Attached files
| file | filename |
|---|---|
| EX-31 - BCTC III CERTIFICATION 302 - BOSTON CAPITAL TAX CREDIT FUND III L P | b30913cert302jpm.htm |
| EXCEL - IDEA: XBRL DOCUMENT - BOSTON CAPITAL TAX CREDIT FUND III L P | Financial_Report.xls |
| EX-31 - BCTC III CERTIFICATION 302 - BOSTON CAPITAL TAX CREDIT FUND III L P | b30913cert302mnt.htm |
| EX-32 - BCTC III CERTIFICATION 906 - BOSTON CAPITAL TAX CREDIT FUND III L P | b30913cert906mnt.htm |
| EX-32 - BCTC III CERTIFICATION 906 - BOSTON CAPITAL TAX CREDIT FUND III L P | b30913cert906jpm.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 September 30, 2013
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
(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 the definitions 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 SEPTEMBER 30, 2013
TABLE OF CONTENTS
Part I. Financial information
Item 1. CONDENSED FINANCIAL STATEMENTS
CONDENSED Balance Sheets 4
Condensed Balance Sheets Series 15 5
Condensed Balance Sheets Series 16 6
Condensed Balance Sheets Series 17 7
Condensed Balance Sheets Series 18 8
Condensed Balance Sheets Series 19 9
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 SIX 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 Statements of Changes in Partners' Capital (Deficit) Series 15 23
Condensed Statements of Changes in Partners' Capital (Deficit) Series 16 23
Condensed Statements of Changes in Partners' Capital (Deficit) Series 17 24
Condensed Statements of Changes in Partners' Capital (Deficit) Series 18 24
Condensed Statements of Changes in 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 SEPTEMBER 30, 2013
TABLE OF CONTENTS (CONTINUED)
Notes to CONDENSED Financial Statements 32
Note A Organization 32
Note B Accounting and financial reporting policies 32
Note C Related Party Transactions 34
Note D Investments in operating partnerships 35
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS 37
Combined Condensed Summarized Statement of Operations Series 15 38
Combined Condensed Summarized Statement of Operations Series 16 39
Combined Condensed Summarized Statement of Operations Series 17 40
Combined Condensed Summarized Statement of Operations Series 18 41
Combined Condensed Summarized Statement of Operations Series 19 42
Note E Taxable Loss 43
Note F Income taxes 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 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 6. Exhibits 71
SIGNATURES 72
Boston Capital Tax Credit Fund III L.P.
CONDENSED BALANCE SHEETS
(Unaudited)
|
|
September 30, 2013 |
March 31, 2013 |
|
ASSETS |
||
|
Cash and cash equivalents |
$ 6,867,999 |
$ 5,933,101 |
|
Other assets |
67,200 |
69,400 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Accounts payable & accrued expenses |
$ 64,046 |
$ 32,246 |
|
Accounts payable affiliates (Note C) |
22,833,226 |
23,832,722 |
|
Capital contributions payable |
85,274 |
91,360 |
|
|
|
|
|
|
|
|
|
PARTNERS' CAPITAL (DEFICIT) |
|
|
|
|
|
|
|
Assignees |
|
|
|
General Partner |
(1,974,953) |
(2,034,816) |
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund III L.P.
CONDENSED BALANCE SHEETS
(Unaudited)
|
|
September 30, 2013 |
March 31, 2013 |
|
ASSETS |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ 119,758 |
$ 184,136 |
|
Other assets |
- |
- |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Accounts payable & accrued expenses |
$ 1,246 |
$ 1,246 |
|
Accounts payable affiliates (Note C) |
3,971,365 |
3,943,793 |
|
Capital contributions payable |
- |
- |
|
|
|
|
|
|
|
|
|
PARTNERS' CAPITAL (DEFICIT) |
|
|
|
|
|
|
|
Assignees |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund III L.P.
CONDENSED BALANCE SHEETS
(Unaudited)
|
|
September 30, 2013 |
March 31, 2013 |
||
|
ASSETS |
|
|
||
|
|
|
|
||
|
Cash and cash equivalents |
$ 157,490 |
$ 264,550 |
||
|
Other assets |
65,000 |
65,000 |
||
|
|
|
|
||
|
|
|
|
||
|
LIABILITIES |
|
|
||
|
|
|
|
||
|
Accounts payable & accrued expenses |
$ 10,000 |
$ 5,000 |
||
|
Accounts payable affiliates (Note C) |
7,903,187 |
8,656,186 |
||
|
Capital contributions payable |
50,008 |
50,008 |
||
|
|
|
|
||
|
|
|
|
||
|
PARTNERS' CAPITAL (DEFICIT) |
|
|
||
|
|
|
|
||
|
Assignees |
|
|
||
|
General Partner |
(544,016) |
(550,425) |
||
|
|
|
|
||
|
|
|
|
||
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
|
|
September 30, 2013 |
March 31, 2013 |
|
ASSETS |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ 5,454,346 |
$ 258,319 |
|
Other assets |
2,200 |
4,400 |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Accounts payable & accrued expenses |
$ 40,300 |
$ 18,500 |
|
Accounts payable affiliates (Note C) |
6,478,154 |
6,830,975 |
|
Capital contributions payable |
16,712 |
22,798 |
|
|
|
|
|
|
|
|
|
PARTNERS' CAPITAL (DEFICIT) |
|
|
|
|
|
|
|
Assignees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
September 30, 2013 |
March 31, 2013 |
|
ASSETS |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ 272,565 |
$ 231,682 |
|
Other assets |
- |
- |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Accounts payable & accrued expenses |
$ 5,000 |
$ - |
|
Accounts payable affiliates (Note C) |
4,480,520 |
4,401,768 |
|
Capital contributions payable |
18,554 |
18,554 |
|
|
|
|
|
|
|
|
|
PARTNERS' CAPITAL (DEFICIT) |
|
|
|
|
|
|
|
Assignees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
September 30, 2013 |
March 31, 2013 |
|
ASSETS |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ 863,840 |
$ 4,994,414 |
|
Other assets |
- |
- |
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
Accounts payable & accrued expenses |
$ 7,500 |
$ 7,500 |
|
Accounts payable affiliates (Note C) |
- |
- |
|
Capital contributions payable |
- |
- |
|
|
|
|
|
|
|
|
|
PARTNERS' CAPITAL (DEFICIT) |
|
|
|
|
|
|
|
Assignees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 September 30,
(Unaudited)
|
|
|
|||
|
|
|
|
|
|
|
Income |
|
|
|
|
|
Interest income |
$ 3,063 |
|
$ 4,915 |
|
|
Other income |
51,418 |
|
260 |
|
|
|
|
|
|
|
|
Share of Income from Operating |
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Professional fees |
115,507 |
|
136,715 |
|
|
Fund management fee, net (Note C) |
159,629 |
|
184,712 |
|
|
General and administrative expenses |
20,699 |
|
23,830 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ 5,416,483 |
|
$ 974,307 |
|
|
|
|
|
|
|
|
Net income (loss) allocated to limited assignees |
$ 5,362,319 |
|
$ 964,564 |
|
|
|
|
|
|
|
|
Net income (loss) allocated to general partner |
$ 54,164 |
|
$ 9,743 |
|
|
|
|
|
|
|
|
Net income (loss) per BAC |
$ .24 |
|
$ .04 |
|
|
|
|
|
|
|
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 September 30,
(Unaudited)
|
|
|
|||
|
|
|
|
|
|
|
Income |
|
|
|
|
|
Interest income |
$ 95 |
|
$ 155 |
|
|
Other income |
321 |
|
- |
|
|
|
|
|||
|
Share of Income from Operating |
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Professional fees |
23,360 |
|
29,998 |
|
|
Fund management fee, net (Note C) |
29,667 |
|
40,002 |
|
|
General and administrative expenses |
3,557 |
|
4,403 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ (56,168) |
|
$ (53,511) |
|
|
|
|
|
|
|
|
Net income (loss) allocated to limited assignees |
$ (55,606) |
|
$ (52,976) |
|
|
|
|
|
|
|
|
Net income (loss) allocated to general partner |
$ (562) |
|
$ (535) |
|
|
|
|
|
|
|
|
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 September 30,
(Unaudited)
|
|
|
||
|
|
|
|
|
|
Income |
|
|
|
|
Interest income |
$ 244 |
|
$ 186 |
|
Other income |
4,475 |
|
146 |
|
|
|
|
|
|
Share of Income from Operating |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
Professional fees |
33,782 |
|
34,028 |
|
Fund management fee, net (Note C) |
43,101 |
|
66,668 |
|
General and administrative expenses |
4,192 |
|
5,086 |
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ (4,825) |
|
$ (10,997) |
|
|
|
|
|
|
Net income (loss) allocated to limited assignees |
$ (4,777) |
|
$ (10,887) |
|
|
|
|
|
|
Net income (loss) allocated to general partner |
$ (48) |
|
$ (110) |
|
|
|
|
|
|
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 September 30,
(Unaudited)
|
|
|
|||
|
|
|
|
|
|
|
Income |
|
|
|
|
|
Interest income |
$ 161 |
|
$ 178 |
|
|
Other income |
57 |
|
- |
|
|
|
|
|
|
|
|
Share of Income from Operating |
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Professional fees |
21,075 |
|
30,705 |
|
|
Fund management fee, net (Note C) |
41,582 |
|
73,907 |
|
|
General and administrative expenses |
6,343 |
|
5,901 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ 5,517,524 |
|
$ (89,398) |
|
|
|
|
|
|
|
|
Net income (loss) allocated to limited assignees |
$ 5,462,349 |
|
$ (88,504) |
|
|
|
|
|
|
|
|
Net income (loss) allocated to general partner |
$ 55,175 |
|
$ (894) |
|
|
|
|
|
|
|
|
Net income (loss) per BAC |
$ 1.09 |
|
$ (.02) |
|
|
|
|
|
|
|
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 September 30,
(Unaudited)
|
|
|
|
|
|
|
|
|
Income |
|
|
|
Interest income |
$ 70 |
$ 49 |
|
Other income |
46,500 |
- |
|
|
|
|
|
Share of Income from Operating |
|
|
|
|
|
|
|
Expenses |
|
|
|
Professional fees |
19,150 |
22,468 |
|
Fund management fee, net (Note C) |
34,326 |
61,128 |
|
General and administrative expenses |
3,284 |
4,122 |
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ (10,190) |
$ (66,732) |
|
|
|
|
|
Net income (loss) allocated to limited assignees |
$ (10,088) |
$ (66,065) |
|
|
|
|
|
Net income (loss) allocated to general partner |
$ (102) |
$ (667) |
|
|
|
|
|
Net income (loss) per BAC |
$ (.00) |
$ (.02) |
|
|
|
|
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 September 30,
(Unaudited)
|
|
|
|
|
|
|
|
|
Income |
|
|
|
Interest income |
$ 2,493 |
$ 4,347 |
|
Other income |
65 |
114 |
|
|
|
|
|
Share of Income from Operating |
|
|
|
|
|
|
|
Expenses |
|
|
|
Professional fees |
18,140 |
19,516 |
|
Fund management fee, net (Note C) |
10,953 |
(56,993) |
|
General and administrative expenses |
3,323 |
4,318 |
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ (29,858) |
$ 1,194,945 |
|
|
|
|
|
Net income (loss) allocated to limited assignees |
$ (29,559) |
$ 1,182,996 |
|
|
|
|
|
Net income (loss) allocated to general partner |
$ (299) |
$ 11,949 |
|
Net income (loss) per BAC |
$ (.01) |
$ .29 |
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund III L.P.
CONDENSED STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
|
|
|
|||
|
|
|
|
|
|
|
Income |
|
|
|
|
|
Interest income |
$ 6,943 |
|
$ 10,338 |
|
|
Other income |
97,450 |
|
32,803 |
|
|
|
|
|
|
|
|
Share of Income from Operating |
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Professional fees |
151,880 |
|
139,004 |
|
|
Fund management fee, net (Note C) |
305,786 |
|
426,556 |
|
|
General and administrative expenses |
50,584 |
|
55,197 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ 5,986,480 |
|
$ 736,773 |
|
|
|
|
|
|
|
|
Net income (loss) allocated to limited assignees |
$ 5,926,617 |
|
$ 729,405 |
|
|
|
|
|
|
|
|
Net income (loss) allocated to general partner |
$ 59,863 |
|
$ 7,368 |
|
|
|
|
|
|
|
|
Net income (loss) per BAC |
$ .27 |
|
$ .03 |
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund III L.P.
CONDENSED STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
Series 15
|
|
|
|||
|
|
|
|
|
|
|
Income |
|
|
|
|
|
Interest income |
$ 209 |
|
$ 359 |
|
|
Other income |
2,505 |
|
856 |
|
|
|
|
|||
|
Share of Income from Operating |
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Professional fees |
32,010 |
|
30,098 |
|
|
Fund management fee, net (Note C) |
53,335 |
|
75,798 |
|
|
General and administrative expenses |
9,319 |
|
9,566 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ (91,950) |
|
$ (93,510) |
|
|
|
|
|
|
|
|
Net income (loss) allocated to limited assignees |
$ (91,030) |
|
$ (92,575) |
|
|
|
|
|
|
|
|
Net income (loss) allocated to general partner |
$ (920) |
|
$ (935) |
|
|
|
|
|
|
|
|
Net income (loss) per BAC |
$ (.02) |
|
$ (.02) |
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund III L.P.
CONDENSED STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
Series 16
|
|
|
||
|
|
|
|
|
|
Income |
|
|
|
|
Interest income |
$ 370 |
|
$ 480 |
|
Other income |
10,022 |
|
1,237 |
|
|
|
|
|
|
Share of Income from Operating |
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
Professional fees |
45,730 |
|
34,507 |
|
Fund management fee, net (Note C) |
103,672 |
|
133,436 |
|
General and administrative expenses |
11,082 |
|
11,032 |
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ 640,939 |
|
$ (82,805) |
|
|
|
|
|
|
Net income (loss) allocated to limited assignees |
$ 634,530 |
|
$ (81,977) |
|
|
|
|
|
|
Net income (loss) allocated to general partner |
$ 6,409 |
|
$ (828) |
|
|
|
|
|
|
Net income (loss) per BAC |
$ .12 |
|
$ (.02) |
|
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund III L.P.
CONDENSED STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
Series 17
|
|
|
|||
|
|
|
|
|
|
|
Income |
|
|
|
|
|
Interest income |
$ 286 |
|
$ 437 |
|
|
Other income |
37,376 |
|
9,870 |
|
|
|
|
|
|
|
|
Share of Income from Operating |
|
|
|
|
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
Professional fees |
27,050 |
|
32,233 |
|
|
Fund management fee, net (Note C) |
53,373 |
|
127,334 |
|
|
General and administrative expenses |
12,611 |
|
11,420 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ 5,530,934 |
|
$ (139,743) |
|
|
|
|
|
|
|
|
Net income (loss) allocated to limited assignees |
$ 5,475,625 |
|
$ (138,346) |
|
|
|
|
|
|
|
|
Net income (loss) allocated to general partner |
$ 55,309 |
|
$ (1,397) |
|
|
|
|
|
|
|
|
Net income (loss) per BAC |
$ 1.10 |
|
$ (.03) |
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund III L.P.
CONDENSED STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
Series 18
|
|
|
|
|
|
|
|
|
Income |
|
|
|
Interest income |
$ 138 |
$ 103 |
|
Other income |
47,433 |
11,000 |
|
|
|
|
|
Share of Income from Operating |
|
|
|
|
|
|
|
Expenses |
|
|
|
Professional fees |
24,665 |
22,554 |
|
Fund management fee, net (Note C) |
70,190 |
124,919 |
|
General and administrative expenses |
8,585 |
9,439 |
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ (42,869) |
$ (124,872) |
|
|
|
|
|
Net income (loss) allocated to limited assignees |
$ (42,440) |
$ (123,623) |
|
|
|
|
|
Net income (loss) allocated to general partner |
$ (429) |
$ (1,249) |
|
|
|
|
|
Net income (loss) per BAC |
$ (.01) |
$ (.03) |
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund III L.P.
CONDENSED STATEMENTS OF OPERATIONS
Six Months Ended September 30,
(Unaudited)
Series 19
|
|
|
|
|
|
|
|
|
Income |
|
|
|
Interest income |
$ 5,940 |
$ 8,959 |
|
Other income |
114 |
9,840 |
|
|
|
|
|
Share of Income from Operating |
|
|
|
|
|
|
|
Expenses |
|
|
|
Professional fees |
22,425 |
19,612 |
|
Fund management fee, net (Note C) |
25,216 |
(34,931) |
|
General and administrative expenses |
8,987 |
13,740 |
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ (50,574) |
$ 1,177,703 |
|
|
|
|
|
Net income (loss) allocated to limited assignees |
$ (50,068) |
$ 1,165,926 |
|
|
|
|
|
Net income (loss) allocated to general partner |
$ (506) |
$ 11,777 |
|
Net income (loss) per BAC |
$ (.01) |
$ .29 |
|
|
|
|
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)
Six Months Ended September 30, 2013
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
|
Distributions |
(4,080,000) |
- |
(4,080,000) |
|
|
|
|
|
|
5,926,617 |
59,863 |
5,986,480 |
|
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
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)
Six Months Ended September 30, 2013
(Unaudited)
|
|
|
General |
Total |
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
|
Distributions |
- |
- |
- |
|
|
|
|
|
|
Net income (loss) |
(91,030) |
(920) |
(91,950) |
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
|
Distributions |
- |
- |
- |
|
|
|
|
|
|
Net income (loss) |
634,530 |
6,409 |
640,939 |
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
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)
Six Months Ended September 30, 2013
(Unaudited)
|
|
|
General |
Total |
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
|
Distributions |
- |
- |
- |
|
|
|
|
|
|
Net income (loss) |
5,475,625 |
55,309 |
5,530,934 |
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
|
Distributions |
- |
- |
- |
|
|
|
|
|
|
Net income (loss) |
(42,440) |
(429) |
(42,869) |
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
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)
Six Months Ended September 30, 2013
(Unaudited)
|
|
|
General |
Total |
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
|
Distributions |
(4,080,000) |
- |
(4,080,000) |
|
|
|
|
|
|
Net income (loss) |
(50,068) |
(506) |
(50,574) |
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund III L.P.
CONDENSED STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
|
|
2013 |
2012 |
||
|
Cash flows from operating activities: |
|
|
||
|
|
|
|
||
|
Net Income (Loss) |
$ 5,986,480 |
$ 736,773 |
||
|
Adjustments to reconcile net income |
|
|
||
|
Share of Income from |
|
|
||
|
Changes in assets and liabilities |
|
|
||
|
(Decrease) Increase in accounts |
|
|
||
|
(Increase) Decrease in other assets |
2,200 |
(79,416) |
||
|
(Decrease) Increase in accounts |
|
|
||
|
|
|
|
||
|
Net cash (used in) provided by |
|
|
||
|
|
|
|
||
|
Cash flows from investing activities: |
|
|
||
|
|
|
|
||
|
Proceeds from the disposition of |
|
|
||
|
|
|
|
||
|
Net cash provided by |
|
|
||
|
|
|
|
||
|
Cash flows from financing activities: |
|
|
||
|
|
|
|
||
|
Distributions |
(4,080,000) |
- |
||
|
|
|
|
||
|
Net cash used in financing activities |
(4,080,000) |
- |
||
|
|
|
|
||
|
INCREASE (DECREASE) IN CASH AND |
|
|
||
|
|
|
|
||
|
Cash and cash equivalents, beginning |
5,933,101 |
4,880,195 |
||
|
|
|
|
||
|
Cash and cash equivalents, ending |
$ 6,867,999 |
$ 5,784,916 |
||
|
|
|
|
||
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund III L.P.
CONDENSED STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 15
|
|
2013 |
2012 |
||
|
Cash flows from operating activities: |
|
|
||
|
|
|
|
||
|
Net Income (Loss) |
$ (91,950) |
$ (93,510) |
||
|
Adjustments to reconcile net income |
|
|
||
|
Share of Income from |
|
|
||
|
Changes in assets and liabilities |
|
|
||
|
(Decrease) Increase in accounts |
|
|
||
|
(Increase) Decrease in other assets |
- |
- |
||
|
(Decrease) Increase in accounts |
|
|
||
|
|
|
|
||
|
Net cash (used in) provided by |
|
|
||
|
|
|
|
||
|
Cash flows from investing activities: |
|
|
||
|
|
|
|
||
|
Proceeds from the disposition of |
- |
|
||
|
|
|
|
||
|
Net cash provided by |
- |
|
||
|
|
|
|
||
|
Cash flows from financing activities: |
|
|
||
|
|
|
|
||
|
Distributions |
- |
- |
||
|
|
|
|
||
|
Net cash used in financing activities |
- |
- |
||
|
|
|
|
||
|
INCREASE (DECREASE) IN CASH AND |
|
|
||
|
|
|
|
||
|
Cash and cash equivalents, beginning |
184,136 |
198,803 |
||
|
|
|
|
||
|
Cash and cash equivalents, ending |
$ 119,758 |
$ 172,649 |
||
|
|
|
|
||
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund III L.P.
CONDENSED STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 16
|
|
2013 |
2012 |
||
|
Cash flows from operating activities: |
|
|
||
|
|
|
|
||
|
Net Income (Loss) |
$ 640,939 |
$ (82,805) |
||
|
Adjustments to reconcile net income |
|
|
||
|
Share of Income from |
|
|
||
|
Changes in assets and liabilities |
|
|
||
|
(Decrease) Increase in accounts |
|
|
||
|
(Increase) Decrease in other assets |
- |
(73,516) |
||
|
(Decrease) Increase in accounts |
|
|
||
|
|
|
|
||
|
Net cash (used in) provided by |
|
|
||
|
|
|
|
||
|
Cash flows from investing activities: |
|
|
||
|
|
|
|
||
|
Proceeds from the disposition of |
|
|
||
|
|
|
|
||
|
Net cash provided by |
|
|
||
|
|
|
|
||
|
Cash flows from financing activities: |
|
|
||
|
|
|
|
||
|
Distributions |
- |
- |
||
|
|
|
|
||
|
Net cash used in financing activities |
- |
- |
||
|
|
|
|
||
|
INCREASE (DECREASE) IN CASH AND |
|
|
||
|
|
|
|
||
|
Cash and cash equivalents, beginning |
264,550 |
360,565 |
||
|
|
|
|
||
|
Cash and cash equivalents, ending |
$ 157,490 |
$ 203,673 |
||
|
|
|
|
||
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund III L.P.
CONDENSED STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 17
|
|
2013 |
2012 |
||
|
Cash flows from operating activities: |
|
|
||
|
|
|
|
||
|
Net Income (Loss) |
$ 5,530,934 |
$ (139,743) |
||
|
Adjustments to reconcile net income |
|
|
||
|
Share of Income from |
|
|
||
|
Changes in assets and liabilities |
|
|
||
|
(Decrease) Increase in accounts |
|
|
||
|
(Increase) Decrease in other assets |
2,200 |
- |
||
|
(Decrease) Increase in accounts |
|
|
||
|
|
|
|
||
|
Net cash (used in) provided by |
|
|
||
|
|
|
|
||
|
Cash flows from investing activities: |
|
|
||
|
|
|
|
||
|
Proceeds from the disposition of |
|
|
||
|
|
|
|
||
|
Net cash provided by |
|
|
||
|
|
|
|
||
|
Cash flows from financing activities: |
|
|
||
|
|
|
|
||
|
Distributions |
- |
- |
||
|
|
|
|
||
|
Net cash used in financing activities |
- |
- |
||
|
|
|
|
||
|
INCREASE (DECREASE) IN CASH AND |
|
|
||
|
|
|
|
||
|
Cash and cash equivalents, beginning |
258,319 |
344,436 |
||
|
|
|
|
||
|
Cash and cash equivalents, ending |
$ 5,454,346 |
$ 224,015 |
||
|
|
|
|
||
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund III L.P.
CONDENSED STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 18
|
|
2013 |
2012 |
||
|
Cash flows from operating activities: |
|
|
||
|
|
|
|
||
|
Net Income (Loss) |
$ (42,869) |
$ (124,872) |
||
|
Adjustments to reconcile net income |
|
|
||
|
Share of Income from |
|
|
||
|
Changes in assets and liabilities |
|
|
||
|
(Decrease) Increase in accounts |
|
|
||
|
(Increase) Decrease in other assets |
- |
- |
||
|
(Decrease) Increase in accounts |
|
|
||
|
|
|
|
||
|
Net cash (used in) provided by |
|
|
||
|
|
|
|
||
|
Cash flows from investing activities: |
|
|
||
|
|
|
|
||
|
Proceeds from the disposition of |
|
|
||
|
|
|
|
||
|
Net cash provided by |
|
|
||
|
|
|
|
||
|
Cash flows from financing activities: |
|
|
||
|
|
|
|
||
|
Distributions |
- |
- |
||
|
|
|
|
||
|
Net cash used in financing activities |
- |
- |
||
|
|
|
|
||
|
INCREASE (DECREASE) IN CASH AND |
|
|
||
|
|
|
|
||
|
Cash and cash equivalents, beginning |
231,682 |
164,525 |
||
|
|
|
|
||
|
Cash and cash equivalents, ending |
$ 272,565 |
$ 171,135 |
||
|
|
|
|
||
|
|
|
|
||
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund III L.P.
CONDENSED STATEMENTS OF CASH FLOWS
Six Months Ended September 30,
(Unaudited)
Series 19
|
|
2013 |
2012 |
||
|
Cash flows from operating activities: |
|
|
||
|
|
|
|
||
|
Net Income (Loss) |
$ (50,574) |
$ 1,177,703 |
||
|
Adjustments to reconcile net income |
|
|
||
|
Share of Income from |
|
|
||
|
Changes in assets and liabilities |
|
|
||
|
(Decrease) Increase in accounts |
|
|
||
|
(Increase) Decrease in other assets |
- |
(5,900) |
||
|
(Decrease) Increase in accounts |
|
|
||
|
|
|
|
||
|
Net cash (used in) provided by |
|
|
||
|
|
|
|
||
|
Cash flows from investing activities: |
|
|
||
|
|
|
|
||
|
Proceeds from the disposition of |
- |
|
||
|
|
|
|
||
|
Net cash provided by |
- |
|
||
|
|
|
|
||
|
Cash flows from financing activities: |
|
|
||
|
|
|
|
||
|
Distributions |
(4,080,000) |
- |
||
|
|
|
|
||
|
Net cash used in financing activities |
(4,080,000) |
- |
||
|
|
|
|
||
|
INCREASE (DECREASE) IN CASH AND |
|
|
||
|
|
|
|
||
|
Cash and cash equivalents, beginning |
4,994,414 |
3,811,866 |
||
|
|
|
|
||
|
Cash and cash equivalents, ending |
$ 863,840 |
$ 5,013,444 |
||
|
|
|
|
||
|
|
|
|
||
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund III L.P.
NOTES TO CONDENSED FINANCIAL STATEMENTS
September 30, 2013
(Unaudited)
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 June 30, 2013, 3,866,900 BACs in Series 15, 5,425,102 BACs in Series 16, and 4,998,500 BACs in Series 17, respectively, 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
September 30, 2013
NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES
The condensed financial statements included herein as of September 30, 2013 and for the six 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 for the fiscal year ended March 31, 2013.
Boston Capital Tax Credit Fund III L.P.
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
September 30, 2013
(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 September 30, 2013 and 2012 are as follows:
|
2013 |
2012 |
|
|
Series 15 |
$ 34,167 |
$ 44,015 |
|
Series 16 |
58,727 |
76,404 |
|
Series 17 |
64,976 |
75,411 |
|
Series 18 |
45,876 |
63,491 |
|
Series 19 |
18,303 |
30,205 |
|
|
$222,049 |
$289,526 |
The fund management fees paid for the three months ended September 30, 2013 and 2012 are as follows:
|
2013 |
2012 |
|
|
Series 15 |
$ - |
$ 25,000 |
|
Series 16 |
769,717 |
157,500 |
|
Series 17 |
361,623 |
127,500 |
|
Series 18 |
- |
- |
|
Series 19 |
18,303 |
30,205 |
|
$1,149,643 |
$ 340,205 |
The fund management fees paid for the six months ended September 30, 2013 and 2012 are as follows:
|
|
2013 |
2012 |
|
Series 15 |
$ 40,762 |
$ 25,000 |
|
Series 16 |
877,366 |
157,500 |
|
Series 17 |
486,623 |
127,500 |
|
Series 18 |
13,000 |
- |
|
Series 19 |
36,606 |
68,116 |
|
$1,454,357 |
$ 378,116 |
Boston Capital Tax Credit Fund III L.P.
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
September 30, 2013
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS
At September 30, 2013 and 2012, the Fund had limited partnership interests in 98 and 123 Operating Partnerships, respectively, which own or are constructing apartment complexes. The breakdown of Operating Partnerships within the Fund at September 30, 2013 and 2012 is as follows:
|
|
2013 |
2012 |
|
Series 15 |
25 |
29 |
|
Series 16 |
28 |
36 |
|
Series 17 |
18 |
26 |
|
Series 18 |
19 |
22 |
|
Series 19 |
8 |
10 |
|
|
98 |
123 |
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 September 30, 2013 and 2012 are as follows:
|
|
2013 |
2012 |
|
Series 15 |
$ - |
$ - |
|
Series 16 |
50,008 |
50,008 |
|
Series 17 |
16,712 |
22,798 |
|
Series 18 |
18,554 |
18,554 |
|
Series 19 |
- |
- |
|
|
$ 85,274 |
$ 91,360 |
During the six months ended September 30, 2013 the Fund disposed of eleven Operating Partnerships of which one Operating Partnership was included in both Series 18 and 19 and the Fund received additional proceeds from one operating limited partnership disposed of in the prior year. A summary of the dispositions by Series for September 30, 2013 is as follows:
|
|
Operating Partnership Interest Transferred |
|
Sale of Underlying Operating Partnership |
|
Fund Proceeds from Disposition* |
|
Gain on Disposition |
||
|
Series 15 |
- |
|
- |
|
$ |
- |
|
$ |
- |
|
Series 16 |
2 |
|
1 |
|
|
791,031 |
|
|
791,031 |
|
Series 17 |
6 |
|
1 |
|
|
5,580,220 |
|
|
5,586,306 |
|
Series 18 |
1 |
|
- |
|
|
13,000 |
|
|
13,000 |
|
Series 19 |
1 |
|
- |
|
|
- |
|
|
- |
|
Total |
10 |
|
2 |
|
$ |
6,384,251 |
|
$ |
6,390,337 |
* Fund proceeds from disposition does not include the following amount which was due to a writeoff of capital contribution payable of $6,086 for Series 17.
Boston Capital Tax Credit Fund III L.P.
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
September 30, 2013
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
During the six months ended September 30, 2012 the Fund disposed of eleven Operating Partnership. A summary of the dispositions by Series for September 30, 2012 is as follows:
|
|
Operating Partnership Interest Transferred |
|
Sale of Underlying Operating Partnership |
|
Fund Proceeds from Disposition * |
|
Gain on Disposition |
||
|
Series 15 |
1 |
|
- |
|
$ |
20,737 |
|
$ |
20,737 |
|
Series 16 |
2 |
|
- |
|
|
94,453 |
|
|
94,453 |
|
Series 17 |
1 |
|
- |
|
|
20,937 |
|
|
20,937 |
|
Series 18 |
1 |
|
- |
|
|
20,937 |
|
|
20,937 |
|
Series 19 |
6 |
|
- |
|
|
1,157,325 |
|
|
1,157,325 |
|
Total |
11 |
|
- |
|
$ |
1,314,389 |
|
$ |
1,314,389 |
* Fund proceeds from disposition include $73,516 recorded as a receivable as of September 30, 2012, for Series 16.
The gain 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 six months ended June 30, 2013.
Boston Capital Tax Credit Fund III L.P.
NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
September 30, 2013
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
|
|
2013 |
2012 |
|
|
|
|
|
Revenues |
|
|
|
Rental |
$ 11,562,823 |
$ 14,354,270 |
|
Interest and other |
273,758 |
396,287 |
|
|
|
|
|
|
11,836,581 |
14,750,557 |
|
|
|
|
|
Expenses |
|
|
|
Interest |
1,749,740 |
2,449,163 |
|
Depreciation and amortization |
2,912,782 |
3,724,545 |
|
Operating expenses |
8,525,085 |
10,432,742 |
|
|
|
|
|
|
|
|
|
NET LOSS |
$(1,351,026) |
$(1,855,893) |
|
|
|
|
|
Net loss allocation to Boston |
|
|
|
|
|
|
|
|
|
|
|
Net loss allocated to other |
|
|
|
|
|
|
|
|
|
|
* Amounts include $1,337,515 and $1,837,333 for 2013 and 2012, 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
September 30, 2013
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
|
|
2013 |
2012 |
|
|
|
|
|
Revenues |
|
|
|
Rental |
$ 2,229,838 |
$ 2,644,505 |
|
Interest and other |
71,313 |
80,424 |
|
|
|
|
|
|
2,301,151 |
2,724,929 |
|
|
|
|
|
Expenses |
|
|
|
Interest |
341,751 |
425,248 |
|
Depreciation and amortization |
577,821 |
703,464 |
|
Operating expenses |
1,559,655 |
1,929,404 |
|
|
|
|
|
|
|
|
|
NET LOSS |
$ (178,076) |
$ (333,187) |
|
|
|
|
|
Net loss allocation to Boston |
|
|
|
|
|
|
|
|
|
|
|
Net loss allocated to other |
|
|
|
|
|
|
|
|
|
|
* Amounts include $176,295 and $329,855 for 2013 and 2012, 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
September 30, 2013
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 16
|
|
2013 |
2012 |
|
|
|
|
|
Revenues |
|
|
|
Rental |
$ 3,110,645 |
$ 3,566,981 |
|
Interest and other |
37,338 |
65,424 |
|
|
|
|
|
|
3,147,983 |
3,632,405 |
|
|
|
|
|
Expenses |
|
|
|
Interest |
480,713 |
629,677 |
|
Depreciation and amortization |
790,902 |
916,417 |
|
Operating expenses |
2,330,612 |
2,596,339 |
|
|
|
|
|
|
|
|
|
NET LOSS |
$ (454,244) |
$ (510,028) |
|
|
|
|
|
Net loss allocation to Boston |
|
|
|
|
|
|
|
|
|
|
|
Net loss allocated to other |
|
|
|
|
|
|
|
|
|
|
* Amounts include $449,702 and $504,928 for 2013 and 2012, 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
September 30, 2013
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 17
|
|
2013 |
2012 |
|
|
|
|
|
Revenues |
|
|
|
Rental |
$ 3,453,279 |
$ 4,074,193 |
|
Interest and other |
75,274 |
102,196 |
|
|
|
|
|
|
3,528,553 |
4,176,389 |
|
|
|
|
|
Expenses |
|
|
|
Interest |
480,165 |
630,863 |
|
Depreciation and amortization |
830,980 |
1,038,799 |
|
Operating expenses |
2,479,639 |
3,002,638 |
|
|
|
|
|
|
|
|
|
NET LOSS |
$ (262,231) |
$ (495,911) |
|
|
|
|
|
Net loss allocation to Boston |
|
|
|
|
|
|
|
|
|
|
|
Net loss allocated to other |
|
|
|
|
||
|
|
|
|
* Amounts include $259,608 and $490,951 for 2013 and 2012, 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
September 30, 2013
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 18
|
|
2013 |
2012 |
|
|
|
|
|
Revenues |
|
|
|
Rental |
$ 2,052,302 |
$ 2,960,275 |
|
Interest and other |
63,751 |
92,336 |
|
|
|
|
|
|
2,116,053 |
3,052,611 |
|
|
|
|
|
Expenses |
|
|
|
Interest |
291,399 |
543,280 |
|
Depreciation and amortization |
540,174 |
770,108 |
|
Operating expenses |
1,601,392 |
2,123,419 |
|
|
|
|
|
|
|
|
|
NET LOSS |
$ (316,912) |
$ (384,196) |
|
|
|
|
|
Net loss allocation to Boston |
|
|
|
|
|
|
|
|
|
|
|
Net loss allocated to other |
|
|
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
September 30, 2013
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Six Months Ended June 30,
(Unaudited)
Series 19
|
|
2013 |
2012 |
|
|
|
|
|
Revenues |
|
|
|
Rental |
$ 716,759 |
$ 1,108,316 |
|
Interest and other |
26,082 |
55,907 |
|
|
|
|
|
|
742,841 |
1,164,223 |
|
|
|
|
|
Expenses |
|
|
|
Interest |
155,712 |
220,095 |
|
Depreciation and amortization |
172,905 |
295,757 |
|
Operating expenses |
553,787 |
780,942 |
|
|
|
|
|
|
|
|
|
NET LOSS |
$ (139,563) |
$ (132,571) |
|
|
|
|
|
Net loss allocation to Boston |
|
|
|
|
|
|
|
|
|
|
|
Net loss allocated to other |
|
|
|
|
|
|
* Amounts include $138,167 and $131,245 for 2013 and 2012, 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
September 30, 2013
(Unaudited)
NOTE E - TAXABLE LOSS
The Fund's taxable loss for the calendar year ended December 31, 2013 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.
Income tax returns filed by the Fund are subject to examination by the Internal Revenue Service for a period of three years. While no income tax returns are currently being examined by the Internal Revenue Service, tax years since 2009 remain open.
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, 2013. 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.
The Fund's primary source of funds was the proceeds of its Public Offering. Other sources of liquidity include (i) interest earned on capital contributions unpaid for the six months ended September 30, 2013 or on working capital reserves, (ii) cash distributions from operations of the Operating Partnerships in which the Fund has invested and (iii) proceeds received from the dispositions of the Operating Partnership that are returned to fund reserves. These sources of liquidity, along with the Fund's working capital reserve, are available to meet the obligations of the Partnership. 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 September 30, 2013 were $222,049 and total fund management fees accrued as of September 30, 2013 were $22,197,864. During the three months ended September 30, 2013, $1,149,643 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 September 30, 2013, 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 six months ended September 30, 2013 there were no advances. Below is a summary, by series, of the total advances made to date.
|
|
Six 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.
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 43 of the Operating Partnerships.
During the quarter ended September 30, 2013, 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 September 30, 2013.
(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 36 of the Operating Partnerships.
During the quarter ended September 30, 2013, 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 September 30, 2013. 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 31 of the Operating Partnerships.
During the quarter ended September 30, 2013, none of Series 17 net offering proceeds were used to pay capital contributions. Series 17 has contributions payable to 2 Operating Partnerships in the amount of $16,712 as of September 30, 2013. 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 15 of the Operating Partnerships.
During the quarter ended September 30, 2013, 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 September 30, 2013. 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 18 of the Operating Partnerships.
During the quarter ended September 30, 2013, 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 September 30, 2013.
As of September 30, 2013 and 2012, the Fund held limited partnership interests in 98 and 123 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 six months ended September 30, 2013 are as follows:
|
|
3 Months Management Fee |
|
3 Months Fund Net of Reporting Fee |
|
Series 15 |
$ 34,167 |
$ 4,500 |
$ 29,667 |
|
Series 16 |
58,727 |
15,626 |
43,101 |
|
Series 17 |
64,976 |
23,394 |
41,582 |
|
Series 18 |
45,876 |
11,550 |
34,326 |
|
Series 19 |
18,303 |
7,350 |
10,953 |
|
$222,049 |
$ 62,420 |
$ 159,629 |
|
|
6 Months Management Fee |
|
6 Months Fund Net of Reporting Fee |
|
Series 15 |
$ 68,334 |
$ 14,999 |
$ 53,335 |
|
Series 16 |
124,367 |
20,695 |
103,672 |
|
Series 17 |
133,802 |
80,429 |
53,373 |
|
Series 18 |
91,752 |
21,562 |
70,190 |
|
Series 19 |
36,606 |
11,390 |
25,216 |
|
$454,861 |
$149,075 |
$ 305,786 |
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 September 30, 2013 and 2012, the average Qualified Occupancy for the series was 100%. The series had a total of 25 properties September 30, 2013, all of which were at 100% Qualified Occupancy.
For the six month periods ended September 30, 2013 and 2012, Series 15 reflects a net loss from Operating Partnerships of $(178,076) and $(333,187), respectively, which includes depreciation and amortization of $577,821 and $703,464, 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 more successful renting 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. Management also noted that crime is an issue in the area and plans to hire a security officer who will reside at the property in order to offset potential security concerns. As there have been no major security incidents reported at the property, the addition of security is a proactive measure. In 2012, occupancy averaged 50%, down from 53% in 2011. The property generated a $27,445 deficit in 2012, which was primarily funded by accruing management fees and management payroll due to an affiliate of the operating general partner. The operating general partner has historically funded operating deficits in this manner. Through September 2013, the property is averaging 59% occupancy and is operating below breakeven. 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% and 64% in 2011 and 2012, respectively. As of September 30, 2013, Livingston Plaza's average occupancy was 67%. 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 monthly mortgage payments are at a similar level as the rents 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. Despite the low occupancy, with operating expenses tightly controlled by the operating general partner including its affiliated management company not charging a management fee to manage the property, Livingston Plaza was able to operate at a breakeven level in 2012 and through the third quarter of 2013. The property operated below breakeven in 2011 with the deficit funded primarily by withdrawals from the replacement reserve escrow account. The mortgage payments, real estate taxes, insurance, and accounts payable are current as of September 30, 2013. 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 has investigated various disposition strategies for this property that would be consistent with the investment objectives of the investment partnership and has concluded that it is unlikely that any proceeds will be available for distribution to the investment limited partners from the disposition of the property or the Operating Partnership.
In September 2012, the investment general partner transferred its interest in Investment Group of Payson to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,394,713 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $763 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $20,737 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 $20,737 as of September 30, 2012. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the 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 ten years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest.
In November 2012,the investment general partner transferred its interest in Grantsville Associates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,398,355 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $3,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $6,500 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 $6,500 as of December 31, 2012. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the 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 ten years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest.
In November 2012, the investment general partner transferred its interest in Shenandoah Village LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,385,751 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $3,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $6,500 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 $6,500 as of December 31, 2012. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the 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 ten years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest.
In November 2012, the investment general partner transferred its interest in Westernport Associates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,400,157 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $3,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $6,500 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 $6,500 as of December 31, 2012. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the 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 ten years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest.
In December 2012, the investment general partner transferred its interest in Bridlewood, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $726,108 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $6,875 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $2,600 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $525 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 $525 as of December 31, 2012. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the 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 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest.
Series 16
As of September 30, 2013 and 2012, the average Qualified Occupancy for the series was 100%. The series had a total of 28 properties at September 30, 2013, all of which were at 100% Qualified Occupancy.
For the six month periods ended September 30, 2013 and 2012, Series 16 reflects a net loss from Operating Partnerships of $(454,244) and $(510,028), respectively, which includes depreciation and amortization of $790,902 and $916,417, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Butler Rental Housing LP (Forest Pointe Apartments) is a 25-unit family property located in Butler, Georgia. In 2012 the property operated below breakeven due to low occupancy caused by a weak rental market. Occupancy began to decline in June 2011, averaging 88% for the year. Occupancy further decreased in 2012, averaging 80% for the year. The market suffers from high unemployment and an overall market trend of household consolidation. New onsite and district managers were hired in 2012 and they have improved operations by increasing marketing efforts and offering tenant referral incentives to counter the effects of the competitive rental market. As a result, average occupancy through the third quarter of 2013 has increased to 88%. Property performance was slightly below breakeven through the third quarter of 2013 primarily due to the annual auditing expense. An appeal of the 2012 tax bill was successful, resulting in a 50% reduction in the property's tax bill. The property's cash flow is expected to improve with the increased occupancy and reduced property tax expense. The operating general partner is funding deficits as needed. The mortgage payments, taxes, and insurance are all current. On December 31, 2008, the 15-year low income housing tax credit compliance period expired with respect to Butler Rental Housing LP.
Blairsville Rental Housing, Limited Partnership (Tan Yard Branch Apartments I) is a 24-unit family property located in Blairsville, GA. The property has performed poorly over the last several years due to locally weak economic conditions. As a result of the tenant base being largely composed of hourly-wage employees, evictions and move-outs continue to keep occupancy low. The property's rural location also limits property traffic and exposure, further contributing to the weak occupancy. Management continues to aggressively market the community by distributing fliers throughout the area and by having directional signage installed. A tenant referral program was implemented and move-in specials are being offered. Occupancy has increased marginally from an average of 84% in 2012 to 86% through the third quarter of 2013. The property continued to operate below breakeven through the third quarter of 2013. The operating general partner continues to fund deficits as needed. The mortgage, real estate taxes, and insurance payments are all current. On December 31, 2009, the 15-year low income housing tax credit compliance period expired with respect to Blairsville Rental Housing.
St. Croix Commons Limited Partnership (St. Croix Commons Apartments) is a 40-unit family property located in Woodville, Wisconsin. Occupancy at the end of the third quarter of 2013 was 100%. Although expenses remain below the state averages for the investment limited partnership's portfolio of properties, low rental rates in the area have prevented the property from achieving breakeven operations. The property's taxes and insurance are current; however, the operating general partner stopped making debt service payments in 2011 due to cash flow shortfalls. In the first quarter of 2012, the investment general partner learned that the property was ten months in arrears on its mortgage and the lender had issued a notice of default. The operating general partner contacted the lender in the hope of gaining an interest only forbearance for a four year period. The lender did not agree to modify the terms of the loan and demanded a payment of $736,851 to be made by November 15, 2011 to cure the default. The operating general partner failed to make the payment and the lender commenced foreclosure proceedings. The redemption period for the foreclosure in this action was six months. The default foreclosure judgment was entered on February 23, 2012; the redemption period ended on August 23, 2012. The resulting foreclosure sale in 2012 did not result in any recapture or penalties because the property was beyond the compliance period. A local developer bought the loan at sheriff's sale from the lender. The operating general partner then bought the property back from the local developer. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership. On December 31, 2009, the 15-year low income housing tax credit compliance period expired with respect to St. Croix Commons.
Greenfield Properties, Limited Partnership (Greenfield Properties) is a 20-unit elderly property located in Greenfield, Missouri. The property operated below breakeven in 2012 and continues to operate below breakeven in 2013 due to low occupancy and high operating expenses, specifically utilities. Occupancy is averaging 82% through third quarter of 2013. Management continues to advertise in the local newspaper and place fliers in area schools and at the local community center, but persistent low employment and a depressed local economy continue to present leasing challenges. A $15 per unit, per month, rent increase took effect January 1, 2013. This is projected to raise an additional $3,600 in annual revenue. Management has worked to improve controllable expenses, but utility costs continue to be high as the property is carrying the vacant unit costs on the house meters longer than expected. All taxes, insurance and mortgage payments are current as of September 2013. 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.
In June 2013, the operating general partner of Meadows of Southgate L.D.H.A. LP entered into an agreement to sell the property to a non-affiliated third party buyer and the transaction closed on June 28, 2013. The sales price of the property was $2,739,000, which included the outstanding mortgage balance of approximately $1,744,202 and cash proceeds to the investment partnership of $727,000. Of the total proceeds received by the investment partnership, $7,500 was paid to BCAMLP for expenses related to the sale, which include third party legal costs. The remaining proceeds from the sale of $719,500 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 $719,500 as of June 30, 2013.
In August 2012, the investment general partner transferred its interest in Eastman Elderly Housing LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,089,806 and receipt of a Promissory Note (the "Note") to the investment partnership in the amount of $78,516 maturing on December 31, 2012. The Note was paid on November 7, 2012. Of the amounts paid under the Note, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $73,516 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 $73,516 as of September 30, 2012. In December 2012, additional sale proceeds of $557 were received and returned to the cash reserves held by Series 16.
In September 2012, the investment general partner transferred its interest in Willcox Investment Group II, An AZ Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,025,098 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $563 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $20,937 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 $20,937 as of September 30, 2012. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the 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 ten years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest.
Anson Limited Partnership (Parkwood Apartments) is a 24-unit, elderly property located in Anson, ME. Rural Development approved a change in management in December 2012. The change was made without the consent of the investment general partner. Upon discussions with Rural Development, the operating general partner believes the change is in the best interest of the Operating Partnership. The new management company has been focusing on deferred maintenance issues. Operational reports have been provided by the new management company through the second quarter of 2013. As of June 30, 2013, the property is 92% occupied and operating at breakeven. The operating general partner intends to continue to work with management to receive timely reporting. The low income housing tax credit compliance period expired on December 31, 2007.
In December 2012, the investment general partner transferred its interest in Bentonia Elderly, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $783,133 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $1,050 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $2,600 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $6,350 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 $6,350 as of December 31, 2012. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the 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 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest.
In December 2012, the investment general partner transferred its interest in Joiner Elderly, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $681,441 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $6,361 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $2,600 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $1,039 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 $1,039 as of December 31, 2012. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the 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 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest.
In December 2012, the investment general partner transferred its interest in Tchula Elderly, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $760,436 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $2,150 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $2,600 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $5,250 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 $5,250 as of December 31, 2012. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the 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 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest.
In December 2012, the investment general partner transferred its interest in Turtle Creek Family LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $790,251 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $7,400 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $2,600 was paid to BCAMLP for expenses related to the transfer, which include 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 December 31, 2012. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the 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 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest.
In December 2012, the investment general partner transferred its interest in Twin Oaks Associates LP (VA) to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,343,303 and receipt of a Promissory Note (the "Note") to the investment partnership in the amount of $70,000 maturing on June 30, 2013. The maturity date of the Note was extended to September 30, 2013 and has been further extended to December 31, 2013. Of the amounts payable under the Note, $5,000 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $65,000 will be 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 $65,000 as of December 31, 2012.
Falcon Ridge L.P. (Falcon Ridge Apartments) is a 32-unit family property located in Beattyville, Kentucky. Although the 2012 occupancy remained stable at 97%, the property had below breakeven operations. This deficit was the result of increased maintenance and real estate tax expenses. The 2013 operations have improved, but remain below breakeven. Rental income is slightly above budget; however, operating expenses are higher than budgeted amounts, specifically administrative and maintenance expenses. Occupancy is 100% as of September 2013. The 15-year low income housing tax credit compliance period expired on December 31, 2008.
In July 2013, the investment general partner transferred its interest in Talbot Village II LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $635,180 and cash proceeds to the investment partnership of $57,337. Of the total proceeds received, $2,120 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 include third party legal costs. The remaining proceeds of approximately $50,217 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 $50,217 as of September 30, 2013.
In September 2013, the investment general partner transferred its interest in Isola Square LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $903,802 and cash proceeds to the investment partnership of $27,114. Of the total proceeds received, $800 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 include third party legal costs. The remaining proceeds of approximately $21,314 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 $21,314 as of September 30, 2013.
Series 17
As of September 30, 2013 and 2012, the average Qualified Occupancy for the series was 100%. The series had a total of 18 properties at September 30, 2013, all of which were at 100% Qualified Occupancy.
For the six month periods ended September 30, 2013 and 2012, Series 17 reflects a net loss from Operating Partnerships of $(262,231) and $(495,911), respectively, which includes depreciation and amortization of $830,980 and $1,038,799, 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 continues to operate below breakeven due to high vacancy, insufficient rental rates, and high operating expenses. The mortgage has been placed in default and the operating general partner filed for bankruptcy protection. Although the property continues to operate below breakeven through 2013, the replacement reserve account is being funded and the accounts payable have decreased substantially. Despite a $10 per unit per month rent increase that took effect in January 2013, occupancy is 96% as of September, 2013.
On October 11, 2011, Maine State Housing Authority (MSHA), the mortgage lender, issued a notice of default due to unpaid taxes, delays in past insurance payments, and underfunded tax, insurance, and replacement reserve escrow accounts. As of the end of the fourth quarter of 2011, the insurance payment issue had been resolved and the operating general partner had submitted a payment plan to MSHA to address the remaining default issues. To date, the operating general partner continues to outline a workout plan with MSHA and is working to reduce the interest rate down to 6%. This will produce a savings of more than $50,000 annually, and would likely allow the property to operate above breakeven. If approved, at the end of year five, the operating general partner plans to explore various disposition opportunities consistent with the investment objectives of the investment partnership. On December 31, 2009, the 15-year low income housing tax credit compliance period expired with respect to Skowhegan Housing, LP.
Green Acres Limited Partnership (Green Acres Estates) is a 48-unit (20 tax credit units) property located in West Bath, Maine. The property operated below breakeven in 2012 and through 2013 due to high vacancy, tenant receivables, and high operating expenses. The mortgage has been placed in default and the operating general partner filed for bankruptcy protection. Although the property continues to operate below breakeven through 2013, accounts payable have decreased substantially, the replacement reserve account is being funded, taxes are current, and the tax escrow is sufficient to cover the tax payment due in October. Management is working to evict non-paying tenants and replace them with quality, paying residents. The on-site manager has been instructed to take a harder line with tenants who do not pay on time. In addition, Management is in the process of establishing performance metrics for the managers, which includes a section on improving tenant receivables. Progress is expected to be seen in the fourth quarter. Several units have been rehabbed with owner support, and the overall outlook for the property has been improved. The property manager is aggressively marketing the property in the local area. As a result, physical occupancy has increased to 96% as of September 30, 2013.
On October 11, 2011, MSHA, the mortgage lender, issued a notice of default due to unpaid taxes, delays in past insurance payments, and underfunded tax, insurance, and replacement reserve escrow accounts. At of the end of the fourth quarter of 2011, the insurance payment issue had been resolved and the operating general partner had submitted a payment plan to MSHA to address the remaining default issues. To date, the operating general partner continues to outline a workout plan with MSHA and is working to reduce the interest rate down to 6%. This will produce a savings of more than $50,000 annually, and would likely allow the property to operate above breakeven. If approved, at the end of year five, the operating general partner plans to explore various disposition opportunities consistent with the investment objectives of the investment partnership. On December 31, 2009, the 15-year low income housing tax credit compliance period expired with respect to Green Acres Limited Partnership.
Mt. Vernon Associates, LP (Green Court Apartments) is a 76-unit property located in Mt. Vernon, New York. In 2012 the property had average occupancy of 89% and operated above breakeven. Through the second quarter of 2013 the property was 89% occupied and operations were above breakeven. The third quarter financials of 2013 have not been received to date. Quarterly reporting is an ongoing issue with management and the investment general partner is working with the operating general partner to resolve this issue. In 2012 the investment general partner was notified that the second mortgage in the amount of $250,000 held by the Mount Vernon Urban Renewal Agency (MVURA) was delinquent. The operating general partner successfully negotiated a debt restructuring with MVURA and no payments are required until the restructuring occurs in 2014. MVURA did not issue a default notice. The operating general partner anticipates that the debt restructure will allow the property to meet its debt service and will resolve the delinquent debt payment issue. All taxes, insurance, and payments on the first mortgage were current at the end of September 2013. On December 31, 2009, the 15-year low income housing tax credit compliance period expired with respect to Mt. Vernon Associates. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.
Hackley-Barclay Limited Partnership (Royal Glen Townhomes) is a 78-unit property located in Muskegon, Michigan. The property averaged 97% occupancy in 2012 and operated above breakeven. On March 17, 2013, a fire broke out in one unit when a tenant forgot to turn an iron off and left for the day. No injuries were caused by the fire but there was significant damage to the unit. Management filed an insurance claim and has received $64,699 to cover the cost of repairs to the unit. As of September 30, 2013, the repairs were complete. Occupancy at the property has averaged 94% through the third quarter of 2013 and the property continues to operate above breakeven. All taxes, insurance, and payments on the mortgage are current. On December 31, 2008, the 15-year low income housing tax credit compliance period expired with respect to Hackley-Barclay 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 September 2012, the investment general partner transferred its interest in Soledad Enterprises, A CA Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,790,189 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $563 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $20,937 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 $20,937 as of September 30, 2012. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the 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 ten years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest.
In December 2012, the investment general partner of Briarwood of DeKalb, LP entered into an agreement to sell the property to a non-affiliated third party buyer and the transaction closed on December 20, 2012. The sales price of the property was $1,200,000, which included the outstanding mortgage balance of approximately $612,300 and cash proceeds to the investment partnership of $386,367. Of the total proceeds received by the investment partnership, $63,242 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $7,500 was paid to BCAMLP for expenses related to the sale, which include third party legal costs. The remaining proceeds from the sale of $315,625 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 $315,625 as of December 31, 2012.
In July 2013, the investment general partner transferred its interest in Briarwood Village LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,064,784 and cash proceeds to the investment partnership of $118,109. Of the total proceeds received, $5,000 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $113,109 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 $113,109 as of September 30, 2013.
In July 2013, the investment general partner transferred its interest in Deerwood Village LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $598,232 and cash proceeds to the investment partnership of $60,267. Of the total proceeds received, $861 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 include third party legal costs. The remaining proceeds of approximately $54,406 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 $54,406 as of September 30, 2013.
In July 2013, the investment general partner transferred its interest in Doyle Village LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,098,025 and cash proceeds to the investment partnership of $131,328. Of the total proceeds received, $5,000 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $126,328 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 $126,328 as of September 30, 2013.
In July 2013, the investment general partner transferred its interest in Houston Village L.P. to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $630,245 and cash proceeds to the investment partnership of $72,780. Of the total proceeds received, $5,000 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $67,780 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 $67,780 as of September 30, 2013.
In September 2013 the investment general partner transferred its interest in Greenwood Place LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,003,200 and cash proceeds to the investment partnership of $30,096. Of the total proceeds received, $900 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 $24,196 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 $24,196 as of September 30, 2013.
In September 2013, the investment general partner transferred its interest in Jonestown Manor LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $810,589 and cash proceeds to the investment partnership of $24,318. Of the total proceeds received, $750 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 include third party legal costs. The remaining proceeds of approximately $18,568 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 $18,568 as of September 30, 2013.
In June 2013, the operating general partner of Largo Center Apartments LP entered into an agreement to sell the property to a third party buyer and the transaction closed on September 30, 2013. The sales price of the property was $11,600,000, which included the outstanding mortgage balance of approximately $3,980,341 and cash proceeds to the investment partnership of $5,200,000. Of the total proceeds received by the investment partnership, $16,667 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $7,500 will be paid to BCAMLP for expenses related to the sale, which include third party legal costs. The remaining proceeds from the sale of $5,175,833 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 $5,175,833 as of September 30, 2013. In addition, equity outstanding for the Operating Partnership in the amount of $6,086 was recorded as gain on the sale of the Operating Partnership as of September 30, 2013.
Series 18
As of September 30, 2013 and 2012 the average Qualified Occupancy for the series was 100%. The series had a total of 19 properties at September 30, 2013, all of which were at 100% Qualified Occupancy.
For the six month periods ended September 30, 2013 and 2012, Series 18 reflects a net loss from Operating Partnerships of $(316,912) and $(384,196), respectively, which includes depreciation and amortization of $540,174 and $770,108, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Ripley Housing, Limited Partnership (Oakhaven Apartments) is a 24-unit family property located in Ripley, Mississippi. The property struggled with low occupancy in 2013. The vacancy was a direct reflection of economic conditions in Ripley, where ongoing job losses led to increased evictions and migration from the area. Management focused on marketing efforts, particularly internet advertising, in order to increase occupancy. They also performed outreach to the local HUD office, the Mississippi Housing Authority, and the Tippah County housing agencies. As of September 2013, occupancy was 83% and the property was operating below breakeven. All real estate taxes, mortgage and insurance payments are current. On December 31, 2008, the 15-year low income housing tax credit compliance period expired with respect to Ripley Housing, LP. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.
Natchitoches Elderly Apartments LP (Natchitoches Seniors Apartments) is a 40-unit property located in Natchitoches, Louisiana. In 2012, the property operated at breakeven and averaged 97% occupancy. Throughout 2013 occupancy has declined significantly, ending the third quarter with an average occupancy of 73%. The decrease in occupancy was the result of a six week period when the property operated without a manager due to a transition in the management of the complex. From 2010 to 2012 the property was managed by a third party. The operating general partner resumed direct management in January 2013, but was not able to fill the manager position until March 2013. Operations suffered during this time and have been slow to recover. To address the vacancy issue the manager is offering a leasing concession to pay the security deposit over the first three months of occupancy rather than in a lump sum at move-in. The property operated below breakeven through the third quarter of 2013. The operating general partner has stated that any operating deficits will be funded by deferring related party management fees and, if necessary, they will advance funds to the Operating Partnership. The investment general partner inspected the property on June 10, 2013, and found it to be in fair condition, due to noticeable damage to the exterior brick and the condition of the common area corridors. The operating general partner stated that the areas of concern will be addressed and repaired. All mortgage, tax, 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 located in Newton, Iowa. Occupancy has trended downward since 2009, causing below breakeven operations. The management company attributed the poor occupancy to soft market conditions. In 2012, occupancy averaged 77%, but operating expenses were low and the property operated above breakeven. Management continues to increase advertising in surrounding areas and to offer rental incentives. Occupancy was at 83% as of September 2013. The property is operating below breakeven due to an increase in maintenance expenses. As a result of the increase in rental activity, several units needed to be made rent ready causing an increase in unit turn costs. Expenses are expected to stabilize going forward. A site visit was completed in June 2012 and the property was found to be in good condition. 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.
In November 2012, the operating general partner of Bear Creek of Naples entered into an agreement to sell the property to a non-affiliated third party buyer and the transaction closed on December 12, 2012. The sales price of the property was $6,960,000, which included the outstanding mortgage balance of approximately $4,608,790 and cash proceeds to the investment partnership of $833,501. Of the total proceeds received by the investment partnership, $15,000 was paid to BCAMLP for expenses related to the sale, which include third party legal costs. The remaining proceeds from the sale of $818,501 were returned to cash reserves held by Series 18. 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 $818,501 as of December 31, 2012. The gain on the sale includes a receivable in the amount of $70,000, which was recorded for Series 18 as of December 31, 2012. In February 2013, additional sale proceeds of $20,000 were received and returned to the cash reserves held by Series 18. In May 2013, additional sale proceeds of $13,000 were received and returned to the cash reserves held by Series 18.
Marengo Park Apartments LP (West Pine Homes) is a 24-unit property located in Marengo Park, IA. Occupancy has historically been an issue at the property, mainly due to evictions for nonpayment of rent and residents vacating because of job losses. Occupancy increased considerably in the third quarter of 2013 and was at 92% as of September 30, 2013. Current marketing includes advertising on Rent.com and in the Local Free Shopper (which covers three cities/towns), posting fliers in the local community, frequent contacts with local housing agencies, as well as 'for rent' signs located on the property. The property was previously operating under a Servicing Workout Plan approved by Rural Development which expired on September 30, 2012. The Plan aimed to fund the replacement reserves, make payables current, and resolve capital improvement issues through expanded marketing efforts to improve occupancy. Currently, a new workout plan for the property is being reviewed by Rural Development. The property was operating below breakeven as of September 30, 2013 due to low occupancy rates through the first six months of 2013. A site visit in was performed in June 2012 and the property was found to be in good condition. All debt service, taxes, and insurance are current. 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 September 2012, the investment general partner transferred its interest in San Joaquin Enterprises III, A CA Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,681,071 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $563 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $20,937 were returned to cash reserves held by Series 18. 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 $20,937 as of September 30, 2012. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the 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 ten years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest.
In January 2013, the operating general partner of Lakeview Meadows II LDHA LP approved an agreement to sell the property to an unaffiliated third party buyer and the transaction was scheduled to close in December 2013. However, the transaction is not moving forward due to the buyer's inability to obtain financing.
In February 2013, the operating general partner of Westminster Meadow LDHA Limited Partnership entered into an agreement to sell the property to an unaffiliated third party buyer and the transaction closed on March 26, 2013. The sales price of the property was $1,817,470, which included the outstanding mortgage balance of approximately $1,767,470 and cash proceeds to the investment partnership of $1,000. Of the total proceeds received by the investment partnership, $1,000 was paid to BCAMLP for expenses related to the sale, which include third party legal costs. There were no remaining proceeds from the sale 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 March 31, 2013.
In August 2013, the investment general partner of Series 18 and Series 19 transferred their interests in Clarke School LP, to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $2,716,511 and cash proceeds to the investment partnerships of $14,150 and $5,850, for Series 18 and Series 19, respectively. Of the total proceeds received, $9,150 and $5,850, for Series 18 and 19, respectively, represents reporting fees due to an affiliate of the investment partnerships 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. No proceeds were returned to cash reserves held by Series 18 and Series 19, respectively. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's 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 September 30, 2013. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the "RRN") with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there were a capital transaction involving the property owned by the Operating Partnership at any time within five years from the initial transfer date, there would be residual payment of 50% of any net distributable proceeds due to the investment partnership in effect at the date the investment limited partners transferred their respective interests.
Series 19
As of September 30, 2013 and 2012 the average Qualified Occupancy for the series was 100%. The series had a total of 8 properties at September 30, 2013, all of which were at 100% Qualified Occupancy.
For the six month periods ended September 30, 2013 and 2012, Series 19 reflects a net loss from Operating Partnerships of $(139,563) and $(132,571), respectively, which includes depreciation and amortization of $172,905 and $295,757, 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 in Carrollton, Missouri. The property entered into a mortgage modification agreement in 2010 that converted the hard debt note to a soft note payable from surplus cash. The lack of debt service together with strong occupancy and reduced expenses has allowed Carrollton Villa to operate above breakeven through the third quarter of 2013. The property averaged 99% occupancy in 2012 and 98% through September 2013. The Missouri Housing Development Commission approved a rent increase request with an effective date of May 1, 2013. The rent increase will increase potential revenue by $8,820 annually. The real estate taxes, mortgage and insurance are all current as of September 2013. On December 31, 2009, the 15-year low income housing tax credit compliance period expired with respect to Carrollton Villas. The investment general partner continues to look at various disposition opportunities consistent with the investment objectives of the investment partnership.
Sherwood Knoll L.P. (Sherwood Knoll Apartments) is a 24-unit family project in Rainsville, Alabama. Management has struggled to maintain an average occupancy of 90% since 2011 despite changes in site staff that were expected to improve operations. Although the site manager has improved rent collection, the property is still struggling to maintain occupancy. Average occupancy is low at 88% as of September 2013 and operating expenses have slightly increased leading to below breakeven operations. The property has no operating cash and reported an underfunded tax and insurance escrow. The operating deficit guarantee is unlimited in time and amount. Mortgage and insurance are all current. The operating general partner and affiliated management company have been unresponsive to the investment general partner's requests for information. The investment general partner intends to continue to monitor operations and request updates from the management company. 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. The property averaged 92% occupancy through the third quarter of 2013 and is operating below breakeven. The property is located in a very competitive market in close proximity to two tax credit properties and two similarly priced market rate properties. This competition has reduced management's ability to increase rents and at times creates a concession driven market; however, no concessions are being offered at this time. Operating expenses increased during the third quarter of 2013 due to turnover costs and higher water rates. To help mitigate these expenses, management has implemented proactive measures such as increasing the frequency of unit inspections to identify damages and water leaks. The operating general partner and investment general partner have explored refinancing and disposition options, but the $770,000 loan prepayment penalty has prevented a sale or refinance. The operating general partner plans to continue funding deficits at the property and hopes to refinance when the loan matures in 2014. Written documentation received by the investment limited partner confirms that the property's mortgage, real estate taxes, and insurance payments are all current. On December 31, 2009, the 15-year low income housing tax credit compliance period expired with respect to Northpointe 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 2012, the investment general partners of Series 19 and Boston Capital Tax Credit Fund IV LP - Series 24 and Series 42 transferred their respective interests in Jeremy Associates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $2,804,427 and cash proceeds to the investment partnerships of $18,200, $4,536, and $2,264, for Series 19, Series 24 and Series 42, respectively. Of the total proceeds received $13,200, $4,536, and $2,264, for Series 19, Series 24 and Series 42, respectively, represents reporting fees due to an affiliate of the respective investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds $5,000 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 19, Series 24 and Series 42, 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, 2012.
In July 2012, the investment general partner transferred its interest in Hebbronville Apartments, Limited to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $480,322 and cash proceeds to the investment partnership of $9,000. Of the total proceeds received, $2,625 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $6,375 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 $6,375 as of September 30, 2012. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the 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 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. The investment general partner on behalf of the investment partnership, also executed a Transfer and Assignment of Mineral Rights preserving the investment partnership's right to any potential proceeds that may be distributed from production of minerals at the property.
In July 2012, the investment general partner transferred its interest in Lone Star Seniors Apartments, Ltd. to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $566,795 and cash proceeds to the investment partnership of $9,000. Of the total proceeds received, $2,625 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $6,375 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 $6,375 as of September 30, 2012. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the 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 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. The investment general partner on behalf of the investment partnership, also executed a Transfer and Assignment of Mineral Rights preserving the investment partnership's right to any potential proceeds that may be distributed from production of minerals at the property.
In July 2012, the investment general partner transferred its interest in Martindale Apartments, Ltd. to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $619,411 and cash proceeds to the investment partnership of $9,000. Of the total proceeds received, $2,625 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $6,375 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 $6,375 as of September 30, 2012. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the 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 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. The investment general partner on behalf of the investment partnership, also executed a Transfer and Assignment of Mineral Rights preserving the investment partnership's right to any potential proceeds that may be distributed from production of minerals at the property.
In September 2012, the investment general partner transferred its interest in Hollister Investment Group V to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,635,390 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $1,313 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $20,187 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 $20,187 as of September 30, 2012. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the 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 ten years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest.
In September 2012, the investment general partner transferred its interest in Jefferson Square to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,889,271 and cash proceeds to the investment partnership of $1,200,000. Of the total proceeds received, $68,587 represents reporting fees due to an affiliate of the investment partnership; and the balance represents proceeds from the transfer. Of the remaining proceeds, $13,400 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $1,118,013 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 $1,118,013 as of September 30, 2012.
In December 2012, the investment general partner transferred its interest in Holts Summit Square, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $997,010 and cash proceeds to the investment partnership of $51,360. Of the total proceeds received, $8,125 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 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $38,235 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 $38,235 as of December 31, 2012.
Munford Village Ltd. (Munford Village) is a 24-unit family property in Munford, Alabama. Occupancy declined from 2011 through 2012 to 84% with operations below breakeven. In addition to low occupancy, increased administrative, maintenance and insurance expenses have impacted operations. This decline, both in occupancy and overall operations, has continued in 2013. Occupancy is averaging 87% as of September 2013 and the property is operating below breakeven. The operating general partner and affiliated management company have been unresponsive to all calls and written attempts to discuss the property's operations. The 15-year low income housing tax credit compliance period expired on December 31, 2008.
In August 2013, the investment general partner of Series 18 and Series 19 transferred their interests in Clarke School LP, to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $2,716,511 and cash proceeds to the investment partnerships of $14,150 and $5,850, for Series 18 and Series 19, respectively. Of the total proceeds received, $9,150 and $5,850, for Series 18 and 19, respectively, represents reporting fees due to an affiliate of the investment partnerships 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. No proceeds were returned to cash reserves held by Series 18 and Series 19, respectively. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's 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 September 30, 2013. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the "RRN") with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there were a capital transaction involving the property owned by the Operating Partnership at any time within five years from the initial transfer date, there would be residual payment of 50% of any net distributable proceeds due to the investment partnership in effect at the date the investment limited partners transferred their respective interests.
Off Balance Sheet Arrangements
None.
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.
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Item 3. |
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Not Applicable |
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Item 4. |
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(a) |
Evaluation of Disclosure Controls and Procedures |
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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. |
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(b) |
Changes in Internal Controls |
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There were no changes in the Fund's internal control over financial reporting that occurred during the quarter ended September 30, 2013 that materially affected, or are reasonably likely to materially affect, the Fund's internal control over financial reporting. |
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Item 1. |
Legal Proceedings |
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None |
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Item 1A. |
Risk Factors |
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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, 2013. |
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Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
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None |
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Item 3. |
Defaults upon Senior Securities |
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None |
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Item 4. |
Mine Safety Disclosures |
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Not Applicable |
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Item 5. |
Other Information |
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None |
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Item 6. |
Exhibits |
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(a)Exhibits |
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31.a Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herein |
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31.b Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herein |
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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 |
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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 September 30, 2013 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.
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Boston Capital Tax Credit Fund III L.P. |
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By: |
Boston Capital Associates III L.P. |
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General Partner |
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By: |
BCA Associates Limited Partnership, |
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General Partner |
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By: |
C&M Management Inc., |
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General Partner |
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Date: November 14, 2013 |
By: |
/s/ John P. Manning |
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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:
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DATE: |
SIGNATURE: |
TITLE: |
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November 14, 2013 |
/s/ John P. Manning |
Director, President |
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John P. Manning |
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DATE: |
SIGNATURE: |
TITLE: |
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November 14, 2013 |
/s/ Marc N. Teal |
Chief Financial Officer |
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Marc N. Teal |