Y
SEPTEMBER 22, 1998
SUPPLEMENT NO. 3 TO PROSPECTUS FOR
BOSTON CAPITAL TAX CREDIT FUND IV L.P.
DATED
AUGUST 1, 1998
(SUPPLEMENT OFFERING BCTC IV SERIES 34 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. 3 supersedes
all previous supplements to the prospectus.
Results of BCTC IV Series 33
The Fund received orders for a total of 2,810,000 BACs ($28,100,000) with
respect to Series 33 and issued the last of such Series 33 BACs on September
21, 1998. The aggregate fees paid as of September 21, 1998 to the General
Partner and Affiliates with respect to Series 33 were $3,301,750. No additional
BACs will be offered with respect to Series 33. The Fund has issued a total of
45,938,707 BACs, raised $459,111,500 and admitted 26,038 Investors with respect
to Series 20 through 33 and may still sell up to $190,888,500 to the public if
all the BACs in Series 34 are sold. (See "Prior Performance of the General
Partner and its Affiliates" in the Prospectus for information about Series 20
through 33.)
Offering of BCTC IV Series 34
The Fund is offering, effective September 22, 1998, the fifteenth series
of BACs ("Series 34") 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. No BACs in Series 34
will be issued unless at least 250,000 BACs in such series are sold. In the
event that only the minimum number of 250,000 BACs are sold in Series 34, a
significant portion of the Apartment Complexes identified herein will not be
invested in. In addition, of each dollar raised by Series 34, 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 34 will not exceed 12
months.
THE PURCHASE OF BACS IN SERIES 34 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 34, limited
partnership interests in the fifteen (15) 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 34, which would be the equivalent of an approximate
10%-12% annual Tax Credit
<PAGE>
as a percentage of capital invested, for the ten year credit period applicable
to each Apartment Complex in which Series 34 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 34): $200-$400 in 1999; $600-$800 in 2000, $1,000-$1,200 in
2001-2008, $600-$800 in 2009 and $200-$400 in 2010. 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 34
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 34
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 34.
While the General Partner believes that the Fund, on behalf of Series 34,
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
S-2
<PAGE>
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 34, the anticipated acquisition of the
Operating Partnership Interests, described hereinafter, will represent
approximately 84% of the total money which the Fund currently expects to spend
on behalf of Series 34.
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Since Series 34 is currently in the offering phase, it has no material
assets or any operating history. The fifteen (15) 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. Abby Ridge L.P. Wabuck Development
(the "Abby Ridge Partnership")
2. Allison Apartments L.P. Wabuck Development
(the "Allison Partnership")
3. Ballston Pines L.P. Belmont Development Corporation
(the "Ballston Partnership")
4. Boerne Creekside L.P. Sally Gaskin
(the "Creekside Partnership") Grainger MacDonald
5. Cane Creek L.P. Ned Fowler
(the "Cane Creek Partnership")
6. Elwood Heights L.P. Ray Barmby
(the "Elwood Heights Partnership")
7. Elwood Park Place L.P. Ray Barmby
(the "Elwood Park Place Partnership")
8. Forest Hills L.P. Property Development Associates
(the "Forest Hills Partnership")
9. Hillside Club L.P. Michael H. Jacobson
(the "Hillside Partnership") Terry L. Bailey
10. Kerrville Meadows L.P. Sally Gaskin
(the "Kerrville Partnership") Grainger MacDonald
11. Merchants Court L.P. Dorchester Development Corporation
(the "Merchants Court Partnership")
12. Millwood Park L.P. Norsouth Corporation
(the "Millwood Park Partnership")
13. Montour Falls L.P. Belmont Development Corporation
(the "Montour Partnership")
14. Northwood Homes L.P. Wabuck Development
(the "Northwood Partnership")
15. Oak Grove Village L.P. Ned Fowler
(the "Oak Grove Partnership")
</TABLE>
S-3
<PAGE>
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 34 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
<TABLE>
<CAPTION>
Basic
Location of Number Monthly(1)
Partnership Name Property of Units Rents
------------------ ----------------- ---------- ------------
<S> <C> <C> <C> <C>
1. Abby Ridge Elizabethtown, 24 $350 3BR
Partnership Kentucky
2. Allison Mt. Washington, 24 $601 3BR
Partnership Kentucky
3. Ballston Ballston Spa, 32 $333 1BR
Partnership New York
4. Creekside Boerne, 71 $371-
Partnership Texas $451 1BR
$425-
$521 2BR
$486-
$497 3BR
5. Cane Creek Bakersville, 25 $356 2BR
Partnership North Carolina $496 3BR
$502 4BR
6. Elwood Heights Elwood, 48 $350 1BR
Partnership Kansas $410 2BR
$485 3BR
7. Elwood Park Elwood, 25 $500 3BR
Place Kansas
Partnership
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
<CAPTION>
Government Permanent Mortgage Annual Annual
Assistance Mortgage Interest Reserve Management Management
Anticipated Loan (2) Rate Amount Agent Fee
--------------------- -------------- ------------- --------- --------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
1. Federal Federal 2.5% $7,200 Homeland Inc. 8% of net
Housing Home Loan rental income
Tax Credits Bank
$506,000
(4)
2. Federal Citizens' 6.65% $4,800 Homeland Inc. 5% of net
Housing Bank and rental income
Tax Credits Trust
$968,800
(5)
3. FmHA Sec. 515 $412,000 1%(3) $6,400 Belmont $21 per
with 100% rental New York 1% Management occupied unit
assistance; Division of per month
Housing Trust Housing and
Fund Program Community
(6) Renewal
$995,000
(6)
4. Federal BCMC 7.5% $14,200 First 6% of net
Housing $2,200,000 Interstate rental income
Tax Credits (7) Management
Corporation
5. Rental North Carolina 2% $5,000 Northwestern 6% of net
Production Housing Regional rental income
Program Finance Housing
(8) Authority Authority
$710,000
(8)
6. Federal BCMC 8% $9,600 Cunningham 6% of net
Housing $1,000,000 Companies rental income
Tax Credits (9)
7. Federal BCMC 8% $5,000 Cunningham 6% of net
Housing $900,000 Companies rental income
Tax Credits (10)
S-5
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
<CAPTION>
Basic
Location of Number Monthly(1)
Partnership Name Property of Units Rents
------------------ ---------------- ---------- ------------
<S> <C> <C> <C> <C>
8. Forest Hills Forest Hills, 20 $435 3BR
Partnership Pennsylvania $465 4BR
9. Hillside Bear Creek 56 $407 1BR
Partnership Township, $485 2BR
Michigan $562 3BR
10. Kerrville Kerrville, 76 $300-
Partnership Texas $370 1BR
$359-
$443 2BR
11. Merchants Dallas, 144 $375 1BR
Court Georgia $440-
Partnership $525 2BR
$500-
$565 3BR
12. Millwood Park Douglasville, 176 $585 2BR
Partnership Georgia $660 3BR
13. Montour Montour Falls, 24 $343 1BR
Partnership New York
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
<CAPTION>
Government Permanent Mortgage Annual Annual
Assistance Mortgage Interest Reserve Management Management
Anticipated Loan (2) Rate Amount Agent Fee
------------------ ---------------- ----------- --------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
8. Housing Parkville 7% $4,000 Property 6% of net
Action Savings Bank Development rental income
Program(b) $210,000(a) Associates
(11) Allegheny 0%
County
Housing
Authority
$ 960,000(b)
(11)
9. Rural Rental Comerica 7.75% $11,200 Smith & 6% of net
Housing Section Bank, Company rental income
538 Loan N.A.
Guarantee $1,590,000
Program (12)
(12)
10. Federal BCMC 7.5% $15,200 First 6% of net
Housing $1,665,000 Interstate rental income
Tax Credits (13) Management
Corporation
11. HOME Bank of 8.5% $38,400 Ambling 6% of net
Investment America Companies rental income
Partnerships $2,096,000(a)
Program(b) Georgia 1%
(14) Department of
Community
Affairs
$2,000,000(b)
(14)
12. Georgia Douglas 7% $35,200 Norsouth 6% of net
Multifamily County Corporation rental income
Housing Housing
Revenue Bond Authority
Program $8,360,000
(15) (15)
13. FmHA Sec, 515 $306,000 1%(3) $4,800 Belmont $21 per
with 100% rental New York 1% Management occupied unit
assistance; Division of per month
Housing Trust Housing and
Fund Program Community
(16) Renewal
$480,000
(16)
S-6
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
<CAPTION>
Basic
Location of Number Monthly(1)
Partnership Name Property of Units Rents
------------------ --------------- ---------- ------------
<S> <C> <C> <C> <C>
14. Northwood Leitchfield, 24 $372 3BR
Partnership Kentucky
15. Oak Grove Jefferson, 30 $328 2BR
Partnership North Carolina $428 3BR
$478 4BR
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
<CAPTION>
Government Permanent Mortgage Annual Annual
Assistance Mortgage Interest Reserve Management Management
Anticipated Loan (2) Rate Amount Agent Fee
----------------- ------------------- ---------- --------- ----------- --------------
<S> <C> <C> <C> <C> <C> <C>
14. Federal Housing Citizens' Bank 8% $4,800 Wabuck 6% of net
Tax Credits and Trust Management rental income
Company
$831,000
(17)
15. Community Federal Home 8% $6,000 Northwestern 6% of net
Investment Loan Bank Regional rental income
Program(a) $270,000(a) Housing
Rental North Carolina Authority
Production Housing
Program(b) Finance
(18) Authority 2%
$608,221(b)
(18)
</TABLE>
(1) Exclusive of utilities, unless indicated otherwise.
(2) 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.
(3) 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.
(4) The terms of the Abby Ridge Partnership's anticipated permanent first
mortgage loan in the amount of $506,000 are expected to include a term of
15 years, an interest rate of 2.5% and payments of principal and interest
on the basis of a 30-year amortization schedule.
(5) The terms of the Allison Partnership's anticipated permanent first
mortgage loan in the amount of $968,800 are expected to include a term of
15 years, an interest rate of 6.65% and payments of principal and interest
on the basis of a 20-year amortization schedule.
(6) The terms of the Ballston Partnership's anticipated permanent second
mortgage loan in the amount of $995,000 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.
(7) The terms of the Creekside Partnership's anticipated permanent first
mortgage loan in the amount of $2,200,000 are expected to include a term
of 30 years, an interest rate of 7.5% and payments of principal and
interest on the basis of a 30-year amortization schedule.
(8) The terms of the Cane Creek Partnership's anticipated permanent first
mortgage loan in the amount of $710,000 are expected to include a term of
21 years, an interest rate of 2% and payments of principal and interest on
the basis of a 21-year amortization schedule.
(9) The terms of the Elwood Heights Partnership's anticipated permanent first
mortgage loan in the amount of $1,000,000 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.
(10) The terms of the Elwood Park Place Partnership's anticipated permanent
first mortgage loan in the amount of $900,000 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.
(11) (a) The terms of the Forest Hills Partnership's anticipated permanent first
mortgage loan in the amount of $210,000 are expected to include a term
of 25 years, an interest rate of 7% and payments of principal and
interest on the basis of a 25-year amortization schedule.
(b) The terms of the Forest Hills Partnership's anticipated permanent
second mortgage loan in the amount of $960,000 are expected to include
a term of 25 years, an interest rate of 0% and payments of principal 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 based on available cash
flow, and for the payment of the entire outstanding balance of
principal at the end of the 25-year term.
(12) The terms of the Hillside Partnership's anticipated permanent first
mortgage loan in the amount of $1,590,000 are expected to include a term
of 30 years, an interest rate of 7.75% and payments of principal and
interest on the basis of a 30-year amortization schedule.
(13) The terms of the Kerrville Partnership's anticipated permanent first
mortgage loan in the amount of $1,665,000 are expected to include a term
of 30 years, an interest rate of 7.5% and payments of principal and
interest on the basis of a 30-year amortization schedule.
S-7
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
(14) (a) The terms of the Merchants Court Partnership's anticipated permanent
first mortgage loan in the amount of $2,096,000 are expected to include
a term of 30 years, an interest rate of 8.5% and payments of principal
and interest on the basis of a 30-year amortization schedule.
(b) The terms of the Merchants Court Partnership's anticipated permanent
second mortgage loan in the amount of $2,000,000 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) The terms of the Millwood Park Partnership's anticipated permanent first
mortgage loan in the amount of $8,360,000 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.
(16) The terms of the Montour Partnership's anticipated permanent second
mortgage loan in the amount of $480,000 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.
(17) The terms of the Northwood Partnership's anticipated permanent first
mortgage loan in the amount of $831,000 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.
(18) (a) The terms of the Oak Grove Partnership's anticipated permanent first
mortgage loan in the amount of $270,000 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 30-year amortization schedule.
(b) The terms of the Oak Grove Partnership's anticipated permanent second
mortgage loan in the amount of $608,221 are expected to include a term
of 55 years, an interest rate of 2% and payments of principal and
interest on the basis of a 55-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
55-year term.
S-8
<PAGE>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS
<TABLE>
<CAPTION>
Ownership
Interest(%)
Profits,
Losses, Operating
BCTC IV Credit/Net General
Partnership Capital Cash Partner
Name Contribution Flow/Backend Contribution
------------- -------------- ---------------- --------------
<S> <C> <C> <C> <C>
1. Abby Ridge $1,563,663 99/50/50 $100
Partnership
2. Allison $ 850,014 99/50/50 $100
Partnership
3. Ballston $1,136,145 99/25/25 $100
Partnership
4. Creekside $2,327,000 99/50/50 $100
Partnership
5. Cane Creek $1,165,488 99.99/20/80 $100
Partnership
6. Elwood $1,595,644 99/20/20 $100
Heights
Partnership
7. Elwood Park $1,315,384 99/20/20 $100
Place
Partnership
8. Forest $1,452,595 99.99/20/20 $100
Hills
Partnership
9. Hillside $1,998,692 99/10/10 $100
Partnership
10. Kerrville $2,330,000 99/50/50 $100
Partnership
11. Merchants $4,607,103 65/30/30 $100
Court
Partnership
12. Millwood $ 841,155 30/6/15 $100
Park
Partnership
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS--(Continued)
<CAPTION>
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. $200,000 in the $2,572,700 $214,200 $198,000 $2,400 $2,400
aggregate for
5 years
2. $200,000 in the $1,587,200 $118,058 $186,914 $2,000 $2,000
aggregate for
5 years
3. Unlimited in $1,835,000 $153,533 $268,000 $1,000 $1,000
amount for
5 years
4. Unlimited in $4,304,000 $314,438 $505,000 $7,100 $7,100
amount for
3 years
5. $200,000 in the $1,888,147 $155,398 $101,528 $2,500 $2,500
aggregate for
3 years
6. Unlimited in $2,618,000 $218,581 $336,000 $2,000 $2,000
amount for
5 years
7. Unlimited in $2,158,000 $180,190 $290,000 $2,000 $2,000
amount for
5 years
8. $375,000 in the $2,378,000 $198,986 $341,400 $2,000 $2,000
aggregate for
3 years
9. Unlimited in $3,342,000 $277,596 $325,000 $5,000 $5,000
amount for
3 years
10. Unlimited in $3,765,000 $314,864 $491,000 $7,600 $7,600
amount for
3 years
11. Unlimited in $11,713,000 $631,110 $1,591,000 $10,000 $10,000
amount for
5 years
12. $300,000 in the $10,627,000 $113,670 $1,288,200 $18,000 $18,000
aggregate for
10 years
S-9
<PAGE>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS--(Continued)
<CAPTION>
Ownership
Interest(%)
Profits,
Losses, Operating
BCTC IV Credit/Net General
Partnership Capital Cash Partner
Name Contribution Flow/Backend Contribution
------------- -------------- ---------------- --------------
<S> <C> <C> <C> <C>
13. Montour $1,138,453 99/25/25 $100
Partnership
14. Northwood $768,733 99/50/50 $100
Partnership
15. Oak Grove $1,359,397 99.99/20/80 $100
Partnership
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS--(Continued)
<CAPTION>
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. Unlimited in $1,415,000 $153,845 $200,000 $1,000 $1,000
amount for
5 years
14. Unlimited in $1,936,000 $106,769 $175,000 $1,000 $1,000
amount for
10 years
15. $200,000 in the $2,251,976 $181,253 $136,262 $3,000 $3,000
aggregate for
3 years
</TABLE>
S-10
<PAGE>
THE ABBY RIDGE PARTNERSHIP
(Abby Ridge Apartments)
Abby Ridge Apartments is a 24-unit single family home development for
families which is being constructed in Elizabethtown, Kentucky. Abby Ridge
Apartments will consist of 24 three-bedroom units contained in 24 buildings.
Individual units will contain a refrigerator, range, washer/dryer
hookups and air conditioning.
Construction of Abby Ridge Apartments began in July, 1998. 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>
6 February, 1999 4 June, 1999
6 March, 1999 4 July, 1999
6 April, 1999 4 August, 1999
6 May, 1999 4 September, 1999
4 October, 1999
4 November, 1999
</TABLE>
THE ALLISON PARTNERSHIP
(Allison Apartments)
Allison Apartments is a 24-unit apartment complex for families which is
being constructed in Mt. Washington, Kentucky. Allison Apartments will consist
of 24 three-bedroom units contained in 5 buildings. The complex will offer a
playground.
Individual units will contain a refrigerator, range, washer/dryer
hookups, dishwasher and air conditioning.
Construction of Allison Apartments began in August, 1998. 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>
8 February, 1999 6 May, 1999
8 March, 1999 6 June, 1999
8 April, 1999 6 July, 1999
6 August, 1999
</TABLE>
THE BALLSTON PARTNERSHIP
(Ballston Pines Apartments)
Ballston Pines Apartments is a 32-unit apartment complex for senior
citizens which is to be constructed on Rowland Street in Ballston Spa, New
York. Ballston Pines Apartments will consist of 32 one-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 a patio or porch.
Construction of Ballston Pines Apartments is anticipated to begin in
June, 1999. 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>
32 May, 2000 10 June, 2000
11 July, 2000
11 August, 2000
</TABLE>
THE CREEKSIDE PARTNERSHIP
(Creekside Apartments)
Creekside Apartments is a 71-unit apartment complex for families which
is to be constructed on River Road in Boerne, Texas. Creekside Apartments will
consist of 23 one-bedroom units, 24 two-bedroom units and 24 three-bedroom
units contained in 8 buildings. The complex will offer a function room, pool
and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher, air
conditioning and a patio or porch.
Construction of Creekside Apartments is anticipated to begin in January,
1999. The Operating General Partners anticipate that construction completion
and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
<S> <C> <C> <C>
11 October, 1999 11 January, 2000
12 November, 1999 12 February, 2000
12 December, 1999 12 March, 2000
12 January, 2000 12 April, 2000
12 February, 2000 12 May, 2000
12 March, 2000 12 June, 2000
</TABLE>
S-11
<PAGE>
THE CANE CREEK PARTNERSHIP
(Cane Creek Apartments)
Cane Creek Apartments is a 25-unit apartment complex for families which
is to be constructed on Cane Creek Road in Bakersville, North Carolina. Cane
Creek Apartments will consist of 18 two-bedroom units, 6 three-bedroom units
and 1 four-bedroom unit contained in 12 buildings. The complex will offer a tot
lot, playground and walking trails.
Individual units will contain a refrigerator, range and washer/dryer
hookups.
Construction of Cane Creek Apartments is anticipated to begin in
October, 1998. 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>
12 February, 1999 8 April, 1999
13 March, 1999 8 May, 1999
9 June, 1999
</TABLE>
THE ELWOOD HEIGHTS PARTNERSHIP
(Elwood Heights Apartments)
Elwood Heights Apartments is a 48-unit apartment complex for families
which is to be constructed on 14th at Connecticut in Elwood, Kansas. Elwood
Heights Apartments will consist of 2 one-bedroom units, 30 two-bedroom units
and 16 three-bedroom units contained in 8 buildings. The complex will offer a
meeting room and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Elwood Heights Apartments is anticipated to begin in
November, 1998. 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>
16 August, 1999 8 September, 1999
16 September, 1999 8 October, 1999
16 October, 1999 8 November, 1999
8 December, 1999
8 January, 2000
8 February, 2000
</TABLE>
THE ELWOOD PARK PLACE PARTNERSHIP
(Elwood Park Place Apartments)
Elwood Park Place Apartments is a 25-unit housing development for
families which is to be constructed on Atlantic between 9 and 13 Streets in
Elwood, Kansas. Elwood Park Place Apartments will consist of 25 three-bedroom
homes.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning, cable television hook-up and a patio or porch.
Construction of Elwood Park Place Apartments is anticipated to begin in
October, 1998. 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>
25 June, 1999 8 July, 1999
8 August, 1999
9 September, 1999
</TABLE>
THE FOREST HILLS PARTNERSHIP
(Forest Hills Apartments)
Forest Hills Apartments is a 20-town home development for families which
is to be constructed on Atlantic and Rustic Avenues in Forest Hills,
Pennsylvania. Forest Hills Apartments will consist of 19 three-bedroom units
and 1 four-bedroom unit contained in 10 buildings. The complex will offer
central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal and a patio or porch.
Construction of Forest Hills Apartments is anticipated to begin in
October, 1998. 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>
5 June, 1999 5 July, 1999
5 July, 1999 5 August, 1999
5 August, 1999 5 September, 1999
5 September, 1999 5 October, 1999
</TABLE>
S-12
<PAGE>
THE HILLSIDE PARTNERSHIP
(Hillside Club Apartments)
Hillside Club Apartments is a 56-unit apartment complex for families
which is to be constructed on Mitchell Road in Bear Creek Township, Michigan.
Hillside Club Apartments will consist of 8 one-bedroom units, 32 two-bedroom
units and 16 three-bedroom units contained in 4 buildings. The complex will
offer a community room, pool, recreation room, individual storage units,
playground and central laundry facilities.
Individual units will contain a refrigerator, range with hood,
dishwasher, disposal, air conditioning and a patio or porch.
Construction of Hillside Club Apartments is anticipated to begin in
March, 1999. The Operating General Partners anticipate that construction
completion and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ----------------- ---------- ---------------
<S> <C> <C> <C>
14 September, 1999 6 October, 1999
14 October, 1999 10 November, 1999
14 November, 1999 10 December, 1999
14 December, 1999 10 January, 2000
10 February, 2000
10 March, 2000
</TABLE>
THE KERRVILLE PARTNERSHIP
(Kerrville Meadows Apartments)
Kerrville Meadows Apartments is a 76-unit apartment complex for families
which is to be constructed on 2200 block of Junction Highway in Kerrville,
Texas. Kerrville Meadows Apartments will consist of 48 one-bedroom units and 28
two-bedroom units contained in 8 buildings. The complex will offer a function
room, pool and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher, air
conditioning and a patio or porch.
Construction of Kerrville Meadows Apartments is anticipated to begin in
January, 1999. The Operating General Partners anticipate that construction
completion and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
<S> <C> <C> <C>
12 October, 1999 12 January, 2000
12 November, 1999 12 February, 2000
13 December, 1999 13 March, 2000
13 January, 2000 13 April, 2000
13 February, 2000 13 May, 2000
13 March, 2000 13 June, 2000
</TABLE>
THE MERCHANTS COURT PARTNERSHIP
(Merchants Court Apartments)
Merchants Court Apartments is a 144-unit apartment complex for families
which is to be constructed on Merchants Drive in Dallas, Georgia. Merchants
Court Apartments will consist of 72 one-bedroom units, 36 two-bedroom units and
36 three-bedroom units contained in 12 buildings. The complex will offer a
function room, pool, picnic area, basketball court and central laundry
facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Merchants Court Apartments is anticipated to begin in
January, 1999. 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>
36 July, 1999 18 August, 1999
36 August, 1999 18 September, 1999
36 September, 1999 18 October, 1999
36 October, 1999 18 November, 1999
18 December, 1999
18 January, 2000
18 February, 2000
18 March, 2000
</TABLE>
THE MILLWOOD PARK PARTNERSHIP
(Millwood Park Apartments)
Millwood Park Apartments is a 176-unit apartment complex for families
which is being constructed on Big B Road between Durelee and Sandy Lanes in
Douglasville, Georgia. Millwood Park Apartments will consist of 120 two-bedroom
units and 56 three-bedroom units contained in 12 buildings. The complex will
offer a function room and central laundry facilities.
S-13
<PAGE>
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Millwood Park Apartments began in August, 1998. 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>
26 June, 1999 14 July, 1999
30 July, 1999 18 August, 1999
30 August, 1999 18 September, 1999
30 September, 1999 18 October, 1999
30 October, 1999 18 November, 1999
30 November, 1999 18 December, 1999
18 January, 2000
18 February, 2000
18 March, 2000
18 April, 2000
</TABLE>
THE MONTOUR PARTNERSHIP
(Romeo Village Apartments)
Romeo Village Apartments is a 24-unit apartment complex for senior
citizens which is to be constructed on Broadway in Montour Falls, New York.
Romeo Village Apartments will consist of 24 one-bedroom units contained in 1
building. The complex will offer a function room and central laundry
facilities.
Individual units will contain a refrigerator, range and air
conditioning.
Construction of Romeo Village Apartments is anticipated to begin in
June, 1999. 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 May, 2000 8 June, 2000
8 July, 2000
8 August, 2000
</TABLE>
THE NORTHWOOD PARTNERSHIP
(Northwood Homes Apartments)
Northwood Homes Apartments is a 24-single family home development for
families which is to be constructed in Leitchfield, Kentucky. Northwood Homes
Apartments will consist of 24 three-bedroom homes.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Northwood Homes Apartments is anticipated to begin in
February, 1999. 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>
12 October, 1999 24 January, 2000
12 November, 1999
</TABLE>
THE OAK GROVE PARTNERSHIP
(Oak Grove Village Apartments)
Oak Grove Village Apartments is a 30-unit apartment complex for families
which is to be constructed on Oak Grove Circle in Jefferson, North Carolina.
Oak Grove Village Apartments will consist of 20 two-bedroom units, 8
three-bedroom units and 2 four-bedroom units contained in 16 buildings. The
complex will offer a community room, tot lot, playground and walking trails.
Individual units will contain a refrigerator, range and washer/dryer
hook-ups.
Construction of Oak Grove Village Apartments is anticipated to begin in
October, 1998. 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 February, 1999 6 April, 1999
10 March, 1999 6 May, 1999
10 April, 1999 6 June, 1999
6 July, 1999
6 August, 1999
</TABLE>
S-14
<PAGE>
NY
SEPTEMBER 22, 1998
SUPPLEMENT NO. 3 TO PROSPECTUS FOR
BOSTON CAPITAL TAX CREDIT FUND IV L.P.
DATED
AUGUST 1, 1998
(SUPPLEMENT OFFERING BCTC IV SERIES 34 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. 3 supersedes
all previous supplements to the prospectus.
Results of BCTC IV Series 33
The Fund received orders for a total of 2,810,000 BACs ($28,100,000) with
respect to Series 33 and issued the last of such Series 33 BACs on September
21, 1998. The aggregate fees paid as of September 21, 1998 to the General
Partner and Affiliates with respect to Series 33 were $3,301,750. No additional
BACs will be offered with respect to Series 33. The Fund has issued a total of
45,938,707 BACs, raised $459,111,500 and admitted 26,038 Investors with respect
to Series 20 through 33 and may still sell up to $190,888,500 to the public if
all the BACs in Series 34 are sold. (See "Prior Performance of the General
Partner and its Affiliates" in the Prospectus for information about Series 20
through 33.)
Offering of BCTC IV Series 34
The Fund is offering, effective September 22, 1998, the fifteenth series
of BACs ("Series 34") 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. No BACs in Series 34
will be issued unless at least 250,000 BACs in such series are sold. In the
event that only the minimum number of 250,000 BACs are sold in Series 34, a
significant portion of the Apartment Complexes identified herein will not be
invested in. In addition, of each dollar raised by Series 34, 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 34 will not exceed 12
months.
THE PURCHASE OF BACS IN SERIES 34 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 34, limited
partnership interests in the fifteen (15) 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 34
will be consistent with the provisions of the Prospectus relating to the
investment in Operating Partnerships. (See, particularly, "Investment
Objectives
<PAGE>
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 34.
While the General Partner believes that the Fund, on behalf of Series 34,
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 34, the anticipated acquisition of
the Operating Partnership Interests, described hereinafter, will represent
approximately 84% of the total money which the Fund currently expects to spend
on behalf of Series 34.
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Since Series 34 is currently in the offering phase, it has no material
assets or any operating history. The fifteen (15) 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. Abby Ridge L.P. L.P. Wabuck Development
(the "Abby Ridge Partnership")
2. Allison Apartments L.P. Wabuck Development
(the "Allison Partnership")L.P.
3. Ballston Pines L.P. Belmont Development Corporation
(the "Ballston Partnership")
4. Boerne Creekside L.P. Sally Gaskin
(the "Creekside Partnership") Grainger MacDonald
5. Cane Creek L.P. Ned Fowler
(the "Cane Creek Partnership")
6. Elwood Heights L.P. Ray Barmby
(the "Elwood Heights Partnership")
7. Elwood Park Place L.P. Ray Barmby
(the "Elwood Park Place Partnership")
8. Forest Hills L.P. Property Development Associates
(the "Forest Hills Partnership")
9. Hillside Club L.P. Michael H. Jacobson
(the "Hillside Partnership") Terry L. Bailey
S-2
<PAGE>
<CAPTION>
Partnership General Partner(s)
----------- ------------------
<S> <C> <C>
10. Kerrville Meadows L.P. Sally Gaskin
(the "Kerrville Partnership") Grainger MacDonald
11. Merchants Court L.P. Dorchester Development Corporation
(the "Merchants Court Partnership")
12. Millwood Park L.P. Norsouth Corporation
(the "Millwood Park Partnership")
13. Montour Falls L.P. Belmont Development Corporation
(the "Montour Partnership")
14. Northwood Homes L.P. Wabuck Development
(the "Northwood Partnership")
15. Oak Grove Village L.P. Ned Fowler
(the "Oak Grove 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 34 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
<TABLE>
<CAPTION>
Basic
Location of Number Monthly(1)
Partnership Name Property of Units Rents
------------------ ----------------- ---------- ------------
<S> <C> <C> <C> <C>
1. Abby Ridge Elizabethtown, 24 $350 3BR
Partnership Kentucky
2. Allison Mt. Washington, 24 $601 3BR
Partnership Kentucky
3. Ballston Ballston Spa, 32 $333 1BR
Partnership New York
4. Creekside Boerne, 71 $371-
Partnership Texas $451 1BR
$425-
$521 2BR
$486-
$497 3BR
5. Cane Creek Bakersville, 25 $356 2BR
Partnership North Carolina $496 3BR
$502 4BR
6. Elwood Heights Elwood, 48 $350 1BR
Partnership Kansas $410 2BR
$485 3BR
7. Elwood Park Elwood, 25 $500 3BR
Place Kansas
Partnership
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
<CAPTION>
Government Permanent Mortgage Annual Annual
Assistance Mortgage Interest Reserve Management Management
Anticipated Loan (2) Rate Amount Agent Fee
--------------------- -------------------- -------------- --------- -------------- ----------------
<S> <C> <C> <C> <C> <C> <C>
1. Federal Federal 2.5% $7,200 Homeland Inc. 8% of net
Housing Home Loan rental income
Tax Credits Bank
$506,000
(4)
2. Federal Citizens' 6.65% $4,800 Homeland Inc. 5% of net
Housing Bank and rental income
Tax Credits Trust
$968,800
(5)
3. FmHA Sec. 515 $412,000 1%(3) $6,400 Belmont $21 per
with 100% rental New York 1% Management occupied unit
assistance; Division of per month
Housing Trust Housing and
Fund Program Community
(6) Renewal
$995,000
(6)
4. Federal BCMC 7.5% $14,200 First 6% of net
Housing $2,200,000 Interstate rental income
Tax Credits (7) Management
Corporation
5. Rental North Carolina 2% $5,000 Northwestern 6% of net
Production Housing Regional rental income
Program Finance Housing
(8) Authority Authority
$710,000
(8)
6. Federal BCMC 8% $9,600 Cunningham 6% of net
Housing $1,000,000 Companies rental income
Tax Credits (9)
7. Federal BCMC 8% $5,000 Cunningham 6% of net
Housing $900,000 Companies rental income
Tax Credits (10)
S-4
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
<CAPTION>
Basic
Location of Number Monthly(1)
Partnership Name Property of Units Rents
------------------ ---------------- ---------- ------------
<S> <C> <C> <C> <C>
8. Forest Hills Forest Hills, 20 $435 3BR
Partnership Pennsylvania $465 4BR
9. Hillside Bear Creek 56 $407 1BR
Partnership Township, $485 2BR
Michigan $562 3BR
10. Kerrville Kerrville, 76 $300-
Partnership Texas $370 1BR
$359-
$443 2BR
11. Merchants Dallas, 144 $375 1BR
Court Georgia $440-
Partnership $525 2BR
$500-
$565 3BR
12. Millwood Park Douglasville, 176 $585 2BR
Partnership Georgia $660 3BR
13. Montour Montour Falls, 24 $343 1BR
Partnership New York
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
<CAPTION>
Government Permanent Mortgage Annual Annual
Assistance Mortgage Interest Reserve Management Management
Anticipated Loan (2) Rate Amount Agent Fee
------------------ ------------------- ------------ --------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C>
8. Housing Parkville 7% $ 4,000 Property 6% of net
Action Savings Bank Development rental income
Program(b) $210,000(a) Associates
(11) Allegheny 0%
County
Housing
Authority
$960,000(b)
(11)
9. Rural Rental Comerica 7.75% $11,200 Smith & 6% of net
Housing Section Bank, Company rental income
538 Loan N.A.
Guarantee $1,590,000
Program (12)
(12)
10. Federal BCMC 7.5% $15,200 First 6% of net
Housing $1,665,000 Interstate rental income
Tax Credits (13) Management
Corporation
11. HOME Bank of 8.5% $38,400 Ambling 6% of net
Investment America Companies rental income
Partnerships $2,096,000(a)
Program(b) Georgia 1%
(14) Department of
Community
Affairs
$2,000,000(b)
(14)
12. Georgia Douglas 7% $35,200 Norsouth 6% of net
Multifamily County Corporation rental income
Housing Housing
Revenue Bond Authority
Program $8,360,000
(15) (15)
13. FmHA Sec, 515 $306,000 1%(3) $4,800 Belmont $21 per
with 100% rental New York 1% Management occupied unit
assistance; Division of per month
Housing Trust Housing and
Fund Program Community
(16) Renewal
$480,000
(16)
S-5
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
<CAPTION>
Basic
Location of Number Monthly(1)
Partnership Name Property of Units Rents
------------------ ---------------- ---------- ------------
<S> <C> <C> <C> <C>
14. Northwood Leitchfield, 24 $372 3BR
Partnership Kentucky
15. Oak Grove Jefferson, 30 $328 2BR
Partnership North Carolina $428 3BR
$478 4BR
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
<CAPTION>
Government Permanent Mortgage Annual Annual
Assistance Mortgage Interest Reserve Management Management
Anticipated Loan (2) Rate Amount Agent Fee
----------------- ------------------- ---------- -------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
14. Federal Housing Citizens' Bank 8% $4,800 Wabuck 6% of net
Tax Credits and Trust Management rental income
Company
$831,000
(17)
15. Community Federal Home 8% $6,000 Northwestern 6% of net
Investment Loan Bank Regional rental income
Program(a) $270,000(a) Housing
Rental North Carolina Authority
Production Housing
Program(b) Finance
(18) Authority 2%
$608,221(b)
(18)
</TABLE>
(1) Exclusive of utilities, unless indicated otherwise.
(2) 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.
(3) 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.
(4) The terms of the Abby Ridge Partnership's anticipated permanent first
mortgage loan in the amount of $506,000 are expected to include a term of
15 years, an interest rate of 2.5% and payments of principal and interest
on the basis of a 30-year amortization schedule.
(5) The terms of the Allison Partnership's anticipated permanent first
mortgage loan in the amount of $968,800 are expected to include a term of
15 years, an interest rate of 6.65% and payments of principal and interest
on the basis of a 20-year amortization schedule.
(6) The terms of the Ballston Partnership's anticipated permanent second
mortgage loan in the amount of $995,000 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.
(7) The terms of the Creekside Partnership's anticipated permanent first
mortgage loan in the amount of $2,200,000 are expected to include a term
of 30 years, an interest rate of 7.5% and payments of principal and
interest on the basis of a 30-year amortization schedule.
(8) The terms of the Cane Creek Partnership's anticipated permanent first
mortgage loan in the amount of $710,000 are expected to include a term of
21 years, an interest rate of 2% and payments of principal and interest on
the basis of a 21-year amortization schedule.
(9) The terms of the Elwood Heights Partnership's anticipated permanent first
mortgage loan in the amount of $1,000,000 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.
(10) The terms of the Elwood Park Place Partnership's anticipated permanent
first mortgage loan in the amount of $900,000 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.
(11) (a) The terms of the Forest Hills Partnership's anticipated permanent
first mortgage loan in the amount of $210,000 are expected to include a
term of 25 years, an interest rate of 7% and payments of principal and
interest on the basis of a 25-year amortization schedule.
(b) The terms of the Forest Hills Partnership's anticipated permanent
second mortgage loan in the amount of $960,000 are expected to include
a term of 25 years, an interest rate of 0% and payments of principal 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 based on available cash
flow, and for the payment of the entire outstanding balance of
principal at the end of the 25-year term.
(12) The terms of the Hillside Partnership's anticipated permanent first
mortgage loan in the amount of $1,590,000 are expected to include a term
of 30 years, an interest rate of 7.75% and payments of principal and
interest on the basis of a 30-year amortization schedule.
(13) The terms of the Kerrville Partnership's anticipated permanent first
mortgage loan in the amount of $1,665,000 are expected to include a term
of 30 years, an interest rate of 7.5% and payments of principal and
interest on the basis of a 30-year amortization schedule.
S-6
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
(14) (a) The terms of the Merchants Court Partnership's anticipated permanent
first mortgage loan in the amount of $2,096,000 are expected to include
a term of 30 years, an interest rate of 8.5% and payments of principal
and interest on the basis of a 30-year amortization schedule.
(b) The terms of the Merchants Court Partnership's anticipated permanent
second mortgage loan in the amount of $2,000,000 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) The terms of the Millwood Park Partnership's anticipated permanent first
mortgage loan in the amount of $8,360,000 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.
(16) The terms of the Montour Partnership's anticipated permanent second
mortgage loan in the amount of $480,000 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.
(17) The terms of the Northwood Partnership's anticipated permanent first
mortgage loan in the amount of $831,000 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.
(18) (a) The terms of the Oak Grove Partnership's anticipated permanent first
mortgage loan in the amount of $270,000 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 30-year amortization schedule.
(b) The terms of the Oak Grove Partnership's anticipated permanent second
mortgage loan in the amount of $608,221 are expected to include a term
of 55 years, an interest rate of 2% and payments of principal and
interest on the basis of a 55-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
55-year term.
S-7
<PAGE>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS
<TABLE>
<CAPTION>
Ownership
Interest(%)
Profits,
Losses, Operating
BCTC IV Credit/Net General
Partnership Capital Cash Partner
Name Contribution Flow/Backend Contribution
------------- -------------- ---------------- --------------
<S> <C> <C> <C> <C>
1. Abby Ridge $1,563,663 99/50/50 $100
Partnership
2. Allison $ 850,014 99/50/50 $100
Partnership
3. Ballston $1,136,145 99/25/25 $100
Partnership
4. Creekside $2,327,000 99/50/50 $100
Partnership
5. Cane Creek $1,165,488 99.99/20/80 $100
Partnership
6. Elwood $1,595,644 99/20/20 $100
Heights
Partnership
7. Elwood Park $1,315,384 99/20/20 $100
Place
Partnership
8. Forest $1,452,595 99.99/20/20 $100
Hills
Partnership
9. Hillside $1,998,692 99/10/10 $100
Partnership
10. Kerrville $2,330,000 99/50/50 $100
Partnership
11. Merchants $4,607,103 65/30/30 $100
Court
Partnership
12. Millwood $ 841,155 30/6/15 $100
Park
Partnership
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS--(Continued)
<CAPTION>
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. $200,000 in the $2,572,700 $214,200 $198,000 $2,400 $2,400
aggregate for
5 years
2. $200,000 in the $1,587,200 $118,058 $186,914 $2,000 $2,000
aggregate for
5 years
3. Unlimited in $1,835,000 $153,533 $268,000 $1,000 $1,000
amount for
5 years
4. Unlimited in $4,304,000 $314,438 $505,000 $7,100 $7,100
amount for
3 years
5. $200,000 in the $1,888,147 $155,398 $101,528 $2,500 $2,500
aggregate for
3 years
6. Unlimited in $2,618,000 $218,581 $336,000 $2,000 $2,000
amount for
5 years
7. Unlimited in $2,158,000 $180,190 $290,000 $2,000 $2,000
amount for
5 years
8. $375,000 in the $2,378,000 $198,986 $341,400 $2,000 $2,000
aggregate for
3 years
9. Unlimited in $3,342,000 $277,596 $325,000 $5,000 $5,000
amount for
3 years
10. Unlimited in $3,765,000 $314,864 $491,000 $7,600 $7,600
amount for
3 years
11. Unlimited in $11,713,000 $631,110 $1,591,000 $10,000 $10,000
amount for
5 years
12. $300,000 in the $10,627,000 $113,670 $1,288,200 $18,000 $18,000
aggregate for
10 years
S-8
<PAGE>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS--(Continued)
<CAPTION>
Ownership
Interest(%)
Profits,
Losses, Operating
BCTC IV Credit/Net General
Partnership Capital Cash Partner
Name Contribution Flow/Backend Contribution
------------- -------------- ---------------- --------------
<S> <C> <C> <C> <C>
13. Montour $1,138,453 99/25/25 $100
Partnership
14. Northwood $768,733 99/50/50 $100
Partnership
15. Oak Grove $1,359,397 99.99/20/80 $100
Partnership
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS--(Continued)
<CAPTION>
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. Unlimited in $1,415,000 $153,845 $200,000 $1,000 $1,000
amount for
5 years
14. Unlimited in $1,936,000 $106,769 $175,000 $1,000 $1,000
amount for
10 years
15. $200,000 in the $2,251,976 $181,253 $136,262 $3,000 $3,000
aggregate for
3 years
</TABLE>
S-9
<PAGE>
THE ABBY RIDGE PARTNERSHIP
(Abby Ridge Apartments)
Abby Ridge Apartments is a 24-unit single family home development for
families which is being constructed in Elizabethtown, Kentucky. Abby Ridge
Apartments will consist of 24 three-bedroom units contained in 24 buildings.
Individual units will contain a refrigerator, range, washer/dryer
hookups and air conditioning.
Construction of Abby Ridge Apartments began in July, 1998. 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>
6 February, 1999 4 June, 1999
6 March, 1999 4 July, 1999
6 April, 1999 4 August, 1999
6 May, 1999 4 September, 1999
4 October, 1999
4 November, 1999
</TABLE>
THE ALLISON PARTNERSHIP
(Allison Apartments)
Allison Apartments is a 24-unit apartment complex for families which is
being constructed in Mt. Washington, Kentucky. Allison Apartments will consist
of 24 three-bedroom units contained in 5 buildings. The complex will offer a
playground.
Individual units will contain a refrigerator, range, washer/dryer
hookups, dishwasher and air conditioning.
Construction of Allison Apartments began in August, 1998. 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>
8 February, 1999 6 May, 1999
8 March, 1999 6 June, 1999
8 April, 1999 6 July, 1999
6 August, 1999
</TABLE>
THE BALLSTON PARTNERSHIP
(Ballston Pines Apartments)
Ballston Pines Apartments is a 32-unit apartment complex for senior
citizens which is to be constructed on Rowland Street in Ballston Spa, New
York. Ballston Pines Apartments will consist of 32 one-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 a patio or porch.
Construction of Ballston Pines Apartments is anticipated to begin in
June, 1999. 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>
32 May, 2000 10 June, 2000
11 July, 2000
11 August, 2000
</TABLE>
THE CREEKSIDE PARTNERSHIP
(Creekside Apartments)
Creekside Apartments is a 71-unit apartment complex for families which
is to be constructed on River Road in Boerne, Texas. Creekside Apartments will
consist of 23 one-bedroom units, 24 two-bedroom units and 24 three-bedroom
units contained in 8 buildings. The complex will offer a function room, pool
and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher, air
conditioning and a patio or porch.
Construction of Creekside Apartments is anticipated to begin in January,
1999. The Operating General Partners anticipate that construction completion
and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
<S> <C> <C> <C>
11 October, 1999 11 January, 2000
12 November, 1999 12 February, 2000
12 December, 1999 12 March, 2000
12 January, 2000 12 April, 2000
12 February, 2000 12 May, 2000
12 March, 2000 12 June, 2000
</TABLE>
S-10
<PAGE>
THE CANE CREEK PARTNERSHIP
(Cane Creek Apartments)
Cane Creek Apartments is a 25-unit apartment complex for families which
is to be constructed on Cane Creek Road in Bakersville, North Carolina. Cane
Creek Apartments will consist of 18 two-bedroom units, 6 three-bedroom units
and 1 four-bedroom unit contained in 12 buildings. The complex will offer a tot
lot, playground and walking trails.
Individual units will contain a refrigerator, range and washer/dryer
hookups.
Construction of Cane Creek Apartments is anticipated to begin in
October, 1998. 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>
12 February, 1999 8 April, 1999
13 March, 1999 8 May, 1999
9 June, 1999
</TABLE>
THE ELWOOD HEIGHTS PARTNERSHIP
(Elwood Heights Apartments)
Elwood Heights Apartments is a 48-unit apartment complex for families
which is to be constructed on 14th at Connecticut in Elwood, Kansas. Elwood
Heights Apartments will consist of 2 one-bedroom units, 30 two-bedroom units
and 16 three-bedroom units contained in 8 buildings. The complex will offer a
meeting room and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Elwood Heights Apartments is anticipated to begin in
November, 1998. 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>
16 August, 1999 8 September, 1999
16 September, 1999 8 October, 1999
16 October, 1999 8 November, 1999
8 December, 1999
8 January, 2000
8 February, 2000
</TABLE>
THE ELWOOD PARK PLACE PARTNERSHIP
(Elwood Park Place Apartments)
Elwood Park Place Apartments is a 25-unit housing development for
families which is to be constructed on Atlantic between 9 and 13 Streets in
Elwood, Kansas. Elwood Park Place Apartments will consist of 25 three-bedroom
homes.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning, cable television hook-up and a patio or porch.
Construction of Elwood Park Place Apartments is anticipated to begin in
October, 1998. 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>
25 June, 1999 8 July, 1999
8 August, 1999
9 September, 1999
</TABLE>
THE FOREST HILLS PARTNERSHIP
(Forest Hills Apartments)
Forest Hills Apartments is a 20-town home development for families which
is to be constructed on Atlantic and Rustic Avenues in Forest Hills,
Pennsylvania. Forest Hills Apartments will consist of 19 three-bedroom units
and 1 four-bedroom unit contained in 10 buildings. The complex will offer
central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal and a patio or porch.
Construction of Forest Hills Apartments is anticipated to begin in
October, 1998. 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>
5 June, 1999 5 July, 1999
5 July, 1999 5 August, 1999
5 August, 1999 5 September, 1999
5 September, 1999 5 October, 1999
</TABLE>
S-11
<PAGE>
THE HILLSIDE PARTNERSHIP
(Hillside Club Apartments)
Hillside Club Apartments is a 56-unit apartment complex for families
which is to be constructed on Mitchell Road in Bear Creek Township, Michigan.
Hillside Club Apartments will consist of 8 one-bedroom units, 32 two-bedroom
units and 16 three-bedroom units contained in 4 buildings. The complex will
offer a community room, pool, recreation room, individual storage units,
playground and central laundry facilities.
Individual units will contain a refrigerator, range with hood,
dishwasher, disposal, air conditioning and a patio or porch.
Construction of Hillside Club Apartments is anticipated to begin in
March, 1999. The Operating General Partners anticipate that construction
completion and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ----------------- ---------- ---------------
<S> <C> <C> <C>
14 September, 1999 6 October, 1999
14 October, 1999 10 November, 1999
14 November, 1999 10 December, 1999
14 December, 1999 10 January, 2000
10 February, 2000
10 March, 2000
</TABLE>
THE KERRVILLE PARTNERSHIP
(Kerrville Meadows Apartments)
Kerrville Meadows Apartments is a 76-unit apartment complex for families
which is to be constructed on 2200 block of Junction Highway in Kerrville,
Texas. Kerrville Meadows Apartments will consist of 48 one-bedroom units and 28
two-bedroom units contained in 8 buildings. The complex will offer a function
room, pool and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher, air
conditioning and a patio or porch.
Construction of Kerrville Meadows Apartments is anticipated to begin in
January, 1999. The Operating General Partners anticipate that construction
completion and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number Number
of Units Completion of Units Rent-Up
- ---------- ---------------- ---------- ---------------
<S> <C> <C> <C>
12 October, 1999 12 January, 2000
12 November, 1999 12 February, 2000
13 December, 1999 13 March, 2000
13 January, 2000 13 April, 2000
13 February, 2000 13 May, 2000
13 March, 2000 13 June, 2000
</TABLE>
THE MERCHANTS COURT PARTNERSHIP
(Merchants Court Apartments)
Merchants Court Apartments is a 144-unit apartment complex for families
which is to be constructed on Merchants Drive in Dallas, Georgia. Merchants
Court Apartments will consist of 72 one-bedroom units, 36 two-bedroom units and
36 three-bedroom units contained in 12 buildings. The complex will offer a
function room, pool, picnic area, basketball court and central laundry
facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Merchants Court Apartments is anticipated to begin in
January, 1999. 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>
36 July, 1999 18 August, 1999
36 August, 1999 18 September, 1999
36 September, 1999 18 October, 1999
36 October, 1999 18 November, 1999
18 December, 1999
18 January, 2000
18 February, 2000
18 March, 2000
</TABLE>
THE MILLWOOD PARK PARTNERSHIP
(Millwood Park Apartments)
Millwood Park Apartments is a 176-unit apartment complex for families
which is being constructed on Big B Road between Durelee and Sandy Lanes in
Douglasville, Georgia. Millwood Park Apartments will consist of 120 two-bedroom
units and 56 three-bedroom units contained in 12 buildings. The complex will
offer a function room and central laundry facilities.
S-12
<PAGE>
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Millwood Park Apartments began in August, 1998. 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>
26 June, 1999 14 July, 1999
30 July, 1999 18 August, 1999
30 August, 1999 18 September, 1999
30 September, 1999 18 October, 1999
30 October, 1999 18 November, 1999
30 November, 1999 18 December, 1999
18 January, 2000
18 February, 2000
18 March, 2000
18 April, 2000
</TABLE>
THE MONTOUR PARTNERSHIP
(Romeo Village Apartments)
Romeo Village Apartments is a 24-unit apartment complex for senior
citizens which is to be constructed on Broadway in Montour Falls, New York.
Romeo Village Apartments will consist of 24 one-bedroom units contained in 1
building. The complex will offer a function room and central laundry
facilities.
Individual units will contain a refrigerator, range and air
conditioning.
Construction of Romeo Village Apartments is anticipated to begin in
June, 1999. 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 May, 2000 8 June, 2000
8 July, 2000
8 August, 2000
</TABLE>
THE NORTHWOOD PARTNERSHIP
(Northwood Homes Apartments)
Northwood Homes Apartments is a 24-single family home development for
families which is to be constructed in Leitchfield, Kentucky. Northwood Homes
Apartments will consist of 24 three-bedroom homes.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Northwood Homes Apartments is anticipated to begin in
February, 1999. 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>
12 October, 1999 24 January, 2000
12 November, 1999
</TABLE>
THE OAK GROVE PARTNERSHIP
(Oak Grove Village Apartments)
Oak Grove Village Apartments is a 30-unit apartment complex for families
which is to be constructed on Oak Grove Circle in Jefferson, North Carolina.
Oak Grove Village Apartments will consist of 20 two-bedroom units, 8
three-bedroom units and 2 four-bedroom units contained in 16 buildings. The
complex will offer a community room, tot lot, playground and walking trails.
Individual units will contain a refrigerator, range and washer/dryer
hook-ups.
Construction of Oak Grove Village Apartments is anticipated to begin in
October, 1998. 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 February, 1999 6 April, 1999
10 March, 1999 6 May, 1999
10 April, 1999 6 June, 1999
6 July, 1999
6 August, 1999
</TABLE>
S-13
<PAGE>
The Fund is now offering BACs in Series 34. The previous series are each
distinct and investors in Series 34 will have no rights or interests in any
previous series. Prospective investors should note that disclosure respecting
Series 34 is included in the Prospectus, to which this sticker supplement is
appended, and the Supplement which follows this Prospectus.
The Supplement which follows the Prospectus includes the following items:
[bullet] information about the Apartment Complexes which Series 34 anticipates
investing in
[bullet] other important information which modifies or supplements the
information included in the Prospectus
