JUNE 28, 1999
SUPPLEMENT NO. 2 TO PROSPECTUS FOR NY
BOSTON CAPITAL TAX CREDIT FUND IV L.P.
DATED
MAY 1, 1999
(SUPPLEMENT OFFERING BCTC IV SERIES 36 AND
IDENTIFYING CERTAIN ANTICIPATED INVESTMENTS)
This Supplement is part of, and should be read in conjunction with, Boston
Capital's Prospectus. Capitalized terms used herein but not defined have the
meanings ascribed to them in the Prospectus. This Supplement No. 2 supersedes
all previous supplements to the prospectus.
Series 36's Purpose--
o to invest in other limited partnerships that will each develop, own and
operate an apartment complex used as low- and moderate-income housing.
Terms of Offering--
o Series 36 is offering at least 250,000 ($2.5 million) and up to 2,500,000 ($25
million) Beneficial Assignee Certificates that are the equivalent of limited
partnership interests in Series 36;
o the price of the certificates is $10 each with a minimum investment of $5,000;
o this offering will end no later than December 31, 1999; and
o your money will be held in escrow until at least 250,000 certificates are
sold.
Series 36's Investors Will Receive--
o federal housing tax credits;
o tax losses that can offset passive income from any other investments; and
o profits, if any, from the sale of the apartment complexes.
<PAGE>
Prior Performance of Boston Associates and Its Affiliates
Boston Capital Tax Credit Fund IV L.P. (the "Fund") has issued other series in
other offerings--Series 20 to Series 35. The Fund has issued a total of
52,857,259 certificates, raised $528,273,500 and admitted 29,957 investors
within Series 20 through 35, and may still sell up to $121,726,500 to the
public if all the certificates in Series 36 are sold. See "Prior Performance of
Boston Associates and Its Affiliates" in the Prospectus for information about
Series 20 through 34.
The Fund received orders for a total of 3,562,700 Series 35 certificates
($35,627,000), and issued the last of these certificates on June 25, 1999. The
fees paid as of June 25, 1999 to Boston Capital and affiliates for Series 35
totaled $4,203,986. No additional Series 35 certificates will be offered.
Investment Objectives and Acquisition Policies
Series 36's principal business is to invest, as a limited partner, in other
limited partnerships (the "operating partnerships"), each of which will
develop, own and operate an apartment complex which is expected to qualify for
federal housing tax credits in order to achieve the investment goals set forth
in the Prospectus.
The attainment of Series 36's investment objectives will depend on many
factors, including the ability of Boston Associates to select suitable
investments on a timely basis, the timely completion and successful management
of such investments and future economic conditions in the United States.
Accordingly, there can be no assurance that Series 36 will meet its investment
objectives.
Anticipated Investments
Series 36 expects to invest in the ten operating partnerships described below.
Each operating partnership will use a significant part of the funds invested by
Series 36 to pay fees to the operating general partners. See the table entitled
"Terms of Investment in Operating Partnerships" in this Supplement.
While Boston Associates believes that Series 36 is reasonably likely to acquire
interests in the apartment complexes described below, it may not be able to do
so. Before any acquisition is made, Boston Associates will complete its due
diligence review as to the operating partnership and its 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 Boston Associates, either action
will be taken to mitigate the adverse factor(s), or the acquisition will not be
made. It is also possible that the acquisition terms may differ significantly
from those described below. Accordingly, investors should not rely on the
ability of Series 36 to invest in these apartment complexes or under the
described investment terms in deciding whether to invest in Series 36. If
Series 36 raises the entire $25 million, the anticipated acquisition of the
operating partnership interests, described below, will represent approximately
79% of the total money which Series 36 currently expects to spend.
2
<PAGE>
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Because Series 36 is currently in the offering phase, it has no material assets
or any operating history. Series 36 expects to acquire interests in the
following ten operating partnerships, seven of which are to be newly
constructed and three of which are to be rehabilitated:
<TABLE>
<CAPTION>
Partnership Operating General Partner(s)
- ------------------------------------------ ------------------------------------------
<S> <C>
1. Aloha Housing L.P. Mainland Development Company
(the "Aloha Partnership")
Property Rehabilitation
2. Nowata Village L.P. Green Development Group
(the "Nowata Village Partnership")
Property Rehabilitation
3. Paris Place L.P. Garry Watkins
(the "Paris Place Partnership") Dennis Buckles
New Construction
4. Riverview Bend L.P. American Housing Preservation Corporation
(the "Riverview Bend Partnership")
Property Rehabilitation
5. South Gate Village L.P. National Housing Corporation
(the "South Gate Partnership")
New Construction
6. Valley View L.P. Carlson Gardner Woodman Inc.
(the "Valley View Partnership")
New Construction
7. Washington Heights L.P. Senior Suites Corporation
(the "Washington Heights Partnership")
New Construction
8. Wedgewood Park L.P. Norsouth Corporation
(the "Wedgewood Park Partnership")
New Construction
9. Willowbrook L.P. Riemer Calhoun
(the "Willowbrook Partnership")
New Construction
10. Wingfield Apartments L.P. Riemer Calhoun
(the "Wingfield Partnership")
New Construction
</TABLE>
None of the operating general partners or the management companies are
affiliated with Boston Associates.
3
<PAGE>
Permanent Mortgage Loan financing for the apartment complexes will be provided
from a variety of sources. Boston Associates believes that each of the
apartment complexes 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 36 is $1.05 per certificate (10.5%). The
priority return base is the level of return that investors must receive before
Boston Associates may receive a 5% share in the proceeds from the sale or
refinancing of apartment complexes. In establishing the priority return base,
Boston Associates does not represent that Series 36 is expected to provide this
level of return to investors. Boston Associates will receive fees and
compensation for services prior to investors receiving the priority return.
4
<PAGE>
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Basic Government
Partnership Location Number Monthly Assistance
Name of Property of Units Rents (1) Anticipated
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Aloha Aloha, 69 $676 1BR Tax Exempt Bond
Partnership Oregon $785- Financing
$810 2BR Program
$903- Tax Exempt Bond
$968 3BR Financing issued
through
Washington
County Housing
and Educational
Facilities
Authority
2. Nowata Village Nowata, 28 $290 1BR RHS Sec. 515
Partnership Oklahoma $360 2BR with 100% rental
$580 3BR assistance
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Permanent Mortgage Annual Annual
Partnership Mortgage Interest Reserve Management Management
Name Loan (2) Rate Amount Agent Fee
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Aloha Oregon Housing 12% $17,500 Liberty 5% of net rental
Partnership and Community Management income
Services
Department
$1,600,000(4a)
Municipal 7%
Mortgage and
Equity
$2,000,000(4b)
2. Nowata Village $ 957,000 1%(3) $ 9,600 Green $22 per
Partnership Development occupied unit
per month
</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) Rural Housing Service ("RHS") (formerly Farmers Home Administration) 515
loan with a term of 50 years and a stated interest rate of between 7.5% and
9.5%, written down to an effective rate of 1% through an interest credit
subsidy, and payments of principal and interest on the basis of a 50 year
amortization schedule.
(4) (a) The terms of the Aloha Partnership's anticipated permanent first
mortgage loan in the amount of $1,600,000 are expected to include a term of
15 years, an interest rate of 12% and payments of principal and interest on
the basis of a 15-year amortization schedule.
(b) The terms of the Aloha 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 7% and payments of principal and interest on
the basis of a 30-year amortization schedule.
5
<PAGE>
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Basic Government
Partnership Location Number Monthly Assistance
Name of Property of Units Rents(1) Anticipated
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
3. Paris Place Paris, 32 $390 2BR Risk Sharing
Partnership Kentucky $450 3BR Program
HOME Investment
Partnerships
Program
4. Riverview Bend Crystal City, 94 $395 1BR Tax Exempt Bond
Partnership Missouri $503 2BR Financing
$590 3BR Program
$655 4BR
5. South Gate Aberdeen, 108 $550 2BR Federal Housing
Partnership Maryland $650 3BR Tax Credits
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Permanent Mortgage Annual Annual
Partnership Mortgage Interest Reserve Management Management
Name Loan (2) Rate Amount Agent Fee
- ---------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
3. Paris Place Federal 6.6% $ 8,000 Wabuck 6% of net rental
Partnership Housing Development income
Administration
$430,000(5a)
Federal Home 2.5%
Loan Bank
$421,000(5b)
Kentucky 1%
Housing
Corporation
$434,000(5c)
4. Riverview Bend Missouri 7.13% $28,200 Liberty 6% of net rental
Partnership Housing Management income
Development
Commission
$3,250,000
(6)
5. South Gate Tate Terrace 8.5% $21,600 National 6% of net rental
Partnership Realty Inc. Housing income
$4,200,000 Management
(7)
</TABLE>
- -----------------
(5) (a) The terms of the Paris Place Partnership's anticipated permanent first
mortgage loan in the amount of $430,000 are expected to include a term of
30 years, an interest rate of 6.6% and payments of principal and interest
on the basis of a 30-year amortization schedule.
(b) The terms of the Paris Place Partnership's anticipated permanent second
mortgage loan in the amount of $421,000 are expected to include a term of
25 years, an interest rate of 2.5% and payments of principal and interest
on the basis of a 25-year amortization schedule, provided, however, that
the terms of the permanent second mortgage loan will provide for the
deferral and accrual of payments of principal and interest based on
available cash flow, and for the payment of the entire outstanding balance
of principal and interest at the end of the 25-year term.
(c) The terms of the Paris Place Partnership's anticipated permanent third
mortgage loan in the amount of $434,000 are expected to include a term of
25 years, an interest rate of 1% and payments of principal and interest on
the basis of a 25-year amortization schedule, provided, however, that the
terms of the permanent third mortgage loan will provide for the deferral
and accrual of payments of principal and interest based on available cash
flow, and for the payment of the entire outstanding balance of principal
and interest at the end of the 25-year term.
(6) The terms of the Riverview Bend Partnership's anticipated permanent first
mortgage loan in the amount of $3,250,000 are expected to include a term of
30 years, an interest rate of 7.13% and payments of principal and interest
on the basis of a 30-year amortization schedule.
(7) The terms of the South Gate Partnership's anticipated permanent first
mortgage loan in the amount of $4,200,000 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.
6
<PAGE>
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Basic Government
Partnership Location Number Monthly Assistance
Name of Property of Units Rents(1) Anticipated
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
6. Valley View Branson West, 32 $240 2BR HOME Investment
Partnership Missouri $320 3BR Partnerships
Program
7. Washington Chicago, 85 $425- HOME Investment
Heights Illinois $475 0BR Partnerships
Partnership $470- Program
$560 1BR
8. Wedgewood Park Evans, 180 $410 1BR Federal Housing
Partnership Georgia $490 2BR Tax Credits
$540 3BR
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Permanent Mortgage Annual Annual
Partnership Mortgage Interest Reserve Management Management
Name Loan (2) Rate Amount Agent Fee
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
6. Valley View Missouri 1% $ 9,600 Carlson 6% of net rental
Partnership Housing Gardner income
Development Woodman Inc.
Commission
$500,000
(8)
7. Washington Avondale 8% $14,285 Senior 6% of net rental
Heights Savings Bank Lifestyles income
Partnership $772,000(9a) Management
City of 3%
Chicago
$3,172,000(9b)
8. Wedgewood Park Midland 8% $27,000 Norsouth 6% of net rental
Partnership Mortgage Management income
Investment
Corporation
$5,475,000
(10)
</TABLE>
- -----------------
(8) The terms of the Valley View Partnership's anticipated permanent first
mortgage loan in the amount of $500,000 are expected to include a term of
25 years, an interest rate of 1% and payments of principal and interest on
the basis of a 25-year amortization schedule.
(9) (a) The terms of the Washington Heights Partnership's anticipated permanent
first mortgage loan in the amount of $772,000 are expected to include a
term of 29 years, an interest rate of 8% and payments of principal and
interest on the basis of a 29-year amortization schedule.
(b) The terms of the Washington Heights Partnership's anticipated permanent
second mortgage loan in the amount of $3,172,000 are expected to include a
term of 30 years, an interest rate of 3% and payments of interest only
provided, however, that the terms of the permanent second mortgage loan
will provide for the deferral and accrual of payments of interest based on
available cash flow, and for the payment of the entire outstanding balance
of principal and interest at the end of the 30-year term.
(10) The terms of the Wedgewood Park Partnership's anticipated permanent first
mortgage loan in the amount of $5,475,000 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
<PAGE>
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Basic Government
Partnership Location Number Monthly Assistance
Name of Property of Units Rents(1) Anticipated
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
9. Willowbrook Lafayette, 40 $300- Community
Partnership Louisiana $385 2BR Development
$490 4BR Block Grant
Program
10. Wingfield Kinder, 40 $295- Rural Apartment
Partnership Louisiana $350 2BR Development
$415 4BR Program
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Permanent Mortgage Annual Annual
Partnership Mortgage Interest Reserve Management Management
Name Loan (2) Rate Amount Agent Fee
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
9. Willowbrook Hibernia Bank 8% $8,000 Calhoun 5% of net rental
Partnership $516,500(11a) Property income
City and 3% Management
Parish of
Lafayette
$514,000(11b)
10. Wingfield Hibernia Bank 8% $8,000 Calhoun 5% of net rental
Partnership $147,000(12a) Property income
Louisiana 6% Management
Housing
Finance Agency
$400,000(12b)
</TABLE>
- -----------------
(11) (a) The terms of the Willowbrook Partnership's anticipated permanent first
mortgage loan in the amount of $516,500 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 Willowbrook Partnership's anticipated permanent second
mortgage loan in the amount of $514,000 are expected to include a term of
30 years, an interest rate of 3% and payments of principal and interest on
the basis of a 30-year amortization schedule, provided, however, that the
terms of the permanent second mortgage loan will provide for the deferral
and accrual of payments of principal and interest based on available cash
flow, and for the payment of the entire outstanding balance of principal
and interest at the end of the 30-year term.
(12) (a) The terms of the Wingfield Partnership's anticipated permanent first
mortgage loan in the amount of $147,000 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 Wingfield 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 6% 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
<PAGE>
<TABLE>
<CAPTION>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS
Ownership
Interest(%)
Profits,
Losses, Operating
BCTC IV Credit/Net General
Partnership Capital Cash Flow/ Partner Operating Deficit
Name Contribution Backend Contribution Guarantee
- -----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Aloha $ 880,137 100/20/50 $100 Unlimited in
Partnership duration and
amount
2. Nowata $ 316,592 100/40/40 $33,500 Unlimited in
Village amount for
Partnership 5 years
3. Paris Place $ 938,007 100/20/50 $100 $200,000 in the
Partnership aggregate for
5 years
4. Riverview $1,113,838 100/20/50 $100 Unlimited in
Bend duration and
Partnership amount
5. South Gate $2,468,375 50/5/10 $100 $190,000 in the
Partnership aggregate for
3 years
6. Valley View $1,306,789 100/10/20 $100 $200,000 in the
Partnership aggregate for
3 years
7. Washington $2,213,182 50/8/8 $100 Unlimited in
Heights duration for
Partnership $1,600,000 in
the aggregate
8. Wedgewood $3,551,821 50/17.5/25 $100 $600,000 in the
Park aggregate for
Partnership 10 years
9. Willowbrook $1,201,755 100/30/30 $100 Unlimited in
Partnership duration and
amount
10. Wingfield $1,645,817 100/30/30 $100 Unlimited in
Partnership duration and
amount
<CAPTION>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS
Fund's Annual
Approximate Development Partnership Asset
Operating Average Annual Fee/Other Management Management
Partnership Partnership's Anticipated Distributions Fee to Fee to Boston
Name Credit Base Federal Credit to Operating GP Operating GP Capital
- --------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Aloha $3,360,000 $118,937 $380,350 $7,000 $7,000
Partnership
2. Nowata $1,198,000 $42,212 $98,000 $1,500 $1,500
Village
Partnership
3. Paris Place $1,556,000 $125,068 $178,000 $2,500 $2,500
Partnership
4. Riverview $4,295,000 $150,519 $398,413 $3,500 $3,500
Bend
Partnership
5. South Gate $7,185,000 $333,564 $937,000 $50,000 $10,800
Partnership
6. Valley View $2,163,000 $174,239 $289,000 $2,500 $2,500
Partnership
7. Washington $7,607,000 $299,079 $622,000 $5,000 $5,000
Heights
Partnership
8. Wedgewood $11,710,000 $479,976 $1,575,100 $10,000 $10,000
Park
Partnership
9. Willowbrook $1,977,000 $160,234 $258,000 $2,000 $2,000
Partnership
10. Wingfield $2,728,000 $222,408 $181,000 $4,000 $4,000
Partnership
</TABLE>
9
<PAGE>
THE ALOHA PARTNERSHIP
(Farmington Meadows Apartments)
Farmington Meadows Apartments is an existing 69-unit apartment complex for
families which is to be rehabilitated on Southwest 160 Avenue between Farmington
Road and the Tualatin Valley Highway in Aloha, Oregon. Farmington Meadows
Apartments will consist of 8 one-bedroom units, 49 two-bedroom units and 12
three-bedroom units contained in 7 buildings. The complex will offer a
basketball court and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher, disposal, air
conditioning and a patio or porch.
Rehabilitation of Farmington Meadows Apartments is anticipated to begin in
October, 1999. The operating general partner anticipates that completion of
rehabilitation and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
<S> <C> <C> <C>
69 December, 1999 69 January, 2000
</TABLE>
THE NOWATA VILLAGE PARTNERSHIP
(Nowata Village Apartments)
Nowata Village Apartments is an existing 28-unit apartment complex for families
which is to be rehabilitated on Turner Lane in Nowata, Oklahoma. Nowata Village
Apartments will consist of 8 one-bedroom units, 16 two-bedroom units and 4
three-bedroom units contained in 5 buildings. The complex will offer playground
and central laundry facilities.
Individual units will contain a refrigerator, range and air conditioning.
Rehabilitation of Nowata Village Apartments is anticipated to begin in August,
1999. The operating general partner anticipates that completion of
rehabilitation and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
<S> <C> <C> <C>
14 November, 1999 10 January, 2000
14 December, 1999 9 February, 2000
9 March, 2000
</TABLE>
THE PARIS PLACE PARTNERSHIP
(Paris Place Apartments)
Paris Place Apartments is a 32-unit apartment complex for families which is
being constructed on Castle Boulevard between Bethlehem and Clintonville Roads
in Paris, Kentucky. Paris Place Apartments will consist of 24 two-bedroom units
and 8 three-bedroom units contained in 20 buildings. The complex will offer
central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher, disposal, air
conditioning and a patio or porch.
10
<PAGE>
Construction of Paris Place Apartments began in June, 1999. The operating
general partners anticipate that construction completion and occupancy will
occur as follows:
<TABLE>
<CAPTION>
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
<S> <C> <C> <C>
16 February, 2000 12 March, 2000
16 March, 2000 12 April, 2000
8 May, 2000
</TABLE>
THE RIVERVIEW BEND PARTNERSHIP
(Riverview Bend Apartments)
Riverview Bend Apartments is an existing 94-unit apartment complex for families
which is to be rehabilitated on Flagship and Missouri Avenues in Crystal City,
Missouri. Riverview Bend Apartments will consist of 48 one-bedroom units, 24
two-bedroom units, 18 three-bedroom units and 4 four-bedroom units contained in
6 buildings. The complex will offer a meeting room and central laundry
facilities.
Individual units will contain a refrigerator, range, dishwasher, disposal, air
conditioning and a patio or porch.
Rehabilitation of Riverview Bend Apartments is anticipated to begin in October,
1999. The operating general partner anticipates that completion of
rehabilitation and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
<S> <C> <C> <C>
94 April, 2000 94 May, 2000
</TABLE>
THE SOUTH GATE PARTNERSHIP
(South Gate Village Apartments)
South Gate Village Apartments is a 108-unit apartment complex for families which
is to be constructed on Philadelphia Boulevard north of Highway 40 and east of
Nottingham Drive in Aberdeen, Maryland. South Gate Village Apartments will
consist of 72 two-bedroom units and 36 three-bedroom units contained in 11
buildings. The complex will offer a function room, pool, playground and central
laundry facilities.
Individual units will contain a refrigerator, range, dishwasher, disposal, air
conditioning and a patio or porch.
Construction of South Gate Village Apartments is anticipated to begin in August,
1999. The operating general partner anticipates that construction completion and
occupancy will occur as follows:
<TABLE>
<CAPTION>
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
<S> <C> <C> <C>
27 March, 2000 12 April, 2000
27 April, 2000 12 May, 2000
27 May, 2000 12 June, 2000
27 June, 2000 12 July, 2000
12 August, 2000
12 September, 2000
12 October, 2000
12 November, 2000
12 December, 2000
</TABLE>
11
<PAGE>
THE VALLEY VIEW PARTNERSHIP
(Valley View Apartments)
Valley View Apartments is a 32-unit apartment complex for families which is to
be constructed on Highway 13 in Branson West, Missouri. Valley View Apartments
will consist of 16 two-bedroom units and 16 three-bedroom units contained in 4
buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range with exhaust fan, microwave,
dishwasher, disposal, air conditioning, ceiling fans and a patio or porch.
Construction of Valley View Apartments is anticipated to begin in August, 1999.
The operating general partner anticipates that construction completion and
occupancy will occur as follows:
<TABLE>
<CAPTION>
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
<S> <C> <C> <C>
16 June, 2000 8 July, 2000
16 July, 2000 8 August, 2000
8 September, 2000
8 October, 2000
</TABLE>
THE WASHINGTON HEIGHTS PARTNERSHIP
(Washington Heights Apartments)
Washington Heights Apartments is an 85-unit apartment complex for senior
citizens which is to be constructed on South Peoria at West 103 Street in
Chicago, Illinois. Washington Heights Apartments will consist of 53 efficiency
units and 32 one-bedroom units contained in 1 building. The complex will offer a
function room, library and central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning and cable
television hook-up.
Construction of Washington Heights Apartments is anticipated to begin in
October, 1999. The operating general partner anticipates that construction
completion and occupancy will occur as follows:
<TABLE>
<CAPTION>
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
<S> <C> <C> <C>
85 November, 2000 19 January, 2001
11 February, 2001
11 March, 2001
11 April, 2001
11 May, 2001
11 June, 2001
11 July, 2001
</TABLE>
THE WEDGEWOOD PARK PARTNERSHIP
(Wedgewood Park Apartments)
Wedgewood Park Apartments is a 180-unit apartment complex for families which is
being constructed on Old Evans Road in Evans, Georgia. Wedgewood Park Apartments
will consist of 24 one-bedroom units, 108 two-bedroom units and 48 three-bedroom
units contained in 13 buildings. The complex will offer a function room, pool,
fitness center, playground, basketball court and central laundry facilities.
12
<PAGE>
Individual units will contain a refrigerator, range, dishwasher, disposal, air
conditioning and cable television hook-up.
Construction of Wedgewood Park Apartments began in May, 1999. The operating
general partner anticipates that construction completion and occupancy will
occur as follows:
<TABLE>
<CAPTION>
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
<S> <C> <C> <C>
30 July, 2000 15 August, 2000
30 August, 2000 15 September, 2000
30 September, 2000 15 October, 2000
30 October, 2000 15 November, 2000
30 November, 2000 15 December, 2000
30 December, 2000 15 January, 2001
15 February, 2001
15 March, 2001
15 April, 2001
15 May, 2001
15 June, 2001
15 July, 2001
</TABLE>
THE WILLOWBROOK PARTNERSHIP
(Willowbrook Apartments)
Willowbrook Apartments is a 40-unit apartment complex for families which is
being constructed on West Willow Street in Lafayette, Louisiana. Willowbrook
Apartments will consist of 34 two-bedroom units and 6 four-bedroom units
contained in 20 buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher and disposal.
Construction of Willowbrook Apartments began in May, 1999. The operating general
partner anticipates that construction completion and occupancy will occur as
follows:
<TABLE>
<CAPTION>
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
<S> <C> <C> <C>
10 February, 2000 8 March, 2000
10 March, 2000 8 April, 2000
10 April, 2000 8 May, 2000
10 May, 2000 8 June, 2000
8 July, 2000
</TABLE>
THE WINGFIELD PARTNERSHIP
(Wingfield Apartments)
Wingfield Apartments is a 40-unit apartment complex for families which is being
constructed on 13 Street in Kinder, Louisiana. Wingfield Apartments will consist
of 34 two-bedroom units and 6 four-bedroom units contained in 14 buildings. The
complex will offer a function room and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher and disposal.
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<PAGE>
Construction of Wingfield Apartments began in May, 1999. The operating general
partner anticipates that construction completion and occupancy will occur as
follows:
<TABLE>
<CAPTION>
Number of Units Completion Number of Units Rent-Up
--------------- ---------- --------------- -------
<S> <C> <C> <C>
10 November, 1999 5 March, 2000
10 December, 1999 5 April, 2000
10 January, 2000 5 May, 2000
10 February, 2000 5 June, 2000
5 July, 2000
5 August, 2000
5 September, 2000
5 October, 2000
</TABLE>
* * * * * * * *
YEAR 2000
Boston Associates and its management have reviewed the potential computer
problems that may arise from the century date change known as the "Year 2000" or
"Y2K" problem. Boston Associates is currently taking the necessary precautions
to minimize any disruptions in normal operations that may cause a materially
adverse impact on Series 36's liquidity and financial condition. The majority of
Boston Associates' systems are "Y2K" compliant, including its
Accounting/Financial systems and database systems. For all remaining systems,
Boston Associates has contacted the vendors to provide the necessary upgrades,
replacements, and testing no later than year-end 1999. Boston Associates is
committed to ensuring that the "Y2K" issue will have no impact on our investors.
None of the costs incurred creating "Y2K" compliant systems will be paid by
Series 36 but rather by affiliates of Boston Associates.
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