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EX-31 - BCTC III CERTIFICATION 302 - BOSTON CAPITAL TAX CREDIT FUND III L Pb31211cert302mnt.htm
EX-31 - BCTC III CERTIFICATION 302 - BOSTON CAPITAL TAX CREDIT FUND III L Pb31211cert302jpm.htm

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 December 31, 2011

                                             or

( )   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission file number        0-21718

BOSTON CAPITAL TAX CREDIT FUND III L.P.
(Exact name of registrant as specified in its charter)

Delaware

52-1749505

(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)

                   (617) 624-8900                   

(Registrant's telephone number, including area code)

(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 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 ý

No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ý

No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act (check one):

Large accelerated filer o

Accelerated filer o

Non-accelerated filer o

Smaller reporting company ý

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o

No ý

BOSTON CAPITAL TAX CREDIT FUND III L.P.

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 31, 2011

TABLE OF CONTENTS

 

Part I. Financial information

Item 1. CONDENSED FINANCIAL STATEMENTS

CONDENSED Balance Sheets *

Condensed Balance Sheets Series 15 *

Condensed Balance Sheets Series 16 *

Condensed Balance Sheets Series 17 *

Condensed Balance Sheets Series 18 *

Condensed Balance Sheets Series 19 *

CONDENSED Statements of Operations three months 10

Condensed Statements of Operations Series 15 11

Condensed Statements of Operations Series 16 12

Condensed Statements of Operations Series 17 13

Condensed Statements of Operations Series 18 14

Condensed Statements of Operations Series 19 15

CONDENSED Statements of Operations NINE months 16

Condensed Statements of Operations Series 15 17

Condensed Statements of Operations Series 16 18

Condensed Statements of Operations Series 17 19

Condensed Statements of Operations Series 18 20

Condensed Statements of Operations Series 19 21

CONDENSED STATEmentS OF Changes in Partners' Capital (Deficit) 22

Condensed Partners' Capital (Deficit) Series 15 23

Condensed Partners' Capital (Deficit) Series 16 23

Condensed Partners' Capital (Deficit) Series 17 24

Condensed Partners' Capital (Deficit) Series 18 24

Condensed Partners' Capital (Deficit) Series 19 25

CONDENSED Statements of Cash Flows 26

Condensed Statements of Cash Flows Series 15 27

Condensed Statements of Cash Flows Series 16 28

Condensed Statements of Cash Flows Series 17 29

Condensed Statements of Cash Flows Series 18 30

Condensed Statements of Cash Flows Series 19 31

 

 

 

 

 

 

 

 

BOSTON CAPITAL TAX CREDIT FUND III L.P.

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 31, 2011

TABLE OF CONTENTS (CONTINUED)

Notes to CONDENSED Financial Statements *

Note A Organization *

Note B Accounting and financial reporting policies *

Note C Related Party Transactions 34

Note D Investments in operating partnerships 35

COMBINED CONDENSED STATEMENTS OF OPERATIONS 37

Combined Condensed Statement of Operations Series 15 38

Combined Condensed Statement of Operations Series 16 39

Combined Condensed Statement of Operations Series 17 40

Combined Condensed Statement of Operations Series 18 41

Combined Condensed Statement of Operations Series 19 42

Note E Taxable Loss 43

Note F Income taxes 43

Note G Subsequent Event 43

Item 2. Management's Discussion and Analysis of Financial Condition and

Results of Operations 44

Liquidity 44

Capital Resources 45

Results of Operations 46

principal accounting policies and estimates 68

Recent Accounting Changes 69

Item 3. Quantitative and Qualitative Disclosures about market risk 70

Item 4. Controls and Procedures 70

Part II Other Information 71

Item 1. Legal Proceedings 71

Item 1A. Risk Factors 71

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds. 71

Item 3. Defaults Upon Senior Securities 71

Item 4. Mine Safety Disclosures 71

Item 5. Other Information 71

Item 6. Exhibits 71

 

SIGNATURES 72

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

 

 

December 31,

2011

March 31,

2011

 

ASSETS

Cash and cash equivalents

$   5,413,804

$   5,463,659

Other assets

      14,400

      75,938

 


$   5,428,204


$   5,539,597

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable & accrued expenses 

$     169,046

$     112,546

Accounts payable affiliates (Note C)

24,929,312

24,721,709

Capital contributions payable

      91,360

      93,144

 


  25,189,718


  24,927,399

 

 

 

PARTNERS' CAPITAL (DEFICIT)

 

 

 

 

 

Assignees 
  
   Units of limited partnership 
   interest, $10 stated value per BAC; 
   22,000,000 authorized BACs; 
   21,996,102 issued and 21,994,302

outstanding   






(17,708,621)






(17,338,646)

General Partner

 (2,052,893)

 (2,049,156)

 


(19,761,514)


(19,387,802)

 


$   5,428,204


$   5,539,597












The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

Series 15

 

 

December 31,

2011

March 31,

2011

 

ASSETS

 

 

 

 

 

 

Cash and cash equivalents

$    587,432

$    299,446

Other assets

          -

     69,038

 


$    587,432


$    368,484

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable & accrued expenses 

$     48,746

$     38,746

Accounts payable affiliates (Note C)

4,100,883

4,071,131

Capital contributions payable

          -

          -

 


  4,149,629


  4,109,877

 

 

 

PARTNERS' CAPITAL (DEFICIT)

 

 

 

 

 

Assignees 
  


   Units of limited partnership 
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,870,500 issued and outstanding 







(3,204,386)







(3,381,790)


General Partner


  (357,811)


  (359,603)

 


(3,562,197)


(3,741,393)

 


$    587,432


$    368,484












The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

Series 16



December 31,

2011

March 31,

2011

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

$    504,579

$    416,806

Other assets

       -

      2,500

 


$    504,579


$    419,306

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable & accrued expenses 

$     44,000

$     12,500

Accounts payable affiliates (Note C)

8,544,254

8,404,538

Capital contributions payable

     50,008

     51,792

 


  8,638,262


  8,468,830

 

 

 

PARTNERS' CAPITAL (DEFICIT)

 

 

 

 

 

Assignees 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,429,402 issued and 5,427,602

outstanding






(7,585,737)






(7,502,420)

General Partner

  (547,946)

  (547,104)

 


(8,133,683)


(8,049,524)

 


$    504,579


$    419,306









The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

Series 17



December 31,

2011

March 31,

2011

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

$   367,485

$    328,413

Other assets

      4,400

      4,400

 


$   371,885


$    332,813

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable & accrued expenses 

$     63,500

$     48,500

Accounts payable affiliates (Note C)

6,927,657

6,931,537

Capital contributions payable

     22,798

     22,798

 


  7,013,955


  7,002,835

 

 

 

PARTNERS' CAPITAL (DEFICIT)

 

 

 

 

 

Assignees 
  


   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,000,000 issued and outstanding 







(6,154,872)







(6,182,544)


General Partner


  (487,198)


  (487,478)

 


(6,642,070)


(6,670,022)

 


$   371,885


$    332,813










The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

Series 18



December 31,

2011

March 31,

2011

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

$    111,074

$    293,045

Other assets

   10,000

          -

 


$    121,074


$    293,045

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable & accrued expenses 

$      -

$      -

Accounts payable affiliates (Note C)

5,356,518

5,314,503

Capital contributions payable

     18,554

     18,554

 


  5,375,072


  5,333,057

 

 

 

PARTNERS' CAPITAL (DEFICIT)

 

 

 

 

 

Assignees 
  


   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,616,200 issued and outstanding   







(4,891,230)







(4,679,384)


General Partner


  (362,768)


  (360,628)

 


(5,253,998)


(5,040,012)

 


$    121,074


$    293,045











The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

Series 19



December 31,

2011

March 31,

2011

 

ASSETS

 

 

 

 

 

Cash and cash equivalents

$  3,843,234

$  4,125,949

Other assets

       -

       -

 


$  3,843,234


$  4,125,949

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable & accrued expenses 

$     12,800

$     12,800

Accounts payable affiliates (Note C)

-

-

Capital contributions payable

          -

          -

 


     12,800


     12,800

 

 

 

PARTNERS' CAPITAL (DEFICIT)

 

 

 

 

 

Assignees 
  


   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   4,080,000 issued and outstanding







4,127,604







4,407,492


General Partner


  (297,170)


  (294,343)

 


  3,830,434


  4,113,149

 


$  3,843,234


$  4,125,949









The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,
(Unaudited)

 


2011


2010

 

 

 

 

 

Income

 

 

 

 

  Interest income

$     6,499

 

$     4,843

 

  Other income

     2,226

 

    25,000

 

 


     8,725

 


    29,843

 

Share of Income from Operating 
  Partnerships(Note D)


   352,550



   286,820

 

 

 

 

 

Expenses

 

 

 

 

  Professional fees

9,630

 

7,113

 

  Fund management fee, net (Note C) 

246,200

 

332,215

 

  General and administrative expenses

    39,606

 

    50,555

 

  


   295,436

 


   389,883

 

 

 

 

 

 

  NET INCOME (LOSS)

$  65,839

 

$  (73,220)

 

 

 

 

 

 

Net income (loss) allocated to limited assignees

$  65,180

 

$  (72,488)

 

 

 

 

 

 

Net income (loss) allocated to general partner

$    659

 

$     (732)

 

 

 

 

 

 

Net income (loss) per BAC

$       .00

 

$     (.00)

 

 

 

 

 

 


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,
(Unaudited)

Series 15


2011


2010

 

 

 

 

 

Income

 

 

 

 

  Interest income

$        375

 

$        603

 

  Other income

         49

 

          -

 


       424


        603

Share of Income from Operating 
  Partnerships(Note D)


    325,050

 


     78,000

 

 

 

 

 

 

Expenses

 

 

 

 

  Professional fees

1,898

 

591

 

  Fund management fee, net (Note C) 

16,353

 

29,280

 

  General and administrative expenses

      7,826

 

     13,833

 

  


     26,077

 


     43,704

 

 

 

 

 

 

  NET INCOME (LOSS)

$    299,397

 

$     34,899

 

 

 

 

 

 

Net income (loss) allocated to limited assignees

$    296,403

 

$     34,550

 

 

 

 

 

 

Net income (loss) allocated to general partner

$      2,994

 

$        349

 

 

 

 

 

 

Net income (loss) per BAC

$       .08

 

$        .01

 

 

 

 

 

 























The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,
(Unaudited)

Series 16


2011


2010

 

 

 

 

Income

 

 

 

  Interest income

$        444

 

$        696

  Other income

       5

 

          -

 


       449

 


        696

Share of Income from Operating 
  Partnerships(Note D)


      -

 


     54,920

 

 

 

 

Expenses

 

 

 

  Professional fees

2,036

 

517

  Fund management fee, net (Note C) 

76,074

 

110,561

  General and administrative expenses

      9,781

 

     11,675

  


     87,891

 


    122,753

 

 

 

 

  NET INCOME (LOSS)

$   (87,442)

 

$   (67,137)

 

 

 

 

Net income (loss) allocated to limited assignees

$   (86,568)

 

$   (66,466)

 

 

 

 

Net income (loss) allocated to general partner

$     (874)

 

$      (671)

 

 

 

 

Net income (loss) per BAC

$     (.02)

 

$      (.01)

 

 

 

 























The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,
(Unaudited)


Series 17


2011


2010

 

 

 

 

 

Income

 

 

 

 

  Interest income

$       363

 

$      1,729

 

  Other income

      692

 

          -

 

 


      1,055

 


      1,729

 

Share of Income from Operating 
  Partnerships(Note D)


     27,500



    153,900

 

 

 

 

 

Expenses

 

 

 

 

  Professional fees

1,965

 

545

 

  Fund management fee, net (Note C) 

56,290

 

84,308

 

  General and administrative expenses

      8,409

 

      9,815

 

  


     66,664

 


     94,668

 

 

 

 

 

 

  NET INCOME (LOSS)

$   (38,109)

 

$     60,961

 

 

 

 

 

 

Net income (loss) allocated to limited assignees

$   (37,728)

 

$     60,351

 

 

 

 

 

 

Net income (loss) allocated to general partner

$      (381)

 

$        610

 

 

 

 

 

 

Net income (loss) per BAC

$      (.01)

 

$        .01

 

 

 

 

 

 






















The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,
(Unaudited)


Series 18


2011


2010

 

 

 

Income

 

 

  Interest income

$         68

$        488

  Other income

     1,215

     25,000

 


      1,283


     25,488

Share of Income from Operating 
  Partnerships(Note D)


          -


          -

 

 

 

Expenses

 

 

  Professional fees

1,848

206

  Fund management fee, net (Note C) 

65,733

62,118

  General and administrative expenses

      6,871

      7,918

  


     74,452


     70,242

 

 

 

  NET INCOME (LOSS)

$   (73,169)

$   (44,754)

 

 

 

Net income (loss) allocated to limited assignees

$   (72,437)

$   (44,306)

 

 

 

Net income (loss) allocated to general partner

$      (732)

$      (448)

 

 

 

Net income (loss) per BAC

$      (.02)

$      (.01)

 

 

 

























The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Three Months Ended December 31,
(Unaudited)



Series 19


2011


2010

 

 

 

Income

 

 

  Interest income

$     5,249

$     1,327

  Other income

       265

         -


     5,514


     1,327

Share of Income from Operating 
  Partnerships(Note D)


     -


         -

 

 

 

Expenses

 

 

  Professional fees

1,883

5,254

  Fund management fee, net (Note C) 

31,750

45,948

  General and administrative expenses

     6,719

     7,314

  


    40,352


    58,516

 

 

 

  NET INCOME (LOSS)

$  (34,838)

$  (57,189)

 

 

 

Net income (loss) allocated to limited assignees

$  (34,490)

$  (56,617)

 

 

 

Net income (loss) allocated to general partner

$     (348)

$     (572)

Net income (loss) per BAC

$     (.01)

$     (.01)

 

 

 
























The accompanying notes are an integral part of these condensed statements

 


Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,
(Unaudited)

 


2011


2010

 

 

 

 

 

Income

 

 

 

 

  Interest income

$    21,060

 

$    17,108

 

  Other income

    28,450

 

    96,694

 

 


    49,510

 


   113,802

 

Share of Income from Operating 
  Partnerships(Note D)


  800,440

 


 2,636,120

 

 

 

 

 

Expenses

 

 

 

 

  Professional fees

153,808

 

161,017

 

  Fund management fee, net (Note C) 

727,934

 

944,460

 

  General and administrative expenses

    80,090

 

    92,408

 

  


   961,832

 


 1,197,885

 

 

 

 

 

 

  NET INCOME (LOSS)

$ (111,882)

 

$ 1,552,037

 

 

 

 

 

 

Net income (loss) allocated to limited assignees

$ (110,763)

 

$ 1,536,518

 

 

 

 

 

 

Net income (loss) allocated to general partner

$   (1,119)

 

$    15,519

 

 

 

 

 

 

Net income (loss) per BAC

$     (.01)

 

$       .07

 

 

 

 

 

 



The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,
(Unaudited)

Series 15


2011


2010

 

 

 

 

 

Income

 

 

 

 

  Interest income

$      1,182

 

$      1,796

 

  Other income

      1,318

 

      2,313

 


      2,500


      4,109

Share of Income from Operating 
  Partnerships(Note D)


    325,050

 


     78,000

 

 

 

 

 

 

Expenses

 

 

 

 

  Professional fees

34,627

 

34,622

 

  Fund management fee, net (Note C) 

98,566

 

128,263

 

  General and administrative expenses

     15,161

 

     23,409

 

  


    148,354

 


    186,294

 

 

 

 

 

 

  NET INCOME (LOSS)

$   179,196

 

$  (104,185)

 

 

 

 

 

 

Net income (loss) allocated to limited assignees

$   177,404

 

$  (103,143)

 

 

 

 

 

 

Net income (loss) allocated to general partner

$     1,792

 

$    (1,042)

 

 

 

 

 

 

Net income (loss) per BAC

$       .05

 

$      (.03)

 

 

 

 

 

 























The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,
(Unaudited)

Series 16


2011


2010

 

 

 

 

Income

 

 

 

  Interest income

$      1,501

 

$      2,771

  Other income

      2,024

 

      3,906

 


      3,525

 


      6,677

Share of Income from Operating 
  Partnerships(Note D)


    148,294

 


    187,025

 

 

 

 

Expenses

 

 

 

  Professional fees

37,971

 

37,341

  Fund management fee, net (Note C) 

179,316

 

315,374

  General and administrative expenses

     18,691

 

     21,241

  


    235,978

 


    373,956

 

 

 

 

  NET INCOME (LOSS)

$   (84,159)

 

$  (180,254)

 

 

 

 

Net income (loss) allocated to limited assignees

$   (83,317)

 

$  (178,451)

 

 

 

 

Net income (loss) allocated to general partner

$   (842)

 

$    (1,803)

 

 

 

 

Net income (loss) per BAC

$      (.02)

 

$      (.03)

 

 

 

 























The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,
(Unaudited)


Series 17


2011


2010

 

 

 

 

 

Income

 

 

 

 

  Interest income

$      1,361

 

$      4,430

 

  Other income

     14,309

 

     11,561

 

 


     15,670

 


     15,991

 

Share of Income from Operating 
  Partnerships(Note D)


    227,646

 


    856,715

 

 

 

 

 

Expenses

 

 

 

 

  Professional fees

32,980

 

33,672

 

  Fund management fee, net (Note C) 

165,093

 

234,636

 

  General and administrative expenses

     17,291

 

     18,354

 

  


    215,364

 


    286,662

 

 

 

 

 

 

  NET INCOME (LOSS)

$     27,952

 

$    586,044

 

 

 

 

 

 

Net income (loss) allocated to limited assignees

$     27,672

 

$    580,184

 

 

 

 

 

 

Net income (loss) allocated to general partner

$       280

 

$      5,860

 

 

 

 

 

 

Net income (loss) per BAC

$        .01

 

$        .12

 

 

 

 

 

 






















The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,
(Unaudited)


Series 18


2011


2010

 

 

 

Income

 

 

  Interest Income

$       534

$      1,927

  Other income

     10,485

     27,276

 


     11,019


     29,203

Share of Income from Operating 
  Partnerships(Note D)


          -


          -

 

 

 

Expenses

 

 

  Professional fees

25,549

25,498

  Fund management fee, net (Note C) 

185,196

161,971

  General and administrative expenses

     14,260

     14,722

  


    225,005


    202,191

 

 

 

  NET INCOME (LOSS)

$  (213,986)

$  (172,988)

 

 

 

Net income (loss) allocated to limited assignees

$  (211,846)

$  (171,258)

 

 

 

Net income (loss) allocated to general partner

$    (2,140)

$    (1,730)

 

 

 

Net income (loss) per BAC

$      (.06)

$      (.05)

 

 

 

























The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF OPERATIONS


Nine Months Ended December 31,
(Unaudited)



Series 19


2011


2010

 

 

 

Income

 

 

  Interest income

$     16,482

$      6,184

  Other income

      314

     51,638

     16,796

     57,822

Share of Income from Operating 
  Partnerships(Note D)

   99,450

  1,514,380

 

 

 

Expenses

 

 

  Professional fees

22,681

29,884

  Fund management fee, net (Note C) 

99,763

104,216

  General and administrative expenses

     14,687

     14,682

  

    137,131

    148,782

 

 

 

  NET INCOME (LOSS)

$  (20,885)

$  1,423,420

 

 

 

Net income (loss) allocated to limited assignees

$  (20,676)

$  1,409,186

 

 

 

Net income (loss) allocated to general partner

$   (209)

$     14,234

Net income (loss) per BAC

$      (.01)

$        .35

 

 

 
























The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Nine Months Ended December 31, 2011
(Unaudited)

 




Assignees



General
Partner





Total

 

 

 

 

Partners' capital 
 (deficit)
  April 1, 2011



$(17,338,646)



$ (2,049,156)



$(19,387,802)

 

 

 

 

Distributions

(259,212)

(2,618)

(261,830)

 

 

 

 

Net income (loss)

   (110,763)

     (1,119)

   (111,882)

 

 

 

 

Partners' capital 
 (deficit),
  December 31, 2011



$(17,708,621)



$ (2,052,893)



$(19,761,514)

 

 

 

 



























The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Nine Months Ended December 31, 2011
(Unaudited)

 



Assignees

General
Partner

Total

Series 15

 

 

 

Partners' capital 
 (deficit)
  April 1, 2011



$ (3,381,790)



$ (359,603)



$ (3,741,393)

 

 

 

 

Distributions

-

-

-

 

 

 

 

Net income (loss)

    177,404

    1,792

   179,196

 

 

 

 

Partners' capital 
 (deficit),
  December 31, 2011



$ (3,204,386)



$ (357,811)



$ (3,562,197)

 

 

 

 

 

 

 

 

Series 16

 

 

 

Partners' capital 
 (deficit)
  April 1, 2011



$ (7,502,420)



$ (547,104)



$ (8,049,524)

 

 

 

 

Distributions

-

-

-

 

 

 

 

Net income (loss)

   (83,317)

    (842)

    (84,159)

 

 

 

 

Partners' capital 
 (deficit),
  December 31, 2011



$ (7,585,737)



$ (547,946)



$ (8,133,683)

 

 

 

 
















The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Nine Months Ended December 31, 2011
(Unaudited)

 



Assignees

General
Partner

Total

Series 17

 

 

 

Partners' capital 
 (deficit)
  April 1, 2011



$ (6,182,544)



$  (487,478)



$ (6,670,022)

 

 

 

 

Distributions

-

-

-

 

 

 

 

Net income (loss)

      27,672

       280

      27,952

 

 

 

 

Partners' capital 
 (deficit),
  December 31, 2011



$ (6,154,872)



$  (487,198)



$ (6,642,070)

 

 

 

 

 

 

 

 

Series 18

 

 

 

Partners' capital 
 (deficit)
  April 1, 2011



$ (4,679,384)



$  (360,628)



$ (5,040,012)

 

 

 

 

Distributions

-

-

-

 

 

 

 

Net income (loss)

   (211,846)

   (2,140)

   (213,986)

 

 

 

 

Partners' capital 
 (deficit),
  December 31, 2011



$ (4,891,230)



$  (362,768)



$ (5,253,998)

 

 

 

 


















The accompanying notes are an integral part of these condensed statements

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Nine Months Ended December 31, 2011
(Unaudited)

 



Assignees

General
Partner

Total

Series 19

 

 

 

Partners' capital 
 (deficit)
  April 1, 2011



$  4,407,492



$ (294,343)



$  4,113,149

 

 

 

 

Distributions

(259,212)

(2,618)

(261,830)

 

 

 

 

Net income (loss)

   (20,676)

     (209)

   (20,885)

 

 

 

 

Partners' capital 
 (deficit),
  December 31, 2011



$  4,127,604



$ (297,170)



$  3,830,434

 

 

 

 
































The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

 

2011

2010

Cash flows from operating activities:

 

 

 

 

 

   Net Income (Loss)

$  (111,882)

$  1,552,037

Adjustments to reconcile net income

(loss) to net cash (used in)

provided by operating activities

 

 

      Share of (Income) from 

Operating Partnerships


(800,440)


(2,636,120)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses

56,500

3,300

      Decrease (Increase) in other assets

61,538

(22,100)

     (Decrease) Increase in accounts
        payable affiliates


    207,603


    680,508

 

 

 

      Net cash (used in) provided by 
        operating activities


  (586,681)


  (422,375)

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of

Operating Partnerships


   798,656


  2,636,120

 

 

 

   Net cash provided by
     investing activities


   798,656


  2,636,120

 

 

 

Cash flows from financing activities:

 

 

 

 

 

   Distributions

(261,830)

(1,500,000)

 

 

 

   Net cash used in financing activities

(261,830)

(1,500,000)

 

 

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

(49,855)

713,745

 

 

 

Cash and cash equivalents, beginning

  5,463,659

  2,049,777

 

 

 

Cash and cash equivalents, ending

$  5,413,804

$  2,763,522

 

 

 




The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 15

 

2011

2010

Cash flows from operating activities:

 

 

 

 

 

   Net Income (Loss)

$ 179,196

$  (104,185)

   Adjustments to reconcile net income

(loss) to net cash (used in)

provided by operating activities

 

 

Share of (Income)from 

Operating Partnerships


(325,050)


(78,000)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses


10,000


(20,100)

Decrease (Increase) in other assets

69,038

1,100

     (Decrease) Increase in accounts
        payable affiliates


    29,752


    135,229

 

 

 

      Net cash (used in) provided by 
        operating activities


   (37,064)


   (65,956)

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of

Operating Partnerships

    325,050


     78,000

 

 

 

   Net cash provided by
     investing activities


    325,050


     78,000

 

 

 

Cash flows from financing activities:

 

 

 

 

 

   Distributions

          -

          -

 

 

 

   Net cash used in financing activities

          -

          -

 

 

 

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


287,986


12,044

 

 

 

Cash and cash equivalents, beginning

    299,446

    278,978

 

 

 

Cash and cash equivalents, ending

$    587,432

$    291,022

 

 

 

 


The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)


Series 16

 

2011

2010

Cash flows from operating activities:

 

 

 

 

 

   Net Income (Loss)

$ (84,159)

$ (180,254)

   Adjustments to reconcile net income

(loss) to net cash (used in)

provided by operating activities

 

 

      Share of (Income)from 

Operating Partnerships


(148,294)


(187,025)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses


31,500


5,000

Decrease (Increase) in other

assets

2,500

-

     (Decrease) Increase in accounts
        payable affiliates


   139,716


   148,519

 

 

 

      Net cash (used in) provided by 
        operating activities


  (58,737)


 (213,760)

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of

Operating Partnerships


   146,510


   187,025

 

 

 

   Net cash provided by
     investing activities


   146,510


   187,025

 

 

 

Cash flows from financing activities:

 

 

 

         -

         -

   Distributions

 

 

 

 

 

   Net cash used in financing activities

         -

         -

 

 

 

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

87,773

(26,735)

 

 

 

Cash and cash equivalents, beginning

   416,806

   416,557

 

 

 

Cash and cash equivalents, ending

$   504,579

$   389,822

 

 

 




The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 17

 

2011

2010

Cash flows from operating activities:

 

 

 

 

 

   Net Income (Loss)

$   27,952

$   586,044

   Adjustments to reconcile net income

(loss) to net cash (used in)

provided by operating activities

 

 

      Share of (Income) from 

Operating Partnerships

(227,646)

(856,715)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses


15,000


36,000

      Decrease (Increase) in other assets

-

(23,200)

     (Decrease) Increase in accounts
        payable affiliates


  (3,880)


   290,956

 

 

 

      Net cash (used in) provided by 
        operating activities


 (188,574)


    33,085

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of

Operating Partnerships

   227,646

   856,715

 

 

 

   Net cash provided by
     investing activities

   227,646

   856,715

 

 

 

Cash flows from financing activities:

 

 

 

 

 

   Distributions

         -

         -

 

 

 

   Net cash used in financing activities

         -

         -

 

 

 

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

39,072

889,800

 

 

 

Cash and cash equivalents, beginning

   328,413

   199,038

 

 

 

Cash and cash equivalents, ending

$  367,485

$ 1,088,838

 

 

 




The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 18

 

2011

2010

Cash flows from operating activities:

 

 

 

 

 

   Net Income (Loss)

$ (213,986)

$ (172,988)

   Adjustments to reconcile net income

(loss) to net cash (used in)

provided by operating activities

 

 

      Share of (Income) from 

Operating Partnerships


-


-

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses


-


7,000

      Decrease (Increase) in other assets

(10,000)

-

     (Decrease) Increase in accounts
        payable affiliates


   42,015


   105,804

 

 

 

      Net cash (used in) provided by 
        operating activities


(181,971)


  (60,184)

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of

Operating Partnerships


         -


         -

 

 

 

   Net cash provided by
     investing activities


         -


         -

 

 

 

Cash flows from financing activities:

 

 

 

 

 

   Distributions

         -

         -

 

 

 

   Net cash used in financing activities

         -

         -

 

 

 

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

(181,971)

(60,184)

 

 

 

Cash and cash equivalents, beginning

   293,045

   347,309

 

 

 

Cash and cash equivalents, ending

$   111,074

$   287,125

 

 

 

 

 

 




The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)


Series 19

 

2011

2010

Cash flows from operating activities:

 

 

 

 

 

   Net Income (Loss)

$   (20,885)

$  1,423,420

   Adjustments to reconcile net income

(loss) to net cash (used in)

provided by operating activities

 

 

      Share of (Income) from 

Operating Partnerships

(99,450)

(1,514,380)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses

-

(24,600)

Decrease (Increase) in other assets

-

-

     (Decrease) Increase in accounts
        payable affiliates


          -


          -

 

 

 

      Net cash (used in) provided by 
        operating activities


  (120,335)


  (115,560)

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of

Operating Partnerships


     99,450


  1,514,380

 

 

 

   Net cash provided by
     investing activities


     99,450


  1,514,380

 

 

 

Cash flows from financing activities:

 

 

 

 

 

   Distributions

  (261,830)

(1,500,000)

 

 

 

   Net cash used in financing activities

  (261,830)

(1,500,000)

 

 

 

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(282,715)


(101,180)

 

 

 

Cash and cash equivalents, beginning

  4,125,949

    807,895

 

 

 

Cash and cash equivalents, ending

$  3,843,234

$    706,715

 

 

 

 

 

 




The accompanying notes are an integral part of these condensed statements

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS
December 31, 2011

(Unaudited)

 

NOTE A - ORGANIZATION


Boston Capital Tax Credit Fund III L.P. (the "Fund") was formed under the laws of the State of Delaware as of September 19, 1991 for the purpose of acquiring, holding, and disposing of limited partnership interests in operating partnerships which will acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated low-income apartment complexes ("Operating Partnerships"). Effective as of June 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 III L.P., a Delaware limited partnership. The general partner of the general partner of the Fund is now BCA Associates Limited Partnership, a Massachusetts limited partnership, whose sole general partner is C&M Management, Inc., a Massachusetts corporation 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 various officers and employees of Boston Capital Partners, Inc. and its affiliates. The assignor limited partner is BCTC III Assignor Corp., a Delaware corporation which is wholly-owned by Herbert F. Collins and John P. Manning.


Pursuant to the Securities Act of 1933, the Fund filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective January 24, 1992 which covered the offering (the "Public Offering") of the Fund's beneficial assignee certificates ("BACs") representing assignments of units of the beneficial interest of the limited partnership interest of the assignor limited partner.  The Fund registered 20,000,000 BACs at $10 per BAC for sale to the public in one or more series.  On September 4, 1993 the Fund filed an amendment to Form S-11 with the Securities and Exchange Commission which registered an additional 2,000,000 BACs at $10 per BAC for sale to the public in one or more series. The registration for the additional BACs became effective on October 6, 1993. Offers and sales of BACs in Series 15 through 19 of the Fund were completed and the last of the BACs in Series 15, 16, 17, 18 and 19 were issued by the Fund on September 26, 1992, December 28, 1992, September 17, 1993, September 22, 1993, and December 17, 1993, respectively.  The Fund sold 3,870,500 of Series 15 BACs, for a total of $38,705,000; 5,429,402 of Series 16 BACs, for a total of $54,293,000; 5,000,000 of Series 17 BACs, for a total of $50,000,000; 3,616,200 of Series 18 BACs, for a total of $36,162,000; and 4,080,000 of Series 19 BACs, for a total of $40,800,000.  As of December 31, 2011 5,427,602 BACs in Series 16 are outstanding. The Fund issued the last BACs in Series 19 on December 17, 1993.  This concluded the Public Offering of the Fund.
















Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2011

(Unaudited)

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of December 31, 2011 and for the nine months then ended have been prepared by the Fund, without audit. The Fund accounts for its investments in Operating Partnerships using the equity method, whereby the Fund 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 Fund in acquiring the investments in the Operating Partnerships are capitalized to the investment account.  

The Fund'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 financial 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 notes thereto included in the Fund's Annual Report on Form 10-K.



























Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2011

(Unaudited)

NOTE C - RELATED PARTY TRANSACTIONS

The Fund has entered into several transactions with various affiliates of its general partner, including Boston Capital Holdings LP, Boston Capital Partners, Inc., and Boston Capital Asset Management Limited Partnership, as follows:

An annual fund management fee, based on .5 percent of the aggregate cost of all apartment complexes owned by the Operating Partnerships, has been accrued to Boston Capital Asset Management Limited Partnership.  Since reporting fees collected by the series were added to reserves and not paid to Boston Capital Asset Management Limited Partnership, the amounts accrued are not net of reporting fees received. The fund management fees accrued for the three months ended December 31, 2011 and 2010 are as follows:

        2011

        2010

Series 15

$ 46,983

$ 57,030

Series 16

77,025

115,311

Series 17

76,410

93,536

Series 18

66,783

66,783

Series 19

 38,250

 47,634

 

$305,451

$380,294

The fund management fees paid for the three months ended December 31, 2011 and 2010 are as follows:

 

2011

2010

Series 15

$  -

$       -

Series 16

-

-

Series 17

-

2,500

Series 18

-

-

Series 19

  38,250

  47,634

$  38,250

$  50,134

The fund management fees paid for the nine months ended December 31, 2011 and 2010 are as follows:

 

2011

2010

Series 15

$ 125,000

$  50,000

Series 16

130,000

200,000

Series 17

245,000

2,500

Series 18

-

100,000

Series 19

 114,750

 142,902

$ 614,750

$ 495,402

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2011

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At December 31, 2011 and 2010, the Fund had limited partnership interests in 135 and 157 Operating Partnerships, respectively, which own or are constructing apartment complexes. The breakdown of Operating Partnerships within the Fund at December 31, 2011 and 2010 is as follows:

 

2011

2010

Series 15

30

38

Series 16

38

44

Series 17

27

33

Series 18

24

24

Series 19

 16

 18

 

135

157

Under the terms of the Fund's investment in each Operating Partnership, the Fund is required to make capital contributions to the Operating Partnerships.  These contributions are payable in installments over several years upon each Operating Partnership achieving specified levels of construction and/or operations.  The contributions payable at December 31, 2011 and 2010 are as follows:

 

        2011

        2010

Series 15

$      -

$      -

Series 16

50,008

51,792

Series 17

22,798

22,798

Series 18

18,554

18,554

Series 19

      -

      -

 

$ 91,360

$ 93,144

During the nine months ended December 31, 2011 the Fund disposed of seventeen Operating Partnerships and received additional proceeds from one Operating Partnership disposed of in the prior year. A summary of the dispositions by Series for December 31, 2011 is as follows:

 

Operating Partnership Interest Transferred

 

Sale of Underlying Operating Partnership

 

Fund Proceeds from Disposition *

 

Gain/(Loss) on Disposition

Series 15

5

 

1

 

$

325,050

 

$

325,050

Series 16

5

 

-

 

 

146,510

 

 

148,294

Series 17

4

 

1

 

 

227,646

 

 

227,646

Series 18

-

 

-

 

 

-

 

 

-

Series 19

1

 

-

 

 

99,450

 

 

99,450

Total

15

 

2

 

$

798,656

 

$

800,440

* Fund proceeds from disposition does not include the following amount which was due to a writeoff of capital contribution payable of $1,784 for Series 16.

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2011

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

During the nine months ended December 31, 2010 the Fund disposed of thirteen Operating Partnerships. A summary of the dispositions by Series for December 31, 2010 is as follows:

 

Operating Partnership Interest Transferred

 

Sale of Underlying Operating Partnership

 

Fund Proceeds from Disposition

 

Gain/(Loss) on Disposition

Series 15

1

 

1

 

$

78,000

 

$

78,000

Series 16

1

 

1

 

 

187,025

 

 

187,025

Series 17

3

 

3

 

 

856,715

 

 

856,715

Series 18

1

 

1

 

 

-

 

 

-

Series 19

-

 

1

 

 

1,514,380

 

 

1,514,380

Total

6

 

7

 

$

2,636,120

 

$

2,636,120

 

The gain (loss) described above is for financial statement purposes only. There are significant differences between the equity method of accounting and the tax reporting of income and losses from Operating Partnership investments. The largest difference is the ability, for tax purposes, to deduct losses in excess of the Fund's investment in the Operating Partnership. As a result, the amount of gain recognized for tax purposes may be significantly higher than the gain recorded in the condensed financial statements.

The Fund's fiscal year ends March 31st 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 Fund within 45 days after the close of each Operating Partnerships quarterly period.  Accordingly, the current financial results available for the Operating Partnerships are for the nine months ended September 30, 2011.


Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2011

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)

 

        2011

        2010

 

 

 

Revenues

 

 

   Rental

$ 24,391,466

$ 29,535,632

   Interest and other

   832,050

  1,014,914

 

 

 

 

 25,223,516

 30,550,546

 

 

 

Expenses

 

 

   Interest

4,149,543

5,342,334

   Depreciation and amortization

6,586,246

7,913,404

   Operating expenses

 17,516,035

 21,025,396

 


 28,251,824


 34,281,134

 

 

 

NET LOSS

$(3,028,308)

$(3,730,588)

 

 

 

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.*



$(2,998,024)



$(3,693,282)

 

 

 

 

 

 

Net loss allocated to other 
   Partners


$   (30,284)


$   (37,306)

 

 

 

 

 

 

 

* Amounts include $2,998,024 and $3,693,282 for 2011 and 2010, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund 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 III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2011

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)

Series 15

 

        2011

        2010

 

 

 

Revenues

 

 

   Rental

$  4,397,416

$  5,037,500

   Interest and other

    83,887

    136,291

 

 

 

 

  4,481,303

  5,173,791

 

 

 

Expenses

 

 

   Interest

684,373

878,477

   Depreciation and amortization

1,171,193

1,340,405

   Operating expenses

  3,207,385

  3,688,740

 


  5,062,951


  5,907,622

 

 

 

NET LOSS

$  (581,648)

$  (733,831)

 

 

 

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.*



$  (575,832)



$  (726,493)

 

 

 

 

 

 

Net loss allocated to other 
   Partners


$    (5,816)


$    (7,338)

 

 

 

 

 

 

 

* Amounts include $575,832 and $726,493 for 2011 and 2010, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund 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 III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2011

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)

Series 16

 

        2011

        2010

 

 

 

Revenues

 

 

   Rental

$  6,602,152

$  8,444,979

   Interest and other

    228,396

    218,543

 

 

 

 

  6,830,548

  8,663,522

 

 

 

Expenses

 

 

   Interest

1,069,396

1,412,703

   Depreciation and amortization

1,818,669

2,164,646

   Operating expenses

  4,586,972

  5,942,302

 


  7,475,037


  9,519,651

 

 

 

NET LOSS

$  (644,489)

$  (856,129)

 

 

 

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.*



$  (638,044)



$  (847,568)

 

 

 

 

 

 

Net loss allocated to other 
   Partners


$    (6,445)


$    (8,561)

 

 

 

 

 

 

* Amounts include $638,044 and $847,568 for 2011 and 2010, respectively, of loss not recognized under the equity method of accounting.

 

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund 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 III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2011

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)

Series 17

 

        2011

        2010

 

 

 

Revenues

 

 

   Rental

$  6,443,794

$  8,182,673

   Interest and other

    179,070

    232,292

 

 

 

 

  6,622,864

  8,414,965

 

 

 

Expenses

 

 

   Interest

1,037,326

1,483,804

   Depreciation and amortization

1,557,317

2,194,539

   Operating expenses

  4,525,702

  5,764,447

 


  7,120,345


  9,442,790

 

 

 

NET LOSS

$ (497,481)

$(1,027,825)

 

 

 

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.*



$ (492,505)



$(1,017,546)

 

 

 

 

 

 

Net loss allocated to other 
   Partners


$    (4,976)


$   (10,279)

 

   

 

 

 

* Amounts include $492,505 and $1,017,546 for 2011 and 2010, respectively, of loss not recognized under the equity method of accounting.

 

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund 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 III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2011

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)

Series 18

 

        2011

        2010

 

 

 

Revenues

 

 

   Rental

$   4,480,877

$   4,350,889

   Interest and other

     250,647

     276,609

 

 

 

 

   4,731,524

   4,627,498

 

 

 

Expenses

 

 

   Interest

823,207

826,405

   Depreciation and amortization

1,369,551

1,245,953

   Operating expenses

   3,340,734

   3,327,020

 


   5,533,492


   5,399,378

 

 

 

NET LOSS

$   (801,968)

$   (771,880)

 

 

 

Net loss allocation to Boston  
   Capital Tax Credit Fund 
   III L.P.*



$   (793,948)



$   (764,161)

 

 

 

 

 

 

Net loss allocated to other 
   Partners


$     (8,020)


$     (7,719)

 

* Amounts include $793,948 and $764,161 for 2011 and 2010, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund 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 III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2011

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)

Series 19

 

        2011

        2010

 

 

 

Revenues

 

 

   Rental

$   2,467,227

$   3,519,591

   Interest and other

      90,050

     151,179

 

 

 

 

   2,557,277

   3,670,770

 

 

 

Expenses

 

 

   Interest

535,241

740,945

   Depreciation and amortization

669,516

967,861

   Operating expenses

   1,855,242

   2,302,887

 


   3,059,999


   4,011,693

 

 

 

NET LOSS

$   (502,722)

$   (340,923)

 

 

 

Net loss allocation to Boston  

   Capital Tax Credit Fund 
   III L.P.*



$   (497,695)



$   (337,514)

 

 

 

 

 

 

Net loss allocated to other 
   Partners


$     (5,027)


$     (3,409)

 

 

 

 

* Amounts include $497,695 and $337,514 for 2011 and 2010, respectively, of loss not recognized under the equity method of accounting.

The Fund accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Fund adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Fund 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 III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
December 31, 2011
(Unaudited)


NOTE E - TAXABLE LOSS

The Fund's taxable loss for the calendar year ended December 31, 2011 is expected to differ from its loss for financial reporting purposes.  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.  

NOTE F - INCOME TAXES

The Fund has elected to be treated as a pass-through entity for income tax purposes and, as such, is not subject to income taxes. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns. The Fund's federal tax status as a pass-through entity is based on its legal status as a partnership. Accordingly, the Fund is not required to take any tax positions in order to qualify as a pass-through entity. The Fund is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the Fund has no other tax positions which must be considered for disclosure.

NOTE G - SUBSEQUENT EVENT

The Fund has entered into an agreement to sell the interest in one Operating Partnership. The estimated sale price and other terms for the disposition of the Operating Partnership have been determined. The estimated proceeds to be received for the Operating Partnership is $450,000. There is no gain or loss expected to be recognized in the fourth quarter of fiscal year end 2012 in connection with this sale.

 

 

Item 2.  Management's Discussions and Analysis of Financial Condition and
Results of Operations


This Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements including our intentions, hopes, beliefs, expectations, strategies and predictions of our future activities, or other future events or conditions. These statements are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created by these acts. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including, for example, the factors identified in Part I, Item 1A. "Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended March 31, 2011. Although we believe that the assumptions underlying these forward-looking statements are reasonable, any of the assumptions could be inaccurate, and there can be no assurance that the forward-looking statements included in this Report will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved.

Liquidity

The Fund's primary source of funds is the proceeds of its Public Offering.  Other sources of liquidity will include (i) interest earned on capital contributions held pending investment and on working capital reserves and (ii) cash distributions from operations of the Operating Partnerships in which the Fund has invested and will invest.  Interest income is expected to decrease over the life of the Fund as capital contributions are paid to the Operating Partnerships and working capital reserves are expended. The Fund does not anticipate significant cash distributions from operations of the Operating Partnerships.

The Fund is currently accruing the fund management fee.  Fund management fees accrued during the quarter ended December 31, 2011 were $305,451 and total fund management fees accrued as of December 31, 2011 were $24,293,950. During the three and the nine months ended December 31, 2011, $38,250 and $614,750 of accrued fund management fees were paid. Pursuant to the Partnership Agreement, these liabilities will be deferred until the Fund receives proceeds from sales of the Operating Partnerships, which will be used to satisfy these liabilities. The Fund's working capital and sources of liquidity coupled with affiliated party liability accruals allow sufficient levels of liquidity to meet the third party obligations of the Fund.  The Fund is currently unaware of any trends which would create insufficient liquidity to meet future third party obligations of the Fund.

As of December 31, 2011, an affiliate of the general partner of the Fund advanced a total of $635,362 to the Fund to pay some operating expenses of the Fund, and to make advances and/or loans to Operating Partnerships. These advances are included in Accounts payable-affiliates. During the nine months ended December 31, 2011 there were no advances, however a payment in the amount of $158,334 was paid by Series 18. Below is a summary, by series, of the total advances made to date.

 

Nine Months Ended

Total

Series 15

$      -

$      -

Series 16

-

-

Series 17

-

635,362

Series 18

-

-

Series 19

      -

      -

 

$      -

$635,362

All payables to affiliates will be paid, without interest, from available cash flow or the proceeds of sales or refinancing of the Fund's interests in Operating Partnerships.

 

Capital Resources

The Fund offered BACs in a Public Offering declared effective by the Securities and Exchange Commission on January 24, 1992.  The Fund received $38,705,000, $54,293,000, $50,000,000, $36,162,000 and $40,800,000 representing 3,870,500, 5,429,402, 5,000,000, 3,616,200 and 4,080,000 BACs from investors admitted as BAC Holders in Series 15, Series 16, Series 17, Series 18, and Series 19, respectively.  The Public Offering was completed on December 17, 1993.

(Series 15)  The Fund commenced offering BACs in Series 15 on January 24, 1992.  Offers and sales of BACs in Series 15 were completed on September 26, 1992.  The Fund has committed proceeds to pay initial and additional installments of capital contributions to 68 Operating Partnerships in the amount of $28,257,701. Series 15 has since sold its interest in 38 of the Operating Partnerships.

During the quarter ended December 31, 2011, none of Series 15 net offering proceeds were used to pay capital contributions. No additional net offering proceeds remain to be used by the Fund to pay capital contributions to the Operating Partnerships that Series 15 has invested in as of December 31, 2011.

(Series 16)  The Fund commenced offering BACs in Series 16 on July 13, 1992. Offers and sales of BACs in Series 16 were completed on December 28, 1992. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 64 Operating Partnerships in the amount of $39,579,774. Series 16 has since sold its interest in 26 of the Operating Partnerships.

During the quarter ended December 31, 2011, none of Series 16 net offering proceeds were used to pay capital contributions.  Series 16 has contributions payable to 1 Operating Partnership in the amount of $50,008 as of December 31, 2011. The remaining contributions will be released to the Operating Partnership when it has achieved the conditions set forth in its partnership agreement.

(Series 17)  The Fund commenced offering BACs in Series 17 on January 24, 1993.  Offers and sales of BACs in Series 17 were completed on September 17, 1993. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 49 Operating Partnerships in the amount of $36,538,204. Series 17 has since sold its interest in 22 of the Operating Partnerships.

During the quarter ended December 31, 2011, none of Series 17 net offering proceeds were used to pay capital contributions.  Series 17 has contributions payable to 3 Operating Partnerships in the amount of $22,798 as of December 31, 2011. The remaining contributions as well as the escrowed funds will be released to the Operating Partnerships when they have achieved the conditions set forth in their partnership agreements.

(Series 18)  The Fund commenced offering BACs in Series 18 on September 17, 1993. Offers and sales of BACs in Series 18 were completed on September 22, 1993. The Fund has committed proceeds to pay initial and additional installments of capital contributions to 34 Operating Partnerships in the amount of $26,442,202. Series 18 has since sold its interest in 10 of the Operating Partnerships.

During the quarter ended December 31, 2011, none of Series 18 net offering proceeds were used to pay capital contributions.  Series 18 has contributions payable to 2 Operating Partnerships in the amount of $18,554 as of December 31, 2011. The remaining contributions will be released to the Operating Partnerships when they have achieved the conditions set forth in their partnership agreements.

(Series 19) The Fund commenced offering BACs in Series 19 on October 8, 1993. Offers and sales of BACs in Series 19 were completed on December 17, 1993.  The Fund has committed proceeds to pay initial and additional installments of capital contributions to 26 Operating Partnerships in the amount of $29,614,506. Series 19 has since sold its interest in 10 of the Operating Partnerships.

During the quarter ended December 31, 2011, none of Series 19 net offering proceeds were used to pay capital contributions. No additional net offering proceeds remain to be used by the Fund to pay capital contributions to the Operating Partnerships that Series 19 has invested in as of December 31, 2011.

Results of Operations

As of December 31, 2011 and 2010, the Fund held limited partnership interests in 135 and 157 Operating Partnerships, respectively.  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 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 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 of the Fund believes that there is adequate casualty insurance on the properties.

The Fund incurs a fund management fee to Boston Capital Asset Management Limited Partnership (formerly Boston Capital Communications Limited Partnership), or BCAMLP, in an amount equal to .5 percent of the aggregate cost of the apartment complexes owned by the Operating Partnerships, less the amount of various asset management and reporting fees paid by the Operating Partnerships. The fund management fees incurred and the reporting fees paid by the Operating Partnerships for the three and nine months ended December 31, 2011 are as follows:

 

3 Months
Gross Fund

Management Fee


3 Months
Reporting Fee

3 Months Fund
Management Fee

Net of Reporting Fee

Series 15

$ 46,983

$ 30,630

$ 16,353

Series 16

77,025

951

76,074

Series 17

76,410

20,120

56,290

Series 18

66,783

1,050

65,733

Series 19

 38,250

  6,500

31,750

$305,451

$ 59,251

$246,200

 

9 Months
Gross Fund

Management Fee


9 Months
Reporting Fee

9 Months Fund
Management Fee

Net of Reporting Fee

Series 15

$154,752

$ 56,186

$ 98,566

Series 16

269,716

90,400

179,316

Series 17

241,120

76,027

165,093

Series 18

200,349

15,153

185,196

Series 19

114,750

 14,987

 99,763

$980,687

$252,753

$727,934

The Fund's investment objectives do not include receipt of significant cash distributions from the Operating Partnerships in which it has invested or intends to invest.  The Fund'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.

 

Series 15

As of December 31, 2011 and 2010, the average Qualified Occupancy for the series was 100%.  The series had a total of 30 properties December 31, 2011, all of which were at 100% Qualified Occupancy.

For the nine month periods ended December 31, 2011 and 2010, Series 15 reflects a net loss from Operating Partnerships of $(581,648) and $(733,831), respectively, which includes depreciation and amortization of $1,171,193 and $1,340,405, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Beckwood Manor Eight Limited Partnership (Lakeside Apartments) is a 32-unit, senior property, located in Lake Village, Arkansas. The property receives rental assistance for 23 units and is generally able to rent these units. It remains difficult to rent the units that do not have rental assistance. There are several other low income tax credit developments in the area offering rental assistance, and the property's continued low occupancy is attributed to this competition. Management advertises the property in Lake Village's local paper and in several other regional newspapers. The property also distributes fliers to all surrounding communities; however, management believes word of mouth and referrals are the most effective forms of obtaining potential residents. In 2010, occupancy averaged 65%, up 8% from 2009 levels. Through December 2011, the property averaged 54% occupancy and is operating slightly below breakeven. The property operated at breakeven in 2010 by controlling operating expenses and has continued to minimize operating expenses in 2011 by completing a majority of work orders and property maintenance issues in-house. The operating general partner continues to fund operating deficits as needed. When necessary, the Operating Partnership has accrued management fees, all of which are due to the operating general partner, in order to fund operating deficits. In February 2011, the property experienced a common area fire on the second floor of the apartment complex. All displaced tenants relocated temporarily to live with family or moved into vacant units at the property. As of October 14, 2011, all displaced residents had moved back to the property. The cost of the fire damage is estimated to be approximately $200,000 and will be covered entirely by insurance proceeds. Repairs were completed and all units were on line by mid-November 2011. On November 12, 2011, another fire occurred at the property, resulting from a grease fire in a resident's kitchen. One apartment was a total loss and another suffered smoke and water damage. Management is awaiting the results of three separate repair estimates, as required by Rural Development. The mortgage payments, taxes, insurance, and accounts payable are all current. On December 31, 2010, the 15-year low income housing tax credit compliance period expired with respect to Beckwood Manor Eight.

Livingston Plaza, Limited (Livingston Plaza) is a 24-unit, family property located in Livingston, Texas. The property has struggled with occupancy levels for several years. Despite efforts to improve the reputation of the property and reduce resident turnover and evictions, occupancy averaged 52% in both 2011 and 2010. The property operated at about breakeven in 2011 and 2010 due to tightly controlled operating expenses. The continued low occupancy is partially due to economic conditions in the area and lack of qualified applicants. Management reports that trailer home ownership is very affordable in the area and often the monthly mortgage payment is in line with the rent at Livingston Plaza. There are also several competitive properties less than a mile from the property. Marketing consists of advertisements in local newspapers and distributing fliers to local businesses, churches, and schools. The mortgage payments, taxes, insurance, and accounts payable are current as of December 31, 2011. The operating general partner guarantee is unlimited in time and amount. On December 31, 2008, the 15-year low income housing tax credit compliance period expired with respect to Livingston Plaza. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership. It is unlikely that any proceeds will be available to the investment limited partners from the disposition of the property or partnership.

Greentree Apartments Limited (Sue-Ellen Apartments) is a 24-unit, family property located in Utica, OH. The operating general partner passed away in the second quarter of 2007 and his widow assumed the operating general partner responsibilities. During 2008, communication with the new operating general partner became extremely difficult while operations declined below breakeven. During the first quarter of 2009, the operating general partner learned that the current management company's contract had been terminated as of December 31, 2008. In addition, Rural Development accelerated the note and started foreclosure proceedings. Although the operating general partner appealed, the appeal was denied. The investment general partner learned of these developments from the real estate broker engaged by the operating general partner. The affiliated management company of a potential replacement operating general partner was placed on-site by Rural Development during May 2009. The potential operating general partner had been interested in acquiring the operating general partner and investment general partner interests but attempts by the potential operating general partner to develop a workout plan with Rural Development failed. The foreclosure was completed when the property was sold to a third party on June 8, 2011. The 15-year low income housing tax credit compliance period expired on December 31, 2009, and no recapture is anticipated. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, no gain on the foreclosure of the Operating Partnership was recorded as of June 30, 2011.

In April 2011, the operating general partner of Showboat Manor LDHA entered into an agreement to sell the property to a non-affiliated entity and the transaction closed on July 7, 2011. The sales price of the property was $818,348, which included the outstanding mortgage balance of approximately $772,998 and cash proceeds to the investment partnership of $11,000. Of the total proceeds received by the investment partnership, $6,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $5,000 will be paid to BCAMLP for expenses related to the sale, which includes third party legal costs. There are no remaining proceeds from the sale to be returned to cash reserves held by Series 15. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, no gain on the sale of the Operating Partnership was recorded as of September 30, 2011.

In February 2010, the operating general partner of Rainier Manor Associates LP approved an agreement to sell the property and the transaction closed on September 29, 2010. The sales price for the property was $3,300,000, which included the outstanding mortgage balance of approximately $3,293,443 and cash proceeds to the investment partnerships of $0. No proceeds were returned to cash reserves held by Boston Capital Tax Credit Fund II, LP Series 14 and Series 15, respectively. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, no gain on the sale of the Operating Partnership was recorded as of September 30, 2010.

In October 2010, the investment general partner transferred its interest in Hearthside II L.D.H.A. LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,698,026 and cash proceeds to the investment partnership of $120,000. Of the total proceeds received, $27,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $15,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $78,000 will be returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $78,000 as of December 31, 2010.

In February 2010, the operating general partner of North Prairie Manor L.D.H.A. LP approved an agreement to sell the property and the transaction closed on March 30, 2011. The sales price for the property was $939,566, which included the outstanding mortgage balance of approximately $829,566 and cash proceeds to the investment partnership of $69,038. Of the total proceeds received by the investment partnership, $3,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $15,000 will be paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $51,038 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. The sale proceeds were received April 2011; so a receivable in the amount of $69,038 was recorded for Series 15 as of March 31, 2011. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $51,038 as of March 31, 2011.

In March 2011, the investment general partner transferred its interest in Monark Properties, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $291,250 and cash proceeds to the investment partnership of $15,000. Of the total proceeds received, $7,500 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $7,500 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. There were no remaining proceeds returned to cash reserves held by Series 15. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, no gain or loss on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded as of March 31, 2011.

In October 2011, the investment general partner transferred its interest in Autumnwood LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,187,795 and cash proceeds to the investment partnership of $128,000. Of the total proceeds received, $6,924 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $5,000 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $116,076 will be returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $116,076 as of December 31, 2011.

In October 2011, the investment general partner transferred its interest in Brunswick LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $739,986 and cash proceeds to the investment partnership of $76,800. Of the total proceeds received, $3,321 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $5,000 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $68,479 will be returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $68,479 as of December 31, 2011.

In October 2011, the investment general partner transferred its interest in Lebanon II LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $855,578 and cash proceeds to the investment partnership of $76,800. Of the total proceeds received, $16,305 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $5,000 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $55,495 will be returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $55,495 as of December 31, 2011.

In December 2011, the investment general partner transferred its interest in Weedpatch Investment Group, CA LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,857,960 and cash proceeds to the investment partnership of $90,000. Of the total proceeds received, $5,000 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $85,000 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $85,000 as of December 31, 2011.

Series 16

As of December 31, 2011 and 2010, the average Qualified Occupancy for the series was 100%. The series had a total of 38 properties at December 30, 2011, all of which were at 100% Qualified Occupancy.

For the nine month periods ended December 31, 2011 and 2010, Series 16 reflects a net loss from Operating Partnerships of $(644,489) and $(856,129), respectively, which includes depreciation and amortization of $1,818,669 and $2,164,646, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Blairsville Rental Housing, Limited Partnership (Tan Yard Branch Apartments I) is a 24-unit Low Income Housing Tax Credit family property located in Blairsville, GA. Due to weak and declining economic conditions, which began in 2009 and have continued through 2011, many employers have closed or significantly reduced employee hours. As a result of a large portion of the tenant base being composed of hourly-wage employees, the number of move-outs and evictions has increased. Management reported that residents who are no longer able to afford rent continue to move back in with friends or family. In addition, other tenants requiring greater personal care have transferred to nursing home facilities, causing occupancy to decline further. Due to the property's rural location, traffic has been limited. Management has been aggressively marketing the community by distributing fliers throughout the area and having brightly colored directional signage installed. Additionally, a tenant referral program and move-in specials are being offered. With these programs in place, occupancy improved in the first quarter of 2011, averaging 86%, from a prior year annual average of 81%. Occupancy declined steadily throughout the second quarter of 2011, reaching a low of 63% in June 2011, before improving slightly in the third quarter, reaching 71% in September 2011. Occupancy remained stagnant in the fourth quarter, ending December 2011 at 71%. The investment general partner will continue to work with management in an effort to stabilize operations in 2012. The mortgage, real estate taxes, and insurance payments are current. On December 31, 2009, the 15-year low income housing tax credit compliance period expired with respect to Blairsville Rental Housing. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

St. Croix Commons Limited Partnership (St. Croix Commons Apartments) is a 40-unit family property located in Woodville, Wisconsin. The property is suffering from a weak rental market. Occupancy at the end of the fourth quarter of 2011 was 95%; however, low rental rates in the area continue to prevent the property from achieving breakeven operations. The operating general partner's operating deficit guarantee is unlimited in time and amount and he continues to fund operating deficits when necessary. The mortgage, taxes, insurance, and payables are current. On December 31, 2009, the 15-year low income housing tax credit compliance period expired with respect to St. Croix Commons. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

In August 2011, the investment general partner transferred its interest in Sable Chase of McDonough to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $3,077,178 and cash proceeds to the investment partnership of $150,000. Of the total proceeds received, $63,990 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $17,500 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $68,510 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $68,510 as of September 30, 2011.

In December 2010, the investment general partner transferred its interest in Branson Christian County II LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,050,618 and cash proceeds to the investment partnership of $59,920. Of the total proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $54,920 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $54,920 as of December 31, 2010.

In December 2008, the investment general partner of Davenport Housing Associates LP approved an agreement to sell the property and the transaction closed in April 2010. The sales price for the property was $4,190,000, which includes the outstanding mortgage balance of approximately $3,210,351 and cash proceeds to the investment limited partners of $147,105. Of the total proceeds received, $15,000 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $132,105 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $132,105 as of June 30, 2010.

Joiner Elderly, Limited Partnership (Joiner Manor) is a 25-unit development in Joiner, AR. Occupancy averaged 81% and 79% in 2010 and 2011 respectively. While operations were below breakeven in 2009, they rebounded to above breakeven in 2010 and 2011 despite the low occupancy levels. Occupancy hit a low of 56% in January 2011, but steadily improved to 100% as of December 2011. The management company increased advertising in the local paper and distributed fliers to combat the low occupancy. Management scaled back on incentives in the fourth quarter of 2011, and is currently offering reduced rates on units with no rental assistance. Management confirmed that the property received approval from the Arkansas Development Finance Authority and Rural Development in April 2011 to convert the property from senior tenancy to family. Management began advertising the tenancy change at the end of April 2011, and reported that the increase in occupancy at the property is largely due to this tenancy change. In addition to the increase in occupancy, Rural Development approved a $15 rent increase effective January 1, 2011, which also helped to improve operations at the property. Management confirmed that another rent increase of $20 was approved by Rural Development and will go into effect on January 1, 2012. The investment limited partner will continue to work with the operating general partner to find ways to improve operations. The real estate taxes, mortgage and insurance are all current. On December 31, 2007, the 15-year low income housing tax credit compliance period expired with respect to Joiner Elderly. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

In January 2011, the investment general partner transferred its interest in Deer Run LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $511,791 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $7,500 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $17,500 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $17,500 as of March 31, 2011.

Greenfield Properties, Limited Partnership (Greenfield Properties) is a 20-unit elderly property located in Greenfield, Missouri. Through the fourth quarter of 2011, the property operated above breakeven due to improved occupancy and controlled expenses. The property was 90% occupied as of December 31, 2011 and averaged 91% occupancy for the year. The operating general partner attributes increased occupancy to an improved local economy. The higher maintenance expenses associated with high unit turnover in late 2010 have been mitigated by the improved occupancy levels. All taxes, insurance and mortgage payments are current. On December 31, 2008, the 15-year low income housing tax credit compliance period expired with respect to Greenfield Properties, Limited Partnership. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership. Since the property's occupancy remained stable with above breakeven operations through December 31, 2011, the investment general partner will cease reporting for Greenfield Properties, LP subsequent to December 31, 2011.

In April 2011, the investment general partner transferred its interest in Lawrenceville Manor LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,340,119 and cash proceeds to the investment partnership of $60,000. Of the total proceeds received, $5,000 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $55,000 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a partner interest pledge agreement with the Operating Partnership for receipt of a residual payment. Under the terms of the partner interest pledge agreement, if the property owned by the Operating Partnership is sold, within 5 years from the initial transfer date, there would be a residual payment of up to $200,000 distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $55,000 as of June 30, 2011. In addition, equity outstanding for the Operating Partnership in the amount of $1,784 was recorded as gain on the sale of the Operating Partnership as of June 30, 2011.

In June 2011, the investment general partner transferred its interest in Victoria Pointe RRH to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,374,232 and cash proceeds to the investment partnership of $28,000. Of the total proceeds received, $5,000 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $23,000 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 5 years from the initial transfer date, there would be a residual payment of up to $75,000 distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $23,000 as of June 30, 2011.

In July 2011, the investment general partner transferred its interest in Haynes House Associates II LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $7,853,800 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $10,000 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. No remaining proceeds were returned to cash reserves held by Series 16. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, no gain on the sale of the Operating Partnership was recorded as of September 30, 2011.

In August 2011, the investment general partner transferred its interest in Cedar Trace L.D.H.A. LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $471,680 and cash proceeds to the investment partnership of $1,500. Of the total proceeds received, $1,500 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. There were no remaining proceeds returned to cash reserves held by Series 16. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, no gain on the sale of the Operating Partnership was recorded as of September 30, 2011.

Meadows of Southgate L.D.H.A., LP (Meadows of Southgate) is an 83-unit elderly property located in Southgate, Michigan. During the fourth quarter of 2011 the property continued to operate below breakeven largely due to ongoing occupancy challenges and a weak rental market. As of December 2011, the property was 53% occupied, with an annual average occupancy of 57%. The management agent, an affiliate of the operating general partner, continues to focus on improving occupancy through curb appeal enhancements, new marketing initiatives, and expanded leasing office hours of operation. The investment general partner will continue to monitor occupancy and operations. All real estate tax, mortgage, and insurance payments are current. On December 31, 2009, the 15-year low income housing tax credit compliance period expired with respect to Meadows of Southgate. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

Series 17

As of December 31, 2011 and 2010, the average Qualified Occupancy for the series was 100%.  The series had a total of 27 properties at December 31, 2011, all of which were at 100% Qualified Occupancy.

For the nine month periods ended December 31, 2011 and 2010, Series 17 reflects a net loss from Operating Partnerships of $(497,481) and $(1,027,825), respectively, which includes depreciation and amortization of $1,557,317 and $2,194,539, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Skowhegan Housing, LP (West Front Residence) is a 30-unit, 100% LIHTC property located in Skowhegan, Maine. The property operated below breakeven through the fourth quarter of 2011 due to low rental rates and a high interest rate on the debt. The property was 93% occupied as of December 31, 2011. Management has proposed rent increases in its 2012 budget to partially offset high debt service and they are awaiting approval of the budget by the operating general partner. As of the end of the fourth quarter of 2011, the mortgage and insurance payments are current. Real estate taxes are delinquent. On October 11, 2011, the lender issued a notice of default due to unpaid taxes, delays in past insurance payments, and underfunded tax, insurance, and replacement reserve escrow accounts. On November 11, 2011, the investment limited partner issued a letter to the operating general partner stating that they are in violation of the Partnership Agreement for failure to advance funds to meet operating expenses and debt service, including replacement reserves, as the operating general partner's operating deficit guaranty is unlimited in time and amount. As of the end of the fourth quarter of 2011, the insurance payment issue has been resolved and the operating general partner has submitted a payment plan to the lender to address the remaining default issues. The operating general partner is awaiting the lender's decision regarding the plan. The investment limited partner will continue to stress to the operating general partner that all taxes must be paid when due and all reserves must be fully funded. On December 31, 2008, the 15-year low income housing tax credit compliance period expired with respect to Skowhegan Housing, LP. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

Green Acres Limited Partnership (Green Acres Estates) is a 48-unit (of which 20 are tax credit units) property located in West Bath, Maine. The property operated below breakeven through the fourth quarter of 2011 due to low occupancy, high maintenance expenses, and a high interest rate on the debt. The property was 75% occupied as of December 31, 2011 as it continues to be challenged by its poor condition, the lack of available rent-ready units, and its isolated location. Management indicated that the closing of the nearby Brunswick Naval Air Station in May 2011 has affected occupancy through subsequent high local unemployment and relocation of some tenants. Higher maintenance expenses are related to management's efforts to turn over additional units. Though still high, bad debt has improved since 2010. Management is working to improve collections and the initial resident screening process. As of the end of the fourth quarter of 2011, the mortgage and insurance payments are current. Real estate taxes are delinquent. On October 11, 2011, the lender issued a notice of default due to unpaid taxes, delays in past insurance payments, and underfunded tax, insurance, and replacement reserve escrow accounts. On November 11, 2011, the investment limited partner issued a letter to the operating general partner stating that they are in violation of the Partnership Agreement for failure to advance funds to meet operating expenses and debt service, including replacement reserves, as the operating general partner's operating deficit guaranty is unlimited in time and amount. As of the end of the fourth quarter of 2011, the insurance payment issue has been resolved and the operating general partner has submitted a payment plan to the lender to address the remaining default issues. The operating general partner is awaiting the lender's decision regarding the plan. The investment limited partner will continue to stress to the operating general partner that all taxes must be paid when due and all reserves must be fully funded. On December 31, 2009, the 15-year low income housing tax credit compliance period expired with respect to Green Acres Limited Partnership. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership

In June 2011, the investment general partner transferred its interest in Park Place II, Limited to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,284,456 and cash proceeds to the investment partnership of $23,000. Of the total proceeds received, $5,000 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $18,000 were returned to cash reserves held by Series 17. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a RRN with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 5 years from the initial transfer date, there would be a residual payment of up to $75,000 distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $18,000 as of June 30, 2011.

In July 2010, the investment general partner transferred its interest in Palmetto Properties LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,525,467 and cash proceeds to the investment partnership of $1,000. Of the total proceeds received, $1,000 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. No proceeds were returned to cash reserves held by Series 17. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, no gain on the sale of the Operating Partnership was recorded as of September 30, 2010.

In December 2006, the investment general partner of Boston Capital Tax Credit Fund II - Series 14, Series 17 and Boston Capital Tax Credit Fund IV - Series 20 transferred 33% of their interest in College Greene Rental Associates Limited Partnership to entities affiliated with the operating general partners for their assumption of one third of the outstanding mortgage balance. The cash proceeds received by Series 14, Series 17, and Series 20 were $25,740, $7,919, and $65,341, respectively. Of the proceeds received, $1,950, $599, and $4,951 for Series 14, Series 17, and Series 20, respectively, was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds received by Series 14, Series 17, and Series 20 of $23,790, $7,320 and $60,390, respectively, were applied against the investment limited partners' investment in the Operating Partnership in accordance with the equity method of accounting. In April 2010, the investment limited partner transferred 49% of its interest for $68,174, $20,977, and $173,058 for Series 14, Series 17 and Series 20, respectively. Of the proceeds received, $7,000, $3,400 and $15,000 for Series 14, Series 17 and Series 20, respectively, was paid to BCAMLP for expenses related to the transfer. The remaining proceeds of $61,174, $17,577 and $158,058, respectively, were returned to the cash reserves held by Series 14, Series 17 and Series 20, respectively. The proceeds were allocated to the investment limited partnerships based on their original equity investments in the Operating Partnership. The remaining investment limited partner interest was transferred on March 31, 2011. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $61,174, $17,577 and $158,058, respectively, for BCTC II Series 14, Series 17, and BCTC IV Series 20, as of March 31, 2011.

In June 2011, the operating general partner of Cypress Pointe LP entered into an agreement to sell the property to a non-affiliated entity and the transaction closed on June 21, 2011. The sales price of the property was $3,320,000, which included the outstanding mortgage balance of approximately $2,438,528 and cash proceeds to the investment partnership of $181,310. Of the total proceeds received by the investment partnership, $45,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $15,000 will be paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds of approximately $121,310 were returned to cash reserves held by Series 17. Of which, $25,000 is set aside for 6 months from the date of sale to provide for any liabilities that may arise in accordance with the agreement to sell the property. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In September 2011, the investment partnership received its share of the Operating Partnership's cash account in the amount of $12,836, which was returned to the cash reserves held by Series 17. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $109,146 as of September 30, 2011.

In September 2008, the operating general partner of Crofton Associates I, Limited Partnership approved an agreement to sell the property to an entity affiliated with the operating general partner and the transaction closed on December 21, 2010. The sales price for the property was $823,333 which includes the outstanding mortgage balance of approximately $746,333 and cash proceeds to the investment partnership of $73,150. Of the total proceeds received by the investment partnership, $7,500 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $65,650 were returned to cash reserves held by Series 17. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $65,650 as of December 31, 2010.

In September 2008, the operating general partner of Hickman Associates II, Limited Partnership approved an agreement to sell the property to an entity affiliated with the operating general partner and the transaction closed on December 7, 2010. The sales price for the property was $556,597, which included the outstanding mortgage balance of approximately $495,597 and cash proceeds to the investment partnership of $57,950. Of the total proceeds received by the investment partnership, $7,500 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $50,450 were returned to cash reserves held by Series 17. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $50,450 as of December 31, 2010.

In May 2009, the investment general partner of Gallaway Associates LP approved an agreement to sell the property and the transaction closed on June 29, 2010. The sales price for the property was $1,109,173, which includes the outstanding mortgage balance of approximately $1,001,173 and cash proceeds to the investment limited partners of $106,560. Of the total proceeds received, $3,960 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $15,000 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $87,600 were returned to cash reserves held by Series 17. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. The sale proceeds were received on July 1, 2010; so a receivable in the amount of $87,600 has been recorded for Series 17 as of June 30, 2010. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $87,600 as of June 30, 2010.

In July 2010, the investment general partner transferred its interest in Sixth Street Partners, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $2,030,745 and cash proceeds to the investment partnership of $684,000. Of the total proceeds received, $30,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $56,362 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $597,638 were returned to cash reserves held by Series 17. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $597,638 as of September 30, 2010.

In December 2010, the investment general partner transferred its interest in Artesia Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,344,488 and cash proceeds to the investment partnership of $42,800. Of the total proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $37,800 were returned to cash reserves held by Series 17. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $37,800 as of December 31, 2010.

In April 2011, the investment general partner transferred its interest in Lee Terrace LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,411,220 and cash proceeds to the investment partnership of $60,000. Of the total proceeds received, $5,000 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $55,000 were returned to cash reserves held by Series 17. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a partner interest pledge agreement with the Operating Partnership for receipt of a residual payment. Under the terms of the partner interest pledge agreement, if the property owned by the Operating Partnership is sold, within 5 years from the initial transfer date, there would be a residual payment of up to $200,000 distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $55,000 as of June 30, 2011.

In June 2011, the investment general partner transferred its interest in Seabreeze Manor RRH Limited to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,175,097 and cash proceeds to the investment partnership of $23,000. Of the total proceeds received, $5,000 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $18,000 were returned to cash reserves held by Series 17. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a RRN with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 5 years from the initial transfer date, there would be a residual payment of up to $75,000 distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $18,000 as of June 30, 2011.

In November 2011, the investment general partner transferred its interest in Midland Housing LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $763,796 and cash proceeds to the investment partnership of $55,000. Of the total proceeds received, $20,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $7,500 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $27,500 were returned to cash reserves held by Series 17. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $27,500 as of December 31, 2011.

Series 18

As of December 31, 2011 and 2010 the average Qualified Occupancy for the series was 100%.  The series had a total of 24 properties at December 31, 2011, all of which were at 100% Qualified Occupancy.

For the nine month periods ended December 31, 2011 and 2010, Series 18 reflects a net loss from Operating Partnerships of $(801,968) and $(771,880), respectively, which includes depreciation and amortization of $1,369,551 and $1,245,953, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Lakeview Meadows II L.D.H.A. Limited Partnership (Lakeview Meadows II) is a 60-unit, elderly property located in Battle Creek, Michigan. Through December 31 of 2011, the property continues to operate above breakeven. As of December 2011, the property was 95% occupied, with a 94% average occupancy for the year. The investment general partner will continue to monitor occupancy and operations. All real estate tax, mortgage, and insurance payments are current. On December 31, 2008, the 15-year low income housing tax credit compliance period expired with respect to Lakeview Meadows II L.D.H.A. Limited Partnership. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership. Should the property's occupancy remain stable with above breakeven operations through December 31, 2011, the investment general partner will cease reporting for Lakeview Meadows II subsequent to December 31, 2011.

Natchitoches Elderly Apartments LP (Natchitoches Seniors Apartments) is a 40-unit property located in Natchitoches, Louisiana. The property operated below breakeven in 2010 due to low occupancy of 84% and high operating expenses. Occupancy increased throughout 2011 and ended the year at 93%, largely due to the efforts of a new management team. Despite the improvement in occupancy, the property continues to operate below breakeven. All real estate tax, mortgage, and insurance payments are current. On December 31, 2009, the 15-year low income housing tax credit compliance period expired with respect to Natchitoches Elderly Apartments LP. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

Newton I, Limited Partnership (Newton Plaza Apartments) is a 24-unit family development in Newton, Iowa. Occupancy has trended downward since 2006, and the increased vacancy along with high operating expenses has caused below breakeven operations. In 2010, management hired a new on-site manager to aid in stabilizing operations, and refocused its marketing efforts outside the local area. However, resident issues caused occupancy at the property to further decline. Average occupancy for 2010 was 84%. Through the fourth quarter of 2011, average occupancy improved slightly to 88%. However, the property continued to operate below breakeven. Management is considering changing the name of the property in the hopes of improving the reputation of the site and attracting a better pool of applicants. On December 31, 2009, the 15-year low income housing tax credit compliance period expired with respect to Newton I. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

Bear Creek of Naples (Bear Creek Apartments) is a 120-unit family development located in Naples, Florida. Occupancy remained strong in the fourth quarter of 2011, with December occupancy ending at 93%. However, the property continued to operate below breakeven through the fourth quarter because of high administrative, maintenance, and real estate tax expenses as well as a court ordered special assessment fee. Administrative expenses were high as a result of costly legal fees associated with the delinquent mortgage. Additionally, administrative and maintenance expenses were high as money was spent on advertising the property and turning the units for incoming residents. Management continues to run advertisements in the local newspaper and to utilize signs in front of the property displaying rents to drive-by traffic as the property is on a main road. The on-site manager continues to run a strong resident retention program to reduce turnover costs. The program includes various social functions as well as a resident referral program and newsletter. The property's insurance payments are current but the real estate taxes and mortgage are delinquent. The local tax authority has issued a tax certificate for the delinquent taxes, which will accrue interest until paid. The operating general partner has three years to pay the delinquent taxes before the property goes to tax sale. The operating general partner paid the 2010 real estate taxes in the first quarter of 2011, paid the 2011 real estate taxes in November 2011 and anticipates paying the 2009 real estate taxes in early 2012, which is within the allotted three year deadline before the property could face a tax sale. In addition to the delinquent 2009 taxes, the mortgage is delinquent as the operating general partner stopped making mortgage payments in June 2010 in an attempt to focus the lender's attention on the property. The operating general partner was attempting to force the lender to reconsider their previous decision to reject any workout plan. In the third quarter 2010, the lender initiated foreclosure proceedings. During the proceedings, the operating general partner argued that a foreclosure would terminate the Operating Partnership's Land Use Restriction Agreement and do a disservice to the community by eliminating the stipulation that the property remain affordable. This strategy was successful in delaying foreclosure as the court issued a denial of the lender's motion to appoint a receiver on September 20, 2010. During the second quarter of 2011, the operating general partner discussed with the investment limited partner whether the Operating Partnership should declare bankruptcy in order to delay a foreclosure and to maintain control of the property. The investment general partner advised the operating general partner not to file for bankruptcy. However, on June 6, 2011 Bear Creek of Naples, Ltd. filed for Chapter 11 bankruptcy. Authority to do so was vested solely with the operating general partner; the investment limited partner did not consent to this action. The court ordered a monthly "special assessment" payment of $20,000 to the lender starting in July 2011. There was a bankruptcy hearing and meeting of creditors on September 15, 2011. On December 13, 2011, there was another hearing with regard to a motion to reach an agreement on the appraised value of the property. This hearing is scheduled to resume in late March 2012. Once the value is determined, a new monthly payment of principal and interest will be calculated. Additionally, once a value is determined, the investment limited partner can attempt to value and sell its interests in the Operating Partnership. The investment general partner will continue to monitor the process. On December 31, 2009, the 15-year low income housing tax credit compliance period expired with respect to Bear Creek of Naples. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

Parvin's L.P. (Parvin's Branch Townhouses) is a 24-unit family property located in Vineland, New Jersey. In 2010, occupancy averaged 82%, and the property continued to operate below breakeven. In 2011, occupancy increased to 83%, but the property continues to operate below breakeven. The property has experienced significant collection issues due to the current tenant profile and the nature of eviction laws in the State of New Jersey. According to management, evictions can take up to 6 months to fully process in the State of New Jersey. The operating general partner continues to fund operating deficits as needed. The first mortgage matured in July 2009. Mortgage payments were made during the negotiating period, to keep the loan current. The operating general partner renegotiated the original loan effective April 30, 2010. This loan modification resulted in decreased interest and reduced monthly payments. The loan was extended three years and matures on March 27, 2013. On December 31, 2008, the 15-year low income housing tax credit compliance period expired with respect to Parvin's L.P. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

In August 2011, the operating general partner of Parvin's Limited Partnership approved an agreement to sell the property to a non-affiliated entity and the transaction was scheduled to close in December 2011 but was extended to January 31, 2012. The sales price for the property is $900,000, which includes the outstanding mortgage balance of approximately $302,715 and estimated cash proceeds to the investment partnership of $450,000. Of the estimated proceeds to be received by the investment partnership, $445,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $5,000 will be paid to BCAMLP for expenses related to the sale, which includes third party legal costs. No proceeds will be returned to cash reserves held by Series 18.

In March 2010, the operating general partner of Preston Wood Associates LP approved an agreement to sell the property and the transaction closed on August 9, 2010. The sales price for the property was $992,000, which included the outstanding mortgage balance of approximately $449,928 and cash proceeds to the investment partnership of $7,500. Of the total proceeds received, $7,500 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. No proceeds were returned to cash reserves held by Series 18. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, no gain on the sale of the Operating Partnership was recorded as of September 30, 2010.

Humboldt I, LP (Briarwood Apartments) is a 20-unit property located in Humboldt, IA. Operations have struggled at the property for the past several years due to low occupancy and high maintenance expenses related to resident turnover. Lack of cash flow and withdrawals to finance capital expenditures have resulted in an underfunding of the replacement reserve escrow. Historical and ongoing challenges cited by management include problem tenants that require eviction, difficulty attracting quality tenants, and the poor state of the local economy. Management relies heavily on outside contacts and referrals from the local housing authority, but also runs advertisements on a weekly basis in a free weekly advertiser that is distributed throughout town. Advertising has been expanded into surrounding towns to increase interest in the property. The property is operating under a Servicing Workout Plan approved by Rural Development on September 28, 2009. The Plan aims to fully fund the replacement reserve escrow, pay down accounts payable, and increase occupancy. Average occupancy in 2010 was 82%, and the property operated at breakeven. Through the fourth quarter of 2011, average occupancy was 92%. As of December 2011 the property was 100% occupied and was operating above breakeven. On December 31, 2010, the 15-year low income housing tax credit compliance period expired with respect to Humboldt I, LP. The mortgage, taxes, and insurance are current.

Marengo Park Apartments LP (West Pine Homes) is a 24-unit property located in Marengo Park, IA. Occupancy has historically been an issue at this property, mainly due to evictions for nonpayment of rent and residents vacating because of job losses. The property is operating under a Servicing Workout Plan approved by Rural Development on March 3, 2009, which aims to fund the replacement reserves, make payables current, and resolve capital improvement issues. In the summer of 2010 the operating general partner hired a new property manager and changed the name of the community to West Pine Homes with the hopes of improving the reputation of the property. Current marketing includes advertising on Rent.com, advertising in the Local Free Shopper (which covers three cities/towns), posting fliers in the local community and frequent contacts with local agencies, as well as 'for rent' signs located on the property. Occupancy averaged 76% in 2010 and the property operated slightly below breakeven. Through the fourth quarter of 2011, occupancy averaged 83%. The property was 88% occupied as of December 2011 and continued to operate slightly below breakeven. Accounts payable remain high in 2011, and have increased from 2010. Continued below breakeven operations have hindered the operating general partner's ability to pay down these expenses. The investment general partner intents to continue to work closely with the operating general partner until occupancy improves and operations stabilize. On December 31, 2009, the 15-year low income housing tax credit compliance period expired with respect to Marengo Park Apartments. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

In May 2010, the investment general partner of Series 18 and Boston Capital Tax Credit Fund IV LP - Series 20, respectively, transferred their interests in Evergreen Hills Associates, Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $2,635,694 and cash proceeds to the investment partnerships of $29,680 and $12,720 in Series 18 and Series 20, respectively. Of the total proceeds received, $22,680 and $9,720, for Series 18 and Series 20, respectively, represents reporting fees due to an affiliate of the investment partnerships and the balance represents proceeds from the transfer. Of the remaining proceeds, $7,000 and $3,000, for Series 18 and Series 20, respectively, was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. No proceeds were returned to cash reserves held by Series 18 and Series 20, respectively. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, no gain on the sale of the Operating Partnership was recorded as of June 30, 2010.

Series 19

As of December 31, 2011 and 2010 the average Qualified Occupancy for the series was 100%.  The series had a total of 16 properties at December 31, 2011, all of which were at 100% Qualified Occupancy.

For the nine month periods ended December 31, 2011 and 2010, Series 19 reflects a net loss from Operating Partnerships of $(502,722) and $(340,923), respectively, which includes depreciation and amortization of $669,516 and $967,861, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Carrollton Villa, L.P. (Meadow Ridge Apartments), is a 35-unit family project located in Carrollton, Missouri. The property has historically operated below breakeven, due to low rental rates. The property also suffers from high operating expenses, specifically utilities. Over the past six years the City of Carrollton has dramatically increased water and sewer rates to cover the repair of water lines. Water and sewer rates have increased over 300% from 2005 levels. In 2010, the average annual occupancy was 99%. Occupancy remained consistently high through the fourth quarter of 2011, averaging 99%. Despite high occupancy, the property has continued to operate below breakeven. To alleviate the pressure on cash flow, the lender agreed to make the mortgage a cash flow only mortgage in 2004. This has allowed the property to reduce operating deficits. Also, the maturity dates for the first and second mortgages were extended from December 2008 and November 2008 to December 2013 and November 2013, respectively. The real estate taxes, mortgage and insurance are all current. Operating deficits continue to be funded through operating general partner contributions. On December 31, 2009, the 15-year low income housing tax credit compliance period expired with respect to Carrollton Villas. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

Forest Associates Limited (Sharon Apartments) is a 24-unit apartment complex for families located in Forest, OH. The operating general partner passed away in the second quarter of 2007 and his widow assumed the operating general partner responsibilities. During 2008, communication with the new operating general partner became extremely difficult. The operations declined and the property operated below breakeven for 2008 with occupancy ending at 63% for December 2008. During the first quarter of 2009, the investment general partner learned that the current management company's contract had been terminated as of December 31, 2008. In addition, Rural Development accelerated the note and started foreclosure proceedings. Although the operating general partner appealed, the appeal was denied. The investment general partner learned of these developments from the real estate broker engaged by the operating general partner. The affiliated management company of a potential replacement operating general partner was placed on-site by Rural Development during May 2009. The potential operating general partner had been interested in acquiring the operating general partner and investment general partner interests, but attempts by the potential operating general partner to develop a workout plan failed and Rural Development foreclosed on the property on September 16, 2011. On December 31, 2010, the 15-year low income housing tax credit compliance period expired with respect to Forest Associates. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, no gain on the foreclosure of the Operating Partnership was recorded as of December 31, 2011.

Jeremy Associates, LP (Coopers Crossing Apartments) is a 93-unit family development located in Las Colinas, Texas. Despite an average occupancy of 99% in 2010, the property continued to operate below breakeven due to high operating expenses. Rental revenues increased in 2010, which allowed for a decrease in the amount of cash flow loss from prior years. Occupancy continues to be strong and was 99% as of December 31, 2011. Operating expenses are high mainly due to high maintenance costs as a result of severe physical deficiencies in a number of buildings on site. Since construction, a number of the buildings have had differential settlement issues resulting in cracked floor slabs, cracked brick veneer, cracking windows and doors and sagging balconies. These concerns have been addressed on an ongoing basis via advances by the operating general partner. Cost control efforts include staffing reduction, reduced marketing and the shutting down of one boiler during warmer months. The operating general partner continues to fund operating deficits despite the expiration of the operating deficit guarantee. So far the operating general partner has advanced over $2,000,000 for repairs and operating deficits. The mortgage, trade payables, property taxes and insurance are current. The low income housing tax credit compliance period expired on December 31, 2010. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

Sherwood Knoll L.P. (Sherwood Knoll Apartments) is a 24-unit project in Rainsville, Alabama. Occupancy averaged 95% and 91% in 2010 and 2011 respectively. The property operated below breakeven in each of those years. In order to improve occupancy and increase traffic at the property, management has been advertising in the local newspaper as well as posting fliers throughout the immediate area. A new site manager was hired in the second quarter of 2011, and regional management reports that she continues to do a good job and is proving to be very effective at collecting current and delinquent rents. To assist in improving property operations, Rural Development approved a $10 rent increase effective January 1, 2011, with another rent increase of $15 approved to begin January 1, 2012. The rent increase along with a rise in occupancy should help to improve property operations. The investment limited partner intends to continue to work with the operating general partner to bring operations back above breakeven in 2012. The operating deficit guarantee is unlimited in time and amount. The real estate taxes, mortgage and insurance are all current. On December 31, 2008, the 15-year low income housing tax credit compliance period expired with respect to Sherwood Knoll, L.P. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

Northpointe, L.P. (Northpointe Apartments) is a 158-unit family property located in Kansas City, MO. In 2009 and 2010, despite averaging 92% occupancy, the property operated below breakeven. Rents have been kept below the maximum allowable to remain competitive with two nearby tax credit properties developed within the past five years. Occupancy in 2011 averaged 91% for the year, with operations remaining below breakeven status. Move-outs continue due to the struggling local economy. The main reason for residents moving out is that they cannot afford to pay the rent or eviction for non-payment. Rental rates remain insufficient to cover expenses. The operating general partner along with management continues to advertise in For Rent Magazine, online, and has temporarily reduced selected one and two bedroom rents in order to improve occupancy. The operating general partner and investment general partner have explored refinancing and disposition options, but the significant prepayment penalty of $770,000 associated with the debt has prevented a sale or refinance from being a feasible option. The operating general partner plans to continue funding the property to the best of his ability until the mortgage maturity date of August 2014. Most recently, the operating general partner contacted the lender to see if they could modify the loan terms during the winter months by delaying payment requirements to a later date. Unfortunately, the lender has not been responsive to the request. The property's mortgage, real estate taxes and insurance payments are all current through December, 2011. On December 31, 2009, the 15-year low income housing tax credit compliance period expired with respect to Northpointe, LP. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

In February 2010, the investment general partner entered into an agreement to transfer its interest in Ankeny Housing Associates Two LP to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $2,566,333 and cash proceeds to the investment partnership of $1,544,780. The transaction closed as of April 2010. Of the total proceeds received, $10,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $20,400 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $1,514,380 were returned to cash reserves held by Series 19. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $1,514,380 as of June 30, 2010.

In October 2010, the operating general partner of Vistas Associates LP approved an agreement to sell the property to a non-affiliated entity and the transaction closed on January 31, 2011. The sales price for the property was $8,450,000, which included the outstanding mortgage balances of approximately $4,575,943 and cash proceeds to the investment partnership of $2,750,000. Of the proceeds received by the investment partnership, $25,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $15,000 will be paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $2,710,000 were returned to cash reserves held by Series 19. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In March 2011, the investment partnership received additional proceeds for its share of the Operating Partnership's cash in the amount of $722,500 which was returned to the cash reserves held by Series 19. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $3,432,500 as of March 31, 2011. In August 2011, the investment partnership received its final cash distribution from the Operating Partnership's remaining cash totaling $99,450, which was returned to the cash reserves held by Series 19. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $99,450 as of September 30, 2011.

Principal Accounting Policies and Estimates

The condensed financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), which require the Fund to make various estimates and assumptions. The following section is a summary of some aspects of those accounting policies that may require subjective or complex judgments and are most important to the portrayal of the Fund's financial condition and results of operations. The Fund believes that there is a low probability that the use of different estimates or assumptions in making these judgments would result in materially different amounts being reported in the financial statements.

The Fund is required to assess potential impairments to its long-lived assets, which are primarily investments in limited partnerships. The Fund accounts for its investment in limited partnerships in accordance with the equity method of accounting since the Fund does not control the operations of the Operating Partnerships. The purpose of an impairment analysis is to verify that the real estate investment balance reflected on the balance sheet does not exceed the value of the underlying investments.

If the book value of the Fund's investment in an Operating Partnership exceeds the estimated value derived by management, which generally consists of the remaining future Low-Income Housing Credits allocable to the Fund and the estimated residual value to the Fund, the Fund reduces its investment in the Operating Partnership.

In accordance with the accounting guidance for the consolidation of variable interest entities, the Fund determines when it should include the assets, liabilities, and activities of a variable interest entity (VIE) in its financial statements, and when it should disclose information about its relationship with a VIE. The analysis that must be performed to determine which entity should consolidate a VIE focuses on control and economic factors.  A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it has (1) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party will be required to consolidate the VIE. Further, the guidance requires continual reconsideration of the primary beneficiary of a VIE. 

Based on this guidance, the Operating Partnerships in which the Fund invests meet the definition of a VIE because the owners of the equity at risk in these entities do not have the power to direct their operations.  However, management does not consolidate the Fund's interests in these VIEs, as it is not considered to be the primary beneficiary since it does not have the power to direct the activities that are considered most significant to the economic performance of these entities.  The Fund currently records the amount of its investment in these partnerships as an asset on its balance sheets, recognizes its share of partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in its financial statements. The Fund's balance in investment in Operating Partnerships plus advances made to Operating Partnerships represents its maximum exposure to loss.  The Fund's exposure to loss on these partnerships is mitigated by the condition and financial performance of the underlying Housing Complexes as well as the strength of the general partners and their guarantee against credit recapture to the investors of the Fund.

 

 

 

Recent Accounting Changes

In June 2009, the FASB issued an amendment to the accounting and disclosure requirements for the consolidation of variable interest entities (VIEs). The amended guidance modifies the consolidation model to one based on control and economics, and replaced quantitative primary beneficiary analysis with a qualitative analysis. The primary beneficiary of a VIE will be the entity that has (1) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party will be required to consolidate the VIE. Further, the amended guidance requires continual reconsideration of the primary beneficiary of a VIE and adds an additional reconsideration event for determination of whether an entity is a VIE. Additionally, the amendment requires enhanced and expanded disclosures around VIEs. This amendment was effective for fiscal years beginning after November 15, 2009. The adoption of this guidance on April 1, 2010 did not have a material effect on the Fund's financial statements.

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

 

 

Not Applicable

Item 4.

Controls & Procedures

 

 

 

 

(a)

Evaluation of Disclosure Controls and Procedures

 

 

As of the end of the period covered by this report, the Fund's general partner, under the supervision and with the participation of the Principal Executive Officer and Principal Financial Officer of C&M Management Inc., carried out an evaluation of the effectiveness of the Fund's "disclosure controls and procedures" as defined under the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15 with respect to each series individually, as well as the Fund as a whole. Based on that evaluation, the Fund's Principal Executive Officer and Principal Financial Officer have concluded that as of the end of the period covered by this report, the Fund's disclosure controls and procedures were effective to ensure that information relating to any series or the Fund as a whole required to be disclosed by it in the reports that it files or submits under the Securities Exchange Act of 1934 (i) is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and (ii) is accumulated and communicated to the Fund's management, including the Fund's Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure with respect to each series individually, as well as the Fund as a whole.

 

 

 

 

(b)

Changes in Internal Controls

 

 

There were no changes in the Fund's internal control over financial reporting that occurred during the quarter ended December 31, 2011 that materially affected, or are reasonably likely to materially affect, the Fund's internal control over financial reporting.

 

 

PART II - OTHER INFORMATION

Item 1.

Legal Proceedings

 

 

 

None

 

 

Item 1A.

Risk Factors

 

 

 

There have been no material changes from the risk factors set forth under Part I, Item 1A. "Risk Factors" in our Form 10-K for the fiscal year ended March 31, 2011.

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

 

 

None

 

 

Item 3.

Defaults upon Senior Securities

 

 

 

None

 

 

Item 4.

Mine Safety Disclosures

 

 

 

Not Applicable

 

 

Item 5.

Other Information

 

 

 

None

 

 

Item 6.

Exhibits

 

 

 

(a)Exhibits

 

 

 

 

31.a Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herein

 

 

 

 

31.b Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herein

 

 

 

 

32.a Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herein

 

 

 

 

 

32.b Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herein

101. The following materials from the Boston Capital Tax Credit Fund III, L.P. Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2011 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Balance Sheets, (ii) the Condensed Statements of Operations, (iii) the Condensed Statements of Changes in Partners' Capital (Deficit), (iv) the Condensed Statements of Cash Flows and (v) related notes, furnished herewith

 

SIGNATURES



Pursuant to the requirements of Section 13 of the Securities Exchange Act of 1934, the Fund has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Boston Capital Tax Credit Fund III L.P.

 

By:

Boston Capital Associates III L.P.

 

 

General Partner

 

By:

BCA Associates Limited Partnership,

 

 

General Partner

 

By:

C&M Management Inc.,

 

 

General Partner

Date: February 14, 2012

By:

/s/ John P. Manning

 

 

 

 

 

John P. Manning




Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Fund and in the capacities and on the dates indicated:

DATE:

SIGNATURE:

TITLE:

 

 

 

February 14, 2012

/s/ John P. Manning

Director, President
(Principal Executive
Officer) C&M Management
Inc.; Director,
President (Principal
Executive Officer)
BCTC III Assignor Corp.

 

 

 

John P. Manning

 

 

 

 

 

 

 

 

DATE:

SIGNATURE:

TITLE:

 

 

 

February 14, 2012

/s/ Marc N. Teal

Chief Financial Officer
(Principal Financial
and Accounting Officer) C&M Management Inc.; Chief Financial Officer
(Principal Financial and Accounting Officer)
BCTC III Assignor Corp.

Marc N. Teal