10-Q 1 b2jun1310q.htm BCTC II JUNE 2013 10-Q b2jun1310q

FORM 10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

(Mark One)

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

For the quarterly period ended June 30, 2013

or


( )   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to _______
Commission file number        0-19443

 

BOSTON CAPITAL TAX CREDIT FUND II LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)

Delaware

04-3066791

(State or other jurisdiction

(I.R.S. Employer

of incorporation or organization)

Identification No.)

 

One Boston Place, Suite 2100, Boston, Massachusetts  02108
(Address of principal executive offices)           (Zip Code)

Registrant's telephone number, including area code (617)624-8900

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ý

No 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ý

No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act (check one):

Large accelerated filer 

Accelerated filer 

Non-accelerated filer 

Smaller reporting company ý

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes 

No ý

 

 

BOSTON CAPITAL TAX CREDIT FUND II LIMITED PARTNERSHIP

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED June 30, 2013

TABLE OF CONTENTS

FOR THE QUARTER ENDED JUNE 30, 2013

 

Part I. Financial information

Item 1. CONDENSED FINANCIAL STATEMENTS

CONDENSED Balance Sheets 4

Condensed Balance Sheets Series 7 5

Condensed Balance Sheets Series 9 6

Condensed Balance Sheets Series 10 7

Condensed Balance Sheets Series 11 8

Condensed Balance Sheets Series 12 9

Condensed Balance Sheets Series 14 10

CONDENSED Statements of Operations three months 11

Condensed Statements of Operations Three Months Series 7 *

Condensed Statements of Operations Three Months Series 9 *

Condensed Statements of Operations Three Months Series 10 *

Condensed Statements of Operations Three Months Series 11 15

Condensed Statements of Operations Three Months Series 12 16

Condensed Statements of Operations Three Months Series 14 17

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT) 18

Condensed Statements of Changes in Partners' Capital (Deficit) Series 7 19

Condensed Statements of Changes in Partners' Capital (Deficit) Series 9 19

Condensed Statements of Changes in Partners' Capital (Deficit) Series 10 20

Condensed Statements of Changes in Partners' Capital (Deficit) Series 11 20

Condensed Statements of Changes in Partners' Capital (Deficit) Series 12 21

Condensed Statements of Changes in Partners' Capital (Deficit) Series 14 21

CONDENSED Statements of Cash Flows 22

Condensed Statements of Cash Flows Series 7 23

Condensed Statements of Cash Flows Series 9 24

Condensed Statements of Cash Flows Series 10 25

Condensed Statements of Cash Flows Series 11 26

Condensed Statements of Cash Flows Series 12 27

Condensed Statements of Cash Flows Series 14 28









 

 

 

 

 

 

 

 

 

 

BOSTON CAPITAL TAX CREDIT FUND II LIMITED PARTNERSHIP

QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 2013

TABLE OF CONTENTS (CONTINUED)

Notes to CONDENSED Financial Statements 29

Note A Organization 29

Note B Accounting and financial reporting policies 29

Note C Related Party Transactions 30

Note D Investments in operating partnerships 32

COMBINED CONDENSED summarized STATEMENTS OF OPERATIONs 34

Combined Condensed Summarized Statements of Operations Series 7 35

Combined Condensed Summarized Statements of Operations Series 9 36

Combined Condensed Summarized Statements of Operations Series 10 37

Combined Condensed Summarized Statements of Operations Series 11 38

Combined Condensed Summarized Statements of Operations Series 12 39

Combined Condensed Summarized Statements of Operations Series 14 40

Note E Taxable Loss 41

Note F Income Taxes 41

Note G Plan of Liquidation 42

Note H Subsequent Event 42

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

Results of Operations 43

Liquidity 43

Capital Resources 44

Results of Operations 45

Critical Accounting Policies and Estimates 64

Item 3. Quantitative and Qualitative Disclosures About Market Risk 65

Item 4. Controls and Procedures 65

Part II Other Information 66

Item 1. Legal Proceedings 66

Item 1A. Risk Factors 66

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 66

Item 3. Defaults Upon Senior Securities 66

Item 4. Mine Safety Disclosures 66

Item 5. Other Information 66

Item 6. Exhibits 66

Signatures 67






 

 



 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED BALANCE SHEETS

(Unaudited)

 

June 30,
2013 

March 31,
2013

ASSETS

Cash and cash equivalents

$   1,032,444

$   1,025,100

Other assets

     157,200

     258,725

$   1,189,644

$   1,283,825

LIABILITIES

Accounts payable

$      44,400

$      44,400

Accounts payable affiliates (Note C)

20,329,462

20,357,970

Capital contributions payable (Note D)

     169,974

     169,974

  20,543,836

  20,572,344

PARTNERS' CAPITAL (DEFICIT)

Assignees

  

Units of limited partnership 
interest, $10 stated value per
BAC; 20,000,000 authorized BACs;
18,679,738 issued and 18,655,338
outstanding





(17,779,715)





(17,714,699)

General Partner

 (1,574,477)

 (1,573,820)

(19,354,192)

(19,288,519)

$   1,189,644

$   1,283,825

 

 

 

The accompanying notes are an integral part of these condensed statements

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED BALANCE SHEETS

(Unaudited)

Series 7

 

 

June 30,
2013

March 31,
2013

ASSETS

 

 

 

Cash and cash equivalents

$        -

$        -

Other assets

        -

        -

 

$        -

$        -

LIABILITIES

Accounts payable
  

$        -

$        -

Accounts payable affiliates (Note C)

-

-

Capital contributions payable (Note D)

        -

        -

        -

        -

PARTNERS' CAPITAL (DEFICIT)

Assignees

 
 

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




 (84,506)




 (84,506)

General Partner

   84,506

   84,506

        -

        -

$        -

$        -

The accompanying notes are an integral part of these condensed statements

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED BALANCE SHEETS

(Unaudited)

Series 9



June 30,
2013

March 31,
2013

ASSETS

 

 

Cash and cash equivalents

$     92,078

$   101,496

Other assets

          -

         -

$     92,078

$   101,496

LIABILITIES

 

Accounts payable

$    25,900

$    25,900

Accounts payable affiliates (Note C)

6,415,696

6,393,853

 

Capital contributions payable (Note D)

          -

         -


  6,441,596


 6,419,753

PARTNERS' CAPITAL (DEFICIT)

Assignees

 
 

Units of limited partnership 
interest, $10 stated value per
BAC; 20,000,000 authorized BACs;
4,178,029 issued and 4,171,729
outstanding





(5,951,185)





(5,920,237)

General Partner

  (398,333)

  (398,020)

(6,349,518)

(6,318,257)

$     92,078

$    101,496

The accompanying notes are an integral part of these condensed statements

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED BALANCE SHEETS

(Unaudited)

Series 10



June 30,
2013

March 31,
2013

ASSETS

 

 

Cash and cash equivalents

$    152,203

$    222,664

Other assets

          -

          -

$    152,203

$    222,664

LIABILITIES

 

Accounts payable

$          -

$      5,000

 

Accounts payable affiliates (Note C)

1,988,622

2,034,503

 

Capital contributions payable (Note D)

          -

          -

  1,988,622

  2,039,503

PARTNERS' CAPITAL (DEFICIT)

Assignees

 
 

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





(1,623,142)





(1,603,758)

General Partner

  (213,277)

  (213,081)

(1,836,419)

(1,816,839)

$    152,203

$    222,664

 

The accompanying notes are an integral part of these condensed statements

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED BALANCE SHEETS

(Unaudited)

Series 11



June 30,
2013

March 31,
2013

ASSETS

 

 

 

Cash and cash equivalents

$    149,168

$    150,502

Other assets

          -

    101,525

$    149,168

$    252,027

LIABILITIES

 

Accounts payable 

$          -

$          -

 

Accounts payable affiliates (Note C)

980,980

1,067,392

 

Capital contributions payable (Note D)

          -

          -

   980,980

  1,067,392

PARTNERS' CAPITAL (DEFICIT)

Assignees

 
 

Units of limited partnership 
interest, $10 stated value per
BAC; 20,000,000 authorized BACs;
2,489,599 issued and 2,488,499 outstanding




(608,810)




(592,527)

General Partner

  (223,002)

  (222,838)

  (831,812)

  (815,365)

$    149,168

$    252,027

The accompanying notes are an integral part of these condensed statements

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED BALANCE SHEETS

(Unaudited)

Series 12



June 30,
2013

March 31,
2013

ASSETS

 

 

 

Cash and cash equivalents

$    176,542

$    182,782

Other assets

          -

          -

 

$    176,542

$    182,782

LIABILITIES

Accounts payable 

$      7,500

$      7,500

Accounts payable affiliates (Note C)

3,875,648

3,847,625

Capital contributions payable (Note D)

      9,241

      9,241

  3,892,389

  3,864,366

PARTNERS' CAPITAL (DEFICIT)

Assignees

 
 

Units of limited partnership 
interest, $10 stated value per
BAC; 20,000,000 authorized BACs;
2,972,795 issued and 2,971,795
outstanding





(3,427,558)





(3,393,638)

General Partner

  (288,289)

  (287,946)

(3,715,847)

(3,681,584)

$    176,542

$    182,782

The accompanying notes are an integral part of these condensed statements

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED BALANCE SHEETS

(Unaudited)

Series 14



June 30,
2013

March 31,
2013

ASSETS

 

 

 

Cash and cash equivalents

$    462,453

$    367,656

Other assets

    157,200

    157,200

$    619,653

$    524,856

 

 

LIABILITIES

 

 

 

Accounts payable

$     11,000

$      6,000

 

Accounts payable affiliates (Note C)

7,068,516

7,014,597

Capital contributions payable (Note D)

    160,733

    160,733

  7,240,249

  7,181,330

 

 

 

PARTNERS' CAPITAL (DEFICIT)

 

 

 

 

 

Assignees

 

 

 
 

Units of limited partnership 
interest, $10 stated value per
BAC; 20,000,000 authorized BACs;
5,574,290 issued and 5,565,990 outstanding




(6,084,514)




(6,120,033)

General Partner

  (536,082)

  (536,441)

(6,620,596)

(6,656,474)

$    619,653

$    524,856

 

The accompanying notes are an integral part of these condensed statements

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)

 


2013


2012

 

 

 

Income

 

 

  

Interest income

$       267

$       412

Other income

    29,533

    19,960

 

    29,800

    20,372

Share of income from Operating 
  Partnerships(Note D)


    85,661


   156,000

 

 

 

Expenses

 

 

  

 

 

Professional fees

27,765

2,160

Partnership management fee, net (Note C)

127,933

168,417

General and administrative expenses

    25,436

    23,689

  


   181,134


   194,266

  NET INCOME(LOSS)

$  (65,673)

$  (17,894)

Net income(loss) allocated to assignees

$  (65,016)

$  (17,715)

 

Net income(loss) allocated to general partner

$   (657)

$     (179)

Net income(loss) per BAC

$     (.00)

$     (.00)

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED STATEMENTS OF OPERATIONS

Three Months Ended June 30,

(Unaudited)

Series 7


2013


2012

 

 

 

Income

Interest income

$       -

$       -

  

Other income

       -

       -

       -

       -

Share of income from Operating 
  Partnerships(Note D)


       -


       -

Expenses

  

Professional fees

-

-

Partnership management fee, net (Note C)

-

-

  

General and administrative expenses

       -

       -

  


       -


       -

  NET INCOME(LOSS)

$       -

$       -

Net income(loss) allocated to assignees

$       -

$       -

 

Net income(loss) allocated to general partner

$       -

$       -

Net income(loss) per BAC

$       -

$       -









The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)

Series 9


2013


2012

 

 

 

Income

 

 

  

Interest income

$        24

$        97

  

Other income

         -

         -

 

        24

        97

Share of income from Operating 
  Partnerships(Note D)


         -


   156,000

 

 

 

Expenses

 

 

  

 

 

Professional fees

4,590

85

Partnership management fee, net (Note C)

21,843

32,499

General and administrative expenses

     4,852

     4,473

  


    31,285


    37,057

  NET INCOME(LOSS)

$  (31,261)

$   119,040

 

 

 

Net income(loss) allocated to assignees

$  (30,948)

$   117,850

 

Net income(loss) allocated to general partner

$     (313)

$     1,190

Net income(loss) per BAC

$     (.01)

$       .03

 

 

 










The accompanying notes are an integral part of these condensed statements

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)

Series 10


2013


2012

Income

  

Interest income

$        53

$        97

Other income

     5,600

     3,790

     5,653

     3,887

Share of income from Operating 
  Partnerships(Note D)


         -


         -

Expenses

  

Professional fees

4,285

63

Partnership management fee, net (Note C)

16,672

20,380

General and administrative expenses

     4,276

     3,986

  


    25,233


    24,429

  NET INCOME(LOSS)

$  (19,580)

$  (20,542)

Net income(loss) allocated to assignees

$  (19,384)

$  (20,337)

 

Net income(loss) allocated to general partner

$     (196)

$     (205)

Net income(loss) per BAC

$     (.01)

$     (.01)









The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)

Series 11


2013


2012

 

 

 

Income

 

 

  

Interest income

$       51

$       61

 

Other income

    6,054

    4,013

    6,105

    4,074

Share of income from Operating 
  Partnerships(Note D)


   13,811


        -

 

 

 

Expenses

 

 

  

 

 

Professional fees

4,635

1,361

Partnership management fee, net (Note C)

27,667

25,402

General and administrative expenses

    4,061

    3,847

  


   36,363


   30,610

 

 

 

  NET INCOME(LOSS)

$ (16,447)

$ (26,536)

 

 

 

 

Net income(loss) allocated to assignees

$ (16,283)

$ (26,271)

 

 

 

Net income(loss) allocated to general partner

$    (164)

$    (265)

 

 

 

Net income(loss) per BAC

$    (.01)

$    (.01)

 

 

 















The accompanying notes are an integral part of these condensed statements

 

 

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)

Series 12


2013


2012

 

 

 

Income

 

 

  

Interest income

$       45

$       50

 

Other income

        -

        -

       45

       50

Share of income from Operating 
  Partnerships(Note D)


        -


        -

 

 

 

Expenses

 

 

  

 

 

Professional fees

5,360

75

Partnership management fee, net (Note C)

23,780

25,736

General and administrative expenses

    5,168

    4,296

  


   34,308


   30,107

 

 

 

 

 NET INCOME(LOSS)


$ (34,263)


$ (30,057)

 

 

 

Net income(loss) allocated to assignees

$ (33,920)

$ (29,756)

 

Net income(loss) allocated to general partner

$    (343)

$    (301)

Net income(loss) per BAC

$    (.01)

$    (.01)

 

 

 












The accompanying notes are an integral part of these condensed statements

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED STATEMENTS OF OPERATIONS

Three Months Ended June 30,
(Unaudited)

Series 14


2013


2012

 

 

 

Income

 

 

  

Interest income

$       94

$      107

  

Other income

   17,879

   12,157

 

   17,973

   12,264

Share of income from Operating 
  Partnerships(Note D)


   71,850


        -

 

 

 

Expenses

 

 

  

Professional fees

8,895

576

Partnership management fee, net (Note C)

37,971

64,400

 

General and administrative expenses

    7,079

    7,087

  


   53,945


   72,063

 

 

 

  NET INCOME(LOSS)

$ 35,878

$ (59,799)

 

 

 

Net income(loss) allocated to assignees

$ 35,519

$ (59,201)

 

Net income(loss) allocated to general partner

$   359

$    (598)

Net income(loss) per BAC

$      .01

$    (.01)









The accompanying notes are an integral part of these condensed statements

 

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Three Months Ended June 30,
(Unaudited)

 



Assignees



General
Partner





Total

 

 

 

 

Partners' capital
(deficit)
  April 1, 2013



$(17,714,699)



$(1,573,820)



$(19,288,519)

 

 

 

 

Net income(loss)

    (65,016)

     (657)

    (65,673)

 

 

 

 

Partners' capital
(deficit),
  June 30, 2013



$(17,779,715)



$(1,574,477)



$(19,354,192)

 

 

 

 


























The accompanying notes are an integral part of these condensed statements

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)


Three Months Ended June 30,
(Unaudited)

 


Assignees

General
Partner

Total

Series 7

 

 

 

Partners' capital
(deficit)
  April 1, 2013



$   (84,506)



$     84,506



$          -

 

 

 

 

Net income(loss)

          -

          -

          -

 

 

 

 

Partners' capital
(deficit),
  June 30, 2013



$   (84,506)



$     84,506



$          -

 

 

 

 

 

 

 

 

Series 9

 

 

 

Partners' capital
(deficit)
  April 1, 2013



$(5,920,237)



$  (398,020)



$(6,318,257)

 

 

 

 

Net income(loss)

   (30,948)

      (313)

   (31,261)

 

 

 

 

Partners' capital
(deficit),
  June 30, 2013



$(5,951,185)



$  (398,333)



$(6,349,518)

 

 

 

 



 

 

 

 

 

The accompanying notes are an integral part of these condensed statements

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)


Three Months Ended June 30,
(Unaudited)

 


Assignees

General
Partner

Total

Series 10

 

 

 

Partners' capital
(deficit)
  April 1, 2013



$ (1,603,758)



$ (213,081)



$ (1,816,839)

 

 

 

 

Net income(loss)

    (19,384)

     (196)

    (19,580)

 

 

 

 

Partners' capital
(deficit),
  June 30, 2013



$ (1,623,142)



$ (213,277)



$ (1,836,419)

 

 

 

 

 

 

 

 

Series 11

 

 

 

Partners' capital
(deficit)
  April 1, 2013



$   (592,527)



$ (222,838)



$   (815,365)

 

 

 

 

Net income(loss)

    (16,283)

     (164)

    (16,447)

 

 

 

 

Partners' capital
(deficit),
  June 30, 2013



$   (608,810)



$ (223,002)



$   (831,812)

 

 

 

 









The accompanying notes are an integral part of these condensed statements

 

 

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

CONDENSED STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (DEFICIT)

Three Months Ended June 30,
(Unaudited)

 


Assignees

General
Partner

Total

Series 12

 

 

 

Partners' capital
(deficit)
  April 1, 2013



$(3,393,638)



$ (287,946)



$(3,681,584)

 

 

 

 

Net income(loss)

   (33,920)

     (343)

   (34,263)

 

 

 

 

Partners' capital
(deficit),
  June 30, 2013



$(3,427,558)



$ (288,289)



$(3,715,847)

 

 

 

 

 

 

 

 

Series 14

 

 

 

Partners' capital
(deficit)
  April 1, 2013



$(6,120,033)



$ (536,441)



$(6,656,474)

 

 

 

 

Net income(loss)

    35,519

      359

    35,878

 

 

 

 

Partners' capital
(deficit),
  June 30, 2013



$(6,084,514)



$ (536,082)



$(6,620,596)

 

 

 

 











The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

 

2013

2012

Cash flows from operating activities:

 

 

 

 

 

   Net Income(loss)

$   (65,673)

$    (17,894)

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

 

 

      Share of Income from Operating
        Partnerships


(85,661)


(156,000)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses

-


20,000

      Decrease in other assets

-

340,518

     (Decrease) Increase in accounts
        payable affiliates


  (28,508)


     201,724

 

 

 

      Net cash (used in) provided by 
        operating activities


   (179,842)


     388,348

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships


     187,186


     156,000

 

 

 

   Net cash provided by
     investing activities


     187,186


     156,000

 

 

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

7,344


544,348

 

 

 

Cash and cash equivalents, beginning

   1,025,100

   1,302,447

 

 

 

Cash and cash equivalents, ending

$   1,032,444

$   1,846,795














The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 7

 

2013

2012

Cash flows from operating activities:

 

 

 

 

 

   Net Income(loss)

$         -

$         -

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

 

 

      Share of Income from Operating
        Partnerships


-


-

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses


-


-

      Decrease in other assets

-

-

     (Decrease) Increase in accounts
        payable affiliates


         -


         -

 

 

 

      Net cash (used in) provided by 
        operating activities


         -


         -

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships


         -


         -

 

 

 

   Net cash provided by
     investing activities


         -


         -

 

 

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


-


-

 

 

 

Cash and cash equivalents, beginning

         -

         -

 

 

 

Cash and cash equivalents, ending

$         -

$         -

 

 

 









The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 9

 

2013

2012

Cash flows from operating activities:

 

 

 

 

 

   Net Income(loss)

$   (31,261)

$    119,040

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

 

 

      Share of Income from Operating
        Partnerships

-


(156,000)

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses

-


15,000

      Decrease in other assets

-

-

     (Decrease) Increase in accounts
        payable affiliates


    21,843


    33,916

 

 

 

      Net cash (used in) provided by 
        operating activities


  (9,418)


    11,956

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships


         -


   156,000

 

 

 

   Net cash provided by
     investing activities


         -


   156,000

 

 

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(9,418)


167,956

 

 

 

Cash and cash equivalents, beginning

   101,496

   316,051

 

 

 

Cash and cash equivalents, ending

$    92,078

$   484,007

 

 

 









The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 10

 

2013

2012

Cash flows from operating activities:

 

 

 

 

 

   Net Income(loss)

$  (19,580)

$  (20,542)

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

 

 

      Share of Income from Operating
        Partnerships


-


-

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses


(5,000)


5,000

      Decrease in other assets

-

339,418

     (Decrease) Increase in accounts
        payable affiliates


  (45,881)


    23,094

 

 

 

      Net cash (used in) provided by 
        operating activities


  (70,461)


   346,970

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships


         -


         -

 

 

 

   Net cash provided by
     investing activities


         -


         -

 

 

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS

(70,461)


346,970

 

 

 

Cash and cash equivalents, beginning

   222,664

   250,847

 

 

 

Cash and cash equivalents, ending

$   152,203

$   597,817

 

 

 














The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 11

 

2013

2012

Cash flows from operating activities:

 

 

 

 

 

   Net Income(loss)

$  (16,447)

$  (26,536)

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

 

 

      Share of Income from Operating
        Partnerships


(13,811)


-

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses


-


-

      Decrease in other assets

-

-

     (Decrease) Increase in accounts
        payable affiliates


  (86,412)


    29,658

 

 

 

      Net cash (used in) provided by 
        operating activities


 (116,670)


     3,122

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships


   115,336


         -

 

 

 

   Net cash provided by
     investing activities


   115,336


         -

 

 

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(1,334)


3,122

 

 

 

Cash and cash equivalents, beginning

   150,502

   205,808

 

 

 

Cash and cash equivalents, ending

$   149,168

$   208,930

 

 

 










The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 12

 

2013

2012

Cash flows from operating activities:

 

 

 

 

 

   Net Income(loss)

$  (34,263)

$  (30,057)

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

 

 

      Share of Income from Operating
        Partnerships


-


-

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses


-


-

      Decrease in other assets

-

-

     (Decrease) Increase in accounts
        payable affiliates


    28,023


    32,628

 

 

 

      Net cash (used in) provided by 
        operating activities


   (6,240)


     2,571

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships


         -


         -

 

 

 

   Net cash provided by
     investing activities


         -


         -

 

 

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


(6,240)


2,571

 

 

 

Cash and cash equivalents, beginning

   182,782

   170,287

 

 

 

Cash and cash equivalents, ending

$   176,542

$   172,858

 

 

 










The accompanying notes are an integral part of these condensed statements

 

Boston Capital Tax Credit Fund II Limited Partnership

STATEMENTS OF CASH FLOWS

Three Months Ended June 30,
(Unaudited)

Series 14

 

2013

2012

Cash flows from operating activities:

 

 

 

 

 

   Net Income(loss)

$ 35,878

$  (59,799)

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

 

 

      Share of Income from Operating
        Partnerships


(71,850)


-

   Changes in assets and liabilities

 

 

     (Decrease) Increase in accounts
        payable and accrued expenses


5,000


-

      Decrease in other assets

-

1,100

     (Decrease) Increase in accounts
        payable affiliates


    53,919


    82,428

 

 

 

      Net cash (used in) provided by 
        operating activities


    22,947


    23,729

 

 

 

Cash flows from investing activities:

 

 

 

 

 

   Proceeds from the disposition of
     Operating Partnerships


    71,850


         -

 

 

   Net cash provided by
     investing activities


    71,850


         -

 

 

 

  INCREASE (DECREASE) IN CASH AND
        CASH EQUIVALENTS


94,797


23,729

 

 

 

Cash and cash equivalents, beginning

   367,656

   359,454

 

 

 

Cash and cash equivalents, ending

$   462,453

$   383,183

 

 

 









The accompanying notes are an integral part of these condensed statements

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS

June 30, 2013

(Unaudited)

NOTE A - ORGANIZATION

Boston Capital Tax Credit Fund II Limited Partnership (the "Partnership") was
formed under the laws of the State of Delaware as of September 28, 1989, for the purpose of acquiring, holding, and disposing of limited partnership interests in operating partnerships which will acquire, develop, rehabilitate, operate and own newly constructed, existing or rehabilitated low-income apartment complexes ("Operating Partnerships"). Effective as of June 1, 2001 there was a restructuring, and as a result, the Partnership's general partner was reorganized as follows. The general partner of the Partnership continues to be Boston Capital Associates II Limited Partnership, a Delaware limited partnership. The general partner of the general partner is BCA Associates Limited Partnership, a Massachusetts limited partnership, whose sole general partner is C&M Management, Inc., a Massachusetts corporation and whose limited partners are Herbert F. Collins and John P. Manning. Mr. Manning is the principal of Boston Capital Partners, Inc. The limited partner of the general partner is Capital Investment Holdings, a general partnership whose partners are certain officers and employees of Boston Capital Partners, Inc. and its affiliates. The assignor limited partner is BCTC II Assignor Corp., a Delaware corporation which is now wholly-owned by John P. Manning.

Pursuant to the Securities Act of 1933, the Partnership filed a Form S-11
Registration Statement with the Securities and Exchange Commission, effective
October 25, 1989, which covered the offering (the "Public Offering") of the
Partnership's beneficial assignee certificates ("BACs") representing
assignments of units of the beneficial interest of the limited partnership
interest of the assignor limited partner. The Partnership registered
20,000,000 BACs at $10 per BAC for sale to the public in six series. The
Partnership sold 1,036,100 of Series 7 BACs, 4,178,029 of Series 9 BACs,
2,428,925 of Series 10 BACs, 2,489,599 of Series 11 BACs, 2,972,795 of Series
12 BACs, and 5,574,290 of Series 14 BACs. As of June 30, 2013 1,036,100 BACs in Series 7, 4,171,729 BACs in Series 9, 2,421,225 BACs in Series 10, 2,488,499 BACs in Series 11, 2,971,795 BACs in Series 12, and 5,565,990 BACs in Series 14 are outstanding. The Partnership issued the last BACs in Series 14 on January 27, 1992. This concluded the Public Offering of the Partnership.

NOTE B - ACCOUNTING AND FINANCIAL REPORTING POLICIES

The condensed financial statements included herein as of June 30, 2013 and for the three months then ended have been prepared by the Partnership, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. No BACs with respect to Series 8 and Series 13 were offered. The Partnership accounts for its investments in Operating Partnerships using the equity method, whereby the Partnership adjusts its investment cost for its share of each Operating Partnership's results of operations and for any distributions received or accrued.

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

June 30, 2013

(Unaudited)

NOTE - B ACCOUNTING AND FINANCIAL REPORTING POLICIES - CONTINUED

Costs incurred by the Partnership in acquiring the investments in Operating Partnerships were capitalized to the investment account. The Partnership's accounting and financial reporting policies are in conformity with generally accepted accounting principles and include adjustments in interim periods considered necessary for a fair presentation of the results of operations. Such adjustments are of a normal recurring nature. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations. It is suggested that these condensed financial statements be read in conjunction with the financial statements and the notes thereto included in the Partnership's Annual Report on Form 10-K for the fiscal year ended March 31, 2013.

NOTE C - RELATED PARTY TRANSACTIONS

The Partnership has entered into several transactions with various affiliates of the general partner, including Boston Capital Holdings, L.P. and Boston Capital Asset Management Limited Partnership, or BCAMLP, as follows:

Accounts payable affiliates at June 30, 2013 and 2012 represents
accrued general and administrative expenses, accrued partnership management fees, and advances from an affiliate of the general partner, which are payable to Boston Capital Holdings, L.P. and Boston Capital Asset Management Limited
Partnership.

An annual partnership management fee based on .5 percent of the aggregate
cost of all apartment complexes owned by the Operating Partnerships has been
accrued to Boston Capital Asset Management Limited Partnership. Since reporting fees collected by the series were added to reserves and not paid to Boston Capital Asset Management Limited Partnership, the amounts accrued are not net of reporting fees received.

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

June 30, 2013

(Unaudited)

NOTE C - RELATED PARTY TRANSACTIONS (continued)

The partnership management fee accrued for the quarters ended June 30, 2013 and 2012 are as follows:

 

      2013

      2012

Series 7

$         -

$         -

Series 9

     21,843

     33,916

Series 10

     21,644

     23,094

Series 11

     28,923

     29,658

Series 12

     28,023

     32,628

Series 14

     53,919

     82,428

 

 

 

$   154,352

$   201,724

The partnership management fee paid for the quarters ended June 30, 2013 and 2012 are as follows:

 

      2013

     2012

Series 7

$         -

$         -

Series 9

          -

          -

Series 10

     67,525

          -

Series 11

115,335

          -

Series 12

          -

          -

Series 14

          -

          -

 

 

 

 

$   182,860

$         -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

June 30, 2013

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS

At June 30, 2013, and 2012 the Partnership had limited partnership interests in 93 and 117 Operating Partnerships, respectively, which own apartment complexes. The number of Operating Partnerships in which the Partnership had limited partnership interests at June 30, 2013 and 2012 by series is as follows:

 

2013

2012

Series 7

-

-

Series 9

12

17

Series 10

14

15

Series 11

15

16

Series 12

21

23

Series 14

 31

 46

 

 

 

 

93

117

 

 

 

 

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 June 30, 2013 and 2012 by series are as
follows:

 

2013

2012

Series 7

$      -

$      -

Series 9

-

-

Series 10

-

-

Series 11

-

-

Series 12

9,241

9,241

Series 14

160,733

160,733

 

 

 

 

$169,974

$169,974

 

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

June 30, 2013

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS - Continued

During the three months ended June 30, 2013, the Partnership disposed of one Operating Partnership and a partial sale of one Operating Partnership. A summary of the disposition by Series for June 30, 2013 is as follows:

 

Operating Partnership Interest Transferred

 

Sale of Underlying Operating Partnership

 

Partnership Proceeds from Disposition*

 

Gain on Disposition

Series 7

-

 

-

 

$

-

 

$

-

Series 9

-

 

-

 

 

-

 

 

-

Series 10

-

 

-

 

 

-

 

 

-

Series 11

-

 

-

 

 

115,336

 

 

13,811

Series 12

-

 

-

 

 

-

 

 

-

Series 14

1

 

-

 

 

71,850

 

 

71,850

Total

1

 

-

 

$

187,186

 

$

85,661

* Partnership proceeds from disposition include $101,525 recorded as a receivable as of March 31, 2013, for Series 11.

During the three months ended June 30, 2012 the Partnership disposed of one Operating Partnership. A summary of the disposition by Series for June 30, 2012 is as follows:

 

Operating Partnership Interest Transferred

 

Sale of Underlying Operating Partnership

 

Partnership Proceeds from Disposition

 

Gain on Disposition

Series 7

-

 

-

 

$

-

 

$

-

Series 9

-

 

1

 

 

156,000

 

 

156,000

Series 10

-

 

-

 

 

-

 

 

-

Series 11

-

 

-

 

 

-

 

 

-

Series 12

-

 

-

 

 

-

 

 

-

Series 14

-

 

-

 

 

-

 

 

-

Total

-

 

1

 

$

156,000

 

$

156,000

The gain described above is for financial statement purposes only. There are significant differences between the equity method of accounting and the tax reporting of income and losses from Operating Partnership investments. The largest difference is the ability, for tax purposes, to deduct losses in excess of the Partnership's investment in the Operating Partnership. As such, the amount of gain recognized for tax purposes may be significantly higher than the gain recorded in the financial statements.

The Partnership's fiscal year ends March 31 of each year, while all the Operating Partnerships' fiscal years are the calendar year. Pursuant to the provisions of each Operating Partnership agreement, financial results for each of the Operating Partnerships are provided to the Partnership within 45 days after the close of each Operating Partnership's quarterly period. Accordingly, the current financial results available for the Operating Partnerships are for the three months ended March 31, 2013.

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

June 30, 2013

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS - Continued

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,

(Unaudited)

 

                2013

                2012

 

 

 

Revenues

 

 

 

Rental

$  4,478,261

$  5,654,601

 

Interest and other

    167,541

    193,092

 

  4,645,802

  5,847,693

 

 

 

Expenses

 

 

 

Interest

700,425

974,373

 

Depreciation and amortization

1,066,975

1,244,184

Operating expenses

 3,368,276

  4,108,570

 

  5,135,676

  6,327,127

 

 

 

NET LOSS

$  (489,874)

$  (479,434)

 

 

 

 

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



$  (484,978)



$  (474,639)

 

 

 

 

 

 

 

Net loss allocated to other partners

$    (4,896)

$    (4,795)

 

 

 

*Amounts include $484,978 and $474,639 for 2013 and 2012, respectively, of loss not recognized under the equity method of accounting.

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

 

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

June 30, 2013

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS - Continued


COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,

(Unaudited)

Series 7

 

                2013

                2012

 

 

 

Revenues

 

 

 

Rental

$          -

$          -

 

Interest and other

          -

          -

 

          -

          -

 

 

 

Expenses

 

 

 

Interest

-

-

 

Depreciation and amortization

-

-

Operating expenses

          -

          -

 

          -

          -

 

 

 

NET LOSS

$          -

$          -

 

 

 

 

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



$          -



$          -

 

 

 

 

 

 

 

Net loss allocated to other partners

$          -

$          -

 

 

 

*Amounts include $0 for 2013 and 2012, respectively, of loss not recognized under the equity method of accounting.

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

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

June 30, 2013

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS - Continued

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)

Series 9

 

                 2013

            2012

 

 

 

Revenues

 

 

 

Rental

$   590,161

$    897,305

 

Interest and other

     33,037

     41,883

 

   623,198

   939,188

 

 

 

Expenses

 

 

 

Interest

99,226

175,071

 

Depreciation and amortization

139,421

209,938

 

Operating expenses

   413,624

   701,585

 

   652,271

  1,086,594

 

 

 

NET LOSS

$   (29,073)

$  (147,406)

 

 

 

 

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



$   (28,782)



$  (145,932)

 

 

 

 

 

 

 

Net loss allocated to other partners

$     (291)

$    (1,474)

 

 

 

*Amounts include $28,782 and $145,932 for 2013 and 2012, respectively, of loss not recognized under the equity method of accounting.

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

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

June 30, 2013

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)

Series 10

 

                 2013

            2012

 

 

 

Revenues

 

 

 

Rental

$   575,535

$   604,485

 

Interest and other

     9,914

     9,314

 

   585,449

   613,799

 

 

 

Expenses

 

 

 

Interest

68,524

88,609

 

Depreciation and amortization

133,787

140,346

 

Operating expenses

   476,832

   469,533

 

   679,143

   698,488

 

 

 

NET LOSS

$  (93,694)

$  (84,689)

 

 

 

 

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



$  (92,758)



$  (83,842)

 

 

 

 

 

 

 

Net loss allocated to other partners

$     (936)

$     (847)

 

 

 

*Amounts include $92,758 and $83,842 for 2013 and 2012, respectively, of loss not recognized under the equity method of accounting.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

June 30, 2013

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)

Series 11

 

                2013

            2012

 

 

 

Revenues

 

 

Rental

$    866,262

$    873,242

 

Interest and other

     28,155

     35,110

 

    894,417

    908,352

 

 

 

Expenses

 

 

 

Interest

127,028

150,064

 

Depreciation and amortization

187,644

198,220

 

Operating expenses

    609,316

    632,821

 

    923,988

    981,105

 

 

 

NET LOSS

$   (29,571)

$   (72,753)

 

 

 

 

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



$   (29,276)



$   (72,025)

 

 

 

 

 

 

 

Net loss allocated to other partners

$      (295)

$      (728)

 

 

 

*Amounts include $29,276 and $72,025 for 2013 and 2012, respectively, of loss not recognized under the equity method of accounting.

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

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

June 30, 2013

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)

COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)

Series 12

 

               2013

            2012

 

 

 

Revenues

 

 

 

Rental

$    814,359

$    927,417

 

Interest and other

     52,737

     45,518

 

    867,096

    972,935

 

 

 

Expenses

 

 

 

Interest

129,756

155,159

 

Depreciation and amortization

246,607

193,648

 

Operating expenses

    609,714

    648,017

 

    986,077

    996,824

 

 

 

NET LOSS

$  (118,981)

$   (23,889)

 

 

 

 

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



$  (117,792)



$   (23,650)

 

 

 

 

 

 

 

Net loss allocated to other partners

$    (1,189)

$      (239)

 

 

 

*Amounts include $117,792 and $23,650 for 2013 and 2012, respectively, of loss not recognized under the equity method of accounting.

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

 

 

 

 

 

 

 

 

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)

June 30, 2013

(Unaudited)

NOTE D - INVESTMENTS IN OPERATING PARTNERSHIPS (continued)


COMBINED CONDENSED SUMMARIZED STATEMENTS OF OPERATIONS
Three Months Ended March 31,
(Unaudited)

Series 14

 

                2013

            2012

 

 

 

Revenues

 

 

 

Rental

$  1,631,944

$  2,352,152

 

Interest and other

     43,698

     61,267

 

  1,675,642

  2,413,419

 

 

 

Expenses

 

Interest

275,891

405,470

 

Depreciation and amortization

359,516

502,032

 

Operating expenses

  1,258,790

  1,656,614

 

  1,894,197

  2,564,116

 

 

 

NET LOSS

$  (218,555)

$  (150,697)

 

 

 

 

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



$  (216,370)



$  (149,190)

 

 

 

 

 

 

 

Net loss allocated to other partners

$    (2,185)

$    (1,507)

 

 

 

*Amounts include $216,370 and $149,190 for 2013 and 2012, respectively, of loss not recognized under the equity method of accounting.

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

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
June 30, 2013
(Unaudited)

NOTE E - TAXABLE LOSS

The taxable loss for the calendar year ended December 31, 2013 is expected to differ from its loss for financial reporting purposes. This is primarily due to accounting differences in depreciation incurred by the Operating Partnerships and also differences between the equity method of accounting and the IRS accounting methods.

NOTE F - INCOME TAXES

The Partnership has elected to be treated as a pass-through entity for income tax purposes and, as such, is not subject to income taxes.  Rather, all items of taxable income, deductions and tax credits are passed through to and are reported by its owners on their respective income tax returns.  The Partnership's federal tax status as a pass-through entity is based on its legal status as a partnership. Accordingly, the Partnership is not required to take any tax positions in order to qualify as a pass-through entity.  The Partnership is required to file and does file tax returns with the Internal Revenue Service and other taxing authorities.  Accordingly, these financial statements do not reflect a provision for income taxes and the Partnership has no other tax positions, which must be considered for disclosure.  Income tax returns filed by the Partnership are subject to examination by the Internal Revenue Service for a period of three years. While no income tax returns are currently being examined by the Internal Revenue Service, tax years since 2009 remain open.

 

 

Boston Capital Tax Credit Fund II Limited Partnership

NOTES TO CONDENSED FINANCIAL STATEMENTS (CONTINUED)
June 30, 2013
(Unaudited)

NOTE G - PLAN OF LIQUIDATION

On March 3, 2010, our General Partner recommended that the BAC holders approve a plan of liquidation and dissolution for the Partnership, or the "Plan." The Plan was approved by the BAC holders on July 1, 2010, and was adopted by the General Partner on July 1, 2010. Pursuant to the Plan, the General Partner is able to, without further action by the BAC holders:

    • liquidate the assets and wind up the business of the Partnership;
    • make liquidating distributions in cancellation of the BACs;
    • dissolve the Partnership after the sale of all of the Partnership's assets; and
    • take, or cause the Partnership to take, such other acts and deeds and shall do, or cause the Partnership to do, such other things, as are necessary or appropriate in connection with the dissolution, winding up and liquidation of the Partnership, the termination of the responsibilities and liabilities of the Partnership under applicable law, and the termination of the existence of the Partnership.

Since the approval of the Plan by the BAC holders, we have continued to seek to sell the assets of the Partnership and use the sale proceeds and/or other Partnership funds to pay all expenses in connection with such sales, pay or make provision for payment of all Partnership obligations and liabilities, including accrued fees, and unpaid loans to the General Partner, and distribute the remaining assets as set forth in the Partnership Agreement. We expect to complete the sale of the apartment complexes approximately three to five years after the BAC holders approval of the Plan, which was July 1, 2010. However, because of numerous uncertainties, the liquidation may take longer or shorter than expected, and the final liquidating distribution may occur months after all of the apartment complexes have been sold.

For additional information regarding the sale of Partnership assets, see "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Annual Report on Form 10-K.

NOTE H - SUBSEQUENT EVENT

The Partnership has entered into agreements to transfer interests in eight Operating Partnerships. The estimated sales prices and other terms for the disposition of the Operating Partnerships have been determined. The estimated proceeds to be received for these eight Operating Partnerships are $688,477. The estimated gain on sales of the Operating Partnerships is $619,315 and the transfers are expected to be recognized in the second quarter of fiscal year end 2014.

 

 

 

 

 

 

 

 

 

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

This Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements including our intentions, hopes, beliefs, expectations, strategies and predictions of our future activities, or other future events or conditions. These statements are "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created by these acts. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including, for example, the factors identified in Part I, Item 1A. "Risk Factors" of our Annual Report on Form 10-K for the fiscal year ended March 31, 2013. Although we believe that the assumptions underlying these forward-looking statements are reasonable, any of the assumptions could be inaccurate, and there can be no assurance that the forward-looking statements included in this Report will prove to be accurate. In light of the significant uncertainties inherent in these forward-looking statements, the inclusion of this information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved.

Liquidity

The Partnership's primary source of funds was the proceeds of its Public Offering.  Other sources of liquidity include (i) interest earned on capital contributions unpaid for the three months ended June 30, 2013 or on working capital reserves, (ii) cash distributions from operations of the Operating Partnerships in which the Partnership has invested and (iii) proceeds received from the dispositions of the Operating Partnership that are returned to fund reserves.  These sources of liquidity, along with the Partnership's working capital reserve, are available to meet the obligations of the Partnership.  The Partnership does not anticipate significant cash distributions from operations of the Operating Partnerships.

The Partnership has recognized other income for the three months ended June 30, 2013 and 2012 in the amount of $29,533 and $19,960. The balance represents distributions received from Operating Partnerships, which the Partnership normally records as a decrease in the Investment in Operating Partnerships. Due to the equity method of accounting, the Partnership has recorded these distributions as other income.

The Partnership is currently accruing the partnership management fee.  Partnership management fees accrued during the quarter ended June 30, 2013 were $154,352 and total partnership management fees accrued as of June 30, 2013 were $20,176,274. During the three months ended June 30, 2013, the Partnership paid $182,860 in accrued partnership management fees. Pursuant to the Partnership Agreement, these liabilities will be deferred until the Partnership receives proceeds from sales of the Operating Partnerships, which will be used to satisfy these liabilities. The Partnership's working capital and sources of liquidity coupled with affiliated party liability accruals allow sufficient levels of liquidity to meet the third party obligations of the Partnership.  The Partnership is currently unaware of any trends that would create insufficient liquidity to meet future third party obligations of the Partnership.

As of June 30, 2013, an affiliate of the general partner of the Partnership advanced a total of $153,188, on behalf of Series 12, to pay some operating expenses of the Partnership, and to make advances and/or loans to Operating Partnerships. These advances are included in Accounts payable affiliates. During the quarter ended June 30, 2013, the Partnership did not receive any repayment of advances.

All payables to affiliates will be paid, without interest, from available cash flow or the proceeds of sales or refinancing of the Partnership's interests in Operating Partnerships. During the quarter ended June 30, 2013, no payments were made to an affiliate of the general partner.

Capital Resources

The Partnership offered BACs in a Public Offering declared effective by the Securities and Exchange Commission on October 25, 1989. The Partnership received and accepted subscriptions for $186,337,017 representing 18,679,738 BACs from investors admitted as BAC holders in Series 7 through Series 14 of the Partnership.

As of June 30, 2013 the Partnership had $1,032,444 remaining in cash and cash equivalents. Below is a table, which provides, by series, the equity raised, number of BACs sold, final date BACs were offered, number of properties held at June 30, 2013, and cash and cash equivalents.

 

 

Series

 

Equity

BACs 

Sold

Final Close Date

Number of 

Properties

Cash and Cash Equivalents

7

$ 10,361,000

1,036,100

12/29/89

-

$        -

9

41,574,018

4,178,029

05/04/90

12

92,078

10

24,288,997

2,428,925

08/24/90

14

152,203

11

24,735,002

2,489,599

12/27/90

15

149,168

12

29,710,003

2,972,795

04/30/91

21

176,542

14

 55,728,997

 5,574,290

01/27/92

 31

   462,453

 

 

 

 

 

 

 

$186,398,017

18,679,738

 

93

$1,032,444

 

 

 

 

 

 

Reserve balances are remaining proceeds less outstanding capital contribution obligations, which have not been advanced or loaned to the Operating Partnerships. The reserve balances for Series 9,10,11,12 and 14 as of June 30, 2013 are $92,078, $152,203, $149,168, $167,301 and $301,720, respectively.

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Results of Operations

As of June 30, 2013 and 2012 the Partnership held limited partnership interests in 93 and 117 Operating Partnerships, respectively. In each instance the apartment complex owned by the applicable Operating Partnership is eligible for the federal housing tax credit. Initial occupancy of a unit in each apartment complex which initially complied with the minimum set-aside test (i.e., initial occupancy by tenants with incomes equal to no more than a certain percentage of area median income) and the rent restriction test (i.e., gross rent charged tenants does not exceed 30% of the applicable income standards) is referred to as "Qualified Occupancy." Each of the Operating Partnerships and each of the respective apartment complexes are described more fully in the Prospectus or applicable report on Form 8-K. The general partner believes that there is adequate casualty insurance on the properties.

The Partnership incurs an annual partnership management fee to the general partner of the Partnership and/or its affiliates in an amount equal to 0.5% of the aggregate cost of the apartment complexes owned by the Operating Partnerships, less the amount of various partnership management and reporting fees paid by the Operating Partnerships. The partnership management fees incurred and the reporting fees paid by the Operating Partnerships for the three months ended June 30, 2013 are as follows:

3 Months
Gross

Management Fee


3 Months
Reporting Fee

3 Months Management Fee

Net of Reporting Fee

Series 7

$       -

$       -

$       -

Series 9

21,843

-

21,843

Series 10

21,644

4,972

16,672

Series 11

28,923

1,256

27,667

Series 12

28,023

4,243

23,780

Series 14

  53,919

  15,948

  37,971

 

$ 154,352

$  26,419

$ 127,933

The Partnership's investment objectives do not include receipt of significant cash distributions from the Operating Partnerships in which it has invested. The Partnership's investments in Operating Partnerships have been made principally with a view towards realization of federal housing tax credits for allocation to its partners and BAC holders.

 

(Series 7)

The series did not have any properties as of June 30, 2013 and 2012.

(Series 9)

As of June 30, 2013 and 2012, the average Qualified Occupancy for the series was 100%. The series had a total of 12 properties at June 30, 2013, all of which were at 100% Qualified Occupancy.

For the periods ended June 30, 2013 and 2012, Series 9 reflects loss from Operating Partnerships of $(29,073) and $(147,406), respectively, which includes depreciation and amortization of $139,421 and $209,938, respectively. This is an interim period estimate; it is not indicative of the final year end results.

On April 30, 2012, the operating general partner of Sunshine Apartments, A Limited Partnership sold the property to a non-affiliated entity. The sales price of the property was $1,237,864, which included the outstanding mortgage balance of approximately $925,000 and cash proceeds to the investment partnership of $171,000. Of the total proceeds received by the investment partnership, $15,000 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $156,000 were returned to cash reserves held by Series 9. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, has been recorded in the amount of $156,000 as of June 30, 2012.

Glenwood Hotel Investors (Glenwood Hotel) is a 36-unit single room occupancy development located in Porterville, CA. The property has historically operated with high occupancy. In 2012, the property continued to maintain strong occupancy and as of December 31, 2012 occupancy was 90%. Through the second quarter of 2013 occupancy was strong at 95%. However, despite the continued strong occupancy, the property is operating below breakeven. To maintain a high occupancy level and to be competitive in the market, management is keeping rental rates low. The management company continues to market available units to the local housing authorities and performs various outreach efforts to attract qualified applicants. The operating general partner continues to fund deficits as needed. The mortgage, insurance, and payables are current. On December 31, 2004, the 15-year low income housing tax credit compliance period expired with respect to Glenwood Hotel Investors LP.

In July 2012, the investment general partner transferred its interest in Big Lake Seniors Apartments to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $520,555 and cash proceeds to the investment partnership of $9,000. Of the total proceeds received, $2,625 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $6,375 were returned to cash reserves held by Series 9. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. The investment general partner on behalf of the investment partnership, also executed a Transfer and Assignment of Mineral Rights preserving the investment partnership's right to any potential proceeds that may be distributed from production of minerals at the property. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership has been recorded in the amount of $6,375 as of September 30, 2012.

In July 2012, the investment general partner transferred its interest in Blanco Seniors Apartments to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $487,964 and cash proceeds to the investment partnership of $9,000. Of the total proceeds received, $2,625 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $6,375 were returned to cash reserves held by Series 9. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. The investment general partner on behalf of the investment partnership, also executed a Transfer and Assignment of Mineral Rights preserving the investment partnership's right to any potential proceeds that may be distributed from production of minerals at the property. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership has been recorded in the amount of $6,375 as of September 30, 2012.

In July 2012, the investment general partner transferred its interest in Pleasanton, Limited to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $574,131 and cash proceeds to the investment partnership of $9,000. Of the total proceeds received, $2,625 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $6,375 were returned to cash reserves held by Series 9. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. The investment general partner on behalf of the investment partnership, also executed a Transfer and Assignment of Mineral Rights preserving the investment partnership's right to any potential proceeds that may be distributed from production of minerals at the property. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership has been recorded in the amount of $6,375 as of September 30, 2012.

South Paris Heights Associates Limited Partnership (Hill Street Commons I) is a 25-unit, one-building apartment complex for elderly residents located in South Paris, Maine.  The property was 100% occupied as of June 30, 2013, but operated below breakeven through the second quarter due to high utility expenses and insufficient rental rates. To offset the high utility cost, the investment general partner suggested to management that they place limits on the thermostat controls in the individual units to reduce costs. Management also submitted a 2013 rent increase request to USDA-Rural Development and they anticipate a response to the request within the next month.  Should the rent increase be approved, the investment general partner anticipates that the property will operate above breakeven.  On December 31, 2007, the 15-year low income housing tax credit compliance period expired with respect to South Paris Heights.  The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.

In September 2012, the investment general partner transferred its interest in Le Grand Enterprises to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,611,385 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $563 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $20,937 were returned to cash reserves held by Series 9. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership has been recorded in the amount of $20,937 as of September 30, 2012.

In September 2012, the investment general partner transferred its interest in Fawn River Apartment Company LDHA to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $3,470,597 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $1,882 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $19,618 were returned to cash reserves held by Series 9. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership has been recorded in the amount of $19,618 as of September 30, 2012.

In July 2013, the investment general partner transferred its interest in Meadow Run LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $605,033 and cash proceeds to the investment partnership of $84,000. Of the total proceeds received, $1,528 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $5,000 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $77,472 were returned to cash reserves held by Series 9. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution.

(Series 10)

As of June 30, 2013 and 2012, the average Qualified Occupancy for the series was 100%. The series had a total of 14 properties at June 30, 2013, all of which were at 100% Qualified Occupancy.

For the periods ended June 30, 2013 and 2012, Series 10 reflects net loss from Operating Partnerships of $(93,694) and $(84,689), respectively, which includes depreciation and amortization of $133,787 and $140,346, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Meadowbrook Properties II, LP (Meadowbrook Lane Apartments) is a 50-unit family property located in Americus, GA. The property has operated below breakeven for several years with occupancy averaging below 90%. The property continues to operate below breakeven through the second quarter of 2013. In 2013, occupancy is averaging 95% while ending June at 92%. Operations have improved due to a reduction in maintenance expenses resulting from reduced turnover. Due to the age of the property, overall maintenance expenses remain high in order to maintain its physical condition. Deficits are being funded by accruing the related party management fee. On December 31, 2004, the 15-year low income housing tax credit compliance period expired with respect to Meadowbrook Properties II, LP.

Stratford Square, Limited Partnership (Stratford Square Apartments) is a 24-unit elderly property located in Brundidge, AL. The property operated below breakeven in 2012 while averaging 94% occupancy for the year. The property continues to operate just below breakeven through the second quarter of 2013. Operating expenses have slightly decreased and 100% occupancy allowed for an increase in rental income. Operations are expected to continue to improve throughout the year. Occupancy was 100% as of June 30, 2013. Both the operating general partner and the affiliated management company continue to be unresponsive to all calls and written communication attempts made by the investment general partner to discuss the property. The investment general partner intends to continue to monitor operations and pursue the management company for information in 2013. The 15-year low income housing tax credit compliance period expired on December 31, 2007.

In March 2013, the investment general partner transferred its interest in Brentwood Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $893,079 and cash proceeds to the investment partnership of $72,526. Of the total proceeds received, $5,000 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $67,526 were returned to cash reserves held by Series 10. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the transfer of the Operating Partnership has been recorded in the amount of $67,526 as of March 31, 2013.

In July 2013, the investment general partner transferred its interest in Rosewood Village LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $611,772 and cash proceeds to the investment partnership of $60,530. Of the total proceeds received, $8,408 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $5,000 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $47,122 were returned to cash reserves held by Series 10. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution.

In July 2013, the investment general partner transferred its interest in Ellaville Properties LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $738,026 and cash proceeds to the investment partnership of $105,000. Of the total proceeds received, $291 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $5,000 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $99,709 were returned to cash reserves held by Series 10. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution.

(Series 11)

As of June 30, 2013 and 2012 the average Qualified Occupancy for the series was 100%. The series had a total of 15 properties at June 30, 2013, all of which were at 100% Qualified Occupancy.

For the periods ended June 30, 2013 and 2012, Series 11 reflects net loss from Operating Partnerships of $(29,571) and $(72,753), respectively, which includes depreciation and amortization of $187,644 and $198,220, respectively. This is an interim period estimate; it is not indicative of the final year end results.

South Fork Heights, LTD (South Fork Heights Apartments) is a 48-unit family property in South Fork, CO and is financed by Rural Development. The original operating general partner was replaced in January 2011 at the request of Rural Development. The property is in poor physical condition. The new operating general partner advanced funds for new carpet, vinyl and paint in the units. Average occupancy was 86% during 2012, and is 82% through the second quarter of 2013. The property operated above breakeven in 2012 by decreasing expenses. Rural Development approved the property to receive a Multi-Family Housing Preservation and Revitalization Restructuring Program (MPR) Loan in 2008, but would not lend the funds while the previous operating general partner was still involved in the project. The new operating general partner received a commitment from Rural Development for the MPR Loan; however, the loan amount was insufficient to complete the needed property improvements. The operating general partner feels it has exhausted all potential options for financing and has been unsuccessful in securing additional funds. Consequently, the operating general partner is requesting that its interest be transferred to a nonprofit entity that will have access to different funding sources. The transfer is currently being reviewed and due diligence is being performed on the nonprofit entity. On December 31, 2005, the 15-year low income housing tax credit compliance period expired with respect to South Fork Heights, LTD.

In March 2013, the investment general partner transferred its interest in Church Hill Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $896,407 and receipt of a Promissory Note (the "Note") to the investment partnership in the amount of $106,525 maturing on August 31, 2013. Of the amounts payable under the Note, $5,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $101,525 will be returned to cash reserves held by Series 11. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. The sale proceeds were received in May 2013; so a receivable in the amount of $101,525 was recorded as of March 31, 2013. Accordingly, a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $101,525 as of March 31, 2013.

In April 2013, the investment general partner transferred 49.99% of its interest in RPI Limited Partnership #18 to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,155,533 and cash proceeds to the investment partnership of $18,811. Of the proceeds received, $5,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $13,811 were returned to cash reserves held by Series 11. The remaining 50.01% investment limited partner interest in the Operating Partnership is scheduled to be transferred in April 2014 for anticipated cash proceeds of $190, which will be returned to the cash reserves held by Series 11. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 5 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, was recorded in the amount of $13,811 as of June 30, 2013.

(Series 12)

As of June 30, 2013 and 2012 the average Qualified Occupancy for the series was 100%. The series had a total of 21 properties at June 30, 2013, all of which were at 100% Qualified Occupancy.

For the periods ended June 30, 2013 and 2012, Series 12 reflects net loss from Operating Partnerships of $(118,981) and $(23,889), respectively, which includes depreciation and amortization of $246,607 and $193,648, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Briarwick Apartments Limited, A KY Limited Partnership (Briarwick Apartments) is a 40-unit family property located in Nicholasville, KY. The property has operated below breakeven for the past several years due to low occupancy and high operating expenses. Rural Development (RD) approved a workout plan in the third quarter of 2011 to stabilize the property. The two main components of the workout plan were a $30 rental rate increase implemented in October 2011 and an increase in the monthly replacement reserve deposit. Occupancy averaged 88% in 2012 and has improved to 94% through the second quarter of 2013. Management states that it is difficult competing with the newer properties in the area. In an effort to compete with these properties RD approved capital improvements in the amount of $22,222 in 2012. The improvements included new refrigerators, HVAC, windows, seal and striping for the parking lot, cane rails, and new carpet and vinyl for certain units. Improvements in 2013 will include replacement of refrigerators, HVAC systems, windows, and carpet and vinyl for units that are being turned. Management is marketing the property by posting fliers at various churches, stores, and community centers around the town. Although operations are below breakeven, the property continues to make deposits into the replacement reserve to satisfy RD's requirements. The mortgage, real estate tax and insurance payments are current. The operating general partner continues to advance funds and accrue its affiliated property management fee to fund deficits. On December 31, 2005, the 15-year low income housing tax credit compliance period expired with respect to Briarwick Apartments Limited.

In September 2012, the investment general partner transferred its interest in Earlimart Enterprises, A CA LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,262,975 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $4,208 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $17,292 were returned to cash reserves held by Series 12. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, was recorded in the amount of $17,292 as of September 30, 2012.

In November 2012, the operating general partner of Corcoran Investment Group entered into an agreement to sell the property to an entity affiliated with the operating general partner and the transaction closed on November 28, 2012. The sales price of the property was $1,979,421, which included the outstanding mortgage balance of approximately $1,805,863 and cash proceeds to the investment partnership of $173,558. Of the total proceeds received by the investment partnership, $23,250 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $7,500 was paid to BCAMLP for expenses related to the sale, which include third party legal costs. The remaining proceeds from the sale of $142,808 were returned to cash reserves held by Series 12.The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, was recorded in the amount of $142,808 as of December 31, 2012.

In July 2013, the investment general partner transferred its interest in Hamilton Village LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $536,431 and cash proceeds to the investment partnership of $57,747. Of the total proceeds received, $5,134 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $5,000 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $47,613 were returned to cash reserves held by Series 12. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution.

In July 2013, the investment general partner transferred its interest in Laurel Village LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $623,908 and cash proceeds to the investment partnership of $70,200. Of the total proceeds received, $2,139 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $5,000 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $63,061 were returned to cash reserves held by Series 12. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution.

In July 2013, the investment general partner transferred its interest in Carson Village, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $615,277 and cash proceeds to the investment partnership of $84,000. Of the total proceeds received, $1,292 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $5,000 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $77,708 were returned to cash reserves held by Series 12. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution.

In July 2013, the investment general partner transferred its interest in Autumnwood Village LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $955,411 and cash proceeds to the investment partnership of $105,000. Of the total proceeds received, $1,995 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $5,000 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $98,005 were returned to cash reserves held by Series 12. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution.

(Series 14)

As of June 30, 2013 and 2012 the average Qualified Occupancy for the series was 100%. The series had a total of 31 properties at June 30, 2013, all of which were at 100% Qualified Occupancy.

For the periods ended June 30, 2013 and 2012, Series 14 reflects net loss from Operating Partnerships of $(218,555) and $(150,697), respectively, which includes depreciation and amortization of $359,516 and $502,032, respectively. This is an interim period estimate; it is not indicative of the final year end results.

Brantwood Lane Limited Partnership Brantwood Lane Apartments) is a 36-unit property located in Centreville, Alabama. In 2012, the property averaged 96% occupancy but operated below breakeven due to significant repairs expensed at the end of the year. Through the second quarter of 2013, the property averaged 97% occupancy but continued to operate below breakeven for the year due to the additional repairs expensed in January 2013. Other expenses have been reasonable and monthly operations have been strong since February 2013. USDA-Rural Development required the repairs following its inspection in early 2012, with repairs including carpet, painting, furniture and door replacements in all units. The repairs were funded through a drawdown of the replacement reserve and a $54,000 loan from the operating general partner made in January 2013. According to the operating general partners, the ineffectual regional and site management staff has been terminated, all repairs have been completed, and USDA-Rural Development is satisfied with the repairs. The mortgage, taxes, and insurance are current. The tax credit compliance period for the operating partnership ended on December 31, 2005. The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership.


In July 2012, the investment general partner transferred its interest in Cottonwood Apartments II, A LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $784,477 and cash proceeds to the investment partnership of $9,000. Of the total proceeds received, $2,625 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $6,375 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. The investment general partner on behalf of the investment partnership, also executed a Transfer and Assignment of Mineral Rights preserving the investment partnership's right to any potential proceeds that may be distributed from production of minerals at the property. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, was recorded in the amount of $6,375 as of September 30, 2012.

Maysville Village Apartments Limited (Maysville Village Apartments) is an 8-unit property located in Maysville, OK. In 2010, a decrease in occupancy and an increase in operating expenses caused operations to fall below breakeven. The increased operating costs were caused by a surge in maintenance expenses. The expenses covered some capital items, but they were not reimbursed from the replacement reserve account due to Rural Development restrictions. In addition, Rural Development required the property outsource all maintenance work at a higher cost instead of using the affiliated management company. In 2012, the property operated above breakeven due to strong occupancy and decreased operating expenses. Occupancy averaged 96% for the year and maintenance costs were significantly less than 2011. Through the second quarter of 2013, the property is 94% occupied and operating above breakeven. The operating general partner continues to fund all deficits as necessary. The mortgage, taxes, and insurance payments are all current. On December 31, 2007, the 15-year low income housing tax credit compliance period expired with respect to Maysville Village Apartment Limited.

In March 2011, the operating general partner of Scott Partners entered into an agreement to sell the property to an entity affiliated with the operating general partner and the transaction closed on May 2, 2011. The sales price of the property was $1,505,000, which included the outstanding mortgage balance of approximately $1,031,412 and cash proceeds to the investment partnership of $389,317. Of the total proceeds received by the investment partnership, $15,000 was paid to BCAMLP for expenses related to the sale, which includes third party legal costs. The remaining proceeds from the sale of $374,317 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, was recorded in the amount of $374,317 as of June 30, 2011. In July 2012, the investment partnership received additional proceeds for its share of the Operating Partnership's cash in the amount of $10,500 which were returned to the cash reserves held by Series 14.

In July 2012, the investment general partner transferred its interest in Colorado City Seniors to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $513,991 and cash proceeds to the investment partnership of $9,000. Of the total proceeds received, $2,625 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $6,375 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. The investment general partner on behalf of the investment partnership, also executed a Transfer and Assignment of Mineral Rights preserving the investment partnership's right to any potential proceeds that may be distributed from production of minerals at the property. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $6,375 as of September 30, 2012.

In July 2012, the investment general partner transferred its interest in Hughes Springs Seniors Apartments to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $746,096 and cash proceeds to the investment partnership of $9,000. Of the total proceeds received, $2,625 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $6,375 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. The investment general partner on behalf of the investment partnership, also executed a Transfer and Assignment of Mineral Rights preserving the investment partnership's right to any potential proceeds that may be distributed from production of minerals at the property. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $6,375 as of September 30, 2012.

In September 2012, the investment general partner transferred its interest in Central Valley Investment Group II to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,704,343 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $1,125 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $20,375 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $20,375 as of September 30, 2012.

In September 2012, the investment general partner transferred its interest in Lake Isabella Enterprises, a California Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,877,844 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $2,973 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $18,527 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $18,527 as of September 30, 2012.

In September 2012, the investment general partner transferred its interest in Nevada City Investment Group, A California Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $3,334,807 and cash proceeds to the investment partnership of $25,000. Of the total proceeds received, $4,813 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $3,500 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of approximately $16,687 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $16,687 as of September 30, 2012.

In November 2012, the investment general partner transferred its interest in Lonaconing Associates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,403,464 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $3,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $6,500 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $6,500 as of December 31, 2012.

In November 2012, the investment general partner transferred its interest in Titusville Apartments LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,168,760 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $3,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $6,500 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $6,500 as of December 31, 2012.

In November 2012, the investment general partner transferred its interest in Wesley Village Associates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,232,687 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $3,500 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $6,500 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within ten years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $6,500 as of December 31, 2012.

In December 2012, the investment general partner transferred its interest in Crystal Springs Family, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,218,656 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $7,400 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $2,600 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. There were no remaining proceeds returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, no gain on the sale of the Operating Partnership has been recorded.

In December 2012, the investment general partner transferred its interest in Louis Associates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $615,555 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $4,300 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $2,600 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $3,100 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $3,100 as of December 31, 2012.

In December 2012, the investment general partner transferred its interest in McComb Family, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,012,134 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $7,400 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $2,600 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. There were no remaining proceeds returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, no gain on the sale of the Operating Partnership has been recorded.

In December 2012, the investment general partner transferred its interest in South Fulton Elderly, LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $629,627 and cash proceeds to the investment partnership of $10,000. Of the total proceeds received, $2,600 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $7,400 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. In addition, the investment general partner on behalf of the investment partnership entered into a residual receipt promissory note (the RRN) with the Operating Partnership for receipt of a residual payment. Under the terms of the RRN, if there is a capital transaction involving the property owned by the Operating Partnership at any time within 15 years from the initial transfer date, there would be a residual payment distributable to the investment partnership in accordance with the Operating Partnership Agreement in effect at the date the investment limited partner transferred its interest. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $7,400 as of December 31, 2012.

In December 2012, the investment general partner transferred its interest in Washington Court Associates LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,042,417 and receipt of a Promissory Note (the "Note") to the investment partnership in the amount of $165,000 maturing on June 30, 2013. The maturity date of the Note has been extended to September 30, 2013. Of the amounts payable under the Note, $1,200 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $10,000 was paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $153,800 will be returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. A receivable in the amount of $153,800 was recorded for Series 14 as of December 31, 2012, and a gain on the sale of the Operating Partnership, net of the overhead and expense reimbursement, has been recorded in the amount of $153,800 as of December 31, 2012.

Lakeview Meadows LDHA L.P. (Lakeview Meadows) is a 53-unit elderly apartment complex located in Battle Creek, MI. Occupancy at the property declined significantly in 2012. It averaged 83% occupancy in 2012 and ended the year 79% occupied. In 2013, occupancy has averaged 83% with an increase to 100% as of June 30, 2013. The property is operating below breakeven through the first two quarters of 2013 as a result of the low occupancy in the early part of the year. Operating expenses are stable and below the investment general partner portfolio's state average, so a sustained increase in occupancy should result in the property generating positive cash flow. The recent high vacancy was due to a weak economy in the Downriver area of Michigan. Local seniors that own homes in the area have not been able to sell those properties due to depressed values and an ailing residential real estate market. These conditions still persist but marketing initiatives and concessions have increased occupancy. The operating general partner continues to work with the local housing authority to source tenants. However, the Battle Creek Housing Authority and the Calhoun County Housing Authority still award the majority of their available Section 8 vouchers to families and not seniors. The management company continues to offer concessions and is focused on online marketing efforts. The mortgage, real estate taxes, and property insurance escrows are current. The operating general partner continues to fund all operating deficits as necessary. The compliance period for this asset ended on December 31, 2006.

In January 2013, the operating general partner of Lakeview Meadows LDHA LP approved an agreement to sell the property to an unaffiliated third party buyer and the transaction was scheduled to close in December 2013. However, the transaction is not moving forward due to the Buyer's inability to obtain financing.

In December 2009, the investment general partner transferred its interest in Amherst Limited Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,509,804 and cash proceeds to the investment limited partner of $50,000. Of the total proceeds received, $500 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $10,000 was paid to BCAMLP for expenses related to the transfer, which includes third party legal costs. The remaining proceeds of $39,500 will be returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expenses, was recorded in the amount of $39,500 as of December 31, 2009. Additional sale proceeds in the amount of $50,000 was received and recorded as a gain on the sale of the Operating Partnership as of December 31, 2012.

Bridge Coalition Limited Partnership (The Bridge Building) is a 15-unit, one-building apartment complex located in New York, New York.  The property was 100% occupied as of June 30, 2013. In 2012 a large amount of tenant receivables were written off as bad debt. Through the second quarter of 2013 tenant receivables are still high and in jeopardy of being written off as bad debt. To improve collections, management has pursued legal action with residents and set up structured payment plans for certain residents who are currently out of work.  To monitor the management collection process the investment general partner has requested monthly aged tenant receivables summaries.  The mortgage, insurance and taxes are all current at the property. On December 31, 2006, the 15-year low income housing tax credit compliance period expired with respect to Bridge Coalition Limited Partnership.  The investment general partner is in the process of exploring various disposition opportunities consistent with the investment objectives of the investment partnership. 

In January 2013, the investment partnership approved an agreement to sell Lexington Park Spring to an entity affiliated with the operating general partner and the transaction was scheduled to close in May 2013. However, the closing date has been extended to August 31, 2013. The sales price for the property is $6,500,000, which includes the outstanding mortgage balance of approximately $4,569,972 and estimated cash proceeds to the investment partnership of $809,188. Of the estimated proceeds to be received by the investment partnership, $15,000 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the sale. Of the remaining proceeds, $7,500 will be paid to BCAMLP for expenses related to the sale, which include third party legal costs. The remaining proceeds from the sale of approximately $786,688 will be returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution.

In June 2013, the investment general partner transferred its interest in Marion Manor Partnership to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $931,722 and cash proceeds to the investment partnership of $80,000. Of the total proceeds received, $3,150 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $5,000 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $71,850 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution. Annual losses generated by the Operating Partnership, which were applied against the investment limited partnership's investment in the Operating Partnership in accordance with the equity method of accounting, had previously reduced the investment limited partnership investment in the Operating Partnership to zero. Accordingly, a gain on the sale of the Operating Partnership of the proceeds from the sale, net of the overhead and expense reimbursement, was recorded in the amount of $71,850 as of June 30, 2013.

In July 2013, the investment general partner transferred its interest in Edison Village LP to an entity affiliated with the operating general partner for its assumption of the outstanding mortgage balance of approximately $1,116,735 and cash proceeds to the investment partnership of $122,000. Of the total proceeds received, $8,375 represents reporting fees due to an affiliate of the investment partnership and the balance represents proceeds from the transfer. Of the remaining proceeds, $5,000 will be paid to BCAMLP for expenses related to the transfer, which include third party legal costs. The remaining proceeds of approximately $108,625 were returned to cash reserves held by Series 14. The monies held in cash reserves will be utilized to pay current operating expenses, accrued but unpaid asset management fees, and accrued but unpaid expenses of the investment partnership. After all outstanding obligations of the investment partnership are satisfied, any remaining monies will be distributed based on the number of BACs held by each investor at the time of distribution.

Off Balance Sheet Arrangements

None.

Critical Accounting Policies and Estimates

The financial statements are prepared in accordance with accounting principles generally accepted in the United States of America (GAAP), which require the Partnership to make various estimates and assumptions. The following section is a summary of some aspects of those accounting policies that may require subjective or complex judgments and are most important to the portrayal of the Partnership's financial condition and results of operations. The Partnership believes that there is a low probability that the use of different estimates or assumptions in making these judgments would result in materially different amounts being reported in the financial statements.

The Partnership is required to assess potential impairments to its long-lived assets, which are primarily investments in limited partnerships. The Partnership accounts for its investment in limited partnerships in accordance with the equity method of accounting since the Partnership does not control the operations of the Operating Partnerships. The purpose of an impairment analysis is to verify that the real estate investment balance reflected on the balance sheet does not exceed the value of the underlying investments.

If the book value of the Partnership's investment in an Operating Partnership exceeds the estimated value derived by management, which generally consists of the remaining future Low-Income Housing Credits allocable to the Partnership and the estimated residual value to the Partnership, the Partnership reduces its investment in the Operating Partnership.

In accordance with the accounting guidance for the consolidation of variable interest entities, the Partnership determines when it should include the assets, liabilities, and activities of a variable interest entity (VIE) in its financial statements, and when it should disclose information about its relationship with a VIE. The analysis that must be performed to determine which entity should consolidate a VIE focuses on control and economic factors.  A VIE is a legal structure used to conduct activities or hold assets, which must be consolidated by a company if it is the primary beneficiary because it has (1) the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and (2) the obligation to absorb losses or receive benefits that could potentially be significant to the VIE. If multiple unrelated parties share such power, as defined, no party will be required to consolidate the VIE. Further, the guidance requires continual reconsideration of the primary beneficiary of a VIE.

Based on this guidance, the Operating Partnerships in which the Partnership invests meet the definition of a VIE because the owners of the equity at risk in these entities do not have the power to direct their operations.  However, management does not consolidate the Partnership's interests in these VIEs, as it is not considered to be the primary beneficiary since it does not have the power to direct the activities that are considered most significant to the economic performance of these entities.  The Partnership currently records the amount of its investment in these partnerships as an asset on its balance sheets, recognizes its share of partnership income or losses in the statements of operations, and discloses how it accounts for material types of these investments in its financial statements. The Partnership's balance in investment in Operating Partnerships represents its maximum exposure to loss.  The Partnership's exposure to loss on these partnerships is mitigated by the condition and financial performance of the underlying Housing Complexes as well as the strength of the general partners and their guarantee against credit recapture to the investors of the Partnership.

 

Item 3

Quantitative and Qualitative Disclosure About Market Risk

 

 

 

Not Applicable

Item 4

Controls and Procedures

 

 

 

 

(a)

Evaluation of Disclosure Controls and Procedures

 

 

As of the end of the period covered by this report, the Partnership's general partner, under the supervision and with the participation of the Principal Executive Officer and Principal Financial Officer of C&M Management Inc., carried out an evaluation of the effectiveness of the Partnership's "disclosure controls and procedures" as defined under the Securities Exchange Act of 1934 Rules 13a-15 and 15d-15 with respect to each series individually, as well as the Partnership as a whole. Based on that evaluation, the Partnership's Principal Executive Officer and Principal Financial Officer have concluded that as of the end of the period covered by this report, the Partnership's disclosure controls and procedures with respect to each series individually, as well as the Partnership as a whole, were effective to ensure that information relating to any series or the Partnership as a whole required to be disclosed by it in the reports that it files or submits under the Securities Exchange Act of 1934 (i) is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms and (ii) is accumulated and communicated to the Partnership's management, including the Partnership's Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

 

 

 

 

(b)

Changes in Internal Controls

 

 

There were no changes in the Partnership's internal control over financial reporting that occurred during the quarter ended June 30, 2013 that materially affected, or are reasonably likely to materially affect, the Partnership's internal control over financial reporting.

 

 

 

 

PART II - OTHER INFORMATION

Item 1.

Legal Proceedings

 

 

 

None

 

 

Item 1A.

Risk Factors

 

 

 

There have been no material changes from the risk factors set forth under Part I, Item 1A. "Risk Factors" in our Form 10-K for the fiscal year ended March 31, 2013.

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

 

 

None

 

 

Item 3.

Defaults upon Senior Securities

 

 

 

None

 

 

Item 4.

Mine Safety Disclosures

 

 

 

Not Applicable

 

 

Item 5.

Other Information

 

 

 

None

 

 

Item 6.

Exhibits 

 

 

 

(a)Exhibits

 

 

 

 

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

 

 

 

 

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

 

 

 

 

32.a Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of John P. Manning, Principal Executive Officer, filed herein

 

 

 

 

 

32.b Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Marc N. Teal, Principal Financial Officer, filed herein

 

 

 

 

101. The following materials from the Boston Capital Tax Credit Fund II L.P. Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2013 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Balance Sheets, (ii) the Condensed Statements of Operations, (iii) the Condensed Statements of Changes in Partners' Capital (Deficit), (iv) the Condensed Statements of Cash Flows and (v) related notes, furnished herewith

 

 

SIGNATURES


Pursuant to the requirements of Section 13 of the Securities
Exchange Act of 1934, the Partnership has duly caused this Report to be
signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

 

Boston Capital Tax Credit Fund II Limited Partnership

 

 

 

 

By:

Boston Capital Associates II Limited
Partnership, General Partner

 

 

 

 

 

By:

BCA Associates Limited Partnership,
General Partner

 

 

 

 

 

By:

C&M Management, Inc.,
General Partner

 

 

 

 

Date: August 14, 2013

/s/ John P. Manning

 

John P. Manning

 

 

 





Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons on
behalf of the Partnership and in the capacities and on the dates
indicated:

DATE:

SIGNATURE:

TITLE:

August 14, 2013

/s/ John P. Manning
John P. Manning

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



DATE:

SIGNATURE:

TITLE:

August 14, 2013

/s/ Marc N. Teal
Marc N. Teal

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