Y
FEBRUARY 1, 2001
SUPPLEMENT NO. 2 TO PROSPECTUS FOR
BOSTON CAPITAL TAX CREDIT FUND IV L.P.
DATED
AUGUST 1, 2000
(SUPPLEMENT OFFERING BCTC IV SERIES 40 AND
IDENTIFYING CERTAIN ANTICIPATED INVESTMENTS)
This Supplement is part of, and should be read in conjunction with, Boston
Capital's Prospectus and it supercedes all previous supplements. Capitalized
terms used herein but not defined have the meanings ascribed to them in the
Prospectus.
Series 40'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 40 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 40;
o the price of the certificates is $10 each with a minimum investment of
$5,000;
o this offering will end no later than July 31, 2001; and
o your money will be held in escrow until at least 250,000 certificates are
sold.
Series 40'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. Series 39 and 40 (the "Fund") already
has issued and closed Series 39. The Fund received orders for a total of
2,114,751 Series 39 certificates ($21,147,000), and issued the last of these
certificates on January 31, 2001. The fees paid as of January 31, 2001 to
Boston Capital and affiliates for Series 39 totaled $2,229,822. No additional
Series 39 certificates will be issued. In addition, Boston Capital Tax Credit
Fund IV L.P. has issued other series in other offerings--Series 20 to Series
38. See "Prior Performance of Boston Associates and Its Affiliates" in the
Prospectus for information about Series 20 through 37.
Investment Objectives and Acquisition Policies
Series 40'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.
<PAGE>
To achieve its investment objectives, Series 40 will invest in apartment
complexes with a goal of generating tax credits, upon completion and occupancy
of all the apartment complexes, averaging approximately $.95 to $1.00 per
certificate annually--9.5%-10% annual tax credit as a percentage of capital
invested--for the ten-year credit period. After consulting with the underwriter
regarding tax-free returns currently available to investors in other similar
tax credit investments, Series 40 has selected as an investment objective a
9.5%-10% 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 40.
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 1.8% -4.2%, 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 1.8% -4.2% 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 40's investment goal is for the following annual tax-free amounts for
each $10,000 investment in Series 40: $150--$250 in 2001; $750--$850 in 2002;
$950--$1000 in 2003-2010; $850--$900 in 2011; and $250--$300 in 2012. 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 40 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 40's investment objectives will depend on many
factors, including the ability of Boston Associates to select suitable
investments on a timely basis, the timely
2
<PAGE>
completion and successful management of such investments and future economic
conditions in the United States. Accordingly, there can be no assurance that
Series 40 will meet its investment objectives.
Anticipated Investments
Series 40 expects to invest in the fourteen operating partnerships described
below. Each operating partnership will use a significant part of the funds
invested by Series 40 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 40 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 40 to invest in these apartment complexes or under the
described investment terms in deciding whether to invest in Series 40. If
Series 40 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 40 currently expects to spend.
3
<PAGE>
Management's Discussion and Analysis of Financial Condition and Results of
Operations
Because Series 40 is currently in the offering phase, it has no material assets
or any operating history. Series 40 expects to acquire interests in the
following 14 operating partnerships, which will develop, own and operate
apartment complexes, 8 of which are to be newly constructed and 6 of which are
to be rehabilitated:
<TABLE>
<CAPTION>
Partnership Operating General Partner(s)
----------- -------------------------------------
<S> <C>
1. Arbors at Ironwood II, L.P. Arbors at Ironwood Apartments II, LLC
(the "Arbors at Ironwood II Partnership")
New Construction
2. Carlyle, L.P. St. Joseph Catholic Housing
(the "Carlyle Partnership")
New Construction
3. Center Place Apartments II, L.P. M. Reimer Calhoun
(the "Center Place II Partnership")
Property Rehabilitation
4. Columbia Court, L.P. Noel F. Khalil
(the "Columbia Court Partnership")
New Construction
5. Filmore Parc Apartments II, L.P. Mirabeau Family Learning Center
(the "Filmore Parc Partnership")
Property Rehabilitation
6. Londontown Homes, L.P. Wabuck Development Company
(the "Londontown Partnership")
New Construction
7. Northrock Housing Associates Two, L.P. MRV, Inc.
(the "Northrock Partnership")
New Construction
8. Oakland Apartments, L.P. M. Reimer Calhoun
(the "Oakland Partnership")
Property Rehabilitation
9. Parkview Apartments, L.P. D&B Ventures
(the "Parkview Partnership")
Property Rehabilitation
10. Sedgwick Sundance Apartments, L.P. CEHP XII, LLC
(the "Sedgwick Partnership")
New Construction
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
Partnership Operating General Partner(s)
----------- ----------------------------
<S> <C>
11. Southbrook Home, L.P. Wabuck Development Company
(the "Southbrook Partnership")
New Construction
12. Madison Housing Associates Two, L.P. MRV, Inc.
(the "South Park Partnership")
New Construction
13. Strawberry Lane, L.P. Home Properties
(the "Strawberry Lane Partnership")
Property Rehabilitation
14. Western Gardens Apartments, L.P. M. Reimer Calhoun
(the "Western Gardens Partnership")
Property Rehabilitation
</TABLE>
None of the operating general partners or the management companies are
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 40 is $1.00 per certificate (10%). 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 40 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.
5
<PAGE>
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Operating Basic Government
Partnership Location Number Monthly Assistance
Name of Property of Units Rents (1) Anticipated
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
1. Arbors at Mishawaka, 40 $304 - Federal Housing
Ironwood II Indiana $470 1BR Tax Credits
Partnership $362 -
$547 2BR
$440 -
$706 3BR
2. Carlyle Aberdeen, 43 $337 - Federal Housing
Partnership South Dakota $650 1BR Tax Credits
3. Center Place II Center, 32 $335 - RHS Sec. 515
Partnership Texas $345 2BR
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Operating Permanent Mortgage Annual Annual
Partnership Mortgage Interest Reserve Management Management
Name Loan Rate Amount Agent Fee
------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1. Arbors at Boston Capital 8.20% $7,000 Sterling 4% of net
Ironwood II Finance LLC Management rental income
Partnership $903,000 Ltd.
(3)
2. Carlyle U.S. Bank 8.15% $10,750 Costello 5% of net
Partnership National Property rental income
Associate Management
$240,500(4a)
South Dakota 0%
Development
Authority
HOME Loan
$700,000(4b)
3. Center Place II $791,038 1% (2) $9,600 Calhoun $19 per occupied
Partnership Properties unit per month
</TABLE>
-----------------
(1) Exclusive of utilities, unless indicated otherwise.
(2) 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.
(3) The terms of the Arbors at Ironwood II Partnership's anticipated permanent
first mortgage loan in the amount of $903,000 are expected to include a
term of 30 years, an interest rate of 8.20% and payments of principal and
interest on the basis of a 50-year amortization schedule.
(4) (a) The terms of the Carlyle Partnership's anticipated permanent first
mortgage loan in the amount of $240,500 are expected to include a term of
25 years, an interest rate of 8.15% and payments of principal and
interest on the basis of a 50-year amortization schedule.
(b) The terms of the Carlyle Partnership's anticipated permanent second
mortgage loan in the amount of $700,000 are expected to include a term of
29 years, an interest rate of 0% and payments of principal and interest
on the basis of a 50-year amortization schedule.
6
<PAGE>
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Operating Basic Government
Partnership Location Number Monthly Assistance
Name of Property of Units Rents (1) Anticipated
--------------------------------------------------------------------------
<S> <C> <C> <C> <C>
4. Columbia Court Atlanta, 84 $575- Federal Housing
Partnership Georgia $650 2BR Tax Credits
5. Filmore Parc New Orleans, 56 $430 2BR Federal Housing
Partnership Louisiana Tax Credits
6. Londontown London, 24 $277 3BR Federal Housing
Partnership Kentucky Tax Credits
7. Northrock Topeka, 60 $370- Federal Housing
Partnership Kansas $500 1BR Tax Credits
$452-
$620 2BR
$522-
$715 3BR
8. Oakland Oakdale, 46 $324 1BR RHS Sec. 515
Partnership Louisiana $377 2BR
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Operating Permanent Mortgage Annual Annual
Partnership Mortgage Interest Reserve Management Management
Name Loan Rate Amount Agent Fee
----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
4. Columbia Court Boston Capital 9.25% $16,800 Columbia 6.16% of net
Partnership Finance LLC Residential rental income
$1,275,000 Management,
(5a) LLC
Atlanta Home 7.25%
$490,000 (5b)
5. Filmore Parc GNMA 7.80% $20,000 Baron Builders 6% of net
Partnership $1,358,700 (6) rental income
6. Londontown Kentucky 2% $6,000 Homeland, Inc. 6% of net
Partnership Housing rental income
Corporation
$608,000 (7)
7. Northrock Alliance Bank 9% $12,000 Midland 5% of net
Partnership $2,333,874 (8) Management, rental income
Inc.
8. Oakland $1,261,404 1% (2) $12,763 Calhoun $39 per occupied
Partnership Properties unit per month
</TABLE>
-----------------
(5) (a) The terms of the Columbia Court Partnership's anticipated permanent
first mortgage loan in the amount of $1,225,000 are expected to include
a term of 30 years, an interest rate of 9.25% and payments of principal
and interest on the basis of a 50-year amortization schedule.
(b) The terms of the Columbia Court Partnership's anticipated permanent
second mortgage loan in the amount of $490,000 are expected to include a
term of 40 years, an interest rate of 7.25% and payments of principal and
interest on the basis of a 50-year amortization schedule.
(6) The terms of the Filmore Parc Partnership's anticipated permanent first
mortgage loan in the amount of $1,358,700 are expected to include a term
of 40 years, an interest rate of 7.80% and payments of principal and
interest on the basis of a 50-year amortization schedule.
(7) The terms of the Londontown Partnership's anticipated permanent first
mortgage loan in the amount of $608,000 are expected to include a term of
30 years, an interest rate of 2% and payments of principal and interest on
the basis of a 50-year amortization schedule.
(8) The terms of the Northrock Partnership's anticipated permanent first
mortgage loan in the amount of $2,333,874 are expected to include a term
of 30 years, an interest rate of 9% and payments of principal and interest
on the basis of a 50-year amortization schedule.
7
<PAGE>
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Operating Basic Government
Partnership Location Number Monthly Assistance
Name of Property of Units Rents (1) Anticipated
------------------------------------------------------------------------
<S> <C> <C> <C> <C>
9. Parkview Springfield, 25 $450 1BR Federal Housing
Partnership Massachusetts $580 2BR Tax Credits
$675 3BR
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Operating Permanent Mortgage Annual Annual
Partnership Mortgage Interest Reserve Management Management
Name Loan Rate Amount Agent Fee
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
9. Parkview Boston Capital 8.3% $5,875 National 5% of net
Partnership Finance, LLC Enterprise Inc. rental income
$673,000 (9a)
Department of 0
Housing and
Community
Development
$300,000 (9b)
City of 0%
Springfield
HOME Funds
$200,000 (9c)
Lead Hazard 0%
Education and
Abatement
Program
(LHEAP)
$175,000 (9d)
</TABLE>
-----------------
(9) (a) The terms of the Parkview Partnership's anticipated permanent first
mortgage loan in the amount of $673,000 are expected to include a term of
30 years, an interest rate of 8.30% and payments of principal and
interest on the basis of a 50-year amortization schedule.
(b) The terms of the Parkview Partnership's anticipated permanent second
mortgage loan in the amount of $300,000 are expected to include a term of
50 years, an interest rate of 0% and payments of principal and interest
on the basis of a 50-year amortization schedule.
(c) The terms of the Parkview Partnership's anticipated permanent third
mortgage loan in the amount of $200,000 are expected to include a term of
50 years, an interest rate of 0% and payments of principal and interest
on the basis of a 50-year amortization schedule.
(d) The terms of the Parkview Partnership's anticipated permanent fourth
mortgage loan in the amount of $175,000 are expected to include a term of
30 years, an interest rate of 0% and payments of principal and interest
on the basis of a 50-year amortization schedule.
8
<PAGE>
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Operating Basic Government
Partnership Location Number Monthly Assistance
Name of Property of Units Rents (1) Anticipated
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
10. Sedgwick Sedgwick, 24 $375 2BR Home Investment
Partnership Kansas Partnerships
Program (10c)
11. Southbrook London, 24 $277 3BR Federal Housing
Partnership Kentucky Tax Credits
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Operating Permanent Mortgage Annual Annual
Partnership Mortgage Interest Reserve Management Management
Name Loan Rate Amount Agent Fee
----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
10. Sedgwick GE Capital 8.50% $4,800 Cohen-Esrey 5% of net
Partnership $240,000 (10a) Real Estate rental income
GAP Funding 1% Services Inc.
City of Sedgwick
$125,000 (10b)
Federal Home 1%
Loan Bank
$250,000 (10c)
11. Southbrook Kentucky 2% $6,000 Homeland, Inc. 6% of net
Partnership Housing rental income
Corporation
$608,000 (11)
</TABLE>
-----------------
(10) (a) The terms of the Sedgwick Partnership's anticipated permanent first
mortgage loan in the amount of $240,000 are expected to include a term of
30 years, an interest rate of 8.50% and payments of principal and
interest on the basis of a 50-year amortization schedule.
(b) The terms of the Sedgwick Partnership's anticipated permanent second
mortgage loan in the amount of $125,000 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 50-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.
(c) The terms of the Sedgwick Partnership's anticipated permanent third
mortgage loan in the amount of $250,000 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 50-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 30-year term.
(11) The terms of the Southbrook Partnership's anticipated permanent first
mortgage loan in the amount of $608,000 are expected to include a term of
30 years, an interest rate of 2% and payments of principal and interest on
the basis of a 50-year amortization schedule.
9
<PAGE>
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Operating Basic Government
Partnership Location Number Monthly Assistance
Name of Property of Units Rents (1) Anticipated
---------------------------------------------------------------------
<S> <C> <C> <C> <C>
12. South Park Newton, 60 $ 380 Federal Housing
Partnership Kansas $500 1BR Tax Credits
$ 420
$580 2BR
$520-
$620 3BR
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Operating Permanent Mortgage Annual Annual
Partnership Mortgage Interest Reserve Management Management
Name Loan Rate Amount Agent Fee
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
12. South Park Alliance Bank 8.25% $12,000 Midland 5% of net
Partnership $1,550,000 Management rental income
(12a) Inc.
Citizens for 4%
Affordable
Housing Loan
$50,000 (12b)
</TABLE>
-----------------
(12) (a) The terms of the South Park Partnership's anticipated permanent first
mortgage loan in the amount of $1,550,000 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 50-year amortization schedule.
(b) The terms of the South Park Partnership's anticipated permanent second
mortgage loan in the amount of $50,000 are expected to include a term of
30 years, an interest rate of 4% and payments of principal and interest on
the basis of a 50-year amortization schedule.
10
<PAGE>
<TABLE>
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Operating Basic Government
Partnership Location Number Monthly Assistance
Name of Property of Units Rents (1) Anticipated
----------------------------------------------------------------------------
<S> <C> <C> <C> <C>
13. Strawberry Lane Clayton, 71 $270- Federal Housing
Partnership New York $544 1BR Tax Credits
$299 2BR
14. Western Dequincy, 48 $341 1BR RHS Sec. 515
Gardens Louisiana $385 2BR
Partnership
<CAPTION>
INFORMATION CONCERNING THE APARTMENT COMPLEXES
Operating Permanent Mortgage Annual Annual
Partnership Mortgage Interest Reserve Management Management
Name Loan Rate Amount Agent Fee
-----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
13. Strawberry Lane Clayton Housing 7% $20,920 Conifer 6% of net
Partnership Authority Realty rental income
$469,482(13a) Association
Clayton Housing 1%
Authority
$722,897(13b)
Development 4%
Authority of the
North County
$00,000 (13c)
Clayton Housing 6%
Authority
$683,992 (13d)
14. Western $1,306,309 1% (2) $13,224 Calhoun $39 per
Gardens Properties occupied unit
Partnership per month
</TABLE>
-----------------
(13) (a) The terms of the Strawberry Lane Partnership's anticipated permanent
first mortgage loan in the amount of $469,482 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 50-year amortization schedule.
(b) The terms of the Strawberry Lane Partnership's anticipated permanent
second mortgage loan in the amount of $722,897 are expected to include a
term of 35 years, an interest rate of 1% and payments of principal and
interest on the basis of a 50-year amortization schedule.
(c) The terms of the Strawberry Lane Partnership's anticipated permanent
third mortgage loan in the amount of $400,000 are expected to include a
term of 15 years, an interest rate of 4% and payments of principal and
interest on the basis of a 50-year amortization schedule.
(d) The terms of the Strawberry Lane Partnership's anticipated permanent
fourth mortgage loan in the amount of $683,992 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 50-year amortization schedule.
11
<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. Arbors at $1,773,309 99.99/20/50 $100 $500,000 in
Ironwood II the aggregate
Partnership for 3 years
2. Carlyle $1,359,155 99/10/20 $100 Unlimited
Partnership until
Rental
Achievement
then limited to
aggregate
amount of
$100,000
3. Center Place II $ 431,819 99.99/30/30 $100 Unlimited in
Partnership duration and
amount
4. Columbia $5,003,069 99/35/35 $100 Unlimited
Court until Rental
Partnership Achievement
then capped
at $500,000
5. Filmore Parc $1,147,480 99.99/10/20 $168,000 $250,000 in
Partnership the aggregate
for 3 years
6. Londontown $1,858,365 99.99/20/50 $100 $150,000 in
Partnership the aggregate
for 3 years
7. Northrock $1,707,956 99.99/20/20 $100 Unlimited in
Partnership amount for
3 years
8. Oakland $ 767,451 99.99/30/30 $24,826 Unlimited in
Partnership duration and
amount
9. Parkview $1,221,388 99.99/10/15 $100 $75,000 in the
Partnership aggregate for
3 years
10. Sedgwick $1,392,963 99/10/20 $100 Unlimited for
Partnership 5 years
11. Southbrook $1,870,951 99.99/20/50 $100 $150,000 in
Partnership the aggregate
for 3 years
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS
<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. Arbors at $2,700,599 $224,470 $380,000 $3,000 $3,000
Ironwood II
Partnership
2. Carlyle $2,148,400 $183,670 $240,000 $5,000 $2,150
Partnership
3. Center Place II $ 462,517 $56,080 $95,562 $1,600 $1,600
Partnership
4. Columbia $6,070,966 $1,021,034 $904,000 $23,100 $12,500
Court
Partnership
5. Filmore Parc $1,821,552 $148,541 $215,000 $5,000 $4,200
Partnership
6. Londontown $2,897,700 $241,346 $225,000 $2,500 $2,500
Partnership
7. Northrock $2,600,838 $218,969 $415,878 $5,400 $5,400
Partnership
8. Oakland $1,941,441 $98,391 $94,967 $2,300 $2,300
Partnership
9. Parkview $2,514,002 $160,709 $216,500 $10,000 $2,500
Partnership
10. Sedgwick $2,185,648 $185,728 $364,275 $2,400 $2,400
Partnership
11. Southbrook $2,897,700 $242,981 $225,000 $2,500 $2,500
Partnership
</TABLE>
12
<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>
12. South Park $1,656,874 99/20/20 $100 Unlimited for
Partnership 3 years from
Cash Flow
13. Strawberry $ 672,823 99.99/90/90 $100 $376,000 in
Lane the aggregate
Partnership for 5 years
14. Western $ 786,403 99.99/30/30 $33,452 Unlimited in
Gardens duration
Partnership and amount
TERMS OF INVESTMENT IN OPERATING PARTNERSHIPS
<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>
12. South Park $2,490,516 $212,420 $406,976 $5,400 $5,400
Partnership
13. Strawberry $2,157,108 $ 86,259 $301,257 $5,400 $3,000
Lane
Partnership
14. Western $1,980,400 $100,821 $100,861 $2,400 $2,400
Gardens
Partnership
</TABLE>
13
<PAGE>
THE ARBORS AT IRONWOOD II PARTNERSHIP
(Arbors at Ironwood Apartments, Phase II)
Arbors at Ironwood Apartments, Phase II is a 40-unit apartment complex for
families which is being constructed on Dragoon Trail in Mishawaka, Indiana.
Arbors at Ironwood Apartments, Phase II will consist of 8 one-bedroom units, 16
two-bedroom units and 16 three-bedroom units contained in 3 buildings. The
complex will offer a community room, recreation room and individual storage
units.
Individual units will contain a refrigerator, range, dishwasher, washer/dryer
hookups, air conditioning, cable television hookup and a patio or porch.
Construction of Arbors at Ironwood Apartments, Phase II began in October, 2000.
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, 2001 7 April, 2002
10 December, 2001 7 May, 2002
10 January, 2002 13 June, 2002
10 February, 2002 13 July, 2002
</TABLE>
THE CARLYLE PARTNERSHIP
(Carlyle Apartments)
Carlyle Apartments is a 43-unit apartment complex for senior citizens which is
being constructed on 3rd Avenue SE in Aberdeen, South Dakota. Carlyle
Apartments will consist of 43 one-bedroom units contained in 1 building. The
complex will offer a community room, recreation room and central laundry
facilities.
Individual units will contain a refrigerator, range, dishwasher and air
conditioning.
Construction of Carlyle Apartments began in November, 2000. 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 February, 2001 3 June, 2001
6 March, 2001 3 July, 2001
15 April, 2001 3 August, 2001
4 May, 2001 3 September, 2001
3 October, 2001
3 November, 2001
2 December, 2001
1 March, 2002
1 April, 2002
2 May, 2002
3 June, 2002
3 July, 2002
3 August, 2002
3 September, 2002
3 October, 2002
2 November, 2002
2 December, 2002
</TABLE>
14
<PAGE>
THE CENTER PLACE II PARTNERSHIP
(Center Place Apartments II)
Center Place Apartments II is an existing 32-unit apartment complex for
families which is to be rehabilitated on Burnet Road in Center, Texas. Center
Place Apartments II will consist of 32 two-bedroom units contained in 4
buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning and
wall-to-wall carpeting.
Rehabilitation of Center Place Apartments II is anticipated to begin in April,
2001. 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>
8 May, 2001 8 August, 2001
8 June, 2001 6 September, 2001
8 July, 2001 6 October, 2001
8 August, 2001 6 November, 2001
6 December, 2001
</TABLE>
THE COLUMBIA COURT PARTNERSHIP
(Columbia Citihomes Apartments)
Columbia Citihomes Apartments is an 84-unit apartment complex for families
which is to be constructed on Marion Place in Atlanta, Georgia. Columbia
Citihomes Apartments will consist of 84 two-bedroom units contained in 11
buildings. The complex will offer a recreation room.
Individual units will contain a refrigerator, range, washer/dryer hookups,
dishwasher, disposal, air conditioning and a patio or porch.
Construction of Columbia Citihomes Apartments is anticipated to begin in May,
2001. 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>
12 December, 2001 12 January, 2002
12 January, 2002 12 February, 2002
12 February, 2002 12 March, 2002
12 March, 2002 12 April, 2002
12 April, 2002 12 May, 2002
24 May, 2002 12 June, 2002
12 July, 2002
</TABLE>
15
<PAGE>
THE FILMORE PARC PARTNERSHIP
(Filmore Parc Apartments II)
Filmore Parc Apartments II is an existing 56-unit apartment complex for
families which is being rehabilitated in New Orleans, Louisiana. Filmore Parc
Apartments II will consist of 56 two-bedroom units contained in 10 buildings.
The complex will offer a community room and recreation room.
Individual units will contain a refrigerator, range, washer/dryer hookups,
trash compactor, air conditioning, wall-to-wall carpeting and cable television
hook-up.
Rehabilitation of Filmore Parc Apartments II began in August, 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 December, 2000 10 August, 2001
10 January, 2001 10 September, 2001
10 February, 2001 10 October, 2001
16 March, 2001 10 November, 2001
16 December, 2001
</TABLE>
THE LONDONTOWN PARTNERSHIP
(Londontown Homes)
Londontown Homes is a development of 24 single-family homes which is being
constructed on Fariston Church Road in London, Kentucky. The development will
offer a community room and central laundry facilities.
Individual homes will contain a refrigerator, range, wall-to-wall carpeting and
cable television hook-up.
Construction of Londontown Homes began in November, 2000. The Operating General
Partner anticipates that construction completion and occupancy will occur as
follows:
<TABLE>
<CAPTION>
Number of Unit Completion Number of Units Rent-Up
----------------------------------------------------------------------
<S> <C> <C> <C>
8 February, 2001 8 May, 2001
8 March, 2001 8 June, 2001
8 April, 2001 8 July, 2001
</TABLE>
16
<PAGE>
THE NORTHROCK PARTNERSHIP
(Northrock Apartments Phase II)
Northrock Apartments Phase II is a 60-unit apartment complex for families which
is to be constructed at 4800 NW Fielding Road in Topeka, Kansas. Northrock
Apartments Phase II will consist of 16 one-bedroom units, 28 two-bedroom units
and 16 three-bedroom units contained in 8 buildings. The complex will offer a
community room and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher and air
conditioning.
Construction of Northrock Apartments Phase II is anticipated to begin in May,
2001. 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, 2002 10 April, 2002
10 March, 2002 10 May, 2002
10 April, 2002 10 June, 2002
10 May, 2002 10 July, 2002
10 June, 2002 10 August, 2002
10 July, 2002 10 September, 2002
</TABLE>
THE OAKLAND PARTNERSHIP
(Oakland Apartments)
Oakland Apartments is an existing 46-unit apartment complex for families which
is to be rehabilitated at 605 Hospital Road in Oakdale, Louisiana. Oakland
Apartments will consist of 14 one-bedroom units and 32 two-bedroom units
contained in 6 buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning and
wall-to-wall carpeting.
Rehabilitation of Oakland Apartments is anticipated to begin in August, 2001.
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>
10 October, 2001 8 January, 2002
10 November, 2001 8 February, 2002
10 December, 2001 8 March, 2002
16 January, 2002 8 April, 2002
8 May, 2002
6 June, 2002
</TABLE>
17
<PAGE>
THE PARKVIEW PARTNERSHIP
(Parkview Apartments)
Parkview Apartments is an existing 25-unit apartment complex for families which
is being rehabilitated on Federal Street in Springfield, Massachusetts.
Parkview Apartments will consist of 2 one-bedroom units, 12 two-bedroom units
and 11 three-bedroom units contained in 1 building. The complex will offer
central laundry facilities.
Individual units will contain a refrigerator, range, wall-to-wall carpeting and
cable television hook-up.
Rehabilitation of Parkview Apartments began in November, 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>
9 June, 2001 9 November, 2001
8 July, 2001 8 December, 2001
8 August, 2001 8 January, 2002
</TABLE>
THE SEDGWICK PARTNERSHIP
(Sedgwick Sundance Apartments)
Sedgwick Sundance Apartments is a 24-unit apartment complex for senior citizens
which is being constructed on Ridge Road and Frances Court in Sedgwick, Kansas.
Sedgwick Sundance Apartments will consist of 24 two-bedroom units contained in
6 buildings. The complex will offer central laundry facilities.
Individual units will contain a refrigerator, range, air conditioning and cable
television hook-up.
Construction of Sedgwick Sundance Apartments began in November, 2000. 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>
6 February, 2001 4 July, 2001
4 March, 2001 2 August, 2001
2 April, 2001 2 September, 2001
2 May, 2001 2 October, 2001
4 June, 2001 2 November, 2001
6 July, 2001 2 December, 2001
2 January, 2002
2 February, 2002
1 March, 2002
1 April, 2002
1 May, 2002
1 June, 2002
2 July, 2002
</TABLE>
18
<PAGE>
THE SOUTHBROOK PARTNERSHIP
(Southbrook Homes)
Southbrook Homes is a development of 24 single-family homes which is being
constructed on Hemlock Lane in London, Kentucky. The development will offer a
community room and central laundry facilities.
Individual homes will contain a refrigerator, range, wall-to-wall carpeting and
cable television hook-up.
Construction of Southbrook Homes began in November, 2000. 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>
8 February, 2001 8 May, 2001
8 March, 2001 8 June, 2001
8 April, 2001 8 July, 2001
</TABLE>
THE SOUTH PARK PARTNERSHIP
(South Park Apartments II)
South Park Apartments II is a 60-unit apartment complex for families which is
being constructed at 1501 Old Main Street in Newton, Kansas. South Park
Apartments II will consist of 16 one-bedroom units, 32 two-bedroom units and 12
three-bedroom units contained in 7 buildings. The complex will offer a
community room and central laundry facilities.
Individual units will contain a refrigerator, range, dishwasher and air
conditioning.
Construction of South Park Apartments II began in November, 2000. 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>
8 June, 2001 8 July, 2001
8 July, 2001 8 August, 2001
8 August, 2001 8 September, 2001
16 September, 2001 16 October, 2001
14 October, 2001 14 November, 2001
6 November, 2001 6 December, 2001
</TABLE>
19
<PAGE>
THE STRAWBERRY LANE PARTNERSHIP
(Clayton Phase 1 and 2 Apartments)
Clayton Phase 1 and 2 Apartments is an existing 71-unit apartment complex for
senior citizens which is to be rehabilitated on Strawberry Lane in Clayton, New
York. Clayton Phase 1 and 2 Apartments will consist of 67 one-bedroom units and
4 two-bedroom units contained in 1 building. The complex will offer central
laundry facilities.
Individual units will contain a refrigerator, range and an emergency call
system.
Rehabilitation of Clayton Phase 1 and 2 Apartments is anticipated to begin in
January, 2001. 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>
5 February, 2001 5 March, 2001
5 March, 2001 5 April, 2001
7 April, 2001 7 May, 2001
9 May, 2001 9 June, 2001
9 June, 2001 9 July, 2001
9 July, 2001 9 August, 2001
9 August, 2001 9 September, 2001
10 September, 2001 10 October, 2001
8 October, 2001 8 November, 2001
</TABLE>
THE WESTERN GARDENS PARTNERSHIP
(Western Gardens Apartments)
Western Gardens Apartments is an existing 48-unit apartment complex for
families which is to be rehabilitated at 1601 West 4th Street in Dequincy,
Louisiana. Western Gardens Apartments will consist of 24 one-bedroom units and
24 two-bedroom units contained in 6 buildings. The complex will offer central
laundry facilities.
Individual units will contain a refrigerator, range, air conditioning and
wall-to-wall carpeting.
Rehabilitation of Western Gardens Apartments is anticipated to begin in August,
2001. 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>
10 October, 2001 8 January, 2002
10 November, 2001 8 February, 2002
10 December, 2001 8 March, 2002
18 January, 2002 8 April, 2002
8 May, 2002
8 June, 2002
</TABLE>
20
