SEPTEMBER 28, 1999 Y
SUPPLEMENT NO. 1 TO PROSPECTUS FOR
BOSTON CAPITAL TAX CREDIT FUND IV L.P.
DATED
SEPTEMBER 1, 1999
(SUPPLEMENT OFFERING BCTC IV SERIES 37 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.
Series 37'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 37 is offering at least 250,000 ($2.5 million) and up to 3,500,000
($35 million) Beneficial Assignee Certificates that are the equivalent of
limited partnership interests in Series 37;
o the price of the certificates is $10 each with a minimum investment of
$5,000;
o this offering will end no later than January 28, 2000; and
o your money will be held in escrow until at least 250,000 certificates are
sold.
Series 37'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.
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 36. The Fund has issued a total of
54,805,022 certificates, raised $547,748,500 and admitted 30,733 investors
within Series 20 through 36. See "Prior Performance of Boston Associates and Its
Affiliates" in the Prospectus for information about Series 20 through 33.
Investment Objectives and Acquisition Policies
Series 37'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.
To achieve these investment objectives, Series 37 will invest in apartment
complexes with a goal of generating tax credits, upon completion and occupancy
of all the apartment complexes averaging approximately $1.00 to $1.10 per
certificate annually--10%-11% annual tax credit as a percentage of capital
invested--for the ten-year credit period. After consulting with the
<PAGE>
underwriter regarding tax-free returns currently available to investors in other
similar tax credit investments, Series 37 has selected an investment objective
of 10%-11% annual tax credit as a percentage of capital invested. No additional
tax credits will be available for the remaining term of the fifteen-year federal
housing tax credit compliance period. This calculation assumes:
o the applicability of current tax law;
o each apartment complex is occupied with qualifying individuals throughout the
fifteen-year federal housing tax credit compliance period; and
o investors cannot use any passive tax losses generated by Series 37.
Possible Internal Rate of Return
The internal rate of return is the rate at which the present value of your
future tax benefits would equal the cost of your investment. In essence, it
illustrates your future tax credit benefit as a return of principal and interest
in today's dollars.
For investors in the 15%-39.6% tax bracket respectively, the tax-free rate of
return goal is approximately 2.5%-5% exclusive of any cash available for
distribution if:
o none of the apartment complexes invested in has any value at the end of the
fifteen-year federal housing tax credit compliance period; and
o investors do use for tax purposes the assumed loss of the investor's entire
capital contributions.
The tax-free rate of return will exceed 2.5%-5% if:
o the value of the apartment complexes exceeds indebtedness plus sale expenses;
and
o investors receive distributions from these sales or refinancings.
In accordance with the rules for the allocation of federal housing tax credits,
Series 37's investment goal is for the following annual tax-free amounts for
each $10,000 investment in Series 37: $100-$200 in 2000; $500-$600 in 2001;
$1,000-$1,100 in 2002-2010; and $400-$500 in 2011. This tax credit investment
goal is not a forecast of anticipated tax credits, nor does it represent a yield
or return on investment. Rather it is an investment goal of Series 37 for the
credit period applicable to its investments. There is no assurance that any
particular tax-free internal rate of return will be achieved.
The attainment of Series 37'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 37 will meet its investment objectives.
2
<PAGE>
Anticipated Investments
Series 37 expects to invest in the ten operating partnerships described below.
Each operating partnership will use a significant part of the funds invested by
Series 37 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 37 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
37 to invest in these apartment complexes or under the described investment
terms in deciding whether to invest in Series 37. If Series 37 raises the entire
$35 million, the anticipated acquisition of the operating partnership interests,
described below, will represent approximately 75% of the total money which
Series 37 currently expects to spend.
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Because Series 37 is currently in the offering phase, it has no material assets
or any operating history. Series 37 expects to acquire interests in the
following 10 operating partnerships, which will develop, own and operate
apartment complexes, 9 of which are to be newly constructed and 1 of which is to
be rehabilitated:
<TABLE>
<CAPTION>
Partnership Operating General Partner(s)
- ----------- ----------------------------
<S> <C>
1. Baldwin Villas L.P. Michael H. Jacobson
(the "Baldwin Villas Partnership") Terry L. Bailey
New Construction
2. Columbia Woods L.P. Noel Khalil
(the "Columbia Woods Partnership")
New Construction
3. Grottoes L.P. David Koogler
(the "Grottoes Partnership")
New Construction
4. Hillside Club II L.P. Michael H. Jacobson
(the "Hillside Partnership") Terry L. Bailey
New Construction
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
Partnership Operating General Partner(s)
- ----------- ----------------------------
<S> <C>
5. Pyramid V L.P. Phillips Development Corporation
(the "Pyramid Place Partnership")
New Construction
6. Striplin L.P. Sam Nicholson
(the "Striplin Partnership") Nancy Nicholson
New Construction
7. Highway 18 L.P. J.H. Thames, Jr.
(the "Summer Park Partnership") Rodney R. Triplett
New Construction
8. Vickers Parke L.P. Harbinger Development
(the "Vickers Parke Partnership")
Property Rehabilitation
9. Washington Heights L.P. Senior Suites Corporation
(the "Washington Heights Partnership")
New Construction
10. Wyndham Place L.P. Farnam Group
(the "Wyndham Place Partnership")
New Construction
</TABLE>
None of the operating general partners or the management companies is affiliated
with Boston Associates.
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 37 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 37 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. Baldwin Villas Pontiac, 65 $860 3BR Tax Exempt
Partnership Michigan $957 4BR Bond Financing
Program
(3)
2. Columbia Woods Newnan, 120 $450- Federal Housing
Partnership Georgia $475 1BR Tax Credits
$535-
$575 2BR
$615-
$675 3BR
3. Grottoes Grottoes, 32 $400 1BR Flexible Funds
Partnership Virginia $430 2BR Program
(5)
<CAPTION>
Permanent Mortgage Annual Annual
Partnership Mortgage Interest Reserve Management Management
Name Loan (2) Rate Amount Agent Fee
- ------------------- ---------------- ---------- --------- ------------- --------------
<S> <C> <C> <C> <C> <C>
1. Baldwin Villas Michigan 6.5% $13,000 Housing 6% of net
Partnership Housing Development rental income
Development Management
Authority Company
$5,000,000
(3)
2. Columbia Woods Bank of 8% $24,000 Affordable 6% of net
Partnership America Housing rental income
$3,905,000 Partnership
(4)
3. Grottoes Virginia 5% $ 6,800 Mark-Dana 6% of net
Partnership Housing Corporation rental income
Development
Authority
$977,000
(5)
</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 Baldwin Villas Partnership's anticipated permanent first
mortgage loan in the amount of $5,000,000 are expected to include a term of
30 years, an interest rate of 6.5% and payments of principal and interest on
the basis of a 30-year amortization schedule.
4 The terms of the Columbia Woods Partnership's anticipated permanent first
mortgage loan in the amount of $3,905,000 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.
5 The terms of the Grottoes Partnership's anticipated permanent first mortgage
loan in the amount of $977,000 are expected to include a term of 30 years, an
interest rate of 5% 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>
4. Hillside Bear Creek 88 $407 1BR Rural Rental
Partnership Township, $485 2BR Housing Section
Michigan $562 3BR 538 Loan
Guarantee
Program
(6)
5. Pyramid Place Spring Hill, 49 $200 1BR MultiFamily
Partnership Kansas $300 2BR Loan Program
$400 3BR (7)
6. Striplin Dandridge, 24 $365- Rural Rental
Partnership Tennessee $456 3BR Housing Section
538 Loan
Guarantee
Program
(8)
<CAPTION>
Permanent Mortgage Annual Annual
Partnership Mortgage Interest Reserve Management Management
Name Loan (2) Rate Amount Agent Fee
- ------------------ ------------------- ---------- --------- ------------ --------------
<S> <C> <C> <C> <C> <C>
4. Hillside Comerica Bank, 7.75% $17,600 Smith & 6% of net
Partnership N.A. Company rental income
$3,500,000
(6)
5. Pyramid Place Kansas 8.5% $14,000 Phillips 6% of net
Partnership Department of Management rental income
Housing and
Commerce
$1,406,000
(7)
6. Striplin First Virginia 7% $5,400 Nicholson 6% of net
Partnership Mortgage Management rental income
Company
$750,000
(8)
</TABLE>
- -----------------
6 The terms of the Hillside Partnership's anticipated permanent first mortgage
loan in the amount of $3,500,000 are expected to include a term of 30 years,
an interest rate of 7.75% and payments of principal and interest on the basis
of a 30-year amortization schedule.
7 The terms of the Pyramid Place Partnership's anticipated permanent first
mortgage loan in the amount of $1,406,000 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.
8 The terms of the Striplin Partnership's anticipated permanent first mortgage
loan in the amount of $750,000 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.
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>
7. Summer Park Jackson, 216 $445 1BR Tax Exempt
Partnership Mississippi $526 2BR Multifamily Bond
$598 3BR Program
(9)
8. Vickers Parke Ruthdale, 40 $278 1BR RHS Sec. 515
Partnership West Virginia $329 2BR
9. Washington Chicago, 85 $425- HOME Investment
Heights Illinois $475 0BR Partnerships
Partnership $470- Program(b)
$560 1BR (10)
10. Wyndham Place Shawnee, 48 $436- Federal Housing
Partnership Kansas $532 1BR Tax Credits
$522-
$750 2BR
<CAPTION>
Permanent Mortgage Annual Annual
Partnership Mortgage Interest Reserve Management Management
Name Loan (2) Rate Amount Agent Fee
- ------------------- ------------------ -------------- --------- ------------ ----------------
<S> <C> <C> <C> <C> <C>
7. Summer Park Mississippi 7.5% $32,400 Park 6% of net
Partnership Home Management rental income
Corporation
$9,800,000
(9)
8. Vickers Parke $1,449,000 1%(12) $14,680 Harbinger $26 per
Partnership Management occupied unit
per month
9. Washington Avondale 8% $14,285 Senior 6% of net
Heights Savings Bank 3% Lifestyles rental income
Partnership $772,000(a) Management
City of
Chicago
$3,172,000(b)
(10)
10. Wyndham Place First 8.5% $9,600 Farnam 6% of net
Partnership Cooperative Management rental income
Bank
$1,700,000
(11)
</TABLE>
- -----------------
9 The terms of the Summer Park Partnership's anticipated permanent first
mortgage loan in the amount of $9,800,000 are expected to include a term of
30 years, an interest rate of 7.5% and payments of principal and interest on
the basis of a 30-year amortization schedule.
10 (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.
11 The terms of the Wyndham Place Partnership's anticipated permanent first
mortgage loan in the amount of $1,700,000 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.
12 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.
7
<PAGE>
<TABLE>
<CAPTION>
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS
Ownership
Interest (%)
Profits,
Losses, Operating
BCTC IV Credit/Net General Operating
Partnership Capital Cash Flow/ Partner Deficit
Name Contribution Backend Contribution Guarantee
- ---------------- -------------- ------------- -------------- ----------------------
<S> <C> <C> <C> <C>
1. Baldwin $1,991,919 100/10/10 $100 Unlimited in
Villas duration and
Partnership amount
2. Columbia $3,156,524 68/10/24 $100 Unlimited in
Woods amount for
Partnership 3 years
3. Grottoes $1,166,880 100/20/20 $100 $50,000 in the
Partnership aggregate for
3 years
4. Hillside $2,646,149 99/10/10 $100 Unlimited in
Partnership amount for
3 years
5. Pyramid $1,985,455 100/20/20 $12,120 Unlimited in
Place amount for
Partnership 5 years
6. Striplin $1,053,587 100/30/30 $100 Unlimited in
Partnership duration and
amount
7. Summer $2,346,926 68/7/14 $100 In the amount
Park of 1 year operating
Partnership expenses and
reserves in the
aggregate for
3 years
8. Vickers $519,194 100/25/30 $24,780 Unlimited in
Parke duration and
Partnership amount
9. Washington $2,213,182 50/8/8 $100 Unlimited in
Heights duration for
Partnership $1,600,000 in
the aggregate
10. Wyndham $2,071,920 100/15/50 $100 Unlimited in
Place amount for
Partnership 3 years
<CAPTION>
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. Baldwin $7,081,000 $255,374 $1,000,000 $3,500 $3,500
Villas
Partnership
2. Columbia $7,829,000 $426,557 $1,090,000 $12,000 $12,000
Woods
Partnership
3. Grottoes $1,846,000 $149,600 $249,800 $10,000 $5,000
Partnership
4. Hillside $4,051,000 $348,177 $325,000 $5,000 $5,000
Partnership
5. Pyramid $3,261,000 $264,727 $259,000 $5,000 $2,000
Place
Partnership
6. Striplin $1,689,000 $142,377 $67,700 $1,800 $1,800
Partnership
7. Summer $12,471,000 $317,152 $1,195,000 $35,000 $7,500
Park
Partnership
8. Vickers $1,974,000 $70,161 $171,862 $750 $750
Parke
Partnership
9. Washington $7,607,000 $299,079 $622,000 $5,000 $5,000
Heights
Partnership
10. Wyndham $3,309,000 $274,427 $438,000 $5,000 $5,000
Place
Partnership
</TABLE>
8
<PAGE>
THE BALDWIN VILLAS PARTNERSHIP
(Baldwin Villas Apartments)
Baldwin Villas Apartments is a 65-single family home development for families
which is to be constructed on Warwick Drive between Stanley and Hollywood
Avenues in Pontiac, Michigan. Baldwin Villas Apartments will consist of 33
three-bedroom homes and 32 four-bedroom homes.
Individual homes will contain a refrigerator, range, dishwasher, disposal and
air conditioning.
Construction of Baldwin Villas Apartments is anticipated to begin in March,
2000. 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>
21 May, 2001 16 June, 2001
22 June, 2001 16 July, 2001
22 July, 2001 16 August, 2001
17 September, 2001
</TABLE>
THE COLUMBIA WOODS PARTNERSHIP
(Columbia Woods Townhomes)
Columbia Woods Townhomes is a 120-unit apartment complex for families which is
being constructed on Greison Trail in Newnan, Georgia. Columbia Woods Townhomes
will consist of 18 one-bedroom units, 71 two-bedroom units and 31 three-bedroom
units contained in 29 buildings. The complex will offer a pool, playground and
central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher, disposal, air
conditioning and a patio or porch.
Construction of Columbia Woods Townhomes 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>
20 March, 2000 12 April, 2000
20 April, 2000 12 May, 2000
20 May, 2000 12 June, 2000
20 June, 2000 12 July, 2000
20 July, 2000 12 August, 2000
20 August, 2000 12 September, 2000
12 October, 2000
12 November, 2000
12 December, 2000
12 January, 2001
</TABLE>
9
<PAGE>
THE GROTTOES PARTNERSHIP
(Grottoes Apartments)
Grottoes Apartments is a 32-unit apartment complex for families which is to be
constructed on Augusta Avenue in Grottoes, Virginia. Grottoes Apartments will
consist of 2 one-bedroom units and 30 two-bedroom units contained in 4
buildings. The complex will offer a function room, fitness center and central
laundry facilities.
Individual units will contain a refrigerator, range, dishwasher, air
conditioning and a patio or porch.
Construction of Grottoes 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>
16 August, 2000 8 September, 2000
16 September, 2000 8 October, 2000
8 November, 2000
8 December, 2000
</TABLE>
THE HILLSIDE PARTNERSHIP
(Hillside Club Apartments)
Hillside Club Apartments is an 88-unit apartment complex for families which is
to be constructed on Mitchell Road in Bear Creek Township, Michigan. Hillside
Club Apartments will consist of 28 one-bedroom units, 32 two-bedroom units and
28 three-bedroom units contained in 4 buildings. The complex will offer a
community room, pool, recreation room, individual storage units, playground and
central laundry facilities.
Individual units will contain a refrigerator, range with hood, dishwasher,
disposal, air conditioning and a patio or porch.
Construction of Hillside Club Apartments is anticipated to begin in October,
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>
22 September, 2000 12 October, 2000
22 October, 2000 12 November, 2000
22 November, 2000 12 December, 2000
22 December, 2000 13 January, 2001
13 February, 2001
13 March, 2001
13 April, 2001
</TABLE>
10
<PAGE>
THE PYRAMID PLACE PARTNERSHIP
(Pyramid Place Apartments)
Pyramid Place Apartments is a 49-unit apartment complex for families which is
being constructed in Spring Hill, Kansas. Pyramid Place Apartments will consist
of 14 one-bedroom units, 23 two-bedroom units and 12 three-bedroom units
contained in 8 buildings. The complex will offer a meeting room and central
laundry facilities.
Individual units will contain a refrigerator, range and a patio or porch.
Construction of Pyramid Place Apartments began in January, 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>
49 September, 1999 7 October, 1999
7 November, 1999
7 December, 1999
7 January, 2000
7 February, 2000
7 March, 2000
7 April, 2000
</TABLE>
THE STRIPLIN PARTNERSHIP
(Striplin Place Apartments)
Striplin Place Apartments is a 24-single family home development for families
which is to be constructed on East Dumplin Valley Road in Dandridge, Tennessee.
Striplin Place Apartments will consist of 24 three-bedroom homes. The complex
will offer central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher, disposal, air
conditioning and a patio or porch.
Construction of Striplin Place Apartments is anticipated to begin in February,
2000. 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>
12 October, 2000 6 November, 2000
12 November, 2000 6 December, 2000
6 January, 2001
5 February, 2001
</TABLE>
11
<PAGE>
THE SUMMER PARK PARTNERSHIP
(Summer Park Apartments)
Summer Park Apartments is a 216-unit apartment complex for families which is to
be constructed in Jackson, Mississippi. Summer Park Apartments will consist of
32 one-bedroom units, 112 two-bedroom units and 72 three-bedroom units contained
in 27 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 Summer Park Apartments is anticipated to begin in November,
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>
54 October, 2000 8 November, 2000
54 November, 2000 16 December, 2000
54 December, 2000 16 January, 2001
54 January, 2001 16 February, 2001
16 March, 2001
16 April, 2001
16 May, 2001
16 June, 2001
16 July, 2001
16 August, 2001
16 September, 2001
16 October, 2001
16 November, 2001
16 December, 2001
</TABLE>
THE VICKERS PARKE PARTNERSHIP
(Vickers Parke Apartments)
Vickers Parke Apartments is an existing 40-unit apartment complex for families
which is to be rehabilitated in Ruthdale, West Virginia. Vickers Parke
Apartments will consist of 9 one-bedroom units and 31 two-bedroom units
contained in 8 buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range and air conditioning.
12
<PAGE>
Rehabilitation of Vickers Parke Apartments is anticipated to begin in March,
2000. 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>
20 June, 2000 10 July, 2000
20 July, 2000 10 August, 2000
10 September, 2000
10 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 WYNDHAM PLACE PARTNERSHIP
(Wyndham Place Apartments)
Wyndham Place Apartments is a 48-unit apartment complex for families which is to
be constructed in Shawnee, Kansas. Wyndham Place Apartments will consist of 26
one-bedroom units and 22 two-bedroom units contained in 1 building. The complex
will offer a function room and central laundry facilities.
Individual units will contain a refrigerator, range, disposal and air
conditioning.
13
<PAGE>
Construction of Wyndham Place Apartments is anticipated to begin in November,
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>
48 November, 2000 8 January, 2001
8 February, 2001
8 March, 2001
8 April, 2001
8 May, 2001
8 June, 2001
</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 37's liquidity and financial condition. The majority of
Boston Associates's 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 37 but rather by affiliates of Boston Associates.
14
