MAY 1, 1999
Y
SUPPLEMENT NO. 1 TO PROSPECTUS FOR
BOSTON CAPITAL TAX CREDIT FUND IV L.P.
DATED
MAY 1, 1999
(SUPPLEMENT OFFERING BCTC IV SERIES 35 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 35'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 35 is offering at least 250,000 ($2.5 million) and up to 4,000,000
($40 million) Beneficial Assignee Certificates that are the equivalent of
limited partnership interests in Series 35;
o the price of the certificates is $10 a piece 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 35'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. ("Boston Capital") has issued other
series in other offerings--Series 20 to Series 34. Boston Capital has issued a
total of 49,295,559 certificates, raised $492,656,500 and admitted 27,705
investors within Series 20 through 34, and may still sell up to $117,343,500 to
the public if all the certificates in Series 35 are sold. See "Prior
Performance of Boston Associates and Its Affiliates" in the Prospectus for
information about Series 20 through 32.
Boston Capital received orders for a total of $3,530,319 Series 34 certificates
($35,283,000), and issued the last of these certificates on February 11, 1999.
The fees paid as of February 11, 1999 to Boston Capital and affiliates for
Series 34 totaled $4,163,394. No additional Series 34 certificates will be
offered.
As of April 30, 1999, Boston Capital has issued 1,300,500 Series 35
certificates ($13,005,000). The initial monies placed into escrow have been
released because more than 250,000 certificates ($2.5 million) have been sold.
Investment Objectives and Acquisition Policies
Series 35'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 35 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
<PAGE>
period. Series 35 has selected a 10%-11% annual tax credit as a percentage of
capital invested, as an investment objective, after consulting with the
underwriter regarding tax-free returns currently available to investors in
other similar tax credit investments. 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 35.
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 have 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 35's investment goal is for the following annual tax-free amounts for
each $10,000 investment in Series 35: $100-200 in 1999; $400-$600 in 2000;
$1,000-$1,100 in 2001-2009; and $400-$600 in 2010. 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 35 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 35'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 35 will meet its investment
objectives.
Anticipated Investments
Series 35 expects to invest in the ten operating partnerships described below.
Each operating partnership will use a significant part of the funds invested by
Series 35 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 35 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
2
<PAGE>
acquisition terms may differ significantly from those described below.
Accordingly, investors should not rely on the ability of Series 35 to invest in
these apartment complexes or under the described investment terms in deciding
whether to invest in Series 35. If Series 35 raises the entire $40 million, the
anticipated acquisition of the operating partnership interests, described
below, will represent approximately 81% of the total money which Series 35
currently expects to spend.
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Because Series 35 is currently in the offering phase, it has no material assets
or any operating history. Series 35 expects to acquire interests in the
following ten operating partnerships, all of which are to be newly constructed:
<TABLE>
<CAPTION>
Partnership Operating General Partner(s)
- ---------------------------------------------- -----------------------------
<S> <C>
1. Ashton Cove L.P. William J. Rea;
(the "Ashton Cove Partnership") Michael H. Godwin;
R. Ryan Holmes
2. Tennessee Partners XII L.P. J.H. Thames, Jr.;
(the "Autumn Park Partnership") Chip Triplett
3. Brazoswood L.P. Sally Gaskin
(the "Brazoswood Partnership")
4. Columbia Woods L.P. Noel Khalil
(the "Columbia Woods Partnership")
5. Mulvane Housing L.P. Midland Residential Ventures
(the "Country Walk Partnership")
6. Cypress Point L.P. Campbell, Hogue & Associates
(the "Cypress Point Partnership")
7. New Caney Housing Ltd. Houston Our House, Inc.;
(the "Garden Gates Partnership") East Montgomery Housing LLC
8. Hillside Terrace L.P. Home Properties
(the "Hillside Terrace Partnership")
9. Riverwalk Homes II LLC Gorman & Company, Inc.
(the "Riverwalk Partnership")
10. Washington Courtyards L.P. Texas InterfaithHousing
(the "Washington Courtyards Partnership") Corporation;
Avenue Community
Development Corporation
</TABLE>
None of the operating general partners or the management companies are
affiliated with Boston Associates. Construction has begun on Ashton Cove,
Autumn Park, Country Walk, Garden Gates, Hillside Terrace and Riverwalk
Apartments.
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.
3
<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. Ashton Cove Kingsland, 72 $270 1BR HOME Investment
Partnership Georgia $330- Partnerships
$340 2BR Program
$390 3BR
2. Autumn Park Dickson, 104 $407- Tennessee Housing
Partnership Tennessee $440 1BR Development
$482- Agency 1998 Tax
$535 2BR Exempt Multi-family
$610 3BR Bond Authority
Program
3. Brazoswood Clute, 72 $400- Federal Housing Tax
Partnership Texas $440 1BR Credits
$440-
$560 2BR
$575-
$650 3BR
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Permanent Mortgage Annual Annual
Partnership Mortgage Interest Reserve Management Management
Name Loan (2) Rate Amount (3) Agent Fee
- ---------------- ------------------------ ---------- ------------ ------------------- -----------------
<S> <C> <C> <C> <C> <C>
1. Ashton Cove Georgia 1% $14,400 Ambling 6% of net rental
Partnership Department of Management income
Community Affairs Company
$1,993,000
(4)
2. Autumn Park Dickson Health and 5% $20,800 Park Management 6% of net rental
Partnership Educational income
Facilities Board
$5,000,000
(5)
3. Brazoswood General Electric 8.5% $15,200 Orion Real Estate 6% of net rental
Partnership Capital Corporation income
$1,846,000
(6)
</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 Amount deposited annually by the operating partnership to its Capital
Reserves Account for future capital improvements or capital replacements.
4 The terms of the Ashton Cove Partnership's anticipated permanent first
mortgage loan in the amount of $1,993,000 are expected to include a term of
20 years, an interest rate of 1% and payments of principal and interest on
the basis of a 30-year amortization schedule.
5 The terms of the Autumn Park 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 5% and payments of principal and interest on
the basis of a 30-year amortization schedule.
6 The terms of the Brazoswood Partnership's anticipated permanent first
mortgage loan in the amount of $1,846,000 are expected to include a term of
15 years, an interest rate of 8.5% and payments of principal and interest on
the basis of a 30-year amortization schedule.
4
<PAGE>
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Basic Government
Partnership Location Number Monthly Assistance
Name of Property of Units Rents Anticipated
- ------------------- -------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C>
4. Columbia Woods Newnan, 120 $450- Federal Housing Tax
Partnership Georgia $475 1BR Credits
$535-
$575 2BR
$615-
$675 3BR
5. Country Walk Mulvane, 68 $380- Federal Housing Tax
Partnership Kansas $425 1BR Credits
$225-
$540 2BR
$575-
$625 3BR
6. Cypress Point Casa Grande, 104 $282- Federal Housing Tax
Partnership Arizona $463 1BR Credits
$444-
$635 2BR
7. Garden Gates New Caney, 32 $418- Federal Housing Tax
Partnership Texas $510 1BR Credits
$503-
$621 2BR
$578-
$706 3BR
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Permanent Mortgage Annual Annual
Partnership Mortgage Interest Reserve Management Management
Name Loan Rate Amount Agent Fee
- ------------------- -------------------- ---------- --------- ---------------- -----------------
<S> <C> <C> <C> <C> <C>
4. Columbia Woods Bank of America 8% $24,000 Affordable 6% of net rental
Partnership $3,905,000 Housing income
(7) Partnership
5. Country Walk General Motors 8.5% $13,600 Midland 6% of net rental
Partnership Acceptance Management income
Corporation
$1,800,000
(8)
6. Cypress Point Llama Capital 8% $20,800 Campbell-Hogue 6% of net rental
Partnership $2,700,000 Management income
(9)
7. Garden Gates Llama Capital 8.12% $6,400 LCJ Management 6% of net rental
Partnership $731,000 Inc. income
(10)
</TABLE>
- -----------------
7 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.
8 The terms of the Country Walk Partnership's anticipated permanent first
mortgage loan in the amount of $1,800,000 are expected to include a term of
15 years, an interest rate of 8.5% and payments of principal and interest on
the basis of a 20-year amortization schedule.
9 The terms of the Cypress Point Partnership's anticipated permanent first
mortgage loan in the amount of $2,700,000 are expected to include a term of
30 years, an interest rate of 8% and payments of principal and interest on
the basis of a 30-year amortization schedule.
10 The terms of the Garden Gates Partnership's anticipated permanent first
mortgage loan in the amount of $731,000 are expected to include a term of 30
years, an interest rate of 8.12% 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 Anticipated
- --------------------- --------------- ---------- ---------- ---------------------
<S> <C> <C> <C> <C>
8. Hillside Terrace Poughkeepsie, 64 $498- HOME Investment
Partnership New York $603 1BR Partnerships
$598- Program
$724 2BR
$690 3BR
9. Riverwalk Sheboygan, 20 $230- Federal Housing Tax
Partnership Wisconsin $425 1BR Credits
$471-
$495 2BR
10. Washington Houston, 74 $432- Affordable
Courtyards Texas $600 1BR Housing Program
Partnership $524-
$720 2BR
$608-
$825 3BR
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Permanent Mortgage Annual Annual
Partnership Mortgage Interest Reserve Management Management
Name Loan Rate Amount Agent Fee
- --------------------- ---------------------------- ---------- --------- ------------------ -----------------
<S> <C> <C> <C> <C> <C>
8. Hillside Terrace Home Properties 8.25% $12,800 Conifer Realty 6% of net rental
Partnership $1,600,000 (11)(a) income
Dutchess County
$214,000 1%
(11)(b)
9. Riverwalk Llama Capital 8% $3,000 Gorman & 6% of net rental
Partnership $460,000 Company, Inc. income
(12)
10. Washington Southwest Bank 7.35% $14,800 Texas Interfaith 5% of net rental
Courtyards $2,900,000 Management income
Partnership (13)(a) Corporation
Federal Home 5.7%
Loan Bank
$88,000
(13)(b)
</TABLE>
- -----------------
11 (a) The terms of the Hillside Terrace Partnership's anticipated
permanent first mortgage loan in the amount of $1,600,000 are expected
to include a term of 30 years, an interest rate of 8.25% and payments of
principal and interest on the basis of a 30-year amortization schedule.
(b) The terms of the Hillside Terrace Partnership's anticipated permanent
second mortgage loan in the amount of $214,000 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.
12 The terms of the Riverwalk Partnership's anticipated permanent first
mortgage loan in the amount of $460,000 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.
13 (a) The terms of the Washington Courtyards Partnership's anticipated
permanent first mortgage loan in the amount of $2,900,000 are expected
to include a term of 30 years, an interest rate of 7.35% and payments of
principal and interest on the basis of a 30-year amortization schedule.
(b) The terms of the Washington Courtyards Partnership's anticipated
permanent second loan in the amount of $88,000 are expected to include a
term of 15 years, an interest rate of 5.7% and payments of principal and
interest on the basis of a 15-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 15-year
term.
6
<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. Ashton Cove $2,664,000 100/20/50 $100 $300,000 in the
Partnership aggregate for
3 years
2. Autumn $1,637,797 100/10/20 $100 $250,000 in the
Park aggregate for
Partnership 3 years
3. Brazoswood $3,074,829 100/20/20 $100 Unlimited in
Partnership amount for
3 years
4. Columbia $4,676,332 100/15/35 $100 Unlimited in
Woods amount for
Partnership 3 years
5. Country $1,958,266 100/20/20 $100 Unlimited in
Walk amount for
Partnership 3 years
6. Cypress $2,729,617 100/10/20 $100 Unlimited in time
Point and amount
Partnership
7. Garden $1,010,439 100/20/99 $100 $350,000 in the
Gates aggregate for
Partnership 4 years
8. Hillside $4,008,673 90/9/27 $100 Unlimited in time
Terrace and amount
Partnership
9. Riverwalk $1,354,094 99.99/20/20 $100 Unlimited in time
Partnership and amount
10. Washington $ 606,140 30/3/6 $100 Unlimited in
Courtyards duration for
Partnership $485,000 in the
aggregate
<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 Associates
- ----------------- --------------- ---------------- ----------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
1. Ashton Cove $4,437,000 $360,000 $573,000 $6,000 $6,000
Partnership
2. Autumn $6,230,000 $217,406 $221,324 $15,000 $5,000
Park
Partnership
3. Brazoswood $5,235,000 $415,517 $682,800 $7,600 $7,600
Partnership
4. Columbia $7,829,000 $631,937 $1,090,000 $12,000 $12,000
Woods
Partnership
5. Country $3,181,000 $264,631 $339,000 $6,000 $6,000
Walk
Partnership
6. Cypress $4,401,000 $368,867 $460,000 $10,400 $10,400
Point
Partnership
7. Garden $1,676,000 $136,546 $219,000 $3,000 $3,000
Gates
Partnership
8. Hillside $7,394,000 $541,713 $745,000 $5,000 $5,000
Terrace
Partnership
9. Riverwalk $2,206,000 $183,000 $221,000 $2,000 $2,000
Partnership
10. Washington $3,431,000 $79,755 $544,000 $3,000 $3,000
Courtyards
Partnership
</TABLE>
7
<PAGE>
THE ASHTON COVE PARTNERSHIP
(Ashton Cove Apartments)
Ashton Cove Apartments is a 72-unit apartment complex for families which is
being constructed on North Gross Road between Middle School Road and East King
Avenue in Kingsland, Georgia. Ashton Cove Apartments will consist of 18
one-bedroom units, 38 two-bedroom units and 16 three-bedroom units contained in
10 buildings. The complex will offer a function building, pool, 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 Ashton Cove Apartments began in March, 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>
18 November, 1999 12 January, 2000
18 December, 1999 12 February, 2000
18 January, 2000 12 March, 2000
18 February, 2000 12 April, 2000
12 May, 2000
12 June, 2000
</TABLE>
THE AUTUMN PARK PARTNERSHIP
(Autumn Park Apartments)
Autumn Park Apartments is a 104-unit apartment complex for families which is
being constructed on Cowan Road and Beasley Drive in Dickson, Tennessee. Autumn
Park Apartments will consist of 16 one-bedroom units, 56 two-bedroom units and
32 three-bedroom units contained in 13 buildings. The complex will offer a
pool, function room and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher, disposal, air
conditioning and a patio or porch.
Construction of Autumn Park Apartments began in April, 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>
13 May, 2000 10 April, 2000
13 June, 2000 10 May, 2000
13 July, 2000 10 June, 2000
13 August, 2000 10 July, 2000
13 September, 2000 10 August, 2000
13 October, 2000 10 September, 2000
13 November, 2000 10 October, 2000
13 December, 2000 10 November, 2000
10 December, 2000
14 January, 2001
</TABLE>
8
<PAGE>
THE BRAZOSWOOD PARTNERSHIP
(Brazoswood Apartments)
Brazoswood Apartments is a 72-unit apartment complex for families which is to
be constructed on the east side of the 500 block of Brazoswood Drive in Clute,
Texas. Brazoswood Apartments will consist of 12 one-bedroom units, 36
two-bedroom units and 24 three-bedroom units contained in 19 buildings. The
complex will offer a function room, pool, playground and central laundry
facilities.
Individual units will contain a refrigerator, range with hood and fan,
dishwasher, disposal, air conditioning and ceiling fans.
Construction of Brazoswood Apartments is anticipated to begin in June, 1999.
The operating general partner anticipates that construction completion and
occupancy will occur as follows:
<TABLE>
<CAPTION>
Number of Units Completion Number of Units Rent-Up
- ----------------- ------------- ----------------- ----------------
<S> <C> <C> <C>
18 March, 2000 18 April, 2000
18 April, 2000 9 May, 2000
18 May, 2000 9 June, 2000
18 June, 2000 9 July, 2000
9 August, 2000
9 September, 2000
9 October, 2000
</TABLE>
THE COLUMBIA WOODS PARTNERSHIP
(Columbia Woods Townhomes)
Columbia Woods Townhomes is a 120-unit apartment complex for families which is
to be 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 is anticipated to begin 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 COUNTRY WALK PARTNERSHIP
(Country Walk Apartments)
Country Walk Apartments is a 68-unit apartment complex for families which is
being constructed on North Rock Road in Mulvane, Kansas. Country Walk
Apartments will consist of 24 one-bedroom units, 28 two-bedroom units and 16
three-bedroom units contained in 8 buildings. The complex will offer a
playground and central laundry facilities.
Individual units will contain a refrigerator, range with exhaust fan,
dishwasher, disposal, air conditioning and a patio or porch.
Construction of Country Walk Apartments began in February, 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>
17 August, 1999 17 September, 1999
17 September, 1999 17 October, 1999
17 October, 1999 17 November, 1999
17 November, 1999 17 December, 1999
</TABLE>
THE CYPRESS POINT PARTNERSHIP
(Cypress Point Apartments)
Cypress Point Apartments is a 104-unit apartment complex for senior citizens
which is to be constructed in Casa Grande, Arizona. Cypress Point Apartments
will consist of 52 one-bedroom units and 52 two-bedroom units contained in 12
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 Cypress Point Apartments is anticipated to begin in June, 1999.
The operating general partner anticipates that construction completion and
occupancy will occur as follows:
<TABLE>
<CAPTION>
Number of Units Completion Number of Units Rent-Up
- ----------------- -------------- ----------------- ----------------
<S> <C> <C> <C>
25 May, 2000 15 June, 2000
25 June, 2000 15 July, 2000
25 July, 2000 15 August, 2000
29 August, 2000 15 September, 2000
15 October, 2000
24 November, 2000
</TABLE>
THE GARDEN GATES PARTNERSHIP
(Garden Gates Apartments)
Garden Gates Apartments is a 32-unit apartment complex for families which is
being constructed on Farm to Market Road 1485 in New Caney, Texas. Garden Gates
Apartments will consist of 10 one-bedroom units, 12 two-bedroom units and 10
three-bedroom units contained in 4 buildings. The complex will offer a function
room, pool, playground and central laundry facilities.
Individual units will contain a refrigerator, range with fan, microwave,
ceiling fans, dishwasher, disposal, air conditioning and a patio or porch.
10
<PAGE>
Construction of Garden Gates Apartments began in March, 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>
8 January, 2000 8 February, 2000
8 February, 2000 8 March, 2000
8 March, 2000 8 April, 2000
8 April, 2000 8 May, 2000
</TABLE>
THE HILLSIDE TERRACE PARTNERSHIP
(Hillside Terrace Apartments)
Hillside Terrace Apartments is a 64-unit apartment complex for families which
is being constructed on Dutchess Turnpike between Pleasant View Road and
Rochdale Road in Poughkeepsie, New York. Hillside Terrace Apartments will
consist of 24 one-bedroom units, 35 two-bedroom units and 5 three-bedroom units
contained in 8 buildings. The complex will offer a function room and central
laundry facilities.
Individual units will contain a refrigerator, range, dishwasher, disposal and a
patio or porch.
Construction of Hillside Terrace Apartments began in March, 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 April, 2000 4 May, 2000
16 May, 2000 6 June, 2000
16 June, 2000 6 July, 2000
16 July, 2000 6 August, 2000
6 September, 2000
6 October, 2000
6 November, 2000
6 December, 2000
6 January, 2001
6 February, 2001
6 March, 2001
</TABLE>
THE RIVERWALK PARTNERSHIP
(Riverwalk Apartments)
Riverwalk Apartments is a 20-unit apartment complex for families which is being
constructed on North Water at North 11 Street in Sheboygan, Wisconsin.
Riverwalk Apartments will consist of 7 one-bedroom units and 13 two-bedroom
units contained in 1 building. The complex will offer central laundry
facilities.
Individual units will contain a refrigerator, range with fan, dishwasher,
disposal and a patio or porch.
Construction of Riverwalk Apartments began in February, 1999. The operating
general partner anticipates that construction completion and occupancy will
occur as follows:
11
<PAGE>
<TABLE>
<CAPTION>
Number of Units Completion Number of Units Rent-Up
- ---------------- ----------------- ----------------- ---------------
<S> <C> <C> <C>
20 September, 1999 3 October, 1999
4 November, 1999
4 December, 1999
4 January, 2000
5 February, 2000
</TABLE>
THE WASHINGTON COURTYARDS PARTNERSHIP
(Washington Courtyards Apartments)
Washington Courtyards Apartments is a 74-unit apartment complex for families
which is to be constructed on Washington Avenue at Brashear in Houston, Texas.
Washington Courtyards Apartments will consist of 12 one-bedroom units, 30
two-bedroom units and 32 three-bedroom units contained in 8 buildings. The
complex will offer a function room, pool, fitness center, playground and
central laundry facilities.
Individual units will contain a refrigerator, range with hood, microwave,
dishwasher, disposal, air conditioning, ceiling fans and a patio or porch.
Construction of Washington Courtyards Apartments is anticipated to begin in
July, 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>
14 September, 2000 10 October, 2000
20 October, 2000 10 November, 2000
20 November, 2000 10 December, 2000
20 December, 2000 10 January, 2001
10 February, 2001
10 March, 2001
14 April, 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 35'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 35, but rather by affiliates of Boston Associates.
12
