Attached files
FORM 10-Q
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended December 31, 2009
or
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission file number 0-19443
BOSTON CAPITAL TAX CREDIT FUND II L.P.
(Exact name of registrant as specified in its charter)
|
Delaware |
04-3066791 |
|
(State or other jurisdiction |
(I.R.S. Employer |
|
of incorporation or organization) |
Identification No.) |
One Boston Place, Suite 2100, Boston, Massachusetts 02108
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (617)624-8900
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
|
Yes ý |
No |
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
|
Yes |
No |
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act (check one):
|
Large accelerated filer |
Accelerated filer |
|
Non-accelerated filer |
Smaller reporting company ý |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
|
Yes |
No ý |
BOSTON CAPITAL TAX CREDIT FUND II L.P.
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED December 31, 2009
TABLE OF CONTENTS
FOR THE QUARTER ENDED DECEMBER 31,2009
Balance Sheets 4
Balance Sheets Series 07 5
Balance Sheets Series 09 6
Balance Sheets Series 10 7
Balance Sheets Series 11 8
Balance Sheets Series 12 9
Balance Sheets Series 14 10
Three MONTHS ENDED December 31 11
Statements of Operations Series 07 12
Statements of Operations Series 09 13
Statements of Operations Series 10 14
Statements of Operations Series 11 15
Statements of Operations Series 12 16
Statements of Operations Series 14 17
NINE MONTHS ENDED December 31 18
Statements of Operations Series 07 19
Statements of Operations Series 09 20
Statements of Operations Series 10 21
Statements of Operations Series 11 22
Statements of Operations Series 12 23
Statements of Operations Series 14 24
statementS OF Changes in Partners' Capital (Deficit) 25
Changes in Partners' Capital (DEFICIT) Series 07 26
Changes in Partners' Capital (DEFICIT) Series 09 26
Changes in Partners' Capital (DEFICIT) Series 10 27
Changes in Partners' Capital (DEFICIT) Series 11 27
Changes in Partners' Capital (DEFICIT) Series 12 28
Changes in Partners' Capital (DEFICIT) Series 14 28
Statements of Cash Flows 29
Statements of Cash Flows Series 07 30
Statements of Cash Flows Series 09 31
Statements of Cash Flows Series 10 32
Statements of Cash Flows Series 11 33
Statements of Cash Flows Series 12 34
Statements of Cash Flows Series 14 35
Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS
|
|
December 31, (Unaudited) |
March 31, (Audited) |
||
|
ASSETS |
||||
|
Cash and cash equivalents |
$ 1,367,914 |
$ 1,228,984 |
||
|
Other assets |
79,920 |
- |
||
|
$ 1,447,834 |
$ 1,228,984 |
|||
|
LIABILITIES |
||||
|
Accounts payable |
$ 100,110 |
$ 7,510 |
||
|
Accounts payable affiliates (Note C) |
22,918,347 |
24,162,071 |
||
|
Capital contributions payable (Note D) |
169,974 |
169,997 |
||
|
23,188,431 |
24,339,578 |
|||
|
PARTNERS' CAPITAL (DEFICIT) |
||||
|
Assignees |
||||
|
|
Units of limited partnership |
|
|
|
|
General Partner |
(1,598,343) |
(1,784,144) |
||
|
(21,740,597) |
(23,110,594) |
|||
|
$ 1,447,834 |
$ 1,228,984 |
|||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS
Series 7
|
|
December 31, (Unaudited) |
March 31, (Audited) |
|
|
ASSETS |
|
|
|
|
Cash and cash equivalents |
$ - |
$ 59,368 |
|
|
Other assets |
- |
- |
|
|
$ - |
$ 59,368 |
||
|
LIABILITIES |
|||
|
Accounts payable |
$ - |
$ - |
|
|
Accounts payable affiliates (Note C) |
- |
215,293 |
|
|
Capital contributions payable (Note D) |
- |
- |
|
|
- |
215,293 |
||
|
PARTNERS' CAPITAL (DEFICIT) |
|||
|
Assignees |
|||
|
|
Units of limited partnership |
|
|
|
General Partner |
84,506 |
(89,155) |
|
|
- |
(155,925) |
||
|
$ - |
$ 59,368 |
||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS
Series 9
|
|
December 31, (Unaudited) |
March 31, (Audited) |
||
|
ASSETS |
|
|||
|
Cash and cash equivalents |
$ 126,584 |
$ 212,194 |
||
|
Other assets |
- |
- |
||
|
$ 126,584 |
$ 212,194 |
|||
|
LIABILITIES |
||||
|
|
Accounts payable |
$ - |
$ - |
|
|
Accounts payable affiliates (Note C) |
6,333,150 |
6,245,606 |
||
|
|
Capital contributions payable (Note D) |
- |
- |
|
|
|
|
|||
|
PARTNERS' CAPITAL (DEFICIT) |
||||
|
Assignees |
||||
|
|
Units of limited partnership |
|
|
|
|
General Partner |
(396,904) |
(395,172) |
||
|
(6,206,566) |
(6,033,412) |
|||
|
$ 126,584 |
$ 212,194 |
|||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS
Series 10
|
|
December 31, (Unaudited) |
March 31, (Audited) |
||
|
ASSETS |
|
|||
|
Cash and cash equivalents |
$ 193,630 |
$ 120,636 |
||
|
Other assets |
- |
- |
||
|
$ 193,630 |
$ 120,636 |
|||
|
LIABILITIES |
||||
|
|
Accounts payable |
$ 30,000 |
$ - |
|
|
|
Accounts payable affiliates (Note C) |
2,139,505 |
2,936,241 |
|
|
|
Capital contributions payable (Note D) |
- |
- |
|
|
2,169,505 |
2,936,241 |
|||
|
PARTNERS' CAPITAL (DEFICIT) |
||||
|
Assignees |
||||
|
|
Units of limited partnership |
|
|
|
|
General Partner |
(214,672) |
(223,069) |
||
|
(1,975,875) |
(2,815,605) |
|||
|
$ 193,630 |
$ 120,636 |
|||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS
Series 11
|
|
December 31, (Unaudited) |
March 31, (Audited) |
||
|
ASSETS |
|
|||
|
|
Cash and cash equivalents |
$ 151,402 |
$ 246,366 |
|
|
Other assets |
76,620 |
- |
||
|
$ 228,022 |
$ 246,366 |
|||
|
LIABILITIES |
||||
|
|
Accounts payable |
$ 10 |
$ 10 |
|
|
|
Accounts payable affiliates (Note C) |
2,890,761 |
2,824,763 |
|
|
|
Capital contributions payable (Note D) |
- |
- |
|
|
2,890,771 |
2,824,773 |
|||
|
PARTNERS' CAPITAL (DEFICIT) |
||||
|
Assignees |
||||
|
|
Units of limited partnership |
|
|
|
|
General Partner |
(241,312) |
(240,469) |
||
|
(2,662,749) |
(2,578,407) |
|||
|
$ 228,022 |
$ 246,366 |
|||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS
Series 12
|
|
December 31, (Unaudited) |
March 31, (Audited) |
||
|
ASSETS |
|
|||
|
|
Cash and cash equivalents |
$ 129,766 |
$ 144,823 |
|
|
Other assets |
- |
- |
||
|
$ 129,766 |
$ 144,823 |
|||
|
LIABILITIES |
||||
|
Accounts payable |
$ 7,500 |
$ 7,500 |
||
|
Accounts payable affiliates (Note C) |
3,877,832 |
3,765,206 |
||
|
Capital contributions payable (Note D) |
9,241 |
9,241 |
||
|
3,894,573 |
3,781,947 |
|||
|
PARTNERS' CAPITAL (DEFICIT) |
||||
|
Assignees |
||||
|
|
Units of limited partnership |
|
|
|
|
General Partner |
(288,779) |
(287,502) |
||
|
(3,764,807) |
(3,637,124) |
|||
|
$ 129,766 |
$ 144,823 |
|||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS
Series 14
|
|
December 31, (Unaudited) |
March 31, (Audited) |
||
|
ASSETS |
|
|||
|
|
Cash and cash equivalents |
$ 766,532 |
$ 445,597 |
|
|
Other assets |
3,300 |
- |
||
|
$ 769,832 |
$ 445,597 |
|||
|
LIABILITIES |
||||
|
|
Accounts payable |
$ 62,600 |
$ - |
|
|
|
Accounts payable affiliates (Note C) |
7,677,099 |
8,174,962 |
|
|
Capital contributions payable (Note D) |
160,733 |
160,756 |
||
|
7,900,432 |
8,335,718 |
|||
|
PARTNERS' CAPITAL (DEFICIT) |
||||
|
Assignees |
||||
|
|
Units of limited partnership |
|
|
|
|
General Partner |
(541,182) |
(548,777) |
||
|
(7,130,600) |
(7,890,121) |
|||
|
$ 769,832 |
$ 445,597 |
|||
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
|
|
|
||
|
Income |
|||
|
|
Interest income |
$ 865 |
$ 3,619 |
|
Other income |
6 |
179,651 |
|
|
871 |
183,270 |
||
|
Share of income from Operating |
1,914,084 |
1,592,247 |
|
|
Expenses |
|||
|
|
|||
|
Professional Fees |
20,225 |
21,158 |
|
|
Partnership management fee (Note C) |
226,658 |
189,135 |
|
|
|
Amortization |
- |
8,698 |
|
General and administrative expenses |
38,096 |
47,632 |
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ 1,629,976 |
$ 1,508,894 |
|
|
Net income(loss) allocated to assignees |
$ 1,613,677 |
$ 1,493,806 |
|
|
Net income(loss) allocated general partner |
$ 16,299 |
$ 15,088 |
|
|
Net income(loss) per BAC |
$ .09 |
$ .08 |
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 7
|
|
|
||
|
Income |
|||
|
Interest income |
$ 17 |
$ 291 |
|
|
|
Other income |
- |
178,976 |
|
17 |
179,267 |
||
|
Share of income from Operating |
|
|
|
|
Expenses |
|||
|
|
|||
|
Professional Fees |
912 |
1,280 |
|
|
Partnership management fee (Note C) |
- |
(300) |
|
|
|
Amortization |
- |
- |
|
|
General and administrative expenses |
2,595 |
3,051 |
|
|
|
|
|
|
NET INCOME (LOSS) |
$( 3,490) |
$ 175,236 |
|
|
Net income(loss) allocated to assignees |
$( 3,455) |
$ 173,484 |
|
|
Net income(loss) allocated general partner |
$ (35) |
$ 1,752 |
|
|
Net income(loss) per BAC |
$ (.00) |
$ .17 |
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 9
|
|
|
||
|
Income |
|||
|
|
Interest income |
$ 87 |
$ 707 |
|
|
Other income |
- |
- |
|
87 |
707 |
||
|
Share of income from Operating |
|
68,554 |
|
|
Expenses |
|||
|
|
|||
|
Professional Fees |
3,826 |
4,492 |
|
|
Partnership management fee (Note C) |
55,098 |
(13,971) |
|
|
Amortization |
- |
97 |
|
|
General and administrative expenses |
6,839 |
8,734 |
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ (65,676) |
$ 69,909 |
|
|
Net income(loss) allocated to assignees |
$ (65,019) |
$ 69,210 |
|
|
Net income(loss) allocated general partner |
$ (657) |
$ 699 |
|
|
Net income(loss) per BAC |
$ (.02) |
$ .02 |
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 10
|
|
|
||
|
Income |
|||
|
|
Interest income |
$ 282 |
$ 356 |
|
Other income |
- |
150 |
|
|
282 |
506 |
||
|
Share of income from Operating |
823,846 |
(1,215) |
|
|
Expenses |
|||
|
|
|||
|
Professional Fees |
3,871 |
1,850 |
|
|
Partnership management fee (Note C) |
23,561 |
28,346 |
|
|
Amortization |
- |
515 |
|
|
General and administrative expenses |
5,107 |
6,260 |
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ 791,589 |
$(37,680) |
|
|
Net income(loss) allocated to assignees |
$ 783,673 |
$(37,303) |
|
|
Net income(loss) allocated general partner |
$ 7,916 |
$ (377) |
|
|
Net income(loss) per BAC |
$ .32 |
$ (.02) |
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 11
|
|
|
||
|
Income |
|||
|
|
Interest income |
$ 101 |
$ 345 |
|
|
Other income |
6 |
26 |
|
107 |
371 |
||
|
Share of income from Operating |
|
|
|
|
Expenses |
|||
|
|
|||
|
Professional Fees |
3,453 |
1,868 |
|
|
Partnership management fee (Note C) |
32,461 |
30,964 |
|
|
|
Amortization |
- |
379 |
|
General and administrative expenses |
5,074 |
6,301 |
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ 21,714 |
$ 277,753 |
|
|
Net income(loss) allocated to assignees |
$ 21,497 |
$ 274,975 |
|
|
Net income(loss) allocated general partner |
$ 217 |
$ 2,778 |
|
|
Net income(loss) per BAC |
$ .01 |
$ .11 |
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 12
|
|
|
||
|
Income |
|||
|
|
Interest income |
$ 85 |
$ 350 |
|
|
Other income |
- |
499 |
|
85 |
849 |
||
|
Share of income from Operating |
|
|
|
|
Expenses |
|||
|
|
|||
|
Professional Fees |
3,461 |
6,100 |
|
|
Partnership management fee (Note C) |
37,542 |
27,452 |
|
|
|
Amortization |
- |
2,331 |
|
General and administrative expenses |
6,288 |
7,799 |
|
|
|
|
|
|
|
NET INCOME (LOSS) |
|
|
|
|
Net income(loss) allocated to assignees |
$ (46,734) |
$ 572,362 |
|
|
Net income(loss) allocated general partner |
$ (472) |
$ 5,781 |
|
|
Net income(loss) per BAC |
$ (.02) |
$ .19 |
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 14
|
|
|
||
|
Income |
|||
|
|
Interest income |
$ 293 |
$ 1,570 |
|
|
Other income |
- |
- |
|
|
|
||
|
Share of income from Operating |
|
|
|
|
Expenses |
|||
|
|
|||
|
Professional Fees |
4,702 |
5,568 |
|
|
Partnership management fee (Note C) |
77,996 |
116,644 |
|
|
|
Amortization |
- |
5,376 |
|
|
General and administrative expenses |
12,193 |
15,487 |
|
|
|
|
|
|
NET INCOME (LOSS) |
$ 933,045 |
$ 445,533 |
|
|
Net income(loss) allocated to assignees |
$ 923,715 |
$ 441,078 |
|
|
Net income(loss) allocated general partner |
$ 9,330 |
$ 4,455 |
|
|
Net income(loss) per BAC |
$ .17 |
$ .08 |
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
|
|
|
||
|
Income |
|||
|
|
Interest income |
$ 2,923 |
$ 14,398 |
|
Other income |
136,220 |
252,765 |
|
|
139,143 |
267,163 |
||
|
Share of income from Operating |
|
|
|
|
Expenses |
|||
|
|
|||
|
Professional Fees |
177,237 |
243,906 |
|
|
Partnership management fee (Note C) |
690,743 |
725,636 |
|
|
|
Amortization |
- |
26,093 |
|
General and administrative expenses |
102,736 |
114,456 |
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ 1,196,157 |
$ 1,250,205 |
|
|
Net income(loss) allocated to assignees |
$ 1,184,196 |
$ 1,237,702 |
|
|
Net income(loss) allocated general partner |
$ 11,961 |
$ 12,503 |
|
|
Net income(loss) per BAC |
$ .06 |
$ .07 |
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 7
|
|
|
||
|
Income |
|||
|
Interest income |
$ 110 |
$ 1,611 |
|
|
|
Other income |
- |
180,296 |
|
110 |
181,907 |
||
|
Share of income from Operating |
|
|
|
|
Expenses |
|||
|
|
|||
|
Professional Fees |
9,964 |
15,315 |
|
|
Partnership management fee (Note C) |
- |
4,308 |
|
|
|
Amortization |
- |
- |
|
|
General and administrative expenses |
8,061 |
9,256 |
|
|
|
|
|
|
NET INCOME (LOSS) |
$(17,915) |
$ 210,788 |
|
|
Net income(loss) allocated to assignees |
$(17,736) |
$ 208,680 |
|
|
Net income(loss) allocated general partner |
$ (179) |
$ 2,108 |
|
|
Net income(loss) per BAC |
$ (.02) |
$ .20 |
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 9
|
|
|
||
|
Income |
|||
|
|
Interest income |
$ 415 |
$ 2,050 |
|
|
Other income |
2,418 |
1,367 |
|
2,833 |
3,417 |
||
|
Share of income from Operating |
|
|
|
|
Expenses |
|||
|
|
|||
|
Professional Fees |
29,112 |
39,382 |
|
|
Partnership management fee (Note C) |
150,572 |
90,166 |
|
|
Amortization |
- |
290 |
|
|
General and administrative expenses |
18,053 |
20,575 |
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ (173,154) |
$ 190,058 |
|
|
Net income(loss) allocated to assignees |
$ (171,422) |
$ 188,157 |
|
|
Net income(loss) allocated general partner |
$ (1,732) |
$ 1,901 |
|
|
Net income(loss) per BAC |
$ (.04) |
$ .05 |
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 10
|
|
|
||
|
Income |
|||
|
|
Interest income |
$ 532 |
$ 1,924 |
|
Other income |
77,595 |
52,245 |
|
|
78,127 |
54,169 |
||
|
Share of income from Operating |
|
|
|
|
Expenses |
|||
|
|
|||
|
Professional Fees |
24,049 |
37,018 |
|
|
Partnership management fee (Note C) |
57,182 |
82,875 |
|
|
Amortization |
- |
1,545 |
|
|
General and administrative expenses |
14,205 |
15,873 |
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ 839,730 |
$ (12,247) |
|
|
Net income(loss) allocated to assignees |
$ 831,333 |
$ (12,125) |
|
|
Net income(loss) allocated general partner |
$ 8,397 |
$ (122) |
|
|
Net income(loss) per BAC |
$ .34 |
$ (.00) |
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 11
|
|
|
||
|
Income |
|||
|
|
Interest income |
$ 475 |
$ 1,720 |
|
|
Other income |
10,536 |
211 |
|
11,011 |
1,931 |
||
|
Share of income from Operating |
|
|
|
|
Expenses |
|||
|
|
|||
|
Professional Fees |
26,301 |
34,133 |
|
|
Partnership management fee (Note C) |
117,896 |
123,116 |
|
|
|
Amortization |
- |
1,136 |
|
General and administrative expenses |
13,751 |
15,454 |
|
|
|
|
|
|
|
NET INCOME (LOSS) |
$ (84,342) |
$ 93,774 |
|
|
Net income(loss) allocated to assignees |
$ (83,499) |
$ 92,836 |
|
|
Net income(loss) allocated general partner |
|
$ 938 |
|
|
Net income(loss) per BAC |
$ (.03) |
$ .04 |
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 12
|
|
|
||
|
Income |
|||
|
|
Interest income |
$ 345 |
$ 1,519 |
|
|
Other income |
15,329 |
7,168 |
|
15,674 |
8,687 |
||
|
Share of income from Operating |
|
|
|
|
Expenses |
|||
|
|
|||
|
Professional Fees |
31,696 |
45,142 |
|
|
Partnership management fee (Note C) |
94,623 |
93,472 |
|
|
|
Amortization |
- |
6,993 |
|
General and administrative expenses |
17,038 |
18,799 |
|
|
|
|
|
|
|
NET INCOME (LOSS) |
|
|
|
|
Net income(loss) allocated to assignees |
$(126,406) |
$ 569,386 |
|
|
Net income(loss) allocated general partner |
$ (1,277) |
$ 5,751 |
|
|
Net income(loss) per BAC |
$ (.04) |
$ .19 |
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 14
|
|
|
||
|
Income |
|||
|
|
Interest income |
$ 1,046 |
$ 5,574 |
|
|
Other income |
30,342 |
11,478 |
|
|
|
||
|
Share of income from Operating |
|
|
|
|
Expenses |
|||
|
|
|||
|
Professional Fees |
56,115 |
72,916 |
|
|
Partnership management fee (Note C) |
270,470 |
331,699 |
|
|
|
Amortization |
- |
16,129 |
|
|
General and administrative expenses |
31,628 |
34,499 |
|
|
|
|
|
|
NET INCOME (LOSS) |
$ 759,521 |
$ 192,695 |
|
|
Net income(loss) allocated to assignees |
$ 751,926 |
$ 190,768 |
|
|
Net income(loss) allocated general partner |
$ 7,595 |
$ 1,927 |
|
|
Net income(loss) per BAC |
$ .13 |
$ .03 |
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Nine Months Ended December 31,
(Unaudited)
|
|
|
|
|
|
Partners' capital |
|
|
|
|
Contributions |
- |
173,840 |
173,840 |
|
Net income (loss) |
1,184,196 |
11,961 |
1,196,157 |
|
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Nine Months Ended December 31,
(Unaudited)
|
|
General |
Total |
|
|
Series 7 |
|||
|
Partners' capital |
|
|
|
|
Contributions |
- |
173,840 |
173,840 |
|
Net income (loss) |
(17,736) |
(179) |
(17,915) |
|
Partners' capital |
|
|
|
|
Series 9 |
|||
|
Partners' capital |
|
|
|
|
Contributions |
- |
- |
- |
|
Net income (loss) |
(171,422) |
(1,732) |
(173,154) |
|
Partners' capital |
|
|
|
The accompanying notes are an integral part of these statements.
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Nine Months Ended December 31,
(Unaudited)
|
|
General |
Total |
|
|
Series 10 |
|||
|
Partners' capital |
|
|
|
|
Contributions |
- |
- |
- |
|
Net income (loss) |
831,333 |
8,397 |
839,730 |
|
Partners' capital |
|
|
|
|
Series 11 |
|||
|
Partners' capital |
|
|
|
|
Contributions |
- |
- |
- |
|
Net income (loss) |
(83,499) |
(843) |
(84,342) |
|
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Nine Months Ended December 31,
(Unaudited)
|
|
General |
Total |
|
|
Series 12 |
|||
|
Partners' capital |
|
|
|
|
Contributions |
- |
- |
- |
|
Net income (loss) |
(126,406) |
(1,277) |
(127,683) |
|
Partners' capital |
|
|
|
|
Series 14 |
|||
|
Partners' capital |
|
|
|
|
Contributions |
- |
- |
- |
|
Net income (loss) |
751,926 |
7,595 |
759,521 |
|
Partners' capital |
|
|
|
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
|
2009 |
2008 |
|
|
Cash flows from operating activities: |
||
|
Net Income(Loss) |
$ 1,196,157 |
$ 1,250,205 |
|
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities |
||
|
Distributions from Operating |
- |
|
|
Amortization |
- |
26,093 |
|
Share of (Income) from Operating |
(2,027,730) |
|
|
Changes in assets and liabilities |
||
|
(Decrease) Increase in accounts |
|
|
|
Decrease (Increase) in other assets |
(17,325) |
(1,562) |
|
(Decrease) Increase in accounts |
|
|
|
Net cash (used in) provided by |
|
|
|
Cash flows from investing activities: |
||
|
Capital contributions paid to |
(23) |
- |
|
Proceeds from sale of operating Limited Partnerships |
|
|
|
Net cash (used in) provided by |
|
|
|
INCREASE (DECREASE) IN CASH AND |
138,930 |
|
|
Cash and cash equivalents, beginning |
1,228,984 |
1,085,277 |
|
Cash and cash equivalents, ending |
$ 1,367,914 |
$ 1,677,794 |
|
Supplemental schedule of noncash investing and financing activities: |
||
|
T he Partnership has applied accounts payable as a general partner capital contribution. |
$ 173,840 |
$ - |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 7
|
2009 |
2008 |
|
|
Cash flows from operating activities: |
||
|
Net Income(Loss) |
$ (17,915) |
$ 210,788 |
|
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities |
||
|
Distributions from Operating |
- |
- |
|
Amortization |
- |
- |
|
Share of (Income) from Operating |
|
(57,760) |
|
Changes in assets and liabilities |
||
|
(Decrease) Increase in accounts |
|
|
|
Decrease (Increase) in other assets |
- |
- |
|
(Decrease) Increase in accounts |
|
|
|
Net cash (used in) provided by |
(59,368) |
|
|
Cash flows from investing activities: |
||
|
Capital contributions paid to |
- |
- |
|
Proceeds from sale of operating Limited Partnerships |
- |
|
|
Net cash (used in) provided by |
- |
|
|
INCREASE (DECREASE) IN CASH AND |
(59,368) |
|
|
Cash and cash equivalents, beginning |
59,368 |
157,566 |
|
Cash and cash equivalents, ending |
$ - |
$ 64,408 |
|
Supplemental schedule of noncash investing and financing activities: |
||
|
T he Partnership has applied accounts payable as a general partner capital contribution. |
$ 173,840 |
$ - |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 9
|
2009 |
2008 |
|
|
Cash flows from operating activities: |
||
|
Net Income(Loss) |
$ (173,154) |
$ 190,058 |
|
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities |
||
|
Distributions from Operating |
- |
- |
|
Amortization |
- |
290 |
|
Share of (Income) from Operating |
|
|
|
Changes in assets and liabilities |
||
|
(Decrease) Increase in accounts |
- |
|
|
Decrease (Increase) in other assets |
- |
- |
|
(Decrease) Increase in accounts |
|
|
|
Net cash (used in) provided by |
|
|
|
Cash flows from investing activities: |
||
|
Capital contributions paid to |
- |
- |
|
Proceeds from sale of operating Limited Partnerships |
21,750 |
|
|
Net cash (used in) provided by |
21,750 |
|
|
INCREASE (DECREASE) IN CASH AND |
|
|
|
Cash and cash equivalents, beginning |
212,194 |
149,621 |
|
Cash and cash equivalents, ending |
$ 126,584 |
$ 198,714 |
|
Supplemental schedule of noncash investing and financing activities: |
||
|
T he Partnership has applied accounts payable as a general partner capital contribution. |
$ - |
$ - |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 10
|
2009 |
2008 |
|
|
Cash flows from operating activities: |
||
|
Net Income(Loss) |
$ 839,730 |
$ (12,247) |
|
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities |
||
|
Distributions from Operating |
- |
9,101 |
|
Amortization |
- |
1,545 |
|
Share of (Income) from Operating |
|
|
|
Changes in assets and liabilities |
||
|
(Decrease) Increase in accounts |
30,000 |
|
|
Decrease (Increase) in other assets |
- |
- |
|
(Decrease) Increase in accounts |
|
|
|
|
|
|
|
Net cash (used in) provided by |
|
|
|
Cash flows from investing activities: |
||
|
Capital contributions paid to |
- |
- |
|
Proceeds from sale of operating Limited Partnerships |
857,039 |
|
|
Net cash (used in) provided by |
857,039 |
|
|
INCREASE (DECREASE) IN CASH AND |
72,994 |
|
|
Cash and cash equivalents, beginning |
120,636 |
152,374 |
|
Cash and cash equivalents, ending |
$ 193,630 |
$ 120,858 |
|
Supplemental schedule of noncash investing and financing activities: |
||
|
T he Partnership has applied accounts payable as a general partner capital contribution. |
$ - |
$ - |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 11
|
2009 |
2008 |
|
|
Cash flows from operating activities: |
||
|
Net Income(Loss) |
$ (84,342) |
$ 93,774 |
|
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities |
||
|
Distributions from Operating |
- |
|
|
Amortization |
- |
1,136 |
|
Share of (Income) from Operating |
|
|
|
Changes in assets and liabilities |
||
|
(Decrease) Increase in accounts |
- |
|
|
Decrease (Increase) in other assets |
(14,025) |
(1,562) |
|
(Decrease) Increase in accounts |
|
|
|
Net cash (used in) provided by |
|
|
|
Cash flows from investing activities: |
||
|
Capital contributions paid to |
- |
- |
|
Proceeds from sale of operating Limited Partnerships |
- |
|
|
Net cash (used in) provided by |
- |
|
|
INCREASE (DECREASE) IN CASH AND |
|
|
|
Cash and cash equivalents, beginning |
246,366 |
149,771 |
|
Cash and cash equivalents, ending |
$ 151,402 |
$ 510,638 |
|
Supplemental schedule of noncash investing and financing activities: |
||
|
T he Partnership has applied accounts payable as a general partner capital contribution. |
$ - |
$ - |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 12
|
2009 |
2008 |
|
|
Cash flows from operating activities: |
||
|
Net Income(Loss) |
$ (127,683) |
$ 575,137 |
|
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities |
||
|
Distributions from Operating |
- |
- |
|
Amortization |
- |
6,993 |
|
Share of (Income) from Operating |
- |
|
|
Changes in assets and liabilities |
||
|
(Decrease) Increase in accounts |
- |
|
|
Decrease (Increase) in other assets |
- |
- |
|
(Decrease) Increase in accounts |
|
|
|
Net cash (used in) provided by |
|
|
|
Cash flows from investing activities: |
||
|
Capital contributions paid to |
- |
- |
|
Proceeds from sale of operating Limited Partnerships |
- |
|
|
Net cash (used in) provided by |
- |
|
|
INCREASE (DECREASE) IN CASH AND |
(15,057) |
|
|
Cash and cash equivalents, beginning |
144,823 |
105,077 |
|
Cash and cash equivalents, ending |
$ 129,766 |
$ 302,643 |
|
Supplemental schedule of noncash investing and financing activities: |
||
|
T he Partnership has applied accounts payable as a general partner capital contribution. |
$ - |
$ - |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 14
|
2009 |
2008 |
|
|
Cash flows from operating activities: |
||
|
Net Income(Loss) |
$ 759,521 |
$ 192,695 |
|
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities |
||
|
Distributions from Operating |
- |
21,224 |
|
Amortization |
- |
16,129 |
|
Share of (Income) from Operating |
(1,086,346) |
(630,886) |
|
Changes in assets and liabilities |
||
|
(Decrease) Increase in accounts |
62,600 |
13,786 |
|
Decrease (Increase) in other assets |
(3,300) |
- |
|
(Decrease) Increase in accounts |
|
|
|
Net cash (used in) provided by |
|
|
|
Cash flows from investing activities: |
||
|
Capital contributions paid to |
(23) |
- |
|
Proceeds from sale of operating Limited Partnerships |
|
|
|
Net cash (used in) provided by |
|
|
|
INCREASE (DECREASE) IN CASH AND |
320,935 |
|
|
Cash and cash equivalents, beginning |
445,597 |
370,868 |
|
Cash and cash equivalents, ending |
$ 766,532 |
$ 480,533 |
|
Supplemental schedule of noncash investing and financing activities: |
||
|
T he Partnership has applied accounts payable as a general partner capital contribution. |
$ - |
$ - |
The accompanying notes are an integral part of this statement
Boston Capital Tax Credit Fund II Limited Partnership
December 31, 2009
(Unaudited)
Boston Capital Tax Credit Fund II Limited Partnership (the "Partnership") was
formed under the laws of the State of Delaware as of September 28, 1989, for the purpose of acquiring, holding, and disposing of limited partnership interests in operating partnerships which will acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated low-income apartment complexes ("Operating Partnerships"). Effective as of June 1, 2001 there was a restructuring, and as a result, the Partnership's general partner was reorganized as follows. The general partner of the Partnership continues to be Boston Capital Associates II Limited Partnership, a Delaware limited partnership. The general partner of the general partner is BCA Associates Limited Partnership, a Massachusetts limited partnership, whose sole general partner is C&M Management, Inc., a Massachusetts corporation and whose limited partners are Herbert F. Collins and John P. Manning. Mr. Manning is the principal of Boston Capital Partners, Inc. The limited partner of the general partner is Capital Investment Holdings, a general partnership whose partners are certain officers and employees of Boston Capital Partners, Inc. and its affiliates. The assignor limited partner is BCTC II Assignor Corp., a Delaware corporation which is now wholly-owned by John P. Manning.
Pursuant to the Securities Act of 1933, the Partnership filed a Form S-11
Registration Statement with the Securities and Exchange Commission, effective
October 25, 1989, which covered the offering (the "Public Offering") of the
Partnership's beneficial assignee certificates ("BACs") representing
assignments of units of the beneficial interest of the limited partnership
interest of the assignor limited partner. The Partnership registered
20,000,000 BACs at $10 per BAC for sale to the public in six series. The
Partnership sold 1,036,100 of Series 7 BACs, 4,178,029 of Series 9 BACs,
2,428,925 of Series 10 BACs, 2,489,599 of Series 11 BACs, 2,972,795 of Series
12 BACs, and 5,574,290 of Series 14 BACs. The Partnership issued the
last BACs in Series 14 on January 27, 1992. This concluded the Public
Offering of the Partnership.
NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES
The condensed financial statements included herein as of December 31, 2009 and for the nine months then ended have been prepared by the Partnership, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. No BACs with respect to Series 8 and Series 13 were offered. The Partnership accounts for its investments in Operating Partnerships using the equity method, whereby the Partnership adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued.
Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 2009
(Unaudited)
NOTE - B ACCOUNTING AND FINANCIAL REPORTING POLICIES - CONTINUED
Costs incurred by the Partnership in acquiring the investments in Operating Partnerships were capitalized to the investment account. The Partnership's accounting and financial reporting policies are in conformity with generally accepted accounting principles and include adjustments in interim periods considered necessary for a fair presentation of the results of operations. Such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in the Partnership Annual Report on Form 10-K.
As of April 1, 1995, the Partnership reclassified certain unallocated acquisition costs included in the investments in operating limited partnerships to deferred acquisition costs. As of March 31, 2009 an impairment loss of $469,681 was recorded and the deferred acquisition costs were written-off to zero.
NOTE C - RELATED PARTY TRANSACTIONS
The Partnership has entered into several transactions with various affiliates of the general partner, including Boston Capital Holdings, L.P. and Boston Capital Asset Management Limited Partnership, or BCAMLP, as follows:
Accounts payable - affiliates at December 31, 2009 and 2008 represents
accrued general and administrative expenses, accrued partnership management fees, and advances from an affiliate of the general partner, which are payable to Boston Capital Holdings, L.P. and Boston Capital Asset Management Limited
Partnership.
An annual partnership management fee based on .5 percent of the aggregate
cost of all apartment complexes owned by the Operating Partnerships has been
accrued to Boston Capital Asset Management Limited Partnership. Since reporting fees collected by the series were added to reserves and not paid to Boston Capital Asset Management Limited Partnership, the amounts accrued are not net of reporting fees received.
Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 2009
(Unaudited)
NOTE C - RELATED PARTY TRANSACTIONS (continued)
The partnership management fees accrued for the quarters ended December 31, 2009 and 2008 are as follows:
|
2009 |
2008 |
|
|
$ - |
$ - |
|
|
Series 9 |
55,848 |
64,227 |
|
Series 10 |
25,416 |
29,148 |
|
Series 11 |
48,666 |
52,466 |
|
Series 12 |
37,542 |
41,572 |
|
Series 14 |
112,071 |
130,606 |
|
$ 279,543 |
$ 318,019 |
The partnership management fees paid for the quarters ended December 31, 2009 and 2008 are as follows:
|
2009 |
2008 |
|
|
Series 7 |
$ - |
$ - |
|
Series 9 |
30,000 |
325,000 |
|
Series 10 |
880,000 |
50,000 |
|
Series 11 |
30,000 |
50,000 |
|
Series 12 |
- |
500,000 |
|
Series 14 |
800,000 |
575,000 |
|
$ 1,740,000 |
$ 1,500,000 |
The partnership management fees paid for the nine months ended December 31, 2009 and 2008 are as follows:
|
2009 |
2008 |
|
|
Series 7 |
$ - |
$ 22,687 |
|
Series 9 |
80,000 |
350,000 |
|
Series 10 |
880,000 |
125,000 |
|
Series 11 |
80,000 |
75,000 |
|
Series 12 |
- |
550,000 |
|
Series 14 |
850,000 |
625,000 |
|
$ 1,890,000 |
$ 1,747,687 |
Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 2009
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS
At December 31, 2009 and 2008 the Partnership had limited partnership interests in 140 and 159 Operating Partnerships, respectively, which own apartment complexes. The number of Operating Partnerships in which the Partnership had limited partnership interests at December 31, 2009 and 2008 by series is as follows:
|
2009 |
2008 |
|
|
- |
- |
|
|
Series 9 |
24 |
28 |
|
Series 10 |
16 |
18 |
|
Series 11 |
19 |
21 |
|
Series 12 |
26 |
27 |
|
Series 14 |
55 |
65 |
|
140 |
159 |
|
Under the terms of the Partnership's investment in each Operating Partnership, the Partnership is required to make capital contributions to the Operating Partnerships. These contributions are payable in installments over several years upon each Operating Partnership achieving specified levels of construction and/or operations.
The contributions payable at December 31, 2009 and 2008 by series are as
follows:
|
2009 |
2008 |
|
|
Series 12 |
$ 9,241 |
$ 9,241 |
|
Series 14 |
160,733 |
192,412 |
|
$169,974 |
$201,653 |
|
Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 2009
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS - Continued
During the nine months ended December 31, 2009 the Partnership disposed of thirteen of the Operating Partnerships. A summary of the dispositions by Series for December 31, 2009 is as follows:
|
Operating Partnership Interest Transferred |
Sale of Underlying Operating Partnership |
Partnership Proceeds from Disposition* |
Gain/(Loss) on Disposition |
||||||
|
Series 7 |
- |
- |
$ |
- |
$ |
- |
|||
|
Series 9 |
2 |
- |
21,750 |
21,750 |
|||||
|
Series 10 |
2 |
- |
857,039 |
857,039 |
|||||
|
Series 11 |
1 |
- |
- |
62,595 |
|||||
|
Series 12 |
- |
- |
- |
- |
|||||
|
Series 14 |
8 |
- |
1,086,346 |
1,086,346 |
|||||
|
Total |
13 |
- |
$ |
1,965,135 |
$ |
2,027,730 |
|||
* Partnership proceeds from disposition do not include the following amounts recorded as receivable at December 31, 2009, $62,595 for Series 11.
During the nine months ended December 31, 2008 the Partnership disposed of thirty-one of the Operating Partnerships. A summary of the dispositions by Series for December 31, 2008 is as follows:
|
Operating Partnership Interest Transferred |
Sale of Underlying Operating Partnership |
Partnership Proceeds from Disposition |
Gain/(Loss) on Disposition |
||||||
|
Series 7 |
3 |
- |
$ |
57,760 |
$ |
57,760 |
|||
|
Series 9 |
4 |
- |
337,054 |
337,054 |
|||||
|
Series 10 |
4 |
- |
73,720 |
73,720 |
|||||
|
Series 11 |
4 |
- |
403,389 |
403,389 |
|||||
|
Series 12 |
6 |
- |
730,856 |
730,856 |
|||||
|
Series 14 |
10 |
- |
716,774 |
716,774 |
|||||
|
Total |
31 |
- |
$ |
2,319,553 |
$ |
2,319,553 |
|||
The gain (loss) described above is for financial statement purposes only. There are significant differences between the equity method of accounting and the tax reporting of income and losses from operating partnership investments. The largest difference is the ability, for tax purposes, to deduct losses in excess of the Partnership's investment in the Operating Partnership. As such, the amount of gain recognized for tax purposes may be significantly higher than the gain recorded in the financial statements.
The Partnership's fiscal year ends March 31 of each year, while all the Operating Partnerships' fiscal years are the calendar year. Pursuant to the provisions of each Operating Partnership Agreement, financial results for each of the Operating Partnerships are provided to the Partnership within 45 days after the close of each Operating Partnership's quarterly period. Accordingly, the current financial results available for the Operating Partnerships are for the nine months ended September 30, 2009.
Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
|
2009 |
2008 |
||
|
Revenues |
|||
|
Rental |
$ 21,538,079 |
$ 24,745,120 |
|
|
Interest and other |
552,443 |
748,596 |
|
|
22,090,522 |
25,493,716 |
||
|
Expenses |
|||
|
Interest |
3,664,862 |
4,640,599 |
|
|
Depreciation and amortization |
5,549,267 |
6,466,001 |
|
|
Operating expenses |
15,561,683 |
17,724,218 |
|
|
24,775,812 |
28,830,818 |
||
|
NET LOSS |
$(2,685,290) |
$(3,337,102) |
|
|
Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership* |
|
|
|
|
Net loss allocated to other partners |
$ (26,853) |
$ (33,371) |
|
*Amounts include $2,658,437 and $3,077,311 for 2009 and 2008, respectively, of loss not recognized under the equity method of accounting.
The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 7
|
2009 |
2008 |
||
|
Revenues |
|||
|
Rental |
$ - |
$ - |
|
|
Interest and other |
- |
- |
|
|
- |
- |
||
|
Expenses |
|||
|
Interest |
- |
- |
|
|
Depreciation and amortization |
- |
- |
|
|
Operating expenses |
- |
- |
|
|
- |
- |
||
|
NET LOSS |
$ - |
$ - |
|
|
Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership* |
|
|
|
|
Net loss allocated to other partners |
$ - |
$ - |
|
*Amounts include $0, for both 2009 and 2008, of loss not recognized under the equity method of accounting.
The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 9
|
2009 |
2008 |
||
|
Revenues |
|||
|
Rental |
$ 3,851,474 |
$ 4,893,180 |
|
|
Interest and other |
99,136 |
26,759 |
|
|
3,950,610 |
4,919,939 |
||
|
Expenses |
|||
|
Interest |
692,304 |
856,137 |
|
|
Depreciation and amortization |
967,450 |
1,350,095 |
|
|
Operating expenses |
2,839,002 |
3,366,495 |
|
|
4,498,756 |
5,572,727 |
||
|
NET LOSS |
$ (548,146) |
$ (652,788) |
|
|
Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership* |
|
|
|
|
Net loss allocated to other partners |
$ (5,481) |
$ (6,528) |
|
*Amounts include $542,665 and $646,260 for 2009 and 2008, respectively, of loss not recognized under the equity method of accounting.
The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
|
2009 |
2008 |
||
|
Revenues |
|||
|
Rental |
$ 2,026,988 |
$ 2,256,069 |
|
|
Interest and other |
43,447 |
84,050 |
|
|
2,070,435 |
2,340,119 |
||
|
Expenses |
|||
|
Interest |
329,550 |
383,494 |
|
|
Depreciation and amortization |
539,320 |
613,856 |
|
|
Operating expenses |
1,575,389 |
1,617,919 |
|
|
2,444,259 |
2,615,269 |
||
|
NET LOSS |
$ (373,824) |
$ (275,150) |
|
|
Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership* |
|
|
|
|
Net loss allocated to other partners |
$ (3,738) |
$ (2,752) |
|
*Amounts include $370,086 and $269,573 for 2009 and 2008, respectively, of loss not recognized under the equity method of accounting.
The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
|
2009 |
2008 |
||
|
Revenues |
|||
|
Rental |
$ 3,755,902 |
$ 4,094,734 |
|
|
Interest and other |
133,462 |
185,441 |
|
|
3,889,364 |
4,280,175 |
||
|
Expenses |
|||
|
Interest |
606,922 |
693,272 |
|
|
Depreciation and amortization |
1,090,614 |
1,008,723 |
|
|
Operating expenses |
2,389,606 |
2,862,906 |
|
|
4,087,142 |
4,564,901 |
||
|
NET LOSS |
$ (197,778) |
$ (284,726) |
|
|
Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership* |
|
|
|
|
Net loss allocated to other partners |
$ (1,978) |
$ (2,847) |
|
*Amounts include $195,800 and $144,172 for 2009 and 2008, respectively, of loss not recognized under the equity method of accounting.
The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
|
2009 |
2008 |
||
|
Revenues |
|||
|
Rental |
$ 2,879,981 |
$ 2,991,110 |
|
|
Interest and other |
55,141 |
150,550 |
|
|
2,935,122 |
3,141,660 |
||
|
Expenses |
|||
|
Interest |
446,924 |
675,062 |
|
|
Depreciation and amortization |
681,758 |
601,180 |
|
|
Operating expenses |
2,059,904 |
2,403,239 |
|
|
3,188,586 |
3,679,481 |
||
|
NET LOSS |
$ (253,464) |
$ (537,821) |
|
|
|
Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership* |
|
|
|
Net loss allocated to other partners |
$ (2,535) |
$ (5,378) |
|
*Amounts include $250,929 and $532,443 for 2009 and 2008, respectively, of loss not recognized under the equity method of accounting.
The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO FINANCIAL STATEMENTS
December 31, 2009
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
|
2009 |
2008 |
||
|
Revenues |
|||
|
Rental |
$ 9,023,734 |
$ 10,510,027 |
|
|
Interest and other |
221,257 |
301,796 |
|
|
9,244,991 |
10,811,823 |
||
|
Expenses |
|||
|
Interest |
1,589,162 |
2,032,634 |
|
|
Depreciation and amortization |
2,270,125 |
2,892,147 |
|
|
Operating expenses |
6,697,782 |
7,473,659 |
|
|
10,557,069 |
12,398,440 |
||
|
NET LOSS |
$(1,312,078) |
$(1,586,617) |
|
|
Net loss allocated to Boston Capital Tax Credit Fund II Limited Partnership* |
|
|
|
|
Net loss allocated to other partners |
$ (13,121) |
$ (15,866) |
|
*Amounts include $1,298,957 and $1,484,863 for 2009 and 2008, respectively, of loss not recognized under the equity method of accounting.
The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnership's results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.
Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 2009
(Unaudited)
The taxable loss for the calendar year ended December 31, 2009 is expected to differ from its loss for financial reporting purposes. This is primarily due to accounting differences in depreciation incurred by the Operating Partnerships and also differences between the equity method of accounting and the IRS accounting methods. No provision or benefit for income taxes has been included in these financial statements since taxable income or loss passes through to, and is reportable by, the partners and assignees individually.
NOTE F - SUBSEQUENT EVENT
Events that occur after the balance sheet date but before the financial statements were issued must be evaluated for recognition or disclosure. The effects of subsequent events that provide evidence about conditions that existed at the balance sheet date are recognized in the accompanying financial statements. Subsequent events, which provide evidence about conditions that existed after the balance sheet date, require disclosure in the accompanying notes. Management evaluated the activity of the Partnership through the date the financial statements were issued, which was February 16, 2010, the date of the Partnership's Quarterly Report on Form 10-Q for the period ended December 31, 2009. Management concluded that subsequent events have occurred that require disclosure in the notes to the financial statements.
The Partnership has entered into agreements to sell interests in six Operating Partnerships which are expected to close after December 31, 2009. The estimated sales price and other terms for the dispositions of the Operating Partnerships have been determined. The estimated proceeds to be received for the Operating Partnerships are $1,641,176. The estimated gain on sale of the Operating Partnerships is $1,405,684, which is expected to be recognized in the fourth quarter of fiscal year 2010 or the first or third quarter of fiscal year 2011.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
This Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements including our intentions, hopes, beliefs, expectations, strategies and predictions of our future activities, or other future events or conditions. These statements are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created by these acts. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including, for example, the factors identified in Part I, Item 1A. "Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended March 31, 2009. Although we believe that the assumptions underlying these forward-looking statements are reasonable, any of the assumptions could be inaccurate, and there can be no assurance that the forward-looking statements included in this Report will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved.
Liquidity
The Partnership's primary source of funds was the proceeds of its Public Offering. Other sources of liquidity include (i) interest earned on capital contributions unpaid for the nine months ended December 31, 2009 or on working capital reserves and (ii) cash distributions from operations of the Operating Partnerships in which the Partnership has invested. These sources of liquidity, along with the Partnership's working capital reserve, are available to meet the obligations of the Partnership. The Partnership does not anticipate significant cash distributions from operations of the Operating Partnerships.
The Partnership has recognized other income for the nine months ended December 31, 2009 in the amount of $136,220. The balance represents distributions received from Operating Partnerships, which the Partnership normally records as a decrease in the Investment in Operating Partnerships. Due to the equity method of accounting, the Partnership has recorded these distributions as other income.
The Partnership is currently accruing the partnership management fee. Partnership management fees accrued during the quarter ended December 31, 2009 were $279,543 and total partnership management fees accrued as of December 31, 2009 were $22,493,040. During the quarter and nine months ended December 31, 2009, $1,740,000 and $1,890,000 of accrued partnership management fees was paid. Pursuant to the Partnership Agreement, these liabilities will be deferred until the Partnership receives proceeds from sales of the Operating Partnerships, which will be used to satisfy these liabilities. The Partnership's working capital and sources of liquidity coupled with affiliated party liability accruals allow sufficient levels of liquidity to meet the third party obligations of the Partnership. The Partnership is currently unaware of any trends that would create insufficient liquidity to meet future third party obligations of the Partnership.
As of December 31, 2009, an affiliate of the general partner of the Partnership advanced a total of $425,307 to the Partnership to pay some operating expenses of the Partnership, and to make advances and/or loans to Operating Partnerships. These advances are included in Accounts payable-affiliates. During the quarter ended December 31, 2009 the Partnership did not receive any advances. Below is a summary, by series, of the total advances made to date.
|
Current Quarter |
Total |
|
|
Series 7 |
$ - |
$ - |
|
Series 11 |
- |
99,461 |
|
Series 12 |
- |
153,188 |
|
Series 14 |
- |
172,658 |
|
$ - |
$ 425,307 |
|
All payables to affiliates will be paid, without interest, from available cash flow or the proceeds of sales or refinancing of the Partnership's interests in Operating Partnerships. During the nine months ended December 31, 2009, $41,453 was paid
by Series 7 to an affiliate of the general partner and the remaining of $173,840 has been forgiven. The general partner has recorded this amount as a capital contribution.The Partnership offered BACs in a Public Offering declared effective by the Securities and Exchange Commission on October 25, 1989. The Partnership received and accepted subscriptions for $186,337,017 representing 18,679,738 BACs from investors admitted as BAC holders in Series 7 through Series 14 of the Partnership.
As of December 31, 2009 the Partnership had $1,367,914 remaining in cash and cash equivalents. Below is a table, which provides, by series, the equity raised, number of BACs sold, final date BACs were offered, number of properties acquired, and cash and cash equivalents.
|
Series |
Equity |
BACs |
Final Close Date |
Number of Properties |
Cash and Cash Equivalents |
|
7 |
$ 10,361,000 |
1,036,100 |
12/29/89 |
- |
$ - |
|
9 |
41,574,018 |
4,178,029 |
05/04/90 |
24 |
126,584 |
|
10 |
24,288,997 |
2,428,925 |
08/24/90 |
16 |
193,630 |
|
11 |
24,735,002 |
2,489,599 |
12/27/90 |
19 |
151,402 |
|
12 |
29,710,003 |
2,972,795 |
04/30/91 |
26 |
129,766 |
|
14 |
55,728,997 |
5,574,290 |
01/27/92 |
55 |
766,532 |
|
$186,398,017 |
18,679,738 |
140 |
$1,367,914 |
||
Reserve balances are remaining proceeds less outstanding capital contribution obligations, which have not been advanced or loaned to the Operating Partnerships. The reserve balances for Series 9,10,11,12 and 14 as of December 31, 2009 are $126,584, $193,630, $151,402, $120,525 and $605,799, respectively.
(Series 8) No BACs with respect to Series 8 were offered.
(Series 13) No BACs with respect to Series 13 were offered.
As of December 31, 2009 and 2008 the Partnership held limited partnership interests in 140 and 159 Operating Partnerships, respectively. In each instance the apartment complex owned by the applicable Operating Partnership is eligible for the federal housing tax credit. Initial occupancy of a unit in each apartment complex which initially complied with the minimum set-aside test (i.e., initial occupancy by tenants with incomes equal to no more than a certain percentage of area median income) and the rent restriction test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to as "Qualified Occupancy." Each of the Operating Partnerships and each of the respective apartment complexes are described more fully in the Prospectus or applicable report on Form 8-K. The general partner believes that there is adequate casualty insurance on the properties.
The Partnership incurs an annual partnership management fee to the general partner of the Partnership and/or its affiliates in an amount equal to 0.5% of the aggregate cost of the apartment complexes owned by the Operating Partnerships, less the amount of various partnership management and reporting fees paid by the Operating Partnerships. The partnership management fees incurred and the reporting fees paid by the Operating Partnerships for the three and nine months ended December 31, 2009 are as follows:
|
3 Months |
|
9 Months |
|
|
|
Series 07 |
$ - |
$ - |
$ - |
$ - |
|
Series 09 |
55,098 |
750 |
150,572 |
16,972 |
|
Series 10 |
23,561 |
1,855 |
57,182 |
26,082 |
|
Series 11 |
32,461 |
16,205 |
117,896 |
28,102 |
|
Series 12 |
37,542 |
- |
94,623 |
18,003 |
|
Series 14 |
77,996 |
34,075 |
270,470 |
81,667 |
|
$ 226,658 |
$ 52,885 |
$ 690,743 |
$ 170,826 |
The Partnership's investment objectives do not include receipt of significant cash distributions from the Operating Partnerships in which it has invested. The Partnership's investments in Operating Partnerships have been made principally with a view towards realization of federal housing tax credits for allocation to its partners and BAC holders.
(Series 7)
The series did not have any properties as of December 31, 2009 and 2008. As a result, net loss from Operating Partnerships, which include depreciation and amortization, is $0 for all periods presented.
In August 2008, the investment general partner entered into an agreement to transfer its interest in Briarwood Apartments, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $601,350 and cash proceeds to the investment partnership of $25,680. Of the total proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $20,680 was returned to cash reserves held by Series 7. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $20,680 as of September 30, 2008.
In August 2008, the investment general partner entered into an agreement to transfer its interest in Lebanon Properties II LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $555,337 and cash proceeds to the investment partnership of $25,680. Of the total proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $20,680 was returned to cash reserves held by Series 7. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $20,680 as of September 30, 2008.
In August 2008, the investment general partner entered into an agreement to transfer its interest in Oak Grove Estates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $466,923 and cash proceeds to the investment partnership of $21,400. Of the total proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $16,400 was returned to cash reserves held by Series 7. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $16,400 as of September 30, 2008.
(Series 9)
As of December 31, 2009 and 2008, the average Qualified Occupancy for the series was 100%. The series had a total of 24 properties at December 31, 2009, all of which were at 100% Qualified Occupancy.
For the periods ended December 31, 2009 and 2008, Series 9 reflects loss from Operating Partnerships of $(548,146) and $(652,788), respectively, which includes depreciation and amortization of $967,450 and $1,350,095, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Sunshine Apartments (Telluride Apartments) is a 50 unit family development located in Telluride, CO. In 2008, water infiltrated approximately 50% of the units which led to the units being condemned. The decline in occupancy continued through 2009 and as of December 31, 2009 the property was 50% physically occupied and operating below breakeven. The drop in occupancy was due to major mold issues resulting in 25 units being off-line. The operating general partner indicated that the property will need $753,807 in immediate repairs. The Operating Partnership does not have the funds available to do the work. Additionally, the operating general partner was unsuccessful in obtaining an emergency loan or preservation funding from Rural Development to bring the units back online. The investment general partner is continuing to work with management to maximize operating cash flow. The 15-year low income housing tax credit compliance period expired on December 31, 2004. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership. The mortgage, real estate tax and insurance payments are all current.
In November 2009, the operating general partner of Sunshine Apartments approved an agreement to sell the property and the transaction is scheduled to close in December 2010. The anticipated sales price for the property is $1,613,420, which includes the outstanding mortgage balance of approximately $1,413,420 and cash proceeds to the investment partnership of $175,000. Of the total proceeds estimated to be received, it is expected that $15,000 will be paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $160,000 are anticipated to be returned to cash reserves held by Series 9. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution.
Blanco Seniors Apartments Ltd (Blanco Seniors Apartments) is a 20-unit elderly development located in Blanco, Texas. Occupancy was strong averaging 99% for 2008 and remained steady averaging 98% in 2009. Expenses in 2009 remained consistent with 2008 totals. The property operated above breakeven in 2008 and 2009. The operating deficit guarantee is unlimited in time and amount. All real estate tax, mortgage, and insurance payments are current.
Fountain Green Apartments, Limited (Fountain Green Apartments) is a 24-unit property located in Crestview, FL. Audited financials confirmed above breakeven operations in both 2007 and 2008 with strong occupancy. Occupancy declined to an average of 84% through the first three quarters of 2009, but has rebounded to 100% as of December 2009. The property continues to operate above breakeven. All insurance, real estate taxes, and mortgage payments are current. Tax credit delivery ended in 2002 and the low income housing tax credit compliance period expired in 2007.
Glenwood Hotel Investors (Glenwood Hotel) is a 36-unit single room occupancy development, located in Porterville, CA. Through the fourth quarter of 2009, average physical occupancy remained strong at 100%. However, despite the strong occupancy, the property is operating below breakeven. To maintain a high occupancy level and to be competitive in the market, management feels it is necessary to keep rental rates low. The management agent continues to market the available units to the housing authority as well as performing various outreach efforts to attract qualified residents. The operating general partner continues to fund the Operating Partnership as needed. The mortgage, insurance and payables are current. The low income housing tax credit compliance period for this Operating Partnership expired on December 31, 2005.
In December 2007, the investment general partner entered into an agreement to transfer 99% of its interest in Haines City Apartments Limited to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $1,374,226 and cash proceeds to the investment partnership of $48,000. Of the total proceeds received, $8,208 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $7,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $32,292 was returned to cash reserves held by Series 9. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partner's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, has been recorded in the amount of $32,292 as of December 31, 2007. The transfer of the Operating Partnership had been recognized as of December 31, 2007, and the proceeds were received in the first quarter of 2008. The sale of the remaining 1% investment partnership interest in the Operating Partnership closed in December 2008 for the purchaser's assumption of the outstanding mortgage balance of approximately $13,881 and cash proceeds of $10,000. The remaining proceeds of $10,000 was returned to cash reserves and recorded as a gain as of December 31, 2008.
In November 2009, the operating general partner of Westside Associates LP entered into an agreement to sell the property and the transaction closed on December 23, 2009. The sales price of the property was $2,102,654, which includes the outstanding mortgage balance of approximately $2,102,653 and cash proceeds to the investment partnership of $0. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, no gain on the sale of the Operating Partnership has been recorded.
In September 2007, the investment general partner of Blakely Properties LP approved an agreement to sell the property and the transaction closed on September 26, 2008. The sales price for the property was $1,495,446, which includes the outstanding mortgage balance of approximately $993,951 and cash proceeds to the investment limited partner of $294,000. Of the total proceeds received, $18,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $7,500 was paid to BCAMLP for expenses related to the sale, which include third party legal costs. The remaining proceeds from the sale of $268,500 were returned to cash reserves held by Series 9. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $268,500 as of September 30, 2008.
In October 2008, the investment general partner of Boston Capital Tax Credit Fund I - Series 6 and Series 9, respectively, entered into an agreement to transfer its interest in Hacienda Villa Associates LP to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $5,943,874 and cash proceeds to the investment limited partnerships of $103,200 and $111,800 to Series 6 and Series 9, respectively. Of the total proceeds received, $47,520 and $51,480 to Series 6 and Series 9, respectively, represents reporting fees due to an affiliate of the investment partnerships and the balance represents proceeds from the transfer. Of the remaining proceeds, $12,000 and $13,000 from Series 6 and Series 9, respectively, was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $43,680 and $47,320 were returned to cash reserves held by Series 6 and Series 9, respectively. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership of the proceeds from the transfer, net of the overhead and expense reimbursement, has been recorded in the amount of $43,680 and $47,320 to Series 6 and Series 9, respectively, as of December 31, 2008.
In December 2008, the investment general partner of Putney First entered into an agreement to transfer its interest to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $1,381,477 and cash proceeds to the investment limited partner of $41,444. Of the total proceeds received, $22,710 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $7,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $11,234 were returned to cash reserves held by Series 9. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $11,234 as of December 31, 2008.
In January 2009, the investment general partner entered into an agreement to transfer its interest in Newfane Seniors LP to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $832,737 and cash proceeds to the investment limited partner of $25,032. Of the total proceeds received, $1,500 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $5,100 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $18,432 were returned to cash reserves held by Series 9. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $18,432 as of March 31, 2009.
In January 2009, the investment general partner entered into an agreement to transfer its interest in Southwestern LP to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $1,376,318 and cash proceeds to the investment limited partner of $41,373. Of the total proceeds received, $3,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $5,165 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $33,208 were returned to cash reserves held by Series 9. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $33,208 as of March 31, 2009.
In July 2009, the investment general partner entered into an agreement to transfer its interest in Beaver Brook Housing Associates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,133,100 and cash proceeds to the investment limited partner of $35,000. Of the total proceeds received, $5,750 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $7,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $21,750 were returned to cash reserves held by Series 9. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment limited partnership entered into a partner interest pledge agreement with the Operating Partnership for receipt of a residual payment. Under the terms of the partner interest pledge agreement, if the property owned by the Operating Partnership is sold, within 5 years from the initial transfer date, there would be a residual payment of up to $500,000 distributable to the investment limited partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $21,750 as of September 30, 2009.
Big Lake Seniors Apartments (Big Lake Seniors) is a 20 unit elderly development located in Big Lake, TX. The property performed well in 2008 with average occupancy of 99%. Through the third quarter of 2009 occupancy declined to average 89% but has increased to 95% as of December 2009. As a result of the drop in average occupancy, the property operated below breakeven for the year. The operating general partner attributed the drop in occupancy to several move-outs over the course of 2009 primarily due to local economic conditions. Also contributing to the below breakeven performance in 2009 was a substantial increase in maintenance costs due to several floors being replaced. The operating general partner has requested funds from the replacement reserve account to help off-set these costs and help bring operations closer to breakeven status. The operating general partner is confident that operations will improve back above breakeven status in 2010. The low income housing tax credit compliance period expired at year end 2009.
(Series 10)
As of December 31, 2009 and 2008, the average Qualified Occupancy for the series was 100%. The series had a total of 16 properties at December 31, 2009, all of which were at 100% Qualified Occupancy.
For the periods ended December 31, 2009 and 2008, Series 10 reflects net loss from Operating Partnerships of $(373,824) and $(275,150), respectively, which includes depreciation and amortization of $539,320 and $613,856, respectively. This is an interim period estimate; it is not indicative of the final year end results.
In October 2008, the investment general partner of Great Falls Properties LP approved an agreement to sell the property and the transaction closed in September 2009. The sales price for the property was $952,757, which includes the outstanding mortgage balance of approximately $852,757 and cash proceeds to the investment limited partners of $62,241. Of the total proceeds received, $14,048 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $15,000 will be paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds of $33,193 were returned to cash reserves held by Series 10. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $33,193 as of September 30, 2009. The sale of the Operating Partnership has been recognized as of September 30, 2009, but the sale proceeds were received in October 2009.
In August 2008, the investment general partner entered into an agreement to transfer its interest in Ironton Estates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $596,371 and cash proceeds to the investment partnership of $25,680. Of the total proceeds, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $20,680 were returned to cash reserves held by Series 10. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $20,680 as of September 30, 2008.
In August 2008, the investment general partner entered into an agreement to transfer its interest in Stockton Estates, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $427,070 and cash proceeds to the investment partnership of $12,840. Of the total proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $7,840 were returned to cash reserves held by Series 10. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $7,840 as of September 30, 2008.
In July 2008, the investment general partner entered into an agreement to transfer its interest in Butler Properties to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $485,544 and cash proceeds to the investment limited partner of $18,400. Of the total proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $13,400 were returned to cash reserves held by Series 10. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $13,400 as of September 30, 2008.
In July 2008, the investment general partner entered into an agreement to transfer its interest in Hart Properties Ltd. to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $883,613 and cash proceeds to the investment limited partner of $36,800. Of the total proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $31,800 were returned to cash reserves held by Series 10. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $31,800 as of September 30, 2008.
Meadowbrook Properties II LP (Meadowbrook Lane Apartments) is a 50-unit property located in Americus, GA. The property operated below breakeven in 2008 due to low occupancy, insufficient rental rates, and a significant increase in bad debt. As a result of poor operations, the accounts payable balance continues to be an issue. In 2009 occupancy averaged 86% and as of December 2009 was at 86% with operations below breakeven status. The 15-year low income housing tax credit compliance period expired in 2004 with respect to Meadowbrook Properties II. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.
In April 2009, the investment general partner of Wichita West Housing Associates Two LP approved an agreement to sell the property and the transaction closed on October 30, 2009. The sales price for the property is $2,498,580, which includes the outstanding mortgage balance of approximately $1,555,423 and cash proceeds to the investment partnership of $838,846. Of the total proceeds received, $15,000 will be paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $823,846 will be returned to cash reserves held by Series 10. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $823,846 as of December 31, 2009.
(Series 11)
As of December 31, 2009 and 2008 the average Qualified Occupancy for the series was 100%. The series had a total of 19 properties at December 31, 2009, all of which were at 100% Qualified Occupancy.
For the periods ended December 31, 2009 and 2008, Series 11 reflects net loss from Operating Partnerships of $(197,778) and $(284,726), respectively, which includes depreciation and amortization of $1,090,614 and $1,008,723, respectively. This is an interim period estimate; it is not indicative of the final year end results.
In April 2008, the investment general partner of Aspen Square Limited Partnership approved an agreement to sell the property and the transaction is anticipated to close in March 2010. The anticipated sales price for the property is $2,180,064, which includes the outstanding mortgage balance of approximately $1,779,055 and cash proceeds to the investment limited partners of $401,009. Of the total proceeds anticipated to be received, $12,890 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, it is anticipated that $15,000 will be paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $373,119 are anticipated to be returned to cash reserves held by Series 11. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution.
In April 2008, the investment general partner of Copper Creek approved an agreement to sell the property and the transaction closed on December 18, 2008. The sales price for the property was $1,327,613, which includes the outstanding mortgage balance of approximately $1,133,710 and cash proceeds to the investment limited partners of $193,709. Of the total proceeds received, $9,880 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $16,000 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $167,829 were returned to cash reserves held by Series 11. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $167,829 as of December 31, 2008.
In April 2008, the investment general partner of Sierra Springs Limited Partnership approved an agreement to sell the property and the transaction closed on December 18, 2008. The sales price for the property was $1,354,584, which includes the outstanding mortgage balance of approximately $1,135,034 and cash proceeds to the investment limited partners of $219,320. Of the total proceeds received, $9,120 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $16,000 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $194,200 were returned to cash reserves held by Series 11. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $194,200 as of December 31, 2008.
Coronado Housing (Coronado Hotel Apartments) is located in Tucson, Arizona and is a 42-unit single room occupancy development with project-based Section 8 rental assistance on all units. In December 2005, the permanent mortgage was fully paid off. In 2008, the property's average occupancy dropped to 76% and operations were below breakeven. The decline in occupancy was due to a city construction project that negatively impacted visibility. The construction of a highway overpass, bike path, and walking path was originally expected to be completed by October 2008 but wasn't completed until September 2009. The new construction has helped to add additional pedestrian traffic to the property. Through the fourth quarter of 2009, the property's occupancy increased and it achieved 98% occupancy in December. The property is also currently operating above breakeven. The operating general partner has made capital improvements over time as units became vacant. The management has been utilizing all operating cash for repairs. The real estate taxes and insurance are current. The operating general partner's guarantee is unlimited in time and amount. The low income housing tax credit compliance period expired on December 31, 2005.
South Fork Heights, Limited (South Fork Heights Apartments), located in South Fork, Colorado is a 48-unit family property financed by Rural Development. The property has historically suffered from low occupancy and high turnover. Due to its location in a small tourist town in the mountains, there are minimal employment opportunities. However, in 2008, the development of a golf course, single family homes and condos at a nearby ski resort began to positively impact the area and property. Throughout the year, occupancy has increased from 81% in January 2009 to 94% in December 2009. The tax, insurance, and mortgage payments are all current. The property delivered tax credits from 1991 through 2001. On December 31, 2005, the 15-year low income housing tax credit compliance period expired with respect to South Fork Heights, Limited.
In November 2008, the investment general partner of South Fork Heights, Limited approved an agreement to sell the property and the transaction is anticipated to close in April 2010. The anticipated sales price for the property is $1,600,000, which includes the outstanding mortgage balance of approximately $1,400,000 and cash proceeds to the investment limited partners of $144,951. Of the total proceeds anticipated to be received, $16,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, it is anticipated that $15,000 will be paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $113,951 are anticipated to be returned to cash reserves held by Series 11. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution.
In August 2008, the investment general partner entered into an agreement to transfer its interest in El Dorado Springs Estates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $561,702 and cash proceeds to the investment partnership of $25,680. Of the total proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $20,680 was returned to cash reserves held by Series 11. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $20,680 as of September 30, 2008.
In August 2008, the investment general partner entered into an agreement to transfer its interest in Nevada Manor, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $626,534 and anticipated cash proceeds to the investment partnership of $25,680. The transaction closed in September 2008. Of the total proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $20,680 were returned to cash reserves held by Series 11. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $20,680 as of September 30, 2008.
In January 2009, the investment general partner entered into an agreement to transfer its interest in Holland Senior LP to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $868,190 and cash proceeds to the investment limited partner of $26,098. Of the total proceeds received, $750 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $5,104 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $20,244 were returned to cash reserves held by Series 11. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $20,244 as of March 31, 2009.
In January 2009, the investment general partner of Hilltop Apartments LP approved an agreement to sell the property and the transaction closed on December 31, 2009. The sales price for the property was $1,456,512, which includes the outstanding mortgage balance of approximately $1,356,512 and cash proceeds to the investment limited partners of $92,620. Of the total proceeds received, $14,025 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $16,000 will be paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $62,595 will be returned to cash reserves held by Series 11. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. The sale proceeds were received on January 4, 2010; a receivable in the amount of $62,595 has been recorded for Series 11 as of December 31, 2009. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $62,595 as of December 31, 2009.
(Series 12)
As of December 31, 2009 and 2008 the average Qualified Occupancy for the series was 100%. The series had a total of 26 properties at December 31, 2009, all of which were at 100% Qualified Occupancy.
For the periods ended December 31, 2009 and 2008, Series 12 reflects net loss from Operating Partnerships of $(253,464) and $(537,821), respectively, which includes depreciation and amortization of $681,758 and $601,180, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Turner Lane, LP (660 Turner Apartments) is a 24-unit property located in Ashburn, GA. In 2008, the property operated below breakeven for the year. The reasons for the deficit are low occupancy and insufficient rental revenue. Occupancy averaged 84% in 2008 and has increased to 87% through 2009. Occupancy ended the year at 96% with operations above breakeven status. All real estate taxes, insurance and mortgage payments are current. On December 31, 2005, the 15-year low income housing tax credit compliance period expired with respect to Turner Lane Limited Partnership. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.
In April 2008, the investment general partner of Cananche Creek, Limited Partnership approved an agreement to sell the property and the transaction closed on December 18, 2008. The sales price for the property was $1,709,466, which includes the outstanding mortgage balance of approximately $1,195,300 and cash proceeds to the investment limited partners of $513,642. Of the total proceeds received, $7,840 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $16,000 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $489,802 was returned to cash reserves held by Series 12. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $489,802 as of December 31, 2008.
During April 2008, the investment general partner of Shawnee Ridge, L.P. approved an agreement to sell the property and the transaction closed on December 18, 2008. The sales price for the property was $797,654, which includes the outstanding mortgage balance of approximately $644,036 and cash proceeds to the investment limited partners of $153,454. Of the total proceeds received, $6,280 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $16,000 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $131,174 were returned to cash reserves held by Series 12. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $131,174 as of December 31, 2008.
Lakeridge Apartments of Eufala, Ltd. (Lakeridge Apts.) is a 30-unit development located in Eufala, AL. The property is located in a rural area with a stagnant economy. The property had suffered from low occupancy through 2006 but began rebounding in early 2007 with a reissuance of Section 8 vouchers and aggressive marketing. Since then, occupancy has ranged from 87% to 92% with above breakeven operations. Occupancy increased to 97% at December 2009. The operating general partner's guarantee expired in 2001; however, they have continued to fund deficits as needed. All insurance, real estate tax and mortgage payments are current. On December 31, 2005, the 15-year low income housing tax credit compliance period expired with respect to Lakeridge Apartments of Eufala, Ltd. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.
Fort Smith Housing Associates (Yorkshire Townhomes) is a 50-unit property located in Fort Smith, AR. The property has historically dealt with low occupancy, high operating expenses and an inconsistent management presence. The management company has been replaced twice and turnover at the site manager position has been problematic. In January 2009, a full time site manager was hired but by that time, the property had seen an increase in crime and the quality of the tenant profile had declined. In an effort to gain better control over the site, management moved a police officer into the manager's unit. As a result, incidents at the property have been minimal and problematic tenants have either been evicted or moved-out on their own accord. That combination has increased vacancy but the goal is to fill vacant units with stronger tenants. The permanent mortgage matured in February 2009 and was extended for a period of 6 months. The extension matured in September 2009 and was subsequently extended for another 12 months. At the end of December 2009, occupancy was 72% with below breakeven operations. On December 31, 2008, the 15-year low income housing tax credit compliance period expired with respect to Fort Smith Housing Associates. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership. The mortgage, real estate tax and insurance payments are all current.
Prairie West Apts LP (Prairie West Apts.) is a 24-unit property located in West Fargo, North Dakota. In 2008, average occupancy was 90% and the property continued to operate below breakeven due to high operating expenses. The high operating expenses were mainly maintenance expenses due to increased turnover costs as well as required building maintenance for the aging property. Historically, management at this property has coordinated with Lutheran Social Services (LSS) to provide housing to new Americans despite no rental or credit history. As a result, the property was negatively affected by unique cultural concerns. At year-end 2008, management discontinued providing housing for LSS referrals without an established rental and credit history. In addition, leases of problematic tenants were not renewed in an effort to re-tenant the property and improve the community perception. As of December 31, 2009, occupancy is 96%. The operating general partner continues to fund all operating deficits as operations are supported by an unlimited guarantee. The low income housing tax credit compliance period expired in 2005. The investment general partner has been in discussions regarding potential disposition options. The investment general partner will continue monitoring operations as well as continue to explore disposition options. The mortgage, trade payables, property taxes, and insurance are current.
Hamilton Village LP (Hamilton Village Apartments) is a 20-unit family development located in Preston, GA. In 2008, occupancy averaged 99% and operations were above breakeven for the year. Through the fourth quarter of 2009, occupancy has averaged 99% and at December 31, 2009 was at 100% with above breakeven operations. On December 31, 2007, the 15-year low income housing tax credit compliance period expired with respect to Hamilton Village Limited Partnership. All mortgage, real estate tax and insurance payments are current. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.
Briarwick Apartments Limited, A KY Limited Partnership (Briarwick Apartments) is a 40-unit family property located in Nicholasville, KY. In 2008, the Operating Partnership operated at a deficit due to maintaining an average occupancy of 59%. Operating expenses increased from the prior year due to administrative costs and maintenance expenses related to the age of the property as well as the condition of units upon turnover. Management continues to update units as vacancies occur and funds are available. Low occupancy has plagued this Operating Partnership for several years. This is the result of the property's advanced age, which has made it non-competitive in the local rental market. According to the operating general partner, management continues to advertise in local newspapers and offer concessions in order to attract residents. However, management continues to lose residents to newer developments offering more space and superior amenity packages. Rents at the property are comparable to other properties in the area. Average occupancy through the fourth quarter of 2009 has increased to 76% and ended the year at 77%, but the property continues to operate below breakeven status. The mortgage, real estate tax and insurance payments are current. The operating general partner's obligation to fund deficits is limited to $50,840 per year. On December 31, 2006, the 15-year low income housing tax credit compliance period expired. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.
Los Caballos II Limited Partnership (Los Caballos II Apartments) was a 24-unit, family complex located in Hatch, New Mexico. On August 14, 2006, flash floods caused significant damage to the property. The county building inspector determined the property was a complete loss. On January 10, 2007, the operating general partner had a meeting with the Village of Hatch, representatives from Federal Emergency Management Agency, and Rural Development (RD). It was determined that the property would be demolished and would not be rebuilt by the existing Operating Partnership. Demolition was completed in June 2007. The existing mortgage, on which Rural Development had already agreed to suspend all payments until the property was reconstructed, will be assumed by a new Operating Partnership. The existing liability will subsequently be removed from Los Caballos II Limited Partnership. For tax purposes, this event will not be classified as an early extinguishment of debt.
The parcel held by the Los Caballos II partnership will not be the location of the newly constructed project. The new project will be on an adjacent property outside of the flood zone. The plan is to have a new Operating Partnership absorb the mortgage debt from Los Caballos II. The investment general partner has requested that RD approve a 'Transfer of Assets' that will move all debt and cash assets of Los Caballos II to a separate entity, but Los Caballos II will retain the land. If RD accepts this transfer, it will effectively reduce the Operating Partnership's total debt from approximately $60,000 to $0, and will leave the land in the name of the Los Caballos II partnership.
As the debt still exists but is simply guaranteed by a new entity, it will not count as "forgiveness of debt" by RD. An appraisal of the land was completed on May 25, 2008. The land value is estimated at $75,000. Depending on the market, liquidation of the land will either be attempted in conjunction with the transfer of assets or after the transfer of assets. As of October 2009 the operating general partner is continuing to search for a method of transferring the existing debt.
In August 2008, the investment general partner entered into an agreement to transfer its interest in Portales Estates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,395,236 and cash proceeds to the investment partnership of $47,080. Of the total proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $42,080 was returned to cash reserves held by Series 12. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $42,080 as of September 30, 2008.
In July 2008, the investment general partner entered into an agreement to transfer its interest in Burkesville Properties to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $712,364 and cash proceeds to the investment limited partner of $27,600. Of the total proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $22,600 were returned to cash reserves held by Series 12. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $22,600 as of September 30, 2008.
In July 2008, the investment general partner entered into an agreement to transfer its interest in Clarkson Properties, Ltd. to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $714,796 and cash proceeds to the investment limited partner of $27,600. Of the total proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $22,600 were returned to cash reserves held by Series 12. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $22,600 as of September 30, 2008.
In July 2008, the investment general partner entered into an agreement to transfer its interest in Evanwood Properties, Ltd. to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $727,412 and cash proceeds to the investment limited partner of $27,600. Of the total proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $22,600 were returned to cash reserves held by Series 12. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $22,600 as of September 30, 2008.
In January 2009, the investment general partner of RPI LP #22 approved an agreement to sell the property and the transaction is anticipated to close in April 2010. The anticipated sales price for the property is $1,250,000, which includes the outstanding mortgage balance of approximately $559,772 and cash proceeds to the investment limited partners of $335,364. Of the total proceeds anticipated to be received, $1,500 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, it is anticipated that $15,000 will be paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $318,864 are anticipated to be returned to cash reserves held by Series 12. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution.
In February 2009, the investment general partner entered into an agreement to transfer its interest in Waynesboro Associates Limited, LP to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $1,322,785 and cash proceeds to the investment limited partner of $39,684. Of the total proceeds received, $25,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $7,550 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $7,134 were returned to cash reserves held by Series 12. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $7,134 as of March 31, 2009.
(Series 14)
As of December 31, 2009 and 2008 the average Qualified Occupancy for the series was 99.89%. The series had a total of 55 properties at December 31, 2009, all of which were at 100% Qualified Occupancy.
For the periods ended December 31, 2009 and 2008, Series 14 reflects net loss from Operating Partnerships of $(1,312,078) and $(1,586,617), respectively, which includes depreciation and amortization of $2,270,125 and $2,892,147 respectively. This is an interim period estimate; it is not indicative of the final year end results.
Cottonwood Apartments II, A Limited Partnership (Cottonwood Apartments II) is a 24-unit development located in Cottonport, Louisiana. In the third and fourth quarters of 2008, occupancy fell to 50% and 29%, respectively due to damages sustained during Hurricane Gustav. All real estate tax, mortgage, and insurance payments are current.
During the first week of September 2008, Hurricane Gustav hit land southwest of New Orleans as a Category Two storm causing damages to the complex. There was roof damage on all four buildings as well as interior damage to approximately fifteen units. In addition, the office and laundry room experienced some flooding. An insurance claim was submitted and proceeds of $414,250 were received. In addition, a total of $18,000 has been received for lost rents. All repairs were completed as of August 2009 at which time all units were back on line. As of December 31, 2009, the property is 46% occupied. According to the operating general partner, low vacancy is due to the poor local economy, a lack of jobs, and qualified applicants. The operating general partner maintains that they are working closely with the on-site manager to market the property effectively. They are reaching out to local businesses, the community, and the Chamber of Commerce in an effort to increase occupancy with the use of flyers and offering rental concessions. On December 31, 2005, the 15-year low income housing tax credit compliance period expired with respect to Cottonwood Apartments II, A Limited Partnership. The investment limited partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.
In December 2006, the investment general partner of Series 14, Boston Capital Tax Credit Fund III - Series 17 and Boston Capital Tax Credit Fund IV - Series 20 transferred 33% of their interest in College Greene Rental Associates Limited Partnership to entities affiliated with the operating general partners for their assumption of one third of the outstanding mortgage balance. The cash proceeds received by Series 14, Series 17, and Series 20 were $25,740, $7,919, and $65,341, respectively. Of the proceeds received, $1,950, $599, and $4,951 for Series 14, Series 17, and Series 20, respectively, was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds received by Series 14, Series 17, and Series 20 of $23,790, $7,320 and $60,390, respectively, were applied against the investment limited partner's investment in the Operating Partnership in accordance with the equity method of accounting. The remaining 67% investment limited partner interest is scheduled to be transferred as follows: 49% in March 2010 for $257,209 and 18% in April 2011 for $1.00. Of the proceeds estimated to be received, its is expected that $3,900, $1,200 and $9,900 for Series 14, Series 17 and Series 20, respectively, will be paid to BCAMLP for expenses related to the transfer. The remaining proceeds of $62,974, $19,377 and $159,858, respectively, are anticipated to be returned to cash reserves held by Series 14, Series 17 and Series 20, respectively. The future proceeds will be allocated to the investment limited partnerships based on their original equity investments in the Operating Partnership.
Rosewood Manor, Limited (Rosewood Manor Apartments) is a 43-unit apartment complex located in Ellenton, Florida. In 2008 the property operated below breakeven due to a drop in occupancy. Through the fourth quarter of 2009, the property continues to operate below breakeven due to overall low occupancy for the year and an increase in operating expenses. Weak occupancy through the third quarter can be attributed to depressed market conditions. The property is competing with individuals that are renting their homes at discounted rents to avoid losing their homes to foreclosure. Management increased marketing and is advertising in all of the local papers. The site manager is continuing to deliver flyers and brochures to all of the local restaurants, shopping malls and housing agencies on a weekly basis. Occupancy rebounded to 98% as of December 31, 2009. Currently there are 10 units with project-based rental assistance. To help maintain strong occupancy, management requests additional rental assistance from Rural Development on a quarterly basis. Overall in 2009, the property experienced an increase in administrative and utility expenses. These were attributable to increased marketing efforts in the early part of the year. Should the property maintain its current occupancy, management will be able to decrease marketing to help lower administrative expenses and the electric costs associated with vacancy will decrease as well. On December 31, 2006, the 15-year low income housing tax credit compliance period expired with respect to Rosewood Manor, Limited. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.
Wynnewood Village Apartments, Ltd. (Wynnewood Village Apartments) is a 16-unit family property located in Wynnewood, OK. Wynnewood is a small town where population and employment opportunities have been consistently declining in recent years. Consequently, Wynnewood Village has struggled to maintain a stabilized occupancy and to keep operations above breakeven. Requests to Rural Development for additional rental assistance have been denied. The management company has expanded marketing activities to include advertisements in surrounding towns and outreach to local agencies for referrals. These efforts helped increase occupancy to 94% in December 2009; however, occupancy remains a major issue as it averaged only 86% for the year. A rent increase granted from Rural Development effective January 1, 2009 was implemented, but the property remains unable to cover expenses. The operating general partner continues to fund deficits as needed. All taxes, mortgage and insurance payments are current. On December 31, 2007, the 15-year low income housing tax credit compliance period expired. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the partnership.
Davis Village Apartments Limited, LP (Davis Village Apartments) is a 44-unit family property located in Davis, OK. Occupancy was 89% as of December 2009 and averaged 94% for the year. Despite strong occupancy, operations are below breakeven due to increased replacement costs that are being expensed from operations. Additionally, the local area Rural Development has severely limited the items they will allow for use of the replacement reserve fund. Operations would be at breakeven if the withdrawals were approved. As the property is 16 years old, replacement costs are forecasted to remain high in future years and gaining approval for reserve withdrawals is expected to continue to be problematic. However, Rural Development approved a $25-30 rent increase on all units effective January 1, 2010 that is projected to bring operations back above breakeven. The operating general partner continues to fund all operating deficits. The mortgage, taxes, and insurance payments are all current. On December 31, 2007, the 15-year low income housing tax credit compliance period expired. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the partnership.
In April 2008, the investment general partner entered into an agreement to transfer its interest in Okemah Village Apartments, Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $647,815 and cash proceeds to the investment partnership of $40,600. Of the total proceeds received, $15,600 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $7,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $17,500 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $17,500 as of June 30, 2008. In addition, equity outstanding for the Operating Partnership in the amount of $31,656 was recorded as gain on the sale of the Operating Partnership as of March 31, 2009.
McComb Family LP (Pine Ridge Apartments) is a 32-unit development located in McComb, Mississippi. This property is located in a remote location. Operations rebounded slightly in 2007 from 2006 performance; however, the property continued to operate below breakeven due to low rent levels and occupancy below 90%. In 2008, occupancy improved to average 92% for the year and operations improved to above breakeven status. In 2009, occupancy continues to improve, averaging 95% for the year and 94% as of the end of December 2009 with operations at breakeven status. The property's cash situation has improved as a result of increased occupancy and rental assistance which was awarded, and made effective in September 2008. In addition, the lender has granted the property a workout plan; specifically, a temporary deferment of the monthly debt service so that necessary improvements can be made. The operating general partner continues to fund deficits as needed in accordance with the operating deficit guarantee, which is unlimited in time and amount. All real estate tax, insurance and mortgage payments are current. On December 31, 2006, the 15-year low income housing tax credit compliance period expired. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.
Jarratt Limited Partnership (Jarratt Village Apartments) is a 24-unit complex located in Jarratt, Virginia. Occupancy began to decline in the third quarter of 2006. Although management responded by replacing site staff, and occupancy improved throughout 2007 to an average of 90%, operations remained below breakeven. Occupancy has continued to improve throughout 2008 and through November, 2009, reaching 98%. Unaudited operations are above breakeven. The operating general partner continues to fund deficits as needed, despite an expired guarantee. The mortgage, taxes, and insurance are current. On December 31, 2006, the 15-year low income housing tax credit compliance period expired with respect to Jarratt Limited Partnership. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.
Duncan Village Apartments Limited, LP (Duncan Village Apartments) is a 48-unit family property located in Duncan, OK. Occupancy was 96% as of December 2009 and averaged 95% for the year. Despite strong occupancy, operations are below breakeven for the year due to fencing and concrete repairs totaling $12,711 and $4,950, respectively. Those costs have not been reimbursed from the replacement reserve account due to Rural Development restrictions. Rural Development approved a $25 rent increase on all units effective January 1, 2010 that is projected to bring operations back above breakeven in 2010. The operating general partner continues to fund all operating deficits. The mortgage, taxes, and insurance payments are all current. On December 31, 2007, the 15-year low income housing tax credit compliance period expired. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the partnership.
Prague Village Apartments Limited, LP (Prague Village Apartments) is an 8-unit family property located in Prague, OK. Occupancy was 100% as of December 2009 and averaged 94% for the year. Despite strong occupancy, operations are below breakeven for the year due to increased replacements and insurance costs. The majority of replacement costs have not been reimbursed from the replacement reserve account due to Rural Development restrictions. The operating general partner is in discussions with a new insurance company in an effort to reduce insurance costs. Rural Development approved a $45-55 rent increase on all units effective January 1, 2010 that is projected to bring operations back above breakeven in 2010. The operating general partner continues to fund all operating deficits. The mortgage, taxes, and insurance payments are all current. On December 31, 2007, the 15-year low income housing tax credit compliance period expired. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the partnership.
Scott Partners, LP (Lafayette Gardens) is a 56-unit apartment complex located in Scott, Louisiana. In 2009, the property operated below breakeven due to a decrease in occupancy and an increase in operating expenses. Occupancy has decreased due to poor property management. The regional manager advised the investment general partner that the property manager was not putting in the effort that they expected. The property manager has since been terminated. A new property manager was hired at the beginning of October 2009 and has already made an impact on the property. When the new property manager started occupancy was at 75%. The property manager increased occupancy to 93% by the end of November and 94% by the end of December. The increases in expenses such as bad debt, insurance and taxes have negatively impacted operations. The bad debt has increased due to job loss of the residents and the prior manager's lack of focus on collections. The new property manager has increased collection efforts and outstanding balances are sent to collection agencies after 30 days. Bad debt is still high for the year, but has shown improvements in the fourth quarter. The insurance rates increased in 2009. The operating general partner has advised that they have negotiated lower rates with the current insurance company and expect a 15% to 20% decrease in premiums in 2010. The operating general partner has also advised that the taxes have increased more than expected. The operating general partner contacted the city about the increased taxes in 2009 but they were unsuccessful in obtaining a tax abatement. The operating deficit guarantee is unlimited in time and amount. All real estate tax, mortgage, and insurance payments are current. On December 31, 2005 the Low Income Housing Tax Credit compliance period ended. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.
In December 2007, the investment general partner transferred 50% of the investment partnership interest in Portville Square Apartments LP to an entity affiliated with the operating general partner for its assumption of half the outstanding mortgage balance of approximately $425,921 and cash proceeds to the investment limited partner of $0. The remaining 50% investment limited partner interest in the Operating Partnership was transferred in December 2008 for the assumption of the remaining mortgage balance outstanding and proceeds of $0. In addition, the investment general partner on behalf of the investment limited partnership entered into an agreement with the Operating Partnership for receipt of a residual payment. Under the terms of the residual agreement, if the property owned by the Operating Partnership is refinanced or sold, on or before December 18, 2013, there would be a residual payment of the capital transaction proceeds distributable to the investment limited partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partnership transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partner's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, no gain on the transfer of the Operating Partnership has been recorded.
In December 2007, the investment general partner of Carleton Court approved an agreement to sell the property. The transaction was anticipated to close in February 2008; however, the buyer was unable to consummate the sale and the agreement expired in February 2008. The Operating Partnership's 15-year low income housing tax credit compliance period expired on December 31, 2005. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.
In November 2009, the operating general partner of Carleton Court entered into an agreement to sell the property and the transaction closed on December 23, 2009. The sales price of the property was $2,342,012, which includes the outstanding mortgage balance of approximately $2,342,011 and cash proceeds to the investment partnership of $0. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, no gain on the sale of the Operating Partnership has been recorded.
In December 2007, the investment general partner transferred 50% of the investment partnership interest in Belmont Village Court to an entity affiliated with the operating general partner for its assumption of half the outstanding mortgage balance of approximately $450,438 and cash proceeds to the investment limited partner of $0. The remaining 50% investment limited partner interest in the Operating Partnership was transferred in December 2008 for the assumption of the remaining mortgage balance outstanding and proceeds of $0. In addition, the investment general partner on behalf of the investment limited partnership entered into an agreement with the Operating Partnership for receipt of a residual payment. Under the terms of the residual agreement, if the property owned by the Operating Partnership is refinanced or sold, on or before December 18, 2013, there would be a residual payment of the capital transaction proceeds distributable to the investment limited partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partnership transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partner's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, no gain on the transfer of the Operating Partnership has been recorded.
In December 2007, the investment general partner transferred 50% of the investment partnership interest in Harrison City Associates, a Limited Partnership to an entity affiliated with the operating general partner for its assumption of half the outstanding mortgage balance of approximately $716,719 and cash proceeds to the investment limited partner of $0. The remaining 50% investment limited partner interest in the Operating Partnership was transferred in December 2008 for the assumption of the remaining mortgage balance outstanding and proceeds of $0. In addition, the investment general partner on behalf of the investment limited partnership entered into an agreement with the Operating Partnership for receipt of a residual payment. Under the terms of the residual agreement if the property owned by the Operating Partnership is refinanced or sold, on or before December 18, 2013, there would be a residual payment of the capital transaction proceeds distributable to the investment limited partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partnership transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partner's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, no gain on the transfer of the Operating Partnership has been recorded.
In December 2007, the investment general partner transferred 50% of the investment partnership interest in Tionesta Manor, a Limited Partnership to an entity affiliated with the operating general partner for its assumption of half the outstanding mortgage balance of approximately $690,817 and cash proceeds to the investment limited partner of $0. The remaining 50% investment limited partner interest in the Operating Partnership was transferred in December 2008 for the assumption of the remaining mortgage balance outstanding and proceeds of $0. In addition, the investment general partner on behalf of the investment limited partnership entered into an agreement with the Operating Partnership for receipt of a residual payment. Under the terms of the residual agreement, if the property owned by the Operating Partnership is refinanced or sold, on or before December 18, 2013, there would be a residual payment of the capital transaction proceeds distributable to the investment limited partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partnership transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partner's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, no gain on the transfer of the Operating Partnership has been recorded.
In January 2008, the investment general partner of Navapai Associates approved an agreement to sell the property and the transaction closed on November 24, 2008. The sales price for the property was $982,030, which includes the outstanding mortgage balance of approximately $852,030 and cash proceeds to the investment partnership of $101,427. Of the total proceeds received, $9,000 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $92,427 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $92,427 as of December 31, 2008.
In January 2008, the investment general partner of Chaparral Associates approved an agreement to sell the property and the transaction closed on November 24, 2008. The sales price for the property was $772,020, which includes the outstanding mortgage balance of approximately $672,020 and cash proceeds to the investment partnership of $113,807. Of the total proceeds received, $9,000 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $104,807 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $104,807 as of December 31, 2008.
In August 2008, the investment general partner entered into an agreement to transfer its interest in Excelsior Springs Properties LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $603,539 and cash proceeds to the investment partnership of $25,680. Of the total proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $20,680 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $20,680 as of September 30, 2008.
In August 2008, the investment general partner entered into an agreement to transfer its interest in Smithville Properties, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,205,936 and cash proceeds to the investment partnership of $51,360. Of the total proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $46,360 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $46,360 as of September 30, 2008.
In May 2008, the investment general partner entered into an agreement to transfer its interest in San Jacinto Investors II to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $2,295,150 and cash proceeds to the investment partnership of $250,000. The transaction closed on January 1, 2010. Of the total proceeds received, $3,102 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $15,000 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $231,898 will be returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, will be recorded in the amount of $231,898 as of March 31, 2010.
In July 2008, the investment general partner of Capital Housing Associates approved an agreement to sell the property and the transaction closed on October 31, 2008. The sales price for the property was $1,887,961, which includes the outstanding mortgage balance of approximately $1,121,367 and cash proceeds to the investment limited partners of $450,000. Of the total proceeds received, $15,000 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $435,000 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $435,000 as of December 31, 2008. On March 26, 2009, additional sale proceeds of $34,470 were received. The additional sale proceeds were returned to the cash reserves held by Series 14 and an additional gain on the sale of the Operating Partnership has been recorded for amount received.
In October 2008, the investment general partner of Breckenridge Apartments approved an agreement to sell the property and the transaction closed in September 2009. The sales price for the property was $901,201, which includes the outstanding mortgage balance of approximately $831,201 and cash proceeds to the investment limited partners of $48,154. Of the total proceeds received, $15,000 will be paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $33,154 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $33,154 as of September 30, 2009. The sale of the Operating Partnership has been recognized as of September 30, 2009, but the sale proceeds were received in October 2009.
In October 2008, the investment general partner of Sioux Falls Housing Associates Two LP approved an agreement to sell the property and the transaction closed on January 29, 2009. The sales price for the property was $1,718,820, which includes the outstanding mortgage balance of approximately $776,311 and cash proceeds to the investment limited partners of $641,318. Of the total proceeds received, $15,000 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $626,318 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to $14,596. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $611,722 as of March 31, 2009. In August 2009, additional sale proceeds of $25,549 were received and returned to the cash reserves held by Series 14.
In January 2009, the investment general partner of Boston Capital Tax Credit Fund I - Series 3 and Series 14, respectively, entered into an agreement to transfer its interests in Lakewood Terrace Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $2,974,769 and cash proceeds to the investment limited partnerships of $100. Of the total proceeds received, $44 from Series 3 and $56 from Series 14, respectively, was returned to cash reserves held by Series 3 and Series 14, respectively. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a $44 and $56 gain on the transfer of the Operating Partnership for Series 3 and Series 14, respectively, has been recorded as of February 28, 2009.
Rainier Manor Associates (Rainier Manor Apartments) is a 104-unit family development located in Mount Rainier, MD. The property was constructed in 1993. At the time of construction, the general contractor installed the waterproofing system for the buildings improperly. As a result of the improper installation and subsequent slow leaks, the operating general partner recently became aware of severe structural deficiencies at the property. Two units are currently out of service, but there have been no reports of mold growth. An engineering report was conducted and estimated costs of repair are $1,300,000. The operating general partner has indicated an intention to refinance the debt and take out sufficient capital in order to make the necessary repairs. As there is a lockout period on the prepayment of the debt, the operating general partner is in negotiations with the lender to allow for early prepayment. To help expedite the negotiations, the operating general partner has not made the December or January mortgage payments, hoping to work out the issue and reduce the pre-payment penalty. The investment general partner is awaiting a response from the lender and will coordinate with the operating general partner to explore all disposition options. The property operated below breakeven in 2008 with 91% average occupancy. As of December 2009, occupancy was 82% and operations returned to above breakeven status. The Operating Partnership's 15-year low income housing tax credit compliance period expired on December 31, 2007. The investment general partner will continue to explore various disposition opportunities consistent with the investment objectives of the investment partnership.
In October 2009, the investment general partner transferred its interest in Derby Housing Associates to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,049,178 and cash proceeds to the investment limited partner of $720,000. Of the total proceeds received, $7,600 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $712,400 will be returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, was recorded in the amount of $712,400 as of December 31, 2009.
Colorado City Seniors (Colorado City Seniors Apartments) Ltd is a 24-unit elderly development located in Colorado City, Texas. Occupancy averaged 93% in 2009 and was 96% occupied as of December 31, 2009. Despite strong occupancy, the property operated below breakeven for the year. This can be attributed to an increase in maintenance costs of approximately $12,000. According to the operating general partner, the increase in maintenance expenses is due to several large windstorms over the course of the year. In 2010, the operating general partner expects operating expenses to decline and overall operations to improve back above breakeven status. All real estate tax, mortgage, and insurance payments are current.
Hughes Springs Seniors (Hughes Springs Seniors Apartments) is a 32-unit elderly development located in Hughes Springs, TX. The property performed well in 2008 with average occupancy of 93%. Average occupancy for 2009 is 91% and as of December 31, 2009, the property was 94% occupied. Despite this, the property operated below breakeven for the year. The below breakeven performance is due to an increase in operating expenses. According to the operating general partner, there was a major water leak on site in addition to tree removal and sinkhole repair costs. In 2010, the operating general partner expects operating expenses to decline and overall operations to improve back above breakeven status. The Operating Partnership's 15-year low income housing tax credit compliance period expired on December 31, 2005. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.
In December 2009, the investment general partner transferred its interest in Amherst Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,509,804 and cash proceeds to the investment limited partner of $50,000. Of the total proceeds received, $500 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $10,000 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $39,500 will be returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, was recorded in the amount of $39,500 as of December 31, 2009.
In December 2009, the investment general partner transferred its interest in Four Oaks Village LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $855,453 and cash proceeds to the investment limited partner of $93,940. Of the total proceeds received, $5,075 represents reporting fees due to an affiliate of the investment partnership; $10,050 represents a credit recovery loan due to the investment limited partner and the balance represents proceeds from the transfer. Of the remaining proceeds, $7,500 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $81,365 will be returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, was recorded in the amount of $81,365 as of December 31, 2009.
In December 2009, the investment general partner transferred its interest in Hillmont Village LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $845,720 and cash proceeds to the investment limited partner of $93,989. Of the total proceeds received, $4,380 represents reporting fees due to an affiliate of the investment partnership; $11,352 represents a credit recovery loan due to the investment limited partner and the balance represents proceeds from the transfer. Of the remaining proceeds, $7,500 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $82,109 will be returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, was recorded in the amount of $82,109 as of December 31, 2009.
In December 2009, the investment general partner transferred its interest in Oakland Village LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $816,708 and cash proceeds to the investment limited partner of $118,126. Of the total proceeds received, $1,062 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $7,500 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $109,564 will be returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, was recorded in the amount of $109,564 as of December 31, 2009.
In December 2009 the investment general partner transferred its interest in Stanardsville Village LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $559,928 and cash proceeds to the investment limited partner of $17,000. Of the total proceeds received, $6,795 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $7,500 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $2,705 will be returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, was recorded in the amount of $2,705 as of December 31, 2009.
In December 2009, the operating general partner of Village Terrace Limited Partnership entered into an agreement to sell the property and the transaction closed on January 8, 2010. The sales price of the property was $1,185,000, which includes the outstanding mortgage balance of approximately $568,565 and cash proceeds to the investment partnership of $334,852. Of the total proceeds received, $112,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $15,000 will be paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $207,852 will be returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, will be recorded in the amount of $207,852 as of March 31, 2010.
Off Balance Sheet Arrangements
None.
Principal Critical Accounting Policies and Estimates
The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), which require the Partnership to make various estimates and assumptions. The following section is a summary of some aspects of those accounting policies that may require subjective or complex judgments and are most important to the portrayal of the Partnership's financial condition and results of operations. The Partnership believes that there is a low probability that the use of different estimates or assumptions in making these judgments would result in materially different amounts being reported in the financial statements.
The Partnership is required to assess potential impairments to its long-lived assets, which are primarily investments in limited partnerships. The Partnership accounts for its investment in limited partnerships in accordance with the equity method of accounting since the Partnership does not control the operations of the Operating Partnerships. The purpose of an impairment analysis is to verify that the real estate investment balance reflected on the balance sheet does not exceed the value of the underlying investments.
If the book value of the Partnership's investment in an Operating Partnership exceeds the estimated value derived by management, which generally consists of the remaining future Low-Income Housing Credits allocable to the Partnership and the estimated residual value to the Partnership, the Partnership reduces its investment in the Operating Partnership and includes this reduction in equity in loss of investment of limited partnerships.
As of March 31, 2004, the Partnership adopted GAAP for the Consolidation of Variable Interest Entities. GAAP provides guidance on when a company should include the assets, liabilities, and activities of a variable interest entity ("VIE") in its financial statements and when it should disclose information about its relationship with a VIE. A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it absorbs the majority of the entity's expected losses, the majority of the expected returns, or both.
Based on this guidance, the Operating Partnerships in which the Partnership invests meet the definition of a VIE. However, management does not consolidate the Partnership's interests in these VIEs under this guidance, as it is not considered to be the primary beneficiary. The Partnership currently records the amount of its investment in these partnerships as an asset on its balance sheet, recognizes its share of partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in its financial statements.
The Partnership's balance in investment in Operating Partnerships, plus the risk of recapture of tax credits previously recognized on these investments, represents its maximum exposure to loss. The Partnership's exposure to loss on these partnerships is mitigated by the condition and financial performance of the underlying properties as well as the strength of the local general partners and their guarantee against credit recapture.
Recent Accounting Changes
In September 2006, the Financial Accounting Standards Board ("FASB") issued GAAP for Fair Value Measurements, which defines fair value, establishes a framework for measuring fair value and expands disclosure about fair value measurements. This guidance is effective for financial statements issued for fiscal years beginning after November 15, 2007 and shall be applied prospectively except for very limited transactions. In February 2008, the FASB delayed for one year implementation of the guidance as it pertains to certain non-financial assets and liabilities. The Partnership adopted GAAP for Fair Value Measurements effective April 1, 2008, except as it applies to those non-financial assets and liabilities, for which the effective date was April 1, 2009. The Partnership has determined that adoption of this guidance has no material impact on the Partnership's financial statements.
In February 2007, the FASB issued GAAP for The Fair Value Option for Financial Assets and Financial Liabilities. This guidance permits entities to choose to measure many financial instruments and certain other items at fair value. The fair value election is designed to improve financial reporting by providing entities with the opportunity to mitigate volatility in reported earnings caused by measuring related assets and liabilities differently without having to apply complex hedge accounting provisions. It is effective for fiscal years beginning after November 15, 2007. On April 1, 2008, the Partnership adopted GAAP for The Fair Value Option for Financial Assets and Financial Liabilities and elected not to apply the provisions to its eligible financial assets and financial liabilities on the date of adoption. Accordingly, the initial application of the guidance had no effect on the Partnership.
In June 2006, GAAP for Accounting for Uncertainty in Income Taxes, an interpretation of GAAP for Accounting for Income Taxes, was issued. This requires all taxpayers to analyze all material positions they have taken or plan to take in all tax returns that have been filed or should have been filed with all taxing authorities for all years still subject to challenge by those taxing authorities. If the position taken is "more-likely-than-not" to be sustained by the taxing authority on its technical merits and if there is more than a 50% likelihood that the position would be sustained if challenged and considered by the highest court in the relevant jurisdiction, the tax consequences of that position should be reflected in the taxpayer's GAAP financial statements. Earlier proposed interpretations of GAAP for Accounting for Income Taxes had recommended a "probable" standard for recognition of tax consequences rather than the "more-likely-than-not" standard finally adopted.
Because the Partnership has elected to be treated as a pass-through entity for income tax purposes and, as such, is not subject to income taxes, this guidance does not currently have any impact on the Partnership's financial statements.
In April 2009, the FASB issued GAAP for Interim Disclosures about Fair Value of Financial Instruments. This requires disclosure about the method and significant assumptions used to establish the fair value of financial instruments for interim reporting periods as well as annual statements. It became effective for Boston Capital Tax Credit Fund II L.P. as of and for the interim period ended June 30, 2009 and has no impact on the Partnership's financial condition or results of operations.
Recent Accounting Changes - continued
In November 2008, the FASB issued GAAP on Equity Method Investment Accounting Considerations that addresses how the initial carrying value of an equity method investment should be determined, how an impairment assessment of an underlying indefinite-lived intangible asset of an equity method investment should be performed, how an equity method investee's issuance of shares should be accounted for, and how to account for a change in an investment from the equity method to the cost method. This guidance is effective in fiscal years beginning on or after December 15, 2008, and interim periods within those fiscal years. The Partnership adopted the guidance for the interim quarterly period beginning April 1, 2009. The impact of adopting it does not have a material impact on the Partnership's financial condition or results of operations.
In May 2009, the FASB issued GAAP for Subsequent Events. It establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. It is effective for Boston Capital Tax Credit Fund II L.P. as of and for the interim period ended June 30, 2009, and has no material impact on the Partnership's financial condition or results of operations.
In June 2009, the FASB issued an amendment to the accounting and disclosure requirements for the consolidation of variable interest entities (VIEs). The amended guidance modifies the consolidation model to one based on control and economics, and replaces the current quantitative primary beneficiary analysis with a qualitative analysis. The primary beneficiary of a VIE will be the entity that has (1) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party will be required to consolidate the VIE. Further, the amended guidance requires continual reconsideration of the primary beneficiary of a VIE and adds an additional reconsideration event for determination of whether an entity is a VIE. Additionally, the amendment requires enhanced and expanded disclosures around VIEs. This amendment is effective for fiscal years beginning after November 15, 2009. The adoption of this guidance will not have a material effect on the Partnership's financial statements.
In June 2009, the FASB issued the Accounting Standards Codification (Codification). Effective July 1, 2009, the Codification is the single source of authoritative accounting principles recognized by the FASB to be applied by non-governmental entities in the preparation of financial statements in conformity with GAAP. The Codification is intended to reorganize, rather than change, existing GAAP. Accordingly, all references to currently existing GAAP have been removed and have been replaced with plain English explanations of the Partnership's accounting policies. The adoption of the Codification did not have a material impact on the Partnership's financial position or results of operations.
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Item 3 |
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Not Applicable |
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Item 4T |
Controls & Procedures |
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(a) |
Evaluation of Disclosure Controls and Procedures |
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As of the end of the period covered by this report, the Partnership's general partner, under the supervision and with the participation of the Principal Executive Officer and Principal Financial Officer of C&M Management Inc., carried out an evaluation of the effectiveness of the Partnership's "disclosure controls and procedures" as defined in under the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15. Based on that evaluation, the Partnership's Principal Executive Officer and Principal Financial Officer have concluded that as of the end of the period covered by this report, the Partnership's disclosure controls and procedures were effective to ensure that information required to be disclosed by it in the reports that it files or submits under the Securities Exchange Act of 1934 (i) is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and (ii) is accumulated and communicated to the Partnership's management, including the Partnership's Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. |
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(b) |
Changes in Internal Controls |
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There were no changes in the Partnership's internal control over financial reporting that occurred during the quarter ended December 31, 2009 that materially affected, or are reasonably likely to materially affect, the Partnership's internal control over financial reporting. |
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PART II - OTHER INFORMATION
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Item 1. |
Legal Proceedings |
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None |
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Item 1A. |
Risk Factors |
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There have been no material changes from the risk factors set forth under Part I, Item 1A. "Risk Factors" in our Form 10-K for the fiscal year ended March 31, 2009. |
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Item 2. |
Unregistered Sales of Equity Securities and Use of Proceeds |
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None |
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Item 3. |
Defaults upon Senior Securities |
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None |
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Item 4. |
Submission of Matters to a Vote of Security |
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None |
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Item 5. |
Other Information |
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None |
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Item 6. |
Exhibits |
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(a)Exhibits |
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31.a Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herein |
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31.b Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herein |
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32.a Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herein |
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32.b Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herein |
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SIGNATURES
Pursuant to the requirements of Section 13 of the Securities
Exchange Act of 1934, the Partnership has duly caused this Report to be
signed on its behalf by the undersigned, thereunto duly authorized.
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Boston Capital Tax Credit Fund II Limited Partnership |
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By: |
Boston Capital Associates II Limited |
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By: |
BCA Associates Limited Partnership, |
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By: |
C&M Management, Inc., |
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Date: February 16, 2010 |
/s/ John P. Manning |
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John P. Manning |
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Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons on
behalf of the Partnership and in the capacities and on the dates
indicated:
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DATE: |
SIGNATURE: |
TITLE: |
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February 16, 2010 |
/s/ John P. Manning John P. Manning |
Director, President |
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DATE: |
SIGNATURE: |
TITLE: |
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February 16, 2010 |
/s/ Marc N. Teal Marc N. Teal |
Chief Financial Officer |