Back to GetFilings.com



FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(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, 2003

                                             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        0-17679

BOSTON CAPITAL TAX CREDIT FUND LIMITED PARTNERSHIP.
(Exact name of registrant as specified in its charter)

Delaware

04-3006542

(State or other jurisdiction

(I.R.S. Employer

of incorporation or organization)

Identification No.)

 

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

Registrants telephone number, including area code (617)624-8900

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

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

Yes

X

  

No

_

 

 

BOSTON CAPITAL TAX CREDIT FUND LIMITED PARTNERSHIP

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 2003

TABLE OF CONTENTS
FOR THE QUARTER ENDED June 30, 2003

Balance Sheets *

Balance Sheets Series 1 4

Balance Sheets Series 2 5

Balance Sheets Series 3 6

Balance Sheets Series 4 7

Balance Sheets Series 5 8

Balance Sheets Series 6 9

Statements of Operations 10

Three Months Operations Series 1 *

Three Months Operations Series 2 *

Three Months Operations Series 3 *

Three Months Operations Series 4 14

Three Months Operations Series 5 15

Three Months Operations Series 6 16

STATEMENTS OF CHANGES IN PARTNERS CAPITAL 17

Partners Capital Series 1 18

Partners Capital Series 2 18

Partners Capital Series 3 19

Partners Capital Series 4 19

Partners Capital Series 5 20

Partners Capital Series 6 20

Statements of Cash Flows 21

Cash Flows Series 1 *

Cash Flows Series 2 23

Cash Flows Series 3 24

Cash Flows Series 4 25

Cash Flows Series 5 26

Cash Flows Series 6 27

Notes to Financial Statements *

Note A Organization 28

Note B Accounting *

Note C Related Party Transactions 29

Note D Investments 31

Statement of operation

Combined Statements Series 1 32

Combined Statements_Series 2 33

Combined Statements Series 3 34

Combined Statements Series 4 35

Combined Statements Series 5 36

Combined Statements Series 6 37

Note E Taxable Loss 38

Liquidity 39

Capital Resources 39

Results of Operations 40

Critical_Accounting_Policies 46

Quantitative_and_Qualitative 46

Controls_and_Procedures 46

Part II Other Information 47

Signatures 48

 

 

 

 

Boston Capital Tax Credit Fund Limited Partnership

BALANCE SHEETS

 

 

 

June 30,

2003

(Unaudited)

March 31,

2003

(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)

$  7,593,576

$  7,834,024
     

OTHER ASSETS

    

Cash and cash equivalents

2,238,657

217,560

Other assets

   852,011

   842,013
 

 

  
 

$ 10,684,244

$  8,893,597
     

LIABILITIES

    
     

Accounts payable

$          -

$          -

Accounts payable affiliates (note C)

11,364,240

 11,135,850
     

PARTNERS CAPITAL

    
     

Assignees
  
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $10 stated
value per BAC, 9,800,600 issued and
outstanding







176,715







(1,369,919)

General Partner

  (856,711)

  (872,334)

 

 

(679,996)

(2,242,253)
 

$ 10,684,244

$  8,893,597

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

 

 

Boston Capital Tax Credit Fund Limited Partnership

BALANCE SHEETS

Series 1

 

 

 

June 30,

2003

(Unaudited)

March 31,

2003

(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)

$          -

$          -
     

OTHER ASSETS

    

Cash and cash equivalents

59,189

46,413

Other assets

     29,169

     29,169
     
 

$     88,358

$     75,582
     

LIABILITIES

    
     

Accounts payable

$          -

$          -

Accounts payable affiliates (note C)

  2,304,018

  2,261,455
     

PARTNERS CAPITAL

    
     

Assignees
  
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $10 stated
value per BAC, 1,299,900 issued and
outstanding







(2,080,279)







(2,050,790)

General Partner

  (135,381)

  (135,083)
 

(2,215,660)

(2,185,873)
 

$     88,358

$     75,582

 

 

 

 

 

 




The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund Limited Partnership

BALANCE SHEETS

Series 2

 

 

 

June 30,

2003

(Unaudited)

March 31,

2003

(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)

$    213,817

$    218,512
     

OTHER ASSETS

    

Cash and cash equivalents

4,999

4,541

Other assets

    481,838

    481,838
     
 

$    700,654

$    704,891
     

LIABILITIES

    
     

Accounts payable

$          -

$          -

Accounts payable affiliates (note C)

    814,036

    796,860
     

PARTNERS CAPITAL

    
     

Assignees
  
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $10 stated
value per BAC, 830,300 issued and
outstanding







 (42,906)







(21,707)

General Partner

   (70,476)

   (70,262)
 

  (113,382)

   (91,969)
 

$    700,654

$    704,891

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund Limited Partnership

BALANCE SHEETS

Series 3

 

 

 

June 30,

2003

(Unaudited)

March 31,

2003

(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)

$ -

$     15,301
     

OTHER ASSETS

    

Cash and cash equivalents

2,006,887

 

9,099

Other assets

   49,861

     41,661
     
 

$  2,056,748

$     66,061
     

LIABILITIES

    
     

Accounts payable

$          -

$          -

Accounts payable affiliates (note C)

  3,203,765

  3,138,578
     

PARTNERS CAPITAL

    
     

Assignees
  
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $10 stated
value per BAC, 2,882,200 issued and
outstanding







 (883,633)







 (2,789,878)

General Partner

  (263,384)

  (282,639)
 

(1,147,017)

(3,072,517)
 

$ 2,056,748

$     66,061

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund Limited Partnership

BALANCE SHEETS

Series 4

 

 

 

June 30,

2003

(Unaudited)

March 31,

2003

(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)

$  2,978,453

$  3,271,932
     

OTHER ASSETS

    

Cash and cash equivalents

8,850

14,705

Other assets

    211,694

    209,896
     
 

$  3,198,997

$  3,496,533
     

LIABILITIES

    
     

Accounts payable

$          -

$          -

Accounts payable affiliates (note C)

  2,955,012

  2,897,185
     

PARTNERS CAPITAL

    
     

Assignees
  
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $10 stated
value per BAC, 2,995,300 issued and
outstanding







501,650







 853,459

General Partner

  (257,665)

  (254,111)
 

   243,985

   599,348
 

$  3,198,997

$  3,496,533

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund Limited Partnership

BALANCE SHEETS

Series 5

 

 

 

June 30,

2003

(Unaudited)

March 31,

2003

(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)

$    315,725

$    326,107
     

OTHER ASSETS

    

Cash and cash equivalents

75,722

76,346

Other assets

     79,449

     79,449
     
 

$    470,896

$    481,902
     

LIABILITIES

    
     

Accounts payable

$          -

$          -

Accounts payable affiliates (note C)

    308,771

    299,338
     

PARTNERS CAPITAL

    
     

Assignees
  
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $10 stated
value per BAC, 489,900 issued and
outstanding







 202,254







 222,489

General Partner

   (40,129)

   (39,925)
 

    162,125

    182,564
 

$    470,896

$    481,902

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund Limited Partnership

BALANCE SHEETS

Series 6

 

 

 

June 30,

2003

(Unaudited)

March 31,

2003

(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)

$  4,085,581

$  4,002,172
     

OTHER ASSETS

    

Cash and cash equivalents

83,010

66,456

Other assets

          -

          -
     
 

$  4,168,591

$  4,068,628
     

LIABILITIES

    
     

Accounts payable

$          -

$          -

Accounts payable affiliates (note C)

  1,778,638

  1,742,434
     

PARTNERS CAPITAL

    
     

Assignees
  
Units of beneficial interest of the
limited partnership interest of the
assignor limited partner, $10 stated
value per BAC, 1,303,000 issued and
outstanding







 2,479,629







 2,416,508

General Partner

   (89,676)

   (90,314)
 

  2,389,953

  2,326,194
 

$  4,168,591

$  4,068,628

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF OPERATIONS


Three Months Ended June 30,
(Unaudited)

 


     2003


     2002
     

Income

    

  Interest income

$      2,310

$        490

  Miscellaneous income

19,407

      4,986
 

     21,717

    5,476

Share of income (loss) from Operating
  Partnerships(Note D)

   1,745,781

   (169,087)
     

Expenses

    

  Professional fees

20,130

22,847

  Partnership management fees (Note C)

176,292

216,048

  General and administrative fees

      8,819

     10,696

  

  205,241

   249,591
     

  NET GAIN/(LOSS)

$  1,562,257

$  (413,202)
     

Net income (loss) allocated to assignees

$  1,546,634

$  (409,071)
     

Net income (loss) allocated to general partner

$     15,623

$    (4,131)
     

Net income (loss) per BAC

$        .50

$      (.19)
     


















The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended June 30,

(Unaudited)

Series 1


      2003


       2002
     

Income

    

  Interest income

$        68

$         28

Miscellaneous income

     9,384

      2,468

      9,452

      2,496

Share of income (loss) from Operating
  Partnerships(Note D)

    -

          -
     

Expenses

    

  Professional fees

3,645

4,097

  Partnership management fees (Note C)    

34,028

43,286

  General and administrative fees

      1,566

      1,451

  

     39,239

    48,834
     

  NET LOSS

$   (29,787)

$   (46,338)
     

Net loss allocated to assignees

$   (29,489)

$   (45,875)
     

Net loss allocated to general partner

$      (298)

$      (463)
     

Net loss per BAC

$     (.02)

$      (.03)
     















The accompanying notes are an integral part of this statement

 

 

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)

Series 2


     2003


     2002
     

Income

    

 Interest income

$          8

$         17

 Miscellaneous income

  1,023

      2,198
 

   

     1,031

      2,215

Share of income (loss) from Operating
  Partnerships(Note D)

  (4,695)

   (8,355)
     

Expenses

    

 Professional fees

2,150

2,607

 Partnership management fees  

14,704

13,408

 General and administrative fees

       895

      1,378

 

    17,749

     17,393
     

 NET LOSS

$   (21,413)

$   (23,533)
     

Net loss allocated to assignees

$   (21,199)

$   (23,298)
     

Net loss allocated to general partner

$      (214)

$      (235)
     

Net loss per BAC

$     (.03)

$      (.02)
     


















The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)

Series 3


      2003


       2002
     

Income

    

  Interest income

$      1,980

$         31

  Miscellaneous income

  7,800

      170
 

    9,780

      201

Share of income (loss) from Operating
  Partnerships(Note D)

  1,958,626

   (43,198)
     

Expenses

    

  Professional fees

5,250

5,702

  Partnership management fees (Note C)   

34,659

61,397

  General and administrative expenses

      2,997

      2,911

  

  42,906

     70,010
     

  NET LOSS

$  1,925,500

$  (113,007)
     

Net income (loss) allocated to assignees

$  1,906,245

$  (111,877)
     

Net income (loss) allocated to general partner

$   19,255

$    (1,130)
     

Net income (loss) per BAC

$     .66

$      (.04)
     


















The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)

Series 4


      2003


       2002
     

Income

    

  Interest income

$         19

$         64

  Miscellaneous income

  -

      150
 

     19

      214

Share of income (loss) from Operating
  Partnerships(Note D)

  (293,479)

  (203,125)
     

Expenses

    

  Professional fees

4,260

4,712

  Partnership management fees (Note C)

55,617

62,721

  General and administrative fees

      2,026

      2,726

  

     61,903

     70,159
     

  NET LOSS

$  (355,363)

$  (273,070)
     

Net loss allocated to assignees

$  (351,809)

$  (270,339)
     

Net loss allocated to general partner

$    (3,554)

$    (2,731)
     

Net loss per BAC

$      (.12)

$      (.09)
     


















The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)

Series 5


      2003


       2002
     

Income

    

  Interest income

$        112

$        224

  Miscellaneous income

      1,200

      -
 

      1,312

      224

Share of income (loss) from Operating
  Partnerships(Note D)

   (10,382)

   (13,777)
     

Expenses

    

  Professional fees

1,800

2,252

  Partnership management fees (Note C)

9,043

9,157

  General and administrative fees

     526

       953

  

   11,369

     12,362
     

  NET LOSS

$   (20,439)

$   (25,915)
     

Net loss allocated to assignees

$  (20,235)

$   (25,656)
     

Net loss allocated to general partner

$     (204)

$      (259)

Net loss per BAC

$  (.04)

 $      (.05)
     


















The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)

Series 6


      2003


       2002
     

Income

    

  Interest income

$        123

$        126

  Miscellaneous income

          -

          -
 

        123

        126

Share of income (loss) from Operating
  Partnerships(Note D)

  95,711

    99,368
     

Expenses

    

  Professional fees

3,025

 3,477

  Partnership management fees (Note C)

28,241

26,079

  General and administrative expenses

      809

      1,277

  

    32,075

     30,833
     

  NET INCOME

$  63,759

$     68,661
     

Net income allocated to assignees

$   63,121

$    67,974
     

Net income allocated to general partner

$     638

$       687

Net income per BAC

$     .05

$       .05










 

 

 

 

 

The accompanying notes are an integral part of this statement

 

 

 

 

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Three Months Ended June 30,
(Unaudited)

 





Assignees



General
Partner





Total
       

Partners' capital
(deficit)
  April 1, 2003



$(1,369,919)



$  (872,334)



$(2,242,253)

    

      
       

Net income (loss)

1,546,634

15,623

1,562,257
       

Partners' capital
(deficit),
  June 30, 2003



$   176,715



$  (856,711)



$ (679,996)
       



























The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Three Months Ended June 30,
(Unaudited)

 

Assignees

General
Partner

Total

Series 1

      

Partners' capital 
 (deficit)
  April 1, 2003



$(2,050,790)



$  (135,083)



$(2,185,873)

    

      
       

Net income (loss)

  (29,489)

   (298)

  (29,787)
       

Partners' capital 
 (deficit)
  June 30, 2003    



$(2,080,279)



$  (135,381)



$(2,215,660)
       
       

Series 2

      

Partners' capital 
 (deficit)
  April 1, 2003



$   (21,707)



$   (70,262)



$   (91,969)
       
       

Net income (loss)

   (21,199)

     (214)

   (21,413)
       

Partners' capital 
 (deficit)
  June 30, 2003    



$   (42,906)



$   (70,476)



$  (113,382)
       














The accompanying notes are an integral part of these statements.

 

 

 

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Three Months Ended June 30,
(Unaudited)

 

Assignees

General
Partner

Total

Series 3

      

Partners' capital 
 (deficit)
  April 1, 2003



$(2,789,878)



$  (282,639)



$(3,072,517)

    

      
       

Net income (loss)

  1,906,245

     19,255

 1,925,500

       

Partners' capital 
 (deficit)
  June 30, 2003    



$ (883,633)



$  (263,384)



$(1,147,017)
       
       

Series 4

      

Partners' capital 
 (deficit)
  April 1, 2003



$   853,459



$  (254,111)



$  599,348
       
       

Net income (loss)

  (351,809)

    (3,554)

  (355,363)
       

Partners' capital 
 (deficit),
  June 30, 2003   



$   501,650



$  (257,665)



$    243,985
       













 

The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Three Months Ended June 30,
(Unaudited)

 

Assignees

General
Partner

Total

Series 5

      

Partners' capital
(deficit)
  April 1, 2003



$    222,489



$   (39,925)



$    182,564

    

      
       

Net income (loss)

   (20,235)

      (204)

   (20,439)
       

Partners' capital 
 (deficit),
  June 30, 2003    



  $    202,254



$   (40,129)



$    162,125
       

Series 6

      

Partners' capital 
 (deficit)
  April 1, 2003



$  2,416,508



$   (90,314)



$  2,326,194

    

      
       

Net income (loss)

   63,121

     638

   63,759
       

Partners' capital 
 (deficit),
  June 30, 2003    



$  2,479,629



$   (89,676)



$  2,389,953















The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF CASH FLOWS
Three Months Ended June 30,
(Unaudited)

 

     2003

       2002

Cash flows from operating activities:

    
     

   Net Income (Loss)

$ 1,562,257

$ (413,202)

   Adjustments

    

      Distributions from Operating
        Partnerships


 12,303


3,294

      Amortization

-

-

      Share of (Income) Loss from 

Operating Partnerships


 (1,745,781)


169,087

   Changes in assets and liabilities

    

     Increase (Decrease) in accounts
        payable affiliates


   228,390


256,350

     Decrease (Increase) in other
        assets


   (9,998)


    30,967
     

      Net cash (used in) provided by 
        operating activities


  47,171


     46,496
     

Cash flows from investing activity:

    
     

   Proceeds from sale of operating

Limited partnerships:


  1,973,926


    -

     

      Net cash (used in) provided by
        investing activity


  1,973,926


     -
     
     

   INCREASE (DECREASE) IN CASH AND CASH 
     EQUIVALENTS


2,021,097


46,496
     

   Cash and cash equivalents, beginning

    217,560

    186,922
     

   Cash and cash equivalents, ending


$  2,238,657


$    233,418












The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 1

    2003

       2002

Cash flows from operating activities:

    
     

   Net Income (Loss)

$  (29,787)

$  (46,338)

   Adjustments

    

      Distributions from Operating
        Partnerships


  -


- -

      Amortization

-

-

      Share of (Income) Loss from 

Operating Partnerships


- -


- -

   Changes in assets and liabilities

    

     Increase (Decrease) in accounts
        payable affiliates


      42,563


46,992

     Decrease (Increase) in other
        assets


      -


     38,944
     

      Net cash (used in) provided by 
        operating activities


     12,776


   39,598
     

Cash flows from investing activity:

    
     

   Proceeds from sale of operating

Limited partnerships:


   -


    -

     

      Net cash (used in) provided by
        investing activity


  -


     -
     
     

   INCREASE (DECREASE) IN CASH AND CASH 
     EQUIVALENTS


   12,776


    39,598
     

   Cash and cash equivalents, beginning

     46,413

      7,706
     

   Cash and cash equivalents, ending


$     59,189


$     47,304









 


The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 2

 

     2003

       2002

Cash flows from operating activities:

    
     

   Net Income (Loss)

$   (21,413)

$   (23,533)

   Adjustments

    

      Distributions from Operating
        Partnerships


- -


(2)

      Amortization

-

-

      Share of (Income) Loss from 

Operating Partnerships

4,695


8,355

   Changes in assets and liabilities

    

     Increase (Decrease) in accounts
        payable affiliates


   17,176


18,665

     Decrease (Increase) in other
        assets


            -


          -
     

      Net cash (used in) provided by 
        operating activities


      458


   3,485
     

Cash flows from investing activity:

    
     

   Proceeds from sale of operating

Limited partnerships:


   -


    -

     

      Net cash (used in) provided by
        investing activity


  -


     -
     
     

   INCREASE (DECREASE) IN CASH AND CASH 
     EQUIVALENTS


458

3,485
     

   Cash and cash equivalents, beginning

      4,541

      6,538
     

   Cash and cash equivalents, ending


$      4,999


$     10,023







The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 3

 

     2003

       2002

Cash flows from operating activities:

    
     

   Net Income (Loss)

$ 1,925,500

$  (113,007)

   Adjustments

    

      Distributions from Operating
        Partnerships


  1


(1)

      Amortization

-

-

      Share of (Income) Loss from 

Operating Partnerships


(1,958,626)


43,198

   Changes in assets and liabilities

    

     Increase (Decrease) in accounts
        payable affiliates


65,187


73,901

     Decrease (Increase) in other
        assets


   ( 8,200)


   (3,700)
     

      Net cash (used in) provided by 
        operating activities

23,862


  391
     

Cash flows from investing activity:

    
     

   Proceeds from sale of operating

Limited partnerships:


  1,973,926


    -

     

      Net cash (used in) provided by
        investing activity


  1,973,926


     -
     
     

   INCREASE (DECREASE) IN CASH AND CASH 
     EQUIVALENTS


1,997,788


391
     

   Cash and cash equivalents, beginning

      9,099

     11,378
     

   Cash and cash equivalents, ending


$   2,006,887


    $     11,769










The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 4

 

     2003

       2002

Cash flows from operating activities:

    
     

   Net Income (Loss)

$  (355,363)

$  (273,070)

   Adjustments

    

      Distributions from Operating
        Partnerships


  -

-

      Amortization

-

-

      Share of (Income) Loss from 

Operating Partnerships


293,479


203,125

   Changes in assets and liabilities

    

     Increase (Decrease) in accounts
        payable affiliates


          57,827


69,618

     Decrease (Increase) in other
        assets


    (1,798)


     (4,277)
     

      Net cash (used in) provided by 
        operating activities


    (5,855)


    (4,604)
     

Cash flows from investing activity:

    
     

   Proceeds from sale of operating

Limited partnerships:


   -


    -

     

      Net cash (used in) provided by
        investing activity


  -


     -
     
     

   INCREASE (DECREASE) IN CASH AND CASH 
     EQUIVALENTS


(5,855)


(4,604)
     

   Cash and cash equivalents, beginning

     14,705

     23,212
     

   Cash and cash equivalents, ending


$      8,850


$     18,608








The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 5

 

     2003

       2002

Cash flows from operating activities:

    
     

   Net Income (Loss)

$   (20,439)

$   (25,915)

   Adjustments

    

      Distributions from Operating
        Partnerships


- -


(2)

      Amortization

-

-

      Share of (Income) Loss from 

Operating Partnerships


10,382


13,777

   Changes in assets and liabilities

    

     Increase (Decrease) in accounts
        payable affiliates


9,433


9,432

     Decrease (Increase) in other
        assets


          -


          -
     

      Net cash (used in) provided by 
        operating activities


    (624)


    (2,708)
     

Cash flows from investing activity:

    
     

   Proceeds from sale of operating

Limited partnerships:


   -


    -

     

      Net cash (used in) provided by
        investing activity


  -


     -
     
     

   INCREASE (DECREASE) IN CASH AND CASH 
     EQUIVALENTS


(624)


(2,708)
     

   Cash and cash equivalents, beginning

     76,346

     90,595
     

   Cash and cash equivalents, ending


$     75,722


$     87,887









The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund Limited Partnership

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 6

 

     2003

       2002

Cash flows from operating activities:

    
     

   Net Income (Loss)

$   63,759

$   68,661

   Adjustments

    

      Distributions from Operating
        Partnerships


      12,302


3,299

      Amortization

-

-

      Share of (Income) Loss from 

Operating Partnerships


(95,711)


(99,368)

   Changes in assets and liabilities

    

     Increase (Decrease) in accounts
        payable affiliates


36,204


37,742

     Decrease (Increase) in other
        assets


          -


     -
     

      Net cash (used in) provided by 
        operating activities


     16,554


    10,334
     

Cash flows from investing activity:

    
     

   Proceeds from sale of operating

Limited partnerships:


   -


    -

     

      Net cash (used in) provided by
        investing activity


  -


     -
     
     

   INCREASE (DECREASE) IN CASH AND CASH 
     EQUIVALENTS


16,554


10,334
     

   Cash and cash equivalents, beginning

     66,456

     47,493
     

   Cash and cash equivalents, ending


$     83,010


$     57,827












The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund Limited Partnership

NOTES TO FINANCIAL STATEMENTS
June 30, 2003

(Unaudited)

 

NOTE A - ORGANIZATION

Boston Capital Tax Credit Fund Limited Partnership ("the Partnership") was formed under the laws of the State of Delaware as of September 1, 1988, for the purpose of acquiring, holding, and disposing of limited partnership interests in operating partnerships which have acquired, developed, rehabilitated, operate and own newly constructed, existing or rehabilitated low-income apartment complexes ("Operating Partnerships"). On August 22, 1988, American Affordable Housing VI Limited Partnership changed its name to Boston Capital Tax Credit Fund Limited Partnership. Effective as of September 1, 2001 there was a restructuring, and as a result, the Fund's general partner was reorganized as follows. The General Partner of the Fund continues to be Boston Capital Associates Limited Partnership, a Massachusetts limited partnership. The general partner of the General Partner is BCA Associates Limited Partnership, a Massachusetts limited partnership, whose sole general partner is C&M Management, Inc., a Mass achusetts corporation and whose limited partners are Herbert F. Collins and John P. Manning. Mr. Manning is the principal of Boston Capital Partners, Inc. The limited partner of the General Partner is Capital Investment Holdings, a general partnership whose partners are certain officers and employees of Boston Capital Partners, Inc., and its affiliates. The Assignor Limited Partner is BCTC Assignor Corp., a Delaware corporation which is now wholly-owned by John P. Manning.

Pursuant to the Securities Act of 1933, the Partnership filed a Form S-11 Registration Statement with the Securities and Exchange Commission, effective August 29, 1988, which covered the offering (the "Public Offering") of the Partnership's beneficial assignee certificates ("BACs") representing assignments of units of the beneficial interest of the limited partnership interest of the Assignor Limited Partner. The Partnership registered 10,000,000 BACs at $10 per BAC for sale to the public in six series. Offers and sales of BACs in Series 1 through Series 6 of the Partnership were completed and the last of the BACs in Series 6 were issued by the Partnership on September 29, 1989. The Partnership sold 1,299,900 of Series 1 BACs, 830,300 of Series 2 BACs, 2,882,200 of Series 3 BACs, 2,995,300 of Series 4 BACs, 489,900 of Series 5 BACs and 1,303,000 of Series 6 BACs. The Partnership is no longer offering and does not intend to offer any additional BACs.



 

 

 

 






Boston Capital Tax Credit Fund Limited Partnership

NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2003
(Unaudited)

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of June 30, 2003 and for the three months then ended have been prepared by the Partnership, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. The Partnership accounts for its investments in Operating Partnerships using the equity method, whereby the Partnership adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued. Costs incurred by the Partnership in acquiring the investments in Operating Partnerships are capitalized to the investment account. The Partnership's accounting and financial reporting policies are in conformity with generally accepted accounting principles and include adjustments in interim periods considered necessary for a fair presentation of the results of operations. Such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in 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 the notes thereto included in the Partnership's Annual Report on Form 10-K.

NOTE C - RELATED PARTY TRANSACTIONS

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

Accounts payable - affiliates at June 30, 2003 and 2002 represents accrued general and administrative expenses, accrued partnership management fees, and advances from an affiliate of the general partner, which are payable to Boston Capital Holdings LP, and Boston Capital Asset Management Limited Partnership.

General and administrative expenses incurred by Boston Capital Holdings LP, and Boston Capital Asset Management Limited Partnership were charged to each series' operations for the quarters ended June 30, 2003 and 2002 as follows:

 

        2003

        2002

Series 1

$ 137

$ 1,162

Series 2

338

1,174

Series 3

365

2,266

Series 4

411

2,151

Series 5

77

1,590

Series 6

137

1,034
     
 

$ 1,465

$ 9,377
     

 

 

Boston Capital Tax Credit Fund Limited Partnership

NOTES TO FINANCIAL STATEMENTS - CONTINUED
June 30, 2003
(Unaudited)


NOTE C - RELATED PARTY TRANSACTIONS (continued)

An annual partnership management fee based on .375 percent of the aggregate cost of all apartment complexes owned by the Operating Partnerships has been accrued to Boston Capital Asset Management Limited Partnership. Since reporting fees collected by the series were added to reserves and not paid to Boston Capital Asset Management LP, the amounts accrued are not net of reporting fees received. The partnership management fee accrued for the quarters ended June 30, 2003 and 2002 are as follows:

 

2003

2002

Series 1

$ 42,426

$ 45,216

Series 2

16,836

16,836

Series 3

56,294

67,497

Series 4

55,617

62,721

Series 5

9,429

9,429

Series 6

 36,069

 36,069
     
 

$216,671

$237,768
     

As of June 30, 2003, an affiliate of the general partner advanced a total of $739,568 to the Partnership to pay certain operating expenses of the Partnership, and to make advances and/or loans to Operating Partnerships. These advances are included in Accounts payable-affiliates. A total of $10,000 was advanced during the quarter ended June 30, 2003. Below is a summary, by series, of the total advances made to date.

 

2003

Series 1

$ 90,810

Series 2

70,000

Series 3

226,778

Series 4

351,980
   
 

$739,568

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

 

Boston Capital Tax Credit Fund Limited Partnership

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
June 30, 2003

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At June 30, 2003 and 2002, the Partnership had limited partnership interests in one hundred and one Operating Partnerships which own operating apartment complexes as follows: eighteen in Series 1; eight in Series 2; thirty-one in Series 3; twenty-four in Series 4; five in Series 5; and fifteen in Series 6.

Under the terms of the Partnership's investment in each Operating Partnership, the Partnership was required to make capital contributions to such Operating Partnerships. These contributions were payable in installments over several years upon each Operating Partnership achieving specified levels of construction and/or operations. At June 30, 2003 and 2002, all capital contributions had been paid.

The Partnership's fiscal year ends March 31 of each year, while all the Operating Partnerships' fiscal years are the calendar year. Pursuant to the provisions of each Operating Partnership Agreement, financial results for each of the Operating Partnerships are provided to the Partnership within 45 days after the close of each Operating Partnership's quarterly period. Accordingly, the current financial results available for the Operating Partnerships are for the Three Months ended March 31, 2003.

The combined unaudited summarized statements of operations of the Operating Partnerships for the three months ended March 31, 2003 and 2002 are as follows:






 

Boston Capital Tax Credit Fund Limited Partnership

NOTES TO FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 1

 

           2003

        2002
     

Revenues

    

   Rental

$  1,337,332

$  1,288,422

   Interest and other

    78,162

    63,792
     
 

  1,415,494

  1,352,214
     

Expenses

    

   Interest

  315,031

290,966

   Depreciation and amortization

431,650

  231,239

   Operating expenses

  1,102,157

  1,156,614
 

1,848,838

  1,678,819
     

NET LOSS

$ (433,344)

$ (326,605)
     

Net loss allocated to Boston  
   Capital Tax Credit Fund 
   Limited Partnership



$          -



$          -
     
     

Net loss allocated to other 
   Partners


$   ( 4,333)


$   (3,266)
     

Net loss suspended

$ (429,011)

$ (323,339)

 

 

 

 

 

 

 

The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

 

 

 

Boston Capital Tax Credit Fund Limited Partnership

NOTES TO FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 2

 

          2003

        2002
     

Revenues

    

   Rental

$   477,028

$   394,432

   Interest and other

     19,072

     93,567
     
 

   496,100

  487,999
     

Expenses

    

   Interest

70,224

  116,437

   Depreciation and amortization

98,001

108,788

   Operating expenses

   363,302

    299,810
 

   531,527

   525,035
     

NET LOSS

$   (35,427)

$   (37,036)
     

Net loss allocated to Boston  
   Capital Tax Credit Fund 
   Limited Partnership



$   (4,695)



$    (8,355)
     
     

Net loss allocated to other 
   Partners


$     (354)


$   (370)
     

Net loss suspended

$   (30,378)

$  (28,311)

 

 

 

 

 

 

 

The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

 

 

Boston Capital Tax Credit Fund Limited Partnership

NOTES TO FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months ended March 31,

(Unaudited)

Series 3
 

          2003

        2002
     

Revenues

    

   Rental

$  1,794,576

$  2,139,900

   Interest and other

     52,241

     71,483
     
 

  1,846,817

  2,211,383
     

Expenses

    

   Interest

461,534

  583,265

   Depreciation and amortization

580,262

  609,947

   Operating expenses

  1,317,984

  1,498,565
 

  2,359,780

  2,691,777
     

NET LOSS

$ (512,963)

$ (480,394)
     

Net loss allocated to Boston  
   Capital Tax Credit Fund 
   Limited Partnership



$  (15,300)



$  (43,198)
     

Net loss allocated to other 
   partners

$   (5,130)

$   (4,804)
     

Net loss suspended 


$ (492,533)


$ (432,392)

 

 

 

 

 

 

 

The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

 

Boston Capital Tax Credit Fund Limited Partnership

NOTES TO FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 4

 

            2003

        2002
     

Revenues

    

   Rental

$  1,744,760

$  1,718,201

   Interest and other

    67,683

    76,276
     
 

  1,812,443

  1,794,477
     

Expenses

    

   Interest

   524,796

529,309

   Depreciation and amortization

497,892

  458,960

   Operating expenses

  1,268,192

  1,158,945
 

  2,290,880

  2,147,214
     

NET LOSS

$ (478,437)

$ (352,737)
     

Net loss allocated to Boston  
   Capital Tax Credit Fund 
   Limited Partnership



$  (293,479)



$  (203,125)
     
     

Net loss allocated to other 
   Partners


$    (4,784)


$    (3,527)
     

Net loss suspended

$  (180,174)

$  (146,085)

 

 

 

 

 

 

 

The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

 

 

Boston Capital Tax Credit Fund Limited Partnership

NOTES TO FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 5
 

          2003

        2002
     

Revenues

    

   Rental

$    205,671

$    196,827

   Interest and other

     14,153

     42,458
     
 

    219,824

    239,285
     

Expenses

    

   Interest

29,154

 57,290

   Depreciation and amortization

58,375

58,669

   Operating expenses

    185,831

    151,616
 

   273,360

    267,575
     

NET LOSS

$   (53,536)

$   (28,290)
     

Net loss allocated to Boston  

   Capital Tax Credit Fund 
   Limited Partnership



$   (10,382)



$   (13,777)
     
     

Net loss allocated to other 
   Partners


$      (535)


$     (283)
     

Net loss suspended

$   (42,619)

$   (14,230)

 

 

 

 

 

 

 

The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

 

 

Boston Capital Tax Credit Fund Limited Partnership

NOTES TO FINANCIAL STATEMENTS
June 30, 2003
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 6
 

          2003

        2002
     

Revenues

    

   Rental

$  1,154,315

$  1,149,978

   Interest and other

    43,232

    58,798
     
 

  1,197,547

  1,208,776
     

Expenses

    

   Interest

224,753

  264,799

   Depreciation and amortization

304,610

291,908

   Operating expenses

   703,569

  640,515
 

  1,232,932

  1,197,222
     

NET INCOME (LOSS)

$  (35,385)

$   11,554
     

Net income (loss)    allocated to Boston
   Capital Tax Credit Fund 
   Limited Partnership




$     95,711




$    99,368
     
     

Net income (loss)    allocated to other 
   Partners



$     (354)



$     116
     

Net loss suspended

$  (130,742)

$  (87,930)

 

 

 

 

 

 

 

The Partnership accounts for its investments using the equity method of accounting. Under the equity method of accounting, the Partnership adjusts its investment cost for its share of each Operating Partnerships results of operations and for any distributions received or accrued. However, the Partnership recognizes individual operating losses only to the extent of capital contributions. Excess losses are suspended for use in future years to offset excess income.

 

Boston Capital Tax Credit Fund Limited Partnership

NOTES TO FINANCIAL STATEMENTS - CONTINUED

June 30, 2003
(Unaudited)

NOTE E - TAXABLE LOSS

The Partnership's taxable loss for the year ended December 31, 2003 is expected to differ from its loss for financial reporting purposes for the year ended March 31, 2004. This is primarily due to accounting differences in depreciation incurred by the Operating Partnerships and also differences between the equity method of accounting and the IRS accounting methods. No provision or benefit for income taxes has been included in these financial statements since taxable income or loss passes through to, and is reportable by, the partners and assignees individually.

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

Liquidity

The Partnership's primary source of funds was the proceeds of its Public Offering. Other sources of liquidity include (i) interest earned on working capital reserves, and (ii) cash distributions from the Operating Partnerships in which the Partnership has invested. These sources of liquidity are available to meet the obligations of the Partnership.

The Partnership is currently accruing the annual partnership management fee. Partnership management fees accrued during the quarter ended June 30, 2003 were $216,671 and total partnership management fees accrued as of June 30, 2003 were $10,430,493. Pursuant to the Partnership Agreement, such liabilities will be deferred until the Partnership receives sales or refinancing proceeds from Operating Partnerships, which will be used to satisfy such liabilities.

The Partnership has also recorded other payables to affiliates of $933,415. The amount consists of advances to pay certain third party operating expenses of the Partnership, advances and/or loans to Operating Partnerships, and accrued overhead allocations. The breakout between series are: $117,488 in series 1, $104,717 in series 2, $289,864 in series 3, $398,066 in series 4, none in series 5, and $23,280 in series 6. These and any future advances or accruals will be paid, without interest, from available cash flow, reporting fees, or proceeds of sales or refinancing of the Partnership's interest in Operating Partnerships.

Capital Resources

The Partnership offered BACs in a Public Offering declared effective by the Securities and Exchange Commission on August 29, 1988. The Partnership received and accepted subscriptions for $97,746,940 representing 9,800,600 BACs from investors admitted as BAC Holders in Series 1 through Series 6 of the Partnership. Offers and sales of BACs in Series 1 through Series 6 of the Partnership were completed and the last of the BACs in Series 6 were issued by the Partnership on September 29, 1989. At June 30, 2003 and 2002 the Partnership had limited partnership equity interests in 101 and 103 Operating Partnerships, respectively.

As of June 30, 2003 the Partnership had $2,238,657 remaining in cash and cash equivalents. Below is a table, which provides, by series, the equity raised, number of BACs sold, final date BACs were offered, number of properties acquired, and cash and cash equivalents. $1,973,926 of Series 3 cash and cash equivalents represent proceeds from the sale of two Operating Partnerships during the quarter ended June 30, 2003.

 

Series

Equity

BACs

Final Close Date

Number of 

Properties

Proceeds 

Remaining

1

$12,999,000

1,299,900

12/18/88

18

$  59,189

2

8,303,000

830,300

03/30/89

8

4,999

3

28,822,000

2,882,200

03/14/89

31

2,006,887

4

29,788,160

2,995,300

07/07/89

24

8,850

5

4,899,000

489,900

08/22/89

5

75,722

6

12,935,780

1,303,000

09/29/89

 15

  83,010
           
 

$97,746,940

9,800,600

  

101

$2,238,657

 

 

Results of Operations

At June 30, 2003 and 2002 the Partnership held limited partnership interests in 101 and 103 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 initially complied with the Minimum Set-Aside Test (i.e., initial occupancy by tenants with incomes equal to no more than a certain percentage of area median income) and the Rent Restriction Test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to hereinafter as "Qualified Occupancy." Each of the Operating Partnerships and each of the respective Apartment Complexes are described more fully in the Prospectus or applicable report on Form 8-K. The General Partner believes that there is adequate casualty insurance on the properties.

The Partnership incurs an annual partnership management fee to the General Partner and/or its affiliates in an amount equal to 0.375% of the aggregate cost of the Apartment Complexes owned by the Operating Partnerships, less the amount of certain partnership management and reporting fees paid by the Operating Partnerships. The annual partnership management fee is currently being accrued. It is anticipated that outstanding fees will be repaid from sale or refinancing proceeds. The annual partnership management fee charged to operations for the quarters ended June 30, 2003 and 2002, net of reporting fees received were $176,292 and $216,048, respectively.

The Partnership's investment objectives do not include receipt of significant cash distributions from the Operating Partnerships in which it has invested. The Partnership's investments in Operating Partnerships have been made principally with a view towards realization of Federal Housing Tax Credits for allocation to its partners and BAC holders. The Results of Operations reported herein are interim period estimates that may not necessarily be indicative of final year end results.

Series 1

As of June 30, 2003 and 2002, the average Qualified Occupancy for the series was 100%. The series had a total of 18 properties at June 30, 2003, all of which were at 100% Qualified Occupancy.

For the three months being reported, the series reflects a net loss from Operating Partnerships of $433,344. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect negative operations of $1,694.

Genesee Commons Associates (River Park Commons) and Kingston Property Associates (Broadway East Townhouses) have incurred operating deficits as a result of weak occupancy. Both Operating Partnerships have verbal forbearance agreement in place allowing the properties to pay minimal mortgage payments while continuing to accrue all interest payments due. Both properties also received loans from the state housing agency, which were used to complete rehabilitation work. Historically Kingston Property Associates has operated with an occupancy level below 80%. However, operations at this property have improved with a 2002 average 12 month occupancy level of 91%, and the first and second quarter 2003 average occupancy levels of 93.44% and 91% respectively. The operations at Genesee Commons Associates remain weak with an occupancy level consistent with prior years. The first and second quarter 2003 average occupancy levels were 78% and 74% respectively. Both properties continue to work with local and state age ncies to locate qualified residents. Also, the properties have developed a referral system with local non-profit agencies and churches. The properties have not made the minimum debt service payments as outlined in the forbearance agreements since 1997. At this time the mortgage holders for each of these two properties have not taken any adverse action. The Operating General Partner met with the lenders for both properties, and reports that the meeting was successful, receiving verbal assurances that the mortgage holders would not foreclose on the properties prior to the end of the compliance period. The 15 year compliance period for Kingston Property Associates ended December 31, 2002. The compliance period for Genesee Commons ends on December 31, 2003. This being the case, The Investment General Partner has commenced discussions with the Operating General Partner and the mortgage lenders to determine the options available to the Partnerships. The Investment General Partner will continue to monitor the situation closely.

Series 2

As of June 30, 2003 and 2002, the average Qualified Occupancy for the series was 100%. The series had a total of eight properties at June 30, 2003, all of which were at 100% Qualified Occupancy.

For the three months being reported the series reflects a net loss from the Operating Partnerships of $35,427. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $62,574.

Annadale Housing Partners (Annadale Apartments) has historically reported net losses due to operational issues associated with the property.  As a result of efforts by the management company operations have improved significantly. Rental increases combined with improved collections, increased rental revenues by $96,611 (9.8%) in 2002. Expenses (specifically maintenance) saw increases in 2002. This is in part due to required repairs mandated by the Housing Agency as a result of a site inspection done at the site in 2002. Another factor affecting maintenance costs are the provisions of the loan agreements, which stipulate that the Partnership must spend a minimum of $55,000 per year on capital improvements, with the funding coming from operations. As a result of the increased rental revenues, the property operated at breakeven despite the increased expenses. A welfare tax exemption was approved in 2001, and the Partnership received a refund of $29,982 in January 2002. Occupancy averaged 88. 29% in 2002, however, occupancy dropped to 86% in December, and has averaged only 82.21% through the second quarter of 2003. The majority of the vacancies are in the elderly designated units. Management is trying to broaden the scope of advertising to attract more potential residents to the site. Although operations have demonstrated significant improvements, we will continue to monitor this Partnership until occupancy increases and stabilizes.

Series 3.

As of June 30, 2003 and 2002, the average Qualified Occupancy for the series was 100% and 99.9%, respectively. The series had a total of 31 properties at June 30, 2003, all of which were at 100% Qualified Occupancy.

For the three months being reported series reflects a net loss from the Operating Partnerships of $512,963. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $67,299. The increase in net income per BAC reported in the current year is primarily the result of income reported from the sale of two Operating Partnerships in the current quarter. Additional information on the sale of the partnerships are provided below.

The Investment General Partner continues to monitor the operations of Lincoln Hotel Associates (Lincoln Apartments) in an effort to improve the overall operations of the Partnership. Physical occupancy through the second quarter of 2003 averaged 100%. The stable occupancy, along with expense reductions, has resulted in improved operations. The mortgage is current under the terms of a forbearance agreement. The taxes, insurance and payables are current. The Operating General Partner recently completed negotiations to replace management with a not-for-profit entity who is interested in assuming the ownership of the Partnership once the tax credit compliance period has expired. A purchase option has been executed and recorded. Additionally, negotiations with the lender to restructure the debt continue and are expected to be completed during the third quarter of 2003.

In an attempt to capitalize on the strong California real estate market the Operating General Partner of California Investors VI (Orchard Park) entered into an agreement to sell the property and the transaction closed in June 2003. As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period and also to provide a recapture bond to avoid the recapture of the tax credits that have been taken. Sale proceeds due to Boston Capital Tax Credit Fund I-Series 3 (BCTC I) and Boston Capital Tax Credit Fund III-Series 17 (BCTC III) after repayment of advances made to the Operating Partnership are $408,835 and $28,682, respectively. Of the proceeds received it is estimated that approximately $352,768 and $24,749, provided that these are the actual amounts to be distributed, the per BAC distribution will be .122 and .005 for Series 3 and 17, respectively, will be returned to the investors. The amounts for each series, whi le different in actual dollars, represent the same percentage of return to each Investment Partnership. The remaining total of $60,000 is anticipated to be paid to Boston Capital Asset Management Limited Partnership (BCAMLP) for fees and expenses related to the sale. The total returned to the investors will be distributed based on the number of BACs held by each investor at the time of the sale. The breakdown of the amount to be paid to BCAMLP is as follows: $10,000 represents reimbursement of expenses incurred related to sale, which includes but is not limited to due diligence, legal and mailing costs; $50,000 represents a fee for overseeing and managing the disposition of the property. Since the Investment in Operating Partnership balance of California Investors VI for Series 3 was not equal to the sale proceeds received by the series, Series 3 recorded a gain on the sale of the Operating Partnership of $408,835.

In an attempt to capitalize on the strong California real estate market the Operating General Partner of Hidden Cove Apartments (Hidden Cove) entered into an agreement to sell the property and the transaction closed in May 2003. As part of the purchase agreement, the buyer is required to maintain the property as affordable housing through the end of the tax credit compliance period and also to provide a recapture bond to avoid the recapture of the tax credits that have been taken. Sale proceeds due to Boston Capital Tax Credit Fund I-Series 3 (BCTC I) and Boston Capital Tax Credit Fund III-Series 15 (BCTC III) are $1,710,981 and $148,373, respectively. The majority of the sale proceeds were received by the Investment Partnerships in May 2003, however the Operating General Partner is currently holding $158,542 of the total sale proceeds until the Operating Partnership entity has been dissolved. Of the proceeds received and to be received, it is estimated that approximately $1,379,018 and $119,586, provi ded that these are the actual amounts to be distributed, the per BAC distribution will be .478 and .031 for Series 3 and 15, respectively, will be returned to the investors. The amounts for each series, while different in actual dollars, represent the same percentage of return to each Investment Partnership. The remaining total of $360,750 is anticipated to be paid to Boston Capital Asset Management Limited Partnership (BCAMLP) for fees and expenses related to the sale and partial reimbursement of amounts payable to affiliates. The total returned to the investors will be distributed based on the number of BACs held by each investor at the time of the sale. The breakdown of the amount to be paid to BCAMLP is as follows: $10,000 represents reimbursement of expenses incurred related to sale, which includes but is not limited to due diligence, legal and mailing costs; $50,000 represents a fee for overseeing and managing the disposition of the property; and $300,750 represents a partial payment of outstanding Asset Management Fees due to BCAMLP. Since the Investment in Operating Partnerships balances of Hidden Cove for Series 3 and Series 15 were not equal to the sale proceeds received by each series, Series 3 and Series 15 recorded gains on the sale of the Operating Partnership of $1,710,981 and $82,207, respectively.

Central Parkway Towers (Central Parkway Towers) average occupancy decreased to 64% through June 2003 as compared to 2002's average occupancy of 75%. The Management Company continues to work with the City of Cincinnati, the State of Ohio as well as local non-profit agencies to expand tenant referrals and housing contracts. However, the City of Cincinnati has canceled support programs previously utilized by the property and the overall financial position has deteriorated as a result of the decrease in occupancy. The Operating General Partner has formally requested a release from his obligations as the General Partner and property manager. Several alternative management companies are being interviewed and one is expected to be selected in the third quarter. In the meantime, the Operating General Partner continues to pursue public and private support and involvement in the property.

Series 4

As of June 30, 2003 and 2002, the average Qualified Occupancy for the series was 100%. The series had a total of 24 properties at June 30, 2003, all of which were at 100% Qualified Occupancy.

For the three months being reported the series reflects a net loss from the Operating Partnerships of $478,437. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $19,455.

Central Parkway Towers (Central Parkway Towers) average occupancy decreased to 64% through June 2003 as compared to 2002's average occupancy of 75%. The Management Company continues to work with the City of Cincinnati, the State of Ohio as well as local non-profit agencies to expand tenant referrals and housing contracts. However, the City of Cincinnati has canceled support programs previously utilized by the property and the overall financial position has deteriorated as a result of the decrease in occupancy. The Operating General Partner has formally requested a release from his obligations as the General Partner and property manager. Several alternative management companies are being interviewed and one is expected to be selected in the third quarter. In the meantime, the Operating General Partner continues to pursue public and private support and involvement in the property.

Operations at Van Dyck Estates XVI-A, A California L.P. (Van Dyck Estates XVI-A) have improved while maintaining high occupancy. Occupancy averaged 97% in 2002, and has increased to 100% through the second quarter of 2003. Rent increases implemented in January 2002 benefited operations, as rental revenues increased by $12,279 (11%) in 2002. Operating expenses, particularly maintenance costs increased in 2002 and as a result the property is operating below breakeven. The Partnership filed for a welfare tax exemption. The Operating General Partner is waiting to hear from the state. Due to the improvement in operations demonstrated in years 2000 and 2001, plus the commitment from the new Operating General Partner, a previous Going Concern opinion was removed in 2001. This Partnership will continue to be monitored until expenses have stabilized, and the welfare tax exemption is in place.

Pedcor Investments 1988-VI, Limited Partnership, located in Indianapolis, Indiana, operated at a cash flow deficit in 2002, but operated above breakeven during the first and second quarters of 2003. The main reason for the cash expenditure in 2002 was its low occupancy, which averaged 91% but fell below 90% for 4 months during the year. Occupancy averaged 95% for the first quarter of 2003 and 90% for the second quarter. During the first and second quarters of 2003, the property generated cash. Also, the property's expenses, though in line with state averages, were much higher than were originally underwritten; rent levels were also underwritten at a higher level than they were in 2002. Consequently, the property needs to maintain high occupancy in order to cash flow at the present expense levels. The management company believes the property will continue to stay highly occupied and generate cash during the entire year of 2003. Last, the property's mortgage, taxes and insurance were all current as of J uly 30, 2003

Auburn Trace Limited (Auburn Trace) is a 256 unit property located in Delray Beach, Florida, that operated below breakeven in 2002. The primary cause of the negative cash flow was due to high operating expenses. At the end of the second quarter 2003, the property is still experiencing negative cash flow. As a result of the negative cash flow, working capital is insufficient to cover trade accounts payable, which are now delinquent and the replacement reserve is under funded. Physical occupancy has been consistently strong at the property since inception, and is currently at 98% as of June 30, 2003. The General Partner is attempting to reduce operating expenses primarily in the areas of administration and maintenance. The Investment Limited Partner will work with the Operating General Partner to develop a plan to reduce operating expenses and stabilizes the property. The mortgage and property taxes, property insurance are current. The Operating General Partner continues to fund operating deficits.

Series 5

As of June 30, 2003 and 2002, the average Qualified Occupancy for the series was 100%. The series had a total of five properties at June 30, 2003, all of which were at 100% Qualified Occupancy.

For the three months being reported the series reflects a net loss from the Operating Partnerships of $53,536. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $4,839.

Annadale Housing Partners (Annadale Apartments) has historically reported net losses due to operational issues associated with the property.  As a result of efforts by the management company operations have improved significantly. Rental increases combined with better rent collections, increased rental revenues by $96,611 in 2002. Expenses (particularly maintenance) increased in 2002. This is in part due to required repairs mandated by the Housing Agency as a result of a site inspection done during 2002. Another factor affecting maintenance costs are the provisions of the loan agreements, which stipulate that the Partnership must spend a minimum of $55,000 per year on capital improvements, with the funding coming from operations. As a result of the increased rental revenues, the property operated at breakeven despite the increased expenses. A welfare tax exemption was approved in 2001, and the Partnership received a refund of $29,982 in January 2002. Occupancy averaged 88.29% in 2002, how ever occupancy dropped to 86% in December, and has averaged only 82.21% through the second quarter of 2003. The majority of the vacancies are in the elderly designated units. Management is trying to broaden the scope of advertising to attract more potential residents to the site. Although operations have demonstrated significant improvements, the Investment Partnership will continue to monitor this Partnership until occupancy increases and stabilizes.

TKO Investment Properties V (Heather Ridge Apartments) is a 56-unit family property located in Redding, CA. Occupancy averaged 99.70% in 2002 and 100% for the first half of 2003, however low rental rates are causing the property to operate below breakeven. The property was originally rehabilitated in 1988. To remain competitive with the newer apartment communities in the area, rents are well below the allowable tax credit rents. Payables increased due to the lack of available cash. The Investment General partner will closely monitor this property until it generates cash flow.


Series 6

As of June 30, 2003 and 2002, the average Qualified Occupancy for the series was 100%. The series had a total of 15 properties at June 30, 2003, all of which were at 100% Qualified Occupancy.

For the three months being reported the series reflects a net loss from the Operating Partnerships of $35,385. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of 269,225.

Socorro Properties, Limited Partnership, located in Socorro, New Mexico, operated below breakeven during the second quarter of 2003. The primary reason for its negative cash flow is low occupancy, which averaged 74% for the quarter. Turnover has been a problem at the property. As of late July, the property has six approved move-ins. The property is allocating additional resources to get units ready and back on-line as quickly as possible. They are expecting to fill six of the nine vacant units by August 31, 2003. This will bring the occupancy up to 90%.

The Operating General Partner of the Partnership Sherburne Housing Redevelopment Company has negotiated a sale of its General Partner interest. In addition to the transfer of Operating General Partner interest, an exit strategy has been put in place that will allow for the sale of the Investment Limited Partner interest to the new Operating General Partner at the end of the 15-year tax credit compliance period. It is anticipated that this transaction will be finalized within the third quarter of 2003 pending receipt of all required agency approvals.

Auburn Trace Limited is a 256 unit property located in Delray Beach, Florida, that operated below breakeven in 2002. The primary cause of the negative cash flow was high operating expenses. As a result of the negative cash flow, working capital is insufficient to cover trade accounts payable, which are now delinquent additionally the replacement reserve is under funded. The Operating General Partner is attempting to reduce operating expenses, primarily in the areas of administration and maintenance. Physical occupancy has been consistently strong at the property since inception, and is currently at 97% as of April 30, 2003. The Investment General Partner will work with the Operating General Partner to develop a plan to reduce operating expenses and stabilize the property. The mortgage and property taxes, property insurance are current. The Operating General Partner continues to fund operating deficits.

Critical Accounting Policies and Estimates

The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America, which requires the Partnership to make certain estimates and assumptions. A summary of significant accounting policies is provided in Note A to the financial statements. The following section is a summary of certain aspects of those accounting policies that may require subjective or complex judgments and are most important to the portrayal of Partnership's financial condition and results of operations. The Partnership 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 Partnership accounts for its investment in local partnerships in accordance with the equity method of accounting since the Partnership does not control the operations of an Operating Partnership.

If the book value of Partnership's investment in an Operating Partnership exceeds the estimated value derived by management, the Partnership reduces its investment in any such Operating Partnership and includes such reduction in equity in loss of investment in operating partnerships.

 

Item 3

Quantitative and Qualitative Disclosure About Market Risk

 
 

Not Applicable

 

 

Item 4

Controls & Procedures
     
 

(a)

Evaluation of Disclosure Controls and Procedures
   

Within the 90 days prior to the date of this report, the Partnership's Chief Executive Officer and Chief Financial Officer carried out an evaluation of the effectiveness of the Partnership's "disclosure controls and procedures" as defined in the Securities Exchange Act of 1934 Rules 13a-14(c) and 15(d)-14(c). Based on that evaluation, the Partnership's Chief Executive Officer and Principal Financial Officer have concluded that as of the date of the evaluation, the Partnership's disclosure controls and procedures were adequate and effective in timely alerting them to material information relating to the Partnership required to be included in the Partnership's periodic SEC filings.
     
 

(b)

Changes in Internal Controls
   

There were no significant changes in the Partnership's internal controls or in other factors that could significantly affect the Partnership's internal controls subsequent to the date of that evaluation.

 

 

 

 

 

 

 

 

 

 

 

PART II - OTHER INFORMATION

 

Item 1.

Legal Proceedings
   
 

None
   

Item 2.

Changes in Securities
   
 

None
   

Item 3.

Defaults upon Senior Securities
   
 

None
   

Item 4.

Submission of Matters to a Vote of Security 
Holders
   
 

None
   

Item 5.

Other Information
   
 

None
   

Item 6.

Exhibits and Reports on Form 8-K
   
 

(a)Exhibits
   
   

99 (a) Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2003, filed herein
     
   

99 (b) Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2003, filed herein
   
 

(b)Reports on Form 8-K
   
   

None

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SIGNATURES

Pursuant to the requirements of Section 13 of the Securities

Exchange Act of 1934, the Partnership has duly caused this Report to be

signed on its behalf by the undersigned, thereunto duly authorized.
     
 

Boston Capital Tax Credit Fund Limited Partnership
     
     
 

By:

Boston Capital Associates Limited

Partnership, General Partner
 
     
 

By:

BCA Associates Limited Partnership,

General Partner
 
     
 

By:

C&M Management, Inc.,

General Partner
 

Date:

    
     

August 20, 2003

By:/s/ John P. Manning
 

John P. Manning
     
     
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

I, John P. Manning, certify that:

  1. I have reviewed this quarterly report on Form 10-Q of Boston Capital Tax Credit Fund Limited Partnership (the "Partnership");

  2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

  3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this quarterly report;

  4. The Partnership's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the Company and we have:

  1. designed such disclosure controls and procedures to ensure that material information relating to the Partnership, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

  2. evaluated the effectiveness of the Partnership's disclosure controls and procedures as of a date (the "Evaluation Date") within 45 days prior to the filing date of this quarterly report; and

  3. presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

  1. The Partnership's other certifying officer and I have disclosed, based on our most recent evaluation, to the Partnership's auditors and the audit committee of the Partnership's board of directors (or persons performing the equivalent function):

  1. all significant deficiencies in the design or operation of internal controls which could adversely affect the Partnership's ability to record, process, summarize and report financial data and have identified for the Partnership's auditors any material weaknesses in internal controls; and

  2. any fraud, whether or not material, that involves management or other employees who have a significant role in the Partnership's internal controls; and

  1. The Partnership's other certifying officer and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the Evaluation Date, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date: August 20, 2003

/s/ John P. Manning
 

John P. Manning
 

Director, President
 

(Principal Executive
 

Officer), C&M

 

Management Inc.;

 

I, Marc Teal, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Boston Capital Tax Credit Fund Limited Partnership (the "Partnership");

  1. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

  2. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this quarterly report;

  3. The Partnership's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-14 and 15d-14) for the Company and we have:

  1. designed such disclosure controls and procedures to ensure that material information relating to the Partnership, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

  2. evaluated the effectiveness of the Partnership's disclosure controls and procedures as of a date (the "Evaluation Date") within 45 days prior to the filing date of this quarterly report; and

  3. presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;

  1. The Partnership's other certifying officer and I have disclosed, based on our most recent evaluation, to the Partnership's auditors and the audit committee of the Partnership's board of directors (or persons performing the equivalent function):

  1. all significant deficiencies in the design or operation of internal controls which could adversely affect the Partnership's ability to record, process, summarize and report financial data and have identified for the Partnership's auditors any material weaknesses in internal controls; and

  2. any fraud, whether or not material, that involves management or other employees who have a significant role in the Partnership's internal controls; and

  1. The Partnership's other certifying officer and I have indicated in this quarterly report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the Evaluation Date, including any corrective actions with regard to significant deficiencies and material weaknesses.

Date: August 20, 2003

/s/ Marc N. Teal
 

Marc N. Teal, Chief

Financial Officer