UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR
- - ------ 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1997
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR
- - ------ 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-24650
INDEPENDENCE TAX CREDIT PLUS L.P. III
(Exact name of registrant as specified in its charter)
Delaware 13-3746339
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
625 Madison Avenue, New York, New York 10022
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212)421-5333
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes _X_ No ____
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
INDEPENDENCE TAX CREDIT PLUS L.P. III
AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
============ ============
June 30, March 31,
1997 1997
------------ ------------
ASSETS
Property and equipment at cost,
net of accumulated depreciation
of $2,305,816 and $1,937,998,
respectively $ 48,167,861 $ 47,064,479
Construction in progress 9,802,462 6,147,275
Cash and cash equivalents 5,054,920 7,573,213
Investments available for sale 6,000,000 6,500,000
Cash held in escrow 8,188,245 6,973,508
Deferred costs, net of accumulated
amortization of $164,177 and
$148,841, respectively 1,442,937 1,656,870
Other assets 598,748 576,688
Due from local general partners
and affiliates 317,056 317,056
------------ ------------
Total assets $ 79,572,229 $ 76,809,089
============ ============
LIABILITIES AND PARTNERS' CAPITAL
Liabilities:
Mortgage notes payable $ 25,806,982 $ 23,706,680
Construction loan payable 6,989,930 8,165,460
Accounts payable and other
liabilities 2,583,373 2,463,550
Due to local general partners and
affiliates 5,483,571 3,480,031
Due to general partner and
affiliates 252,348 235,030
------------ ------------
Total liabilities 41,116,204 38,050,751
------------ ------------
Minority interest 1,810,740 1,721,534
------------ ------------
Commitments and contingencies (Note 3)
Partners' capital:
Limited partners (43,440 BACs
issued and outstanding) 36,664,959 37,052,563
General partner (19,674) (15,759)
------------ ------------
Total partners' capital 36,645,285 37,036,804
------------ ------------
Total liabilities and partners'
capital $ 79,572,229 $ 76,809,089
============ ============
See Accompanying Notes to Consolidated Financial Statements
2
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. III
AND SUBSIDIARIES
Consolidated Statements of Operations
(Unaudited)
=============================
Three Months Ended
June 30,
-----------------------------
1997 1996
-----------------------------
Revenues
Rental income $ 781,870 $ 587,250
Other income 128,699 181,963
----------- -----------
Total revenues 910,569 769,213
----------- -----------
Expenses
General and administrative 282,684 259,637
General and administrative-
related parties (Note 2) 103,697 127,827
Repairs and maintenance 77,628 55,177
Operating 128,619 150,663
Taxes 38,129 16,507
Insurance 73,393 49,212
Financial, principally interest 215,097 148,287
Depreciation and amortization 383,154 250,776
----------- -----------
Total expenses 1,302,401 1,058,086
----------- -----------
Net loss before minority interest $ (391,832) $ (288,873)
Minority interest in loss of
subsidiary partnerships 313 27
----------- -----------
Net loss $ (391,519) $ (288,846)
=========== ===========
Net loss - limited partners $ (387,604) $ (285,958)
=========== ===========
Number of BACs outstanding 43,440 43,440
=========== ===========
Net loss per BAC $ (8.92) $ (6.58)
=========== ===========
See Accompanying Notes to Consolidated Financial Statements
3
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. III
AND SUBSIDIARIES
Consolidated Statement of Changes in Partners' Capital
(Unaudited)
================================================
Limited General
Total Partners Partner
------------------------------------------------
Partners' capital -
April 1, 1997 $ 37,036,804 $ 37,052,563 $ (15,759)
Net loss (391,519) (387,604) (3,915)
------------ ------------ ------------
Partners' capital -
June 30, 1997 $ 36,645,285 $ 36,664,959 $ (19,674)
============ ============ ============
See Accompanying Notes to Consolidated Financial Statements
4
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. III
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Increase (Decrease) in Cash and Cash Equivalents
(Unaudited)
============================
Three Months Ended
June 30,
----------------------------
1997 1996
----------------------------
Cash flows from operating activities:
Net loss $ (391,519) $ (288,846)
Adjustments to reconcile net loss to
net cash used in operating activities:
Depreciation and amortization 383,154 250,776
Minority interest in loss of
subsidiaries (313) (27)
Increase (decrease) in accounts
payable and other liabilities 75,205 (354,952)
Increase in cash held in escrow (525,542) (26,284)
(Increase) decrease in other assets (22,060) 188,884
Increase in due to local general
partners and affiliates 5,926 44,453
Decrease in due to local general
partners and affiliates (34,672) (35,335)
Increase in due to general partner
and affiliates 17,318 61,770
----------- -----------
Total adjustments (100,984) 129,285
----------- -----------
Net cash used in
operating activities (492,503) (159,561)
----------- -----------
Cash flows from investing activities:
Increase in property and
equipment (2,859,421) (107,909)
Decrease in investments
available for sale 500,000 1,902,412
Increase in construction in progress (2,077,831) (1,529,895)
(Increase) decrease in cash held
in escrow (689,195) 1,141,372
Decrease (increase) in deferred costs 13,818 (14,046)
Increase (decrease) in accounts
payable and other liabilities 44,618 (544,022)
Increase in due to local general
partners and affiliates 2,257,696 19,532
Decrease in due to local general
partners and affiliates (225,410) (682,579)
----------- -----------
Net cash (used in) provided by
investing activities (3,035,725) 184,865
----------- -----------
See Accompanying Notes to Consolidated Financial Statements
5
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. III
AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Increase (Decrease) in Cash and Cash Equivalents
(continued)
(Unaudited)
============================
Three Months Ended
June 30,
----------------------------
1997 1996
----------------------------
Cash flows from financing activities:
Proceeds from mortgage notes 676,744 644,820
Repayments of mortgage notes (26,442) (167,172)
Proceeds from construction loans 274,470 717,163
Repayments of construction loans 0 (407,444)
Increase in deferred costs (4,356) (129,726)
Increase (decrease) in capitalization
of consolidated subsidiaries
attributable to minority interest 89,519 (16,787)
----------- -----------
Net cash provided by financing
activities 1,009,935 640,854
----------- -----------
Net increase (decrease) in cash and
cash equivalents (2,518,293) 666,158
Cash and cash equivalents at
beginning of period 7,573,213 9,333,536
----------- -----------
Cash and cash equivalents at
end of period $ 5,054,920 $ 9,999,694
=========== ===========
Supplemental disclosures of noncash
investing and financing activities:
Capitalization of deferred
acquisition costs 189,135 0
Conversion of construction notes
payable to mortgage notes
payable 1,450,000 0
Property and equipment reclassified
from construction in progress 0 309,338
Consolidation of investment in
subsidiary partnership:*
Decrease in property and
equipment 1,577,356 0
Increase in construction in
progress (1,577,356) 0
*Prior to consolidation, investments in subsidiary partnerships are included in
property and equipment.
See Accompanying Notes to Consolidated Financial Statements
6
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. III
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
June 30, 1997
(Unaudited)
Note 1 - General
Independence Tax Credit Plus L.P. III (a Delaware limited partnership) (the
"Partnership") was organized on December 23, 1993, and commenced the public
offering on June 7, 1994. The general partner of the Partnership is Related
Independence Associates III L.P., a Delaware limited partnership (the "General
Partner").
The Partnership's business is to invest in other partnerships ("Local
Partnerships", "subsidiaries" or "subsidiary partnerships") owning apartment
complexes that are eligible for the low-income housing tax credit ("Housing Tax
Credit") enacted in the Tax Reform Act of 1986, some of which complexes may also
be eligible for the historic rehabilitation tax credit ("Historic Tax Credit";
together with Housing Tax Credits, "Tax Credits").
As of June 30, 1997, the Partnership has acquired limited partnership interests
in eighteen subsidiary partnerships, one of which has not been consolidated and
is shown on the balance sheet, at cost, as property and equipment. The
Partnership anticipates acquiring limited partnership interests in additional
subsidiary partnerships in the future. Through the rights of the Partnership
and/or an affiliate of the General Partner, which affiliate has a contractual
obligation to act on behalf of the Partnership, to remove the general partner of
the subsidiary local partnerships and to approve certain major operating and
financial decisions, the Partnership has a controlling financial interest in the
subsidiary partnerships.
The Partnership's fiscal quarter ends June 30. All subsidiaries have fiscal
quarters ending March 31. Accounts of the subsidiaries have been adjusted for
intercompany transactions from April 1 through June 30.
All intercompany accounts and transactions with the subsidiary partnerships have
been eliminated in consolidation.
Increases (decreases) in the capitalization of consolidated subsidiaries
attributable to minority interest arise from cash contributions from and cash
distributions to the minority interest partners.
Losses attributable to minority interests which exceed the minority interests'
investment in a subsidiary have been charged to the Partnership. Such losses
aggregated approximately $3,200 and $2,400 for the three months ended June 30,
1997 and 1996, respectively. The Partnership's investment in each subsidiary is
equal to the respective subsidiary's partners' equity less minority interest
7
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. III
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
June 30, 1997
(Unaudited)
Note 1 - General (continued)
capital, if any. In consolidation, all subsidiary partnership losses are
included in the Partnership's capital account except for losses allocated to
minority interest capital.
Certain information and note disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted or condensed. These condensed financial statements should be
read in conjunction with the financial statements and notes thereto included in
the Partnership's Annual Report on Form 10-K for the period ended March 31,
1997.
The books and records of the Partnership are maintained on the accrual basis of
accounting in accordance with generally accepted accounting principles. In the
opinion of the General Partner of the Partnership, the accompanying unaudited
financial statements contain all adjustments (consisting only of normal
recurring adjustments) necessary to present fairly the financial position of the
Partnership as of June 30, 1997 and the results of operations and cash flows for
the three months ended June 30, 1997 and 1996. However, the operating results
for the three months ended June 30, 1997 may not be indicative of the results
for the year.
Note 2 - Related Party Transactions
An affiliate of the General Partner has a .01% interest as a special limited
partner, in each of the Local Partnerships.
The costs incurred to related parties for the three months ended June 30, 1997
and 1996 were as follows:
A) Acquisition Fees and Expenses
The General Partner was entitled to a consulting and monitoring fee equal to
6.0% of the gross proceeds of the offering paid upon investor closings, for its
services in connection with assisting the Local Partnerships in acquiring
apartment complexes and supervising the construction of the complexes. Such fees
will be capitalized as a cost of the investments upon closing of subsidiary
partnership acquisitions. As of both June 30, 1997 and March 31, 1997,
$2,606,400 of such costs have been incurred, of which $2,151,227 and $1,962,092,
respectively, have been capitalized.
8
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. III
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
June 30, 1997
(Unaudited)
Note 2 - Related Party Transactions (continued)
B) Other Related Party Expenses
The costs incurred to related parties for the three months ended June 30, 1997
and 1996 were as follows:
Three Months Ended
June 30,
-------------------------
1997 1996
-------------------------
Partnership management fees (a) $ 12,500 $ 61,451
Expense reimbursement (b) 45,452 36,230
Property management fees (c) 39,745 26,146
Local administrative fees (d) 6,000 4,000
-------- --------
$103,697 $127,827
======== ========
(a) The General Partner is entitled to receive a partnership management fee,
after payment of all Partnership expenses, which together with the annual local
administrative fees will not exceed a maximum of 0.5% per annum of invested
assets (as defined in the Partnership Agreement), for administering the affairs
of the Partnership. Subject to the foregoing limitation, the partnership
management fee will be determined by the General Partner in its sole discretion
based upon its review of the Partnership's investments. Unpaid partnership
management fees for any year will be accrued without interest and will be
payable from working capital reserves or to the extent of available funds after
the Partnership has made distributions to the limited partners of sale or
refinancing proceeds equal to their original capital contributions plus a 10%
priority return thereon (to the extent not theretofore paid out of cash flow).
Partnership management fees owed to the General Partner amounting to
approximately $257,000 and $245,000 were accrued and unpaid as of June 30, 1997
and March 31, 1997, respectively.
(b) The Partnership reimburses the General Partner and its affiliates for actual
Partnership operating expenses incurred by the General Partner and its
affiliates on the Partnership's behalf. The amount of reimbursement from the
Partnership is limited by the provisions of the Partnership Agreement. Another
affiliate of the General Partner performs asset monitoring for the Partnership.
These services include site visits and evaluations of the subsidiary
partnerships' performance.
(c) Property management fees incurred by Local Partnerships amounted to $52,946
and $34,636 for the three months ended June 30, 1997 and 1996, respectively. Of
these fees $39,745 and $26,146
9
<PAGE>
INDEPENDENCE TAX CREDIT PLUS L.P. III
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
June 30, 1997
(Unaudited)
Note 2 - Related Party Transactions (continued)
B) Other Related Party Expenses (continued)audited)
were incurred to affiliates of the subsidiary partnerships' general partners.
(d) Independence SLP III L.P., a special limited partner of the subsidiary
partnerships, is entitled to receive a local administrative fee of up to $5,000
per year from each subsidiary partnership.
Note 3 - Commitments and Contingencies
There were no changes and/or additions to disclosures regarding the subsidiary
partnerships which were included in the Partnership's Annual Report on Form 10-K
for the period ended March 31, 1997.
10
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Liquidity and Capital Resources
The Partnership's primary source of funds include (i) interest earned on Gross
Proceeds which are invested in tax-exempt money market instruments pending
acquisition of and final payments to Local Partnerships and (ii) working capital
reserves in the original amount of 2.5% of gross proceeds raised and interest
earned thereon. All these sources of funds are available to meet obligations of
the Partnership. The offering terminated as of May 9, 1995. The Partnership has
received $43,440,000 in gross proceeds for BACs pursuant to a public offering
resulting in net proceeds available for investment of approximately $34,535,000
after payment of sales commissions, acquisition fees and expenses, organization
and offering expenses and establishment of a working capital reserve.
As of June 30, 1997, the Partnership has invested approximately $29,725,000
(including approximately $2,950,000 classified as a loan repayable from
sale/refinancing proceeds in accordance with the Contribution Agreement and not
including acquisition fees of approximately $2,151,000) of net proceeds in
eighteen Local Partnerships of which approximately $5,410,000 remains to be paid
to the Local Partnerships (including approximately $1,675,000 being held in
escrow) as certain benchmarks, such as occupancy level, must be attained prior
to the release of the funds. One Local Partnership was acquired during the three
months ended June 30, 1997 for a purchase price of approximately $2,506,000 (not
including acquisition fees of approximately $189,000) of which approximately
$106,000 remains to be paid. In addition, there was an upward purchase price
adjustment during the three months ended June 30, 1997 in the amount of $395,000
relating to a Local Partnership which was purchased in a previous fiscal year.
The Partnership has approximately $4,810,000 available for future investments.
During the three months ended June 30, 1997, approximately $3,338,000 was paid
to Local Partnerships (of which approximately $328,000 was released from
escrow). An additional $358,000 was placed into escrow for purchase price
payments during the three months ended June 30, 1997. The Partnership will be
acquiring interests in additional properties, and the Partnership may be
required to fund potential purchase price adjustments based on tax credit
adjustor clauses. There have been no purchase price adjustments during the three
months ended June 30, 1997 based on tax credit adjustor clauses.
11
<PAGE>
For the three months ended June 30, 1997, cash and cash equivalents of the
Partnership and its seventeen consolidated Local Partnerships decreased
approximately $2,518,000 primarily due to cash used in operating activities
($493,000), an increase in construction in progress ($2,078,000), an increase in
property and equipment ($2,859,000) and an increase in cash held in escrow
relating to investing activities ($689,000) which exceeded net proceeds from
mortgage and construction loans ($925,000), a decrease in investments available
for sale ($500,000), a net increase in due to local general partners and
affiliates relating to investing activities ($2,032,000) and an increase in
capitalization of consolidated subsidiaries attributable to minority interest
($90,000). Included in the adjustments to reconcile the net loss to cash used in
operating activities is depreciation and amortization in the amount of
approximately $383,000.
A working capital reserve in the amount of approximately $1,086,000 (2.5% of
gross equity) was established from the Partnership's funds available for
investment. The working capital reserve at June 30, 1997 and March 31, 1997 was
approximately $856,000 and $872,000, respectively, which includes amounts which
may be required for potential purchase price adjustments based on tax credit
adjustor clauses. The General Partner believes that these reserves, plus any
cash distributions received from the operations of the Local Partnerships will
be sufficient to fund the Partnership's ongoing operations for the foreseeable
future. During the three months ended June 30, 1997 and 1996, the Partnership
received cash flow distributions from operations of the Local Partnerships
amounting to approximately $13,000 and $0, respectively. Management anticipates
continuing to receive distributions in the future, although not to a level
sufficient to permit providing cash distributions to the BACs holders.
Partnership management fees owed to the General Partner amounting to
approximately $257,000 and $245,000 were accrued and unpaid as of June 30, 1997
and March 31, 1997, respectively.
The Partnership has negotiated development deficit guarantees with the Local
Partnerships in which it has invested. The Local General Partners have agreed to
fund development deficits through the breakeven dates of each of the Local
Partnerships.
The Partnership has negotiated Operating Deficit Guaranty Agreements with all
Local Partnerships by which the general partners of the Local Partnerships have
agreed to fund operating deficits for a specified period of time. The terms of
the Operating Deficit Guaranty Agreements vary for each Local Partnership, with
maximum dollar amounts to be funded for a specified period of time,
12
<PAGE>
generally three years, commencing on the break-even date. The gross amount of
the Operating Deficit Guarantees aggregates approximately $3,360,000 as of both
June 30, 1997 and March 31, 1997.
The Partnership has also negotiated rent-up guaranty agreements in which the
Local General Partners agreed to pay a liquidated damage if predetermined
occupancy rates are not achieved.
The development deficit, operating deficit and the rent-up guaranty agreements
were negotiated to protect the Partnership's interest in the Local Partnerships
and to provide incentive to the Local General Partners to generate positive cash
flow.
For a discussion of contingencies affecting certain Local Partnerships, see Note
3 to the financial statements. Since the maximum loss the Partnership would be
liable for is its net investment in the respective subsidiary partnerships, the
resolution of the existing contingencies is not anticipated to impact future
results of operations, liquidity or financial condition in a material way.
However, the Partnership's loss of its investment in a Local Partnership will
eliminate the ability to generate future tax credits from such Local Partnership
and may also result in recapture of tax credits if the investment is lost before
the expiration of the compliance period.
Management is not aware of any trends or events, commitments or uncertainties
which have not otherwise been disclosed that will or are likely to impact
liquidity in a material way. Management believes the only impact would be from
laws that have not yet been adopted. The portfolio is diversified by the
location of the properties around the United States so that if one area of the
country is experiencing downturns in the economy, the remaining properties in
the portfolio may be experiencing upswings. However, the geographic
diversification of the portfolio may not protect against a general downturn in
the national economy. The Partnership has invested the proceeds of its offering
in eighteen Local Partnerships, all of which fully have their tax credits in
place. The tax credits are attached to the project for a period of ten years,
and are transferable with the property during the remainder of such ten year
period. If the General Partner determined that a sale of a property is
warranted, the remaining tax credits would transfer to the new owner, thereby
adding value to the property on the market, which are not included in the
financial statement carrying amount.
13
<PAGE>
Results of Operations
As of June 30, 1997 and 1996, the Partnership had acquired an interest in
eighteen and fifteen Local Partnerships, seventeen and fifteen of which were
consolidated, respectively. The Partnership intends to utilize the net proceeds
of the offering to acquire additional interests in Local Partnerships.
The Partnership's results of operations for the three months ended June 30, 1997
and 1996 consisted primarily of (1) approximately $94,000 and $156,000,
respectively, of tax-exempt interest income earned on funds not currently
invested in Local Partnerships and (2) the results of the Partnership's
investment in fourteen of seventeen and eleven of fifteen consolidated Local
Partnerships, respectively.
For the three months ended June 30, 1997 as compared to 1996, rental income and
all categories of expenses except general and administrative-related parties and
operating expenses increased and the results of operations are not comparable
due to the continued acquisition, construction and rent up of properties, and
are not reflective of future operations of the Partnership due to uncompleted
property construction, rent up of properties and the continued utilization of
the net proceeds of the offering to invest in Local Partnerships. In addition,
interest income will decrease in future periods since a substantial portion of
the proceeds from the Offering will be invested in Local Partnerships. Other
income decreased approximately $53,000 for the three months ended June 30, 1997
as compared to 1996 primarily due to a decrease in interest income as a result
of the acquisition of and the release of proceeds to the Local Partnerships.
General and administrative-related parties decreased approximately $24,000 for
the three months ended June 30, 1997 as compared to 1996, primarily due to a
decrease in partnership management fees payable to the General Partner.
Operating expenses decreased approximately $22,000 for the three months ended
June 30, 1997 as compared to 1996, primarily due to an underaccrual of utilities
at December 31, 1995 at one Local Partnership.
For the three months ended June 30, 1997 and 1996, zero and three of the
Partnership's seventeen and fifteen consolidated properties, respectively,
completed construction, and were in various stages of rent up. In addition, two
and zero of the properties, respectively, had completed construction in a
previous fiscal year, but were in various stages of rent up for the three
months. Also, for the three months ended June 30, 1997 and 1996, twelve and
seven of the properties had completed construction and were rented up in a
previous fiscal year. As of the end of the three
14
<PAGE>
months ended June 30, 1997 and 1996, three and five of the Partnership's
seventeen and fifteen consolidated properties, respectively, were still under
construction and three and five of the properties, respectively, had
construction loans with commitments for permanent financing.
15
<PAGE>
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - The litigation described in Note 3 to
the financial statements contained in Part I, Item 1 is incorporated
herein by reference
Item 2. Changes in Securities - None
Item 3. Defaults Upon Senior Securities - None
Item 4. Submission of Matters to a Vote of Security Holders - None
Item 5. Other Information - None
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
(3A) Agreement of Limited Partnership of Independence Tax Credit
Plus L.P. III as adopted on December 23, 1993*
(3B) Form of Amended and Restated Agreement of Limited
Partnership of Independence Tax Credit Plus L.P. III, attached to the
Prospectus as Exhibit A**
(3C) Certificate of Limited Partnership of Independence Tax
Credit Plus L.P. III as filed on December 23, 1993*
(10A) Form of Subscription Agreement attached to the Prospectus
as Exhibit B**
(10B) Escrow Agreement between Independence Tax Credit Plus L.P.
III and Bankers Trust Company*
(10C) Form of Purchase and Sales Agreement pertaining to the
Partnership's acquisition of Local Partnership Interests*
(10D) Form of Amended and Restated Agreement of Limited
Partnership of Local Partnerships*
(21) Subsidiaries of the Registrant
(27) Financial Data Schedule (filed herewith)
16
<PAGE>
Item 6. Exhibits and Reports on Form 8-K (continued)
(a) Exhibits (contined)
*Incorporated herein as an exhibit by reference to exhibits filed with
Post-Effective Amendment No. 4 to the Registration Statement on Form S-11
{Registration No. 33-37704}
**Incorporated herein as an exhibit by reference to exhibits filed
with Post-Effective Amendment No. 8 to the Registration Statement on Form
S-11 {Registration No. 33-37704}
(b) Reports on Form 8-K - No reports on Form 8-K were filed during
this quarter.
17
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
INDEPENDENCE TAX CREDIT PLUS L.P. III
(Registrant)
By: RELATED INDEPENDENCE
ASSOCIATES III L.P., General Partner
By: RELATED INDEPENDENCE
ASSOCIATES III INC., General Partner
Date: August 13, 1997
By:/s/ Alan P. Hirmes
-------------------------------
Alan P. Hirmes,
Vice President
(principal financial officer)
Date: August 13, 1997
By:/s/ Richard A. Palermo
-------------------------------
Richard A. Palermo,
Treasurer
(principal accounting officer)
18
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
The Schedule contains summary financial information extracted from the
financial statements for Independence Tax Credit Plus L.P. III and is qualified
in its entirety by reference to such financial statements
</LEGEND>
<CIK> 0000924124
<NAME> Independence Tax Credit Plus L.P. III
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> JUN-30-1997
<CASH> 13,243,165
<SECURITIES> 6,000,000
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 915,804
<PP&E> 60,267,139
<DEPRECIATION> 2,305,816
<TOTAL-ASSETS> 79,572,229
<CURRENT-LIABILITIES> 8,319,292
<BONDS> 32,796,912
0
0
<COMMON> 0
<OTHER-SE> 38,456,025
<TOTAL-LIABILITY-AND-EQUITY> 79,572,229
<SALES> 0
<TOTAL-REVENUES> 910,569
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 1,087,304
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 215,097
<INCOME-PRETAX> (391,832)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (391,832)
<EPS-PRIMARY> (8.92)
<EPS-DILUTED> 0
</TABLE>
