Y
JANUARY 5, 1998
SUPPLEMENT NO. 4 TO PROSPECTUS FOR
BOSTON CAPITAL TAX CREDIT FUND IV L.P.
DATED
AUGUST 1, 1997
(SUPPLEMENT OFFERING AND EXPANDING BCTC IV SERIES 31
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. 4 supersedes
all previous supplements to the Prospectus.
Results of BCTC IV Series 30
- ----------------------------
The Fund received orders for a total of 2,651,925 BACs ($26,500,000)
with respect to Series 30, and issued the last of such Series 30 BACs on
September 10, 1997. The aggregate fees paid as of September 10, 1997 to the
General Partner and Affiliates with respect to Series 30 were $3,113,750. No
additional BACs will be offered with respect to Series 30. The Fund has issued a
total of 33,957,577 BACs, raised $339,532,000 and admitted 20,257 Investors with
respect to Series 20 through 30 and may still sell up to $20,424,230 to the
public if all the BACs in Series 31 are sold. (See "Prior Performance of the
General Partner and its Affiliates" in the Prospectus for information about
Series 20 through 28.)
Expansion of BCTC IV Series 31
- ------------------------------
The General Partner is authorized to increase the offering amount of
any series of BACs up to the total amount of authorized but unissued BACs at any
time prior to the final issuance of BACs with respect to such series. (See "The
Offering -- Issuance of BACs in Series".) Based on the current assessment by the
General Partner and the Dealer-Manager of the marketing results as to the sale
of BACs in Series 31 and of the Fund's ability to identify and acquire, on
behalf of Series 31, Interests in Operating Partnerships which will meet its
investment criteria (see "Investment Objectives and Acquisition Policies"), the
offering of BACs in Series 31 hereby is increased from 4,000,000 BACs
($40,000,000) to 5,000,000 BACs ($50,000,000). The Operating Partnerships and
Apartment Complexes that have been identified represent 75% of the proceeds
available for investment from the expanded offering. Any such additional
investments will meet the criteria set forth in the Prospectus under "Investment
Objectives and Acquisition Policies" and "Investment in Operating Partnerships".
To the extent additional Operating Partnership Interests are acquired, the
Fund's ability to diversify the Series 31 portfolio (by expanding the number of
Operating Partnerships invested in by the Fund) will be increased (See "Risk
Factors -- Risk of Limited Diversification"). See "Risk Factors -- Risk of
Unspecified Investments" regarding the Fund's ability to acquire Operating
Partnership Interests.
Offering of BCTC IV Series 31
- -----------------------------
The Fund is offering, effective September 16, 1997, the twelfth series
of BACs ("Series 31") consisting of 5,000,000 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. As of the date hereof,
the Fund has received orders for a total of 3,955,750 BACs ($39,557,750) with
respect to Series 31. The offering of BACs in Series 31 will not exceed 12
months.
THE PURCHASE OF BACS IN SERIES 31 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 31, limited
partnership interests in the twenty-eight (28) 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
<PAGE>
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 $1.10 to $1.30 per
BAC annually in Series 31, which would be the equivalent of an approximate 11% -
13% annual Tax Credit as a percentage of capital invested, for the ten year
credit period applicable to each Apartment Complex in which Series 31 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 5.2%-7.1% for
Investors with taxable income which is taxed at that time in the 15%-39.6% tax
brackets, respectively. (See "Federal Income Tax Matters - Passive Loss and Tax
Credit Limitations" for a discussion of offsetting an Investor's loss of Capital
Contribution against active income.) If the Apartment Complexes appreciate in
value, such increased value can be recognized through sales of Operating
Partnership Interests or the sale or refinancing of Apartment Complexes (even
though the restrictions and compliance requirements of the Federal Housing Tax
Credit program will continue to apply to such Apartment Complexes at that time),
and Investors receive distributions from such sales, the equivalent tax-free
internal rate of return will be greater.
The selection of a 11% - 13% annual Tax Credit as a percentage of
capital invested, as an investment objective, has been made by the Fund after
consulting with the Dealer-Manager regarding tax-free returns currently
available to investors in other similar tax credit investments. Pursuant to the
rules for the allocation of Federal Housing Tax Credits, the Fund's investment
goal is for the following annual tax-free amounts (for each $10,000 investment
in Series 31): $200 - $400 in 1998; $600 - $800 in 1999; $1,100 - $1,300 in 2000
- - 2007; $800 - $1,000 in 2008 and $300 - $500 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 31
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 31
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 31.
While the General Partner believes that the Fund, on behalf of Series
31, 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.
<PAGE>
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 $50 million is raised for Series
31, the anticipated acquisition of the Operating Partnership Interests,
described hereinafter, will represent approximately 75% of the total money which
the Fund currently expects to spend on behalf of Series 31.
Management's Discussion and Analysis of Financial Condition and Results of
- --------------------------------------------------------------------------
Operations
- ----------
Since Series 31 is currently in the offering phase, it has no material
assets nor any operating history. The twenty-eight (28) 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>
1. Bent Tree L.P. G. Granger MacDonald
(the "Bent Tree Partnership") Sally A. Gaskin
2. Brittney Square L.P. Garry Watkins
(the "Brittney Square Partnership") Dennis Buckles
3. Buffalo Run L.L.C. Stephen Grimshaw
(the "Buffalo Run Partnership")
4. Canton IV L.P. Intervest Corporation
(the "Canton Manor Partnership")
5. Canton II L.P. Intervest Corporation
(the "Canton Village Partnership")
6. Double Springs Manor II L.P. Garry Watkins
(the "Double Springs Partnership") Dennis Buckles
7. Eagle's Ridge L.P. Fountainhead Company
(the "Eagle's Ridge Partnership")
8. Ellisville Housing L.P. Intervest Corporation
(the "Elmwood Partnership")
9. Giles L.P. GEM Management, Inc.
(the "Giles Partnership")
10. Hampden L.P. Sencit Associates
(the "Hampden Partnership")
11. Hays Manor L.P. Allegheny County Housing Authority
(the "Hays Manor Partnership")
12. Henderson Terrace L.P. Fountainhead Company
(the "Henderson Terrace Partnership")
13. Hurricane Hills II L.C. David W. Adams
(the "Hurricane Hills Partnership")
14. Lakeview Court L.P. Fountainhead Company
(the "Lakeview Court Partnership")
15. Canton I L.P. Intervest Corporation
(the "Madison Heights Partnership")
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Partnership General Partner(s)
----------- ------------------
<S> <C>
16. Manchester Lakes L.P. First Centrum Corporation
(the "Manchester Lakes Partnership")
17. Mesquite Trails L.P. Fountainhead Company
(the "Mesquite Trails Partnership")
18. Montfort L.P. Liberty Group
(the "Montfort Partnership")
19. Northpark Apartments L.P. Fountainhead Company
(the "Northpark Partnership")
20. Nottoway Manor L.P. GEM Management, Inc.
(the "Nottoway Partnership")
21. Parkland Partnership L.P. J.H. Thames, Jr.
(the "Parkland Partnership") Rodney Triplett
22. Heritage I L.P. Phillips Development Corporation
(the "Park Ridge Partnership")
23. Pilot Point L.P. Fountainhead Company
(the "Pilot Point Partnership")
24. Plantersville L.P. Intervest Corporation
(the "Plantersville Partnership")
25. Riverbend Apartments L.P. Realty Resources Chartered
(the "Riverbend Partnership") Joseph M. Cloutier
26. Canton III L.P. Intervest Corporation
(the "Royal Estates Partnership")
27. Hattiesburg Housing L.P. Intervest Corporation
(the "Springs Manor Partnership")
28. Windsor Park L.P. J.H. Thames, Jr.
(the "Windsor Park Partnership") Park Development
</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. The Apartment Complexes described in this Supplement are anticipated to
complete construction or rehabilitation, as applicable, during 1998 and 1999.
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.
<PAGE>
The Priority Return Base for Series 31 is $1.20 per BAC (12%). (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.
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
<TABLE>
<CAPTION>
Basic Government Permanent
Location Number Monthly(1) Assistance Mortgage
Partnership Name of Property of Units Rents Anticipated Loan (3)
- ---- ------------------ -------------------- ----------- ------------- ------------------- -----------------
<S> <C> <C> <C> <C> <C> <C>
$376-
$462 2BR BCMC, Inc.
Bent Tree San Angelo, $432- Federal Housing $2,800,000
1. Partnership Texas 112 $531 3BR Tax Credits (4)
Kentucky
Housing
Assisted Loan Corporation
Brittney Square Bowling Green, Program $660,000
2. Partnership Kentucky 20 $440 3BR (5) (5)
Wyoming
Community
HOME Investment Development
$282 1BR Partnerships Authority
Buffalo Run Rawlins, $337 2BR Program $550,000
3. Partnership Wyoming 28 $389 3BR (6) (6)
FmHA Sec. 515; $300,000
HOME Investment Mississippi
Partnerships Home Corporation
Canton Manor $315 1BR Program $230,000
4. Partnership Canton, Mississippi 32 $340 2BR (7) (7)
FmHA Sec. 515; $400,000
HOME Investment Mississippi
Partnerships Home Corporation
Canton Village $315 1BR Program $300,000
5. Partnership Canton, Mississippi 42 $340 2BR (8) (8)
Kentucky
Housing
Multifamily Corporation
Double Springs Bowling Green, $270 1BR Production Program $416,000
6. Partnership Kentucky 25 $315 2BR (9) (9)
FmHA Sec. 515
Eagle's Ridge Decatur, $224 1BR with 100% rental
7. Partnership Texas 24 $239 2BR assistance $1,462,000
FmHA Sec. 515
Elmwood Ellisville, $265 1BR with 100% rental
8. Partnership Mississippi 32 $300 2BR assistance $850,000
<CAPTION>
Mortgage Annual Annual
Interest Reserve Management
Partnership Name Rate Amount Management Agent Fee
- ---- ------------------ --------------- ----------------- ----------------- ---------------
<S> <C> <C> <C> <C> <C>
First
Interstate
Bent Tree Management 6% of net
1. Partnership 9% $22,400 Corporation rental income
Brittney Square 6% of net
2. Partnership 6% $4,000 Homeland, Inc. rental income
Buffalo Run Grimshaw 6% of net
3. Partnership 8% $5,600 Investments rental income
$22 per
Canton Manor 1% (2) Intervest occupied unit
4. Partnership 1% $6,400 Management per month
$22 per
Canton Village 1% (2) Intervest occupied unit
5. Partnership 1% $8,400 Management per month
Double Springs 5% of net
6. Partnership 3% $6,250 Homeland, Inc. rental income
$24 per
Eagle's Ridge Fountainhead occupied unit
7. Partnership 1% (2) $4,800 Management per month
$24 per
Elmwood Intervest occupied unit
8. Partnership 1% (2) $6,400 Management per month
</TABLE>
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
<TABLE>
<CAPTION>
Basic Government Permanent
Location Number Monthly(1) Assistance Mortgage
Partnership Name of Property of Units Rents Anticipated Loan (3)
- ---- ------------------ -------------------- ----------- ------------- ------------------- -----------------
<S> <C> <C> <C> <C> <C> <C>
FmHA Sec. 515
Amelia, $267 1BR with 50% rental
9. Giles Partnership Virginia 16 $302 2BR assistance $737,200
Pennsylvania
Housing Finance
Agency
HOME Investment $680,000(a)
Partnerships Pennsylvania
$380- Program(a) Housing Finance
$481 2BR Penn Homes Agency
Hampden Hampden Township, $489- Program(b) $1,440,000(b)
10. Partnership Pennsylvania 61 $602 3BR (10) (10)
U.S. Housing
and Urban
$280 1BR Comprehensive Development
$315 2BR Modernization Department
Hays Manor McKees Rocks, $360 3BR Grant Program $8,200,000
11. Partnership Pennsylvania 138 $400 4BR (11) (11)
Henderson FmHA Sec. 515
Terrace Bridgeport, $218 1BR with 100% rental
12. Partnership Texas 24 $247 2BR assistance $364,000
$306-
$501 3BR BCMC, Inc.
Hurricane Hills Hurricane, $337- Federal Housing $805,000
13. Partnership Utah 28 $559 4BR Tax Credits (12)
FmHA Sec. 515
Lakeview Court Little Elm, $217 1BR with 100% rental
14. Partnership Texas 24 $238 2BR assistance $248,000
FmHA Sec. 515; $975,000
HOME Investment Mississippi
Partnerships Home Corporation
Madison Heights $315 1BR Program $500,000
15. Partnership Canton, Mississippi 80 $340 2BR (13) (13)
<CAPTION>
Mortgage Annual Annual
Interest Reserve Management
Partnership Name Rate Amount Management Agent Fee
- ---- ------------------ --------------- ----------------- ----------------- ---------------
<S> <C> <C> <C> <C> <C>
$24 per
GEM Management, occupied unit
9. Giles Partnership 1% (2) $4,000 Inc. per month
1%
Hampden Sencit 6% of net
10. Partnership 8% $18,300 Management rental income
Hays Manor PennRose 6% of net
11. Partnership 0% $27,600 Properties rental income
Henderson $24 per
Terrace Fountainhead occupied unit
12. Partnership 1% (2) $4,800 Management per month
Adams
Hurricane Hills Management 6% of net
13. Partnership 9% $4,200 Company rental income
$24 per
Lakeview Court Fountainhead occupied unit
14. Partnership 1% (2) $4,800 Management per month
$20 per
Madison Heights 1% (2) Intervest occupied unit
15. Partnership 1% $16,000 Management per month
</TABLE>
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
<TABLE>
<CAPTION>
Basic Government Permanent
Location Number Monthly(1) Assistance Mortgage
Partnership Name of Property of Units Rents Anticipated Loan (3)
- ---- ------------------ -------------------- ----------- ------------- ------------------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Midland
Mortgage
Investment
$520 1BR Corporation
Manchester Lakes Alexandria, $585 2BR Federal Housing $3,169,000
16. Partnership Virginia 136 $640 3BR Tax Credits (14)
FmHA Sec. 515
Mesquite Trails Jacksboro, $213 1BR with 100% rental
17. Partnership Texas 24 $239 2BR assistance $592,000
$441 1BR Maine Housing
$502 2BR Tax Exempt Bond Authority
Montfort Portland, $568 3BR Financing Program $3,650,000
18. Partnership Maine 140 $610 4BR (15) (15)
FmHA Sec. 515
Northpark $224 1BR with 100% rental
19. Partnership Marietta, Oklahoma 24 $248 2BR assistance $1,530,000
FmHA Sec. 515
Nottoway Blackstone, $287 1BR with 50% rental
20. Partnership Virginia 28 $312 2BR assistance $889,400
$309-
$379 1BR
$367- BCMC, Inc.
Parkland Cleveland, $451 2BR Federal Housing $1,800,000
21. Partnership Tennessee 84 $508 3BR Tax Credits (16)
$310 1BR FmHA Sec. 515
Park Ridge McKee, $350 2BR with 100% rental
22. Partnership Kentucky 22 $380 3BR assistance $897,750
FmHA Sec. 515
Pilot Point $202 1BR with 100% rental
23. Partnership Pilot Point, Texas 24 $246 2BR assistance $492,000
FmHA Sec. 515
Plantersville Plantersville, $265 1BR with 100% rental
24. Partnership Mississippi 24 $300 2BR assistance $800,000
<CAPTION>
Mortgage Annual Annual
Interest Reserve Management
Partnership Name Rate Amount Management Agent Fee
- ---- ------------------ --------------- ----------------- ----------------- ---------------
<S> <C> <C> <C> <C> <C>
Manchester Lakes Centrum 6% of net
16. Partnership 9% $27,200 Management rental income
$24 per
Mesquite Trails Fountainhead occupied unit
17. Partnership 1% (2) $4,800 Management per month
Liberty
Montfort Management 5% of net
18. Partnership 7% $28,000 Company rental income
$24 per
Northpark Fountainhead occupied unit
19. Partnership 1% (2) $4,800 Management per month
$23 per
Nottoway GEM Management, occupied unit
20. Partnership 1% (2) $7,000 Inc. per month
Parkland 5% of net
21. Partnership 9% $16,800 Park Management rental income
Phillips $22 per
Park Ridge Development occupied unit
22. Partnership 1% (2) $8,900 Corporation per month
$24 per
Pilot Point Fountainhead occupied unit
23. Partnership 1% (2) $4,800 Management per month
$22 per
Plantersville Intervest occupied unit
24. Partnership 1% (2) $4,800 Management per month
</TABLE>
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
<TABLE>
<CAPTION>
Basic Government Permanent
Location Number Monthly(1) Assistance Mortgage
Partnership Name of Property of Units Rents Anticipated Loan (3)
- ---- ------------------ -------------------- ----------- ------------- ------------------- -----------------
<S> <C> <C> <C> <C> <C> <C>
Maine State
$258- Housing
$495 2BR Rental Loan Authority
Riverbend Biddeford, $296- Program $925,000
25. partnership Maine 28 $570 3BR (17) (17)
FmHA Sec. 515; $300,000
HOME Investment Mississippi
Partnerships Home Corporation
Royal Estates $315 1BR Program $230,000
26. Partnership Canton, Mississippi 32 $340 2BR (18) (18)
FmHA Sec. 515
Springs Manor Hattiesburg, $265 1BR with 100% rental
27. Partnership Mississippi 32 $300 2BR assistance $875,000
Mississippi
$419 1BR Tax Exempt Bond Home Corporation
Windsor Park Jackson, $495 2BR Financing Program $7,500,000
28. Partnership Mississippi 279 $562 3BR (19) (19)
<CAPTION>
Mortgage Annual Annual
Interest Reserve Management
Partnership Name Rate Amount Management Agent Fee
- ---- ------------------ --------------- ----------------- ----------------- ---------------
<S> <C> <C> <C> <C> <C>
Realty
Riverbend Resources 6% of net
25. partnership 6% $5,600 Management rental income
$22 per
Royal Estates 1% (2) Intervest occupied unit
26. Partnership 1% $6,400 Management per month
$22 per
Springs Manor Intervest occupied unit
27. Partnership 1% (2) $6,400 Management per month
Windsor Park 6% of net
28. Partnership 8% $69,750 Park Development rental income
</TABLE>
<PAGE>
(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) The terms of the Bent Tree Partnership's anticipated permanent first
mortgage loan in the amount of $2,800,000 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.
(5) The terms of the Brittney Square Partnership's anticipated permanent
first mortgage loan in the amount of $660,000 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.
(6) The terms of the Buffalo Run Partnership's anticipated permanent first
mortgage loan in the amount of $550,000 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.
(7) The terms of the Canton Manor Partnership's anticipated permanent
second mortgage loan in the amount of $230,000 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.
(8) The terms of the Canton Village Partnership's anticipated permanent
second mortgage loan in the amount of $400,000 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.
(9) The terms of the Double Springs Partnership's anticipated permanent
first mortgage loan in the amount of $4,160,000 are expected to include
a term of 30 years, an interest rate of 3% and payments of principal
and interest on the basis of a 30 year amortization schedule.
(10) (a) The terms of the Hampden Partnership's anticipated permanent
first mortgage loan in the amount of $680,000 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.
(b) The terms of the Hampden Partnership's anticipated permanent
second mortgage loan in the amount of $1,440,000 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, provided, however, that the terms of the permanent
second mortgage loan will provide for the deferral and accrual
of payments of principal and interest based on available cash
flow, and for the payment of the entire outstanding balance of
principal and interest at the end of the 30-year term.
(11) The terms of the Hays Manor Partnership's anticipated permanent first
mortgage loan in the amount of $8,200,000 are expected to include a
term of 30 years, an interest rate of 0% and payments of principal 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 based on available cash
flow, and for the payment of the entire outstanding balance of
principal at the end of the 30-year term.
(12) The terms of the Hurricane Hills Partnership's anticipated permanent
first mortgage loan in the amount of $805,000 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.
(13) The terms of the Madison Heights Partnership's anticipated permanent
second mortgage loan in the amount of $500,000 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.
<PAGE>
(14) The terms of the Manchester Lakes Partnership's anticipated permanent
first mortgage loan in the amount of $3,169,000 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.
(15) The terms of the Montfort Partnership's anticipated permanent first
mortgage loan in the amount of $3,650,000 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 Parkland Partnership's anticipated permanent first
mortgage loan in the amount of $1,800,000 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.
(17) The terms of the Riverbend Partnership's anticipated permanent first
mortgage loan in the amount of $925,000 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.
(18) The terms of the Royal Estates Partnership's anticipated permanent
second mortgage loan in the amount of $230,000 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.
(19) The terms of the Windsor Park Partnership's anticipated permanent first
mortgage loan in the amount of $7,500,000 include a term of 3 years, an
interest rate of 8% and payments of principal and interest on the basis
of a 30 year amortization schedule.
<PAGE>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS
<TABLE>
<CAPTION>
Ownership
Interest (%)
Profits,
Losses, Operating
BCTC IV Credit/Net General Operating Operating
Partnership Capital Cash Partner Deficit Partnership's
Name Contribution Flow/Backend Contribution Guarantee Credit Base
---- ------------ ------------ ------------ --------- -----------
<S> <C> <C> <C> <C> <C> <C>
1. Bent Tree $3,557,323 100/30/30 $100 Unlimited $5,853,000
Partnership in amount
for 3 years
2. Brittney $676,520 100/20/50 $100 $200,000 in $1,185,000
Square the aggregate
Partnership for 5 years
3. Buffalo Run $732,036 100/30/35 $100 $150,000 in $1,187,000
Partnership the aggregate
for 3 years
4. Canton $271,305 99/50/50 $100 Unlimited $530,000
Manor in amount
Partnership for 5 years
5. Canton $363,558 99/50/50 $100 Unlimited $687,545
Village in amount
Partnership for 5 years
6. Double Springs $655,020 99/20/50 $100 $200,000 $1,174,000
Partnership in the
aggregate
for 5 years
7. Eagle's Ridge $485,996 100/50/50 $19,000 Unlimited $1,917,900
Partnership in time
and amount
8. Elmwood $243,483 99/50/50 $21,312 Unlimited $1,100,000
Partnership in amount
for 5 years
9. Giles $207,324 99/50/50 $12,400 Unlimited $878,000
Partnership in time
and amount
10. Hampden $2,690,000 99.9/30/30 $100 $140,000 $4,516,000
Partnership in the
aggregate
for 3 years
11. Hays Manor $2,735,978 100/20/20 $100 Unlimited $10,571,700
Partnership in time
and amount
12. Henderson $124,462 100/50/50 $8,000 Unlimited $491,160
Terrace in time
Partnership and amount
13. Hurricane $2,020,071 99/20/20 $100 Unlimited $3,514,178
Hills in amount
Partnership for 3 years
14. Lakeview $94,220 100/50/50 $7,500 Unlimited $371,900
Court in time
Partnership and amount
<CAPTION>
Fund's
Approximate
Average Development Annual
Annual Fee/Other Partnership Asset
Anticipated Distributions Management Management
Partnership Federal to Operating Fee to Fee to Boston
Name Credit GP Operating GP Capital
---- ------ -- ------------ -------
<S> <C> <S> <C> <C> <C>
1. Bent Tree $485,641 $706,000 $5,000 $5,000
Partnership
2. Brittney $102,503 $130,000 $750 $750
Square
Partnership
3. Buffalo Run $100,279 $136,000 $2,800 $2,800
Partnership
4. Canton $41,107 $70,000 $1,000 $1,000
Manor
Partnership
5. Canton $55,084 $80,000 $1,000 $1,000
Village
Partnership
6. Double Springs $99,246 $119,000 $2,000 $2,000
Partnership
7. Eagle's Ridge $69,428 $125,000 $750 $750
Partnership
8. Elmwood $36,891 $25,000 $750 $750
Partnership
9. Giles $31,413 $45,000 $500 $500
Partnership
10. Hampden $386,493 $575,950 $6,100 $6,100
Partnership
11. Hays Manor $380,000 $1,300,000 $5,000 $5,000
Partnership
12. Henderson $17,780 $80,000 $750 $750
Terrace
Partnership
13. Hurricane $310,811 $190,000 $2,800 $2,800
Hills
Partnership
14. Lakeview $13,460 $80,000 $750 $750
Court
Partnership
</TABLE>
<PAGE>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS
<TABLE>
<CAPTION>
Ownership
Interest (%)
Profits,
Losses, Operating
BCTC IV Credit/Net General Operating Operating
Partnership Capital Cash Partner Deficit Partnership's
Name Contribution Flow/Backend Contribution Guarantee Credit Base
---- ------------ ------------ ------------ --------- -----------
<S> <C> <C> <C> <C> <C> <C>
15. Madison $786,615 99/50/50 $100 Unlimited $1,463,000
Heights in amount
Partnership for 5 years
16. Manchester $3,237,773 99/20/50 $100 Unlimited $5,762,000
Lakes in amount
Partnership for 4 years
17. Mesquite $208,027 100/50/50 $19,000 Unlimited $765,700
Trails in time
Partnership and amount
18. Montfort $777,411 99/40/40 $100 Unlimited $3,422,000
Partnership in amount
for 5 years
19. Northpark $489,300 100/50/50 $22,000 Unlimited $1,910,000
Partnership in time
and amount
20. Nottoway $246,972 99/50/50 $17,500 Unlimited $1,164,000
Partnership in time
and amount
21. Parkland $3,363,097 100/10/35 $100 Unlimited $5,977,000
Partnership in amount
for 3 years
22. Park Ridge $338,464 99/50/50 $47,250 Unlimited $1,700,000
Partnership in amount
for 3 years
23. Pilot Point $159,585 100/50/50 $12,000 Unlimited $616,000
Partnership in time
and amount
24. Plantersville $160,806 99/50/50 $24,121 Unlimited $1,020,000
Partnership in amount
for 5 years
<CAPTION>
Fund's
Approximate
Average Development Annual
Annual Fee/Other Partnership Asset
Anticipated Distributions Management Management
Partnership Federal to Operating Fee to Fee to Boston
Name Credit GP Operating GP Capital
---- ------ -- ------------ -------
<S> <C> <S> <C> <C> <C>
15. Madison $119,184 $150,000 $1,000 $1,000
Heights
Partnership
16. Manchester $490,572 $470,000 $10,000 $10,000
Lakes
Partnership
17. Mesquite $29,718 $120,000 $750 $750
Trails
Partnership
18. Montfort $123,400 $300,000 $14,000 $14,000
Partnership
19. Northpark $69,900 $140,000 $1,000 $1,000
Partnership
20. Nottoway $37,420 $55,000 $500 $500
Partnership
21. Parkland $492,124 $448,000 $5,000 $5,000
Partnership
22. Park Ridge $52,071 $170,000 $500 $500
Partnership
23. Pilot Point $22,798 $100,000 $750 $750
Partnership
24. Plantersville $25,126 $20,000 $500 $500
Partnership
</TABLE>
<PAGE>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS
<TABLE>
<CAPTION>
Ownership
Interest (%)
Profits,
Losses, Operating
BCTC IV Credit/Net General Operating Operating
Partnership Capital Cash Partner Deficit Partnership's
Name Contribution Flow/Backend Contribution Guarantee Credit Base
---- ------------ ------------ ------------ --------- -----------
<S> <C> <C> <C> <C> <C> <C>
25. Riverbend $1,633,500 100/50/50 $100 Unlimited $2,930,000
Partnership in amount
for 3 years
26. Royal Estates $282,524 99/50/50 $100 Unlimited $530,000
Partnership in amount
for 5 years
27. Springs $328,693 99/50/50 $26,071 Unlimited $1,425,000
Manor in amount
Partnership for 5 years
28. Windsor Park $2,723,780 100/75/50 $100 Unlimited $11,231,000
Partnership in amount
for 10 years
<CAPTION>
Fund's
Approximate
Average Development Annual
Annual Fee/Other Partnership Asset
Anticipated Distributions Management Management
Partnership Federal to Operating Fee to Fee to Boston
Name Credit GP Operating GP Capital
---- ------ -- ------------ -------
<S> <C> <S> <C> <C> <C>
25. Riverbend $247,500 $320,000 $2,800 $2,800
Partnership
26. Royal Estates $42,807 $70,000 $1,000 $1,000
Partnership
27. Springs $49,802 $25,000 $750 $750
Manor
Partnership
28. Windsor Park $406,534 $723,000 $8,000 $8,000
Partnership
</TABLE>
<PAGE>
THE BENT TREE PARTNERSHIP
(Bent Tree Apartments)
Bent Tree Apartments is a 112-unit apartment complex for families which
is to be constructed in San Angelo, Texas. Bent Tree Apartments will consist of
72 two-bedroom units and 40 three-bedroom units contained in 12 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 Bent Tree Apartments is anticipated to begin in June,
1998. The Operating General Partners anticipate that construction completion and
occupancy will occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
18 December, 1998 18 January, 1999
18 January, 1999 18 February, 1999
19 February, 1999 19 March, 1999
19 March, 1999 19 April, 1999
19 April, 1999 19 May, 1999
19 May, 1999 19 June, 1999
THE BRITTNEY SQUARE PARTNERSHIP
(Brittney Square Apartments)
Brittney Square Apartments is a 20-unit apartment complex for families
which is to be constructed in Bowling Green, Kentucky. Brittney Square
Apartments will consist of 20 three-bedroom units contained in 4 buildings. The
complex will offer a playground and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal and a patio or porch.
Construction of Brittney Square Apartments is anticipated to begin in
February, 1998. The Operating General Partners anticipate that construction
completion and occupancy will occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
10 September, 1998 10 October, 1998
10 October, 1998 10 November, 1998
THE BUFFALO RUN PARTNERSHIP
(Buffalo Run Apartments)
Buffalo Run Apartments is an existing 28-unit apartment complex for
families which is to be rehabilitated on 8th and Buffalo Streets in Rawlins,
Wyoming. Buffalo Run Apartments will consist of 7 one-bedroom units, 16
two-bedroom units and 5 three-bedroom units contained in 4 buildings. The
complex will offer a meeting room and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher and a
patio or porch.
<PAGE>
Rehabilitation of Buffalo Run Apartments is anticipated to begin in
February, 1998. The Operating General Partner anticipates that completion of
rehabilitation and occupancy will occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
7 November, 1998 7 January, 1999
7 December, 1998 7 February, 1999
7 January, 1999 7 March, 1999
7 February, 1999 7 April, 1999
THE CANTON MANOR PARTNERSHIP
(Canton Manor Apartments)
Canton Manor Apartments is an existing 32-unit apartment complex for
families which is being rehabilitated in Canton, Mississippi. Canton Manor
Apartments will consist of 20 one-bedroom units and 12 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 and a patio or
porch.
Rehabilitation of Canton Manor Apartments is underway. The Operating
General Partner anticipates that completion of rehabilitation and occupancy will
occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
16 September, 1998 16 October, 1998
16 October, 1998 16 November, 1998
THE CANTON VILLAGE PARTNERSHIP
(Canton Village Apartments)
Canton Village Apartments is an existing 42-unit apartment complex for
families which is being rehabilitated in Canton, Mississippi. Canton Village
Apartments will consist of 30 one-bedroom units, and 12 two-bedroom units
contained in 7 buildings. The complex will offer a function room and central
laundry facilities.
Individual units will contain a refrigerator, range and a patio or
porch.
Rehabilitation of Canton Village Apartments is underway. The Operating
General Partner anticipates that completion of rehabilitation and occupancy will
occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
21 September, 1998 21 October, 1998
21 October, 1998 21 November, 1998
THE DOUBLE SPRINGS PARTNERSHIP
(Double Springs Manor Apartments)
Double Springs Manor Apartments is a 25-unit apartment complex for
families which is to be constructed in Bowling Green, Kentucky. Double Springs
Manor Apartments will consist of 9 one-bedroom units and 16 two-bedroom units
contained in 1 building. The complex will offer a meeting room and central
laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal and air conditioning.
<PAGE>
Construction of Double Springs Manor Apartments is anticipated to begin
in March, 1998. The Operating General Partners anticipate that construction
completion and occupancy will occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
25 July, 1998 8 August, 1998
8 September, 1998
9 October, 1998
THE EAGLE'S RIDGE PARTNERSHIP
(Eagle's Ridge Apartments)
Eagle's Ridge Apartments is an existing 24-unit apartment complex for
families which is being rehabilitated in Decatur, Texas. Eagle's Ridge
Apartments will consist of 18 one-bedroom units and 6 two-bedroom units
contained in 6 buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning
and a patio or porch.
Rehabilitation of Eagle's Ridge Apartments is underway. The Operating
General Partner anticipates that completion of rehabilitation and occupancy will
occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
12 August, 1998 8 September, 1998
12 September, 1998 8 October, 1998
8 November, 1998
THE ELMWOOD PARTNERSHIP
(Elmwood Apartments)
Elmwood Apartments is an existing 32-unit apartment complex for
families which is being rehabilitated in Ellisville, Mississippi. Elmwood
Apartments will consist of 20 one-bedroom units and 12 two-bedroom units
contained in 8 buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range and a patio or
porch.
Rehabilitation of Elmwood Apartments is underway. The Operating General
Partner anticipates that completion of rehabilitation and occupancy will occur
as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
16 September, 1998 16 October, 1998
16 October, 1998 16 November, 1998
THE GILES PARTNERSHIP
(Giles Apartments)
Giles Apartments is an existing 16-unit apartment complex for families
which is to be rehabilitated in Amelia, Virginia. Giles Apartments will consist
of 8 one-bedroom units and 8 two-bedroom units contained in 2 buildings. The
complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning
and a patio or balcony.
<PAGE>
Rehabilitation of Giles Apartments is anticipated to begin in February,
1998. The Operating General Partner anticipates that completion of
rehabilitation and occupancy will occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
16 April, 1998 16 May, 1998
THE HAMPDEN PARTNERSHIP
(Roth Village Apartments)
Roth Village Apartments is a 61-unit apartment complex for families
which is being constructed on Roth Lane in Hampden Township, Pennsylvania. Roth
Village Apartments will consist of 53 two-bedroom units and 8 three-bedroom
units contained in 7 buildings. The complex will offer a meeting/function room,
playground and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher, cable
television hook-up and a patio or porch.
Construction of Roth Village Apartments is underway. The Operating
General Partner anticipates that construction completion and occupancy will
occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
16 November, 1998 31 January, 1999
15 December, 1998 15 February, 1999
15 January, 1999 15 March, 1999
15 February, 1999
THE HAYS MANOR PARTNERSHIP
(Hays Manor Apartments)
Hays Manor Apartments is an existing 138-unit apartment complex for
families which is being rehabilitated on Locust and Linden Streets in McKees
Rocks, Pennsylvania. Hays Manor Apartments will consist of 24 one-bedroom units,
72 two-bedroom units, 36 three-bedroom units and 6 four-bedroom units contained
in 12 buildings. The complex will offer a function building, baseball field,
playground, 2 tot lots and central laundry facilities.
Individual units will contain a refrigerator, range and dishwasher.
Rehabilitation of Hays Manor Apartments is underway. The Operating
General Partner anticipates that completion of rehabilitation and occupancy will
occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
12 February, 1998 12 March, 1998
14 March, 1998 14 April, 1998
14 April, 1998 14 May, 1998
14 May, 1998 14 June, 1998
14 June, 1998 14 July, 1998
14 July, 1998 14 August, 1998
14 August, 1998 14 September, 1998
14 September, 1998 14 October, 1998
14 October, 1998 14 November, 1998
14 November, 1998 14 December, 1998
<PAGE>
THE HENDERSON TERRACE PARTNERSHIP
(Henderson Terrace Apartments)
Henderson Terrace Apartments is an existing 24-unit apartment complex
for families which is being rehabilitated in Bridgeport, Texas. Henderson
Terrace Apartments will consist of 18 one-bedroom units and 6 two-bedroom units
contained in 6 buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning
and a patio or porch.
Rehabilitation of Henderson Terrace Apartments is underway. The
Operating General Partner anticipates that completion of rehabilitation and
occupancy will occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
12 August, 1998 8 September, 1998
12 September, 1998 8 October, 1998
8 November, 1998
THE HURRICANE HILLS PARTNERSHIP
(Hurricane Hills Apartments)
Hurricane Hills Apartments is a 28-unit apartment complex for families
which is being constructed on West 50 Street South in Hurricane, Utah. Hurricane
Hills Apartments will consist of 14 three-bedroom units and 14 four-bedroom
units contained in 14 buildings. The complex will offer a garage and central
laundry facilities.
Individual units will contain a refrigerator, range with exhaust fan,
dishwasher, disposal, air conditioning, cable television hook-up and a patio or
porch.
Construction of Hurricane Hills Apartments is underway. The Operating
General Partner anticipates that construction completion and occupancy will
occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
8 October, 1998 8 November, 1998
10 November, 1998 10 December, 1998
10 December, 1998 10 January, 1999
THE LAKEVIEW COURT PARTNERSHIP
(Lakeview Court Apartments)
Lakeview Court Apartments is an existing 24-unit apartment complex for
families which is being rehabilitated in Little Elm, Texas. Lakeview Court
Apartments will consist of 18 one-bedroom units and 6 two-bedroom units
contained in 8 buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning
and a patio or porch.
<PAGE>
Rehabilitation of Lakeview Court Apartments is underway. The Operating
General Partner anticipates that completion of rehabilitation and occupancy will
occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
12 August, 1998 8 September, 1998
12 September, 1998 8 October, 1998
8 November, 1998
THE MADISON HEIGHTS PARTNERSHIP
(Madison Heights Apartments)
Madison Heights Apartments is an existing 80-unit apartment complex for
families which is being rehabilitated in Canton, Mississippi. Madison Heights
Apartments will consist of 50 one-bedroom units and 30 two-bedroom units
contained in 16 buildings. The complex will offer a function room and central
laundry facilities.
Individual units will contain a refrigerator, range and a patio or
porch.
Rehabilitation of Madison Heights Apartments is underway. The Operating
General Partner anticipates that completion of rehabilitation and occupancy will
occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
20 July, 1998 20 August, 1998
20 August, 1998 20 September, 1998
20 September, 1998 20 October, 1998
20 October, 1998 20 November, 1998
THE MANCHESTER LAKES PARTNERSHIP
(Manchester Lakes Apartments)
Manchester Lakes Apartments is a 136-unit apartment complex for
families which is to be constructed on Manchester Lakes Boulevard in Alexandria,
Virginia. Manchester Lakes Apartments will consist of 41 one-bedroom units, 53
two-bedroom units and 42 three-bedroom units contained in 12 buildings. The
complex will offer a function room, pool and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Manchester Lakes Apartments is anticipated to begin in
February, 1998. The Operating General Partner anticipates that construction
completion and occupancy will occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
34 August, 1998 17 September, 1998
34 September, 1998 17 October, 1998
34 October, 1998 17 November, 1998
34 November, 1998 17 December, 1998
17 January, 1999
17 February, 1999
17 March, 1999
17 April, 1999
<PAGE>
THE MESQUITE TRAILS PARTNERSHIP
(Mesquite Trails Apartments)
Mesquite Trails Apartments is an existing 24-unit apartment complex for
families which is being rehabilitated in Jacksboro, Texas. Mesquite Trails
Apartments will consist of 16 one-bedroom units and 8 two-bedroom units
contained in 6 buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning
and a patio or porch.
Rehabilitation of Mesquite Trails Apartments is underway. The Operating
General Partner anticipates that completion of rehabilitation and occupancy will
occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
12 August, 1998 8 September, 1998
12 September, 1998 8 October, 1998
8 November, 1998
THE MONTFORT PARTNERSHIP
(Munjoy South Apartments)
Munjoy South Apartments is an existing 140-unit apartment complex for
families which is being rehabilitated on Montfort Street at Fore Street in
Portland, Maine. Munjoy South Apartments will consist of 12 one-bedroom units,
82 two-bedroom units, 42 three-bedroom units and 4 four-bedroom units contained
in 29 buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, cable television
hook-up and a patio or porch.
Rehabilitation of Munjoy South Apartments is underway. The Operating
General Partner anticipates that completion of rehabilitation and occupancy will
occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
35 July, 1998 35 August, 1998
35 August, 1998 35 September, 1998
35 September, 1998 35 October, 1998
35 October, 1998 35 November, 1998
THE NORTHPARK PARTNERSHIP
(Northpark Apartments)
Northpark Apartments is an existing 24-unit apartment complex for
families which is to be rehabilitated in Marietta, Oklahoma. Northpark
Apartments will consist of 14 one-bedroom units and 10 two-bedroom units
contained in 8 buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning
and a patio or porch.
<PAGE>
Rehabilitation of Northpark Apartments is anticipated to begin in
February, 1998. The Operating General Partner anticipates that completion of
rehabilitation and occupancy will occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
12 August, 1998 8 September, 1998
12 September, 1998 8 October, 1998
8 November, 1998
THE NOTTOWAY PARTNERSHIP
(Nottoway Manor Apartments)
Nottoway Manor Apartments is an existing 28-unit apartment complex for
families which is to be rehabilitated on Nottoway Avenue in Blackstone,
Virginia. Nottoway Manor Apartments will consist of 14 one-bedroom units and 14
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 balcony.
Rehabilitation of Nottoway Manor Apartments is anticipated to begin in
February, 1998. The Operating General Partner anticipates that completion of
rehabilitation and occupancy will occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
28 April, 1998 28 May, 1998
THE PARKLAND PARTNERSHIP
(Parkland Apartments)
Parkland Apartments is an 84-unit apartment complex for families which
is being constructed in Cleveland, Tennessee. Parkland Apartments will consist
of 16 one-bedroom units, 48 two-bedroom units and 20 three-bedroom units
contained in 12 buildings. The complex will offer a pool, recreation building,
playground and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning, cable television hook-up and a patio or porch.
Construction of Parkland Apartments is underway. The Operating General
Partners anticipate that construction completion and occupancy will occur as
follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
21 February, 1999 12 March, 1999
21 March, 1999 12 April, 1999
21 April, 1999 12 May, 1999
21 May, 1999 12 June, 1999
12 July, 1999
12 August, 1999
12 September, 1999
<PAGE>
THE PARK RIDGE PARTNERSHIP
(Park Ridge Apartments)
Park Ridge Apartments is a 22-unit apartment complex for families which
is being constructed on McCannon Ridge Road in McKee, Kentucky. Park Ridge
Apartments will consist of 4 one-bedroom units, 16 two-bedroom units and 2
three-bedroom units contained in 4 buildings. The complex will offer a meeting
room, playground and central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning
and a patio or porch.
Construction of Park Ridge Apartments is underway. The Operating
General Partner anticipates that construction completion and occupancy will
occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
11 May, 1998 11 July, 1998
11 June, 1998 11 August, 1998
THE PILOT POINT PARTNERSHIP
(Pilot Point Apartments)
Pilot Point Apartments is an existing 24-unit apartment complex for
families which is being rehabilitated in Pilot Point, Texas. Pilot Point
Apartments will consist of 14 one-bedroom units and 10 two-bedroom units
contained in 6 buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning
and a patio or porch.
Rehabilitation of Pilot Point Apartments is underway. The Operating
General Partner anticipates that completion of rehabilitation and occupancy will
occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
12 September, 1998 8 October, 1998
12 October, 1998 8 November, 1998
8 December, 1998
THE PLANTERSVILLE PARTNERSHIP
(Plantersville Apartments)
Plantersville Apartments is an existing 24-unit apartment complex for
families which is being rehabilitated in Plantersville, Mississippi.
Plantersville Apartments will consist of 8 one-bedroom units and 16 two-bedroom
units contained in 6 buildings. The complex will offer central laundry
facilities.
Individual units will contain a refrigerator, range and a patio or
porch.
Rehabilitation of Plantersville Apartments is underway. The Operating
General Partner anticipates that completion of rehabilitation and occupancy will
occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
12 September, 1998 12 October, 1998
12 October, 1998 12 November, 1998
<PAGE>
THE RIVERBEND PARTNERSHIP
(Riverbend Apartments)
Riverbend Apartments is a 28-unit apartment complex for families which
is being constructed on South Street near Main Street in Biddeford, Maine.
Riverbend Apartments will consist of 18 two-bedroom units and 10 three-bedroom
units contained in 2 buildings. The complex will offer a walking trail and
central laundry facilities.
Individual units will contain a refrigerator, range with exhaust fan,
air conditioning and a patio or porch.
Construction of Riverbend Apartments is underway. The Operating General
Partners anticipate that construction completion and occupancy will occur as
follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
14 September, 1998 7 October, 1998
14 October, 1998 7 November, 1998
7 December, 1998
7 January, 1999
THE ROYAL ESTATES PARTNERSHIP
(Royal Estates Apartments)
Royal Estates Apartments is an existing 32-unit apartment complex for
families which is being rehabilitated in Canton, Mississippi. Royal Estates
Apartments will consist of 20 one-bedroom units and 12 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 and a patio or
porch.
Rehabilitation of Royal Estates Apartments is underway. The Operating
General Partner anticipates that completion of rehabilitation and occupancy will
occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
16 September, 1998 16 October, 1998
16 October, 1998 16 November, 1998
THE SPRINGS MANOR PARTNERSHIP
(Springs Manor Apartments)
Springs Manor Apartments is an existing 32-unit apartment complex for
families which is being rehabilitated in Hattiesburg, Mississippi. Springs Manor
Apartments will consist of 20 one-bedroom units and 12 two-bedroom units
contained in 8 buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range and a patio or
porch.
Rehabilitation of Springs Manor Apartments is underway. The Operating
General Partner anticipates that completion of rehabilitation and occupancy will
occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
16 September, 1998 16 October, 1998
16 October, 1998 16 November, 1998
<PAGE>
THE WINDSOR PARK PARTNERSHIP
(Windsor Park Apartments)
Windsor Park Apartments is an existing 279-unit apartment complex for
families which is being rehabilitated in Jackson, Mississippi. Windsor Park
Apartments will consist of 96 one-bedroom units, 170 two-bedroom units and 13
three-bedroom units contained in 18 buildings. The complex will offer a function
room, pool and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Rehabilitation of Windsor Park Apartments is underway. The Operating
General Partners anticipate that completion of rehabilitation and occupancy will
occur as follows:
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
24 March, 1998 31 May, 1998
45 April, 1998 31 June, 1998
45 May, 1998 31 July, 1998
55 June, 1998 31 August, 1998
55 July, 1998 31 September, 1998
55 August, 1998 31 October, 1998
31 November, 1998
31 December, 1998
31 January, 1999
* * * * * * * *
<PAGE>
NY
JANUARY 5, 1998
SUPPLEMENT NO. 4 TO PROSPECTUS FOR
BOSTON CAPITAL TAX CREDIT FUND IV L.P.
DATED
AUGUST 1, 1997
(SUPPLEMENT OFFERING AND EXPANDING BCTC IV SERIES 31
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. 4 supersedes
all previous supplements to the Prospectus.
Results of BCTC IV Series 30
- ----------------------------
The Fund received orders for a total of 2,651,925 BACs ($26,500,000)
with respect to Series 30, and issued the last of such Series 30 BACs on
September 10, 1997. The aggregate fees paid as of September 10, 1997 to the
General Partner and Affiliates with respect to Series 30 were $3,113,750. No
additional BACs will be offered with respect to Series 30. The Fund has issued a
total of 33,957,577 BACs, raised $339,532,000 and admitted 20,257 Investors with
respect to Series 20 through 30 and may still sell up to $20,424,230 to the
public if all the BACs in Series 31 are sold. (See "Prior Performance of the
General Partner and its Affiliates" in the Prospectus for information about
Series 20 through 28.)
Expansion of BCTC IV Series 31
- ------------------------------
The General Partner is authorized to increase the offering amount of
any series of BACs up to the total amount of authorized but unissued BACs at any
time prior to the final issuance of BACs with respect to such series. (See "The
Offering -- Issuance of BACs in Series".) Based on the current assessment by the
General Partner and the Dealer-Manager of the marketing results as to the sale
of BACs in Series 31 and of the Fund's ability to identify and acquire, on
behalf of Series 31, Interests in Operating Partnerships which will meet its
investment criteria (see "Investment Objectives and Acquisition Policies"), the
offering of BACs in Series 31 hereby is increased from 4,000,000 BACs
($40,000,000) to 5,000,000 BACs ($50,000,000). The Operating Partnerships and
Apartment Complexes that have been identified represent 75% of the proceeds
available for investment from the expanded offering. Any such additional
investments will meet the criteria set forth in the Prospectus under "Investment
Objectives and Acquisition Policies" and "Investment in Operating Partnerships".
To the extent additional Operating Partnership Interests are acquired, the
Fund's ability to diversify the Series 31 portfolio (by expanding the number of
Operating Partnerships invested in by the Fund) will be increased (See "Risk
Factors -- Risk of Limited Diversification"). See "Risk Factors -- Risk of
Unspecified Investments" regarding the Fund's ability to acquire Operating
Partnership Interests.
Offering of BCTC IV Series 31
- -----------------------------
The Fund is offering, effective September 16, 1997, the twelfth series
of BACs ("Series 31") consisting of 5,000,000 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. As of the date hereof,
the Fund has received orders for a total of 3,955,750 BACs ($39,557,750) with
respect to Series 31. The offering of BACs in Series 31 will not exceed 12
months.
THE PURCHASE OF BACS IN SERIES 31 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 31, limited
partnership interests in the twenty-eight (28) 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
<PAGE>
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 31
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 31.
While the General Partner believes that the Fund, on behalf of Series
31, 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 $50 million is raised for Series 31, the anticipated acquisition of the
Operating Partnership Interests, described hereinafter, will represent
approximately 75% of the total money which the Fund currently expects to spend
on behalf of Series 31.
Management's Discussion and Analysis of Financial Condition and Results of
- --------------------------------------------------------------------------
Operations
- ----------
Since Series 31 is currently in the offering phase, it has no material
assets nor any operating history. The twenty-eight (28) 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. Bent Tree L.P. G. Granger MacDonald
(the "Bent Tree Partnership") Sally A. Gaskin
2. Brittney Square L.P. Garry Watkins
(the "Brittney Square Partnership") Dennis Buckles
3. Buffalo Run L.L.C. Stephen Grimshaw
(the "Buffalo Run Partnership")
4. Canton IV L.P. Intervest Corporation
(the "Canton Manor Partnership")
5. Canton II L.P. Intervest Corporation
(the "Canton Village Partnership")
6. Double Springs Manor II L.P. Garry Watkins
(the "Double Springs Partnership") Dennis Buckles
7. Eagle's Ridge L.P. Fountainhead Company
(the "Eagle's Ridge Partnership")
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Partnership General Partner(s)
----------- ------------------
<S> <C> <C>
8. Ellisville Housing L.P. Intervest Corporation
(the "Elmwood Partnership")
9. Giles L.P. GEM Management, Inc.
(the "Giles Partnership")
10. Hampden L.P. Sencit Associates
(the "Hampden Partnership")
11. Hays Manor L.P. Allegheny County Housing Authority
(the "Hays Manor Partnership")
12. Henderson Terrace L.P. Fountainhead Company
(the "Henderson Terrace Partnership")
13. Hurricane Hills II L.C. David W. Adams
(the "Hurricane Hills Partnership")
14. Lakeview Court L.P. Fountainhead Company
(the "Lakeview Court Partnership")
15. Canton I L.P. Intervest Corporation
(the "Madison Heights Partnership")
16. Manchester Lakes L.P. First Centrum Corporation
(the "Manchester Lakes Partnership")
17. Mesquite Trails L.P. Fountainhead Company
(the "Mesquite Trails Partnership")
18. Montfort L.P. Liberty Group
(the "Montfort Partnership")
19. Northpark Apartments L.P. Fountainhead Company
(the "Northpark Partnership")
20. Nottoway Manor L.P. GEM Management, Inc.
(the "Nottoway Partnership")
21. Parkland Partnership L.P. J.H. Thames, Jr.
(the "Parkland Partnership") Rodney Triplett
22. Heritage I L.P. Phillips Development Corporation
(the "Park Ridge Partnership")
23. Pilot Point L.P. Fountainhead Company
(the "Pilot Point Partnership")
24. Plantersville L.P. Intervest Corporation
(the "Plantersville Partnership")
25. Riverbend Apartments L.P. Realty Resources Chartered
(the "Riverbend Partnership") Joseph M. Cloutier
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Partnership General Partner(s)
----------- ------------------
<S> <C> <C>
26. Canton III L.P. Intervest Corporation
(the "Royal Estates Partnership")
27. Hattiesburg Housing L.P. Intervest Corporation
(the "Springs Manor Partnership")
28. Windsor Park L.P. J.H. Thames, Jr.
(the "Windsor Park Partnership") Park Development
</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. The Apartment Complexes described in this Supplement are anticipated to
complete construction or rehabilitation, as applicable, during 1998 and 1999.
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 31 is $1.20 per BAC (12%). (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.
