10-Q 1 dec0010q.htm Boston Capital Tax Credit Fund III L

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


/X/QUARTERLY REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES

EXCHANGE ACT OF 1934.

      For the quarterly period ended December 31, 2000

or

/ /TRANSITION REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the transition period from _______ to _______

Commission file number 0-19443

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)

617-624-8900

(Registrants telephone number, including area code)

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15 (d) of the Securities Exchange Act of 1934 during the 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

 

/X/

  

 

No

 

/ /

 

 

 

 

 

BOSTON CAPITAL TAX CREDIT FUND II LIMITED PARTNERSHIP

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED December 31, 2000

TABLE OF CONTENTS

FOR THE QUARTER ENDED DECEMBER 31, 2000

BALANCE SHEETS

Balance_Sheet_Series_07 Page 5

Balance_Sheet_Series_09 Page 6

Balance_Sheet_Series_10 Page 7

Balance_Sheet_Series_11 Page 8

Balance_Sheet_Series_12 Page 9

Balance_Sheet_Series_14 Page 10

Statement_of_Operations_Three_Months

Three Months Ended DECEMBER 31,

Statement_of_Operations_Series_07 Page 12

Statement_of_Operations_Series_09 Page 13

Statement_of_Operations_Series_10 Page 14

Statement_of_Operations_Series_11 Page 15

Statement_of_Operations_Series_12 Page 16

Statement_of_Operations_Series_14 Page 17

nine Months Ended DECEMBER 31,

Statement_of_Operations_Nine_Months

Nine_Months_Operations_Series_07 Page 19

Nine_Months_Operations_Series_09 Page 20

Nine_Months_Operations_Series_10 Page 21

Nine_Months_Operations_Series_11 page 22

Nine_Months_Operations_Series_12 page 23

Nine_Months_Operations_Series_14 page 24

STATEMENTS OF CHANGES IN PARTNERS CAPITAL

Nine Months Ended DECEMBER 31,

Partners_Capital_Series_7 page 26

Partners_Capital_Series_9 page 26

Partners_Capital_Series_10 page 27

Partners_Capital_Series_11 Page 27

Partners_Capital_Series_12 Page 28

Partners_Capital_Series_14 Page 28

Statement_of_Cash_Flows

NINE Months Ended DECEMBER 31,

Cash_Flows_Series_7 page 30

Cash_Flows_Series_9 Page 31

Cash_Flows_Series_10 Page 32

Cash_Flows_Series_11 page 33

Cash_Flows_Series_12 page 34

Cash_Flows_Series_14 Page 35

 

BOSTON CAPITAL TAX CREDIT FUND II LIMITED PARTNERSHIP

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED December 31, 2000

 

Notes_to_Financial_Statements

Note_A_Organization Page 36

Note_B_Accounting_Financial_Reporting Page 37

Note_C_Related_Party_Transaction page 37

Note_D_Investments page 39

Combined_Statements_of_Operations

Combined_Statements_Series_7 Page 40

Combined_Statements_Series_9 Page 41

Combined_Statements_Series_10 page 42

Combined_Statements_Series_11 Page 43

Combined_Statements_Series_12 page 44

Combined_Statements_Series_14 Page 45

NOTE_E_TAXABLE_LOSS Page 46

Liquidity page 47

Capital_Resources page 47

Results_of_Operations Page 48

Part_II_Other_Information

Signatures page 54

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table_of_Contents

Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS

 

 

December 31,

2000

(Unaudited)

March 31,

2000

(Audited)

ASSETS

INVESTMENTS IN OPERATING PARTNERSHIPS (Note D)

$ 42,532,073

$ 46,636,873

OTHER ASSETS

Cash and cash equivalents

1,390,848

1,512,272

Notes receivable

543,584

543,584

Deferred acquisition costs (Note B)

1,056,215

1,092,637

Other assets

914,308

799,453
 

$46,437,028

$50,584,819
     

LIABILITIES

    


Accounts payable

$      1,380

$      1,380

Accounts payable affiliates (Note C)

21,395,160

19,467,919

   

Capital contributions payable (Note D)

261,103

261,103

21,657,643

19,730,402

PARTNERS' CAPITAL

    
     

Limited Partners

  

Units of limited partnership

Interest, $10 stated value per BAC;

20,000,000 authorized BACs;

18,679,738 issued and outstanding

 

 

 

 

 

 

26,148,304

 

 

 

 

 

32,162,586

General Partner

(1,368,919)

(1,308,169)

24,779,385

30,854,417

$ 46,437,028

$ 50,584,819

 

 

 

The accompanying notes are an integral part of this statement

Table_of_Contents

Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS

Series 7

 

 

December 31,
2000
(Unaudited)

March 31,
2000
(Audited)

ASSETS

 

 

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

 

$ 577,141

 

$ 705,120

OTHER ASSETS

    

Cash and cash equivalents

5,612

   4,929

Notes receivable

-

-

Deferred acquisition costs (Note B)

-

-

Other assets

61,142

57,517

$ 643,895

$ 767,566
     

LIABILITIES

    
     

Accounts payable
  

$      -

$      -

Accounts payable affiliates (Note C)

1,257,809

1,155,639

Capital contributions payable (Note D)

-

-
 

1,257,809

1,155,639
     

PARTNERS' CAPITAL

    
     

Limited Partners
  

Units of limited partnership
interest, $10 stated value per
   BAC; 20,000,000 authorized BACs;
   1,036,100 issued and outstanding

 

 

 

 

 

(517,849)

 

 

 

 

 

(294,266)

General Partner

(96,065)

(93,807)

(613,914)

(388,073)

$ 643,895

$ 767,566


 

 

The accompanying notes are an integral part of this statement

 

Table_of_Contents

Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS

Series 9



December 31,
2000
(Unaudited)

March 31,
2000
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (Note D)

 

$6,665,176

 

$7,491,734
     

OTHER ASSETS

Cash and cash equivalents

342,168

   335,866

Notes receivable

-

-

Deferred acquisition costs (Note B)

18,920

19,572

Other assets

206,598

204,244

$7,232,862

$8,051,416
     

LIABILITIES

    
     

Accounts payable

$        -

$         -

Accounts payable affiliates (Note C)

5,040,566

4,608,729

Capital contributions payable (Note D)

-

-

5,040,566

4,608,729
     

PARTNERS' CAPITAL

    

Limited Partners
  

Units of limited partnership    
   Interest, $10 stated value per
   BAC; 20,000,000 authorized BACs;
   4,178,029 issued and outstanding

 

 

 

 

 

2,530,713

  

 

 

 

 

 

3,768,600

General Partner

(338,417)

(325,913)

2,192,296

3,442,687

$7,232,862

$8,051,416




The accompanying notes are an integral part of this statement

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS

Series 10



December 31,
2000
(Unaudited)

March 31,
2000
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (Note D)

 

$6,512,016

 

$6,885,117

OTHER ASSETS

    

Cash and cash equivalents

110,514

   121,866

Notes receivable

-

-

Deferred acquisition costs (Note B)

74,850

77,431

Other assets

41,472

42,154
 

$6,738,852

$7,126,568
     

LIABILITIES

    
     

Accounts payable

$     -

$        -

Accounts payable affiliates (Note C)

3,317,130

3,050,496

Capital contributions payable (Note D)

-

-

3,317,130

3,050,496
     

PARTNERS' CAPITAL

    
     

Limited Partners
  
Units of limited partnership    
   Interest, $10 stated value per
   BAC; 20,000,000 authorized BACs;
   2,428,925 issued and outstanding

 

 

 

 

 

3,598,318

 

 

 

 

 

4,246,124

General Partner

(176,596)

(170,052)

3,421,722

4,076,072

$6,738,852

$7,126,568



The accompanying notes are an integral part of this statement

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS

Series 11



December 31,
2000
(Unaudited)

March 31,
2000
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING  

   PARTNERSHIPS (NOTE D)

 

$ 7,472,820

 

$ 8,097,883

OTHER ASSETS

    

Cash and cash equivalents

377,012

  389,019

Notes receivable

-

-

Deferred acquisition costs (Note B)

37,938

39,247

Other assets

67,731

68,870

$ 7,955,501

$8,595,019
     

LIABILITIES

    

Accounts payable

$         -

$          -

Accounts payable affiliates (Note C)

2,521,774

2,277,513

Capital contributions payable (Note D)

22,528

22,528

2,544,302

2,300,041
     

PARTNERS' CAPITAL

    
     

Limited Partners
  
Units of limited partnership    
   Interest, $10 stated value per
   BAC; 20,000,000 authorized BACs;
   2,489,599 issued and outstanding

 

 

 

 

 

5,571,772

 

 

 

 

 

6,446,713

General Partner

(160,573)

(151,735)

5,411,199

6,294,978

$ 7,955,501

$ 8,595,019



The accompanying notes are an integral part of this statement

Table_of_Contents

Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS

Series 12



December 31,
2000
(Unaudited)

March 31,
2000
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (NOTE D)    

 

$ 7,539,671

 

$ 8,296,388

OTHER ASSETS

    

Cash and cash equivalents

50,443

  68,437

Notes receivable

-

-

Deferred acquisition costs (Note B)

289,641

299,628

Other assets

105,927

105,927

$ 7,985,682

$ 8,770,380
     

LIABILITIES

    
     

Accounts payable

$     -

$      -

Accounts payable affiliates (Note C)

3,161,502

2,868,059

Capital contributions payable (Note D)

11,405

11,405

3,172,907

2,879,464
     

PARTNERS' CAPITAL

    
     

Limited Partners
  
   Units of limited partnership    
   Interest, $10 stated value per
   BAC; 20,000,000 authorized BACs;
   2,972,795 issued and outstanding

 

 

 

 

 

5,021,906

 

 

 

 

 

6,089,266

General Partner

(209,131)

(198,350)

4,812,775

5,890,916

$ 7,985,682

 

$8,770,380

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of this statement

 

Table_of_Contents

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership
BALANCE SHEETS

Series 14



December 31,
2000
(Unaudited)

March 31,
2000
(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (NOTE D)    

 

$13,765,250

 

$ 15,160,631

OTHER ASSETS

    

Cash and cash equivalents

505,099

  592,155

Notes receivable

543,584

543,584

Deferred acquisition costs (Note B)

634,866

656,759

Other assets

431,437

320,741

$15,880,236

$17,273,870
     

LIABILITIES

    
     

Accounts payable

$     1,380

$      1,380

Accounts payable affiliates (Note C)

6,096,379

5,507,483

Capital contributions payable (Note D)

227,170

227,170

6,324,929

5,736,033
     

PARTNERS' CAPITAL

    
     

Limited Partners
  
   Units of limited partnership    
   Interest, $10 stated value per
   BAC; 20,000,000 authorized BACs;
   5,574,290 issued and outstanding

 

 

 

 

 

9,943,444

 

 

 

 

 

11,906,149

General Partner

(388,137)

(368,312)

9,555,307

11,537,837

$15,880,236

$17,273,870


The accompanying notes are an integral part of this statement

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

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

 


2000


1999
     

Income

    

  Interest income

$     13,106

$     12,142

  Other income

    5,189

      17,944
 

18,295

30,086

Share of loss from Operating
  Partnerships(Note D)

(1,271,394)

(1,728,039)
     

Expenses

    

  

    

  Partnership management fee (Note C)

606,196

608,627

  Amortization

12,139

12,139

  General and administrative expenses

     22,208

     35,738

  

   640,543

   656,504
     

  NET LOSS

$(1,893,642)

$(2,354,457)
     

Net loss allocated to limited partners

$(1,874,705)

$(2,330,912)
     

Net loss allocated general partner

$   (18,937)

$   (23,545)
     

Net loss per BAC

$      (.10)

$      (.13)
     


















The accompanying notes are an integral part of this statement

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended December 31,
(Unaudited)

Series 7


2000


1999
     

Income

    

  Interest income

$      16

$   40

Other income

-

-

16

40

Share of loss from Operating
  Partnerships(Note D)

(27,370)

(37,419)
     

Expenses

    

  

    

  Partnership management fee (Note C)   

28,287

28,287

  Amortization

-

-

  General and administrative expenses

     1,120

     1,783

  

   29,407

   30,070
     

  NET LOSS

$ (56,761)

$ (67,449)
     

Net loss allocated to limited partners

$ (56,193)

$ (66,775)
     

Net loss allocated general partner

$   (568)

$    (674)
     

Net loss per BAC

$    (.05)

$    (.07)
     














The accompanying notes are an integral part of this statement

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended December 31,
(Unaudited)

Series 9


2000


1999
     

Income

    

  Interest income

$     2,544

$     2,556

  Other income

      89

      338

 

       2,633

2,894

Share of loss from Operating
  Partnerships(Note D)

 (282,969)

(678,633)
     

Expenses

    

  

    

  Partnership management fee (Note C)   

140,140

141,196

  Amortization

217

     217

  General and administrative expenses

    4,302

      7,354

  

   144,659

   148,767
     

  NET LOSS

$ (424,995)

$  (824,506)
     

Net loss allocated to limited partners

$ (420,745)

$  (816,261)
     

Net loss allocated general partner

$   (4,250)

$   (8,245)
     

Net loss per BAC

$     (.10)

$     (.20)
     

















The accompanying notes are an integral part of this statement

 

 

 

Table_of_Contents

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended December 31,
(Unaudited)

Series 10


2000


1999
     

Income

    

  Interest income

$     1,489

$   1,192

  Other income

      -

      600

 

1,489

1,792

Share of loss from Operating
  Partnerships(Note D)

(79,680)

(119,725)
     

Expenses

    

  

    

  Partnership management fee (Note C)   

88,878

83,112

  Amortization

860

860

  General and administrative expenses

  2,853

  5,462

  

92,591

89,434
     

  NET LOSS

$ (170,782)

$ (207,367)
     

Net loss allocated to limited partners

$ (169,074)

$ (205,293)
     

Net loss allocated general partner

$   (1,708)

$   (2,074)
     

Net loss per BAC

$     (.07)

$     (.09)
     














The accompanying notes are an integral part of this statement

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended December 31,
(Unaudited)

Series 11


2000


1999
     

Income

    

  Interest Income

$     3,280

$    2,324

Other income

-

4,656

 

 

3,280

6,980

Share of loss from Operating
  Partnerships(Note D)

(181,160)

 (193,374)
     

Expenses

    

  

    

  Partnership management fee (Note C)   

77,317

79,920

  Amortization

436

436

  General and administrative expenses

     2,577

     4,780

  

     80,330

    85,136

     

  NET LOSS

$ (258,210)

$ (271,530)
     

Net loss allocated to limited partners

$ (255,628)

$ (268,815)
     

Net loss allocated general partner

$   (2,582)

$   (2,715)
     

Net loss per BAC

$     (.10)

$     (.11)
     















The accompanying notes are an integral part of this statement

 

 

 

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended December 31,
(Unaudited)

Series 12


2000


1999
     

Income

    

  Interest income

$      260

$   308

  Other income

     2,700

2,550

2,960

2,858

Share of loss from Operating
  Partnerships(Note D)

  (198,334)

 (223,556)
     

Expenses

    

  

    

  Partnership management fee (Note C)    

93,483

91,217

  Amortization

3,329

3,329

  General and administrative expenses

      2,881

     4,634

  

     99,693

99,180
     

  NET LOSS

$  (295,067)

$ (319,878)
     

Net loss allocated to limited partners

$  (292,116)

$ (316,679)
     

Net loss allocated general partner

$    (2,951)

$   (3,199)

Net loss per BAC

$      (.10)

$     (.11)
     


















The accompanying notes are an integral part of this statement

 

 

Table_of_Contents

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended December 31,
(Unaudited)

Series 14


2000


1999
     

Income

    

  Interest income

$     5,517

$   5,722

  

Other income

      2,400

9,800

 

7,917

15,522

Share of loss from Operating
  Partnerships(Note D)

  (501,881)

 (475,332)
     

Expenses

    

  

    

  Partnership management fee (Note C)   

178,091

184,895

 

 Amortization

7,297

7,297

 

  General and administrative expenses

      8,475

    11,725

  

    193,863

203,917
     

  NET LOSS

$  (687,827)

$ (663,727)
     

Net loss allocated to limited partners

$  (680,949)

$ (657,090)
     

Net loss allocated general partner

$    (6,878)

$   (6,637)

Net loss per BAC

$      (.12)

$     (.12)
     
















The accompanying notes are an integral part of this statement

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)


2000


1999
     

Income

    

  Interest income

$ 39,042

$   41,966

  

Other income

8,802

38,333

 

47,844

80,299

Share of loss from Operating
  Partnerships(Note D)

(4,095,834)

(5,150,752)
     

Expenses

    

  

  Partnership management fee (Note C)

1,750,518

1,752,613

  

Amortization

36,421

36,421

  

General and administrative expenses

240,103

     307,842

  

2,027,042

2,096,876
     

  NET LOSS

$(6,075,032)

$ (7,167,329)

Net loss allocated to limited partners

$(6,014,282)

$ (7,095,656)
     

Net loss allocated general partner

$ (60,750)

$    (71,673)

Net loss per BAC

$ (.33)

$      (.38)
     


















The accompanying notes are an integral part of this statement

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)

Series 7


2000


1999
     

Income

    

  Interest income

$ 76

$   136

  

Other income

       -

-

 

76

136

Share of loss from Operating
  Partnerships(Note D)

(127,978)

 (167,920)
     

Expenses

    

  

  

  Partnership management fee (Note C)   

81,861

81,861

  

Amortization

-

-

  

General and administrative expenses

16,078

    17,030

  

97,939

98,891
     

  NET LOSS

$ (225,841)

$ (266,675)
     

Net loss allocated to limited partners

$ (223,583)

$ (264,008)
     

Net loss allocated general partner

$ (2,258)

$ (2,667)

Net loss per BAC

$ (.21)

$    (.26)
     













The accompanying notes are an integral part of this statement

 

 

 

 

 

 

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)

Series 9


2000


1999
     

Income

    

  Interest income

$ 8,211

$   8,683

  Other income

2,418

11,528

 

10,629

20,211

Share of loss from Operating
  Partnerships(Note D)

(823,506)

 (1,390,642)
     

Expenses

    

  

  

  Partnership management fee (Note C)   

400,146

408,196

  

Amortization

652

652

 

General and administrative expenses

36,716

      54,135

  

437,514

462,983
     

  NET LOSS

$(1,250,391)

$ (1,833,414)
     

Net loss allocated to limited partners

$(1,237,887)

$ (1,815,080)
     

Net loss allocated general partner

$ (12,504)

$  (18,334)

Net loss per BAC

$ (.30)

$      (.44)
     

















The accompanying notes are an integral part of this statement

 

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)

Series 10


2000


1999
     

Income

    

  Interest income

$ 4,129

$    3,692

  Other income

-

8,550

 

4,129

12,242

Share of loss from Operating
  Partnerships(Note D)

(372,752)

 (334,687)
     

Expenses

    

  

    

  Partnership management fee (Note C)   

252,107

251,732

  

Amortization

2,581

2,581

  

General and administrative expenses

31,039

    44,155

  

285,727

298,468
     

  NET LOSS

$(654,350)

$ (620,913)
     

Net loss allocated to limited partners

$(647,806)

$ (614,704)
     

Net loss allocated general partner

$ (6,544)

$   (6,209)

Net loss per BAC

$ (.27)

$     (.26)
     

















The accompanying notes are an integral part of this statement

 

 

 

Table_of_Contents

 

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)

Series 11


2000


1999
     

Income

    

  Interest income

$ 8,995

$  9,117

  Other income

-

5,571
 

8,995

14,688

Share of loss from Operating
  Partnerships(Note D)

(625,064)

  (699,495)
     

Expenses

    

  

  

  Partnership management fee (Note C)    

236,857

235,920

  

Amortization

1,308

1,308

  

General and administrative expenses

29,545

     40,374

  

267,710

277,602
     

  NET LOSS

$ (883,779)

$  (962,409)
     

Net loss allocated to limited partners

$ (874,941)

$  (952,785)
     

Net loss allocated general partner

$ (8,838)

$    (9,624)

Net loss per BAC

$ (.35)

$     (.39)
     














The accompanying notes are an integral part of this statement

 

 

 

Table_of_Contents

 

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)

Series 12


2000


1999
     

Income

    

  Interest income

$    1,035

$    1,081

  

Other income

2,700

2,850

 

3,735

3,931

Share of loss from Operating
  Partnerships(Note D)

(755,993)

  (751,815)
     

Expenses

    

  

    

  Partnership management fee (Note C)    

266,392

273,236

  Amortization

9,988

9,988

  

General and administrative expenses

49,503

     52,598

  

325,883

335,822
     

  NET LOSS

$(1,078,141)

$(1,083,706)

Net loss allocated to limited partners

$(1,067,360)

$(1,072,869)
     

Net loss allocated general partner

$ (10,781)

$   (10,837)

Net loss per BAC

$ (.36)

$    (.36)
     














The accompanying notes are an integral part of this statement

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)

Series 14


2000


1999
     

Income

    

  Interest income

$   16,596

$   19,257

  Other income

3,684

9,834
 

20,280

29,091

Share of loss from Operating
  Partnerships(Note D)

(1,390,541)

(1,806,193)
     

Expenses

    

  

    

  Partnership management fee (Note C)    

513,155

501,668

  

Amortization

21,892

21,892

  

General and administrative expenses

77,222

    99,550

  

612,269

623,110
     

  NET LOSS

$(1,982,530)

$(2,400,212)
     

Net loss allocated to limited partners

$(1,962,705)

$(2,376,210)
     

Net loss allocated general partner

$ (19,825)

$   (24,002)

Net loss per BAC

$      (.36)

$      (.43)
     


















The accompanying notes are an integral part of this statement

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine Months Ended December 31,
(Unaudited)

 





Assignees



General
Partner





Total
       

Partners' capital
(deficit)
  April 1, 2000



$ 32,162,586


$ (1,308,169)



$ 30,854,417

    

      
       

Net income (loss)

(6,014,282)

(60,750)

(6,075,032)
       

Partners' capital
(deficit),
  December 31, 2000



$ 26,148,304



$ (1,368,919)



$ 24,779,385
       
































The accompanying notes are an integral part of this statement

 

 

 

Table_of_Contents

 

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL


Nine Months Ended December 31,
(Unaudited)

Assignees

General
Partner

Total

Series 7

Partners' capital
(deficit)
  April 1, 2000



$ (294,266)



$ (93,807)



$ (388,073)

    

Net income (loss)

(223,583)

   (2,258)

(225,841)

Partners' capital
(deficit)
  December 31, 2000



$ (517,849)



$  (96,065)



$ (613,914)

Series 9

Partners' capital
(deficit)
  April 1, 2000



$ 3,768,600



$ (325,913)



$ 3,442,687

Net income (loss)

(1,237,887)

(12,504)

(1,250,391)
       

Partners' capital
(deficit)
  December 31, 2000



$ 2,530,713



$ (338,417)



$ 2,192,296
       











 

 

 

 

 

The accompanying notes are an integral part of these statements.

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL


Nine Months Ended December 31,
(Unaudited)

 

Assignees

General
Partner

Total

Series 10

Partners' capital
(deficit)
  April 1, 2000



$ 4,246,124



$ (170,052)



$ 4,076,072

    

Net income (loss)

(647,806)

   (6,544)

(654,350)

Partners' capital
(deficit)
  December 31, 2000



$ 3,598,318



$ (176,596)



$ 3,421,722

Series 11

Partners' capital
(deficit)
  April 1, 2000



$ 6,446,713



$ (151,735)



$ 6,294,978

Net income (loss)

(874,941)

   (8,838)

(883,779)
       

Partners' capital
(deficit)
  December 31, 2000



$ 5,571,772



$ (160,573)



$ 5,411,199
       

















The accompanying notes are an integral part of this statement

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL

Nine Months Ended December 31,
(Unaudited)

 

Assignees

General
Partner

Total

Series 12

      

Partners' capital
(deficit)
  April 1, 2000



$ 6,089,266



$  (198,350)



$ 5,890,916

    

Net income (loss)

(1,067,360)

  (10,781)

(1,078,141)
       

Partners' capital
(deficit)
  December 31, 2000



  $ 5,021,906



$  (209,131)



$ 4,812,775

Series 14

      

Partners' capital
(deficit)
  April 1, 2000



$ 11,906,149



$   (368,312)



$ 11,537,837

    

Net income (loss)

(1,962,705)

   (19,825)

(1,982,530)
       

Partners' capital
(deficit)
  December 31, 2000



  $ 9,943,444



$   (388,137)



$ 9,555,307
       


















The accompanying notes are an integral part of this statement

 

Table_of_Contents

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$(6,075,032)

$(7,167,329)

   Adjustments

      Distributions from Operating
        Partnerships


8,966


24,753

      Amortization

36,421

36,421

      Share of Loss from Operating
        Partnerships


4,095,834


5,150,752

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable

1,924,241


2,020,825

      Decrease (Increase) in other
        assets


(114,854)


(172,947)
     

      Net cash (used in) provided by
        Operating activities


(121,424)


(107,525)

     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-


(104,590)

   Advances (made to) repaid from
Operating Partnerships

-

-
     

   Net cash (used in) provided by
     investing activities


   -


 (104,590)

     
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     (refunded to) Operating
Partnerships


         -

(6,743)
     

      Net cash (used in)provided by
        financing activity


         -


  (6,743)
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

  (121,424)

(218,858)
     

Cash and cash equivalents, beginning

1,512,272

1,590,545
     

Cash and cash equivalents, ending

$ 1,390,848

$ 1,371,687
     

The accompanying notes are an integral part of this statement

 

Table_of_Contents

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 7

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$(225,841)

$ (266,675)

   Adjustments

    

      Distributions from Operating
        Partnerships


-


-

      Amortization

-

-

      Share of Loss from Operating
        Partnerships


127,978


167,920

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable


102,170


105,771

      Decrease (Increase) in other
        assets


(3,624)


(10,858)
     

      Net cash (used in) provided by
        operating activities


683


  (3,842)
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-

-

   Advances (made to) repaid from
Operating Partnerships

        -

    -
     

   Net cash (used in) provided by
     investing activities


   -


-
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     (refunded to) Operating
Partnerships


-


-
     

      Net cash (used in)provided by
        financing activity


   -


-
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


683


(3,842)
     

Cash and cash equivalents, beginning

4,929

8,529
     

Cash and cash equivalents, ending

$   5,612

$   4,687
     

The accompanying notes are an integral part of this statement

Table_of_Contents

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 9

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$(1,250,391)

$(1,833,414)

   Adjustments

    

      Distributions from Operating
        Partnerships


3,054


1,048

      Amortization

652

652

      Share of Loss from Operating
        Partnerships


823,506


1,390,642

   Changes in assets and liabilities

     (Decrease) Increase in accounts
        payable


431,837


431,838

      Decrease (Increase) in other
        assets


(2,355)


(39,781)
     

      Net cash (used in) provided by
        operating activities


    6,302


  (49,015)

   
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-


(4,590)

   Advances (made to) repaid from
Operating Partnerships

-

-
     

   Net cash (used in) provided by
     investing activities


   -


(4,590)
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     (refunded to)Operating
Partnerships


-


         -
     

      Net cash (used in)provided by
        financing activity


-


         -
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


6,302


(53,605)
     

Cash and cash equivalents, beginning

  335,866

  396,237
     

Cash and cash equivalents, ending

$ 342,168

$  342,632
     


The accompanying notes are an integral part of this statement

 

 

 

 

Table_of_Contents

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 10

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$ (654,350)

$ (620,913)

   Adjustments

    

      Distributions from Operating
        Partnerships


349


1,030

      Amortization

2,581

2,581

      Share of Loss from Operating
        Partnerships


372,752


334,687

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable


266,634


266,639

     (Decrease) Increase in other
        assets


682


1,299
     

      Net cash (used in) provided by
        operating activities


  (11,352)


  (14,677)
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-


-

   Advances (made to) repaid from
Operating Partnerships

-

-
     

   Net cash (used in) provided by
     Investing activities


   -


-

Cash flows from financing activity:

    
     

   Credit adjusters received from
     (refunded to) Operating
Partnerships


         -


   (7,350)
     

      Net cash (used in)provided by
        financing activity


         -


   (7,350)
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(11,351)


(22,027)
     

Cash and cash equivalents, beginning

  121,866

 118,099
     

Cash and cash equivalents, ending

$ 110,514

$  96,072
     


The accompanying notes are an integral part of this statement

 

 

 

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 11

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$(883,779)

$(962,409)

   Adjustments

    

      Distributions from Operating
        Partnerships


-


35

      Amortization

1,308

1,308

      Share of Loss from Operating
        Partnerships


625,064


699,495

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable


244,261


244,260

      Decrease (Increase) in other
        assets


1,139


2,769
     

      Net cash (used in) provided by
        operating activities


  (12,007)


(14,542)
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-


-

   Advances (made to) repaid from
Operating Partnerships

         -

-
     

   Net cash (used in) provided by
     investing activities


   -


    -
     

Cash flows from financing activity:

    
     

   Credit adjusters received from
     (refunded to) Operating
Partnerships


         -


    -
     

      Net cash (used in)provided by
        financing activity


         -


-
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(12,007)


  (14,542)
     

Cash and cash equivalents, beginning

   389,019

   316,711
     

Cash and cash equivalents, ending

$   377,012

$   302,169
     


The accompanying notes are an integral part of this statement

 

 

 

Table_of_Contents

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 12

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

$ (1,078,141)

$ (1,083,706)

   Adjustments

    

      Distributions from Operating
        Partnerships


723

(1,350)

      Amortization

9,988

9,988

      Share of Loss from Operating
        Partnerships


755,993


751,815

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable


293,443


296,184

     (Decrease) Increase in other
assets


-


-
     

      Net cash (used in) provided by
        operating activities


  (17,994)


  (27,069)
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-


-

   Advances (made to) repaid from
Operating Partnerships

-

-
     

   Net cash (used in) provided by
     investing activities


   -


   -

     

Cash flows from financing activity:

    

   Credit adjusters received from
     (refunded to) Operating
Partnerships


         -


         -
     

      Net cash (used in)provided by
        financing activity


         -


         -
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(17,994)


(27,069)

     

Cash and cash equivalents, beginning

   68,437

   82,710
     

Cash and cash equivalents, ending

$  50,443

$   55,641
     





The accompanying notes are an integral part of this statement

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

Series 14

 

2000

1999

Cash Flows from operating activities:

    
     

   Net Loss

(1,982,530)

$(2,400,212)

   Adjustments

    

      Distributions from Operating
        Partnerships


4,841


23,990

      Amortization

21,892

21,892

      Share of Loss from Operating
        Partnerships


1,390,541


1,806,193

   Changes in assets and liabilities

    

     (Decrease) Increase in accounts
        payable


588,896


676,133

     (Decrease) Increase in other
assets


(110,696)


(126,376)
     

      Net cash (used in) provided by
        operating activities


   (87,056)


  1,620
     
     

Cash Flows from investing activities:

    
     

   Capital contributions paid to
     Operating Partnerships


-


(100,000)

   Advances (made to) repaid from
Operating Partnerships

-

-
     

   Net cash (used in) provided by
     investing activities


   -


  (100,000)

     

Cash flows from financing activity:

   Credit adjusters received from
     (refunded to) Operating
Partnerships


         -


       607
     

      Net cash (used in)provided by
        financing activity


         -


       607
     
     

      INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(87,056)


(97,773)

     

Cash and cash equivalents, beginning

   592,155

   668,259
     

Cash and cash equivalents, ending

$   505,099

$   570,486
     


The accompanying notes are an integral part of this statement

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS

December 31, 2000

(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 June 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 Limited Partnerships"). The general partner of the
Partnership is Boston Capital Associates II Limited Partnership and the
limited partner is BCTC II Assignor Corp. (the "Assignor Limited Partner").

Pursuant to the Securities Act of 1933, the Partnership filed a Form S-11
Registration Statement with the Securities and Exchange Commission, effective
October 25, 1989, which covered the offering (the "Public Offering") of the
Partnership's beneficial assignee certificates ("BACs") representing
assignments of units of the beneficial interest of the limited partnership
interest of the Assignor Limited Partner. The Partnership registered
20,000,000 BACs at $10 per BAC for sale to the public in six series. The
Partnership sold 1,036,100 of Series 7 BACs, 4,178,029 of Series 9 BACs,
2,428,925 of Series 10 BACs, 2,489,599 of Series 11 BACs, 2,972,795 of Series
12 BACs, and 5,574,290 of Series 14 BACs. The Partnership issued the
last BACs in Series 14 on January 27, 1992. This concluded the Public
Offering of the Partnership.

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of December 31, 2000
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.





Table_of_Contents

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2000

(Unaudited)

NOTE - B ACCOUNTING AND FINANCIAL REPORTING POLICIES - CONTINUED

Costs incurred by the Partnership in acquiring the investments in
Operating Partnerships are capitalized to the investment account. The
Partnership's accounting and financial reporting policies are in conformity with generally accepted accounting principles and include adjustments in interim periods considered necessary for a fair presentation of the results of
operations. Such adjustments are of a normal recurring nature. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with generally accepted accounting principles have been
condensed or omitted pursuant to such rules and regulations. It is suggested
that these condensed financial statements be read in conjunction with the
financial statements and the notes thereto included in the Partnership Annual
Report on Form 10-K.

On July 1, 1995, the Partnership began amortizing unallocated acquisition
costs over 330 months from April 1, 1995. As of December 31, 2000, the
Partnership has accumulated unallocated acquisition amortization totaling
$279,229. The breakdown of accumulated unallocated acquisition amortization
within the Partnership as of December 31, 2000 for Series 9, Series 10,
Series 11, Series 12, and Series 14 is $5,002, $19,788, $10,030, $76,572, and
$167,838, respectively.

NOTE C - RELATED PARTY TRANSACTIONS

The Partnership has entered into several transactions with various affiliates of the general partner, including Boston Capital Partners, Inc., and Boston Capital Asset Management Limited Partnership as follows:

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. The
partnership management fee accrued for the quarters ended December 31, 2000 and 1999 are as follows:

 

2000

1999

Series 7

$ 28,287

$ 28,287

Series 9

143,946

143,946

Series 10

88,878

88,878

Series 11

81,420

81,420

Series 12

95,817

95,817

Series 14

189,135

189,135
     
 

$ 627,483

$ 627,483

 

 

 

 

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2000

(Unaudited)

Accounts payable - affiliates at December 31, 2000 and 1999 represents
accrued general and administrative expenses, partnership management fees,
and advances from an affiliate of the general partner, which are payable to
Boston Capital Partners, Inc., and Boston Capital Asset Management Limited
Partnership.

As of December 31, 2000, an affiliate of the general partner advanced a
total of $332,374 to the Partnership to pay certain operating expenses and
make advances and/or loans to Operating Partnerships. During the quarter ended December 31, 2000 $22,028 was advanced to series 7. Below is a table that breaks down the advances, by series as of December 31, 2000.

2000

Series 7

$140,447

Series 12

62,550

Series 14

128,840
   
 

$332,374

 

These advances are included in Accounts payable-affiliates. These advances, and any additional advances, will be paid, without interest, from available cash flow or the proceeds of sales or refinancing of the Partnership's interests in Operating Partnerships.

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2000

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS

At December 31, 2000 and 1999 the Partnership had limited partnership
interests in 309 Operating Partnerships which own apartment complexes. The
number of Operating Partnerships in which the Partnership had limited
partnership interests at December 31, 2000 and 1999 by series is as follows:

 

2000

1999

Series 7

15

15

Series 9

55

55

Series 10

45

45

Series 11

40

40

Series 12

53

53

Series 14

101

101
     
 

309

309
     

 

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, 2000 and 1999 by series are as
follows:
 

2000

1999

Series 7

$ -

$ -

Series 9

-

4,590

Series 10

-

-

Series 11

22,528

22,528

Series 12

11,405

11,405

Series 14

227,170

229,894
     
 

$261,103

$263,827
     

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, he current financial results available for the Operating Partnerships are for the nine months ended September 30, 2000.

 

 

 

 

 

Table_of_Contents

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS

December 31, 2000

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,

(Unaudited)

Series 7

 

2000

1999
     

Revenues

    

   Rental

$  1,542,830

$ 1,502,297

   Interest and other

103,284

53,735
     
 

1,646,114

1,556,032
     

Expenses

    

   Interest

562,119

478,592

   Depreciation and amortization

524,757

511,613

   Operating expenses

1,078,868

984,013
 

2,165,744

1,974,218
     

NET LOSS

$ (519,630)

$ (418,186)
     

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



$ (127,978)



$ (167,920)
     
     

Net loss allocated to other
   Partners


$   (5,196)


$   (4,182)
     

Net loss suspended

$  (386,456)

$  (246,084)

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS
December 31, 2000
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)

Series 9

 

2000

1999
     

Revenues

    

   Rental

$ 7,806,972

$ 7,486,239

   Interest and other

    318,282

   297,824
     
 

8,125,254

7,784,063
     

Expenses

    

   Interest

2,263,243

2,258,769

   Depreciation and amortization

2,779,441

2,819,807

   Operating expenses

4,835,407

5,043,244
 

9,878,091

10,121,820
     

NET LOSS

$ (1,752,837)

$ (2,337,757)
     

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



$ (823,506)



$ (1,390,642)
     
     

Net loss allocated to other
   Partners


$   (17,528)


$   (23,378)
     

Net loss suspended

$   (911,803)

$   (923,737)

 

 

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

 

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS
December 31, 2000
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)

Series 10
 

2000

1999
     

Revenues

    

   Rental

$ 5,722,919

$ 5,660,804

   Interest and other

   318,769

  199,822
     
 

6,041,688

5,860,626
     

Expenses

    

   Interest

1,476,559

1,561,954

   Depreciation and amortization

1,848,608

1,770,494

   Operating expenses

3,509,470

3,245,993
 

6,834,637

6,578,441
     

NET LOSS

$ (792,949)

$ (717,815)
     

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



$ (372,752)



$ (334,687)
     
     

Net loss allocated to other
   Partners


$   (7,929)


$  (7,178)
     

Net loss suspended

$ (412,268)

$ (375,950)

 

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

 

 

 

 

 

 

 

 

 

 

 

 

 

Table_of_Contents

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS
December 31, 2000
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)

Series 11

 

2000

1999
     

Revenues

    

   Rental

$ 4,842,319

$ 4,809,394

   Interest and other

  265,097

  262,730
     
 

5,107,416

5,072,124
     

Expenses

    

   Interest

1,372,416

1,509,675

   Depreciation and amortization

1,835,319

1,774,098

   Operating expenses

3,204,521

2,976,940
 

6,412,256

6,260,713
     

NET LOSS

$(1,304,840)

$(1,188,589)
     

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



$ (625,064)



$ (699,495)
     
     

Net loss allocated to other
   Partners


$   (13,048)


$   (11,886)
     

Net loss suspended

$  (666,728)

$  (477,208)

 

 

 

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

 

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS
December 31, 2000
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)

Series 12
 

2000

1999
     

Revenues

    

   Rental

$ 5,440,433

$ 5,223,222

   Interest and other

  232,397

  247,813
     
 

5,672,830

5,471,035
     

Expenses

    

   Interest

1,448,802

1,490,947

   Depreciation and amortization

1,976,576

1,917,672

   Operating expenses

3,469,747

3,258,975
 

6,895,125

6,667,594
     

NET LOSS

$(1,222,295)

$(1,196,559)
     

Net loss allocated to Boston  

   Capital Tax Credit Fund
   II Limited Partnership



$ (755,993)



$ (751,815)
     
     

Net loss allocated to other
   Partners


$   (12,223)


$   (11,966)
     

Net loss suspended

$ (454,079)

$ (432,778)

 

 

 

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS
December 31, 2000
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine months ended September 30,
(Unaudited)

Series 14
 

2000

1999
     

Revenues

    

   Rental

$ 11,443,442

$ 11,225,395

   Interest and other

    547,879

491,025
     
 

11,991,321

11,716,420
     

Expenses

    

   Interest

3,277,798

3,323,912

   Depreciation and amortization

3,757,807

4,131,616

   Operating expenses

7,249,200

6,881,123
 

14,284,805

14,336,651
     

NET LOSS

$ (2,293,484)

$(2,620,231)
     

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



$ (1,390,541)



$(1,806,193)
     
     

Net loss allocated to other
   Partners


$  (22,935)


$   (26,202)
     

Net loss suspended

$ (880,008)

$ (787,836)

 

 

 

The Partnership accounts for its investments using the equity method of
accounting. Under the equity method of accounting, the Partnership adjusts
its investment cost for its share of each Operating Partnerships results of
operations and for any distributions received or accrued. However, the
Partnership recognizes individual operating losses only to the extent of
capital contributions. Excess losses are suspended for use in future years to
offset excess income.

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS (CONTINUED)
December 31, 2000
(Unaudited)

NOTE E - TAXABLE LOSS

The taxable loss for the fiscal year ended March 31, 2001 is expected to differ from its loss for financial reporting purposes. This is primarily due to accounting differences in depreciation incurred by the Operating Partnerships and also differences between the equity method of accounting and the IRS accounting methods. No provision or benefit for income taxes has been included in these financial statements since taxable income or loss passes through to, and is reportable by, the partners and assignees individually.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table_of_Contents

 

 

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

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 as of December 31, 2000 or on working capital reserves
and (ii) cash distributions from operations of the Operating Partnerships in
which the Partnership has invested in. These sources of liquidity, along with
the Partnerships 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 currently is accruing the annual partnership management fee to
enable each series to meet current and future third party obligations.
Pursuant to the Partnership Agreement, such liabilities will be deferred until
the Partnership receives sales or refinancing proceeds from Operating
Partnerships, and at that time proceeds from such sales or refinancing will be
used to satisfy such liabilities. The Partnership anticipates that there
will be sufficient cash to meet future third party obligations.

The Partnership has recognized other income as of December 31, 2000 in the amount of $8,802. This total 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 remaining $5,100 represents transfer fee income.

The Partnership has recorded $379,721 as payable to affiliates, which
represents advances to pay certain third party operating expenses, make
advances and/or loans to Operating Partnerships, and accrued overhead
allocations. The breakout between series is: $154,617 in Series 7, none in
Series 9 and 10, $401 in Series 11, $95,863 in Series 12, and $128,840 in Series 14. These and any future advances or accruals will be paid, without interest, from available cash flow, reporting fees, or proceeds of sales or refinancing of the Partnership's interest in Operating Partnerships.

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.

Table_of_Contents

 

 

 

Capital Resources (continued)

As of December 31, 2000 the Partnership had $719,397 in remaining net
offering proceeds. Below is a table, which provides, by series, the equity
raised, number of BAC's sold, final date BAC's were offered, number of
properties invested in, and remaining proceeds. All capital contributions have
been paid by Series 7,9 and 10; proceeds remaining listed for these series
represent current cash balance.

 

 

Series

Equity

BAC's

Final Close Date

Number of Properties

Proceeds Remaining

7

$ 10,361,000

1,036,100

12/29/89

15

$ 5,612

9

41,574,018

4,178,029

05/04/90

55

342,168

10

24,288,997

2,428,925

08/24/90

45

110,514

11

24,735,002

2,489,599

12/27/90

40

22,528

12

29,710,003

2,972,795

04/30/91

53

11,405

14

55,728,997

5,574,290

01/27/92

101

227,170
           
 

$186,398,017

18,679,738

  

309

$719,397
           

 

(Series 8) No BAC's with respect to Series 8 were offered.

(Series 13) No BAC's with respect to Series 13 were offered.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Table_of_Contents

Results of Operations

As of December 31, 2000 and 1999 the Partnership held limited partnership
interests in 309 Operating Partnerships. In each instance the Apartment
Complex owned by the applicable Operating Partnership is eligible for the
Federal Housing Tax Credit. Occupancy of a unit in each Apartment Complex
which initially complied with the Minimum Set-Aside Test (i.e., occupancy by
tenants with incomes equal to no more than a certain percentage of area median
income) and the Rent Restriction Test (i.e., gross rent charged tenants does
not exceed 30% of the applicable income standards) is referred to hereinafter
as "Qualified Occupancy." Each of the Operating Partnerships and each of the
respective Apartment Complexes are described more fully in the Prospectus or
adequate casualty insurance on the properties.

The Partnership incurs a partnership management fee to Boston Capital
Asset Management Limited Partnership in an amount equal to 0.5% of the
aggregate cost of the apartment complexes owned by the Operating Partnerships,
less the amount of certain asset management and reporting fees paid by the
Operating Partnerships. The annual partnership management fee is currently
being accrued. It is anticipated that all outstanding fees will be repaid
from sale or refinancing proceeds. The partnership management fees incurred for the quarters ended December 31, 2000 and 1999 were $628,284 and
$608,627, respectively.

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.

The General Partner and its affiliate, Boston Capital Asset Management
Limited Partnership, monitor the operations of all the properties in the
Partnership. The Operating Partnerships that are mentioned in the following
discussion of each series' results of operations are being closely monitored
so as to improve the overall results of each series' operations.

(Series 7) As of December 31, 2000 and 1999, the average Qualified Occupancy
for the series was 100% for both years. The series had a total of 15
properties all of which were 100% at December 31, 2000.

For the nine months being reported the series reflects a net loss from the
Operating Partnerships of $519,630. When adjusted for depreciation, which is
a non-cash item, the Operating Partnerships reflect positive operations of
$5,127. This is an interim period estimate; it is not necessarily indicative
of the final year end results.

A June site inspection of Metropole Apartments Associates LP (the Metropole Apartments) by the lender revealed deferred maintenance issues. In response to the lender's inspection, representatives of the Operating General Partner and the Investment General Partner inspected the property in August. Minor repairs were made at the property, and it passed a follow up inspection by the lender in October. During the fourth quarter, the City of Miami issued code violations as a result of other deferred maintenance items. To address these issues, the Operating General Partner has requested that a capital needs assessment be performed on the property. Once the assessment has been completed and analyzed by the Operating General Partner and the Investment General Partner, they will work together to resolve any potential issues. The Investment General Parter will continue to monitor this partnership.

As a result of poor occupancy at the property, the Operating Partnership, New Holland Apartments Limited Partnership (New Holland Apartments.),suffers from cash flow deficits and the senior mortgage is in default. In an effort to address the delinquency, the Investment General Partner attempted to work with the lender for more favorable terms, but to no avail. Due to the operating deficits and the mortgagors unwillingness to work with the Investment General Partner or to accept a deed in lieu of foreclosure, the bank moved to foreclose on the property. Due to a lack of perceived value in the vacant property, the bank decided against continuing its foreclosure proceeding at the present time. During this reprieve, the Investment General Partner is working to locate a replacement General Partner. The first mortgage holder is examining all options available to it, including foreclosure. Due to the fact that the property was vacant for most of 1999 and there are uncured health and safety violations. The Investment Limited Partnership faced recapture of a portion of the credits previously taken. As the property remained vacant in 2000 the Partnership will be unable to take credits for this year. Additionally the Investment General Partner is unlikely to remain in the Partnership, therefore future credits are not anticipated from New Holland Apts, L.P.

 

(Series 9) As of December 31, 2000 and 1999, the average Qualified Occupancy
for the series was 99.7% for both years. The series had a total of 55
properties at December 31, 2000. Out of the total, 50 were at 100% Qualified
Occupancy.

For the nine months being reported the series reflects a net loss from the
Operating Partnerships of $1,752,837. When adjusted for depreciation, which is
a non-cash item, the Operating Partnerships reflect positive operations of
$1,026,604. This is an interim period estimate; it is not necessarily
indicative of the final year end results.

In April of 2000, School Street II Limited Partnership (School Street Apts.
II) inserted Marshall School Street II, LLC., as the Operating General Partner
and property management company. Since taking control, the management
completed the capital improvements program and improved the tenant selection
criteria. As a result, physical occupancy at the property has improved and
should continue to improve in 2001. As of December 31, 2000 occupancy was
96% and averaged 80% for 2000. The fourth quarter of 2000 average occupancy
was 91%, which continued to steady the improvement in the physical occupancy
during the past six months. The property management team, at the direction of
the Operating General Partner, evicted tenants with delinquent rents, which
resulted in higher maintenance and administrative costs than budgeted for
2000. However, based on the improved occupancy and improved tenant selection
criteria, the property's operation should improve in 2001. The Operating
General Partner continues to fund any operating cash deficits.

As a result of poor occupancy at the property, the Operating Partnership, New
Holland Apartments Limited Partnership (New Holland Apartments.),suffers from
cash flow deficits and the senior mortgage is in default. In an effort to
address the delinquency, the Investment General Partner attempted to work with
the lender for more favorable terms, but to no avail. Due to the operating
deficits and the mortgagor's unwillingness to work with the Investment General

Partner or to accept a deed in lieu of foreclosure, the bank moved to
foreclose on the property. Due to a lack of perceived value in the vacant
property, the bank decided against continuing its foreclosure proceeding at
the present time. During this reprieve, the Investment General Partner is
working to locate a replacement General Partner. The first mortgage holder is
examining all options available to it, including foreclosure. Due to the fact
that the property was vacant for most of 1999 and there are uncured health and
safety violations. The Investment Limited Partnership faced recapture of a

portion of the credits previously taken. As the property remained vacant in 2000 the Partnership will be unable to take credits for this year. Additionally the Investment General Partner is unlikely to remain in the Partnership, therefore future credits are not anticipated from New Holland Apts, L.P.

The Operating Partnership Glennwood Hotel Investors (Glennwood Hotel)operated
with an average occupancy of 62% for the year 2000. The area has an
oversupply of affordable rental housing including new Section 8 projects,
which has negatively impacted the property. Without significant structural
improvements that are at this time physically and financially infeasible, the
property will not be able to compete effectively in the market. The management
agent is presently waiving security deposits and working with the housing
authority to increase the amount of rental assistance available at the
property. The Operating General Partner continues to financially support the
partnership. The Investment General Partner continues to monitor this
situation.

 

Series 10) As of December 31, 2000 and 1999, the average Qualified
Occupancy for the series was 99.9% and 99.8%, respectively. The series had a
total of 45 properties at December 31, 2000, Out of the total,44 were at 100%
Qualified Occupancy.

For the nine months being reported the series reflects a net loss from the
Operating Partnerships of $792,949. When adjusted for depreciation which is
a non-cash item, the Operating Partnerships reflect positive operations of
$1,055,659. This is an interim period estimate; it is not necessarily
indicative of the final year end results.

The 1999 audited financial statements for Chuckatuck Square were prepared
assuming the partnership would continue as a Going Concern. Despite high
occupancy, the property suffers from excessive bad debt expenses due to the
seasonal nature of employment opportunities in the local economy. As a result,
the property has accumulated payables and is delinquent in funding its
replacement reserves. In January of 2000, the partnership entered a two-year
workout plan with Rural Development that allows for reduced debt service
payments. The reduced debt service requirement, improved rental collection and
controlled expenses have allowed the property to reduce the accounts payable
from $12,383 as of December 31, 1999 to $5,255 as of December 31, 2000. The
tenant receivables have been reduced from $7,305 as of December 31, 1999 to
$1,406 as of December 31, 2000 as a result of improved collections. The
Operating General Partner continues to work with Rural Development to
restructure the loan terms and obtain additional rental assistance. In
addition the Operating General Partner is actively seeking grant funds to be
utilized for capital improvements to the property.


(Series 11) As of December 31, 2000 and 1999 the average Qualified
Occupancy for the series was 100% for both years. The series had a
total of 40 properties all of which were 100% at December 31, 2000.

For the nine months being reported the series reflects a net loss from the
Operating Partnerships of $1,304,840. When adjusted for depreciation, which is
a non-cash item, the Operating Partnerships reflect positive operations of
$530,479. This is an interim period estimate; it is not necessarily
indicative of the final year end results.

Ivan Woods Limited Partnership(Ivan Woods Senior Apartments) received a Form
8823, Low Income Housing Credit Agencies Report of Non-compliance, on

September 1, 1999. The non-compliance involved five units and occurred during
the first eighteen months of the compliance period. All units are now in
compliance and all cases of non-compliance were cured prior to year-end 1999.
A reduction to the tax credits claimed for the year 2000 will be made to
reflect the period of non-compliance.

A June site inspection of London Arms/Lyn Mar Limited (London Arms Apartments) by the lender revealed deferred maintenance issues. In response to the lender's inspection, representatives of the Operating General Partner and the Investment General Partner inspected the property in August. Minor repairs were made at the property, and it passed a follow up inspection by the lender in October. In addition, the Operating General Partner requested that a capital needs assessment be performed on the property. Once the assessment has been completed and analyzed by the Operating General Partner and the Investment General Partner, they will work together to resolve any potential issues. The Investment General Partner will continue to monitor this partnership.

(Series 12) As of December 31, 2000 and 1999 the average Qualified
Occupancy for the series was 99.9% for both years. The series had a
total of 53 properties at December 31, 2000, 51 of which were at 100%
qualified occupancy.

For the nine months being reported the series reflects a net loss from the
Operating Partnerships of $1,222,295. When adjusted for depreciation, which is
a non-cash item, the Operating Partnerships reflect positive operations of
$754,281. This is an interim period estimate; it is not necessarily
indicative of the final year end results.

Ivan Woods Limited Partnership(Ivan Woods Senior Apartments) received a Form
8823, Low Income Housing Credit Agencies Report of Non-compliance, on
September 1, 1999. The non-compliance involved five units and occurred during
the first eighteen months of the compliance period. All units are now in
compliance and all cases of non-compliance were cured prior to year-end 1999.
A reduction to credits claimed for the year 1999 was made to reflect the
period of non-compliance.

(Series 14) As of December 31, 2000 and 1999 the average Qualified
Occupancy for the series was 99.8% and 98.8%, respectively. The series had a
total of 101 properties at December 31, 2000, 97 of which were at 100%
Qualified Occupancy.

For the nine months being reported the series reflects a net loss from the
Operating Partnerships of $2,293,484. When adjusted for depreciation, which is
a non-cash item, the Operating Partnerships reflect positive operations of
$1,464,323. This is an interim period estimate; it is not necessarily indicative of the final year end results.

Lakewood Terrace Limited Partnership (Lakewood Terrace Apartments) operated at
breakeven during 2000. Occupancy for the fourth quarter of 2000 continues to
be strong at 100%. The Operating General Partner has been successful in
securing a four (4) year rental assistance contract with HUD and has also been granted a 2.2% rental increase. The lease renewals for the last quarter of 2000 will be affected by the rental increase. The increase in rents and continued high occupancy has financially assisted the partnership.

The properties owned by Glenhaven Park Partners, A California LP (Glenhaven
Estates), Haven Park Partners II, A California LP (Glenhaven Park II), Haven
Park Partners III, A California LP (Glenhaven Park III), and Haven Park
Partners IV, A California LP (Glenhaven Park) continue to suffer from
excessive operating expenses compared to operating income. Effective October
2000, San Mar Properties of Fresno, CA assumed the role of management agent.
The Investment Limited Partner is finalizing negotiations with San Mar to
assume the Operating General Partner interest. It is anticipated that the localized management presence will allow the properties to operate in a more effective manner. As of December 31, 2000 physical occupancy at Haven Park II was 80%. Occupancy at Haven Park III and Haven Park IV has stabilized at 100%. Occupancy at Glenhaven Park Partners was 92%.

On April 27, 1998 Woodfield Commons Limited Partnership (Rainbow Commons
Apartments) received a 60-Day letter issued by the IRS stating that the
Operating Partnership had not met certain IRC Section 42 requirements.
The IRS has additionally sent two 60 day letters for the tax years ending 1996
and 1997 dated August 23 1999 and August 8, 1999, respectively. The initial
60-Day letter which was issued in relation to the tax years ended December 31,
1993, 1994, and 1995, and the subsequent 1996 and 1997 60-day letter were the
result of an IRS audit of the Operating Partnership's tenant files. The IRS
has proposed an adjustment that would disallow the Partnership from utilizing
certain past or future credits. On June 23, 1998, the Operating General
Partner and its counsel filed a written protest with the IRS and requested
additional information from the IRS with regards to the legal and factual
basis upon which it has proposed its assessment.

 

In late October 2000, counsel representing the Operating General Partner had a
conference with the appellate conferee. At this point, conversations with the
appellate conferee continue but no deadline has been set for settling the
case.

 

The Operating General Partner and its counsel do not anticipate an outcome
that would have a material effect on the financial statements and accordingly,
no adjustment has been made in the accompanying financial statements. While
the Operating General Partner and its counsel are of this opinion, it is the
opinion of the Investment General Partner that the outcome could, in total, be
material. While no adjustments have been made to the accompanying financial
statements, the auditor's have included a contingency footnote in the annual
financial statement(Note H) which is a part of the most recently filed 10-K
dated March 31, 2000.

 

In August of 2000, Toano III Limited Partnership(Burnt Ordinary Village)
received several forms 8823's Low Income Housing Credit Agencies Report of
Non-Compliance. Non-compliance issues occurred while qualifying two residents. All non-compliance issues have been corrected and the Investment General Partner does not anticipate an impact to the fund.

 

 

 

Table_of_Contents

 

PART II - OTHER INFORMATION

 

 

Item 1. Legal Proceedings

None

Item 2. Changes in Securities

None

Item 3. Defaults upon Senior Securities

None

Item 4. Submission of Matters to a Vote of Security Holders

None

Item 5. Other Information

None

Item 6. Exhibits and Reports on Form 8-K

(a) Exhibits

None
(b) Reports on Form 8-K

None

 

 

 

 

 

 

 

 

 

Table_of_Contents

 

 

 

 

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.

BOSTON CAPITAL TAX CREDIT
FUND II LIMITED PARTNERSHIP

 

By: Boston Capital Associates II Limited
Partnership

 

By: C&M Associates d/b/a
Boston Capital Associates

 

Date: February 20, 2001 By: /S/ John P. Manning

________________________

John P. Manning,
Partner & Principal Financial
Officer