MAY 1, 1998 Y
SUPPLEMENT NO. 1 TO PROSPECTUS FOR
BOSTON CAPITAL TAX CREDIT FUND IV L.P.
DATED
MAY 1, 1998
(SUPPLEMENT OFFERING BCTC IV SERIES 32 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.
Results of BCTC IV Series 31
The Fund received orders for a total of 4,430,551 BACs ($44,203,750) with
respect to Series 31, and issued the last of such Series 31 BACs on January 18,
1998. The aggregate fees paid as of January 18, 1998 to the General Partner and
Affiliates with respect to Series 31 were $5,178,859. No additional BACs will
be offered with respect to Series 31. The Fund has issued a total of 38,387,203
BACs, raised $383,786,500 and admitted 22,398 Investors with respect to Series
20 through 31 and may still sell up to $226,213,500 to the public if all the
BACs in Series 32 are sold. (See "Prior Performance of the General Partner and
its Affiliates" in the Prospectus for information about Series 20 through 28.)
Offering of BCTC IV Series 32
The Fund is offering, effective January 19, 1998, the thirteenth series of
BACs ("Series 32") 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. In addition, of each
dollar raised by Series 32, approximately 72% to 73% will be used for
investments in Apartment Complexes, and about one-half of the balance will be
used to pay fees and expenses to the General Partner or its Affiliates. (See
"Estimated Use of Proceeds," and "Compensation and Fees" in the Prospectus.)
The offering of BACs in Series 32 will not exceed 12 months.
THE PURCHASE OF BACS IN SERIES 32 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 32, limited
partnership interests in the eighteen (18) 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 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 $1.00 to $1.20
per BAC annually in Series 32, which would be the equivalent of an approximate
10%-12% annual Tax Credit as a percentage of capital invested, for the ten year
credit period applicable to each Apartment Complex in which
<PAGE>
Series 32 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.
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 4%-6%
(approximately 4.7%-9.9% taxable internal rate of return) 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 a 10%-12% 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 32): $100-$200 in 1998, $400-$600 in 1999; $1,000-$1,200 in 2000-2008
and $500-$700 in 2009. 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 32 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 32
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 32.
While the General Partner believes that the Fund, on behalf of Series 32,
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
S-2
<PAGE>
in these Apartment Complexes or under the described investment terms in
deciding whether to invest in the Fund. If the entire $40 million is raised for
Series 32, the anticipated acquisition of the Operating Partnership Interests,
described hereinafter, will represent approximately 95% of the total money
which the Fund currently expects to spend on behalf of Series 32.
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Since Series 32 is currently in the offering phase, it has no material
assets or any operating history. The eighteen (18) 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. Alexander Place L.P. M. Riemer Calhoun Jr.
(the "Alexander Partnership")
2. Community Organization Giving Individual Care L.P. Larry A. Swank
(the "Benton Village Partnership")
3. Carriage Pointe L.P. Matzel & Mumford
(the "Carriage Pointe Partnership")
4. Chardonnay L.P. Carlyle MacHarg III
(the "Chardonnay Partnership")
5. Clear Creek L.P. Michael Jacobson
(the "Clear Creek Partnership") Housing Development Corporation
6. Courtside L.P. Campbell-Hogue & Associates
(the "Courtside Partnership")
7. Dickinson Heights L.P. MetroPlains Development Inc.
(the "Dickinson Partnership")
8. Howard Park L.P. Lovey Clayton
(the "Howard Park Partnership") David Clayton
9. Kiest Townhouses L.P. Luxar Development Corporation
(the "Kiest Partnership")
10. Inver Grove Heights L.P. MetroPlains Development Inc.
(the "Lakes Partnership")
11. Maple Ridge L.P. Maple Ridge LLC
(the "Maple Ridge Partnership")
12. Maple Woods L.P. John Harpole
(the "Maple Woods Partnership") Maple Woods LLC
13. Martinsville L.P. Parkside Associates
(the "Martinsville Partnership") Hatfield Housing Company
14. East Bridge Street L.P. Mill Development Corporation
(the "Mill Partnership")
15. Pearlwood L.P. Resource Foundation, Inc.
(the "Pearlwood Partnership") Riemer Calhoun, Jr.
</TABLE>
S-3
<PAGE>
Partnership General Partner(s)
- ---------------------------------------- ---------------------------
16. Sayreville Senior Housing L.P. Sayreville Seniors Housing
(the "Sayreville Partnership") Corporation
17. Westview Terrace L.P. Joseph M. Cloutier
(the "Westview Partnership") Realty Resources Chartered
18. Woodhaven L.P. Woodhaven Partners
(the "Woodhaven Partnership")
Permanent Mortgage Loan financing for the Apartment Complexes described
herein is being or will be provided from a variety of sources, as described
below. 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 32 is $1.10 per BAC (11%). (See
"Glossary" at page 162 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
Basic
Location of Number Monthly(1)
Partnership Name Property of Units Rents
------------------ ------------------- ---------- ------------
1. Alexander Alexander, 32 $230 1BR
Partnership Louisiana $270 2BR
2. Benton Village Benton Harbor, 136 $260-
Partnership Michigan $340 1BR
$312-
$407 2BR
$362-
$472 3BR
3. Carriage Pointe Old Bridge, 18 $602 1 BR
Partnership New Jersey $566-
$779 2BR
4. Chardonnay Oklahoma City, 14 $299-
Partnership Oklahoma $385 1BR
$349-
$550 2BR
5. Clear Creek North Manchester, 64 $230 1BR
Partnership Indiana $260 2BR
$285 3BR
6. Courtside Cottonwood, 44 $153-
Partnership Arizona $378 2BR
$436 3BR
7. Dickinson Dickinson, 32 $300 1BR
Partnership North Dakota $310 2BR
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Government Permanent Mortgage Annual Annual
Assistance Mortgage Interest Reserve Management Management
Anticipated Loan(3) Rate Amount Agent Fee
-------------------- -------------------- --------------- --------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
1. Home Investment Hibernia 9% $ 6,400 TF Management 6% of net
Partnerships National Bank rental income
Program(b) $ 475,000(a)
(4) Louisiana 4%
Housing
Finance Agency
$ 500,000(b)
(4)
2. Community BCMC, Inc. 9% $23,800 Sterling 6% of net
Investment $2,532,000(a) Management rental income
Program(b) Michigan 4% Company
(5) Housing
Development
Authority
$2,400,000(b)
(5)
3. Federal Housing Amboy National 9.125% $ 3,600 Matzel & 6% of net
Tax Credits Bank Mumford Real rental income
$ 627,000(a) 8% Estate
Matzel &
Mumford
$ 490,000(b)
(6)
4. Federal Housing Bank of 10% $ 2,800 Orion 6% of net
Tax Credits Oklahoma, N.A. Management rental income
$ 90,000 Company
(7)
5. Section 538 Bank One, N.A. 7% $12,800 Garsten 6% of net
Rural Housing $1,620,000 Management rental income
Loan Guarantee (8)
Program (8)
6. Federal Housing Trust Company 9% $ 8,800 Campbell-Hogue 6% of net
Tax Credits of the West Management rental income
$ 877,000
(9)
7. FmHA Sec. 515 $ 950,000 1% (2) $ 8,000 MetroPlains $24 per
with 100% rental Management occupied unit
assistance per month
</TABLE>
S-5
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
Basic
Location of Number Monthly(1)
Partnership Name Property of Units Rents
------------------ --------------- ---------- ------------
8. Howard Park Florida City, 16 $237-
Partnership Florida $435 1BR
$291-
$531 2BR
$340-
$619 3BR
9. Kiest Dallas, 130 $483-
Partnership Texas $505 2BR
$559-
$605 3BR
$618-
$705 4BR
10. Lakes Inver Grove 28 $310 1BR
Partnership Heights, $340 2BR
Minnesota
11. Maple Ridge Chadron, 18 $290 1BR
Partnership Nebraska $318 2BR
12. Maple Woods Lebanon, 24 $270 2BR
Partnership Missouri $295 3BR
13. Martinsville Shelbyville, 13 $305 2BR
Partnership Kentucky $362 3BR
14. Mill Saugerties, 90 $437 0BR
Partnership New York $475 1BR
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
Government Permanent Mortgage Annual Annual
Assistance Mortgage Interest Reserve Management Management
Anticipated Loan(3) Rate Amount Agent Fee
------------------ ------------------- -------------- --------- ------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
8. State Apartment Florida 3% $ 4,000 Auburn 6% of net
Investment Loan Housing Management, rental income
Program(a) Finance Agency Inc.
State Housing $ 214,000(a)
Subsidy Targeted City of 3%
Trust Fund Florida City
Program(b) $ 115,000(b)
(10) (10)
9. Federal Housing Arbor National 9% $26,000 Affordable 6% of net
Tax Credits Mortgage Housing rental income
Company LLC Partnership
$3,240,000
(11)
10. FmHA Sec. 515 $1,700,000 1% (2) $ 7,000 MetroPlains $24 per
with 100% rental Management occupied unit
assistance per month
11. FmHA Sec. 515 $1,110,750 1% (2) $ 4,500 Arbor $24 per
with 100% rental Management occupied unit
assistance per month
12. Federal Housing Great Western 9% $ 4,800 Curry 6% of net
Tax Credits Bank, N.A. Management rental income
$ 360,000 Company
(12)
13. Home Investment Kentucky 6% $ 2,600 Hatfield 6% of net
Partnerships Housing Management rental income
Program Corporation
(13) $ 335,000
(13)
14. Secured Loan New York State 8.75% $18,000 Jobco 5% of net
Rental Housing Housing Management, rental income
Program(s) Finance Agency Inc.
Acquisition $2,174,000(a)
Rehabilitation New York State 1%
Loan Program(b) Housing Trust
(14) Fund
$ 600,000(b)
(14)
</TABLE>
S-6
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
Basic
Location of Number Monthly(1)
Partnership Name Property of Units Rents
------------------ ------------------ ---------- ------------
15. Pearlwood Pearl, 40 $288 1BR
Partnership Mississippi $434 2BR
$497 3BR
16. Sayreville Sayreville, 100 $525 1BR
Partnership New Jersey
17. Westview Springfield, 28 $258 1BR
Partnership Vermont $312 2BR
18. Woodhaven South Brunswick, 80 $455-
Partnership New Jersey $568 1BR
$638-
$751 2BR
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
Government Permanent Mortgage Annual Annual
Assistance Mortgage Interest Reserve Management Management
Anticipated Loan(3) Rate Amount Agent Fee
------------------ ------------------- -------------- --------- ------------ ----------------
<S> <C> <C> <C> <C> <C> <C>
15. HOME Bank One, N.A. 9% $ 8,000 Calhoun 6% of net
Investment $ 380,000(a) Property rental income
Partnerships Mississippi 1% Management
Program(b) Home
(15) Corporation
$ 500,000(b)
(15)
16. Federal Housing Amboy National 7% $20,000 Sayreville 6% of net
Tax Credits Bank Housing rental income
$3,491,000(a) 8% Authority
Gillette
Enterprises
$ 640,000(b)
(16)
17. FmHA Sec. 515 $1,050,000 1% (2) $ 7,000 Realty $22 per
with 100% rental Resources occupied unit
assistance Management per month
18. Federal Housing Amboy National 8.5% $20,000 Eastern 6% of net
Tax Credits Bank Properties rental income
$3,366,000
(17)
</TABLE>
(1) Exclusive of utilities, unless indicated otherwise.
(2) FmHA 515 loan with a term of 50 years and 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) (a) The terms of the Alexander Partnership's anticipated permanent first
mortgage loan in the amount of $475,000 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.
(b) The terms of the Alexander Partnership's anticipated permanent second
mortgage loan in the amount of $500,000 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.
(5) (a) The terms of the Benton Village Partnership's anticipated permanent
first mortgage loan in the amount of $2,532,000 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.
(b) The terms of the Benton Village Partnership's anticipated permanent
second mortgage loan in the amount of $2,400,000 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.
(6) (a) The terms of the Carriage Pointe Partnership's anticipated permanent
first mortgage loan in the amount of $627,000 are expected to include a
term of 15 years, an interest rate of 9.125% and payments of principal
and interest on the basis of a 15-year amortization schedule.
(b) The terms of the Carriage Pointe Partnership's anticipated permanent
second mortgage loan in the amount of $490,000 are expected to include
a term of 15 years, an interest rate of 8% and payments of principal
and interest on the basis of a 15-year amortization schedule.
(7) The terms of the Chardonnay Partnership's anticipated permanent first
mortgage loan in the amount of $90,000 are expected to include a term of
15 years, an interest rate of 10% and payments of principal and interest
on the basis of a 25-year amortization schedule.
S-7
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
(8) The terms of the Clear Creek Partnership's anticipated permanent first
mortgage loan in the amount of $1,620,000 are expected to include a term of
30 years, an interest rate of 7% and payments of principal and interest on
the basis of a 30-year amortization schedule.
(9) The terms of the Courtside Partnership's anticipated permanent first
mortgage loan in the amount of $877,000 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 Howard Park Partnership's anticipated permanent first
mortgage loan in the amount of $214,000 are expected to include a term
of 30 years, an interest rate of 3% and payments of interest only,
provided, however, that the terms of the permanent first mortgage loan
will provide for the deferral and accrual of payments of 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.
(b) The terms of the Howard Park Partnership's anticipated permanent second
mortgage loan in the amount of $115,000 are expected to include a term
of 30 years, an interest rate of 3% and payments of interest only,
provided, however, that the terms of the permanent second mortgage loan
will provide for the deferral and accrual of payments of 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) The terms of the Kiest Partnership's anticipated permanent first mortgage
loan in the amount of $3,240,000 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.
(12) The terms of the Maple Woods Partnership's anticipated permanent first
mortgage loan in the amount of $360,000 are expected to include a term of
25 years, an interest rate of 9% and payments of principal and interest on
the basis of a 25-year amortization schedule.
(13) The terms of the Martinsville Partnership's anticipated permanent first
mortgage loan in the amount of $335,000 are expected to include a term of
30 years, an interest rate of 6% and payments of principal and interest on
the basis of a 30-year amortization schedule, provided, however, that the
terms of the permanent first 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) (a) The terms of the Mill Partnership's anticipated permanent first
mortgage loan in the amount of $2,174,000 are expected to include a
term of 30 years, an interest rate of 8.75% and payments of principal
and interest on the basis of a 30 year amortization schedule.
(b) The terms of the Mill Partnership's anticipated permanent second
mortgage loan in the amount of $600,000 are expected to include a term
of 30 years, an interest rate of 1% 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.
(15) (a) The terms of the Pearlwood Partnership's anticipated permanent first
mortgage loan in the amount of $380,000 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 Pearlwood Partnership's anticipated permanent second
mortgage loan in the amount of $500,000 are expected to include a term
of 25 years, an interest rate of 1% and payments of principal and
interest on the basis of a 25 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
25-year term.
(16) (a) The terms of the Sayreville Partnership's anticipated permanent first
mortgage loan in the amount of $3,491,000 are expected to include a
term of 28 years, an interest rate of 7% and payments of principal and
interest on the basis of a 28-year amortization schedule.
(b) The terms of the Sayreville Partnership's anticipated permanent second
mortgage loan in the amount of $640,000 are expected to include a term
of 8 years, an interest rate of 8% and payments of principal and
interest on the basis of a 8-year amortization schedule.
(17) The terms of the Woodhaven Partnership's anticipated permanent first
mortgage loan in the amount of $3,366,000 are expected to include a term
of 5 years, an interest rate of 8.5% and payments of principal and
interest on the basis of a 30-year amortization schedule.
S-8
<PAGE>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS
Ownership
Interest (%)
Profits,
Losses, Operating
BCTC IV Credit/Net General
Partnership Capital Cash Partner
Name Contribution Flow/Backend Contribution
----------------- -------------- -------------- --------------
1. Alexander $ 881,892 99/50/50 $ 100
Partnership
2. Benton $3,279,500 50/10/15 $ 100
Village
Partnership
3. Carriage Pointe $1,007,593 99/50/50 $ 100
Partnership
4. Chardonnay $ 393,700 100/20/50 $150,000
Partnership
5. Clear Creek $2,296,664 100/25/50 $ 100
Partnership
6. Courtside $2,433,171 100/10/20 $ 100
Partnership
7. Dickinson $ 273,420 100/20/20 $ 17,380
Partnership
8. Howard Park $ 759,812 100/50/50 $ 100
Partnership
9. Kiest $3,947,107 50/15/15 $ 100
Partnership
10. Lakes $ 446,985 100/20/20 $ 24,130
Partnership
11. Maple Ridge $ 297,059 100/30/30 $ 18,750
Partnership
12. Maple Woods $ 519,022 100/50/50 $ 100
Partnership
<TABLE>
<CAPTION>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS
Fund's
Approximate
Average Development Annual
Annual Fee/Other Partnership Asset
Operating Operating Anticipated Distributions Management Management
Deficit Partnership's Federal to Operating Fee to Fee to Boston
Guarantee Credit Base Credit GP Operating GP Capital
---------------- --------------- ------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
1. Unlimited $ 1,550,300 $129,690 $ 93,000 $ 1,000 $ 1,000
in time
and amount
2. Unlimited $11,000,000 $468,500 $1,166,000 $12,000 $12,000
in time
and amount
3. None $ 1,653,000 $137,875 $ 274,777 0 0
4. Unlimited $ 796,500 $ 54,681 $ 95,000 $ 2,000 $ 2,000
in amount
for 3 years
5. Unlimited $ 3,922,000 $328,095 $ 750,000 $ 5,000 $ 5,000
in amount
for 10 years
6. Unlimited $ 4,040,000 $337,940 $ 306,000 $ 1,000 $ 1,000
in time
and amount
7. Unlimited $ 1,080,000 $ 39,060 $ 220,000 $ 1,000 $ 1,000
in amount
for 10 years
8. Unlimited $ 1,300,000 $111,737 $ 167,000 $ 3,000 $ 3,000
in time
and amount
9. Unlimited $13,260,000 $548,209 $1,272,000 $13,000 $13,000
in time
and amount
10. Unlimited $ 1,764,000 $ 63,855 $ 285,000 $ 1,000 $ 1,000
in amount
for 10 years
11. $30,000 in $ 1,173,000 $ 42,437 $ 180,000 $ 500 $ 500
the aggregate
12. $300,000 in $ 880,000 $ 74,146 $ 300,000 $ 2,000 $ 2,000
the aggregate
for 10 years
</TABLE>
S-9
<PAGE>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS--(Continued)
Ownership
Interest (%)
Profits,
Losses, Operating
BCTC IV Credit/Net General
Partnership Capital Cash Partner
Name Contribution Flow/Backend Contribution
-------------- -------------- -------------- --------------
13. Martinsville $ 508,362 100/20/20 $ 100
Partnership
14. Mill $6,123,040 99/25/30 $ 100
Partnership
15. Pearlwood $ 748,079 99/50/50 $ 100
Partnership
16. Sayreville $2,972,968 99/50/50 $ 100
Partnership
17. Westview $ 281,134 100/25/25 $13,450
Partnership
18. Woodhaven $2,390,522 99/50/50 $ 100
Partnership
<TABLE>
<CAPTION>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS--(Continued)
Fund's
Approximate
Average Development Annual
Annual Fee/Other Partnership Asset
Operating Operating Anticipated Distributions Management Management
Deficit Partnership's Federal to Operating Fee to Fee to Boston
Guarantee Credit Base Credit GP Operating GP Capital
---------------- --------------- ------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
13. $40,000 in $ 845,000 $ 70,600 $ 75,000 $ 1,000 $ 1,000
the aggregate
for 3 years
14. Unlimited $9,890,841 $862,400 $873,304 $10,000 $10,000
in time
and amount
15. Unlimited $1,590,000 $120,658 $109,000 $ 1,000 $ 1,000
in time
and amount
16. None $5,532,000 $464,926 $524,772 0 0
17. Unlimited $1,110,000 $ 40,162 $230,000 $ 500 $ 500
in time
and amount
18. None $5,263,000 $466,700 $388,000 0 0
</TABLE>
S-10
<PAGE>
THE ALEXANDER PARTNERSHIP
(Alexander Place Apartments)
Alexander Place Apartments is a 32-unit apartment complex for families
which is to be constructed in Alexander, Louisiana. Alexander Place Apartments
will consist of 18 one-bedroom units and 14 two-bedroom units contained in 4
buildings. The complex will offer a common room and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal and air conditioning.
Construction of Alexander Place Apartments is anticipated to begin in
October, 1998. The Operating General Partner anticipates that construction
completion and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ----------------- ---------- ----------------
8 June, 1999 8 July, 1999
8 July, 1999 8 August, 1999
8 August, 1999 8 September, 1999
8 September, 1999 8 October, 1999
THE BENTON VILLAGE PARTNERSHIP
(Benton Village Apartments)
Benton Village Apartments is a 136-unit apartment complex for families
which is to be constructed in Benton Harbor, Michigan. Benton Village
Apartments will consist of 24 one-bedroom units, 72 two-bedroom units and 40
three-bedroom units contained in 12 buildings. The complex will offer a
function room and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal and a patio or porch.
Construction of Benton Village Apartments is anticipated to begin in
July, 1998. The Operating General Partner anticipates that construction
completion and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------- ---------- ----------------
34 March, 1999 17 April, 1999
34 April, 1999 17 May, 1999
34 May, 1999 17 June, 1999
34 June, 1999 17 July, 1999
17 August, 1999
17 September, 1999
17 October, 1999
17 November, 1999
THE CARRIAGE POINTE PARTNERSHIP
(Carriage Pointe Apartments)
Carriage Pointe Apartments is an 18-unit apartment complex for families
and senior citizens which has been constructed on County Route 516 between High
Pointe Way and Bennett Road in Old Bridge, New Jersey. Carriage Pointe
Apartments consists of 6 one-bedroom units and 12 two-bedroom units contained
in 2 buildings. The complex offers central laundry facilities.
Individual units contain a refrigerator, range, dishwasher, disposal,
air conditioning, cable television hook-up, an and a patio or porch.
Construction of Carriage Pointe Apartments was completed in October,
1995 and is 100% occupied.
THE CHARDONNAY PARTNERSHIP
(Chardonnay Apartments)
Chardonnay Apartments is an existing 14-unit apartment complex for
families which has been rehabilitated on Northwest 30 Street and North Shartel
Avenue in Oklahoma City, Oklahoma. Chardonnay Apartments consists of 10
one-bedroom units and 4 two-bedroom units contained in 1 building. The complex
offers a function room, pool and central laundry facilities.
Individual units contain a refrigerator, range with hood, dishwasher,
disposal, air conditioning and a patio or porch.
Rehabilitation of Chardonnay Apartments was completed in December, 1997
and is 100% occupied.
S-11
<PAGE>
THE CLEAR CREEK PARTNERSHIP
(Clear Creek Apartments)
Clear Creek Apartments is a 64-unit apartment complex for families which
is to be constructed in North Manchester, Indiana. Clear Creek Apartments will
consist of 28 one-bedroom units, 18 two-bedroom units and 18 three-bedroom
units contained in 12 buildings. The complex will offer a function room and
central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal and a patio or porch.
Construction of Clear Creek Apartments is anticipated to begin in July,
1998. The Operating General Partners anticipate that construction completion
and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
16 November, 1998 7 January, 1999
16 December, 1998 7 February, 1999
16 January, 1999 8 March, 1999
16 February, 1999 14 April, 1999
14 May, 1999
14 June, 1999
THE COURTSIDE PARTNERSHIP
(Courtside Apartments)
Courtside Apartments is a 44-unit apartment complex for families which
is to be constructed in Cottonwood, Arizona. Courtside Apartments will consist
of 32 two-bedroom units and 12 three-bedroom units contained in 6 buildings.
The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Courtside Apartments is anticipated to begin in June,
1998. The Operating General Partner anticipates that construction completion
and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
22 November, 1998 22 January, 1999
22 December, 1998 11 February, 1999
11 March, 1999
THE DICKINSON PARTNERSHIP
(Dickinson Heights Apartments)
Dickinson Heights Apartments is a 32-unit apartment complex for families
which is to be constructed in Dickinson, North Dakota. Dickinson Heights
Apartments will consist of 12 one-bedroom units and 20 two-bedroom units
contained in 8 buildings. The complex will offer a function room and central
laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal and a patio or porch.
Construction of Dickinson Heights Apartments is anticipated to begin in
February, 1999. The Operating General Partner anticipates that construction
completion and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ----------------- ---------- ---------------
8 September, 1999 8 October, 1999
8 October, 1999 8 November, 1999
8 November, 1999 8 December, 1999
8 December, 1999 8 January, 2000
THE HOWARD PARK PARTNERSHIP
(Howard Park Apartments)
Howard Park Apartments is a 16-unit apartment complex for families which
is to be constructed on Redland Road at Northwest 15 Street in Florida City,
Florida. Howard Park Apartments will consist of 2 one-bedroom units, 10
two-bedroom units and 4 three-bedroom units contained in 1 building. The
complex will offer a function room, pool and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher, air
conditioning, cable television hook-up and a patio or porch.
Construction of Howard Park Apartments is anticipated to begin in May,
1998. The Operating General Partners anticipate that construction completion
and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ----------------- ---------- ---------------
16 September, 1998 4 October, 1998
4 November, 1998
4 December, 1998
4 January, 1999
S-12
<PAGE>
THE KIEST PARTNERSHIP
(Kiest Townhomes)
Kiest Townhomes is a 130-unit apartment complex for families which is to
be constructed on Kiest Boulevard at Cockrell Hill Road in Dallas, Texas. Kiest
Townhomes will consist of 59 two-bedroom units, 59 three-bedroom units and 12
four-bedroom units contained in 16 buildings. The complex will offer a function
room, pool, playground, basketball court and central laundry facilities.
Individual units will contain a refrigerator, range with hood,
dishwasher, disposal, air conditioning, ceiling fan, bathroom exhaust fan and a
patio or porch.
Construction of Kiest Townhomes is anticipated to begin in May, 1998.
The Operating General Partner anticipates that construction completion and
occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
32 November, 1998 16 January, 1999
32 December, 1998 16 February, 1999
33 January, 1999 16 March, 1999
33 February, 1999 16 April, 1999
16 May, 1999
16 June, 1999
17 July, 1999
17 August, 1999
THE LAKES PARTNERSHIP
(Lakes Plaza Apartments)
Lakes Plaza Apartments is a 28-unit apartment complex for families which
is to be constructed in Inver Grove Heights, Minnesota. Lakes Plaza Apartments
will consist of 18 one-bedroom units and 10 two-bedroom units contained in 4
buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher and a
patio or porch.
Construction of Lakes Plaza Apartments is anticipated to begin in
February, 1999. The Operating General Partner anticipates that construction
completion and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
7 October, 1999 14 January, 2000
7 November, 1999 7 February, 2000
7 December, 1999 7 March, 2000
7 January, 2000
THE MAPLE RIDGE PARTNERSHIP
(Maple Ridge Apartments)
Maple Ridge Apartments is an 18-unit apartment complex for families
which is to be constructed in Chadron, Nebraska. Maple Ridge Apartments will
consist of 12 one-bedroom units and 6 two-bedroom units contained in 3
buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning
and a patio or porch.
Construction of Maple Ridge Apartments is anticipated to begin in
February, 1999. The Operating General Partner anticipates that construction
completion and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
9 November, 1999 10 January, 2000
9 December, 1999 4 February, 2000
4 March, 2000
THE MAPLE WOODS PARTNERSHIP
(Maple Woods Apartments)
Maple Woods Apartments is a 24-unit apartment complex for families which
is to be constructed in Lebanon, Missouri. Maple Woods Apartments will consist
of 12 two-bedroom units and 12 three-bedroom units contained in 6 buildings.
The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
S-13
<PAGE>
Construction of Maple Woods Apartments is anticipated to begin in June,
1998. The Operating General Partners anticipate that construction completion
and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
12 November, 1998 6 January, 1999
12 December, 1998 6 February, 1999
6 March, 1999
6 April, 1999
THE MARTINSVILLE PARTNERSHIP
(Martinsville Apartments)
Martinsville Apartments is a 13-unit apartment complex for families,
which is to be constructed in Shelbyville, Kentucky. Martinsville Apartments
will consist of 7 two-bedroom units and 6 three-bedroom units contained in 4
buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Martinsville Apartments is anticipated to begin in
April, 1998. The Operating General Partners anticipate that construction
completion and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ------------
3 February, 1999 3 March, 1999
3 March, 1999 3 April, 1999
3 April, 1999 3 May, 1999
4 May, 1999 4 June, 1999
THE MILL PARTNERSHIP
(Mill Apartments)
Mill Apartments is an existing 90-unit apartment complex for senior
citizens which is to be rehabilitated in Saugerties, New York. Mill Apartments
will consist of 18 studio units and 72 one-bedroom units contained in 1
building. The complex will offer a solarium/living room and central laundry
facilities.
Individual units will contain a refrigerator and range.
Rehabilitation of Mill Apartments is anticipated to begin in June, 1998.
The Operating General Partner anticipates that completion of rehabilitation and
occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------ ---------- ----------------
90 May, 1999 18 June, 1999
18 July, 1999
18 August, 1999
18 September, 1999
18 October, 1999
THE PEARLWOOD PARTNERSHIP
(Pearlwood Apartments)
Pearlwood Apartments is a 40-unit apartment complex for senior citizens
which is to be constructed on Old Brandon Road in Pearl, Mississippi. Pearlwood
Apartments will consist of 20 one-bedroom units, 10 two-bedroom units and 10
three-bedroom units contained in 14 buildings. The complex will offer an
activity center and central laundry facilities.
Individual units will contain a refrigerator, range, kitchen exhaust
fan, air conditioning, smoke detectors and a patio or porch.
Construction of Pearlwood Apartments is anticipated to begin in April,
1998. The Operating General Partners anticipate that construction completion
and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------ ---------- ----------------
20 June, 1998 10 August, 1998
20 July, 1998 10 September, 1998
10 October, 1998
10 November, 1998
THE SAYREVILLE PARTNERSHIP
(Gillette Manor Apartments)
Gillette Manor Apartments is a 100-unit apartment complex for senior
citizens which has been constructed on Washington Road at Hilltop Avenue in
Sayreville, New Jersey. Gillette Manor Apartments consists of 100 one-bedroom
units contained in 1 building. The complex offers a meeting room and central
laundry facilities.
Individual units contain a refrigerator, range, air conditioning, cable
television hook-up and an emergency call system.
S-14
<PAGE>
Construction of Gillette Manor Apartments was completed in October, 1995
and is 100% occupied.
THE WESTVIEW PARTNERSHIP
(Westview Terrace Apartments)
Westview Terrace Apartments is a 28-unit apartment complex for families
which is to be constructed in Springfield, Vermont. Westview Terrace Apartments
will consist of 14 one-bedroom units and 14 two-bedroom units contained in 7
buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal and a patio or porch.
Construction of Westview Terrace Apartments is anticipated to begin in
February, 1999. The Operating General Partners anticipate that construction
completion and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
7 October, 1999 14 January, 2000
7 November, 1999 7 February, 2000
7 December, 1999 7 March, 2000
7 January, 2000
THE WOODHAVEN PARTNERSHIP
(Woodhaven Apartments)
Woodhaven Apartments is an 80-unit apartment complex for families and
senior citizens which has been constructed on Route 27 in South Brunswick, New
Jersey. Woodhaven Apartments consists of 40 one-bedroom units and 40
two-bedroom units contained in 13 buildings. The complex offers a clubhouse
with meeting room and central laundry facilities.
Individual units contain a refrigerator, range, dishwasher, disposal,
air conditioning and a patio or porch.
Construction of Woodhaven Apartments was completed in September, 1997
and is 100% occupied.
S-15
<PAGE>
NY
MAY 1, 1998
SUPPLEMENT NO. 1 TO PROSPECTUS FOR
BOSTON CAPITAL TAX CREDIT FUND IV L.P.
DATED
MAY 1, 1998
(SUPPLEMENT OFFERING BCTC IV SERIES 32 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.
Results of BCTC IV Series 31
The Fund received orders for a total of 4,430,551 BACs ($44,203,750) with
respect to Series 31, and issued the last of such Series 31 BACs on January 18,
1998. The aggregate fees paid as of January 18, 1998 to the General Partner and
Affiliates with respect to Series 31 were $5,178,859. No additional BACs will
be offered with respect to Series 31. The Fund has issued a total of 38,387,203
BACs, raised $383,786,500 and admitted 22,398 Investors with respect to Series
20 through 31 and may still sell up to $226,213,500 to the public if all the
BACs in Series 32 are sold. (See "Prior Performance of the General Partner and
its Affiliates" in the Prospectus for information about Series 20 through 28.)
Offering of BCTC IV Series 32
The Fund is offering, effective January 19, 1998, the thirteenth series of
BACs ("Series 32") 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. In addition, of each
dollar raised by Series 32, approximately 72% to 73% will be used for
investments in Apartment Complexes, and about one-half of the balance will be
used to pay fees and expenses to the General Partner or its Affiliates. (See
"Estimated Use of Proceeds," and "Compensation and Fees" in the Prospectus.)
The offering of BACs in Series 32 will not exceed 12 months.
THE PURCHASE OF BACS IN SERIES 32 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 32, limited
partnership interests in the eighteen (18) 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 Fund's investment in Operating Partnerships on behalf of Series 32
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.")
<PAGE>
THE POTENTIAL OPERATING PARTNERSHIP INTERESTS IDENTIFIED BELOW RELATE ONLY
TO BCTC IV--SERIES 32.
While the General Partner believes that the Fund, on behalf of Series 32,
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. If
the entire $40 million is raised for Series 32, the anticipated acquisition of
the Operating Partnership Interests, described hereinafter, will represent
approximately 95% of the total money which the Fund currently expects to spend
on behalf of Series 32.
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Since Series 32 is currently in the offering phase, it has no material
assets or any operating history. The eighteen (18) 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. Alexander Place L.P. M. Riemer Calhoun Jr.
(the "Alexander Partnership")
2. Community Organization Giving Individual Care L.P. Larry A. Swank
(the "Benton Village Partnership")
3. Carriage Pointe L.P. Matzel & Mumford
(the "Carriage Pointe Partnership")
4. Chardonnay L.P. Carlyle MacHarg III
(the "Chardonnay Partnership")
5. Clear Creek L.P. Michael Jacobson
(the "Clear Creek Partnership") Housing Development Corporation
6. Courtside L.P. Campbell-Hogue & Associates
(the "Courtside Partnership")
7. Dickinson Heights L.P. MetroPlains Development Inc.
(the "Dickinson Partnership")
8. Howard Park L.P. Lovey Clayton
(the "Howard Park Partnership") David Clayton
9. Kiest Townhouses L.P. Luxar Development Corporation
(the "Kiest Partnership")
10. Inver Grove Heights L.P. MetroPlains Development Inc.
(the "Lakes Partnership")
</TABLE>
S-2
<PAGE>
<TABLE>
<CAPTION>
Partnership General Partner(s)
----------- ------------------
<S> <C> <C>
11. Maple Ridge L.P. Maple Ridge LLC
(the "Maple Ridge Partnership")
12. Maple Woods L.P. John Harpole
(the "Maple Woods Partnership") Maple Woods LLC
13. Martinsville L.P. Parkside Associates
(the "Martinsville Partnership") Hatfield Housing Company
14. East Bridge Street L.P. Mill Development Corporation
(the "Mill Partnership")
15. Pearlwood L. P. Resource Foundation, Inc.
(the "Pearlwood Partnership") Riemer Calhoun, Jr.
16. Sayreville Senior Housing L.P. Sayreville Seniors Housing
(the "Sayreville Partnership") Corporation
17. Westview Terrace L.P. Joseph M. Cloutier
(the "Westview Partnership") Realty Resources Chartered
18. Woodhaven L.P. Woodhaven Partners
(the "Woodhaven 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. 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 32 is $1.10 per BAC (11%). (See
"Glossary" at page 162 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-3
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Basic
Location of Number Monthly(1)
Partnership Name Property of Units Rents
------------------ ------------------- ---------- ------------
1. Alexander Alexander, 32 $230 1BR
Partnership Louisiana $270 2BR
2. Benton Village Benton Harbor, 136 $260-
Partnership Michigan $340 1BR
$312-
$407 2BR
$362-
$472 3BR
3. Carriage Pointe Old Bridge, 18 $602 1 BR
Partnership New Jersey $566-
$779 2BR
4. Chardonnay Oklahoma City, 14 $299-
Partnership Oklahoma $385 1BR
$349-
$550 2BR
5. Clear Creek North Manchester, 64 $230 1BR
Partnership Indiana $260 2BR
$285 3BR
6. Courtside Cottonwood, 44 $153-
Partnership Arizona $378 2BR
$436 3BR
7. Dickinson Dickinson, 32 $300 1BR
Partnership North Dakota $310 2BR
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Government Permanent Mortgage Annual Annual
Assistance Mortgage Interest Reserve Management Management
Anticipated Loan(3) Rate Amount Agent Fee
-------------------- -------------------- --------------- --------- ---------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
1. Home Investment Hibernia 9% $ 6,400 TF Management 6% of net
Partnerships National Bank rental income
Program(b) $ 475,000(a)
(4) Louisiana 4%
Housing
Finance Agency
$ 500,000(b)
(4)
2. Community BCMC, Inc. 9% $23,800 Sterling 6% of net
Investment $2,532,000(a) Management rental income
Program(b) Michigan 4% Company
(5) Housing
Development
Authority
$2,400,000(b)
(5)
3. Federal Housing Amboy National 9.125% $ 3,600 Matzel & 6% of net
Tax Credits Bank Mumford Real rental income
$ 627,000(a) 8% Estate
Matzel &
Mumford
$ 490,000(b)
(6)
4. Federal Housing Bank of 10% $ 2,800 Orion 6% of net
Tax Credits Oklahoma, N.A. Management rental income
$ 90,000 Company
(7)
5. Section 538 Bank One, N.A. 7% $12,800 Garsten 6% of net
Rural Housing $1,620,000 Management rental income
Loan Guarantee (8)
Program (8)
6. Federal Housing Trust Company 9% $ 8,800 Campbell-Hogue 6% of net
Tax Credits of the West Management rental income
$ 877,000
(9)
7. FmHA Sec. 515 $ 950,000 1% (2) $ 8,000 MetroPlains $24 per
with 100% rental Management occupied unit
assistance per month
</TABLE>
S-4
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
Basic
Location of Number Monthly(1)
Partnership Name Property of Units Rents
------------------ --------------- ---------- ------------
8. Howard Park Florida City, 16 $237-
Partnership Florida $435 1BR
$291-
$531 2BR
$340-
$619 3BR
9. Kiest Dallas, 130 $483-
Partnership Texas $505 2BR
$559-
$605 3BR
$618-
$705 4BR
10. Lakes Inver Grove 28 $310 1BR
Partnership Heights, $340 2BR
Minnesota
11. Maple Ridge Chadron, 18 $290 1BR
Partnership Nebraska $318 2BR
12. Maple Woods Lebanon, 24 $270 2BR
Partnership Missouri $295 3BR
13. Martinsville Shelbyville, 13 $305 2BR
Partnership Kentucky $362 3BR
14. Mill Saugerties, 90 $437 0BR
Partnership New York $475 1BR
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
Government Permanent Mortgage Annual Annual
Assistance Mortgage Interest Reserve Management Management
Anticipated Loan(3) Rate Amount Agent Fee
------------------ ------------------- -------------- --------- ------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
8. State Apartment Florida 3% $ 4,000 Auburn 6% of net
Investment Loan Housing Management, rental income
Program(a) Finance Agency Inc.
State Housing $ 214,000(a)
Subsidy Targeted City of 3%
Trust Fund Florida City
Program(b) $ 115,000(b)
(10) (10)
9. Federal Housing Arbor National 9% $26,000 Affordable 6% of net
Tax Credits Mortgage Housing rental income
Company LLC Partnership
$3,240,000
(11)
10. FmHA Sec. 515 $1,700,000 1% (2) $ 7,000 MetroPlains $24 per
with 100% rental Management occupied unit
assistance per month
11. FmHA Sec. 515 $1,110,750 1% (2) $ 4,500 Arbor $24 per
with 100% rental Management occupied unit
assistance per month
12. Federal Housing Great Western 9% $ 4,800 Curry 6% of net
Tax Credits Bank, N.A. Management rental income
$ 360,000 Company
(12)
13. Home Investment Kentucky 6% $ 2,600 Hatfield 6% of net
Partnerships Housing Management rental income
Program Corporation
(13) $ 335,000
(13)
14. Secured Loan New York State 8.75% $18,000 Jobco 5% of net
Rental Housing Housing Management, rental income
Program(s) Finance Agency Inc.
Acquisition $2,174,000(a)
Rehabilitation New York State 1%
Loan Program(b) Housing Trust
(14) Fund
$ 600,000(b)
(14)
</TABLE>
S-5
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
Basic
Location of Number Monthly(1)
Partnership Name Property of Units Rents
------------------ ------------------ ---------- ------------
15. Pearlwood Pearl, 40 $288 1BR
Partnership Mississippi $434 2BR
$497 3BR
16. Sayreville Sayreville, 100 $525 1BR
Partnership New Jersey
17. Westview Springfield, 28 $258 1BR
Partnership Vermont $312 2BR
18. Woodhaven South Brunswick, 80 $455-
Partnership New Jersey $568 1BR
$638-
$751 2BR
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
Government Permanent Mortgage Annual Annual
Assistance Mortgage Interest Reserve Management Management
Anticipated Loan(3) Rate Amount Agent Fee
------------------ ------------------- -------------- --------- ------------ ----------------
<S> <C> <C> <C> <C> <C> <C>
15. HOME Bank One, N.A. 9% $ 8,000 Calhoun 6% of net
Investment $ 380,000(a) Property rental income
Partnerships Mississippi 1% Management
Program(b) Home
(15) Corporation
$ 500,000(b)
(15)
16. Federal Housing Amboy National 7% $20,000 Sayreville 6% of net
Tax Credits Bank Housing rental income
$3,491,000(a) 8% Authority
Gillette
Enterprises
$ 640,000(b)
(16)
17. FmHA Sec. 515 $1,050,000 1% (2) $ 7,000 Realty $22 per
with 100% rental Resources occupied unit
assistance Management per month
18. Federal Housing Amboy National 8.5% $20,000 Eastern 6% of net
Tax Credits Bank Properties rental income
$3,366,000
(17)
</TABLE>
(1) Exclusive of utilities, unless indicated otherwise.
(2) FmHA 515 loan with a term of 50 years and 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) (a) The terms of the Alexander Partnership's anticipated permanent first
mortgage loan in the amount of $475,000 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.
(b) The terms of the Alexander Partnership's anticipated permanent second
mortgage loan in the amount of $500,000 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.
(5) (a) The terms of the Benton Village Partnership's anticipated permanent
first mortgage loan in the amount of $2,532,000 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.
(b) The terms of the Benton Village Partnership's anticipated permanent
second mortgage loan in the amount of $2,400,000 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.
(6) (a) The terms of the Carriage Pointe Partnership's anticipated permanent
first mortgage loan in the amount of $627,000 are expected to include a
term of 15 years, an interest rate of 9.125% and payments of principal
and interest on the basis of a 15-year amortization schedule.
(b) The terms of the Carriage Pointe Partnership's anticipated permanent
second mortgage loan in the amount of $490,000 are expected to include
a term of 15 years, an interest rate of 8% and payments of principal
and interest on the basis of a 15-year amortization schedule.
(7) The terms of the Chardonnay Partnership's anticipated permanent first
mortgage loan in the amount of $90,000 are expected to include a term of
15 years, an interest rate of 10% and payments of principal and interest
on the basis of a 25-year amortization schedule.
S-6
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
(8) The terms of the Clear Creek Partnership's anticipated permanent first
mortgage loan in the amount of $1,620,000 are expected to include a term of
30 years, an interest rate of 7% and payments of principal and interest on
the basis of a 30-year amortization schedule.
(9) The terms of the Courtside Partnership's anticipated permanent first
mortgage loan in the amount of $877,000 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 Howard Park Partnership's anticipated permanent first
mortgage loan in the amount of $214,000 are expected to include a term
of 30 years, an interest rate of 3% and payments of interest only,
provided, however, that the terms of the permanent first mortgage loan
will provide for the deferral and accrual of payments of 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.
(b) The terms of the Howard Park Partnership's anticipated permanent second
mortgage loan in the amount of $115,000 are expected to include a term
of 30 years, an interest rate of 3% and payments of interest only,
provided, however, that the terms of the permanent second mortgage loan
will provide for the deferral and accrual of payments of 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) The terms of the Kiest Partnership's anticipated permanent first mortgage
loan in the amount of $3,240,000 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.
(12) The terms of the Maple Woods Partnership's anticipated permanent first
mortgage loan in the amount of $360,000 are expected to include a term of
25 years, an interest rate of 9% and payments of principal and interest on
the basis of a 25-year amortization schedule.
(13) The terms of the Martinsville Partnership's anticipated permanent first
mortgage loan in the amount of $335,000 are expected to include a term of
30 years, an interest rate of 6% and payments of principal and interest on
the basis of a 30-year amortization schedule, provided, however, that the
terms of the permanent first 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) (a) The terms of the Mill Partnership's anticipated permanent first
mortgage loan in the amount of $2,174,000 are expected to include a
term of 30 years, an interest rate of 8.75% and payments of principal
and interest on the basis of a 30 year amortization schedule.
(b) The terms of the Mill Partnership's anticipated permanent second
mortgage loan in the amount of $600,000 are expected to include a term
of 30 years, an interest rate of 1% 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.
(15) (a) The terms of the Pearlwood Partnership's anticipated permanent first
mortgage loan in the amount of $380,000 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 Pearlwood Partnership's anticipated permanent second
mortgage loan in the amount of $500,000 are expected to include a term
of 25 years, an interest rate of 1% and payments of principal and
interest on the basis of a 25 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
25-year term.
(16) (a) The terms of the Sayreville Partnership's anticipated permanent first
mortgage loan in the amount of $3,491,000 are expected to include a
term of 28 years, an interest rate of 7% and payments of principal and
interest on the basis of a 28-year amortization schedule.
(b) The terms of the Sayreville Partnership's anticipated permanent second
mortgage loan in the amount of $640,000 are expected to include a term
of 8 years, an interest rate of 8% and payments of principal and
interest on the basis of a 8-year amortization schedule.
(17) The terms of the Woodhaven Partnership's anticipated permanent first
mortgage loan in the amount of $3,366,000 are expected to include a term
of 5 years, an interest rate of 8.5% and payments of principal and
interest on the basis of a 30-year amortization schedule.
S-7
<PAGE>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS
Ownership
Interest (%)
Profits,
Losses, Operating
BCTC IV Credit/Net General
Partnership Capital Cash Partner
Name Contribution Flow/Backend Contribution
----------------- -------------- -------------- --------------
1. Alexander $ 881,892 99/50/50 $ 100
Partnership
2. Benton $3,279,500 50/10/15 $ 100
Village
Partnership
3. Carriage Pointe $1,007,593 99/50/50 $ 100
Partnership
4. Chardonnay $ 393,700 100/20/50 $150,000
Partnership
5. Clear Creek $2,296,664 100/25/50 $ 100
Partnership
6. Courtside $2,433,171 100/10/20 $ 100
Partnership
7. Dickinson $ 273,420 100/20/20 $ 17,380
Partnership
8. Howard Park $ 759,812 100/50/50 $ 100
Partnership
9. Kiest $3,947,107 50/15/15 $ 100
Partnership
10. Lakes $ 446,985 100/20/20 $ 24,130
Partnership
11. Maple Ridge $ 297,059 100/30/30 $ 18,750
Partnership
12. Maple Woods $ 519,022 100/50/50 $ 100
Partnership
<TABLE>
<CAPTION>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS
Fund's
Approximate
Average Development Annual
Annual Fee/Other Partnership Asset
Operating Operating Anticipated Distributions Management Management
Deficit Partnership's Federal to Operating Fee to Fee to Boston
Guarantee Credit Base Credit GP Operating GP Capital
---------------- --------------- ------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
1. Unlimited $ 1,550,300 $129,690 $ 93,000 $ 1,000 $ 1,000
in time
and amount
2. Unlimited $11,000,000 $468,500 $1,166,000 $12,000 $12,000
in time
and amount
3. None $ 1,653,000 $137,875 $ 274,777 0 0
4. Unlimited $ 796,500 $ 54,681 $ 95,000 $ 2,000 $ 2,000
in amount
for 3 years
5. Unlimited $ 3,922,000 $328,095 $ 750,000 $ 5,000 $ 5,000
in amount
for 10 years
6. Unlimited $ 4,040,000 $337,940 $ 306,000 $ 1,000 $ 1,000
in time
and amount
7. Unlimited $ 1,080,000 $ 39,060 $ 220,000 $ 1,000 $ 1,000
in amount
for 10 years
8. Unlimited $ 1,300,000 $111,737 $ 167,000 $ 3,000 $ 3,000
in time
and amount
9. Unlimited $13,260,000 $548,209 $1,272,000 $13,000 $13,000
in time
and amount
10. Unlimited $ 1,764,000 $ 63,855 $ 285,000 $ 1,000 $ 1,000
in amount
for 10 years
11. $30,000 in $ 1,173,000 $ 42,437 $ 180,000 $ 500 $ 500
the aggregate
12. $300,000 in $ 880,000 $ 74,146 $ 300,000 $ 2,000 $ 2,000
the aggregate
for 10 years
</TABLE>
S-8
<PAGE>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS--(Continued)
Ownership
Interest (%)
Profits,
Losses, Operating
BCTC IV Credit/Net General
Partnership Capital Cash Partner
Name Contribution Flow/Backend Contribution
-------------- -------------- -------------- --------------
13. Martinsville $ 508,362 100/20/20 $ 100
Partnership
14. Mill $6,123,040 99/25/30 $ 100
Partnership
15. Pearlwood $ 748,079 99/50/50 $ 100
Partnership
16. Sayreville $2,972,968 99/50/50 $ 100
Partnership
17. Westview $ 281,134 100/25/25 $13,450
Partnership
18. Woodhaven $2,390,522 99/50/50 $ 100
Partnership
<TABLE>
<CAPTION>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS--(Continued)
Fund's
Approximate
Average Development Annual
Annual Fee/Other Partnership Asset
Operating Operating Anticipated Distributions Management Management
Deficit Partnership's Federal to Operating Fee to Fee to Boston
Guarantee Credit Base Credit GP Operating GP Capital
---------------- --------------- ------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
13. $40,000 in $ 845,000 $ 70,600 $ 75,000 $ 1,000 $ 1,000
the aggregate
for 3 years
14. Unlimited $9,890,841 $862,400 $873,304 $10,000 $10,000
in time
and amount
15. Unlimited $1,590,000 $120,658 $109,000 $ 1,000 $ 1,000
in time
and amount
16. None $5,532,000 $464,926 $524,772 0 0
17. Unlimited $1,110,000 $ 40,162 $230,000 $ 500 $ 500
in time
and amount
18. None $5,263,000 $466,700 $388,000 0 0
</TABLE>
S-9
<PAGE>
THE ALEXANDER PARTNERSHIP
(Alexander Place Apartments)
Alexander Place Apartments is a 32-unit apartment complex for families
which is to be constructed in Alexander, Louisiana. Alexander Place Apartments
will consist of 18 one-bedroom units and 14 two-bedroom units contained in 4
buildings. The complex will offer a common room and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal and air conditioning.
Construction of Alexander Place Apartments is anticipated to begin in
October, 1998. The Operating General Partner anticipates that construction
completion and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ----------------- ---------- ----------------
8 June, 1999 8 July, 1999
8 July, 1999 8 August, 1999
8 August, 1999 8 September, 1999
8 September, 1999 8 October, 1999
THE BENTON VILLAGE PARTNERSHIP
(Benton Village Apartments)
Benton Village Apartments is a 136-unit apartment complex for families
which is to be constructed in Benton Harbor, Michigan. Benton Village
Apartments will consist of 24 one-bedroom units, 72 two-bedroom units and 40
three-bedroom units contained in 12 buildings. The complex will offer a
function room and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal and a patio or porch.
Construction of Benton Village Apartments is anticipated to begin in
July, 1998. The Operating General Partner anticipates that construction
completion and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------- ---------- ----------------
34 March, 1999 17 April, 1999
34 April, 1999 17 May, 1999
34 May, 1999 17 June, 1999
34 June, 1999 17 July, 1999
17 August, 1999
17 September, 1999
17 October, 1999
17 November, 1999
THE CARRIAGE POINTE PARTNERSHIP
(Carriage Pointe Apartments)
Carriage Pointe Apartments is an 18-unit apartment complex for families
and senior citizens which has been constructed on County Route 516 between High
Pointe Way and Bennett Road in Old Bridge, New Jersey. Carriage Pointe
Apartments consists of 6 one-bedroom units and 12 two-bedroom units contained
in 2 buildings. The complex offers central laundry facilities.
Individual units contain a refrigerator, range, dishwasher, disposal,
air conditioning, cable television hook-up, an and a patio or porch.
Construction of Carriage Pointe Apartments was completed in October,
1995 and is 100% occupied.
THE CHARDONNAY PARTNERSHIP
(Chardonnay Apartments)
Chardonnay Apartments is an existing 14-unit apartment complex for
families which has been rehabilitated on Northwest 30 Street and North Shartel
Avenue in Oklahoma City, Oklahoma. Chardonnay Apartments consists of 10
one-bedroom units and 4 two-bedroom units contained in 1 building. The complex
offers a function room, pool and central laundry facilities.
Individual units contain a refrigerator, range with hood, dishwasher,
disposal, air conditioning and a patio or porch.
Rehabilitation of Chardonnay Apartments was completed in December, 1997
and is 100% occupied.
S-10
<PAGE>
THE CLEAR CREEK PARTNERSHIP
(Clear Creek Apartments)
Clear Creek Apartments is a 64-unit apartment complex for families which
is to be constructed in North Manchester, Indiana. Clear Creek Apartments will
consist of 28 one-bedroom units, 18 two-bedroom units and 18 three-bedroom
units contained in 12 buildings. The complex will offer a function room and
central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal and a patio or porch.
Construction of Clear Creek Apartments is anticipated to begin in July,
1998. The Operating General Partners anticipate that construction completion
and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
16 November, 1998 7 January, 1999
16 December, 1998 7 February, 1999
16 January, 1999 8 March, 1999
16 February, 1999 14 April, 1999
14 May, 1999
14 June, 1999
THE COURTSIDE PARTNERSHIP
(Courtside Apartments)
Courtside Apartments is a 44-unit apartment complex for families which
is to be constructed in Cottonwood, Arizona. Courtside Apartments will consist
of 32 two-bedroom units and 12 three-bedroom units contained in 6 buildings.
The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Courtside Apartments is anticipated to begin in June,
1998. The Operating General Partner anticipates that construction completion
and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
22 November, 1998 22 January, 1999
22 December, 1998 11 February, 1999
11 March, 1999
THE DICKINSON PARTNERSHIP
(Dickinson Heights Apartments)
Dickinson Heights Apartments is a 32-unit apartment complex for families
which is to be constructed in Dickinson, North Dakota. Dickinson Heights
Apartments will consist of 12 one-bedroom units and 20 two-bedroom units
contained in 8 buildings. The complex will offer a function room and central
laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal and a patio or porch.
Construction of Dickinson Heights Apartments is anticipated to begin in
February, 1999. The Operating General Partner anticipates that construction
completion and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ----------------- ---------- ---------------
8 September, 1999 8 October, 1999
8 October, 1999 8 November, 1999
8 November, 1999 8 December, 1999
8 December, 1999 8 January, 2000
THE HOWARD PARK PARTNERSHIP
(Howard Park Apartments)
Howard Park Apartments is a 16-unit apartment complex for families which
is to be constructed on Redland Road at Northwest 15 Street in Florida City,
Florida. Howard Park Apartments will consist of 2 one-bedroom units, 10
two-bedroom units and 4 three-bedroom units contained in 1 building. The
complex will offer a function room, pool and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher, air
conditioning, cable television hook-up and a patio or porch.
Construction of Howard Park Apartments is anticipated to begin in May,
1998. The Operating General Partners anticipate that construction completion
and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ----------------- ---------- ---------------
16 September, 1998 4 October, 1998
4 November, 1998
4 December, 1998
4 January, 1999
S-11
<PAGE>
THE KIEST PARTNERSHIP
(Kiest Townhomes)
Kiest Townhomes is a 130-unit apartment complex for families which is to
be constructed on Kiest Boulevard at Cockrell Hill Road in Dallas, Texas. Kiest
Townhomes will consist of 59 two-bedroom units, 59 three-bedroom units and 12
four-bedroom units contained in 16 buildings. The complex will offer a function
room, pool, playground, basketball court and central laundry facilities.
Individual units will contain a refrigerator, range with hood,
dishwasher, disposal, air conditioning, ceiling fan, bathroom exhaust fan and a
patio or porch.
Construction of Kiest Townhomes is anticipated to begin in May, 1998.
The Operating General Partner anticipates that construction completion and
occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
32 November, 1998 16 January, 1999
32 December, 1998 16 February, 1999
33 January, 1999 16 March, 1999
33 February, 1999 16 April, 1999
16 May, 1999
16 June, 1999
17 July, 1999
17 August, 1999
THE LAKES PARTNERSHIP
(Lakes Plaza Apartments)
Lakes Plaza Apartments is a 28-unit apartment complex for families which
is to be constructed in Inver Grove Heights, Minnesota. Lakes Plaza Apartments
will consist of 18 one-bedroom units and 10 two-bedroom units contained in 4
buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher and a
patio or porch.
Construction of Lakes Plaza Apartments is anticipated to begin in
February, 1999. The Operating General Partner anticipates that construction
completion and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
7 October, 1999 14 January, 2000
7 November, 1999 7 February, 2000
7 December, 1999 7 March, 2000
7 January, 2000
THE MAPLE RIDGE PARTNERSHIP
(Maple Ridge Apartments)
Maple Ridge Apartments is an 18-unit apartment complex for families
which is to be constructed in Chadron, Nebraska. Maple Ridge Apartments will
consist of 12 one-bedroom units and 6 two-bedroom units contained in 3
buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning
and a patio or porch.
Construction of Maple Ridge Apartments is anticipated to begin in
February, 1999. The Operating General Partner anticipates that construction
completion and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
9 November, 1999 10 January, 2000
9 December, 1999 4 February, 2000
4 March, 2000
THE MAPLE WOODS PARTNERSHIP
(Maple Woods Apartments)
Maple Woods Apartments is a 24-unit apartment complex for families which
is to be constructed in Lebanon, Missouri. Maple Woods Apartments will consist
of 12 two-bedroom units and 12 three-bedroom units contained in 6 buildings.
The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
S-12
<PAGE>
Construction of Maple Woods Apartments is anticipated to begin in June,
1998. The Operating General Partners anticipate that construction completion
and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
12 November, 1998 6 January, 1999
12 December, 1998 6 February, 1999
6 March, 1999
6 April, 1999
THE MARTINSVILLE PARTNERSHIP
(Martinsville Apartments)
Martinsville Apartments is a 13-unit apartment complex for families,
which is to be constructed in Shelbyville, Kentucky. Martinsville Apartments
will consist of 7 two-bedroom units and 6 three-bedroom units contained in 4
buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Martinsville Apartments is anticipated to begin in
April, 1998. The Operating General Partners anticipate that construction
completion and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ------------
3 February, 1999 3 March, 1999
3 March, 1999 3 April, 1999
3 April, 1999 3 May, 1999
4 May, 1999 4 June, 1999
THE MILL PARTNERSHIP
(Mill Apartments)
Mill Apartments is an existing 90-unit apartment complex for senior
citizens which is to be rehabilitated in Saugerties, New York. Mill Apartments
will consist of 18 studio units and 72 one-bedroom units contained in 1
building. The complex will offer a solarium/living room and central laundry
facilities.
Individual units will contain a refrigerator and range.
Rehabilitation of Mill Apartments is anticipated to begin in June, 1998.
The Operating General Partner anticipates that completion of rehabilitation and
occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------ ---------- ----------------
90 May, 1999 18 June, 1999
18 July, 1999
18 August, 1999
18 September, 1999
18 October, 1999
THE PEARLWOOD PARTNERSHIP
(Pearlwood Apartments)
Pearlwood Apartments is a 40-unit apartment complex for senior citizens
which is to be constructed on Old Brandon Road in Pearl, Mississippi. Pearlwood
Apartments will consist of 20 one-bedroom units, 10 two-bedroom units and 10
three-bedroom units contained in 14 buildings. The complex will offer an
activity center and central laundry facilities.
Individual units will contain a refrigerator, range, kitchen exhaust
fan, air conditioning, smoke detectors and a patio or porch.
Construction of Pearlwood Apartments is anticipated to begin in April,
1998. The Operating General Partners anticipate that construction completion
and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ------------ ---------- ----------------
20 June, 1998 10 August, 1998
20 July, 1998 10 September, 1998
10 October, 1998
10 November, 1998
THE SAYREVILLE PARTNERSHIP
(Gillette Manor Apartments)
Gillette Manor Apartments is a 100-unit apartment complex for senior
citizens which has been constructed on Washington Road at Hilltop Avenue in
Sayreville, New Jersey. Gillette Manor Apartments consists of 100 one-bedroom
units contained in 1 building. The complex offers a meeting room and central
laundry facilities.
Individual units contain a refrigerator, range, air conditioning, cable
television hook-up and an emergency call system.
S-13
<PAGE>
Construction of Gillette Manor Apartments was completed in October, 1995
and is 100% occupied.
THE WESTVIEW PARTNERSHIP
(Westview Terrace Apartments)
Westview Terrace Apartments is a 28-unit apartment complex for families
which is to be constructed in Springfield, Vermont. Westview Terrace Apartments
will consist of 14 one-bedroom units and 14 two-bedroom units contained in 7
buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal and a patio or porch.
Construction of Westview Terrace Apartments is anticipated to begin in
February, 1999. The Operating General Partners anticipate that construction
completion and occupancy will occur as follows:
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
7 October, 1999 14 January, 2000
7 November, 1999 7 February, 2000
7 December, 1999 7 March, 2000
7 January, 2000
THE WOODHAVEN PARTNERSHIP
(Woodhaven Apartments)
Woodhaven Apartments is an 80-unit apartment complex for families and
senior citizens which has been constructed on Route 27 in South Brunswick, New
Jersey. Woodhaven Apartments consists of 40 one-bedroom units and 40
two-bedroom units contained in 13 buildings. The complex offers a clubhouse
with meeting room and central laundry facilities.
Individual units contain a refrigerator, range, dishwasher, disposal,
air conditioning and a patio or porch.
Construction of Woodhaven Apartments was completed in September, 1997
and is 100% occupied.
S-14
