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EX-32 - BCTC II CERTIFICATION 906 - BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIPb21215cert906mnt.htm
EX-31 - BCTC II CERTIFICATION 302 - BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIPb21215cert302jpm.htm
EX-31 - BCTC II CERTIFICATION 302 - BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIPb21215cert302mnt.htm
EX-32 - BCTC II CERTIFICATION 906 - BOSTON CAPITAL TAX CREDIT FUND II LTD PARTNERSHIPb21215cert906jpm.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, 2015

 

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, 2015

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION

 

 

 

Pages

 

Item 1. Condensed Financial Statements

 

 

Condensed Balance Sheets

3-9

 

 

Condensed Statements of Operations

10-23

 

 

Condensed Statements of Changes in 
Partners' Capital (Deficit)


24-27

 

 

Condensed Statements of Cash Flows

28-34

 

 

Notes to Condensed Financial 
Statements


35-48

 

 

 

 

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



49-64

 

 

 

 

Item 3. Quantitative and Qualitative
Disclosures About Market Risk


65

 

 

 

 

Item 4. Controls and Procedures

65

 

 

 

PART II - OTHER INFORMATION

 

 

 

 

 

Item 1. Legal Proceedings

66

 

 

 

 

Item 1A. Risk Factors

66

 

 

 

 

Item 2. Unregistered Sales of Equity
Securities and Use of Proceeds


66

 

 

 

 

Item 3. Defaults Upon Senior Securities

66

 

 

 

 

Item 4. Mine Safety Disclosures

66

 

 

 

 

Item 5. Other Information

66

 

 

 

 

Item 6. Exhibits 

66

 

 

 

 

Signatures

67

 
















 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED BALANCE SHEETS

(Unaudited)

 

 

 

December 31,
2015

March 31,
2015

ASSETS

Cash and cash equivalents

$    852,238

$   1,682,834

Other assets

      2,200

       2,200

$    854,438

$   1,685,034

LIABILITIES

Accounts payable

$      12,600

$      12,600

Accounts payable affiliates (Note C)

12,135,165

15,075,966

Capital contributions payable (Note D)

     154,287

     169,974

  12,302,052

  15,258,540

PARTNERS' CAPITAL (DEFICIT)

Assignees

  

Units of limited partnership 
interest, $10 stated value per
BAC; 20,000,000 authorized BACs;
18,679,738 issued and 18,588,788 outstanding as of December 31, 2015 and March 31, 2015.






(11,240,074)






(12,058,821)

 

General Partner

  (207,540)

 (1,514,685)

(11,447,614)

(13,573,506)

$    854,438

$   1,685,034

 

 

 

 

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,
2015

March 31,
2015

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 
interest, $10 stated value per
BAC; 20,000,000 authorized BACs;
1,036,100 issued and 1,036,100
outstanding as of December 31, 2015 and March 31, 2015.






(84,506)






(84,506)

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,
2015

March 31,
2015

ASSETS

 

 

 

Cash and cash equivalents

$    139,546

$   163,039

Other assets

          -

         -

$    139,546

$   163,039

LIABILITIES

 

Accounts payable

$          -

$         -

Accounts payable affiliates (Note C)

6,594,579

6,548,768

 

Capital contributions payable (Note D)

          -

         -


  6,594,579


 6,548,768

PARTNERS' CAPITAL (DEFICIT)

Assignees

 
 

Units of limited partnership 
interest, $10 stated value per
BAC; 20,000,000 authorized BACs;
4,178,029 issued and 4,156,429 outstanding as of December 31, 2015 and March 31, 2015.






(6,055,645)






(5,987,034)

General Partner

  (399,388)

  (398,695)

(6,455,033)

(6,385,729)

$    139,546

$    163,039

 

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,
2015

March 31,
2015

ASSETS

 

 

 

Cash and cash equivalents

$     -

$    205,732

Other assets

          -

          -

$     -

$    205,732

LIABILITIES

 

Accounts payable

$          -

$          -

 

Accounts payable affiliates (Note C)

-

1,503,758

 

Capital contributions payable (Note D)

          -

          -

   -

  1,503,758

PARTNERS' CAPITAL (DEFICIT)

Assignees

 
 

Units of limited partnership 
interest, $10 stated value per
BAC; 20,000,000 authorized BACs;
2,428,925 issued and 2,421,225
outstanding as of December 31, 2015 and March 31, 2015.






(1,090,973)






(1,090,133)

General Partner

1,090,973

  (207,893)

-

(1,298,026)

$     -

$    205,732

 

 

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,
2015

March 31,
2015

ASSETS

 

 

 

 

Cash and cash equivalents

$    182,459

$    211,756

Other assets

          -

          -

$    182,459

$    211,756

LIABILITIES

 

Accounts payable 

$          -

$          -

 

Accounts payable affiliates (Note C)

89,984

614,049

 

Capital contributions payable (Note D)

          -

          -

   89,984

   614,049

PARTNERS' CAPITAL (DEFICIT)

Assignees

 
 

Units of limited partnership 
interest, $10 stated value per
BAC; 20,000,000 authorized BACs;
2,489,599 issued and 2,486,499
outstanding as of December 31, 2015 and March 31, 2015.






306,235






(183,585)

General Partner

  (213,760)

  (218,708)

   92,475

  (402,293)

$    182,459

$    211,756

 

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,
2015

March 31,
2015

ASSETS

 

 

 

 

Cash and cash equivalents

$    180,033

$    160,021

Other assets

          -

          -

 

$    180,033

$    160,021

LIABILITIES

Accounts payable 

$          -

$          -

Accounts payable affiliates (Note C)

2,798,248

3,149,077

Capital contributions payable (Note D)

      9,241

      9,241

  2,807,489

  3,158,318

PARTNERS' CAPITAL (DEFICIT)

Assignees

 
 

Units of limited partnership 
interest, $10 stated value per
BAC; 20,000,000 authorized BACs;
2,972,795 issued and 2,947,595 outstanding as of December 31, 2015 and March 31, 2015.





(2,350,051)





(2,717,184)

General Partner

  (277,405)

  (281,113)

(2,627,456)

(2,998,297)

$    180,033

$    160,021

 

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,
2015

March 31,
2015

ASSETS

 

 

 

 

Cash and cash equivalents

$    350,200

$    942,286

Other assets

      2,200

      2,200

$    352,400

$    944,486

 

 

LIABILITIES

 

 

 

Accounts payable

$     12,600

$     12,600

 

Accounts payable affiliates (Note C)

2,652,354

3,260,314

Capital contributions payable (Note D)

    145,046

    160,733

  2,810,000

  3,433,647

 

 

 

PARTNERS' CAPITAL (DEFICIT)

 

 

 

 

 

Assignees

 

 

 
 

Units of limited partnership 
interest, $10 stated value per
BAC; 20,000,000 authorized BACs;
5,574,290 issued and 5,540,940 outstanding as of December 31, 2015 and March 31, 2015.





(1,965,134)





(1,996,379)

General Partner

  (492,466)

  (492,782)

(2,457,600)

(2,489,161)

$    352,400

$    944,486

 

 

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)

 

 


2015


2014

 

 

 

Income

 

 

  

Interest income

$       235

$       440

Other income

   51,312

 2,427,860

 

    51,547

 2,428,300

Share of income from Operating 
  Partnerships(Note D)


    70,700


   316,685

 

 

 

Expenses

 

 

  

 

 

Professional fees

6,300

6,120

Partnership management fee, net (Note C)

44,496

(9,590)

General and administrative expenses

    55,522

    25,747

  


   106,318


    22,277

  NET INCOME(LOSS)

$  15,929

$ 2,722,708

Net income(loss) allocated to assignees

$  15,770

$ 2,695,480

 

Net income(loss) allocated to general partner

$    159

$    27,228

Net income(loss) per BAC

$       .00

$      .14

 

 

 

 

 

 

 

 

 

 

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


2015


2014

 

 

 

Income

Interest income

$       -

$       -

  

Other income

       -

       -

       -

       -

Share of income from Operating 
  Partnerships(Note D)


       -


       -

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


2015


2014

 

 

 

Income

 

 

  

Interest income

$        26

$        40

  

Other income

         -

         -

 

        26

        40

Share of income from Operating 
  Partnerships(Note D)


      -


    78,000

 

 

 

Expenses

 

 

  

 

 

Professional fees

1,260

1,224

Partnership management fee, net (Note C)

9,548

15,540

General and administrative expenses

     7,268

     5,009

  


    18,076


    21,773

  NET INCOME(LOSS)

$  (18,050)

$   56,267

 

 

 

Net income(loss) allocated to assignees

$  (17,870)

$   55,704

 

Net income(loss) allocated to general partner

$     (180)

$      563

Net income(loss) per BAC

$     (.00)

$      .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 10


2015


2014

Income

  

Interest income

$        19

$        57

Other income

-

    -

   19

     57

Share of income from Operating 
  Partnerships(Note D)


    70,700


   76,000

Expenses

  

Professional fees

1,260

1,224

Partnership management fee, net (Note C)

(710)

12,580

General and administrative expenses

    24,443

     4,087

  


    24,993


    17,891

  NET INCOME(LOSS)

$   45,726

$   58,166

Net income(loss) allocated to assignees

$   45,269

$   57,584

 

Net income(loss) allocated to general partner

$      457

$     582

Net income(loss) per BAC

$      .02

$    .02









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


2015


2014

 

 

 

Income

 

 

  

Interest income

$       63

$      139

 

Other income

     -

   -

     63

     139

Share of income from Operating 
  Partnerships(Note D)


   -


   48,864

 

 

 

Expenses

 

 

  

 

 

Professional fees

1,260

1,224

Partnership management fee, net (Note C)

13,877

(19,043)

General and administrative expenses

    5,631

    4,040

  


   20,768


 (13,779)

 

 

 

  NET INCOME(LOSS)

$ (20,705)

$  62,782

 

 

 

 

Net income(loss) allocated to assignees

$ (20,498)

$  62,154

 

 

 

Net income(loss) allocated to general partner

$    (207)

$     628

 

 

 

Net income(loss) per BAC

$    (.01)

$     .02

 

 

 















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


2015


2014

 

 

 

Income

 

 

  

Interest income

$       43

$       69

 

Other income

   51,312

     -

   51,355

    69

Share of income from Operating 
  Partnerships(Note D)


        -


   69,513

 

 

 

Expenses

 

 

  

 

 

Professional fees

1,260

1,224

Partnership management fee, net (Note C)

9,379

12,552

General and administrative expenses

    6,696

    4,566

  


   17,335


   18,342

 

 

 

 

 NET INCOME(LOSS)


$  34,020


$  51,240

 

 

 

Net income(loss) allocated to assignees

$  33,680

$  50,728

 

Net income(loss) allocated to general partner

$     340

$     512

Net income(loss) per BAC

$     .01

$     .02

 

 

 












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


2015


2014

 

 

 

Income

 

 

  

Interest income

$       84

$      135

  

Other income

   -

2,427,860

 

   84

2,427,995

Share of income from Operating 
  Partnerships(Note D)


   -


   44,308

 

 

 

Expenses

 

 

  

Professional fees

1,260

1,224

Partnership management fee, net (Note C)

12,402

(31,219)

 

General and administrative expenses

   11,484

    8,045

  


   25,146


 (21,950)

 

 

 

  NET INCOME(LOSS)

$ (25,062)

$2,494,253

 

 

 

Net income(loss) allocated to assignees

$ (24,811)

$2,469,310

 

Net income(loss) allocated to general partner

$   (251)

$  24,943

Net income(loss) per BAC

$  (.00)

$     .45









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)

 

 


2015


2014

 

 

 

Income

 

 

  

Interest income

$     1,164

$       988

Other income

   178,829

 2,481,680

 

   179,993

 2,482,668

Share of income from Operating 
  Partnerships(Note D)


 1,052,131


   464,960

 

 

 

Expenses

 

 

  

 

 

Professional fees

116,238

136,607

Partnership management fee, net (Note C)

191,367

158,174

General and administrative expenses

    97,501

    62,587

  


   405,106


   357,368

  NET INCOME(LOSS)

$  827,018

$ 2,590,260

Net income(loss) allocated to assignees

$  818,747

$ 2,564,357

 

Net income(loss) allocated to general partner

$    8,271

$    25,903

Net income(loss) per BAC

$      .04

$      .14

 

 

 

 

 

 

 

 

 

 

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


2015


2014

 

 

 

Income

Interest income

$       -

$       -

  

Other income

       -

       -

       -

       -

Share of income from Operating 
  Partnerships(Note D)


       -


       -

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


2015


2014

 

 

 

Income

 

 

  

Interest income

$       110

$        95

  

Other income

         1

         1

 

       111

        96

Share of income from Operating 
  Partnerships(Note D)


     1,593


    78,000

 

 

 

Expenses

 

 

  

 

 

Professional fees

18,672

22,075

Partnership management fee, net (Note C)

36,619

50,739

General and administrative expenses

    15,717

    12,321

  


    71,008


    85,135

  NET INCOME(LOSS)

$  (69,304)

$   (7,039)

 

 

 

Net income(loss) allocated to assignees

$  (68,611)

$   (6,969)

 

Net income(loss) allocated to general partner

$     (693)

$     (70)

Net income(loss) per BAC

$     (.02)

$     (.00)

 

 

 










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


2015


2014

Income

  

Interest income

$       138

$       130

Other income

   (2,375)

    12,065

   (2,237)

    12,195

Share of income from Operating 
  Partnerships(Note D)


    72,293


   76,000

Expenses

  

Professional fees

18,291

24,881

Partnership management fee, net (Note C)

20,807

38,203

General and administrative expenses

    31,806

    10,256

  


    70,904


    73,340

  NET INCOME(LOSS)

$   (848)

$ 14,855

Net income(loss) allocated to assignees

$   (840)

$  14,706

 

Net income(loss) allocated to general partner

$      (8)

$     149

Net income(loss) per BAC

$     (.00)

$   .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 11


2015


2014

 

 

 

Income

 

 

  

Interest income

$      356

$      229

 

Other income

     291

   16,113

     647

   16,342

Share of income from Operating 
  Partnerships(Note D)


  575,209


  160,139

 

 

 

Expenses

 

 

  

 

 

Professional fees

23,585

23,044

Partnership management fee, net (Note C)

44,929

6,311

General and administrative expenses

   12,574

    9,940

  


   81,088


   39,295

 

 

 

  NET INCOME(LOSS)

$  494,768

$  137,186

 

 

 

 

Net income(loss) allocated to assignees

$  489,820

$  135,814

 

 

 

Net income(loss) allocated to general partner

$    4,948

$    1,372

 

 

 

Net income(loss) per BAC

$     .20

$     .05

 

 

 















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


2015


2014

 

 

 

Income

 

 

  

Interest income

$      190

$      211

 

Other income

   51,312

    3,802

   51,502

    4,013

Share of income from Operating 
  Partnerships(Note D)


  385,233


   69,513

 

 

 

Expenses

 

 

  

 

 

Professional fees

21,544

30,888

Partnership management fee, net (Note C)

29,665

27,364

General and administrative expenses

   14,685

   11,453

  


   65,894


   69,705

 

 

 

 

 NET INCOME(LOSS)


$  370,841


$  3,821

 

 

 

Net income(loss) allocated to assignees

$  367,133

$  3,783

 

Net income(loss) allocated to general partner

$    3,708

$    38

Net income(loss) per BAC

$     .12

$     .00

 

 

 












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


2015


2014

 

 

 

Income

 

 

  

Interest income

$      370

$      323

  

Other income

  129,600

2,449,699

 

  129,970

2,450,022

Share of income from Operating 
  Partnerships(Note D)


   17,803


   81,308

 

 

 

Expenses

 

 

  

Professional fees

34,146

35,719

Partnership management fee, net (Note C)

59,347

35,557

 

General and administrative expenses

    22,719

   18,617

  


  116,212


   89,893

 

 

 

  NET INCOME(LOSS)

$  31,561

$2,441,437

 

 

 

Net income(loss) allocated to assignees

$  31,245

$2,417,023

 

Net income(loss) allocated to general partner

$    316

$  24,414

Net income(loss) per BAC

$    .01

$     .44









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)

 



Assignees



General
Partner





Total

 

 

 

 

Partners' capital
(deficit)
  April 1, 2015



$(12,058,821)



$(1,514,685)



$(13,573,506)

 

 

 

 

Contributions

-

1,298,874

1,298,874

 

 

 

 

Net income(loss)

   818,747

     8,271

    827,018

 

 

 

 

Partners' capital
(deficit),
  December 31, 2015



$(11,240,074)



$ (207,540)



$(11,447,614)

 

 

 

 


























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)

 

 


Assignees

General
Partner

Total

Series 7

 

 

 

Partners' capital
(deficit)
  April 1, 2015



$   (84,506)



$     84,506



$          -

 

 

 

 

Contributions

-

-

-

 

 

 

 

Net income(loss)

          -

          -

          -

 

 

 

 

Partners' capital
(deficit),
  December 31, 2015



$   (84,506)



$     84,506



$          -

 

 

 

 

 

 

 

 

Series 9

 

 

 

Partners' capital
(deficit)
  April 1, 2015



$(5,987,034)



$  (398,695)



$(6,385,729)

 

 

 

 

Contributions

-

-

-

 

 

 

 

Net income(loss)

   (68,611)

      (693)

   (69,304)

 

 

 

 

Partners' capital
(deficit),
  December 31, 2015



$(6,055,645)



$  (399,388)



$(6,455,033)

 

 

 

 



 

 

 

 

 

 

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)

 

 


Assignees

General
Partner

Total

Series 10

 

 

 

Partners' capital
(deficit)
  April 1, 2015



$ (1,090,133)



$ (207,893)



$ (1,298,026)

 

 

 

 

Contributions

-

1,298,874

1,298,874

 

 

 

 

Net income(loss)

     (840)

      (8)

     (848)

 

 

 

 

Partners' capital
(deficit),
  December 31, 2015



$ (1,090,973)



$1,090,973



$  -

 

 

 

 

 

 

 

 

Series 11

 

 

 

Partners' capital
(deficit)
  April 1, 2015



$   (183,585)



$ (218,708)



$   (402,293)

 

 

 

 

Contributions

-

-

-

 

 

 

 

Net income(loss)

     489,820

     4,948

     494,768

 

 

 

 

Partners' capital
(deficit),
  December 31, 2015



$    306,235



$ (213,760)



$    92,475

 

 

 

 









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)

 

 


Assignees

General
Partner

Total

Series 12

 

 

 

Partners' capital
(deficit)
  April 1, 2015



$(2,717,184)



$ (281,113)



$(2,998,297)

 

 

 

 

Contributions

-

-

-

 

 

 

 

Net income(loss)

    367,133

     3,708

    370,841

 

 

 

 

Partners' capital
(deficit),
  December 31, 2015



$(2,350,051)



$ (277,405)



$(2,627,456)

 

 

 

 

 

 

 

 

Series 14

 

 

 

Partners' capital
(deficit)
  April 1, 2015



$(1,996,379)



$ (492,782)



$(2,489,161)

 

 

 

 

Contributions

-

-

-

 

 

 

 

Net income(loss)

    31,245

     316

    31,561

 

 

 

 

Partners' capital
(deficit),
  December 31, 2015



$(1,965,134)



$ (492,466)



$(2,457,600)

 

 

 

 











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)

 

2015

2014

Cash flows from operating activities:

 

 

 

 

 

   Net Income(loss)

$    827,018

$   2,590,260

   Adjustments to reconcile net income
   (loss) to net cash (used in) provided by
    operating activities

 

 

      Share of Income from Operating
        Partnerships


(1,052,131)


(464,960)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses


-


30,500

     (Decrease) Increase in accounts
        payable affiliates


 (1,641,927)


 (2,399,533)

 

 

 

      Net cash (used in) provided by 
        operating activities


 (1,867,040)


  (243,733)

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships


   1,036,444


    464,960

 

 

 

   Net cash provided by
     investing activities


   1,036,444


    464,960

 

 

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

 

(830,596)

 

221,227

 

 

 

Cash and cash equivalents, beginning

   1,682,834

   1,095,990

 

 

 

Cash and cash equivalents, ending

$    852,238

$   1,317,217

 

Significant noncash investing and financing activities:

 

 

 

 

 

The general partner's equity balance was increased and accounts payable affiliates were reduced as a result of forgiveness of debt with an affiliate of the general partner.

 

 

 

 

$  1,298,874

 

 

 

 

$  -

 









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

 

 

2015

2014

Cash flows from operating activities:

 

 

 

 

 

   Net Income(loss)

$         -

$         -

   Adjustments to reconcile net income
   (loss) to net cash (used in) provided by
    operating activities

 

 

      Share of Income from Operating
        Partnerships


-


-

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses


-


-

     (Decrease) Increase in accounts
        payable affiliates


         -


         -

 

 

 

      Net cash (used in) provided by
        operating activities


         -


         -

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships


         -


         -

 

 

 

   Net cash provided by
     investing activities


         -


         -

 

 

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


-


-

 

 

 

Cash and cash equivalents, beginning

         -

         -

 

 

 

Cash and cash equivalents, ending

$         -

$         -

 

Significant noncash investing and financing activities:

 

 

 

 

 

The general partner's equity balance was increased and accounts payable affiliates were reduced as a result of forgiveness of debt with an affiliate of the general partner.

 

 

 

 

$  -

 

 

 

 

$  -

 

 

 

 

 

 

 

 

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

 

2015

2014

Cash flows from operating activities:

 

 

 

 

 

   Net Income(loss)

$  (69,304)

$   (7,039)

   Adjustments to reconcile net income
   (loss) to net cash (used in) provided by
    operating activities

 

 

      Share of Income from Operating
        Partnerships

 

(1,593)


(78,000)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses

 

-


5,000

     (Decrease) Increase in accounts
        payable affiliates


    45,811


  55,890

 

 

 

      Net cash (used in) provided by
        operating activities


  (25,086)


  (24,149)

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships


     1,593


    78,000

 

 

 

   Net cash provided by
     investing activities


     1,593


    78,000

 

 

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(23,493)


53,851

 

 

 

Cash and cash equivalents, beginning

   163,039

   120,474

 

 

 

Cash and cash equivalents, ending

$   139,546

$   174,325

 

 

 

Significant noncash investing and financing activities:

 

 

 

 

 

The general partner's equity balance was increased and accounts payable affiliates were reduced as a result of forgiveness of debt with an affiliate of the general partner.

 

 

 

 

$  -

 

 

 

 

$  -

 

 








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

 

2015

2014

Cash flows from operating activities:

 

 

 

 

 

   Net Income(loss)

$  (848)

$  14,855

   Adjustments to reconcile net income
   (loss) to net cash (used in) provided by
    operating activities

 

 

      Share of Income from Operating
        Partnerships


(72,293)


(76,000)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses


-


3,000

     (Decrease) Increase in accounts
        payable affiliates


 (204,884)


  46,305

 

 

 

      Net cash (used in) provided by
        operating activities


 (278,025)


  (11,840)

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships


    72,293


    76,000

 

 

 

   Net cash provided by
     investing activities


    72,293


    76,000

 

 

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

 

(205,732)

 

64,160

 

 

 

Cash and cash equivalents, beginning

   205,732

   146,318

 

 

 

Cash and cash equivalents, ending

$    -

$   210,478

 

 

 

Significant noncash investing and financing activities:

 

 

 

 

 

The general partner's equity balance was increased and accounts payable affiliates were reduced as a result of forgiveness of debt with an affiliate of the general partner.

 

 

 

 

$ 1,298,874

 

 

 

 

$  -

 







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

 

2015

2014

Cash flows from operating activities:

 

 

 

 

 

   Net Income(loss)

$   494,768

$   137,186

   Adjustments to reconcile net income
   (loss) to net cash (used in) provided by
    operating activities

 

 

      Share of Income from Operating
        Partnerships


(575,209)


(160,139)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses


-


5,000

     (Decrease) Increase in accounts
        payable affiliates


 (524,065)


  (35,194)

 

 

 

      Net cash (used in) provided by
        operating activities


 (604,506)


  (53,147)

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships


   575,209


   160,139

 

 

 

   Net cash provided by
     investing activities


   575,209


   160,139

 

 

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(29,297)


106,992

 

 

 

Cash and cash equivalents, beginning

   211,756

   156,017

 

 

 

Cash and cash equivalents, ending

$   182,459

$   263,009

 

 

 

Significant noncash investing and financing activities:

 

 

 

 

 

The general partner's equity balance was increased and accounts payable affiliates were reduced as a result of forgiveness of debt with an affiliate of the general partner.

 

 

 

 

$  -

 

 

 

 

$  -

 








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

 

2015

2014

Cash flows from operating activities:

 

 

 

 

 

   Net Income(loss)

$  370,841

$  3,821

   Adjustments to reconcile net income
   (loss) to net cash (used in) provided by
    operating activities

 

 

      Share of Income from Operating
        Partnerships


(385,233)

 

(69,513)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses


-


7,500

     (Decrease) Increase in accounts
        payable affiliates


 (350,829)


  (70,321)

 

 

 

      Net cash (used in) provided by
        operating activities


 (365,221)


 (128,513)

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships


   385,233


   69,513

 

 

 

   Net cash provided by
     investing activities


   385,233


   69,513

 

 

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


20,012


(59,000)

 

 

 

Cash and cash equivalents, beginning

   160,021

   297,212

 

 

 

Cash and cash equivalents, ending

$   180,033

$   238,212

 

 

 

Significant noncash investing and financing activities:

 

 

 

 

 

The general partner's equity balance was increased and accounts payable affiliates were reduced as a result of forgiveness of debt with an affiliate of the general partner.

 

 

 

 

$  -

 

 

 

 

$  -

 








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

 

2015

2014

Cash flows from operating activities:

 

 

 

 

 

   Net Income(loss)

$ 31,561

$ 2,441,437

   Adjustments to reconcile net income
   (loss) to net cash (used in) provided by
    operating activities

 

 

      Share of Income from Operating
        Partnerships


(17,803)


(81,308)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses


-


10,000

     (Decrease) Increase in accounts
        payable affiliates


(607,960)


(2,396,213)

 

 

 

      Net cash (used in) provided by
        operating activities


(594,202)


(26,084)

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships


  2,116


  81,308

 

 

   Net cash provided by
     investing activities


  2,116


  81,308

 

 

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(592,086)


55,224

 

 

 

Cash and cash equivalents, beginning

    942,286

    375,969

 

 

 

Cash and cash equivalents, ending

$    350,200

$    431,193

 

 

 

Significant noncash investing and financing activities:

 

 

 

 

 

The general partner's equity balance was increased and accounts payable affiliates were reduced as a result of forgiveness of debt with an affiliate of the general partner.

 

 

 

 

$  -

 

 

 

 

$  -

 







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, 2015

(Unaudited)

NOTE A - ORGANIZATION

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, 2015 1,036,100 BACs in Series 7, 4,156,429 BACs in Series 9, 2,421,225 BACs in Series 10, 2,486,499 BACs in Series 11, 2,947,595 BACs in Series 12, and 5,540,940 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, 2015 and for the three and 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, 2015

(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, 2015.

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, 2015 and 2014 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, 2015

(Unaudited)

NOTE C - RELATED PARTY TRANSACTIONS (continued)

 

The partnership management fee accrued for the quarters ended December 31, 2015 and 2014 are as follows:

 

      2015

      2014

Series 7

$         -

$         -

Series 9

     14,289

     18,630

Series 10

     9,290

     15,435

Series 11

     15,912

     23,514

Series 12

     10,707

     17,070

Series 14

     25,581

     38,001

 

 

 

$    75,779

$   112,650

 

The partnership management fee paid for the quarters ended December 31, 2015 and 2014 are as follows:

 

      2015

     2014

Series 7

$         -

$         -

Series 9

         -

          -

Series 10

     161,296

     -

Series 11

-

        111,085

Series 12

         -

-

Series 14

     -

2,427,668

 

 

 

 

161,296

2,538,753

 

The partnership management fee paid for the nine months ended December 31, 2015 and 2014 are as follows:

 

      2015

     2014

Series 7

$         -

$         -

Series 9

         -

          -

Series 10

     237,296

     -

Series 11

575,209

       111,085

Series 12

         385,233

121,531

Series 14

     687,128

2,514,668

 

 

 

 

1,884,866

$2,747,284

 

During the nine months ended December 31, 2015, the accrued partnership management fee balance of $1,298,874 for Series 10 has been forgiven, and the general partner has recorded this amount as a capital contribution.

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

December 31, 2015

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At December 31, 2015, and 2014 the Partnership had limited partnership interests in 48 and 63 Operating Partnerships, respectively, which own apartment complexes. The number of Operating Partnerships in which the Partnership had limited partnership interests at December 31, 2015 and 2014 by series is as follows:

 

2015

2014

Series 7

-

-

Series 9

8

9

Series 10

-

8

Series 11

9

11

Series 12

9

10

Series 14

 22

 25

 

 

 

 

 48

 63

 

 

 

 

 

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, 2015 and 2014 by series are as
follows:

 

2015

2014

Series 7

$      -

$      -

Series 9

-

-

Series 10

-

-

Series 11

-

-

Series 12

9,241

9,241

Series 14

145,046

160,733

 

 

 

 

$154,287

$169,974

 

 

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

December 31, 2015

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS - Continued

During the nine months ended December 31, 2015, the Partnership disposed of eleven Operating Partnerships. A summary of the disposition by Series for December 31, 2015 is as follows:

 

 

Operating Partnership Interest Transferred

 

Sale of Underlying Operating Partnership

 

Partnership Proceeds from Disposition *

 

Gain on Disposition

Series 7

-

 

-

 

$

-

 

$

-

Series 9

1

 

-

 

 

1,593

 

 

1,593

Series 10

7

 

-

 

 

72,293

 

 

72,293

Series 11

-

 

1

 

 

575,209

 

 

575,209

Series 12

-

 

1

 

 

385,233

 

 

385,233

Series 14

1

 

-

 

 

2,116

 

 

17,803

Total

9

 

2

 

$

1,036,444

 

$

1,052,131

 

* Partnership proceeds from disposition do not include $15,687, which was due to a write-off of capital contribution payable as of December 31, 2015, for Series 14.

 

During the nine months ended December 31, 2014, the Partnership disposed of thirteen Operating Partnerships. A summary of the disposition by Series for December 31, 2014 is as follows:

 

 

Operating Partnership Interest Transferred

 

Sale of Underlying Operating Partnership

 

Partnership Proceeds from Disposition

 

Gain on Disposition

Series 7

-

 

-

 

$

-

 

$

-

Series 9

-

 

1

 

 

78,000

 

 

78,000

Series 10

1

 

-

 

 

76,000

 

 

76,000

Series 11

3

 

1

 

 

160,139

 

 

160,139

Series 12

3

 

-

 

 

69,513

 

 

69,513

Series 14

4

 

-

 

 

81,308

 

 

81,308

Total

11

 

2

 

$

464,960

 

$

464,960

 

The gain 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, 2015.

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

December 31, 2015

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS - Continued

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,

(Unaudited)

 

 

                2015

                2014

 

 

 

Revenues

 

 

 

Rental

$  6,049,292

$  9,440,524

 

Interest and other

    164,119

    165,984

 

  6,213,411

  9,606,508

 

 

 

Expenses

 

 

 

Interest

730,857

1,168,915

 

Depreciation and amortization

1,434,769

2,342,878

Operating expenses

  4,708,397

  7,071,239

 

  6,874,023

 10,583,032

 

 

 

NET LOSS

$  (660,612)

$  (976,524)

 

 

 

 

Net loss allocated to Boston Capital
Tax Credit Fund II Limited 
Partnership*



$  (654,006)



$  (966,758)

 

 

 

 

 

 

 

Net loss allocated to other partners

$    (6,606)

$    (9,766)

 

 

 

 

*Amounts include $654,006 and $966,758 for 2015 and 2014, 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, 2015

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS - Continued


COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,

(Unaudited)

Series 7

 

                2015

                2014

 

 

 

Revenues

 

 

 

Rental

$          -

$          -

 

Interest and other

          -

          -

 

          -

          -

 

 

 

Expenses

 

 

 

Interest

-

-

 

Depreciation and amortization

-

-

Operating expenses

          -

          -

 

          -

          -

 

 

 

NET LOSS

$          -

$          -

 

 

 

 

Net loss allocated to Boston Capital
Tax Credit Fund II Limited
Partnership*



$          -



$          -

 

 

 

 

 

 

 

Net loss allocated to other partners

$          -

$          -

 

 

 

 

*Amounts include $0 for 2015 and 2014, 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, 2015

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS - Continued

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

Series 9

 

 

                 2015

            2014

 

 

 

Revenues

 

 

 

Rental

$  1,239,725

$ 1,475,316

 

Interest and other

     27,775

     32,289

 

  1,267,500

  1,507,605

 

 

 

Expenses

 

 

 

Interest

146,582

186,711

 

Depreciation and amortization

317,344

372,558

 

Operating expenses

   974,650

  1,052,733

 

  1,438,576

  1,612,002

 

 

 

NET LOSS

$  (171,076)

$  (104,397)

 

 

 

 

Net loss allocated to Boston Capital
Tax Credit Fund II Limited
Partnership*



$  (169,365)



$  (103,353)

 

 

 

 

 

 

 

Net loss allocated to other partners

$    (1,711)

$    (1,044)

 

 

 

 

*Amounts include $169,365 and $103,353 for 2015 and 2014, 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, 2015

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 10

 

 

                 2015

            2014

 

 

 

Revenues

 

 

 

Rental

$  -

$ 1,101,019

 

Interest and other

     -

    22,995

 

  -

 1,124,014

 

 

 

Expenses

 

 

 

Interest

-

122,289

 

Depreciation and amortization

-

276,257

 

Operating expenses

    -

  946,075

 

  -

 1,344,621

 

 

 

NET LOSS

$  -

$ (220,607)

 

 

 

 

Net loss allocated to Boston Capital
Tax Credit Fund II Limited
Partnership*



$  -



$ (218,401)

 

 

 

 

 

 

 

Net loss allocated to other partners

$  -

$   (2,206)

 

 

 

 

*Amounts include $0 and $218,401 for 2015 and 2014, 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, 2015

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 11

 

                2015

            2014

 

 

 

Revenues

 

 

Rental

$  1,426,539

$  2,159,244

 

Interest and other

     21,559

     32,752

 

  1,448,098

  2,191,996

 

 

 

Expenses

 

 

 

Interest

154,483

249,449

 

Depreciation and amortization

339,441

530,579

 

Operating expenses

  1,081,548

  1,552,569

 

  1,575,472

  2,332,597

 

 

 

NET LOSS

$ (127,374)

$  (140,601)

 

 

 

 

Net loss allocated to Boston Capital
Tax Credit Fund II Limited
Partnership*



$  (126,100)



$  (139,195)

 

 

 

 

 

 

 

Net loss allocated to other partners

$    (1,274)

$    (1,406)

 

 

 

 

*Amounts include $126,100 and $139,195 for 2015 and 2014, 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, 2015

(Unaudited)

 

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 12

 

               2015

            2014

 

 

 

Revenues

 

 

 

Rental

$   852,232

$  1,340,407

 

Interest and other

     75,043

     19,659

 

   927,275

  1,360,066

 

 

 

Expenses

 

 

 

Interest

119,838

177,095

 

Depreciation and amortization

196,560

295,322

 

Operating expenses

    671,991

   988,708

 

   988,389

  1,461,125

 

 

 

NET LOSS

$   (61,114)

$  (101,059)

 

 

 

 

Net loss allocated to Boston Capital
Tax Credit Fund II Limited
Partnership*



$   (60,503)



$  (100,048)

 

 

 

 

 

 

 

Net loss allocated to other partners

$     (611)

$    (1,011)

 

 

 

 

*Amounts include $60,503 and $100,048 for 2015 and 2014, 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, 2015

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)


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

Series 14

 

                2015

            2014

 

 

 

Revenues

 

 

 

Rental

$  2,530,796

$  3,364,538

 

Interest and other

     39,742

     58,289

 

  2,570,538

  3,422,827

 

 

 

Expenses

 

Interest

309,954

433,371

 

Depreciation and amortization

581,424

868,162

 

Operating expenses

  1,980,208

  2,531,154

 

  2,871,586

  3,832,687

 

 

 

NET LOSS

$  (301,048)

$  (409,860)

 

 

 

 

Net loss allocated to Boston Capital
Tax Credit Fund II Limited
Partnership*



$  (298,038)



$  (405,761)

 

 

 

 

 

 

 

Net loss allocated to other partners

$    (3,010)

$    (4,099)

 

 

 

 

*Amounts include $298,038 and $405,761 for 2015 and 2014, 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, 2015
(Unaudited)

NOTE E - TAXABLE LOSS

The taxable loss for the calendar year ended December 31, 2015 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 2011 remain open.

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
December 31, 2015
(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 expected 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 has taken longer than originally projected. At this time, the General Partner estimates that an additional two to four years will be needed to effectuate the liquidation as approved by the BAC holders, and the final liquidating distribution may occur months after all of the apartment complexes have been sold. As liquidation is not imminent, the Partnership will continue to report as a going concern.

 

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, 2015. 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, 2015 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, 2015 and 2014 in the amount of $178,829 and $2,481,680. 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, 2015 were $75,779 and total partnership management fees accrued as of December 31, 2015 were $11,981,977. During the nine months ended December 31, 2015, the Partnership paid $1,884,866 accrued partnership management fees and the accrued balance of $1,298,874 in Series 10 has been forgiven. The general partner has recorded this amount as a capital contribution. 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, 2015, 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, 2015, 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, 2015, no payments were made to an affiliate of the general partner.

 

Capital Resources

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, 2015 the Partnership had $852,238 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, 2015, 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

8

139,546

10

24,288,997

2,428,925

08/24/90

-

-

11

24,735,002

2,489,599

12/27/90

9

182,459

12

29,710,003

2,972,795

04/30/91

9

180,033

14

 55,728,997

 5,574,290

01/27/92

 22

   350,200

 

 

 

 

 

 

 

$186,398,017

18,679,738

 

 48

$ 852,238

 

 

 

 

 

 

 

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 9,11,12 and 14 as of December 31, 2015 are $139,546, $182,459, $170,792 and $192,554, respectively.

 

(Series 8) No BACs with respect to Series 8 were offered.

 

(Series 13) No BACs with respect to Series 13 were offered.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Results of Operations

As of December 31, 2015 and 2014 the Partnership held limited partnership interests in 48 and 63 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 nine months ended December 31, 2015 are as follows:

 

3 Months
Gross
Management Fee


3 Months
Reporting Fee

3 Months Management
Fee
Net of Reporting Fee

Series 7

$       -

$       -

$        -

Series 9

14,289

4,741

9,548

Series 10

9,290

10,000

(710)

Series 11

15,912

2,035

13,877

Series 12

10,707

1,328

9,379

Series 14

  25,581

  13,179

  12,402

 

$  75,779

$  31,283

$ 44,496

 

 

 

 

9 Months
Gross
Management Fee


9 Months
Reporting Fee

9 Months Management
Fee
Net of Reporting Fee

Series 7

$       -

$       -

$       -

Series 9

45,811

9,192

36,619

Series 10

32,412

11,605

20,807

Series 11

51,144

6,215

44,929

Series 12

34,404

4,739

29,665

Series 14

  79,168

  19,821

  59,347

 

$ 242,939

$  51,572

$ 191,367

 

 

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, 2015 and 2014.

(Series 9)

As of December 31, 2015 and 2014, the average Qualified Occupancy for the series was 100%. The series had a total of 8 properties at December 31, 2015, all of which were at 100% Qualified Occupancy.

For the periods ended December 31, 2015 and 2014, Series 9 reflects loss from Operating Partnerships of $(171,076) and $(104,397), respectively, which includes depreciation and amortization of $317,344 and $372,558, respectively. This is an interim period estimate; it is not indicative of the final year end results.

 

In April 2014, the operating general partner of Kristin Park Apartments Limited entered into an agreement to sell the property to an entity affiliated with the operating general partner and the transaction closed on November 14, 2014. The sales price of the property was $1,376,484, which included the outstanding mortgage balance of approximately $1,291,484 and cash proceeds to the investment partnership of $85,000. Of the total proceeds received by the investment partnership, $2,000 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 include third party legal costs. The remaining proceeds from the sale of $78,000 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 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 sale of the Operating Partnership has been recorded in the amount of $78,000 as of December 31, 2014.

 

In July 2015 the investment general partner transferred its interest in Longmeadow Housing Associates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,349,196 and cash proceeds to the investment partnership of $1,593. The total proceeds of approximately $1,593 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 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 $1,593 as of September 30, 2015.

 

The investment general partner will continue to monitor the following Operating Partnership because of operational or other issues. However, this Operating Partnership has exited its LIHTC compliance period and there is therefore no risk to past credit delivery.

 

Glenwood Hotel Investors

 

 

 

(Series 10)

As of December 31, 2014, the average Qualified Occupancy for the series was 100%. The series did not have any properties as of December 31, 2015.

For the periods ended December 31, 2015 and 2014, Series 10 reflects net loss from Operating Partnerships of $0 and $(220,607), respectively, which includes depreciation and amortization of $0 and $276,257, respectively. This is an interim period estimate; it is not indicative of the final year end results.

 

In February 2015, the investment general partner transferred their respective interests in Maidu Properties, A California Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $867,063 and cash proceeds to the investment partnerships of $347,534, $391,899, and $810,567 for Series 10, Series 11, and Series 14, respectively. Of the total proceeds received, $2,803, $3,160, and $6,537 for Series 10, Series 11, and Series 14, respectively, were paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $344,731, $388,739 and $804,030 were returned to cash reserves held by Series 10, Series 11, and Series 14, respectively. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership 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 $344,731, $388,739, and $804,030 by Series 10, Series 11, and Series 14, respectively, as of March 31, 2015.

 

In December 2014, the investment general partner transferred its interest in Candlewick Place to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,144,978 and cash proceeds to the investment partnership of $80,000. Of the total proceeds received, $1,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $76,000 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 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 $76,000 as of December 31, 2014.

 

In July 2015 the investment general partner transferred its interest in Woodside Housing Associates, Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,352,983 and cash proceeds to the investment partnership of $1,593. The total proceeds of approximately $1,593 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 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 $1,593 as of September 30, 2015.

 

In December 2015 the investment general partner transferred its interest in Autumn Lane LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $670,330 and cash proceeds to the investment partnership of $5,000. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $2,500 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 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 $2,500 as of December 31, 2015.

 

In December 2015 the investment general partner transferred its interest in Cedarstone Associates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $702,335 and cash proceeds to the investment partnership of $19,200. Of the total proceeds received, $3,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $16,200 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 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 $16,200 as of December 31, 2015.

 

In November 2015 the investment general partner transferred its interest in Housing Investors of Athens II LP to a non-affiliated entity for its assumption of the outstanding mortgage balance of approximately $1,222,169 and cash proceeds to the investment partnership of $24,000. Of the total proceeds received, $1,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $22,500 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 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 $22,500 as of December 31, 2015.

 

In December 2015 the investment general partner transferred its interest in Meadowbrook Properties II LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,333,968 and cash proceeds to the investment partnership of $5,000. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $2,500 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 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 $2,500 as of December 31, 2015.

 

In December 2015 the investment general partner transferred its economic interest in Stratford Square, Limited Partnership to an unrelated third party for its assumption of the outstanding mortgage balance of approximately $689,260 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $9,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $13,500 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 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 $13,500 as of December 31, 2015.

 

In December 2015 the investment general partner transferred its interest in Summer Glen of Immokalee to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,334,168 and cash proceeds to the investment partnership of $16,000. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $13,500 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 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 $13,500 as of December 31, 2015.

 

(Series 11)

As of December 31, 2015 and 2014 the average Qualified Occupancy for the series was 100%. The series had a total of 9 properties at December 31, 2015, all of which were at 100% Qualified Occupancy.

For the periods ended December 31, 2015 and 2014, Series 11 reflects net loss from Operating Partnerships of $(127,374) and $(140,601), respectively, which includes depreciation and amortization of $339,441 and $530,579, respectively. This is an interim period estimate; it is not indicative of the final year end results.

 

In April 2013, the investment general partner transferred 49.99% of its interest in RPI Limited Partnership #18 to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,155,533 and cash proceeds to the investment partnership of $18,811. Of the proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $13,811 were returned to cash reserves held by Series 11. The remaining 50.01% investment limited partner interest in the Operating Partnership transferred in April 2014 for cash proceeds of $190, which were returned to the cash reserves held by Series 11. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In 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 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 transfer of the Operating Partnership of the proceeds from the transfer, net of the overhead and expenses, was recorded in the amount of $13,811 as of June 30, 2013, and $190 as June 30, 2014.

 

On September 29, 2014 the operating general partner of Elderly Housing of Macon, Limited Partnership sold the property to an entity affiliated with the operating general partner. The sales price of the property was $1,607,344, which included the outstanding mortgage balance of approximately $1,452,382 and cash proceeds to the investment partnership of $154,962. Of the total proceeds received by the investment partnership, $38,877 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 include third party legal costs. The remaining proceeds from the sale of $111,085 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, was recorded in the amount of $111,085 as of September 30, 2014.

 

In December 2014, the investment general partner transferred its interest in Kaplan Manor Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $860,256 and cash proceeds to the investment partnership of $26,496. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $23,996 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 transfer of the Operating Partnership of the proceeds from the transfer, net of the overhead and expenses, was recorded in the amount of $23,996 as of December 31, 2014.

 

In December 2014, the investment general partner transferred its interest in Washington Manor Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $888,362 and cash proceeds to the investment partnership of $27,368. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $24,868 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 transfer of the Operating Partnership of the proceeds from the transfer, net of the overhead and expenses, was recorded in the amount of $24,868 as of December 31, 2014.

 

In February 2015, the investment general partner transferred their respective interests in Maidu Properties, A California Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $867,063 and cash proceeds to the investment partnerships of $347,534, $391,899, and $810,567 for Series 10, Series 11, and Series 14, respectively. Of the total proceeds received, $2,803, $3,160, and $6,537 for Series 10, Series 11, and Series 14, respectively, were paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $344,731, $388,739 and $804,030 were returned to cash reserves held by Series 10, Series 11, and Series 14, respectively. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership 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 $344,731, $388,739, and $804,030 by Series 10, Series 11, and Series 14, respectively, as of March 31, 2015.

 

In April 2015, the operating general partner of Ivan Woods Limited Dividend Housing Association Limited Partnership entered into an agreement to sell the property to a non-affiliated entity and the transaction closed on June 26, 2015. The sales price of the property was $3,650,000, which included the outstanding mortgage balance of approximately $2,233,027 and total cash proceeds to the investment partnerships of $963,073. Of the total proceeds received by the investment partnerships, $1,989 and $1,331 for Series 11 and Series 12, respectively, were paid to BCAMLP for expenses related to the sale, which include third party legal costs. The remaining proceeds from the sale of $574,796 and $384,957 were returned to cash reserves held by Series 11 and Series 12, respectively. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnerships. After all outstanding obligations of the investment partnerships 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 Partnerships, which were applied against the investment partnership's investment in the Operating Partnerships in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnerships to zero. Accordingly, a gain on the sale of the Operating Partnerships of the proceeds from the sale, net of the overhead and expenses, was recorded in the amount of $574,796 and $384,957 for Series 11 and Series 12, respectively, as of June 30, 2015. In July 2015, additional proceeds of $413 and $276 were received and returned to the cash reserves held by Series 11 and Series 12.

 

The investment general partner will continue to monitor the following Operating Partnership because of operational or other issues. However, this Operating Partnership has exited its LIHTC compliance period and there is therefore no risk to past credit delivery.

 

South Fork Heights, Limited

 

(Series 12)

 

As of December 31, 2015 and 2014, the average Qualified Occupancy for the series was 100%. The series had a total of 9 properties at December 31, 2015, all of which were at 100% Qualified Occupancy.

 

For the periods ended December 31, 2015 and 2014, Series 12 reflects net loss from Operating Partnerships of $(61,114) and $(101,059), respectively, which includes depreciation and amortization of $196,560 and $295,322, respectively. This is an interim period estimate; it is not indicative of the final year end results.

 

In December 2014, the investment general partner transferred its interest in Melville Plaza Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $824,349 and cash proceeds to the investment partnership of $25,427. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $22,927 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 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 $22,927 as of December 31, 2014.

 

In December 2014, the investment general partner transferred its interest in Oakleigh Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $845,207 and cash proceeds to the investment partnership of $26,054. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $23,554 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 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 $23,554 as of December 31, 2014.

 

In December 2014, the investment general partner transferred its interest in Oakwood Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $821,095 and cash proceeds to the investment partnership of $25,532. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $23,032 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 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 $23,032 as of December 31, 2014.

 

In April 2015, the operating general partner of Ivan Woods Limited Dividend Housing Association Limited Partnership entered into an agreement to sell the property to a non-affiliated entity and the transaction closed on June 26, 2015. The sales price of the property was $3,650,000, which included the outstanding mortgage balance of approximately $2,233,027 and total cash proceeds to the investment partnerships of $963,073. Of the total proceeds received by the investment partnerships, $1,989 and $1,331 for Series 11 and Series 12, respectively, were paid to BCAMLP for expenses related to the sale, which include third party legal costs. The remaining proceeds from the sale of $574,796 and $384,957 were returned to cash reserves held by Series 11 and Series 12, respectively. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnerships. After all outstanding obligations of the investment partnerships 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 Partnerships, which were applied against the investment partnership's investment in the Operating Partnerships in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnerships to zero. Accordingly, a gain on the sale of the Operating Partnerships of the proceeds from the sale, net of the overhead and expenses, was recorded in the amount of $574,796 and $384,957 for Series 11 and Series 12, respectively, as of June 30, 2015. In July 2015, additional proceeds of $413 and $276 were received and returned to the cash reserves held by Series 11 and Series 12.

 

The investment general partner will continue to monitor the following Operating Partnerships because of operational or other issues. However, these Operating Partnerships have all exited their LIHTC compliance period and there is therefore no risk to past credit delivery.

 

BB&L Enterprises

Briarwick Apartments, Limited, A KY Limited Partnership

Jessup Limited Partnership

(Series 14)

 

As of December 31, 2015 and 2014, the average Qualified Occupancy for the series was 100%. The series had a total of 22 properties at December 31, 2015, all of which were at 100% Qualified Occupancy.

For the periods ended December 31, 2015 and 2014, Series 14 reflects net loss from Operating Partnerships of $(301,048) and $(409,860), respectively, which includes depreciation and amortization of $581,424 and $868,162, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Lakeview Meadows LDHA L.P. (Lakeview Meadows) is a 53-unit elderly apartment complex located in Battle Creek, MI. On June 16, 2014, the property experienced a devastating fire, rendering all units uninhabitable. The cause was determined to be unattended smoking materials. All residents have been housed by family, friends, or the Red Cross. There were no injuries. The investment general partner received $2,427,668 from the insurance company which has been recorded as other income, as of December 31, 2014. The 15-year low-income housing tax credit compliance period for Lakeview Meadows LDHA L.P. ended on December 31, 2006.

 

In December 2014, the investment general partner transferred its interest in Lakeview Meadows LDHA to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,234,500 and nominal cash proceeds to the investment partnership. There were no cash proceeds available to pay expenses related to the transfer and no proceeds were returned to cash reserves held by Series 14. 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, no gain on the transfer of the Operating Partnership has been recorded as of December 31, 2014.

 

In December 2014, the investment general partner transferred its interest in Blanchard Senior Apartments to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $553,590 and cash proceeds to the investment partnership of $23,424. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $20,924 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 transfer of the Operating Partnership of the proceeds from the transfer, net of the overhead and expense reimbursement, was recorded in the amount of $20,924 as of December 31, 2014.

 

In September 2014, the investment general partner transferred its interest in New River Overlook Associates to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,368,712 and cash proceeds to the investment partnership of $40,000. Of the total proceeds received, $3,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $37,000 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership of the proceeds from the transfer, net of the overhead and expense reimbursement, was recorded in the amount of $37,000 as of September 30, 2014.

 

In December 2014, the investment general partner its interest in Hessmer Village Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $838,611 and cash proceeds to the investment partnership of $25,884. Of the total proceeds received, $2,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $23,384 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 transfer of the Operating Partnership of the proceeds from the transfer, net of the overhead and expense reimbursement, was recorded in the amount of $23,384 as of December 31, 2014.

 

In February 2015, the investment general partner transferred their respective interests in Maidu Properties, A California Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $867,063 and cash proceeds to the investment partnerships of $347,534, $391,899, and $810,567 for Series 10, Series 11, and Series 14, respectively. Of the total proceeds received, $2,803, $3,160, and $6,537 for Series 10, Series 11, and Series 14, respectively, were paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $344,731, $388,739 and $804,030 were returned to cash reserves held by Series 10, Series 11, and Series 14, respectively. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership 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 $344,731, $388,739, and $804,030 by Series 10, Series 11, and Series 14, respectively, as of March 31, 2015.

 

In January 2015, the investment general partner transferred its interest in Victoria Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,144,922 and cash proceeds to the investment partnership of $130,400. Of the total proceeds received, $9,057 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the proceeds from the transfer, $3,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds from the transfer of approximately $118,343 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 transfer of the Operating Partnership of the proceeds from the transfer, net of the overhead and expense reimbursement, was recorded in the amount of $118,343 as of March 31, 2015.

 

In July 2015 the investment general partner transferred its interest in Topsham Housing Associates to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,030,495 and cash proceeds to the investment partnership of $2,116. The total proceeds of approximately $2,116 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 transfer of the Operating Partnership of the proceeds from the transfer, net of the overhead and expense reimbursement, was recorded in the amount of $2,116 as of September 30, 2015. In addition, equity outstanding for the Operating Partnership in the amount of $15,687 was recorded as gain on the transfer of the Operating Partnership as of September 30, 2015.

 

The investment general partner will continue to monitor the following Operating Partnership because of operational or other issues. However, this Operating Partnership has exited its LIHTC compliance period and there is therefore no risk to past credit delivery.

 

Beckwood Manor Six Limited Partnership

Bridge Coalition Limited Partnership

 

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 Pronouncements

In February, 2015, the FASB issued ASU No. 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis". This will improve certain areas of consolidation guidance for reporting organizations that are required to evaluate whether to consolidate certain legal entities such as limited partnerships, limited liability corporations, and securitization structures. ASU 2015-02 simplified and improves GAAP by: eliminating the presumption that a general partner should consolidate a limited partnership, eliminating the indefinite deferral of FASB Statement No. 167, thereby reducing the number of Variable Interest Entity (VIE) consolidation models from four to two (including the limited partnership consolidation model), and clarifying when fees paid to a decision maker should be a factor to include in the consolidation of VIEs. ASU 2015-02 will be effective for periods beginning after December 15, 2015. The Partnership is currently evaluating the potential impact of the adoption of this guidance on its financial statements.

 

 

 

Item 3

Quantitative and Qualitative Disclosure About Market Risk

 

 

 

Not Applicable

 

Item 4

Controls and Procedures

 

 

 

 

(a)

Evaluation of Disclosure Controls and Procedures

 

 

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.

 

 

 

 

(b)

Changes in Internal Controls

 

 

There were no changes in the Partnership's internal control over financial reporting that occurred during the quarter ended December 31, 2015 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

 

 

 

None

 

 

Item 1A.

Risk Factors

 

 

 

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, 2015.

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

 

 

None

 

 

Item 3.

Defaults upon Senior Securities

 

 

 

None

 

 

Item 4.

Mine Safety Disclosures

 

 

 

Not Applicable

 

 

Item 5.

Other Information

 

 

 

None

 

 

Item 6.

Exhibits 

 

 

 

(a)Exhibits

 

 

 

 

31.a Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herein

 

 

 

 

31.b Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herein

 

 

 

 

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

 

 

 

 

 

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

 

 

 

 

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, 2015 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, filed herein

 

 

 

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.

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

 

 

 

 

By:

Boston Capital Associates II Limited
Partnership, General Partner

 

 

 

 

 

By:

BCA Associates Limited Partnership,
General Partner

 

 

 

 

 

By:

C&M Management, Inc.,
General Partner

 

 

 

 

Date: February 12, 2016

/s/ John P. Manning

 

John P. Manning

 

 

 





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 12, 2016

/s/ John P. Manning
John P. Manning

Director, President
(Principal Executive
Officer), C&M Management
Inc.; Director, President
(Principal Executive
Officer) BCTC II Assignor Corp.



DATE:

SIGNATURE:

TITLE:

February 12, 2016

/s/ Marc N. Teal
Marc N. Teal

Chief Financial Officer
(Principal Financial and
Accounting Officer), C&M Management Inc; Chief
Financial Officer (Principal
Financial and Accounting
Officer) BCTC II Assignor Corp.