Attached files
file | filename |
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EXCEL - IDEA: XBRL DOCUMENT - BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIP | Financial_Report.xls |
EX-32 - BCTC II CERTIFICATION 906 - BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIP | b21212cert906jpm.htm |
EX-31 - BCTC II CERTIFICATION 302 - BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIP | b21212cert302mnt.htm |
EX-32 - BCTC II CERTIFICATION 906 - BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIP | b21212cert906mnt.htm |
EX-31 - BCTC II CERTIFICATION 302 - BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIP | b21212cert302jpm.htm |
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, 2012
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 LIMITED PARTNERSHIP
(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 ý |
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 the definitions 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 LIMITED PARTNERSHIP
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED December 31, 2012
TABLE OF CONTENTS
FOR THE QUARTER ENDED DECEMBER 31, 2012
Part I. Financial information
Item 1. CONDENSED FINANCIAL STATEMENTS
CONDENSED Balance Sheets 4
Condensed Balance Sheets Series 7 5
Condensed Balance Sheets Series 9 6
Condensed Balance Sheets Series 10 7
Condensed Balance Sheets Series 11 8
Condensed Balance Sheets Series 12 9
Condensed Balance Sheets Series 14 10
CONDENSED Statements of Operations three months 11
Condensed Statements of Operations Three Months Series 7
12Condensed Statements of Operations Three Months Series 9
13Condensed Statements of Operations Three Months Series 10
14Condensed Statements of Operations Three Months Series 11 15
Condensed Statements of Operations Three Months Series 12 16
Condensed Statements of Operations Three Months Series 14 17
CONDENSED Statements of Operations NINE months 18
Condensed Statements of Operations Nine Months Series 7 19
Condensed Statements of Operations Nine Months Series 9 20
Condensed Statements of Operations Nine Months Series 10 21
Condensed Statements of Operations Nine Months Series 11 22
Condensed Statements of Operations Nine Months Series 12 23
Condensed Statements of Operations Nine Months Series 14 24
CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT) 25
Condensed Statements of Changes in Partners' Capital (Deficit) Series 7 26
Condensed Statements of Changes in Partners' Capital (Deficit) Series 9 26
Condensed Statements of Changes in Partners' Capital (Deficit) Series 10 27
Condensed Statements of Changes in Partners' Capital (Deficit) Series 11 27
Condensed Statements of Changes in Partners' Capital (Deficit) Series 12 28
Condensed Statements of Changes in Partners' Capital (Deficit) Series 14 28
CONDENSED Statements of Cash Flows 29
Condensed Statements of Cash Flows Series 7 30
Condensed Statements of Cash Flows Series 9 31
Condensed Statements of Cash Flows Series 10 32
Condensed Statements of Cash Flows Series 11 33
Condensed Statements of Cash Flows Series 12 34
Condensed Statements of Cash Flows Series 14 35
BOSTON CAPITAL TAX CREDIT FUND II LIMITED PARTNERSHIP
QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED DECEMBER 31, 2012
TABLE OF CONTENTS (CONTINUED)
Notes to CONDENSED Financial Statements 36
Note A Organization 36
Note B Accounting and financial reporting policies 36
Note C Related Party Transactions 37
Note D Investments in operating partnerships 39
COMBINED CONDENSED summarized STATEMENTS OF OPERATIONs 41
Combined Condensed Summarized Statements of Operations Series 7 42
Combined Condensed Summarized Statements of Operations Series 9 43
Combined Condensed Summarized Statements of Operations Series 10 44
Combined Condensed Summarized Statements of Operations Series 11 45
Combined Condensed Summarized Statements of Operations Series 12 46
Combined Condensed Summarized Statements of Operations Series 14 47
Note E Taxable Loss 48
Note F Income Taxes 48
Note G Plan of Liquidation 49
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 50
Liquidity 50
Capital Resources 51
Results of Operations 52
Critical Accounting Policies and Estimates 71
Recent Accounting Changes 72
Item 3. Quantitative and Qualitative Disclosures About Market Risk 72
Item 4. Controls and Procedures 72
Part II Other Information 73
Item 1. Legal Proceedings 73
Item 1A. Risk Factors 73
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 73
Item 3. Defaults Upon Senior Securities 73
Item 4. Mine Safety Disclosures 73
Item 5. Other Information 73
Item 6. Exhibits 73
Signatures 74
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED BALANCE SHEETS
(Unaudited)
|
December 31, |
March 31, |
||
ASSETS |
||||
Cash and cash equivalents |
$ 1,318,782 |
$ 1,302,447 |
||
Other assets |
157,200 |
342,718 |
||
$ 1,475,982 |
$ 1,645,165 |
|||
LIABILITIES |
||||
Accounts payable |
$ 88,800 |
$ 42,600 |
||
Accounts payable affiliates (Note C) |
20,519,941 |
20,842,344 |
||
Capital contributions payable (Note D) |
169,974 |
169,974 |
||
20,778,715 |
21,054,918 |
|||
PARTNERS' CAPITAL (DEFICIT) |
||||
Assignees |
||||
|
Units of limited partnership |
|
|
|
General Partner |
(1,573,963) |
(1,575,033) |
||
(19,302,733) |
(19,409,753) |
|||
$ 1,475,982 |
$ 1,645,165 |
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED BALANCE SHEETS
(Unaudited)
Series 7
|
December 31, |
March 31, |
|
ASSETS |
|
|
|
Cash and cash equivalents |
$ - |
$ - |
|
Other assets |
- |
- |
|
|
$ - |
$ - |
|
LIABILITIES |
|||
Accounts payable |
$ - |
$ - |
|
Accounts payable affiliates (Note C) |
- |
- |
|
Capital contributions payable (Note D) |
- |
- |
|
- |
- |
||
PARTNERS' CAPITAL (DEFICIT) |
|||
Assignees |
|||
|
Units of limited partnership |
|
|
General Partner |
84,506 |
84,506 |
|
- |
- |
||
$ - |
$ - |
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED BALANCE SHEETS
(Unaudited)
Series 9
|
December 31, |
March 31, |
||
ASSETS |
|
|
||
Cash and cash equivalents |
$ 132,820 |
$ 316,051 |
||
Other assets |
- |
- |
||
$ 132,820 |
$ 316,051 |
|||
LIABILITIES |
||||
|
Accounts payable |
$ 32,900 |
$ 35,000 |
|
Accounts payable affiliates (Note C) |
6,394,829 |
6,676,676 |
||
|
Capital contributions payable (Note D) |
- |
- |
|
|
|
|||
PARTNERS' CAPITAL (DEFICIT) |
||||
Assignees |
||||
|
Units of limited partnership |
|
|
|
General Partner |
(397,787) |
(398,794) |
||
(6,294,909) |
(6,395,625) |
|||
$ 132,820 |
$ 316,051 |
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED BALANCE SHEETS
(Unaudited)
Series 10
|
December 31, |
March 31, |
||
ASSETS |
|
|
||
Cash and cash equivalents |
$ 153,767 |
$ 250,847 |
||
Other assets |
- |
339,418 |
||
$ 153,767 |
$ 590,265 |
|||
LIABILITIES |
||||
|
Accounts payable |
$ - |
$ - |
|
|
Accounts payable affiliates (Note C) |
2,011,409 |
2,357,127 |
|
|
Capital contributions payable (Note D) |
- |
- |
|
2,011,409 |
2,357,127 |
|||
PARTNERS' CAPITAL (DEFICIT) |
||||
Assignees |
||||
|
Units of limited partnership |
|
|
|
General Partner |
(213,489) |
(212,581) |
||
(1,857,642) |
(1,766,862) |
|||
$ 153,767 |
$ 590,265 |
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED BALANCE SHEETS
(Unaudited)
Series 11
|
December 31, |
March 31, |
||
ASSETS |
|
|
||
|
Cash and cash equivalents |
$ 144,358 |
$ 205,808 |
|
Other assets |
- |
- |
||
$ 144,358 |
$ 205,808 |
|||
LIABILITIES |
||||
|
Accounts payable |
$ - |
$ - |
|
|
Accounts payable affiliates (Note C) |
1,037,734 |
998,760 |
|
|
Capital contributions payable (Note D) |
- |
- |
|
1,037,734 |
998,760 |
|||
PARTNERS' CAPITAL (DEFICIT) |
||||
Assignees |
||||
|
Units of limited partnership |
|
|
|
General Partner |
(223,618) |
(222,614) |
||
(893,376) |
(792,952) |
|||
$ 144,358 |
$ 205,808 |
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED BALANCE SHEETS
(Unaudited)
Series 12
|
December 31, |
March 31, |
||
ASSETS |
|
|
||
|
Cash and cash equivalents |
$ 351,064 |
$ 170,287 |
|
Other assets |
- |
- |
||
|
$ 351,064 |
$ 170,287 |
||
LIABILITIES |
||||
Accounts payable |
$ 18,500 |
$ 7,500 |
||
Accounts payable affiliates (Note C) |
3,979,702 |
3,884,690 |
||
Capital contributions payable (Note D) |
9,241 |
9,241 |
||
4,007,443 |
3,901,431 |
|||
PARTNERS' CAPITAL (DEFICIT) |
||||
Assignees |
||||
|
Units of limited partnership |
|
|
|
General Partner |
(287,694) |
(288,442) |
||
(3,656,379) |
(3,731,144) |
|||
$ 351,064 |
$ 170,287 |
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED BALANCE SHEETS
(Unaudited)
Series 14
|
December 31, |
March 31, |
||
ASSETS |
|
|
||
|
Cash and cash equivalents |
$ 536,773 |
$ 359,454 |
|
Other assets |
157,200 |
3,300 |
||
$ 693,973 |
$ 362,754 |
|||
|
|
|||
LIABILITIES |
|
|
||
|
Accounts payable |
$ 37,400 |
$ 100 |
|
|
Accounts payable affiliates (Note C) |
7,096,267 |
6,925,091 |
|
Capital contributions payable (Note D) |
160,733 |
160,733 |
||
7,294,400 |
7,085,924 |
|||
|
|
|
||
PARTNERS' CAPITAL (DEFICIT) |
|
|
||
|
|
|
||
Assignees |
|
|
||
|
Units of limited partnership |
|
|
|
General Partner |
(535,881) |
(537,108) |
||
(6,600,427) |
(6,723,170) |
|||
$ 693,973 |
$ 362,754 |
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
|
|
||
|
|
|
|
Income |
|
|
|
|
Interest income |
$ 285 |
$ 638 |
Other income |
1,526 |
1,256 |
|
|
1,811 |
1,894 |
|
Share of income from Operating |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Professional fees |
1,621 |
8,701 |
|
Partnership management fee, net (Note C) |
94,406 |
127,366 |
|
General and administrative expenses |
42,701 |
45,369 |
|
|
|
|
|
NET INCOME(LOSS) |
$ 239,691 |
$ 131,324 |
|
Net income(loss) allocated to assignees |
$ 237,294 |
$ 130,012 |
|
|
Net income(loss) allocated to general partner |
$ 2,397 |
$ 1,312 |
Net income(loss) per BAC |
$ .01 |
$ .01 |
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 7
|
|
||
|
|
|
|
Income |
|||
Interest income |
$ - |
$ - |
|
|
Other income |
- |
- |
- |
- |
||
Share of income from Operating |
|
|
|
Expenses |
|||
|
|||
Professional fees |
- |
- |
|
Partnership management fee, net (Note C) |
- |
- |
|
|
General and administrative expenses |
- |
- |
|
|
|
|
NET INCOME(LOSS) |
$ - |
$ - |
|
Net income(loss) allocated to assignees |
$ - |
$ - |
|
|
Net income(loss) allocated to general partner |
$ - |
$ |
Net income(loss) per BAC |
$ - |
$ - |
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 9
|
|
||
|
|
|
|
Income |
|
|
|
|
Interest income |
$ 44 |
$ 74 |
|
Other income |
5 |
327 |
|
49 |
401 |
|
Share of income from Operating |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Professional fees |
110 |
1,780 |
|
Partnership management fee, net (Note C) |
21,283 |
(14,067) |
|
General and administrative expenses |
7,901 |
17,512 |
|
|
|
|
|
NET INCOME(LOSS) |
$ (29,245) |
$ 133,184 |
|
|
|
|
|
Net income(loss) allocated to assignees |
$ (28,953) |
$ 131,852 |
|
|
Net income(loss) allocated to general partner |
$ (292) |
$ 1,332 |
Net income(loss) per BAC |
$ (.01) |
$ .03 |
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 10
|
|
||
Income |
|||
|
Interest income |
$ 42 |
$ 131 |
Other income |
- |
112 |
|
42 |
243 |
||
Share of income from Operating |
|
|
|
Expenses |
|||
|
|||
Professional fees |
379 |
1,388 |
|
Partnership management fee, net (Note C) |
22,094 |
22,998 |
|
General and administrative expenses |
6,933 |
5,530 |
|
|
|
|
|
NET INCOME(LOSS) |
$ (29,364) |
$ (29,673) |
|
Net income(loss) allocated to assignees |
$ (29,070) |
$ (29,376) |
|
|
Net income(loss) allocated to general partner |
$ (294) |
$ (297) |
Net income(loss) per BAC |
$ (.01) |
$ (.01) |
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 11
|
|
||
|
|
|
|
Income |
|
|
|
|
Interest income |
$ 37 |
$ 106 |
|
Other income |
- |
112 |
37 |
218 |
||
Share of income from Operating |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Professional fees |
18 |
1,387 |
|
Partnership management fee, net (Note C) |
17,577 |
27,641 |
|
General and administrative expenses |
6,660 |
5,245 |
|
|
|
|
|
|
|
|
|
NET INCOME(LOSS) |
$ (24,218) |
$ (34,055) |
|
|
|
|
|
|
Net income(loss) allocated to assignees |
$ (23,976) |
$ (33,714) |
|
|
|
|
Net income(loss) allocated to general partner |
$ (242) |
$ (341) |
|
|
|
|
|
Net income(loss) per BAC |
$ (.01) |
$ (.01) |
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 12
|
|
||
|
|
|
|
Income |
|
|
|
|
Interest income |
$ 48 |
$ 103 |
|
Other income |
1,152 |
148 |
1,200 |
251 |
||
Share of income from Operating |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Professional fees |
278 |
1,817 |
|
Partnership management fee, net (Note C) |
(2,073) |
31,628 |
|
General and administrative expenses |
8,177 |
6,484 |
|
|
|
|
|
|
|
|
|
NET INCOME(LOSS) |
|
|
|
|
|
|
|
Net income(loss) allocated to assignees |
$ 136,250 |
$ (39,281) |
|
|
Net income(loss) allocated to general partner |
$ 1,376 |
$ (397) |
Net income(loss) per BAC |
$ .05 |
$ (.01) |
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF OPERATIONS
Three Months Ended December 31,
(Unaudited)
Series 14
|
|
||
|
|
|
|
Income |
|
|
|
|
Interest income |
$ 114 |
$ 224 |
|
Other income |
369 |
557 |
|
483 |
781 |
|
Share of income from Operating |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|||
Professional fees |
836 |
2,329 |
|
Partnership management fee, net (Note C) |
35,525 |
59,166 |
|
|
General and administrative expenses |
13,030 |
10,598 |
|
|
|
|
|
|
|
|
NET INCOME(LOSS) |
$ 184,892 |
$ 101,546 |
|
|
|
|
|
Net income(loss) allocated to assignees |
$ 183,043 |
$ 100,531 |
|
|
Net income(loss) allocated to general partner |
$ 1,849 |
$ 1,015 |
Net income(loss) per BAC |
$ .03 |
$ .02 |
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
|
|
||
|
|
|
|
Income |
|
|
|
|
Interest income |
$ 1,029 |
$ 3,480 |
Other income |
23,916 |
17,049 |
|
|
24,945 |
20,529 |
|
Share of income from Operating |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Professional fees |
123,791 |
135,100 |
|
Partnership management fee, net (Note C) |
383,870 |
478,508 |
|
General and administrative expenses |
87,322 |
81,027 |
|
|
|
|
|
NET INCOME(LOSS) |
$ 107,020 |
$ 272,555 |
|
Net income(loss) allocated to assignees |
$ 105,950 |
$ 269,829 |
|
|
Net income(loss) allocated to general partner |
$ 1,070 |
$ 2,726 |
Net income(loss) per BAC |
$ .01 |
$ .01 |
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 7
|
|
||
|
|
|
|
Income |
|||
Interest income |
$ - |
$ - |
|
|
Other income |
- |
- |
- |
- |
||
Share of income from Operating |
|
|
|
Expenses |
|||
|
|||
Professional fees |
- |
- |
|
Partnership management fee, net (Note C) |
- |
- |
|
|
General and administrative expenses |
- |
- |
|
|
|
|
NET INCOME(LOSS) |
$ - |
$ - |
|
Net income(loss) allocated to assignees |
$ - |
$ - |
|
|
Net income(loss) allocated to general partner |
$ - |
$ |
Net income(loss) per BAC |
$ - |
$ - |
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 9
|
|
||
|
|
|
|
Income |
|
|
|
|
Interest income |
$ 220 |
$ 352 |
|
Other income |
682 |
330 |
|
902 |
682 |
|
Share of income from Operating |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Professional fees |
22,413 |
24,112 |
|
Partnership management fee, net (Note C) |
59,284 |
63,737 |
|
General and administrative expenses |
16,433 |
25,818 |
|
|
|
|
|
NET INCOME(LOSS) |
$ 100,716 |
$ 165,023 |
|
|
|
|
|
Net income(loss) allocated to assignees |
$ 99,709 |
$ 163,373 |
|
|
Net income(loss) allocated to general partner |
$ 1,007 |
$ 1,650 |
Net income(loss) per BAC |
$ .02 |
$ .04 |
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 10
|
|
||
Income |
|||
|
Interest income |
$ 235 |
$ 493 |
Other income |
3,790 |
2,886 |
|
4,025 |
3,379 |
||
Share of income from Operating |
|
|
|
Expenses |
|||
|
|||
Professional fees |
18,021 |
20,141 |
|
Partnership management fee, net (Note C) |
62,213 |
62,005 |
|
General and administrative expenses |
14,571 |
11,367 |
|
|
|
|
|
NET INCOME(LOSS) |
$ (90,780) |
$ (90,134) |
|
Net income(loss) allocated to assignees |
$ (89,872) |
$ (89,233) |
|
|
Net income(loss) allocated to general partner |
$ (908) |
$ (901) |
Net income(loss) per BAC |
$ (.04) |
$ (.04) |
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 11
|
|
||
|
|
|
|
Income |
|
|
|
|
Interest income |
$ 137 |
$ 767 |
|
Other income |
4,019 |
3,020 |
4,156 |
3,787 |
||
Share of income from Operating |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Professional fees |
20,486 |
21,510 |
|
Partnership management fee, net (Note C) |
70,107 |
74,260 |
|
General and administrative expenses |
13,987 |
10,847 |
|
|
|
|
|
|
|
|
|
NET INCOME(LOSS) |
$(100,424) |
$ (48,449) |
|
|
|
|
|
|
Net income(loss) allocated to assignees |
$ (99,420) |
$ (47,965) |
|
|
|
|
Net income(loss) allocated to general partner |
$ (1,004) |
$ (484) |
|
|
|
|
|
Net income(loss) per BAC |
$ (.04) |
$ (.02) |
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 12
|
|
||
|
|
|
|
Income |
|
|
|
|
Interest income |
$ 132 |
$ 755 |
|
Other income |
1,188 |
1,300 |
1,320 |
2,055 |
||
Share of income from Operating |
|
|
|
|
|
|
|
Expenses |
|
|
|
|
|
|
|
Professional fees |
23,211 |
27,329 |
|
Partnership management fee, net (Note C) |
47,050 |
84,077 |
|
General and administrative expenses |
16,394 |
12,864 |
|
|
|
|
|
|
|
|
|
NET INCOME(LOSS) |
|
|
|
|
|
|
|
Net income(loss) allocated to assignees |
$ 74,017 |
$ (77,337) |
|
|
Net income(loss) allocated to general partner |
$ 748 |
$ (781) |
Net income(loss) per BAC |
$ .02 |
$ (.03) |
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF OPERATIONS
Nine Months Ended December 31,
(Unaudited)
Series 14
|
|
||
|
|
|
|
Income |
|
|
|
|
Interest income |
$ 305 |
$ 1,113 |
|
Other income |
14,237 |
9,513 |
|
14,542 |
10,626 |
|
Share of income from Operating |
|
570,175 |
|
|
|
|
|
Expenses |
|
|
|
|
|||
Professional fees |
39,660 |
42,008 |
|
Partnership management fee, net (Note C) |
145,216 |
194,429 |
|
|
General and administrative expenses |
25,937 |
20,131 |
|
|
|
|
|
|
|
|
NET INCOME(LOSS) |
$ 122,743 |
$ 324,233 |
|
|
|
|
|
Net income(loss) allocated to assignees |
$ 121,516 |
$ 320,991 |
|
|
Net income(loss) allocated to general partner |
$ 1,227 |
$ 3,242 |
Net income(loss) per BAC |
$ .02 |
$ .06 |
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Nine Months Ended December 31,
(Unaudited)
|
|
|
|
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
Net income(loss) |
105,950 |
1,070 |
107,020 |
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Nine Months Ended December 31,
(Unaudited)
|
|
General |
Total |
Series 7 |
|
|
|
Partners' capital |
|
|
|
|
|
|
|
Net income(loss) |
- |
- |
- |
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
|
|
|
Series 9 |
|
|
|
Partners' capital |
|
|
|
|
|
|
|
Net income(loss) |
99,709 |
1,007 |
100,716 |
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Nine Months Ended December 31,
(Unaudited)
|
|
General |
Total |
Series 10 |
|
|
|
Partners' capital |
|
|
|
|
|
|
|
Net income(loss) |
(89,872) |
(908) |
(90,780) |
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
|
|
|
Series 11 |
|
|
|
Partners' capital |
|
|
|
|
|
|
|
Net income(loss) |
(99,420) |
(1,004) |
(100,424) |
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)
Nine Months Ended December 31,
(Unaudited)
|
|
General |
Total |
Series 12 |
|
|
|
Partners' capital |
|
|
|
|
|
|
|
Net income(loss) |
74,017 |
748 |
74,765 |
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
|
|
|
|
Series 14 |
|
|
|
Partners' capital |
|
|
|
|
|
|
|
Net income(loss) |
121,516 |
1,227 |
122,743 |
|
|
|
|
Partners' capital |
|
|
|
|
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
|
2012 |
2011 |
||
Cash flows from operating activities: |
|
|
||
|
|
|
||
Net Income(loss) |
$ 107,020 |
$ 272,555 |
||
Adjustments to reconcile net income |
|
|
||
Share of Income from Operating |
|
|
||
Changes in assets and liabilities |
|
|
||
(Decrease) Increase in accounts |
|
57,805 |
||
Decrease (Increase) in other assets |
185,518 |
- |
||
(Decrease) Increase in accounts |
|
|
||
|
|
|
||
Net cash (used in) provided by |
|
|
||
|
|
|
||
Cash flows from investing activities: |
|
|
||
|
|
|
||
Proceeds from the disposition of |
|
|
||
|
|
|
||
Net cash provided by |
|
|
||
|
|
|
||
INCREASE (DECREASE) IN CASH AND |
16,335 |
(75,639) |
||
|
|
|
||
Cash and cash equivalents, beginning |
1,302,447 |
1,618,141 |
||
|
|
|
||
Cash and cash equivalents, ending |
$ 1,318,782 |
$ 1,542,502 |
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 7
|
2012 |
2011 |
Cash flows from operating activities: |
|
|
|
|
|
Net Income(loss) |
$ - |
$ - |
Adjustments to reconcile net income |
|
|
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: |
|
|
|
|
|
Proceeds from the disposition of |
|
|
|
|
|
Net cash provided by |
|
|
|
|
|
INCREASE (DECREASE) IN CASH AND |
|
|
|
|
|
Cash and cash equivalents, beginning |
- |
- |
|
|
|
Cash and cash equivalents, ending |
$ - |
$ - |
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 9
|
2012 |
2011 |
Cash flows from operating activities: |
|
|
|
|
|
Net Income(loss) |
$ 100,716 |
$ 165,023 |
Adjustments to reconcile net income |
|
|
Share of Income from Operating |
|
|
Changes in assets and liabilities |
|
|
(Decrease) Increase in accounts |
|
42,805 |
Decrease (Increase) in other assets |
- |
- |
(Decrease) Increase in accounts |
|
|
|
|
|
Net cash (used in) provided by |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
Proceeds from the disposition of |
|
|
|
|
|
Net cash provided by |
|
|
|
|
|
INCREASE (DECREASE) IN CASH AND |
|
257,885 |
|
|
|
Cash and cash equivalents, beginning |
316,051 |
71,556 |
|
|
|
Cash and cash equivalents, ending |
$ 132,820 |
$ 329,441 |
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 10
|
2012 |
2011 |
Cash flows from operating activities: |
|
|
|
|
|
Net Income(loss) |
$ (90,780) |
$ (90,134) |
Adjustments to reconcile net income |
|
|
Share of Income from Operating |
|
|
Changes in assets and liabilities |
|
|
(Decrease) Increase in accounts |
|
|
Decrease (Increase) in other assets |
339,418 |
- |
(Decrease) Increase in accounts |
|
|
|
|
|
Net cash (used in) provided by |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
Proceeds from the disposition of |
|
|
|
|
|
Net cash provided by |
|
|
|
|
|
INCREASE (DECREASE) IN CASH AND |
(97,080) |
(17,468) |
|
|
|
Cash and cash equivalents, beginning |
250,847 |
270,086 |
|
|
|
Cash and cash equivalents, ending |
$ 153,767 |
$ 252,618 |
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 11
|
2012 |
2011 |
Cash flows from operating activities: |
|
|
|
|
|
Net Income(loss) |
$ (100,424) |
$ (48,449) |
Adjustments to reconcile net income |
|
|
Share of Income from Operating |
|
(54,381) |
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: |
|
|
|
|
|
Proceeds from the disposition of |
|
54,381 |
|
|
|
Net cash provided by |
|
54,381 |
|
|
|
INCREASE (DECREASE) IN CASH AND |
|
|
|
|
|
Cash and cash equivalents, beginning |
205,808 |
465,155 |
|
|
|
Cash and cash equivalents, ending |
$ 144,358 |
$ 205,680 |
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 12
|
2012 |
2011 |
Cash flows from operating activities: |
|
|
|
|
|
Net Income(loss) |
$ 74,765 |
$ (78,118) |
Adjustments to reconcile net income |
|
|
Share of Income from Operating |
(160,100) |
(44,097) |
Changes in assets and liabilities |
|
|
(Decrease) Increase in accounts |
|
(15,000) |
Decrease (Increase) in other assets |
- |
- |
(Decrease) Increase in accounts |
|
|
|
|
|
Net cash (used in) provided by |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
Proceeds from the disposition of |
|
44,097 |
|
|
|
Net cash provided by |
|
44,097 |
|
|
|
INCREASE (DECREASE) IN CASH AND |
|
(295,234) |
|
|
|
Cash and cash equivalents, beginning |
170,287 |
479,986 |
|
|
|
Cash and cash equivalents, ending |
$ 351,064 |
$ 184,752 |
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
STATEMENTS OF CASH FLOWS
Nine Months Ended December 31,
(Unaudited)
Series 14
|
2012 |
2011 |
Cash flows from operating activities: |
|
|
|
|
|
Net Income(loss) |
$ 122,743 |
$ 324,233 |
Adjustments to reconcile net income |
|
|
Share of Income from Operating |
|
(570,175) |
Changes in assets and liabilities |
|
|
(Decrease) Increase in accounts |
|
30,000 |
Decrease (Increase) in other assets |
(153,900) |
- |
(Decrease) Increase in accounts |
|
|
|
|
|
Net cash (used in) provided by |
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
570,175 |
|
|
|
|
Net cash provided by |
|
570,175 |
|
|
|
INCREASE (DECREASE) IN CASH AND |
|
238,653 |
|
|
|
Cash and cash equivalents, beginning |
359,454 |
331,358 |
|
|
|
Cash and cash equivalents, ending |
$ 536,773 |
$ 570,011 |
|
|
|
The accompanying notes are an integral part of these condensed statements
Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO CONDENSED FINANCIAL STATEMENTS
December 31, 2012
(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. As of December 31, 2012 1,036,100 BACs in Series 7, 4,176,329 BACs in Series 9, 2,423,225 BACs in Series 10, 2,489,599 BACs in Series 11, 2,971,795 BACs in Series 12, and 5,574,290 BACs in Series 14 are outstanding. 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, 2012 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 CONDENSED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2012
(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's Annual Report on Form 10-K for the fiscal year ended March 31, 2012.
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, 2012 and 2011 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 CONDENSED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2012
(Unaudited)
NOTE C - RELATED PARTY TRANSACTIONS (continued)
The partnership management fee accrued for the quarters ended December 31, 2012 and 2011 are as follows:
|
2012 |
2011 |
$ - |
$ - |
|
Series 9 |
21,843 |
41,481 |
Series 10 |
23,094 |
24,222 |
Series 11 |
29,658 |
29,658 |
Series 12 |
30,474 |
32,628 |
Series 14 |
65,814 |
83,358 |
|
|
|
|
$ 170,883 |
$ 211,347 |
The partnership management fee paid for the quarters ended December 31, 2012 and 2011 are as follows:
|
2012 |
2011 |
Series 7 |
$ - |
$ - |
Series 9 |
- |
- |
Series 10 |
- |
- |
Series 11 |
- |
- |
Series 12 |
- |
- |
Series 14 |
- |
- |
|
|
|
|
$ - |
$ - |
The partnership management fee paid for the nine months ended December 31, 2012 and 2011 are as follows:
|
2012 |
2011 |
Series 7 |
$ - |
$ - |
Series 9 |
368,125 |
85,000 |
Series 10 |
415,000 |
- |
Series 11 |
50,000 |
300,000 |
Series 12 |
- |
300,000 |
Series 14 |
52,625 |
375,000 |
|
|
|
|
$ 885,750 |
$ 1,060,000 |
Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2012
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS
At December 31, 2012, and 2011 the Partnership had limited partnership interests in 96 and 119 Operating Partnerships, respectively, which own apartment complexes. The number of Operating Partnerships in which the Partnership had limited partnership interests at December 31, 2012 and 2011 by series is as follows:
|
2012 |
2011 |
- |
- |
|
Series 9 |
12 |
18 |
Series 10 |
15 |
16 |
Series 11 |
16 |
16 |
Series 12 |
21 |
23 |
Series 14 |
32 |
46 |
|
|
|
|
96 |
119 |
|
|
|
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, 2012 and 2011 by series are as
follows:
|
2012 |
2011 |
Series 7 |
$ - |
$ - |
Series 9 |
- |
- |
Series 10 |
- |
- |
Series 11 |
- |
- |
Series 12 |
9,241 |
9,241 |
Series 14 |
160,733 |
160,733 |
|
|
|
|
$169,974 |
$169,974 |
|
|
|
Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2012
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS - Continued
During the nine months ended December 31, 2012, the Partnership disposed of twenty-two Operating Partnerships and received additional proceeds from one Operating Partnership disposed of in the prior year. A summary of the disposition by Series for December 31, 2012 is as follows:
|
Operating Partnership Interest Transferred |
|
Sale of Underlying Operating Partnership |
|
Partnership Proceeds from Disposition * |
|
Gain/(Loss) on Disposition |
||
Series 7 |
- |
|
- |
|
$ |
- |
|
$ |
- |
Series 9 |
5 |
|
1 |
|
|
197,944 |
|
|
197,944 |
Series 10 |
- |
|
- |
|
|
- |
|
|
- |
Series 11 |
- |
|
- |
|
|
- |
|
|
- |
Series 12 |
1 |
|
1 |
|
|
160,100 |
|
|
160,100 |
Series 14 |
13 |
|
1 |
|
|
319,014 |
|
|
319,014 |
Total |
19 |
|
3 |
|
$ |
677,058 |
|
$ |
677,058 |
* Fund proceeds from disposition include $153,800 recorded as a receivable as of December 31, 2012, in Series 14. The proceeds also include $50,000 from a prior year disposition in Series 14.
During the nine months ended December 31, 2011, the Partnership disposed of eleven Operating Partnerships and received additional proceeds from two Operating Partnerships disposed of in the prior year. A summary of the dispositions by Series for December 31, 2011 is as follows:
|
Operating Partnership Interest Transferred |
|
Sale of Underlying Operating Partnership |
|
Partnership Proceeds from Disposition |
|
Gain/(Loss) on Disposition |
||
Series 7 |
- |
|
- |
|
$ |
- |
|
$ |
- |
Series 9 |
6 |
|
- |
|
|
278,008 |
|
|
278,008 |
Series 10 |
- |
|
- |
|
|
- |
|
|
- |
Series 11 |
- |
|
- |
|
|
54,381 |
|
|
54,381 |
Series 12 |
- |
|
- |
|
|
44,097 |
|
|
44,097 |
Series 14 |
4 |
|
1 |
|
|
570,175 |
|
|
570,175 |
Total |
10 |
|
1 |
|
$ |
946,661 |
|
$ |
946,661 |
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, 2012.
Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2012
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
|
2012 |
2011 |
|
|
|
|
|
Revenues |
|
|
|
|
Rental |
$ 14,855,559 |
$ 17,215,819 |
|
Interest and other |
608,475 |
501,110 |
|
15,464,034 |
17,716,929 |
|
|
|
|
|
Expenses |
|
|
|
|
Interest |
2,495,698 |
2,683,849 |
|
Depreciation and amortization |
3,555,057 |
4,095,899 |
Operating expenses |
10,813,834 |
12,634,465 |
|
|
16,864,589 |
19,414,213 |
|
|
|
|
|
NET LOSS |
$ (1,400,555) |
$(1,697,284) |
|
|
|
|
|
|
Net loss allocated to Boston Capital |
|
|
|
|
|
|
|
|
|
|
|
Net loss allocated to other partners |
$ (14,005) |
$ (16,972) |
|
|
|
*Amounts include $1,386,550 and $1,680,312 for 2012 and 2011, 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 CONDENSED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2012
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 7
|
2012 |
2011 |
|
|
|
|
|
Revenues |
|
|
|
|
Rental |
$ - |
$ - |
|
Interest and other |
- |
- |
|
- |
- |
|
|
|
|
|
Expenses |
|
|
|
|
Interest |
- |
- |
|
Depreciation and amortization |
- |
- |
Operating expenses |
- |
- |
|
|
- |
- |
|
|
|
|
|
NET LOSS |
$ - |
$ - |
|
|
|
|
|
|
Net loss allocated to Boston Capital |
|
|
|
|
|
|
|
|
|
|
|
Net loss allocated to other partners |
$ - |
$ - |
|
|
|
*Amounts include $0 for 2012 and 2011, 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 CONDENSED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2012
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
Series 9
|
2012 |
2011 |
|
|
|
|
|
Revenues |
|
|
|
|
Rental |
$ 2,056,029 |
$ 3,127,896 |
|
Interest and other |
112,331 |
164,204 |
|
2,168,360 |
3,292,100 |
|
|
|
|
|
Expenses |
|
|
|
|
Interest |
365,161 |
497,130 |
|
Depreciation and amortization |
509,091 |
822,699 |
|
Operating expenses |
1,549,721 |
2,391,867 |
|
2,423,973 |
3,711,696 |
|
|
|
|
|
NET LOSS |
$ (255,613) |
$ (419,596) |
|
|
|
|
|
|
Net loss allocated to Boston Capital |
|
|
|
|
|
|
|
|
|
|
|
Net loss allocated to other partners |
$ (2,556) |
$ (4,196) |
|
|
|
*Amounts include $253,057 and $415,400 for 2012 and 2011, 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 CONDENSED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2012
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
|
2012 |
2011 |
|
|
|
|
|
Revenues |
|
|
|
|
Rental |
$ 1,785,869 |
$ 1,905,533 |
|
Interest and other |
27,252 |
25,972 |
|
1,813,121 |
1,931,505 |
|
|
|
|
|
Expenses |
|
|
|
|
Interest |
247,904 |
275,953 |
|
Depreciation and amortization |
427,859 |
447,447 |
|
Operating expenses |
1,383,243 |
1,443,827 |
|
2,059,006 |
2,167,227 |
|
|
|
|
|
NET LOSS |
$ (245,885) |
$ (235,722) |
|
|
|
|
|
|
Net loss allocated to Boston Capital |
|
|
|
|
|
|
|
|
|
|
|
Net loss allocated to other partners |
$ (2,459) |
$ (2,357) |
|
|
|
*Amounts include $243,426 and $233,365 for 2012 and 2011, 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 CONDENSED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2012
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
|
2012 |
2011 |
|
|
|
|
|
Revenues |
|
|
|
Rental |
$ 2,564,634 |
$ 2,371,493 |
|
|
Interest and other |
101,593 |
36,556 |
|
2,666,227 |
2,408,049 |
|
|
|
|
|
Expenses |
|
|
|
|
Interest |
421,250 |
313,580 |
|
Depreciation and amortization |
658,613 |
596,229 |
|
Operating expenses |
1,843,291 |
1,681,434 |
|
2,923,154 |
2,591,243 |
|
|
|
|
|
NET LOSS |
$ (256,927) |
$ (183,194) |
|
|
|
|
|
|
Net loss allocated to Boston Capital |
|
|
|
|
|
|
|
|
|
|
|
Net loss allocated to other partners |
$ (2,569) |
$ (1,832) |
|
|
|
*Amounts include $254,358 and $181,362 for 2012 and 2011, 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 CONDENSED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2012
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
|
2012 |
2011 |
|
|
|
|
|
Revenues |
|
|
|
|
Rental |
$ 2,574,191 |
$ 2,704,831 |
|
Interest and other |
198,699 |
134,380 |
|
2,772,890 |
2,839,211 |
|
|
|
|
|
Expenses |
|
|
|
|
Interest |
447,335 |
451,126 |
|
Depreciation and amortization |
593,937 |
569,469 |
|
Operating expenses |
1,845,919 |
1,920,252 |
|
2,887,191 |
2,940,847 |
|
|
|
|
|
NET LOSS |
$ (114,301) |
$ (101,636) |
|
|
|
|
|
|
Net loss allocated to Boston Capital |
|
|
|
|
|
|
|
|
|
|
|
Net loss allocated to other partners |
$ (1,143) |
$ (1,016) |
|
|
|
*Amounts include $113,158 and $100,620 for 2012 and 2011, 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 CONDENSED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2012
(Unaudited)
NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)
COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,
(Unaudited)
|
2012 |
2011 |
|
|
|
|
|
Revenues |
|
|
|
|
Rental |
$ 5,874,836 |
$ 7,106,066 |
|
Interest and other |
168,600 |
139,998 |
|
6,043,436 |
7,246,064 |
|
|
|
|
|
Expenses |
|||
|
Interest |
1,014,048 |
1,146,060 |
|
Depreciation and amortization |
1,365,557 |
1,660,055 |
|
Operating expenses |
4,191,660 |
5,197,085 |
|
6,571,265 |
8,003,200 |
|
|
|
|
|
NET LOSS |
$ (527,829) |
$ (757,136) |
|
|
|
|
|
|
Net loss allocated to Boston Capital |
|
$ (749,565) |
|
|
|
|
|
|
|
|
|
Net loss allocated to other partners |
$ (5,278) |
$ (7,571) |
|
|
|
*Amounts include $522,551 and $749,565 for 2012 and 2011, 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 CONDENSED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2012
(Unaudited)
The taxable loss for the calendar year ended December 31, 2012 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.
NOTE F - INCOME TAXES
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. Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns. The Partnership's federal tax status as a pass-through entity is based on its legal status as a partnership. Accordingly, the Partnership is not required to take any tax positions in order to qualify as a pass-through entity. The Partnership is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities. Accordingly, these financial statements do not reflect a provision for income taxes and the Partnership has no other tax positions, which must be considered for disclosure. Income tax returns filed by the Partnership are subject to examination by the Internal Revenue Service for a period of three years. While no income tax returns are currently being examined by the Internal Revenue Service, tax years since 2009 remain open.
Boston Capital Tax Credit Fund II Limited Partnership
NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2012
(Unaudited)
NOTE G - PLAN OF LIQUIDATION
On March 3, 2010, our General Partner recommended that the BAC holders approve a plan of liquidation and dissolution for the Partnership, or the "Plan." The Plan was approved by the BAC holders on July 1, 2010, and was adopted by the General Partner on July 1, 2010. Pursuant to the Plan, the General Partner is able to, without further action by the BAC holders:
- liquidate the assets and wind up the business of the Partnership;
- make liquidating distributions in cancellation of the BACs;
- dissolve the Partnership after the sale of all of the Partnership's assets; and
- take, or cause the Partnership to take, such other acts and deeds and shall do, or cause the Partnership to do, such other things, as are necessary or appropriate in connection with the dissolution, winding up and liquidation of the Partnership, the termination of the responsibilities and liabilities of the Partnership under applicable law, and the termination of the existence of the Partnership.
Since the approval of the Plan by the BAC holders, we have continued to seek to sell the assets of the Partnership and use the sale proceeds and/or other Partnership funds to pay all expenses in connection with such sales, pay or make provision for payment of all Partnership obligations and liabilities, including accrued fees, and unpaid loans to the General Partner, and distribute the remaining assets as set forth in the Partnership Agreement. We expect to complete the sale of the apartment complexes approximately three to five years after the BAC holders approval of the Plan, which was July 1, 2010. However, because of numerous uncertainties, the liquidation may take longer or shorter than expected, and the final liquidating distribution may occur months after all of the apartment complexes have been sold.
For additional information regarding the sale of Partnership assets, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Annual Report on Form 10-K.
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, 2012. 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, 2012 or on working capital reserves, (ii) cash distributions from operations of the Operating Partnerships in which the Partnership has invested and (iii) proceeds received from the dispositions of the Operating Partnership that are returned to fund reserves. 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, 2012 and 2011 in the amount of $23,916 and $17,049. 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, 2012 were $170,883 and total partnership management fees accrued as of December 31, 2012 were $20,366,753. During the nine months ended December 31, 2012, the Partnership paid $885,750 in accrued partnership management fees. 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, 2012, an affiliate of the general partner of the Partnership advanced a total of $153,188, on behalf of Series 12, 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, 2012, the Partnership did not receive any repayment of advances.
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 quarter ended December 31, 2012, no payments were made to an affiliate of the general partner.
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, 2012 the Partnership had $1,318,782 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 held at December 31, 2012, and cash and cash equivalents.
Series |
Equity |
BACs Sold |
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 |
12 |
132,820 |
10 |
24,288,997 |
2,428,925 |
08/24/90 |
15 |
153,767 |
11 |
24,735,002 |
2,489,599 |
12/27/90 |
16 |
144,358 |
12 |
29,710,003 |
2,972,795 |
04/30/91 |
21 |
351,064 |
14 |
55,728,997 |
5,574,290 |
01/27/92 |
32 |
536,773 |
|
|
|
|
|
|
|
$186,398,017 |
18,679,738 |
|
96 |
$1,318,782 |
|
|
|
|
|
|
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, 2012 are $132,820, $153,767, $144,358, $341,823 and $376,040, 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, 2012 and 2011 the Partnership held limited partnership interests in 96 and 119 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, 2012 are as follows:
3 Months Management Fee |
|
3 Months Management Fee Net of Reporting Fee |
|
Series 7 |
$ - |
$ - |
$ - |
Series 9 |
21,843 |
560 |
21,283 |
Series 10 |
23,094 |
1,000 |
22,094 |
Series 11 |
29,658 |
12,081 |
17,577 |
Series 12 |
30,474 |
32,547 |
(2,073) |
Series 14 |
65,814 |
30,289 |
35,525 |
|
$ 170,883 |
$ 76,477 |
$ 94,406 |
9 Months Management Fee |
|
9 Months Management Fee Net of Reporting Fee |
|
Series 7 |
$ - |
$ - |
$ - |
Series 9 |
86,278 |
26,994 |
59,284 |
Series 10 |
69,282 |
7,069 |
62,213 |
Series 11 |
88,974 |
18,867 |
70,107 |
Series 12 |
95,012 |
47,962 |
47,050 |
Series 14 |
223,801 |
78,585 |
145,216 |
|
$ 563,347 |
$ 179,477 |
$ 383,870 |
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, 2012 and 2011.
(Series 9)
As of December 31, 2012 and 2011, the average Qualified Occupancy for the series was 100%. The series had a total of 12 properties at December 31, 2012, all of which were at 100% Qualified Occupancy.
For the periods ended December 31, 2012 and 2011, Series 9 reflects loss from Operating Partnerships of $(255,613) and $(419,596), respectively, which includes depreciation and amortization of $509,091 and $822,699, respectively. This is an interim period estimate; it is not indicative of the final year end results.
On April 30, 2012, the operating general partner of Sunshine Apartments, A Limited Partnership sold the property to a non-affiliated entity. The sales price of the property was $1,237,864, which included the outstanding mortgage balance of approximately $925,000 and cash proceeds to the investment partnership of $171,000. Of the total proceeds received by the investment partnership, $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 $156,000 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 $156,000 as of June 30, 2012.
Glenwood Hotel Investors (Glenwood Hotel) is a 36-unit single room occupancy development located in Porterville, CA. The property has historically operated with high occupancy. Through the fourth quarter of 2012, the property continued to maintain strong occupancy and as of December 31, 2012 occupancy was 90%. However, despite the continued strong occupancy, the property is operating below breakeven. To maintain a high occupancy level and to be competitive in the market, management is keeping rental rates low. The management company continues to market available units to the housing authority as well as performing various outreach efforts to attract qualified residents. The operating general partner continues to fund deficits as needed. The mortgage, insurance and payables are current. On December 31, 2005, the 15-year low income housing tax credit compliance period expired with respect to Glenwood Hotel Investors LP.
In April 2011, the investment general partner of Cotton Mill Associates transferred its interest to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,369,200 and cash proceeds to the investment partnership of $100,000. Of the total proceeds received, $15,000 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $85,000 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 $85,000 as of June 30, 2011.
In April 2011, the investment general partner of Tappahannock Greens LP transferred its interest to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,427,440 and cash proceeds to the investment partnership of $60,000. Of the total proceeds received, $5,000 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $55,000 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 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 $200,000 distributable to the investment 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 $55,000 as of June 30, 2011.
In October 2011, the investment general partner transferred its interest in Grand Princess Manor LP to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $1,412,614 and cash proceeds to the investment partnership of $70,000. Of the total proceeds received, $7,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $62,500 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 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 sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $62,500 as of October 31, 2011.
In October 2011, the investment general partner transferred its interest in Grand Princess Villas LP to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $1,411,672 and cash proceeds to the investment partnership of $70,000. Of the total proceeds received, $7,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $62,500 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 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 sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $62,500 as of October 31, 2011.
In December 2011, the investment general partner transferred its interest in Raitt Street Apartments, A CA LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $4,153,969 and delivery of a Promissory Note to the investment general partner in the amount of $5,900 maturing June 30, 2012. The maturity date of the Promissory Note has been extended to September 30, 2012. The note was paid on October 1, 2012. The amounts payable under the note will be paid to BCAMLP as reimbursement of expenses related to the transfer, which include third party legal costs. No proceeds were returned to cash reserves held by Series 9. 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 2011, the investment general partner of Boston Capital Tax Credit Fund I LP - Series 4 and Series 9 transferred their respective interests in Meadowcrest LDHA LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $2,446,544 and cash proceeds to the investment partnerships of $64,760 to Series 4 and $70,240 to Series 9. Of the total proceeds received, $45,572 and $49,428 from Series 4 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, $7,195 and $7,804 from Series 4 and Series 9, respectively, was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $11,993 and $13,008 for Series 4 and Series 9 respectively, will be returned to cash reserves. 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. Accordingly, a gain on the transfer of the Operating Partnership was recorded of $11,993 and $13,008 from Series 4 and Series 9, respectively, as of December 31, 2011.
In July 2012, the investment general partner transferred its interest in Big Lake Seniors Apartments to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $520,555 and cash proceeds to the investment partnership of $9,000. Of the total proceeds received, $2,625 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $6,375 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 partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. The investment general partner on behalf of the investment partnership, also executed a Transfer and Assignment of Mineral Rights preserving the investment partnership's right to any potential proceeds that may be distributed from production of minerals at the property. 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. Accordingly, a gain on the transfer of the Operating Partnership has been recorded in the amount of $6,375 as of September 30, 2012.
In July 2012, the investment general partner transferred its interest in Blanco Seniors Apartments to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $487,964 and cash proceeds to the investment partnership of $9,000. Of the total proceeds received, $2,625 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $6,375 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 partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. The investment general partner on behalf of the investment partnership, also executed a Transfer and Assignment of Mineral Rights preserving the investment partnership's right to any potential proceeds that may be distributed from production of minerals at the property. 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. Accordingly, a gain on the transfer of the Operating Partnership has been recorded in the amount of $6,375 as of September 30, 2012.
In July 2012, the investment general partner transferred its interest in Pleasanton, Limited to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $574,131 and cash proceeds to the investment partnership of $9,000. Of the total proceeds received, $2,625 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $6,375 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 partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. The investment general partner on behalf of the investment partnership, also executed a Transfer and Assignment of Mineral Rights preserving the investment partnership's right to any potential proceeds that may be distributed from production of minerals at the property. 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. Accordingly, a gain on the transfer of the Operating Partnership has been recorded in the amount of $6,375 as of September 30, 2012.
South Paris Heights Associates Limited Partnership (Hill Street Commons I) is a 25-unit, one-building apartment complex for elderly residents located in South Paris, Maine. The property was 100% occupied as of December 31, 2012, but operated below breakeven through the fourth quarter due to high maintenance and utility expenses. To reduce costs, management has renegotiated maintenance contracts and cut back on landscaping,which has reduced maintenance expenses. To offset the high utility cost,the investment general partner suggested to management that they place limits on the thermostat controls in the individual units to reduce heating costs. Management also plans to submit a 2013 rent increase request to USDA-Rural Development. Should the rent increase be approved, the investment general partner anticipates that the property will operate above breakeven. On December 31, 2007, the 15-year low income housing tax credit compliance period expired with respect to South Paris Heights. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.
In September 2012, the investment general partner transferred its interest in Le Grand Enterprises to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,611,385 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $563 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,500 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $20,937 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 partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment 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 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. Accordingly, a gain on the transfer of the Operating Partnership has been recorded in the amount of $20,937 as of September 30, 2012.
In September 2012, the investment general partner transferred its interest in Fawn River Apartment Company LDHA to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $3,470,597 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $19,618 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,500 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $1,882 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 partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment 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 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. Accordingly, a gain on the transfer of the Operating Partnership has been recorded in the amount of $1,882 as of September 30, 2012.
(Series 10)
As of December 31, 2012 and 2011, the average Qualified Occupancy for the series was 100%. The series had a total of 15 properties at December 31, 2012, all of which were at 100% Qualified Occupancy.
For the periods ended December 31, 2012 and 2011, Series 10 reflects net loss from Operating Partnerships of $(245,885) and $(235,722), respectively, which includes depreciation and amortization of $427,859 and $447,447, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Meadowbrook Properties II LP (Meadowbrook Lane Apartments) is a 50-unit property located in Americus, GA. The property has operated below breakeven for several years with occupancy averaging below 90%. Through the fourth quarter of 2012, occupancy is averaging 92%, but the property continues to operate below breakeven. Due to the age of the property, maintenance expenses remain very high in order to maintain its physical condition. Deficits are being funded by accruing the related party management fee. On December 31, 2004, the 15-year low income housing tax credit compliance period expired with respect to Meadowbrook Properties II, LP.
In January 2012, the operating general partner of Washington Heights IV entered into an agreement to sell the property to a non-affiliated entity and the transaction closed on February 10, 2012. The sales price of the property was $1,250,000, which included the outstanding mortgage balance of approximately $715,546 and cash proceeds to the investment partnership of $344,418. Of the total proceeds received by the investment partnership, $1,250 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $5,000 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $338,168 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. The sale proceeds were received in April 2012; so a receivable in the amount of $338,168 was recorded as of March 31, 2012. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $338,168 as of March 31, 2012.
(Series 11)
As of December 31, 2012 and 2011 the average Qualified Occupancy for the series was 100%. The series had a total of 16 properties at December 31, 2012, all of which were at 100% Qualified Occupancy.
For the periods ended December 31, 2012 and 2011, Series 11 reflects net loss from Operating Partnerships of $(256,927) and $(183,194), respectively, which includes depreciation and amortization of $658,613 and $596,229, respectively. This is an interim period estimate; it is not indicative of the final year end results.
In February 2010, the operating general partner of Crestwood RRH, Limited approved an agreement to sell the property to an unrelated third party and the transaction closed on July 28, 2010. The sales price for the property was $5,074,719, which includes the outstanding mortgage balance of approximately $2,682,530 and cash proceeds to the investment partnership of $1,372,271. Of the total proceeds received, $95,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $85,617 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $1,191,654 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 $1,191,654 as of September 30, 2010. In May 2011, the investment partnership received additional proceeds for its share of the Operating Partnership's cash in the amount of $54,381 which were returned to the cash reserves held by Series 11.
South Fork Heights, LTD (South Fork Heights Apartments) is a 48-unit family property in South Fork, CO and is financed by Rural Development. The original operating general partner was replaced in January 2011 at the request of Rural Development. The property is in poor physical condition. The new operating general partner advanced funds for new carpet, vinyl and paint in the units. Average occupancy was 89% during 2011, and is 86% through the fourth quarter of 2012. Elevated maintenance expenses and the low occupancy in the first half of 2011 contributed to below breakeven operations for the year. Through the fourth quarter of 2012 operations continue to be below breakeven. Rural Development approved the property to receive a Multi-Family Housing Preservation and Revitalization Restructuring Program (MPR) Loan in 2008, but would not lend the funds while the previous operating general partner was still involved in the project. The new operating general partner received a commitment from Rural Development for the MPR Loan; however, the loan amount was insufficient to complete the needed property improvements. The operating general partner feels it has exhausted all potential options for financing and has been unsuccessful in securing additional funds. Consequently, the operating general partner is requesting that its interest be transferred to a nonprofit entity that will have access to different funding sources. The transfer is currently being reviewed and due diligence is being performed on the nonprofit entity. On December 31, 2005, the 15-year low income housing tax credit compliance period expired with respect to South Fork Heights, LTD.
(Series 12)
As of December 31, 2012 and 2011 the average Qualified Occupancy for the series was 100% and 99.7%, respectively. The series had a total of 21 properties at December 31, 2012, all of which were at 100% Qualified Occupancy.
For the periods ended December 31, 2012 and 2011, Series 12 reflects net loss from Operating Partnerships of $(114,301) and $(101,636), respectively, which includes depreciation and amortization of $593,937 and $569,469, respectively. This is an interim period estimate; it is not indicative of the final year end results.
Prairie West Apartments III LP (Prairie West Apartments) is a 24-unit property in West Fargo, North Dakota. In 2010 and 2011, average occupancy was 92%, and the property operated below breakeven due to high maintenance costs and bad debts. Through the fourth quarter of 2012, occupancy has increased to 95%, but operations remain below breakeven due to high operating expenses. The operating general partner continues to fund all operating deficits as operations are supported by an unlimited guarantee. In late 2009 the property was refinanced with the money generated being used to update curb appeal. The mortgage, property taxes, and insurance are current. On December 31, 2005, the 15-year low income housing tax credit compliance period expired with respect to Prairie West Apartments III LP.
Briarwick Apartments Limited, A KY Limited Partnership (Briarwick Apartments) is a 40-unit family property located in Nicholasville, KY. The property has operated below breakeven for the past several years due to low occupancy and high operating expenses. Occupancy has been a challenge due to the property's advanced age. Rural Development approved a workout plan in the third quarter of 2011 to stabilize the property. The two main components of the workout plan were a rental rate increase and increasing the monthly replacement reserve deposit. Management implemented a rent increase of $30 per unit which took effect on October 1, 2011. In 2012, occupancy averaged 88% and operations were slightly below breakeven. Management is marketing the property by posting fliers at various churches, stores, and community centers around the town. The mortgage, real estate tax and insurance payments are current. The operating general partner continues to advance funds and accrue its affiliated property management fee to fund deficits. On December 31, 2005, the 15-year low income housing tax credit compliance period expired with respect to Briarwick Apartments Limited.
In January 2009, the investment general partner of RPI LP #22 approved an agreement to sell the property and the transaction closed on November 4, 2010. The sales price for the property is $1,250,000, which included the outstanding mortgage balance of approximately $538,667 and cash proceeds to the investment limited partners of $345,607. Of the total proceeds received by the investment partnership, $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, $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 $329,107 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, was recorded in the amount of $329,107 as of December 31, 2010. As of June 2011, the investment partnership received additional proceeds for its share of the Operating Partnership's cash in the amount of $44,097 which were returned to the cash reserves held by Series 12.
In September 2012, the investment general partner transferred its interest in Earlimart Enterprises, A CA LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,262,975 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $4,208 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,500 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $17,292 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. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment 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, was recorded in the amount of $17,292 as of September 30, 2012.
In November 2012, the operating general partner of Corcoran Investment Group entered into an agreement to sell the property to an entity affiliated with the operating general partner and the transaction closed on November 28, 2012. The sales price of the property was $1,979,421, which included the outstanding mortgage balance of approximately $1,805,863 and cash proceeds to the investment partnership of $173,558. Of the total proceeds received by the investment partnership, $23,250 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 will be paid to BCAMLP for expenses related to the sale, which include third party legal costs. The remaining proceeds from the sale of $142,808 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, was recorded in the amount of $142,808 as of December 31, 2012.
(Series 14)
As of December 31, 2012 and 2011 the average Qualified Occupancy for the series was 100%. The series had a total of 32 properties at December 31, 2012, all of which were at 100% Qualified Occupancy.
For the periods ended December 31, 2012 and 2011, Series 14 reflects net loss from Operating Partnerships of $(527,829) and $(757,136), respectively, which includes depreciation and amortization of $1,365,557 and $1,660,055, respectively. This is an interim period estimate; it is not indicative of the final year end results.
In July 2012, the investment general partner transferred its interest in Cottonwood Apartments II, A LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $784,477 and cash proceeds to the investment partnership of $9,000. Of the total proceeds received, $2,625 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $6,375 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. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. The investment general partner on behalf of the investment partnership, also executed a Transfer and Assignment of Mineral Rights preserving the investment partnership's right to any potential proceeds that may be distributed from production of minerals at the property. 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 $6,375 as of September 30, 2012.
Maysville Village Apartments Limited (Maysville Village Apartments) is an 8-unit property located in Maysville, OK. In 2010, a decrease in occupancy and an increase in operating expenses caused operations to fall below breakeven. The increased operating costs were caused by a surge in maintenance expenses. The expenses covered some capital items, but they were not reimbursed from the replacement reserve account due to Rural Development restrictions. In addition, Rural Development required the property to outsource all maintenance work at a higher cost instead of using the affiliated management company. In 2011, occupancy averaged 91% and operations remained below breakeven due to high overall operating costs. Through the fourth quarter of 2012, the property is operating slightly above breakeven. Occupancy decreased slightly to 88% as of December 31, 2012. Operations have improved due to decreased maintenance costs in the fourth quarter. Although year to date maintenance costs were still above the budgeted amount, they were significantly lower than 2011. The operating general partner continues to fund all 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 with respect to Maysville Village Apartment Limited.
In March 2011, the operating general partner of Scott Partners entered into an agreement to sell the property to an entity affiliated with the operating general partner and the transaction closed on May 2, 2011. The sales price of the property was $1,505,000, which included the outstanding mortgage balance of approximately $1,031,412 and cash proceeds to the investment partnership of $389,317. Of the total proceeds received by the investment partnership, $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 $374,317 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, was recorded in the amount of $374,317 as of June 30, 2011. In July 2012, the investment partnership received additional proceeds for its share of the Operating Partnership's cash in the amount of $10,500 which were returned to the cash reserves held by Series 14.
In June 2011, the investment general partner transferred its interest in Rosewood Manor, Limited to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,377,213 and cash proceeds to the investment partnership of $28,000. 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 $23,000 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. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 5 years from the initial transfer date, there would be a residual payment of up to $75,000 distributable to the investment 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, was recorded in the amount of $23,000 as of June 30, 2011.
In October 2011, the investment general partner transferred its interest in Carriage Run, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,198,764 and cash proceeds to the investment partnership of $128,000. Of the total proceeds received, $8,435 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $114,565 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'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 sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $114,565 as of December 31, 2011.
In October 2011, the investment general partner transferred its interest in Jarratt LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $779,205 and cash proceeds to the investment partnership of $76,800. Of the total proceeds received, $13,507 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $5,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $58,293 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'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 sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $58,293 as of December 31, 2011.
In December 2011, the investment general partner transferred its interest in La Gema Del Barrio to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $500,071 and delivery of a Promissory Note to the investment general partner in the amount of $5,900 maturing June 30, 2012. The maturity date of the Promissory Note has been extended to September 30, 2012. The note was paid on October 1, 2012. The amounts payable under the note will be paid to BCAMLP as reimbursement expenses related to the transfer, which include third party legal costs. No proceeds were returned to cash reserves held by Series 14. 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 July 2012, the investment general partner transferred its interest in Colorado City Seniors to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $513,991 and cash proceeds to the investment partnership of $9,000. Of the total proceeds received, $2,625 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $6,375 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. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. The investment general partner on behalf of the investment partnership, also executed a Transfer and Assignment of Mineral Rights preserving the investment partnership's right to any potential proceeds that may be distributed from production of minerals at the property. 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 sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $6,375 as of September 30, 2012.
In July 2012, the investment general partner transferred its interest in Hughes Springs Seniors Apartments to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $746,096 and cash proceeds to the investment partnership of $9,000. Of the total proceeds received, $2,625 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $6,375 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. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. The investment general partner on behalf of the investment partnership, also executed a Transfer and Assignment of Mineral Rights preserving the investment partnership's right to any potential proceeds that may be distributed from production of minerals at the property. 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 sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $6,375 as of September 30, 2012.
In September 2012, the investment general partner transferred its interest in Central Valley Investment Group II to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,704,343 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $1,125 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,500 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $20,375 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. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment 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 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 sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $20,375 as of September 30, 2012.
In September 2012, the investment general partner transferred its interest in Lake Isabella Enterprises, a California Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,877,844 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $2,973 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,500 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $18,527 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. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment 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 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 sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $18,527 as of September 30, 2012.
In September 2012, the investment general partner transferred its interest in Nevada City Investment Group, A California Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $3,334,807 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $4,813 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,500 will be paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $16,687 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. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment 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 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 sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $16,687 as of September 30, 2012.
In November 2012, the investment general partner transferred its interest in Lonaconing Associates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,403,464 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $3,500 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $6,500 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. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment 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 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 sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $6,500 as of December 31, 2012.
In November 2012, the investment general partner transferred its interest in Titusville Apartments LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,168,760 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $3,500 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $6,500 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. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment 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 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 sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $6,500 as of December 31, 2012.
In November 2012, the investment general partner transferred its interest in Wesley Village Associates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,232,687 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $3,500 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $6,500 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. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment 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 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 sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $6,500 as of December 31, 2012.
In December 2012, the investment general partner transferred its interest in Crystal Springs Family, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,218,656 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $7,400 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $2,600 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. There were no remaining proceeds 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. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment 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, no gain on the sale of the Operating Partnership has been recorded.
In December 2012, the investment general partner transferred its interest in Louis Associates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $615,555 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $4,300 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $2,600 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $3,100 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. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment 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 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 sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $3,100 as of December 31, 2012.
In December 2012, the investment general partner transferred its interest in McComb Family, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,012,134 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $7,400 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $2,600 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. There were no remaining proceeds 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. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment 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, no gain on the sale of the Operating Partnership has been recorded.
In December 2012, the investment general partner transferred its interest in South Fulton Elderly, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $629,627 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $2,600 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $7,400 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.In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment 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 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 sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $7,400 as of December 31, 2012.
In December 2012, the investment general partner transferred its interest in Washington Court Associates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,042,417 and receipt of a Promissory Note (the "Note") to the investment partnership in the amount of $165,000 maturing on June 30, 2013. Of the amounts payable under the Note, $1,200 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 include third party legal costs. The remaining proceeds of approximately $153,800 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 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. A receivable in the amount of $153,800 was recorded for Series 14 as of December 31, 2012, and a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $153,800 as of December 31, 2012.
Lakeview Meadows LDHA L.P. (Lakeview Meadows)is a 53-unit elderly apartment complex located in Battle Creek, MI. Through the fourth quarter of 2011, the property operated with an average physical occupancy of 90%. However, occupancy continued to decline significantly in 2012. In 2012 occupancy averaged 83% with 79% occupancy as of December 31, 2012. The primary causes for high vacancy and low cash flows for this asset are the economic conditions in the Downriver area of Michigan and the target market for this property, which is seniors. The local Downriver senior demographic that owned homes in the area has not been able to sell those properties due to depressed values and an ailing residential real estate market. The operating general partner has reached out to the local housing authority as a source for tenants; however, the Battlecreek Housing Authority and the Calhoun County Housing Authority have focused on families for receipt of Section 8 vouchers and not seniors. Lakeview Meadows is operating below breakeven in 2012 due to the ongoing vacancy challenges due to the soft rental market. The management company, an affiliate of the operating general partner, appears focused on marketing initiatives to increase applicant traffic, as well as offering concessions, and closely monitoring operating expenditures. The mortgage, real estate taxes, and property insurance escrows are current. The operating general partner continues to fund all operating deficits as necessary. The compliance period for this asset ended on December 31, 2006.
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 was 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. Additional sale proceeds in the amount of $50,000 was received and recorded as a gain on the sale of the Operating Partnership as of December 31, 2012.
Off Balance Sheet Arrangements
None.
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.
In accordance with the accounting guidance for the consolidation of variable interest entities, the Partnership determines when it 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. The analysis that must be performed to determine which entity should consolidate a VIE focuses on control and economic factors. 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 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 guidance requires continual reconsideration of the primary beneficiary of a VIE.
Based on this guidance, the Operating Partnerships in which the Partnership invests meet the definition of a VIE because the owners of the equity at risk in these entities do not have the power to direct their operations. However, management does not consolidate the Partnership's interests in these VIEs, as it is not considered to be the primary beneficiary since it does not have the power to direct the activities that are considered most significant to the economic performance of these entities. The Partnership currently records the amount of its investment in these partnerships as an asset on its balance sheets, 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 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 Housing Complexes as well as the strength of the general partners and their guarantee against credit recapture to the investors of the Partnership.
Recent Accounting Changes
In May 2011, the Financial Accounting Standards Board ("FASB") issued an update to existing guidance related to fair value measurements on how to measure fair value and what disclosures to provide about fair value measurements. For fair value measurements categorized as level 3, a reporting entity should disclose quantitative information of the unobservable inputs and assumptions, a description of the valuation processes and narrative description of the sensitivity of the fair value to changes in unobservable inputs. This update is effective for interim and annual periods beginning after December 15, 2011. The adoption of this update did not materially affect the Partnership's condensed financial statements.
Item 3 |
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Not Applicable |
Item 4 |
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 under the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15 with respect to each series individually, as well as the Partnership as a whole. 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 with respect to each series individually, as well as the Partnership as a whole, were effective to ensure that information relating to any series or the Partnership as a whole 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, 2012 that materially affected, or are reasonably likely to materially affect, the Partnership's internal control over financial reporting. |
PART II - OTHER INFORMATION
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, 2012. |
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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. |
Mine Safety Disclosures |
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Not Applicable |
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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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101. The following materials from the Boston Capital Tax Credit Fund II L.P. Quarterly Report on Form 10-Q for the quarterly period ended December 31, 2012 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Balance Sheets, (ii) the Condensed Statements of Operations, (iii) the Condensed Statements of Changes in Partners' Capital (Deficit), (iv) the Condensed Statements of Cash Flows and (v) related notes, furnished herewith |
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 14, 2013 |
/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:
DATE: |
SIGNATURE: |
TITLE: |
February 14, 2013 |
/s/ John P. Manning John P. Manning |
Director, President |
DATE: |
SIGNATURE: |
TITLE: |
February 14, 2013 |
/s/ Marc N. Teal Marc N. Teal |
Chief Financial Officer |