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FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

(X)   QUARTERLY REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934.

      For the quarterly period ended December 31, 2002

                                             or

( )   TRANSITION REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934

      For the transition period from _______ to _______
Commission file number        0-21718

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

Delaware

52-1749505

(State or other jurisdiction

(I.R.S. Employer

of incorporation or organization)

Identification No.)

 

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

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 III L.P.

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 31,2002

TABLE OF CONTENTS

FOR THE QUARTER ENDED December 31,2002

Balance Sheets *

Balance Sheets Series 15 *

Balance Sheets Series 16 *

Balance Sheets Series 17 *

Balance Sheets Series 18 *

Balance Sheets Series 19 *

THREE MONTHS ENDED DECEMBER 31 10

Statements of Operations Series 15 11

Statements of Operations Series 16 12

Statements of Operations Series 17 13

Statements of Operations Series 18 14

Statements of Operations Series 19 15

NINE MONTHS ENDED DECEMBER 31 *

Statements of Operations Series 15 *

Statements of Operations Series 16 *

Statements of Operations Series 17 *

Statements of Operations Series 18 *

Statements of Operations Series 19 *

statementS OF Changes in Partners Capital 22

Changes in Partners Capital Series 15 23

Changes in Partners Capital Series 16 23

Changes in Partners Capital Series 17 24

Changes in Partners Capital Series 18 24

Changes in Partners Capital Series 19 25

Statements of Cash Flows 26

Statements of Cash Flows Series 15 28

Statements of Cash Flows Series 16 30

Statements of Cash Flows Series 17 32

Statements of Cash Flows Series 18 34

Statements of Cash Flows Series 19 36

Notes to Financial Statements *

Note A Organization *

Note B Accounting *

Investment *

Note C Related Party Transactions 40

Note D Investments 41

 

 

 

 

 

COMBINED STATEMENTS OF OPERATION

Combined Statements Series 15 42

Combined Statements Series 16 43

Combined Statements Series 17 44

Combined Statements Series 18 45

Combined Statements Series 19 46

Liquidity 48

Capital_Resources 48

Results of Operations 49

Part II Other Information 55

SIGNATURES 56

 

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

 

 

December 31,

2002

(Unaudited)

March 31,

2002

(Audited)

ASSETS

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$ 68,348,728

$ 75,098,878
     

OTHER ASSETS

    

Cash and cash equivalents

1,944,112

2,273,043

Investments

-

-

Notes receivable

1,309,982

1,309,982

Deferred acquisition costs, 

   net of accumulated amortization

  (Note B)

 

1,353,887

 

1,405,559

Other assets

  2,955,158

  2,971,523
 

$ 75,911,867

$ 83,058,985
     

LIABILITIES

    
     

Accounts payable & accrued expenses 
(Note C)

$      4,553

$      4,553

Accounts payable affiliates

18,338,038

    16,790,272

Capital contributions payable

  1,310,890

  1,384,034
 

 19,653,481

 18,178,859
     

PARTNERS CAPITAL

    
     

Limited Partners 
  
   Units of limited partnership 
   interest, $10 stated value per BAC; 
   22,000,000 authorized BACs; 
   21,996,102 issued and outstanding, 
   as of December 31, 2002   







57,585,465







66,120,988

General Partner

(1,327,079)

(1,240,862)
 

 56,258,386

 64,880,126
 

$ 75,911,867

$ 83,058,985

 

 

 

 

The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 15

 

 

December 31,

2002

(Unaudited)

March 31,

2002

(Audited)

ASSETS

 

 

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$ 8,366,803

$ 9,478,582
     

OTHER ASSETS

    
     

Cash and cash equivalents

325,275

444,415

Investments

-

   -

Notes receivable

-

-

Deferred acquisition costs, 
   net of accumulated amortization
  (Note B)

 

207,604

 

215,488

Other assets

   793,901

   793,901
 

$ 9,693,583

$10,932,386
     

LIABILITIES

    
     

Accounts payable & accrued expenses 
  (Note C)

$     1,145

$     1,145

Accounts payable affiliates

4,977,555

4,666,517

Capital contributions payable

    16,206

    16,206
 

 4,994,906

 4,683,868
     

PARTNERS CAPITAL

    
     

Limited Partners 
  
   Units of limited partnership 
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,870,500 issued and outstanding,
   as of December 31, 2002   







4,984,361







6,518,704


General Partner

 (285,684)

 (270,186)
 

 4,698,677

 6,248,518
 

$ 9,693,583

$10,932,386



The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 16



December 31,

2002

(Unaudited)

March 31,

2002

(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (Note D)

$15,468,282

$17,545,233

 

    

OTHER ASSETS

    
     

Cash and cash equivalents

368,897

489,893

Investments

-

-

Notes receivable

-

-

Deferred acquisition costs, 
   net of accumulated amortization 
  (Note B)

 

332,833

 

345,471

Other assets

   119,178

   119,178
 

$16,289,190

$18,499,775
     

LIABILITIES

    
     

Accounts payable & accrued expenses 
  (Note C)

$         -

$         -

Accounts payable affiliates

4,221,987

3,803,006

Capital contributions payable

    75,362

   138,506
 

 4,297,349

 3,941,512
     

PARTNERS CAPITAL

    
     

Limited Partners 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,429,402 issued and outstanding,
   as of December 31, 2002







12,338,532







14,879,290

General Partner

 (346,691)

 (321,027)

 

11,991,841

14,558,263
 

$16,289,190

$18,499,775


The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 17



December 31,

2002

(Unaudited)

March 31,

2002

(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING 
   PARTNERSHIPS (Note D)

$15,965,972

$16,878,320

 

    

OTHER ASSETS

    
     

Cash and cash equivalents

483,491

491,940

Investments

-

-

Notes receivable

1,309,982

1,309,982

Deferred acquisition costs, 
   net of accumulated amortization
  (Note B)

 

299,336

 

310,998

Other assets

 1,948,341

 1,964,133
 

$20,007,122

$20,955,373
     

LIABILITIES

    
     

Accounts payable & accrued expenses 
  (Note C)

$         -

$         -

Accounts payable affiliates

5,597,070

5,174,295

Capital contributions payable

1,176,768

 1,186,768
 

6,773,838

 6,361,063
     

PARTNERS CAPITAL

    
     

Limited Partners 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   5,000,000 issued and outstanding,
   as of December 31, 2002   







13,530,631







14,878,047


General Partner

 (297,347)

 (283,737)
 

13,233,284

14,594,310
 

$20,007,122

$20,955,373


The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 18



December 31,

2002

(Unaudited)

March 31,

2002

(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING   

   PARTNERSHIPS (NOTE D)

$11,215,954

$12,586,199
     

OTHER ASSETS

    
     

Cash and cash equivalents

340,553

365,987

Investments

-

-

Notes receivable

-

-

Deferred acquisition costs,  

   Net of accumulated amortization

  (Note B)

 

226,357

 

234,917

Other assets

    89,184

    89,184
 

$11,872,048

$13,276,287
     

LIABILITIES

    
     

Accounts payable & accrued expenses 

  (Note C)


$         -

$         -

Accounts payable affiliates

2,487,294

2,200,833

Capital contributions payable

    18,554

    18,554
 

 2,505,848

 2,219,387
     

PARTNERS CAPITAL

    
     

Limited Partners 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   3,616,200 issued and outstanding,
   as of December 31, 2002       







9,582,766







11,256,559


General Partner

 (216,566)

 (199,659)
 

9,366,200

11,056,900
 

$11,872,048

$13,276,287



The accompanying notes are an integral part of this statement

 

 

 

Boston Capital Tax Credit Fund III L.P.

BALANCE SHEETS

Series 19



December 31,

2002

(Unaudited)

March 31,

2002

(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (NOTE D)    

$17,331,717

$18,610,544
     

OTHER ASSETS

    
     

Cash and cash equivalents

425,896

480,808

Investments

-

-

Notes receivable

-

-

Deferred acquisition costs, 
   net of accumulated amortization
   (Note B)

 

287,757

 

298,685

Other assets

     4,554

     5,127
 

$18,049,924

$19,395,164
     

LIABILITIES

    
     

Accounts payable & accrued expenses
   (Note C)

$     3,408

$     3,408

Accounts payable affiliates

1,054,132

945,621

Capital contributions payable

    24,000

    24,000
 

 1,081,540

   973,029
     

PARTNERS CAPITAL

    
     

Limited Partners 
  
   Units of limited partnership    
   interest, $10 stated value per
   BAC; 22,000,000 authorized BACs;
   4,080,000 issued and outstanding,
   as of December 31, 2002    







17,149,175







18,588,388


General Partner

 (180,791)

 (166,253)
 

16,968,384

18,422,135
 

$18,049,924

$19,395,164

The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS


Three Months Ended December 31,
(Unaudited)

 


2002


2001
     

Income

    

  Interest income

$     4,869

$     15,967

  Other income

     8,859

 13,551
 

    13,728

     29,518

Share of loss from Operating 
  Partnerships(Note D)

(2,428,390)

(2,422,991)
     

Expenses

    

  Professional fees

29,679

19,794

  Fund management fee (Note C) 

609,891

513,892

  Amortization

17,224

17,224

  General and administrative expenses

     66,212

     70,116

  

  723,006

    621,026
     

  NET LOSS

$(3,137,668)

$(3,014,499)
     

Net loss allocated to limited partners

$(3,106,291)

$(2,984,354)
     

Net loss allocated to general partner

$   (31,377)

$   (30,145)
     

Net loss per BAC

$      (.14)

$      (.14)
     















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended December 31,
(Unaudited)

Series 15


2002


2001
     

Income

    

  Interest income

$      961

$     2,946

  Other income

    900

  1,701

     1,861

     4,647

Share of loss from Operating 
  Partnerships(Note D)

 (486,822)

 (335,688)
     

Expenses

    

  Professional fees

12,878

4,194

  Fund management fee    

127,891

115,584

  Amortization

2,628

2,628

  General and administrative expenses

    14,657

    13,868

  

  158,054

   136,274
     

  NET LOSS

$ (643,015)

$ (467,315)
     

Net loss allocated to limited partners

$ (636,585)

$ (462,642)
     

Net loss allocated to general partner

$   (6,430)

$   (4,673)
     

Net loss per BAC

$     (.17)

$     (.12)
     

















The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended December 31,
(Unaudited)

Series 16


2002


2001
     

Income

    

  Interest income

$      776

$     3,845

  Other income

   2,821

     4,350
 

     

     3,597

     8,195

Share of loss from Operating 
  Partnerships(Note D)

 (679,240)

 (645,659)
     

Expenses

    

  Professional fees

3,927

6,558

  Fund management fee    

163,716

 154,147

  Amortization

4,213

     4,213

  General and administrative expenses

    15,712

    16,893

  

  187,568

   181,811
     

  NET LOSS

$ (863,211)

$ (819,275)
     

Net loss allocated to limited partners

$ (854,579)

$ (811,082)
     

Net loss allocated to general partner

$   (8,632)

$   (8,193)
     

Net loss per BAC

$     (.16)

$     (.15)
     














 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended December 31,
(Unaudited)

Series 17


2002


2001
     

Income

    

  Interest income

$     1,288

$     1,887

  Other income

     2,400

    3,450
 

     3,688

    5,337

Share of loss from Operating 
  Partnerships(Note D)

 (341,343)

 (543,064)
     

Expenses

    

  Professional fees

3,336

3,559

  Fund management fee    

131,514

122,861

  Amortization

3,887

3,887

  General and administrative expenses

    14,185

    14,993

  

  152,922

   145,300
     

  NET LOSS

$ (490,577)

$ (683,027)
     

Net loss allocated to limited partners

$ (485,671)

$ (676,197)
     

Net loss allocated to general partner

$   (4,906)

$   (6,830)
     

Net loss per BAC

$     (.10)

$     (.14)
     















 



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)

Series 18


2002


2001
     

Income

    

  Interest Income

$      857

$    1,127

  Other income

     1,238

     1,950
 

     2,095

     3,077

Share of loss from Operating 
  Partnerships(Note D)

 (429,582)

 (526,808)
     

Expenses

    

  Professional fees

5,871

3,059

  Fund management fee    

91,433

21,433

  Amortization

2,853

2,853

  General and administrative expenses

    10,345

    11,743

  

  110,502

   39,088
     

  NET LOSS

$ (537,989)

$ (562,819)
     

Net loss allocated to limited partners

$ (532,609)

$ (557,191)
     

Net loss allocated to general partner

$   (5,380)

$   (5,628)
     

Net loss per BAC

$     (.15)

$     (.15)
     















 



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Three Months Ended December 31,
(Unaudited)

Series 19


2002


2001
     

Income

    

  Interest income

$      987

$     6,162

  Other income

     1,500

     2,100

     2,487

  8,262

Share of loss from Operating 
  Partnerships(Note D)

 (491,403)

 (371,772)
     

Expenses

    

  Professional fees

3,667

2,424

  Fund management fee    

95,337

99,867

  Amortization

3,643

3,643

  General and administrative expenses

    11,313

    12,619

  

  113,960

   118,553
     

  NET LOSS

$ (602,876)

$ (482,063)
     

Net loss allocated to limited partners

$ (596,847)

$ (477,242)
     

Net loss allocated to general partner

$   (6,029)

$   (4,821)

Net loss per BAC

$     (.15)

$     (.12)
     
















 

 

 

 


The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS


Nine Months Ended December 31,
(Unaudited)

 


2002


2001
     

Income

    

  Interest income

$     17,509

$     67,934

  Other income

     15,037

 27,955
 

     32,546

     95,889

Share of loss from Operating 
  Partnerships(Note D)

(6,592,054)

(6,967,499)
     

Expenses

    

  Professional fees

179,684

190,725

  Fund management fee (Note C) 

1,709,680

1,655,489

  Amortization

51,672

51,672

  General and administrative expenses

    121,196

    122,649

  

  2,062,232

  2,020,535
     

  NET LOSS

$(8,621,740)

$(8,892,145)
     

Net loss allocated to limited partners

$(8,535,523)

$(8,803,224)
     

Net loss allocated to general partner

$   (86,217)

$   (88,921)
     

Net loss per BAC

$      (.39)

$      (.40)
     















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)

Series 15


2002


2001
     

Income

    

  Interest income

$     3,492

$     13,345

  Other income

     1,934

  3,451

      5,426

     16,796

Share of loss from Operating 
  Partnerships(Note D)

(1,108,668)

  (905,112)
     

Expenses

    

  Professional fees

49,807

48,518

  Fund management fee    

363,936

366,815

  Amortization

7,884

7,884

  General and administrative expenses

     24,972

     23,585

  

  446,599

    446,802
     

  NET LOSS

$(1,549,841)

$(1,335,118)
     

Net loss allocated to limited partners

$(1,534,343)

$(1,321,767)
     

Net loss allocated to general partner

$   (15,498)

$   (13,351)
     

Net loss per BAC

$      (.40)

$      (.34)
     

















The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)

Series 16


2002


2001
     

Income

    

  Interest income

$      3,468

$     18,567

  Other income

      7,873

      4,754
 

     

     11,341

     23,321

Share of loss from Operating 
  Partnerships(Note D)

(2,073,175)

(1,925,169)
     

Expenses

    

  Professional fees

40,836

49,714

  Fund management fee    

421,670

 455,392

  Amortization

12,638

    12,638

  General and administrative expenses

     29,444

     29,888

  

  504,588

    547,632
     

  NET LOSS

$(2,566,422)

$(2,449,480)
     

Net loss allocated to limited partners

$(2,540,758)

$(2,424,985)
     

Net loss allocated to general partner

$   (25,664)

$ (24,495)
     

Net loss per BAC

$      (.47)

$      (.45)
     














 

 

 

The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)

Series 17


2002


2001
     

Income

    

  Interest income

$      4,054

$      6,531

  Other income

      2,492

     15,700
 

      6,546

     22,231

Share of loss from Operating 
  Partnerships(Note D)

  (908,343)

(1,388,792)
     

Expenses

    

  Professional fees

33,165

44,936

  Fund management fee    

388,315

342,153

  Amortization

11,662

11,662

  General and administrative expenses

     26,087

     27,063

  

  459,229

    425,814
     

  NET LOSS

$(1,361,026)

$(1,792,375)
     

Net loss allocated to limited partners

$(1,347,416)

$(1,774,451)
     

Net loss allocated to general partner

$   (13,610)

$   (17,924)
     

Net loss per BAC

$      (.27)

$      (.35)
     















 



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)

Series 18


2002


2001
     

Income

    

  Interest Income

$     2,859

$      6,073

  Other income

      1,238

      1,950
 

      4,097

     8,023

Share of loss from Operating 
  Partnerships(Note D)

(1,368,684)

(1,635,934)
     

Expenses

    

  Professional fees

32,346

26,234

  Fund management fee    

265,886

202,554

  Amortization

8,560

8,560

  General and administrative expenses

     19,321

     20,071

  

  326,113

   257,419
     

  NET LOSS

$(1,690,700)

$(1,885,330)
     

Net loss allocated to limited partners

$(1,673,793)

$(1,866,477)
     

Net loss allocated to general partner

$   (16,907)

$   (18,853)
     

Net loss per BAC

$      (.47)

$     (.52)
     















 



The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)

Series 19


2002


2001
     

Income

    

  Interest income

$      3,636

$     23,418

  Other income

      1,500

      2,100

      5,136

  25,518

Share of loss from Operating 
  Partnerships(Note D)

(1,133,184)

(1,112,492)
     

Expenses

    

  Professional fees

23,530

21,323

  Fund management fee    

269,873

288,575

  Amortization

10,928

10,928

  General and administrative expenses

     21,372

     22,042

  

  325,703

    342,868
     

  NET LOSS

$(1,453,751)

$(1,429,842)
     

Net loss allocated to limited partners

$(1,439,213)

$(1,415,544)
     

Net loss allocated to general partner

$   (14,538)

$   (14,298)

Net loss per BAC

$      (.36)

$      (.35)
     



















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine Months Ended December 31, 2001

(Unaudited)

 





Assignees



General
Partner





Total
       

Partners' capital 
 (deficit)
  April 1, 2002



$ 66,120,988



$(1,240,862)



$ 64,880,126

    

      
       

Net income (loss)

(8,535,523)

   (86,217)

(8,621,740)
       

Partners' capital 
 (deficit),
  December 31, 2002



$ 57,585,465



$(1,327,079)



$ 56,258,386
       





























The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine Months Ended December 31, 2002
(Unaudited)

 

Assignees

General
Partner

Total

Series 15

      

Partners' capital 
 (deficit)
  April 1, 2002



$  6,518,704



$  (270,186)



$  6,248,518

    

      
       

Net income (loss)

(1,534,343)

   (15,498)

(1,549,841)
       

Partners' capital 
 (deficit)
  December 31, 2002    



$  4,984,361



$  (285,684)



$  4,698,677
       
       

Series 16

      

Partners' capital 
 (deficit)
  April 1, 2002



$ 14,879,290



$  (321,027)



$ 14,558,263
       
       

Net income (loss)

(2,540,758)

   (25,664)

(2,566,422)
       

Partners' capital 
 (deficit)
  December 31, 2002    

 

$ 12,338,532

 

$ (346,691)

 

$ 11,991,841
       


















The accompanying notes are an integral part of these statements.

 

 

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine Months Ended December 31, 2002
(Unaudited)

 

Assignees

General
Partner

Total

Series 17

      

Partners' capital 
 (deficit)
  April 1, 2002



$ 14,878,047



$  (283,737)



$ 14,594,310

    

      
       

Net income (loss)

(1,347,416)

  (13,610)

(1,361,026)
       

Partners' capital 
 (deficit)
  December 31, 2002    

 

$ 13,530,631

 

$ (297,347)

 

$ 13,233,284
       
       

Series 18

      

Partners' capital 
 (deficit)
  April 1, 2002



$ 11,256,559



$  (199,659)



$ 11,056,900
       
       

Net income (loss)

(1,673,793)

   (16,907)

(1,690,700)
       

Partners' capital 
 (deficit),
December 31, 2002   

 

$ 9,582,766

 

$ (216,566)

 

$ 9,366,200
       


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine Months Ended December 31, 2002
(Unaudited)

 

Assignees

General
Partner

Total

Series 19

      

Partners' capital 
 (deficit)
  April 1, 2002



  $ 18,588,388



$  (166,253)



$ 18,422,135

    

      
       

Net income (loss)

(1,439,213)

   (14,538)

(1,453,751)
       

Partners' capital 
 (deficit),
  December 31, 2002

 

$ 17,149,175

 

$ (180,791)

 

$ 16,968,384
       
































The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

 

2002

2001

Cash flows from operating activities:

    
     

   Net Loss

$(8,621,740)

$(8,892,145)

   Adjustments

    

      Distributions from Operating
        Partnerships


158,096


66,545

      Amortization

51,672

51,672

      Share of Loss from Operating
        Partnerships


6,592,054


6,967,499

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


- -


      -

      Decrease (Increase) in other assets

16,365

43,402

     (Decrease) Increase in accounts
        payable affiliates


  1,547,766


  1,350,227
     

      Net cash (used in) provided by 
        operating activities


(255,787)


  (412,800)
     
     

Cash flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


(73,144)


-

   Advances to Operating Partnerships

-

  -

   Investments

  -

  1,032,047
     

   Net cash (used in) provided by
     investing activities


  (73,144)


  1,032,047














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

 

2002

2001
     

Continued

    
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     Operating Partnerships


          -


          -
     

      Net cash (used in) provided by
        financing activity


          -


          -
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(328,931)


619,247
     

Cash and cash equivalents, beginning

  2,273,043

  1,122,380
     

Cash and cash equivalents, ending

$  1,944,112

$  1,741,627
     




























The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 15

 

2002

2001

Cash flows from operating activities:

    
     

   Net Loss

$(1,549,841)

$(1,335,118)

   Adjustments

    

      Distributions from Operating
        Partnerships


3,111


315

Amortization

7,884

7,884

      Share of Loss from Operating
        Partnerships


1,108,668


905,112

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


- -


- -

      Decrease (Increase) in other assets

-

8,407

     (Decrease) Increase in accounts
        payable affiliates


    311,038


    311,038
     

      Net cash (used in) provided by 
        operating activities


  (119,140)


  (102,362)
     
     

Cash flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


- -


- -

   Advances to Operating Partnerships

-

  -

   Investments

     -

    286,218
     

   Net cash (used in) provided by
     investing activities


     -


   286,218














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 15

 

2002

2001
     

Continued

    
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     Operating Partnerships


          -


          -
     

      Net cash (used in) provided by
        financing activity


          -


          -
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

 (119,140)

 183,856
     

Cash and cash equivalents, beginning

    444,415

    229,627
     

Cash and cash equivalents, ending

$    325,275

$    413,483
     




























The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 16

 

2002

2001

Cash flows from operating activities:

    
     

   Net Loss

$(2,566,422)

$(2,449,480)

   Adjustments

    

      Distributions from Operating
        Partnerships


3,776


11,183

      Amortization

12,638

12,638

      Share of Loss from Operating
        Partnerships


2,073,175


1,925,169

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


- -


- -

      Decrease (Increase) in accounts
        receivable


-


9,759

     (Decrease) Increase in accounts
        payable affiliates


    418,981


    318,986
     

      Net cash (used in) provided by 
        operating activities


   (57,852)


  (171,745)
     
     

Cash flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


(63,144)


-

   Advances to Operating Partnerships

-

 -

   Investments

     -

   390,695
     

   Net cash (used in) provided by
     investing activities


  (63,144)


   390,695














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 16

 

2002

2001
     

Continued

    
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     Operating Partnerships


          -


          -
     

      Net cash (used in) provided by
        financing activity


          -


          -
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

(120,996)

218,950
     

Cash and cash equivalents, beginning

    489,893

    113,123
     

Cash and cash equivalents, ending

$    368,897

$    332,073
     




























The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 17

 

2002

2001

Cash flows from operating activities:

    
     

   Net Loss

$(1,361,026)

$(1,792,375)

   Adjustments

    

      Distributions from Operating
        Partnerships


4,005


3,870

      Amortization

11,662

11,662

      Share of Loss from Operating
        Partnerships


908,343


1,388,792

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


- -


- -

      Decrease (Increase) in other assets

15,792

21,549

     (Decrease) Increase in accounts
        payable affiliates


    422,775

    400,227
 

 

  

      Net cash (used in) provided by 
        operating activities


      1,551


    33,725
     
     

Cash flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


(10,000)


-

   Advances to Operating Partnerships

-

-

   Investments

          -

          -
     

   Net cash (used in) provided by
     investing activities


   (10,000)


      -














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 17

 

2002

2001
     

Continued

    
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     Operating Partnerships


          -


          -
     

      Net cash (used in) provided by
        financing activity


          -


          -
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(8,449)


  33,725
     

Cash and cash equivalents, beginning

    491,940

    397,129
     

Cash and cash equivalents, ending

$    483,491

$    430,854
     




























The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 18

 

2002

2001

Cash flows from operating activities:

    
     

   Net Loss

$(1,690,700)

$(1,885,330)

   Adjustments

    

      Distributions from Operating
        Partnerships


1,561


4,634

      Amortization

8,560

8,560

      Share of Loss from Operating
        Partnerships


1,368,684


1,635,934

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


- -


- -

      Decrease (Increase) in accounts
        receivable


-


3,823

     (Decrease) Increase in accounts
        payable affiliates


    286,461


    211,461
     

      Net cash (used in) provided by 
        operating activities


   (25,434)


  (20,918)
     
     

Cash flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


- -


- -

   Advances to Operating Partnerships

  

-

   Investments

   -

    107,824
     

   Net cash (used in) provided by
     investing activities


     -


    107,824














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 18

 

2002

2001
     

Continued

    
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     Operating Partnerships


          -


          -
     

      Net cash (used in) provided by
        financing activity


          -


          -
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

(25,434)

86,906
     

Cash and cash equivalents, beginning

    365,987

    238,396
     

Cash and cash equivalents, ending

$    340,553

$    325,302
     




























The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 19

 

2002

2001

Cash flows from operating activities:

    
     

   Net Loss

$(1,453,751)

$(1,429,842)

   Adjustments

    

      Distributions from Operating
        Partnerships


145,643


46,543

      Amortization

10,928

10,928

      Share of Loss from Operating
        Partnerships


1,133,184


1,112,492

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable and accrued expenses


- -


- -

      Decrease (Increase) in accounts
        receivable


573


(136)

     (Decrease) Increase in accounts
        payable affiliates


    108,511


    108,515
     

      Net cash (used in) provided by 
        operating activities


   (54,912)


  (151,500)
     
     

Cash flows from investing activities:

    
     

   Capital contributions paid to 
     Operating Partnerships


- -


-

   Advances to Operating Partnerships

-

 -

   Investments

     -

    247,310
     

   Net cash (used in) provided by
     investing activities


     -


    247,310














The accompanying notes are an integral part of this statement

 

Boston Capital Tax Credit Fund III L.P.

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 19

 

2002

2001
     

Continued

    
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     Operating Partnerships


          -


          -
     

      Net cash (used in) provided by
        financing activity


          -


          -
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

(54,912)

 95,810
     

Cash and cash equivalents, beginning

    480,808

    144,105
     

Cash and cash equivalents, ending

$    425,896

$    239,915
     




























The accompanying notes are an integral part of this statement

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2002

(Unaudited)

 

NOTE A - ORGANIZATION


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


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




 










Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2002

(Unaudited)

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of December 31, 2002 and for the three and nine months then ended have been prepared by the Fund, without audit.  The Fund accounts for its investments in Operating Partnerships using the equity method, whereby the Fund adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued.  Costs incurred by the Fund in acquiring the investments in the Operating Partnerships are capitalized to the investment account.  The Fund's accounting and financial reporting policies are in conformity with generally accepted accounting principles and include adjustments in  interim periods considered necessary for a fair presentation of the results of operations. Such adjustments are of a normal recurring nature.

Investments

The Fund had included in investments, Certificates of Deposit with original materities of one year or less. These investments were carried at cost. All Certificates of Deposit matured prior to December 31, 2002 and the funds are now included in cash and cash equivalents.





























Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2002

(Unaudited)

Amortization

On July 1, 1995, the Fund began amortizing unallocated acquisition costs over 330 months from April 1, 1995. As of December 31, 2002 the Fund has accumulated unallocated acquisition amortization totaling $539,451.  The Fund has discontinued amortizing unallocated acquisition costs as of December 31, 2002. The breakdown of accumulated unallocated acquisition amortization within the fund as of December 31, 2002 and 2001 is as follows:

 

       2002

     2001
     

Series 15

$ 81,565

$ 71,053

Series 16

130,597

113,746

Series 17

128,414

112,865

Series 18

88,583

77,170

Series 19

110,292

 95,721

$539,451

$470,555

 

NOTE C - RELATED PARTY TRANSACTIONS

The Fund 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 as follows:

An annual fund management fee based on .5 percent of the aggregate cost of all apartment complexes owned by the Operating Partnerships, has been accrued to Boston Capital Asset Management Limited Partnership.  Since reporting fees collected by the series were added to reserves and not paid to Boston Capital Asset Management LP, the amounts accrued are not net of reporting fees received. The fund management fees accrued for the quarter ended December 31, 2002 and 2001 are as follows:

 

        2002

        2001
     

Series 15

$137,013

$137,013

Series 16

172,995

172,995

Series 17

140,925

140,925

Series 18

95,487

95,487

Series 19

102,837

102,837
 

$649,257

$649,257




 

 

 

 

 

 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS - CONTINUED
December 31, 2002

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At December 31, 2002 and 2001, the Fund had limited partnership interests in 241 Operating Partnerships which own or are constructing apartment complexes. The breakdown of Operating Partnerships within the Fund at December 31, 2002 and 2001 is as follows:

 

   

Series 15

68

Series 16

64

Series 17

49

Series 18

34

Series 19

 26
 

241


Under the terms of the Fund's investment in each Operating Partnership, the Fund is required to make capital contributions to the Operating Partnerships.  These contributions are payable in installments over several years upon each Operating Partnership achieving specified levels of construction and/or operations.  The contributions payable at December 31, 2002 and 2001 are as follows:

 

        2002

        2001
     

Series 15

$ 16,206

$   16,206

Series 16

75,362

138,506

Series 17

1,176,768

1,186,768

Series 18

18,554

18,554

Series 19

24,000

   24,000
 

$1,310,890

$1,384,034

 

The Funds fiscal year ends March 31st of each year, while all the Operating Partnerships' fiscal years are the calendar year.  Pursuant to the provisions of each Operating Partnership Agreement, financial results for each of the Operating Partnerships are provided to the Fund within 45 days after the close of each Operating Partnerships quarterly period.  Accordingly, the current financial results available for the Operating Partnerships are for the Nine Months ended September 30, 2002.









 

Boston Capital Tax Credit Fund III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2002
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 15

 

        2002

        2001
     

Revenues

    

   Rental

$   7,877,153

$   7,699,484

   Interest and other

     529,473

     410,510
     
 

   8,406,626

   8,109,994
     

Expenses

    

   Interest

2,354,270

2,185,866

   Depreciation and amortization

2,816,552

2,584,915

   Operating expenses

   5,221,711

   5,124,816
 

10,392,533

 9,895,597
     

NET LOSS

$ (1,985,907)

$ (1,785,603)
     

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



$ (1,108,668)



$ (905,112)
     
     

Net loss allocated to other 
   Partners


$   (19,859)


$    (17,856)
     

Net loss suspended

$  (857,380)

$   (862,635)

 

 

 

 

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 III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2002
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 16

 

        2002

        2001
     

Revenues

    

   Rental

$  9,727,378

$  10,041,306

   Interest and other

    637,079

     790,312
     
 

  10,364,457

10,831,618
     

Expenses

    

   Interest

2,847,768

  2,982,297

   Depreciation and amortization

3,282,358

3,593,036

   Operating expenses

   6,790,994

 6,586,789
 

12,921,120

13,162,122
     

NET LOSS

$ (2,556,663)

$ (2,330,504)
     

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



$ (2,073,175)



$ (1,925,169)
     
     

Net loss allocated to other 
   Partners


$   (25,567)


$   (23,305)
 

 

Net loss suspended

$   (457,921)

$   (382,030)

 

 

 

 

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 III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2002
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 17
 

        2002

        2001
     

Revenues

    

   Rental

$   9,661,285

$   9,208,724

   Interest and other

     461,227

     440,922
     
 

  10,122,512

   9,649,646
     

Expenses

    

   Interest

2,922,530

3,002,715

   Depreciation and amortization

2,766,324

2,889,526

   Operating expenses

   5,668,414

   5,485,715
 

11,357,268

11,377,956
     

NET LOSS

$ (1,234,756)

$ (1,728,310)
     

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



$ (908,343)



$ (1,388,792)
     
     

Net loss allocated to other 
   Partners


$    (12,348)


$   (17,283)
     

Net loss suspended

$   (314,065)

$   (322,235)

 

 

 

 

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 III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2002
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 18

 

        2002

        2001
     

Revenues

    

   Rental

$   5,279,767

$   5,122,116

   Interest and other

     293,688

     246,694
     
 

   5,573,455

   5,368,810
     

Expenses

    

   Interest

1,511,734

   1,577,800

   Depreciation and amortization

2,041,880

   1,926,784

   Operating expenses

   3,664,690

3,590,152
 

  7,218,304

   7,094,736
     

NET LOSS

$ (1,644,849)

$ (1,725,926)
     

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



$ (1,368,684)



$ (1,635,934)
     
     

Net loss allocated to other 
   Partners


$   (16,449)


$   (17,259)

Net loss suspended

$   (259,716)

$    (72,733)

 

 

 

 

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 III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2002
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 19
 

        2002

        2001
     

Revenues

    

   Rental

$   7,541,113

$   7,346,813

   Interest and other

     320,581

     255,465
     
 

   7,861,694

   7,602,278
     

Expenses

    

   Interest

2,487,170

   2,501,175

   Depreciation and amortization

2,196,230

   2,153,555

   Operating expenses

   4,356,784

   4,152,732
 

  9,040,184

   8,807,462
     

NET LOSS

$ (1,178,490)

$ (1,205,184)
     

Net loss allocation to Boston  

   Capital Tax Credit Fund 
   III L.P.



$ (1,133,184)



$ (1,112,492)
     
     

Net loss allocated to other 
   Partners


$    (11,785)


$    (12,052)
     

Net loss suspended

$    (33,521)

$    (80,640)

 

 

 

 

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 III L.P.

NOTES TO FINANCIAL STATEMENTS
December 31, 2002
(Unaudited)




NOTE E - TAXABLE LOSS

The Fund's taxable loss for the year ended December 31, 2002 is expected to differ from its loss for financial reporting purposes.  This is primarily due to accounting differences in depreciation incurred by the Operating Partnerships and also differences between the equity method of accounting and the IRS accounting methods.  No provision or benefit for income taxes has been included in these financial statements since taxable income or loss passesthrough to, and is reportable by, the partners and assignees individually.

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

Liquidity

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

The Fund is currently accruing the fund management fee.  Fund management fees accrued during the quarter ended December 31, 2002 were $649,257 and total fund management fees accrued as of December 31, 2002 were $17,167,823. Pursuant to the Partnership Agreement, such liabilities will be deferred until the Fund receives sales of refinancing proceeds from Operating Partnerships which will be used to satisfy such liabilities. The Funds working capital and sources of liquidity coupled with affiliated party liability accruals allow sufficient levels of liquidity to meet the third party obligations of the Fund.  The Fund is currently unaware of any trends which would create insufficient liquidity to meet future third party obligations of the Fund.

The Fund has recorded an additional $1,170,220 as payable to affiliates. This represents fundings to make advances and/or loans to certain Operating Partnerships in Series 15 and Series 17 of $213,564, and $956,656, respectively.

Capital Resources

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

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

During the quarter ended December 31, 2002, none of Series 15 net offering proceeds had been used to pay capital contributions. Series 15 net offering proceeds in the amount of $16,206 remain to be used by the Fund to pay remaining capital contributions to the Operating Partnerships that Series 15 has invested in as of December 31, 2002.

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

     During the quarter ended December 31, 2002, none of Series 16 net offering proceeds had been used to pay capital contributions.  Series 16 net offering proceeds in the amount of $75,362 remain to be used by the Fund to pay remaining capital contributions to the Operating Partnerships that Series 16 has invested in as of December 31, 2002.

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

     During the quarter ended December 31, 2002, none of Series 17 net offering proceeds had been used to pay capital contributions.  Series 17 has outstanding contributions payable in the amount of $1,176,768 as of December 31, 2002. Of the amount outstanding, $1,139,873 has been advanced or loaned to the Operating Partnerships. The advances and loans will be converted to capital and the remaining contributions of $36,895 will be released from available net offering proceeds when the Operating Partnerships have achieved the conditions set forth in their partnership agreements.

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

During the quarter ended December 31, 2002, none of Series 18 net offering proceeds had been used to pay capital contributions.  Series 18 net offering proceeds in the amount of $18,554 remain to be used by the Fund to pay remaining capital contributions to the Operating Partnerships that Series 18 has invested in as of December 31, 2002.

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

During the quarter ended December 31, 2002, none of Series 19 net offering proceeds had been used to pay capital contributions.  Series 19 net offering proceeds in the amount of $24,000 remain to be used by the Fund to pay remaining capital contributions to the Operating Partnerships that Series 19 has invested in as of December 31, 2002.

Results of Operations

As of December 31, 2002 and 2001 the Fund held limited partnership interests in 241 Operating Partnerships.  In each instance the Apartment Complex owned by the applicable Operating Partnership is eligible for the Federal Housing Tax Credit.  Initial occupancy of a unit in each Apartment Complex which complied with the Minimum Set-Aside Test (i.e., initial occupancy by tenants with incomes equal to no more than a certain percentage of area median income) and the Rent Restriction Test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to 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 Fund incurred a fund management fee to Boston Capital Asset Management Limited Partnerships (formerly Boston Capital Communications Limited Partnership) in an amount equal to .5 percent of the aggregate cost of the apartment complexes owned by the Operating Partnerships, less the amount of certain asset management and reporting fees paid by the Operating Partnerships.  The fund management fees incurred, net of reporting fees received, for the quarter ended December 31, 2002 for Series 15, Series 16, Series 17, Series 18 and Series 19 were $127,891, $163,716, $131,514, $91,433, and $95,337 respectively.

The Funds investment objectives do not include receipt of significant cash distributions from the Operating Partnerships in which it has invested or intends to invest.  The Funds investments in Operating Partnerships have been made principally with a view towards realization of Federal Housing Tax Credits for allocation to its partners and BAC holders.

Series 15

As of December 31, 2002 and 2001, the average qualified occupancy for the series was 99.9% and 100%, respectively.  The series had a total of 68 properties December 31, 2002. Out of the total 67 were at 100% qualified occupancy.

For the nine months being reported Series 15 reflects a net loss from Operating Partnerships of $1,985,907.  When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $830,645.  This is an interim period estimate; it is not necessarily indicative of the final year end results.

Operations continue to improve at Hidden Cove Apartments (Hidden Cove) as evidenced by stabilized occupancy and increased rental collections. Occupancy through December 2002 has averaged 98%. To date the property has been able to complete minor capital improvements and fund its replacement reserve account without financial assistance. The property is currently operating slightly above breakeven. Cash flow and reserves will be utilized to make improvements necessary to maintain building safety. A welfare tax exemption was applied for and granted. The exemption was retroactive to tax years 2000 and 2001. This has had a positive effect on cash flow. In an attempt to capitalize on the strong California real estate market the Operating General Partner is currently in negotiations to sell the Operating Partnership. Any sale scenario will require the buyer to maintain the property as affordable housing through the end of the compliance period and to provide a bond to avoid any recapture of tax cred its. It is anticipated that this transaction may be completed during the second quarter of 2003. If operations continue to demonstrate improvement, the Investment General Partner will no longer report on this Partnership.

In April of 2000, Marshall School Street I, LLC became the Operating general Partner and property manager for School Street I LP, (School Street Apartments - Phase I). Since taking control, the Management Company completed the capital improvements program and improved the tenant selection criteria. As a result, physical occupancy at the property has increased and stabilized. During 2001 and 2002 occupancy averaged 99% and 98%, respectively. The improved occupancy and the improved tenant selection criteria increased cash flow significantly during 2002, but operations still remained below breakeven due to high operating expenses. During 2002 operating expenses declined by 19% versus 2001. The General Partner projects the property to cash flow in the second half of 2003 as they further control operating expenses and increase rents. The Operating General Partner continues to fund any operating cash deficits. The mortgage, property taxes, insurance and payables are current.




Series 16

As of December 31, 2002 and 2001, the average qualified occupancy for the series was 100% and 99.9%, respectively. The series had a total of 64 properties at December 31, 2002, all of which were at 100% qualified occupancy.

For the nine months being reported Series 16 reflects a net loss from Operating Partnerships of $2,556,663.  When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $725,695.  This is an interim period estimate; it is not necessarily indicative of the final year end results.

Cass Partners, L.P. (Fitzgerald Apartments) is a 20-unit, family property located in Plattsmouth, NE which continues to operate below breakeven due to low occupancy. An increased supply of affordable housing into the area has hampered marketing efforts and made tenant retention difficult. Average occupancy increased to 70% for the fourth quarter of 2002 from the third quarter 2002 average of 67%. There are currently six vacant units, each will require approximately $1,500 in maintenance expenses to recondition, but there is not adequate cash flow to fund the repair costs. In the past, the Operating General Partner has supported the property financially. At this time, the management company has not received the funds from the General Partner needed to turnover the vacant units. The management agent has qualified applicants waiting to lease the units once they are turned over. There are three commercial spaces at the property, two of which are currently vacant. A year lease has been executed for one o f the vacant units beginning in March 2003. Due to the lack of available funds, marketing has been limited to site signage. The parking is limited so the management company has requested additional parking spaces from the City of Plattsmouth, which was recently declined. The mortgage and the insurance accounts are current, but the taxes are currently overdue.

Clymer Park Associates (Clymer Park Apartments) located in Clymer Pennsylvania is a 32 unit elderly development. The partnership operated slightly below break-even for the first three quarters of 2002 as a result of high operating expenses and low occupancy. The low occupancy is due to the lack of rental assistance for 7 of the units and recently imposed restriction on Section 8 mobile vouchers. As of October 15, 2002 the Section 8 vouched restrictions were relaxed. Average occupancy for 2002 is 91.67%, this is a 5.2% improvement from the prior year. Management believes with the stabilization of the occupancy it expects to be able to reduce the current expense levels.

Beckwood Manor Eight (Lakeside Apartments) is a 32-unit, senior project located in Lake Village AR. The property had average occupancy of 77% in 2002. The Lake Village area does not have the need for affordable housing that was forecasted in the original market study. In order to attract prospective residents from the surrounding area, the management company advertises through newspapers, radio broadcast, community contacts, and word of mouth. Occasionally the management offers move-in rent incentives. The mortgage, real estate taxes, insurance, and payables are current.

Series 17

   As of December 31, 2002 and 2001, the average qualified occupancy for the series was 99.7%.  The series had a total of 49 properties at December 31, 2002.  Out of the total 48 were at 100% qualified occupancy.

For the nine months being reported Series 17 reflects a net loss from Operating Partnerships of $1,234,756.  When adjusted for depreciation, which, is a non-cash item, the Operating Partnerships reflect positive operations of $1,531,568. This is an interim period estimate; it is not necessarily indicative of the final year end results.

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 $99,860 (11.3%) in 2001. This combined with stabilized operating expenses allowed the property to operate above breakeven. This positive trend has continued into the fourth quarter of 2002, with net rental income exceeding budgeted projections. Occupancy remains stable at 88% through the fourth quarter of 2002. In accordance with the loan agreements, the property continues to fund capital improvements from operations. A welfare tax exemption was approved in 2001, and the Partnership received a refund of $29,982 in January 2002. If operations continue to demonstrate improvement, the Investment General Partner will no longer continue to report on this Partnership.

Operations at California Investors VI (Orchard Park Apartments) continue to show improvement. Historically, the property has suffered from low occupancy due to the remote location of the site. The area has experienced economic growth over the past few years, and as a result operations at the property have improved as well. Occupancy remains stable averaging 97% through the fourth quarter of 2002. A rent increase was implemented in March 2001, resulting in an increase in rental revenues of $68,822 (9.1%)in 2001. The increase was phased in as leases expired. The full benefit of the increase has become evident in 2002. As a result of the increased revenues, the Partnership is operating above breakeven through the fourth quarter of 2002. The property operated below breakeven in 2001 largely because the welfare tax exemption was not in place, and the property paid the full value of the property taxes. The exemption was submitted, however there was a pr oblem with the 503(C) documentation (non profit status) and the Partnership had to reapply with a new non profit partner. The new filing was submitted and the General Partner is waiting to hear from the state. If approved, the Partnership will receive a refund of approximately $32,000. The Operating General Partner will continue to monitor the status of the exemption. In an attempt to capitalize on the strong California real estate market the Operating General Partner is currently in negotiations to sell the Operating Partnership. Any sale scenario will require the buyer to maintain the property as affordable housing through the end of the compliance period and to provide a bond to avoid any recapture of tax credits. It is anticipated that this transaction may be completed during the second quarter of 2003.

Operations at Palmetto Properties Ltd. (Palmetto Villas) suffered from low occupancy in 1999 and the first half of 2000 due to poor on-site management and significant deferred maintenance issues. As a result, the property Management Company was replaced in January 2001. Since the management company change occurred, occupancy levels have steadily increased as improvements have been made at the property and deferred maintenance has been addressed. Occupancy averaged 95.07% for the year 2001, and has remained stable at 91% occupancy through the fourth quarter of 2002. Rental revenues increased by $62,670 in 2001 (an increase of 32.6% from the prior year) Property taxes remain an issue for this Partnership. Rural Development paid the 1998 delinquent taxes as an advance against the mortgage. The 1999 and 2000 taxes were paid in 2001 and 2002 respectively from property operations. The Investment General Partner is attempting to work with Rural Development to develop a workout plan to address the tax issue. Attempts to negotiate a plan have been unsuccessful to date. Although the increased rental revenues have allowed the Partnership to escrow funds for the payment of taxes and insurance, fiscal year 2001 and 2002 taxes remain delinquent. The Investment General Partner continues to monitor the situation.

Mt. Vernon Associates, L.P. (Green Court Apartments) is a 76-unit building located in Mt. Vernon, NY. The Partnership suffers from negative cash flow as a result of high operating expenses. The property has been able to meet obligations due to the Operating General Partner funding deficits. As the management agent is an affiliate of the Operating General Partner, the Partnership has also been deferring management fees. Operating statements through December 30, 2002 demonstrate expenses are running below budget, in all areas with the exception of maintenance. As a result the Partnership is

operating below breakeven. Necessary repairs due to the age of the building resulted in higher than anticipated repairs costs, and capital improvements in 2002 totaled $18,340, the majority of which were funded through operations. As a result of an audit performed by the State Agency in 1999, several instances of non-compliance were noted in the files. The non-compliance was reported to the IRS and subsequently 8823's were issued. Management has corrected the files to the best of their ability, however the files are not complete. The Investment General Partner has requested copies of the first year tenant files to make an assessment of the situation. Based upon a preliminary review, the Investment General Partner has a concern that the Partnership may not meet the minimum set-aside requirements, and may be subject to either partial recapture or disallowance of credits. To date no recapture of credits have been taken. The Operating General Partner and the Investment General Partner are continuing to w ork together along with legal counsel to determine an appropriate course of action. The Investment Limited Partner continues to monitor this situation closely.

Waynesburg Housing Limited Partnership (Waynesburg House Apartments) is a 34 unit elderly development located in Waynesburg, Pennsylvania. The partnership operated slightly below break-even for the first three quarters of 2002 as a result of high operating expenses and low occupancy. The low occupancy is due to the lack of rental assistance for 4 of the units and recently imposed restriction on Section 8 mobile vouchers. As of October 15, 2002 the Section 8 vouched restrictions were relaxed and fourth quarter occupancy has improved to average 90%. When occupancy stabilizes, management expects to be able to reduce the current expense levels. The management company recently won a tax appeal. This will reduce the tax burden of the property to close to $18,000 annually and help with the overall financial viability of the partnership in the future.

Series 18

 As of December 31, 2002 and 2001 the average qualified occupancy for the series was 100%.  The series had a total of 34 properties at December 31, 2002, all of which were at 100% qualified occupancy.

For the nine months being reported Series 18 reflects a net loss from Operating Partnerships of $1,644,849. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $397,031. This is an interim period estimate; it is not necessarily indicative of the final year end results.

Harris Housing Limited Partnership (Harris Music Lofts) located in West Palm Beach, Florida, operated slightly below break-even for the forth quarter of 2002 mainly due to high operating expenses and high debt service payments. The property consists of 38 apartments with commercial space on the ground level. The apartments are predominately occupied by young, single residents. As a result, many of these residents have become first-time buyers which have led to somewhat increased turnover causing higher vacancies and increased turnover costs. The property continues to perform necessary maintenance including carpet replacement and roof repairs in order to preserve the existing asset and maintain the marketability of the rental units. Maintenance costs have risen over the years due to the aging of the property and the increased turnover noted above. The General Partner continues to share payroll costs including a community director, admin and maintenance personal with an affiliated property in the same neighborhood in an attempt to reduce expenses. Average occupancy for the third quarter of 2002 was 95%. The property taxes, insurance and replacement reserve deposits are current at December 31, 2002.




Parvin's Limited Partnership (Parvin's Branch Townhomes) continues to incur operating deficits due to high debt service payments.  The loan has an interest rate of 10.5% and is amortized over fifteen years. The mortgage note has a costly pre-payment penalty clause, so refinancing the debt would not be beneficial to the property. The management agent, an affiliated company, has been deferring fees to improve the property's cash flow.  In addition, the Operating General Partner continues to fund deficits. The average occupancy for 2002 was 94%. The mortgage, taxes, insurance and payables are current.

Glen Place Apartments Limited Partnership (Glen Place Apartments) received 60-Day letters issued by the IRS stating that the Operating Partnership had not met certain IRC Section 42 requirements for the tax years 1996 and 1997. The 60-Day letters were the result of an IRS audit of the Operating Partnership's tenant files. As a result of their audit, the IRS has proposed an adjustment that would disallow 59% of past and future tax credits. The adjustment will also include interest and penalties on the past tax credits being disallowed. The Investment General Partner and its counsel along with the Operating General Partner and its counsel have filed an appeal and continue ongoing discussions with the appellate officer. We believe the audit is nearing completion, and while an actual audit settlement has not been reached, it is our belief that there is a likelihood of a favorable settlement. However, in the absence of a settlement, the auditors continue to include a contingency footnote in the annua l financial statement (Note I) which is a part of the most recently filed 10-K dated, March 31, 2002.

Chelsea Square Development LP (Chelsea Square Apartments) is a six unit property, which incurred negative cash flow during 2001 as a result of low residential rental rates, payment of back taxes and water/sewer and the non payment of commercial rental revenue to the property. To resolve the negative cash flow, residential and rental rates were increased in June 2001. Additionally, the General Partner began allocating the commercial rental income to the property in 2002. The back property taxes and water and sewer are on an approved payment plan with the municipality and will be brought current by the end of 2002. The property will not break even in 2002, however applications of current and past due commercial rental revenue, coupled with the rental rate increase should allow the property to breakeven in 2003. The mortgage and property insurance are current. The General Partner guarantee is unlimited as to amount and time.

Series 19

As of December 31, 2002 and 2001 the average qualified occupancy for the series was 100%.  The series had a total of 26 properties at December 31, 2002, all of which were at 100% qualified occupancy.

For the nine months being reported Series 19 reflects a net loss from Operating Partnerships of $1,178,490.  When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $1,017,740. This is an interim period estimate; it is not necessarily indicative of the final year end results.

Carrollton Villa, L.P. (Carrollton Villa), located in Carrollton, Missouri, operated below breakeven during the fourth quarter of 2002 as a result of low occupancy. Occupancy at the property averaged 62% for the fourth quarter. In order to address the vacancies and to better conform to a changing housing market, the property was reconfigured in late 2000 to include more 3- and 4-bedroom units. Though occupancy has seen improvement, it remains an issue. Management is currently running ads in the local newspaper and has posted flyers throughout the community and in surrounding areas. The property's mortgage, taxes and insurance were all current as of December 31, 2002.

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 2002, filed herein
     
   

99 (b) Certification pursuant to 18 U.S.C. Section 1350, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 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 Fund has duly caused this Report to be signed on its behalf
by the undersigned, thereunto duly authorized.  
 

Boston Capital Tax Credit Fund III L.P.
     
 

By:

Boston Capital Associates III L.P.
   

General Partner
     
 

By:

BCA Associates Limited Partnership,
   

General Partner
     
 

By:

C&M Management Inc.,
   

General Partner

Date:

    
     

February 19, 2003

By:

/s/ John P. Manning 
     
   

John P. Manning