and
occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------- ----------- -----------------
<S> <C> <C> <C>
36 July, 1997 10 August, 1997
10 September, 1997
10 October, 1997
10 November, 1997
10 December, 1997
10 January, 1998
</TABLE>
THE BENT TREE PARTNERSHIP
(Bent Tree Apartments)
Bent Tree Apartments is an existing 18-unit apartment complex for senior
citizens which is to be rehabilitated in Jacksboro, Texas. Bent Tree Apartments
will consist of 18 one-bedroom units contained in 4 buildings. The complex will
offer a community room and central laundry facilities.
Individual units will contain a refrigerator, range, smoke detectors and
a patio or porch.
Rehabilitation of Bent Tree Apartments is anticipated to begin in May,
1997. The Operating General Partner anticipates that completion of
rehabilitation and occupancy will occur as follows:
S-12
<PAGE>
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------- ----------- -----------------
<S> <C> <C> <C>
18 July, 1997 9 August, 1997
9 September, 1997
</TABLE>
THE COLLINS PARTNERSHIP
(Collins Apartments)
Collins Apartments is an existing 36-unit apartment complex for senior
citizens which is to be rehabilitated in Collins, Mississippi. Collins
Apartments will consist of 36 one-bedroom units contained in 4 buildings. The
complex will offer a meeting room and central laundry facilities.
Individual units will contain a refrigerator, range and smoke detectors.
Rehabilitation of Collins Apartments is anticipated to begin in May,
1997. The Operating General Partner anticipates that completion of
rehabilitation and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------- ----------- -----------------
<S> <C> <C> <C>
36 July, 1997 9 August, 1997
9 September, 1997
9 October, 1997
9 November, 1997
</TABLE>
THE DOGWOOD PARTNERSHIP
(Dogwood Apartments)
Dogwood Apartments is an existing 48-unit apartment complex for families
which is to be rehabilitated on Route 5 in Appomattox, Virginia. Dogwood
Apartments will consist of 8 one-bedroom units, 34 two-bedroom units and 6
three-bedroom units contained in 4 buildings. The complex will offer a function
room, playground and central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning,
smoke detectors, cable television hook-up and a balcony.
Rehabilitation of Dogwood Apartments is anticipated to begin in June,
1997. The Operating General Partner anticipates that completion of
rehabilitation and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- --------------- ----------- -----------------
<S> <C> <C> <C>
24 July, 1997 12 August, 1997
24 August, 1997 12 September, 1997
12 October, 1997
12 November, 1997
</TABLE>
THE CRYSTAL LAKE PARTNERSHIP
(Crystal Lake Apartments)
Crystal Lake Apartments is an existing 108-unit apartment complex for
families which is to be rehabilitated on Broadway in Urbana, Illinois. Crystal
Lake Apartments will consist of 18 one-bedroom units and 90 two-bedroom units
contained in 6 buildings. The complex will offer a pool and central laundry
facilities.
Individual units will contain a refrigerator, range, air conditioning,
smoke detectors, cable television hook-up and a patio or balcony.
Rehabilitation of Crystal Lake Apartments is anticipated to begin in
July, 1997. The Operating General Partner anticipates that completion of
rehabilitation and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- -------------- ----------- -----------------
<S> <C> <C> <C>
27 April, 1998 12 May, 1998
27 May, 1998 12 June, 1998
27 June, 1998 12 July, 1998
27 July, 1998 12 August, 1998
12 September, 1998
12 October, 1998
12 November, 1998
12 December, 1998
12 January, 1999
</TABLE>
THE EMERALD TRACE PARTNERSHIP
(Emerald Trace Apartments)
Emerald Trace Apartments is a 48-unit apartment complex for families
which is to be constructed in Ruston, Louisiana. Emerald Trace Apartments will
consist of 8 one-bedroom units, 32 two-bedroom units and 8 three-bedroom units
contained in 8 buildings. The complex will offer a meeting/reception area and
central laundry facilities.
Individual units will contain a refrigerator, range, bathroom exhaust
fan, air conditioning and smoke detectors.
S-13
<PAGE>
Construction of Emerald Trace Apartments is anticipated to begin in June,
1997. The Operating General Partner anticipates that construction completion and
occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------------ ----------- ----------------
<S> <C> <C> <C>
24 September, 1997 12 October, 1997
24 October, 1997 12 November, 1997
12 December, 1997
12 January, 1998
</TABLE>
THE FOREST HILL PARTNERSHIP
(Forest Hill Apartments)
Forest Hill Apartments is an 85-unit apartment complex for senior
citizens which is to be constructed on Forest Hill Avenue in Richmond, Virginia.
Forest Hill Apartments will consist of 69 one-bedroom units and 16 two-bedroom
units contained in 8 buildings. The complex will offer a function room, library
and central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning and
smoke detectors.
Construction of Forest Hill Apartments is anticipated to begin in
February, 1997. The Operating General Partner anticipates that construction
completion and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------------ ----------- -----------------
<S> <C> <C> <C>
17 September, 1997 10 September, 1997
17 October, 1997 10 October, 1997
17 November, 1997 14 November, 1997
17 December, 1997 14 December, 1997
17 January, 1998 18 January, 1998
19 February, 1998
</TABLE>
THE GLENBROOK PARTNERSHIP
(Glenbrook Apartments)
Glenbrook Apartments is an existing 18-unit apartment complex for senior
citizens which is to be rehabilitated on Sand Hill Avenue in Saint Joseph,
Texas. Glenbrook Apartments will consist of 18 one-bedroom units contained in 4
buildings. The complex will offer a community room and central laundry
facilities.
Individual units will contain a refrigerator, range, smoke detectors and
a patio or porch.
Rehabilitation of Glenbrook Apartments is anticipated to begin in May,
1997. The Operating General Partner anticipates that completion of
rehabilitation and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------- ----------- -----------------
<S> <C> <C> <C>
18 July, 1997 9 August, 1997
9 September, 1997
</TABLE>
THE LAKE HICKORY PARTNERSHIP
(Lake Hickory Apartments)
Lake Hickory Apartments is an existing 24-unit apartment complex for
senior citizens which is to be rehabilitated in Lake Hickory, Mississippi. Lake
Hickory Apartments will consist of 24 one-bedroom units contained in 4
buildings. The complex will offer a meeting room and central laundry facilities.
Individual units will contain a refrigerator, range and smoke detectors.
Rehabilitation of Lake Hickory Apartments is anticipated to begin in May,
1997. The Operating General Partner anticipates that completion of
rehabilitation and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------- ----------- -----------------
<S> <C> <C> <C>
24 July, 1997 6 August, 1997
6 September, 1997
6 October, 1997
6 November, 1997
</TABLE>
THE LINCOLN HOTEL PARTNERSHIP
(Lincoln Apartments)
Lincoln Apartments is an existing 41-unit apartment complex which is to
be rehabilitated on Fifth Avenue between Market and Island Streets in San Diego,
California. Lincoln Apartments will consist of 41 efficiency units contained in
1 building. The complex will offer a library, conference room, lounge and
central laundry facilities.
Individual units will contain a refrigerator, range, microwave, smoke
detectors and cable television hook-up.
Rehabilitation of Lincoln Apartments began in December, 1996. The
Operating General Partner
S-14
<PAGE>
anticipates that completion of rehabilitation and occupancy will occur as
follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- --------------- ----------- -----------------
<S> <C> <C> <C>
41 August, 1997 10 September, 1997
10 October, 1997
10 November, 1997
11 December, 1997
</TABLE>
THE LUTKIN BAYOU PARTNERSHIP
(Lutkin Bayou Apartments)
Lutkin Bayou Apartments is an existing 32-unit apartment complex for
senior citizens which is to be rehabilitated in Drew, Mississippi. Lutkin Bayou
Apartments will consist of 32 one-bedroom units contained in 4 buildings. The
complex will offer a meeting room and central laundry facilities.
Individual units will contain a refrigerator, range and smoke detectors.
Rehabilitation of Lutkin Bayou Apartments is anticipated to begin in May,
1997. The Operating General Partner anticipates that completion of
rehabilitation and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------- ----------- -----------------
<S> <C> <C> <C>
32 July, 1997 8 August, 1997
8 September, 1997
8 October, 1997
8 November, 1997
</TABLE>
THE NEWTON PARTNERSHIP
(Newton Apartments)
Newton Apartments is an existing 32-unit apartment complex for senior
citizens which is to be rehabilitated in Newton, Mississippi. Newton Apartments
will consist of 32 one-bedroom units contained in 4 buildings. The complex will
offer a meeting room and central laundry facilities.
Individual units will contain a refrigerator, range and smoke detectors.
Rehabilitation of Newton Apartments is anticipated to begin in May, 1997.
The Operating General Partner anticipates that completion of rehabilitation and
occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------- ----------- -----------------
<S> <C> <C> <C>
32 July, 1997 8 August, 1997
8 September, 1997
8 October, 1997
8 November, 1997
</TABLE>
THE NORTHWAY PARTNERSHIP
(Northway Drive Apartments)
Northway Drive Apartments is a 70-unit apartment complex for families
which is to be constructed in Nacogdoches, Texas. Northway Drive Apartments will
consist of 22 one-bedroom units, 30 two-bedroom units and 18 three-bedroom units
contained in 19 buildings. The complex will offer a community room, pool,
function room, play and picnic areas, basketball court, playground, individual
storage units and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher, air
conditioning and smoke detectors.
Construction of Northway Drive Apartments began in February, 1997. The
Operating General Partner anticipates that construction completion and occupancy
will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------------ ----------- -----------------
<S> <C> <C> <C>
17 July, 1997 10 August, 1997
17 August, 1997 10 September, 1997
18 September, 1997 10 October, 1997
18 October, 1997 10 November, 1997
10 December, 1997
10 January, 1998
10 February, 1998
</TABLE>
THE OZARK PARTNERSHIP
(Ozark Apartments)
Ozark Apartments is an existing 16-unit apartment complex for senior
citizens which is to be rehabilitated in Poplarville, Mississippi. Ozark
Apartments will consist of 16 one-bedroom units contained in 4 buildings. The
complex will offer a meeting room and central laundry facilities.
Individual units will contain a refrigerator, range and smoke detectors.
Rehabilitation of Ozark Apartments is anticipated to begin in May, 1997.
The Operating General Partner
S-15
<PAGE>
anticipates that completion of rehabilitation and occupancy will occur as
follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------- ----------- -----------------
<S> <C> <C> <C>
16 July, 1997 4 August, 1997
4 September, 1997
4 October, 1997
4 November, 1997
</TABLE>
THE PALMETTO PLACE PARTNERSHIP
(Palmetto Place Apartments)
Palmetto Place Apartments is a 40-unit apartment complex for families
which is to be constructed in Benton, Louisiana. Palmetto Place Apartments will
consist of 10 one-bedroom units and 30 two-bedroom units contained in 8
buildings. The complex will offer a playground and central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning,
smoke detectors and a patio or porch.
Construction of Palmetto Place Apartments began in February, 1997. The
Operating General Partner anticipates that construction completion and occupancy
will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------- ----------- -----------------
<S> <C> <C> <C>
20 June, 1997 10 July, 1997
20 July, 1997 10 August, 1997
10 September, 1997
10 October, 1997
</TABLE>
THE PECAN HILL PARTNERSHIP
(Pecan Hill Apartments)
Pecan Hill Apartments is an existing 16-unit apartment complex for senior
citizens which is to be rehabilitated on Pecan Hill Drive in Bryson, Texas.
Pecan Hill Apartments will consist of 16 one-bedroom units contained in 4
buildings. The complex will offer a community room and central laundry
facilities.
Individual units will contain a refrigerator, range, smoke detectors and
a patio or porch.
Rehabilitation of Pecan Hill Apartments is anticipated to begin in May,
1997. The Operating General Partner anticipates that completion of
rehabilitation and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------- ----------- -----------------
<S> <C> <C> <C>
16 July, 1997 8 August, 1997
8 September, 1997
</TABLE>
THE POPLARVILLE PARTNERSHIP
(Poplarville Apartments)
Poplarville Apartments is an existing 16-unit apartment complex for
senior citizens which is to be rehabilitated in Poplarville, Mississippi.
Poplarville Apartments will consist of 16 one-bedroom units contained in 4
buildings. The complex will offer a meeting room and central laundry facilities.
Individual units will contain a refrigerator, range and smoke detectors.
Rehabilitation of Poplarville Apartments is anticipated to begin in May,
1997. The Operating General Partner anticipates that completion of
rehabilitation and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------- ----------- -----------------
<S> <C> <C> <C>
16 July, 1997 4 August, 1997
4 September, 1997
4 October, 1997
4 November, 1997
</TABLE>
THE QUAIL RUN PARTNERSHIP
(Quail Run Apartments)
Quail Run Apartments is an existing 16-unit apartment complex for senior
citizens which is to be rehabilitated on Wildflower Street in Iowa Park, Texas.
Quail Run Apartments will consist of 16 one-bedroom units contained in 4
buildings. The complex will offer a community room and central laundry
facilities.
Individual units will contain a refrigerator, range, dishwasher, smoke
detectors and a patio or porch.
Rehabilitation of Quail Run Apartments is anticipated to begin in May,
1997. The Operating General Partner anticipates that completion of
rehabilitation and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------- ----------- -----------------
<S> <C> <C> <C>
16 July, 1997 8 August, 1997
8 September, 1997
</TABLE>
S-16
<PAGE>
THE RHOME PARTNERSHIP
(Rhome Apartments)
Rhome Apartments is an existing 18-unit apartment complex for senior
citizens which is to be rehabilitated on Autumn Lane in Rhome, Texas. Rhome
Apartments will consist of 18 one-bedroom units contained in 4 buildings. The
complex will offer a community room and central laundry facilities.
Individual units will contain a refrigerator, range, smoke detectors and
a patio or porch.
Rehabilitation of Rhome Apartments is anticipated to begin in May, 1997.
The Operating General Partner anticipates that completion of rehabilitation and
occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------- ----------- -----------------
<S> <C> <C> <C>
18 July, 1997 9 August, 1997
9 September, 1997
</TABLE>
THE WESTFIELD PARTNERSHIP
(Westfield Apartments)
Westfield Apartments is a 40-unit apartment complex for families which is
to be constructed in Welsh, Louisiana. Westfield Apartments will consist of 10
one-bedroom units and 30 two-bedroom units contained in 8 buildings. The complex
will offer a playground and central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning,
smoke detectors and a patio or porch.
Construction of Westfield Apartments began in February, 1997. The
Operating General Partner anticipates that construction completion and occupancy
will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------- ----------- -----------------
<S> <C> <C> <C>
20 June, 1997 10 July, 1997
20 July, 1997 10 August, 1997
10 September, 1997
10 October, 1997
</TABLE>
THE WILLOW POINT PARTNERSHIP
(Willow Point Apartments)
Willow Point Apartments is a 120-unit apartment complex for families
which is to be constructed in Jackson, Mississippi. Willow Point Apartments will
consist of 16 one-bedroom units, 72 two-bedroom units and 32 three-bedroom units
contained in 6 buildings. The complex will offer a pool, recreation room and
central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning, smoke detectors and a patio or porch.
Construction of Willow Point Apartments is anticipated to begin in March,
1997. The Operating General Partner anticipates that construction completion and
occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------------ ----------- -----------------
<S> <C> <C> <C>
40 September, 1997 10 October, 1997
40 October, 1997 10 November, 1997
40 November, 1997 10 December, 1997
10 January, 1998
10 February, 1998
10 March, 1998
10 April, 1998
10 May, 1998
10 June, 1998
10 July, 1998
10 August, 1998
10 September, 1998
</TABLE>
* * * * * * * *
S-17
<PAGE>
UPDATE OF PROSPECTUS
The following financial information for the period through December 31,
1996, updates and supersedes the information in the Prospectus under the
headings "Prior Performance of the General Partner and its Affiliates" and
"Reports of Independent Certified Public Accountants, Financial Statements and
Tabular Information Concerning Prior Limited Partnership." These sections have
been reprinted in their entirety as follows:
Prior Performance of the General Partner and its Affiliates
During the ten-year period from January 1, 1987 to December 31, 1996,
Affiliates of the General Partner and their respective predecessors in interest
have served as general partners of seven public limited partnerships and 33
private limited partnerships including seven corporate limited partnerships for
a total of 40 real estate programs. Of the 33 private limited partnerships, 1 is
organized in a single-tier structure and 32 in a two-tier structure. In a
"single-tier structure," investors directly acquire an interest in the limited
partnership which owns the particular real estate, while in a "two-tier
structure," investors acquire an interest in a limited partnership
(the "upper tier") which in turn acquires a limited partnership interest in a
limited partnership which owns the real estate (the "lower tier"). A two-tier
structure allows an investor to indirectly own interests in more than one
lower-tier limited partnership through his investment in a single upper-tier
partnership.
Affiliates of the General Partner and their respective predecessors in
interest raised $1,318,007,825 in subscriptions from 53,957 investors during
this ten-year period. A total of 1,259 properties(1), with a total development
cost of $2,933,995,097 were acquired for the public and private limited
partnerships. These properties are geographically located 11% in the Northeast,
12% in the Mid-Atlantic, 33% in the Southeast, 24% in the Midwest, 10% in the
Southwest, and 10% in the West.
The foregoing information covering the period from January 1, 1987 to
December 31, 1996, can be summarized as follows:
<TABLE>
<CAPTION>
PROGRAMS PROPERTIES INVESTORS
- --------------------- ----------------------------- ----------------------------
Total Average
Development Capital Invested
Type Number Number Cost Number Capital Per Property
- --------- --------- --------- ----------------- --------- ---------------- ------------------
<S> <C> <C> <C> <C> <C> <C>
Public 7 876 $1,986,459,783 52,584 $ 800,478,958 $ 913,789
Private 33 383 $ 947,535,314 1,373 $ 517,528,867 $1,351,250
--- ------ --------------- -------- --------------- -----------
Total 40 1,259 $2,933,995,097 53,957 $1,318,007,825 $1,046,869
</TABLE>
REGIONS
<TABLE>
<CAPTION>
Northeast Mid-Atlantic Southeast Midwest Southwest West
------------ --------------- ------------ ---------- --------- ------
<S> <C> <C> <C> <C> <C> <C>
Public 12% 11% 34% 24% 8% 11%
Private 9% 15% 29% 24% 16% 7%
----- ----- ----- ----- ---- -----
Total 11% 12% 33% 24% 10% 10%
</TABLE>
Of these 40 prior limited partnerships, all have invested in Apartment
Complexes (or operating partnerships which owned such complexes) financed and/or
operated with one or more forms of government subsidy, primarily RHS. The states
in which these Apartment Complexes are located and the number of properties in
each state are as follows:(2)
S-18
<PAGE>
Alabama ............ 25 Nevada ............... 6
Arizona ............ 16 New Hampshire ...... 6
Arkansas ............ 17 New Jersey ......... 6
California ......... 64 New Mexico ......... 15
Colorado ............ 13 New York ............ 65
Connecticut ......... 1 North Carolina ...... 53
D.C. .................. 1 North Dakota ......... 19
Delaware ............ 4 Ohio ............... 16
Florida ............ 67 Oklahoma ............ 18
Georgia ............ 70 Oregon ............... 2
Illinois ............ 10 Pennsylvania ......... 44
Indiana ............ 13 Puerto Rico ......... 4
Iowa ............... 20 Rhode Island ......... 4
Kansas ............... 16 South Carolina ...... 33
Kentucky ............ 33 South Dakota ......... 4
Louisiana ............ 63 Tennessee ............ 24
Maine ............... 28 Texas ............... 66
Maryland ............ 20 Utah ............... 7
Massachusetts ...... 21 Vermont ............ 4
Michigan ............ 47 Virginia ............ 57
Minnesota ............ 25 Virgin Islands ...... 7
Mississippi ......... 42 Washington ......... 2
Missouri ............ 67 West Virginia ...... 10
Montana ............ 4 Wisconsin ............ 16
Nebraska ............ 8
- ----------
(1) Includes 63 properties which are jointly owned by two or more investment
partnerships or series within an investment partnership which represent a
total of 76 shared investments.
(2) The total number of properties by state does not reflect the 76 shared
investments of 63 operating partnerships. The net number of properties
reflected is 1,183.
The 40 government-assisted partnerships which invested in residential
apartment complexes accounted for 100% of the total development cost of all
properties acquired by all limited partnerships sponsored over the ten-year
period. Of the 1,259 total properties acquired during this ten-year period, four
properties held by a private partnership were refinanced.
Of the total offerings during the ten-year period, 40 invested in
government-assisted properties and had investment objectives which were similar
to the investment objectives of the Fund, to the extent that the limited
partnerships intended to provide, in order of priority, (1) certain tax benefits
in the form of tax losses or low-income housing and rehabilitation tax credits
which each such limited partnership's partners might use to offset income from
other sources; (2) long-term capital appreciation through increases in the value
of each apartment complex; and (3) cash distributions through potential sale or
refinancing transactions. Distributions of current cash flow were not a primary
objective of these partnerships, in that the government agencies which provide
subsidies regulate both the amount of rent and the amount of cash distributions
which may be made to partners.
Information concerning the public limited partnerships organized between
January 1, 1994 and December 31, 1996 is contained in Appendix I-Tabular
Information Concerning Prior Limited Partnerships.
S-19
<PAGE>
Private Placements (with Similar Investment Objectives)
During the ten-year period ending December 31, 1996, interests in 33 of the
limited partnerships with similar investment objectives were sold to
approximately 1,373 investors in private offerings intended to be exempt from
the registration requirements of the Securities Act of 1933. A total of
$517,528,867 in subscriptions was raised. Interests were acquired in a total of
383 properties, with a total development cost of $947,535,314.
The private limited partnerships involved new construction or renovation of
apartment complexes, financed with mortgage indebtedness aggregating
approximately $519,382,536 in addition to the equity investment of the prior
limited partnerships of $517,528,867. The purchased properties equalled 100% of
the total development cost of all non-commercial and non-conventional properties
invested in by private limited partnerships.
Public Offerings
During the ten-year period ending December 31, 1996, interests in seven
limited partnerships with investment objectives similar to those of the Fund,
were sold to approximately 52,584 investors in public offerings registered under
The Securities Act of 1933. A total of $800,478,958 in subscriptions was raised.
A total of 876 properties were purchased at a total development cost of
$1,986,459,783.
Information regarding the public offerings is summarized as follows as of
December 31, 1996:
<TABLE>
<CAPTION>
Investors Properties Type of Properties
---------------------------------- ------------------------ ------------------------------------
Total Under Historic
Development Recently Con- Tax
Program Closed Number Capital Number Cost Completed struction Credit
- -------------------------- --------- --------- -------------- --------- -------------- ------------ ------------ ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
American Affordable
Housing I Limited
Partnership ............ 1987 315 $ 2,779,000 3 $ 7,917,009 2 N/A 1
American Affordable
Housing II Limited
Partnership ............ 1988 2,421 $ 26,501,000 50 $105,307,863 47 N/A 3
American Affordable
Housing III Limited
Partnership ............ 1988 448 $ 4,425,000 4 $ 11,323,271 4 N/A N/A
Boston Capital Tax Credit
Fund Limited
Partnership (Series 1
through 6) ............ 1989 7,623 $ 97,746,940 105 $273,896,723 95 N/A 10
Boston Capital Tax Credit
Fund II Limited
Partnership (Series 7
through 14) ............ 1991 12,135 $186,398,018 310 $546,079,186 299 N/A 11
Boston Capital Tax Credit
Fund III L. P. (Series
15 through 19) ......... 1993 14,583 $219,960,000 241 $550,956,681 229 N/A 12
Boston Capital Tax Credit
Fund IV L. P. (Series
20 through 28) ......... 1996 15,059 $262,669,000 163 $490,979,050 134 24 5
</TABLE>
S-20
<PAGE>
During the four-year period ending December 31, 1996, Affiliates of the
General Partner sponsored two public investment limited partnerships with
similar investment objectives. These two public limited partnerships own
interests in 272 operating partnerships which include 18 properties jointly
owned by two or more investment partnerships or series within an investment
partnership, representing a total of 18 shared investments. The total number of
properties by state does not duplicate the 18 shared investments. The net number
of properties reflected is 254 located in:
Alabama ............ 3 Montana ............... 1
Arizona ............ 5 Nebraska ............ 2
Arkansas ............ 4 Nevada ............... 3
California ......... 11 New Hampshire ...... 1
Colorado ............ 2 New Jersey ............ 4
Delaware ............ 1 New Mexico ............ 2
Florida ............ 9 New York ............ 17
Georgia ............ 19 North Carolina ...... 11
Illinois ............ 3 North Dakota ......... 10
Indiana ............ 1 Ohio ............... 2
Iowa ............... 6 Oklahoma ............ 2
Kansas ............... 3 Pennsylvania ......... 6
Kentucky ............ 12 Rhode Island ......... 1
Louisiana ............ 19 South Carolina ...... 6
Maine ............... 5 South Dakota ......... 1
Maryland ............ 6 Tennessee ............ 4
Massachusetts ...... 6 Texas ............... 11
Michigan ............ 8 Utah ............... 2
Minnesota ............ 2 Virginia ............ 7
Mississippi ......... 12 Virgin Islands ...... 3
Missouri ............ 17 Wisconsin ............ 4
All of the operating partnership acquisitions of the two public limited
partnerships involved new construction or renovation of existing Apartment
Complexes, financed with government-assisted mortgage indebtedness aggregating
approximately $421,963,211 in addition to the equity investment of the investing
partnerships of $389,631,000. These properties equalled 100% of the total
development cost of properties acquired by public limited partnerships in the
four-year period ended December 31, 1996.
Upon request, the most recent Form 10-K and Form 10-Q filed with the
Securities and Exchange Commission relative to the public offerings will be
provided to investors at no charge and the exhibits to each such Form 10-K and
Form 10-Q will be provided for a reasonable fee.
Table VI, included as an exhibit to the Registration Statement of which
this Prospectus forms a part, presents a more detailed description of certain of
these properties. The General Partner will provide Table VI to any prospective
Investor without fee upon request.
Any investor or prospective investor may obtain a copy of the most recent
Form 10-K, Form 10-Q, or Table VI upon written request to Boston Capital Tax
Credit Fund IV L.P. c/o Boston Capital Partners, Inc., One Boston Place, Suite
2100, Boston, MA 02108-4406, Attn: Richard J. DeAgazio.
* * * * *
S-21
<PAGE>
Since the inception of Boston Capital's predecessor in interest, Affiliates
of the General Partner and their respective predecessors in interest have raised
approximately $1.5 billion in equity from approximately 60,000 investors to
acquire interests in approximately 1,800 properties containing approximately
82,000 apartments units in 48 states, Puerto Rico, The Virgin Islands and
Washington, D.C., representing over $3.8 billion in total development cost.
SEE "TABULAR INFORMATION CONCERNING CERTAIN PRIOR LIMITED PARTNERSHIPS,"
APPENDIX I, FOR DETAILED INFORMATION CONCERNING THE ABOVE LIMITED PARTNERSHIPS.
THE INFORMATION SUMMARIZED IN SUCH TABLES IS NOT NECESSARILY INDICATIVE OF THE
RESULTS THAT MAY BE EXPERIENCED BY THE FUND. IT SHOULD NOT BE ASSUMED THAT
INVESTORS WILL EXPERIENCE RETURNS, IF ANY, COMPARABLE TO THOSE EXPERIENCED BY
INVESTORS IN PRIOR PARTNERSHIPS. THE OPERATING HISTORY OF MANY OF SUCH PRIOR
PARTNERSHIPS IS BRIEF, AND TAX RETURNS AND FINANCIAL STATEMENTS FROM ONLY THE
INITIAL YEARS OF CERTAIN OF THESE LIMITED PARTNERSHIPS HAVE BEEN FILED.
S-22
<PAGE>
REPORTS OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS,
FINANCIAL STATEMENTS AND TABULAR INFORMATION CONCERNING
PRIOR LIMITED PARTNERSHIPS
BOSTON CAPITAL ASSOCIATES IV L.P.
INDEPENDENT AUDITORS' REPORT
December 31, 1996
To the Partners of
Boston Capital Associates IV L.P.
We have audited the accompanying balance sheet of Boston Capital Associates IV
L.P. as of December 31, 1996. This balance sheet is the responsibility of the
partnership's management. Our responsibility is to express an opinion on this
balance sheet based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the balance sheet is free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the balance sheet. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall balance sheet presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the balance sheet referred to above presents fairly, in all
material respects, the financial position of Boston Capital Associates IV L.P.
as of December 31, 1996, in conformity with generally accepted accounting
principles.
REZNICK FEDDER & SILVERMAN
Bethesda, Maryland
March 18, 1997
S-23
<PAGE>
BOSTON CAPITAL ASSOCIATES IV L.P.
BALANCE SHEET
December 31, 1996
ASSETS
Investment in partnership (Note C) ...... $ 500
========
LIABILITIES
Subscription payable ..................... $ 500
--------
Partner's equity (Note B)
General partner ........................ 100
Limited partner ........................ 1,400
--------
1,500
--------
Less: subscriptions receivable ......... (1,500)
--------
--
--------
$ 500
========
See notes to balance sheet
Note A--Organization
Boston Capital Associates IV L.P. (the "Partnership") was organized under
the laws of Delaware as of October 5, 1993, to act as the General Partner of,
and to acquire and hold a general partnership interest in, Boston Capital Tax
Credit Fund IV L.P.
Note B--Partners' Capital Contributions
The Partnership has one general partner--C&M Associates d/b/a Boston
Capital Associates and one limited partner--Capital Investment Holdings IV. As
of October 5, 1993, the general partner and the limited partner are obligated to
make capital contributions of $100 and $1,400, respectively. Under the terms of
the partnership agreement, the general partner has no obligation to make
additional capital contributions to the Partnership, except possibly upon
liquidation. There are no additional capital contributions due from the limited
partner.
Note C--Investment in Partnership
On October 5, 1993, the Partnership was admitted as the General Partner in
Boston Capital Tax Credit Fund IV L.P. The Fund was formed to invest in real
estate by acquiring, holding, and disposing of limited partnership interests in
operating partnerships which will acquire, develop, rehabilitate, operate and
own newly-constructed, existing or rehabilitated low-income apartment complexes.
S-24
<PAGE>
BCTC IV ASSIGNOR CORP.
INDEPENDENT AUDITORS' REPORT
December 31, 1996
To the Stockholder
BCTC IV Assignor Corp.
We have audited the accompanying balance sheet of BCTC IV Assignor Corp. as of
December 31, 1996. This balance sheet is the responsibility of the corporation's
management. Our responsibility is to express an opinion on this balance sheet
based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the balance sheet is free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the balance sheet. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall balance sheet presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the balance sheet referred to above presents fairly, in all
material respects, the financial position of BCTC IV Assignor Corp. as of
December 31, 1996, in conformity with generally accepted accounting principles.
REZNICK, FEDDER & SILVERMAN
Bethesda, Maryland
March 18, 1997
S-25
<PAGE>
BCTC IV ASSIGNOR CORP.
BALANCE SHEET
December 31, 1996
ASSETS
Investment in partnership (Note B) ............................ $ 100
========
LIABILITIES
Subscriptions payable ........................................ $ 100
Stockholder's equity
Common stock--1,000 shares authorized, issued
and outstanding, $1 par value per share ........................ 1,000
Less: subscription receivable .................................. (1,000)
--------
$ 100
========
See notes to balance sheet
Note A--Organization
BCTC IV Assignor Corp. (the "Corporation") was organized on October 12,
1993, under the laws of Delaware to act as the assignor limited partner of, and
to acquire and hold a limited partnership interest in, Boston Capital Tax Credit
Fund IV L.P. (the "Fund"). The Corporation will assign units of beneficial
interest in its limited partnership interest to persons who purchase Beneficial
Assignee Certificates (BACs), on the basis of one unit of beneficial interest
for each BAC. The Corporation will not have any interest in profits, losses or
distributions on its own behalf.
Note B--Investment in Partnership
On October 12, 1993, the Corporation was admitted as the assignor limited
partner in Boston Capital Tax Credit Fund IV L.P. The Fund was formed to invest
in real estate by acquiring, holding, and disposing of limited partnership
interests in operating partnerships which will acquire, develop, rehabilitate,
operate and own newly-constructed, existing or rehabilitated low-income
apartment complexes.
S-26
<PAGE>
KEVIN P. MARTIN & ASSOCIATES, P.C.
Certified Public Accountants
Business Consultants
KEVIN P. MARTIN, CPA SOUTH SHORE EXECUTIVE PARK
KEVIN P. MARTIN, JR., CPA, MST TEN FORBES WEST
BRAINTREE, MA 02184-2696
------------ ------------
KENNETH J. DAVIN, CPA
GARRETT H. DALTON, III, CPA, MBA TELEPHONE (617) 380-3520
LISA A. MARTIN, CPA, MST FACSIMILE (617) 380-7836
EMAIL [email protected]
To The Partners
C & M Associates
d/b/a Boston Capital Associates
One Boston Place
Boston, MA 02108-4406
Independent Auditors' Report
We have audited the accompanying balance sheet of C & M Associates d/b/a Boston
Capital Associates (A Massachusetts General Partnership) as of December 31, 1996
and the related statements of income and expenses, partners' equity and cash
flows for the year then ended. These financial statements are the responsibility
of the Partnership's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of C & M Associates d/b/a Boston
Capital Associates as of December 31, 1996 and the results of its operations and
its cash flows for the year then ended in conformity with generally accepted
accounting principles.
Braintree, Massachusetts
January 17, 1997
S-27
<PAGE>
C & M ASSOCIATES
d/b/a/ BOSTON CAPITAL ASSOCIATES
(A MASSACHUSETTS GENERAL PARTNERSHIP)
BALANCE SHEET
December 31, 1996
<TABLE>
<CAPTION>
ASSETS
<S> <C>
CURRENT ASSETS:
Cash ....................................... $ 886,236
Service fees receivable (notes 3 and 4) ...... 55,443
-----------
Total current assets ........................ 941,679
-----------
OTHER ASSETS:
Investments (note 2) ........................ 81,973
-----------
$1,023,652
===========
LIABILITIES AND PARTNERS' EQUITY
CURRENT LIABILITIES:
Accounts payable--affiliates (note 4) ...... $ 436
-----------
Total current liabilities .................. 436
-----------
PARTNERS' EQUITY .............................. 1,023,216
-----------
$1,023,652
===========
</TABLE>
See accompanying notes.
S-28
<PAGE>
C & M ASSOCIATES
d/b/a BOSTON CAPITAL ASSOCIATES
(A MASSACHUSETTS GENERAL PARTNERSHIP)
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996
The accompanying financial statements have been prepared in accordance with
generally accepted accounting principles. The following is a summary of
significant accounting policies:
Note 1--Summary of Significant Accounting Policies:
Nature of Business--C & M Associates was formed as a Massachusetts general
partnership pursuant to an agreement dated July 1, 1982 to derive acquisition,
consulting and management fees from various investment limited partnerships.
C & M Associates owns partnership interests in entities which own multiple
apartment complexes located in various states. The partnerships are subject to
long-term subsidy contracts, mortgage restrictions as to prepayments and
priority distributions to limited partners.
The Partnership derives various acquisition and consulting fees from
investment limited partnerships in connection with the negotiating and acquiring
of operating partnership interests, substantially all of which are in the real
estate sector and located throughout the United States. All accounts receivable
are due from such partnership interests.
Method of Accounting--The financial statements of the Partnership are
prepared on the accrual basis of accounting, and include only those assets,
liabilities and results of operations of the Partnership which relate to the
business of C & M Associates.
Revenue Recognition--The Partnership recognizes service fee income based
upon the specific performance method at the time of syndication and closing of
limited partnership investments. These fees usually are payable over a period of
more than one year.
No individual private limited partnerships were syndicated through C & M
Associates during 1996. However, C & M Associates continues to act as general
partner in various public individual and corporate private limited partnerships
which are syndicated through an affiliate.
Income Taxes--No provision for income taxes is made in the financial
statements of the Partnership since the individual partners, not the entity, are
allocated the tax effect of items of income, deduction and credits to be
reported.
Bad Debts--No allowance for doubtful accounts has been provided as
management believes all accounts receivable as of December 31, 1996 are fully
collectible.
Financial Instruments--All financial instruments in the financial
statements are nonderivative and unless otherwise noted, the fair value of
financial instruments is the carrying value.
Cash and Cash Equivalents--The Partnership considers all highly liquid
investments with a maturity of three months or less, when purchased, to be "cash
equivalents."
In addition, the Partnership maintains its cash balances in one financial
institution located in Boston, Massachusetts. The balances are insured by the
Federal Deposit Insurance Corporation up to $100,000.
S-29
<PAGE>
Use of Estimates--The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statement and reported amounts of
revenues and expenses during the reporting period. Actual results could differ
from those estimates.
Note 2--Investments--Investments consist of interests in limited
partnerships and are recorded at cost. Due to uncertainties in the market for
investments in limited partnerships, it is not practical to determine the fair
value of the investments.
C & M Associates holds a general partner interest in each limited
partnership. As a general partner, C & M Associates is responsible to meet all
limited partnership liabilities and obligations. These interests involve credit
risk in excess of the amount recognized on the balance sheet. Unless noted
otherwise, C & M Associates does not require collateral or other security to
support financial instruments with credit risk.
Note 3--Line of Credit--The Partnership was co-maker with an affiliate on a
bank line of credit. Under the terms of the amended and restated loan agreement
dated June 17, 1996, the Partnership is no longer a co-maker under the line of
credit.
The Partnership is a guarantor on a $10 million revolving bank line of
credit of another partnership, in which C & M Associates is affiliated as
sponsor and through common control. Under the terms of the loan agreement dated
August 22, 1996, the loan bears interest at the prime rate in effect from time
to time. The Partnership has guaranteed 25% of the principal and 100% of the
interest outstanding. As of December 31, 1996, there is no outstanding liability
of C & M Associates under the line of credit. There is, however, $3,115,640
outstanding to the affiliate.
Note 4--Transactions with Related Parties--Substantially all revenues are
earned from the providing of financial consulting advice regarding development
and syndication of partnership interests to partnerships in which C & M
Associates is the general partner. All service fees receivables at December 31,
1996 are due from related parties.
Substantially all expenses of C & M Associates are paid to an affiliate,
whose shareholders are partners in C & M Associates, which is contracted to
provide consulting services. All accounts payable at December 31, 1995 are
payable to the related party.
Note 5--Commitments and Contingencies--C & M Associates has been named as a
co-defendant in a lawsuit and subsequent cross-complaint involving a former,
proposed real estate project. The complaint seeks unspecified damages.
Substantial discovery has not yet been completed and an estimate of the possible
loss or range of loss can not be made at this time.
S-30
<PAGE>
TABULAR INFORMATION CONCERNING PRIOR LIMITED PARTNERSHIPS
The information contained in the following Tables I, II, III, and III-A is
presented in conjunction with and as a supplement to the narrative summary
appearing elsewhere in this Prospectus under "Prior Performance of the General
Partner and its Affiliates" and is qualified in its entirety by the information
contained in such narrative summary.
These Tables include information for the three-year period beginning
January 1, 1994, and ending December 31, 1996 (five-year period ending March 31,
1996 for Table III) relating to public programs in the aggregate sponsored by
the General Partner and its Affiliates which had similar investment objectives
to those of the Fund. Programs deemed to have "similar investment objectives"
are programs receiving Government Assistance and originally intended to provide,
generally (1) tax benefits in the form of tax losses and low-income housing and
rehabilitation tax credits which could be used by limited partners to offset
income from other sources, (2) long-term capital appreciation through increases
in the value of the programs' investments, (3) cash distributions from the sale
or refinancing of the apartment complexes owned by the operating partnerships,
and (4) in some instances, limited cash distributions from operations.
Additionally, the programs which had similar investment objectives to those of
the Fund also involve material risks similar to those inherent in an investment
in the Fund. (See the section of the Prospectus entitled "Risk Factors.")
The programs listed in these Tables were organized by the General Partner
and its Affiliates generally in a two-tier structure. These two-tier programs
consist of one investment limited partnership (the "investment partnership")
which invested in a number of limited partnerships (the "operating
partnerships"), each of which owns an apartment complex for low- and
moderate-income persons, which receives Government Assistance. In the three-
year period ending December 31, 1996, the General Partner and its Affiliates,
sponsored one public partnership. The following table identifies the number of
operating partnership interests acquired in programs sponsored by the General
Partner and its Affiliates as of December 31, 1996, and emphasizes Boston
Capital's philosophy of broad diversification:
<TABLE>
<CAPTION>
% Equity # of Operating Average Equity
Committed Partnerships Per Operating
Program at 12/31/96 Acquired # of States Partnership
- -------------------- -------------- ----------------- -------------- ----------------
<S> <C> <C> <C> <C>
Boston Capital Tax
Credit Fund IV L.P.:
Series 20 ......... 100.0% 24 17 $ 1,611,170
Series 21 ......... 100.0% 14 12 $ 1,351,229
Series 22 ......... 98.0% 28 17 $ 897,879
Series 23 ......... 100.0% 22 15 $ 1,516,331
Series 24 ......... 94.2% 23 17 $ 888,676
Series 25 ......... 91.3% 20 14 $ 1,380,431
Series 26 ......... 51.1% 24 13 $ 851,119
Series 27 ......... 80.3% 7 7 $ 2,822,200
Series 28 ......... 1.1% 1 1 $ 338,396
</TABLE>
Although the percent of Equity Committed as of December 31, 1996 for Series
22, Series 24, Series 25, Series 26, Series 27 and Series 28 is 98.0%, 94.2%,
91.3%, 51.1%, 80.4% and 1.1%, respectively, properties have been identified for
acquisition to fully commit the equity raised for all of these Series.
In 1993, Affiliates of the General Partner formed Boston Capital Tax Credit
Fund IV L.P., which was registered under the Securities Act of 1933.
S-31
<PAGE>
The primary investment objectives of these limited partnerships are the
preservation of the partnership's capital and the provision of current tax
benefits to investors in the form of Tax Credits and passive losses. Cash flow
distributions from the operating partnerships to the investment partnerships
were not an investment objective in these programs. The regulations of RHS and
other government subsidy programs limit the amount of rent which may be charged
to tenants and also limit the amount of cash flow which may be distributed, even
if greater amounts of cash flow are available.
Investors in the Fund will not have any interest in any of the prior
limited partnerships incorporated in the tables or in any of the apartment
complexes owned by these limited partnerships. It should not be assumed that
Investors in the Fund will experience results comparable to those experienced by
investors in the programs incorporated in the following Tables.
The Tabular Information Concerning Prior Limited Partnerships and
accompanying Notes are not covered by reports of independent certified public
accountants.
Additional information regarding prior public programs can be obtained upon
written request to:
Boston Capital Tax Credit Fund IV L.P.
c/o Boston Capital Partners, Inc.
One Boston Place, Suite 2100
Boston, Massachusetts 02108-4406
Attn: Richard DeAgazio
S-32
<PAGE>
TABLE I
EXPERIENCE IN RAISING AND INVESTING FUNDS
(ON A PERCENTAGE BASIS)
Table I includes information concerning the experience of the General
Partner and its Affiliates in raising and investing funds for public limited
partnerships having similar investment objectives to the Fund. Information is
included for the sole public offering organized between January 1, 1994 and
December 31, 1996, which invested in 163 operating partnerships. Table I
presents the dollar amount offered and raised, the percentage of the amount
raised which was used to pay offering costs and acquire investments, the
percentage of leverage used and the time frame for raising and investing funds.
Table I is presented as if all capital contributions were received and all
expenses and payments of capital were paid in the year in which the offering
closed, although such transactions occur over several years.
The Table should be read in conjunction with the introduction and
accompanying Notes.
January 1, 1994 Through December 31, 1996
<TABLE>
<CAPTION>
Public Offerings
-----------------------------------------------
BCTC IV BCTC IV BCTC IV
L.P. L.P. L.P.
(Series 20) (Series 21) (Series 22)
1994 1994 1994
-------------- -------------- -------------
<S> <C> <C> <C>
Dollar amount offered (1) ........................ $ 38,667,000 $ 18,927,000 $ 25,644,000
Dollar amount raised (100%) ..................... 100% 100% 100%
Less: Offering expenses
Selling commissions and reimbursements retained
by affiliates .................................... 2.00% 2.00% 2.00%
Other selling commissions ........................ 8.00% 8.00% 8.00%
Legal and organizational ........................ 2.50% 2.50% 2.50%
------------ ------------ ------------
Total offering expenses ........................... 12.50% 12.50% 12.50%
============ ============ ============
Amount available for investment from limited
partners ....................................... 87.50% 87.50% 87.50%
Acquisition fees (2) .............................. 8.50% 8.50% 8.50%
Acquisition expenses (3) ........................ 2.00% 2.00% 2.00%
Working capital reserves ........................ 4.00% 4.00% 4.00%
Cash payments to operating partnerships (4) ...... 73.00% 73.00% 73.00%
------------ ------------ ------------
Total acquisition costs ........................... 87.50% 87.50% 87.50%
============ ============ ============
Mortgage financing .............................. $ 46,781,034 $ 28,859,996 $ 35,398,520
Additional capital (5) ........................... $ 874,687 $ 2,673,695 $ 861,753
------------ ------------ ------------
Total other sources .............................. $ 47,655,721 $ 31,533,691 $ 36,260,273
Amount available for investment from offering
proceeds ....................................... $ 33,833,625 $ 16,561,125 $ 22,438,500
------------ ------------ ------------
Total development costs ........................... $ 81,489,346 $ 48,094,816 $ 58,698,773
============ ============ ============
Percentage leverage (6) ........................... 57.41% 60.01% 60.31%
Average length of offering (days) ............... 156 92 80
Months to invest 90% of amount available ......... 4 3 10
</TABLE>
S-33
<PAGE>
TABLE I
EXPERIENCE IN RAISING AND INVESTING FUNDS
(ON A PERCENTAGE BASIS)
January 1, 1994 Through December 31, 1996
<TABLE>
<CAPTION>
Public Offerings
-----------------------------------------------
BCTC IV BCTC IV BCTC IV
L.P. L.P. L.P.
(Series 23) (Series 24) (Series 25)
1995 1995 1995
-------------- -------------- -------------
<S> <C> <C> <C>
Dollar amount offered (1) ........................ $ 33,366,000 $ 21,697,000 $ 30,137,100
Dollar amount raised (100%) ..................... 100% 100% 100%
Less: Offering expenses
Selling commissions and reimbursements retained
by affiliates .................................... 2.00% 2.00% 2.00%
Other selling commissions ........................ 8.00% 8.00% 8.00%
Legal and organizational ........................ 2.50% 2.50% 2.50%
------------ ------------ ------------
Total offering expenses ........................... 12.50% 12.50% 12.50%
============ ============ ============
Amount available for investment from limited
partners ....................................... 87.50% 87.50% 87.50%
Acquisition fees (2) .............................. 8.50% 8.50% 8.50%
Acquisition expenses (3) ........................ 2.00% 2.00% 2.00%
Working capital reserves ........................ 4.00% 4.00% 4.00%
Cash payments to operating partnerships (4) ...... 73.00% 73.00% 73.00%
------------ ------------ ------------
Total acquisition costs ........................... 87.50% 87.50% 87.50%
============ ============ ============
Mortgage financing .............................. $ 30,684,244 $ 27,013,242 $ 28,680,479
Additional capital (5) ........................... $ 488,129 $ 969,023 $ 292,328
------------ ------------ ------------
Total other sources .............................. $ 31,172,373 $ 27,982,265 $ 28,972,807
Amount available for investment from offering
proceeds ....................................... $ 29,195,250 $ 18,984,875 $ 26,467,000
------------ ------------ ------------
Total development costs ........................... $ 60,367,623 $ 46,967,140 $ 55,439,807
============ ============ ============
Percentage leverage (6) ........................... 50.83% 57.52% 51.73%
Average length of offering (days) ............... 165 76 91
Months to invest 90% of amount available ......... 4 13 12
</TABLE>
S-34
<PAGE>
TABLE I
EXPERIENCE IN RAISING AND INVESTING FUNDS
(ON A PERCENTAGE BASIS)
January 1, 1994 Through December 31, 1996
<TABLE>
<CAPTION>
Public Offerings
-----------------------------------------------
BCTC IV BCTC IV BCTC IV
L.P. L.P. L.P.
(Series 26) (Series 27) (Series 28)
1996 1996 1996
-------------- -------------- -------------
<S> <C> <C> <C>
Dollar amount offered (1) ........................ $ 39,959,000 $ 24,607,000 $ 29,554,000
Dollar amount raised (100%) ..................... 100% 100% 100%
Less: Offering expenses
Selling commissions and reimbursements retained
by affiliates .................................... 2.00% 2.00% 2.00%
Other selling commissions ........................ 8.00% 8.00% 8.00%
Legal and organizational ........................ 2.50% 2.50% 2.50%
------------ ------------ ------------
Total offering expenses ........................... 12.50% 12.50% 12.50%
============ ============ ============
Amount available for investment from limited
partners ....................................... 87.50% 87.50% 87.50%
Acquisition fees (2) .............................. 8.50% 8.50% 8.50%
Acquisition expenses (3) ........................ 2.00% 2.00% 2.00%
Working capital reserves ........................ 4.00% 4.00% 4.00%
Cash payments to operating partnerships (4) ...... 73.00% 73.00% 73.00%
------------ ------------ ------------
Total acquisition costs ........................... 87.50% 87.50% 87.50%
============ ============ ============
Mortgage financing .............................. $ 21,492,640 $ 33,341,350 $ 1,092,702
Additional capital (5) ........................... $ 405,990 $ 1,150,600 $ 83,263
------------ ------------ ------------
Total other sources .............................. $ 21,898,630 $ 34,491,950 $ 1,175,965
Amount available for investment from offering
proceeds ....................................... $ 34,964,125 $ 21,531,125 $ 25,859,750
------------ ------------ ------------
Total development costs ........................... $ 56,862,755 $ 56,023,075 $ 27,035,715
============ ============ ============
Percentage leverage (6) ........................... 37.80% 59.51% 4.04%
Average length of offering (days) ............... 159 85 93
Months to invest 90% of amount available ......... N/A N/A N/A
</TABLE>
S-35
<PAGE>
NOTES TO TABLE I
Note 1: The dollar amount offered and raised includes the entire amount of
investors' contributions paid.
Note 2: Acquisition fees are amounts paid to the general partners and affiliates
for selecting, evaluating, negotiating and closing the investment partnerships'
acquisition of operating partnership interests.
Note 3: Acquisition expenses consist of legal and accounting fees, travel,
market studies and other expenses to be paid to third parties.
Note 4: Cash payments to non-affiliated operating partnerships include capital
contributions. The amount shown for 1996 includes 22.08% of public partnerships'
funds committed but not yet invested.
Note 5: Additional capital represents funds contributed by the operating general
partners. Properties financed by RHS after 1987 require the operating general
partners to provide a minimum of 3% of the total development cost in equity.
Note 6: The leverage percentage equals the total amount of mortgage indebtedness
on the acquisition date or completion date divided by total development costs.
S-36
<PAGE>
TABLE II
COMPENSATION TO SPONSOR AND AFFILIATES
Table II sets forth the aggregate amount of all compensation earned by or
paid to the General Partner and its Affiliates between January 1, 1994 and
December 31, 1996 for the programs included in Table I. None of the programs
included in this Table has been liquidated.
The Table should be read in conjunction with the introduction and
accompanying notes.
January 1, 1994 Through December 31, 1996
<TABLE>
<CAPTION>
Public Offerings
-----------------------------------------------
BCTC IV BCTC IV BCTC IV
L.P. L.P. L.P.
(Series 20) (Series 21) (Series 22)
1994 1994 1994
-------------- -------------- -------------
<S> <C> <C> <C>
Dollar amount raised (1) ........................... $38,667,000 $18,927,000 $25,644,000
Amounts paid and/or payable to sponsor and affiliates
from proceeds (1):
Underwriting fees (2) .............................. 1,353,345 662,445 897,540
Acquisition fees .................................... 3,286,695 1,608,795 2,179,740
Acquisition expense reimbursement .................. 773,340 378,540 512,880
Asset management fee ................................. 1,021,187 673,150 483,381
Dollar amount of cash generated from operating
partnerships before payments to sponsors (4) ...... 24 0 0
Amounts paid to sponsors from operations (4) ...... 0 0 0
</TABLE>
TABLE II
COMPENSATION TO SPONSOR AND AFFILIATES
January 1, 1994 Through December 31, 1996
<TABLE>
<CAPTION>
Public Offerings
-----------------------------------------------
BCTC IV BCTC IV BCTC IV
L.P. L.P. L.P.
(Series 23) (Series 24) (Series 25)
1995 1995 1995
-------------- -------------- -------------
<S> <C> <C> <C>
Dollar amount raised (1) ........................... $33,366,000 $21,697,000 $30,248,000
Amounts paid and/or payable to sponsor and affiliates
from proceeds (1):
Underwriting fees (2) .............................. 1,167,810 759,395 1,058,680
Acquisition fees .................................... 2,836,110 1,844,245 2,571,080
Acquisition expense reimbursement .................. 667,320 433,940 604,960
Asset management fee ................................. 420,971 197,387 143,674
Dollar amount of cash generated from operating
partnerships before payments to sponsors (3) ...... 378 0 0
Amounts paid to sponsors from operations (4) ...... 0 0 0
</TABLE>
S-37
<PAGE>
TABLE II
COMPENSATION TO SPONSOR AND AFFILIATES
January 1, 1994 Through December 31, 1996
<TABLE>
<CAPTION>
Public Offerings
-----------------------------------------------
BCTC IV BCTC IV BCTC IV
L.P. L.P. L.P.
(Series 26) (Series 27) (Series 28)
1996 1996 1996
-------------- -------------- -------------
<S> <C> <C> <C>
Dollar amount raised (1) ........................... $39,959,000 $24,607,000 $29,554,000
Amounts paid and/or payable to sponsor and affiliates
from proceeds (1):
Underwriting fees (2) .............................. 1,398,565 861,245 1,034,390
Acquisition fees .................................... 3,396,515 2,091,595 2,512,090
Acquisition expense reimbursement .................. 799,180 492,140 591,080
Asset management fee .............................. 97,385 59,255 0
Dollar amount of cash generated from operating
partnerships before payments to sponsors (3) ...... 0 0 0
Amounts paid to sponsors from operations (4) ...... 0 0 0
</TABLE>
NOTES TO TABLE II
Note 1: Table II is presented as if all capital contributions were received and
all fees payable from offering proceeds to the General Partner, its Affiliates,
and their predecessors in interest were paid in the year in which the offerings
were completed; such transactions actually occur over several years.
Note 2: Underwriting fees include non-accountable expense allowances, research
report fees, due diligence fees, selling commissions, purchaser representative
fees, and capital commitment fees. These amounts do not include commissions paid
to an affiliated dealer-manager which were subsequently paid to non-affiliated
brokers. These fees are paid over one to three years.
Note 3: The dollar amount of cash generated from operating partnerships is the
total amount of cash distributions received by the investment partnerships
during the three-year period. For example: 1996 would include 1994-1996 cash
distributions for the partnership organized in 1994. Historically, cash flow
from government-subsidized apartment complexes is generated by the second full
year of operations, yet cash flow is not disbursed until financial statement
analyses are complete.
Note 4: If cash flow is unavailable to pay investment partnership operating
expenses, then expenses are either accrued until cash flow is available in
future years to repay such expenses or the sponsor pays these operating expenses
as they become due and subsequently receives reimbursement when cash flow is
available.
S-38
<PAGE>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
Table III summarizes the operating results of prior partnerships having
similar investment objectives to the Fund which were closed between January 1,
1992 and December 31, 1996. In 1991, 1 public investment partnership was
organized; and in 1993, one public investment partnership was organized. The
public investment partnerships own interests in 404 operating partnerships.
The information is presented in accordance with generally accepted
accounting principles ("GAAP") except with respect to the information presented
in the tables labeled "Tax & Distribution Data Per $1000 invested on a Tax
Basis", which is presented on the tax basis method of accounting.
Significant differences can occur in operating results accounted for on a
tax versus GAAP basis. Some differences, but not all, are due to depreciation
methods and depreciable lives, and treatment of capitalized construction period
interest and expenses. The usual effect of these differences is that taxable
losses under GAAP would have been less than the taxable losses. Both GAAP and
tax losses are reported in the table.
The Table should be read in conjunction with the introduction and
accompanying Notes.
S-39
<PAGE>
From Opening Through March 31, 1996
PUBLIC OFFERINGS CLOSED DURING 1992
BOSTON CAPITAL TAX CREDIT FUND III L.P. (Series 15)
<TABLE>
<CAPTION>
For the Financial Statement period ended March 31,
1992 1993 1994 1995 1996
------------ --------------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Gross Revenues .............................. 8,779 355,281 197,438 76,085 192,705
Profit on sale of properties ............... 0 0 0 0 0
Less:
Losses from operating partnerships (1) ... (14,724) (1,294,753) (2,724,135) (2,948,034) (3,201,668)
Operating Expenses (3) ..................... (8,688) (627,418) (637,964) (614,234) (592,984)
Interest Expense ........................... 0 0 0 0 0
Depreciation (2) ........................... 0 (42,926) (45,457) (26,231) (36,843)
Net Income--GAAP Basis ..................... (14,633) (1,609,816) (3,210,118) (3,512,414) (3,638,790)
Taxable Income
from operations (4) ........................ 0 (1,101,897) (3,213,263) (2,928,629) (3,152,116)
gain on sale .............................. 0 0 0 0 0
Cash generated from operations (6) ......... 5,559 (529,607) 340,917 (404,515) 160,890
Cash generated from sales .................. 0 0 0 0 0
Cash generated from refinancing ............ 0 0 0 0 0
Cash generated from operations, sales and
refinancing .............................. 5,559 (529,607) 340,917 (404,515) 160,890
Less: Cash distributions to investors
from operating cash flow .................. 0 0 0 0 0
from sales and refinancing ............... 0 0 0 0 0
from other ................................. 0 0 0 0 0
Cash generated (deficiency) after cash
distributions .............................. 5,559 (529,607) 340,917 (404,515) 160,890
Less: Special items (not including sales and
refinancing) .............................. 0 0 0 0 0
Cash generated (deficiency) after cash
distributions and special items ............ 5,559 (529,607) 340,917 (404,515) 160,890
Amount remaining invested in program
properties ................................. 98.52%
</TABLE>
<TABLE>
<CAPTION>
For the Tax period ended
December 31,
Tax & Distribution Data Per $1,000
invested on a Tax Basis (7) 1991 1992 1993 1994 1995 1996
------- ------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C> <C>
Federal Income Tax Results
Federal Credit (5) ............... 0 31 92 133 143 147
State Credit ..................... 0 0 0 0 0 0
Ordinary Income (loss) ......... 0 (28) (83) (77) (79) (94)
from operations ............... 0 (28) (83) (77) (79) (94)
from recapture .................. 0 0 0 0 0 0
Capital gain (loss) ............ 0 0 0 0 0 0
</TABLE>
S-40
<PAGE>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
From Opening Through March 31, 1996
PUBLIC OFFERINGS CLOSED DURING 1992
BOSTON CAPITAL TAX CREDIT FUND III L.P. (Series 16)
<TABLE>
<CAPTION>
For the Financial Statement period ended March 31,
1993 1994 1995 1996
------------ --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Gross Revenues ....................................... 336,886 829,398 439,382 127,067
Profit on sale of properties ........................ 0 0 0 0
Less:
Losses from operating partnerships (1) ............... (28) (1,036,291) (2,784,673) (3,778,516)
Operating Expenses (3) .............................. (235,117) (887,168) (916,841) (796,626)
Interest Expense .................................... 0 0 0 0
Depreciation (2) .................................... 0 (49,388) (44,630) (61,532)
Net Income--GAAP Basis .............................. 101,741 (1,143,449) (3,306,762) (4,509,607)
Taxable Income
from operations (4) ................................. (87,849) (965,261) (3,091,813) (3,170,159)
gain on sale ....................................... 0 0 0 0
Cash generated from operations (6) .................. (289,153) 118,350 184,664 (72,946)
Cash generated from sales ........................... 0 0 0 0
Cash generated from refinancing ..................... 0 0 0 0
Cash generated from operations, sales and
refinancing .......................................... (289,153) 118,350 184,664 (72,946)
Less: Cash distributions to investors
from operating cash flow ........................... 0 0 0 0
from sales and refinancing ........................... 0 0 0 0
from other .......................................... 0 0 0 0
Cash generated (deficiency) after cash
distributions ....................................... (289,153) 118,350 184,664 (72,946)
Less: Special items (not including sales and
refinancing) ....................................... 0 0 0 0
Cash generated (deficiency) after cash distributions
and special items .................................... (289,153) 118,350 184,664 (72,946)
Amount remaining invested in program properties ...... 98.45%
</TABLE>
<TABLE>
<CAPTION>
For the Tax Period Ended
Tax & Distribution Data Per $1,000 December 31,
invested on a Tax Basis (7) 1992 1993 1994 1995 1996
------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C>
Federal Income Tax Results
Federal Credit (5) ............... 14 44 86 137 141
State Credit ..................... 0 0 0 0 0
Ordinary Income (loss) ......... (2) (18) (57) (58) (81)
from operations ............... (2) (18) (57) (58) (81)
from recapture .................. 0 0 0 0 0
Capital gain (loss) ............ 0 0 0 0 0
</TABLE>
S-41
<PAGE>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
From Opening Through March 31, 1996
PUBLIC OFFERINGS CLOSED DURING 1993
BOSTON CAPITAL TAX CREDIT FUND III L.P. (Series 17)
<TABLE>
<CAPTION>
For the Financial Statement period ended March 31,
1993 1994 1995 1996
----------- --------------- --------------- ---------------
<S> <C> <C> <C> <C>
Gross Revenues ....................................... 15,671 760,875 511,745 85,172
Profit on sale of properties ........................ 0 0 0 0
Less:
Losses from operating partnerships (1) ............... 0 (1,050,293) (2,744,283) (3,144,888)
Operating Expenses (3) .............................. (3,740) (532,872) (769,308) (656,306)
Interest Expense .................................... 0 0 0 0
Depreciation (2) .................................... 0 (36,167) (39,729) (55,408)
Net Income--GAAP Basis .............................. 11,931 (858,457) (3,041,575) (3,771,430)
Taxable Income
from operations (4) ................................. 0 (438,751) (2,196,498) (3,317,529)
gain on sale ....................................... 0 0 0 0
Cash generated from operations (6) .................. (67,817) 77,060 102,182 85,170
Cash generated from sales ........................... 0 0 0 0
Cash generated from refinancing ..................... 0 0 0 0
Cash generated from operations, sales and
refinancing .......................................... (67,817) 77,060 102,182 85,170
Less: Cash distributions to investors
from operating cash flow ........................... 0 0 0 0
from sales and refinancing ........................... 0 0 0 0
from other .......................................... 0 0 0 0
Cash generated (deficiency) after cash
distributions ....................................... (67,817) 77,060 102,182 85,170
Less: Special items (not including sales and
refinancing) ....................................... 0 0 0 0
Cash generated (deficiency) after cash distributions
and special items .................................... (67,817) 77,060 102,182 85,170
Amount remaining invested in program properties ...... 98.58%
</TABLE>
<TABLE>
<CAPTION>
For the Tax Period Ended
December 31,
Tax & Distribution Data Per $1,000
invested on a Tax Basis (7) 1992 1993 1994 1995 1996
------- ------- ------- ------- ------
<S> <C> <C> <C> <C> <C>
Federal Income Tax Results
Federal Credit (5) ............... 0 24 83 134 140
State Credit ..................... 0 0 0 0 0
Ordinary Income (loss) ......... 0 (9) (44) (66) (87)
from operations ............... 0 (9) (44) (66) (87)
from recapture .................. 0 0 0 0 0
Capital gain (loss) ............ 0 0 0 0 0
</TABLE>
S-42
<PAGE>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
From Opening Through March 31, 1996
PUBLIC OFFERINGS CLOSED DURING 1993
BOSTON CAPITAL TAX CREDIT FUND III L.P. (Series 18)
<TABLE>
<CAPTION>
For the Financial Statement period ended March 31,
1994 1995 1996
------------- --------------- ---------------
<S> <C> <C> <C>
Gross Revenues ....................................... 401,039 509,945 139,504
Profit on sale of properties ........................ 0 0 0
Less:
Losses from operating partnerships (1) ............ (183,664) (1,201,623) (2,451,672)
Operating Expenses (3) .............................. (230,286) (541,876) (470,468)
Interest Expense .................................... 0 0 0
Depreciation (2) .................................... (8,588) (30,673) (42,298)
Net Income--GAAP Basis .............................. (21,499) (1,264,227) (2,824,934)
Taxable Income
from operations (4) ................................. 65,999 (804,258) (2,392,927)
gain on sale ....................................... 0 0 0
Cash generated from operations (6) .................. (32,403) 548,415 (87,238)
Cash generated from sales ........................... 0 0 0
Cash generated from refinancing ..................... 0 0 0
Cash generated from operations, sales and
refinancing ....................................... (32,403) 548,415 (87,238)
Less: Cash distributions to investors
from operating cash flow ........................... 0 0 0
from sales and refinancing ........................ 0 0 0
from other .......................................... 0 0 0
Cash generated (deficiency) after cash
distributions ....................................... (32,403) 548,415 (87,238)
Less: Special items (not including sales and
refinancing) ....................................... 0 0 0
Cash generated (deficiency) after cash distributions
and special items ................................. (32,403) 548,415 (87,238)
Amount remaining invested in program properties ...... 99.29%
</TABLE>
<TABLE>
<CAPTION>
For the Tax Period Ended
December 31,
Tax & Distribution Data Per $1,000
invested on a Tax Basis (7) 1993 1994 1995 1996
------- ------- ------- ------
<S> <C> <C> <C> <C>
Federal Income Tax Results
Federal Credit (5) ............... 0 73 127 133
State Credit ..................... 0 0 0 0
Ordinary Income (loss) ......... 0 (22) (66) (89)
from operations ............... 0 (22) (66) (89)
from recapture .................. 0 0 0 0
Capital gain (loss) ............ 0 0 0 0
</TABLE>
S-43
<PAGE>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
From Opening Through March 31, 1996
PUBLIC OFFERINGS CLOSED DURING 1993
BOSTON CAPITAL TAX CREDIT FUND III L.P. (Series 19)
<TABLE>
<CAPTION>
For the Financial Statement period ended March
31,
1994 1995 1996
------------ --------------- ---------------
<S> <C> <C> <C>
Gross Revenues ....................................... 191,686 663,275 490,352
Profit on sale of properties ........................ 0 0 0
Less:
Losses from operating partnerships (1) ............... (3,858) (1,115,590) (1,858,752)
Operating Expenses (3) .............................. (152,566) (728,647) (550,424)
Interest Expense .................................... 0 0 0
Depreciation (2) .................................... (5,350) (27,291) (50,726)
Net Income--GAAP Basis .............................. 29,912 (1,208,253) (1,969,550)
Taxable Income
from operations (4) ................................. (4,184) (468,951) (3,017,243)
gain on sale ....................................... 0 0 0
Cash generated from operations (6) .................. (140,802) (517,316) 37,527
Cash generated from sales ........................... 0 0 0
Cash generated from refinancing ..................... 0 0 0
Cash generated from operations, sales and
refinancing .......................................... (140,802) (517,316) 37,527
Less: Cash distributions to investors
from operating cash flow ........................... 0 0 0
from sales and refinancing ........................... 0 0 0
from other .......................................... 0 0 0
Cash generated (deficiency) after cash
distributions ....................................... (140,802) (517,316) 37,527
Less: Special items (not including sales and
refinancing) ....................................... 0 0 0
Cash generated (deficiency) after cash distributions
and special items .................................... (140,802) (517,316) 37,527
Amount remaining invested in program properties ...... 97.62%
</TABLE>
<TABLE>
<CAPTION>
For the Tax Period Ended
December 31,
Tax & Distribution Data Per $1,000
invested on a Tax Basis (7) 1993 1994 1995 1996
------- ------- ------- ------
<S> <C> <C> <C> <C>
Federal Income Tax Results
Federal Credit (5) ............... 0 18 101 124
State Credit ..................... 0 0 0 0
Ordinary Income (loss) ......... 0 (11) (73) (97)
from operations ............... 0 (11) (73) (97)
from recapture .................. 0 0 0 0
Capital gain (loss) ............ 0 0 0 0
</TABLE>
S-44
<PAGE>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
From Opening Through March 31, 1996
PUBLIC OFFERINGS CLOSED DURING 1994
BOSTON CAPITAL TAX CREDIT FUND IV L.P. (Series 20)
<TABLE>
<CAPTION>
For the Financial Statement period ended
March 31,
1994 1995 1996
----------- ------------- ---------------
<S> <C> <C> <C>
Gross Revenues ....................................... 8,065 231,414 151,206
Profit on sale of properties ........................ 0 0 0
Less:
Losses from operating partnerships (1) ............... 0 (544,795) (2,804,393)
Operating Expenses (3) .............................. (5,561) (483,018) (438,912)
Interest Expense .................................... 0 0 0
Depreciation (2) .................................... 0 (15,470) (23,285)
Net Income--GAAP Basis .............................. 2,504 (811,869) (3,115,384)
Taxable Income
from operations (4) ................................. 0 (399,908) (3,063,829)
gain on sale ....................................... 0 0 0
Cash generated from operations (6) .................. (753,574) (608,238) 87,374
Cash generated from sales ........................... 0 0 0
Cash generated from refinancing ..................... 0 0 0
Cash generated from operations, sales and
refinancing .......................................... (753,574) (608,238) 87,374
Less: Cash distributions to investors
from operating cash flow ........................... 0 0 0
from sales and refinancing ........................... 0 0 0
from other .......................................... 0 0 0
Cash generated (deficiency) after cash
distributions ....................................... (753,574) (608,238) 87,374
Less: Special items (not including sales and
refinancing) ....................................... 0 0 0
Cash generated (deficiency) after cash distributions
and special items .................................... (753,574) (608,238) 87,374
Amount remaining invested in program properties ...... 99.69%
</TABLE>
<TABLE>
<CAPTION>
For the Tax period ended
December 31,
Tax & Distribution Data Per $1,000
invested on a Tax Basis (7) 1993 1994 1995 1996
------- ------- ------- ------
<S> <C> <C> <C> <C>
Federal Income Tax Results
Federal Credit (5) ............... 0 20 83 132
State Credit ..................... 0 0 0 0
Ordinary Income (loss) ......... 0 (10) (78) (68)
from operations ............... 0 (10) (78) (68)
from recapture .................. 0 0 0 0
Capital gain (loss) ............ 0 0 0 0
</TABLE>
S-45
<PAGE>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
From Opening Through March 31, 1996
PUBLIC OFFERINGS CLOSED DURING 1994
BOSTON CAPITAL TAX CREDIT FUND IV L.P. (Series 21)
<TABLE>
<CAPTION>
For the Financial
Statement period ended
March 31,
1995 1996
------------- -------------
<S> <C> <C>
Gross Revenues ................................................ 77,548 109,287
Profit on sale of properties .................................... 0 0
Less:
Losses from operating partnerships (1) ........................ (277,472) (902,586)
Operating Expenses (3) ....................................... (179,938) (295,327)
Interest Expense ............................................. 0 0
Depreciation (2) ............................................. (5,395) (16,968)
Net Income--GAAP Basis .......................................... (385,257) (1,105,594)
Taxable Income
from operations (4) .......................................... (55,555) (563,052)
gain on sale ................................................... 0 0
Cash generated from operations (6) .............................. (1,071,123) 828,821
Cash generated from sales ....................................... 0 0
Cash generated from refinancing ................................. 0 0
Cash generated from operations, sales and refinancing ......... (1,071,123) 828,821
Less: Cash distributions to investors
from operating cash flow ....................................... 0 0
from sales and refinancing .................................... 0 0
from other ................................................... 0 0
Cash generated (deficiency) after cash distributions ............ (1,071,123) 828,821
Less: Special items (not including sales and refinancing) ...... 0 0
Cash generated (deficiency) after cash distributions
and special items ............................................. (1,071,123) 828,821
Amount remaining invested in program properties ............... 96.22%
</TABLE>
<TABLE>
<CAPTION>
For the Tax period ended
December 31,
Tax & Distribution Data Per $1,000
invested on a Tax Basis (7) 1994 1995 1996
------- ------- ------
<S> <C> <C> <C>
Federal Income Tax Results
Federal Credit (5) ............... 0 34 91
State Credit ..................... 0 0 0
Ordinary Income (loss) ......... (3) (29) (72)
from operations ............... (3) (29) (72)
from recapture .................. 0 0 0
Capital gain (loss) ............ 0 0 0
</TABLE>
S-46
<PAGE>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
From Opening Through March 31, 1996
PUBLIC OFFERINGS CLOSED DURING 1994
BOSTON CAPITAL TAX CREDIT FUND IV L.P. (Series 22)
<TABLE>
<CAPTION>
For the Financial
Statement period ended March 31,
1995 1996
--------------- ---------------
<S> <C> <C>
Gross Revenues ................................................ 25,984 93,986
Profit on sale of properties .................................... 0 0
Less:
Losses from operating partnerships (1) ........................ (62,112) (1,155,551)
Operating Expenses (3) ....................................... (93,965) (312,736)
Interest Expense ............................................. 0 0
Depreciation (2) ................................................ (4,295) (12,538)
Net Income--GAAP Basis .......................................... (134,388) (1,386,839)
Taxable Income
from operations (4) .......................................... (36,367) (1,179,491)
gain on sale ................................................... 0 0
Cash generated from operations (6) .............................. (3,300,628) 3,087,382
Cash generated from sales ....................................... 0 0
Cash generated from refinancing ................................. 0 0
Cash generated from operations, sales and refinancing ......... (3,300,628) 3,087,382
Less: Cash distributions to investors
from operating cash flow ....................................... 0 0
from sales and refinancing .................................... 0 0
from other ................................................... 0 0
Cash generated (deficiency) after cash distributions ............ (3,300,628) 3,087,382
Less: Special items (not including sales and refinancing) ...... 0 0
Cash generated (deficiency) after cash distributions
and special items ............................................. (3,300,628) 3,087,382
Amount remaining invested in program properties ............... 98.68%
</TABLE>
<TABLE>
<CAPTION>
For the Tax period ended
December 31,
Tax & Distribution Data Per $1,000
invested on a Tax Basis (7) 1994 1995 1996
------- ------- ------
<S> <C> <C> <C>
Federal Income Tax Results
Federal Credit (5) ............... 0 46 100
State Credit ..................... 0 0 0
Ordinary Income (loss) ......... (1) (45) (75)
from operations ............... (1) (45) (75)
from recapture .................. 0 0 0
Capital gain (loss) ............ 0 0 0
</TABLE>
S-47
<PAGE>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
From Opening Through March 31, 1996
PUBLIC OFFERINGS CLOSED DURING 1995
BOSTON CAPITAL TAX CREDIT FUND IV L.P. (Series 23)
<TABLE>
<CAPTION>
For the Financial
Statement period ended March
31,
1995 1996
------------ -------------
<S> <C> <C>
Gross Revenues ................................................ 9,097 395,171
Profit on sale of properties .................................... 0 0
Less:
Losses from operating partnerships (1) ........................ (18,054) (483,614)
Operating Expenses (3) ....................................... 0 (447,957)
Interest Expense ............................................. 0 0
Depreciation (2) ............................................. 0 (9,804)
Net Income--GAAP Basis .......................................... (8,957) (546,204)
Taxable Income
from operations (4) .......................................... 0 (348,385)
gain on sale ................................................... 0 0
Cash generated from operations (6) .............................. 11,841 (410,825)
Cash generated from sales ....................................... 0 0
Cash generated from refinancing ................................. 0 0
Cash generated from operations, sales and refinancing ......... 11,841 (410,825)
Less: Cash distributions to investors
from operating cash flow ....................................... 0 0
from sales and refinancing .................................... 0 0
from other ................................................... 0 0
Cash generated (deficiency) after cash distributions ............ 11,841 (410,825)
Less: Special items (not including sales and refinancing) ...... 0 0
Cash generated (deficiency) after cash distributions
and special items ............................................. 11,841 (410,825)
Amount remaining invested in program properties ............... 98.76%
</TABLE>
<TABLE>
<CAPTION>
For the Tax period ended
December 31,
Tax & Distribution Data Per $1,000
invested on a Tax Basis (7) 1994 1995 1996
------- ------- ------
<S> <C> <C> <C>
Federal Income Tax Results
Federal Credit (5) ............... 0 31 90
State Credit ..................... 0 0 0
Ordinary Income (loss) ......... 0 (13) (76)
from operations ............... 0 (13) (76)
from recapture .................. 0 0 0
Capital gain (loss) ............ 0 0 0
</TABLE>
S-48
<PAGE>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
From Opening Through March 31, 1996
PUBLIC OFFERINGS CLOSED DURING 1995
BOSTON CAPITAL TAX CREDIT FUND IV L.P. (Series 24)
<TABLE>
<CAPTION>
For the Financial
Statement period ended
March 31, 1996
-----------------------
<S> <C>
Gross Revenues ......................................................... 139,594
Profit on sale of properties .......................................... 0
Less:
Losses from operating partnerships (1) .............................. (149,023)
Operating Expenses (3) ................................................ (128,659)
Interest Expense ...................................................... 0
Depreciation (2) ...................................................... (5,769)
Net Income--GAAP Basis ................................................ (143,857)
Taxable Income
from operations (4) ................................................... (205,977)
gain on sale ......................................................... 0
Cash generated from operations (6) .................................... 102,553
Cash generated from sales ............................................. 0
Cash generated from refinancing ....................................... 0
Cash generated from operations, sales and refinancing .................. 102,553
Less: Cash distributions to investors
from operating cash flow ............................................. 0
from sales and refinancing .......................................... 0
from other ............................................................ 0
Cash generated (deficiency) after cash distributions .................. 102,553
Less: Special items (not including sales and refinancing) ............ 0
Cash generated (deficiency) after cash distributions and special items 102,553
Amount remaining invested in program properties ........................ 99.37%
</TABLE>
<TABLE>
<CAPTION>
For the Tax
period ended
December 31,
Tax & Distribution Data Per $1,000
invested on a Tax Basis (7) 1995 1996
------- ------
<S> <C> <C>
Federal Income Tax Results
Federal Credit (5) ............... 11 50
State Credit ..................... 0 0
Ordinary Income (loss) ......... (8) (56)
from operations ............... (8) (56)
from recapture .................. 0 0
Capital gain (loss) ............ 0 0
</TABLE>
S-49
<PAGE>
TABLE III
OPERATING RESULTS OF PRIOR LIMITED PARTNERSHIPS
From Opening Through March 31, 1996
PUBLIC OFFERINGS CLOSED DURING 1995
BOSTON CAPITAL TAX CREDIT FUND IV L.P. (Series 25, 26, 27, and 28)
<TABLE>
<CAPTION>
For the Financial Statement period ended March 31,
--------------------------------------------------
1996 1997
------------------------- ------------------------
Series 25 Series 26 Series 27 Series 28
------------ ------------ ------------ -----------
<S> <C> <C> <C> <C>
Gross Revenues ............................................. 130,046 8,666 N/A* N/A*
Profit on sale of properties .............................. 0 0 N/A* N/A*
Less:
Losses from operating partnerships (1) ..................... 22,315 0 N/A* N/A*
Operating Expenses (3) .................................... (109,194) (35,876) N/A* N/A*
Interest Expense .......................................... 0 0 N/A* N/A*
Depreciation (2) .......................................... (2,622) 0 N/A* N/A*
Net Income--GAAP Basis .................................... 40,545 (27,210) N/A* N/A*
Taxable Income
from operations (4) ....................................... 10,287 0 N/A* N/A*
gain on sale ............................................. 0 0 N/A* N/A*
Cash generated from operations (6) ........................ (177,485) (13,967) N/A* N/A*
Cash generated from sales ................................. 0 0 N/A* N/A*
Cash generated from refinancing ........................... 0 0 N/A* N/A*
Cash generated from operations, sales and refinancing ...... (177,485) (13,967) N/A* N/A*
Less: Cash distributions to investors
from operating cash flow ................................. 0 0 N/A* N/A*
from sales and refinancing ................................. 0 0 N/A* N/A*
from other ................................................ 0 0 N/A* N/A*
Cash generated (deficiency) after cash distributions ...... (177,485) (13,967) N/A* N/A*
Less: Special items (not including sales and refinancing) . 0 0 N/A* N/A*
Cash generated (deficiency) after cash distributions and
special items ............................................. (177,485) (13,967) N/A* N/A*
Amount remaining invested in program properties ............ 99.87% 99.99% 100% 100%
</TABLE>
<TABLE>
<CAPTION>
Tax & Distribution Data Per $1,000
invested on a Tax Basis (7) For the Tax period ended December 31,
1996
---------------------------------------
<S> <C> <C> <C> <C>
Federal Income Tax Results
Federal Credit (5) ............... 13 21 8 0
State Credit ..................... 0 0 0 0
Ordinary Income (loss) ......... (23) (25) (9) (2)
from operations ............... (23) (25) (9) (2)
from recapture .................. 0 0 0 0
Capital gain (loss) ............ 0 0 0 0
</TABLE>
*N/A Information not available at time of printing.
S-50
<PAGE>
NOTES TO TABLE III
Note 1: This figure represents the GAAP income (loss) allocable to the public
investment partnerships from their investment in operating partnerships. The
GAAP income (loss) is gross rental income less ordinary operating expenses,
interest expense, depreciation and certain non-recurring fees, such as loan
guarantee fees, lease-up fees and partnership management fees paid by the
operating partnerships.
Note 2: This figure represents the amortization by the investment partnerships
of its organization expense over a 60-month period commencing in the month
initial investor admission occurs. For some series it also represents
amortization by the investment partnership of acquisition expenses over a 380
month period commencing April 1, 1996.
Note 3: Operating expenses consist of investor service costs and legal and
accounting fees of the investment partnerships and expenses paid from equity
which includes partnership management fees, initial investor service fees and
capital commitment fees reported on an accrual basis.
Note 4: The taxable income (losses) for the investment partnerships represent
losses from Operating Partnerships which in turn consist substantially of
depreciation and mortgage interest.
Note 5: Federal credits include low-income housing tax credits and historic tax
credits.
Note 6: Cash generated from operations is the net income (loss), net of non-cash
expenses, adjusted for changes in accounts receivable and payable and
distributions received from the operating partnerships.
Note 7: Federal low-income housing tax credits and historic tax credits and
taxable income (loss), per $1,000 invested represents the limited partners'
allocable share of such items divided by the capital contributed by the limited
partners divided by $1,000. This information is presented on a Tax basis and not
a GAAP basis.
S-51
<PAGE>
TABLE III-A
Table III-A summarizes the actual Tax Credit results during the period January
1, 1987 through December 31, 1996, of the 7 public partnerships sponsored by
Affiliates of the General Partner.
<TABLE>
<CAPTION>
Final Actual Tax Credits (%)3&4
Closing -----------------------------------------------------------------------
Program Equity Raised Date 1987 1988 1989 19901 1991 1992 1993 1994 1995 1996
- --------------------- ---------------- -------- ------ ------- ------- -------- ------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AAH I ............ $ 2,779,000 Dec. 1987 14.2 12.8 14.3 21.6 13.3 13.3 13.3 13.3 10.8 9.6
AAH II ............ 26,501,000 Sep. 1988 5.2 11.7 20.9 13.2 13.2 13.2 13.2 11.5 13.1
AAH III (CA)(2)...... 4,425,000 Sep. 1988 5.6 20.5 30.2 23.8 15.9 12.8 11.6 11.3 11.1
BCTC 1 ............ 12,999,000 Dec. 1988 .9 11.0 22.0 14.2 14.2 14.2 14.2 14.2 14.2
BCTC 2 (CA)(2)...... 8,303,000 Apr. 1989 4.2 24.8 29.5 27.0 17.1 11.1 10.5 10.2
BCTC 3 ............ 28,822,000 May 1989 12.0 18.5 12.9 12.9 12.9 12.9 12.9 12.9
BCTC 4 ............ 29,788,160 Jun. 1989 7.8 17.4 13.9 12.6 12.6 12.4 12.4 12.4
BCTC 5 (CA)(2) ...... 4,899,000 Jul. 1989 7.0 24.1 25.2 21.5 15.2 11.1 10.7 10.4
BCTC 6 ............ 12,935,780 Sep. 1989 2.9 15.3 14.9 13.5 13.1 13.0 13.0 13.0
BCTC II 7 ......... 10,361,000 Dec. 1989 6.2 11.9 17.1 11.9 12.1 12.2 12.2 12.2
BCTC II 9 ......... 41,574,018 May 1990 9.3 11.6 11.9 12.5 13.5 13.7 13.8
BCTC II 10 ......... 24,288,998 Aug. 1990 3.1 10.4 12.0 14.1 14.6 14.8 14.7
BCTC II 11 ......... 24,735,003 Dec. 1990 4.5 7.9 12.3 12.8 13.3 13.3 13.3
BCTC II 12 ......... 29,710,003 May 1991 4.7 11.0 12.1 14.3 14.8 14.7
BCTC II 14 ......... 55,728,996 Dec. 1991 3.8 9.1 12.5 14.0 14.4 14.5
BCTC III 15 ...... 38,705,000 Jun. 1992 3.1 9.2 13.4 14.4 14.8
BCTC III 16 ...... 54,293,000 Dec. 1992 1.4 4.4 8.6 13.9 14.2
BCTC III 17 ...... 50,000,000 May 1993 3.2 8.3 13.6 14.1
BCTC III 18 ...... 36,162,000 Oct. 1993 .1 7.3 12.8 13.4
BCTC III 19 ......... 40,800,000 Dec. 1993 1.8 10.2 12.6
BCTC IV 20 ......... 38,667,000 Jun. 1994 2.3 8.4 13.4
BCTC IV 21 ......... 18,927,000 Sep. 1994 3.5 9.2
BCTC IV 22 ......... 25,644,000 Dec. 1994 4.6 10.4
BCTC IV 23 ......... 33,366,000 Jun. 1995 3.1 9.1
BCTC IV 24 ......... 21,697,000 Sep. 1995 1.7 5.1
BCTC IV 25 ......... 30,248,000 Dec. 1995 1.4
BCTC IV 26(5)........ 39,959,000 Jun. 1996 2.6
BCTC IV 27(5) ....... 24,607,000 Sep. 1996 0.9
-------------
TOTAL ............... $770,924,858
<CAPTION>
Overall Tax
Cumulative time Credit
Program Cumulative invested thru 1996 Objective
- -------------------------------- --------------------- -------------
<S> <C> <C> <C>
AAH I ............ 136.5 9 yrs. 130-150
AAH II ............ 115.2 8 yrs. 3 mos. 130-150
AAH III (CA)(2)...... 142.8 8 yrs. 3 mos. 170
BCTC 1 ............ 119.1 8 yrs. 130-150
BCTC 2 (CA)(2) ...... 134.4 7 yrs. 8 mos. 170
BCTC 3 ............ 107.9 7 yrs. 7 mos. 130-150
BCTC 4 ............ 101.5 7 yrs. 6 mos. 130-150
BCTC 5 (CA)(2) ...... 125.2 7 yrs. 5 mos. 150-170
BCTC 6 ............ 98.7 7 yrs. 3 mos. 130-150
BCTC II 7 ......... 95.8 7 yrs. 130-140
BCTC II 9 ......... 86.3 6 yrs. 7 mos. 130-150
BCTC II 10 ......... 83.7 6 yrs. 4 mos. 130-150
BCTC II 11 ......... 77.4 6 yrs. 130-150
BCTC II 12 ......... 71.6 5 yrs. 7 mos. 140-160
BCTC II 14 ......... 68.3 5 yrs. 140-160
BCTC III 15 ...... 54.9 4 yrs. 6 mos. 140-160
BCTC III 16 ...... 42.5 4 yrs. 140-160
BCTC III 17 ...... 39.2 3 yrs. 7 mos. 140-160
BCTC III 18 ...... 33.6 3 yrs. 2 mos. 140-160
BCTC III 19 ......... 24.6 3 yrs. 140-160
BCTC IV 20 ......... 24.1 2 yr. 6 mos. 130-150
BCTC IV 21 ......... 12.7 2 yr. 3 mos. 130-150
BCTC IV 22 ......... 15.0 2 yrs. 130-150
BCTC IV 23 ......... 12.2 1 yr. 6 mos. 130-150
BCTC IV 24 ......... 6.8 1 yr. 3 mos. 130-150
BCTC IV 25 ......... 1.4 1yr. 130-150
BCTC IV 26(5)........ 2.6 6 mos. 120-140
BCTC IV 27(5) ...... 0.9 3 mos. 120-140
</TABLE>
S-52
<PAGE>
NOTES TO TABLE III-A
(1) The 1990 results reflect, where applicable, the election available to
partnerships owning interests in properties qualifying for Federal Housing
Tax Credits pursuant to the 1990 Omnibus Budget Reconciliation Act which
enables individual investors who held an interest in those partnerships
prior to October 31, 1990, to utilize only in 1990 up to 150% of the annual
Federal Housing Tax Credit, otherwise allowable for 1990. Where this
election was made, the annual Federal Housing Tax Credit for 1990, 1991 and
1992 has been reduced by the 50% bonus ratably and will continue to be
reduced over the remaining years of the credit period.
(2) These programs offered both California and Federal Housing Tax Credits.
(3) Each investor's first year yield may vary slightly based upon actual date of
investor admission.
(4) The only material benefit from these programs may be Tax Credits which may
mean that a material portion of each Tax Credit may represent a return of
the money originally invested if there is not enough money from the sale or
refinancing of the respective apartment complexes to return each investor's
capital contribution.
(5) As with all programs less than one year old, these returns are for a partial
year.
AAH is American Affordable Housing.
BCTC is Boston Capital Tax Credit Fund.
BCTC II is Boston Capital Tax Credit Fund II.
BCTC III is Boston Capital Tax Credit Fund III.
BCTC IV is Boston Capital Tax Credit Fund IV.
S-53
<PAGE>
Management
The disclosure under the section of the Prospectus entitled "Management" on
page 89 under the subheading "Herbert F. Collins" incorrectly states that Mr.
Collins currently serves as Chairman of the Massachusetts Housing Policy
Commission. Mr. Collins was Chairman in 1992 only.
* * * * * * * *
FOR NEBRASKA INVESTORS ONLY:
The Fund may not complete a sale of BACs to an Investor until at least five
business days after the Investor receives a final Prospectus.
FOR NEW HAMPSHIRE INVESTORS ONLY:
The Suitability requirements for New Hampshire residents on page 22 of the
Prospectus are hereby superseded by the following:
Additional Suitability Requirements: (1) minimum annual gross taxable
income of at least $50,000 and a net worth (excluding home, home furnishings and
automobiles) of not less than $125,000 or (2) a net worth (exclusive of home,
home furnishings and automobiles) of not less than $250,000.
FOR MASSACHUSETTS INVESTORS ONLY:
Sales of BACs are not deemed completed until five days after an Investor
has received the Prospectus, and an Investor may receive a refund of his/her
subscription within said five day period.
S-54
