Y
AUGUST 1, 1998
SUPPLEMENT NO. 1 TO PROSPECTUS FOR
BOSTON CAPITAL TAX CREDIT FUND IV L.P.
DATED
AUGUST 1, 1998
(SUPPLEMENT OFFERING BCTC IV SERIES 33 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. 1 supersedes
all previous supplements to the Prospectus.
Results of BCTC IV Series 32
The Fund received orders for a total of 4,502,700 BACs ($45,027,000) with
respect to Series 32, and issued the last of such Series 32 BACs on June 17,
1998. The aggregate fees paid as of June 17, 1998 to the General Partner and
Affiliates with respect to Series 32 were $5,290,672. No additional BACs will
be offered with respect to Series 32. The Fund has issued a total of 42,877,209
BACs, raised $428,607,500 and admitted 24,763 Investors with respect to Series
20 through 32 and may still sell up to $196,392,500 to the public if all the
BACs in Series 33 are sold. (See "Prior Performance of the General Partner and
its Affiliates" in the Prospectus for information about Series 20 through 32.)
Offering of BCTC IV Series 33
The Fund is offering, effective June 18, 1998, the fourteenth series of
BACs ("Series 33") consisting of 2,500,000 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 33
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 33, a
significant portion of the Apartment Complexes identified herein will not be
invested in. In addition, of each dollar raised by Series 33, 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 33 will not exceed 12
months.
THE PURCHASE OF BACS IN SERIES 33 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 33, limited
partnership interests in the ten (10) 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 33, which would be the equivalent of an approximate
10%-12% annual Tax Credit as a percentage of capital invested, for the ten year
credit period applicable to each Apartment Complex in which
<PAGE>
Series 33 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 33): $100-$200 in 1998, $400-$600 in 1999; $1,000-$1,200 in 2000-2008
and $400-$600 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 33 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 33
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 33.
While the General Partner believes that the Fund, on behalf of Series 33,
is reasonably likely to acquire interests in the Operating Partnerships which
are developing or will develop, as applicable, the Apartment Complexes
described hereinafter, the Fund may not be able to do so as a result of
additional information or changes in circumstances. Before any such acquisition
is made, the General Partner will continue and complete its due diligence
review as to the applicable Operating Partnership and the related Apartment
Complex. This process will include the review and analysis of information
concerning, among other matters, market competition and environmental factors;
if any significant adverse information is obtained by the General Partner,
either action will be taken to mitigate the adverse factor(s), or the
acquisition will not be made. If such interests are acquired, the terms may
differ materially from those described below. Accordingly, Investors should not
rely on the ability of the Fund to invest
S-2
<PAGE>
in these Apartment Complexes or under the described investment terms in
deciding whether to invest in the Fund. If the entire $25 million is raised for
Series 33, the anticipated acquisition of the Operating Partnership Interests,
described hereinafter, will represent approximately 100% of the total money
which the Fund currently expects to spend on behalf of Series 33.
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Since Series 33 is currently in the offering phase, it has no material
assets or any operating history. The ten (10) 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. Bradford Square L.P. Sam Nicholson
(the "Bradford Square Partnership") Nancy Nicholson
2. Carriage Pointe L.P. Matzel & Mumford
(the "Carriage Pointe Partnership")
3. Crystal Run L.P. MHT Housing
(the "Crystal Run Partnership")
4. Forest Park L.P. Jim Howell
(the "Forest Park Partnership")
5. Fox Ridge L.P. National Housing Corporation
(the "Fox Ridge Partnership")
6. Giverny Gardens L.P. John E. Delaney
(the "Giverny Gardens Partnership") Robert D. Hatfield
7. Kiest Townhouses L.P. Luxar Development Corporation
(the "Kiest Partnership")
8. Merchants Court L.P. Dorchester Development Corporation
(the "Merchants Court Partnership")
9. Sayreville Senior Housing L.P. Sayreville Seniors Housing
(the "Sayreville Partnership") Corporation
10. Woodhaven L.P. Woodhaven Partners
(the "Woodhaven Partnership")
</TABLE>
Permanent Mortgage Loan financing for the Apartment Complexes described
herein is being or will be provided from a variety of sources, as described
below. Certain of the Apartment Complexes, as described below, have not yet
begun construction. Delays in construction could occur with respect to
Apartment Complexes currently under construction or as to which construction
has not yet commenced, which could result in delay or reduction in achieving
Tax Credits. (See "Risk Factors--Tax Risks Associated with the Fund's
Investments" in the Prospectus.) The General Partner believes that each of the
Apartment Complexes has or will have adequate property insurance. The tables
included in this Supplement describe in greater detail information concerning
the Apartment Complexes and the anticipated terms of investment in each
Operating Partnership.
The Priority Return Base for Series 33 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
S-3
<PAGE>
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>
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Basic
Location of Number Monthly(1)
Partnership Name Property of Units Rents
------------------ ------------------ ---------- ------------
<S> <C> <C> <C> <C>
1. Bradford Jefferson City, 50 $349-
Square Tennessee $431 2BR
Partnership
2. Carriage Pointe Old Bridge, 18 $602 1BR
Partnership New Jersey $566-
$779 2BR
3. Crystal Run Benton Township, 84 $272-
Partnership Michigan $420 1BR
$328-
$485 2BR
4. Forest Park Stonewall, 40 $217 1BR
Partnership Louisiana $259-
$296 2BR
$407 4BR
5. Fox Ridge Durham, 92 $477-
Partnership North Carolina $583 2BR
$648 3BR
6. Giverny Paris, 36 $425-
Gardens Kentucky $495 2BR
Partnership $485-
$525 3BR
7. Kiest Dallas, 130 $483-
Partnership Texas $505 2BR
$559-
$605 3BR
$618-
$705 4BR
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
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 First 8% $10,000 Nicholson 6% of net
Housing Virginia Management rental income
Tax Credits Mortgage
Company
$1,168,000
(3)
2. Federal Housing Amboy National 9.125% $ 3,600 Matzel & 6% of net
Tax Credits Bank Mumford Real rental income
$ 627,000(a) 8% Estate
Matzel &
Mumford
$ 490,000(b)
(4)
3. Federal Housing Enterprise 8% $16,800 Smith & 6% of net
Tax Credits Mortgage Company rental income
Company
$1,565,000
(5)
4. HOME Investment Hibernia 8% $ 8,000 TF Management 6% of net
Partnerships National Bank Inc. rental income
Program(b) $ 176,000(a) 4%
(6) Louisiana
Housing
Finance
Authority
$ 400,000(b)
(6)
5. Federal Housing Tate Terrace 8% $18,400 Proctor Group 5% of net
Tax Credits Realty Inc. rental income
$2,148,360
(7)
6. Federal First Colony 8% $ 7,200 Canaan 6% of net
Interest Capital Community rental income
Rate Subsidy $1,091,000 Development
Program (8) Corp.
(8)
7. Federal Housing Arbor National 8% $26,000 Affordable 6% of net
Tax Credits Mortgage Housing rental income
Company LLC Partnership
$3,240,000
(9)
</TABLE>
S-5
<PAGE>
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
Basic
Location of Number Monthly(1)
Partnership Name Property of Units Rents
------------------ ------------- ---------- ------------
<S> <C> <C> <C> <C>
8. Merchants Court Dallas, 144 $375 1BR
Partnership Georgia $440-
$525 2BR
$500-
$565 3BR
9. Sayreville Sayreville, 100 $525 1BR
Partnership New Jersey
10. Woodhaven South 80 $455-
Partnership Brunswick, $568 1BR
New Jersey $638-
$751 2BR
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
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. HOME Bank of 8.5% $38,400 Ambling 6% of net
Investment America Companies rental income
Partnerships $2,096,000(a)
Program(b) Florida 1%
(10) Department of
Community
Affairs
$2,000,000(b)
(10)
9. Federal Housing Amboy National 7% $20,000 Sayreville 6% of net
Tax Credits Bank Housing rental income
$3,491,000(a) 8% Authority
Gillette
Enterprises
$ 640,000(b)
(11)
10. Federal Housing Amboy National 8.5% $20,000 Eastern 6% of net
Tax Credits Bank Properties rental income
$3,366,000
(12)
</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) The terms of the Bradford Square Partnership's anticipated permanent first
mortgage loan in the amount of $1,168,000 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.
(4) (a) The terms of the Carriage Pointe Partnership's anticipated permanent
first mortgage loan in the amount of $627,000 are expected to include a
term of 15 years, an interest rate of 9.125% and payments of principal
and interest on the basis of a 15-year amortization schedule.
(b) The terms of the Carriage Pointe Partnership's anticipated permanent
second mortgage loan in the amount of $490,000 are expected to include
a term of 15 years, an interest rate of 8% and payments of principal
and interest on the basis of a 15-year amortization schedule.
(5) The terms of the Crystal Run Partnership's anticipated permanent first
mortgage loan in the amount of $1,565,000 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.
(6) (a) The terms of the Forest Park Partnership's anticipated permanent first
mortgage loan in the amount of $176,000 are expected to include a term
of 30 years, an interest rate of 8% and payments of principal and
interest on the basis of a 30-year amortization schedule.
(b) The terms of the Forest Park Partnership's anticipated permanent second
mortgage loan in the amount of $400,000 are expected to include a term
of 30 years, an interest rate of 4% and payments of principal and
interest on the basis of a 30-year amortization schedule, 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.
(7) The terms of the Fox Ridge Partnership's anticipated permanent first
mortgage loan in the amount of $2,148,360 are expected to include a term
of 25 years, an interest rate of 8% and payments of principal and interest
on the basis of a 25-year amortization schedule.
(8) The terms of the Giverny Gardens Partnership's anticipated permanent first
mortgage loan in the amount of $1,091,000 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.
(9) The terms of the Kiest Partnership's anticipated permanent first mortgage
loan in the amount of $3,240,000 are expected to include a term of 30
years, an interest rate of 8% and payments of principal and interest on
the basis of a 30-year amortization schedule.
S-6
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
(10) (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.
(11) (a) The terms of the Sayreville Partnership's anticipated permanent first
mortgage loan in the amount of $3,491,000 are expected to include a
term of 28 years, an interest rate of 7% and payments of principal and
interest on the basis of a 28-year amortization schedule.
(b) The terms of the Sayreville Partnership's anticipated permanent second
mortgage loan in the amount of $640,000 are expected to include a term
of 8 years, an interest rate of 8% and payments of principal and
interest on the basis of an 8-year amortization schedule.
(12) The terms of the Woodhaven Partnership's anticipated permanent first
mortgage loan in the amount of $3,366,000 are expected to include a term
of 5 years, an interest rate of 8.5% and payments of principal and
interest on the basis of a 30-year amortization schedule.
S-7
<PAGE>
<TABLE>
<CAPTION>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS
Ownership
Interest (%)
Profits,
Losses, Operating
BCTC IV Credit/Net General
Partnership Capital Cash Partner
Name Contribution Flow/Backend Contribution
---------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
1. Bradford $1,473,080 99/30/50 $100
Square
Partnership
2. CarriagePointe $ 503,797 50/25/25 $100
Partnership
3. Crystal Run $ 832,691 19/15/15 $100
Partnership
4. Forest Park $1,501,914 99/50/50 $100
Partnership
5. Fox Ridge $3,741,000 100/10/20 $100
Partnership
6. Giverny $ 834,881 100/20/20 $100
Gardens
Partnership
7. Kiest $3,947,107 50/15/15 $100
Partnership
8. Merchants $2,437,397 35/9/9 $100
Court
Partnership
9. Sayreville $1,486,484 50/25/25 $100
Partnership
10. Woodhaven $1,186,569 50/25/25 $100
Partnership
<CAPTION>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS--(Continued)
Fund's
Approximate
Average Development Annual
Annual Fee/Other Partnership Asset
Operating Operating Anticipated Distributions Management Management
Deficit Partnership's Federal to Operating Fee to Fee to Boston
Guarantee Credit Base Credit GP Operating GP Capital
-------------- --------------- ------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
1. Unlimited $ 2,490,000 $210,440 $ 117,000 $ 3,000 $ 3,000
in time
and amount
2. None $ 1,653,000 $ 68,938 $ 274,777 0 0
3. Unlimited $ 7,403,000 $115,651 $ 826,000 $ 6,300 $ 6,300
in time
and amount
4. Unlimited $ 1,914,000 $208,599 $ 150,000 $ 1,000 $ 1,000
in time
and amount
5. $235,000 $ 6,166,300 $519,583 $ 516,000 $32,000 $ 8,000
in the
aggregate
6. $ 90,000 $ 1,369,000 $116,767 $ 180,000 $ 3,000 $ 3,000
in the
aggregate
for 3 years
7. Unlimited $13,260,000 $548,209 $1,272,000 $13,000 $13,000
in time
and amount
8. Unlimited $11,713,000 $333,890 $1,591,000 $10,000 $10,000
in amount
for 5 years
9. None $ 5,532,000 $232,463 $ 524,772 0 0
10. None $ 5,263,000 $233,350 $ 388,000 0 0
</TABLE>
S-8
<PAGE>
THE BRADFORD SQUARE PARTNERSHIP (Bradford Square Apartments)
Bradford Square Apartments is a 50-unit apartment complex for senior
citizens which is to be constructed on North Highway 92 at Oak Hills Way in
Jefferson City, Tennessee. Bradford Square Apartments will consist of 50
two-bedroom units contained in 11 buildings. The complex will offer a function
room and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Bradford Square Apartments is anticipated to begin in
September, 1998. 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>
10 June, 1999 6 July, 1999
10 July, 1999 6 August, 1999
10 August, 1999 6 September, 1999
10 September, 1999 8 October, 1999
10 October, 1999 8 November, 1999
8 December, 1999
8 January, 2000
</TABLE>
THE CARRIAGE POINTE PARTNERSHIP (Carriage Pointe Apartments)
Carriage Pointe Apartments is an 18-unit apartment complex for families
and senior citizens which has been constructed on County Route 516 between High
Pointe Way and Bennett Road in Old Bridge, New Jersey. Carriage Pointe
Apartments consists of 6 one-bedroom units and 12 two-bedroom units contained
in 2 buildings. The complex offers central laundry facilities.
Individual units contain a refrigerator, range, dishwasher, disposal,
air conditioning, cable television hook-up, and a patio or porch.
Construction of Carriage Pointe Apartments is complete and is 100%
occupied.
THE CRYSTAL RUN PARTNERSHIP
(Crystal Run Apartments)
Crystal Run Apartments is an 84-unit apartment complex for senior
citizens which is to be constructed on Plaza Drive in Benton Township,
Michigan. Crystal Run Apartments will consist of 18 one-bedroom units and 66
two-bedroom units contained in 1 building. The complex will offer a library,
function room, exercise room and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Crystal Run Apartments is anticipated to begin in
September, 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>
84 September, 1999 14 October, 1999
14 November, 1999
14 December, 1999
14 January, 2000
14 February, 2000
14 March, 2000
</TABLE>
THE FOREST PARK PARTNERSHIP
(Forest Park Apartments)
Forest Park Apartments is a 40-unit apartment complex for families which
is to be constructed on Preston Road and Highway 171 in Stonewall, Louisiana.
Forest Park Apartments will consist of 12 one-bedroom units, 22 two-bedroom
units and 6 four-bedroom units contained in 12 buildings. The complex will
offer central laundry facilities.
Individual units will contain a refrigerator, range, kitchen exhaust
fan, air conditioning and a patio or porch.
Construction of Forest Park Apartments is anticipated to begin in
September, 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 March, 1999 8 April, 1999
10 April, 1999 8 May, 1999
10 May, 1999 8 June, 1999
10 June, 1999 8 July, 1999
8 August, 1999
</TABLE>
S-9
<PAGE>
THE FOX RIDGE PARTNERSHIP
(Fox Ridge Apartments)
Fox Ridge Apartments is a 92-unit apartment complex for families which
is being constructed near the corner of Page Road and the Page Road Extension
in Durham, North Carolina. Fox Ridge Apartments will consist of 56 two-bedroom
units and 36 three-bedroom units contained in 8 buildings. The complex will
offer a clubroom, pool, playground and central laundry facilities.
Individual units will contain a refrigerator, range, kitchen exhaust
fan, dishwasher, air conditioning, cable television hook-up and a patio or
porch.
Construction of Fox 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>
15 May, 1999 11 June, 1999
15 June, 1999 11 July, 1999
15 July, 1999 11 August, 1999
15 August, 1999 11 September, 1999
16 September, 1999 12 October, 1999
16 October, 1999 12 November, 1999
12 December, 1999
12 January, 2000
</TABLE>
THE GIVERNY GARDENS PARTNERSHIP
(Giverny Gardens Apartments)
Giverny Gardens Apartments is a 36-unit apartment complex for families
which is to be constructed on Bethlehem Road (Kentucky Route 1939) in Paris,
Kentucky. Giverny Gardens Apartments will consist of 28 two-bedroom units and 8
three-bedroom units contained in 5 buildings. The complex will offer a function
room, playground and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning, ceiling fans and a patio or porch.
Construction of Giverny Gardens Apartments is anticipated to begin in
September, 1998. 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>
9 June, 1999 9 July, 1999
9 July, 1999 9 August, 1999
9 August, 1999 9 September, 1999
9 September, 1999 9 October, 1999
</TABLE>
THE KIEST PARTNERSHIP
(Kiest Townhomes)
Kiest Townhomes is a 130-unit apartment complex for families which is
being constructed on Kiest Boulevard at Cockrell Hill Road in Dallas, Texas.
Kiest Townhomes will consist of 59 two-bedroom units, 59 three-bedroom units
and 12 four-bedroom units contained in 16 buildings. The complex will offer a
function room, pool, playground, basketball court and central laundry
facilities.
Individual units will contain a refrigerator, range with hood,
dishwasher, disposal, air conditioning, ceiling fan, bathroom exhaust fan and a
patio or porch.
Construction of Kiest Townhomes 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>
32 November, 1998 16 January, 1999
32 December, 1998 16 February, 1999
33 January, 1999 16 March, 1999
33 February, 1999 16 April, 1999
16 May, 1999
16 June, 1999
17 July, 1999
17 August, 1999
</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.
S-10
<PAGE>
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 SAYREVILLE PARTNERSHIP
(Gillette Manor Apartments)
Gillette Manor Apartments is a 100-unit apartment complex for senior
citizens which has been constructed on Washington Road at Hilltop Avenue in
Sayreville, New Jersey. Gillette Manor Apartments consists of 100 one-bedroom
units contained in 1 building. The complex offers a meeting room and central
laundry facilities.
Individual units contain a refrigerator, range, air conditioning, cable
television hook-up and an emergency call system.
Construction of Gillette Manor Apartments is complete and is 100%
occupied.
THE WOODHAVEN PARTNERSHIP
(Woodhaven Apartments)
Woodhaven Apartments is an 80-unit apartment complex for families and
senior citizens which has been constructed on Route 27 in South Brunswick, New
Jersey. Woodhaven Apartments consists of 40 one-bedroom units and 40
two-bedroom units contained in 13 buildings. The complex offers a clubhouse
with meeting room and central laundry facilities.
Individual units contain a refrigerator, range, dishwasher, disposal,
air conditioning and a patio or porch.
Construction of Woodhaven Apartments is complete and is 100% occupied.
S-11
<PAGE>
NY
AUGUST 1, 1998
SUPPLEMENT NO. 1 TO PROSPECTUS FOR
BOSTON CAPITAL TAX CREDIT FUND IV L.P.
DATED
AUGUST 1, 1998
(SUPPLEMENT OFFERING BCTC IV SERIES 33 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. 1 supersedes
all previous supplements to the Prospectus.
Results of BCTC IV Series 32
The Fund received orders for a total of 4,502,700 BACs ($45,027,000) with
respect to Series 32, and issued the last of such Series 32 BACs on June 17,
1998. The aggregate fees paid as of June 17, 1998 to the General Partner and
Affiliates with respect to Series 32 were $5,290,672. No additional BACs will
be offered with respect to Series 32. The Fund has issued a total of 42,877,209
BACs, raised $428,607,500 and admitted 24,763 Investors with respect to Series
20 through 32 and may still sell up to $196,392,500 to the public if all the
BACs in Series 33 are sold. (See "Prior Performance of the General Partner and
its Affiliates" in the Prospectus for information about Series 20 through 32.)
Offering of BCTC IV Series 33
The Fund is offering, effective June 18, 1998, the fourteenth series of
BACs ("Series 33") consisting of 2,500,000 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 33
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 33, a
significant portion of the Apartment Complexes identified herein will not be
invested in. In addition, of each dollar raised by Series 33, 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 33 will not exceed 12
months.
THE PURCHASE OF BACS IN SERIES 33 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 33, limited
partnership interests in the ten (10) 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 33
will be consistent with the provisions of the Prospectus relating to the
investment in Operating Partnerships. (See, particularly, "Investment
Objectives and Acquisition Policies," "Investment in Operating Partnerships,"
and "Sharing Arrangements: Profits, Credits, Losses, Net Cash Flow and
Residuals.")
<PAGE>
THE POTENTIAL OPERATING PARTNERSHIP INTERESTS IDENTIFIED BELOW RELATE ONLY
TO BCTC IV--SERIES 33.
While the General Partner believes that the Fund, on behalf of Series 33,
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 $25 million is raised for Series 33, the anticipated acquisition of
the Operating Partnership Interests, described hereinafter, will represent
approximately 100% of the total money which the Fund currently expects to spend
on behalf of Series 33.
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Since Series 33 is currently in the offering phase, it has no material
assets or any operating history. The ten (10) 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. Bradford Square L.P. Sam Nicholson
(the "Bradford Square Partnership") Nancy Nicholson
2. Carriage Pointe L.P. Matzel & Mumford
(the "Carriage Pointe Partnership")
3. Crystal Run L.P. MHT Housing
(the "Crystal Run Partnership")
4. Forest Park L.P. Jim Howell
(the "Forest Park Partnership")
5. Fox Ridge L.P. National Housing Corporation
(the "Fox Ridge Partnership")
6. Giverny Gardens L.P. John E. Delaney
(the "Giverny Gardens Partnership") Robert D. Hatfield
7. Kiest Townhouses L.P. Luxar Development Corporation
(the "Kiest Partnership")
8. Merchants Court L.P. Dorchester Development Corporation
(the "Merchants Court Partnership")
9. Sayreville Senior Housing L.P. Sayreville Seniors Housing
(the "Sayreville Partnership") Corporation
10. Woodhaven L.P. Woodhaven Partners
(the "Woodhaven Partnership")
</TABLE>
S-2
<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 33 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>
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Basic
Location of Number Monthly(1)
Partnership Name Property of Units Rents
------------------ ------------------ ---------- ------------
<S> <C> <C> <C> <C>
1. Bradford Jefferson City, 50 $349-
Square Tennessee $431 2BR
Partnership
2. Carriage Pointe Old Bridge, 18 $602 1BR
Partnership New Jersey $566-
$779 2BR
3. Crystal Run Benton Township, 84 $272-
Partnership Michigan $420 1BR
$328-
$485 2BR
4. Forest Park Stonewall, 40 $217 1BR
Partnership Louisiana $259-
$296 2BR
$407 4BR
5. Fox Ridge Durham, 92 $477-
Partnership North Carolina $583 2BR
$648 3BR
6. Giverny Paris, 36 $425-
Gardens Kentucky $495 2BR
Partnership $485-
$525 3BR
7. Kiest Dallas, 130 $483-
Partnership Texas $505 2BR
$559-
$605 3BR
$618-
$705 4BR
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
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 First 8% $10,000 Nicholson 6% of net
Housing Virginia Management rental income
Tax Credits Mortgage
Company
$1,168,000
(3)
2. Federal Housing Amboy National 9.125% $ 3,600 Matzel & 6% of net
Tax Credits Bank Mumford Real rental income
$ 627,000(a) 8% Estate
Matzel &
Mumford
$ 490,000(b)
(4)
3. Federal Housing Enterprise 8% $16,800 Smith & 6% of net
Tax Credits Mortgage Company rental income
Company
$1,565,000
(5)
4. HOME Investment Hibernia 8% $ 8,000 TF Management 6% of net
Partnerships National Bank Inc. rental income
Program(b) $ 176,000(a) 4%
(6) Louisiana
Housing
Finance
Authority
$ 400,000(b)
(6)
5. Federal Housing Tate Terrace 8% $18,400 Proctor Group 5% of net
Tax Credits Realty Inc. rental income
$2,148,360
(7)
6. Federal First Colony 8% $ 7,200 Canaan 6% of net
Interest Capital Community rental income
Rate Subsidy $1,091,000 Development
Program (8) Corp.
(8)
7. Federal Housing Arbor National 8% $26,000 Affordable 6% of net
Tax Credits Mortgage Housing rental income
Company LLC Partnership
$3,240,000
(9)
</TABLE>
S-4
<PAGE>
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
Basic
Location of Number Monthly(1)
Partnership Name Property of Units Rents
------------------ ------------------ ---------- ------------
<S> <C> <C> <C> <C>
8. Merchants Court Dallas, 144 $375 1BR
Partnership Georgia $440-
$525 2BR
$500-
$565 3BR
9. Sayreville Sayreville, 100 $525 1BR
Partnership New Jersey
10. Woodhaven South Brunswick, 80 $455-
Partnership New Jersey $568 1BR
$638-
$751 2BR
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
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. HOME Investment Bank of 8.5% $38,400 Ambling 6% of net
Partnerships America Companies rental income
Program(b) $2,096,000(a)
(10) Florida 1%
Department of
Community
Affairs
$2,000,000(b)
(10)
9. Federal Housing Amboy National 7% $20,000 Sayreville 6% of net
Tax Credits Bank Housing rental income
$3,491,000(a) 8% Authority
Gillette
Enterprises
$ 640,000(b)
(11)
10. Federal Housing Amboy National 8.5% $20,000 Eastern 6% of net
Tax Credits Bank Properties rental income
$3,366,000
(12)
</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) The terms of the Bradford Square Partnership's anticipated permanent first
mortgage loan in the amount of $1,168,000 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.
(4) (a) The terms of the Carriage Pointe Partnership's anticipated permanent
first mortgage loan in the amount of $627,000 are expected to include
a term of 15 years, an interest rate of 9.125% and payments of
principal and interest on the basis of a 15-year amortization
schedule.
(b) The terms of the Carriage Pointe Partnership's anticipated permanent
second mortgage loan in the amount of $490,000 are expected to include
a term of 15 years, an interest rate of 8% and payments of principal
and interest on the basis of a 15-year amortization schedule.
(5) The terms of the Crystal Run Partnership's anticipated permanent first
mortgage loan in the amount of $1,565,000 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.
(6) (a) The terms of the Forest Park Partnership's anticipated permanent first
mortgage loan in the amount of $176,000 are expected to include a term
of 30 years, an interest rate of 8% and payments of principal and
interest on the basis of a 30-year amortization schedule.
(b) The terms of the Forest Park Partnership's anticipated permanent
second mortgage loan in the amount of $400,000 are expected to include
a term of 30 years, an interest rate of 4% and payments of principal
and interest on the basis of a 30-year amortization schedule,
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.
(7) The terms of the Fox Ridge Partnership's anticipated permanent first
mortgage loan in the amount of $2,148,360 are expected to include a term
of 25 years, an interest rate of 8% and payments of principal and interest
on the basis of a 25-year amortization schedule.
(8) The terms of the Giverny Gardens Partnership's anticipated permanent first
mortgage loan in the amount of $1,091,000 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.
(9) The terms of the Kiest Partnership's anticipated permanent first mortgage
loan in the amount of $3,240,000 are expected to include a term of 30
years, an interest rate of 8% and payments of principal and interest on
the basis of a 30-year amortization schedule.
S-5
<PAGE>
INFORMATION CONCERNING THE APARTMENT COMPLEXES--(Continued)
(10) (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.
(11) (a) The terms of the Sayreville Partnership's anticipated permanent first
mortgage loan in the amount of $3,491,000 are expected to include a
term of 28 years, an interest rate of 7% and payments of principal and
interest on the basis of a 28-year amortization schedule.
(b) The terms of the Sayreville Partnership's anticipated permanent second
mortgage loan in the amount of $640,000 are expected to include a term
of 8 years, an interest rate of 8% and payments of principal and
interest on the basis of an 8-year amortization schedule.
(12) The terms of the Woodhaven Partnership's anticipated permanent first
mortgage loan in the amount of $3,366,000 are expected to include a term
of 5 years, an interest rate of 8.5% and payments of principal and
interest on the basis of a 30-year amortization schedule.
S-6
<PAGE>
<TABLE>
<CAPTION>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS
Ownership
Interest (%)
Profits,
Losses, Operating
BCTC IV Credit/Net General
Partnership Capital Cash Partner
Name Contribution Flow/Backend Contribution
---------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
1. Bradford $1,473,080 99/30/50 $100
Square
Partnership
2. CarriagePointe $ 503,797 50/25/25 $100
Partnership
3. Crystal Run $ 832,691 19/15/15 $100
Partnership
4. Forest Park $1,501,914 99/50/50 $100
Partnership
5. Fox Ridge $3,741,000 100/10/20 $100
Partnership
6. Giverny $ 834,881 100/20/20 $100
Gardens
Partnership
7. Kiest $3,947,107 50/15/15 $100
Partnership
8. Merchants $2,437,397 35/9/9 $100
Court
Partnership
9. Sayreville $1,486,484 50/25/25 $100
Partnership
10. Woodhaven $1,186,569 50/25/25 $100
Partnership
<CAPTION>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS--(Continued)
Fund's
Approximate
Average Development Annual
Annual Fee/Other Partnership Asset
Operating Operating Anticipated Distributions Management Management
Deficit Partnership's Federal to Operating Fee to Fee to Boston
Guarantee Credit Base Credit GP Operating GP Capital
-------------- --------------- ------------- --------------- -------------- --------------
<S> <C> <C> <C> <C> <C> <C>
1. Unlimited $ 2,490,000 $210,440 $ 117,000 $ 3,000 $ 3,000
in time
and amount
2. None $ 1,653,000 $ 68,938 $ 274,777 0 0
3. Unlimited $ 7,403,000 $115,651 $ 826,000 $ 6,300 $ 6,300
in time
and amount
4. Unlimited $ 1,914,000 $208,599 $ 150,000 $ 1,000 $ 1,000
in time
and amount
5. $235,000 $ 6,166,300 $519,583 $ 516,000 $32,000 $ 8,000
in the
aggregate
6. $ 90,000 $ 1,369,000 $116,767 $ 180,000 $ 3,000 $ 3,000
in the
aggregate
for 3 years
7. Unlimited $13,260,000 $548,209 $1,272,000 $13,000 $13,000
in time
and amount
8. Unlimited $11,713,000 $333,890 $1,591,000 $10,000 $10,000
in amount
for 5 years
9. None $ 5,532,000 $232,463 $ 524,772 0 0
10. None $ 5,263,000 $233,350 $ 388,000 0 0
</TABLE>
S-7
<PAGE>
THE BRADFORD SQUARE PARTNERSHIP
(Bradford Square Apartments)
Bradford Square Apartments is a 50-unit apartment complex for senior
citizens which is to be constructed on North Highway 92 at Oak Hills Way in
Jefferson City, Tennessee. Bradford Square Apartments will consist of 50
two-bedroom units contained in 11 buildings. The complex will offer a function
room and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Bradford Square Apartments is anticipated to begin in
September, 1998. 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>
10 June, 1999 6 July, 1999
10 July, 1999 6 August, 1999
10 August, 1999 6 September, 1999
10 September, 1999 8 October, 1999
10 October, 1999 8 November, 1999
8 December, 1999
8 January, 2000
</TABLE>
THE CARRIAGE POINTE PARTNERSHIP
(Carriage Pointe Apartments)
Carriage Pointe Apartments is an 18-unit apartment complex for families
and senior citizens which has been constructed on County Route 516 between High
Pointe Way and Bennett Road in Old Bridge, New Jersey. Carriage Pointe
Apartments consists of 6 one-bedroom units and 12 two-bedroom units contained
in 2 buildings. The complex offers central laundry facilities.
Individual units contain a refrigerator, range, dishwasher, disposal,
air conditioning, cable television hook-up, and a patio or porch.
Construction of Carriage Pointe Apartments is complete and is 100%
occupied.
THE CRYSTAL RUN PARTNERSHIP
(Crystal Run Apartments)
Crystal Run Apartments is an 84-unit apartment complex for senior
citizens which is to be constructed on Plaza Drive in Benton Township,
Michigan. Crystal Run Apartments will consist of 18 one-bedroom units and 66
two-bedroom units contained in 1 building. The complex will offer a library,
function room, exercise room and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Crystal Run Apartments is anticipated to begin in
September, 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>
84 September, 1999 14 October, 1999
14 November, 1999
14 December, 1999
14 January, 2000
14 February, 2000
14 March, 2000
</TABLE>
THE FOREST PARK PARTNERSHIP
(Forest Park Apartments)
Forest Park Apartments is a 40-unit apartment complex for families which
is to be constructed on Preston Road and Highway 171 in Stonewall, Louisiana.
Forest Park Apartments will consist of 12 one-bedroom units, 22 two-bedroom
units and 6 four-bedroom units contained in 12 buildings. The complex will
offer central laundry facilities.
Individual units will contain a refrigerator, range, kitchen exhaust
fan, air conditioning and a patio or porch.
Construction of Forest Park Apartments is anticipated to begin in
September, 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 March, 1999 8 April, 1999
10 April, 1999 8 May, 1999
10 May, 1999 8 June, 1999
10 June, 1999 8 July, 1999
8 August, 1999
</TABLE>
S-8
<PAGE>
THE FOX RIDGE PARTNERSHIP
(Fox Ridge Apartments)
Fox Ridge Apartments is a 92-unit apartment complex for families which
is being constructed near the corner of Page Road and the Page Road Extension
in Durham, North Carolina. Fox Ridge Apartments will consist of 56 two-bedroom
units and 36 three-bedroom units contained in 8 buildings. The complex will
offer a clubroom, pool, playground and central laundry facilities.
Individual units will contain a refrigerator, range, kitchen exhaust
fan, dishwasher, air conditioning, cable television hook-up and a patio or
porch.
Construction of Fox 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>
15 May, 1999 11 June, 1999
15 June, 1999 11 July, 1999
15 July, 1999 11 August, 1999
15 August, 1999 11 September, 1999
16 September, 1999 12 October, 1999
16 October, 1999 12 November, 1999
12 December, 1999
12 January, 2000
</TABLE>
THE GIVERNY GARDENS PARTNERSHIP
(Giverny Gardens Apartments)
Giverny Gardens Apartments is a 36-unit apartment complex for families
which is to be constructed on Bethlehem Road (Kentucky Route 1939) in Paris,
Kentucky. Giverny Gardens Apartments will consist of 28 two-bedroom units and 8
three-bedroom units contained in 5 buildings. The complex will offer a function
room, playground and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher,
disposal, air conditioning, ceiling fans and a patio or porch.
Construction of Giverny Gardens Apartments is anticipated to begin in
September, 1998. 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>
9 June, 1999 9 July, 1999
9 July, 1999 9 August, 1999
9 August, 1999 9 September, 1999
9 September, 1999 9 October, 1999
</TABLE>
THE KIEST PARTNERSHIP
(Kiest Townhomes)
Kiest Townhomes is a 130-unit apartment complex for families which is
being constructed on Kiest Boulevard at Cockrell Hill Road in Dallas, Texas.
Kiest Townhomes will consist of 59 two-bedroom units, 59 three-bedroom units
and 12 four-bedroom units contained in 16 buildings. The complex will offer a
function room, pool, playground, basketball court and central laundry
facilities.
Individual units will contain a refrigerator, range with hood,
dishwasher, disposal, air conditioning, ceiling fan, bathroom exhaust fan and a
patio or porch.
Construction of Kiest Townhomes 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>
32 November, 1998 16 January, 1999
32 December, 1998 16 February, 1999
33 January, 1999 16 March, 1999
33 February, 1999 16 April, 1999
16 May, 1999
16 June, 1999
17 July, 1999
17 August, 1999
</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.
S-9
<PAGE>
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 SAYREVILLE PARTNERSHIP
(Gillette Manor Apartments)
Gillette Manor Apartments is a 100-unit apartment complex for senior
citizens which has been constructed on Washington Road at Hilltop Avenue in
Sayreville, New Jersey. Gillette Manor Apartments consists of 100 one-bedroom
units contained in 1 building. The complex offers a meeting room and central
laundry facilities.
Individual units contain a refrigerator, range, air conditioning, cable
television hook-up and an emergency call system.
Construction of Gillette Manor Apartments is complete and is 100%
occupied.
THE WOODHAVEN PARTNERSHIP
(Woodhaven Apartments)
Woodhaven Apartments is an 80-unit apartment complex for families and
senior citizens which has been constructed on Route 27 in South Brunswick, New
Jersey. Woodhaven Apartments consists of 40 one-bedroom units and 40
two-bedroom units contained in 13 buildings. The complex offers a clubhouse
with meeting room and central laundry facilities.
Individual units contain a refrigerator, range, dishwasher, disposal,
air conditioning and a patio or porch.
Construction of Woodhaven Apartments is complete and is 100% occupied.
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