FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
(X) QUARTERLY REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended September 30, 2002
or
( ) TRANSITION REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission file number 0-17679
BOSTON CAPITAL TAX CREDIT FUND LIMITED PARTNERSHIP.
(Exact name of registrant as specified in its charter)
|
Delaware |
04-3006542 |
|
(State or other jurisdiction |
(I.R.S. Employer |
|
of incorporation or organization) |
Identification No.) |
One Boston Place, Suite 2100, Boston, Massachusetts 02108
(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code (617)624-8900
(Former name, former address and former fiscal year, if changed since last report)
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 preceeding 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 |
_ |
BOSTON CAPITAL TAX CREDIT FUND LIMITED PARTNERSHIP
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 2002
TABLE OF CONTENTS
FOR THE QUARTER ENDED September 30, 2002
Balance Sheets *SIX Months Ended STATEMENTS OF OPERATIONS 18
Six Months Operations Series 1 19
Six Months Operations Series 2 20
Six Months Operations Series 3 21
Six Months Operations Series 4 22
STATEMENTS OF CHANGES IN PARTNERS CAPITAL 25
Notes to Financial Statements *
Statement of operation
Combined Statements Series 1 40
Combined Statements_Series 2 41
Combined Statements Series 3 42
Combined Statements Series 4 43
Combined Statements Series 5 44
Combined Statements Series 6 45
Liquidity 47
Signatures 55
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
|
|
September 30, 2002 (Unaudited) |
March 31, 2002 (Audited) |
|
ASSETS |
||
|
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
$ 8,185,691 |
$ 8,510,934 |
|
OTHER ASSETS |
||
|
Cash and cash equivalents |
195,634 |
186,922 |
|
Other assets |
1,097,003 |
1,127,970 |
|
|
||
|
$ 9,478,328 |
$ 9,825,826 |
|
|
LIABILITIES |
||
|
Accounts payable |
$ - |
$ - |
|
Accounts payable affiliates (note C) |
10,598,244 |
10,115,156 |
|
PARTNERS CAPITAL |
||
|
Assignees |
|
|
|
General Partner |
(861,111) |
(852,805) |
|
|
(1,119,916) |
(289,330) |
|
$ 9,478,328 |
$ 9,825,826 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
Series 1
|
|
September 30, 2002 (Unaudited) |
March 31, 2002 (Audited) |
|
ASSETS |
||
|
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
$ - |
$ - |
|
OTHER ASSETS |
||
|
Cash and cash equivalents |
46,371 |
7,706 |
|
Other assets |
29,169 |
68,113 |
|
$ 75,540 |
$ 75,819 |
|
|
LIABILITIES |
||
|
Accounts payable |
$ - |
$ - |
|
Accounts payable affiliates (note C) |
2,167,936 |
2,080,901 |
|
PARTNERS CAPITAL |
||
|
Assignees |
|
|
|
General Partner |
(134,148) |
(133,275) |
|
(2,092,396) |
(2,005,082) |
|
|
$ 75,540 |
$ 75,819 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
Series 2
|
|
September 30, 2002 (Unaudited) |
March 31, 2002 (Audited) |
|
ASSETS |
||
|
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
$ 247,082 |
$ 269,170 |
|
OTHER ASSETS |
||
|
Cash and cash equivalents |
4,879 |
6,538 |
|
Other assets |
569,584 |
569,584 |
|
$ 821,545 |
$ 845,292 |
|
|
LIABILITIES |
||
|
Accounts payable |
$ - |
$ - |
|
Accounts payable affiliates (note C) |
757,654 |
719,540 |
|
PARTNERS CAPITAL |
||
|
Assignees |
|
|
|
General Partner |
(68,704) |
(68,085) |
|
63,891 |
125,752 |
|
|
$ 821,545 |
$ 845,292 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
Series 3
|
|
September 30, 2002 (Unaudited) |
March 31, 2002 (Audited) |
|
ASSETS |
||
|
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
- |
$ 90,387 |
|
OTHER ASSETS |
||
|
Cash and cash equivalents |
6,459 |
11,378 |
|
Other assets |
92,390 |
88,690 |
|
$ 98,849 |
$ 190,455 |
|
|
LIABILITIES |
||
|
Accounts payable |
$ - |
$ - |
|
Accounts payable affiliates (note C) |
2,965,058 |
2,819,018 |
|
PARTNERS CAPITAL |
||
|
Assignees |
|
|
|
General Partner |
(280,575) |
(278,199) |
|
(2,866,209) |
(2,628,563) |
|
|
$ 98,849 |
$ 190,455 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
Series 4
|
|
September 30, 2002 (Unaudited) |
March 31, 2002 (Audited) |
|
ASSETS |
||
|
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
$ 3,686,077 |
$ 4,027,584 |
|
OTHER ASSETS |
||
|
Cash and cash equivalents |
5,993 |
23,212 |
|
Other assets |
255,961 |
251,684 |
|
$ 3,948,031 |
$ 4,302,480 |
|
|
LIABILITIES |
||
|
Accounts payable |
$ - |
$ - |
|
Accounts payable affiliates (note C) |
2,764,283 |
2,645,463 |
|
PARTNERS CAPITAL |
||
|
Assignees |
|
|
|
General Partner |
(248,267) |
(243,534) |
|
1,183,748 |
1,657,017 |
|
|
$ 3,948,031 |
$ 4,302,480 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
Series 5
|
|
September 30, 2002 (Unaudited) |
March 31, 2002 (Audited) |
|
ASSETS |
||
|
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
$ 318,315 |
$ 347,932 |
|
OTHER ASSETS |
||
|
Cash and cash equivalents |
81,917 |
90,595 |
|
Other assets |
149,899 |
149,899 |
|
$ 550,131 |
$ 588,426 |
|
|
LIABILITIES |
||
|
Accounts payable |
$ - |
$ - |
|
Accounts payable affiliates (note C) |
280,483 |
261,621 |
|
PARTNERS CAPITAL |
||
|
Assignees |
|
|
|
General Partner |
(39,055) |
(38,483) |
|
269,648 |
326,805 |
|
|
$ 550,131 |
$ 588,426 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
BALANCE SHEETS
Series 6
|
|
September 30, 2002 (Unaudited) |
March 31, 2002 (Audited) |
|
ASSETS |
||
|
INVESTMENTS IN OPERATING PARTNERSHIPS (Note D) |
$ 3,934,217 |
$ 3,775,861 |
|
OTHER ASSETS |
||
|
Cash and cash equivalents |
50,015 |
47,493 |
|
Other assets |
- |
- |
|
$ 3,984,232 |
$ 3,823,354 |
|
|
LIABILITIES |
||
|
Accounts payable |
$ - |
$ - |
|
Accounts payable affiliates (note C) |
1,662,830 |
1,588,613 |
|
PARTNERS CAPITAL |
||
|
Assignees |
|
|
|
General Partner |
(90,362) |
(91,229) |
|
2,321,402 |
2,234,741 |
|
|
$ 3,984,232 |
$ 3,823,354 |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
|
|
|
|
|
Income |
||
|
Interest income |
$ 540 |
$ 795 |
|
Miscellaneous income |
2,488 |
20 |
|
3,028 |
815 |
|
|
Share of loss from Operating |
(152,858) |
(241,431) |
|
Expenses |
||
|
Professional fees |
44,644 |
48,271 |
|
Partnership management fees (Note C) |
208,554 |
235,028 |
|
General and administrative fees |
14,353 |
10,697 |
|
|
267,551 |
293,996 |
|
NET LOSS |
$ (417,381) |
$ (534,612) |
|
Net loss allocated to assignees |
$ (413,208) |
$ (529,266) |
|
Net loss allocated to general partner |
$ (4,173) |
$ (5,346) |
|
Net loss per BAC |
$ (.04) |
$ (.05) |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
Series 1
|
|
|
|
|
Income |
||
|
Interest income |
$ 88 |
$ 26 |
|
Miscellaneous income |
2,488 |
20 |
|
2,576 |
46 |
|
|
Share of loss from Operating |
- |
- |
|
Expenses |
||
|
Professional fees |
7,674 |
8,175 |
|
Partnership management fees (Note C) |
33,897 |
44,476 |
|
General and administrative fees |
1,980 |
1,350 |
|
|
43,551 |
54,001 |
|
NET LOSS |
$ (40,975) |
$ (53,955) |
|
Net loss allocated to assignees |
$ (40,565) |
$ (53,415) |
|
Net loss allocated to general partner |
$ (410) |
$ (540) |
|
Net loss per BAC |
$ (.03) |
$ (.04) |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
Series 2
|
|
|
|
|
Income |
||
|
Interest income |
$ 24 |
$ 33 |
|
Miscellaneous income |
- |
- |
|
24 |
33 |
|
|
Share of loss from Operating |
(13,733) |
(16,159) |
|
Expenses |
||
|
Professional fees |
6,074 |
6,416 |
|
Partnership management fees |
16,836 |
16,836 |
|
General and administrative fees |
1,709 |
1,232 |
|
|
24,619 |
24,484 |
|
NET LOSS |
$ (38,328) |
$ (40,610) |
|
Net loss allocated to assignees |
$ (37,945) |
$ (40,204) |
|
Net loss allocated to general partner |
$ (383) |
$ (406) |
|
Net loss per BAC |
$ (.05) |
$ (.05) |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
Series 3
|
|
|
|
|
Income |
||
|
Interest income |
$ 31 |
$ 26 |
|
Miscellaneous income |
- |
- |
|
31 |
26 |
|
|
Share of loss from Operating |
(47,190) |
(44,027) |
|
Expenses |
||
|
Professional fees |
8,574 |
9,277 |
|
Partnership management fees (Note C) |
64,812 |
66,497 |
|
General and administrative expenses |
4,094 |
3,040 |
|
|
77,480 |
78,814 |
|
NET LOSS |
$ (124,639) |
$ (122,815) |
|
Net loss allocated to assignees |
$ (123,393) |
$ (121,587) |
|
Net loss allocated to general partner |
$ (1,246) |
$ (1,228) |
|
Net loss per BAC |
$ (.04) |
$ (.04) |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
Series 4
|
|
|
|
|
Income |
||
|
Interest income |
$ 50 |
$ 103 |
|
Miscellaneous income |
- |
- |
|
50 |
103 |
|
|
Share of loss from Operating |
(138,382) |
(176,495) |
|
Expenses |
||
|
Professional fees |
9,574 |
10,438 |
|
Partnership management fees (Note C) |
48,511 |
62,721 |
|
General and administrative fees |
3,782 |
2,829 |
|
|
61,867 |
75,988 |
|
NET LOSS |
$ (200,199) |
$ (252,380) |
|
Net loss allocated to assignees |
$ (198,197) |
$ (249,856) |
|
Net loss allocated to general partner |
$ (2,002) |
$ (2,524) |
|
Net loss per BAC |
$ (.07) |
$ (.08) |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
Series 5
|
|
|
|
|
Income |
||
|
Interest income |
$ 210 |
$ 402 |
|
Miscellaneous income |
- |
- |
|
210 |
402 |
|
|
Share of income (loss) from Operating |
(15,840) |
4,528 |
|
Expenses |
||
|
Professional fees |
5,074 |
5,372 |
|
Partnership management fees (Note C) |
9,429 |
9,429 |
|
General and administrative fees |
1,107 |
1,053 |
|
|
15,610 |
15,854 |
|
NET LOSS |
$ (31,240) |
$ (10,924) |
|
Net loss allocated to assignees |
$ (30,928) |
$ (10,815) |
|
Net loss allocated to general partner |
$ (312) |
$ (109) |
|
Net loss per BAC |
$ (.06) |
$ (.02) |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended September 30,
(Unaudited)
Series 6
|
|
|
|
|
Income |
||
|
Interest income |
$ 137 |
$ 205 |
|
Miscellaneous income |
- |
- |
|
137 |
205 |
|
|
Share of income (loss) from Operating |
62,287 |
(9,278) |
|
Expenses |
||
|
Professional fees |
7,674 |
8,593 |
|
Partnership management fees (Note C) |
35,069 |
35,069 |
|
General and administrative expenses |
1,681 |
1,193 |
|
|
44,424 |
44,855 |
|
NET INCOME (LOSS) |
$ 18,000 |
$ (53,928) |
|
Net income (loss) allocated to assignees |
$ 17,820 |
$ (53,389) |
|
Net income (loss) allocated to general partner |
|
|
|
Net income (loss) per BAC |
$ .01 |
$ (.04) |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
|
|
|
|
|
Income |
||
|
Interest income |
$ 1,027 |
$ 1,775 |
|
Miscellaneous income |
7,474 |
523 |
|
8,501 |
2,298 |
|
|
Share of loss from Operating |
(321,944) |
(485,369) |
|
Expenses |
||
|
Professional fees |
67,491 |
66,610 |
|
Partnership management fees (Note C) |
424,605 |
449,541 |
|
General and administrative fees |
25,047 |
21,298 |
|
|
517,143 |
537,449 |
|
NET LOSS |
$ (830,586) |
$(1,020,520) |
|
Net loss allocated to assignees |
$ (822,280) |
$(1,010,316) |
|
Net loss allocated to general partner |
$ (8,306) |
$ (10,204) |
|
Net loss per BAC |
$ (.08) |
$ (.10) |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
Series 1
|
|
|
|
|
Income |
||
|
Interest income |
$ 115 |
$ 55 |
|
Miscellaneous income |
4,956 |
20 |
|
5,071 |
75 |
|
|
Share of loss from Operating |
- |
- |
|
Expenses |
||
|
Professional fees |
11,771 |
11,520 |
|
Partnership management fees (Note C) |
77,183 |
85,294 |
|
General and administrative fees |
3,431 |
2,805 |
|
|
92,385 |
99,619 |
|
NET LOSS |
$ (87,314) |
$ (99,544) |
|
Net loss allocated to assignees |
$ (86,441) |
$ (98,549) |
|
Net loss allocated to general partner |
$ (873) |
$ (995) |
|
Net loss per BAC |
$ (.07) |
$ (.08) |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
Series 2
|
|
|
|
|
Income |
||
|
Interest income |
$ 41 |
$ 64 |
|
Miscellaneous income |
2,198 |
2 |
|
2,239 |
66 |
|
|
Share of loss from Operating |
(22,088) |
(28,976) |
|
Expenses |
||
|
Professional fees |
8,681 |
8,273 |
|
Partnership management fees |
30,244 |
28,277 |
|
General and administrative fees |
3,087 |
2,467 |
|
|
42,012 |
39,017 |
|
NET LOSS |
$ (61,861) |
$ (67,927) |
|
Net loss allocated to assignees |
$ (61,242) |
$ (67,248) |
|
Net loss allocated to general partner |
$ (619) |
$ (679) |
|
Net loss per BAC |
$ (.07) |
$ (.08) |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
Series 3
|
|
|
|
|
Income |
||
|
Interest income |
$ 62 |
$ 56 |
|
Miscellaneous income |
170 |
500 |
|
232 |
556 |
|
|
Share of loss from Operating |
(90,387) |
(90,077) |
|
Expenses |
||
|
Professional fees |
14,276 |
14,227 |
|
Partnership management fees (Note C) |
126,209 |
127,644 |
|
General and administrative expenses |
7,006 |
6,032 |
|
|
147,491 |
147,903 |
|
NET LOSS |
$ (237,646) |
$ (237,424) |
|
Net loss allocated to assignees |
$ (235,270) |
$ (235,050) |
|
Net loss allocated to general partner |
$ (2,376) |
$ (2,374) |
|
Net loss per BAC |
$ (.08) |
$ (.08) |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
Series 4
|
|
|
|
|
Income |
||
|
Interest income |
$ 113 |
$ 243 |
|
Miscellaneous income |
150 |
- |
|
263 |
243 |
|
|
Share of loss from Operating |
(341,507) |
(339,585) |
|
Expenses |
||
|
Professional fees |
14,286 |
14,398 |
|
Partnership management fees (Note C) |
111,232 |
123,815 |
|
General and administrative fees |
6,507 |
5,601 |
|
|
132,025 |
143,814 |
|
NET LOSS |
$ (473,269) |
$ (483,156) |
|
Net loss allocated to assignees |
$ (468,536) |
$ (478,324) |
|
Net loss allocated to general partner |
$ (4,733) |
$ (4,832) |
|
Net loss per BAC |
$ (.16) |
$ (.16) |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
Series 5
|
|
|
|
|
Income |
||
|
Interest income |
$ 434 |
$ 890 |
|
Miscellaneous income |
- |
1 |
|
434 |
891 |
|
|
Share of loss from Operating |
(29,617) |
(4,877) |
|
Expenses |
||
|
Professional fees |
7,326 |
6,872 |
|
Partnership management fees (Note C) |
18,589 |
13,373 |
|
General and administrative fees |
2,059 |
2,091 |
|
|
27,974 |
22,336 |
|
NET LOSS |
$ (57,157) |
$ (26,322) |
|
Net loss allocated to assignees |
$ (56,585) |
$ (26,059) |
|
Net loss allocated to general partner |
$ (572) |
$ (263) |
|
Net loss per BAC |
$ (.12) |
$ (.05) |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
Series 6
|
|
|
|
|
Income |
||
|
Interest income |
$ 262 |
$ 467 |
|
Miscellaneous income |
- |
- |
|
262 |
467 |
|
|
Share of income (loss) from Operating |
161,655 |
(21,854) |
|
Expenses |
||
|
Professional fees |
11,151 |
11,320 |
|
Partnership management fees (Note C) |
61,148 |
71,138 |
|
General and administrative expenses |
2,957 |
2,302 |
|
|
75,256 |
84,760 |
|
NET INCOME (LOSS) |
$ 86,661 |
$ (106,147) |
|
Net income (loss) allocated to assignees |
$ 85,794 |
$ (105,086) |
|
Net income (loss) allocated to general partner |
|
|
|
Net income (loss) per BAC |
$ .07 |
$ (.08) |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
Six Months Ended September 30,
(Unaudited)
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|||
|
Net loss |
(822,280) |
(8,306) |
(830,586) |
|
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
Six Months Ended September 30,
(Unaudited)
|
Assignees |
General |
Total |
|
|
Series 1 |
|||
|
Partners' capital |
|
|
|
|
|
|||
|
Net loss |
(86,441) |
(873) |
(87,314) |
|
Partners' capital |
|
|
|
|
Series 2 |
|||
|
Partners' capital |
|
|
|
|
Net loss |
(61,242) |
(619) |
(61,861) |
|
Partners' capital |
|
|
|
The accompanying notes are an integral part of these statements.
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
Six Months Ended September 30,
(Unaudited)
|
Assignees |
General |
Total |
|
|
Series 3 |
|||
|
Partners' capital |
|
|
|
|
|
|||
|
Net loss |
(235,270) |
(2,376) |
(237,646) |
|
Partners' capital |
|
|
|
|
Series 4 |
|||
|
Partners' capital |
|
|
|
|
Net loss |
(468,536) |
(4,733) |
(473,269) |
|
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
Six Months Ended September 30,
(Unaudited)
|
Assignees |
General |
Total |
|
|
Series 5 |
|||
|
Partners' capital |
|
|
|
|
|
|||
|
Net loss |
(56,585) |
(572) |
(57,157) |
|
Partners' capital |
|
|
|
|
Partners' capital |
|
|
|
|
|
|||
|
Net income |
85,794 |
867 |
86,661 |
|
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
|
2002 |
2001 |
|
|
Cash flows from operating activities: |
||
|
Net Loss |
$ (830,586) |
$(1,020,520) |
|
Adjustments |
||
|
Distributions from Operating |
|
|
|
Amortization |
- |
- |
|
Share of Loss from Operating |
|
|
|
Changes in assets and liabilities |
||
|
Increase (Decrease) in accounts |
|
|
|
Decrease (Increase) in other |
|
|
|
Net cash (used in) provided by |
|
|
|
INCREASE (DECREASE) IN CASH AND CASH |
|
|
|
Cash and cash equivalents, beginning |
186,922 |
194,875 |
|
Cash and cash equivalents, ending |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 1
|
2002 |
2001 |
|
|
Cash flows from operating activities: |
||
|
Net Loss |
$ (87,314) |
$ (99,544) |
|
Adjustments |
||
|
Distributions from Operating |
|
|
|
Amortization |
- |
- |
|
Share of Loss from Operating |
|
|
|
Changes in assets and liabilities |
||
|
Increase (Decrease) in accounts |
|
|
|
Decrease (Increase) in other |
|
|
|
Net cash (used in) provided by |
|
|
|
INCREASE (DECREASE) IN CASH AND CASH |
|
|
|
Cash and cash equivalents, beginning |
7,706 |
6,094 |
|
Cash and cash equivalents, ending |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 2
|
2002 |
2001 |
|
|
Cash flows from operating activities: |
||
|
Net Loss |
$ (61,861) |
$ (67,927) |
|
Adjustments |
||
|
Distributions from Operating |
|
|
|
Amortization |
- |
- |
|
Share of Loss from Operating |
22,088 |
|
|
Changes in assets and liabilities |
||
|
Increase (Decrease) in accounts |
|
|
|
Decrease (Increase) in other |
|
|
|
Net cash (used in) provided by |
|
|
|
INCREASE (DECREASE) IN CASH AND CASH |
|
(1,913) |
|
Cash and cash equivalents, beginning |
6,538 |
5,977 |
|
Cash and cash equivalents, ending |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 3
|
2002 |
2001 |
|
|
Cash flows from operating activities: |
||
|
Net Loss |
$ (237,646) |
$ (237,424) |
|
Adjustments |
||
|
Distributions from Operating |
|
|
|
Amortization |
- |
- |
|
Share of Loss from Operating |
|
|
|
Changes in assets and liabilities |
||
|
Increase (Decrease) in accounts |
|
|
|
Decrease (Increase) in other |
|
|
|
Net cash (used in) provided by |
(4,919) |
|
|
INCREASE (DECREASE) IN CASH AND CASH |
|
|
|
Cash and cash equivalents, beginning |
11,378 |
5,293 |
|
Cash and cash equivalents, ending |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 4
|
2002 |
2001 |
|
|
Cash flows from operating activities: |
||
|
Net Loss |
$ (473,269) |
$ (483,156) |
|
Adjustments |
||
|
Distributions from Operating |
|
(1) |
|
Amortization |
- |
- |
|
Share of Loss from Operating |
|
|
|
Changes in assets and liabilities |
||
|
Increase (Decrease) in accounts |
|
|
|
Decrease (Increase) in other |
|
|
|
Net cash (used in) provided by |
|
|
|
INCREASE (DECREASE) IN CASH AND CASH |
|
|
|
Cash and cash equivalents, beginning |
23,212 |
27,998 |
|
Cash and cash equivalents, ending |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 5
|
2002 |
2001 |
|
|
Cash flows from operating activities: |
||
|
Net Loss |
$ (57,157) |
$ (26,322) |
|
Adjustments |
||
|
Distributions from Operating |
|
|
|
Amortization |
- |
- |
|
Share of Loss from Operating |
|
|
|
Changes in assets and liabilities |
||
|
Increase (Decrease) in accounts |
|
|
|
Decrease (Increase) in other |
|
|
|
Net cash (used in) provided by |
|
|
|
INCREASE (DECREASE) IN CASH AND CASH |
|
|
|
Cash and cash equivalents, beginning |
90,595 |
96,768 |
|
Cash and cash equivalents, ending |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 6
|
2002 |
2001 |
|
|
Cash flows from operating activities: |
||
|
Net Income (Loss) |
$ 86,661 |
$ (106,147) |
|
Adjustments |
||
|
Distributions from Operating |
|
|
|
Amortization |
- |
- |
|
Share of(Income)Loss from Operating |
|
|
|
Changes in assets and liabilities |
||
|
Increase (Decrease) in accounts |
|
|
|
Decrease (Increase) in other |
|
|
|
Net cash (used in) provided by |
|
|
|
INCREASE (DECREASE) IN CASH AND CASH |
|
|
|
Cash and cash equivalents, beginning |
47,493 |
52,745 |
|
Cash and cash equivalents, ending |
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS
September 30, 2002
(Unaudited)
Boston Capital Tax Credit Fund Limited Partnership ("the Partnership") was formed under the laws of the State of Delaware as of September 1, 1988, for the purpose of acquiring, holding, and disposing of limited partnership interests in operating partnerships which have acquired, developed, rehabilitated, operate and own newly constructed, existing or rehabilitated low-income apartment complexes ("Operating Partnerships"). On August 22, 1988, American Affordable Housing VI Limited Partnership changed its name to Boston Capital Tax Credit Fund Limited Partnership. Effective as of September 1, 2001 there was a restructuring, and as a result, the Fund's general partner was reorganized as follows. The General Partner of the Fund continues to be Boston Capital Associates Limited Partnership, a Massachusetts limited partnership. The general partner of the General Partner is BCA Associates Limited Partnership, a Massachusetts limited partnership, whose sole general partner is C&M Management, Inc., a Mass
achusetts corporation and whose limited partners are Herbert F. Collins and John P. Manning. Mr. Manning is the principal of Boston Capital Partners, Inc. The limited partner of the General Partner is Capital Investment Holdings, a general partnership whose partners are certain officers and employees of Boston Capital Partners, Inc., and its affiliates. The Assignor Limited Partner is BCTC Assignor Corp., a Delaware corporation which is now wholly-owned by John P. Manning.
Pursuant to the Securities Act of 1933, the Partnership filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective August 29, 1988, which covered the offering (the "Public Offering") of the Partnership's beneficial assignee certificates ("BACs") representing assignments of units of the beneficial interest of the limited partnership interest of the Assignor Limited Partner. The Partnership registered 10,000,000 BACs at $10 per BAC for sale to the public in six series. Offers and sales of BACs in Series 1 through Series 6 of the Partnership were completed and the last of the BACs in Series 6 were issued by the Partnership on September 29, 1989. The Partnership sold 1,299,900 of Series 1 BACs, 830,300 of Series 2 BACs, 2,882,200 of Series 3 BACs, 2,995,300 of Series 4 BACs, 489,900 of Series 5 BACs and 1,303,000 of Series 6 BACs. The Partnership is no longer offering and does not intend to offer any additional BACs.
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2002
(Unaudited)
NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES
The condensed financial statements included herein as of September 30, 2002 and for the three and six months then ended have been prepared by the Partnership, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The Partnership accounts for its investments in Operating Partnerships using the equity method, whereby the Partnership adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. Costs incurred by the Partnership in acquiring the investments in Operating Partnerships are capitalized to the investment account. The Partnership's accounting and financial reporting policies are in conformity with generally accepted accounting principles and include adjustments in interim periods considered necessary for a fair presentation of the results of operations. Such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financi
al statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in the Partnership's Annual Report on Form 10-K.
NOTE C - RELATED PARTY TRANSACTIONS
The Partnership has entered into several transactions with various affiliates of the general partner, including Boston Capital Holdings LP, Boston Capital Partners, Inc. and Boston Capital Asset Management Limited Partnership.
Accounts payable - affiliates at September 30, 2002 and 2001 represents accrued general and administrative expenses, accrued partnership management fees, and advances from an affiliate of the general partner, which are payable to Boston Capital Holdings LP, and Boston Capital Asset Management Limited Partnership.
General and administrative expenses incurred by Boston Capital Holdings LP, and Boston Capital Asset Management Limited Partnership were charged to each series' operations for the quarters ended September 30, 2002 and 2001 as follows:
|
2002 |
2001 |
|
|
Series 1 |
$ 406 |
$ 339 |
|
Series 2 |
614 |
500 |
|
Series 3 |
642 |
824 |
|
Series 4 |
690 |
828 |
|
Series 5 |
501 |
624 |
|
Series 6 |
406 |
374 |
|
$3,259 |
$3,489 |
|
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2002
(Unaudited)
NOTE C - RELATED PARTY TRANSACTIONS (continued)
An annual partnership management fee based on .375 percent of the aggregate cost of all apartment complexes owned by the Operating Partnerships has been accrued to Boston Capital Asset Management Limited Partnership. The partnership management fee accrued for the quarters ended September 30, 2002 and 2001 are as follows:
|
2002 |
2001 |
|
|
Series 1 |
$ 39,637 |
$ 45,216 |
|
Series 2 |
16,836 |
16,836 |
|
Series 3 |
67,497 |
67,497 |
|
Series 4 |
48,511 |
62,721 |
|
Series 5 |
9,429 |
9,429 |
|
Series 6 |
36,069 |
36,069 |
|
$217,979 |
$237,768 |
|
As of September 30, 2002, an affiliate of the general partner advanced a total of $703,107 to the Partnership to pay certain operating expenses of the Partnership, and to make advances and/or loans to Operating Partnerships. These advances are included in Accounts payable-affiliates. A total of $6,000 was advanced during the quarter ended September 30, 2002. Below is a summary, by series, of the total advances made to date.
|
2002 |
|
|
Series 1 |
$ 90,810 |
|
Series 2 |
70,000 |
|
Series 3 |
200,980 |
|
Series 4 |
341,317 |
|
$703,107 |
All payables to affiliates will be paid, without interest, from available cash flow or the proceeds of sales or refinancing of the Partnership's interests in Operating Partnerships.
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
September 30, 2002
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS
At September 30, 2002 and 2001, the Partnership had limited partnership interests in one hundred and three Operating Partnerships which own operating apartment complexes as follows: eighteen in Series 1; eight in Series 2; thirty-three in Series 3; twenty-four in Series 4; five in Series 5; and fifteen in Series 6.
Under the terms of the Partnership's investment in each Operating Partnership, the Partnership was required to make capital contributions to such Operating Partnerships. These contributions were payable in installments over several years upon each Operating Partnership achieving specified levels of construction and/or operations. At September 30, 2002 and 2001, all capital contributions had been paid.
The Partnership's fiscal year ends March 31 of each year, while all the Operating Partnerships' fiscal years are the calendar year. Pursuant to the provisions of each Operating Partnership Agreement, financial results for each of the Operating Partnerships are provided to the Partnership within 45 days after the close of each Operating Partnership's quarterly period. Accordingly, the current financial results available for the Operating Partnerships are for the six months ended June 31, 2002.
The combined unaudited summarized statements of operations of the Operating Partnerships for the six months ended June 30, 2002 and 2001 are as follows:
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS
September 30, 2002
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
Series 1
|
2002 |
2001 |
|
|
Revenues |
||
|
Rental |
$ 2,145,228 |
$ 2,410,915 |
|
Interest and other |
119,868 |
120,051 |
|
2,265,096 |
2,530,966 |
|
|
Expenses |
||
|
Interest |
489,564 |
479,868 |
|
Depreciation and amortization |
626,895 |
1,027,609 |
|
Operating expenses |
1,819,875 |
2,023,623 |
|
2,936,334 |
3,531,100 |
|
|
NET LOSS |
$ (671,238) |
$(1,000,134) |
|
Net loss allocated to Boston |
|
|
|
Net loss allocated to other |
|
|
|
Net loss suspended |
$ (664,526) |
$ (990,133) |
The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS
September 30, 2002
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
Series 2
|
2002 |
2001 |
|
|
Revenues |
||
|
Rental |
$ 718,718 |
$ 781,479 |
|
Interest and other |
96,605 |
38,792 |
|
815,323 |
820,271 |
|
|
Expenses |
||
|
Interest |
198,296 |
144,463 |
|
Depreciation and amortization |
217,577 |
213,484 |
|
Operating expenses |
562,419 |
583,720 |
|
978,292 |
941,667 |
|
|
NET LOSS |
$ (162,969) |
$ (121,396) |
|
Net loss allocated to Boston |
|
|
|
Net loss allocated to other |
|
|
|
Net loss suspended |
$ (139,251) |
$ (91,206) |
The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS
September 30, 2002
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
Series 3
|
2002 |
2001 |
|
|
Revenues |
||
|
Rental |
$ 4,313,126 |
$ 4,033,142 |
|
Interest and other |
150,213 |
158,642 |
|
4,463,339 |
4,191,784 |
|
|
Expenses |
||
|
Interest |
1,112,995 |
1,249,187 |
|
Depreciation and amortization |
1,197,481 |
1,250,832 |
|
Operating expenses |
2,962,912 |
2,939,507 |
|
5,273,388 |
5,439,526 |
|
|
NET LOSS |
$ (810,049) |
$(1,247,742) |
|
Net loss allocated to Boston |
|
|
|
Net loss allocated to other |
$ (8,100) |
$ (12,477) |
|
Net loss suspended |
|
|
The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS
September 30, 2002
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
Series 4
|
2002 |
2001 |
|
|
Revenues |
||
|
Rental |
$ 3,455,778 |
$ 3,295,314 |
|
Interest and other |
161,360 |
135,552 |
|
3,617,138 |
3,430,866 |
|
|
Expenses |
||
|
Interest |
1,061,789 |
1,065,210 |
|
Depreciation and amortization |
923,131 |
952,009 |
|
Operating expenses |
2,241,345 |
2,206,640 |
|
4,226,265 |
4,223,859 |
|
|
NET LOSS |
$ (609,127) |
$ (792,993) |
|
Net loss allocated to Boston |
|
|
|
Net loss allocated to other |
|
|
|
Net loss suspended |
$ (261,529) |
$ (445,478) |
The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS
September 30, 2002
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended Six 30,
(Unaudited)
Series 5
|
2002 |
2001 |
|
|
Revenues |
||
|
Rental |
$ 349,484 |
$ 366,219 |
|
Interest and other |
47,150 |
40,849 |
|
396,634 |
407,068 |
|
|
Expenses |
||
|
Interest |
96,264 |
83,301 |
|
Depreciation and amortization |
118,243 |
116,292 |
|
Operating expenses |
252,434 |
273,606 |
|
466,941 |
473,199 |
|
|
NET LOSS |
$ (70,307) |
$ (66,131) |
|
Net loss allocated to Boston Capital Tax Credit Fund |
|
|
|
Net loss allocated to other |
|
|
|
Net loss suspended |
$ (39,987) |
$ (60,593) |
The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS
September 30, 2002
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Six months ended June 30,
(Unaudited)
|
2002 |
2001 |
|
|
Revenues |
||
|
Rental |
$ 2,392,178 |
$ 2,256,705 |
|
Interest and other |
131,884 |
107,543 |
|
2,524,062 |
2,364,248 |
|
|
Expenses |
||
|
Interest |
544,635 |
554,376 |
|
Depreciation and amortization |
579,768 |
650,814 |
|
Operating expenses |
1,467,852 |
1,318,943 |
|
2,592,255 |
2,524,133 |
|
|
NET INCOME (LOSS) |
$ (68,193) |
$ (159,885) |
|
Net income (loss) allocated to Boston |
|
|
|
Net income (loss) allocated to other |
|
|
|
Net loss suspended |
$ (229,166) |
$ (136,432) |
The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.
Boston Capital Tax Credit Fund Limited Partnership
NOTES TO FINANCIAL STATEMENTS - CONTINUED
September 30, 2002
(Unaudited)
The Partnership's taxable loss for the year ended December 31, 2002 is expected to differ from its loss for financial reporting purposes for the year ended March 31, 2003. This is primarily due to accounting differences in depreciation incurred by the Operating Partnerships and also differences between the equity method of accounting and the IRS accounting methods. No provision or benefit for income taxes has been included in these financial statements since taxable income or loss passes through to, and is reportable by, the partners and assignees individually.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The Partnership's primary source of funds was the proceeds of its Public Offering. Other sources of liquidity include (i) interest earned on working capital reserves, and (ii) cash distributions from the Operating Partnerships in which the Partnership has invested. These sources of liquidity are available to meet the obligations of the Partnership.
The Partnership is currently accruing the annual partnership management fee. Partnership management fees accrued during the quarter ended September 30, 2002 were $217,979 and total partnership management fees accrued as of September 30, 2002 were $9,758,073. Pursuant to the Partnership Agreement, such liabilities will be deferred until the Partnership receives sales or refinancing proceeds from Operating Partnerships, which will be used to satisfy such liabilities.
The Partnership has also recorded other payables to affiliates of $840,171. The amount consists of advances to pay certain third party operating expenses of the Partnership, advances and/or loans to Operating Partnerships, and accrued overhead allocations. The breakout between series are: $108,685 in series 1, $98,845 in series 2, $242,773 in series 3, $374,187 in series 4, none in series 5, and $15,681 in series 6. These and any future advances or accruals will be paid, without interest, from available cash flow, reporting fees, or proceeds of sales or refinancing of the Partnership's interest in Operating Partnerships.
The Partnership offered BACs in a Public Offering declared effective by the Securities and Exchange Commission on August 29, 1988. The Partnership received and accepted subscriptions for $97,746,940 representing 9,800,600 BACs from investors admitted as BAC Holders in Series 1 through Series 6 of the Partnership. Offers and sales of BACs in Series 1 through Series 6 of the Partnership were completed and the last of the BACs in Series 6 were issued by the Partnership on September 29, 1989. At September 30, 2002 and 2001 the Partnership had limited partnership equity interests in 103 Operating Partnerships.
As of September 30, 2002 the Partnership had $195,634 remaining in cash and cash equivalents. Below is a table, which provides, by series, the equity raised, number of BACs sold, final date BACs were offered, number of properties acquired, and remaining proceeds.
|
Series |
Equity |
BACs |
Final Close Date |
Number of Properties |
Proceeds Remaining |
|
1 |
$12,999,000 |
1,299,900 |
12/18/88 |
18 |
$ 46,371 |
|
2 |
8,303,000 |
830,300 |
03/30/89 |
8 |
4,879 |
|
3 |
28,822,000 |
2,882,200 |
03/14/89 |
33 |
6,459 |
|
4 |
29,788,160 |
2,995,300 |
07/07/89 |
24 |
5,993 |
|
5 |
4,899,000 |
489,900 |
08/22/89 |
5 |
81,917 |
|
6 |
12,935,780 |
1,303,000 |
09/29/89 |
15 |
50,015 |
|
$97,746,940 |
9,800,600 |
103 |
$195,634 |
At September 30, 2002 and 2001 the Partnership held limited partnership interests in 103 Operating Partnerships. In each instance the Apartment Complex owned by the applicable Operating Partnership is eligible for the Federal Housing Tax Credit. Initial occupancy of a unit in each Apartment Complex which initially complied with the Minimum Set-Aside Test (i.e., initial occupancy by tenants with incomes equal to no more than a certain percentage of area median income) and the Rent Restriction Test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to hereinafter as "Qualified Occupancy." Each of the Operating Partnerships and each of the respective Apartment Complexes are described more fully in the Prospectus or applicable report on Form 8-K. The General Partner believes that there is adequate casualty insurance on the properties.
The Partnership incurs an annual partnership management fee to the General Partner and/or its affiliates in an amount equal to 0.375% of the aggregate cost of the Apartment Complexes owned by the Operating Partnerships, less the amount of certain partnership management and reporting fees paid by the Operating Partnerships. The annual partnership management fee is currently being accrued. It is anticipated that outstanding fees will be repaid from sale or refinancing proceeds. The annual partnership management fee charged to operations for the quarters ended September 30, 2002 and 2001, net of reporting fees received were $208,554 and $235,028, respectively.
The Partnership's investment objectives do not include receipt of significant cash distributions from the Operating Partnerships in which it has invested. The Partnership's investments in Operating Partnerships have been made principally with a view towards realization of Federal Housing Tax Credits for allocation to its partners and BAC holders. The Results of Operations reported herein are interim period estimates that may not necessarily be indicative of final year end results.
Series 1
As of September 30, 2002 and 2001, the average Qualified Occupancy for the series was 100%. The series had a total of 18 properties at September 30, 2002, all of which were at 100% Qualified Occupancy.
For the six months being reported, the series reflects a net loss from Operating Partnerships of $671,238. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect negative operations of $44,343. The increase in cash balance in the six month period for Series 1 was mainly the result of partial repayment of advances from two of the Operating Partnerships in the first quarter of fiscal year 2003.
Genesee Commons Associates (River Park Commons) and Kingston Property Associates (Broadway East Townhouses) have incurred operating deficits as a result of weak occupancy. Both Operating Partnerships have a verbal forbearance agreement in place allowing the properties to pay minimal mortgage payments while the properties continue to accrue all interest payments due. Both properties also received loans from the state housing agency, which were used to complete rehabilitation work. Historically Kingston Property Associates has operated with an occupancy level below 80%. However, operations at this property have improved with an average 9 month occupancy level of 90% through September 30, 2002. The operations at Genesee Commons Associates remain weak with an occupancy level consistent with prior years. As of September 30, 2002 the average 9 month occupancy was 85%. Both properties continue to work with local and state agencies to locate qualified residents. Also, the properties have developed a referra l system with local non-profit agencies and churches. The properties have not made the minimum debt service payments, as outlined in the forbearance agreements since 1997. At this time, the mortgage holders for each of these two properties have not taken any adverse action. The Operating General Partner met with the lenders for both properties. The Operating General Partner reports that the meeting was successful, receiving verbal approval that the mortgage holders would not foreclose on the properties prior to the end of the compliance period. The 15 year compliance period for Genesee Commons and Kingston Property Associates ends on December 31st, 2002 and December 31st, 2003, respectively. The Investment General Partner is in the beginning stages of discussions with the Operating General Partner to determine the options available to the partnerships at the end of each respective compliance period. The Investment General Partner will continue to monitor the situation closely.
Series 2
As of September 30, 2002 and 2001, the average Qualified Occupancy for the series was 100%. The series had a total of eight properties at September 30, 2002, all of which were at 100% Qualified Occupancy.
For the six months being reported the series reflects a net loss from the Operating Partnerships of $162,969. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $54,608.
The properties owned by Haven Park Partners III, A California L.P. (Glenhaven Park III) and Haven Park Partners IV, A California L.P. (Glenhaven Park IV) have historically suffered from excessive operating expenses compared to operating income. New management put in place in the fourth quarter of 2000 has been successful in maintaining strong occupancy. Haven Park III has maintained 100% occupancy through the third quarter of 2002; while Haven Park IV has maintained an occupancy level of 98% in 2002. Management has made strong efforts to control operating expenses and as a result, Haven Park III is operating at breakeven through the third quarter of 2002. Haven Park IV is operating slightly below breakeven, but has demonstrated significant improvement. The Partnerships have filed for welfare tax exemption. According to the General Partner, the County of Merced has approved the exemption pending the receipt of additional Partnership documentation. The County has acknowledged receipt of all document ation, however, to date has not issued confirmation of the exemption. If the exemption is granted, it is expected to be retroactive to 2000 and will have a positive effect on cash flow. Another factor inhibiting cash flow is debt service requirements which are more than 50% of the operating income. All attempts to restructure the debt service have been unsuccessful.
Annadale Housing Partners (Annadale Apartments) has historically reported net losses due to operational issues associated with the property. As a result of efforts by the management company operations have improved significantly. Rental increases combined with improved collections, increased rental revenues by $99,860 (11.3%) in 2001. This combined with stabilized operating expenses allowed the property to operate above breakeven. This positive trend has continued into the third quarter of 2002, with net rental income exceeding budgeted projections. Occupancy remains stable at 89% through the third quarter of 2002. In accordance with the loan agreements, the property continues to fund capital improvements from operations. A welfare tax exemption was approved in 2001, and the Partnership received a refund of $29,982 in January 2002. If operations continue to demonstrate improvement, the Investment General Partner will no longer continue to re port on this Partnership.
Series 3.
As of September 30, 2002 and 2001, the average Qualified Occupancy for the series was 99.9% and 99.0%, respectively. The series had a total of 33 properties at September 30, 2002, of which 32 were at 100% Qualified Occupancy.
For the six months being reported series reflects a net loss from the Operating Partnerships of $810,049. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $387,432.
The Investment General Partner continues to monitor the operations of Lincoln Hotel Associates (Lincoln Apartments) in an effort to improve the overall operations of the Partnership. Physical occupancy through the third quarter of 2002 averaged 99.3%. The stable occupancy, along with expense reductions, has resulted in improved operations. The mortgage is current under the terms of the forbearance agreement. The taxes, insurance and payables are also current. The Operating General Partner is currently in negotiations to replace management with a not-for-profit entity who is interested in assuming the ownership of the Partnership once the tax credit compliance period has expired. A purchase option has been executed and recorded, and currently negotiations continue with the lenders. Lender approvals and the change of management are expected to be in place by year end.
Operations at California Investors VI (Orchard Park Apartments) continue to show improvement. Historically, the property has suffered from low occupancy due to the remote location of the site. The area has experienced economic growth over the past few years, and as a result operations at the property have improved as well. Occupancy remains stable averaging 97% through the third quarter of 2002. A rent increase was implemented in March 2001, resulting in an increase in rental revenues of $68,822 (9.1%) in 2001. The increase was phased in as leases expired. The full benefit of the increase has become evident in 2002. As a result of the increased revenues, the Partnership is operating above breakeven through the third quarter of 2002. The property operated below breakeven in 2001 largely because the welfare tax exemption was not in place, and the property paid the full value of the property taxes. The exemption was submitted, however there was a problem with the 503(C) documentation (non profit status) a
nd the Partnership had to reapply with a new non profit partner. The General Partner is moving ahead with the application process and if approved, the Partnership will receive a refund of approximately $32,000. The Operating General Partner will continue to monitor the status of the exemption. In addition to the positive changes affecting this partnership, an affiliate of the management company assumed the Operating General Partner responsibilities for the Partnership on January 1, 2001, and is now responsible for funding all future operating deficits.
Operations continue to improve at Hidden Cove Apartments (Hidden Cove) as evidenced by stabilized occupancy and increased rental collections. Occupancy through September 2002 has averaged 98%. To date the property has been able to complete minor capital improvements and fund its replacement reserve account without financial assistance. The property is currently operating slightly above breakeven. Cash flow and reserves will be utilized to make improvements necessary to maintain building safety. A welfare tax exemption was applied for and granted. The exemption was retroactive to tax years 2000 and 2001. This has had a positive effect on cash flow. If operations continue to demonstrate improvement, the Investment General Partner will no longer report on this Partnership.
Central Parkway Towers (Central Parkway Towers) average occupancy increased to 83% through September 2002 as compared to 2001's average occupancy of 75%. The Management Company continues to work with city and state, non-profit agencies to expand tenant referrals and housing contracts. The Operating General Partner's operating deficit guarantee obligation has been fully funded; however, it is currently participating on a 50/50 basis with the Investment Limited Partner in the funding of ongoing operating deficit shortfalls. The property's overall financial position is slowly improving, and third party accounts payable and accrued expenses are gradually being reduced.
The Investment Limited Partner continues to monitor the operations of Rainbow Housing Associates (Rainbow Apartments). The slight decrease in occupancy for the third quarter 2002 caused the property to generate less cash than in the first half of the year. The slight drop in occupancy during the third quarter of the year is typical for this property, however the Investment General Partner will continue to monitor operations. Aged payables are decreasing and will continue to be reduced as cash flow permits. The payables due are to the management company for past due management fees and to the General Partner for previous operating advances. The real estate taxes and mortgage are current. Average occupancy for the first three quarters of 2002 was 90%.
Series 4
As of September 30, 2002 and 2001, the average Qualified Occupancy for the series was 100%. The series had a total of 24 properties at September 30, 2002, all of which were at 100% Qualified Occupancy.
For the six months being reported the series reflects a net loss from the Operating Partnerships of $609,127. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $314,004.
Central Parkway Towers (Central Parkway Towers) average occupancy increased to 83% through September 2002 as compared to 2001's average occupancy of 75%. The Management Company continues to work with city and state, non-profit agencies to expand tenant referrals and housing contracts. The Operating General Partner's operating deficit guarantee obligation has been fully funded; however, it is currently participating on a 50/50 basis with the Investment Limited Partner in the funding of ongoing operating deficit shortfalls. The property's overall financial position is slowly improving, and third party accounts payable and accrued expenses are gradually being reduced.
The property owned by Haven Park Partners II, A California LP (Glenhaven Park II) has historically suffered from excessive operating expenses compared to operating income. New management put in place in the fourth quarter of 2000 has been successful in maintaining strong occupancy. The Partnership has maintained 100% occupancy through the third quarter of 2002. Management was able to bring operating expenses to more acceptable levels in 2001, and although the Partnership did not generate positive cash flow, the deficit was much smaller than in prior years. This trend continues through September 2002, with operations running slightly below breakeven. The Partnership has filed for welfare tax exemption. According to the General Partner the County of Merced has approved the exemption pending the receipt of additional Partnership documentation. The County has recently acknowledged receipt of the documents, however, to date has not issued confirmation of the exemption. If the exemption is granted, it is e xpected to be retroactive to 2000 and will have a positive effect on cash flow.
The Operating Partnership Van Dyck Estates XVI-A, A California L.P. (Van Dyck Estates XVI-A) has improved operations while maintaining high occupancy. Effective January 1, 2001, the General Partner interest was transferred to the Central Valley Affordable Housing LLC, an affiliate of San Mar Properties, Inc. San Mar continues in its capacity as managing agent. Effective with the date of the transfer, San Mar will be responsible for funding all operating deficits. Occupancy has averaged 97% through the third quarter of 2002. Due to rent increases implemented in January 2002, and decreased operating costs, the property is operating slightly above breakeven through the third quarter of 2002. The Partnership filed for a welfare tax exemption however there was a problem with the 503(C) documentation (non profit status)and the Partnership had to reapply with a new non profit partner. The General Partner is moving ahead with the application process. Due to the improvement in operations demonstrated in year s 2000 and 2001, plus the commitment from the new General Partner, the Going Concern opinion was removed in 2001.
Series 5
As of September 30, 2002 and 2001, the average Qualified Occupancy for the series was 100%. The series had a total of five properties at September 30, 2002, all of which were at 100% Qualified Occupancy.
For the six months being reported the series reflects a net loss from the Operating Partnerships of $70,307. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $47,936.
Annadale Housing Partners (Annadale Apartments) has historically reported net losses due to operational issues associated with the property. As a result of efforts by the management company operations have improved significantly. Rental increases combined with better rent collections, increased rental revenues by $99,860 (11.3%) in 2001. This combined with stabilized operating expenses allowed the property to operate above breakeven. This positive trend has continued into the third quarter of 2002, with net rental income exceeding budgeted projections. Occupancy remains stable at 89% through the third quarter of 2002. In accordance with the loan agreements, the property continues to fund capital improvements from operations. A welfare tax exemption was approved in 2001, and the Partnership received a refund of $29,982 in January 2002. If operations continue to demonstrate improvement, we will no longer continue to report on this Partnership.
The property owned by Glenhaven Park Partners, A California L.P. (Glenhaven Estates) continues to suffer from excessive operating expenses compared to operating income. Effective October 4, 2000, San Mar Properties of Fresno, California assumed the role of management agent. An affiliate of San Mar Properties, Central Valley Affordable Housing LLC, assumed the General Partner interest effective December 31, 2000, and is now responsible for funding all future operating deficits. In February 2001 the property was no longer able to meet the mortgage obligations. The Operating General Partner with the assistance from the Investment General Partner attempted to restructure the debt, but was unsuccessful. The Operating General Partner advanced funds to bring five of the mortgage notes current. The Operating General Partner has agreed to keep these units tax credit compliant. The mortgage holder with the seven remaining mortgage notes was unwilling to negotiate a restructure of those loans. Therefore, in an a
ttempt to stay of relief from foreclosure on the seven remaining notes, the Partnership filed for Chapter 11 bankruptcy protection on October 2, 2001. The US Trustee approved cash collateral, which permitted the Partnership to remit a reduced monthly mortgage payment to the lender until January 15, 2002. The Reorganization Plan involved bringing current one of the seven delinquent loans in order to remain compliant with IRS Section 42 minimum requirements, thus avoiding disallowance and full recapture of the tax credits. This plan has been successful and shortly after January 15th the General Partner filed a motion of dismissal of bankruptcy protection. The bankruptcy was dismissed in February 2002. The Operating General Partner and Investment Limited Partner attempted negotiations with the lender to again avoid foreclosure on the remaining units but negotiations were not successful. The six remaining units were foreclosed upon and removed from the Partnership. As a result of the foreclosur
e the Partnership will face partial recapture of tax credits previously taken of approximately $50,000. The remaining six units are 100% occupied as of September 2002. The Partnership has filed for a welfare tax exemption for 2001-2002 and 2002-2003, and is currently awaiting a decision by the state. If granted, the tax exemption will have a positive effect on the cash flow.
Series 6
As of September 30, 2002 and 2001, the average Qualified Occupancy for the series was 100%. The series had a total of 15 properties at September 30, 2002, all of which were at 100% Qualified Occupancy.
For the six months being reported the series reflects a net loss from the Operating Partnerships of $68,193. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $511,575.
Series 6 reported a net income per BAC of .07 for the current six month period versus a net loss per BAC of (.08) for the prior year six month period. The improved operations are mainly the result of income reported collectively by the Operating Partnership in the current year. Two of the Operating Partnerships reported income for the current six month period and 13 reported losses. Since the losses reported by the Operating Partnerships were mostly suspended due to the equity method of accounting a large net income was reported by the Series in the current year.
PART II - OTHER INFORMATION
|
Item 1. |
Legal Proceedings |
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|
None |
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|
Item 2. |
Changes in Securities |
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|
None |
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|
Item 3. |
Defaults upon Senior Securities |
||
|
None |
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|
Item 4. |
Submission of Matters to a Vote of Security |
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|
None |
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|
Item 5. |
Other Information |
||
|
None |
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|
Item 6. |
Exhibits and Reports on Form 8-K |
||
|
(a)Exhibits |
|||
|
99 (a) Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herein |
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99 (b) Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herein |
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|
(b)Reports on Form 8-K |
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|
None |
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Pursuant to the requirements of Section 13 of the Securities
Exchange Act of 1934, the Partnership has duly caused this Report to be
signed on its behalf by the undersigned, thereunto duly authorized.
|
Boston Capital Tax Credit Fund Limited Partnership |
|||
|
By: |
Boston Capital Associates Limited Partnership, General Partner |
||
|
By: |
BCA Associates Limited Partnership, General Partner |
||
|
By: |
C&M Management, Inc., General Partner |
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Date: |
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|
November 20, 2002 |
By:/s/ John P. Manning |
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|
John P. Manning |
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