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EX-32 - BCTC III CERTIFICATION 906 - BOSTON CAPITAL TAX CREDIT FUND III L Pb30617cert906mnt.htm
EX-32 - BCTC III CERTIFICATION 906 - BOSTON CAPITAL TAX CREDIT FUND III L Pb30617cert906jpm.htm
EX-31 - BCTC III CERTIFICATION 302 - BOSTON CAPITAL TAX CREDIT FUND III L Pb30617cert302mnt.htm
EX-31 - BCTC III CERTIFICATION 302 - BOSTON CAPITAL TAX CREDIT FUND III L Pb30617cert302jpm.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 June 30, 2017

or

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

For the transition period from _______ to _______

Commission file number        0-21718

 

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

Delaware

52-1749505

(State or other jurisdiction

(I.R.S. Employer

of incorporation or organization)

Identification No.)

 

One Boston Place, Suite 2100, Boston, Massachusetts  02108
(Address of principal executive offices)           (Zip Code)

                   (617) 624-8900                   

(Registrant's telephone number, including area code)

 

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ý

No 

 

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, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer □

Accelerated Filer □

Non-accelerated filer □ (Do not check if a smaller reporting company)

Smaller Reporting Company ý

Emerging Growth Company □

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

 

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

 

Yes 

No ý

 

BOSTON CAPITAL TAX CREDIT FUND III L.P.

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 2017

 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION

 
   

Pages

 

Item 1. Condensed Financial Statements

   

Condensed Balance Sheets

4-9

   

Condensed Statements of Operations

10-15

   

Condensed Statements of Changes in 
Partners' Capital (Deficit)


16-19

   

Condensed Statements of Cash Flows

20-25

   

Notes to Condensed Financial 
Statements


26-38

     
 

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



39-49

     
 

Item 3. Quantitative and Qualitative
Disclosures About Market Risk


49

     
 

Item 4. Controls and Procedures

49

     

PART II - OTHER INFORMATION

 
     
 

Item 1. Legal Proceedings

50

     
 

Item 1A. Risk Factors

50

     
 

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


50

     
 

Item 3. Defaults Upon Senior Securities

50

     
 

Item 4. Mine Safety Disclosures

50

     
 

Item 5. Other Information

50

     
 

Item 6. Exhibits 

50

     

Signatures

51

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

 

 

 

June 30,
2017

March 31,
2017

 

ASSETS

Cash and cash equivalents

$   2,006,839

$   1,460,257

 


$   2,006,839


$   1,460,257

     

LIABILITIES

   
     

Accounts payable & accrued expenses 

$       1,308

$      27,746

Accounts payable affiliates (Note C)

15,216,239

15,299,405

Capital contributions payable (Note D)

      26,447

      26,447

 


  15,243,994


  15,353,598

     

PARTNERS' CAPITAL (DEFICIT)

   
     

Assignees 
  
   Units of limited partnership 
   interest, $10 stated value per BAC; 
   22,000,000 authorized BACs;

21,996,102 issued and 21,843,147

outstanding as of June 30, 2017

and March 31, 2017

 







(11,349,054)







(11,998,679)

General Partner

 (1,888,101)

 (1,894,662)

 


(13,237,155)


(13,893,341)

 


$   2,006,839


$   1,460,257

 













The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

Series 15

 

 

 

June 30,
2017

March 31,
2017

 

ASSETS

 

 

 

 

Cash and cash equivalents

$    151,091

$     64,641

 


$    151,091


$     64,641

     

LIABILITIES

   
     

Accounts payable & accrued expenses 

$      1,146

$      6,246

Accounts payable affiliates (Note C)

3,031,299

3,039,294

Capital contributions payable (Note D)

          -

          -

 


  3,032,445


  3,045,540

     

PARTNERS' CAPITAL (DEFICIT)

   
     

Assignees 
  
   Units of limited partnership 
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,870,500 issued and 3,830,900

outstanding as of June 30, 2017

and March 31, 2017







(2,530,351)







(2,628,901)

General Partner

  (351,003)

  (351,998)

 


(2,881,354)


(2,980,899)

 


$    151,091


$     64,641












The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED BALANCE SHEETS

(Unaudited)

Series 16



June 30,
2017

March 31,
2017

 

ASSETS

 

 

 

     

Cash and cash equivalents

$    329,053

$    327,901

 


$    329,053


$    327,901

     

LIABILITIES

   
     

Accounts payable & accrued expenses 

$      -

$      -

Accounts payable affiliates (Note C)

7,927,834

8,025,811

Capital contributions payable (Note D)

          -

      -

 


  7,927,834


  8,025,811

     

PARTNERS' CAPITAL (DEFICIT)

   
     

Assignees 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,429,402 issued and 5,392,500

outstanding as of June 30,

2017 and March 31, 2017







(7,056,185)







(7,154,323)

General Partner

  (542,596)

  (543,587)

 


(7,598,781)


(7,697,910)

 


$    329,053


$    327,901










 

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



June 30,
2017

March 31,
2017

 

ASSETS

 

 

 

Cash and cash equivalents

$    540,223

$    559,787

 


$    540,223


$    559,787

     

LIABILITIES

   
     

Accounts payable & accrued expenses 

$      -

$     14,000

Accounts payable affiliates (Note C)

-

-

Capital contributions payable (Note D)

      7,893

      7,893

 


   7,893


   21,893

     

PARTNERS' CAPITAL (DEFICIT)

   
     

Assignees 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,000,000 issued and 4,962,947

outstanding as of June 30, 2017

and March 31, 2017







899,214







904,722

General Partner

  (366,884)

  (366,828)

 


  532,330


537,894

 


$    540,223


$    559,787











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



June 30,
2017

March 31,
2017

 

ASSETS

 

 

 

     

Cash and cash equivalents

$    820,187

$    318,027

 


$    820,187


$    318,027

     

LIABILITIES

   
     

Accounts payable & accrued expenses 

$      162

$       -

Accounts payable affiliates (Note C)

4,257,106

4,234,300

Capital contributions payable (Note D)

     18,554

     18,554

 


  4,275,822


  4,252,854

     

PARTNERS' CAPITAL (DEFICIT)

   
     

Assignees 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,616,200 issued and 3,598,100

outstanding as of June 30, 2017

and March 31, 2017







(3,110,851)







(3,585,251)

General Partner

  (344,784)

  (349,576)

 


(3,455,635)


(3,934,827)

 


$    820,187


$    318,027

 











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

 



June 30,
2017

March 31,
2017

 

ASSETS

 

 

 

     

Cash and cash equivalents

$    166,285

$   189,901

 


$    166,285


$   189,901

     

LIABILITIES

   
     

Accounts payable & accrued expenses 

$      -

$      7,500

Accounts payable affiliates (Note C)

-

-

Capital contributions payable (Note D)

          -

          -

 


      -


      7,500

     

PARTNERS' CAPITAL (DEFICIT)

   
     

Assignees 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   4,080,000 issued and 4,058,700

outstanding as of June 30, 2017

and March 31, 2017







449,119







465,074

General Partner

  (282,834)

  (282,673)

 


    166,285


   182,401

 


$    166,285


$   189,901

 










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 June 30,
(Unaudited)

 

 


2017


2016

         

Income

  Interest income

$       696

 

$       810

 

  Other income

    12,038

 

     9,629

 
 


    12,734

 


    10,439

 

Share of Income from Operating 
  Partnerships(Note D)


  743,423


  147,623

         

Expenses

       

  Professional fees

22,050

 

26,302

 

  Fund management fee, net (Note C) 

56,397

 

82,339

 

  General and administrative expenses

    21,524

 

    38,299

 

  


    99,971

 


   146,940

 
         

  NET INCOME (LOSS)

$  656,186

 

$  11,122

 
         

Net income (loss) allocated to limited assignees

$ 649,625

 

$ 11,011

 
         

Net income (loss) allocated to general partner

$    6,561

 

$    111

 
         

Net income (loss) per BAC

$      .03

 

$      .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 June 30,

(Unaudited)

 

Series 15


2017


2016

         

Income

  Interest income

$         12

 

$        148

 

  Other income

         -

 

         -

 


         12


        148

Share of Income from Operating 
  Partnerships(Note D)


    109,786


          -

 

 

         

Expenses

       

  Professional fees

4,725

 

5,904

 

  Fund management fee, net (Note C) 

1,293

 

2,315

 

  General and administrative expenses

      4,235

 

      6,486

 

  


    10,253

 


    14,705

 
         

  NET INCOME (LOSS)

$   99,545

 

$   (14,557)

 
         

Net income (loss) allocated to limited assignees

$ 98,550

 

$ (14,411)

 
         

Net income (loss) allocated to general partner

$       995

 

$      (146)

 
         

Net income (loss) per BAC

$     .03

 

$     (.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 June 30,
(Unaudited)

 

Series 16


2017


2016

       

Income

     

  Interest income

$        271

 

$        213

  Other income

         80

 

        603

 


        351

 


        816

Share of Income from Operating 
  Partnerships(Note D)


    124,933


    147,623

       

Expenses

     

  Professional fees

5,775

 

6,499

  Fund management fee, net (Note C) 

15,540

 

29,195

  General and administrative expenses

      4,840

 

      8,175

  


     26,155

 


     43,869

       

  NET INCOME (LOSS)

$   99,129

 

$    104,570

       

Net income (loss) allocated to limited assignees

$    98,138

 

$    103,524

       

Net income (loss) allocated to general partner

$       991

 

$      1,046

       

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


Three Months Ended June 30,
(Unaudited)


Series 17


2017


2016

         

Income

  Interest income

$        292

 

$        270

 

  Other income

     11,958

 

     8,943

 
 


     12,250

 


      9,213

 

Share of Income from Operating 
  Partnerships(Note D)


   -


   -

         

Expenses

       

  Professional fees

3,850

 

5,056

 

  Fund management fee, net (Note C) 

9,514

 

19,932

 

  General and administrative expenses

      4,450

 

       9,665

 

  


     17,814

 


     34,653

 
         

  NET INCOME (LOSS)

$  (5,564)

 

$  (25,440)

 
         

Net income (loss) allocated to limited assignees

$  (5,508)

 

$  (25,186)

 
         

Net income (loss) allocated to general partner

$     (56)

 

$      (254)

 
         

Net income (loss) per BAC

$    (.00)

 

$      (.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 June 30,

(Unaudited)


Series 18

 


2017


2016

     

Income

   

  Interest income

$         99

$         85

  Other income

      -

          -

 


      99


         85

Share of Income from Operating 
  Partnerships(Note D)


    508,704


     -

     

Expenses

   

  Professional fees

4,375

5,022

  Fund management fee, net (Note C) 

21,257

22,854

  General and administrative expenses

      3,979

      5,909

  


     29,611


     33,785

     

  NET INCOME (LOSS)

$    479,192

$   (33,700)

     

Net income (loss) allocated to limited assignees

$    474,400

$   (33,363)

     

Net income (loss) allocated to general partner

$      4,792

$      (337)

     

Net income (loss) per BAC

$      .13

$     (.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 June 30,
(Unaudited)



Series 19


2017


2016

     

Income

   

  Interest income

$        22

$        94

  Other income

      -

        83


      22


       177

Share of Income from Operating 
  Partnerships(Note D)


    -


    -

     

Expenses

   

  Professional fees

3,325

3,821

  Fund management fee, net (Note C) 

8,793

8,043

  General and administrative expenses

     4,020

     8,064

  


  16,138


  19,928

     

  NET INCOME (LOSS)

$  (16,116)

$  (19,751)

     

Net income (loss) allocated to limited assignees

$  (15,955)

$  (19,553)

     

Net income (loss) allocated to general partner

$     (161)

$     (198)

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 CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Three Months Ended June 30, 2017

(Unaudited)


 




Assignees



General
Partner





Total

       

Partners' capital 
 (deficit)
  April 1, 2017



$(11,998,679)



$ (1,894,662)



$(13,893,341)

       

Net income (loss)

    649,625

      6,561

    656,186

       

Partners' capital 
 (deficit),
  June 30, 2017



$(11,349,054)



$ (1,888,101)



$(13,237,155)

       





















 

 

 

 







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)

Three Months Ended June 30, 2017

(Unaudited)

 

 



Assignees

General
Partner

Total

Series 15

 

     

Partners' capital 
 (deficit)
  April 1, 2017



$ (2,628,901)



$ (351,998)



$ (2,980,899)

       

Net income (loss)

     98,550

      995

    99,545

       

Partners' capital 
 (deficit),
  June 30, 2017



$ (2,530,351)



$ (351,003)



$ (2,881,354)

       
       

Series 16

 

     

Partners' capital 
 (deficit)
  April 1, 2017



$ (7,154,323)



$ (543,587)



$ (7,697,910)

       

Net income (loss)

   98,138

    991

   99,129

       

Partners' capital 
 (deficit),
  June 30, 2017



$ (7,056,185)



$ (542,596)



$ (7,598,781)

       












 

 

 

 

 

 

 

 





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)

Three Months Ended June 30, 2017

(Unaudited)

 

 

 



Assignees

General
Partner

Total

Series 17

 

     

Partners' capital 
 (deficit)
  April 1, 2017



$  904,722



$  (366,828)



$  537,894

       

Net income (loss)

     (5,508)

      (56)

     (5,564)

       

Partners' capital 
 (deficit),
  June 30, 2017



$     899,214



$  (366,884)



$     532,330

       
       

Series 18

 

     

Partners' capital 
 (deficit)
  April 1, 2017



$ (3,585,251)



$  (349,576)



$ (3,934,827)

Net income (loss)

   474,400

     4,792

    479,192

       

Partners' capital 
 (deficit),
  June 30, 2017



$ (3,110,851)



$  (344,784)



$ (3,455,635)

       










 

 

 









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)

Three Months Ended June 30, 2017

(Unaudited)

 

 



Assignees

General
Partner

Total

Series 19

 

     

Partners' capital 
 (deficit)
  April 1, 2017



$   465,074



$ (282,673)



$   182,401

       

Net income (loss)

   (15,955)

     (161)

   (16,116)

       

Partners' capital 
 (deficit),
  June 30, 2017



$    449,119



$ (282,834)



$    166,285

       




























 

 





The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

 

2017

2016

Cash flows from operating activities:

   
     

   Net Income (Loss)

$   656,186

$     11,122

   Adjustments to reconcile net income
     (loss) to net cash (used in)
     provided by operating activities

   

      Share of Income from 
        Operating Partnerships


(743,423)


(147,623)

   Changes in assets and liabilities

   

     (Decrease) Increase in accounts         payable and accrued expenses

 

(26,438)

 

(5,154)

     (Decrease) Increase in accounts
        payable affiliates


   (83,166)


     76,152

     

      Net cash (used in) provided by 
        operating activities


  (196,841)


   (65,503)

     

Cash flows from investing activities:

   
     

   Proceeds from the disposition of
     Operating Partnerships


    743,423


     97,615

     

   Net cash provided by
     investing activities


    743,423


     97,615

     

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


546,582


32,112

     

Cash and cash equivalents, beginning

  1,460,257

  1,783,433

     

Cash and cash equivalents, ending

$  2,006,839

$  1,815,545

     
     
     
     
     
     
     

 


 

 

 

 

 

 



The accompanying notes are an integral part of these condensed statements

 

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 15

 

 

2017

2016

Cash flows from operating activities:

   
     

   Net Income (Loss)

$   99,545

$   (14,557)

   Adjustments to reconcile net income
     (loss) to net cash (used in)
     provided by operating activities

   

      Share of Income from 
        Operating Partnerships


(109,786)


-

   Changes in assets and liabilities

   

     (Decrease) Increase in accounts         payable and accrued expenses


(5,100)


(6,498)

     (Decrease) Increase in accounts
        payable affiliates


    (7,995)


      9,027

     

      Net cash (used in) provided by 
        operating activities


   (23,336)


   (12,028)

     

Cash flows from investing activities:

   
     

   Proceeds from the disposition of
     Operating Partnerships

 

  109,786

 

        -

     

   Net cash provided by
     investing activities

 

  109,786

 

        -

     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


86,450


(12,028)

     

Cash and cash equivalents, beginning

     64,641

    116,858

     

Cash and cash equivalents, ending

$    151,091

$    104,830

     
     
     
     
     
     

 

 

 

 

 

 

 

 

 

 


The accompanying notes are an integral part of these condensed statements

 

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS


Three Months Ended June 30,
(Unaudited)


Series 16

 

2017

2016

Cash flows from operating activities:

   

   Net Income (Loss)

$ 99,129

$ 104,570

   Adjustments to reconcile net income
     (loss) to net cash (used in)
     provided by operating activities

   

      Share of Income from 
        Operating Partnerships


(124,933)


(147,623)

   Changes in assets and liabilities

   

     (Decrease) Increase in accounts         payable and accrued expenses


-


20,841

     (Decrease) Increase in accounts
        payable affiliates


  (97,977)


  43,221

     

      Net cash (used in) provided by 
        operating activities


 (123,781)


    21,009

     

Cash flows from investing activities:

   
     

   Proceeds from the disposition of
     Operating Partnerships

 

  124,933

 

   97,615

     

   Net cash provided by
     investing activities

 

 124,933

 

  97,615

     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


1,152


118,624

     

Cash and cash equivalents, beginning

   327,901

   381,450

     

Cash and cash equivalents, ending

$   329,053

$   500,074

     

 

 

 

 

 

 

 

 

 

 

 

 

 




The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Three Months Ended June 30,

(Unaudited)

Series 17

 

2017

2016

Cash flows from operating activities:

   
     

   Net Income (Loss)

$  (5,564)

$  (25,440)

   Adjustments to reconcile net income
     (loss) to net cash (used in)
     provided by operating activities

   

      Share of Income from 
        Operating Partnerships


-


-

   Changes in assets and liabilities

   

     (Decrease) Increase in accounts         payable and accrued expenses


(14,000)


(6,499)

     (Decrease) Increase in accounts
        payable affiliates


        -


        -

 

 

 

      Net cash (used in) provided by 
        operating activities


(19,564)


  (31,939)

     

Cash flows from investing activities:

   
     

   Proceeds from the disposition of
     Operating Partnerships


        -


        -

     

   Net cash provided by
     investing activities


        -


         -

     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(19,564)


(31,939)

     

Cash and cash equivalents, beginning

    559,787

    640,398

     

Cash and cash equivalents, ending

$    540,223

$    608,459

     

 

 

 

 

 

 

 

 

 

 

 

 

 




The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Three Months Ended June 30,

(Unaudited)

Series 18

 

2017

2016

Cash flows from operating activities:

   
     

   Net Income (Loss)

$ 479,192

$ (33,700)

   Adjustments to reconcile net income
     (loss) to net cash (used in)
     provided by operating activities

   

      Share of Income from 
        Operating Partnerships


(508,704)


-

   Changes in assets and liabilities

   

     (Decrease) Increase in accounts         payable and accrued expenses


162


(6,499)

     (Decrease) Increase in accounts
        payable affiliates


    22,806


    23,904

     

      Net cash (used in) provided by 
        operating activities


  (6,544)


 (16,295)

     

Cash flows from investing activities:

   
     

   Proceeds from the disposition of
     Operating Partnerships


508,704


        -

     

   Net cash provided by
     investing activities


 508,704


       -

     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


502,160


(16,295)

     

Cash and cash equivalents, beginning

   318,027

   353,832

     

Cash and cash equivalents, ending

$   820,187

$   337,537

     
     
     
     
     
     
     

 

 

 

 

 

 




The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund III L.P.

CONDENSED STATEMENTS OF CASH FLOWS

Three Months Ended June 30,

(Unaudited)


Series 19

 

2017

2016

Cash flows from operating activities:

   
     

   Net Income (Loss)

$   (16,116)

$   (19,751)

   Adjustments to reconcile net income
     (loss) to net cash (used in)
     provided by operating activities

   

      Share of Income from 
        Operating Partnerships


-


-

   Changes in assets and liabilities

   

     (Decrease) Increase in accounts         payable and accrued expenses


(7,500)


(6,499)

     (Decrease) Increase in accounts
        payable affiliates


          -


          -

     

      Net cash (used in) provided by 
        operating activities


   (23,616)


   (26,250)

     

Cash flows from investing activities:

   
     

   Proceeds from the disposition of
     Operating Partnerships

 

        -

 

        -

     

   Net cash provided by
     investing activities

 

        -

 

        -

     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(23,616)


(26,250)

     

Cash and cash equivalents, beginning

    189,901

    290,895

     

Cash and cash equivalents, ending

$    166,285

$    264,645

     
     


 

 

 

 

 

 

 

 

 

 

 



The accompanying notes are an integral part of these condensed statements

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS
June 30, 2017

(Unaudited)

 

 

NOTE A - ORGANIZATION


Boston Capital Tax Credit Fund III L.P. (the "Fund") was formed under the laws of the State of Delaware as of September 19, 1991 for the purpose of acquiring, holding, and disposing of limited partnership interests in operating partnerships which will acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated low-income apartment complexes ("Operating Partnerships"). Effective as of June 1, 2001 there was a restructuring, and as a result, the Fund's general partner was reorganized as follows. The general partner of the Fund continues to be Boston Capital Associates III L.P., a Delaware limited partnership. The general partner of the general partner of the Fund is now BCA Associates Limited Partnership, a Massachusetts limited partnership, whose sole general partner is C&M Management, Inc., a Massachusetts corporation whose limited partners are Herbert F. Collins and John P. Manning. Mr. Manning is the principal of Boston Capital Partners, Inc. The limited partner of the general partner is Capital Investment Holdings, a general partnership whose partners are various officers and employees of Boston Capital Partners, Inc. and its affiliates. The assignor limited partner is BCTC III Assignor Corp., a Delaware corporation which is wholly-owned by Herbert F. Collins and John P. Manning.


Pursuant to the Securities Act of 1933, the Fund filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective January 24, 1992 which covered the offering (the "Public Offering") of the Fund's beneficial assignee certificates ("BACs") representing assignments of units of the beneficial interest of the limited partnership interest of the assignor limited partner.  The Fund registered 20,000,000 BACs at $10 per BAC for sale to the public in one or more series.  On September 4, 1993 the Fund filed an amendment to Form S-11 with the Securities and Exchange Commission which registered an additional 2,000,000 BACs at $10 per BAC for sale to the public in one or more series. The registration for the additional BACs became effective on October 6, 1993. Offers and sales of BACs in Series 15 through 19 of the Fund were completed and the last of the BACs in Series 15, 16, 17, 18 and 19 were issued by the Fund on September 26, 1992, December 28, 1992, September 17, 1993, September 22, 1993, and December 17, 1993, respectively.  The Fund sold 3,870,500 of Series 15 BACs, for a total of $38,705,000; 5,429,402 of Series 16 BACs, for a total of $54,293,000; 5,000,000 of Series 17 BACs, for a total of $50,000,000; 3,616,200 of Series 18 BACs, for a total of $36,162,000; and 4,080,000 of Series 19 BACs, for a total of $40,800,000.  As of June 30, 2017, 3,830,900 BACs in Series 15, 5,392,500 BACs in Series 16, 4,962,947 BACs in Series 17, 3,598,100 BACs in Series 18, and 4,058,700 BACs in Series 19, 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
June 30, 2017

(Unaudited)

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of June 30, 2017 and for the three 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, 2017.




























 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
June 30, 2017

(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 June 30, 2017 and 2016 are as follows:

 

        2017

        2016

Series 15

$  8,005

$  9,027

Series 16

26,638

43,221

Series 17

13,611

22,029

Series 18

22,806

23,904

Series 19

  8,793

  8,793

 

$ 79,853

$106,974

The fund management fees paid for the three months ended June 30, 2017 and 2016 are as follows:

2017

2016

Series 15

$  16,000

$  -

Series 16

124,615

-

Series 17

13,611

22,029

Series 18

-

-

Series 19

   8,793

   8,793

$ 163,019

 

$ 30,822

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
June 30, 2017

(Unaudited)

 

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At June 30, 2017 and 2016, the Fund had limited partnership interests in 49 and 60 Operating Partnerships, respectively, which own or are constructing apartment complexes. The breakdown of Operating Partnerships within the Fund at June 30, 2017 and 2016 is as follows:

 

 

2017

2016

Series 15

12

14

Series 16

15

19

Series 17

5

9

Series 18

11

12

Series 19

  6

  6

 

 49

 60


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 June 30, 2017 and 2016 are as follows:

 

        2017

        2016

Series 15

$      -

$      -

Series 16

-

-

Series 17

7,893

7,893

Series 18

18,554

18,554

Series 19

      -

      -

 

$ 26,447

$ 26,447

 

During the three months ended June 30, 2017 the Fund disposed of four Operating Partnerships. A summary of the dispositions by Series for June 30, 2017 is as follows:

 

 

Operating
Partnership
Interest
Transferred

 

Sale of
Underlying
Operating
Partnership

 

Fund Proceeds
from
Disposition

 

Gain on
Disposition

Series 15

1

 

-

 

$

109,786

 

$

109,786

Series 16

2

 

-

   

124,933

   

124,933

Series 17

-

 

-

   

-

   

-

Series 18

-

 

1

   

508,704

   

508,704

Series 19

-

 

-

   

-

   

-

Total

3

 

1

 

$

743,423

 

$

743,423

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
June 30, 2017

(Unaudited)

 

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

 

During the three months ended June 30, 2016 the Fund disposed of one Operating Partnership. A summary of the dispositions by Series for June 30, 2016 is as follows:

 

 

Operating
Partnership
Interest
Transferred

 

Sale of
Underlying
Operating
Partnership

 

Fund Proceeds
from
Disposition *

 

Gain on
Disposition

Series 15

-

 

-

 

$

-

 

$

-

Series 16

1

 

-

   

97,615

   

147,623

Series 17

-

 

-

   

-

   

-

Series 18

-

 

-

   

-

   

-

Series 19

-

 

-

   

-

   

-

Total

1

 

-

 

$

97,615

 

$

147,623

 

* Fund proceeds from disposition does not include $50,008 which was due to a writeoff of capital contribution payable in 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 three months ended March 31, 2017.

 


Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
June 30, 2017

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)


 

        2017

        2016

     

Revenues

   

   Rental

$  2,043,911

$ 2,700,506

   Interest and other

     47,093

    51,169

     
 

  2,091,004

 2,751,675

     

Expenses

   

   Interest

258,207

313,528

   Depreciation and amortization

522,592

666,206

   Operating expenses

  1,631,123

 2,042,583

 


  2,411,922


 3,022,317

     

NET LOSS

$ (320,918)

$ (270,642)

     

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



$ (317,708)



$ (267,934)

     
     

Net loss allocated to other 
   Partners


$   (3,210)


$   (2,708)

     
     

 

 

* Amounts include $317,708 and $267,934 for 2017 and 2016, 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
June 30, 2017

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)

Series 15

 

        2017

        2016

     

Revenues

   

   Rental

$   472,551

$    592,173

   Interest and other

     12,136

     13,524

     
 

  484,687

    605,697

     

Expenses

   

   Interest

64,648

76,495

   Depreciation and amortization

122,301

137,899

   Operating expenses

   350,407

    412,557

 


  537,356


    626,951

     

NET LOSS

$   (52,669)

$   (21,254)

     

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



$   (52,142)



$   (21,041)

     
     

Net loss allocated to other 
   Partners


$     (527)


$      (213)

     
     

 

 

* Amounts include $52,142 and $21,041 for 2017 and 2016, 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
June 30, 2017

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)


Series 16

 

        2017

        2016

     

Revenues

   

   Rental

$   631,546

$    850,747

   Interest and other

     13,307

     12,292

     
 

   644,853

    863,039

     

Expenses

   

   Interest

72,743

101,234

   Depreciation and amortization

155,007

190,845

   Operating expenses

   494,968

    597,955

 


   722,718


    890,034

     

NET LOSS

$   (77,865)

$   (26,995)

     

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



$   (77,086)



$   (26,725)

     
     

Net loss allocated to other 
   Partners


$     (779)


$      (270)

     

 

* Amounts include $77,086 and $26,725 for 2017 and 2016, 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
June 30, 2017

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited))

 

 

Series 17

 

        2017

        2016

     

Revenues

   

   Rental

$   317,680

$    534,473

   Interest and other

      6,022

      9,481

     
 

  323,702

    543,954

     

Expenses

   

   Interest

31,037

55,779

   Depreciation and amortization

96,794

164,820

   Operating expenses

   242,164

    414,539

 


   369,995


    635,138

     

NET LOSS

$   (46,293)

$   (91,184)

     

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



$   (45,830)



$   (90,271)

     
     

Net loss allocated to other 
   Partners


$     (463)


$      (913)

 

     

 

* Amounts include $45,830 and $90,271 for 2017 and 2016, 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
June 30, 2017

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)

Series 18

 

        2017

        2016

     

Revenues

   

   Rental

$    434,057

$     536,554

   Interest and other

      10,140

      10,682

     
 

    444,197

     547,236

     

Expenses

   

   Interest

69,436

55,544

   Depreciation and amortization

107,002

131,833

   Operating expenses

    377,549

     460,742

 


    553,987


     648,119

     

NET LOSS

$   (109,790)

$   (100,883)

     

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



$   (108,692)



$    (99,874)

     
     

Net loss allocated to other 
   Partners


$    (1,098)


$    (1,009)

 

 

* Amounts include $108,692 and $99,874 for 2017 and 2016, 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
June 30, 2017

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)

Series 19

 

        2017

        2016

     

Revenues

   

   Rental

$    188,077

$    186,559

   Interest and other

      5,488

      5,190

     
 

    193,565

    191,749

     

Expenses

   

   Interest

20,343

24,476

   Depreciation and amortization

41,488

40,809

   Operating expenses

    166,035

    156,790

 


   227,866


   222,075

     

NET LOSS

$   (34,301)

$   (30,326)

     

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



$   (33,958)



$   (30,023)

     
     

Net loss allocated to other 
   Partners


$     (343)


$     (303)

     

 

 

* Amounts include $33,958 and $30,023 for 2017 and 2016, 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
June 30, 2017
(Unaudited)


NOTE E - TAXABLE LOSS

The Fund's taxable loss for the calendar year ended December 31, 2017 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 2013 remain open.

 

NOTE G - SUBSEQUENT EVENTS

 

Events that occur after the balance sheet date but before the financial statements were available to be issued must be evaluated for recognition or disclosure.  The effects of subsequent events that provide evidence about conditions that existed at the balance sheet date are recognized in the accompanying financial statements. Subsequent events, which provide evidence about conditions that existed after the balance sheet date, require disclosure in the accompanying notes.  Management evaluated the activity of the Fund through the date the financial statements were issued, and concluded that no subsequent events have occurred that would require recognition in the financial statements or disclosure in the notes to the financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO CONDENSED FINANCIAL STATEMENTS - CONTINUED
June 30, 2017
(Unaudited)

 

 

NOTE H - Plan of Liquidation

 

On March 30, 2016, our General Partner recommended that the BAC holders approve a plan of liquidation and dissolution for the Partnership, or the "Plan." The Plan was approved by the BAC holders on June 1, 2016, and was adopted by the General Partner on June 1, 2016. Pursuant to the Plan, the General Partner would be able to, without further action by the BAC holders:

 

  • liquidate the assets and wind up the business of the Partnership;

 

  • make liquidating distributions in cancellation of the BACs, if any;

 

  • dissolve the Partnership after the sale of all of the Partnership's assets; and

 

  • take, or cause the Partnership to take, such other acts and deeds and shall do, or cause the Partnership to do, such other things, as are necessary or appropriate in connection with the dissolution, winding up and liquidation of the Partnership, the termination of the responsibilities and liabilities of the Partnership under applicable law, and the termination of the existence of the Partnership.

 

Since the approval of the Plan by the BAC holders, we have continued to seek to sell the assets of the Partnership and use the sale proceeds and/or other Partnership funds to pay all expenses in connection with such sales, pay or make provision for payment of all Partnership obligations and liabilities, including accrued fees, and unpaid loans to the General Partner, and distribute the remaining assets as set forth in the Partnership Agreement. We expect to complete the sale of the apartment complexes approximately three to five years after the BAC holders approval of the Plan, which was June 1, 2016. However, because of numerous uncertainties, the liquidation may take longer or shorter than expected, and the final liquidating distributions, if any, may occur months after all of the apartment complexes of any given Series have been sold. As liquidation is not imminent, the Partnership will continue to report as a going concern.

 

For additional information regarding the sale of Partnership assets, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in this Annual Report on Form 10-K.

 

 

 

 

 

 

 

 

 

 

 

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, 2017. Although we believe that the assumptions underlying these forward-looking statements are reasonable, any of the assumptions could be inaccurate, and there can be no assurance that the forward-looking statements included in this Report will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved.

 

Liquidity

The Fund's primary source of funds was the proceeds of its Public Offering.  Other sources of liquidity include (i) interest earned on capital contributions unpaid for the three months ended June 30, 2017 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 June 30, 2017 were $79,853 and total fund management fees accrued as of June 30, 2017 were $15,216,239. During the three months ended June 30, 2017, $163,019 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.

Capital Resources

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

(Series 15)  The Fund commenced offering BACs in Series 15 on January 24, 1992.  Offers and sales of BACs in Series 15 were completed on September 26, 1992.  The Fund has committed proceeds to pay initial and additional installments of capital contributions to 68 Operating Partnerships in the amount of $28,257,701. Series 15 has since sold its interest in 56 of the Operating Partnerships.

 

During the quarter ended June 30, 2017, 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 June 30, 2017.

 

(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 49 of the Operating Partnerships.

 

During the quarter ended June 30, 2017, none of Series 16 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 16 has invested in as of June 30, 2017.

 

(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 44 of the Operating Partnerships.

During the quarter ended June 30, 2017, none of Series 17 net offering proceeds were used to pay capital contributions.  Series 17 has contributions payable to 1 Operating Partnership in the amount of $7,893 as of June 30, 2017. The remaining contributions will be released to the Operating Partnership when it has achieved the conditions set forth in its partnership agreement.

 

(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 23 of the Operating Partnerships.

During the quarter ended June 30, 2017, 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 June 30, 2017. 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 20 of the Operating Partnerships.

During the quarter ended June 30, 2017, 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 June 30, 2017.

Results of Operations

As of June 30, 2017 and 2016, the Fund held limited partnership interests in 49 and 60 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 months ended June 30, 2017 are as follows:

 

 

3 Months
Gross Fund
Management Fee


3 Months
Reporting Fee

3 Months Fund
Management Fee
Net of Reporting Fee

Series 15

$  8,005

$  6,712

$ 1,293

Series 16

26,638

11,098

15,540

Series 17

13,611

4,097

9,514

Series 18

22,806

1,549

21,257

Series 19

  8,793

    -

8,793

$ 79,853

$ 23,456

$ 56,397

       

 

 

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 June 30, 2017 and 2016, the average Qualified Occupancy for the series was 100%.  The series had a total of 12 properties June 30, 2017, all of which were at 100% Qualified Occupancy.

For the three month periods ended June 30, 2017 and 2016, Series 15 reflects a net loss from Operating Partnerships of $(52,669) and $(21,254), respectively, which includes depreciation and amortization of $122,301 and $137,899, respectively. This is an interim period estimate; it is not indicative of the final year end results.

 

Livingston Plaza, Limited (Livingston Plaza) is a 24-unit, family property located in Livingston, Texas. Due to low economic occupancy and a lack of qualified applicants the property operates at or just below breakeven. The operating general partner's operating deficit guarantee has expired. The operating general partner has informed the investment general partner that it is exploring various disposition strategies for this property. The investment general partner has concluded that these strategies would be consistent with the investment objectives of the investment partnership and that it is unlikely that any proceeds will be available for distribution to the investment limited partnership when disposition of the Operating Partnership occurs at some point in the future. The 15-year low income housing tax credit compliance period with respect to Livingston Plaza expired on December 31, 2008.

 

In December 2016, the investment general partner transferred its interest in Rio Mimbres II Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $696,452 and cash proceeds to the investment partnership of $18,000. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $16,000 were returned to cash reserves held by Series 15. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $16,000 as of December 31, 2016.

 

In May 2017, the investment general partner transferred its interest in Calexico Senior Apartments to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,716,118 and cash proceeds to the investment partnership of $111,786. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $109,786 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 transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $109,786 as of June 30, 2017.

 

The investment general partner will continue to monitor the following Operating Partnerships because of operational or other issues. However, these Operating Partnerships have all exited their LIHTC compliance period and there is therefore no risk to past credit delivery.

 

Beckwood Manor Eight Limited Partnership

University Meadows L.D.H.A. Limited Partnership

 

Series 16

 

As of June 30, 2017 and 2016, the average Qualified Occupancy for the series was 100%. The series had a total of 15 properties at June 30, 2017, all of which were at 100% Qualified Occupancy.

For the three month periods ended June 30, 2017 and 2016, Series 16 reflects a net loss from Operating Partnerships of $(77,865) and $(26,995), respectively, which includes depreciation and amortization of $155,007 and $190,845, respectively. This is an interim period estimate; it is not indicative of the final year end results.

In June 2016, the investment general partner of Series 16 and Boston Capital Tax Credit Fund IV - Series 23 transferred their respective interests in Mid City Associates Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $4,890,361 and cash proceeds to the investment partnerships of $124,955 and $4,545, for Series 16 and Series 23, respectively. Of the total proceeds received, $27,340 and $995, for Series 16 and Series 23, respectively, was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $97,615 and $3,550, for Series 16 and Series 23, respectively, were returned to cash reserves. 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 transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $97,615 and $3,550, for Series 16 and Series 23, respectively, as of June 30, 2016. In addition, equity outstanding for the Operating Partnership in the amount of $50,008 for Series 16 was recorded as gain on the transfer of the Operating Partnership as of June 30, 2016.

 

In July 2016, the investment general partner transferred its interest in Stony Ground Villas, Limited Partnership to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $1,254,826 and cash proceeds to the investment partnership of $30,000. Of the total proceeds received, $3,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $27,000 were returned to cash reserves held by Series 16. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. 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 transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $27,000 as of September 30, 2016.

 

In September 2016, the investment general partner sold its interest in Idabel Properties, Limited Partnership to an entity affiliated with the operating general partner. The sales price of the property was $1,359,124, which included the outstanding mortgage balance of approximately $1,215,163 and cash proceeds to the investment partnership of $143,961. Of the total proceeds received by the investment partnership, $2,500 was paid to BCAMLP for expenses related to the sale, which include third party legal costs. The remaining proceeds from the sale of $141,461 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 $141,461 as of September 30, 2016.

 

In May 2017, the investment general partner transferred its interest in Mendota Village Apartments to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,728,506 and cash proceeds to the investment partnership of $82,083. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $80,083 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 transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $80,083 as of June 30, 2017.

 

In May 2017, the investment general partner transferred its interest in Tuolumne City Investment Group II to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,406,018 and cash proceeds to the investment partnership of $46,850. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $44,850 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 transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $44,850 as of June 30, 2017.

 

The investment general partner will continue to monitor the following Operating Partnerships because of operational or other issues. However, these Operating Partnerships have all exited their LIHTC compliance period and there is therefore no risk to past credit delivery.

 

Anson Limited Partnership

Newport Manor, Limited Partnership

Series 17

 

As of June 30, 2017 and 2016, the average Qualified Occupancy for the series was 100%.  The series had a total of 5 properties at June 30, 2017, all of which were at 100% Qualified Occupancy.

For the three month periods ended June 30, 2017 and 2016, Series 17 reflects a net loss from Operating Partnerships of $(46,293) and $(91,184), respectively, which includes depreciation and amortization of $96,794 and $164,820, respectively. This is an interim period estimate; it is not indicative of the final year end results.

 

In August 2016, the investment general partner transferred its interest in White Castle Senior Citizen Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $703,433 and cash proceeds to the investment partnership of $5,000. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $2,500 were returned to cash reserves held by Series 17. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $2,500 as of September 30, 2016.

 

In October 2016, the investment general partner transferred its interest in Waynesburg House LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,342,784 and cash proceeds to the investment partnership of $15,000. Of the total proceeds received, $4,522 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $10,478 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 transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $10,478 as of December 31, 2016.

 

In December 2016, the investment general partner transferred its interest in Glenridge Housing Associates, a Washington Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,846,705 and cash proceeds to the investment partnership of $50,000. Of the total proceeds received, $2,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $48,000 were returned to cash reserves held by Series 17 The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. 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 transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $48,000 as of December 31, 2016.

 

In December 2016, the investment general partner transferred its interest in Pinehurst Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $706,465 and cash proceeds to the investment partnership of $12,000. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $9,500 were returned to cash reserves held by Series 17 The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $9,500 as of December 31, 2016.

 

Series 18

 

As of June 30, 2017 and 2016 the average Qualified Occupancy for the series was 100%.  The series had a total of 11 properties at June 30, 2017, all of which were at 100% Qualified Occupancy.

For the three month periods ended June 30, 2017 and 2016, Series 18 reflects a net loss from Operating Partnerships of $(109,790) and $(100,883), respectively, which includes depreciation and amortization of $107,002 and $131,833, respectively. This is an interim period estimate; it is not indicative of the final year end results.

 

In December 2016, the operating general partner of Chelsea Square Development Limited Partnership entered into an agreement to sell the property to a non-affiliated entity and the transaction closed on April 6, 2017. The sales price of the property was $1,150,000, which included the outstanding mortgage balance of approximately $301,393 and cash proceeds to the investment partnership of $513,204. Of the total proceeds received by the investment partnership, $4,500 was paid to BCAMLP for expenses related to the sale, which include third party legal costs. The remaining proceeds from the sale of $508,704 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 $508,704 as of June 30, 2017.

The investment general partner will continue to monitor the following Operating Partnerships because of operational or other issues. However, these Operating Partnerships have all exited their LIHTC compliance period and there is therefore no risk to past credit delivery.

 

Marengo Park Apartments, Limited Partnership

Humboldt I, Limited Partnership

Series 19

 

As of June 30, 2017 and 2016 the average Qualified Occupancy for the series was 100%.  The series had a total of 6 properties at June 30, 2017, all of which were at 100% Qualified Occupancy.

For the three month periods ended June 30, 2017 and 2016, Series 19 reflects a net loss from Operating Partnerships of $(34,301) and $(30,326), respectively, which includes depreciation and amortization of $41,488 and $40,809, respectively. This is an interim period estimate; it is not indicative of the final year end results.

The investment general partner will continue to monitor the following Operating Partnerships because of operational or other issues. However, these Operating Partnerships have all exited their LIHTC compliance period and there is therefore no risk to past credit delivery.

 

Munford Village, Ltd.

Sherwood Knoll, Limited Partnership

 

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.

 

 

 

 

 

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

   
 

Not Applicable

 

Item 4.

Controls and Procedures

     
 

(a)

Evaluation of Disclosure Controls and Procedures

   

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

     
 

(b)

Changes in Internal Controls

   

There were no changes in the Fund's internal control over financial reporting that occurred during the quarter ended June 30, 2017 that materially affected, or are reasonably likely to materially affect, the Fund's internal control over financial reporting.

 

 

 

PART II - OTHER INFORMATION

Item 1.

Legal Proceedings

   
 

None

   

Item 1A.

Risk Factors

   
 

There have been no material changes from the risk factors set forth under Part I, Item 1A. "Risk Factors" in our Form 10-K for the fiscal year ended March 31, 2017.

   

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

   
 

None

   

Item 3.

Defaults upon Senior Securities

   
 

None

   

Item 4.

Mine Safety Disclosures

   
 

Not Applicable

   

Item 5.

Other Information

   
 

None

   

Item 6.

Exhibits

   
 

(a)Exhibits

   
   

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

   
   

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

   
   

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

     
   

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

 

101. The following materials from the Boston Capital Tax Credit Fund III, L.P. Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2017 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, filed herein

 

 

SIGNATURES



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

 

Boston Capital Tax Credit Fund III L.P.

 

By:

Boston Capital Associates III L.P.

   

General Partner

 

By:

BCA Associates Limited Partnership,

   

General Partner

 

By:

C&M Management Inc.,

   

General Partner

Date: August 11, 2017

By:

/s/ John P. Manning

     
   

John P. Manning




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

DATE:

SIGNATURE:

TITLE:

     

August 11, 2017

/s/ John P. Manning

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

   
 

John P. Manning

   
   
   
   


DATE:

SIGNATURE:

TITLE:

     

August 11, 2017

/s/ Marc N. Teal

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

Marc N. Teal