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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
----------------------
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
--------------------------------------
FOR THE FISCAL YEAR ENDED MARCH 31, 2003
COMMISSION FILE NUMBER 33-24537
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
A CALIFORNIA LIMITED PARTNERSHIP
I.R.S. EMPLOYER IDENTIFICATION NO. 95-4178283
1925 CENTURY PARK EAST, SUITE 1900, LOS ANGELES, CA 90067
REGISTRANT'S TELEPHONE NUMBER: (310) 208-1888
Securities Registered Pursuant to Section 12(b) or 12(g) of the Act:
NONE
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed with the Commission by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding twelve months (or 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
----- -----
Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-K is not contained in this form and no disclosure will be
contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference to part III of this Form 10-K
or any amendment to this Form 10-K (X).
Indicate by check mark whether the registrant is an accelerated filer (as
defined in Rule 12b-2 of the Act).
Yes No X
----- -----
No market exists for the limited partnership interests of the registrant, and
therefore, no aggregate market value can be determined.
No documents are incorporated into the text by reference.
Registrant's Prospectus dated January 4, 1989, as amended (the Prospectus) and
the Registrant's Supplement No. 2 dated November 21, 1989 to Prospectus dated
January 4, 1989 (Supplement No. 2) but only to the extent expressly incorporated
by reference in Parts I through IV hereof. Capitalized terms which are not
defined herein have the same meaning as in the Prospectus.
TABLE OF CONTENTS
PART 1
ITEM 1 BUSINESS 3
ITEM 2 PROPERTIES 4
ITEM 3 LEGAL PROCEEDINGS 5
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 5
PART II
ITEM 5 MARKET FOR THE REGISTRANT'S PARTNERSHIP INTERESTS 6
ITEM 6 SELECTED FINANCIAL DATA 6
ITEM 7 MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS 7
ITEM 7A QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK 9
ITEM 8 FINANCIAL STATEMENTS 10
ITEM 9 CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE 10
PART III
ITEM 10 DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT 11
ITEM 11 EXECUTIVE COMPENSATION 12
ITEM 12 PARTNERSHIP INTEREST OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGEMENT 13
ITEM 13 CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS 13
ITEM 14 CONTROLS AND PROCEDURES 13
PART IV
ITEM 15 EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND
REPORTS ON FORM 8-K 14
SIGNATURES 15
PART I
ITEM 1. BUSINESS
Century Pacific Tax Credit Housing Fund-II (CPTCHF-II or the Partnership) was
formed on September 2, 1988 as a limited partnership under the laws of the State
of California to invest in multifamily housing developments (the Properties).
The Partnership's business is to invest primarily in other limited partnerships
(Operating Partnerships) that are organized for the purposes of either
constructing or acquiring and operating existing affordable multifamily rental
apartments (the Properties) that are eligible for the Low Income Housing Tax
Credit, or to a lesser extent, the Rehabilitation Tax Credit, both enacted by
the Tax Reform Act of 1986 (sometimes referred to as Credits or Tax Credits).
The Partnership has invested in two Properties, each of which qualifies for the
Low Income Housing Tax Credit. Both of these Properties receive one or more
forms of assistance from Federal, state or local governments. A summary of the
Partnership's objectives and a summary of the Tax Credits are provided in the
Prospectus under "Investment Objectives and Policies" and "Federal Income Tax
Aspects" on pages 45 and 79, respectively, and are incorporated herein by
reference.
The partnership does not employ any persons. Alternatively, the partnership
reimburses an affiliate for allocated overhead, consisting primarily of payroll
costs.
In order to stimulate private investment in low and moderate income housing of
the types in which CPTCHF-II has invested, the federal government, through the
Department of Housing and Urban Development (HUD), has provided investors with
significant ownership incentives, such as interest subsidies, rent supplements,
mortgage insurance and other measures, with the intent of reducing the risks and
providing the investors/owners with certain tax benefits, limited cash
distributions and the possibility of long-term capital gains. However, there are
significant risks inherent in this type of housing. Long-term investments in
real estate limit the ability of CPTCHF-II to vary its portfolio in response to
changing economic, financial and investment conditions, rising operating costs
and vacancies, rent controls and collection difficulties, costs and availability
of energy, as well as other factors which normally affect real estate values. In
addition, these Properties usually are rent restricted and are subject to
Government Agency programs which may or may not require prior consent to
transfer ownership.
The Partnership acquired the Properties by investing as the limited partner in
Operating Partnerships which own the Properties. As a limited partner,
CPTCHF-II's liability for obligations of the Operating Partnerships is limited
to its investment. The Partnership made capital contributions to the Operating
Partnerships in amounts sufficient to pay the Operating Partnerships' expenses
and to reimburse the General Partners for their costs incurred in forming the
Operating Partnerships, if any, and acquiring the Properties. For each
acquisition, this typically included a cash down payment (in one or more
installments), acceptance of the Property's mortgage indebtedness, and execution
of a Purchase Money Note in favor of the seller of the Property.
3
The Partnership's primary objective is to provide Low-Income Housing Tax Credits
to its limited partners generally over a 10-year period. Each of the
Partnership's Operating Partnerships has been allocated, by the relevant state
tax credit agency, an annual amount of the Low-Income Housing Tax Credits for 10
years from the date the Property was placed in service. The required holding
period of the Properties is 15 years (the Compliance Period). The Properties
must satisfy rent restriction, tenant income limitations and other requirements
(the Low-Income Housing Tax Credit Requirements) in order to maintain
eligibility for recognition of the Low-Income Housing Tax Credits at all times
during the Compliance Period. Once an Operating Partnership has become eligible
for the Low-Income Housing Tax Credits, it may lose such eligibility and suffer
an event of recapture if its Property fails to remain in compliance with the
Low-Income Housing Tax Credit Requirements. To date, neither of the Operating
Partnerships have suffered an event of recapture of Low-Income Housing Tax
Credit.
ITEM 2. PROPERTIES
As of March 31, 2003, CPTCHF-II had acquired equity interests in the Operating
Partnerships set forth in the table below. Each of the Properties acquired by
the Operating Partnerships receives benefits under government assistance
programs provided by HUD. One of the Properties also receives benefits from the
Illinois Housing Development Authority (IHDA). The table below summarizes the
Operating Partnerships acquired and the government assistance programs
benefiting each Property. Further information concerning these Properties may be
found in Supplement No. 2 to the Prospectus, pages 4 through 66, which
information is incorporated herein by reference and is summarized below.
Capital
Contribution Obligation
--------------------------
Date of Percent Paid
Property Name, Average Acquisition Interest in Total at through
Location and Occupancy of Operating March 31, March 31,
Rental Units 2003 Interest Partnership 2003 2003
---------- ----------- ----------- ---------- ----------
Washington Courts
Chicago, IL
103 Residential
Units 94% 5/1/89 90% $2,743,413 $2,743,413
Plumley Village
Boston, MA
430 Residential
Units 99% 8/1/89 60% 1,648,026 1,648,026
---------- ----------
$4,391,439 $4,391,439
========== ==========
December 31, 2002
-----------------------------------------------------------------------
Property Name, Government
Location and Mortgage Residual Purchase Other Assistance
Rental Units Notes Note Note Note Program
----------- ----------- ----------- ----------- ---------------
Washington Courts
Chicago, IL HUD Insured
103 Residential Section
Units $ 4,877,892 $ -- $ -- $ -- 221(d)(4) IHDA
HAP
Plumley Village Contract
Boston, MA HUD
430 Residential Section 236
Units 6,187,198 5,391,987 8,977,739 405,895 Section 8
----------- ----------- ----------- -----------
$11,065,090 $ 5,391,987 $ 8,977,739 $ 405,895
=========== =========== =========== ===========
4
ITEM 3. LEGAL PROCEEDINGS
As of July 31, 2003, there were no pending legal proceedings against CPTCHF-II
or any Operating Partnership in which it has invested.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
As of March 31, 2003, there were no submissions of matters to a vote of security
holders.
5
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S PARTNERSHIP INTERESTS
There is at present no public market for the units of limited partnership
interests (the Units), and it is unlikely that any public market for the Units
will develop. See the Prospectus under "Transferability of Interests" on pages
24 and 52 of the Prospectus, which information is incorporated herein by
reference. The number of owners of Units as of June 3, 2003 was approximately
519, holding 5,754 units.
As of July 31, 2003, there were no cash distributions.
ITEM 6. SELECTED FINANCIAL DATA
The selected financial data set forth below, insofar as they relate to each of
the three years ended March 31, 2003, and as of March 31, 2003 and 2002, are
derived from, and are qualified by reference to, our audited financial
statements included herein and should be read in conjunction with those
financial statements and the notes thereto. The selected financial data as of
March 31, 2001, 2000 and 1999 and for the years ended March 31, 2000 and 1999
are derived from audited financial statements not included herein. Results for
past periods are not necessarily indicative of results that may be expected for
future periods.
Year Ended March 31,
-------------------------------------------------------------------------------------
OPERATIONS 2003 2002 2001 2000 1999
--------- --------- --------- --------- ---------
Revenues $ -- $ -- $ 500 $ 500 $ 1,600
Operating Expenses (207,622) (209,084) (189,874) (192,624) (191,110)
Equity in Net Losses of
Operating Partnerships -- -- (430,306) (251,269) (318,696)
--------- --------- --------- --------- ---------
Net Loss $(207,622) $(209,084) $(619,680) $(443,393) $(508,206)
========= ========= ========= ========= =========
Net Loss per Unit of
Limited Partnership
Interest $ (36) $ (36) $ (108) $ (77) $ (88)
========= ========= ========= ========= =========
March 31,
-------------------------------------------------------------------------------------
FINANCIAL POSITION 2003 2002 2001 2000 1999
--------- --------- --------- --------- ---------
Total Assets $ 871 $ 918 $ 3,433 $ 433,553 $ 684,322
========= ========= ========= ========= =========
6
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
RESULTS OF OPERATIONS
Liquidity and Capital Resources
The Partnership offered limited partnership interests to the public during
calendar year 1989, pursuant to a Registration Statement filed under the
Securities Act of 1933. The Partnership raised $5,754,000 in equity capital and,
thereafter, invested in Operating Partnerships, which own multifamily Properties
located in Illinois and Massachusetts. These properties under Section 42 of the
Internal Revenue Code earn low-income housing tax credits which are passed
through to the individual partners of the Partnership. Low-Income housing tax
credits earned by the Partnership for calendar years 2002, 2001 and 2000 were
$23,744 per year. 2002 was the final year of the Partnership receiving
low-income housing tax credits.
As of March 31, 2003, the Partnership portfolio consists of two Properties
totaling 533 units. For a summary of the combined financial status of the
Operating Partnerships and the Properties, see the financial information
contained under ITEM 15.
The government restricts rental rate increases. A substantial amount of the
revenue generated by these properties comes from rental subsidy payments made by
federal or state housing agencies. These features, which are characteristic of
all low-income housing properties, limit the pool of potential buyers for these
real estate assets. As a limited partner of the Operating Partnerships, the
Partnership does not control property disposition decisions, and management is
not aware of any plans or intentions of the general partners of these
partnerships to sell any of the investment properties in the near future.
The Partnership is currently experiencing a liquidity problem. Under the
Partnership Agreement, the Partnership is entitled to receive distributions of
surplus cash from the Operating Partnerships which is to provide the funds
necessary for the Partnership to meet its administrative expenses and pay the
Partnerships management fee. At the present time, the Operating Partnerships
have not generated sufficient cash distributions to fund the Partnership's
expenses. As a result of the foregoing, the Partnership has been dependent upon
its affiliates and the General Partners for continued financial support to meet
its expenses. Though there can be no assurance, management believes that
affiliates and/or the General Partners, though not required to do so, will
continue to fund operations of the Partnership and defer receipt of payment of
allocated overhead administrative expenses and partnership management fees.
Allocated administrative expenses paid or accrued to affiliates and the General
Partners represent reimbursement of the actual cost of goods and materials used
for or by the Partnership, salaries, related payroll costs and other
administrative items incurred or allocated, and direct expenses incurred in
rendering legal, accounting/bookkeeping, computer, printing and public relations
services. Items excluded from the overhead allocation include overhead expenses
of the General Partners, including rent and salaries of employees not
specifically performing the services described above. Unpaid allocated
administrative expenses and partnership management fees, an annual amount up to
..5% of invested assets, will accrue for payment in future operating years.
7
The Partnership is not expected to have access to any significant sources of
financing. Accordingly, if unforeseen contingencies arise that cause an
Operating Partnership to require additional capital to sustain operations, in
addition to that previously contributed by the Partnership, the source of the
required capital needs may be from (i) limited reserves from the Partnership
(which may include distributions received from Operating Partnerships that would
otherwise be available for distribution to partners), (ii) debt financing at the
Operating partnership level (which may not be available), or (iii) additional
equity contributions from the general partner of the Operating Partnerships
(which may not be available). There can be no assurance that any of these
sources would be readily available to provide for possible additional capital
requirements which may be necessary to sustain the operations of the Operating
Partnerships.
Contractual Obligations
The Operating Partnerships' contractual cash obligations and other commercial
commitments at March 31, 2003 are summarized in the following table:
Less Than
Total 1 Year 1-3 Years 4-5 Years After 5 Years
------------ --------- ---------- ----------- -------------
Mortgage payable $ 11,065,090 $ 466,581 $1,061,584 $ 1,259,204 $ 8,277,721
================ ============ ========= ========== =========== =============
Tax Reform Act of 1986, Ominbus Budget Reconciliation Act of 1987, Technical and
Miscellaneous Revenue Act of 1988, Ominbus Budget Reconciliation Act of 1989 and
Ominbus Budget Reconciliation Act of 1990 and all subsequent tax acts.
The Partnership is organized as a limited partnership and is a "pass through"
tax entity which does not, itself, pay federal income tax. However, the partners
of the Partnership, who are subject to federal income tax, may be affected by
the Tax Reform Act of 1986, the Omnibus Budget Reconciliation Act of 1987, the
Technical and Miscellaneous Revenue Act of 1988, the Ominbus Budget
Reconciliation Act of 1989 and the Ominbus Budget Reconciliation Act of 1990 and
all subsequent tax acts (collectively the Tax Acts). The Partnership will
consider the effect of certain aspects of the Tax Acts on the partners when
making investment decisions. The Partnership does not anticipate that the Tax
Acts will have a material adverse impact on the Partnership's business
operations, capital resources, plans or liquidity.
Results of Operations
The fiscal year of the Partnership ends on March 31 of each year, however, the
fiscal year of each Operating Partnership ends on December 31. Therefore, the
earnings and losses of the Operating Partnerships reflected on the equity method
in the Partnership's financial statements for its current fiscal year are for
the calendar year ended December 31, 2002.
2003 Compared to 2002
For the fiscal year ended March 31, 2003, the Partnership recorded a net loss of
approximately $208,000, as compared to a net loss of approximately $209,000 for
the prior fiscal year. The decrease in net loss is the result of a small
decrease in the Partnership's expenses of approximately $1,000.
8
In accordance with the equity method of accounting for limited partnership
interests, the Partnership does not recognize losses from investment properties
when losses exceed the Partnership's equity method basis in these properties.
One of the two investments has had an equity method basis of zero since March
31, 1993. The recorded share of the Partnership's other investment on an equity
method basis was reduced to zero in 2001.
In the aggregate, combined rental revenue of the Operating Partnerships
increased during the current calendar year. The average occupancy level for
Plumley Village remained constant at 99% in calendar year 2002, but Washington
Court increased to 94% occupancy level in the current year. The combined total
expenses of the two operating properties decreased by approximately $43,000 in
the current year primarily due to decreases in interest, repairs and maintenance
and management fees offset with increases in utilities, other operating expenses
and depreciation.
2002 Compared to 2001
For the fiscal year ended March 31, 2002, the Partnership recorded a net loss of
approximately $209,000, as compared to a net loss of approximately $620,000 for
the prior fiscal year. The decrease in net loss is the result of the decrease in
the Partnership's equity in net losses of the Operating Partnerships of
approximately $430,000, offset by a small increase in the expenses of
approximately $19,000 in 2002.
In accordance with the equity method of accounting for limited partnership
interests, the Partnership does not recognize losses from investment properties
when losses exceed the Partnership's equity method basis in these properties.
One of the two investments has had an equity method basis of zero since March
31, 1993. The recorded share of the Partnership's other investment on an equity
method basis was reduced to zero in 2001.
In the aggregate, combined rental revenue of the Operating Partnerships
increased during 2002. The average occupancy level for Plumley Village remained
constant at 99% in calendar year 2001, but Washington Court increased to 91%
occupancy level in calendar year 2001. The combined total expenses of the two
operating properties increased by approximately $270,000 in 2002 primarily due
to an increase in utilities, other operating expenses, interest, and
depreciation expense.
Inflation
Inflation is not expected to have a material adverse impact on the Partnership's
operations during its period of ownership of the Properties.
Other
The Partnership's operations are not subject to any significant seasonal
fluctuations. The Partnership believes it is in compliance with environmental
regulations and does not anticipate material effects of continued compliance.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not applicable.
9
ITEM 8. FINANCIAL STATEMENTS
The financial statements together with the report of the independent auditors
thereon are set forth on the pages indicated in ITEM 15.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
Not applicable.
10
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The Partnership has no officers or directors. Management of the Partnership is
vested in Irwin Jay Deutch and Century Pacific Capital II Corporation (CPII)
(the General Partners). The General Partners will involve themselves in the
day-to-day affairs of the Partnership as required to protect the Limited
Partners' investment and advance the Partnership's investment objectives. Mr.
Deutch, the Managing General Partner, has the overall responsibility for the
preparation and transmittal of periodic reports to the Limited Partners,
preparation and filing of the Partnership's tax returns with the IRS and the
appropriate state tax authorities, and the preparation and filing of reports to
HUD and other Government Agencies.
Following is biographical information on Mr. Deutch and the Executive Officers
of CPII:
IRWIN JAY DEUTCH
Irwin Jay Deutch, age 62, is Chairman of the Board, President, and Chief
Executive Officer of Century Pacific Realty Corporation (CPRC), a General
Partner of the Operating Partnerships that own the Properties in which CPTCHF-II
has invested, and its Affiliates. Mr. Deutch has been involved with low-income
housing investments since 1968. He is the individual general partner in 62
private limited partnerships and two public limited partnerships investing in
209 properties, including 196 multifamily properties with 33,700 apartment
units, 10 commercial projects, and 3 hotel properties. Fifty-eight of the 62
private limited partnerships have invested in affordable housing. In his
capacity as general partner and officer of CPRC, he oversees the management of
these partnerships and assumes overall responsibility for the development,
direction, and operation of all affiliated CPRC companies. Mr. Deutch is
recognized as an expert in the field of affordable housing and frequently
addresses professional groups on topics of real estate investment, syndication,
tax law, and the Low-Income Housing Tax Credit program.
Mr. Deutch received a B.B.A. with distinction from the University of Michigan
School of Business Administration in 1962 and a Juris Doctor degree with honors
from the University of Michigan Law School in 1965. He is a member of the Order
of the Coif. Mr. Deutch served in the Honors Program in the Office of the Chief
Counsel of the Internal Revenue Service from 1965 to 1967, where he was assigned
to the Interpretative Division in Washington, D.C. He attended Georgetown Law
Center and received his Master of Laws degree in taxation in 1967. Mr. Deutch is
a member of the State Bars of Michigan and California, as well as the American,
Federal, Los Angeles, and Beverly Hills Bar Associations.
11
KEY OFFICERS OF CPII AND AFFILIATES
ESSIE SAFAIE, age 53, is Chief Financial Officer and Chief Operating Officer of
CPRC. Prior to joining CPRC in 1988, from 1985-88, he was Vice President and
Chief Financial Officer of Sunrise Investments, Inc., a real estate syndication
firm with $450 million of real estate under management. During this period, Mr.
Safaie was also President of an affiliated property management firm, S&L
Property Management, Inc., with over 12,000 residential units and 800,000 square
feet of commercial office space under direct management. From 1982 to 1985, Mr.
Safaie was assistant controller of Standard Management Company, builders and
managers of luxury hotels, commercial offices and residential units. From
1980-1982, he served as financial officer of Diamond "M" Drilling Company. Mr.
Safaie received a BA degree in Business Administration from California State
University with a major in accounting.
CHARLES L. SCHWENNESEN, age 57, is Vice President of Acquisition Finance for
CPRC and is responsible for financial analysis and "due diligence" reviews of
all properties acquired by CPRC. Prior to joining CPRC in 1987, he was a
consultant to companies which provided investment opportunities through private
placements. From 1984 to 1985, Mr. Schwennesen was Vice President of Cranston
Securities Company and was responsible for the structuring of more than $30
million of mortgage revenue bond financing for affordable housing projects. From
1977 to 1984, Mr. Schwennesen was a manager with the accounting firm of Price
Waterhouse where he specialized in providing auditing and consulting services to
publicly held California real estate development companies involved in the
affordable housing industry. Mr. Schwennesen is a Certified Public Accountant
and holds a Masters degree in Business Administration from the UCLA Graduate
School of Management and a B.A. degree in Mathematics from UCLA.
ITEM 11. EXECUTIVE COMPENSATION
The Partnership has no officers or directors. However, in connection with the
operations of the partnership and the Operating Partnerships, the General
Partners and their Affiliates will or may receive certain fees, compensation,
income and other payments which are described in the Prospectus under
"Compensation, Fees and Reimbursements" on page 17, the terms of which are
incorporated herein by reference.
During the fiscal years ended March 31, 2003, 2002 and 2001, CPII, a General
Partner of the Partnership, earned $162,091, $159,321, and $150,049,
respectively, of partnership management fees. During the fiscal years ended
March 31, 2003, 2002 and 2001, the Partnership accrued $37,600, $37,600, and
$37,600, respectively, for the reimbursement of overhead allocation from Century
Pacific Equity Corporation (CPEC). During fiscal year 2003, the General Partners
received no payments from the Operating Partnerships.
12
ITEM 12. PARTNERSHIP INTEREST OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT
No partner in CPTCHF-II owns more than 5% of the total number of partnership
interests outstanding. Irwin J. Deutch, the Managing General Partner, holds a
one-half percent General Partnership Interest.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
Irwin J. Deutch is the Managing General Partner of CPTCHF-II, and CPII is also a
General Partner. Irwin J. Deutch is the sole Director and President of CPII, and
the stock of CPII is solely owned by the Deutch Family Trust. Mr. Deutch is also
the President, sole Director and the Deutch Family Trust is the sole stockholder
of Century Pacific Realty Corporation (CPRC), a General Partner of the Operating
Partnerships that own the Properties in which CPTCHF-II has invested. CPII
received a partnership management fee for its services in managing and advising
the Partnership and its business. CPEC, an affiliate, provides all the services
and materials necessary for the operation of the Partnership and is reimbursed
for actual costs. These transactions are more particularly set forth in the
financial statements found under ITEM 15.
As of March 31, 2003, a third-party buyer had entered into a conditional
contract to acquire CP Equity, CP Capital, CP Realty, and their affiliated
companies and partnerships from Deutch's family trust. As of March 31, 2003,
these acquisitions had not yet occurred, but are anticipated to occur in 2003.
ITEM 14. CONTROLS AND PROCEDURES
(a) Evaluation of Disclosure Controls and Procedures
The Partnership's Chief Executive Officer and Chief Financial
Officer have reviewed and evaluated the effectiveness of the
Partnership's disclosure controls and procedures (as defined in
Exchange Act Rules 240.13a-14(c) and 15d-14(c) as of a date within
ninety days before the filing date of this report. Based on that
evaluation, they have concluded that the Partnership's current
disclosure controls and procedures are effective in timely providing
them with material information relating to the Partnership required to
be disclosed in the reports the Partnership files or submits under the
Exchange Act.
(b) Changes in Internal Controls
There have not been any significant changes in the
Partnership's internal controls or in other factors that could
significantly affect these controls subsequent to June 30, 2003, the
date of evaluation. There were no significant deficiencies or material
weaknesses, and, therefore, no corrective actions were taken.
13
PART IV
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
(a) (1) Financial Statements:
Independent Auditors' Report F-1
Balance Sheet as of March 31, 2003 and 2002 F-2
Statement of Partners' Equity (Deficit) for the Years Ended March 31,
2003, 2002 and 2001 F-3
Statement of Operations for the Years Ended March 31,
2003, 2002 and 2001 F-4
Statement of Cash Flows for the Years Ended March 31,
2003, 2002 and 2001 F-5
Notes to Financial Statements F-6
(2) Financial Statement Schedules:
Schedule III - Real Estate and Accumulated Depreciation of
Operating Partnerships in which CPTCHF-II has
Limited Partnership Interests F-14
Notes to Schedule III - Real Estate and Accumulated
Depreciation of Operating Partnerships in which
CPTCHF-II has Limited Partnership Interests F-15
Schedule IV - Mortgage Loans on Real Estate of Operating
Partnerships in which CPTCHF-II has Limited
Partnership Interests F-16
Notes to Schedule IV - Mortgage Loans on Real Estate of
Operating Partnerships in which CPTCHF-II has
Limited Partnership Interests F-17
All other schedules are omitted because they are not applicable,
or the required information is shown in the financial
statements or notes thereto.
(b) Reports on Form 8-K
Not applicable
(c) Exhibits
31.1 Certification Pursuant to 15 U.S.C. Section 7241, as Adopted
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
31.2 Certification Pursuant to 15 U.S.C. Section 7241, as Adopted
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
32.1 Certification Pursuant to 18 U.S.C. Section 1350,
as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002*
32.2 Certification Pursuant to 18 U.S.C. Section 1350,
as Adopted Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002*
* Filed herewith
(d) Financial Statement Schedule
Financial Statements of Washington Courts Limited Partnership
for the Years Ended December 31, 2000 and 1999.
14
INDEPENDENT AUDITORS' REPORT
Partners
Century Pacific Tax Credit Housing Fund - II
We have audited the accompanying balance sheet of Century Pacific Tax Credit
Housing Fund - II as of March 31, 2003 and 2002, and the related statements of
operations, partners' equity (deficit) and cash flows for each of the three
years in the period ended March 31, 2003. These financial statements are the
responsibility of the Partnership's management. Our responsibility is to express
an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Century Pacific Tax Credit
Housing Fund - II as of March 31, 2003 and 2002 and the results of its
operations and its cash flows for each of the three years in the period ended
March 31, 2003, in conformity with accounting principles generally accepted in
the United States of America.
The accompanying financial statements have been prepared assuming that the
Partnership will continue as a going concern. As discussed in Note 6 to the
financial statements, the Partnership has suffered recurring losses from
operations and has a net capital deficiency that raises substantial doubt about
its ability to continue as a going concern. Management's plans regarding these
matters also are described in Note 6. The financial statements do not include
any adjustments that might result from the outcome of this uncertainty.
Our audits were made for the purpose of forming an opinion on the basic
financial statements taken as a whole. The schedules listed under Item 15 are
presented for purposes of complying with the Securities and Exchange
Commission's rules and are not a part of the basic financial statements. These
schedules have been subjected to the auditing procedures applied in our audits
of the basic financial statements and, in our opinion, fairly state in all
material respects the financial data required to be set forth therein in
relation to the basic financial statements taken as a whole.
/s/ RUBIN, BROWN, GORNSTEIN & CO., LLP
St. Louis, Missouri
June 3, 2003
F-1
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
BALANCE SHEET
ASSETS
MARCH 31,
--------------------------------
2003 2002
----------- -----------
Cash $ -- $ 47
Advance to a general partner (Note 3) 871 871
Investments in operating partnerships (Note 4) -- --
----------- -----------
$ 871 $ 918
=========== ===========
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
LIABILITIES
Accounts payable and accrued expenses $ 5,800 $ 4,171
Due to affiliates (Note 3) 2,269,095 2,063,149
Loan payable - affiliate (Note 3) 40,594 40,594
----------- -----------
TOTAL LIABILITIES 2,315,489 2,107,914
----------- -----------
COMMITMENTS AND CONTINGENCIES (NOTE 5) -- --
----------- -----------
PARTNERS' EQUITY (DEFICIT)
General partners (72,200) (70,124)
Limited partners, $1,000 stated value per unit,
25,000 units authorized, 5,754 units issued
and outstanding (2,242,418) (2,036,872)
----------- -----------
TOTAL PARTNERS' EQUITY (DEFICIT) (2,314,618) (2,106,996)
----------- -----------
$ 871 $ 918
=========== ===========
F-2
See the accompanying report letter and notes to financial statements.
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
STATEMENT OF PARTNERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED MARCH 31, 2003, 2002 AND 2001
GENERAL LIMITED
PARTNERS PARTNERS TOTAL
----------- ----------- -----------
PARTNERS' EQUITY (DEFICIT) - MARCH 31, 2000 $ (61,836) $(1,216,396) $(1,278,232)
NET LOSS (6,197) (613,483) (619,680)
----------- ----------- -----------
PARTNERS' EQUITY (DEFICIT) - MARCH 31, 2001 (68,033) (1,829,879) (1,897,912)
NET LOSS (2,091) (206,993) (209,084)
----------- ----------- -----------
PARTNERS' EQUITY (DEFICIT) - MARCH 31, 2002 (70,124) (2,036,872) (2,106,996)
NET LOSS (2,076) (205,546) (207,622)
----------- ----------- -----------
PARTNERS' EQUITY (DEFICIT) - MARCH 31, 2003 $ (72,200) $(2,242,418) $(2,314,618)
=========== =========== ===========
PERCENTAGE INTEREST - MARCH 31, 2003 1% 99% 100%
=========== =========== ===========
F-3
See the accompanying report letter and notes to financial statements.
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
STATEMENT OF OPERATIONS
FOR THE YEARS ENDED MARCH 31,
-----------------------------------------------
2003 2002 2001
--------- --------- ---------
REVENUES
Transfer fees $ -- $ -- $ 500
EXPENSES
Partnership management fee - affiliate (Note 3) 162,091 159,321 150,049
Allocated overhead expenses - affiliate (Note 3) 37,600 37,600 37,600
Other general and administrative expenses 7,931 12,163 2,225
--------- --------- ---------
TOTAL EXPENSES 207,622 209,084 189,874
--------- --------- ---------
LOSS BEFORE EQUITY IN NET LOSSES OF
OPERATING PARTNERSHIPS (207,622) (209,084) (189,374)
EQUITY IN NET LOSSES OF OPERATING
PARTNERSHIPS (NOTE 4) -- -- (430,306)
--------- --------- ---------
NET LOSS $(207,622) $(209,084) $(619,680)
========= ========= =========
ALLOCATION OF NET LOSS
General partners $ (2,076) $ (2,091) $ (6,197)
Limited partners (205,546) (206,993) (613,483)
--------- --------- ---------
$(207,622) $(209,084) $(619,680)
========= ========= =========
NET LOSS PER UNIT OF LIMITED PARTNERSHIP
INTEREST $ (36) $ (36) $ (108)
========= ========= =========
AVERAGE NUMBER OF OUTSTANDING UNITS 5,754 5,754 5,754
========= ========= =========
F-4
See the accompanying report letter and notes to financial statements.
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
STATEMENT OF CASH FLOWS
FOR THE YEARS ENDED MARCH 31,
-----------------------------------------------
2003 2002 2001
--------- --------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $(207,622) $(209,084) $(619,680)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Equity in net losses of operating partnerships -- -- 430,306
Change in assets and liabilities:
Increase (decrease) in accounts payable
and accrued expenses 1,629 (1,629) (880)
Increase in due to affiliates 205,946 208,198 190,440
--------- --------- ---------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (47) (2,515) 186
--------- --------- ---------
NET INCREASE (DECREASE) IN CASH (47) (2,515) 186
CASH - BEGINNING OF YEAR 47 2,562 2,376
--------- --------- ---------
CASH - END OF YEAR $ -- $ 47 $ 2,562
========= ========= =========
F-5
See the accompanying report letter and notes to financial statements.
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
NOTES TO FINANCIAL STATEMENTS
MARCH 31, 2003, 2002 AND 2001
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The Partnership maintains its financial records on the tax basis.
Memorandum entries, while not recorded in the records of the
Partnership, have been made in order to prepare the financial
statements in accordance with accounting principles generally accepted
in the United States of America.
On August 7, 1991, management of the Partnership changed from a
calendar year end to a fiscal year end of March 31 for financial
reporting purposes. Accordingly, the Partnership's quarterly periods
end June 30, September 30 and December 31. The Operating Partnerships,
for financial reporting purposes, have a calendar year. The
Partnership, as well as the Operating Partnerships, have a calendar
year for income tax purposes.
ESTIMATES AND ASSUMPTIONS
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets
and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reported period.
Actual results could differ from those estimates.
INVESTMENTS IN OPERATING PARTNERSHIPS
The Partnership uses the equity method to account for its investments
in the Operating Partnerships (Note 4). Under the equity method of
accounting, the investments are carried at cost and adjusted for the
Partnership's share of the Operating Partnerships' results of
operations and by cash distributions received. Equity in the loss of
each Operating Partnership allocated to the Partnership is not
recognized to the extent that the investment balance would become
negative.
SYNDICATION COSTS
Public offering costs have been recorded as a direct reduction to the
capital accounts of the Limited Partners.
See the accompanying report letter F-6
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
Notes To Financial Statements (Continued)
INCOME TAXES
No provision has been made for income taxes in the accompanying
financial statements since such taxes and/or the recapture of the
Low-Income Housing Tax Credit benefits received, if any, are the
liability of the individual partners. The Partnership uses the accrual
method of accounting for tax purposes.
NET LOSS PER UNIT OF LIMITED PARTNERSHIP INTEREST
Net loss per unit of limited partnership interest is calculated based
upon the weighted average number of units of limited partnership
interest (units) outstanding.
2. OPERATIONS
Century Pacific Tax Credit Housing Fund-II, a California limited
partnership, (the Partnership or CPTCHF-II), was formed on September 2,
1988 for the purpose of raising capital by offering and selling limited
partnership interests and then acquiring limited partnership interests
in partnerships (the Operating Partnerships) owning and operating
existing residential apartment rental properties (the Properties).
The general partners of the Partnership are Century Pacific Capital II
Corporation, a California corporation (CPII), and Irwin Jay Deutch, an
individual (collectively, the general partners). The general partners
and affiliates of the general partners (the general partners and
affiliates) have interests in the Partnership and receive compensation
from the Partnership and the Operating Partnerships (Note 3).
The Properties qualify for the Low-Income Housing Tax Credit
established by Section 42 of the Tax Reform Act of 1986 (the Low-Income
Housing Tax Credit). These properties are leveraged low-income
multifamily residential complexes and receive one or more forms of
assistance from federal, state or local governments, or agencies (the
Government Agencies).
In September 1988, the Partnership began raising capital from sales of
limited partnership interests, at $1,000 per unit, to limited partners.
The Partnership authorized the issuance of a maximum of 25,000
Partnership Units of which 5,754 were subscribed and issued. The
limited partnership interest offering closed as of December 31, 1989.
As of March 31, 2003, the Partnership has acquired limited partnership
interests of 90% in Washington Courts Limited Partnership and 60% in
Laurel-Clayton Limited Partnership, two existing Operating Partnerships
which own apartment rental properties.
See the accompanying report letter. F-7
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
Notes To Financial Statements (Continued)
The Partnership is currently experiencing a liquidity problem as the
Partnership's Operating Partnerships have not achieved operating
results required to provide the Partnership with sufficient cash
distributions to fund the Partnership's administrative costs. As a
result of the foregoing, the Partnership has been dependent upon its
affiliates and the general partners for continued financial support to
meet its expenses. Though there can be no assurance, management
believes that affiliates and/or the general partners, though not
required to do so, will continue to fund operations of the Partnership
and defer receipt of payment on management fees and allocated overhead
expenses. Unpaid management fees and allocated overhead expenses will
accrue for payment in future operating years.
3. TRANSACTIONS WITH THE GENERAL PARTNERS AND AFFILIATES OF THE
GENERAL PARTNERS
Century Pacific Placement Corporation (CPPC), an affiliate of the
general partners, served as the broker-dealer-manager for sales of the
limited partnership interests in the Partnership. Century Pacific
Realty Corporation (CPRC), an affiliate of CPII, is a general partner
in each of the Operating Partnerships.
The general partners have an aggregate one percent interest in the
Partnership. CPRC has a one-half percent interest in each of the
Operating Partnerships.
The general partners and affiliates receive compensation and
reimbursement of expenses from the Partnership, as set forth in the
limited partnership agreement, for their services in managing the
Partnership and its business. Pursuant to the partnership agreement,
the Partnership is required to pay CPII an annual management fee for
its services in connection with the management of the affairs of the
Partnership. The annual management fee is equal to .5% of invested
assets (as defined by the partnership agreement). The general partners
and affiliates also receive compensation and reimbursement of expenses
from the Operating Partnerships. This compensation and reimbursement
includes services provided to the Partnership during its offering
stage, acquisition stage and operational stage.
See the accompanying report letter. F-8
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
Notes To Financial Statements (Continued)
The general partners and affiliates earned the following fees for
services provided to the Partnership and were entitled to reimbursement
for costs incurred by the general partners and affiliates on behalf of
the Partnership and the Operating Partnerships for the years ended
March 31, 2003, 2002 and 2001 as follows:
2003 2002 2001
-------- -------- --------
Fees and reimbursement from the Partnership:
Partnership management fee (CPII) $162,091 $159,321 $150,049
Reimbursement for overhead allocated from
Century Pacific Equity Corporation
(CPEC) 37,600 37,600 37,600
-------- -------- --------
$199,691 $196,921 $187,649
======== ======== ========
At March 31, 2003 and 2002, non-interest bearing amounts due to
affiliates consist of fees and certain general and administrative costs
payable by the Partnership to the general partners and affiliates
totaling $1,695,781 and $1,533,690, respectively.
At March 31, 2003 and 2002, CPII owed the Partnership for an unsecured,
noninterest bearing advance of $871.
At March 31, 2003 and 2002, CPRC was owed $40,594 for a noninterest
bearing, demand, cash advance to the Partnership.
As of March 31, 2003 and 2002, CPII was owed $568,254 and $529,399,
respectively, for a noninterest bearing, demand cash advance made to
the Partnership.
The general partners may advance funds to the Partnership to fund
operating deficits, but are not obligated to do so. Such advances shall
be evidenced by a promissory note of a term no more than 12 months in
length and at a rate of interest no lower than the prime rate. All such
loans shall be repaid prior to any distributions of net cash. At March
31, 2003 and 2002, the Partnership had no outstanding advances due to
the general partners.
4. INVESTMENTS IN OPERATING PARTNERSHIPS
At March 31, 2003 and 2002, the Partnership owned limited partnership
interests in two Operating Partnerships, each of which has invested in
a Property.
See the accompanying report letter. F-9
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
Notes To Financial Statements (Continued)
Investments in Operating Partnerships consist of the following:
2003 2002
----------- -----------
Cash contributions to Operating Partnerships
to fund purchase of properties and
acquisition and organization costs $ 4,536,020 $ 4,536,020
Equity in net losses of Operating Partnerships (4,536,020) (4,536,020)
----------- -----------
$ -- $ --
=========== ===========
The names and locations of the Properties in which the Operating
Partnerships hold beneficial interests are as follows:
NAME OF NAME AND
OPERATING PARTNERSHIP LOCATION OF PROPERTY
--------------------- --------------------
Washington Courts Limited Partnership Washington Courts
Chicago, Illinois
Laurel-Clayton Limited Partnership Plumley Village
Boston, Massachusetts
A summarized combined balance sheet as of December 31, 2002 and 2001
and statements of operations of the aforementioned Operating
Partnerships for the years then ended follows:
COMBINED BALANCE SHEET
ASSETS
2002 2001
----------- -----------
Cash $ 700,907 $ 284,662
Reserve for replacements 940,464 835,714
Land and buildings 17,940,488 18,502,814
Other assets 1,346,977 1,254,709
----------- -----------
$20,928,836 $20,877,899
=========== ===========
See the accompanying report letter. F-10
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
Notes To Financial Statements (Continued)
LIABILITIES AND PARTNERS' EQUITY (DEFICIT)
2002 2001
------------ ------------
Notes payable $ 26,008,201 $ 25,641,152
Other liabilities 1,481,300 1,333,356
------------ ------------
27,489,501 26,974,508
Partners' equity (deficit) (6,560,665) (6,096,609)
------------ ------------
$ 20,928,836 $ 20,877,899
============ ============
COMBINED STATEMENT OF OPERATIONS
2002 2001
----------- -----------
REVENUES
Rental income $ 5,491,368 $ 5,318,227
Other income 368,276 313,273
----------- -----------
TOTAL REVENUES 5,859,644 5,631,500
----------- -----------
EXPENSES
Utilities 981,955 906,917
Repairs and maintenance 1,014,607 1,181,914
Management fees 273,429 309,239
Other operating expenses 2,242,540 1,566,096
Interest 676,922 1,324,658
Depreciation and amortization 1,134,247 1,078,278
----------- -----------
TOTAL EXPENSES 6,323,700 6,367,102
----------- -----------
NET LOSS $ (464,056) $ (735,602)
=========== ===========
ALLOCATION OF LOSS
General partners and other limited partners $ (69,459) $ (129,299)
CPTCHF-II (394,597) (606,303)
----------- -----------
$ (464,056) $ (735,602)
=========== ===========
5. COMMITMENTS AND CONTINGENCIES
The Federal Housing Administration (FHA) and the Department of Housing
and Urban Development (HUD) exercise control over the projects through
provisions of Regulatory Agreements (the Agreements). The Agreements
restrict the Projects, without prior written approval from HUD, from
encumbering, acquiring, altering or disposing of land, buildings and
equipment; using the Properties for any purpose other than the use
originally intended; engaging in any other business or activity; and
paying distributions to partners, compensation to officers or
directors, or for any purpose other than reasonable operating expenses.
The Agreements also stipulate that FHA and HUD shall control the rental
rates, rate of return on investment and method of operation.
See the accompanying report letter. F-11
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
Notes To Financial Statements (Continued)
In addition, the Agreements require the Properties to make cash
deposits on a monthly basis into a reserve fund for replacements. The
respective mortgagees are the designated custodians of the reserve
funds and withdrawals can only be made with HUD approval.
6. GOING CONCERN
The accompanying financial statements have been prepared in conformity
with accounting principles generally accepted in the United States of
America, which contemplate continuation of the Partnership as a going
concern. However, the Partnership's Operating Partnerships have not
achieved the operating results required to provide the Partnership with
sufficient cash distributions to fund the Partnership's administrative
costs. Additionally, the Partnership has incurred allocated losses from
both of its Operating Partnerships to the extent of the Partnership's
cash contributions. As a result of the foregoing, the Partnership is
dependent upon the general partners and affiliates for continued
financial support.
Management maintains that the general partners and affiliates, though
not required to do so, will continue to fund operations by deferring
payment to related parties of allocated overhead expenses, and by
funding any Partnership operating costs. Unpaid allocated overhead
expenses will accrue and become payable when the Operating Partnerships
generate sufficient cash distributions to the Partnership to cover such
expenses. The financial statements do not include any adjustments that
might result from the outcome of this uncertainty.
See the accompanying report letter. F-12
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
Notes To Financial Statements (Continued)
7. FAIR VALUE OF FINANCIAL INSTRUMENTS
The following methods and assumptions were used to estimate the fair
value of each class of financial instruments:
CASH
The carrying amount approximates fair value because of the short
maturity of those instruments.
RELATED PARTY RECEIVABLES
The carrying amount approximates fair value because of the short-term
nature of the receivables.
ADVANCE FROM AFFILIATE
The carrying amount approximates fair value because of the short-term
nature of the advance.
PAYABLE TO RELATED PARTIES
The carrying amount approximates fair value because the terms of the
payable are similar to currently available terms and conditions for
similar instruments.
See the accompanying report letter. F-13
Schedule III
Page 1 Of 1
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
REAL ESTATE AND ACCUMULATED DEPRECIATION OF OPERATING
PARTNERSHIPS IN WHICH CPTCHF-II HAS LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 2002
COST CAPITALIZED
INITIAL COST TO SUBSEQUENT GROSS AMOUNT AT WHICH
OPERATING PARTNERSHIP TO ACQUISITION CARRIED AT CLOSE OF YEAR
------------------------- ------------------- -------------------------------------
BUILDINGS BUILDINGS BUILDINGS
ENCUMBRANCES AND AND AND
DESCRIPTION (2) LAND IMPROVEMENTS LAND IMPROVEMENTS LAND IMPROVEMENTS TOTAL
------------ ----------- ------------ ----- ------------ ----------- ------------ ----------
Washington Courts Apartments
Chicago, Illinois
103 Residential Units $ 4,877,892 $ 75,300 $ 1,720,666 $-- $ 5,479,295 $ 75,300 $ 7,199,961 $ 7,275,261
Plumley Village Apartments
Boston, Massachusetts
430 Residential Units 20,962,819 1,100,000 17,383,785 -- 6,659,159 1,100,000 24,042,944 25,142,944
----------- ----------- ----------- --- ----------- ----------- ----------- -----------
$25,840,711 $ 1,175,300 $19,104,451 $-- $12,138,454 $ 1,175,300 $31,242,905 $32,418,205
=========== =========== =========== === =========== =========== =========== ===========
LIFE UPON
ACCUMULATED WHICH
DEPRECIATION DEPRECIATION
------------ IN LATEST
BUILDINGS INCOME
AND DATE OF DATE STATEMENT
DESCRIPTION IMPROVEMENTS CONSTRUCTION ACQUIRED IS COMPUTED
------------ ------------ ------------ ------------
Washington Courts Apartments
Chicago, Illinois
103 Residential Units $ 3,431,867 1991 1/89 27.5 years
Plumley Village Apartments
Boston, Massachusetts
430 Residential Units 11,045,850 1973 9/89 27.5 years
----------- ------------ ------------ ----------
$14,477,717
=========== ============ ============ ==========
See notes to schedule
F-14
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
NOTES TO SCHEDULE III - REAL ESTATE AND ACCUMULATED
DEPRECIATION OF OPERATING PARTNERSHIPS IN WHICH
CPTCHF-II HAS LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 2002
NOTE 1 - DESCRIPTION OF PROPERTIES
The Properties held by the Operating Partnerships in which CPTCHF-II has
invested are housing projects, primarily for families and elderly or
handicapped individuals of low and moderate income.
NOTE 2 - SCHEDULE OF ENCUMBRANCES
OPERATING PARTNERSHIP MORTGAGE RESIDUAL PURCHASE OTHER
NAME AND PROPERTY NAME NOTES NOTE NOTE NOTES TOTAL
----------- ----------- ----------- ----------- -----------
Washington Courts L/P
Washington Courts $ 4,877,892 $ -- $ -- $ -- $ 4,877,892
Laurel-Clayton L/P
Plumley Village 6,187,198 5,391,987 8,977,739 405,895 20,962,819
----------- ----------- ----------- ----------- -----------
$11,065,090 $ 5,391,987 $ 8,977,739 $ 405,895 $25,840,711
=========== =========== =========== =========== ===========
NOTE 3 - RECONCILIATION OF REAL ESTATE AND ACCUMULATED
DEPRECIATION
ACCUMULATED
COST DEPRECIATION
----------- ------------
Balance at December 31, 1999 $29,248,745 $11,263,403
Additions during year:
Depreciation -- 1,037,709
Improvements 761,062 --
Balance at December 31, 2000 30,009,807 12,301,112
Additions during year:
Depreciation -- 1,060,317
Improvements 1,854,436 --
Balance at December 31, 2001 31,864,243 13,361,429
Additions during year:
Depreciation -- 1,116,288
Improvements 553,962 --
----------- -----------
$32,418,205 $14,477,717
=========== ===========
F-15
Schedule IV
Page 1 of 1
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
MORTGAGE LOANS ON REAL ESTATE OF OPERATING
PARTNERSHIPS IN WHICH CPTCHF-II HAS
LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 2002
MONTHLY
FINAL PAYMENTS TO ORIGINAL CARRYING
INTEREST MATURITY MATURITY (NET OF FACE AMOUNT AMOUNT OF
DESCRIPTION (1) RATE DATE HUD SUBSIDY) OF MORTGAGE MORTGAGE (2)
-------- -------- ---------------- ----------- ------------
First mortgages assumed
by Operating Partnerships:
Washington Courts Limited
Partnership
Washington Courts 9.25% 2031 $ 40,841 $ 5,165,400 $ 4,877,892
Laurel-Clayton Limited
Partnership
Plumley Village 8.5% 2012 24,364 10,635,000 6,187,198
---- ---- ----------- ----------- -----------
Total $ 65,205 $15,800,400 $11,065,090
=========== =========== ===========
F-16
CENTURY PACIFIC TAX CREDIT HOUSING FUND-II
NOTES TO SCHEDULE IV - MORTGAGE LOANS ON REAL
ESTATE OF OPERATING PARTNERSHIPS IN WHICH
CPTCHF-II HAS LIMITED PARTNERSHIP INTERESTS
DECEMBER 31, 2002
NOTE 1 - DESCRIPTION
Each Operating Partnership has invested in a Property.
Laurel-Clayton Limited Partnership assumed a mortgage loan obligation from
the seller of the Property. The mortgage loan obligation is insured by the
United States Department of Housing and Urban Development and is secured by
the land and buildings of the Property.
Washington Courts Limited Partnership has obtained permanent financing in the
principal amount of $5,165,400 which is insured by the Federal Housing
Administration. The loan bears interest at 9.25% per annum. The note will be
amortized over a period of 40 years.
NOTE 2 - RECONCILIATION OF MORTGAGES
MORTGAGE RESIDUAL
LOANS NOTES
----------- -----------
Balance at December 31, 1999 $12,248,063 $ 4,890,890
Additions during year:
Accrued interest -- 224,000
Deductions during year:
Payments 361,192 --
----------- -----------
Balance at December 31, 2000 11,886,871 5,114,890
Additions during year:
Accrued interest -- 128,086
Deductions during year:
Payments 393,368 --
----------- -----------
Balance at December 31, 2001 11,493,503 5,242,976
Additions during year:
Accrued interest -- 149,011
Deductions during year:
Payments 428,413 --
----------- -----------
$11,065,090 $ 5,391,987
=========== ===========
F-17
S2100-020 INDEPENDENT AUDITORS' REPORT
To The Partners
Washington Courts Limited Partnership
We have audited the accompanying balance sheet of Washington Courts Limited
Partnership, Project No. 071-35593, a limited partnership, as of December 31,
2000 and 1999, and the related statements of profit and loss, partners'
equity (deficit) and cash flows for the years then ended. These financial
statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards and Government Auditing Standards, issued by the Comptroller
General of the United States. Those standards require that we plan and
perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Washington Courts Limited
Partnership as of December 31, 2000 and 1999, and the results of its
operations and its cash flows for the years then ended in conformity with
generally accepted accounting principles.
/s/ RUBIN, BROWN, GORNSTEIN & CO., LLP
March 2, 2001
- ------------------------------------------------------------------------------
Page 1
WASHINGTON COURTS LIMITED PARTNERSHIP
071-35593
- --------------------------------------------------------------------------------
BALANCE SHEET
PAGE 1 OF 2
ASSETS
DECEMBER 31,
-------------------------------
2000 1999
-------------------------------
CURRENT ASSETS
1120 Cash - operations $ 175,451 $ 23,640
1190 Miscellaneous current assets 100 100
1200 Miscellaneous prepaid expenses 47,779 33,103
- -------------------------------------------------------------------------------------------
1100T TOTAL CURRENT ASSETS 223,330 56,843
- -------------------------------------------------------------------------------------------
DEPOSITS HELD IN TRUST - FUNDED
1191 Tenant deposits held in trust 15,385 12,934
- -------------------------------------------------------------------------------------------
RESTRICTED DEPOSITS AND FUNDED RESERVES
1310 Escrow deposits 36,289 32,640
1320 Replacement reserve 91,874 69,479
- -------------------------------------------------------------------------------------------
1300T TOTAL DEPOSITS 128,163 102,119
- -------------------------------------------------------------------------------------------
FIXED ASSETS
1410 Land 75,300 75,300
1420 Buildings 7,104,391 7,080,053
1440 Building equipment - portable 29,985 8,061
1465 Office furniture and equipment 65,585 65,585
- -------------------------------------------------------------------------------------------
1400T Total Fixed Assets 7,275,261 7,228,999
1495 Less: Accumulated depreciation 2,895,402 2,626,835
- -------------------------------------------------------------------------------------------
1400N NET FIXED ASSETS 4,379,859 4,602,164
- -------------------------------------------------------------------------------------------
OTHER ASSETS
1520 Intangible assets 520,837 539,822
- -------------------------------------------------------------------------------------------
1000T TOTAL ASSETS $5,267,574 $5,313,882
===========================================================================================
- --------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 2
WASHINGTON COURTS LIMITED PARTNERSHIP
071-35593
- --------------------------------------------------------------------------------
BALANCE SHEET
PAGE 2 OF 2
LIABILITIES
DECEMBER 31,
-------------------------------
2000 1999
-------------------------------
CURRENT LIABILITIES
2110 Accounts payable - operations $ 167,724 $ 65,790
2113 Accounts payable - entity 68,269 68,269
2120 Accrued wages payable -- 4,916
2123 Accrued management fee payable 14,644 14,644
2131 Accrued interest payable - first mortgage 38,146 38,383
2150 Accrued property taxes 33,593 35,755
2170 Mortgage payable - first mortgage (short-term) 34,007 31,013
2190 Miscellaneous current liabilities 429,061 45,750
2210 Prepaid revenue 66,333 --
- -------------------------------------------------------------------------------------------
2122T TOTAL CURRENT LIABILITIES 851,777 304,520
- -------------------------------------------------------------------------------------------
DEPOSIT AND PREPAYMENT LIABILITIES
2191 Tenant deposits held in trust (contra) 13,878 12,817
- -------------------------------------------------------------------------------------------
LONG-TERM LIABILITIES
2320 Mortgage payable - first mortgage 4,914,636 4,948,406
- -------------------------------------------------------------------------------------------
2000T TOTAL LIABILITIES 5,780,291 5,265,743
PARTNERS' EQUITY (DEFICIT)
3130 Partners' equity (deficit) (512,717) 48,139
- -------------------------------------------------------------------------------------------
2033T TOTAL LIABILITIES AND PARTNERS' EQUITY
(DEFICIT) $5,267,574 $5,313,882
===========================================================================================
- --------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 3
WASHINGTON COURTS LIMITED PARTNERSHIP
071-35593
- --------------------------------------------------------------------------------
STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED DECEMBER 31, 2000
- ---------------------------------------------------------------------------------------------------------------------
PART 1 DESCRIPTION OF ACCOUNT ACCT. NO. AMOUNT
- ---------------------------------------------------------------------------------------------------------------------
Rent Revenue - Gross Potential 5120 $331,905
--------------------------------------------------------------------------------------------------
Tenant Assistance Payments 5121 $692,113
--------------------------------------------------------------------------------------------------
Rent Revenue - Stores and Commercial 5140 $
--------------------------------------------------------------------------------------------------
Garage and Parking Spaces 5170 $
--------------------------------------------------------------------------------------------------
Flexible Subsidy Revenue 5180 $
RENT --------------------------------------------------------------------------------------------------
REVENUE Miscellaneous Rent Revenue 5190 $
5100 --------------------------------------------------------------------------------------------------
Excess Rent 5191 $
--------------------------------------------------------------------------------------------------
Rent Revenue/Insurance 5192 $
--------------------------------------------------------------------------------------------------
Special Claims Revenue 5193 $
--------------------------------------------------------------------------------------------------
Retained Excess Income 5194 $
--------------------------------------------------------------------------------------------------
TOTAL RENT REVENUE 5100T $1,024,018
- ---------------------------------------------------------------------------------------------------------------------
Apartments 5220 $151,553
--------------------------------------------------------------------------------------------------
Stores and Commercial 5240 $
--------------------------------------------------------------------------------------------------
Rental Concessions 5250 $
VACANCIES --------------------------------------------------------------------------------------------------
5200 Garage and Parking Space 5270 $
--------------------------------------------------------------------------------------------------
Miscellaneous 5290 $
--------------------------------------------------------------------------------------------------
TOTAL VACANCIES 5200T $ 151,553
--------------------------------------------------------------------------------------------------
NET RENTAL REVENUE Rent Revenue Less Vacancies 5152N $ 872,465
- ---------------------------------------------------------------------------------------------------------------------
5300 Nursing Homes/Assisted Living/Board and Care/
Other Elderly Care/Coop/ and Other Revenues 5300 $
- ---------------------------------------------------------------------------------------------------------------------
Financial Revenue - Project Operations 5410 $ 114
--------------------------------------------------------------------------------------------------
Revenue from Investments - Residual Receipts 5430 $
FINANCIAL --------------------------------------------------------------------------------------------------
REVENUE Revenue from Investments - Replacement Reserve 5440 $ 2,302
5400 --------------------------------------------------------------------------------------------------
Revenue from Investments - Miscellaneous 5490 $
--------------------------------------------------------------------------------------------------
TOTAL FINANCIAL REVENUE 5400T $ 2,416
- ---------------------------------------------------------------------------------------------------------------------
Laundry and Vending Revenue 5910 $
--------------------------------------------------------------------------------------------------
Tenant Charges 5920 $ 1,250
--------------------------------------------------------------------------------------------------
Interest Reduction Payments Revenue 5945 $
OTHER --------------------------------------------------------------------------------------------------
REVENUE Miscellaneous Revenue (Schedule) 5990 $103,735
5900 --------------------------------------------------------------------------------------------------
TOTAL OTHER REVENUE 5900T $ 104,985
--------------------------------------------------------------------------------------------------
TOTAL REVENUE 5000T $ 979,866
- ---------------------------------------------------------------------------------------------------------------------
Conventions and Meetings 6203 $
--------------------------------------------------------------------------------------------------
Management Consultants 6204 $ 17,956
--------------------------------------------------------------------------------------------------
Advertising and Marketing 6210 $
--------------------------------------------------------------------------------------------------
Other Renting Expenses 6250 $ 3,494
--------------------------------------------------------------------------------------------------
Office Salaries 6310 $ 10,186
--------------------------------------------------------------------------------------------------
Office Expenses 6311 $ 22,604
--------------------------------------------------------------------------------------------------
Office or Model Apartment Rent 6312 $
--------------------------------------------------------------------------------------------------
Management Fee 6320 $ 35,466
ADMINISTRATIVE --------------------------------------------------------------------------------------------------
EXPENSES Manager or Superintendent Salaries 6330 $ 17,402
6200/6300 --------------------------------------------------------------------------------------------------
Administrative Rent Free Unit 6331 $
--------------------------------------------------------------------------------------------------
Legal Expense - Project 6340 $ 1,981
--------------------------------------------------------------------------------------------------
Audit Expense 6350 $ 8,700
--------------------------------------------------------------------------------------------------
Bookkeeping Fees/Accounting Services 6351 $ 3,971
--------------------------------------------------------------------------------------------------
Bad Debts 6370 $ 66,664
--------------------------------------------------------------------------------------------------
Miscellaneous Administrative Expenses (Schedule) 6390 $127,143
--------------------------------------------------------------------------------------------------
TOTAL ADMINISTRATIVE EXPENSES 6263T $ 315,567
- ---------------------------------------------------------------------------------------------------------------------
Fuel Oil/Coal 6420 $
--------------------------------------------------------------------------------------------------
Electricity 6450 $ 2,590
UTILITIES --------------------------------------------------------------------------------------------------
EXPENSE Water 6451 $ 14,252
6400 --------------------------------------------------------------------------------------------------
Gas 6452 $ 99,166
--------------------------------------------------------------------------------------------------
Sewer 6453 $ 167
--------------------------------------------------------------------------------------------------
TOTAL UTILITIES EXPENSE 6400T $ 116,175
--------------------------------------------------------------------------------------------------
TOTAL EXPENSES (CARRY FORWARD TO PAGE 2) 6400T $ 431,742
- ---------------------------------------------------------------------------------------------------------------------
Page 1 of 2
- --------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 4
Project Name: Washington Courts Limited Partnership
- ---------------------------------------------------------------------------------------------------------------------
BALANCE CARRIED FORWARD $ 431,742
- ---------------------------------------------------------------------------------------------------------------------
Payroll 6510 $ 35,285
--------------------------------------------------------------------------------------------------
Supplies 6515 $ 85,525
--------------------------------------------------------------------------------------------------
Contracts 6520 $ 71,264
--------------------------------------------------------------------------------------------------
Operating and Maintenance Rent Free Unit 6521 $
--------------------------------------------------------------------------------------------------
Garbage and Trash Removal 6525 $ 9,874
OPERATING --------------------------------------------------------------------------------------------------
MAINTENANCE Security Payroll/Contract 6530 $ 33,278
EXPENSES --------------------------------------------------------------------------------------------------
6500 Security Rent Free Unit 6531 $
--------------------------------------------------------------------------------------------------
Heating/Cooling Repairs and Maintenance 6546 $
--------------------------------------------------------------------------------------------------
Snow Removal 6548 $
--------------------------------------------------------------------------------------------------
Vehicle and Maintenance Equipment Operation and Repairs 6570 $ 2,345
--------------------------------------------------------------------------------------------------
Miscellaneous Operating and Maintenance Expenses 6590 $ 8,668
--------------------------------------------------------------------------------------------------
TOTAL OPERATING AND MAINTENANCE EXPENSES 6500T $ 246,239
- ---------------------------------------------------------------------------------------------------------------------
Real Estate Taxes 6710 $ 35,052
--------------------------------------------------------------------------------------------------
Payroll Taxes (Project's Share) 6711 $ 9,434
--------------------------------------------------------------------------------------------------
Property and Liability Insurance (Hazard) 6720 $ 26,908
TAXES --------------------------------------------------------------------------------------------------
AND Fidelity Bond Insurance 6721 $
INSURANCE --------------------------------------------------------------------------------------------------
6700 Workmen's Compensation 6722 $ 3,694
--------------------------------------------------------------------------------------------------
Health Insurance and Other Employee Benefits 6723 $ 1,655
--------------------------------------------------------------------------------------------------
Miscellaneous Taxes, Licenses, Permits and Insurance 6790 $ 4,837
--------------------------------------------------------------------------------------------------
TOTAL TAXES AND INSURANCE 6700T $ 81,580
- ---------------------------------------------------------------------------------------------------------------------
Interest on Mortgage Payable 6820 $459,914
--------------------------------------------------------------------------------------------------
Interest on Notes Payable (LongTerm) 6830 $
FINANCIAL --------------------------------------------------------------------------------------------------
EXPENSES Interest on Notes Payable (ShortTerm) 6840 $
6800 --------------------------------------------------------------------------------------------------
Mortgage Insurance Premium/Service Charge 6850 $ 26,244
--------------------------------------------------------------------------------------------------
Miscellaneous Financial Expenses 6890 $ 7,453
--------------------------------------------------------------------------------------------------
TOTAL FINANCIAL EXPENSES 6800T $ 493,611
- ---------------------------------------------------------------------------------------------------------------------
6900 Nursing Homes/ Assisted Living/ Board and Care/
Other Elderly Care Expenses 6900 $
- ---------------------------------------------------------------------------------------------------------------------
TOTAL COST OF OPERATIONS BEFORE
DEPRECIATION AND AMORTIZATION 6000T $1,253,172
--------------------------------------------------------------------------------------------------
PROFIT (LOSS) BEFORE DEPRECIATION AND AMORTIZATION 5060T $ (273,306)
--------------------------------------------------------------------------------------------------
Depreciation Expense 6600 $268,566
--------------------------------------------------------------------------------------------------
Amortization Expense 6610 $ 18,984
--------------------------------------------------------------------------------------------------
TOTAL DEPRECIATION AND AMORTIZATION $ 287,550
--------------------------------------------------------------------------------------------------
OPERATING PROFIT OR (LOSS) 5060N $ (560,856)
- ---------------------------------------------------------------------------------------------------------------------
Officer's Salaries 7110 $
--------------------------------------------------------------------------------------------------
Legal Expenses 7120 $
--------------------------------------------------------------------------------------------------
Federal, State, and Other Income Taxes 7130 $
--------------------------------------------------------------------------------------------------
CORPORATE OR Interest Income 7140 $
MORTGAGOR --------------------------------------------------------------------------------------------------
ENTITY Interest on Notes Payable 7141 $
EXPENSES --------------------------------------------------------------------------------------------------
7100 Interest on Mortgage Payable 7142 $
--------------------------------------------------------------------------------------------------
Other Expenses (Asset supervisory fees) 7190 $
--------------------------------------------------------------------------------------------------
NET ENTITY EXPENSES 7100T $ 0
--------------------------------------------------------------------------------------------------
PROFIT OR LOSS (NET INCOME OR LOSS) 3250 $ (560,856)
- ---------------------------------------------------------------------------------------------------------------------
MISCELLANEOUS OR OTHER INCOME AND EXPENSE SUB-ACCOUNT GROUPS. If miscellaneous or other income and/or expense
sub-accounts (5190, 5290, 5490, 5990, 6390, 6590, 6790, 6890 and 7190) exceed the Account Groupings by 10% or
more, attach a separate schedule describing or explaining the miscellaneous income or expense.
- ---------------------------------------------------------------------------------------------------------------------
PART II
- ---------------------------------------------------------------------------------------------------------------------
1. Total mortgage principal payments required during the audit year (12 monthly payments).
This applies to all direct loans and HUD-held and fully insured mortgages.
Any HUD approved second mortgages should be included in the figures.
(Account S1000-010) $ 30,776
- ---------------------------------------------------------------------------------------------------------------------
2. Total of 12 monthly deposits in the audit year into the Replacement Reserve account,
as required by the Regulatory Agreement even if payments may be temporarily
suspended or reduced. (Account S1000-020) $ 20,093
- ---------------------------------------------------------------------------------------------------------------------
3. Replacement Reserve or Residual Receipts releases which are included as expense
items on this Profit and Loss Statement. (Account S1000-030) $ --
- ---------------------------------------------------------------------------------------------------------------------
4. Project Improvement Reserve Releases under the Flexible Subsidy Program that
are included as expense items on this Profit and Loss Statement.
(Account S1000-040) $ --
- ---------------------------------------------------------------------------------------------------------------------
Page 2 of 2
-------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 5
WASHINGTON COURTS LIMITED PARTNERSHIP
071-35593
- --------------------------------------------------------------------------------
STATEMENT OF PROFIT AND LOSS
FOR THE YEAR ENDED DECEMBER 31, 1999
- ---------------------------------------------------------------------------------------------------------------------
PART 1 DESCRIPTION OF ACCOUNT ACCT. NO. AMOUNT
- ---------------------------------------------------------------------------------------------------------------------
Rent Revenue - Gross Potential 5120 $227,522
--------------------------------------------------------------------------------------------------
Tenant Assistance Payments 5121 $792,564
--------------------------------------------------------------------------------------------------
Rent Revenue - Stores and Commercial 5140 $
--------------------------------------------------------------------------------------------------
Garage and Parking Spaces 5170 $
--------------------------------------------------------------------------------------------------
Flexible Subsidy Revenue 5180 $
RENT --------------------------------------------------------------------------------------------------
REVENUE Miscellaneous Rent Revenue 5190 $
5100 --------------------------------------------------------------------------------------------------
Excess Rent 5191 $
--------------------------------------------------------------------------------------------------
Rent Revenue/Insurance 5192 $
--------------------------------------------------------------------------------------------------
Special Claims Revenue 5193 $
--------------------------------------------------------------------------------------------------
Retained Excess Income 5194 $
--------------------------------------------------------------------------------------------------
TOTAL RENT REVENUE 5100T $1,020,086
- ---------------------------------------------------------------------------------------------------------------------
Apartments 5220 $ 52,881
--------------------------------------------------------------------------------------------------
Stores and Commercial 5240 $
--------------------------------------------------------------------------------------------------
Rental Concessions 5250 $
VACANCIES --------------------------------------------------------------------------------------------------
5200 Garage and Parking Space 5270 $
--------------------------------------------------------------------------------------------------
Miscellaneous 5290 $
--------------------------------------------------------------------------------------------------
TOTAL VACANCIES 5200T $ 52,881
--------------------------------------------------------------------------------------------------
NET RENTAL REVENUE Rent Revenue Less Vacancies 5152N $ 967,205
- ---------------------------------------------------------------------------------------------------------------------
5300 Nursing Homes/Assisted Living/Board and Care/
Other Elderly Care/Coop/ and Other Revenues 5300 $
- ---------------------------------------------------------------------------------------------------------------------
Financial Revenue - Project Operations 5410 $ 309
--------------------------------------------------------------------------------------------------
Revenue from Investments - Residual Receipts 5430 $
FINANCIAL --------------------------------------------------------------------------------------------------
REVENUE Revenue from Investments - Replacement Reserve 5440 $ 1,474
5400 --------------------------------------------------------------------------------------------------
Revenue from Investments - Miscellaneous 5490 $
--------------------------------------------------------------------------------------------------
TOTAL FINANCIAL REVENUE 5400T $ 1,783
- ---------------------------------------------------------------------------------------------------------------------
Laundry and Vending Revenue 5910 $ 6,556
--------------------------------------------------------------------------------------------------
Tenant Charges 5920 $
--------------------------------------------------------------------------------------------------
Interest Reduction Payments Revenue 5945 $
OTHER --------------------------------------------------------------------------------------------------
REVENUE Miscellaneous Revenue (Schedule) 5990 $ 36,697
5900 --------------------------------------------------------------------------------------------------
TOTAL OTHER REVENUE 5900T $ 43,253
--------------------------------------------------------------------------------------------------
TOTAL REVENUE 5000T $1,012,241
- ---------------------------------------------------------------------------------------------------------------------
Conventions and Meetings 6203 $
--------------------------------------------------------------------------------------------------
Management Consultants 6204 $ 3,338
--------------------------------------------------------------------------------------------------
Advertising and Marketing 6210 $ 726
--------------------------------------------------------------------------------------------------
Other Renting Expenses 6250 $ 4,871
--------------------------------------------------------------------------------------------------
Office Salaries 6310 $ 23,427
--------------------------------------------------------------------------------------------------
Office Expenses 6311 $ 13,718
--------------------------------------------------------------------------------------------------
Office or Model Apartment Rent 6312 $
--------------------------------------------------------------------------------------------------
Management Fee 6320 $ 46,800
ADMINISTRATIVE --------------------------------------------------------------------------------------------------
EXPENSES Manager or Superintendent Salaries 6330 $ 12,476
6200/6300 --------------------------------------------------------------------------------------------------
Administrative Rent Free Unit 6331 $
--------------------------------------------------------------------------------------------------
Legal Expense - Project 6340 $ 16,840
--------------------------------------------------------------------------------------------------
Audit Expense 6350 $ 7,200
--------------------------------------------------------------------------------------------------
Bookkeeping Fees/Accounting Services 6351 $ 9,117
--------------------------------------------------------------------------------------------------
Bad Debts 6370 $
--------------------------------------------------------------------------------------------------
Miscellaneous Administrative Expenses (Schedule) 6390 $ 21,320
--------------------------------------------------------------------------------------------------
TOTAL ADMINISTRATIVE EXPENSES 6263T $ 159,833
- ---------------------------------------------------------------------------------------------------------------------
Fuel Oil/Coal 6420 $
--------------------------------------------------------------------------------------------------
Electricity 6450 $ 7,200
UTILITIES --------------------------------------------------------------------------------------------------
EXPENSE Water 6451 $ 12,508
6400 --------------------------------------------------------------------------------------------------
Gas 6452 $ 53,307
--------------------------------------------------------------------------------------------------
Sewer 6453 $ 9,462
--------------------------------------------------------------------------------------------------
TOTAL UTILITIES EXPENSE 6400T $ 82,477
--------------------------------------------------------------------------------------------------
TOTAL EXPENSES (CARRY FORWARD TO PAGE 2) $ 242,310
- ---------------------------------------------------------------------------------------------------------------------
Page 1 of 2
- --------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 6
Project Name: Washington Courts Limited Partnership
- ---------------------------------------------------------------------------------------------------------------------
BALANCE CARRIED FORWARD $ 242,310
- ---------------------------------------------------------------------------------------------------------------------
Payroll 6510 $ 61,725
--------------------------------------------------------------------------------------------------
Supplies 6515 $ 58,418
--------------------------------------------------------------------------------------------------
Contracts 6520 $ 51,130
--------------------------------------------------------------------------------------------------
Operating and Maintenance Rent Free Unit 6521 $
--------------------------------------------------------------------------------------------------
Garbage and Trash Removal 6525 $ 22,094
OPERATING --------------------------------------------------------------------------------------------------
MAINTENANCE Security Payroll/Contract 6530 $ 7,543
EXPENSES --------------------------------------------------------------------------------------------------
6500 Security Rent Free Unit 6531 $
--------------------------------------------------------------------------------------------------
Heating/Cooling Repairs and Maintenance 6546 $ 3,585
--------------------------------------------------------------------------------------------------
Snow Removal 6548 $
--------------------------------------------------------------------------------------------------
Vehicle and Maintenance Equipment Operation and Repairs 6570 $ 1,371
--------------------------------------------------------------------------------------------------
Miscellaneous Operating and Maintenance Expenses 6590 $ 9,099
--------------------------------------------------------------------------------------------------
TOTAL OPERATING AND MAINTENANCE EXPENSES 6500T $ 214,965
- ---------------------------------------------------------------------------------------------------------------------
Real Estate Taxes 6710 $ 36,382
--------------------------------------------------------------------------------------------------
Payroll Taxes (Project's Share) 6711 $ 8,118
--------------------------------------------------------------------------------------------------
Property and Liability Insurance (Hazard) 6720 $ 15,152
TAXES --------------------------------------------------------------------------------------------------
AND Fidelity Bond Insurance 6721 $
INSURANCE --------------------------------------------------------------------------------------------------
6700 Workmen's Compensation 6722 $ 2,646
--------------------------------------------------------------------------------------------------
Health Insurance and Other Employee Benefits 6723 $ 12,621
--------------------------------------------------------------------------------------------------
Miscellaneous Taxes, Licenses, Permits and Insurance 6790 $ 2,555
--------------------------------------------------------------------------------------------------
TOTAL TAXES AND INSURANCE 6700T $ 77,474
- ---------------------------------------------------------------------------------------------------------------------
Interest on Mortgage Payable 6820 $461,805
--------------------------------------------------------------------------------------------------
Interest on Notes Payable (LongTerm) 6830 $
FINANCIAL --------------------------------------------------------------------------------------------------
EXPENSES Interest on Notes Payable (ShortTerm) 6840 $
6800 --------------------------------------------------------------------------------------------------
Mortgage Insurance Premium/Service Charge 6850 $ 22,946
--------------------------------------------------------------------------------------------------
Miscellaneous Financial Expenses 6890 $ 2,620
--------------------------------------------------------------------------------------------------
TOTAL FINANCIAL EXPENSES 6800T $ 487,371
- ---------------------------------------------------------------------------------------------------------------------
6900 Nursing Homes/ Assisted Living/ Board and Care/
Other Elderly Care Expenses 6900 $
- ---------------------------------------------------------------------------------------------------------------------
TOTAL COST OF OPERATIONS BEFORE
DEPRECIATION AND AMORTIZATION 6000T $1,022,120
--------------------------------------------------------------------------------------------------
PROFIT (LOSS) BEFORE DEPRECIATION AND AMORTIZATION 5060T $ (9,879)
--------------------------------------------------------------------------------------------------
Depreciation Expense 6600 $267,437
--------------------------------------------------------------------------------------------------
Amortization Expense 6610 $ 18,984
--------------------------------------------------------------------------------------------------
TOTAL DEPRECIATION AND AMORTIZATION $ 286,421
--------------------------------------------------------------------------------------------------
OPERATING PROFIT OR (LOSS) 5060N $ (296,300)
- ---------------------------------------------------------------------------------------------------------------------
Officer's Salaries 7110 $
--------------------------------------------------------------------------------------------------
Legal Expenses 7120 $
--------------------------------------------------------------------------------------------------
Federal, State, and Other Income Taxes 7130 $
--------------------------------------------------------------------------------------------------
CORPORATE OR Interest Income 7140 $
MORTGAGOR --------------------------------------------------------------------------------------------------
ENTITY Interest on Notes Payable 7141 $
EXPENSES --------------------------------------------------------------------------------------------------
7100 Interest on Mortgage Payable 7142 $
--------------------------------------------------------------------------------------------------
Other Expenses (Asset Supervisory Fee) 7190 $ 19,772
--------------------------------------------------------------------------------------------------
NET ENTITY EXPENSES 7100T $ 19,772
--------------------------------------------------------------------------------------------------
PROFIT OR LOSS (NET INCOME OR LOSS) 3250 $ (316,072)
- ---------------------------------------------------------------------------------------------------------------------
MISCELLANEOUS OR OTHER INCOME AND EXPENSE SUB-ACCOUNT GROUPS. If miscellaneous or other income and/or expense
sub-accounts (5190, 5290, 5490, 5990, 6390, 6590, 6790, 6890 and 7190) exceed the Account Groupings by 10% or
more, attach a separate schedule describing or explaining the miscellaneous income or expense.
- ---------------------------------------------------------------------------------------------------------------------
PART II
- ---------------------------------------------------------------------------------------------------------------------
1. Total mortgage principal payments required during the audit year (12 monthly payments).
This applies to all direct loans and HUD-held and fully insured mortgages.
Any HUD approved second mortgages should be included in the figures.
(Account S1000-010) $ 28,068
- ---------------------------------------------------------------------------------------------------------------------
2. Total of 12 monthly deposits in the audit year into the Replacement Reserve
account, as required by the Regulatory Agreement even if payments may be temporarily
suspended or reduced. (Account S1000-020) $ 20,093
- ---------------------------------------------------------------------------------------------------------------------
3. Replacement Reserve or Residual Receipts releases which are included as expense
items on this Profit and Loss Statement. (Account S1000-030) $ 16,612
- ---------------------------------------------------------------------------------------------------------------------
4. Project Improvement Reserve Releases under the Flexible Subsidy Program that
are included as expense items on this Profit and Loss Statement.
(Account S1000-040) $
- ---------------------------------------------------------------------------------------------------------------------
Page 2 of 2
- --------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 7
WASHINGTON COURTS LIMITED PARTNERSHIP
071-35593
- --------------------------------------------------------------------------------
SCHEDULE OF SUB-ACCOUNTS
FOR THE YEARS
ENDED DECEMBER 31,
--------------------------
ACCOUNT 2000 1999
-----------------------------------------
5990 - MISCELLANEOUS REVENUE
5990-010 Insurance proceeds 5990-020 $ -- $25,104
5990-010 Drug Elimination grant 5990-020 103,735 11,593
- -----------------------------------------------------------------------------------------------
TOTAL MISCELLANEOUS REVENUE $103,735 $36,697
===============================================================================================
6390 - MISCELLANEOUS ADMINISTRATIVE EXPENSES
6390-010 Drug Elimination expenses 6390-020 $104,924 $17,336
6390-010 Miscellaneous 6390-020 22,219 3,984
- -----------------------------------------------------------------------------------------------
TOTAL MISCELLANEOUS ADMINISTRATIVE
EXPENSES $127,143 $21,320
===============================================================================================
- --------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 8a
WASHINGTON COURTS LIMITED PARTNERSHIP
071-35593
------------------------------------------------------------------------------
STATEMENT OF PARTNERS' EQUITY
FOR THE YEARS
ENDED DECEMBER 31,
-----------------------------
2000 1999
-----------------------------
S1100-010 BEGINNING OF YEAR $ 48,139 $ 364,211
3250 NET LOSS (560,856) (316,072)
- ------------------------------------------------------------------------------
3130 END OF YEAR $(512,717) $ 48,139
==============================================================================
- --------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 9
WASHINGTON COURTS LIMITED PARTNERSHIP
071-35593
- --------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
PAGE 1 OF 2
FOR THE YEARS
ENDED DECEMBER 31,
------------------------------
ACCOUNT 2000 1999
------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts:
S1200-010 Rental receipts $ 932,027 $ 980,953
S1200-020 Interest receipts 2,416 1,783
S1200-030 Other operating receipts 104,985 43,253
- ---------------------------------------------------------------------------------------------------------------------
S1200-040 Total Receipts 1,039,428 1,025,989
- ---------------------------------------------------------------------------------------------------------------------
Disbursements:
S1200-050 Administrative 256,301 65,643
S1200-070 Management fee 35,466 52,900
S1200-090 Utilities 121,179 84,248
S1200-100 Salaries and wages 67,789 96,069
S1200-110 Operating and maintenance 63,338 109,358
S1200-120 Real estate taxes 37,214 35,955
S1200-140 Property insurance 38,294 15,928
S1200-150 Miscellaneous taxes and insurance 14,391 25,820
S1200-160 Tenant security deposits 1,389 117
S1200-180 Interest on mortgages 460,151 462,021
S1200-210 Mortgage insurance premium (MIP) 26,090 24,891
S1200-220 Miscellaneous financial 7,453 2,620
- ---------------------------------------------------------------------------------------------------------------------
S1200-230 Total Disbursements 1,129,055 975,570
- ---------------------------------------------------------------------------------------------------------------------
S1200-240 NET CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES (89,627) 50,419
- ---------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM INVESTING ACTIVITIES
S1200-245 Net deposits to the mortgage escrow account (3,649) (3,013)
S1200-250 Net deposits to the reserve for replacement
account (22,395) (4,955)
S1200-330 Net purchases of fixed assets (46,262) (13,358)
- ---------------------------------------------------------------------------------------------------------------------
S1200-350 NET CASH USED IN INVESTING ACTIVITIES (72,306) (21,326)
- ---------------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
S1200-360 Mortgage principal payments (30,776) (28,068)
S1200-455 Entity/construction financing activities:
S1200-456 Advance from general partner S1200457 344,520 --
- ---------------------------------------------------------------------------------------------------------------------
S1200-460 NET CASH PROVIDED BY (USED IN) FINANCING
ACTIVITIES 313,744 (28,068)
- ---------------------------------------------------------------------------------------------------------------------
S1200-470 NET INCREASE IN CASH 151,811 1,025
S1200-480 BEGINNING OF PERIOD CASH 23,640 22,615
- ---------------------------------------------------------------------------------------------------------------------
S1200T END OF PERIOD CASH $ 175,451 $ 23,640
=====================================================================================================================
- --------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 10
WASHINGTON COURTS LIMITED PARTNERSHIP
071-35593
- --------------------------------------------------------------------------------
STATEMENT OF CASH FLOWS
PAGE 2 OF 2
FOR THE YEARS
ENDED DECEMBER 31,
----------------------------
2000 1999
----------------------------
RECONCILIATION OF NET LOSS TO NET CASH PROVIDED
BY (USED IN) OPERATING ACTIVITIES
3250 Net loss $(560,856) $(316,072)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
6600 Depreciation 268,566 267,437
6610 Amortization 18,984 18,984
Change in assets and liabilities:
S1200-490 Decrease in tenant accounts receivable -- 2,378
S1200-520 Increase in prepaid expenses (14,676) (2,721)
S1200-530 Increase in cash restricted for tenant
security deposits (2,451) (134)
S1200-540 Increase in accounts payable 101,934 46,286
S1200-560 Increase in accrued liabilities 31,715 35,227
S1200-570 Decrease in accrued interest payable (237) (216)
S1200-580 Increase in tenant security deposits held
in trust 1,061 17
S1200-590 Increase (decrease) in prepaid revenue 66,333 (767)
- ------------------------------------------------------------------------------------------------
S1200-610 NET CASH PROVIDED BY (USED IN) OPERATING
ACTIVITIES $ (89,627) $ 50,419
================================================================================================
- --------------------------------------------------------------------------------
See the accompanying notes to financial statements. Page 11
WASHINGTON COURTS LIMITED PARTNERSHIP
071-35593
------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2000 AND 1999
1. ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (S3100-010)
ORGANIZATION (S3100-010)
Washington Courts Limited Partnership (the Partnership) was organized
as a limited partnership formed April 6, 1988 to acquire an interest
in real property located in Chicago, Illinois and to construct and
operate thereon an apartment complex (the Project) of 103 units under
Section 221(d)(4) of the National Housing Act. Such projects are
regulated by the U.S. Department of Housing and Urban Development (HUD)
and the Illinois Housing Development Authority (IHDA) as to rent charges
and operating methods. The regulatory agreements limit annual
distributions of net operating receipts to surplus cash available at the
end of each year. There was no available surplus cash at December 31,
2000 and 1999.
The following significant accounting policies have been followed in the
preparation of the financial statements:
Management uses estimates and assumptions in preparing financial
statements. Those estimates and assumptions affect the reported
amounts of assets and liabilities, the disclosure of contingent
assets and liabilities, and the reported revenues and expenses.
The Partnership provides an allowance for doubtful accounts equal
to the estimated collection losses that will be incurred in
collection of all receivables. The estimated losses are based
on a review of the current status of the existing receivables.
No allowance for doubtful accounts was provided for at December 31,
2000 or 1999 as none was deemed necessary by management.
Depreciation is provided using primarily the straight-line method
over the estimated useful lives of the assets ranging from seven to
twenty-seven and a half years.
The replacement reserve can only be used for improvements to
buildings upon prior approval of HUD.
- ------------------------------------------------------------------------------
Page 12
WASHINGTON COURTS LIMITED PARTNERSHIP
- ------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
Deferred loan costs consist of fees for obtaining the HUD insured
mortgage loan and are being amortized using the straight-line
method over the life of the mortgage loan.
Low-income housing credit fees are amortized over ten years.
In December 1999, a portion of the general partnership interest was
converted to a special limited partner interest. Due to this, at
December 31, 1999 income or loss of the Partnership will be allocated
1.005% to the general partners and 98.995% to the limited partners.
No income tax provision has been included in the financial statements
since income or loss of the Partnership is required to be reported by
the partners on their respective income tax returns. No adjustment of
financial statement loss to tax loss is required.
2. OTHER ASSETS (S3100-X3X) (S3100-240)
Other assets consist of:
2000 1999
-------------------------
Loan costs, less amortization $520,837 $538,795
Low-income housing credit fees, less amortization -- 1,027
-------------------------------------------------------------------------------
$520,837 $539,822
===============================================================================
3. MORTGAGE PAYABLE (S3100-050)
The 9.25% mortgage note payable is insured by HUD and is payable in
monthly installments of $40,841 (including principal and interest)
through February 2031. The note is secured by a first deed of trust
on real estate.
- ------------------------------------------------------------------------------
Page 13
WASHINGTON COURTS LIMITED PARTNERSHIP
- ------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
The scheduled maturities of the mortgage payable at December 31, 2000
are as follows: (S3100-x1x)
YEAR ACCOUNT AMOUNT
-------------------------------------------------------
2001 S3100-060 $ 34,007
2002 S3100-070 37,289
2003 S3100-080 40,575
2004 S3100-090 44,492
2005 S3100-100 48,787
Thereafter S3100-110 4,743,493
-------------------------------------------------------
$4,948,643
=======================================================
4. MISCELLANEOUS CURRENT LIABILITIES (S3100-X3X) (S3100-240)
Miscellaneous current liabilities consist of:
2000 1999
----------------------------
Advances - General Partner - operations $383,192 $38,674
Advances - General Partner - Drug Elimination
Grant 9,931 7,076
Accrued expenses - Drug Elimination Grant 33,818 --
Accrued payroll taxes 2,120 --
-------------------------------------------------------------------------------------
$429,061 $45,750
=====================================================================================
5. COMMITMENTS (S3100-X3X) (S3100-240)
The Partnership has entered into regulatory agreements with HUD and IHDA
which regulate, among other things, the rents which may be charged for
apartment units in the Project, prohibit the sale of the Project without
HUD and IHDA consent, limit the annual distribution of cash flow to the
partners and otherwise regulate the relationship between the
Partnership, HUD and IHDA.
- ------------------------------------------------------------------------------
Page 14
WASHINGTON COURTS LIMITED PARTNERSHIP
- ------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
Pursuant to an agreement with HUD, under Section 8 of the Housing
Assistance Payment Program, the Partnership is entitled to receive
housing assistance payments on behalf of qualified tenants. The term
of the agreement is for a maximum of 15 years. The Partnership cannot
sell of otherwise substantially liquidate its assets during such period
that the agreement for housing assistance program with HUD is in
existence without their approval.
6. RELATED PARTY TRANSACTIONS (S3100-200)
On December 10, 1999, a transaction occurred which converted Century
Pacific Realty Corporation (CPRC) to a Special Limited Partner and
Shorebank Development assumed CPRC's previous role of Supervising
General Partner. Shorebank Development Corporation also remains the
Managing General Partner.
INCENTIVE MANAGEMENT FEE
Commencing in 1990, the Managing General Partner will receive from
Permissible Sources a non-cumulative incentive management fee equal to
the lesser of (i) 10% of the gross income of the Partnership for such
fiscal year less the management fee paid or payable in respect of such
fiscal year or (ii) seventy percent (70%) of the amount of the
Partnership's Available Cash remaining after payment of the Preferred
Distribution, the Administration Fee, and repayment of any Operating
Deficit Advances made to the Partnership.
For its services in administering the Local Affairs of the Partnership
within the state, including, without limitation, coordinating the
activities of the Partnership relating to HUD, the lender and the
agency, and overseeing local compliance with applicable regulations, the
Partnership shall be required to pay the local general partners from
Permissible Sources an annual Administrative Fee of $19,772 beginning in
1990. A portion of the Administrative Fee equal to one percent (1%) of
the gross income of the Partnership shall be payable each year from the
Partnership's Available Cash (to the extent that such Available Cash
constitutes Permissible Sources remaining after payment of the Preferred
Distribution). The balance of the Administration Fee shall be payable
from available cash (to the extent that such Available Cash constitutes
a Permissible Source) remaining after full payment of the Preferred
Distribution and repayment of any operating deficit advances. Such
payment shall be made dollar-for-dollar with payments of the Preferred
Distribution (plus unpaid amounts thereof accruing from prior taxable
years) until one of such fees is paid in full, with any remainder of
such Available Cash applied to any balance of the other such fee.
The Partnership owes the Managing General Partner $68,269 at
December 31, 2000 and 1999, respectively.
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Page 15
WASHINGTON COURTS LIMITED PARTNERSHIP
- ------------------------------------------------------------------------------
Notes To Financial Statements (Continued)
The Investor Limited Partner will, beginning in 1989, receive from
Permissible Sources an annual cumulative cash distribution (the Annual
Preferred Distribution) of $39,545. Beginning in 1990, a portion of the
Annual Preferred Distribution equal to one percent (1%) of the annual
gross income of the Partnership (the Guaranteed Portion) shall be
distributed to the Investor Limited Partner from Permissible Sources
without regard to Partnership income. An amount of the Annual Preferred
Distribution equal to $19,772 (the Priority Portion), reduced by the
Guaranteed Portion payable for such year, shall be payable from the
Partnership's Available Cash (to the Permissible Source) after payment
of the Primary Portion of the Administration Fee and repayment of any
outstanding Operating Deficit Advances. Such payment shall be made
dollar-for-dollar with repayments of the Administration Fee (other than
the Primary Portion thereof) until one of such items is paid in full,
with any remainder of such Available Cash applied to any balance of the
other such item. Any unpaid amount of the Priority Portion with respect
to any year after 1989 shall accrue, without interest, and be
distributable to the Investor Limited Partner from Available Cash (to
the extent that such Available Cash constitutes a Permissible Source)
after payment of the Primary Portion of the Administration Fee and
repayment of any outstanding Operating Deficit Advances. Such payment
shall be made dollar-for-dollar with payments of the Administration Fee
(other than the Primary Portion thereof) until one of such items is paid
in full, with any remainder of such Available Cash (to the extent that
such Available Cash constitutes a Permissible Source) applied to any
balance of the other such item. Any remaining amounts of the Annual
Preferred Distribution after 1989, including any unpaid amount of the
Priority Portion, shall be distributable to the Investor Limited
Partner, without interest, from cash available for distribution from
Capital Transactions. The remaining unpaid balance at December 31, 2000
and 1999 amounted to $268,329 and $248,557, respectively, and is not
reflected in the accompanying balance sheet.
MANAGEMENT FEE (S3100-230)
The apartment project was managed by Century Pacific Management
Corporation, an affiliate of the general partner until November 1999
and received a fee of 5.55% of rents collected. In November 1999,
HJ Russell & Company began managing the Project. They have received
a management fee of 5.65% of rents collected.
In December 2000, DSSA Management, Inc. took over management of the
Project. They are receiving a fee of 5.65% of gross collections.
At December 31, 2000 and 1999, the outstanding management fee payable
was $14,644.
S3100-210 COMPANY NAME HJ Russell & Company
S3100-220 AMOUNT RECEIVED $35,466
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Page 16
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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.
CENTURY PACIFIC TAX CREDIT HOUSING
FUND II
Date: 8/15/03 /s/ Irwin Jay Deutch
- --------------- ---------------------------------------------------------
By: Irwin Jay Deutch, as Managing General Partner
and
Century Pacific Capital II Corporation, as Corporate
General Partner and as attorney-in-fact for all Investor
Limited Partners
Date: 8/15/03 /s/ Irwin Jay Deutch
- --------------- ---------------------------------------------------------
By: Irwin Jay Deutch, President
15
EXHIBIT INDEX
EXHIBIT
NUMBER DESCRIPTION
- ------ -----------
31.1 Certification Pursuant to 15 U.S.C. Section 7241, as Adopted
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
31.2 Certification Pursuant to 15 U.S.C. Section 7241, as Adopted
Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002*
32.1 Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
32.2 Certification Pursuant to 18 U.S.C. Section 1350, as Adopted
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*
- ----------
* Filed herewith