10-Q 1 dec0110q.htm Boston Capital Tax Credit Fund III L

FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

(X)   QUARTERLY REPORT PERSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934.

      For the quarterly period ended December 31, 2001

                                             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)           (Zip Code)

Registrants telephone number, including area code (617)624-8900

(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 preceeding 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, 2001

TABLE OF CONTENTS

FOR THE QUARTER ENDED DECEMBER 31, 2001

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,

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, 2001

 

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,
2001 

(Unaudited)

March 31,
2001

(Audited)

ASSETS

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$ 36,239,696

$ 40,320,863

OTHER ASSETS

Cash and cash equivalents

1,479,151

1,545,818

Notes receivable

543,584

543,584

Deferred acquisition costs (Note B)

1,007,655

1,044,076

Other assets

 1,005,850

   989,477
 

$40,275,936

$44,443,818
     

LIABILITIES

    

Accounts payable

$     1,380

      1,380

Accounts payable affiliates (Note C)

23,976,556

22,081,673
 

Capital contributions payable (Note D)

    261,103

    261,103

 24,239,039

 22,344,156

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




17,493,243




23,495,380

 General Partner

(1,456,346)

(1,395,718)

 16,036,897

 22,099,662

$ 40,275,936

$ 44,443,818

 

 

 

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,
2001 

(Unaudited)

March 31,
2001

(Audited)

ASSETS

 

 

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$  328,392

$  478,143

OTHER ASSETS

Cash and cash equivalents

2,135

   6,561

Notes receivable

     -

-

Deferred acquisition costs (Note B)

-

-

Other assets

   67,204

   67,204

$  397,731

$  551,908
     

LIABILITIES

    
     
 

Accounts payable
  

$        -

$        -

Accounts payable affiliates (Note C)

1,386,250

1,293,251

Capital contributions payable (Note D)

        -

        -
 

1,386,250

1,293,251
     

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




 (888,707)




(644,003)

 General Partner

  (99,812)

 (97,340)

 (988,519)

(741,343)

$   397,731

$  551,908

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,
2001 

(Unaudited)

March 31,
2001

(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS(Note D)

$5,116,233

$6,138,711
     

OTHER ASSETS

Cash and cash equivalents

311,112

338,742

Notes receivable

-

-

Deferred acquisition costs (Note B)

18,050

18,702

Other assets

  227,873

215,851

$5,673,268

$6,712,006
     

LIABILITIES

    
     

 

Accounts payable

$        -

$        -

Accounts payable affiliates (Note C)

5,615,927

5,189,472

 

Capital contributions payable (NoteD)

        -

-

5,615,927

5,189,472
     

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




417,108




1,867,649

  General Partner

(359,767)

(345,115)

   57,341

1,522,534

$5,673,268

$6,712,006

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,
2001 

(Unaudited)

March 31,
2001

(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING 
   PARTNERSHIPS (Note D)

$6,101,932

$6,416,705

OTHER ASSETS

    

 Cash and cash equivalents

122,154

143,831

 Notes receivable

-

-

 Deferred acquisition costs (Note B)

71,409

73,990

 Other assets

   40,784

   42,843
 

$6,336,279

$6,677,369
     

LIABILITIES

    
     

 

Accounts payable

$        -

$        -

 

Accounts payable affiliates (Note C)

3,672,642

3,406,008

 

Capital contributions payable (Note D)

        -

        -

3,672,642

3,406,008
     

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




2,847,813




3,449,460

 General Partner

(184,176)

 (178,099)

2,663,637

3,271,361

$6,336,279

$6,677,369

 

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,
2001 

(Unaudited)

March 31,
2001

(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING   
   PARTNERSHIPS (NOTE D)

$ 6,735,614

$ 7,209,128

OTHER ASSETS

    

 

Cash and cash equivalents

434,250

  447,611

Notes receivable

-

-

 

Deferred acquisition costs (Note B)

36,194

37,503

 

Other assets

    78,338

81,359

$ 7,284,396

$ 7,775,601
     

LIABILITIES

    

 

Accounts payable 

$         -

$         -

 

Accounts payable affiliates (Note C)

2,847,454

2,603,194

 

Capital contributions payable (Note D)

    22,528

    22,528

 2,869,982

 2,625,722
     

PARTNERS' CAPITAL

    
     

Limited Partners

    

 
 

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




4,584,955




5,313,065

 General Partner

 (170,541)

 (163,186)

 4,414,414

 5,149,879

$ 7,284,396

$ 7,775,601

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,
2001 

(Unaudited)

March 31,
2001

(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (NOTE D)    

$ 6,476,487

$ 7,243,683

OTHER ASSETS

 

Cash and cash equivalents

42,933

  61,416

Notes receivable

-

-

Deferred acquisition costs (Note B)

276,324

286,311

Other assets

   116,366

   116,367

$ 6,912,110

$ 7,707,777
     

LIABILITIES

    
     

Accounts payable 

$         -

$      -

Accounts payable affiliates (Note C)

3,557,544

3,260,414

Capital contributions payable (Note D)

    11,405

    11,405

 3,568,949

 3,271,819
     

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




3,566,989




4,648,858

 General Partner

 (223,828)

 (212,900)

 3,343,161

 4,435,958

$ 6,912,110

$ 7,707,777

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,
2001 

(Unaudited)

March 31,
2001

(Audited)

ASSETS

  

 

INVESTMENTS IN OPERATING
   PARTNERSHIPS (NOTE D)    

$ 11,481,038

$ 12,834,493

OTHER ASSETS

 

Cash and cash equivalents

566,567

  547,657

 

Notes receivable

543,584

543,584

 

Deferred acquisition costs (Note B)

605,678

627,570

 

Other assets

    475,285

    465,853

$ 13,672,152

$ 15,019,157
     

LIABILITIES

    
     

 

Accounts payable

$      1,380

$      1,380

 

Accounts payable affiliates (Note C)

6,896,739

 6,329,334

Capital contributions payable (Note D)

    227,170

    227,170

  7,125,289

  6,557,884
     

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




6,965,085




 8,860,351

 General Partner

  (418,222)

  (399,078)

  6,546,863

  8,461,273

$ 13,672,152

$ 15,019,157

 

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)

 


2001


2000
     

Income

    

  

Interest income

$      10,545

$      13,106

Other income

       4,013

       5,189
 

      14,558

      18,295

Share of loss from Operating 
  Partnerships(Note D)

 (1,290,481)

 (1,271,394)
     

Expenses

    

  

    

Partnership management fee (Note C)

548,950

606,196

  

Amortization

12,139

12,139

General and administrative expenses

      86,433

      22,208

  

     647,522

     640,543

  NET LOSS

$ (1,923,445)

$ (1,893,642)

Net loss allocated to limited partners

$ (1,904,211)

$ (1,874,706)

Net loss allocated general partner

$    (19,234)

$    (18,936)

Net loss per BAC

$       (.57)

$       (.55)
     

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


2001


2000
     

Income

Interest income

$        9

$       16

  

Other income

        -

        -

        9

       16

Share of loss from Operating 
  Partnerships(Note D)

 (46,760)

 (27,370)

Expenses

  

Partnership management fee (Note C)   

25,743

28,287

  

Amortization

-

-

  

General and administrative expenses

    6,808

    1,120

  

   32,551

   29,407

  NET LOSS

$ (79,302)

$ (56,761)

Net loss allocated to limited partners

$ (78,509)

$ (56,193)

Net loss allocated general partner

$    (793)

$    (568)

Net loss per BAC

$    (.07)

$    (.05)











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


2001


2000
     

Income

    

  

Interest income

$     1,803

$     2,544

  

Other income

       239

        89
 

     2,042

     2,633

Share of loss from Operating 
  Partnerships(Note D)

 (405,520)

 (282,969)
     

Expenses

    

  

    

Partnership management fee (Note C)   

135,508

140,140

Amortization

217

     217

General and administrative expenses

    15,399

     4,302

  

   151,124

   144,659

  NET LOSS

$ (554,602)

$ (424,995)
     

Net loss allocated to limited partners

$ (549,056)

$ (420,745)

Net loss allocated general partner

$   (5,546)

$   (4,250)

Net loss per BAC

$     (.13)

$     (.10)
     















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


2001


2000

Income

  

Interest income

$     1,077

$     1,489

Other income

       150

         -

     1,227

     1,489

Share of loss from Operating 
  Partnerships(Note D)

 (118,172)

  (79,680)

Expenses

  

Partnership management fee (Note C)   

81,409

88,878

Amortization

860

860

General and administrative expenses

    13,087

     2,853

  

    95,356

    92,591

  NET LOSS

$ (212,301)

$ (170,782)

Net loss allocated to limited partners

$ (210,178)

$ (169,074)

Net loss allocated general partner

$   (2,123)

$   (1,708)

Net loss per BAC

$     (.09)

$     (.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 11


2001


2000
     

Income

    

  

Interest income

$     2,446

$     3,280

 

Other income

       156

         -

 

     2,602

     3,280

Share of loss from Operating 
  Partnerships(Note D)

  (47,656)

 (181,160)
     

Expenses

    

  

    

Partnership management fee (Note C)   

79,320

77,317

  

Amortization

436

436

General and administrative expenses

    12,266

     2,577

  

    92,022

    80,330
     

 

 NET LOSS

$  (137,076)

$ (258,210)
     

Net loss allocated to limited partners

$  (135,705)

$ (255,628)
     

Net loss allocated general partner

$   (1,371)

$   (2,582)
     

Net loss per BAC

$     (.06)

$     (.10)
     















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


2001


2000
     

Income

    

  

Interest income

$       121

$       260

 

Other income

       900

     2,700

 

     1,021

     2,960

Share of loss from Operating 
  Partnerships(Note D)

 (178,130)

 (198,334)
     

Expenses

    

  

    

Partnership management fee (Note C)   

90,817

93,483

  

Amortization

3,329

3,329

General and administrative expenses

    14,363

     2,881

  

   108,509

    99,693
     

 

 NET LOSS

$ (285,618)

$ (295,067)
     

Net loss allocated to limited partners

$ (282,762)

$ (292,116)

Net loss allocated general partner

$   (2,856)

$   (2,951)

Net loss per BAC

$     (.10)

$     (.10)
     













 

 

 

 

 

 

 

Table_of_Contents

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Three Months Ended December 31,
(Unaudited)

Series 14


2001


2000
     

Income

    

  

Interest income

$     5,089

$     5,517

  

Other income

     2,568

     2,400
 

     7,657

     7,917

Share of loss from Operating 
  Partnerships(Note D)

 (494,243)

 (501,881)
     

Expenses

    

  

Partnership management fee (Note C)   

136,153

178,091

 

Amortization

7,297

7,297

 

General and administrative expenses

    24,510

     8,475

  

   167,960

   193,863
     

  NET LOSS

$ (654,546)

$ (687,827)
     

Net loss allocated to limited partners

$ (648,001)

$ (680,949)

Net loss allocated general partner

$   (6,545)

$   (6,878)

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)

 


2001


2000
     

Income

    

  

Interest income

$      36,454

$      39,042

Other income

       8,416

       8,802
 

      44,870

      47,844

Share of loss from Operating 
  Partnerships(Note D)

 (4,074,929)

 (4,095,834)
     

Expenses

    

  

    

Partnership management fee (Note C)

1,695,911

1,750,518

  

Amortization

36,421

36,421

General and administrative expenses

     300,374

     240,103

  

   2,032,706

   2,027,042
     

  NET LOSS

$ (6,062,765)

$ (6,075,032)
     

Net loss allocated to limited partners

$ (6,002,137)

$ (6,014,282)

Net loss allocated general partner

$    (60,628)

$    (60,750)

Net loss per BAC

$      (1.85)

$      (1.86)
     


















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


2001


2000
     

Income

    

Interest income

$        60

$        76

  

Other income

         -

         -

        60

        76

Share of loss from Operating 
  Partnerships(Note D)

 (149,750)

 (127,978)
     

Expenses

    

  

    

Partnership management fee (Note C)   

78,128

81,861

  

Amortization

-

-

  

General and administrative expenses

    19,358

     16,078

  

    97,486

    97,939

  NET LOSS

$ (247,176)

$ (225,841)
     

Net loss allocated to limited partners

$ (244,704)

$ (223,583)

Net loss allocated general partner

$   (2,472)

$   (2,258)

Net loss per BAC

$     (.24)

$     (.22)











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


2001


2000
     

Income

    

  

Interest income

$      6,683

$     8,211

  

Other income

      2,760

     2,418
 

      9,443

    10,629

Share of loss from Operating 
  Partnerships(Note D)

(1,021,764)

 (823,506)
     

Expenses

    

  

    

Partnership management fee (Note C)   

398,661

400,146

Amortization

652

     652

General and administrative expenses

    53,559

    36,716

  

   452,872

   437,514

  NET LOSS

$(1,465,193)

$(1,250,391)
     

Net loss allocated to limited partners

$(1,450,541)

$(1,237,887)

Net loss allocated general partner

$   (14,652)

$   (12,504)

Net loss per BAC

$      (.35)

$      (.30)
     















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


2001


2000
     

Income

    

  

Interest income

$     3,873

$     4,129

Other income

       150

         -
 

     4,023

     4,129

Share of loss from Operating 
  Partnerships(Note D)

 (314,220)

 (372,752)
     

Expenses

    

  

    

Partnership management fee (Note C)   

251,640

252,107

Amortization

2,581

2,581

General and administrative expenses

    43,306

    31,039

  

   297,527

   285,727

  NET LOSS

$ (607,724)

$ (654,350)
     

Net loss allocated to limited partners

$ (601,647)

$ (647,806)

Net loss allocated general partner

$   (6,077)

$   (6,544)

Net loss per BAC

$     (.25)

$     (.27)
     












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


2001


2000
     

Income

    

  

Interest income

$     9,338

$     8,995

 

Other income

     2,038

         -

 

    11,376

     8,995

Share of loss from Operating 
  Partnerships(Note D)

 (473,433)

 (625,064)
     

Expenses

    

  

    

Partnership management fee (Note C)   

230,930

236,857

  

Amortization

1,308

1,308

General and administrative expenses

    41,170

    29,545

  

   273,408

   267,710
     

 

 NET LOSS

$ (735,465)

$ (883,779)
     

Net loss allocated to limited partners

$ (728,110)

$ (874,941)

Net loss allocated general partner

$   (7,355)

$   (8,838)

Net loss per BAC

$     (.30)

$     (.35)















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


2001


2000
     

Income

    

  

Interest income

$       696

$     1,035

 

Other income

       900

     2,700

 

     1,596

     3,735

Share of loss from Operating 
  Partnerships(Note D)

 (766,544)

 (755,993)
     

Expenses

    

  

    

Partnership management fee (Note C)   

269,492

266,392

  

Amortization

9,988

9,988

General and administrative expenses

    48,369

    49,503

  

   327,849

   325,883
     

 

 NET LOSS

$(1,092,797)

$(1,078,141)
     

Net loss allocated to limited partners

$(1,081,869)

$(1,067,360)
     

Net loss allocated general partner

$   (10,928)

$   (10,781)
     

Net loss per BAC

$      (.37)

$      (.36)
     













 

 

 

 

 

 

 

Table_of_Contents

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF OPERATIONS

Nine Months Ended December 31,
(Unaudited)

Series 14


2001


2000
     

Income

    

  

Interest income

$     15,804

$     16,596

  

Other income

      2,568

      3,684
 

     18,372

     20,280

Share of loss from Operating 
  Partnerships(Note D)

(1,394,218)

(1,390,541)
     

Expenses

    

  

Partnership management fee (Note C)   

467,060

513,155

 

Amortization

21,892

21,892

 

General and administrative expenses

    94,612

     77,222

  

   583,564

    612,269
     

  NET LOSS

$(1,914,410)

$(1,982,530)
     

Net loss allocated to limited partners

$(1,895,266)

$(1,962,705)

Net loss allocated general partner

$   (19,144)

$   (19,825)

Net loss per BAC

$      (.34)

$      (.36)
     











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, 2001



$ 23,495,380



$ (1,395,718)



$ 22,099,662

    

      
       

Net income (loss)

(6,002,137)

   (60,628)

(6,062,765)
       

Partners' capital 
 (deficit),
  December 31, 2001



$ 17,493,243



$ (1,456,346)



$ 16,036,897
       






























The accompanying notes are an integral part of this statement

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, 2001



$  (644,003)



$  (97,340)



$  (741,343)

Net income (loss)

  (244,704)

   (2,472)

  (247,176)

Partners' capital 
 (deficit)
  December 31, 2001    



$  (888,707)



$  (99,812)



$  (988,519)

Series 9

Partners' capital 
 (deficit)
  April 1, 2001



$  1,867,649



$ (345,115)



$  1,522,534

Net income (loss)

(1,450,541)

  (14,652)

(1,465,193)
       

Partners' capital 
 (deficit)
  December 31, 2001    



$    417,108



$ (359,767)



$     57,341
       








 

 

 

 

 

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, 2001



$ 3,449,460



$ (178,099)



$ 3,271,361

Net income (loss)

 (391,469)

   (3,954)

 (395,423)

Partners' capital 
 (deficit)
  December 31, 2001    



$ 3,057,991



$ (182,053)



$ 2,875,938

Series 11

Partners' capital 
 (deficit)
  April 1, 2001



$ 5,313,065



$ (163,186)



$ 5,149,879

Net income (loss)

 (592,403)

   (5,984)

 (598,387)
       

Partners' capital 
 (deficit)
  December 31, 2001   



$ 4,720,662



$ (169,170)



$ 4,551,492
       

















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, 2001



$  4,648,858



$  (212,900)



$  4,435,958

Net income (loss)

(1,081,869)

   (10,928)

(1,092,797)
       

Partners' capital 
 (deficit)
  December 31, 2001   



$  3,566,989



$  (223,828)



$  3,343,161

Series 14

Partners' capital 
 (deficit)
  April 1, 2001



$  8,860,351



$  (399,078)



$  8,461,273

Net income (loss)

(1,895,266)

   (19,144)

(1,914,410)
       

Partners' capital 
 (deficit)
  December 31, 2001    



$  6,965,085



$  (418,222)



$  6,546,863
       


















The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Nine Months Ended December 31,
(Unaudited)

 

2001

2000

Cash flows from operating activities:

    
     

   Net Loss


$(6,062,765)


$(6,075,032)

   Adjustments

    
   

Distributions from Operating Partnerships

6,238

8,966

Amortization

36,421

36,421

Share of Loss from Operating Partnerships

4,074,929

4,095,834

Changes in assets and liabilities

(Decrease) Increase in accounts payable

1,894,890

1,927,241
   

Decrease (Increase) in other assets

   (16,371)

 (114,854)
     
 

Net cash (used in) provided by
operating activities

   (66,667)

 (121,424)

   
     

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

   (66,667)

  (121,424)
     

Cash and cash equivalents, beginning

  1,545,818

  1,512,272
     

Cash and cash equivalents, ending

$  1,479,151

$  1,390,848
     


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

 

2001

2000

Cash flows from operating activities:

    
     

   Net Loss

$  (247,176)

$  (225,841)

   Adjustments

    
   

Distributions from Operating Partnerships

-

-

Amortization

-

-
   

Share of Loss from Operating Partnerships

149,750

127,978
         

Changes in assets and liabilities

   

(Decrease) Increase in accounts payable

93,000

102,170
   

Decrease (Increase) in other assets

          -

   (3,624)
     
       
 

Net cash (used in) provided by
operating activities

    (4,426)

       683
     
     

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

(4,426)

683
     

Cash and cash equivalents, beginning

     6,561

     4,929
     

Cash and cash equivalents, ending

$     2,135

$     5,612
     


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

 

2001

2000

Cash flows from operating activities:

    
     

   Net Loss

$(1,465,193)

$(1,250,391)

   Adjustments

    
   

Distributions from Operating Partnerships


14


3,054

Amortization

652

652
   

Share of Loss from Operating Partnerships

1,021,764

823,506

Changes in assets and liabilities

(Decrease) Increase in accounts payable

426,455

431,837

Decrease (Increase) in other assets

  (12,022)

   (2,356)
       
     
 

Net cash (used in) provided by
operating activities

  (27,630)

     6,302
     
     

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

(27,630)

6,302
     

Cash and cash equivalents, beginning

   338,742

   335,866
     

Cash and cash equivalents, ending

$   311,112

$   342,168
     


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

 

2001

2000

Cash flows from operating activities:

    
     

   Net Loss

$  (607,724)

$  (654,350)

   Adjustments

    
   

Distributions from Operating Partnerships

553

349

Amortization

2,581

2,581
   

Share of Loss from Operating Partnerships

314,220

372,752

Changes in assets and liabilities

 

(Decrease) Increase in accounts payable

266,634

266,634
 

Decrease (Increase) in other assets

      2,059

       682
       
     
 

Net cash (used in) provided by
operating activities

  (21,677)

  (11,352)
     
     

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

(21,677)

(11,351)
     

Cash and cash equivalents, beginning

   143,831

   121,866
     

Cash and cash equivalents, ending

$   122,154

$   110,514
     


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

 

2001

2000

Cash flows from operating activities:

    
     

   Net Loss

$  (735,465)

$  (883,779)

   Adjustments

    
   

Distributions from Operating Partnerships

82

-

Amortization

1,308

1,308
   

Share of Loss from Operating Partnerships

473,433

625,064

Changes in assets and liabilities

   

(Decrease) Increase in accounts payable

244,260

244,261
   

Decrease (Increase) in other assets

      3,021

     1,139
     
 

Net cash (used in) provided by
operating activities

   (13,361)

  (12,007)
     
     

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

(13,361)

(12,007)
     

Cash and cash equivalents, beginning

   447,611

   389,019
     

Cash and cash equivalents, ending

$   434,250

$   377,012
     


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

 

2001

2000

Cash flows from operating activities:

    
     

   Net Loss

$(1,092,797)

$(1,078,141)

   Adjustments

    
   

Distributions from Operating Partnerships

652

723

Amortization

9,988

9,988
   

Share of Loss from Operating Partnerships

766,544

755,993

Changes in assets and liabilities

(Decrease) Increase in accounts payable

297,130

293,443
   

Decrease (Increase) in other assets

         -

         -
     
 

Net cash (used in) provided by
operating activities

  (18,483)

  (17,994)
     
     

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

(18,483)

(17,994)
     

Cash and cash equivalents, beginning

    61,416

    68,437
     

Cash and cash equivalents, ending

$    42,933

$    50,443
     


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

 

2001

2000

Cash flows from operating activities:

    
     

   Net Loss

$(1,914,410)

$(1,982,530)

   Adjustments

    
   

Distributions from Operating Partnerships

4,237

4,841

Amortization

21,892

21,892
   

Share of Loss from Operating Partnerships

1,349,218

1,390,541

Changes in assets and liabilities

(Decrease) Increase in accounts payable

567,405

588,896
   

Decrease (Increase) in other assets

   (9,432)

 (110,696)
     
 

Net cash (used in) provided by
operating activities

    18,910

  (87,056)
     
     

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

18,910

(87,056)
     

Cash and cash equivalents, beginning

   547,657

   592,155
     

Cash and cash equivalents, ending

$   566,567

$   505,099
     


The accompanying notes are an integral part of this statement

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS

December 31, 2001

(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"). Effective as of June 1, 2001 there was a restructuring, and as a result, the Fund's general partner was reorganized as follows. The General Partner of the Partnerships continues to be Boston Capital Associates II Limited Partnership, a Delaware limited partnership. The general partner of the General Partner is BCA Associates Limited Partnership, a Massachusetts limited partnership, whose sole general partner is C&M Management, Inc., a Massachusetts corporation and whose limited partners are Herbert F. Collins and John P. Manning. Mr. Manning is the principal of Boston Capital Partners, Inc. The limited partner of the General Partner is Capital Investment Holdings, a general partnership whose partners are certain officers and employees of Boston Capital Partners, Inc., and its affiliates. The Assignor Limited Partner is BCTC II Assignor Corp., a Delaware corporation which is now wholly-owned by John P. Manning.

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

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of December 31, 2001
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, 2001

(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, 2001, the
Partnership has accumulated unallocated acquisition amortization totaling
$315,650. The breakdown of accumulated unallocated acquisition amortization
within the Partnership as of December 31, 2001 for Series 9, Series 10,
Series 11, Series 12, and Series 14 is $5,872, $23,229, $11,774, $89,888, and
$197,027, respectively.

NOTE C - RELATED PARTY TRANSACTIONS

The Partnership has entered into several transactions with various affiliates of the general partner, including Boston Capital Hoildings, LP., 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, 2001 and 2000 are as follows:

 

      2001

     2000

Series 7

$    26,193

$    28,287

Series 9

    142,152

    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
     
 

$   619,705

$   627,483

 

 

 

 

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS (CONTINUED)

December 31, 2001

(Unaudited)

Accounts payable - affiliates at December 31, 2001 and 2000 represents
accrued general and administrative expenses, partnership management fees,
and advances from an affiliate of the general partner, which are payable to
Boston Capital Holdings, LP., and Boston Capital Asset Management Limited
Partnership.

As of December 31, 2001, an affiliate of the general partner advanced a
total of $397,216 to the Partnership to pay certain operating expenses and
make advances and/or loans to Operating Partnerships. Below is a table that breaks down the advances, by series as of December 31, 2001.

            2001

Series 7

$157,047

Series 9

4,959

Series 12

62,550

Series 14

172,660
   
 

$397,216

 

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, 2001

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING LIMITED PARTNERSHIPS

At December 31, 2001 and 2000 the Partnership had limited partnership
interests in 307 and 309, respectively in Operating Partnerships which own apartment complexes. The number of Operating Partnerships in which the Partnership had limited partnership interests at December 31, 2001 and 2000 by series is as follows:

 

2001

2000

Series 7

14

15

Series 9

54

55

Series 10

45

45

Series 11

40

40

Series 12

53

53

Series 14

101

101
     
 

307

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, 2001 and 2000 by series are as
follows:

 

2001

    2000

Series 7

      $      -

$      -

Series 9

             -

   -

Series 10

             -

       -

Series 11

        22,528

  22,528

Series 12

        11,405

  11,405

Series 14

       227,170

 227,170
     
 

      $261,103

$261,103
     

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, 2001.

 

 

 

 

Table_of_Contents

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO FINANCIAL STATEMENTS

December 31, 2001

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED SUMMARIZED STATEMENTS OF OPERATIONS
Nine Months Ended September 30,

(Unaudited)

Series 7

 

                2001

                2000
     

Revenues

    
 

Rental

$  1,654,374

$  1,542,830
 

Interest and other

    212,199

    103,284
 

  1,866,573

  1,646,114
     

Expenses

    
 

Interest

717,959

562,119
 

Depreciation and amortization

526,768

524,757
 

Operating expenses

  1,148,323

  1,078,868
 

  2,393,050

   2,165,744
     

NET LOSS

$  (526,477)

$  (519,630)
     
 

Net loss allocated to Boston Capital Tax Credit Fund II Limited 

Partnership



$  (149,750)



$  (127,978)
     
     
 

Net loss allocated to other partners


$    (5,265)


$    (5,196)
     
 

Net loss suspended

$  (371,462)

$  (386,456)

 

 

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, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 9

 

                 2001

            2000
     

Revenues

    
 

Rental

$  7,990,644

$  7,806,972
 

Interest and other

    430,649

    318,282
 

  8,421,293

  8,125,254
     

Expenses

    
 

Interest

2,521,731

2,263,243
 

Depreciation and amortization

2,691,441

2,779,441
 

Operating expenses

  5,397,448

  4,835,407
 

 10,610,620

  9,878,091
     

NET LOSS

$(2,189,327)

$(1,752,837)
     
 

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



$(1,021,764)



$  (823,506)
     
     
 

Net loss allocated to other partners


$   (21,893)


$   (17,528)
     
 

Net loss suspended

$(1,145,670)

$  (911,803)

 

 

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, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 10
 

                 2001

            2000
     

Revenues

    
 

Rental

$  5,831,832

$  5,722,919
 

Interest and other

    308,096

    318,769
 

  6,139,928

  6,041,688
     

Expenses

    
 

Interest

1,435,497

1,476,559
 

Depreciation and amortization

1,728,031

1,848,608
 

Operating expenses

  3,713,094

  3,509,470
 

  6,896,622

  6,834,637
     

NET LOSS

$  (736,694)

$  (792,949)
     
 

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



$  (314,220)



$  (372,752)
     
     
 

Net loss allocated to other partners


$    (7,367)


$    (7,929)
     
 

Net loss suspended

$  (415,107)

$  (412,268)

 

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, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 11

 

                  2001

            2000
     

Revenues

    

Rental

$  4,996,078

$  4,842,319
 

Interest and other

    417,477

    265,097
 

  5,413,555

  5,107,416
     

Expenses

    
 

Interest

1,419,905

  1,372,416
 

Depreciation and amortization

 1,768,990

  1,835,319
 

Operating expenses

  3,361,262

  3,204,521
 

  6,550,156

  6,412,256
     

NET LOSS

$(1,136,601)

$(1,304,840)
     
 

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



$  (472,713)



$  (625,064)
     
     
 

Net loss allocated to other partners


$   (11,366)


$   (13,048)
     

Netloss suspended

$  (652,522)

$  (666,728)

 

 

 

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, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 12
 

               2001

            2000
     

Revenues

    

Rental

$  5,473,866

$  5,440,433
 

Interest and other

    608,864

    232,397
 

  6,082,730

  5,672,830
     

Expenses

    
 

Interest

1,528,815

1,448,802
 

Depreciation and amortization

1,825,844

1,976,576
 

Operating expenses

  4,084,638

  3,469,747
 

  7,439,298

  6,895,125
     

NET LOSS

$(1,356,567)

$(1,222,295)
     

 

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



$  (766,544)



$  (755,993)
     
     
 

Net loss allocated to other partners


$   (13,566)


$   (12,223)
     

Net loss suspended

$  (576,457)

$  (454,079)

 

 

 

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, 2001
(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

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

Series 14
 

                2001

            2000
     

Revenues

    
 

Rental

$ 12,126,611

$ 11,443,442
 

Interest and other

    514,816

    547,879
 

 12,641,427

 11,991,321
     

Expenses

    
 

Interest

3,503,185

  3,277,798
 

Depreciation and amortization

3,838,243

3,757,807
 

Operating expenses

  7,477,454

  7,249,200
 

 14,818,882

 14,284,805
     

NET LOSS

$(2,177,455)

$(2,293,484)
     
 

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



$(1,349,218)



$(1,390,541)
     
     
 

Net loss allocated to other partners


$   (21,775)


$   (22,935)
     

Net loss suspended

$  (806,463)

$  (880,008)

 

 

 

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, 2001
(Unaudited)

NOTE E - TAXABLE LOSS

The taxable loss for the fiscal year ended March 31, 2002 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, 2001 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, 2001 in the amount of $4,013 of the total, $3,450 represents transfer fee income. This 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 has recorded $462,850 as payable to affiliates, which represents advances to pay certain third party operating expenses, advances and/or loans to Operating Partnerships, and accrued overhead allocations. The breakout between series is: $176,192 in Series 7, $4,959 in Series 9 and none in 10, $401 in Series 11, $108,638 in Series 12, and $172,660 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, 2001 the Partnership had $696,504 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

14

$  2,135

9

41,574,018

4,178,029

05/04/90

54

311,112

10

24,288,997

2,428,925

08/24/90

45

122,154

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

  

307

$696,504
           

 

(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, 2001 and 2000 the Partnership held limited partnership interests in 307 and 309, respectively in Operating Partnerships. The decrease in the number of operating partnerships is the result of the removal of one operating partnership in which both series 7 and 9 had invested. For more extensive disclosure on the removal of the operating partnership refer to the Investment Partnerships previously filed March 31, 2001 10-K 405. 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, 2001 and 2000 were $556,869 and $628,284, 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, 2001 and 2000, the average Qualified Occupancy for the series was 100% for both years. The series had a total of 14 properties all of which were 100% at December 31, 2001.

For the nine months being reported the series reflects a net loss from the Operating Partnerships of $526,477. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $291. This is an interim period estimate; it is not necessarily indicative of the final year end results.

The city of Miami Beach issued a safety and health violations to Metropole Apartments Associates LP (Metropole Apartments) in the fourth quarter of 2000. The General Partner evaluted the issue and also conducted a needs assessment on the property, provided funding for corrective actions and has addressed as many of the issues as possible. At this time , approximately 90% of the issues have been satisfactorily addressed; the remaning issues are waiting for design and/or plan approval from the city of Maimi Beach. The Residential section of the property has now achieved an occupancy rate of

Results of Operations-con't

 

 

95% and rent collections are strong. In addition, the leasing activity remains very strong. The Investment General Partner will continue to monitor this partnership.

 

(Series 9) As of December 31, 2001 and 2000, the average Qualified Occupancy for the series was 99.7% for both years. The series had a total of 54 properties at December 31, 2001. Out of the total, 51 were at 100% Qualified Occupancy.

For the nine months being reported the series reflects a net loss from the Operating Partnerships of $2,189,327. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $502,114. This is an interim period estimate; it is not necessarily indicative of the final year end results.

Warrensberg Estates Limited Partnership. located in Warrensberg, Missouri, operated significantly below breakeven in 2001. The main reason for the operating deficits was the low occupancy, which averaged 53% for 2001. As of December 31, 2001, occupancy at the property was 66%. The poor occupancy has been caused by the public's inaccurate perception that the property is a nursing home. In addition, occupancy has been impacted by the lack of rental assistance and increased competition. Current management, which took over at the beginning of 2001, has been working with local civic organizations in an effort to change the image of the property. The management company has also been advertising in local newspapers and contacting churches and local senior organizations in an effort to increase occupancy. The property has several problem tenants. The management company is working with the police and local authorities to remove the problem tenants. In addition, the management company has improved the tenant screening process. Payment of the management fee has been deferred in order to keep the taxes, insurance and mortgage for the property current.

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 company has completed the capital improvements program and improved the tenant selection criteria. As a result, occupancy has increased and stabilized. During 2001 the averaged occupancy was 97% The improved occupancy and tenant selection criteria increased cash flow significantly in 2001, but it still remains below breakeven. The Operating General Partner continues to fund any operating cash deficits. The mortgage, taxes, insurance and accounts payable are current.

The Operating Partnership Glennwood Hotel Investors (Glennwood Hotel) operated with an average occupancy of 65% for the year 2000. Occupancy through the fourth quarter of 2001 was 62%. 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 unfeasible, the property will not be able to compete effectively in the market. The management agent continues to market the available units to the housing authority as well as performing various outreach efforts to attract qualified residents. The Operating General Partner continues to financially support the partnership. The Investment General Partner continues to monitor this situation.

 

 

 

 

 

 

Results of Operations-con't

 

(Series 10) As of December 31, 2001 and 2000, the average Qualified Occupancy for the series was 99.9% for both years. The series had a total of 45 properties at December 31, 2001, 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 $736,694. When adjusted for depreciation which is a non-cash item, the Operating Partnerships reflect positive operations of $991,337. This is an interim period estimate; it is not necessarily indicative of the final year end results.

The 1999 and 2000 audited financial statements for Chuckatuck Square were prepared assuming the partnership would continue as a Going Concern. Despite high occupancy, the property had suffered from excessive bad debt expenses due to the seasonal nature of employment opportunities in the local economy. As a result, the property was delinquent in funding its replacement reserves. In January of 2000, the partnership entered a two-year workout plan with Rural Development that allowed 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 $2,006 as of December 31, 2001. The property currently operates above breakeven. Furthermore, the management company reports that the property did not have any bad debt expenses in 2001. The twelve month average occupancy for the year ending December 31, 2001 was 92% with a current occupancy level of 93% as of January 2002. It is reported that the property now maintains a small waiting list and anticipates reaching full occupancy by the end of February 2002. In addition, it is anticipated that the Going Concern Opinion will be removed from the 2001 audited financial statements. The Operating General Partner continues to work with Rural Development to permanently restructure the loan terms and/or extend the workout agreement.

 

Lawton Apartments Company Limited Partnership (Village Commons) has historically had occupancy problems, which have resulted in delinquent taxes for the years 1998,2000, and 2001. During 2002, Rural Development will voucher the 1998,2000, and 2001 real estate taxes. The voucher funds will be repaid over remaining years of the mortgage. Upon resolution of the delinquent taxes, the local municipality will consider a property tax abatement. Village Commons'occupancy problems are due to the lack of employment and the high level of affordable housing in the area. The current occupancy is 86% as of December 31, 2001. The management company will continue aggressive outreach programs in an attempt to attract prospective tenants. The mortgage, insurance and payables are current.

Centreville Apartments Company Limited (Hollow Apartments) has historically suffered from low occupancy. Lansing Management believes the primary reason for low occupancy has been a lack of employment opportunities in the area and it is overbuilt with apartment communities. The current occupancy is 92% as of December 31, 2001 due to aggressive outreach programs in an attempt to attract prospective tenants. The partnership has 1998-2001 delinquent real estate taxes. In 2002, Rural Development will voucher the 1998, 1999,2000, and 2001 real estate taxes. The voucher funds will be repaid over the remaining years of the mortgage. The mortgage, insurance and payables are current.

 

 

 

Results of Operations-con't

 

(Series 11) As of December 31, 2001 and 2000 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, 2001.

For the nine months being reported the series reflects a net loss from the Operating Partnerships of $1,136,601. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $632,389. This is an interim period estimate; it is not necessarily indicative of the final year end results.

In June of 2001,the Investment General Partner became aware that unauthorized distributions in excess of Rural Development's (mortgage) allowable limits were made to the Operating General Partner of Aspen Square Limited Partnership, Copper Creek Limited Partnership and Sierra Springs Limited Partnership. These unauthorized distributions have been classified as receivables from the Operating General Partner on the Partnerships audited financial statements as of December 31, 2000. The Investment General Partner is actively seeking the immediate return of these funds through the Estate of the Operating General Partner. In addition, the Investment General Partner is weighing all available options to expedite the return of the unauthorized distributions and continues to monitor the Partnership.

 

The Operating General Partner of London Arms/Lyn Mar Limited (London Arms Apartments) commissioned a capital needs assessment during the first quarter of 2001. Several deferred maintenance items were identified and were later targeted for completion. The management company reports that this work is approximately 90% complete at this time and believes that the balance of the work will be completed within the next 30 to 60 days. The residential section of the property has achieved an occupancy rate of 98% and the leasing activity remains very strong. The Investment General Partner will continue to monitor the Partnership.

(Series 12) As of December 31, 2001 and 2000 the average Qualified Occupancy for the series was 99.9% both years. The series had a total of 53 properties at December 31, 2001, 52 of which were at 100% qualified occupancy.

For the nine months being reported the series reflects a net loss from the Operating Partnerships of $1,356,567. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $469,277. This is an interim period estimate; it is not necessarily indicative of the final year end results.

In June of 2001,the Investment General Partner became aware that unauthorized distributions in excess of Rural Development's (mortgage) allowable limits were made to the Operating General Partner of Cananche Creek Limited Partnership and Shawnee Ridge Limited Partnership. These unauthorized distributions have been classified as receivables from the Operating General Partner on the Partnerships audited financial statements as of December 31, 2000. The Investment General Partner is actively seeking the immediate return of these funds through the Estate of the Operating General Partner. In addition, the Investment General Partner is weighing all available options to expedite the return of the unauthorized distributions and continues to monitor the Partnership.

Results of Operations-con't

Union Baptist Plaza, Limited Partnership, located in Springfield, Illinois, suffers from below breakeven operations due to high operating expenses. The 2000 audited financial statement was prepared assuming the partnership would continue as a Going Concern. The Partnership has suffered recurring operating losses and its total liabilities exceed its total assets. The property has a history of high occupancy, however high operating expenses particularly taxes and utilities prevent the property from achieving breakeven operations. Due to the lack of cash flow, the 1999 and 2000 property taxes are delinquent and have accrued in the amount of $42,810 plus interest. Although not yet delinquent it is unlikely that the partnership will have adequate cash to pay the 2001 taxes. The Operating General Partner is actively seeking to transfer its General Partner interest of this property. Negotiations are ongoing with the Springfield Housing Authority as a potential replacement. The goal is to find a strategic partner, preferably a nonprofit organization, that is capable of operating the property more efficiently. As part of any negotiated transfer, outstanding real estate taxes will be brought current. In the short term, the Operating General Partner is looking into re-financing the permanent mortgage, and appealing the property taxes as a means to increase cash flow.

On February 11, 2001, Jesup Limited Partnership (Fox Run Apartments) suffered from fire damage. The fire resulted in a total loss of an eight unit building, which is 33% of the 24-unit property. The repairs have been completed and the damaged units are all currently occupied. The insurance covered all the repairs less the deductible. In addition, the insurance company will also fund the lost rental income.

(Series 14) As of December 31, 2001 and 2000 the average Qualified Occupancy for the series was 99.8% for both years. The series had a total of 101 properties at December 31, 2001, 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 $2,177,455. When adjusted for depreciation, which is a non-cash item, the Operating Partnerships reflect positive operations of $1,660,788. This is an interim period estimate; it is not necessarily indicative of the final year end results.

The properties owned by Glenhaven Park Partners, A California LP (Glenhaven Estates) continue to suffer from excessive operating expenses compared to operating income. Effective October 4, 2000 San Mar Properties of Fresno, CA assumed the role of management agent. An affiliate of San Mar Properties, Central Valley Affordable Housing, LLC, assumed the General Partner interest effective December 31,2000. In Febraury 2001 the property was no longer able to meet the mortgage obligation. The Operating General Partner with the assistance of the Investment General Partner attempted to restructure the debt, however they were unsuccessful. The Operating General Partner advanced funds to bring five of the mortgage notes current. The Operating General Partner has agreed to keep these units tax credit compliant. Therefore, in an attempt to prevent foreclosure on the seven remaing notes, the partnership filed for Chapter 11 bankruptcy protection on October 2, 2001. The US Trustee has approved the cash collateral, which permited the partnership to remit a reduced monthly mortgage payments to the lender. The Reorganization plan involves bringing current one of the seven delinquent loans to order to remain compliant with the IRS Section 42 minimum set aside requirements, thus avoiding disallowance and full recapture of the tax

credits. As negotiations with the lender to restructure the debt have thus far failed it is likely that the partnership will face partial recapture of the

tax credits associated with six delinquent mortgage notes. The Partnership will face partial recapture of credit.

 

Results of Operations-con't

 

The properties owned by Haven Park Partners II, A California LP (Glenhaven Park II) continue to suffer from excessive operating expenses compared to operating income. Effective October 4, 2000 San Mar Properties of Fresno, CA assumed the role of management agent. An affiliate of San Mar Properties, Central Valley Affordable Housing, LLC, assumed the General Partner interest effective December 31,2000. As a result of the efforts of the new Management Company, occupancy levels have improved The property has filed for welfare tax exemption, and is currently awaiting a decision by the state. If granted, tax exemption will have a positive effect on cash flow. Physical occupancy at Haven Park II has stabilized at 100% through the fourth quarter of 2001.

The properties owned by Haven Park Partners III, A California L.P. (Glenhaven Park III) and Haven Park Partners IV, A California L.P. (Glenhaven Park IV) continue to suffer from excessive operating expenses compared to operating income. Effective October 4, 2000 San Mar Properties of Fresno, CA assumed the role of management agent. An affiliate of San Mar Properties, Central Valley Affordable Housing, LLC, assumed the General Partner interest effective December 31,2000. The Operating Partnerships are not operating at breakeven. The property has filed for welfare tax exemption, and is currently awaiting a decision by the state. If granted,the tax exemption will have a positive effect on cash flow. Occupancy at each property has stablized as a result of the efforts of the new Management Company. As of December 31, 2001 physical occupancy at both Haven Park III and Haven Park IV was 100%.

Woodfield Commons Limited Partnership (Rainbow Commons Apartments) received 60-Day letters issued by the IRS stating that the Operating Partnership had not met certain IRC Section 42 requirements for the tax years 1993-1998. The 60-Day letters, were the result of an IRS audit of the Operating Partnership's tenant files. As a result of their audit, the IRS has proposed an adjustment that would disallow 100% of past and future tax credits. The adjustment will also include interest and penalties on the past tax credit being disallowed. The Investment General Partner and its counsel are working with the Operating General Partner and its counsel to negotiate a more favorable settlement.

As a result of the Investment General Partner's expectation that certain past and future credits will be disallowed, 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, 2001.

 

Summer Lane Limited Partnership has historically suffered from low occupancy and consequently negative cash flow. The average occupancy for 2001 was 72%. The primary cause of the low occupancy has been a lack of rental assistance. The Operating General Partner was recently able to secure an additional 5 units of rental assistance for this property from Rural Development. As a result, the property achieved 100% occupancy as of February 1, 2002. The real estate taxes are current but were paid by Rural Development for 2000 as a result of inadequate cash flow from the property. The property will repay Rural Development during 2002. There were no deposits made to the replacement reserve account in 2001. The General Partner is currently in negotiations with Rural Development in an attempt to restructure the mortgage to reduce the payments as well as trying to receive a rehabiliation loan.

 

 

 

 

 

 

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 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 L.P.
General Partner
   
 

By:

BCA Associates Limited Partnership,
General Partner
   
 

By:

C&M Management Inc.,
General Partner
   

Date: February 20, 2002

By:

/s/ John P. Manning
     
   

John P. Manning