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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ----- EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2002
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ----- EXCHANGE ACT OF 1934
Commission File Number 0-18491
CAPITAL MORTGAGE PLUS L.P.
(Exact name of registrant as specified in its charter)
Delaware 13-3502020
- --------------------------- -----------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
625 Madison Avenue, New York, New York 10022
- -------------------------------------- --------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 421-5333
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 X No
--- ---
Item 1. Financial Statements
CAPITAL MORTGAGE PLUS L.P.
(a limited partnership)
STATEMENTS OF FINANCIAL CONDITION
============ ============
September 30, December 31,
2002 2001
------------ ------------
(Unaudited)
ASSETS
Investments in mortgage loans
(Note 2) $20,725,263 $21,002,372
Cash and cash equivalents 1,168,455 1,110,785
Accrued interest receivable
(net of allowance of $1,296,376
and $1,164,683) 262,377 408,618
Loan origination costs
(net of accumulated
amortization of $210,808
and $196,624) 623,141 637,325
----------- -----------
Total assets $22,779,236 $23,159,100
=========== ===========
LIABILITIES AND PARTNERS' CAPITAL (DEFICIT)
Liabilities:
Accounts payable and other
liabilities $ 741 $ 25,000
Due to general partner and
affiliates (Note 3) 54,634 73,080
----------- -----------
Total liabilities 55,375 98,080
----------- -----------
Partners' capital (deficit):
Limited Partners (1,836,660 BACs
issued and outstanding) 22,892,527 23,222,943
General Partner (168,666) (161,923)
----------- -----------
Total partners' capital (deficit) 22,723,861 23,061,020
----------- -----------
Total liabilities and partners' capital
(deficit) $22,779,236 $23,159,100
=========== ===========
See Accompanying Notes to Financial Statements.
2
CAPITAL MORTGAGE PLUS L.P.
(a limited partnership)
STATEMENTS OF INCOME
(Unaudited)
======================= =======================
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2002 2001 2002 2001
----------------------- -----------------------
Revenues
Interest income:
Mortgage loans (Note 2) $ 465,333 $ 481,036 $1,397,702 $1,463,734
Temporary investments 2,751 8,792 10,306 31,098
Other income 963 713 2,639 2,439
---------- ---------- ---------- ----------
Total revenues 469,047 490,541 1,410,647 1,497,271
---------- ---------- ---------- ----------
Expenses
General and administrative 15,742 18,099 47,586 37,828
General and administrative-
related parties (Note 3) 68,889 52,743 174,204 138,318
Provision for bad debts 44,451 31,616 131,693 255,422
Amortization 54,760 54,760 164,281 164,281
---------- ---------- ---------- ----------
Total expenses 183,842 157,218 517,764 595,849
---------- ---------- ---------- ----------
Net income $289,205 $ 333,323 $ 892,883 $ 901,422
========== ========== ========== ==========
Allocation of Net income:
Limited Partners $ 279,501 $ 326,657 $ 875,025 $ 883,394
========== ========== ========== ==========
General Partner $ 5,704 $ 6,666 $ 17,858 $ 18,028
========== ========== ========== ==========
Net income per BAC $ 0.16 $ 0.18 $ 0.48 $ 0.48
========== ========== ========== ==========
See Accompanying Notes to Financial Statements.
3
CAPITAL MORTGAGE PLUS L.P.
(a limited partnership)
STATEMENT OF CHANGES IN
PARTNERS' CAPITAL (DEFICIT)
(Unaudited)
=========== =========== ============
Limited General
Total Partners Partner
----------- ----------- ------------
Partners' capital
(deficit) -
January 1, 2002 $23,061,020 $23,222,943 $ (161,923)
Net income 892,883 875,025 17,858
Distributions (1,230,042) (1,205,441) (24,601)
----------- ----------- ------------
Partners' capital
(deficit) -
September 30, 2002 $22,723,861 $22,892,527 $ (168,666)
=========== =========== ============
See Accompanying Notes to Financial Statements.
4
CAPITAL MORTGAGE PLUS L.P.
(a limited partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
==========================
Nine Months Ended
September 30,
2002 2001
--------------------------
Cash flows from operating activities:
Net income $ 892,883 $ 901,422
Adjustments to reconcile net income
to net cash provided
by operating activities:
Provision for bad debts 131,693 255,422
Amortization expense 164,281 164,281
Amortization of interest rate buydown (1,089) (1,089)
Decrease (increase) in accrued interest
receivable 14,548 (25,986)
Decrease in accounts payable
and other liabilities (24,259) (24,148)
Decrease in due to general partner
and affiliates (18,446) (26,299)
----------- -----------
Net cash provided by operating
activities 1,159,611 1,243,603
----------- -----------
Cash flows from investing activities:
Receipt of principal on mortgage
loans 128,101 116,156
----------- -----------
Cash flows from financing activities:
Distributions to partners (1,230,042) (1,228,907)
----------- -----------
5
CAPITAL MORTGAGE PLUS L.P.
(a limited partnership)
STATEMENTS OF CASH FLOWS
(Unaudited)
(continued)
==========================
Nine Months Ended
September 30,
2002 2001
--------------------------
Net increase in cash and cash
equivalents 57,670 130,852
Cash and cash equivalents at
beginning of period 1,110,785 919,391
----------- -----------
Cash and cash equivalents at
end of period $ 1,168,455 $ 1,050,243
=========== ===========
See Accompanying Notes to Financial Statements.
6
CAPITAL MORTGAGE PLUS L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002
(Unaudited)
Note 1 - General
The unaudited financial statements have been prepared on the same basis as the
audited financial statements included in the Partnership's Annual Report on Form
10-K for the year ended December 31, 2001. In the opinion of the General
Partner, the accompanying unaudited financial statements contain all adjustments
(consisting only of normal recurring adjustments) necessary to present fairly
the financial position of the Partnership as of September 30, 2002, the results
of operations for the three and nine months ended September 30, 2002 and 2001
and its cash flows for the nine months ended September 30, 2002 and 2001.
However, the operating results for the nine months ended September 30, 2002 may
not be indicative of the results for the year.
Certain information and note disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted. It is suggested that these financial statements be read in
conjunction with the financial statements and notes thereto included in the
Partnership's Annual Report on Form 10-K for the year ended December 31, 2001.
7
CAPITAL MORTGAGE PLUS L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002
(Unaudited)
Note 2 - Investments in Loans
Information relating to investments in the Mortgages and equity loans as of
September 30, 2002 is as follows:
Amounts Advanced
-----------------------------------------------------------------
No. of
Apart- of Final Total Investments Investments
Property ment Invest- Maturity Mortagage Equity Amounts in Loans at in Loans at
Location Units Ment Date Loans Loans Advanced 9/30/2002(E) 12/31/2001(E)
- -------- ------- ------ -------- ----------- ---------- ----------- ------------ ------------
Mortenson 104 8/90 8/30 $ 4,974,090 $ 577,885 $ 5,551,975 $ 4,559,557 $ 4,635,159
Manor
Apts./
Ames, IA
Windemere 204 9/90 3/31 8,110,300 736,550 8,846,850 7,681,734 7,773,702
Apts./
Wichita, KS
Fieldcrest III 112 8/91 8/31 3,343,700 383,300 3,727,000 3,227,832 3,268,113
Apts./
Dothan, AL
Holly Ridge 144 3/93 3/33 5,310,100 684,400 5,994,500 5,256,140 5,325,398
II Apts./
Gresham, OR
---------------------------------------------------------------------------------
Total $21,738,190 $2,382,135 $24,120,325 $20,725,263 $21,002,372
=================================================================================
Interest earned by the Partnership during 2002
--------------------------------------------------------------------
Non-contingent Contingent
----------------------- --------------------------------------
Cash
Flow
Base Default Annual Partici-
Interest Interest Yield pation Total
Property Amount/ Amount/ Amount/ Amount/ Interest
Location Rate (A) Rate (B) Rate (C) Rate (D) Earned
- -------- ---------- -------- -------- -------- ----------
Mortenson $ 218,144 $ 68,545 $ 0 $ 0 $ 286,989
Manor 6.45% 1.98% .97% 30.00%
Apts./
Ames, IA
Windemere 458,343 93,270 0 0 551,613
Apts./ 7.95% 1.60% 1.08% 30.00%
Wichita, KS
Fieldcrest III 208,354 0 0 0 208,354
Apts./ 8.68% 0% 1.36% 30.00%
Dothan, AL
Holly Ridge 311,869 38,877 0 0 350,746
II Apts./ 8.125% 1.00% .64% 30.00%
Gresham, OR
----------------------------------------------------------------------
Total $1,197,010 $200,692 $ 0 $ 0 $1,397,702
======================================================================
CAPITAL MORTGAGE PLUS L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002
(Unaudited)
(A) Base Interest on the Mortgages is that amount that is insured/co-insured by
the Department of Housing and Urban Development ("HUD") and is being shown net
of servicing fees.
(B) Default Interest is the minimum amount due over the base rate, and is not
contingent upon cash flow. This interest is secured by partnership interests in
the borrower.
(C) Annual Yield is the amount over the default rate and is contingent upon
property cash flow.
(D) Cash Flow Participation is the percent of cash flow due to the Partnership
after payment of the Annual Yield and is contingent upon property cash flow.
(E) The Investments in Loans amount reflects the unpaid balance of the Mortgages
and the unamortized balance of the equity loans in the amounts of $20,523,202
and $202,060, respectively, at September 30, 2002 and $20,651,303 and $351,069,
respectively, at December 31, 2001.
9
CAPITAL MORTGAGE PLUS L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002
(Unaudited)
Investments in loans January 1, 2001 $21,357,424
Additions:
Fieldcrest discount amortization 1,452
Deductions:
Amortization of equity loans (200,130)
Collection of principal - Mortenson (49,769)
- Windemere (57,114)
- Fieldcrest (20,016)
- Holly Ridge (29,475)
-----------
(356,504)
Investments in loans -----------
December 31, 2001: 21,002,372
-----------
Additions:
Fieldcrest discount amortization 1,089
Deductions
Amortization of equity loans (150,097)
Collection of principal - Mortenson (39,485)
- Windemere (45,933)
- Fieldcrest (16,200)
- Holly Ridge (26,483)
-----------
(278,199)
-----------
Investments in loans September 30, 2002 $20,725,263
===========
The Mortenson Manor and Windemere Mortgages are co-insured by HUD and Related
Mortgage Corporation ("RMC"), an affiliate of the General Partner. The
Fieldcrest III and Holly Ridge II Mortgages are insured by HUD.
In addition to the interest rate payable during the post-construction periods,
the Partnership will be entitled to payment of 30% of cash flow remaining after
payment of the permanent loan interest and accrued interest if any, and certain
amounts from sales or refinancing proceeds.
The equity loans are non-interest bearing and are secured by the assignment of
the owner/developers' interests in the projects. The equity loans are not
insured by HUD or any other party and, for financial statement reporting
purposes, are considered to be premiums paid to obtain the Mortgages. These
premiums are amortized over the average expected lives of the respective
Mortgages.
10
CAPITAL MORTGAGE PLUS L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002
(Unaudited)
At September 30, 2002, all of the loans due to the Partnership are current with
respect to their Federal Housing Authority ("FHA") Mortgage obligations.
Mortenson has not paid an aggregate of approximately $718,000 of default
interest due for the years ended December 31, 1995 to December 31, 2001 and the
nine months ended September 30, 2002; Windemere has not paid its default
interest of an aggregate of approximately $565,000 for the nine months ended
September 30, 2002 and the years ended December 31, 2001, 2000, 1999 and 1996;
and Hollyridge has not paid its default interest of an aggregate of
approximately $13,000 for the nine months ended September 30, 2002, resulting in
an aggregate allowance for uncollectability relating to the default interest
amounting to approximately $1,296,000 and $1,165,000 at September 30, 2002 and
December 31, 2001, respectively. The current allowance is reflected in provision
for bad debts on the statements of income.
Note 3 - Related Parties
The costs incurred to related parties for the three and nine months ended
September 30, 2002 and 2001 were as follows:
=================== ===================
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
2002 2001 2002 2001
------------------- -------------------
Partnership management
fees (a) $ 31,592 $ 31,592 $ 94,776 $ 94,776
Expense reimbursement (b) 37,297 21,151 79,428 43,542
-------- -------- -------- --------
Total general and admin-
istrative-related parties $ 68,889 $ 52,743 174,204 $138,318
======== ======== ======== ========
11
CAPITAL MORTGAGE PLUS L.P.
(a limited partnership)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2002
(Unaudited)
(a) A Partnership management fee for managing the affairs of the Partnership
equal to .5% per annum of invested assets is payable out of cash flow to the
General Partner. At September 30, 2002 and December 31, 2001 a balance of
approximately $0 and $32,000 was due to the General Partners for these fees.
(b) The General Partner and its affiliates perform services for the Partnership
which include, but are not limited to: accounting and financial management,
registrar, transfer and assignment functions, asset management, investor
communications, printing services and other administrative services. The amount
of reimbursement from the Partnership is limited by the provisions of the
Partnership Agreement. An affiliate of the General Partner performs asset
monitoring services for the Partnership. These asset monitoring services include
site visits and evaluations of the performance of the properties securing the
loans. Fees owed to the General Partner amounting to approximately $55,000 and
$41,000 were accrued and unpaid as of September 30, 2002 and December 31, 2001,
respectively.
RMC is a co-insurer on the Mortenson and Windemere mortgage loans in which the
Partnership has invested. RMC is entitled to a mortgage insurance premium which
is paid by the mortgagors.
Note 4 - Subsequent Event
It is anticipated that during November 2002, distributions of approximately
$402,000 and $8,000 will be paid to BACs holders and the General Partner,
respectively, representing the 2002 third quarter distribution.
On October 31, 2002, Mortenson II Associates L.P. (the "Owner"), the owner of
Mortenson II Apartments ("Mortenson"), prepaid the outstanding FHA Co-Insured
Mortgage Loan (the "Mortgage Loan") and equity loan (the "Equity Loan") in full.
The Mortgage Loan and the Equity Loan were secured by a mortgage on the
Mortenson property and partnership interests in the Owner. The outstanding debt
repaid early to the Partnership totaled $5,934,489, including the $4,543,011
outstanding balance of the Mortgage Loan, the $577,885 Equity Loan and $813,593
of additional interest due pursuant to the loan documents.
12
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
Capital Resources and Liquidity
- -------------------------------
Sources of Partnership funds included interest earned on (1) investments in
mortgage loans and (2) the working capital reserve.
During the nine months ended September 30, 2002, cash and cash equivalents of
the Partnership increased by approximately $58,000 due to cash provided by
operating activities of approximately $1,160,000 and collections of principal on
mortgage loans of approximately $128,000 less distributions paid to Partners of
approximately $1,230,000. Amortization of approximately $163,000 is included in
the adjustments to reconcile the net income to cash provided by operating
activities.
A distribution of approximately $1,205,000 was made to the limited partners or
BACs holders during the nine months ended September 30, 2002. A total of
approximately $25,000 was distributed to the General Partner during the nine
months ended September 30, 2002.
Management is not aware of any trends or events, commitments or uncertainties
that will impact liquidity in a material way. Management believes the only
impact would be from laws that have not yet been adopted. All base interest and
the principal of the Partnership's investments in mortgage loans are insured or
co-insured by HUD and additionally two loans are coinsured by a private mortgage
lender (which is an affiliate of the General Partner). The Partnership's
investments in uninsured non-interest bearing equity loans (which represented
approximately 10% of the Partnership's portfolio when originated) are secured by
a Partnership interest in properties which are diversified by location so that
if one area of the United States is experiencing downturns in the economy, the
remaining properties may be experiencing upswings. However, the geographic
diversification of the portfolio may not protect against a general downturn in
the national economy.
Critical Accounting Policies
- ----------------------------
The financial statements are prepared in accordance with accounting principles
generally accepted in the United States of America, which requires Registrant to
make certain estimates and assumptions. A summary of significant accounting
policies is disclosed in Note 2 to the financial statements which are included
in Registrant's annual report on Form 10-K for the year ended December 31, 2001.
13
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 Registrant's financial condition and results of operations.
Registrant 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.
o Interest income on the mortgage loans consist of contingent and
non-contingent interest as defined in the mortgage notes and other
additional interest agreements. Non-contingent interest consists of
base and default interest, which is recognized as earned. Contingent
interest is based on the development's cash flows and is recognized
when received.
o If the interest receivable exceeds the estimated value derived by
management, Registrant adjusts the allowance account to reflect its
estimated fair value.
o The equity loans are considered to be premiums paid to obtain the
Mortgages and are amortized over the average expected lives of the
respective Mortgages.
Results of Operations
- ---------------------
Three and nine months ended September 30, 2002 compared with the three and nine
- --------------------------------------------------------------------------------
months ended September 30, 2001
- -------------------------------
Results of operations for the three and nine months ended September 30, 2002 and
2001 consisted primarily of interest income earned from investment in mortgage
loans of approximately $465,000 and $481,000 and $1,398,000 and $1,464,000,
respectively.
Temporary investments decreased approximately $6,000 and $21,000 for the three
and nine months ended September 30, 2002 as compared to the same periods in
2001, primarily due to lower interest rates on investment account balances.
General and administrative increased approximately $10,000 for the nine months
ended September 30, 2002 as compared to the same period in 2001, primarily due
to an increase in printing and legal expenses in 2002.
General and administrative-related parties increased approximately $16,000 and
$36,000 for the three and nine months ended September 30, 2002 as compared to
the same periods in 2001, primarily due to an increase in expenses
reimbursements due to the General Partner for asset monitoring and overhead.
14
A provision for bad debts of approximately $44,000 and $132,000 was charged to
operations for the three and nine months ended September 30, 2002, representing
the 2001 and 2002 Guaranteed Interest due for Mortenson, the 2002 Guaranteed
Interest due for Windemere and the 2002 Guaranteed Interest due for Hollyridge,
none of which is expected to be paid.
Item 3. Quantitative and Qualitative Disclosures about Market Risk
None.
Item 4. Controls and Procedures
The Principal Executive Officer and Principal Financial Officer of CIP
Associates, Inc., the general partner of Capital Mortgage Plus L.P. (the
"Partnership"), has evaluated the Partnership's disclosure controls and
procedures relating to the Partnership's quarterly report on Form 10-Q for the
period ending September 30, 2002 as filed with the Securities and Exchange
Commission and has judged such controls and procedures to be effective as of
September 30, 2002 (the "Evaluation Date").
There have been no significant changes in the internal controls or in other
factors that could significantly affect internal controls relating to the
Partnership since the Evaluation Date.
15
PART II. OTHER INFORMATION
Item 1. Legal Proceedings - None
Item 2. Changes in Securities and Use of Proceeds - 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:
99.1Certification Pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(b) Current report on Form 8-K -
No reports on form 8-K were filed during the quarter ended
September 30, 2002.
16
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CAPITAL MORTGAGE PLUS L.P.
By: CIP ASSOCIATES, INC.
General Partner
Date: November 7, 2002
By:/s/ Alan P. Hirmes
------------------
Alan P. Hirmes
Senior Vice President
(Principal Executive and Financial Officer)
Date: November 7, 2002
By:/s/ Glenn F. Hopps
------------------
Glenn F. Hopps
Treasurer
(Principal Accounting Officer)
CERTIFICATION
I, Alan P. Hirmes, Principal Executive Officer and Principal Financial Officer
of CIP Associates, Inc., (the "General Partners"), the general partner of
Capital Mortgage Plus L.P. (the "Partnership"), hereby certify that:
1. I have reviewed this quarterly report on Form 10-Q for the period
ending September 30, 2002 of 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 in order 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 Partnership as of, and for, the periods presented in
this quarterly report;
4. I am responsible for establishing and maintaining disclosure controls
and procedures (as defined in Exchange Act Rules 13a-14 and 15-d-14)
for the Partnership and I have:
a) designed such disclosure controls and procedures to ensure the
material information relating to the Partnership is made known to me,
particularly during the period in which this quarterly report was
being prepared;
b) evaluated the effectiveness of the Partnership's disclosure
controls and procedures as of September 30, 2002 (the "Evaluation
Date"); and
c) presented in this quarterly report my conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. I have disclosed, based on my most recent evaluation, to the
Partnership's auditors and to the boards of directors of the General
Partners:
a) 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
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the Partnership's
internal controls; and
6. 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 date of
our most recent evaluation, including any corrective actions with
regard to significant deficiencies and material weaknesses.
Pursuant to the requirements 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.
By: /s/ Alan P. Hirmes
------------------
Alan P. Hirmes
Principal Executive Officer and
Principal Financial Officer
November 7, 2002
CERTIFICATION PURSUANT TO
18.U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Quarterly Report of Capital Mortgage Plus L.P. (the
"Partnership") on Form 10-Q for the period ending September 30, 2002 as filed
with the Securities and Exchange Commission on the date hereof (the "Report"),
I, Alan P. Hirmes, Principal Executive Officer and Principal Financial Officer
of CIP Associates, Inc., the general partner of the Partnership, certify,
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002, that:
(1) The Report fully complies with the requirements of section 13(a) or
15(d) of the Securities Exchange Act of 1934; and
(2) The information contained in the Report fairly presents, in all
material respects, the financial condition and result of operations of the
Partnership.
/s/ Alan P. Hirmes
- ----------------------
Alan P. Hirmes
Principal Executive Officer and Principal Financial Officer
November 7, 2002